Money Management Skills

(backadmin) #1


early in life, your premiums for the same amount of coverage will
EHVLJQL¿FDQWO\KLJKHU$V\RXJHWROGHUERWKWHUPLQVXUDQFHDQG
whole life insurance get more expensive because your risk of dying
LQFUHDVHVHDFK\HDU

% <RXGRQ¶WUHDOO\QHHGOLIHLQVXUDQFHZKHQ\RX¶UHROGDQGGRQ¶WKDYH
DQ\GHSHQGHQWV6RLWGRHVQ¶WPDNHDQ\VHQVHWRSD\IRULWZKHQ
\RX¶UH\RXQJ&RPPLVVLRQVRQZKROHOLIHSURGXFWVDUHKLJKHUVRLI
\RXVHHDQLQVXUDQFHDJHQW\RXPD\¿QG\RXUVHOIEHLQJVROGVRPH
type of whole life product—there are many different names for
WKHP)RUPRVWKRXVHKROGVIRUJHWWKHPDOODQGEX\WHUP

Disability Insurance
% The second type of insurance for protecting human capital is
GLVDELOLW\ LQVXUDQFH$ ELJ SUREOHP ZLWK GLVDELOLW\ LQVXUDQFH LV
that many people who think they might become disabled buy the
SURGXFWDQGWKHQ¿OHDFODLP7KLVLVNQRZQDVDGYHUVHVHOHFWLRQ,I
the insurance buyer knows more about their true risk of loss than the
insurance company, then buyers with the highest risk will buy more
LQVXUDQFH7KLVUDLVHVFRVWVDQGPDNHVGLVDELOLW\YHU\H[SHQVLYHLQ
WKHSULYDWHPDUNHW


% The best way to buy disability is in a group policy through your
HPSOR\HU<RX¶OOQHHGWRFKHFNZLWK\RXUHPSOR\HHEHQH¿WVRI¿FH
to sign up for group disability, but if you have the option, then you
VKRXOG GH¿QLWHO\ KDYH WKH GLVDELOLW\ SUHPLXPV ZLWKGUDZQ IURP
\RXU SD\FKHFN WR SURYLGH GLVDELOLW\ FRYHUDJH 7KLQN RI D ORVV
IURPGLVDELOLW\DVEHLQJHTXLYDOHQWWRDORVVIURPSUHPDWXUHGHDWK
H[FHSWWKHZRUNHULVVWLOODOLYH6RGLVDELOLW\QHHGVDUHHYHU\ELWDV
VLJQL¿FDQWDVOLIHLQVXUDQFHQHHGV

% 7KH JRYHUQPHQW SURYLGHV GLVDELOLW\ LQVXUDQFH WKURXJK 6RFLDO


6HFXULW\7KHDPRXQWRIPRQH\SDLGLVYHU\VPDOODQGWKHGH¿QLWLRQ


RIGLVDELOLW\LVYHU\VWULFWVRPRVWZRUNHUVVKRXOGQ¶WUHO\HQWLUHO\


RQ6RFLDO6HFXULW\GLVDELOLW\<RXKDYHWREHFRPSOHWHO\GLVDEOHGWR


TXDOLI\²WKDWPHDQVXQDEOHWRZRUNLQDQ\MRE

Free download pdf