Personal Income

What Does Personal Income Mean?

Personal income is the total pre-tax amount of money a person earns in a year from labor and other income-generating activities.

Insuranceopedia Explains Personal Income

Personal income can come from various sources, including salaries, commissions, the sale of products and services, rental property ownership, or any other income-generating activity. It serves as the basis for taxation in countries with progressive tax policies. Additionally, average personal income is often used as an indicator of the overall economic prosperity of a country. Income level also matters when shopping for insurance, since how much someone earns affects both how much life coverage their family would need to replace and what they can spend on premiums each month. Households with limited budgets often look at life insurance options for low-income families, while anyone comparing policies can check the average cost of life insurance against their household budget.