What is typically assessed when determining a couple's life insurance needs for adequate survivor protection?

When determining a couple's life insurance needs for adequate survivor protection, assessing their assets and liabilities is crucial. This evaluation helps to identify how much financial support is necessary for surviving family members in the event of a death.

Assets represent the value of ownership the couple has, such as savings, real estate, and investments, while liabilities include debts and obligations, such as mortgages, loans, and credit card debts. By analyzing both sides of the financial picture, an insurance agent can calculate the amount of coverage needed to ensure that surviving family members can maintain their lifestyle and meet any financial obligations after a death occurs. Ensuring that liabilities are covered means that the surviving spousal partner and dependents will not be burdened with insurmountable debts, while the coverage will also help preserve assets that contribute to the family's overall financial stability.

Other factors, such as home value and investment portfolios, can provide context but do not directly reflect the immediate financial needs after a death. Health status may influence premiums and insurability but does not directly inform the amount of life insurance required for survivor protection. Thus, a thorough assessment of assets and liabilities provides the most accurate and relevant information for deciding on adequate life insurance coverage.