The Multiple of Income Method of Determining Life Insurance Needs

question 112

Multiple Choice

The Multiple of Income method of determining life insurance needs:

• A)assumes you have only two children.
• B)assumes your spouse does not work.
• C)assumes your insurance needs are complex.
• D)uses your annual income as the sole factor.
• E)assumes your spouse is in an occupation with an uncertain future.

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Definitions:

Act Collectively

refers to the process of making decisions or actions as a group, emphasizing collaboration and shared responsibility.

Risk-taking Individual

A person who is willing to undertake actions that involve risk, with the potential for significant rewards or losses.

SMEs

Small and Medium-sized Enterprises, typically defined by their employee count, annual revenue, or assets, contributing significantly to economic development and innovation.

Revenues

The total amount of money received by a company from its various activities, typically from sales of goods or services, before any expenses are subtracted.