Melissa 27 and John 32 are a young healthy married couple with 2 kids, Aidan is 2 and Jenna is 9 months. Melissa works full time as a public relations executive for a private advertising firm making $145,000 annually. However, since Jenna was born, John and Melissa decided that John would step down from his job as an assistant bank manager (his annual salary was $85,000), and stay home to take care of the kids. Presently, John and Melissa own a 2 bedroom condo in Brooklyn paying a $3500 a month mortgage, and monthly expenses outside of their mortgage totaling appx $3,800. They have appx $15,000 in savings, $20,000 in mutual fund investments, and personal debt of appx $22,000. Both believe they can still live comfortably on Melissa's salary. Neither John or Melissa own life insurance, and neither have even thought about it.

You are an insurance agent presented with the opportunity to sit down with Melissa and John to do an insurance needs analysis. You immediately see the need for them to own life insurance, but Melissa and John see no reason or urgency to incur an additional expense to add life insurance...besides they say, they are young and perfectly healthy and maybe its best to consider buying it a few years from now when the kids are older.

Make the case as to why this couple should strongly consider buying life insurance now. What could owning life insurance do for them? What could be the financial consequences if Melissa died unexpectedly? They say they're young and healthy, so they don't need it? What is your response to that objection? What is the potential problem of them waiting to buy the insurance? Explain. And who do you think should be the primary policy holder? and why?