Comprehensive and Detailed Step by Step Explanation:
Theneeds approachassesses financial requirements to determine the appropriate amount of life insurance.
Covering unexpected expenses (B):Emergency reserve funds help beneficiaries handle unforeseen costs, such as urgent repairs, medical emergencies, or temporary loss of income.
College tuition and books (A):This falls under education funding needs, not emergency reserves.
Paying off mortgages (C):This is categorized as debt repayment, separate from the reserve fund.
Providing retirement income (D):This is a long-term goal that requires separate planning, not immediate financial reserves.
[References: Maryland Insurance Needs Analysis Guidelines and Life Insurance Planning Practices., ]
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