American_Bankers_Association
CTFA · Question #325
Need analysis method is a more detailed approach than multiple-of-earnings method. This method considers both financial obligations and financial resources of the insured and his or her dependents…
The correct answer is D. All of these. See the full explanation below for the reasoning.
Investment Management
Question
Need analysis method is a more detailed approach than multiple-of-earnings method. This method considers both financial obligations and financial resources of the insured and his or her dependents. Which of the following steps is/are involved in this method?
Options
- AEstimate the total economic resources needed if the individual were to die
- BDetermine all financial resources that would be available after death, including existing life
- CSubtract available resources from the amount needed to determine how much additional life
- DAll of these
How the community answered
(43 responses)- A12% (5)
- B7% (3)
- C5% (2)
- D77% (33)
Topics
#life insurance needs analysis#need analysis method#financial obligations#death benefits
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