How Much Term Life Insurance Should I Buy How To Get Affordable Life Insurance In Arkansas Six Steps Toward A Bad Auto Loan Are You Becoming Wealthy On Your House
Term life insurance is an important part of the financial planning process. It serves to provide financially for all of the loved ones in your family should you happen to pass away unexpectedly. But one of the important things that people do not put enough consideration into is how much coverage is actually enough.When looking at term life insurance quotes, how can you determine how much is actually going to be needed by your family, if they no longer have you there to depend on? When shopping around for quotes, consider the following information so that you may make the right, informed decisions.
Identifying the Basics of Term Life Insurance
The first thing that you need to remember is that the main purpose of term life insurance is to completely circumvent all financial stress in the event of your death, which means the foremost purpose of your term life insurance policy should be income replacement to protect your family. With that having been said, it is now important for you to understand how your lost salary will impact your loved ones if you pass away.
Make a list including how much money is spent on daily expenses, elderly family care, childcare, education, food, clothing, the mortgage, car or other vehicle payments, various forms of debt including loans and credit cards.
Now you should consider the costs for your last expenses, such as your funeral, burial and any necessary medical or hospital costs. Funerals can easily cost several thousands of dollars and this doesn’t even include any special requests or additional charges that may come up.
You must also consider your long-term expenses when researching term life insurance, including college tuitions, mortgage payments and a retirement fund for your spouse. If you want to leave any funds to local charities or organizations, this is also where those types of financial contributions would factor in. For more information on term life insurance visit https://www.coolwebtips.com you should determine your assets, since you have already determined your financial needs and the financial needs of your loved ones. Factor in all of your current assets, including cash, stocks, savings, bonds, pension, social security and real estate. Subtract your assets from your expenses to figure out how much life insurance are you going to need to purchase in order to ensure that your family is financially comfortable following your death.
It is extremely important that you take the time to do some homework when it comes to purchasing term life insurance, making sure you don’t purchase coverage that is not needed or possibly purchasing too little coverage. Researching your insurance needs before hand will ensure that your family is safe and protected even if you pass away unexpectedly.
Life insurance is unique in that the person who takes out the policy and pays for it is not the person who benefits from it. This makes purchasing life insurance a somewhat noble thing to do.
Noble or not, it is still important not to over-pay for life insurance. That’s why millions of people are looking for ways to get affordable life insurance right here in Arkansas. Fortunately there are a few steps you can take to keep your premium cost in check.
Let’s start by saying that if you are going to buy life insurance you should do so before your next birthday. The cost of life insurance goes up with almost every birthday that passes.
Before we can talk about life insurance intelligently it is necessary to make sure that everyone understands that there are two different types of life insurance policies and that they are priced very differently. There is a whole life policy and there is a term life policy.
With a term life policy you are purchasing life insurance for just a short period of time. Because you are purchasing the policy for a defined length of time the premium on a term life policy is less expensive than the premium on a same-size whole life policy. If you are counting pennies that difference can make term life seem like the better deal.
However, the cost of the initial premium payment is not the whole story. A term policy runs out after a certain number of years (known as the policy’s term) and if you want to continue receiving life insurance coverage after the policy’s term expires, you must buy a new policy – at a substantially higher premium.
If your policy runs out two or three times or even more in your lifetime the cost of premiums toward the end can be prohibitive.
The alternative is to pay a little more at first and buy a whole life policy. A whole life policy is good for your whole life and the premium remains constant for your whole life, too. A whole life policy also builds up a cash value, something a term policy does not do, which you can borrow against if you need to at little or no interest and with little or no need to ever repay the loan.
O.K. Let’s assume you know which type of policy is best for you. Now it’s time to take a few simple steps that will help keep the cost of the policy within reach.
Don’t smoke. If you already smoke then it’s time to quit. The difference in the price of a policy for a smoker and a non-smoker can be substantial, so let me repeat: if you smoke, quit. Period.
If you are overweight you will also pay more for a life insurance policy. Part of your premium will be based on your Body Mass Index, or BMI. If you can lose even a few pounds you may be able to slip into the next lower rung on the BMI ladder and that could save you hundreds of dollars, maybe even thousands of dollars over the lifetime of your policy.
Participating in extreme or dangerous sports, driving a fast, sporty car, having a dangerous career…each of these things adds to the cost of your life insurance premium.
Surprisingly to many people, even your credit rating can help or hurt your life insurance premium. The better your credit score the lower your life insurance premium is going to be.
Finally it’s time to get online and find 3 different websites that compare prices on life insurance policies among a variety of different life insurance companies. Why 3 different sites? Because no one site compares prices between all the different companies. If you search 3 different sites you are virtually assured of seeing comparisons on every life insurance company licensed in Arkansas.
So there it is. Take your time. Make three comparisons and you, too, can get affordable life insurance right here in Arkansas.
Anyone can get a bad deal on an auto loan. It really does not take much – just go get one without any preparation. It is your money and you are free to spend more than necessary. In fact, you probably will. If, however, you want a good deal – this will not come by accident (at least it is not likely). Here are some steps that will help you get a bad auto loan – and if you want a good one you need to avoid them.
1. Do Not Check Your Credit Report First
Oftentimes, errors can be reported by mistake on your credit report. These can be easily corrected and modifications made if challenged. Since your interest rate, the amount you can borrow, and the amount of time you have to pay off the loan are all determined partly by your credit score – why bother with it?
2. Do Not Bother To Get A Preapproved Auto Loan
Preapproved loans mean that you will have probably checked out several auto loan quotes to see which one is the best. This lets you choose the best of the offers you received, and get an even better interest rate. Having the auto loan check with you when you shop for a new car will give you more negotiating power with the dealer.
3. Stay Away From Finding Out The Value Of The Car You Want
A little homework won’t hurt when it comes to making sure you are not paying more than you need to. Of course, if you are rich, then it really does not matter – you probably have money to burn. Otherwise, knowing the value of a car and what it is currently selling for, will help you find a better deal.
4. Telling The Salesman How Much You Can Afford
How much you can afford, or the credit limit on your preapproved check, is not the business of the sales people at the dealers. By keeping it secret, you have greater leverage to lower the cost of the car. If you tell them, they will be sure to keep it as high as they can – just under that amount.
5. Take The First Offer The Salesman Makes
The process of negotiation never starts out where you want it to go. Knowing that you will try to bring them lower, they start out high and leave it up to you to make a counter offer – or at least talk about it. There are always steps toward lower prices if you keep talking with them – they expect it. Oftentimes, people quit too soon to get a deal worth talking about. Understanding the value of the car will let you know how far they can go. A good price would be about two hundred dollars above the cost.
6. Do Not Read The Contract Or Understand The Additions
Understanding auto loan terms and what they mean could save you a bundle. You should know what is required and what is not. Remember – the dealer is out to make some money – he or she is a business person and that is their goal. Your goal, on the other hand, should be to save some money. By knowing the terms, and the ways of car salesmen, you can keep the auto loan down to where it will fit your budget. If you do not understand it as he or she goes through it, ask them to explain it to you.
Good auto loans do not come by accident. If you want a good one, there is no substitute for some research and getting a number of quotes. With that research, it will enable you to drive away with your new car – happy with the deal you got.
Are you becoming wealthy on your house? Is your home your best performing investment? Is your house the only area that of your investments in which you are making money?
Red danger signals should be appearing in your mind. The housing market has gone up, up and up. Many people believe that they “have made x dollars from their house”. Is this true? Is this realistic? Will they ever be able to see or use their new found wealth?
It is true that. Even in 2004 it was said that housing prices had risen the most in 2004 in the past 25 years – that the OFHEO price increase was 13.4 %. Prices have been double digit and seemed to be able to go up and up forever. Indeed the price run-up from 1997 to 2006 was the largest in history.
What fueled this seemingly endless run-up in housing prices? The answer in 3 words was “low interest rates. China it seems wanted to maintain high employment figures for political and economic reasons. In order to maintain high employment levels the price of Chinese goods – at Wal-Mart or wherever had to remain low. If the Chinese currency remained low relative to the U.S. dollar or if the U.S. dollar remained at relatively high levels in relation to the Chinese currency this would be accomplished. It amazing that in our small global world decisions made by someone or a group of people in China can affect yours and mine economic position and future so greatly.
As a result China chose to pump money back into the U.S. buying U.S. treasury bills enmasse. The Amerian dollar remained high , the Chinese currency low. You could buy Chinese made goods cheaply at Walmart or Target stores. And interest and mortgage interest rates were at historically low levels.
As a result you could now purchase a house , upgrade your house or purchase a much larger and expensive house than you could of previously. Your banker or mortgage lender was only too happy to loan you the money for the mortgage – after all the loan , or mortgage was secured by good old fashioned real estate as collateral.
The housing market soared. People who could never of afforded to buy a home , condo or land could now afford one. So many new and additional buyers were entering the real estate market that not only did the demand for homes and other real estate increase but there were bidding wars for properties and sale and the supply for more and more houses and other forms of real estate diminished and housing prices soared. You may well of heard stories of people putting the proverbaial shingle on their home one morning and having it sold for unbelievable sale prices by the end of the day.
Along with this home builders were building scads of homes and selling them at these high sale prices. Mortgage lenders and banks were facilitating the process by selling and marketing low priced mortgages called “subprime” mortgages which offered an initial period of lower rates, the rate charged reverted to regular rates after the introductory period.
The key to all of this was that prices kept going up, up and up. There was no end in site. Not only that but what fueled the boom further was the fear that if you did not get in that you would be locked out in the future. The same house had risen from say $ 200,000 a number of years ago to $ 400,000 to $ 500,000 in one year, if I do not get in the market now; the reasoning went that home could be $ 600,000 or $ 750,000 next year. By getting in now I will get equity and be in the game. If I stay out – my family and I may be locked out of owning a home ever.
So went the logic. As well it seemed that the only place the family could make money in their investments was in the value of their home. One could not seem to “make money “in other traditional investments such as the stock market or their retirement plans.
Which brings us to the basic question? How is money being made? Can you ever spend this money for enjoyment or other goods? At coffee a Mr. Brown may tell you “I made $ 250,000 on my house.” It is true that profits on the sale of your home are treated different and better than other moneys made but the question is how did Brown come out ahead? He will be purchasing another property in the same market. As is said you “have to live somewhere”. If your house sold for a good dollar, that it was desirable, and was a nice home located in a nice neighborhood. It is highly unlikely that you are going to move to a much less desirable, more dangerous neighborhood where housing is much cheaper. You may be going to downsize somewhat but you are not going to move to a slum after enjoying luxury. So it goes this is not liquid profit that you can easily cash out. Even if you or wife decides that it is now time to sell the house since you can get a good price and “We can live in an apartment. So what!” you may well find out in a year that apartment living is not all it is cracked up to be. It was no accident in the past that you scrimped and saved to buy a house and move away from that noisy small, cramped apartment to a house. So it goes that after being reminded of your lesson that you find out that being out of the house and into an apartment for a year that it will cost you substantially for being out of your home for a year.
This all brings us back to our first question. Are you becoming wealthy on your house?.
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