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Insurance

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.

Jan 07
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Simple Steps to Do a Financial Checkup for the New Year

By Credit, Insurance, Investments, Money Management, Retirement, Saving, Taxes No Comments

You may visit your doctor once a year to make sure all is well, but there’s something else to pencil on the calendar: an annual financial checkup.

If you were on a long road trip, you’d stop occasionally and look at the map to see if you were headed in the right direction. An annual financial checkup serves the same purpose. It’s an opportunity to review how you’ve done financially over the past twelve months and make sure you’re still headed in the right direction when it comes to managing your money.

A good time to check in with your finances is before the end of the year so you can take advantage of any tax-saving strategies, but if you can’t fit it in during the busy holiday season, plan on doing it as soon after the New Year as possible. Here are the key steps to take when planning a money checkup:

1. Identify Your Goals

The first step in your financial checkup is evaluating your financial goals. Have you made progress on them this year? If not, where have you fallen short? Can you figure out why? Have your goals changed during the year? If so, revise them and write them down.

Next, consider what new money goals you’d like to set. For example, you may want to fully max out your 401(k) at work or add another $10,000 to your emergency fund. Establish clear goals and break down the action steps you need to take monthly, quarterly and annually to reach them.

2. Evaluate Changes in Your Personal Situation

Have changes in your personal situation taken place in the last year or do you anticipate any major changes in the near future? A job change, divorce, adding a baby to your family, retiring, buying a house, getting married, or moving can alter your income and your lifestyle significantly.

You may need to adapt your budget, your spending, your savings, and your investments. Your tax filing could also be affected if you’ve added to your family or you’ve seen a major increase or decrease in your income. Having time to plan for these changes in advance will make the transition much smoother.

3. Protect Your Assets

Next on your annual financial checkup to-do list is considering how well you’re protecting your assets. Start by reviewing your homeowner’s or renter’s insurance, health insurance, auto insurance. Don’t forget to protect the greatest asset of all – your income-earning ability – with long-term disability insurance.

TIP: While reviewing your insurance coverage, also review your premiums. Consider whether you can save money by switching to a different carrier or bundling your various insurance coverage together with the same provider.

4. Prepare for the Unexpected

Review your will, and if applicable, your estate plan. Have any changes taken place that requires updating? If so, you may need to update your will.

Also, review your life insurance coverage to make sure you have a large enough policy to protect your loved ones financially if something should happen to you. And if you don’t have life insurance yet, that’s something to consider getting sooner, rather than later. The younger and healthier you are, the lower your premiums are likely to be. Meet with a life insurance agent to discuss whether a term or permanent life insurance policy is best for your situation.

5. Evaluate Your Investment Performance

Calculate the return on each of your stocks, bonds, or mutual funds. Are you satisfied with their performance compared to the rest of the market? If you don’t believe the investment will recover its losses, it may be time to sell the dogs.

The end of the year is a good time harvest tax losses. Harvesting losses allows you to offset capital gains on your investments with losses stemming from under-performing investments. This strategy is effective in a taxable brokerage account, since investments in a 401(k) or IRA are already tax-advantaged.

WARNING: Watch out for the wash-sale rule when harvesting tax losses. This IRS rule dictates that any new investments you purchase within 30 days of selling an investment to harvest losses must be substantially different.

6. Evaluate Your Debts

As part of your annual financial checkup, consider how well you’re doing with managing debt. Specifically, evaluate your debt to income ratio. Has your credit card debt decreased this year? If not, it’s time to figure out where the leaks are taking place and try to plug them. It’s difficult to get ahead and invest when too much of your income is going to interest payments on credit cards.

How’s the interest rate on your mortgage? Should you consider refinancing? Even a small dip in rates can make a big difference in the life of your mortgage, but you have to consider closing costs to see if it’s worthwhile.

Lastly, how’s your credit score? If you haven’t ordered your free copies of your credit report, now’s a good time to do it. You can get one free copy of your credit report per year from AnnualCreditReport.com. Once you have your copies of your credit reports, review them carefully and dispute any errors you come across.

7. Reduce Your Income Taxes

This is a good time to plan for next year’s taxes. What can you do to minimize them? Add up all your allowable deductions and see if you can itemize. Review the list of allowable deductions and make sure you take advantage of any you’re eligible for. Consider bunching deductions into one year or accelerating deductions by paying tax-deductible items early to help you reach the threshold for deducting.

For instance, medical expenses can only be deducted if they exceed 7.5% of your income. If you’re close, pre-paying an orthodontia bill or scheduling that elective surgery before the end of the year could save you some money on taxes.

8. Review Your Retirement Plans

Last but not least, look at how you’re doing with regard to retirement funds. Are you contributing the maximum to your 401(k) plan? This is one of the best tax-reducing strategies available. If your employer doesn’t have a 401(k), does it offer any other kind of plan? If not, consider setting up an IRA on your own.

Also, look into whether your company offers other ways to save, such as a Health Savings Account. An HSA isn’t a retirement plan, per se, but it’s a good way to save for future health care expenses on a tax-advantaged basis.

NOTE: HSAs are associated with high deductible health plans only. But they offer triple tax advantages: tax-deductible contributions, tax-deferred growth and tax-free withdrawals for qualified medical expenses.

How’d you do? If your financial health is in good shape, congratulations! If it can use a little work, at least you know where you need to concentrate your efforts. And remember to update your annual financial checkup at the same time next year to track your progress.

Originally published at TheBalance.com by Deborah Fowles.

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

May 16
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3 Financial Tips for Recent Young Widows

By Insurance, Money Management No Comments

I recently did a radio interview where I was asked to give a young man who is a recent widow money tips. He is now a single father to three young boys and had concerns about how to deal with his new financial situation. Here is what I shared with him and the radio listeners.

Losing a loved one like a spouse, that is so significant to the family, is devastating. Adding to the responsibilities of the spouse that has past can add to the stress and fear of the new young widow. While there is so much that needs to be done to keep the family structure in place, here are 3 things to do for the household finances.

#1. Create a New Household Budget

There is either a decrease in the household income, an increase in household expenses or both. Most of the time the surviving spouse not only lose their loving partner, they may also lose the associated income that contributed to the household’s financial stability. If the late spouse was a stay at home mom or dad, new expenses like daycare or after-school care may be added to the household expenses. If this is the case, a new household budget is necessary.

Writing out all of the existing and new household expenses will help the surviving spouse make important financial decisions, like whether to downsize living expenses, cut out or reduce certain activities, or necessity of adding to their income stream.

Knowing the financial position of the family is just as important as creating and working towards financial goals.

#2. List and Prioritize New Financial Goals

The devastation of losing a spouse may pause or change your financial goals.

Once your new household budget is established and stabilized, new or modified financial goals must be executed. Financial goals, like paying off debt, saving for retirement, saving for children’s education, or that family vacation, can still happen. However, with potentially limited or reduced income, they may need to be prioritized. It’s harder to catch multiple balls thrown in the air for one person, so focus on which financial balls to catch (financial goals to work) on first, second, third, etc.

Just never stop working towards accomplishing those financial goals.

#3. Update Beneficiaries, Wills and Life Insurance

Update Beneficiaries

This is a tough one to do, especially if the loss of a spouse is recent. However, it is the best time to get it done so it won’t have to be dealt with it later or forgotten about.

Update beneficiary information on all financial, medical and employment documents.  If the child(ren) are under the age of eighteen, designate a trusted family member or friend that will carry out the wishes to financially take care of them. Or, establish a Trust and make the Trust the beneficiary. With a Trust, the Executor will legally carry out the disbursement wishes for each of the beneficiaries.

Update or Create a Will

Update the Will, as necessary, and designate a family member or friend to be the estate executor. If a will is not in place and an estate executor is not designated, it is called dying “intestate.” Which means …

“The intestacy laws of the state where you reside will determine how your property is distributed upon your death. This includes any bank accounts, securities, real estate, and other assets you own at the time of death.”

Having a Will is especially important to have if there are children so that a trusted guardian is designated to take care of them.

Click here to read “10 Easy Steps to Writing a Will.”

Update or Get Life Insurance

Life insurance can be a financial blessing by covering final expenses, paying off debt, replacing the late spouse’s income, establishing or adding to an emergency fund, retirement account or educational fund for the child(ren). However, not having life insurance can cause major financial chaos to the surviving family.

This is the time to re-evaluate existing policy(ies) to make sure it is enough for the family or to obtain life insurance to protect the family from financial hardship.

If the late spouse had life insurance, after the final expenses are handled, consider using it to fund one or a few financial goals, like debt elimination, retirement savings or children’s college fund.  Avoid spending it on lots of nice things or places that will not be beneficial to the family’s financial future.

If the late spouse did not have life insurance, follow steps one and two, then speak with a Licensed Life Insurance Agent to discuss options. Just remember that one size does not fit all when it comes to Life Insurance and the most important question that needs to be asked before shopping for life insurance is:

“What do I want the Life Insurance to do for my family and while I’m alive.”

Keep in mind that Life Insurance does not have to be death insurance. Life insurance can be a financial tool and investment to assist in reaching financial goals as well as take care of your family when you pass.

The new normal of living without the spouse is emotionally, physically, spiritually and financially draining and overwhelming. Just remember to take it one at a time and ASK FOR HELP! Your family loves and needs YOU!

Feb 16
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13 Easy Ways to Improve Your Finances On Your Lunch Break

By Insurance, Investments, Money Management, Saving No Comments

If you work full time, you know how hard it is to keep up with all the little things outside of your job. But have you tried putting your lunch break to good use? Instead of spending the hour chatting at the watercooler while you munch on a snack from the vending machine, grab something healthy and use the rest of the time to tackle some important odds and ends – like your finances. Below, we share 13 tasks that you can accomplish over lunch that will help you build a better financial future.

1. Pay your budget a visit

Check your budget from time to time so that you can visualize the progress you’re making toward paying down debt or saving. Make it a habit.

“This will help you stay on track and help you feel motivated to keep working hard toward reaching your goal,” said consumer finance expert Andrea Woroch.

She suggests using an app like Mint, which links all of your financial accounts in one place and provides a real-time snapshot of your spending and saving habits.

2. Write down your goals

Rather than just thinking about your financial goals, write them down in a diary or on a vision board. “You’re more likely to stick to your budget if you write down your plans and are specific,” said Marshay Clarke, a certified financial planner at Betterment, a financial advisory site. Make sure to revisit your goals periodically to stay on track.

3. Open a savings account

You’re more likely to save money if you have somewhere to put it. During your lunch break, you can easily open a savings account at your current bank or with an online bank that offers a high-yield savings account. While you’re at it, set up a recurring monthly transfer from your checking account for automatic savings.

4. Save with ease

There are apps that help you save and take minutes to set up. Dr. Elizabeth Dunn, co-author of the book “Happy Money“, is an adviser for the Joy app and their free FDIC-insured savings account. The app allows users to automatically save extra cash without having to do much extra work. “This is important because just adopting the goal to save money doesn’t seem to change people’s financial behavior,” Dunn said. “But getting a little nudge to save a manageable amount of money can make a difference.”

Other apps that allow you to save incrementally are Digit and Qapital. Digit will recommend how much you should save, based on your spending habits and financial obligations, whereas with Qapital, you create your own saving rules.

5. Earn more

If cash is really tight, or you want to save for a large purchase, maybe it’s time to pick up a side hustle with Fiverr or TaskRabbit. Plenty of people have been known to use their lunch hours to pick up riders as Uber or Lyft drivers, too. Put those extra funds toward a future goal, like a vacation or down payment for a new home.

6. Get familiar with your insurance

If something unforeseen should happen in your home, like a fire or a robbery, do you know what you’re covered for? If not, take a few minutes to find out so that you’re not caught off guard should something occur. No insurance? Research policies online over lunch.

7. Sign up for credit monitoring

Knowing your credit score is important because it can positively or negatively affect your ability to secure a loan, qualify for certain credit cards and, in some cases, get a job. A free service like Credit Karma or Credit Sesame will monitor your score and send you emails if something is amiss.

8. Think about the future

Use an online retirement calculator to determine if you are saving enough for your long-term goals. If you’re falling short, consider increasing your 401(k) elections from your paycheck, or set up an automatic deposit from your bank account to your investment account.

Also, check your retirement account online and make sure your beneficiaries are in order. It only takes a minute to add a beneficiary and you’ll have peace of mind that your funds will go to the right person(s) if you were to pass away.

9. Review your paid subscriptions

Review those subscriptions you’re being billed for each month. You might be paying for things that you rarely, or never use. If those New Yorker magazines are piling up, or you can’t remember the last time you listened to Amazon Music, it might be time to cancel.

10. Negotiate with service providers

Call your phone or internet provider to see what promotions they are offering. Or, contact your credit-card provider about a possible APR reduction. If you have good credit, you might be in luck.

11. Review your credit card statements

Do you blindly pay your credit-card bills each month? Even if you use autopay, you should take a few minutes each month to scan your statements to ensure that all of the transactions belong to you and are accurate.

12. Get fit

Take a walk or attend an exercise class. Health care is expensive, and the better you take care of yourself, the better your chances of avoiding costly medical bills. Some life insurance providers offer reduced rates to customers who show a certain level of fitness activity on their fitness trackers. Fitness can pay!

13. Sharpen your financial skills

Skip the digital Solitaire or Candy Crush and read a financial book, like The Wisdom of Finance by Mihir Desai. Doug Kinsey, certified financial planner and Partner at Artifex Financial Group, enjoyed the book so much that he took Desai’s Harvard HBX Course, Leading with Finance, which you can complete online.

“Another helpful HBX course is Economics for Managers,” said Kinsey. “Either one of those courses will help almost everyone by providing greater insight into how the world works from an economic and financial perspective.”

Clarke recommends the financial books Rich Dad Poor Dad, by Robert T. Kiyosaki, and A Random Walk Down Wall Street by Burton G. Malkiel. So take a look at those, too.

Also check out the financial book Financial Fornication by Tarra Jackson.

MagnifyMoney is a price comparison and financial education website, founded by former bankers who use their knowledge of how the system works to help you save money.

Originally appeared on WWLTV.com. 

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.