easy · Certified Financial Planner Estate Planning

Farley's planner is using the 'Human Life Value' approach to determine life insurance needs.

Which of the following best describes what this calculation represents?

  1. The total replacement cost of the individual's home and personal property.
  2. The sum of the survivors' actual cash requirements minus existing resources.
  3. The capitalized value of the individual's future earnings stream.
  4. The amount needed to pay off all debts and final estate settlement costs.

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