Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses Life Insurance Needs Analysis Worksheet Nick and Megan Doherty are 37 years old and have one daughter, age 5. Nick is the primary earner, making $87,000 per year. Megan does not currently work. The Dohertys have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Megan and their daughter in the event of Nick's death. Nick and Megan estimate that while their daughter is still living at home, monthly living expenses for Megan and their child will be about $3,700 (in current dollars). After their daughter leaves for college in 13 years, Megan will need a monthly income of $3,100 until she retires at age 65 . The Dohertys estimate Megan's living expenses after 65 will only be $2,700 a month. The life expectancy of a woman Megan's age is 87 years, so the Doherty family calculates that Megan will spend about 22 years in retirement. In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Megan worked as a mechanical engineer, but her knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Megan to go back to school. Additionally, Nick and Megan want to create a college fund of $35,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for a business venture of $40,000 and an automobile loan of $3,000. Because the Dohertys are renters, they have no outstanding mortgage. Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 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 Dohertys should purchase, they need to factor in additional information. True or False: The value of Nick and Megan's other savings and investments should be accounted for in the remaining portion of the form. True False Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses Life Insurance Needs Analysis Worksheet Nick and Megan Doherty are 37 years old and have one daughter, age 5. Nick is the primary earner, making $87,000 per year. Megan does not currently work. The Dohertys have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Megan and their daughter in the event of Nick's death. Nick and Megan estimate that while their daughter is still living at home, monthly living expenses for Megan and their child will be about $3,700 (in current dollars). After their daughter leaves for college in 13 years, Megan will need a monthly income of $3,100 until she retires at age 65 . The Dohertys estimate Megan's living expenses after 65 will only be $2,700 a month. The life expectancy of a woman Megan's age is 87 years, so the Doherty family calculates that Megan will spend about 22 years in retirement. In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Megan worked as a mechanical engineer, but her knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Megan to go back to school. Additionally, Nick and Megan want to create a college fund of $35,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for a business venture of $40,000 and an automobile loan of $3,000. Because the Dohertys are renters, they have no outstanding mortgage. Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 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 Dohertys should purchase, they need to factor in additional information. True or False: The value of Nick and Megan's other savings and investments should be accounted for in the remaining portion of the form. True False