Life Insurance Basics
What does the human life value approach measure?
Answer and explanation
Answer: C. The human life value approach values the earnings the family would lose, discounted to a present sum. Final expenses and stated wishes belong to the needs approach, and affordability is a constraint rather than a measure of need.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, human life value approach
More life insurance basics questions
- A young professional with modest savings buys a large policy. Which personal use does that serve?
- An adverse underwriting decision rests on an HIV related test result. What does section 2611 require of the insurer?
- An advertisement describes a life policy chiefly as a savings and investment plan. Why is that a problem?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
- An applicant believes the personal information an insurer holds is inaccurate. What recourse is provided?
- An applicant pays the premium with the application and receives a conditional receipt, then dies before the policy is issued. What governs the claim?
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