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LLQP (Life Licence Qualification Program) Practice Exam · Question

What is the primary objective of a life insurance needs analysis?

A needs analysis is a process used to identify the financial resources a family would require to maintain their standard of living if a primary earner were to d

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Question: What is the primary objective of a life insurance needs analysis?

Answer options:

  • To calculate the maximum insurance a client can afford. ✅ To determine the amount of insurance needed to cover the financial obligations of the insured's dependents.
  • To choose between term and permanent insurance.
  • To identify the most profitable products for the agent.

Correct answer: To determine the amount of insurance needed to cover the financial obligations of the insured's dependents.

Explanation: A needs analysis is a process used to identify the financial resources a family would require to maintain their standard of living if a primary earner were to die.

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