What method of determining the needed amount of life insurance assumes that the principal sum will be kept, only interest or investment earnings will be dispersed, and allows payments to continue indefinitely?

What method of determining the needed amount of life insurance assumes that the principal sum will be kept, only interest or investment earnings will be dispersed, and allows payments to continue indefinitely?



a. Capital liquidation

b. Capital retention

c. Capital conservation

d. Capital restriction



Answer: B

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