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:

Body Mass Index

A numerical calculation using a person's weight and height to determine their overall body fat and health risk categories.

Overweight

A condition where an individual has more body weight than is considered healthy for their height, often measured by body mass index (BMI).

85th Percentile

A statistical value where 85 percent of observations fall below this point, often used in growth charts to indicate levels above which might be considered overweight or at risk.

Body Fat

The portion of the human body composed of fat tissue, essential for energy storage, protection of internal organs, and thermal insulation.