A) List and explain the different categories of needs life insurance can fill in the event...

A) List and explain the different categories of needs life insurance can fill in the
event of a premature death. Separate your list into permanent and temporary
needs.

Expert Solution

Answer: The life insurance policies offer a number of categories of need.

Some of the temporary needs that life insurance can satisfy are

Taking care of the immediate liabilities of the deceased: The proceeds from the life insurance can help the family of the deceased to pay his or her immediate liabilities
Taking care of the ongoing expenses: The proceeds from the policies can be used to fund the immediate ongoing expenses of the family of the deceased

Some of the permanent needs that it may satisfy are

The proceeds from the life insurance may help the family of the deceased to purchase a permanent residence
The proceeds from the life insurance may help the family of the deceased to start a new business
The proceeds from the life insurance may help the family of the deceased to fund the education of the children

keosha answered 2 years ago

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