The Method of Determining Life Insurance Requirements That Considers Factors

question 157

Multiple Choice

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

• A)easy method.
• B)single-income method.
• C)DINK method.
• D)"nonworking" spouse method.
• E)"family need" method.

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Definitions:

Value-based Management

Value-based management is a business management strategy focused on maximizing shareholder value through the alignment of company processes, resources, and initiatives toward this objective.

Economic Value

The maximum amount a consumer is willing to pay for an item minus the actual price of the item.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving risk and uncertainty.

WACC

Weighted Average Cost of Capital, representing the average rate of return a company is expected to pay its security holders.