Which Formula Shows the Needs Based Method of Estimating the Amount

question 14

Multiple Choice

Which formula shows the needs based method of estimating the amount of life insurance needed?

• A)life insurance needed = present value of future income
• B)life insurance needed = burial + education food shelter
• C)life insurance needed = income + social security savings
• D)life insurance needed = total needs existing assets to meet the needs

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Definitions:

Possessor

A person or entity that has physical control or occupancy of property, but not necessarily legal ownership.

Negligence

A legal concept referring to the failure to exercise a level of care that a reasonably prudent person would in similar circumstances, leading to harm or damage.

Omission

The act of leaving something out or not including something.

Reasonable Person

A hypothetical individual who exercises average care, skill, and judgment in conduct and is often used as a standard for determining negligence.