Tuesday, October 25, 2016
We’re all used to the idea that we can be struck down at any time by the proverbial bus. That’s why so many people in their 20s, 30s and 40s take out life insurance. They want to protect the livelihoods of their loved ones, should the worst happen. Insurance companies pay out for children to continue to have a great education, or for the family to keep the family home. But what about when people get past retirement age? Then what? Is life insurance still worth it?
Here we’re going to look at the reasons why seniors should get life insurance coverage. Take a look these potential benefits.
Life Insurance Allows Seniors To Leave A Legacy
It’s a sad fact of life that it ultimately has to end. But life insurance allows seniors to create legacies that survive beyond their physical bodies. It provides a way for older people to be remembered by their families when they’re gone. Life insurance can be paid out to supplement a spouse's’ income. It can be used to pay tax-free financial gifts to grandchildren. Or it can be put towards major life events, such as weddings. The possibilities for leaving a legacy are potentially endless.
Life Insurance Pays For Burial Expenses
According to lifeinsuranceforseniorsover80.com, burial expenses are high. Statistics reveal that the average funeral cost in the US stands at around $7,300. Some funerals can cost as much as $10,000, depending on the service and the type of plot.
For many families, this is a high financial cost that they will find hard to afford. Many seniors, therefore, take out life insurance to cover any potential burial costs. Small life insurance packages will cover anywhere from $5,000 to $50,000 worth of expenses.
Some insurance providers will ask seniors questions about their health. But the majority won’t require medical exams in order to take out a plan.
It’s Good For People Who Are Still In Debt
Many seniors are living under a mountain of debt. They either took out big loans in the past that they couldn’t repay, or they lost money in failed business ventures. The last thing that they want is to pass on this debt to their families. So experts recommend that they take out a life insurance policy to cover the risk. Insurance brokers offer a product called a guaranteed level-premium term life policy. You can take out a policy like this that ends just as you’re due to pay off the debt. This means you can both minimize your premiums and cover the risk. Thus, life insurance makes a lot of sense for seniors who don’t want to burden their families with debt when they’re gone.
If you’re currently dealing with debt, usa.gov provides information on how to manage it more effectively.
Life Insurance Is A Good Idea If You Have A Disabled Child
If you have a disabled child, it’s unlikely that they’ll be able to provide a good income for themselves when you’re gone. They will need a lot of care, money for their own activities, and finance for medical bills. James Hunt is an actuary from the Consumer Federation of America. He suggests that seniors in this situation take out cash-value insurance. This insurance should provide all the finance that a child will need to cover their living and medical needs.
To keep premiums down, Hunt recommends families choose what is known as a survivorship-whole life policy. These policies are also sometimes called second-die policies. They only pay out when both parents of the child die - meaning that premium costs are kept to a minimum.
Life Insurance As An Investment
There is a case today for using life insurance policies as an investment strategy. Right now, banks are offering interest rates of around one percent on savings. But for many life insurance policies, the premium is much higher than this. Some policies accumulate 5 percent interest per year.
For seniors who are risk averse and don’t want to play the stock market, a tax-free rate of return of five percent is alluring. Of course, to get that return, you’ll have to hold the policy until your death, in which case you personally won’t ever see any of the money. But if you’re a risk-averse person, it might just be the right plan for you. Don’t forget, there’s also the tax advantage. So if you’re sitting on a big pile of liquidity, getting rid of it though a life insurance plan could be a good idea.
Monday, October 24, 2016
Now you have a family you can't afford to be as carefree with your money as you have been. It’s important that you come up with as many ways as you can to save money and cut costs. You need to become more financially responsible now that you have a family. And this is something that you have got to sort out sooner rather than later.
A family brings so many extra costs and gives you more cause for concern financially. It’s time to get serious and start making the right decisions for the future of the family. Here are some ideas that will help you to become more financially responsible and help you provide better for the family.
Sell Your Home
This might sound like a drastic step to take, but you need to get serious. Selling your home can actually be one of the smartest financial moves a new parent can make. It’s time you sold up and moved somewhere else. You can upsize or downsize depending on the size of your current home. But, you have to remember the idea is to move somewhere less expensive. A lot of people struggle to sell their homes quickly in this kind of situation. And that's why companies like Prestige Investment Group exist. Their whole ethos is ‘we buy homes in any condition, and we pay cash’! So, make this most of this opportunity and try to sell your home in the best possible way.
Live a Frugal Life
Make sure you do what you can to try to live a frugal and cost-effective life. Now that you have a family you have to watch those purse strings closely. Are you as good with money as you think you are? The chances are you probably aren't. So you need to make sure you get better now. There are a lot of things you have to make sure you address to help you achieve a more frugal lifestyle. Assess what you can do as a family to cut costs and save money wherever you possibly can.
The best way of doing this is to make sure you budget carefully. That means you have to break down the costs of everything you spend. Use an Excel spreadsheet or something similar that you can update often. This will show you any glaring inconsistencies, as well as pointing out where you are overspending. It’s important to do this because it will help you understand where you can cut costs and what really matter in life.
Open a Savings Account
It goes without saying, but if you haven't got one already, you need to open a savings account. This is something you need to make sure you do sooner rather than later. It’s important to make sure you are setting money aside to help finance the future of the family. A savings account gives you some focus and allows you to set aside a certain amount of money each month. You’ll find it really helpful as a process of getting more financial security.
As you can see, there are plenty of things you can do that will help you are money. It’s important to understand that with a new family comes additional costs and obligations. Now you have a family you here to become more responsible and start making your money stretch further.
Sunday, October 23, 2016
How secure do you think your financial situation is? Things might seem to be coasting along nicely right now, but is that something that could sustain in the event of a shock or crisis? This is a question that everyone needs to ask themselves. You could be in for a nasty surprise if your financial situation changes and you’re not able to deal with that change.
There are some key steps that you can take to make your finances more secure. When you make these changes, your finances will be better able to survive and remain stable in the event of a shock or crisis. So, read on to find out all the information you really need to know about in order to take the right steps for your finances.
What Kind of Financial Shocks and Crises Could You Face?
There are all kinds of potential shocks and crises that could hit your personal finances. You don’t want these to overwhelm you, so you should be very carefully about what action you take. But before we come to that, you should be aware of the most common financial crises. A drop in your income or the loss of your job is a devastating example, and it’s not uncommon either. The death of your partner could have serious financial implications, and major structural damage to your home can too. All of these problems will make it harder for you to make ends meet. Below are some steps you should take to mitigate these issues.
Diversify Your Income
Diversifying your income can be a very wise move to make. If you were to lose your job, you would be in the middle of a big financial crisis. Where would your income come from? How would you pay the mortgage or the rent? If you can find new ways to make money on the side, you have some new ways to generate money. You can then fall back on these income streams and make sure that you are able to keep things ticking over until you find a new job. So, think about what skills you possess and how these can be harnessed to make money. There are all kinds of things you can do to make money in the gig economy.
Create a Financial Cushion
Having a financial cushion to fall back on when you are experiencing financial difficulties can be hugely important. This can save you when you don’t have an income to rely on. You can then pay the bills and pay for food by dipping into the savings you have amassed. It’s hugely important that you’re able to do this. So, set up a bank account and begin to build up cash reserves for your future. You should refrain from taking money out of this account until you really need it. Then, when you do experience a financial shock or crisis, you’ll have the money you need in order to survive.
Rid Yourself of Debts as Quickly as Possible
You definitely need to fix the roof while the sun is shining. Regarding your finances, this means paying off any debts you have as soon as you can. This is something that should always be done when things are going well with you. If you have to deal with a financial shock while in debt, everything becomes harder for you. That’s not what you want, so you should do what you can to rid yourself of this debt while you can afford to. Create a budget and make sure that a significant amount of your disposable income goes towards paying off those debts.
Evaluate Your Insurance Protection
Having the right level of insurance can help you a lot when you are trying to get the protection you need. Knowing that you have that backup in place can be a big relief when things aren’t going well for you. For example, if you get sick, knowing you have insurance to cover medical bills is a relief. And if you have homeowner’s insurance, any fixes or repairs that need to be carried out in the home will be covered before. This will potentially save you a lot of money when you need it most of all. So, evaluate your insurance protection and make sure you have the cover you need.
Now is the time to start taking action. Think about how you can take the steps outlined and discussed above. When you make yourself more financially secure, your future, in general, will be more secure too.
Saturday, October 22, 2016
Possibly the best financial advice out there is to start saving money. Building up some savings can help you stay financially secure throughout your life. However, a lot of people aren’t getting as much from their savings as they could. So, here are some tips to take your savings to the next level.
Open A Proper Savings Account
Interestingly, many people save money without having a savings account. They just let all their savings build up in their current account. For me, this isn’t a very productive way of using your savings. Current accounts don’t have good interest rates. As a result, the money in those accounts will never increase in value. What you should do is open a proper savings account. Every bank will offer this type of account, and you should take advantage of it. Find one with great interest rates, so your money can increase in value over time. You should then set up a direct debit to deposit money into this account as often as you want. Typically, people will add money to their savings accounts each money. By doing this, you ensure you save a certain amount of money every month. Not only will you get more out of your savings, but you could also start saving more money!
Invest Some Of Your Money
While opening a savings account is important, it shouldn't be the only thing you do with your money. My advice is to invest a portion of your savings. Why? Because clever investments can make that small portion grow into a mini fortune. Essentially, investing is the same as putting your money in a savings account. You don't have to touch the money, and it will grow over time. The main difference is that your money can grow a lot quicker. Some people are against this idea as they see it as risky. Sure, some investment opportunities carry a risk factor. However, if you know what to invest in, you will be safe. Things like Forex Trading, real estate, and stock market trading are all good ideas. I suggest speaking with a financial advisor about this. They can look at your savings, and tell you how much to invest and where.
Save Money In All Areas Of Life
One great way to get more from your savings is to have more savings! To do this, you have to concentrate on saving money in all areas of life. Whenever you go shopping, you should look to get the cheapest things possible. You'll be amazed at how much you can save on food if you opt for cheaper things. I'd also suggest looking for ways to get money off your purchases. For example, you can buy cards that give you a discount on all your train/bus journeys. Likewise, many places have discount codes that you can find online. Be frugal, and you'll soon save more money. Then, you have more money for when you need it.
Use these tips, and you’ll save more money and get more use out of it. Remember, saving is an essential part of proper financial planning.
Friday, October 21, 2016
Every now and then, something happens that completely changes your whole life. In these circumstances, it is often difficult to keep on with any positive habits you might have. It is hardly surprising that people often fail to look after their money during these times. If the situation itself is centered around money, then that can be even more difficult to deal with. Fortunately, there are some key ways to take care of your financial life during these times. If you want to learn some tactics for doing so, then read on. Consider these the next time things get tough.
Eliminate The Non-Essential
No matter how frugal you usually are, it is likely that you can always benefit from being even more so. When something happens which means you have to reel it in, it can be difficult to know where to start. The truth is, the important thing is that you just make a start anywhere. But if you are struggling to decide what to do, then it can be a good idea to first eliminate anything which is non-essential. If you are having trouble deciding on what is essential, look first at that which you might consider to be luxuries. Even just cutting these out is likely to make a considerable difference to your finances. Beyond that, take a look at your outgoings and see if you are spending money anywhere it isn’t needed. Dealing with those key areas is likely to be a good place to start.
Seek Out Financial Aids
If your current situation is causing your finances to be in a worse condition than usual, you might be able to find financial help. There are plenty of government-sanctioned financial aids which could prove to help you. Some people feel anxious about taking on this kind of help. But the truth is, it is there for a reason, and you may as well use it if it applies to you. It is worth looking into what incentives or grants are available to help you, and taking advantage of them. This might make all the difference.
Get Professional Help For The Situation
There are many different occurrences which can cause you to be in financial trouble. Depending on what the situation is, it might be possible to benefit from some professional help. If you are currently going through a divorce, for example, then seeking out Divorce and Family Law solicitors might be the best first step to take. This could help you to both get your feet back on the ground, and make you feel more relaxed around the situation. Either way, it is definitely better than going it alone.
Save On Essentials
We have seen how eliminating the non-essentials can be hugely powerful in getting your finances back in order. But taking a look at the essential outgoings could also help just as much. Take a look at your household bills, to begin with. Is there any way that you could reduce your spending here? If so, then that alone might be enough to get yourself back on track.
Thursday, October 20, 2016
You should make your financial planning effectively so that you can lead a very peaceful life ahead. This means you have to grow your wealth consistently and gradually. Financial planning comprehensively includes saving regularly, setting specific goals, protecting assets and investing your savings. Be aware of the common financial mistakes that can spoil a proper use of money.
There are various life insurance and term insurance policies available in the market. However, before buying one, you should be aware of the financial mistakes that you should avoid.
Common financial mistakes
1. Be aware of inflation. Market inflation is a common phenomenon. It is true that with time your income will increase, but you should also know that the value of money will decrease too due to inflation of the market. This happens because with the passage of time your expenses will increase too. This suggests that the price of goods and services will also increase. Due to this, many people have a tendency to invest in “safe” investments, such as, Bank FDs, saving accounts, government bonds. Know this that such a trend will yield you returns at very low rates than the market’s inflation rate.
2. You should know that every person has the objective to save and invest for their retirement. Therefore, you should consider making the correct valuation and even estimation of your health care along with other long term expenses. Since long term cost and health care expenses increase with age, it is highly important to include those expenses for an effective retirement planning. By doing this, you can have a steady earning even when you have no income during those years. The advice is to invest in life insurance and term insurance so that you can have your earning invested rightfully.
3. One of the major financial mistakes is not investing enough when you are young. Your initial years should be about focusing upon making the right savings. Your rate of savings should be more than your rate of returns. How can you make savings? It can be done by controlling your daily expenditure and also by making sure that you are making your expenses towards tax properly. Also, with time in hand, you should invest in life insurance or term insurance plans.
4. Yet again, investing too conservatively or too aggressively can also take a toll in the long run. Being very conservative can actually lead to loss in your value of your money. Don’t just block your money in a bank, but diversify your money across various investment options.
5. Make financial investing planning with consultation of a financial advisor. Most people do not do so, and so they tend to invest their money in the wrong places. Also, financial planning is not all about investing, but also making plans on day-to-day budgeting, viable life insurance and term insurance coverage and smart tax decision.
6. You must know that insurance is all about saving tax. To many insurance is an expense and not an investment. If you are buying an insurance just to save tax, then you are seeking a very wrong way of spending your money. You should be aware of the different facilities of investing in different types of insurances.
For many, health insurance is just a waste of money and so many people do not invest in it. However, they should know that a health insurance is most logical in an expensive health scenario in today’s world. You should have a life insurance only if you haven dependents- this is the thought of majority of people. Also, before buying an insurance you should also think about the several tax benefits.
Therefore, before making the common financial mistakes before aware of what you can avoid and how you can avoid.