The Needs Approach in insurance primarily considers which aspect?

The Needs Approach in insurance focuses on assessing and addressing the specific financial needs of survivors after the policyholder's death. This approach evaluates the various expenses and financial obligations that the surviving family members might face, such as daily living costs, mortgage payments, educational expenses for children, and any outstanding debts. By taking into account these needs, the approach aims to ensure that the survivors are financially secure and able to maintain their standard of living without the deceased’s income.

This consideration is essential for providing a tailored insurance solution that adequately covers the future financial needs of the beneficiaries, rather than merely looking at investment opportunities or the insurer's financial health. It promotes a personal approach to insurance planning, ensuring that the focus remains on the loved ones who will be impacted by the loss. In this regard, the Needs Approach is fundamental in helping families prepare for the unexpected and mitigating financial hardship in times of grieving.