Joleene Is a Single Parent with Two Children and Earns

question 96

Multiple Choice

Joleene is a single parent with two children and earns $45,000 per year. She is purchasing term life insurance for 15 years until her youngest child is self supporting. Assuming her survivors can receive a 3% after-tax, inflation return on insurance proceeds, use the earnings multiple approach to calculate the face value of Joleen's policy.

• A) $33,445
• B) $547,851
• C) $397,548
• D) $556,668
• E) none of the above

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Definitions:

Self-Efficacy

A belief in one's ability to succeed in specific situations or accomplish a task, which can play a major role in how goals, tasks, and challenges are approached.

Material Self

Refers to the aspect of self-concept that involves the physical and external objects and possessions that belong to or are associated with a person.

True Self

An individual's authentic and genuine personality, characteristics, and beliefs that are often believed to be at the core of one's inner being.

Low Self-Esteem

A state characterized by a lack of confidence and feeling badly about oneself.