Roxanne includes emergency funds and liquid assets in her life insurance requirements by using the ____...

Roxanne includes emergency funds and liquid assets in her life insurance requirements by using the ____

Multiple Choice

A. mortality tables method.

B. double income no kids method.

C. family need method.

D. income replacement method.

E. working partnership method.

Solutions

Expert Solution

C: Family need method

This method estimates the needs of the family by taking into account all present liquid assets of the family. It also considers the emergency funds available with the family before deciding on the life insurance requirements.

The other methods do not consider present funds while considering the life insurance needs.

jeff jeffy answered 1 year ago

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