Insurance Needs Analysis
Free CFP Exam lesson in Risk Management and Insurance Planning. 16 min read, ~2,383 words.
Three methods: income replacement (10-12x, rough), human life value (earnings minus personal consumption, discounted), capital needs analysis (all needs minus all resources = gap). Two rates in the fact pattern = growing annuity formula; one rate = standard annuity. Capital retention (perpetuity, larger number) preserves principal; capital liquidation (PV annuity...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- C.25
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