As per HLV concept, the amount of insurance one can buy could be _________ times of one’s annual income.

A. 5 to 10 times

B. 10 to 15 times

C. 25 to 50 times

D. 50 to 100 times

Answer: Option B

Solution(By Examveda Team)

As per HLV concept, the amount of insurance one can buy could be 10 to 15 times of one’s annual income. We have already seen that an asset is a kind of property that yields value or a return. For most kinds of property the value is measured in precise monetary terms. Similarly the amount of loss of value can also be measured.