Scenario 79: Which of the following describes the 'human life value' approach to determining life insurance needs?

Question: Scenario 79: Which of the following describes the 'human life value' approach to determining life insurance needs?

Answer options: ✅ Calculates the present value of all future earnings of the individual.

• Estimates the amount of capital needed to generate income for a beneficiary.
• Focuses on covering specific debts and final expenses.
• Determines the cost to replace the services provided by the deceased.

Correct answer: Calculates the present value of all future earnings of the individual.

Explanation: The human life value approach attempts to quantify the economic value of an individual's life by calculating the present value of their projected future earnings. The correct answer is "Calculates the present value of all future earnings of the individual.". This capacity-fill scenario 79 reinforces the same competency for the cfp bank and follows the certified explanation standard.