Nick and Rosa Lacoste have completed Step 1 of their needs analysis worksheet and determined that they need $2,418,000 to maintain the projected lifestyle of Rosa (age 38) and their two children ages 8 and 10) in the event of Nick's (the primary camer's) death. The Lacostes also have certain financial resources available after Nick's death, however, so their life insurance needs are lower than this amount. if Nick dies, Rosa will be eligible to receive Social Security survivors' benefits-approximately $3,800 a month ($45,600 a year) until the youngest child graduates from high school in 10 years. After the children leave home, Rosa will be able to work full-time and earn an estimated $38,000 a year (atter taxes) until she retires at age 65. After Rosa turns 65, she'll receive approximately $3,200 a month ($38,400 a year) from her own Social Security and retirement benefits. The life expectancy for a woman within Rosa's demographic is 87. The couple has also saved $60,000 in a mutual fund, and Nick's employer provides him a $100,000 life insurance policy. Using this information, complete Step 2 of the needs analysis worksheet to estimate their total financial resources available after death. (Note: If the value of a certain entry is zero, be sure to enter "o* to rective credit.) Life Insurance Needs Analysis Worksheet (Part 2) Step 2: Financial Resources Available After Death 1. Income Period 1 Period 3 Period 2 $0 $45,600 $0 $0 s $0 30 $38,400 $0 $45,600 5 $ 10 17 22 a. Annual Social Security survivors' benefits b. Surviving spouse's annual income c. Other annual pensions and Social Security benefits d. Annual income (1a + 10 + 10) e. Number of years in time period f. Total period income (Id xle) 9. Total income 2. Savings and investments 3. Other life insurance 4. Other resources Total financial resources available (19 +2+3+4): $456,000 $ $1,946,800 $ S $0 $2,106,800 Finally, to determine the value of life insurance Nick and Ross should purchase, complete Step 3 of the needs analysis method by subtracting the total financial resources available from the total financial resources needed. Step 3: Additional Life Insurance Needed Total financial resources needed (from Step 1) Total financial resources available (from Step 2) $2,106,800 Additional life insurance needed: s $2,418,000 True or False Alternatively, the Lacostes could have estimated their life insurance needs using the multiple of earnings method, a les complicated but less accurate method than the needs analysis False True