The Most Valuable Single Technique in Personal Risk Management to Assist

question 103

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:

Account Penetration

The process of deepening relationships with existing customers by selling more products or services.

Transactional Relationship

A business relationship focused primarily on the exchange of goods or services for payment, with little personal connection.

Distinct Component

a unique and identifiable part of a larger system or product, which serves a specific function and is often necessary for the overall operation or effectiveness.

Sales Call

A communication, either via telephone or face-to-face, initiated by a salesperson towards a potential or existing customer with the objective of making a sale.