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Insurance & Risk Management
10. Chapter 11: Life Insurance/Amount of life insurance to own
10. Chapter 11: Life Insurance Illustration
Syllabus Slides

Amount of life insurance to own

01.Core Concepts

To calculate the amount needed under the human life value approach: Estimate the individual’s average annual earnings over his or her productive lifetime Deduct taxes, insurance premiums, and self-maintenance costs Using a reasonable discount rate, determine the present value of the family’s share of earnings for the number of years until retirement ‹#›