Page 19 - Life Assurance
P. 19
ficient amount of life assurance to
liquidate the outstanding balance of the
mortgage.
The needs approach thus motivates the
purchase of insurance for a given objective.
Since these needs arise at different times
through out life, the need approach also
provides a guide as to which need should have
priority and which type of insurance should be
purchased.
Naturally this technique produces a different
figure from the capitalization of income
approach because of different assumptions
underlying it.
The needs approach seems to be a more
realistic approach to the problem of deciding
upon types of life assurance to buy and when to
buy them.
The capitalization of income approach
may be more useful in determining the total
value of a human life for such purposes as
justifying what loss occurred when one person
was killed as a result of the negligence of
another.
Life21/life/life08
36
liquidate the outstanding balance of the
mortgage.
The needs approach thus motivates the
purchase of insurance for a given objective.
Since these needs arise at different times
through out life, the need approach also
provides a guide as to which need should have
priority and which type of insurance should be
purchased.
Naturally this technique produces a different
figure from the capitalization of income
approach because of different assumptions
underlying it.
The needs approach seems to be a more
realistic approach to the problem of deciding
upon types of life assurance to buy and when to
buy them.
The capitalization of income approach
may be more useful in determining the total
value of a human life for such purposes as
justifying what loss occurred when one person
was killed as a result of the negligence of
another.
Life21/life/life08
36
