10. 11. . Briey explain how the human life value approach differs from the needs approach in determining the amount of life insurance an individual should purchase. What is the relationship between the two approaches? . What, if any, are the defects in using the human life value concept in determining the amount of life insurance an individual should purchase? . The need for life insurance varies with the individual's lifestyle. How does this need differ for single individuals, childless couples, and persons with children? One tool for dealing with the risk of outliving one's income is a life annuity. Briey explain how a life annuity is able to do this. . Explain why the disability needs for a particular individual are likely to be even greater than the needs in the case of premature death. "On rst consideration, it might seem that the risk of income loss resulting from premature death is universal. After all, no one lives forever. But death does not automatically result in nancial loss." Explain why you agree or disagree with this statement. Explain what is meant by the statement that term insurance is pure protection. . Under a whole-life policy, the overpayment by the insured during the early years of the contract offsets underpayments in later years. This being the case, the reserve should reach a peak and then gradually decline. How do you explain the fact that it does not? . Under a whole-life policy, the amount payable in the event of the insured's death can be viewed as consisting of two parts. Explain this concept. Life insurance may be classied according to the manner in which it is marketed. Identify the three classes of insurance based on this classication and explain the distinguishing characteristics of each. Discuss the potential for adverse selection when insureds exercise the renewability or convertibility option in a term life insurance policy. \"Which is more likely to be affected by adverse selection