Reasons to Buy Term Life Insurace

We all have different needs and wants in our lives, but one thing that most of us need is some type of life insurance policy. We all want to believe we are invincible and nothing will ever happen to us. And I hope nothing bad ever does, but according to Guinness World Records, (this is straight from their site) “the greatest fully authenticated age to which any human has ever lived is 122 years 164 days by Jeanne Louise Calment (France). Born on 21 February 1875 to Nicolas (1837 – 1931) and Marguerite (neĆ© Gilles 1838 – 1924), Jeanne died at a nursing home in Arles, southern France on 4 August 1997.” This just illustrates that we are not invincible and we only get to enjoy this lifetime for a relatively short period of time so we might as well be prepared.

There are generally 3 types of life insurance: Term, Whole Life and Universal. I’m going to talk a little about term today. It’s what my wife and I personally have (as well as some whole life) and it’s what I believe the most in. Why buy life insurance? Here’s the short answer highlighting some of the main reasons of why you should consider buying life insurance:

Pay the mortgage for your spouse
Replace your income so your spouse can pay the monthly bills
Pay any debt you may have so your spouse doesn’t have to worry about it
Pay for funeral costs
Finance future needs such as a child’s education or spouses retirement
Continue a family business

Term Life Insurance

Today I’m going to go over term life insurance. It is what it sounds like. It is designed to last a specific period of time. At the end of that time, or when the term is up, the policy is finished. Typically at the end of the term the policy is expired and you pay no more premiums and you do not get any money back. There are variations of a term policy that allows you to get money back and renew it etc., but I’m only going to talk about a straight term. The different variations should be discussed with your agent to see what fits your needs. Term policies can be 5, 10, 15, 20, 25, or 30 years long. You get to choose the period of time you want the policy in force based on your personal situation.

Term policies are also the most affordable policies mainly because they expire at the end of the term and you get nothing back when it expires. I know that doesn’t make it sound like a smart choice, but it can be. For example:

Say you are 30 years old, are married, have a house with 20 years left on the mortgage and a 5 year old child. One option would be to get a 20 year term policy to last as long as the mortgage and long enough to get your child through college. After that you might not have a need for as much life insurance. Let’s say your mortgage is $100,000 and you want your spouse to be able to pay off the mortgage and have $20,000 a year to raise your child if something were to happen to you. $20,000 a year for 20 years plus $100,000 mortgage totals $500,000. That’s a lot of money, but that is a realistic number that your spouse would need if you didn’t make it home the next day.

A lot of people see that $500,000 and think there is no way they can afford that kind of insurance policy. You can. A healthy 30 year old non-smoking male or female should be able get a policy like this for less than $25 a month. I am willing to spend $25 a month for myself and $25 a month for my wife to make sure that we are financially taken care of is something happens to one of us. I probably spend more than $50 a month between food spoiling that I don’t cook in time or snacks at the gas station. If I can afford to do that then you better believe I will find $50 to make sure my family will be taken care of. If you are wanting to get a policy that gives you money back when it expires you will have to pay a little more, but you at the end of the term you will get back all your premiums that you paid. That’s why term policies are so attractive. A lot of coverage for a low premium.

Many people still don’t have life insurance to take care of their families. There are a variety of reasons for this. Below I’ve listed 3 of the most common excuses people give me when I talk to them. Remember, life insurance is one of many tools designed to help your family prevent a financial catastrophe.

1. I can’t afford it.

I already showed you it can be affordable. You don’t even need to get the exact amount you need. Just by having some insurance to make it a little easier for your family is better than nothing at all.

2. I don’t need it

Do you have a spouse and/or child? Do you think you may someday pass away? Then you should at least talk to an agent about options out there. Even if you’re single, someone will have to pay your funeral expenses if you pass away so you might want to look into getting some insurance as well.

3. I don’t have time to meet with an agent.

Really? You don’t have a half hour? How long is Chicago Fire or whatever your favorite show is? An agent will go to you and is willing to work evenings and weekends. Most of us can find a little time. Now there are even term policies that can be issued within 24 hours and don’t require a medical exam. The policies with no medical exams will save you all kinds of time.

Now, let’s go back to being invincible. We’re not. None of us are. We probably all have been to a benefit for a family that had a premature death that created not only an emotional hardship, but a financial one as well. That’s why there was a benefit in the first place, because the family didn’t have life insurance.

Credit Card Secrets You Must Know

When you were little, your introduction to the world of personal finance management most likely came about in the form of a gift from your parents: a pouch, perhaps a small canister, or any container where you could deposit loose change – any money that you mean to save up for use in the future instead of the present. By learning the fundamental practice of setting money aside now so that you can have something to spend later, you are able to develop a mindset that does not hanker to spend every last riyal that ends up in your hands; what you gain, instead, is a culture of responsibly ensuring that you have the financial resources for any need that may arise by preparing for such instances and making wise use of the money that you do spend.

This is the same when applying for credit cards as a means of having another source of funds to spend. Most of the time, having credit cards are often associated to financial loss but with the right ways of handling it, you will be able to see how helpful it will be. Below are some tips and tricks you must know if have a credit card:

Check For Annual Fees

Most companies charge a certain amount of annual fee on the cards. However, very few people know that they can easily get rid of such fee, especially if they have a good credit score. For this case, all you need to do is to pick up the phone, call your bank and request for the fee to be removed. Tell them that you are going to dump the card if they don’t remove the fee.

Universal Rules

Say for example, if you are late in making the repayment of one of your cards, you will be charged with a much higher rate of interest on your other cards. So, one of the most important credit card tips for you is to make the payment on or before the due date. This is considered to be part of their universal default rules which is a disadvantage to the subscriber if he has no idea of this.

Try Waiving The Late Fees

If you have never been late before paying your balance and fees, you can call up the credit card company to have them waive the late fees for you. Some representatives may refuse this request but it doesn’t harm to just call them and try. You may call another time and you might just be lucky with the next representative.

Stashing cash away among your possessions is certainly not an option in this day and age. If you want to have total convenience and security with your finances, as well as a smart management strategy, then turning to reliable banking institutions for their products is the best thing to do.

How To Pick The Right Financial Advisors

What a difference a decade makes! Not long ago, everyone who invested in stocks seemed to win big. Investors watched their portfolios grow exponentially, and retirement seemed secure. The economy was so strong even the country’s best financial advisers were left wondering if they’d have a job.

But alas, the economy went into recession. Those early retirement dreams became a less realistic option. These days we need to know about yields, rates of return, and, dare we say, risk!

That leaves many people feeling pressured and over their heads. This is where businesses can step in to help their employees decide how and where to invest their money.

Where Do I Start?

That depends on what you want the financial advisers to do. Do you want help with estate planning, or is it your child’s college fund? What about advice on which stocks to pick or how to withdrawal cash from retirement funds without draining your account? Determining where to start depends on your desired outcome, and the good news is financial advisers come with many specialties.

Once you decide what you need, ask people that you trust for referrals. Seek out someone you don’t mind divulging personal financial information to.

Next, find out what your potential advisor did before becoming an advisor. Was he/she a math expert who majored in statistics at college? Do they have an advanced degree in accounting or business? The answer to these types of questions can tell you a lot about the Ivory Tower experience someone may have, and whether it’s relevant enough for your trust. You want someone with good character, much like you would in choosing a good doctor or lawyer.

How Do Financial Advisers Charge?

Many people are intimidated by costs but have no idea what they are. This is normal, and there are many ways in which an advisor might charge you.

Charging you a commission on products (or stocks) bought and sold is the most typical form of remuneration. Some, however, might charge a flat fee or yearly retainer, or a combination thereof. The best advice: do some comparison-shopping just as you would for a vehicle or any other significant purchase.

State Registered Advisors Must Be Licensed

Those who give advice on how someone should invest their money should be registered with the state in which they practice. For instance, in Washington State, all financial advisors must register with the Washington State Department of Financial Institutions in order to practice. Check with your state to see what the requirements are, and be sure to check for prerequisites pertaining to admission, such as testing and education.

You can also check the state records for complaints: legal judgments, bankruptcies, criminal charges, and government orders. All of this information is kept on file by the state and are available to the public.

Choosing from a pool of knowledgeable professionals can be a tricky business, but it can be simplified by following a few basic rules, and, more importantly, by using a little common sense.

Loans for Life – A Guide to Common Types of Loans

Before taking any action that involves the loaning of funds, you need understand the level of responsibility that comes with paying them back. If you’re considering taking out a loan for college, to buy a car or home, or to start a business, read this article first. This guide reviews the pros and cons of common types of loans and can help you make your decision.

Car Loans

The first thing to consider is the source of your funds. Most car dealers offer on-site financing through a lender at signing, or you can borrow money from a bank or credit union. No matter where you borrow from, pay attention to how long you’ll be paying and the interest rate. You should also inquire about different options and possible rebates. Research and compare several different financing options, and request quotes from a minimum of three lenders. Some financing options allow zero percent financing, but no-interest agreements come with hefty monthly payment and can be too expensive for many people. Low monthly payments typically indicate a high interest rate and will cost you more in the long run. Finally, you’re going to want to size up your down payment as much as possible. The more cash you’re able to put down on your vehicle, the better. Making a large down payment keeps you from becoming upside down, or going “underwater”, on your loan.

Student Loans

Before even applying, you need to review your eligibility. Your eligibility refers to your ability to meet the minimum requirements for qualification. For the credit portion, most students need a cosigner, usually a parent. Now, consider who will be responsible for paying funds back. Unless you default, you or your parents will have this responsibility. Next, think about interest rates. Repayment terms are terms outlining your payment plan, and should be carefully reviewed and understood. Most lenders require a promissory note, which is a contract promising that you will repay all of the borrowed funds. Finally, be aware of loan limits that define your boundaries and restrict the amount of money you are eligible to receive under a single program.

Small Business Loans

Another common reason for borrowing is to start a small business. The first thing to think about is the state of your credit. Look up your FICO score, and if it’s unsatisfactory take time to build better credit for attempting to borrow. It’s even helpful to offer your own credit score for review. Prove to lenders that you have the discipline to repay them. You also need a solid business plan and a strategic marketing plan by giving the lender a clear picture of your prospective business. If you’ve never made a business plan, there are online tools available that can help. In addition to a profile of your business, give potential lenders a profile of yourself in the form of a strong personal resume. Sell your business, but also sell yourself as an owner. Finally, before attempting a loan, make sure all personal and professional financial statements are accounted for and available.

Borrowing money for any venture is a serious decision. Do not borrow funds unless you are financially stable enough to repay them, and review all financing options before jumping into a lending agreement. Good luck with all your financial endeavors!