Which of the Following Methods Can Be Used to Estimate

question 74

Multiple Choice

Which of the following methods can be used to estimate your life insurance requirements?

• A)income replacement method.
• B)family need method.
• C)average income replacement method.
• D)A and B are correct.
• E)A, B and C are correct

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Definitions:

Donor's Adjusted Basis

The value used for tax purposes to determine the gain or loss when property is given as a gift, generally the cost basis of the donor at the time of the gift.

Fair Market Value

The price that property would sell for on the open market, between a willing buyer and a willing seller each having reasonable knowledge of all pertinent facts.

Gift

A transfer of property or assets from one individual to another without the expectation of payment or anything in return.

Landscape Business

A business involved in modifying the visible features of an area of land, including flora, terrain shape, and structures.