Sarah Is Using the Needs Approach to Determine How Much

question 38

Multiple Choice

Sarah is using the needs approach to determine how much life insurance to buy.Her cash needs are $30,000;her income needs are $140,000;and special needs are $100,000.Sarah has the following assets: $20,000 in bank accounts,$30,000 in retirement plans,and $40,000 in investment accounts.Sarah owns no individual life insurance.She is covered by a $50,000 group life insurance policy through her employer.Based on this information,how much additional life insurance should Sarah purchase?

• A)$80,000
• B)$130,000
• C)$150,000
• D)$160,000

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Definitions:

Mainstream Western

Refers to the predominant ideas, values, practices, and institutions that have been historically dominant in Western societies, especially in areas such as philosophy, science, and culture.

Noble Birth

Originating from a family of high social rank, typically associated with aristocracy or royalty.

Personal Merit

The value or worth of an individual as determined by their qualities, achievements, or actions, often used as a basis for recognition or reward.

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The unique, cohesive identity or personality of a person as perceived by that same person.