Three building blocks
A common approach considers the income your family would need to replace, the liabilities that would remain, and the goals still to be funded — such as education.
Subtract what already exists
Existing policies, employer cover and liquid assets reduce the additional cover required. The difference is the protection gap.
Key Takeaways
- Cover is usually built from income replacement, liabilities and pending goals.
- Existing cover and liquid assets reduce the gap.
- The number changes as loans reduce and goals are funded.
- Term Insurance
- Protection Gap
Want to understand how these concepts apply to your financial goals?
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