Which of the following is NOT considered in the needs approach for determining personal life insurance needs?

The needs approach for determining personal life insurance needs focuses on evaluating the financial requirements of an individual’s dependents in the event of the individual's death. This approach typically considers various obligations and future financial responsibilities that need to be covered to ensure the dependents can maintain their standard of living.

Outstanding indebtedness is a critical factor since it reflects debts that must be settled to prevent financial strain on surviving family members. Mortgages and educational needs are also important aspects, as they pertain to significant ongoing financial obligations and the future educational expenses for children, respectively. Federal and state inheritance taxes are considered too because these taxes can impact the overall financial situation of the beneficiaries and may require liquidity that life insurance can provide.

Future earning potential, while valuable in assessing the full financial picture of a policyholder, is not a direct obligation that must be addressed in the same immediate manner as debts or specific future needs. The focus of the needs approach is more aligned with tangible financial responsibilities rather than potential earnings that could have been realized over a lifetime. Thus, considering future earning potential does not fit within the core set of immediate needs that the needs approach aims to address, making it the correct answer to this question.