Insurance Terms Defined: Net Income Loss

Net Income Loss: an indirect loss caused by a reduction in revenue, an increase in expenses, or both during a given time period.

Once you have been able to determine your net income, you can then determine your net income loss for a given period by doing more addition or subtraction.  This is the exact process that your insurance company will go through in order to determine their own operating system and budgeting practices.

With your net income that you already figured before you can keep track every month of your possible increases in expenses or reductions in income.  If both of these apply you will most certainly know it and you probably knew it already anyway.  Knowing your net income loss can help you plan to more effectively approach your net income in the future.