How do you determine your net worth for life insurance?
When you enter into the process of buying life insurance one of the questions they will ask you is – what is your net worth?
Your net worth is comprised of all of your assets minus all of your liabilities.
The following can be included in your assets for your net worth; cash, checking account, savings account, money market account, cash value of life insurance, stocks, bonds, mutual funds, professional money manager, pension (profit share), IRA, annuities, notes receivable, real estate (market value), automobiles and collectibles.
Your liabilities include anything you still owe (i.e. mortgage or a car loan).
Once you have tallied up your assets and your liabilities, simply subtract your liabilities from your assets and you will have your net worth.
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