In life insurance, the needs approach is used mostly to establish:

A. which type of life insurance a client should apply for
B. how much life insurance a client should apply for
C. which company a client should use when applying for life insurance
D. what the maximum amount the client can spend on life insurance



Answer :

Final answer:

The needs approach in life insurance determines the amount of coverage a client should apply for based on factors like income replacement and debts.


Explanation:

In life insurance, the needs approach is primarily used to establish how much life insurance a client should apply for.

Needs approach involves evaluating various factors like income replacement needs, debts, and future expenses to determine the appropriate coverage amount.

For example, if a client has dependents and significant debts, a higher life insurance coverage amount would be recommended to ensure financial security for their loved ones.


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