Thursday, September 1, 2016

Income Coverage

11:29 AM


Question:

Can you explain the concept of "income coverage" in the risk analysis results?

Answer:

For the income coverage, it is defined as lifetime sources of income over total average income. It is a useful measure for lower wealth individuals that require the peace of mind of knowing funds will be available to cover their expenses no matter how long they live. A few other users mention that the usually low percentage requires extra explanations to clients and we will be adding wording to indicate that it's not a bad thing if funds are sufficient.

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