Q710
As per HLV concept, the amount of insurance one can buy could be _________ times of one’s annual income.
A.
5 to 10 times
B.
10 to 15 times
AnswerC.
25 to 50 times
D.
50 to 100 times
Answer: Option B
Solution
Answer: Option B
Solution:
As per HLV concept, the amount of insurance one can buy could be 10 to 15 times of one’s annual income. We have already seen that an asset is a kind of property that yields value or a return. For most kinds of property the value is measured in precise monetary terms. Similarly the amount of loss of value can also be measured.