Alice is 40 years old and earns $35,000 annually. She earns half of the family's income. Use the

multiple-of-earnings approach to determine the amount of life insurance needed. Assume the

investment return on the insurance payout is 10%. How much insurance would you recommend

Alice have? Why? (Show all work.)

What role does life insurance play in the financial planning process?

Why is it important to have enough life insurance?

Explain the purpose of underwriting with regard to life insurance?

What are some factors that underwriters consider when evaluating a life insurance application?

Explain the circumstances under which a single college graduate would or would not need life

insurance.

Name and explain the most common financial resources needed after the death of a family

breadwinner.

What is term life insurance?

Describe the two most common types of term life insurance policies.

Explain how group life insurance differs from standard term life insurance. What do employees

stand to gain from group life?

What is a beneficiary?

What is a contingent beneficiary?

Explain why it's essential to designate a beneficiary for your policy.