Retirement and Other Insurance Concepts
A planner totals a family's final expenses, mortgage balance, and income needs, then subtracts savings and Social Security benefits. Which method is being used?
Answer and explanation
Answer: C. The needs approach itemizes cash needs and continuing income needs, then subtracts existing assets and benefits. The remaining gap is the amount of life insurance required.Source: NAIC Life Insurance Buyer's Guide — How much life insurance do you need: the needs approach
More retirement and other insurance concepts questions
- Under TIC § 1131.051, what minimum participation requirement applies to a CONTRIBUTORY group life insurance plan where employees pay part of the premium?
- What conditions must be met for a Roth IRA distribution of earnings to qualify as 100% tax-free?
- What conversion right do covered children have when reaching the age limit under a family rider?
- What disclosure document must be delivered to a consumer prior to or at the time of purchase of a variable annuity under federal securities law?
- What does it mean for a worker to be fully insured for Social Security survivor benefits?
- What happens in a life settlement transaction?
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