| Insurance, it's a vitally important part of every single | | | | payments, utility bills, food, other insurance costs, and |
| one of our lives yet at the same time it's hardly | | | | absolutely everything that you pay for in a given year.. |
| understood by anybody. We have insurance for cars, | | | | The point of this exercise is to get a good idea of how |
| houses, medical, expenses, even life insurance in case | | | | much money you have right now, and how much you |
| we die, and disability insurance in case we are no | | | | need to live off of in a given year so that you can |
| longer able to work to support ourselves. | | | | calculate how much will need if your income level |
| In fact the entire country here in America right now | | | | suddenly dropped to zero. |
| has just spent the last 3 to 6 months massively | | | | One important thing to consider is inflation. All the things |
| debating health insurance all the way up to the highest | | | | that you spend money on might cost a total of |
| levels in Congress were they've been trying to pass | | | | $60,000 a year let's say. That $60,000 is going to |
| the president's health insurance initiatives | | | | increase next year because of inflation. To buy the |
| unsuccessfully. The point is, which ever side of that | | | | same exact things next year in my cost you $62,000. |
| debate you take, it's pretty incredible that so many of | | | | So when calculating how much you'll need in the future |
| us are spending so much time talking about it! | | | | be sure to calculate for inflation and if you don't know |
| I mean, it's insurance; the world is talking about | | | | how to do this search around the Internet and I'm sure |
| insurance! But I digress... | | | | you can find a free inflation calculator or at least learn |
| One thing I find though in all the talk of insurance on all | | | | the simple mathematics involved which I won't get into |
| the different levels... one thing hardly ever gets talked | | | | today. |
| about and that is disability insurance and that's a real | | | | Another thing to consider is partial payment for work. |
| shame because disability insurance is one of the most | | | | Does your job include partial payments in the case of |
| important insurances that you will ever need. | | | | your disability? If so be sure to calculate that in to the |
| It covers us in case we get disabled and can no longer | | | | equation. |
| work. It pays all our bills, and supports our families, and | | | | Also an important thing to consider is increases over |
| makes sure our kids are able to go to college and that | | | | time in your expenditures. Your expenditures may be |
| we can pay for. In short it's the most important | | | | $60,000 a year this year but in six years your kid may |
| insurance I can think of and we hardly ever talk about. | | | | need to go to college, at which time your expenditures |
| So I for one would like to talk about it in this article | | | | will jump quite a bit. Be sure to take these sorts of |
| today and I'm going to do so by talking about how | | | | things into consideration when you make your |
| much disability insurance is enough. | | | | calculations. |
| The first thing to do before you buy disability insurance | | | | You can get a fairly good idea of how much you're |
| is to completely assess your financial background. You | | | | going to need in disability insurance just by doing these |
| need to list all your assets, including your house and | | | | simple exercises I've discussed in this article. But at the |
| cars and cash and investment accounts everything | | | | end of the day you really need to sit down with a |
| that has a value in can be liquidated. Next figure up | | | | licensed professional insurance agent and go over the |
| how much money you need to live off of for each | | | | numbers with them in greater detail because they will |
| year. Make sure to calculate the cost of mortgage | | | | catch things that you have missed. |