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Nathan and Marissa Azinlan are 38 years old and have one daughter, age 9. Nathan is the primary earner, making $140,000 per year, Marissa does not currently work. The Azinlans have decided to use the needs analysis method to calculate the value of a life Insurance polley that would provide for Marissa and their daughter in the event of Nathan's death. Nathan and Marissa estimate that while their daughter is still living at home, monthly living expenses for Marissa and their child will be about $4,000 (in current dollars). After their daughter leaves for college in 9 years, Marissa wil need a monthly income of $3,300 until she retires at age 65. The Azinlans estimate Marlssa's living expenses after 65 will only be $2,900 a month. The life expectancy of a woman Marissa's age is 87 years, so the Azinian family calculates that Marissa will spend about 22 years in retirement. Using this information, complete the first portion of the needs analysis worksheet to estimate their total Wving expenses. Life Insurance Needs Analysis Worksheet Name of insured Date Nathan and Marissa Azinian July 31, 2015 Step 1: Financial resources needed after death 1. Annual living expenses and other needs Period 1 Period 2 Period $4,000 s S Monthly living expenses Net yearly income needed (10 x 12) Number of years in time period 18 d Total living needs per time period (10 x 10) $1,910,400 Total living expenses (add Line id for each period to check your total): In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Marissa worked as a financial consultant, but her knowledge and skills are now somewhat outdated. Therefore, they include $40,000 for Marissa to go back to school. Additionally, Nathan and Marissa want to create a college fund of $60,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $18,000. Finally, they have taken out a loan for a business venture of $40,000 and In automobile loan of $3,000. Because the Azinians are renters, they have no outstanding mortgage 5 $0 s Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 2. Special needs Spouse's education fund b. Child's college fund Other needs . Final expenses (funeral costs and estate taxes) Debt liquidation House mortgage Other loans Total debt (48 + 4b) 5 Other Financial needs Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated) 5 s 5 ti $0 Uther inancial needs SU 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 Azinians should purchase, they need to factor in additional information True or False: The value of Nathan's employer-offered life insurance policy should be accounted for in the remaining portion of the form, True False