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Behavioral family approach is based upon the principles of:
Present Values
The today's equivalent worth of a future money sum or cash flows, with a particular rate of return taken into account.
Net Cash Values
The amount of cash that could be received if a policy, such as life insurance, is surrendered to the company issuing the policy before its maturity or the insured event occurs.
Historical Relationships
The examination of past relationships among financial variables and their trends over time, used in forecasting and financial analysis.
Actual Bad Debts
Debts that have been specifically identified as uncollectible, following efforts to collect and evidence that repayment is unlikely.
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