Life Insurance: The Financial Needs Analysis

Part I in a new series explaining the Life Insurance process.
Life Insurance: The Financial Needs Analysis | CM Connect Blog

Life Insurance: The Financial Needs Analysis

At Crystal Metz Insurance Agency, we have found that many people avoid investing in life insurance coverage because they don’t understand the process, assume they can’t afford it, or are worried that they won’t qualify. 

We’re breaking down these concerns in a new series of blogs, explaining the life insurance process from start to finish so that you can fully understand how it works, how to get it, and why you want it. 
Today, we’re discussing the Financial Needs Analysis.
Life Insurance:  The Financial Needs Analysis
First things first, when investing in life insurance, you need to decide how much coverage you will actually need. Never, ever agree to a policy based on a random amount of money or a good “guesstimate” (yes, we have heard that one before!). 
Since money is an important part of life, ensuring your family, or whomever you leave behind, has the right amount of financial support is vital. 
We start this process by completing a Financial Needs Analysis (which is much more simple than it sounds). Basically, this is a quick overview of your current income, current bills, debt, mortgage payment, partner’s income if applicable, and other lifestyle based spending.


Life Insurance:  The Financial Needs Analysis
Next, we compare this to what the total cost would be for funeral expenses, time for family, children or partners to take time off work, possible mortgage balances, the amount needed to replace your lost income and bills that will continue even when you are not around. 
Then, we examine what coverages or plans you may already have in place, as well as additional funds you may choose to leave for your partner, family or friends such as an inheritance, pet care, education, etc.
Finish up with a little math, and now we both know exactly how much coverage you need to invest in!


Life Insurance:  The Financial Needs Analysis

Why is this so important? 

Because we want to ensure you get the right coverage for your unique insurance needs. We will never provide a policy someone doesn't need or want. 
On the other hand, you may not realize how much money your partner or family actually needs to continue their existing lifestyle. It may be much more than you expected - which is all the more reason to invest in life insurance coverage!

Have questions? Give us a call at 403.526.1345 or book an appointment here

Stay tuned for Part II: Your Life Insurance Options and Part III: The Real Cost of Life Insurance. 


Life Insurance:  The Financial Needs Analysis