Which insurance approach focuses on individual needs assessment?

The Human Value Approach is centered on assessing the individual needs of a policyholder, particularly in terms of their financial contributions to their dependents and loved ones. This approach takes into account various factors such as an individual's earning potential, the number of dependents, and the specific needs that those dependents may have over time.

By focusing on these individual characteristics and circumstances, the Human Value Approach aims to provide a more tailored and relevant insurance coverage that aligns with what a person actually requires to ensure financial security for their beneficiaries in the event of their death. This makes it distinctively user-focused compared to other approaches that may rely more heavily on predefined financial metrics or general market conditions.

In contrast, approaches like the Cash Value Approach, Market Value Approach, and Term Value Approach do not specifically prioritize individual assessments in the same way. They often focus on different aspects of insurance value, such as accumulating cash value over time, referencing market prices or trends, or emphasizing temporary coverage without regard to individual financial needs. This highlights why the Human Value Approach stands out as the most personalized and needs-oriented option.