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.

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Definitions:

BPI Team

A group of individuals dedicated to Business Process Improvement, focusing on analyzing, reviewing, and enhancing business processes to increase efficiency.

Globalization

The integration and interdependence of economic, social, cultural, and ecological facets of life, enabled by rapid advances in information technology.

Societal Pressure

The influence exerted by the society on individuals or organizations to conform to certain norms, values, or behaviors.

"As Is" Process

The documentation or mapping of a process or system exactly as it currently operates, without any modifications or improvements.