While using the needs analysis approach,we _____.
A)add an individual's available resources to his or her family's total economic needs to calculate how much life insurance he or she requires
B)multiply an individual's gross annual earnings by some selected number to arrive at an estimate of adequate life insurance coverage
C)get only a loose approximation of life insurance needs of an individual
D)divide an individual's gross annual earnings by some selected number to arrive at an estimate of adequate life insurance coverage
E)deduct an individual's available resources from his or her family's total economic needs to calculate how much life insurance he or she requires

Question

Quizplus · Accepted Answer

The needs analysis approach involves deducting an individual's available resources from his or her family's total economic needs to calculate how much life insurance he or she requires. This approach helps to determine the actual financial needs of an individual's family in case of his or her unexpected death, taking into account their liabilities and expenses. Other options, such as multiplying or dividing an individual's gross annual earnings by some selected number, may not provide an accurate estimate of their life insurance needs.

While Using the Needs Analysis Approach,we _____