"susan and steeve Murphey" are $37$ years old and have one son, age $10.$ Jacques is the primary earner, making $$65,000$ per year. Simone does not currently work. The Girards have decided to use the needs analysis method$$to calculate the value of a life insurance policy that would provide for Simone and their son in the event of Jacques$$s death.

Jacques and Simone estimate that while their son is still living at home, monthly living expenses for Simone and their child will be about $$2,900($in current dollars$).$ After their son leaves for college in $8$ years, Simone will need a monthly income of $$2,600$ until she retires at age $65.$ The Girards estimate Simone$$s living expenses after $65$ will only be $$2,000$ a month. The life expectancy of a woman Simone$$s age is $87$ years, so the Girard family calculates that Simone will spend about $22$ 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 insuredJacques and Simone Girard$$Step $1$: Financial resources needed after death$1.$ Annual living expenses and other needsPeriod $1$Period $2$Period $3$a$.$Monthly living expenses$$2,900$

b$.$Net yearly income needed $(1$a x $12)$

c$.$Number of years in time period$81722$d$.$Total living needs per time period $(1$b x $1$c$)$