Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

Question

Quizplus · Accepted Answer

The important factor that is excluded from the calculation in the Multiple of Income method is current assets. This method only considers the annual income of the insured and does not take into account any existing assets, investments, or savings. Therefore, the estimate of life insurance needs may be higher or lower, depending on the individual's financial situation.

Under the Multiple of Income Method of Estimating Life Insurance