According to Multiple of Earnings Method, the Rule of Thumb

question 164

Multiple Choice

According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance coverage should be equal to 5 to 10 times your current income. For example, if you currently earn $70,000 a year, using the multiple of earning method then you need between:

• A) $300,000 and $700,000 life insurance
• B) $400,000 and $700,000 life insurance
• C) $390,000 and $800,000 life insurance
• D) $350,000 and $700,000 life insurance

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Definitions:

Humanitarian Benefits

Positive impacts or aid provided to individuals or communities in crisis, aimed at saving lives, alleviating suffering, and maintaining human dignity.

Ethical Rule

Guidelines or principles designed to guide conduct or decision-making in moral or ethical dilemmas.

Informed Consent

A process by which participants are fully informed about the procedures and risks involved in a research before agreeing to participate.

Principle Investigator

The lead researcher responsible for the oversight, design, and execution of a research project.