Which approach requires calculating probable future earnings, incorporating factors like wages and inflation?

The Human Life Value Approach is centered on calculating the economic value of an individual’s future earnings, taking into account various factors such as wages, inflation, and the potential for future income growth. This method emphasizes the financial impact of a person's death on their dependents and is grounded in the concept that a person's life has quantifiable financial worth based on their ability to earn income.

In this approach, the calculation typically involves projecting the individual’s expected earnings over their working life and adjusting for inflation to reflect the true future value of money. This allows for a comprehensive analysis of how much life insurance coverage would be adequate to provide for beneficiaries in the event of the policyholder’s untimely death.

Other methods mentioned do not focus primarily on projecting future earnings. The Financial Need Assessment considers the various needs and obligations of dependents without necessarily calculating future income loss. The Income Replacement Strategy does involve income calculations but is generally more about replacing current income rather than projecting future earnings over an individual's working life. Expense Management Technique focuses on managing current expenses rather than considering future earning potential in the context of life insurance needs.