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All of the following factors are used in the needs approach for determining the amount of required life insurance EXCEPT?

A) the monthly income.
B) the percentage of future income.
C) the emergency fund period.
D) the education fund.

User Mohzameer
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1 Answer

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Final answer:

The education fund is not used in the needs approach for determining the required amount of life insurance; this approach typically includes factors related to the individual's income and future expenses.

Step-by-step explanation:

The question asks which factor is not used in the needs approach for determining the amount of required life insurance. The needs approach typically considers factors such as the individual's income, debt obligations, future expenses for dependents, and financial goals. However, the option that is not used in this approach is the education fund. The education fund is a specific savings goal for a person's dependents and while it could be part of the overall financial planning, it is not directly factored into the calculation of life insurance needs through the needs approach.

User Nitin Bisht
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