Unfortunately, no Insurance Agent knows how much life insurance any individual or couple needs without determining through probing questions, “what is the actual need?”. The only way to discover the real need is what we call a, LIFE NEEDS ANALYSIS “LNA”. An LNA is not complicated and is composed of uncovering the answers to these types of questions:
A) What is the total amount of debt the individual has? – (mortgage balance, auto loans, credit cards, student loans, etc.)
B) For a couple or a parent with dependent children; what is the total amount of annual income per person and how many years income protection does the spouse or dependent children need?
C) Does the individual want to be buried or cremated and how much money is needed for those expenses?
D) How much extra money do you want for your final incurred medical expenses, spouse, children for things like college, marriage and or to start a business. Also to be considered for the Philanthropist, if they want to leave money for a charitable organization or other benevolence.
An Insurance Agent who cares for their customers will ask these or similar questions and will create solutions based on the actual need.