Category

Estate Planning

Oct 22
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Life Insurance: I Need it, but … I Have Concerns!

By Estate Planning, Insurance, Money Management No Comments

Sharing financial tips on how to save and spend money the right way is my passion. With the Covid19 Pandemic, we should also address how to protect our financial legacy through life insurance. Most people don’t like talking about this topic, but we’re grown! So, let’s talk about it.

Here are seven concerns most people have about life insurance.

Concern #1: It’s Too Expensive. 

Many people are dealing with limited funds, and there are so many different types of coverages. However, a budget-friendly option for coverage is term life insurance. You can get a significant amount of coverage for a specific timeframe, like 10, 20, or 30 years. Monthly premiums for term life insurance can be less than the average consumer’s monthly dining out check or bar tab. Don’t judge.

Concern #2: I Have a Pre-Existing Condition. I’m not going to qualify. 

Facts: You don’t just buy life insurance; you must qualify for life insurance.

Many life insurance agencies may disqualify due to pre-existing conditions, but that should not stop you from applying for coverage.

Confession: I have Type 2 Diabetes and Hypertension. One of my concerns was being able to find additional coverage because of these health issues. I found a life insurance option that considers those with health concerns.

Concern #3: I have that coverage at work. 

The Covid19 Pandemic has shown that if we solely rely on life insurance at work, we can lose it because of business closure or employee benefits reduction. Instead of allowing your employer to control whether or not you have coverage, having life insurance outside of your employer means you control your coverage.

Having coverage at work should be a complemental coverage to what you already have in place.

Concern #4: I Don’t Know Enough to Make a Decision.

Most consumers don’t know the ins and outs of life insurance. As a former Licensed Life Insurance Agent, I am always looking for resources and options to educate people about personal finance, legacy protection, and wealth building. One of those resources is an organization “backed by leading investors, including investment funds of Jay-Z, Will Smith, Kevin Durant, Robert Downey, Jr., and others,” called ETHOS.

Ethos makes life insurance more accessible and affordable for the average consumer. Their website also provides a significant amount of information to help consumers make the right financial decision for them and their families.

Concern #5: I Don’t Want to Deal with a Salesperson.

Some consumers want to get coverage but don’t know an agent that they trust. Ethos is “designed so that you can apply for life insurance the way you want.” Their online application makes it easy to apply. Speaking with a licensed representative is also available by phone or chat. Ethos also has a premium estimate tool so you can see how much the premiums may cost and how it can fit in your budget or spending plan.

Concern #6: It’s Only a Death Benefit. How Will I Benefit from That?

Sometimes, we get so caught up in talking about the death benefit for the beneficiaries that we forget to address the Life Benefit of Life Insurance. An Accelerated Death Benefit Rider (additional benefit added to policy) “provides the insured with the ability to access a portion of the policy proceeds while still living in the event the insured has been diagnosed with a terminal illness.” 

Concern #7: I’m Too Young or Too Old to Get Life Insurance.

The reality is, “Everyone dies, and dying is NOT free!” – Courtney Richardson.

Whether a healthy 20-year-old or up to a 65-year-old with health concerns, it is crucial to have life insurance to pay for final expenses and to protect the family’s financial stability.

Regardless of the concerns, getting coverage will help to ensure death’s financial burden does not impact your family. So, let’s get covered so we can focus on living a happy life.

To learn more about Term Life Insurance, visit ethoslife.com.

Jul 14
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How to Start Saving for Retirement at 40+

By Estate Planning, Insurance, Investments, Retirement No Comments

Perhaps you missed the memo urging you to start saving for retirement in your 20s or 30s. Or, if your situation is anything like mine, you started a family early or didn’t find your passion in life until you were in your 30s.

Fortunately, it’s not too late to start saving for retirement, because you’re likely earning more today than you did a decade ago. You should be able to start saving now and still retire with a hefty nest egg. But first, you must take some essential steps.

Evaluate Your Savings Potential

Be realistic. Sure, we all wish we could save $5,000 per month, but can you actually achieve this based on your earnings and expenses? Remember, no savings amount is so small that it won’t positively impact your goals. Save what you can, even if it’s only a few hundred dollars per month. There are always ways to push your savings goals further by establishing a budget, creating a side business, downsizing your life, or all of the above.

Set a Financial Goal

How much do you need to retire? Start by taking an assessment of where you are financially and where you need to be. How much money do you need to live comfortably in retirement? Do you anticipate a need for $25,000, $50,000 per year, or maybe more? It may be that you have to postpone your retirement by a few years while you make a few adjustments and implement a quick-fix plan to catch up with your goals.

Create a Plan

Any good financial plan should begin with an honest assessment of your goals and the steps you’ll take to get there. Try using a retirement calculator to determine how much you’ll need to save each month in order to retire by your desired date.

You may be surprised by how much money you’ll need to save, but don’t fear the challenge. Consider working longer, finding a second income, or downsizing your lifestyle to enable progress toward your savings goals.

by Qiana Chavaia | WiseBread

Sep 18
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What To Do When a Relative Dies and You Can’t Afford the Funeral

By Estate Planning, Insurance, Money Management No Comments

When Apple co-founder Steve Jobs passed away, he left behind a huge legacy – and a huge financial fortune too. Since Jobs was one of the richest men in America, his family undoubtedly had no problem paying for his funeral and putting Jobs to rest.

Unfortunately, that’s not the case with many other Americans. It’s a sad reality that many families and individuals have to deal with, but the truth is that when many people pass away, their family members or close friends struggle to afford the funeral.

Knowing what to do when you can’t afford to bury a relative can help to relieve some of the stress and heartache of this difficult time.




According to the National Funeral Directors Association, the national average cost of a funeral with a vault was $7,775 in 2010. The cost of a burial without the casket was about $4,265 that same year. For many grieving families, paying thousands of dollars to bury a relative just isn’t economically feasible.

If a loved one passes away and the burial and funeral costs are out of your budget, here’s what you need to do:

Analyze the individual’s life insurance policy

Determine whether some or all of the burial and funeral costs are covered under the deceased’s life insurance policy. Talk to an agent in person or over the phone to go over all of the details, limitations and stipulations associated with the policy so that you understand what is and isn’t covered. You may find that a good percentage of the funeral costs are already covered based on life insurance the individual had on the job or a life insurance policy they bought on their own.

Review low-cost burial options

Cremating someone is usually less expensive than burying the individual in a casket or vault. If your state doesn’t require embalming the body, consider a “green burial” where you don’t have to pay for a vault, headstone or expensive caskets. You can also shop around to find an affordable casket online.

Consider getting a loan

If you have good credit and are comfortable with taking on a personal loan, consider applying for financing from a local bank or credit union in order to pay for the burial. Avoid taking out a cash advance on a credit card because you’ll be responsible for paying very high interest charges and could end up carrying that debt for several months, even years.

Ask other family members to chip in

You may not have to shoulder the responsibility of paying for the burial all by yourself. Consider asking family members to pitch in and help with the costs. Be specific and candid with relatives about how much the funeral costs; ask everyone involved how much they can reasonably contribute; and put together a cost sheet or budget to help you keep track of all of expenses.

Talk to your county coroner’s office

If you simply can’t come up with the money to pay for cremation or burial costs, you can sign a release form with your county coroner’s office that says you can’t afford to bury the family member. If you sign the release, the county and state will pitch in to either bury or cremate the body. The county may also offer you the option to claim the ashes for a fee. But if these also go unclaimed, they will bury the ashes in a common grave alongside other unclaimed ashes.

Obviously, when a person dies it’s a terribly emotional time for that individual’s family members and friends. But it needn’t cause financial turmoil too.

You can do yourself and those you care about a favor by planning ahead and making sure you at least set aside money or have enough life insurance to cover your own burial costs in the event of your unexpected death.

 

Originally appeared on BlackEnterprise.com by Lynette Khalfani-Cox, The Money Coach.

Sep 02
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7 Smart Financial Moves for New (and Experienced) Parents

By Debt Management, Estate Planning, Insurance, Money Management, Saving No Comments
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It is important to plan for many of the important events in our lives, like marriage, children, as well as retirement and leaving a legacy for our family. As you plan for your significant life events, Matt Hoesley of LifeHappens.org shares some financial steps to help secure your financial future of your family.

Create a will and contingent trust. This is one of the most important first steps. Choosing a guardian for your children helps make sure they are raised by someone who you think will share the same values. A contingent trust helps ensure that the money your child receives from all of your hard work and planning is distributed according to your wishes instead of giving them complete control over everything the minute they turn 18.

Update beneficiary forms. Make sure you double check all of your retirement plans and insurance policies so something doesn’t fall through the cracks. Many accounts with beneficiary designations never pass through your will, so it is important that these are also updated.

Begin saving for college. There are various options available. You should consult a tax advisor and financial advisor to help determine what is best suited for your family’s financial situation. I opened a 529 plan for our daughter. The money in this plan can be used at almost any accredited higher education institute in the world.

Purchase life insurance. My wife and I both increased the amount of life insurance we have. We did a combination of term and permanent insurance to make sure we have the total amount we need at a price we can afford.

Buy disability insurance. When you are young, your future earning potential is your biggest asset. Get as much … (continue reading … 7 Smart Financial Moves for New (and Experienced) Parents)

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