Needs Approach
Personal insurance method used to analyze the amount necessary to maintain a family in its customary life-style, should the primary wage earner die. This includes such considerations as:
- immediate needs ("cleanup fund") expenses associated with final medical treatments and burial, inheritance taxes, estate taxes, probate costs, outstanding debt.
- continued income while children are still in school and depend on family support.
- continued income for the surviving spouse after children no longer depend on family support.
- continued income to pay a mortgage, education expenses, emergency expenses, and miscellaneous expenses.
- retirement fund for the surviving spouse.
Popular Insurance Terms
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Same as term Captive Agent: representative of a single insurer or fleet of insurers who is obliged to submit business only to that company, or at the very minimum, give that company first ...
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Situation wherein the agent's conduct causes a client or prospective insured reasonably to believe that the agent has the authority to sell an insurance policy and contract on behalf of the ...
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Essential part of an insurance policy. It names the individual (s) covered, property and locations covered, perils covered, the time a policy goes into force, and its termination date. ...
Requirement that a retired worker can have annual earnings of no more than a stipulated amount in order to receive a full retirement income under Social Security if under age 70. There is a ...
Method of reducing an employee pension according to IRS procedures: Offset method restricted to a DEFINED BENEFIT PLAN under which a mandatory percentage of the monthly Social Security ...
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