Which Method of Determining Life Insurance Requirements Is Designed Specifically

question 23

Multiple Choice

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

• A) hard method
• B) easy method
• C) "nonworking" spouse method
• D) thorough method
• E) DINK method

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Definitions:

Real Interest Rate

The interest rate expressed in dollars of constant purchasing power as a percentage of the amount loaned; the nominal interest rate minus the inflation rate.

Hidden Unemployment

Unemployment that includes individuals who have stopped looking for work or those who are underemployed, not fully reflected in official unemployment statistics.

Unemployment Compensation

Financial payments made to individuals who have lost their job until they find new employment, typically administered by government agencies.

Part Time

Employment with fewer hours per week compared to full-time jobs, often offering less benefits and lower pay.