What approach analyzes the predicted needs of a family after the premature death of the insured?

The Needs Approach is a method that focuses on assessing the financial requirements of a family following the untimely passing of the insured individual. This approach involves calculating the amount of money that would be necessary to cover various expenses that the family would incur, such as mortgage payments, children's education, day-to-day living expenses, and funeral costs. By analyzing these future financial obligations, the Needs Approach helps in determining the appropriate amount of life insurance coverage that should be in place to ensure the family remains financially stable.

This approach takes into account the unique financial situation of the family, including their current assets, debts, and future income needs. It emphasizes the importance of tailoring life insurance coverage to meet the specific needs and circumstances of the insured's dependents, ensuring that they are sufficiently supported in the event of a loss.

The other options, while related to insurance concepts, do not directly analyze the predicted needs of a family in such a manner. Key-Person Insurance pertains to protection for a business in the event of the loss of an essential employee; Term Life Insurance refers to a type of life insurance that provides coverage for a specific duration; and a Deferred Compensation Plan is related to employee benefits rather than family financial needs post-death.