09/29/2026
life insurance | consider your liquid assets
If you are looking for a more accurate estimate of your life insurance needs, consider completing a “DNA test.” A DNA test, or Detailed Needs Analysis, takes into account a wide range of financial commitments to help better estimate insurance needs.
The first step is to add up your needs and obligations. Next, subtract all current assets available.
Any assets that can be redeemed quickly and for a predictable price are considered liquid. Generally, houses and cars are not considered liquid assets since time may be required to sell them. Also, remember that selling a home may adjust a family’s current standard of living.
Needs and obligations minus liquid assets can help you get a better idea of the amount of life insurance coverage you may need. While this exercise is a good start to understanding your insurance needs, a more detailed review may be necessary to better assess your situation.
The cost and availability of life insurance depend on factors such as age, health, and the amount of insurance purchased.
To learn more, contact Jeffrey H. McKinnon, CFP®, CRC®, CRC conferred by InFRE® or Matt Defalco, Financial Advisors at the Service 1st Retirement & Investment Center at 800.562.6049 Ext. 7597 or visit Retirement & Investment Center | Service 1st.
