Life Insurance Basics
Which deductions are made from gross earnings when computing a human life value?
Answer and explanation
Answer: A. Human life value starts from earnings, removes what the insured consumed personally and the taxes paid, and discounts the remainder over the working years left. Assets, a spouse's earnings and policy costs belong to the separate needs calculation.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, human life value approach
More life insurance basics questions
- When may an insurer disclose an applicant's personal information without a specific authorization?
- Where are the assets supporting a variable life policy held, and who bears the investment risk?
- Which characteristic of the granting organisation makes a senior designation a prohibited one under Regulation 199?
- Which factor may an insurer properly use in classifying a life insurance risk?
- Which information belongs in a needs analysis for a New York client?
- Which information is gathered when a producer applies the needs approach?
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