Page 16 - Life Assurance
P. 16
From this sum the following deductions
would be made:

(1) An allowance for taxes, business expense,
…, etc.

(2) An allowance for the workers owns’
maintenance.

Assuming the total of the above items .The
question is "What sum of money now on hand would
produce the annual payment (the income) for 25
years assuming a certain percent interest, reference
to an annuity table .

2/4/3 Needs Approach:

1- Preface:

Another method for measuring the loss to
the family in the case of the death of a person is
the need approach.

From this viewpoint, the value lost is
measured by adding together sums necessary to
meet certain family needs for income during
various periods of life. For example,

- To pay last expenses such as funeral,
debts and taxes.

- The sum necessary to provide a monthly
income to the family during child-raising period
(at certain percent).

Life21/life/life08

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