WM Lect 9 Wk 10_Insurance

WM Lect 9 Wk 10_Insurance - Wealth Management FINS2643...

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Wealth Management FINS2643 Lecture 9 Insurance Lecture 9 Summary Types of Insurance Life Insurance, Business Overheads Insurance, Property Insurance, Medicare, Private health insurance, TPD, Trauma, Income protection Life insurance Life cycle needs: e.g. death, disability Consequences: e.g. funeral, debts, mortgages Calculation o Multiples approach : Multiple = interest rate divided by 7 Total amt = multiple x salary o Needs approach : Total amt = Needs – resources (to maintain a standard of living) Considerations: dependents, living exps, resources o Business Overheads Insurance Incapacity prevents person from operating own business Covers depreciation, land and payroll taxes, interest on loans, rates etc Do not cover goods, depreciation on real estate etc Medicare 1.5% on taxable income 1% surcharge where income is > 70k Public hospital only, does not cover extra services Private Health
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This note was uploaded on 04/02/2012 for the course FINS 2643 taught by Professor Fong during the Three '10 term at University of New South Wales.

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WM Lect 9 Wk 10_Insurance - Wealth Management FINS2643...

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