Wednesday

Insurance, The Anti - Catastrophe

The catastrophe's that insurance can help you plan for and protect against 

Top 5 reasons Insurance is important to you... 

1.  You or your spouse could get sued and loose current and future earnings
2.  You or your spouse could get hurt / sick and be unable to work / take care of the kids for a period of time
3.  You or your spouse could get hurt / sick and never be able to work / take care of the kids again
4.  You or your spouse could die
5.  Your or/and your spouse's income are needed to keep your household going


AND...

You have a Mortgage/Lease/Car Loan/Credit Card Bill/Student Loan/Monthly Bills


LIFE INSURANCE NEED =

Mortgage + Debt (credit card, car loans, student loans, etc) + (Income Replacement x ___ yrs) 

DISABILITY INSURANCE NEED =

Monthly Mortgage Payment + Other Bills (electric, gas, phone, cable, etc) income covers monthly


LAWSUIT PROTECTION (LIABILITY NEED)

Easy answer:  Your net worth.  Or use this Market value of your home + value of your investments and cash equivalents (401k, 403b, Roth IRA, Traditional IRA, Cd's, Money Market, Savings, Checking, etc) 


Of course there are some things that would vary within those equations such as what types of insurance...see the blog for the permanent vs term but here's a quick answer

Term Life:  Renting a life insurance policy, just like renting a car.  Based on the age you buy it and expires Term expires which forces you to buy new term insurance at your new age (much more expensive normally)

Permanent Life:  Builds cash value, could pay dividends, will last to age 121


As always, with more questions just call me at the office or email me directly; matt@delawareinsurance.net.  Thanks again for your ideas!

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