The needs-based approach is not as accurate as the multiple-of-earnings approach.

Question

Quizplus · Accepted Answer

The statement is incorrect. The multiple-of-earnings approach only considers the income of the deceased, whereas the needs-based approach takes into account the financial needs of the surviving dependents. Therefore, the needs-based approach is considered to be more accurate in determining the appropriate amount of life insurance coverage needed.

The Needs-Based Approach Is Not as Accurate as the Multiple-Of-Earnings