When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach?

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When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach?

A) The income earner's future projected income
B) The family's financial objectives if the income earner were to die or become disabled
C) The insurance company's financial rating
D) The income earner's credit score

Answer: B) The family's financial objectives if the income earner were to die or become disabled

Uses of Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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