The Most Valuable Single Technique in Determining How Much Life

question 88

Multiple Choice

The most valuable single technique 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.

Appreciate the importance of a positive attitude in personal growth.

Utilize critical thinking and reflection for personal improvement and conflict resolution.

Understand the significance of developing a personal mission statement.

Recognize the importance of teamwork and how different temperaments contribute to group dynamics.

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Definitions:

Adjusting Entries

These are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Expense Account

An account used to track expenditures or costs incurred by a business or an individual for operational purposes.

Asset Account

An account that tracks resources owned or controlled by a business or individual which have economic value.

Unearned Items

Income received for goods not yet delivered or services not yet provided, considered a liability until the goods or services are delivered.