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
Fund in a segregated account to provide for the return of unearned premiums on policies that are canceled. ...
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Case where an insurance company is placed by the state court under the control of the state insurance department. Claims are paid in the order filed until the insurance company's ability to ...
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Money paid through state and federal programs to workers who are temporarily unemployed. The program, which was created by the social security act of 1935, is managed by the individual ...
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