Stasia and Patrick Strong are 37 years old and have one daughter, age 5 . Stasia is the primary earner, making $87,000 per year. Patrick does not currently work. The Strongs have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Patrick and their daughter in the event of Stasia's death. Stasia and Patrick estimate that while their daughter is still living at home, monthly living expenses for Patrick and their child will be about $3,700 (in current dollars). After their daughter leaves for college in 13 years, Patrick will need a monthly income of $3,100 until he retires at age 65 . The Strongs estimate Patrick's living expenses after 65 will only be $2,700 a month. The life expectancy of a man Patrick's age is 82 years, so the Strong family calculates that Patrick will spend about 17 years in retirement. In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Patrick worked as a software engineer, but his knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Patrick to go back to school. Additionally, Stasia and Patrick want to create a college fund of $35,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for home improvements of $150,000 and a credit card balance of $1,800. They own their home but still have an outstanding mortgage of $400,000. Stasia and Patrick Strong are 37 years old and have one daughter, age 5 . Stasia is the primary earner, making $87,000 per year. Patrick does not currently work. The Strongs have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Patrick and their daughter in the event of Stasia's death. Stasia and Patrick estimate that while their daughter is still living at home, monthly living expenses for Patrick and their child will be about $3,700 (in current dollars). After their daughter leaves for college in 13 years, Patrick will need a monthly income of $3,100 until he retires at age 65 . The Strongs estimate Patrick's living expenses after 65 will only be $2,700 a month. The life expectancy of a man Patrick's age is 82 years, so the Strong family calculates that Patrick will spend about 17 years in retirement. In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Patrick worked as a software engineer, but his knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Patrick to go back to school. Additionally, Stasia and Patrick want to create a college fund of $35,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for home improvements of $150,000 and a credit card balance of $1,800. They own their home but still have an outstanding mortgage of $400,000. Using this information, complete the next portion of Step 1 to determine the total financial resources needed. Cnerial nearic 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 Strongs should purchase, they need to factor in additional information. True or False: The value of Stasia's employer-offered life insurance policy should be accounted for in the remaining portion of the form. True False Using this information, complete the next portion of Step 1 to determine the total financial resources needed. Cnerial nearic 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 Strongs should purchase, they need to factor in additional information. True or False: The value of Stasia's employer-offered life insurance policy should be accounted for in the remaining portion of the form. True False
