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:

California Psychological Inventory

A psychological assessment tool designed to evaluate interpersonal behavior and social interaction traits.

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Patterns of behavioral or psychological symptoms that impact multiple areas of life and/or cause distress to the individual affected.

IQ Test

A standardized test designed to measure human intelligence and cognitive abilities.

Projective Tests

Psychological assessment tools where the responses to ambiguous stimuli reveal hidden emotions and internal conflicts.