n NISM Certifications
X NISM Series X
Medium

In the Human Life Value method, what factor is primarily considered for estimating life insurance coverage?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The value of the retirement corpus

  2. B

    Future expenses for dependents

  3. C

    Present earning capacity only

  4. The economic value of an individual’s life

    Correct answer

Why this is the answer

The Human Life Value method estimates the amount needed to replace the earning capacity of an individual, reflecting the economic value of their life.

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