Review Questions

    1. a. Explain the meaning of premature death.

    2. Identify the costs associated with premature death.

    3. Explain the economic justification for the purchase of life insurance.

  2. Explain the financial impact of premature death on the different types of families in the United States.

    1. a. Define human life value.

    2. Describe the steps in determining the human life value of a family head.

  4. The needs approach is widely used for determining the amount of life insurance to purchase. Describe the following needs for a typical family head:

    1. a. Cash needs

    2. b. Income needs

    3. c. Special needs

  5. a.

    1. Briefly explain the basic characteristics of term insurance.

    2. Identify the major types of term insurance sold today.

    3. Explain the situations that justify the purchase ...

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