Which types of information are essential for an insurer to determine the value of someone's life in the needs approach?

The needs approach to determining the value of someone's life focuses on evaluating various financial obligations and needs that would arise upon an individual's death. This includes looking at the total financial situation to ensure that dependents can maintain their standard of living and cover necessary expenses.

Income is a crucial factor because it helps determine the financial support that the family would need to replace lost earnings. Debt status is also significant, as existing debts such as loans and credit card obligations must be accounted for to understand how much financial burden would remain after the individual's passing. The mortgage is another critical component because it represents a major financial obligation that often requires ongoing payments, and settling this would be essential for a family's financial stability. Lastly, assessing overall expenses is vital to ensure that the family can maintain their lifestyle without the deceased's income.

By combining income, debt status, mortgage, and expenses, insurers can create a comprehensive picture of the financial landscape and ensure that the insurance coverage is adequate to meet the future needs of the beneficiaries. This holistic view is essential in determining the necessary life insurance coverage for effective financial planning.