2. Ilow much life insurance do you need? Calculating needs Parti Kim and Jim Cuttner are 40 years old and have one daughter, age 10. Kim is the primary earrier, making $65,000 per year. Jim does not currently work. The Cuttners have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Jim and their daughter in the event of Kim's death. Kim and Jim estimate that while their daughter is still living at home, monthly living expenses for Jim and their child will be about $2,900 (in current dollars). After their daughter leaves for college in 8 years, Jim will need a monthly income of $2,600 until he retires at age 65. The Cuttners estimate Jim's living expenses after 65 will only be $2,000 a month. The life expectancy of a man Jim's age is 82 years, so the Cuttner family calculates that Ilm 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 Life Insurance Needs Analysis Worksheet Date July 31, Name of insured Jim and Kim Cuttner 2015 Step 1: Financial resources needed alter death 1. Annual living expenses and other needs Period 2 Period 3 Period 1 $2,900 5 $ b. S 5 C. Monthly living expenses Net yearly income needed (1a x 12) Number of years in time period Total living needs per time period (1b x 10) 8 17 17 d. $1,216,800 Total living expenses (add Line 1d for each period to check your