Jonathan estimates that financial resources worth $2,000,000 will be necessary to protect his family after his death.What is the amount of insurance,as per the needs analysis method,that Jonathan should purchase if he has current financial resources worth $1,000,000?

Question

Quizplus · Accepted Answer

The needs analysis method suggests purchasing insurance to cover the gap between current resources and the estimated necessary amount. Jonathan needs $2,000,000 but has $1,000,000, so he should purchase $1,000,000 in insurance.

Jonathan Estimates That Financial Resources Worth $2,000,000 Will Be Necessary