When determining life insurance needs, what is a significant factor to consider?

When determining life insurance needs, a significant factor to consider is the client's age and health status. This is crucial because these elements directly impact the risk assessment associated with underwriting the insurance policy. A younger client in good health typically has a lower likelihood of a claim being made in the near term, suggesting that they might require less coverage compared to an older client or one with pre-existing health conditions. Additionally, age and health influence the premium rates of the policy, which can affect the client's decision on how much coverage is affordable and necessary.

While the number of dependents is also essential in assessing overall life insurance needs, the foundational considerations of age and health create the baseline for determining the level of coverage that would be appropriate. The availability of insurance advisors and the client’s real estate holdings are relevant to the broader financial planning but do not directly influence the assessment of life insurance requirements as much as age and health do.