All of the Following Are True of the Income Method

question 42

Multiple Choice

All of the following are true of the income method of determining life insurance needs, except it

• A) is easy to use.
• B) does not consider your age.
• C) does not factor in the number of children in your family.
• D) doesn't figure in savings or investments.

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Definitions:

Net Present Values

The calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate to determine if it will yield a positive return.

Historical Record

Documentation or archives of past events, transactions, or values, often used for reference.

Small Stocks

Shares of companies with relatively small market capitalization.

Canadian Treasury Bills

Short-term government securities issued by the Canadian government, featuring a maturity of less than one year and sold at a discount.