Retirement and Other Insurance Concepts
Under the human life value approach, what is being measured?
Answer and explanation
Answer: A. Human life value estimates the insured's future earnings devoted to the family, then discounts that stream to a present value. It measures economic loss to survivors rather than itemized needs.Source: NAIC Life Insurance Buyer's Guide — How much life insurance do you need: human life value
More retirement and other insurance concepts questions
- A business owner buys a key-person life policy on a vital executive. Three years later, the executive resigns. If the executive dies 5 years after resigning while the business maintains the policy, who receives the death benefit?
- A client wants survivors to receive income for thirty years and does not mind if the fund is exhausted at the end. Which approach fits?
- A closely held corporation funds a buy-sell agreement so that the company itself buys a deceased shareholder's stock. What is this plan called?
- A company buys life insurance on its chief engineer to protect against the financial loss if she dies. Who is the owner, premium payer, and beneficiary?
- A corporation owns and pays for a policy on an executive's life and is also the beneficiary. When must the insurable interest exist?
- A fully insured worker dies leaving a spouse and a 10-year-old child. At what age will the surviving spouse's Social Security child-in-care benefit terminate if the child is not disabled?
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