What Are You Worth? Economic Life Value Explained

What exactly is your Economic Life Value and why does it matter? In this episode, Hans Toohey and Brian Moody delve into the often overlooked concept of Economic Life Value—your potential financial contribution over the course of your working life. While your intrinsic worth as a person is immeasurable, there is a tangible monetary value to your ability to earn, which can be insured. This value, known as Human Life Value, represents a significant asset, more important than tangible assets like homes or vehicles. For instance, a 25-year-old earning $100,000 annually has the potential to generate $4 million over a 40-year career. This calculation forms the basis for potential insurance coverage, underscoring the importance of maximizing this to safeguard your family’s financial future. Personal development and strategic investments in oneself can boost one’s Economic Life Value. Maximizing insurance coverage is both a financial strategy and a moral obligation to those who have families dependent on them. Tune in to learn how recognizing and insuring your Economic Life Value can offer security and stability for your loved ones, and why it’s crucial to ensure this asset is fully protected. Differentiating Economic and Intrinsic Value:  There’s a difference between a person's intrinsic value, which cannot be measured monetarily, and their Economic Life Value, which is the potential income one can generate over their career. This Economic Life Value can be insured, representing the monetary value of one’s ability to earn. Importance of Maximizing Insurance Coverage: It’s crucial to maximize life insurance coverage to match one’s Economic Life Value. This ensures that in the event of an untimely death, one's family remains financially secure, and can provide the monetary value of their income even if they are no longer around to earn it. Investment in Self: Invest in personal development to increase one's Economic Life Value. Investing in education, skills, and mindset can lead to higher income potential, which, in turn, can and should be protected through appropriate insurance coverage. Moral Responsibility to Family: It's not just a financial strategy but also a moral obligation to secure life insurance that reflects one's full Economic Life Value. This ensures that dependents are not left in a precarious financial situation, aligning with the broader responsibility of providing for one’s family even in one's absence. Resources Mentioned: Economic Life value video: https://oneamerica-3.wistia.com/medias/mo0psuy409 ELV Calculator(scroll down to bottom of this page to find calculator pop-up link): https://www.oneamerica.com/individuals/offerings/life-insurance-products/whole-life Got Questions? Reach out to us at [email protected] ⁠Visit https://remnantfinance.com for more information FOLLOW REMNANT FINANCE Youtube: @RemnantFinance (https://www.youtube.com/@RemnantFinance) Facebook: @remnantfinance (https://www.facebook.com/profile?id=61560694316588) Twitter: @remnantfinance (https://x.com/remnantfinance) TikTok: @RemnantFinance Don't forget to hit LIKE and SUBSCRIBE