Simone and Jacques Girard are 40 years old and have one son, age 10. Simone is the primary earner, making $65,000 per year. Jacques does not currently work. The Girards have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Jacques and their son in the event of Simone's death. Simone and Jacques estimate that while their son is still living at home, monthly living expenses for Jacques and their child will be about $2,900 in current dollars). After their son leaves for college in 8 years, Jacques will need a monthly income of $2,600 until he retires at age 65. The Girards estimate Jacques's living expenses after 65 will only be $2,000 a month. The life expectancy of a man Jacques's age is 82 years, so the Girard family calculates that Jacques will spend about 17 years in retirement. Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses: Life Insurance Needs Analysis Worksheet Name of Insured Date Jacques and Simone Girard July 31, 2015 Step 1: Financial Resources Needed after Death 1. Annual Living Expenses and Other Needs Period 2 Period 3 Period 1 $2,900 Monthly living expenses Net yearly income needed (1a x 12) Number of years in time period Total living needs per time period (16 x 1c) $1,216,800 Total Living Expenses (add Line 1d for each period to check your total): Using this information, complete the next portion of Step 1 to determine the total financial resources needed: 2. Special Needs umuwi Spouse's education fund Child's college fund Other needs Final Expenses (funeral costs and estate taxes) Debt Liquidation House mortgage Other loans Total debt (4a + 4b) Other Financial Needs Total Financial Resources Needed (add right-hand column plus the Total Living Expenses you calculated): The second half of the needs analysis worksheet is not shown on this page. To complete the worksheet and determine the value of the life insurance policy the Girards should purchase, they need to factor in additional information. True or Falset The value of Jacques and Simone's other savings and investments should be accounted for in the remaining portion of the form. True False Simone and Jacques Girard are 40 years old and have one son, age 10. Simone is the primary earner, making $65,000 per year. Jacques does not currently work. The Girards have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Jacques and their son in the event of Simone's death. Simone and Jacques estimate that while their son is still living at home, monthly living expenses for Jacques and their child will be about $2,900 in current dollars). After their son leaves for college in 8 years, Jacques will need a monthly income of $2,600 until he retires at age 65. The Girards estimate Jacques's living expenses after 65 will only be $2,000 a month. The life expectancy of a man Jacques's age is 82 years, so the Girard family calculates that Jacques will spend about 17 years in retirement. Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses: Life Insurance Needs Analysis Worksheet Name of Insured Date Jacques and Simone Girard July 31, 2015 Step 1: Financial Resources Needed after Death 1. Annual Living Expenses and Other Needs Period 2 Period 3 Period 1 $2,900 Monthly living expenses Net yearly income needed (1a x 12) Number of years in time period Total living needs per time period (16 x 1c) $1,216,800 Total Living Expenses (add Line 1d for each period to check your total): Using this information, complete the next portion of Step 1 to determine the total financial resources needed: 2. Special Needs umuwi Spouse's education fund Child's college fund Other needs Final Expenses (funeral costs and estate taxes) Debt Liquidation House mortgage Other loans Total debt (4a + 4b) Other Financial Needs Total Financial Resources Needed (add right-hand column plus the Total Living Expenses you calculated): The second half of the needs analysis worksheet is not shown on this page. To complete the worksheet and determine the value of the life insurance policy the Girards should purchase, they need to factor in additional information. True or Falset The value of Jacques and Simone's other savings and investments should be accounted for in the remaining portion of the form. True False
