n NISM Certifications
NSM General NISM
Medium

How is the Human Life Value (HLV) concept estimated using a simple rule of thumb?

Practice question from IC 38 Mock Test 13 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    By considering inflation, wage growth, and future earning potential

  2. By calculating the amount needed to generate the annual income the family would require through interest

    Correct answer

  3. C

    By dividing total lifetime savings by the expected lifespan

  4. D

    By multiplying the breadwinner’s annual income by the current interest rate

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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