Sunday, May 22, 2011

Insurance 101: Calculate Your Family's need and Paying Capacity

Know first how much insurance coverage your family needs and can afford. Rather than looking for a product first, determining your need should be the priority. Buy something you can afford so paying modes and options can be aligned with budgetary concerns, because a lapsed insurance policy is a waste of good money. In short, if you don't pay the premium on time, you stand to forfeit your policy.

Ideally, coverage is the amount that will allow your dependents to still live the same lifestyle without touching the principal of your investment.

TIP: Get a calculator and compute your current annual household expenses, assets, debts and other sources of income. It's handy to have your checkbook, credit card statements, and last year's tax return around. You can also check with a financial advisor to assess your family's need and paying capacity.

0 comments:

Post a Comment

LinkWithin

Related Posts Plugin for WordPress, Blogger...