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Fanny and Freddy, a married couple, areconsidering purchasing a life insurance policyand would like to discuss the appropriateamount of coverage they would need. Fannyand Freddy have one family vehicle, a minivanworth $20,000 with an outstanding loan of$15,000. The couple each have $15,000 in theirTax-Free Savings Accounts (TFSAs) that are heldin liquid savings as an emergency fund. Freddyhas a Registered Retirement Savings Plan (RRSP)currently valued at $125,000. Fanny has avintage motorcycle collection she inherited fromher father with a market value of $50.000 withan adjusted cost base (ACB) of $12,000. Fannywould like to bequest the motorcycle collectionto her brother if she passes. The couple’scombined take home pay is $5,750 per month.They have discretionary expenses of $2,000 permonth, non-discretionary expenses of $3,200per month, and contribute $100 each to theiremergency fund each month. Which of thefollowing CORRECTLY describes a TRUE factorthat will impact the amount of insurance thatwould be appropriate for Fanny and Freddy?