What Is the Length of the Readjustment Period Which Is

question 47

Multiple Choice

What is the length of the readjustment period which is considered when the needs approach is used to determine the amount of life insurance to own?

• A)3 to 6 months
• B)1 to 2 years
• C)until the youngest child reaches age 18
• D)until the surviving spouse reaches age 65

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares.

Common Stock

Equity shares issued by a company giving shareholders voting rights and a residual claim on corporate earnings and assets.

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.