The question for most investors is “how much insurance is enough to cover all my needs?”. You need to prepare a lit of potential loses if something were to happen. At that point, you need to estimate a value that you believe will accommodate the lost. The estimate will provide you the basic for deciding on the type of policies and amount limits you need. The following table shows a sample listing.
| Description of Potential Loss | If Loss Occurs, What Else Will Be Affected? | Estimated Value of Total Loss |
| My Death | Lost Wages, Mortgage Payments, Children’s Education, Car Payments, Retirement of Spouse, Medical Bills, Funeral Expenses Probate Expenses, etc. | $1,000,000 |
| Accident that disables me | Lost Wages, Medical Bills, Children’s Education, Mortgage Payments, Lifestyle adjustments, etc. | $100,000 Year 1, 2 $254,000 Year 3 $100,000 Year 4 to 10 $22,000 Year 11 to Age 65 |
| Home burns down | Loss of Personal Belongings, Loss of Artwork, jewellery, and other Valuables, Medical bills, etc. | $350,000 |
| My spouse needs surgery | Medical Expenses, etc. | $200,000 |
| My children need braces | Dental Bills, etc | $5,000 |
| Driving my car, I collide | Car Loss, Medical, etc. | $60,000 |
For most people, death, accidents, disability, etc. are not pleasant subjects to discuss or even think about. For many, just discussing these issue is bad luck. However, any one of these occurrences could wipe out your family’s fortune. Once you have your list, you can plan for the future. If you want to ensure financial security for you and your family in the event of something bad happening, you have to plan and prepare for the unexpected.
0 Comments:
Post a Comment