Once you’ve decided how much insurance you need, you must decide how much you can afford. Insurance should take no more than 5 percent of your Net Spendable Income
(NSI). Net Spendable Income is the amount you have left after you’ve paid your tithe and taxes.
The 5 percent figure above does not include house or automobile insurance. It does include life insurance, health insurance, and disability coverage. Still, a 5 percent allotment for all these insurance needs is not very much. But we’re assuming that you have health insurance as part of a group plan. Many people receive group health coverage through their employers, who pay a portion of the premiums, thereby reducing the cost to the employees.
If you’re not part of a group health insurance plan, this percentage of your budget will increase. For that reason, you’ll have to be very “choosy” about your life and health insurance plans.
If you increase the insurance area of your budget from 5 to 10 percent, then there is no alternative but to decrease another area of your budget to make the total of percentages be 100.
If you’re not part of a group health insurance plan, this percentage of your budget will increase. For that reason, you’ll have to be very “choosy” about your life and health insurance plans.
If you increase the insurance area of your budget from 5 to 10 percent, then there is no alternative but to decrease another area of your budget to make the total of percentages be 100.
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