Human-Life Approach

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Human-Life Approach

A way to calculate the benefit of a life insurance policy. One takes the human-life approach when one considers the financial loss to a family if the policyholder died immediately. This includes after-tax wages, benefits, insurance, and so forth. The human-life approach seeks to compensate the dependents of the policyholder for these losses. The human-life approach is used almost exclusively in situations where the policyholder is working.

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