Scenario: You are 30 years old with a gross annual income of $55,000. You are married with 2-year-old twin children. Your spouse is 30 years of age. You estimate that your final expenses for funeral, burial, and other expenses will be $15,000. You currently owe $185,000 on a mortgage, $25,000 on a car loan, and $20,000 in credit card debt. You would like to replace your income for 30 years, and believe that your insurance proceeds can be invested to earn a 5% return. You would also like a minimum of $60,000 for each child be placed in a college fund. You do not anticipate a need to fund a readjustment period for your spouse. You currently have a $80,000 whole life insurance policy. Two procedures may be used to estimate your life insurance requirements. The more accurate method is the It is considered the better method because it: