The _____ method is a detailed method of determining the amount of life insurance coverage needed for an individual.
A) human life value
B) multiple-of-earnings
C) risk assessment
D) economic identification
E) needs analysis

Question

Quizplus · Accepted Answer

The needs analysis method is a detailed analysis of an individual's financial needs and goals to determine the appropriate amount of life insurance coverage needed. It takes into account the individual's current assets and liabilities, future expenses (such as education for children or retirement), and the amount of income needed to maintain the current standard of living for the family in case of the individual's premature death. The other options, such as human life value and multiple-of-earnings, are specific formulas or rules of thumb that may not take into account the individual's unique financial situation.

The _____ Method Is a Detailed Method of Determining the Amount