Which of the four methods would result in the most reasonable estimation of insurance need?

There are four ways to determine insurance requirements: asset replacement, annuity present values, life-value approach and benchmarking by industry. The present value annuity method is the one I think will give the best estimate of the insurance needs. This method takes into account all future expenses associated with a person’s death such as funeral costs, educational expenses for their children and any debts they may have. This calculation is accurate because it takes inflation into account and also considers current/future financial conditions. Additionally, this method allows for flexibility as it can be tailored according to individual needs & preferences while also providing long-term financial security should something unexpected occur.

In comparison to other methods such as asset replacement which only looks at current assets & liabilities or industry specific benchmarks which provide a general estimate based on averages across sectors this approach provides more comprehensive coverage making it ideal for those who require greater certainty over their financial outlook if/when faced with unfortunate events.

In conclusion, using the present value of an annuity approach when estimating insurance need results in more accurate & comprehensive calculations making it one of the best options available when looking to make sure you have adequate coverage going forward.