A quick and simple Needs Analysis that can be done on a napkin in a couple of minutes. Simply ask your client questions A, B, and C in Step 1. Accept whatever answers you get, then follow Step 2. If client's answers are unrealistic, discuss them and do Step 2 again. This is a great starting point, especially when client isn't ready to dig deeply into financial matters. Suggest adding a little more as a cushion if client anticipates having more children, has a child with special needs, is considering business expansion, or would like to leave a legacy gift to charity.

 Step 2. Do the math...

• Add 1 to "A" if there is a spouse
   (3 + 1 = 4)
  
• Multiply sum times "B"
   (4 x $100,000 = $400,000)
  
• Add "C"
  ($400,000 + $150,000 = $550,000)
• This is a minimum client should consider.
  
• Increase for future children, business growth, gifts to charity, or to help raise children with special needs.
  

 Step 1. Ask...

  A. How many children living at home?

       (Example: 3)

  B. How much could it cost to raise each child?

       If no children, how much for spouse?

       (Example: $100,000)

  C. How much total debt?

       (Example: $150,000)