The Johnsons Change Their Life InsuranceCoverageHarry and Belinda Johnson spend $20 per month onlife insurance in the form of a premium on a $10,000,paid-at-65 cash-value policy on Harry that his parentsbought for him years ago. Belinda has a group terminsurance policy from her employer with a faceamount of $200,000. By choosing a group life insur-ance plan from his menu of employee benefits, Harrynow has $100,000 of group term life insurance. Harryand Belinda have decided that, because they have nochildren, they could reduce their life insurance needs by protecting one anothers income for only fouryears, assuming the survivor would be able to fendfor himself or herself after that time. They also real-ize that their savings fund is so low that it would haveno bearing on their life insurance needs. Harry andBelinda are basing their calculations on a projected4 percent rate of return after taxes and inflation.They also estimate the following expenses: $15,000for final expenses, $20,000 for readjustment expenses,and $5,000 for repayment of short-term debts.(a) Should the $3,000 interest earnings fromHarrys trust fund be included in his annualincome for the purposes of calculating thelikely dollar loss if he were to die? (See thediscussions about the Johnsons in Chapter 1beginning on page 28.) Explain your response.(b) Based on your response to the previousquestion, how much more life insurancedoes Harry need? Use the Run the Numbersworksheet on page 382 to arrive at your answer.(c) Repeat the calculations to arrive at the additionallife insurance needed on Belindas life.(d) How might the Johnsons most economicallymeet any additional life insurance needs youhave determined they may have?(e) In addition to their life insurance planning,how might the Johnsons begin to prepare fortheir retirement years. d)As the Hernandezs children are now grown andout on their own, and both Victor and Mariaare employed full-time, give general reasons whyVictor may need more or less insurance.(e) Explain why it would be a bad idea for Victorto buy a variable-universal life insurance policy