It’s hard to get our financial house, not because it’s particularly difficult, but since it’s… Boring? Annoying? The last thing we want to spend time with? To fix this, here are four tips that you can take and accomplish.
Do you really need life insurance? So, answer the question and find out: If something happens to you, will your loved ones suffer financially? If the answer is yes, you need life insurance. Then there’s the question, how much? There are many factors in calculating how much life insurance you may need.
But it doesn’t have to be hard. Instead, use this online Life insurance needs calculator, and for only a few minutes you can have a fueled understanding of the amount you need. If you already have life insurance, why not use this calculator to make sure you have enough!
And don’t be spending – or actually perceived costs – stop you from getting coverage. Did you know that 80% of people overestimate how much life insurance costs? And those under 25 think it’s four times more expensive than it really is.
Let’s frame it this way, say you are 30 and in good health, a 20-year life insurance term insurance policy with $250 000 coverage can cost about $13 per month. It is the equivalent of a few Drive Starbucks-through lat. Here are a few ways you can get coverage or search agent if you don’t have one.
Review your life insurance beneficiaries.
Since you forgot to change the beneficiary on your policy, would you like your ex-wife to have your life insurance if anything happens to you? Do you want the money to be courted for naming your underage children as heirs?
These are mistakes that happen more often than you think. Add to that the fact that people can have multiple policies—for example, one via workplace (group policy) and one they bought individually.
This is exactly the kind of thing that a life insurance agent or counselor can help you with. And it doesn’t cost you anything to talk to them about it. Also, if you’ve gone through the tip of #1, they can double-check that coverage you’ve come to fulfill your needs. Also, it’s honestly a lot less effort to get someone who knows what they are doing to help you out, and isn’t that what we’re trying to accomplish here – get it done?
Don’t skip disability insurance.
Many people are not really familiar with what is disability insurance and what it does. In principle, part of your income is replaced if you cannot work due to a ban on illness or injury.
Why is this important? Think about how long you may want to fill the ends – pay rent or mortgage and all your monthly bills if your salary rise suddenly disappeared. Life happens in a study found that most of those who work would not do it more than a month before they have to make some serious financial activations.
So, how can you get it? Your employer may provide disability insurance coverage through the group plan. If you’re not sure, contact your HR department or benefits manager to find out what type of coverage you have (if any).
If you don’t have coverage or don’t need more than what’s offered by work, buying your own disability insurance policy is worth considering. Unlike group coverage, private insurance is left even when you change jobs.
Also, remember that many people overestimate what the government would pay or cover if something had to happen. According to the National Security Council, 73% of long-standing casualties were a result of injury or illness that did not work together and that the workers could not benefit.
These things will set you up for how to determine if unforeseen, you and your family are going to be financially. And more than your peace of mind?