What factors go into calculating a client's life insurance needs?

• A. Current life insurance death benefit amount (s) if any survivor income and resources, expense to cover, and life expectancy of survivor
• B. Investment returns
• C. Age of the client
• D. Client's employment status

Answer: (A)

The main idea is to estimate how much money the survivors will need if you were no longer there. That starts with what you already have in place: the current life insurance death benefit you may carry, because that payout directly reduces any extra coverage you’d still need. Then consider what survivors lose without you: income they rely on, other resources they can tap (savings, investments, government benefits), and how long those resources must last. This makes up the expense side—covering ongoing living costs, debts like a mortgage, final expenses, and any future needs such as education. The length of time the survivor will need support matters too, so you match the benefit period to the expected remaining life expectancy of the survivor. Investment returns aren’t the primary factor in determining how much life insurance is needed, though they can influence how the payout should be invested or used. Age or employment status may affect underwriting or premiums, but they don’t define the core amount of coverage needed.