Most insurance companies and insurance brokers have been relying on face-to-face communications to sell their services. However, with the global pandemic where everybody is maintaining social distance, people are now working from home and face-to-face communication has been curtailed. As an insurance broker, you still want to remain in business and reach out to your clients, but you cannot meet up with them. The big question then is, how can an insurance broker sell insurance during Covid-19? [Read more…] about How to Sell Insurance from Home
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How To Optimize Your Personal Finances And Life Insurance Policy This Year
2020 was undoubtedly a year filled with uncertainty. The global pandemic not only infected most people’s physical health it also hurt everyone’s financial pockets.
In this current economic climate where long-established businesses are closing doors and unemployment is at an all-time high, you may be wondering how you can safeguard yourself and your family from a financial crisis.
If this is you, read on to learn more about how you can revamp your personal finance management and life insurance policy this 2021.
It’s a known fact that the vast majority of people dream of not worrying about where their money will come from and where it will go. But that’s not typically the case for most people.
The thing is, it’s not about how big or small your take-home pay is. In fact, people who earn an above-median income tend to spend more. This phenomenon is called lifestyle inflation, where individuals that make more spend more to keep up with the Joneses.
The real issue is how you manage your money and how future-proof your financial goals are. Maybe the real reason you’re worried is that you never took the time to observe and change your spending habits to begin with. To save you heaps of stress, later on, follow these tips to optimize your spending habits:
Think Long-Term
Having goals is vital in managing your finances. Plans allow you to gain a better vantage point as to where you want to be within a specified timeframe.
In improving your financial management, make sure you set precise, achievable, and time-bound goals. Identify both short-term and long-term goals. Typically, short-term goals are objectives you aim for within the span of 1 to 3 years, while long-term goals span from 5 or more years.
Life insurance policies are one example of a financial investment that’s considered as a long-term investment. An insurance policy is a contract between an insurer and a policyholder where beneficiaries are entitled to receive a certain amount of money if the policyholder dies.
If you already have a life insurance policy, make sure to regularly evaluate your insurance as your needs may change over time. Also, remember to update your beneficiaries, especially if you’ve recently been divorced.
Assess Your Financial Situation
Most people fail to manage their finances properly because they fail to even look at it in the first place. Evaluating your current situation can give you an overview of where you are financially. Consider these questions when assessing your financial state:
- How much money are you making each month or year?
- How much money are you spending monthly?
- How much debt do you need to pay off?
- Are you following a budget? If so, why is it not working?
- What can you do to reduce or eliminate expenses?
- Are you allotting money into savings?
As you evaluate your situation, you’ll gain a better insight into creating a financial plan that’s tailored to fit your needs.
Create A Budget And Stick To It
Now that you have a financial plan, it’s time to craft a budget plan. In creating a budget, make sure to strictly determine what your needs are from your wants. Essentially, needs are things that are impossible to live without, while wants are things you desire that are not essential for your survival.
Be very careful when prioritizing your needs over your wants. There will be times when you’ll rationalize an expensive purchase as a need when in reality, it’s not. One typical example of this occurs when buying a car. Yes, you do need a car to get to work, go to the supermarket, etc. But do you really need to buy an expensive, top of the line model? No.
As a rule of thumb, practice practicality in purchasing essentials.
Implement your budget, and stick to it as strictly as you can. Tracking your daily expenses on a piece of paper or using an expense tracker on your phone is an easy way to manage your spending. See the table below for trackers you can use for budget.
| App | Fees and Minimum | Best for: |
|---|---|---|
| Personal Capital | Free | Monitoring wealth and spending |
| Simplifi | Free | Personal budgeting |
| YNAB | $84 a year or $11.99 a month (after a 34-day free trial), free for students for 12 months. | Personal budgeting |
Of course, a little self-indulgence isn’t so bad. Reward yourself when you successfully follow through with your budget plan for three months so you can keep yourself motivated.
Start Saving Now
If you want to be smarter in life and with your money, practice saving. Most people take 10% of their earnings and put them in a reserved fund for future use.
Saving is a brilliant way to future-proof your life. When you reserve a portion of your money, you can be prepared if a life-altering event occurs, like losing a job or a health crisis.
Saving money is also excellent preparation for your retirement. Maybe you want to retire early or spend your later years on a lush island; whatever your life goals are, the sooner you start building up your savings, the brighter your future will look like. Try these savings apps so that you can automate saving.
| App | Fess and minimum: | Best for: |
|---|---|---|
| Digit | 30-day free trial period. $5 per month | Setting aside automatically |
| Acorns | $1 per month | Spare change investing. |
| Qapital | $3 membership | Letting you set rules to automate savings. |
Takeaway
How much money you end up with is determined by how well you manage your finances, not how much money you make. Think long-term when it comes to your finances. Skip the non-essentials today, and you’ll thank yourself later when you’re retired and sipping a refreshing cocktail by the ocean.
What Happens to Your Mortgage When Your House Burns Down?
The West Coast of the United States has seen one of its worst fire seasons on record. Amidst an already financially devastating pandemic, people’s homes and livelihoods have burned to the ground. This is an absolutely tragic outcome, and everyone should be prepared for disasters like these. Getting a preparation plan in place ensures that you can minimize unnecessary stress in an unimaginably difficult time. The first step is to know exactly what is going to happen to your debts when these disasters strike. So, what happens to your mortgage when your house burns down?
Rebuilding With Insurance
The first thing you will need to do is get in touch with your insurance company. Your insurance claim is going to be your primary source of restorative funds, and it is how you can most easily obtain funds for living expenses and repairs. With most mortgages, the homeowner is obligated to have homeowner’s insurance.
Getting your insurer to pay for all damages may come with some roadblocks, as your insurance provider may try to argue with you over the extent of disaster-related damage. Consider hiring a lawyer and a public appraiser in order to assist you in that part of the process.
The most probable situation in which you will find yourself is with an insurance claim given to your mortgage provider. They will set up a disbursement schedule based on a construction or repair plan, ensuring that the funds are used properly. There can also be a good deal of headbutting here, and the appraiser/lawyer tag-team should help here as well.
Insurance can also cover your belongings that were lost in the fire, as well as a hotel stay/rental costs if your home is left uninhabitable during construction. This will help you fill in the gaps left by the disaster, and assist you in continuing to pay your mortgage.
Total Loss
In the event of a total loss, you are still on the hook for your mortgage. So, if your claim is able to cover the mortgage, you’re in the clear. If you are upside-down on your home, though, you may end up having to make payments on the home even if it isn’t there. This is obviously not the most ideal circumstance, but sometimes you have no other choice.
Will Lenders Assist Me?
For the most part, yes. Lenders make more money if you are able to make your payments. So, if you need forbearance, deferment, or some other form of assistance, they may offer that help to you. You will have to be fully transparent and cooperative with them, and ensure that you have gotten everything you can from your insurance provider.
Peace of Mind
The best way to maintain your sanity in a disaster is to come into it with a plan. Make sure you have an advantageous insurance plan, that you’ve read your lender’s policies on disaster assistance, and that you have an emergency fund. These vital steps will keep you from wondering what happens to your mortgage when your house burns down.
Do you have a plan for a disaster? Have you recently had to rebuild after a fire or other severe weather? Let us know in the comments below?
Read More:
- Our No Cost Christmas for 2020
- 5 Types of Financial Advisors
- 5 Ways to Ensure You Don’t Outlive Your Retirement
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Everything You Need to Know About Buying a Term Life Insurance Policy
Term life insurance is the most affordable type of coverage; it comes with the lowest premiums and, sometimes, has a cash value that you can settle for prior to the end of the agreement. When you’re learning about the different types of life insurance, you’ll undoubtedly encounter term policies the most often. These are highly flexible in terms of both length, death benefits and premium costs. Before you decide to invest, here is a rundown of all the most important details about term life insurance.
Protection Lasts as Long as Your Contract
The duration of a term life insurance policy can range from a few years to several decades. Some people choose this type of plan because it is the most affordable and helps them reach certain goals, like having guaranteed coverage for debt during a loan’s lifespan or protecting children under 18. If you want to take out a loan to cover debt, then you should look at the length of your outstanding loans rather than the term of the life insurance policy itself. The best way to ensure coverage and avoid responsibility for debt falling onto your loved ones’ shoulders is to pick a policy that either covers the length of your loans or exceeds them.
There Is No Cash Value on Term Policies
If you’re interested in accruing a cash value that you can use later, then you’ll want to look for whole or universal coverage. Term coverage is chosen for its affordability and death benefit; there is no ability to take out money or settle for a term policy. Whole life insurance, on the other hand, accrues a value over time that can borrow from or exchange your coverage for later. You can look at a guide that explains a viatical settlement in order to add to your policy to receive a cash amount in the event you are diagnosed with a terminal illness. Looking up the estimated worth of your policy is easy and free with an online tool.
You Can Convert Your Policy
Most forms of term coverage have an option to become permanent after a set period of time. When this happens, your premiums will increase substantially, so you’ll have to consider whether this is feasible for your budget before you decide to convert. However, for those who wish to keep coverage while gaining access to a cash value, this is an option worth exploring with potential providers. The death benefit can either stay the same or increase based on how much more you can pay in premiums. You can choose to pay for your premiums monthly, semi-annually, quarterly or annually. Every provider has their own requirements and financing options.
You Can Get Your Money Back
If you outlive a term, then you can receive the amount of money you put into the coverage back. This typically applies to life insurance policies that last 20 years or longer; the return of premium on term life insurance varies among providers, but a quality insurer will give its customers the ability to receive a return on investment should they live beyond the agreement of their coverage. You may also decide to renew your policy or convert it to permanent at the end of your term; remember to keep your family’s projected needs in mind and update your life insurance as things change.
Some Insurers Offer Travel Insurance with COVID-19 Coverage Despite Ongoing Government Restrictions
Countries around the world continue to feel the impact of the COVID-19 pandemic. The continuing crisis brings chaos and uncertainty to the travel sector as countries have different approaches to border control and containing the virus. [Read more…] about Some Insurers Offer Travel Insurance with COVID-19 Coverage Despite Ongoing Government Restrictions
3 Times You Need to Prove Fault in a Car Accident
If you’re in a car accident, you will have a lot of questions right off the bat. One of those questions may be if you need to prove fault to receive an insurance settlement.
There are some situations where that’s true. You’ll be forced to prove that the car accident was at least mostly the other driver’s fault. Let’s take a closer look at those cases:
[Read more…] about 3 Times You Need to Prove Fault in a Car Accident