Which of the following statements about the needs approach for estimating the amount of life insurance to purchase is (are)true?
I.It involves an analysis of various family needs which must be met if a family breadwinner dies.
II.Its use is appropriate only if a person currently has no life insurance protection.

Question

Quizplus · Accepted Answer

The needs approach does involve an analysis of various family needs, such as income replacement, debt repayment, and funding future expenses like education or retirement. However, it can be used even if a person currently has some life insurance coverage, as it may be necessary to adjust the coverage amount based on changing needs over time.

Which of the Following Statements About the Needs Approach for Estimating