September 21, 2012

Got D.I.M.E.???

Hey Dolls!!

Its Finance Friday, and keeping in with the theme of Life Insurance Awareness Month, we're going to learn a way that determines the amount of coverage you will need.  The way we're going to discuss to determine this is to figure out your D.I.M.E.  What's D.I.M.E.?  D.I.M.E. is an acronym for the following category breakdown:

DEBT
INCOME
MORTGAGE
EDUCATION








Now, what does that mean and how do you calculate it?  Well lets take a look at a hypothetical example: 


Its a s simple as that.  For this example, this family has an Insurable Need of $730,000.  This example is just a helpful guide for you to calculate where you are and one of many ways to determine your family's insurable need.  Keep in mind, it is ALWAYS good measure to speak to an expert for guidance before making these decisions.

These categories are also considered the main categories that most people encounter in life.  If you want to add more expenses to the equation, feel free to do so.  For instance, you can include Funeral Expenses as an additional category to ensure that is covered.  Also, accounting for all of your children and family (and the debt they have that you assume the responsibility for) is very important to get an accurate calculation.





If you'd like more information from a Financial Professional, please send an email to:  info@whatsmoreimportantthanfashion.com (Serious Inquiries ONLY please).




I hope this information helps Dolls!!!  Have a Fantastic Finance Friday!!!

5 comments:

  1. This is just the perfect post for those of us who don't know a whole lot about insurance and get confused once we read the fine print.

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  2. Really great advice!!


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  3. Thanks for the wonderful finance advice you always give, you're amazing at it & your tips and tricks are very helpful!

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