then each should purchase at least $412,000 worth. It makes economic sense to purchase the recommended amount only.”
While Diane has long- and short-term disability coverage at 66% of compensation, Whitney has no disability insurance and should make getting a policy a priority, says Williams.
Financial Snapshot: The Williamses
|
HOUSEHOLD INCOME |
|
| Gross Income | $150,000 |
|
ASSETS |
|
| Market value of home | $260,000 |
| Diane’s 401(k) | 49,000 |
| Whitney’s stocks | 1,000 |
| Market value of two cars | 34,000 |
| Checking account | 2,000 |
| Savings account | 1,500 |
| 529 plan for children | 600 |
| Series EEÂ savings bonds | 5,000 |
| Household furnishings | 10,000 |
| Total | $363,100 |
|
LIABILITIES |
|
| Mortgage | $160,000 |
| Car loans | 28,000 |
| Student loans | 26,000 |
| Credit cards | 11,000 |
| Private school tuition | 13,000 |
| Total | $238,000 |
| NET WORTH | $125,100 |