Needs Approach
Personal insurance method used to analyze the amount necessary to maintain a family in its customary life-style, should the primary wage earner die. This includes such considerations as:
- immediate needs ("cleanup fund") expenses associated with final medical treatments and burial, inheritance taxes, estate taxes, probate costs, outstanding debt.
- continued income while children are still in school and depend on family support.
- continued income for the surviving spouse after children no longer depend on family support.
- continued income to pay a mortgage, education expenses, emergency expenses, and miscellaneous expenses.
- retirement fund for the surviving spouse.
Popular Insurance Terms
Modified endowment insurance policy under which the insured receives one-half the death benefit as the maturity value of the policy. ...
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Physical, moral, or financial circumstance of a life insurance applicant that sets him or her apart from a physically, morally, and financially sound standard applicant. The underwriting ...
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