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June 29, 2020

All About Food Deserts

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She Got the House… AND the Life Insurance Policy?

April 22, 2020

She Got the House… AND the Life Insurance Policy?

Life insurance is great for protecting your spouse… as long as it’s for your current one.

This Forbes article tells the story of Warren Hillman, a man with a life insurance policy, a wife, and an ex-wife.

Now, I don’t know if the former Mrs. Hillman “got the house” in her divorce from Warren, but she definitely got the life insurance policy payout! When Warren died from a rare form of leukemia, the entire amount of $124,558.03 was given to Judy, the former Mrs. Hillman. Warren’s widow Maretta got nothing.

Why? When Warren remarried, he never changed the beneficiary designation on his life insurance policy.

Maretta and Judy fought over that money in court for years. The case went all the way to the Supreme Court. And the justices ruled in Judy’s favor. She, the ex-wife, was entitled to the entire payout.

All that time and money wasted on legal battles could have been avoided by changing a name on a form! Speaking of which… When’s the last time you reviewed your own life insurance policy? After reading this, you may already be scrambling through your files to find it!

Let’s check up on your policy together. Contact me today, and we can get the ball rolling on:

  • Reviewing (or revising!) your list of beneficiaries.
  • Making sure you have the coverage you want.
  • Discussing the life insurance features you might have that you can use now.
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The Keys to Paying Your Bills On Time

The Keys to Paying Your Bills On Time

Not paying your bills on time can have significant impacts on financial health including accumulating late fees, penalties, and a negative hit on credit scores.

But maybe you – or a friend – learned about those consequences the hard way. Most late bill payers fall into 1 of 3 camps: they forget to pay on time, they don’t have enough income, or they have enough income but spend it on other things.

In case you – or your friend – are stuck in 1 of these camps, consider the following tips to help pay the bills on time.

I forget to pay my bills on time.
If this is you, you’re actually in a more advantageous position. There are many easy fixes that can help get you back on track.

  1. Use a calendar. This is a tried and true, but often underutilized, method to track your bill due dates. When you get a notice for a bill – either by email, text, or snail mail – jot the due date on your calendar. You can also set a reminder if you use an electronic calendar.
  2. Fiddle with your due dates. Many companies offer flexible due dates. Experiment with what due dates work for you. Some people like to pay their bills all together at the beginning of the month. You may find that you like to pay some bills in the beginning and some in the middle of the month. It’s up to you!
  3. Take advantage of grace period/late fee waivers. If you do forget about a bill and have to make a late payment, give the company a call and ask them to waive the late fee. Late fees can add up, ranging from $10-50 depending on the account. It’s worth a try!

I don’t have the money to pay all my bills.
If your income doesn’t cover your outgo no matter how diligently you pinch those pennies, it won’t matter what type of bill payment method you use, you’re going to have trouble. If you’re in this situation, there are 2 solutions: increase your earnings or decrease your expenses.

  1. Find a side gig. Take a temporary part-time job to make some extra income. Delivering pizza in the evenings or on weekends might be worth doing for a few months to make some extra dough.
  2. Shop around. Shop around for savings. Prices vary on almost everything. Take a little extra time to make sure you’re getting the rock-bottom best prices on your insurance, cable, phone plans, groceries, utilities, etc.

I overspend and don’t have enough left to pay my bills.
Managing income and expenses takes some practice and persistence, but it is doable! If you find yourself consistently overspending without enough left over to cover your bills, try the following:

  1. Create a budget. Get familiar with your income and expenses. This is the only way to know how much disposable income you’re going to end up with every month. You can track your budget daily on an app like PocketGuard, Wallet, or Home Budget.
  2. Stash the money for bills in a separate account. Put your bill money in a separate checking or savings account. This will keep it quarantined from your spending money and help make sure it’s there when the bills come due.

Good Financial Habits
If you feel bill-paying-challenged, or you have a friend who is, try some of the above tips. Taking care of your obligations when you need to can relieve stress, build good credit, and reinforce healthy spending habits for life!

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Improve Your Love Life... With a Financial Strategy?

Improve Your Love Life... With a Financial Strategy?

You may not know this, but a financial advisor is also a relationship expert.

It’s true!

Here’s the proof: Ally Bank’s Love & Money study discovered that 84% of Americans think a romantic relationship is not only stronger but also more satisfying when it’s financially stable. What does it mean to be financially stable?

Here’s a simple 5-point checklist to let you know if you’re on the right track:

  1. You aren’t worried about your financial situation.
  2. You know how to budget and are debt-free.
  3. You pay bills on time – better yet, you pay bills ahead of time.
  4. You have adequate insurance coverage in case of trouble.
  5. You’re saving enough for retirement.

If you didn’t answer ‘yes’ to all of these, don’t worry! Chances are this checklist won’t come up on the first date. But when you have the “money talk” with someone you’ve been seeing for a while, wouldn’t it be great to know that you bring your own financial stability to the relationship? It’s clearly a bonus (remember that stat up there?).

Everyone could use a little help on their way to financial stability and independence. Contact me today, and together we can work on a strategy that could strengthen your peace of mind – and perhaps your love life!

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Travel Insurance: What to Know Before You Go

December 16, 2019

Travel Insurance: What to Know Before You Go

Postcard-worthy sunsets. Fascinating cultures and customs. Exotic people and maybe even a new language to learn – at least enough to order food, pay for souvenirs, and find the nearest bathroom.

Travel can leave us with some amazing memories and lead us to grow simply by being exposed to different ways of seeing the world. It’s also fraught with peril – much of which we don’t consider when daydreaming about our trip. Travel insurance has the potential to provide protection if the daydream turns into a nightmare in a number of ways.

An auto or life insurance policy is designed to provide a limited set of coverages, making the policies fairly easy to understand. Travel insurance, by comparison, can cover a wide range of unrelated risks, making the coverage and its exclusions a bit more difficult to follow. Depending on your travel insurance provider, your travel insurance may cover just a few risks or a wide gamut of potential mishaps.

So how do you know what kind of travel insurance you should purchase? Read on…

Trip Cancellation Insurance
One of the most basic and most commonly available coverage options, trip cancellation insurance provides coverage to reimburse you if you are unable to take your trip due to a number of possible reasons, including sickness or a death in the family. Cancellations for reasons such as a cruise line going bust or your tour operator going out of business are also typically covered. Additionally, if you or a member of your party becomes ill during the trip, trip cancellation insurance may reimburse you for the unused portion of the trip. Some trips you book will allow cancellation with full reimbursement (within a certain timeframe) for any reason, whereas some trips only allow reimbursement for medical or other specific reasons – make sure you check the travel policy for any limitations before you purchase it.

Baggage Insurance
Your travel daydreams probably don’t include lost baggage or theft of personal items while abroad – but it happens to travelers every day. Baggage insurance is another common coverage found bundled with travel insurance that provides protection for your belongings while traveling. If you already have a homeowners insurance or renters insurance policy, it’s likely that you already have this coverage in place. As a caveat, homeowners insurance and renters insurance policies typically limit the coverage for certain types of items, like jewelry, and may only pay a reduced amount for other types of items. Home insurance policies also have a deductible – typically $1,000 or more – that should be considered when deciding if you should purchase baggage insurance with your travel insurance.

Emergency Medical Coverage
Most people don’t know if their health insurance will cover them internationally – it could be that your policy does not protect you outside of the country. Accidents, illness, and other conditions that require medical assistance are border-blind and can happen anywhere, leaving you wondering how to arrange and pay for the medical attention that could be needed by you or your family. Travel health insurance can cover you in these instances and is often available as a stand-alone policy or bundled as part of a travel insurance package.

Accidental Death Coverage
Often bundled as a tag-along coverage with travel health insurance, accidental death coverage provides a limited benefit for accidental death while traveling. If you already have a life insurance policy, accidental death coverage may not be needed – and chances are good that your life insurance policy has fewer limitations and provides a higher death benefit for your named beneficiaries or loved ones.

Other Travel Coverages
A number of other options are often offered as part of travel insurance packages, including missed connection coverage, travel delay coverage, and traveler assistance. Another coverage option to consider is collision and comprehensive coverage for rented cars. Car accidents are among the leading types of mishaps when traveling. Typically, a personal car insurance policy will not cover you for vehicle damage, liability, or medical expenses when traveling abroad.

When you’re ready to cross “See the Seven Wonders of the Modern World” off your bucket list, consider travel insurance. It may provide some relief so you can concentrate on the important things, like making sure you bring the right foreign plug adapter for your hair dryer.

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5 Ways People with Disabilities Can Be Financially Prepared for Care Costs

5 Ways People with Disabilities Can Be Financially Prepared for Care Costs

Access to affordable, complete care can be a challenge for many adults.

If you are someone who is living with a disability, you need to know that you will have access to the care you need now and in the future.You also need to know that you and your family will be able to afford these options. So, how can you do both and give yourself some peace of mind? You can get started by completing these crucial health care and financial planning steps.

Verify Your Medicare Eligibility If you’re approaching your 65th birthday, you should begin researching your Medicare options right now. This way, you can better understand the various Medicare parts and the coverage offered by each and make an informed decision during the next enrollment period. Even if you are not an older adult, you should still research your Medicare eligibility since your disability may still qualify you for coverage before the age of 65. You should also research whether a Medicare Advantage plan is the right choice for you. Aetna and other insurers offer MA plans which can provide additional benefits for dental, vision, hearing, and prescription drugs.

Check for Medicaid Coverages Depending on your income, you may also want to look into your Medicaid eligibility. This program differs from Medicare in that there are no age requirements. Those who are enrolled in Medicaid-sponsored insurance can take advantage of free healthcare services or may only need to pay small premiums each month to have access to care. You do need to meet certain financial requirements to be eligible for Medicaid, however, so this may not be an option for everyone. If it is, though, it can be a major boost to limited incomes.

Research Other Health Options For those living with disabilities who are not Medicare or Medicaid eligible, finding the right health insurance coverage is important for financial security. If you work, you should check with your employer about insurance offerings, since these plans tend to be more affordable. You can also research plans and enroll using the Health Insurance Marketplace but be sure to do so during annual enrollment periods, which tend to run from November to early December. Otherwise, you will need to wait another year to get coverage.

Plan for Long-Term Care Needs One aspect of care that many people forget to plan for is long-term care. This is an important need to consider, especially since the need for long-term care is so prevalent in later life. To make sure you can afford the care you need in the future, you should research insurance options and think about other ways you can plan to cover long-term care expenses, such as putting additional funds into savings or leveraging your home’s value to pay for care. By thinking about your long-term care needs now, you can also research the cost of different types of long-term care, such as assisted living communities and skilled nursing homes.

Consider End-of-Life Expenses Last but certainly not least, you have to think about how your family’s financial needs will be met when you are no longer around. Because thinking about death can be unsettling, many people forget to plan for final expenses. That often leaves loved ones struggling to cover funeral costs and pay any outstanding debts — and all in their time of grief. You can save your family this heartache by planning ahead for expenses after death. At the very least, you should have enough life insurance to pay off major debts and help with burial costs. To provide even more financial peace of mind, you should also look for additional insurance options, like burial plans.

Planning for your future health care costs isn’t just about preserving your access to care. It’s also about preserving your family’s access to the financial resources they need to survive and thrive, even if you can no longer provide those resources. By taking the time and effort to map out your finances in relation to your care needs, you are taking the initiative to fully protect the health and well-being of the people you love, as well as your future self.

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Getting Your Reindeer In a Row

Getting Your Reindeer In a Row

Dasher. Dancer. Prancer. Vixen.

Comet. Cupid. Donner. Blitzen. (And Rudolph.)

The reindeer that pull Santa’s magical sleigh – and a holiday staple roll-call that’s clean, clear, and instantly recognizable. But what if things got so hectic at the North Pole that when it was time to hitch up the reindeer on Christmas Eve, they were all out of order?

Prancer. Cupid. Dasher. Comet. Dancer. Vixen. Blitzen. Donner.

Did you notice that Rudolph was missing the second time around? (He got left at the North Pole due to plain, old forgetfulness and overlooking.)

Since so much can change from one “Happy Holidays!” to the next, your reindeer may not even be in a row at this point. They could be frolicking unattended in a field somewhere! And who knows where your Rudolph is.

We can remedy that. An annual review of your financial strategy is key to keeping you on track to your unique goals. So much can change over the course of a year, and your strategy could need some reorganizing.

1. Are you on track to meet your savings goals? A well-prepared retirement is a worthy goal. Let’s make sure nothing drove you too far off of your goal this year, and if it did, let’s explore what can be done to get you back on track.

2. Do you have the potential for new savings? Did your health improve this year? Did that black mark on your driving record time out? Changes like these have the potential to adjust your life insurance rate, but we’d need to dig in and find out what kinds of savings might be in store for you.

3. Have your coverage needs increased? Marriage, having kids, or buying a home are all instances in which your life insurance coverage needs would increase. Have any of these happened to you over the last year, and have you added the new family members as beneficiaries?

If you haven’t had a chance to review your strategy this year, we can fit one in before Santa shimmies down the chimney. Together we can get you situated for a well-ordered, reindeer-in-a-row attitude for the New Year!

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3 Ways to Give Thanks for Loved Ones

3 Ways to Give Thanks for Loved Ones

Just saying “thanks” without giving a little thanks back tends to lose its charm when we start to lose our first teeth.

When we’re young, it seems like our parents and older siblings are just relieved that we’re learning some manners to offset our little legs swinging wildly off the chair under the dinner table, narrowly missing people’s shins. (Hey, it’s hard to sit still at big family meals when you’re that little!) All the grown up talk about far away jobs or how much you’ve grown wasn’t as stimulating as the tooth that had started to wiggle ever so slightly when you bit into some turkey… But at least you remembered to say thank you when someone passed the cranberry sauce!

As we got older, though, those conversations became easier to participate in as we shared our own stories, watched our extended family grow and mature, and then tried to wrangle our own kids into saying “thank you” when they were given a gift by a relative they hadn’t seen in a year.

The biggest lesson we learn about being thankful as we get older? It’s important to show the people we love how thankful we are for them – not just say it. We learn more about the responsibility we have to take care of the people we are thankful for. And at this time of year, we can give our thanks to them by making sure they are financially prepared if we suddenly aren’t around anymore.

Here are 3 ways you can give thanks for your loved ones:

1. Consider getting life insurance. Replacing lost income, covering funeral expenses, gaining potential tax advantages, having early access to money – these benefits of life insurance will give your loved ones a bit of financial stability and let them know how thankful you were for them. However, many of these benefits can depend on what type of life insurance you have, so taking the time to find the right type and amount of insurance for your particular needs and goals is important. Which leads us to the second way to give thanks…

2. Get the right type and amount of life insurance. Life insurance policies are not “one size fits all,” so investing your energy into this step is a key way to give thanks for your loved ones. Different types of policies have different kinds of coverage, benefits, and uses. Having the right policy with adequate coverage is the key to protecting your loved ones in the event of a traumatic event – not just the loss of life. Adequate life insurance coverage can help keep you and your loved ones afloat in the case of an unexpected disabling injury, or if you’re in need of long term care. Your life with your loved ones isn’t going to be one size fits all, and your life insurance policy won’t be either.

3. List the right beneficiaries on your policy. This question is particularly important if you haven’t looked at or updated your beneficiaries in a while. Why? Because listing the correct beneficiary will help ensure that any insurance payout will get delivered to the them. You may need to review your policy’s beneficiaries if you have recently married or divorced, had kids, or maybe even met with a cousin over the holidays who you’d like to leave a little something to!

If you can’t say that the 3 ways above are how you’re going to give thanks for your loved ones this year, give me a call. I’d like to give my thanks to you by assisting you with a whole new way to say “thank you” – tailored life insurance!

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3 Easy Ways To Save For Retirement (Without Investing)

November 6, 2019

3 Easy Ways To Save For Retirement (Without Investing)

Our retirement years will be here sooner than we think.

Ideally, you’ve been putting away money in your IRA, 401k, or other savings accounts. But are you overlooking ways to save money now so you can free up more for your financial strategy or help build your cash stash for a rainy day?

1. Pay Yourself First.
If you’re making contributions to your 401k plan at work, you’re already paying yourself first. But you can also apply the same principle to saving. (If you open a separate account just for this, it’s easier to do.) If you prefer, you can accomplish the same thing on paper by keeping a ledger. Just be aware that paper makes it easier to cheat (yourself). With a separate account, you can schedule an automatic transfer to make the process painless and fuhgettaboutit.

Here’s how it works. Whenever you get paid, transfer a fixed dollar amount into your special account – before you do anything else. If you don’t pay yourself first, you might guess what will happen. (Be honest.) If you’re like most people, you’ll probably spend it, and if you’re like most people, you might not really know where it went. It’s just gone, like magic.

Paying yourself first helps to avoid the “disappearing money” trick. Hang in there! After a while, as the money starts adding up, you’ll impress yourself with your savings prowess.

2. Got A Bonus From Work? Great! Keep it.
What do you think most people are tempted to do if they get a bonus or a raise? What are YOU most tempted to do if you get a bonus or a raise? Probably spend it. Why? It’s easy to think of 100 things you could use that extra cash for right now. Home repairs or upgrades, a night out on the town, that new handbag you’ve been coveting for months… Maybe your bonus is enough for you to consider trading in your car for a nicer one, or getting that new addition to your house.

Receiving an unexpected windfall is fun. It’s exciting! But here is where some caution is wise. Pause for a moment. If you had everything you needed on Friday and then get a raise on Monday, you’ll still have everything you need, right? Nothing has changed but the calendar. If you hadn’t gotten that bonus, would your life and your current financial strategy still be the same as it was last week? Consider putting (most of) that extra money away for later, and using some of it for fun!

3. Pay Down That Debt.
By now you’ve probably heard a financial guru or two talking about “good” debt and “bad” debt. Debt IS debt, but some types of debt really are worse than others.

Credit cards and any high-interest loans are the first priority when retiring debt – so that you can retire too, someday. Do you really know how much you’re paying in interest each month? Go ahead and look. I’ll wait… Once you know this number, you can’t “unknow” it. But take heart! Use this as a powerful incentive to pay those balances off as fast as you can.

The cost of credit isn’t just the interest. That part is spelled out in black and white on your credit card statement (which you just looked at, right)? The other costs of credit are less obvious. Did you know your credit score affects your insurance rates? Keeping those cards maxed out can cost more than just the interest charges.

Every month you chip away at the balances, you’ll owe less and pay less in interest. (You’ll feel better, too.) And you know what to do with the leftover money since you knocked out that debt. Hint: Save it.

But keep this in mind – life is about balance. It’s okay to treat yourself once in awhile. Just make sure to pay yourself first now, so you can treat yourself later in retirement.

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Headed in the Right Direction: Managing Debt for Millennials

Headed in the Right Direction: Managing Debt for Millennials

Three simple words can strike fear into the heart of any Millennial:

Student.

Loan.

Debt.

The anxiety is not surprising: In 2015, 7 out of 10 college graduates had $30,100 in student debt.

$30 grand? For that you could travel the world. Put a down payment on a house. Buy a car. Even start a new business! But instead of having the freedom to pursue the American Dream in the palm of their hands, there’s a $30,000 ball and chain around Millennials’ feet.

That many young people owing that much money before they even enter the workforce? It’s unbelievable!

Now just imagine adding car payments, house payments, health insurance premiums, and more on top of that student debt. No wonder 57% of Millennials report that paying for essentials alone is a “somewhat-to-very-significant” source of stress!

Now is the time to get ahead of your debt. Not later. You can manage that debt and get out from under it!

So how do you do that? Sometimes improving your current situation involves more than making smarter choices with the money you earn now. Getting out of that debt ditch means finding a way to make more.

There are 2 things you can monetize right now:

  • Your education
  • Your experience

Both have their own challenges. You may not have spent much time in a particular field yet, so not a lot of experience. And what if you’re working a job that has nothing to do with your major? There goes education.

Two speed bumps. One right after the other. But you can still gain momentum in the direction you want your life to go!

How? A solid financial strategy. A goal you can see. A destination for financial independence.

Debts can become overwhelming – remember that stat up there? But with a strategy in mind for the quick and consistent repaying of your loans, so much of that stress and burden could be lifted.

Contact me today. A quick phone call is all we need to help get you rolling in the direction YOU want to go.

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A New Season of Life Insurance

A New Season of Life Insurance

Did it seem like only yesterday that you were welcoming your first child? Time flies when you’re having fun!

How amazing is it to see your children growing and maturing as they prepare to leave your home and begin their college education? At this stage of life, your family’s needs are changing and growing as quickly as your kids are.

A new, really big need? Financing a college tuition. College Board reported that the average 2016-2017 tuition plus room and board for an in-state, 4-year public college was $20,092, and the average private college counterpart cost $45,365.   And that cost is coming at a time when saving for your retirement becomes an even more important and present need.   Life insurance is more important for your family now than ever. As you and your loved ones take new steps – whether that’s winding down into retirement or revving up into adult life – life insurance can help make sure everyone stays on track with their dreams in the event of a sudden death or other unexpected life event.

The proper life insurance policy can help cover expenses including your child’s college tuition and the income replacement for your spouse to continue down their road to retirement. One quick phone call with me is all you need to get the ball rolling. Let’s review your existing policy or get you started on one that can help your family meet their needs – in all seasons of life.

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Top Reasons Why People Buy Term Life Insurance

October 23, 2019

Top Reasons Why People Buy Term Life Insurance

These days, most families are two-income households.

That describes 61.9% of U.S. families as of 2017. If that describes your family (and the odds are good), do you have a strategy in place to cover your financial obligations with just one income if you or your spouse were to unexpectedly pass away?

Wow. That’s a real conversation-opener, isn’t it? It’s not easy to think about what might happen if one income suddenly disappeared. (It might seem like more fun to have a root canal than to think about that.) But having the right coverage “just in case” is worth considering. It’ll give you some reassurance and let you get back to the fun stuff… like not thinking about having a root canal.

If you’re interested in finding out more about Term insurance and how it may help with your family’s financial obligations, read on…

Some Basics about Term Insurance
Many of life’s financial commitments have a set end date. Mortgages are 15 to 30 years. Kids grow up and (eventually) start providing for themselves. Term life insurance may be a great option since you can choose a coverage length that lines up with the length of your ongoing financial commitments. Ideally, the term of the policy will end around the same time those large financial obligations are paid off. Term policies also may be a good choice because in many cases, they may be the most economical solution for getting the protection a family needs.

As great as term policies can be, here are a couple of things to keep in mind: a term policy won’t help cover financial commitments if you or your spouse simply lose your job. And term policies have a set (level) premium during the length of the initial period. Generally, term policies can be continued after the term expires, but at a much higher rate.

The following are some situations where a Term policy may help.

Pay Final Expenses
Funeral and burial costs can be upwards of $10,000. However, many families might not have that amount handy in available cash. Covering basic final expenses can be a real burden, especially if the death of a spouse comes out of the blue. If one income is suddenly gone, it could mean the surviving spouse would need to use credit or liquidate assets to cover final expenses. As you would probably agree, neither of these are attractive options. A term life insurance policy can cover final expenses, leaving one less worry for your family.

Pay Off Debt
The average household in the U.S. is carrying nearly $140,000 in debt. For households with a large mortgage balance, the debt figures could be much higher. Couple that with a median household income of under $60,000, and it’s clear that many families would be in trouble if one income is lost.

Term life insurance can be closely matched to the length of your mortgage, which helps to ensure that your family won’t lose their home at an already difficult time.

But what about car payments, credit card balances, and other debt? These other debt obligations that your family is currently meeting with either one or two incomes can be put to bed with a well-planned term life policy.

Income Protection
Even if you’ve planned for final expenses and purchased enough life insurance coverage to pay off your household debt, life can present many other costs of just… living. If you pass unexpectedly, the bills will keep rolling in for anyone you leave behind – especially if you have young children. Those day-to-day living costs and unexpected expenses can seem to multiply in ways that defy mathematical concepts. (You know – like that school field trip to the aquarium that no one mentioned until the night before.)

But Wait, There’s More
A well-planned term life insurance policy can provide other benefits as well, including living benefits that can help prevent medical expenses from wreaking havoc on your family’s financial plan if you become critically ill. One note about the living benefits policies, though: If the critical and chronic illness features are used, the face value of the policy is reduced. But which might be more prepared to take a financial hit: the face value of the life insurance policy that just helped you cover your medical expenses… or your child’s college fund?

In some cases, policies with built in living benefits may cost more than a standard term policy, but it may still cost less than permanent insurance policies! And because a term policy is in force only during the years when your family needs the most protection, premiums can be lower than for other types of life insurance.

Term life insurance can provide income protection to help keep your family’s financial situation solid, and help things stay as “normal” as they can be after a loss.

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Who Can Be My Life Insurance Beneficiary?

September 25, 2019

Who Can Be My Life Insurance Beneficiary?

Do you have a recipient in mind for the proceeds of your life insurance policy?

Many people have someone in mind before they purchase their policy. This person or entity can be named as your beneficiary. Naming your life insurance beneficiary helps to ensure that the party you choose gets the proceeds of your life insurance policy, even if your will leaves your estate to someone else. If you’ve decided that you want to provide for a special person or organization through your life insurance policy, it’s important that the beneficiary section will do what you expect.

Here are some simple tips that can help point you in the right direction:

Choosing Your Life Insurance Beneficiary
Who you name as your beneficiary is a deeply personal decision, and there’s no right or wrong answer. Here are some areas to consider:

  • Family: Spouses, children, siblings, and parents are all very common choices as life insurance beneficiaries. However, children under the age of 18 are a special case. Life insurance companies won’t pay a death benefit to a minor, so you may want to set up a trust or choose a responsible adult whom you trust with the welfare of your child.
  • Legal guardian: If your life insurance policy does name a minor as your beneficiary, your insurer may require that you designate a legal guardian.
  • Estate: Your estate can also be the beneficiary of a life insurance policy. The proceeds of your life insurance policy would be paid to the executor of your estate. Choosing your estate as a beneficiary also requires that you’ve drafted a last will and testament and that you haven’t named a specific person as a beneficiary on your policy. There may also be tax ramifications and other considerations that can affect this choice, so talk this one over with an expert first.
  • Trusts: You can name a trust as your life insurance beneficiary. However, the trust must exist before the policy goes into force.
  • Charity: Charities can absolutely be named as life insurance beneficiaries.
  • Business / Key Person Life Insurance: In business partnerships, other partners can be a named beneficiary. Businesses also sometimes insure the life of a key employee with the business as the beneficiary.
  • Friends, etc: You can also name a friend as a beneficiary – assuming your friend isn’t a minor.

Note: Contrary to popular belief, you can’t name a pet as your beneficiary — but you can name someone you’d trust to care for your pet. (Sorry, Fluffy.)

Multiple Beneficiaries and Contingent Beneficiaries
You can name multiple beneficiaries for your life insurance policy, but when doing this, it’s better to use percentages rather than fixed dollar amounts. For permanent life insurance policies, like whole life insurance and universal life insurance, the death benefit payout amount can change over time, making percentages a better strategy for multiple beneficiaries.

You can also name contingent beneficiaries. Think of a contingent beneficiary as a back-up beneficiary. In the event that your primary beneficiary passes before you do (or at the same time), the proceeds of your policy would then go to the contingent beneficiary.

Final Thoughts
Avoid using general designations, such as “spouse” or “children” as your beneficiary. Spouses can change, as divorce statistics remind us, and you never know which long-lost “children” might appear if there’s a chance of a payday from your life insurance policy. In the very best case, general designations will cause delays in payment to your intended beneficiaries.

Choosing a life insurance beneficiary isn’t necessarily complicated, but there’s some room for error in certain situations. While the decision is always yours to make, it’s best to discuss your options with your financial professional to help make sure the settlement goes smoothly and your wishes are honored.

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Your Life Insurance Rate & You: How Gender Factors In

Your Life Insurance Rate & You: How Gender Factors In

Men and women pay different rates for life insurance from the get-go. But this isn’t the result of a race to the top where “there can only be one winner!”

As funny as it may be to picture a hyped-up grudge match race between you and a member of the opposite sex – staged in your office, no less! – where the winner earns lower premiums for their entire gender, the difference men and women pay in life insurance rates is based solely on statistics. No matter how hard you make the obstacle course that runs around the water cooler, over the sea of cubicles, or straight through that mysterious spot in the break room that’s always sticky no matter how many times you clean it, you can’t change the stats.

Life insurance rates are determined largely by life expectancy, so the longer you’re projected to live, the lower your rates might be. Statistically, women live longer: a woman is expected to live about 81 years to a man’s expected 76 years. Therefore, if qualifying for life insurance was based on life expectancy alone, a man would pay more every time. (However, it’s important to note that gender is only one consideration while you’re applying for life insurance. Other pressing factors are your age and your overall health.)

Especially with that life expectancy advantage in mind, these stats are particularly troubling: 43% of adult women have no life insurance. And of those who are insured, only about a quarter of them have adequate coverage.

Now throw this stat into the mix: 46% of Americans don’t have any type of life insurance at all. That means 46% of men and women do not have the coverage in place to provide for their loved ones in the event of a sudden tragedy. Nothing to cover final expenses or replace lost income, no inheritance or secure retirement savings left behind… And finding yourself in financial trouble knows no gender.

So whatever kind of chuckle or shudder you may get picturing standing shoulder-to-shoulder with your friend, each of your hands hovering over a buzzer, listening intently as you’re given a riddle you must solve about cover sheets on TPS reports, you can rest easy knowing that you don’t have to battle a member of the opposite sex to decide your life insurance rate fate. Your unique needs do. When you’re ready to work together to build the tailored policy that takes you, your loved ones, and your goals into account, contact me. There are no obstacle courses between you and my help!

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The Cost of Goodbye

September 11, 2019

The Cost of Goodbye

The emotional cost of losing a loved one can’t be quantified, and knowing how to say goodbye can’t be taught so much as learned. It can be a long and difficult road for many.

Offsetting the financial aspect of that struggle can be done. Not through gimmicks or escapism, but through a real, tangible solution: Final expense plans.

A traditional funeral can cost up to $10,000. If that number seems a bit outrageous, look at how quickly some of the basic items and services can add up:

  • Cost of the grave site: $1,000
  • Cost to dig the grave: $600
  • Cost of a casket: $2,300
  • Cost of a grave liner/outer burial container: $1,000
  • Cost of a headstone: $1,500

That’s already $6,400… and says nothing of payment of mortician’s services, use of the funeral home, the fee for the funeral director, the cost of flowers, and more details that one never thinks about until they’re in a position where they need to think about it. These costs will vary by geographic location, but one thing you can count on is that the emotional cost you or your loved ones experience later could be compounded with financial cost that could be avoided with a bit of careful preparation now.

In the face of losing someone you love, finances might be the last thing on your mind. With a solid final expense plan, you can keep it that way.

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Living More with Living Benefits

September 4, 2019

Living More with Living Benefits

“It was, first, a slap in the face to find out that you have cancer. and then it was a kick to the gut to find out that you’re stage 4.”

Elizabeth Martinez Genova had no idea that her terminal cancer diagnosis was coming when she first talked with a friend about Living Benefits life insurance. After delivering the shocking news to her family, she found that the next worry on her mind was of a financial nature.

“How am I going to pay my bills? How am I going to take care of just surviving, even in this short time?”

Watch Elizabeth’s Story to hear in her own words how much of a difference her Living Benefits life insurance policy made and how a little preparation for her future lifted a major financial burden and gave her freedom to bring light into a dark moment.

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What You Need To Know About Permanent Life Insurance

August 28, 2019

What You Need To Know About Permanent Life Insurance

Most people, when they think of life insurance, might think of two types: Term Life Insurance and Whole Life Insurance.

There are two types of policies, but it’s more accurate to think of them as temporary or permanent. It’s kind of like renting an apartment vs. buying a home. When you rent, it’s probably going to be temporary, depending on your situation. However when you buy a house, the feeling is more like you’re settling down and you’ll be there for the long-haul. When you rent, you don’t build value. But when you buy, you can build more equity in your home the longer you own it.

Permanent life insurance can build a cash value, something a term policy can’t do. A term life policy only has monetary value when it pays a death benefit in a covered claim. Temporary and permanent policies also have some types of their own.

For example, term life insurance can include living benefits or critical illness coverage, as well as group term life insurance and key person life insurance, which is sometimes used in businesses. These are all designed to be temporary coverage. Here’s why. The policy might guarantee premiums for 10 years – or as long as 30 years – but after its term has expired, a term policy can become price-prohibitive. For this reason the coverage is, for all practical purposes, considered temporary.

Permanent Life Insurance: Designed to Last a Lifetime

As its name suggests, permanent life insurance is built to last. It’s a common perception that permanent life insurance and whole life insurance are synonymous, but whole life insurance is just one type of permanent life insurance.

At first glance, a permanent life insurance policy can seem more expensive than a term policy, but you’d have to consider the big picture to be fair in comparing the two options. Over the course of a full lifetime, permanent life insurance can be less costly – in part – because term policies become expensive if you require coverage after the initial term has expired. An investment element also helps to build cash value in a permanent life insurance policy, taking pressure off premiums to provide coverage.

If I’ve left you scratching your head over your options, no worries! Understanding the benefits of each type is important, and choosing which policy is best for you is a uniquely personal experience. Contact me, and we’ll review your options to find the right strategy for you and your family.

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When You Don't Have a Roof to Hit

When You Don't Have a Roof to Hit

We’ve all seen the cartoons. The animated patriarch receives a letter in the mail – the dreaded monthly bill.

One look at the amount due – circled in red so it can’t be missed – and he loses it. His face flushes an unnatural shade. Steam shoots out of his ears. His eyes bug right out his head. Then his rage-fueled rocket feet shoot him upward, punching him straight through the roof and into the stratosphere… far, far away from his problems.

Unfortunately, we non-cartoon folk don’t have the same luxury of jetting away from our bills. But we can absolutely still experience the pain and frustration they can bring, especially when we can’t make a payment.

When you go through an unexpected life event like losing your job, becoming disabled, or the sudden passing of a family bread winner, there’s one bill that threatens your family’s well-being above most others: the mortgage payment.

A sudden loss of income threatens the roof over your family’s head, and you’re not alone: 78% of full-time workers are living paycheck-to-paycheck, and 71% of all US workers are already in debt.

If either of those scenarios sounds familiar, what would happen to your home and your family if the income just… stopped? Within a short amount of time, there would be no roof to hit when those bills come in.

There’s a way to help keep a roof over your family’s head and make those mortgage payments: Mortgage Protection Insurance. A tailored policy can help keep your family in their home if something unexpected were to happen to your income or to you.

And talking to someone who knows how to help can make all the difference. We can work together to find the policy that’s right for you – and hopefully keep any cartoonish escape routes from appearing in your ceiling!

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Emergency Fund 101: Protecting and Growing Your Fund

Emergency Fund 101: Protecting and Growing Your Fund

Nearly 60% of Americans report that they don’t have savings to turn to in the event of an emergency.

A measly 41% of Americans surveyed said they had savings to cover the cost of the unexpected. Being blindsided with an emergency could leave anyone who’s unprepared in the awkward and difficult position of asking family or friends for a loan or building up lots of credit card debt. A less stressful and debt-accruing answer to preparing yourself and your loved ones for a financial emergency like an unexpected hospital visit, house and car repairs, or even a sudden loss of employment is an Emergency Fund.

As you begin to save money to build your Emergency Fund, use these 5 tips to protect and grow your “I did not see that coming” stash:

1. Separate your Emergency Fund from your primary spending account. How often does the amount of money in your primary spending account change? Regular daily use, direct deposit, automatic withdrawals, spontaneous splurges – All of this in a single account can make it hard to track the actual amount of emergency spending money you have available. Start a separate account for your Emergency Fund to avoid any questions about whether or not you can afford that new water heater.

2. Know your number. You may hear a lot about making sure that you’re saving for retirement and never missing a life insurance premium. Solid advice. And don’t pause either of those important pieces of your financial plan to build your Emergency Fund. Instead, tack building your Emergency Fund onto your plan. The same way you know what amount you need to retire and what amount you need to pay each month for your life insurance policy, know how much you need to set aside for you and your loved ones to have a comfortable Emergency Fund. A goal of at least $1,000 to 3 months of your income or more is recommended. At least 3 months of income may sound high, but if you experience a sudden loss of income, you’d have at least 3 full months of breathing room to get back on track.

3. Avoid bank fees. These are Emergency Fund Public Enemy No. 1. Putting extra money aside can be challenging enough, but having that money whittled away by bank fees is even worse. Avoid feeling like you’re paying twice for an emergency (once for the emergency itself and second for the fees) by using an account that doesn’t charge you any fees and preferably doesn’t have a minimum account balance requirement. You can find out what you’re in for on your bank’s website or talking to an employee.

4. Do Not Touch (but leave yourself the option). Once you begin setting aside money in your Emergency Fund, the number one rule is: Do Not Touch… Unless it’s an emergency. Best case scenario, that money is just going to be sitting, unused, for a long time. However, just because it’s an “out of sight, out of mind” situation, it doesn’t mean that there aren’t some important details that need to be present for your Emergency Fund account:

  • Funds must be easily liquidated.
  • Amount of funds should be stable.

You definitely don’t want funds to be locked up and worth less than what you thought when you need them. If you revisited an untouched Emergency Fund after 20 years that didn’t have these 2 qualities, you may not be able to get all of the money you need out at once and inflation could leave you wanting. Although these qualities might prevent any significant gain to your fund, you still have the opportunity to make the best of it.

5. Get started immediately. There’s no better way to grow your Emergency Fund than to get started!

So avoid that dreaded phone call to your parents or your children. Don’t apply for another credit card (or two). Start growing and protecting your own Emergency Fund, and give yourself the potential to be prepared for the unexpected.

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Tap the Brakes! Life Insurance and Your Driving Record

July 24, 2019

Tap the Brakes! Life Insurance and Your Driving Record

Oh boy. It happened again: You hit the snooze button one too many times.

After a frenzied dash around your home – one sock on, a toothbrush hanging out of your mouth, and one kid asking why there’s a can of tuna in his lunchbox – you kiss the family goodbye and finally half-dive behind the wheel of your car.

It may seem like the only way to get to work on time is to go just a little over the speed limit. But just a little. Say, maybe 10 miles per hour over. But speeding doesn’t actually get you where you want to go that much faster.

Take this scenario for example: Say there are 100 miles between you and your destination.

  • At the 65 mph speed limit, it would take 92 minutes.
  • At 75 mph (speeding), it would take 80 minutes.

That’s only 12 minutes saved! And factoring in how quickly traffic can negate all time gained or how going faster burns more of your fuel, speeding isn’t really helping. In fact, it’s costing you. And if any of the consequences of speeding earn you a citation, those will definitely cost you when applying for life insurance.

During the life insurance underwriting process, the underwriter will take everything on your Motor Vehicle Report (MVR) into account.

  • Accident reports
  • Traffic citations
  • DUI convictions
  • Vehicular crimes
  • Driving record points

Just like looking at your health history, occupation, and risky hobbies, an underwriter looks at your driving record to determine how risky you will be to insure. Even some violations that you’d consider to be minor can have drastic consequences for your life insurance application. Any indication of reckless and risky behavior is a red flag to an underwriter. The more negative activity on your driving record, the worse your insurance classification will be. And the higher your life insurance rate will likely be.

Another important thing to keep in mind: time plays an important role for your driving history. Depending on which state you live in, an MVR can feature violations from 5-7 years ago. Some violations will seat you in a lower classification for anywhere from 3-5 years after the fact. So if you’ve changed your ways (and made a personal pledge to never hit that snooze button and speed into the office parking lot again), some insurance companies may take that into account. But finding which one will give the most grace as time passes is key to a potentially lower life insurance rate.

No matter what your driving record looks like, working with me gives you an advantage: you have access to numerous providers and life insurance policies, upping your chances for approval and a more affordable rate. It’s not a guarantee for success, but working together is one way to slow down and work on your options for a life insurance policy that will protect you and your loved ones.

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Is This the One Thing Separating You from Bill Gates?

Is This the One Thing Separating You from Bill Gates?

Well, a few billion things probably separate you and me from Bill Gates, but he has a habit that may have contributed to his success in a big way: Bill Gates is a voracious reader.

He reads about 50 books per year. His reason why: “[R]eading is still the main way that I both learn new things and test my understanding.”

On his blog gatesnotes, Gates recommended Hillbilly Elegy by J.D. Vance, the personal story of a man who worked his way out of poverty in Appalachian Ohio and Kentucky into Yale Law School – and casts a light on the cultural divide in our nation. Gates said,

Melinda and I have been working for several years to learn more about how Americans move up from the lowest rungs of the economic ladder (what experts call mobility from poverty). Even though Hillbilly Elegy doesn’t use a lot of data, I came away with new insights into the multifaceted cultural and family dynamics that contribute to poverty.

We all have stories about our unique financial situations and dreams of where we want to go. And none of us want money – or lack thereof – to hold us back.

What things, ideas, or deeply-ingrained habits might be keeping you in the financial situation you’re in? And what can you do to get past them? I have plenty of ideas and strategies that have the potential to make big changes for you.

Contact me today, and together we can review your current financials and work on a strategy to get you where you want to go – including some reading material that can help you in your journey to financial independence.

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