American_Bankers_Association
CTFA · Question #324
CTFA Question #324: Real Exam Question with Answer & Explanation
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Question
According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance coverage should be equal to 5 to 10 times your current income. For example, if you currently earn $70,000 a year, using the multiple of earning method then you need between:
Options
- A$300,000 and $700,000 life insurance
- B$400,000 and $700,000 life insurance
- C$390,000 and $800,000 life insurance
- D$350,000 and $700,000 life insurance
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