Which factor is NOT listed as a factor in calculating life insurance for a client?

• A. Client's credit score
• B. Current life insurance death benefit amount
• C. Survivor income and resources
• D. Life expectancy of survivor

Answer: (A)

Life insurance needs analysis focuses on how much protection is required to replace income and cover ongoing expenses after the client’s death, given the resources already in place. The current life insurance death benefit amount directly affects how much more coverage might be needed since you’re aiming to bridge any gap between future needs and existing protection. Survivor income and resources look at what the beneficiary already has or will have to rely on, such as pensions, savings, or other income, to determine how much additional coverage is necessary to sustain them. Life expectancy of the survivor helps decide how long the protection should last, guiding both the amount and the term of the policy to ensure funds are available for the needed period.

Client's credit score is not used when calculating life insurance needs or pricing. Underwriting for life insurance typically considers health, age, smoking status, family history, and similar factors, not credit scores.