While many people are underinsured, some of us are carrying more insurance than we need. We may have too much or the wrong kind. There are times when dropping your insurance coverage makes sense. Making unnecessary premium payments is wasteful. Always seek to make the best use of your financial resources. Consider these circumstances:
In a world with seemingly unlimited insurance opportunities, there are times when it makes sense to drop certain policies and use the money for other purposes. Sometimes dropping your insurance is the financially responsible thing to do. Determine if all your insurance policies make sense for your situation and adjust accordingly.
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, and even offer Living benefits
Part of your financial plan should include protecting your assets, including your possessions, as well as your income, loved ones and health-related financial concerns. Insurance isn't very exciting, and it can certainly be expensive. But when you need it, you’ll be glad you have it. Unfortunately, there’s no single policy that will give you all the coverage you need. Take inventory of your insurance coverage. Do you have these 5 important policies? Life Insurance Life insurance protects those people who depend on you financially if you die unexpectedly. Consider the hardships on your loved ones if you should happen to die prematurely, and some offer living benefits paying you when you overcome the illness or accident. How do you determine how much life insurance you should get? Consider these matters:
No one likes to think about these things. However, if you deal with it now, it's something your family doesn't have to deal with later. Health Insurance Health insurance is expensive, but health care is expensive too, really expensive. A simple trip to the doctor can easily be several hundred dollars. A routine surgery that only results in being in the hospital for a couple of hours can be over $10,000. Health insurance costs are a burden, but the cost of a genuine medical issue can be catastrophic. If this isn't something you can get through your employer, be prepared to do some legwork to find a policy that’s right for you. Long-Term Disability Insurance This insurance replaces a portion of your lost income if you become unable to work. The cost depends on the amount of income that you wish to replace, your age, health, the length, and the limits of coverage. Policies will also differ regarding what they consider to be a “disability.” This coverage can also be quite expensive. Hopefully, you can also get this through your employer. If not, sit down with your life or health insurance agent to go over the details of this important insurance. Homeowners Insurance If you still owe money on your home, your lender requires homeowners insurance. If you don't owe money on your home, you should still carry this type of financial protection. Consider how many thousands of dollars your house and the contents would cost to replace. The price of homeowners insurance is quite small compared to the amount of coverage you're getting. Besides covering the structure of the house and its contents, some policies will even cover putting you up in a hotel until your house is repaired. Any injuries that occur to friends and strangers are also covered under your house policy. Consider what you need; there are a lot of options for benefits, limits, and price. Automobile Insurance Nearly all states require automobile insurance to varying degrees (New Hampshire is the exception). Everyone should have coverage, even if you drive a 1975 Chevy Nova that has been paid off for years. Even in that case, you’re still financially responsible for the damage you cause to other vehicles and property. Without automobile insurance, you might face a lawsuit that could potentially cost you everything you own. Ensure you have all the coverage you need, not only for your own vehicle, but to cover your liability as well. Conclusion Insurance isn't exciting or sexy, but it's a necessity. When looking at new policies, shop around because prices and coverage can differ widely from one company to the next. One tip to save some money: Get a policy with a higher deductible. The more you have to pay before the insurance kicks-in, the less that insurance coverage will cost you. Do your homework and find an insurance professional you can trust. Don't just focus on what insurance costs you; think of what it will cost you if you don't have it. Is it true that a good life insurance agent is hard to find? The vast majority of people living in the United States will at some point face the specter of purchasing life insurance. And when it comes to buying something so important to the lives and protection of your family members, you definitely need a good life insurance agent who can help. But how do you know when you find a life insurance agent that will inform you about all the products available and honestly advise you regarding how much life insurance you need? Consider the following tips to find a good life insurance agent:
No one wants to consider a premature death, but failing to do so can create serious financial difficulties for those you leave behind. Getting this aspect of your financial plan under control is important.
There are more than 2,000 companies selling life insurance in the United States, all offering similar products. Finding the right product at the right price for your situation can be a challenge.
If you own a home, homeowner's insurance is a necessity. Although it's not required by law, if you borrow money to buy a home, your lender will almost certainly require that you have homeowner's insurance to help them protect their investment. Even if your house is completely paid off, it's still a good idea to carry homeowner's insurance to help protect your investment. In either case, there are steps you can take to avoid overpaying for your insurance coverage. Check out these tips to help ensure you’re paying the lowest possible rates:
Do you have health insurance? It is undeniable that health insurance makes healthcare more accessible, including preventive services such as screenings and regular check-ups with your doctor.
Consider the fact that only a third of the uninsured U.S population scheduled a preventive visit with their doctor in 2018. On the other hand, 74% of adults with health insurance saw their doctor for a preventive visit during the same year. If you don’t have insurance, or have a policy that doesn’t meet your needs, it’s important that you learn more about healthcare coverage to find a policy that matches your needs and your budget. Ask yourself these important questions before purchasing a policy:
There are many downsides to not having healthcare, including putting off screenings for a number of health conditions and not scheduling regular check-ups with your doctor. Should you become ill or injured, you would end up with huge medical bills. A more important question to ask yourself might be, “Can I afford not to have health insurance?” Q: : I have a significant net worth and am concerned about the estate taxes my family will have to pay when I am gone. Do I have any simple options for handling this issue
A: One tool that is commonly used by those with considerable wealth to deal with estate/inheritance taxes is life insurance, more specifically an Irrevocable Life Insurance Trust (ILIT). This is actually a very common estate-planning tool for the affluent. There are many benefits to this type of trust: 1.Wealthy individuals do not always have wealthy heirs. Handling paying for estate taxes, which can be as high as 40%, can be terribly burdensome for many. Your heirs may be forced to sell real estate, stocks, bonds, or even personal property to raise the necessary cash. 2.In a nutshell, your heirs don’t have to pay taxes on any assets within the trust. 3. In nearly all cases, life insurance proceeds are exempt from taxes and can be used to pay any estate taxes that may come due. Life insurance can be a great estate-planning tool. Keep in mind that trusts can be complicated, and it’s important to find an attorney with the knowledge and experience to set it up properly. Life insurance provides cash for handling taxes and other expenses. For smaller estates, even if taxes aren’t a critical issue, life insurance can provide great flexibility and peace of mind for all involved. Is a free retirement planning program worth your time and effort? Quite simply, many people want to know this, because they don’t even have the time or energy to plan their retirement for themselves. Also, they may not have the knowledge necessary to make the right investing decisions.
Usually, the options available to you will be either to hire a financial planning advisor, which will cost a pretty penny, or to plan it out yourself. A free retirement planning program can be a great alternative to these choices, because it will provide you some important tips and your retirement planning process. However, keep in mind that most of these free retirement planning programs are simply an introduction to the retirement planning process. They will not give you enough information to help you really have map out your retirement planning yourself, at least to the extent you will need. For instance, you may already ready know the kind of lifestyle you want to live in your retirement years to, and you might already know how much money that will cost you. However, the most important step is finding the right investment vehicle to help you get there. Generally, a free retirement planning program will not help you with this vital step. For this, you will generally need to hire a financial planning advisor to help you find the right investment vehicle for you. Now, you may have to pay some money for this process, but it will be well worth it in the long run. Also, you certainly might want to consider learning about investing yourself and making your own investing decision. Not only would this be the cheaper option, as you wouldnt have to hire somebody to tell you what to invest in, but it is the far more lucrative way to go financially. Very simply, whenever you can spot good investment opportunities on your own, you have the chance to become wealthy. There is virtually no financially well off person today who doesnt have the ability to spot a good investment opportunity on their own; without good financial knowledge, you can never hope to have as much money as you otherwise would. The best way to go about doing this would be to simply read books about successful financial investors and wealthy people, and find out what theyve done to achieve their wealth. Whether it be starting a business, investing in the stock market or investing in real estate, simply finding somebody whos already done it and modeling their success is a very powerful way to become financially independent. This is by far the quickest way, because you can avoid a lot of the mistakes that those you are modeling made when they were first learning the tools of the trade. You would not want to entrust your retirement plans to a free retirement planning program, particularly since they are merely to give you a general overview of the retirement planning process. Follow these important steps and you will achieve the retirement planning you want, quickly and easily. he Civil Service Retirement System (CSRS) began in 1920 and has given disability, survivor and retirement benefits for the majority of civilian employees in the Federal government until 1987 when the new Federal Employees Retirement System (FERS) was created. Nevertheless, over two million people carry on receiving Civil Service Retirement System retirement and survivor benefits every month.
Retirement benefits are presently financed by both Government and employee contributions to the retirement fund, and the benefits are provided based on the duration of service and the average pay over the highest three years of pay. What are the eligibility requirements for Civil Service Retirement System benefits? An employee is qualified to retire voluntarily if the following provisions are met: at least five years of creditable civilian service; is separated from a position subject to Civil Service Retirement System coverage; is covered by Civil Service Retirement System for at least one year within the two-year period immediately preceding the separation; and meets age/service combinations of age 55 with 30 years of service, or age 60 with 20 years of service, or age 62 with five years of service. For employees who separate from service and have met the criteria except for the age/service combination may be permitted to a deferred annuity at age sixty-two. To be qualified, the employee must not take a refund of retirement deductions upon separation. In determining the service which may be used for an employees eligibility for retirement under the Civil Service Retirement System, is not restricted to service in positions subject to CSRS retirement deductions, it may also comprise service where the pay of the employee is not subject to retirement deductions, such as under a temporary appointment. Honorable active military service may also be qualified, subject to conditions: it was executed before the separation date upon which is the basis for entitlement to annuity; it is not comprised in computation of military retired pay except for certain service-connected disability requirements; if the military service was executed after December 31, 1956, some employees will have to create a deposit for the service to receive firstly or for other employees, to retain credit after the age of sixty-two. Although the service used in determining an employees eligibility for retirement is typically the same as creditable service for computation purposes, there are some exceptions: periods of CSRS service refunded, will not be creditable unless a redeposit is made; if the refunded service was executed before October 1, 1990, it will be qualified even if no redeposit is made but the annuity will be actuarially decreased; non-education service is made on or October 1, 1982, is not qualified if a deposit has not been made. October 1, 1982 prior service is creditable by the annuity will be decreased by ten percent of amount owed; active military service executed after December 31, 1956 is not creditable for employees first employed in a covered position after September 30, 1982 except if a military deposit for the service is made; and unused sick leave is commendable in computing benefits. Sick leave is changed into days or months of service using the Sick Leave Chart in the OPM operating manual, but it can never be used for eligibility. You just spent 30 years making reports, fielding phone calls, filing papers, and pacifying your boss at the office. At the end of each day, you find your energy gradually waning as you reach that point wherein you wanted to declare the last part of your work retirement.
Retirement is when an individual feels like withdrawing from their occupation to find some time for their selves and contemplate on how much he or she has earned or saved. Everybody needs a time to stop working, reflect back upon the past, and enjoy whatever life has to offer with the individuals retirement plan or pension staying close behind. However, the problem of retirement using the typical pensions plans like that of the Social Security; people should start relying on their own savings than the usual way of planning for retirement. This is because the Social Security is gradually losing more assets than it should be gaining in order to adequately supply the much-needed funds of their members. In fact, the agency asserts that they are paying more than what they collect and they fear that by the year 2010, 76 million people are estimated to reach their retirement age. They estimated that by that time, with all the assets being utilized at exceptional rate, they might only be paying 72% of the expected retirement compensation of the members. This goes to show that people should try to rely more on their personal savings and other sources of their retirement plans. This will bring about a more balanced view of all the aspects as far as retirement is concerned. So what are the alternatives to Social Security? Here is a list of the other retirement schemes that you can start planning by now so that by the time you reach your retirement age, you will not solely rely upon your social security retirement benefits. 1. Annuities These are highly adaptable insurance contracts intended to provide earnings and help you reach financial stability even after you have reached your retirement age. 2. Investments Saving money is just the beginning. You have to choose ventures that will provide you with greater money over the long period. Try to look for the lifestyle mutual fund, which puts a portion of your money in diversified stocks and the other portion in bonds, and maintains a solid balance between the two. Another good choice is the target retirement fund. Its portfolio becomes more conservative as you approach retirement age. 3. 401 (k) Your employers 401 (k) or 403 (b0 can be great sources of retirement benefits. Here, the company will deduct a portion of your income and invest the amount on mutual funds, usually on your chosen instrument. 4. Emergency account Try to move your money automatically each month from your checking account into an account earmarked for unexpected expenses. Aim for a sum that will cover three months worth of basics (mortgage, food, utilities, car payments, etc.) Once you have built this nest egg, you would not have to withdraw from long-term savings if a crisis hits. There is no secret to building wealth after retirement. You only need to live less than you make and invest the surplus well. When you save money and invest automatically, your retirement would definitely be the best phase in your life where you enjoy relaxation with no financial obligations to worry about. |
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