n NISM Certifications
X NISM Series X
Medium

The Human Life Value approach in insurance determines the amount of life insurance a family needs based on the present value of the expected income that the individual would generate over their working life.

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

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

The Human Life Value approach estimates the economic loss to dependents in case of the death of the breadwinner, based on the present value of future income.

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