Financial needs approach

Definition:

A method of establishing the amount of life insurance required by an individual by estimating the financial needs of dependents in the event of the individual's death.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Liquid

In context of securities, easily traded or converted to cash. In context of a corporation, the state of having enough cash and cash equivalents to cover short-term obligations.

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