Needs Assessment Script
Life insurance offers financial protection for your family and loved ones in the event of a tragedy, and provides you and your family with peace of mind. Proceeds from life insurance can be used in many ways. It can provide security for your family, allowing them to pay off your mortgage, any other debt, final expenses, and leave money to replace lost income. Life insurance is a fundamental part of a financial plan.
By spending a few moments to complete this Life Insurance Needs Planner, we can determine the amount of money your family needs to remain “in their own world” if your income suddenly stops.
Before we begin compiling this information, I need to ask a couple of questions. Is that alright? Mr. Prospect, what is your age. Do you use tobacco? Mrs. Prospect, what is your age and do you use tobacco?
Mr./Ms. Prospect,let’s determine how much income you would need in order for your spouse/dependents to continue the lifestyle to which they are accustomed. Mr. Prospect, what is your current income? The amount we are looking for here is your gross income before taxes. And Mrs. Prospect, are you currently employed outside the home? (If answer is “yes”) What is your current income? Does your family have any other source of income other than your employment? Total the present income.
Let’s assume for a moment that life will go on exactly as today, despite your death, Mr. Prospect. How much income will your spouse/dependents need to continue to pay the mortgage, buy food and clothing, pay utilities, child care, etc. If prospect unsure of amount…Many authorities suggest 80% to 100% of their current gross income. Whatever you determine the proper income level to be, it is very important to be realistic. Record this amount in the shaded area entitled Income Needed to Remain in Their Own World (A).
Let’s take away your income now and list under Survivor’s Income the amount (if any) of your spouse/dependents’ salary. What could your spouse/dependents expect to receive from Social Security? Is there any other source of income that would continue upon your death? Add the total under Total Expected Income (B).
To determine the Net Income Needed (C), subtract B from A.
To determine the Capital Sum to Produce Net Income Needed (D), divide the Net Income Needed © by a reasonable and realistic rate of return.
Next, let’s take a look at what cash needs you might have in the future. Do you currently own a final expense policy that could pay for any unpaid medical bills, funeral and burial expenses, charge cards and other installment debts, or estate settlement costs? If so, list next to Final Expenses. If not, estimate cost and enter that amount next to Final Expenses.
Note: According to the U. S. Federal Trade Commission: “A traditional funeral, including a casket and vault, costs about $6,000, although ‘extras’ like flowers, obituary notices, acknowledgment cards or limousines can add thousands of dollars to the bottom line. Many funerals run well over $10,000. The cost of the burial is additional.” (See
Mr./Ms. Prospect,do you have an emergency fund for home repairs or appliance and automobile repairs or replacement or medical emergencies?. If not, estimate cost and enter that amount next to Emergency Fund. Do you have money set aside for your child(ren)’s education?
Note: According to The CollegeBoard, the annual average cost of a four-year private college is $20,082. The annual average cost of a four-year public college is $5,132. The average surcharge for out-of-state or out-of-district students at four year colleges is $7,291 per year. (See )
Enter the average cost for a public 4-year college as stated by The College Board. (OR) Enter the average cost for a private 4-year college for undergraduate (add graduate, if applicable) times the number of years of expected attendance. What about additional needs such as your child(ren)’s wedding, or a retirement fund.
Total Final Expenses, Emergency Fund, College Fund, and Other and enter the amount for Total Cash Needs (E).
Finally, let’s determine what cash assets are presently available. What would be the estimated total of your checking & savings accounts, CDs, or money markets? List total next to Checking, Savings, CDs, Money Markets. What is the current value of any stocks, mutual funds, bonds, etc., that you may have? List next to Stocks, Mutual Funds, Bonds, etc. Do you presently own any life insurance, either through your employer or that you purchased on your own? What is the death benefit of the policy(ies)? List next to Life Insurance Death Benefit. Do you have any other assets that are not listed above? List next to Other.
SubtractTotal Assets Available (F)from Total Cash Needs (E) to determine Net Cash needed (G). This is the difference between what you need and what you have. You will get a positive number if your Cash Needs exceed your Cash Assets Available, which means you will not have enough cash to meet your needs. Conversely, if the Cash Assets Available exceeds your Cash Needs, you will get a negative number, which means you will have assets available to help reduce the amount of Additional Capital Needed.
The Total Additional Capital Needed is the amount of life insurance that will ensure your family’s financial security. To determine this amount, add the Capital Sum to Produce Net Income Needed (D) and the Net Cash Needed (G).
Note: You will know because of the introductory age questions whether you should present a Senior Security® Whole Life or Foundation Life plan. You will also know if the prospect is a smoker or non-smoker. Finally, you should have a clue as to the prospect’s immediate needs. You will know the amount of additional insurance the prospect needs to ensure the family’s financial security. If this is not amount they wish to cover, you can break it down into individual components. Does he/she own a final expense plan? If there are children, is there a college funding plan in place? Is there a retirement plan in place and, if so, are the proceeds readily available or is there a need for a supplemental plan that would provide immediate cash? If you have listened well during the needs assessment, you will have uncovered the prospect’s hot buttons and will be ready to proceed with your presentation of the Senior Security® Whole Life, the Foundation Life, the 10-pay life w/annuity rider for college or retirement planning, or other appropriate life plan.
Assuming the need is for final expenses, proceed to present the Senior Security® Whole Life or Foundation Life plan, depending on the age.
Mr./Mrs. Prospect, we cannot predict, prevent, evade, avoid, or even postpone death, but we can prepare for it by developing a simple plan to see that our final wishes are carried out and the financial burden is eliminated in advance. Bankers Fidelity Life can help you eliminate that burden.
Bankers Fidelity Life’s Senior Security® Whole Life provides you with immediate, low-cost protection, valuable living benefits and important guarantees. You select the amount of coverage that fits your needs – from $1,000 to $30,000, providing you qualify. There is no medical examination required. Your policy would create an immediate estate for your spouse, children, grandchildren, or anyone you choose.
In addition to a death benefit, whole life insurance accumulates cash value that can be used to provide a retirement income, a savings account, supplemental income or can be used to cover medical expenses or provide cash for emergencies.
I am excited to tell you, Mr./Ms. Prospect,that Bankers Fidelity’s Senior Security® Whole Life policy includes two additional benefits to give you added protection at no additional cost.
A waiver of premium for hospital or nursing facility confinement rider waive your monthly premium payment should you require confinement in a hospital or nursing facility for six consecutive months. The premium is waived for each month you remain continuously confined. With this provision, you do not have to worry about losing your valuable life insurance while you are facing the challenge of illness.
An accelerated death benefit rider provides up to 25% of the face amount of your policy – to be used at your discretion – should you be diagnosed with a terminal illness with a life expectancy of six months or less.
Based on the results Life Insurance Needs Assessment Calculator, Mr./Ms. Prospect,what do you feel would be an amount that would best fit your needs at this time? Let’s see if you might qualify for Bankers Fidelity’s lower, preferred rates. Proceed to application.
10/17/20181