01.Core Concepts

Under the needs approach, the amount needed depends on the financial needs that must be met if the family head should die The calculation should consider: An estate clearance fund Income needed for a one- or two-year readjustment period Income needed for the dependency period, until the youngest child reaches age 18 Life income to the surviving spouse, including income during and after the blackout period Special needs, e.g., funds for college education and emergencies Retirement needs ‹#›