Financial justification is the documented rationale for the amount of life insurance requested, demonstrating insurable interest and proportionality to income, assets, debts, or business value. Carriers use it to prevent over-insurance. Methods include income multiples, human-life value, capital-needs analysis, and business valuation. Sound justification supports suitable, defensible face amounts.

For large cases, advisors prepare capital-needs analysis, income multiples, or business valuations to justify face amounts. Carriers rely on this to confirm suitability and insurable interest. Good justification smooths underwriting and defends recommendations.