American_Bankers_Association
CTFA · Question #323
A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by some selected number is called:
The correct answer is A. Multiple of earnings method. See the full explanation below for the reasoning.
Estate Planning
Question
A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by some selected number is called:
Options
- AMultiple of earnings method
- BNeed analysis method
- CTax saving method
- DWhole life coverage
How the community answered
(37 responses)- A73% (27)
- B8% (3)
- C3% (1)
- D16% (6)
Topics
#multiple of earnings method#life insurance coverage#income replacement#needs analysis
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