2. How much life insurance do you need? Calculating needs - Part 1 Janet and Sam Zhou are 38 years old and have one daughter, age 9. Janet is the primary earner, making $140,000 per year. Sam does not aurrently work. The Zhous have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Sam and their daughter in the event of Janet's death. Janet and Sam estimate that while their daughter is still living at home, monthly living expenses for Sam and their chid will be about $4,000 (in current dollars). After their daughter leaves for college in 9 years, Sam will need a monthly income of $3,300 until he retires at age 65. The Zhous estimate Sam's living expenses after 65 will only be $2,900 a month. The life expectancy of a man Sam's age is 82 years, so the Zhou family calculates that Sam will spend about 17 years in retirement. Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses: Life Insurance Needs Analysis Worksheet Date July 31, 2015 Name of Insured Step 1: Financial Resources Needed after Death 1. Annual Living Expenses and Other Needs Sam and Janet Zhou Period 1 $4.000 Period 2 Period 3 a. Monthly living expenses b. Net yearly income needed (la x 12)s C.Number of years in time period d. Total living needs per time period (1b x $ 18 17 1c)