How do we determine the amount of life insurance coverage
that an individual client needs? This is a question that far too many Americans
don’t have an answer for. Recent studies indicate that most adults lack the
coverage necessary to protect their loved ones, and even worse, almost
two-thirds admit that they don’t even have a personal life insurance agent to
help them find the coverage they need. These days, a careful planning session
that includes a survivor needs analysis is a necessity — and it isn’t being
treated as such. The result? Millions of Americans are going about their
everyday lives, completely oblivious to the potentially disastrous consequences
their families could face if their life were cut short.
So, how much is enough?
Clients are going to ask their life insurance agents this
all the time. There are well-known methods for determining client’s life
insurance Plans needs, such as Capital Needs Analysis, Human Life Value,
and Comprehensive Needs Analysis. The real question, though, is not the whether
or not the amount of life insurance coverage is enough, but whether the
coverage itself is meeting your client’s needs. During a survivor needs
analysis session, some important factors individual to each client have to be
considered, such as:
·
Family Size
·
Stage of Life
·
Household Income Contribution
Possibly more important, though, are the factors specific to
the survivors, since any policy is about how to protect them after the loss of
the insured. These factors include, but are not limited to:
·
Living Expenses
·
Immediate Cash Needs
·
Debt and Mortgage Cancellation
·
Income Replacement
·
College Funding Needs
·
Inflation and Time Value of Money
·
Taxes
·
Existing Savings Plans and Social Security
·
Fact-Finding Analysis
Part of our job at Silver Side Insurance Marketing is
helping agents and clients find the insurance needs that they may have missed
or overlooked, through a survivor needs analysis. These different needs can be,
but are not limited to:
·
Life Insurance for Family Needs
·
Life Insurance for Business Needs
·
Buy/Sell Planning
·
Estate Planning Analysis
·
Estate Liquidity
·
Retirement Planning Needs and more
By looking at these needs, you can help your clients
determine if their life
Insurance Plans coverage is adequate enough to protect their loved ones in
the event of their untimely passing. Different life insurance products will
benefit certain clients more than others, so be sure to look at the specific
products that SilverSide and our trusted insurance carrier partners offer.
Watch Helen’s story and see just how SPL benefits her.
[source: http://silversideinsurance.com/do-i-really-need-life-insurance]
