Money Management

There’s one type of life insurance that has the potential to break the bank. And buying it means taking a risk. Read on to learn more. [[{“value”:”

Whether you have a spouse, children, or siblings you help support, if there are people in your life who depend on you financially, then it’s important to put a life insurance policy in place.

You could opt for a term life insurance policy, which covers you for a preset number of years. Or, you could look at whole life insurance, which not only covers you permanently (meaning, the rest of your life), but also accumulates a cash value you can borrow against or cash out in time.

At first, you might assume that whole life insurance is the better deal. After all, with term life insurance, once your policy runs out on you, you get nothing (except, you know, getting to live). But here’s why it may not be.

The cost could be prohibitive

Unless your employer offers it as a benefit, life insurance is probably not something you’re going to get for free. But in the context of paying for life insurance, you should know that the cost of whole life insurance could be exorbitant compared to the cost of a term life policy. So even though you may like the idea of perpetual coverage and a policy that accumulates a cash value, the cost may be enough to put a serious dent in your budget.

Policygenius says that a healthy 30-year-old applicant can pay around $26 per month for a 20-year term life insurance policy with a $500,000 payout. By comparison, a whole life policy with the same payout might cost that same applicant $451 per month. That’s more than 17 times the cost of term life insurance.

Now, think about your expenses. Chances are, you can squeeze a $26 payment into your monthly bills, especially if you cut back a little bit in certain areas. But finding a way to cover a new $451 bill is another story.

Of course, these figures are just one example. And they’re not necessarily representative of the amount you’ll pay for life insurance. The point, however, is that the cost of whole life insurance could far exceed the cost of term life. And that’s reason alone to opt for the latter.

Whole life insurance also comes with one big risk

As mentioned earlier, life insurance generally isn’t free. You have to keep paying your premiums to maintain your coverage. If you stop paying those premiums, guess what happens? Eventually, your policy could lapse.

In some cases, with whole life insurance, you might eventually get to the point where your policy has enough of a cash value that your premiums can be taken from it. In that case, you could avoid losing your coverage even if you stop paying for it.

But generally speaking, not paying your life insurance premiums means running the risk of losing your coverage and having to start all over again. And that risk may be much higher with whole life insurance due to the higher cost.

Putting life insurance in place could be one of the smartest moves you make in 2024. But be careful if you’re looking at whole life insurance. It might seem like a great deal, but in reality, it could end up being disastrous.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Don’t drive very often? Read on to see if pay-per-mile insurance could be a good bet for you. [[{“value”:”

When you own a car, auto insurance is an inevitable expense that comes with it. Ascent research finds that U.S. drivers pay $3,017 per year, on average, to maintain auto insurance. But the premium you pay will hinge on a variety of factors, including:

Your driving historyThe make, model, and condition of your car at the time you buy itYour location

Another factor that might influence your car insurance costs is the extent to which you use your car. And if you don’t drive very often, there’s a specific type of car insurance it could pay to look into: pay-per-mile insurance.

How pay-per-mile insurance works

As the name implies, with pay-per-mile insurance, you’re charged based on the number of miles you drive. To be clear, pay-per-mile insurance usually requires you to pay a base premium rate so that even if you drive no miles in the course of a year, you’re still paying something. However, if your vehicle doesn’t get a lot of usage, then it could make sense to pay by the mile if it saves you a lot of money.

And if you’re wondering how your auto insurance company will track your mileage, the answer is technology, baby. Many cars have built-in technology that can track mileage already. Otherwise, your insurer may require you to plug a device into your car that tracks mileage.

Either way, your insurer won’t just take your word for it when it comes to the number of miles you’ve driven. It’s going to need proof either way. But these days, that’s not so hard to come by.

Is pay-per-mile insurance right for you?

Nowadays, a lot of people are working from home on a permanent basis. If that’s the case, and you don’t anticipate having to commute to a job anytime soon, then it could pay to look at pay-per mile insurance.

Similarly, maybe you’re a stay-at-home parent who drives only a few miles each week to run errands or take your kids to activities. In that scenario, it could pay to price out a pay-per mile insurance policy and see if it’s less expensive than a standard one.

Or maybe you’re a retiree in a fairly walkable neighborhood. You may only use your car once a week when you’re buying too much at the grocery store to carry home in your arms. That, too, could be a scenario in which pay-per-mile insurance makes financial sense.

To be clear, the amount you’re quoted per mile will hinge on a number of factors, your location being one of them. Even if you drive very infrequently, it’s impossible to say with certainty that pay-per mile insurance will save you money. To know that, you’ll need to compare your premium for standard coverage with what you’re quoted on a per-mile basis, and then try to estimate the number of miles you’ll drive in the course of a year.

But either way, if you don’t drive often, pay-per mile auto insurance is an option worth researching. It could result in a fair amount of savings this year.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Medical care for pets can be very expensive. Read on to see how pet insurance might help. [[{“value”:”

If you’re gearing up to adopt a pet, one thing you’ll want to do is read up on the costs of owning one so you can factor that sum into your budget. And those costs should include everything from food to gear to medications and veterinary care. The latter, however, has the potential to be quite expensive — even when things don’t go particularly wrong.

Data from SWNS Media Group reveals that the average pet owner spent $1,242 on vet visits in 2023. And if that number sounds high to you, you may want to purchase pet insurance as soon as possible.

Don’t compromise your pet’s health

Whether a pet insurance policy leaves you spending less on veterinary care will hinge on factors like your pet’s age, their pre-existing conditions, and the type of coverage you have. Some pet insurance companies do offer coverage for preventive care — for example, annual vaccines your pet should have. But pet insurance that covers preventive care can be more expensive than insurance that’s simply designed to cover the unexpected.

To be clear, though, it’s really important to put pet insurance in place in case you end up with an emergency situation related to your pet. Let’s say your pet picks up a parasite that causes non-stop vomiting. Between testing and treatment, you may be out anywhere from a few hundred dollars to a few thousand, depending on whether your pet needs to be admitted to an animal hospital and administered fluids and medications or whether you can treat the issue at home.

Without pet insurance, you might have to raid your savings or rack up serious credit card debt to cover your costs in that sort of scenario. Or, you might end up in an even worse situation — having to potentially not get the life-saving treatment your pet needs due to a lack of money.

That’s why it’s so important to put pet insurance in place. You won’t necessarily save money on preventive care with pet insurance. But when it comes to non-routine care, you may find that having insurance saves you money on vet visits — even when there’s no major emergency at play.

How to find the right pet insurance policy

As you might imagine, when it comes to choosing a pet insurance policy, you may be privy to many options. So factors to look at include:

Scope of coverageThe cost of coverage (what your premiums amount to)What each policy pays (it’s common for insurers to put a cap on coverage)Your out-of-pocket deductible (what you’ll pay before the insurer covers care)

Now, one thing you should know is that if you have a pet with a pre-existing condition, you may have a really hard time finding a pet insurer that will cover the issue at hand. But that doesn’t mean you won’t be able to find an insurer to cover new issues that might arise.

Either way, take a little time to explore your options. But, frankly, don’t take too much time. You never know when a pet care emergency might strike. The sooner you can put insurance in place, the more protection you get.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You can get great deals at Costco any time of year. Check out these winter wonders. [[{“value”:”

Whether you like discounts on name brands or paying pennies on the dollar for Kirkland Signature, Costco is an easy financial win for a lot of families. The beloved wholesale club has all kinds of deals year-round that make it a valuable stop no matter the season. Here are some of the best deals you’ll find this winter.

1. Winter sports gear

Winter may have taken its time coming this year, but the cold weather is here now for many in the northern states. Like it or love, we gotta live in it, so you may as well have fun. And you can have that fun on a budget by gearing up at Costco.

While I’m not spotting any eye-popping sales right now, you really don’t need them to save on winter gear from Costco. It has a ton of affordable options across the spectrum, from waterproof gloves and helmets to snowshoes and sleds. (You’re absolutely never too old to slide down a snowy hill on a piece of plastic shouting, “Weeeeeee!!!!” It’s good for the soul.)

This doesn’t seem to be junk, either. Most of Costco’s winter gear has good reviews on quality from shoppers. You also get Costco’s great return policy that means if you have a problem even years down the line, you can probably get your money back.

2. Televisions

When the weather outside is frightful, I tuck myself in front of the TV with hot soup and good shows. (Alright, the shows probably aren’t that good, but the sentiment remains.) And there may be some sort of large, televised sporting event on the horizon.

In any case, you can get some great deals on TVs from Costco, especially right before certain national sporting events with trademarked names and litigious rights owners. Costco currently has deals on TVs of all sizes, with 50″ Hisense models starting at $239.99, up to 86″ LG models for $1,000. (Prices good through Feb. 11, 2024.)

Keep in mind that Costco’s infamous return policy has a specific exception for major electronics, and this includes TVs. So you’ll only have 90 days to return your TV should you not be pleased with the purchase.

3. Vitamins

Days are shorter, it’s cold out, fresh veggies are more expensive — there are a lot of reasons you might not be getting your proper variety of vitamins and nutrients right now. Costco has you covered with a surprisingly diverse array of vitamins and supplements.

Kirkland Signature has all the basic letters, including vitamins B, C, and D, as well as all-around multivitamins. You also have a few well-priced options if you prefer your vitamins to be name brand — and made of gummies. (Sadly, they don’t carry Flintstones Chewables, I checked.)

If you can hold out until the next sale cycle, most of Costco’s vitamins will have extra discounts from Jan. 31, 2024, through Feb. 25, 2024, according to the latest savings flier.

4. Costco travel

Some of us like to play in the snow. Some of us like to avoid it. If you’re thinking of a winter (or early spring) getaway, consider booking it through Costco.

While I haven’t tried it myself, I’ve heard a ton of folks rave about saving a bunch of money on trips through Costco Travel. You can find flights, book hotels, and even get discounted rental cars.

If you want it all, book a full vacation package. They take a lot of the planning work out of the equation, plus sometimes come with extras like dining credits or room upgrades.

Potential downsides to consider

There are two main downsides to Costco Travel, in my opinion. First, you aren’t booking directly with the airline/hotel/rental agency. This can mean you miss out on loyalty points or perks that you may otherwise get. Plus, if something goes wrong, you’ll need to deal with Costco Travel instead of the airline or hotel.

The other downside? You’re limited on which travel rewards credit cards you can use. Costco Travel accepts Visa or Mastercard — that’s it. So all those great Amex cards we love for travel? Not gonna work. Don’t get me wrong, you still have some really great options with Costco Travel, but it’s worth considering.

5. Gift cards

Alright, so this one is an any-season type of deal, but it’s always worth a mention. Costco has a great variety of discounted gift cards, both in the stores and online.

Discounts vary by retailer, but range from 5% up to 25%. And you can find deals on everything from restaurants to movie tickets to video games. (All the makings of a romantic date night. Discounts are hot.)

The only thing to watch out for is the type of gift card. Some of the listings are for physical gift cards that get shipped to you (shipping is free). Others will be digital gift cards that are emailed to you after purchase.

There’s no bad weather, only bad deals

Whether the winter weather makes you want to go out or stay in, Costco has something that can help. There’s also a good chance the warehouse club has it in bulk and at a discount.

That said, never assume Costco has the best prices. Always comparison shop before you buy.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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Shopping will get easier with AI. And Google’s new tools are a great first step. Read on to learn what they can do for you. [[{“value”:”

Let’s face it, whenever you shop online — whether it’s to buy furniture, clothes, or a gift — you’re rolling the dice on whether you’ll like it when it arrives at your doorstep.

Returning some items can be difficult, which means you’ll either spend your time or tap into your personal finances to ship them back.

Google thinks artificial intelligence could help solve this problem, at least for some purchases. The company recently rolled out several new AI shopping features in its search function that could make shopping easier. Here are a few reasons why it’s a must-try for savvy shoppers this year.

1. You don’t need to learn anything new

Apps usually have a learning curve to them. But one of the benefits of Google integrating AI into its shopping results is that you don’t need to do anything differently. Just search like you usually do.

All you have to do is opt-in to using Google’s AI. When I opened the Google Search app on my iPhone, there was a small beaker in the top left corner. I tapped on it and then selected the option to allow Google’s search generative experience (SGE).

2. Google’s AI can summarize reviews

One of the first things you’ll notice with Google’s AI shopping feature is automatic summaries of products.

I want to replace some of the furniture on our front porch, so I typed “outdoor furniture” into Google’s app, and as I scrolled down, Google showed me results from Ikea, Amazon, Walmart, and others, complete with AI-generated descriptions of the outdoor furniture products.

Some of the AI-generated descriptions even summarized reviews of the products, which was super helpful. For example, Google’s AI told me reviews of the Ikea table and chairs said the chairs were sturdy, easy to assemble, and well made.

3. You can describe exactly what you want

One of the coolest features of Google’s AI shopping tool is that you can describe exactly what you want to buy and then let Google’s AI create images of what you’re thinking about.

For example, I typed “men’s blue cardigan sweater” and tapped the “generate images” button. Within seconds, Google had generated sweater images for me to choose from. I tapped one I liked, and then it found sweaters that matched the AI image I selected. This feature could come in handy if you have a unique style you’re looking for and can’t quite find what you’re looking for while browsing.

4. You can (sort of) try on clothes virtually

I put this feature at the end because, while helpful, I think it needs some improvement. This feature allows you to select from 40 models, each with different sizes and heights, to best match your body type.

For example, let’s say you search for a sweatshirt and see one you like. Some results will show a “try-on” button you can tap, and then you can choose the model that best fits your body type to see how it looks.

While helpful, it’s probably not as useful as it could be. The feature is limited to only some brands and clothing. Selecting a model that’s relatively close to your height and size may not give you a great idea of whether the item will fit you well.

AI shopping will get much better

Google released these advanced shopping features fairly recently, so we’re just at the beginning of how AI could impact online shopping. Other companies are also moving quickly into this space, with Amazon recently releasing a chatbot in its app that answers questions about products.

In the meantime, while AI is still only a whisper as we shop and not able to completely take over for us, make sure to be diligent and compare prices. Using coupons apps and browser extensions that automatically compile prices from various sources across the internet can help ensure you’re getting a fair price on the items you’re looking for.

Considering the U.S. e-commerce industry is estimated to become a $1.5 trillion market by 2028, you can be sure more companies will launch more AI tools soon to continue to improve the online shopping experience.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Walmart. The Motley Fool has a disclosure policy.

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Love it or hate it, artificial intelligence impacts all parts of our lives, including shopping. Take a look at how AI is changing how we shop. [[{“value”:”

It’s easy to imagine that artificial intelligence (AI) represents the first time in history that retailers have tracked their customers’ buying habits. But long before AI, local shop owners paid careful attention to what their customers were buying and how often they came in for those items. It was one of the ways they could make sure to order the products most likely to be in demand. In other words, AI is a newer, more efficient way of doing something companies have done for centuries.

Here are five ways this more efficient information-gathering method is transforming our personal finances by changing how we shop.

1. Stores are less likely to run out of popular products

The bottom line for any retailer is making a profit, and the best way to do that is to provide customers with the products they want and need at a price they’re willing to pay. A retailer does not simply consider what a few customers buy when ordering inventory.

With AI, a business can analyze past sales data to accurately predict future demand for a particular product. It’s a great business strategy, but also good for a customer who does not appreciate going from shop to shop to find what they need.

2. Prices are better controlled by demand and competition

AI allows business owners to see how much their competitors are charging for the same product. At the same time, in an effort to protect their checking accounts, customers are on their computers or phone apps, using AI-driven programs to shop for the best prices in their area. Further, business owners know customers have access to which stores offer the lowest prices, meaning they have to keep their prices low if they want to compete.

3. Shoppers are (far) more likely to receive personalized discounts

As customers scroll the internet, looking for the items they want to buy, AI takes note and makes a list of “favorites.” Let’s say a person is seriously into the old-school Claire Burke fragrance for their home. They buy everything fragrance-related from Claire Burke, from tarts to room mist to candles. One day, while shopping online, they notice an advertisement that includes a discount code for Claire Burke products. That is considered a highly personalized discount, and it’s thanks to AI.

4. Shoppers are better protected from fraud

It’s possible you’ll receive a call one day from your credit card issuer, asking if you’re in a state other than your own, using your credit card to make a purchase. AI helps businesses and customers avoid getting ripped off by identifying red flags that fraudulent activity may be taking place.

5. It’s even possible to try on eyeglasses without leaving home

It’s surprising how quickly many of us have adapted to the idea of trying out a new pair of eyeglasses without leaving home. But all you need to do now is upload a photo that shows your face clearly, find a frame you’d like to try, and adjust the image so the frame fits your face.

Voila! Thanks to AI, you can try on as many pairs as you would like until you find one that makes you look fabulous. Word has it that clothing retailers are working to provide the same sort of virtual try-on tool, but the practice is not yet widespread.

AI benefits businesses by streamlining their processes and helping them avoid shortages and surplus stock. But shoppers may also benefit from AI. Not only can AI save a shopper from fraud, but it can help them save money through the use of comparison shopping apps.

How to maximize AI’s impact on your bank account

If you own a business that benefits from AI capabilities, we say, “good on you.” We know how hard owning a business can be, and if AI helps you build your dream, that’s a good thing. And if you’re an everyday consumer (and who among us is not), we have a few ideas for making the most of what AI has to offer.

Take full advantage of price comparison tools. The right price comparison tool(s) can save you thousands of dollars over the course of a year. There’s no need to thumb through newspapers or check out one store’s sales at a time. A price comparison tool allows you to type in what you’re looking for and compare the prices offered in local stores. It’s that easy. Keep a running list of items you plan to pick up at each store.Pay attention to discounts and special offers you need and ignore the rest. Back when we were talking about personalized recommendations, we gave the illustration of a person who adores Claire Burke fragrances and receives a discount code as part of a personalized ad. If that person has a drawer full of products, there’s no reason for them to pick up more just because they have a code in hand. Make discount codes, coupons, and online specials work for you by only buying what you need when you need it.Go the extra mile with your credit cards. Even if you manually monitor your cards, add another layer of protection with mobile alerts. That way, if anything AI finds suspicious happens, you’ll know about it right away.

If you’ve downloaded your credit card apps, you can typically adjust your notification settings in your user profile. And just to ensure your phone allows notifications, go into the phone’s settings, search for the specific credit card app, and enable push notifications.

As mentioned, AI is not going anywhere, so why not use it in ways that benefit you and your personal finances?

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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