New York State Life Insurance Exam Questions Practice Question
Predicting an individual's future earning potential and determining how much of that amount would be devoted to his dependents incorporates the
Correct Answer: D
Rationale: The human life value approach focuses on estimating an individual's future earnings and the financial support they provide to dependents. This method considers potential income over a lifetime, making it essential for assessing the economic impact of a person's absence.
The loss exposure approach (A) emphasizes risks and potential financial losses rather than income projections. The salary projection approach (B) specifically deals with estimating future salaries but does not encompass the broader financial responsibilities to dependents. The personal needs approach (C) focuses on individual needs rather than future earning potential, limiting its applicability in this context.
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