n NISM Certifications
X NISM Series X
Medium

The amount of life insurance cover depends primarily on:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The economic value of a person's life

    Correct answer

  2. B

    Present value of retirement corpus

  3. C

    Only the current earning capacity

  4. D

    The total assets owned

Why this is the answer

The Human Life Value (HLV) concept calculates the insurance amount based on the present value of the income that a person would earn over their working life, to provide financial security to dependents.

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