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

The four methods of estimating insurance need are the asset replacement method, the present value of an annuity approach, the human life value approach and the industry-specific benchmarking. Of these four methods, I believe that the present value of an annuity approach is most likely to result in the most reasonable estimation of insurance need. 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. The calculation takes into account inflation and current/future economic conditions to ensure that an accurate estimation is obtained. 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.