Final answer:
The incorrect statement about the income method of life insurance is that it does not consider your age, while in reality, age can be a significant factor in the calculation of insurance needs. The income method is centered on replacing the lost income for dependents and is relatively easy to use.
Step-by-step explanation:
The question is about the income method of determining life insurance needs. The statement that 'it does not consider your age' is the one that is not true of the income method of determining life insurance needs. This method primarily focuses on replacing the lost income of an individual in the event of their death, ensuring that their dependents can maintain their standard of living. However, unlike the statement suggests, age can be an important factor in calculating life insurance needs as it can affect the length of time for which income replacement is required.
Savings and investments are indeed typically not factored in the income method, which instead focuses on the projected future earnings of the individual. Additionally, the number of children in the family may or may not be directly considered, as the main consideration is the total amount of income that needs to be replaced, though this could theoretically increase with more dependents. Lastly, the income method is known for being relatively easy to use as it involves fewer variables and is based on a straightforward concept of income replacement.