Fanny and Freddy, a married couple, are

considering purchasing a life insurance policy

and would like to discuss the appropriate

amount of coverage they would need. Fanny

and Freddy have one family vehicle, a minivan

worth $20,000 with an outstanding loan of

$15,000. The couple each have $15,000 in their

Tax-Free Savings Accounts (TFSAs) that are held

in liquid savings as an emergency fund. Freddy

has a Registered Retirement Savings Plan (RRSP)

currently valued at $125,000. Fanny has a

vintage motorcycle collection she inherited from

her father with a market value of $50.000 with

an adjusted cost base (ACB) of $12,000. Fanny

would like to bequest the motorcycle collection

to her brother if she passes. The couple's

combined take home pay is $5,750 per month.

They have discretionary expenses of $2,000 per

month, non-discretionary expenses of $3,200

per month, and contribute $100 each to their

emergency fund each month. Which of the

following CORRECTLY describes a TRUE factor

that will impact the amount of insurance that

would be appropriate for Fanny and Freddy?