It’s not your current net worth that’s important, when you young, it’s your income and future net worth that matters. If you had an umbrella policy worth $2m, $2m of net worth, and $1m of annual income, then had a $10m judgement against you, a significant part of the judgement would likely come from your future income.How much does income play into the calculation? We’re young so we’re still accumulating assets, but it was the income that had our broker recommend 10m.
My current policy is for $10M. Rationale? High income, high net worth, and the relative cost of the policy was dirt cheap for a little extra peace of mind.
Statistics: Posted by quantAndHold — Wed Dec 25, 2024 1:12 pm