Question

What is the income multiple method of calculating insurance cover?

a.

Takes into account the present value of the future earning potential of an individual

b.

Takes into account the value of financial liabilities and responsibilities of an individual

c.

Takes into account the age and income of the individual

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (c).Takes into account the age and income of the individual Explanation:The income multiple method of calculating insurance takes into account the age and income of the individual.

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Q. What is the income multiple method of calculating insurance cover?
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