The loss of human life is tragic in many ways. The financial results alone of such a loss can be devastating. If the principal breadwinner dies, the spouse might not be able to maintain the family on social security benefits. If there were two breadwinners in the family, the surviving spouse might not be able to maintain the family’s lifestyle on his or her income alone. The death of a single parent might leave dependent children without an adequate source of support.

Costs Associated with Death
When an individual dies, he or she typically leaves behind certain costs associated with death, which include

• Doctor and hospital bills from a final illness or accident
• Funeral expenses
• Estate taxes
• Debts (credit cards, loans)

In addition, to those individuals leaving behind a family or others who are financially dependent on them for support, the following financial needs will immediately become apparent:

• Mortgage payments
  
• Immediate income needs—to pay for groceries, utilities, car payments, and other day-to-day living expenses
  
• Longer-term needs—money to pay for children’s education, retirement income for a spouse

The insurance producer is the person most qualified to help potential insureds select the contract of insurance that will best meet their needs. This needs analysis can be accomplished by identifying the specific financial objectives of the individual by means of a fact-finding interview.