worksheet8.1

question is perfectly clear

LIFE INSURANCE NEEDS ANALYSIS 2 3 Insured's Name Date Step 1: Financial resources needed after death 5 Period 2 Period 3 6 1. Annual living expenses and other needs: 7 Period 1 B Monthly living expenses s b. Net yearly income needed $ 9 [ax 12) 10 . Number of years in time period 11 d. Total living need per time period (bxd) S 12 TOTAL LIVING EXPENSES (add lined for each period): $ S lu $ $ $ S s S S 2. Special needs 13 14 a Spouse education fund 15 b. Children's collere fund 16 c. Other needs 17 3. Final expenses (funeral, estate costs, etc.) 18 4. Debt liquidation 19 a. House mortare $ 20 b. Other loans 21. Total debt (4 a + 4b) 22 5. Other financial needs 23 TOTAL FINANCIAL RESOURCES NEEDED (add right column) 24 S S $ S $ Period 2 Period 3 S 0 $ 0 25 Step 2: Financial resources available after death 26 1. Income 27 Period 1 a. Annual Social Security survivor's 5 $ 28 benefits 29 b. Surviving spouse's annual income Other annual pensions and Social Security 30 benefits 31 d. Annual income s $ 32 e. Number of years in time period 0 33 Total period income (dxe) S $ 24 Total Income 35 2. Savings and investments 36 3. Other life insurance er 4. Other resources 38 TOTAL FINANCIAL RESOURCES AVAILABLE (16+2+3+4) 39 Step 3: Additional Life Insurance needed 40 Step 1 total: Total financial resources needed 41 Step 2 totalTotal financial resources available 42. ADDITIONAL LIFE INSURANCE NEEDED (step 2 total-step 1 total) S S s $ $ S 5 $ Use Worksheet 8.1 Aurora Bel is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Skylar for 2 years. Her only income is $900 a month in Social Securty Survivor's benefits. Skylar wants to make sure her mother we taken care of Skylar shoulde. Skylar 10, de und eams $55,000 a year as a human resources manager for a small manufacturing fum. She was a condo with a current market value of $260,000 and has a $135,000 morte Other debts include a $6,000 auto loan and $300 in various credit card balances. Her 401(k) plan has a current balance of $56,000, and she keeps $2,000 in a money market account for emergencies taking with her mother's doctor, Skylar believes that her mother will be able to continue lying independency for another 3 years. She estimates that her mother wohl need about $2,100 a month to cover her living expenses and medical costs during this time. Alter that, Skylar's mother will probably need nursing home care. Skylar cats several local nurung homes and find that it wont about $6,000 a month when her mother enters a nursing home. Her mother's doctor says it difficult to estimate her mother's We expectancy but indicates that with proper care come Alzheimer's patients on Ive 10 years after diagnosis. Skylar also estimates that her personal final expenses would be around $7,000, and she'd be to provide a $20,000 contingency find that would be used to pay a trusted friend to supervise her mother's care of Skylar were no longer alive. Use Worksheet 8.1 to calculate Skylar's total insurance requirements. In your analyses, assume there are no wicidental special need amounts Recommend the type of policy she should by The rout in the box below will not bearded, but may be reviewed and considered by your instructor LIFE INSURANCE NEEDS ANALYSIS 2 3 Insured's Name Date Step 1: Financial resources needed after death 5 Period 2 Period 3 6 1. Annual living expenses and other needs: 7 Period 1 B Monthly living expenses s b. Net yearly income needed $ 9 [ax 12) 10 . Number of years in time period 11 d. Total living need per time period (bxd) S 12 TOTAL LIVING EXPENSES (add lined for each period): $ S lu $ $ $ S s S S 2. Special needs 13 14 a Spouse education fund 15 b. Children's collere fund 16 c. Other needs 17 3. Final expenses (funeral, estate costs, etc.) 18 4. Debt liquidation 19 a. House mortare $ 20 b. Other loans 21. Total debt (4 a + 4b) 22 5. Other financial needs 23 TOTAL FINANCIAL RESOURCES NEEDED (add right column) 24 S S $ S $ Period 2 Period 3 S 0 $ 0 25 Step 2: Financial resources available after death 26 1. Income 27 Period 1 a. Annual Social Security survivor's 5 $ 28 benefits 29 b. Surviving spouse's annual income Other annual pensions and Social Security 30 benefits 31 d. Annual income s $ 32 e. Number of years in time period 0 33 Total period income (dxe) S $ 24 Total Income 35 2. Savings and investments 36 3. Other life insurance er 4. Other resources 38 TOTAL FINANCIAL RESOURCES AVAILABLE (16+2+3+4) 39 Step 3: Additional Life Insurance needed 40 Step 1 total: Total financial resources needed 41 Step 2 totalTotal financial resources available 42. ADDITIONAL LIFE INSURANCE NEEDED (step 2 total-step 1 total) S S s $ $ S 5 $ Use Worksheet 8.1 Aurora Bel is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Skylar for 2 years. Her only income is $900 a month in Social Securty Survivor's benefits. Skylar wants to make sure her mother we taken care of Skylar shoulde. Skylar 10, de und eams $55,000 a year as a human resources manager for a small manufacturing fum. She was a condo with a current market value of $260,000 and has a $135,000 morte Other debts include a $6,000 auto loan and $300 in various credit card balances. Her 401(k) plan has a current balance of $56,000, and she keeps $2,000 in a money market account for emergencies taking with her mother's doctor, Skylar believes that her mother will be able to continue lying independency for another 3 years. She estimates that her mother wohl need about $2,100 a month to cover her living expenses and medical costs during this time. Alter that, Skylar's mother will probably need nursing home care. Skylar cats several local nurung homes and find that it wont about $6,000 a month when her mother enters a nursing home. Her mother's doctor says it difficult to estimate her mother's We expectancy but indicates that with proper care come Alzheimer's patients on Ive 10 years after diagnosis. Skylar also estimates that her personal final expenses would be around $7,000, and she'd be to provide a $20,000 contingency find that would be used to pay a trusted friend to supervise her mother's care of Skylar were no longer alive. Use Worksheet 8.1 to calculate Skylar's total insurance requirements. In your analyses, assume there are no wicidental special need amounts Recommend the type of policy she should by The rout in the box below will not bearded, but may be reviewed and considered by your instructor