Life Insurance Needs Assessment Resources for Insurance Agents

Life Insurance Needs Assessment Resources for Insurance Agents

Selling Life Insurance to Those Who Don't Understand the Need

Selling life insurance to younger populations is all about education. As we discuss in our eBook, Millennials & Insurance: How to sell to the most underinsured generation yet, most Millennials don’t see the need for life insurance and they often highly overestimate (by 213%!) how much it costs to have.

As agents, you’re the expert who can help them determine how much life insurance they need. You likely have some resources from carriers or from your insurance agency that help you walk clients through the various factors affecting how much life insurance they need. However, the more resources the better.

We gathered together some online resources we found when it comes to assessing the need for life insurance. Use these in tandem with what you already have to provide the best experience possible for your clients.

Online Needs Assessment Calculators


From Insurance Companies:

We came across another way to calculate life insurance needs from Kiplinger. Kiplinger argues that some calculators, and even some advisors, will estimate life insurance needs far above what a client actually needs. Every model and calculator is different, but this model strives to simplify the calculation and may provide a lower amount for clients who don’t need a substantial amount of coverage yet.

Kiplinger's Simple Solution

Item Amount
Final Expenses $15,000
Outstanding Mortgage + _____________
Outstanding Student Loan Debt + _____________
Outstanding Car Loan Debt + _____________
Any Other Outstanding Burdensome Debt + _____________

Education Expenses For Children (optional)

$32,000/yr. (private), $9,500/yr. (in-state public), $24,000/yr. (out-of-state public)
Take one of these 3 numbers and multiply by 4 years and by the number of children you have

+ _____________

Income Replacement

Replace 50% of what you currently make until retirement age)

+ _____________
Estimated Life Insurance Need = _____________

Kiplinger also recommends these calculators:

Overall, there are some basic factors every client will need to consider when purchasing life insurance. Those are:

  • Their income
  • A spouse’s income
  • Child expenses
  • Mortgage
  • Private student loans
  • Business expenses
  • Other debts that would be a burden on family members

Keep this list handy or even create a small card or handout as a reminder for clients when they leave the meeting with you.

Then, it’s all about follow-up. Check out our eBook about automating processes like prospect follow-up to be sure you never miss out on a sales opportunity.

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Kelsey Rosauer

By Kelsey Rosauer on December 2, 2016 in Selling

Kelsey is the Marketing Brand Specialist at AgencyBloc. She plans and creates educational resources to help our customers organize, automate & grow their insurance agency. Favorite quote: "I am convinced that life is 10% what happens to me and 90% how I react to it." —Charles R. Swindoll  More articles


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