Life Insurance Explained
Life insurance can be a difficult topic to understand. You might be thinking, "I'm only 27-years-old –why do I need life insurance?" But the reality is that life is unpredictable and planning for the future can be tough. If anything were to happen to you or your spouse, would your family still have enough money to pay their bills? Would they still have a roof over their heads?
Luckily, understanding how life insurance works makes it quick and easy for everyone:
● Life Insurance generally pays out a lump sum of cash in exchange for a monthly premium. The cash sum that an insurance company will pay to a policyholder is generally referred to as the death benefit.
● When a policyholder dies, life insurance companies will pay the death benefits (cash value) of their policies to their beneficiaries.
● But how do you know when you can get money back? Usually, your beneficiary must be at least alive for 10 years since the policy's commencement date. So if you buy a $100,000 term life insurance policy now with an age of 20 this would provide "five times" (5X) the cash value ($100,000) at age 75.
● So why would anyone want to buy a life insurance policy? Because whether you're young or old, you could be the one that needs it. How uncomfortable would it be if your spouse was suddenly gone and your children were left without a parent? Would you have enough money to support them if you're suddenly unemployed? Or worse yet, hospitalized or in a nursing home?
● What about unexpected expenses like medical bills, funeral expenses and other expenses that may come in the future? Life insurance pays for these types of things. Don't let your family struggle when you can help prevent this from happening by purchasing adequate life insurance coverage.
The word life insurance can sound scary, like something no one will need until old age. But the truth is that you can buy a life insurance policy at any age! How do you know if you need to purchase life insurance? Ask yourself these three questions:
1) What would my family do if I died today? Would they be able to get by financially? If not, then perhaps you need additional life insurance coverage. Even if it's just a few thousand dollars, that could make a huge difference financially.
2) What would my family do if something bad happened and I wasn't able to work anymore? Would they be able to afford food, housing and other expenses? If not, then perhaps you need additional life insurance coverage.
3) Who would take care of my children if I were to die or become disabled? Would they be able to support them financially if I became unable to work? Either way, you want the answers to these questions in hand before purchasing life insurance. After all, your beneficiaries could be your family. Or they could be new people in your life that you've just met.
Life insurance is one of those financial tools that everyone should own. It's wise to be prepared for the future by owning life insurance coverage today. Make sure you understand what a life insurance policy entails before you purchase it though. Take the time to learn how it works and why you may need life insurance. There is no such thing as "too much" financial protection when you need it most, so be sure to request a free no-obligation quote today!
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Creating Wealth Through Education, Motivation & Inspiration. The purpose of this blog is to teach simple strategies that anyone can use to build wealth.
She writes on financial and life topics such as small business financing, debt consolidation and money saving tips.
Sharing her own experiences through financial challenges in the past has helped many families turn their financial lives around. She provides an outlet for people to share their own personal money-related stories and experiences in the hope of educating, motivating and inspiring others.
With over 12 years of experience in the finance industry, she's a certified credit counselor and business coach for women entrepreneurs. Her passion is empowering others by sharing her knowledge on how to succeed financially without having to break the bank.
More than just a pretty face, Denise is an "award winning" author of The Millionaire's Notebook series published by Penguin Random House. She's also the author of Budgeting Basics: A Practical Guide to Making Financial Decisions .
Denise believes that financial education is the key to making better financial decisions, keeping more of your money and getting out of debt.
When she isn't writing, you can find her spending time with her family and working on personal finance/business projects.
You can connect with Denise on Twitter , Facebook and Pinterest . Or contact her via email at dbcashman@live.com .
The post The Simple Life: How to Get Out of Debt appeared first on TheProsperitySource | Financial Plans & Advice .
Creating Wealth Through Education, Motivation & Inspiration. The purpose of this blog is to teach simple strategies that anyone can use to build wealth.
She writes on financial and life topics such as small business financing, debt consolidation and money saving tips. Sharing her own experiences through financial challenges in the past has helped many families turn their financial lives around. She provides an outlet for people to share their own personal money-related stories and experiences in the hope of educating, motivating and inspiring others. With over 12 years of experience in the finance industry, she's a certified credit counselor and business coach for women entrepreneurs. Her passion is empowering others by sharing her knowledge on how to succeed financially without having to break the bank. More than just a pretty face, Denise is an "award winning" author of The Millionaire's Notebook series published by Penguin Random House. She's also the author of Budgeting Basics: A Practical Guide to Making Financial Decisions . Denise believes that financial education is the key to making better financial decisions, keeping more of your money and getting out of debt. When she isn't writing, you can find her spending time with her family and working on personal finance/business projects.
Conclusion
Here are your 3 big reasons to get a credit card:
1. Build up your credit: It's usually easier to build credit with a secured credit card instead of a regular one, since you're required to pay the full balance each month. However, if you only pay the minimum payment, either type will help you build credit over time. Just remember that if you don't pay on time or in full (if you have a balance), it can hurt your credit score, so be sure to take that into consideration before using plastic too often while building up your history.
2.
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Life Insurance Explained