In life insurance, a needs-based approach emphasizes which of the following?

The needs-based approach in life insurance focuses on assessing the financial obligations and the needs of the insured's dependents. This approach is centered around understanding how much coverage is necessary to protect the loved ones and ensure financial stability in case of the insured's untimely death.

By focusing on the specific financial needs, including debts, daily living expenses, education costs for children, and future obligations, an underwriter or agent can determine the adequate amount of life insurance coverage that would secure the family's financial future.

This perspective prioritizes the practical needs of those who would be impacted financially by the loss of the insured, rather than merely considering the insured's income level, investment portfolio, or demographic factors such as age and gender. These latter factors can influence underwriting decisions but do not directly address the critical aspect of financial protection for the dependents, which is central to the needs-based approach.