Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

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Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

a. effect of inflation on income over time
b. predicted needs of the family after the insured's death
c. insured's current and future income
d. insured's annual expenses.

Answer: b. predicted needs of the family after the insured's death- are used in the needs approach. The Human Life Value Approach requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money.

Life Insurance

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