Life Insurance Basics
Which information is gathered when a producer applies the needs approach?
Answer and explanation
Answer: B. The needs approach prices the survivors' actual requirements, so it takes in debts, income needs, education and final expenses, then subtracts assets and cover already in place. Any single item on its own is too narrow a basis for the calculation.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, needs approach
More life insurance basics questions
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- What separates permanent life insurance from term insurance?
- What should a producer do when delivering an issued life insurance policy?
- What standard does New York's Regulation 187 apply to a producer's recommendation on a life policy or annuity?
- What underwriting difference distinguishes group life from individual life insurance?
- What use of a senior-specific certification does New York's Regulation 199 prohibit?
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