General
Net Worth (in insurance planning)
Your total assets minus your total debts — a key input for how much liability coverage you need.
What it actually means
In insurance planning, net worth roughly determines how much you have to lose in a lawsuit, which is why higher-net-worth households are typically advised to carry higher liability limits and umbrella coverage.
Example: A household with $600,000 in net worth generally needs more liability protection than one with $40,000.
See it in context
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