Whole life insurance is a financial product that provides a death benefit when the policyholder passes away. Unlike term life insurance, that only provides coverage for set period of time, whole life insurance provides coverage for life. In the most basic terms, whole life insurance works by charging the policy holder a premium (price) that is paid over time in return for the death benefit. In addition to the death benefit, many whole life insurance policies build cash value that can be taken out of the policy and used for a number of purposes. Many insurance companies also allow policyholders to borrow against the value of a whole life insurance policy.
Whole life insurance is a good choice for those who want to provide for his or her family after death. For example, a person who will likely pass away while still owing a mortgage, with other significant debt or without retirement savings can plan on his or her spouse or other beneficiary to use the money from the insurance policy to cover these expenses.
For those who are in a high tax bracket or who are otherwise seeking a tax advantaged investment, should consider a whole life insurance policy. This is due to the investment portion of the policy growing in a tax advantaged manner. In addition, many insurance companies pay an annual dividend to policyholders. The dividend is considered a return of premium and is not taxable income. A policyholder can choose to use the dividend to pay toward the insurance premium, keep it in the cash value portion of the policy or simply take the money as cash.
The life insurance market is a competitive one. This competition, along with longer average life spans, has worked to reduce the cost of life insurance policies in recent years. A person who is interested in obtaining a whole life insurance policy should get a few whole life insurance quotes online and compare the premium cost for similar plans among different insurance companies. A person who spends a little time comparing policies from the companies with the best ratings can often save a significant amount of money.
It can sometimes be difficult for seniors to find the life insurance that they need. There are a number of factors that combine to create a rather unique set of circumstances for individuals who are mature to find the types of insurance that will fit into their budget and provide them with the peace of mind that they are looking for. While it can prove to be somewhat difficult it is possible to find good senior life insurance. The key is knowing how to shop for it and where to look.
Life insurance offers many benefits for individuals who hold policies. The beneficial features of life insurance policies are many, but the most important is obviously having the knowledge that any final expenses that are left will be taken care of instead of being passed on for someone else to handle. In addition, certain types of policies allow individuals to borrow against the policy, effectively allowing them to have access to an emergency fund in case unforeseen circumstances should arise. Moreover, many insurance companies offer ways to save money on life insurance policies by allowing discounts to certain members of the public.
There are a variety of ways to shop for life insurance. Finding the right policy can be challenging for seniors, as the cost involved with the typical policy increases exponentially with advances in age. This means that many individuals who are on a fixed income may find it extremely difficult to make the monthly payments on a policy unless they can find insurance that is affordable for them. Knowing where to look for it allows people who fit into this category to find life insurance that covers their needs without draining their bank account.
Life insurance for seniors can be found by requesting information over the telephone or in writing. It is also widely available over the Internet. Seniors who are computer savvy should have little trouble finding a policy that works well for them by searching online. Individuals who would rather not shop online can find information in more traditional forms or they can enlist the help of someone to assist them in finding what they need online. In short, it may take longer to find the right policy that provides for individual needs without being too expensive, but with some diligence it is definitely possible.
Managing your personal finances is an intimidating concept to some. However, it isn’t nearly as difficult as so many believe. You can gain control over your finances by employing three simple tips that will help you manage your monthly income, create a budget, and save more money. It’s easy to regain control of the money you make when you utilize these tips.
Track All Spending
Write down every penny you spend each month. It doesn’t matter if you use credit, debit, or cash. Everything you spend needs to be written down and organized into categories such as housing, entertainment, transportation, savings, and food. At the end of one month, you will have a much better idea of where all your money goes. This can help you locate and eliminate wasted funds, which will help you gain control of your personal finances. Knowing exactly what you spend can help you see where you are overspending, where you are not spending enough, and why you never seem to have enough money left over.
Create a Budget
Now that you know where your money is going, create a budget and stick to it. It’s far easier to create a budget when you know exactly how much you spend each month on your living expenses. To live within your budget, you will continue to track your spending every month. You have the freedom to adjust your budget when and where it becomes necessary. Your budget should include all your monthly living expenses and incidentals such as entertainment, new clothes, and travel.
It’s important to save enough money to handle an unforeseen emergency or even just to have on a rainy day. This means you need to account for savings in your monthly budget. Ideally, you should place at least 10 percent of your income into your savings account on a monthly basis. If you find extra money, put it directly into savings. Extra money includes overtime wages, refund checks, and or bonuses. The more you save, the more secure your financial future becomes.