Need analysis method is a more detailed approach than multiple-of-earnings method. This method considers both financial obligations and financial resources of the insured and his or her dependents. Which of the following steps is/are involved in this method?

Question

Quizplus · Accepted Answer

The need analysis method involves all three steps listed in the question: estimating the economic resources needed in case of the insured's death, determining all available financial resources after the insured's death (including existing life insurance and pension plan death benefits), and subtracting the available resources from the estimated amount needed to determine how much additional life insurance is required.

Need Analysis Method Is a More Detailed Approach Than Multiple-Of-Earnings