Q. How do I determine the life time monetary value I bring to my family?
A. A person's life time monetary value is the cumulative earnings plus fringe benefits he or she brings to the family during the person's working lifetime, it typically serves as the upper limit for insurance companies to determine the maximum coverage amount a person could have.
You can use the following tool to estimate your life time economic value.
A. A person's life time monetary value is the cumulative earnings plus fringe benefits he or she brings to the family during the person's working lifetime, it typically serves as the upper limit for insurance companies to determine the maximum coverage amount a person could have.
You can use the following tool to estimate your life time economic value.
- Income Growth: This is the expected annual increase in earnings in the future
- Fringe Benefits: This is the non-monetary benefits (e.g. employer-sponsored health insurance) that the person brings to the family.
- After-Tax Rate of Return: This is also called the Discount Rate, it's used to calculate the present value of future earnings.
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