Step 2: Financial Resources Available After Death 1. Income 2. How much life insurance do you need? Calculating resources-Part 2 Simone and Rajiv Nag have completed Step 1 of their needs analysis worksheet and determined that they need $2,323,000 to maintain the projected Ifestyle of Rajiv (age 32) and their two children (ages 3 and 4) in the event of Simone's (the primary eamer's) death. The Nags also have certain financial resources avallable after Simone's death, however, so their life insurance needs are lower than this amount. If Simone dies, Rajiv 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 15 years. After the children leave home, Rajiv wil be able to work full-time and earn an estimated $38,000 a year (after taxes) until he retires at age 65. After Rajiv tums 65 , hev11 recelve approximately $3,200 a month (\$38,400 a year) from his own 50cial Security and retirement benefits. The life expectancy for a man within Rajlv's demographic is 80 . The couple has also saved 542,300 in a mutual fund, and Simone's employer provides her a $100,000 life insurance policy. Using this infarmation, complete Step 2 of the needs analysis worksheet to estimate their total financial resources avallable atter deach. (Note: If the value of a certain entry is zero, be sure to enter "O" to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Finally, to determine the value of life insurance Simone and Rajiv should purchase, complete Steo 3 or the needs analysis method by subtracting the total financial resources available from the total financlal resources needed. Step 3: Additional Life Insurance Needed Total financial resources needed (from Step 1) $2,323,000 Total financial resources available (from Step 2) $2,086,300 Additional ife insurance needed: True or False: Alternatively, the Nags could have estimated their life insurance needs using the multiple-of-earnings method, a less complicated but less accurate method than the needs analysis. False True