The Budget Method for Determining the Amount of Life Insurance

question 15

Multiple Choice

The budget method for determining the amount of life insurance needed is based on

• A)your investments and cash flow.
• B)your annual income and expenses.
• C)you current situation and your company pension.
• D)your current situation and expected future needs.

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Definitions:

Non-Management Employees

Workers within an organization who do not have supervisory or managerial responsibilities, often focusing on specific operational tasks.

Pay Increases

Adjustments made to an employee's salary to reward performance, match market rates, or adjust for cost of living.

Employee Stock Ownership Programs

are employee benefit plans that provide workers with an ownership interest in the company, often aiming to align the interests of employees and shareholders.