As a life insurance agent, one of the most common and impactful questions you’ll hear from customers is:

“How much life insurance do I really need?”

That’s not just a fun opening line—it’s the core of your first consultative conversation. Helping people understand why they need coverage and how much they should consider positions you as a trusted advisor, not just a salesperson.

Below is a practical framework you can use with prospects—along with how LocalEdge fits into the solution.

Why Customers Need Life Insurance (It’s More Than Just a Policy)

Life insurance isn’t about collecting cash—it’s about protecting financial stability.

Why one may invest in life insurance:

• Replace lost income for dependents
• Pay off debts (mortgage, car loans, student loans)
• Provide for future costs like college tuition
• Cover final expenses (funeral, medical bills)
• Ensure business continuity if they’re a business owner

How to Estimate “How Much” Life Insurance Someone Needs

There’s no single number that fits everyone—but there are some industry-standard methods that can help you guide your customers to their goal. One method is a Needs-Based Analysis, which includes what immediate obligations they have (funeral, medical bills), what debt they have (mortgage, loans), etc. Another method is called the DIME Method, based on a structured approach of debt, income replacement, mortgage balance, and education costs.

There are many ways to estimate how much a person may need, and we have the tools to help you through Assurity’s life insurance calculator. With this calculator, you can calculate a rough estimate of how much life insurance is needed on the spot.

One Thing to Note: Employer Coverage Often Isn’t Enough

Many people assume their employer-provided life insurance is enough—but there’s a critical catch: it usually ends when you leave the company. Whether you change jobs, retire, or get laid off, that coverage typically doesn’t follow you. This can leave families exposed to significant risk if there’s no personal policy in place. Employer plans also tend to offer only a small amount of coverage (often 1× your salary), which rarely meets long-term needs. That’s why it’s important to help clients secure their own policy that stays with them—no matter where their career takes them.

Tips You Can Start Early with Your Customers

• Conversational starters:
  • “Do you have dependents?”
  • “What debts do you currently carry?”
  • “How many years of income replacement do you want built in?”
• Present a few options side-by-side
  • Show them what a 10× income term policy looks like vs. pairing it with a smaller permanent product.
• Review annually
  • Life changes—so should coverage. Birth of a child, home purchase, or job change all impact needs.

Where LocalEdge Can Help
LocalEdge isn’t just another broker—it’s a partner that enables you to serve a wide range of customers’ needs efficiently and effectively.

LocalEdge offers:

• Individual life and health appetite guide
• Group life and health appetite guide

Final Thoughts

For many people, life insurance isn’t a “nice-to-have.” It’s an urgent need waiting to be properly understood. As a new agent, your job is to translate numbers into peace of mind.

Helping your customers determine how much life insurance they need isn’t a one-size-fits-all—but using structured methods and tools gives you confidence, credibility, and clarity when having those important conversations.

Ready to get started with Assurity?

For over 130 years, Assurity has been a source of stability for American families—providing peace of mind through accessible insurance solutions that safeguard what matters most.

Submit an information request here. To contact a LocalEdge teammate, reach out to Bryan Leitzinger at [email protected].