3. How much life insurance do you need? Calculating resources- Part 2 Sean and Yvette Caddell have completed Step 1 of their needs analysis worksheet and determined that they need $2,745,000 to maintain the projected lifestyle of Yvette (age 38) and their two children (ages 8 and 10) in the event of Sean's (the primary earner's) death. The Caddells also have certain financial resources available after Sean's death, however, so their life insurance needs are lower than this amount. If Sean dies, Yvette will be eligible to receive Social Security survivors' benefits-approximately $3,000 a month ( $36,000 a year) until the youngest child graduates from high school in 10 years. After the children leave home, Yvette will be able to work full-time and earn an estimated $46,000 a year (after taxes) until she retires at age 65. After Yvette turns 65, she'll receive approximately $2,400 a month ( $28,800 a year) from her own Social Security and retirement benefits. The life expectancy for a woman within Yvette's demographic is 87. The couple has also saved $42,300 in a mutual fund, and Sean's employer provides him a $100,000 life insurance policy. Using this information, complete Step 2 of the needs analysis worksheet to estimate their total financial resources available after death. (Note: If value of a certain entry is zero, be sure to enter " 0 " to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Finally, to determine the value of life insurance Sean and Yvette should purchase, complete Step 3 of the needs analysis method by subtracting the total financial resources available from the total financial resources needed. 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. True False