Yvette and Sean Caddell have completed Step 1 of their needs analysis worksheet and determined that they need 53,522,000 to maintain the projected lifestyle of Sean (age 41) and their two children (ages 7 and 11) in the event of Yvette's the primary earner's) death. The Caddells also have certain financial resources available after Yvette's death, however, so their life insurance needs are lower than this amount. If Yvette dies, Sean will be eligible to receive Social Security survivors' benefits approximately $3,500 a month ($42,000 a year) until the youngest child graduates from high school in 9 years. After the children leave home, Sean will be able to work full-time and earn an estimated $52,000 a year (after taxes) until he retires at age 65. After Sean turns 65, he'll receive approximately $3,100 a month ($37,200 a year) from his own Social Security and retirement benefits. The te expectancy for a man within Sean's demographic is 80. The couple has also saved $42,300 in a mutual fund, and Yvette's employer provides her a $100,000 Ife insurance policy Using this information, complete Step 2 of the needs analysis worksheet to estimate their total financial resources available after death (Note: If the value of a certain entry is zero, be sure to enter "on to receive credit) Step 2: Financial Resources Available After Death 1. Income Period 1 Period 2 Period 3 $0 $0 $42,000 $0 S $0 $0 $0 $37,200 $42,000 S a. Annual Social Security survivors' benefits b. Surviving spouse's annual income c. Other annual pensions and Social Security benefits d. Annual income (1a 1b + c) e. Number of years in time period Total period income (id xle) 9. Total income 2. Savings and investments 3. Other life insurance 9 IS 15 $378,000 S $1,716,000 S und 4. Other resources Total financial resources available (19+2+3+4) 50 $1,858,300 Finally, to determine the value of life insurance Yvette and Sess should purchase complete Step 3 of the needs analysis method by subtracting the total financial resources available from the total financial sources needed Step 3: Additional Life Insurance Needed Total financial resources needed from Step 1) Total financial resources available from Ste 2) Additional insurance needed $3,522,000 51,358,300 True or False: Alternatively, the Caddells could have estimated their life insurance needs using the multiple-of-earnings method, a less complicated but less accurate method than the needs analysis False O True