Coverage planning

Life insurance needs analysis

“Needs analysis” can sound like a sales script. Here it means something narrower: write the assumptions in lines that another adult can read, question, and change.

This page emphasizes the DIME list and the coverage gap. A number with a visible mortgage assumption is easier to discuss than a number that arrived from a black box.

Coverage tally

Your planning range

Low
Mid
High
Coverage gap after existing coverage

Audit of your tally (midpoint)

Planning range (midpoint)

When this page helps

You want to prepare for a household conversation; you are taking stock after a major life change; or you need a simple list to bring to a licensed professional without starting from a product pitch.

When it does not

It is not a formal financial plan, an estate plan, or an insurer's needs-analysis document. Do not represent it as any of those things.

How it works

  1. Mark each line as must cover, nice to cover, or not needed.
  2. Check the time horizon behind income replacement.
  3. Decide separately whether the mortgage is a payoff goal.
  4. Compare the total with coverage already in force and write down policy end dates.
Example 1

A new parent highlights education and ten years of income replacement The family may later lower education funding but keep the mortgage line

Example 2

A pre-retirement household uses fewer income-replacement years, no education line, and a smaller mortgage The resulting need can change materially without a universal age-based rule

Common traps

The list is only as current as its inputs
Review it after a refinance, job change, divorce, birth, or major debt change.
Existing coverage should include expiry dates in your notes, not just a total.
A large education line can dominate the result; that is a choice to inspect, not a default to hide.
If the result feels surprising, revisit the lines before shopping policies.

Compare the next question

Questions

A practical analysis can include debt, income replacement, mortgage, education, final expenses, and coverage already in force. NeedTally keeps those items editable.

Related

This is a planning estimate, not insurance, legal, tax, or investment advice, and not a recommendation to buy a policy.