The most accurate way to determine how much life insurance you need is to use the ___________ method.

Question

The most accurate way to determine how much life insurance you need is to use the ___________ method. ​

Quizplus · Accepted Answer

The most accurate way to determine how much life insurance you need is to use the needs analysis method. This involves assessing your financial responsibilities and obligations, including debts, future expenses, and ongoing living expenses, to determine the amount of coverage needed to adequately protect your loved ones in the event of your death. The multiple-of-earnings method simply multiplies your annual income by a predetermined factor to determine coverage, but it does not take into consideration your specific financial situation. Disposable income and DuPont analysis are not relevant methods for determining life insurance needs.

The Most Accurate Way to Determine How Much Life Insurance