Which of the following is not considered in the needs approach to life insurance?

In the needs approach to life insurance, the focus is on assessing the financial requirements of the dependents and ensuring that their future financial stability is secured in the event of the insured's death. This involves evaluating several factors that would impact the financial well-being of those left behind.

When we look at the factors considered in the needs approach, dependents' financial needs are crucial. This includes understanding how much income will be necessary for dependents to maintain their standard of living. Debt repayment is also an important aspect since any outstanding loans or mortgages should be settled to prevent financial burden on the family. Current living expenses must be taken into account because the day-to-day costs of life will still need to be covered.

Future earnings, while significant in a broader financial planning context, are not a direct factor in the needs approach itself. This method emphasizes the immediate requirements of surviving family members rather than predicting potential income growth or earnings of the insured. The approach focuses instead on tangible expenses and financial needs that arise from the loss of the insured, which is why future earnings is not a consideration in this specific framework.