The needs approach to determining the amount of life insurance considers a family's:
A) gross income.
B) ability to pay off debts.
C) special financial needs.
D) financial liquidity.
E) all of these

Question

Quizplus · Accepted Answer

The needs approach to determining the amount of life insurance considers all of the listed factors: gross income, ability to pay off debts, special financial needs, and financial liquidity. It takes into account not only the immediate financial needs of the family but also the long-term financial goals and objectives. Therefore, option E is correct.

The Needs Approach to Determining the Amount of Life Insurance