Use the Needs Approach from the module reading/lecture. Eric and Linda are 36 and 40 respectively. The couple has three children ages 10, 4, and 2. Eric is concerned about leaving his family financially stable if his death occurs prematurely. He currently has $120,000 in group term life insurance provided by his employer. He thinks he needs more. Calculate his life insurance need. He estimates his funeral costs and final expenses to be $9,500. He has a home mortgage balance owing of $75,000, two auto loans totaling $11,000, and oustanding credit card debt of $11,200. He wants all of this debt to be paid. He wants to establish a college education fund for his children, at a cost of $7,500 per year for each child. He estimates his wife would need $30,000 to help her through the readjustment period of six months. He would like to leave a maintenance fund of $20,000 for his aging mother who is in ill health. His family would qualify for $2,000 per month in Social Security benefits for 16 years. They need a total of $3,500 per month for 16 years to maintain their current lifestyle. Assume a real rate of return of 2.5%. $367,565 $487,565 $126,700 $361,898 $156,700 $397,565 $246.700 $481,898 Use the Needs Approach from the module reading/lecture. Eric and Linda are 36 and 40 respectively. The couple has three children ages 10, 4, and 2. Eric is concerned about leaving his family financially stable if his death occurs prematurely. He currently has $120,000 in group term life insurance provided by his employer. He thinks he needs more. Calculate his life insurance need. He estimates his funeral costs and final expenses to be $9,500. He has a home mortgage balance owing of $75,000, two auto loans totaling $11,000, and oustanding credit card debt of $11,200. He wants all of this debt to be paid. He wants to establish a college education fund for his children, at a cost of $7,500 per year for each child. He estimates his wife would need $30,000 to help her through the readjustment period of six months. He would like to leave a maintenance fund of $20,000 for his aging mother who is in ill health. His family would qualify for $2,000 per month in Social Security benefits for 16 years. They need a total of $3,500 per month for 16 years to maintain their current lifestyle. Assume a real rate of return of 2.5%. $367,565 $487,565 $126,700 $361,898 $156,700 $397,565 $246.700 $481,898