The Most Valuable Single Technique in Personal Risk Management to Assist

question 68

Multiple Choice

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed 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 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 a multiple of earnings adjusted for occupation.

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Definitions:

Cultural Capital

A concept denoting the accumulation of knowledge, behaviors, and skills that one can tap into to demonstrate cultural competence and social status.

Family Income

The total amount of money earned or received by all members of a family, often considered for financial assessments.

Siblings

Individuals who share one or both parents in common, known for having genetic ties and often significant roles in family dynamics.

Community Environment

The physical, social, economic, and cultural surroundings that influence an individual's or group's quality of life within a community.