West Virginia State Life Insurance Practice Exam

Which factor does NOT affect an applicant's need for life insurance?

1. Age of the applicant

2. Self-maintenance expenses

3. Health status

4. Number of dependents

The correct answer is: Self-maintenance expenses

An individual's need for life insurance is influenced by several personal factors, but self-maintenance expenses are not typically a direct factor. Unlike age, health status, and the number of dependents—which all relate closely to the potential financial impact and obligations associated with the applicant's life—self-maintenance expenses pertain primarily to the applicant's personal financial situation and lifestyle choices. These expenses reflect how much it costs for the individual to maintain their own needs and comfort rather than the potential financial responsibilities towards others in the event of their death. Life insurance is primarily about providing financial protection to dependents or beneficiaries, addressing circumstances that would affect others financially. Therefore, while self-maintenance expenses provide context for an individual's financial health, they do not directly influence the calculation of the life insurance coverage needed to adequately protect dependents or settle debts after the individual's passing.