Joe wants to purchase a life insurance policy on his own life. He is interested in learning about the various approaches to determine the amount needed. Which of the following is not true regarding the three most common approaches?

a. The human life value method estimates the present value of income generated over a person's work life expectancy and is then adjusted for the expected consumption of the survivors.

b. The financial needs method evaluates the income replacement and lumpsum needs of the survivors after the insured dies.

c. The capitalization of earnings method determines need by dividing the client’s gross income by the riskless rate of return.

d. In practice a financial planner would utilize all three methods and then determine the client’s needs based on a combination of factors including affordability.