Question

Which of the following statements regarding life insurance needs is / are correct? 1. The human life value approach looks forward for information. 2. The capitalization of income approach looks at right now only for information. 3. The needs approach looks at future needs of dependents but does not consider the estate that the decedent would have built had he lived.

Answer 1

Answer:

The human life value approach looks forward for information.

and

The capitalization of income approach looks at right now only for information.

Explanation:

A life insurance is a form of agreement entered into by an individual and an insurance firm whereby some amount is to be paid to the next of kin of the individual under the insurance. It can also be in the form of payment of bills in the case of the illness of the individual under insurance.

The individual either pays in batches or a one time payment to the insurance agency.

The individual current value is normally considered in analysing his assets and income.