Create an account
Human Life value Technique
amt of LI to purchased is the PV of the family's share of the deceased breadwinner's future earnings. usually says you need more than necessary. used in court
Salary multiplier approach
LI amt is multiply your income times 10. not good because everyone has different needs
Capital retention approach
luxury approach. purchase enough LI so the income generated from invested LI proceeds plus other income will produce a desired income level in perpetuity EX endowment technique
T-acct; determine LI needs by determining financial needs if breadwinner dies compared to financial needs to existing financial resources and purchase LI for the difference.
Financial planning process
1) gather info 2) establish objectives 3) analyze info 4) develop a plan (write will) 5) implement plan 6)monitor and take corrective action
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