Which of the following statements about the capital retention approach for determining life insurance needs is (are)true?
I.It assumes that life insurance proceeds will be liquidated to provide income to survivors.
II.It requires the preparation of a personal balance sheet.

Question

Quizplus · Accepted Answer

The capital retention approach assumes that life insurance proceeds are retained and invested to generate income, not liquidated. It does require a personal balance sheet to determine the amount of capital needed.

Which of the Following Statements About the Capital Retention Approach