---
title: "What Is Needs Analysis? Definition | Epic Life Glossary"
description: "A needs analysis is a review of a family's finances to find how much life insurance is needed. It looks at debts, income, expenses, assets, and goals."
url: https://epicline.preview.multisites.ai/glossary/needs-analysis
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Consumer pricing and coverage concepts

# Needs Analysis

A needs analysis is a review of a family's finances to find how much life insurance is needed. It looks at debts, income, expenses, assets, and goals.

## Why it matters

The agent asks about funeral costs, mortgage, other debts, family income, and savings, then works out the gap. Doing this first prevents selling the wrong amount. A written analysis helps the family trust the number. Results change over time, so repeat it after big life events. Agents should keep notes.

Source: [iii.org](https://www.iii.org/article/how-much-life-insurance-do-i-need)

[Read next, for familiesHow much does final expense insurance cost, and what sets the price?](https://epicline.preview.multisites.ai/guides/final-expense-insurance-cost)

## Where we use this term

-   [Mortgage protection vs term life vs PMI: who does each one protect?](https://epicline.preview.multisites.ai/guides/mortgage-protection-vs-term-life-vs-pmi)
-   [How much does life insurance cost, and what drives the price?](https://epicline.preview.multisites.ai/life-insurance/cost)
-   [Term life insurance: how it works, what drives price, and when it ends](https://epicline.preview.multisites.ai/life-insurance/term-life)

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