A method of determining how much life insurance you require based on funds your family would require to maintain its lifestyle after your death is called the

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The needs approach is a method of determining the appropriate amount of life insurance by estimating the financial needs of the insured's dependents, such as the amount of funds required to maintain their current standard of living after the insured's death. This approach takes into consideration factors such as outstanding debts, future expenses (such as college tuition), and ongoing living expenses to ensure that the insured's dependents will be financially secure in the event of their death. The earnings multiple approach (A) calculates the insurance needed based on the insured's income, while the cash liquidity approach (C) focuses on the immediate cash needs of the insured's dependents. The funds analysis approach (D) is not a commonly used method for determining life insurance needs.

A Method of Determining How Much Life Insurance You Require