The Most Preferred Technique for Determining How Much Life Insurance

question 78

Multiple Choice

The most preferred technique for determining how much life insurance coverage is needed for an individual is:

• A)computing the Human Life Value.
• B)using the probability of death each year,prevailing interest rates,and assumed inflation rates to find the discounted present value of a future income stream.
• C)assessing the family's total economic needs and subtracting the financial resources available to meet those needs.
• D)estimating the sum of money which,when paid in installments,will produce the same income as the person would have earned after deducting assumed amounts for taxes and personal maintenance expenses.
• E)using the multiple-of-earnings method adjusted for occupation.

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