When utilizing the needs approach for life insurance, which of the following is NOT usually included in the lump sum created?

When applying the needs approach for life insurance, the primary goal is to calculate the amount of coverage necessary to provide for the financial needs of dependents after the policyholder’s death. This typically includes various critical expenses such as the pay-off of mortgages to ensure housing stability, emergency reserves to handle unforeseen financial demands, and funds allocated for children's education to secure their future.

Employee benefits, on the other hand, are generally not included in the lump sum calculation for life insurance because they are considered ongoing benefits provided by an employer rather than a direct financial obligation that the family would need to immediately cover in the event of a death. The life insurance benefit is designed to address the immediate and long-term needs of the dependents, while employee benefits may continue for a specified time or may not be affected by the policyholder's death at all. Thus, these benefits do not directly factor into the lump sum needed for life insurance coverage.