Using the Income Method,determine the Amount of Insurance an Individual

question 48

Short Answer

Using the income method,determine the amount of insurance an individual would need,employing a factor of 10,if their net income is $65,000,their assets total $280,000,their liabilities total $130,000,their two children's anticipated college education needs total $730,000,and their invalid mother's future nursing home expenses total $290,000.
(a)$2,850,000
(b)$1,500,000
(c)$650,000
(d)$730,000

---

Definitions:

Social Psychology

The scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Attractive

Generally describes something or someone that possesses appealing qualities or features that draw interest or admiration.

Scientific Essence

The fundamental qualities or characteristics that form the basis of scientific inquiry and knowledge.

Theory-Driven Research

Research that is guided by a theoretical framework, which helps in formulating hypotheses, designing the study, and interpreting results.