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Personal Finance From a Biblical Perspective

5 Tips That Can Help You Find High-Quality Life Insurance Coverage

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Many Round Rock-area insurance underwriters offer high-quality life insurance policies that are designed to help you protect your family from the financial risks that occur when a loved one dies unexpectedly.

Here are five tips that can help you choose one of these life insurance policies which suit your needs.

Ask About Death Benefit Options

Most life insurance policies offer death benefit options that can help you defray unexpected funeral costs, unexpected medical expenses and other unexpected costs economically.

Asking insurance agents about these death benefit options is worthwhile because it can help you choose life insurance policies that offer enough coverage to pay for the most important expenses that occur when a loved one dies unexpectedly.

Ask About Your Policy Conversion Options

Many life insurance policies offer provisions that allow policyholders to convert their policies to annuities or other life insurance policies without incurring a penalty.

Asking about these policy conversion options is recommended because it can help you find life insurance policies that offer your family the best long-term value.

Ask About Your Cash Surrender Options

Many life insurance policies also offer provisions that allow policyholders to surrender their life insurance policies in exchange for a lump sum of money.

Asking about these cash surrender options can be useful because it can help you choose life insurance policies that offer the flexibility needed to suit your family’s short-term and long-term needs.

Compare Your Beneficiary Options

Most Round Rock-area insurance underwriters and agents offer several life insurance policies that offer beneficiary options which are easy to customize to meet your needs.

Comparing these beneficiary options is a good idea because it can help you avoid many of the mistakes that can make using life insurance difficult for many policyholders.

Ask About Your Premium Options

Contrary to popular belief, most life insurance policies feature premiums that can be customized to meet your needs. As a result, it is a good idea to ask your insurance underwriter for details about your life insurance premium options.

This is the case because it can help you simplify the process of finding life insurance premiums that fit your budget.

The Texas Department of Insurance offers many useful life insurance checklists that can help you organize your search for life insurance that suits your needs.

Feel free to combine these checklists and tips to help you search for Round Rock-area life insurance policies that suit your needs.

5 Quick Tips to Purchasing the Best Small Business Insurance

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Small business owners have plenty to worry about, and unfortunately, catastrophic events are one of those things.

That’s why all small businesses need insurance. Insurance feels like an unnecessary expense, but it can be the survival lifeline when things get bad. It helps business owners cover accidents at the workplace. It protects a business’ assets if it ever finds itself on the wrong side of a lawsuit and covers any risk associated with the business.

That monthly small fee could cover a significantly higher payout one day. If that day comes, a small business owner will be happy he or she had insurance.

Small Business Insurance

Small Business Insurance: 5 Tips For Choosing The Best

Of course, picking out the best insurance is no easy task. With a myriad of choices and programs out there today, finding the perfect insurance can be like finding a needle in a haystack.

There are countless stories out there of businesses purchasing insurance they think covers them in all situations, then to find out that it doesn’t cover business-interruption, or some other kind of damage.

“Generally speaking, small business owners are not completely aware of the coverage they have or the coverage they need,” Steven Spiro, an independent insurance agent told the New York Times.

So, what needs to be known when purchasing business insurance? Here are two quick items:

  1. What are the legal requirements? Some states require a business carry insurance, just as drivers are required to have auto insurance. Check with a local Small Business Association to see what’s required in a specific state or county.
  2. What type of business do you run? The type of business that an owner runs can determine what type of insurance is required. Also answer how many employees you have and what type of work each of them does. It sounds specific, but knowing this information can help business owners determine which type of insurance is best for that business.

Of course, a main concern about small business insurance is the cost. What is a small business owner to do?

According to a Xero small business guide on business insurance, it pays to shop around.

“Talk to a few brokers to get a feel for the type of coverage available to you and how much it’s likely to cost. If you don’t know which brokers to choose, ask for recommendations from friends and business associates.”

To find good insurance, you’ll have to find a good insurance broker, or salesman.

Independent agents are a good place to start because they tend to work with several insurance companies. And because they are paid on a commission, they’re determined to earn a small business owners’ business. Of course, this can be a little dangerous, because some brokers might play favorites with certain carriers and push a business owner toward a higher priced insurance company.

Once this process wraps up, it’s time to determine the level of coverage and shop around. Here are some tips to remember during that buying process:

  1. Several carriers might offer packages and discounts when buying multiple forms of coverage. Be aware.
  2. Customer service is important. If a business owner ever has a claim, they’ll want to deal with positive customer service.
  3. What kind of reputation does the carrier have? Insurance companies can fold overnight, so go with a company that has a strong reputation.

Picking out insurance can be difficult and cumbersome, but that patience comes in handy in the long run. Doing the proper homework can be a huge benefit down the road.

Why You Need Life Insurance Before Investing

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When people begin to invest money, they’re usually hungry for early results. They may approach investing with the conviction of a recent convert, saving and investing as much money as they can, even to the point of neglecting other needs, such as putting life insurance before investing. This is understandable, and quite natural, particularly if you are either young or relatively new to investing.

In spite of your enthusiasm, it is important to make sure that you have a few basics covered before you begin investing. One of those basics is life insurance.

You’re Not Ready To Invest Unless You’ve Covered The Contingencies

Investment advisers and financial planners commonly recommend that before you begin investing you should have a well-stocked emergency fund. That can include anywhere from 3 to 6 months of living expenses. The purpose of the fund is to make sure that you are protected from any income disruptions or large expenses that might force you to tap your investment portfolio ahead of schedule.

The fund enables you to carry on with the business of life, while keeping your investment portfolio protected from early withdrawals.

In essence, what an emergency fund does is cover a contingency – a temporary loss of income, or the unexpected arrival of a big expense or two. A life insurance policy functions similarly as a contingency plan. It creates a basic survival plan for your family or any other dependents that you have in the event of your death. This is a fundamental need, which means you should have adequate life insurance before investing.

Life Insurance Before Investing

Future Wealth Won’t Take Care Of Your Family If You Die Before You Get Rich

There is sometimes a thought that you don’t need life insurance, since your investment portfolio will eventually grow to the point where you will be effectively self-insured. This notion is especially popular among the young, since the prospect of their own death seems so remote.

The problem with this thinking is that it may be many years before you reach the point of being anything close to being self-insured through your investment portfolio. Let’s say that right now you have $10,000 to invest, but you fully expect it to grow to over $100,000 within the next 10 years. Maybe at that point you will be something close to self-insured, but what happens if something happens to you between now and then? What happens if you die when you only have $20,000 in investments?

Future wealth will not protect your family if something were to happen to you today. That’s the whole purpose of life insurance – as a contingency to take care of your family’s financial needs before you have the money that a large portfolio will provide.

The Cost-Benefit Of Life Insurance Is Much Higher Than An Equivalent Investment

One of the biggest advantages of life insurance is that you can quite literally buy six figures in coverage for just a few hundred dollars per year. This is especially true if you are in your 20s or early 30s. You may be able to buy $250,000 in life insurance for just a few hundred dollars per year.

If you are just starting out as an investor, it will take you many years – even decades – to accumulate that much money.

There may sometimes be the thought to keep your expenses as low as possible in order to maximize the amount of money that you have available to invest. If a large life insurance policy is only going to cost you $500 or $1,000 per year, it won’t be taking much away from your investment efforts.

And the benefit that you will have as a result of paying the relatively small premium will be enormous for your family.

Life Insurance Before Investing – Just In Case Your Investment Plans Don’t Quite Turn Out

It’s natural to be optimistic when it comes to investing. In fact, optimism is virtually essential to a new investor. But it is a sad fact that investment plans don’t always turn out the way we want them to, despite our best efforts.

Stock markets crash, individual investments blowup, and sometimes we need to tap investment portfolios early for unexpected reasons. The point is, investing is never a guarantee.

And just in case it doesn’t turn out as well as you hope, your life insurance policy can back you up with a plan to cover your family in the event of your death.

Life Insurance Should Be Seen As A Form Of Investment Diversification

You’re probably well acquainted with the idea of investment diversification. But not all diversification efforts are neatly contained within an individual portfolio. Some of the best forms of diversification you can have will be outside your portfolio. This can include an emergency fund, fixed income investments (like bank assets), and real estate.

But insurance can also be a form of diversification. As discussed above, it is a fail-safe against your death, at least until the time arrives that you have enough money saved and invested that you no longer need to maintain the policy.

If you can think of life insurance as a financial instrument that complements your investment portfolio, having it will seem more logical. And not having it can seem like an exercise in being penny wise, and pound foolish.

If you are an investor, especially a new one, do you have a credible life insurance policy – just in case? If not, then you need to make sure you pick up some life insurance before investing another cent!

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Researching Health Insurance Policies

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[The following post sharing tips on researching health insurance options is brought to you by Genworth.]

When looking for health insurance, always shop around. Insurance plans can vary greatly from company to company. One might offer a lower deductible, while another offers better coverage. Shopping around can help you to understand your options. Your individual needs will determine which plan works best for you.

When looking around for health insurance try finding a site that lets you compare all of the companies in your area side-by-side. You can then see how each company ranks against the others in each aspect and choose the one that best fits what it is that you need.

If your spouse is on your insurance and they have access to insurance with their employer, you will probably be imposed a surcharge. You might save money by having them get their own insurance – make sure you compare them.

Take advantage of a little-known fact about health insurance: you may be able to get a “free look,” or test-drive, of an insurance plan. When shopping around, be sure to ask if the provider allows this test period, and make sure that you understand any restrictions or requirements for requesting a refund if you are dissatisfied.

Take advantage of preventative care benefits to save money and of course, your health. Most preventative screenings and procedures are covered by health insurance at no charge to the enrollee including vaccinations so stay up to date on everything your policy provides. By doing this now you can save a lot later.

When considering your health insurance options, take a look at a hospital only policy. Such policies do not cover regular doctors visits, but will take care of you in the event of an emergency that lands you in the hospital. The benefit is a lower cost premium, but the trade off is no day to day medical coverage.

When considering health insurance policies, look carefully at which hospitals are utilized in your policy. Many people think about their doctors when choosing a policy, but few consider the hospitals. Making sure that the hospital closest to you is covered, or the hospital at which your doctor practices, can make medical emergencies easier to tend to in the future.

When it comes to health insurance, you really need to research your own state. Insurance can differ state to state, so you want to make sure you understand what is available in your own area.

Long-term care health insurance can help cover the cost of assisted-living facilities for the elderly. It can be expensive or impossible to get if you wait until you need coverage. The time to buy is when you are in your fifties, and it’s best to look for a policy that provides protection against future cost hikes.

One key question to ask when purchasing long term care insurance is the amount of the daily benefit and how the rate will be adjusted over time. Is it a fixed dollar amount or is it adjusted for inflation? How long are the benefits payable? These are key questions which could become critical to your well being at some point.

As was stated in the beginning of the article, it is important that you are educated about health insurance, whether you already have it or are looking to get it. By using the tips given here, you are on the way to getting the best health insurance possible.

What To Look For When Choosing A Life Insurance Policy

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[The following is a guest post discussing things to look for when purchasing life insurance.]

If you have children or others who depend on your income for their survival, you should seriously consider a life insurance policy. This allows those close to you to have additional income in the case of your early death.

It is not only important to have a life insurance policy in place, but it is also necessary to have a sufficient amount of coverage. You should have enough insurance to cover at least five years of your current salary, if you are married. If you have children or many debts, you should have a large enough policy to provide up to ten years worth of your current salary.

When deciding what term to take for your insurance, take a look at what will need to be done with that money. For instance, if your children are newborns, a 25 year term policy will make sure that they are cared for if anything happens to you before they are able to financially take care of themselves.

Life Insurance Policy

If you’re married, you should purchase a policy that is two-in-one. This is a joint policy, versus two separate policies. The premium for a joint policy is often cheaper than the premium for two separate policies. You would not need to change anything about your coverage. You would still have the same benefits, but would be able to decrease the amount you pay.

Most life insurance policies are long term contracts. This means that once you sign the contract, you have a responsibility to make payments toward your policy. Therefore, when you are obtaining life insurance, make sure you have a firm understanding of your needs, what you are receiving and that you will be able to afford your payments. If there is anything you do not understand, do not contract yourself to the policy. Ask questions first.

Understand the types of life insurance available before making a decision on which to purchase. Most insurance policies focus on Term Life or Whole Life and knowing the difference is key. Bear in mind that with both of these types of policies, they can be tailored to your specific needs and situations. Be sure to conduct extensive research before making a decision.

When you are planning on purchasing a life insurance policy, select an independent broker. Independent brokers can generally offer more selection in terms of policy and cost than a broker who works exclusively for a specific insurance company. Company brokers are limited to the products their company sells, and may also be pushed by the company to recommend a particular product.

Insurance companies often have extra fees for customers who pay every month instead of just once a year. You may be able to save a significant amount of money on your life insurance by paying your premiums annually instead of monthly.

Prior to looking for life insurance on your own, check with your employer to see if there is available coverage through them. In many cases, employers can negotiate a rate for their employees and their family members. This can save you a lot of money and give you a great policy as well.

photo credit: Freedigitalphotos.net

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