Price vs Cost of Insurance
What is the difference between price and cost of insurance?
The price is what you pay for every month or year depending on how you would like to set it up. Whereas, the cost is how much it would cost your family if you do not have the coverage. You need to protect your most valuable asset which is yourself as that can affect your bottom line the most.
What is your most valuable asset?
Some may think that their most valuable asset is their home, their car, their jewelry, etc.
However, the most valuable asset that a person has is THEMSELVES. Using the chart below, you can gage how much money you yourself will be making throughout your life. Still think your car or your house is the one thing worth the most money in your life? Think again; IT IS YOU.
This chart is based on your current annual income and assuming a 2.5% increase each year.
After seeing this chart I am guessing that you realize that your home, car, jewelry tools etc. are not as valuable as you are.
The bank makes us insure our house in event of damage to qualify for a mortgage as no lender will give you the money without it and I'm sure you believe it is a good idea which I agree with. Many of us insure our jewelry, vehicles, tools etc. in case of loss or theft also a good idea. Many of us don’t insure ourselves properly which can cause a huge problem in the future for you and your family.
If something were to happen to you today would your family be able to afford to live the same lifestyle as they are living now? Do you know how much money they will require to replace your income? Many of us say well I have some insurance through work so my family will be fine. It is true that many people have some insurance through work and that will help but is it enough to replace you financially? If you do not know then you should find out and I can help with that.
This chart shows how much you need to replace the income that you bring to your family.
If you believe that there is no way that something will happen to you then I will ask you this question. Do you know anyone who has had a tragedy hit their family and affect their financial situation. This could be cancer, a death, injury, or any other illness that keeps them from performing their normal daily duties. Most likely the answer is yes you do know of someone and if you don’t then take a look at go fund me and see how many people and families are asking for help for their final expenses, money for treatment, money for the family for travel to and from the hospital etc. You can click here to find out. If you don’t want to rely and hope that others will be able to afford to help you and you want to make sure that you are able to take care of yourself and your family financially then you need to have the proper insurance.
If you have mortgage insurance and vehicle insurance that is a good start. What we need to look at now is how is that coverage going to help? is it enough? What is the cost? Can we find you more coverage that will also cost less putting money back in your pockets and making your net worth go up? I believe we can and it is worth some time to find out.
To find out what standard cost of insurance will cost you click here. This is a rough estimate as depending on how healthy you are it can be more or less.
In the end you need to look at the difference between the price and the cost of everything. To me the benefit far outweighs the price.
If you want to make sure your family is properly taken care of then give me a call so we can make sure you have the proper amount for the best price so your family never has to pay the cost of not having it.
Dennis Carson 306-227-0599