Need Analysis Method Is a More Detailed Approach Than Multiple-Of-Earnings

question 92

Multiple Choice

Need analysis method is a more detailed approach than multiple-of-earnings method. This method considers both financial obligations and financial resources of the insured and his or her dependents. Which of the following steps is/are involved in this method?

• A) Estimate the total economic resources needed if the individual were to die
• B) Determine all financial resources that would be available after death, including existing life insurance and pension plan death benefits
• C) Subtract available resources from the amount needed to determine how much additional life insurance is required
• D) All of these

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Definitions:

Job Specialization

The process of focusing work and roles within an organization on specific tasks or functions to increase efficiency and expertise.

Predetermined Time Standards

A division of manual work into small basic elements that have established and widely accepted times.

Work Sampling

An estimate, via sampling, of the percent of the time that a worker spends on various tasks.

Human Resource Strategy

A strategic framework that guides how an organization manages and develops its workforce to align with business goals.