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The Failure of "Needs" Analysis

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When it comes to life insurance, most consumers hear sales pitches related to what someone says they "need." Numbers are crunched and computers print fancy reports that show–to the penny–what an individual needs. It is as if a surviving spouse and children should not have one dollar more than what they need.

Has our great country been built on meeting needs ... or meeting wants? Which do you aspire to fulfill ... your needs or your wants?

One lesson from 9-11 was the realization that no one wants to simply have their needs met. Through the cries of families that failed to properly plan, the government stepped in and gave survivors the "human life value" of their deceased loved ones. Among the many spouses of highly-paid executives killed in the World Trade Center, the government's cap on the settlement did not satisfy their desire to have an income stream that kept their lifestyle in tact. It's hard enough to lose a father or a mother ... add to that the stress of losing a house, a neighborhood, school friends, a lifestyle, and a secure financial future.

How is it possible that some of the brightest financial minds, who died in the Trade Center, failed to adequately protect their real value?

Multiple Choice Question

If a man or woman had an annual income of $75,000, would his or her economic value be :
A) $75,000, B) $150,000, or C) $1.9 million (the capital need to generate an annual stream of $75,000, using a safe interest rate)?

The answer is: "none of the above." The economic value exceeds "C" because annual income tends to increase through promotions and inflation. "Human Life Value" would be an even higher number because now we are considering the additional value this person contributes to the family or society.

It is nearly impossible to insure a person for their Human Life Value or even their true economic value. Insurance companies have limits that usually stop long before these numbers are reached.

The point is, most people are grossly underinsured. Few people are directed to think about what they are really worth—to their family, their business, favorite charities, or even our society. Every life has a tremendous value.

At Woolman Financial Group, it’s our job to find a way to offer people the maximum amount of life insurance.  If we could do that for you … what would it mean to those you love?   How would you feel about yourself?

If you knew you were going to die tomorrow, how much life insurance would you want to buy today?

Wouldn't the answer be: "As much as possible"? Why would you want that? Isn't it because you love your family and you want them to obtain your dreams for them ... even if your life is cut short?

So if the maximum amount of life insurance is the amount you'd want if the event occurred, isn't that the amount you should have now since you don't know when the event will occur?

At Woolman Financial Group, we are not focused on calculating "needs". We strive to help clients obtain what they want. When it comes to life insurance, most clients want the maximum.

If you’d like to learn more, click here to contact us.

**Life insurance products contain fees, such as mortality and expense charges, and may contain restriction, such as surrender periods.