Life insurance planning is the process of analyzing a client's financial situation, family responsibilities, business interests, and long term goals to determine how much life insurance is needed, what type of policy is appropriate, and how coverage should be structured. It integrates needs analysis, product selection, ownership and beneficiary design, tax considerations, and coordination with other planning tools such as wills, trusts, and retirement accounts. Good life insurance planning recognizes that needs change over time and that policies should be reviewed periodically. It considers income replacement, debt payoff, education funding, business continuity, estate liquidity, charitable goals, and protection against medical or long term care risks through riders or supplemental policies.

In everyday practice, advisors use life insurance planning as a framework for conversations with families, professionals, and business owners. They gather data about income, assets, liabilities, dependents, and existing coverage, then run needs analyses that illustrate how survivors would fare financially if a wage earner died. For business owners, the planning process expands to include buy sell obligations, key person risks, and succession strategies. Advisors evaluate whether term, permanent, or a combination best fits the objectives and cash flow, and whether coverage should be owned individually, by a business, or through a trust. Over time, life insurance planning continues through periodic reviews that adjust coverage as children grow, debts change, or businesses evolve. By approaching life insurance as a planning discipline rather than a product pitch, advisors build credibility, uncover more holistic needs, and help clients view coverage as an integral part of their overall financial roadmap.