Displaying items by tag: Money
Keep Your Home and have a more Comfortable Retirement
with a Reverse Mortgage
With improved health care, many of us are living longer; longer than we expected. In fact most retired people are outliving their retirement nest egg. Over 50 % of retired people in our country have less the $50,000 in savings! With today’s rising healthcare and prescription medicine costs, rising energy costs and rising property taxes, retired or soon to be retired homeowners should look for financial options that will help them maintain their ability to live independently. While we are living longer, continuing to live at home in a comfortable and familiar environment will be a continuing struggle.
Many Senior homeowners have found that one practical solution is the FHA insured Reverse Mortgage. Through a reverse mortgage, seniors can tap into their home equity that has been built up over the years. What’s more, the borrowers never have to make a payment, or pay the loan off until they permanently move out of their home. A reverse mortgage can be a key financial tool in maintaining homeownership through their retirement years.
To be eligible for a Reverse Mortgage, you must:
Be at least 62 years old (both spouses, if married) Have at least 50% equity in your home (low mortgage balance, or none at all) Live in the property as your primary resident (acceptable properties are single family, 1-4 units, condos, townhomes and manufactured homes.
There are a number of different Reverse Mortgage programs to meet borrower’s individual needs. The different options and benefits can be compared to the senior’s particular circumstance. The Reverse Mortgage program is NOT for everyone. Seniors should speak to trusted advisors, family members or friends about choosing a reverse mortgage. It is an important financial decision, and it is an important financial tool that can help seniors maintain home ownership while enjoying the benefits of the hard earned equity that has built up over the years.
Some of the benefits of a reverse mortgage are:
Eliminates payments if there is an existing mortgage Funds received are tax free There are no income, medical or credit requirements. (even if your home is in foreclosure You always retain ownership of the property There are usually no restrictions on how the funds may be used. Upon the sale of the property, the remaining equity stays with you and your heirs. You can never owe more than the value of your home at the time of repayment, even if the loan balance exceeds the value of the property.
Reverse Mortgages are flexible. You can receive the funds:
in a lump sum, in the case of an existing mortgage payoff or other immediate uses, through a line of credit which you can access whenever the need arises, or regular monthly disbursements to you for as long as you permanently live in the home, or a combination of the above.
A Reverse Mortgage provides access to additional funds through the equity in your home. What’s more, any remaining equity stays with you and your heirs.
The loan works best when the homeowner desires to stay in their home for the foreseeable future. And it is always good policy to seek in-depth information about reverse mortgages from a Reverse Mortgage Specialist who is experienced, someone you can trust, someone willing to meet you personally to provide all the information necessary to make an intelligent decision about this important financial tool.
Mark Newton, CSA
Reverse Mortgage Specialist
Few of us have funds set aside for this endeavor. In addition, the College Board's annual "Trends in College Pricing" reports a rise in tuition costs at public and private institutions for the 2009-2010 school year. According to the report, annual tuition and fees at private four-year colleges rose 4.4 percent to $26,273, and public university costs rose 6.5 percent to $7,020.
Prospective students often don't know where to start. But take heart; Darlene Violet, director of Financial Aid at Brown Mackie College - Akron, Ohio, offers advice on funding your education. "The U.S. Department of Education distributes $96 billion a year in grants, work-study assistance, and low-interest loans," Violet says. "Every student begins the process of seeking financial aid by completing the Free Application for Federal Student Aid form, known as the 'FAFSA.'" Information submitted on the FAFSA form determines the amount a student may receive through a federal Pell Grant, which is based on financial need. The recent economic stimulus program increased Pell Grant funds by $500 per student. Financial aid is available for those who qualify.
Beyond completing the FAFSA, many turn next to student loans. "An education is always a good investment," says Violet, "but many people don't realize the loans must be paid back starting six months after leaving school. I advise students to seek out and apply for scholarships." Wide varieties of organizations offer scholarships, from fraternities and sororities to community groups, foundations, and corporations. Winning candidates receive funds based on a vast spectrum of criteria, including ethnicity and cultural heritage. "Students just don't take the time to find them," Violet continued. "It can be a lot of work."
The Scholarship Committee at Brown Mackie College - Akron hired a group of honor students to help others navigate through the many scholarships available, complete the application forms, and provide feedback on essays written for submission. "This allows students the security to delve deeper into the scholarship world. It's well worth it," Violet says.
Scholarship awards can be as important to the educational institution as they are to the student. Federal guidelines, known as the 90-10 rule, mandate that no more than 90 percent of the funds received by a college can come from Federal loans and grants. A minimum of 10 percent must come from outside sources, including scholarships, private loans, and the students' own financial contributions.
Violet recommends checking additional resources as well. "Many employers will pay or reimburse tuition expenses, sometimes even for immediate family members. And the Veteran's Administration offers benefits to those who have served our country," she says. The Workforce Investment Act offers grants to those who qualify, and many churches offer scholarship opportunities. In addition, the Orphan Foundation of America offers scholarships to students who are wards of the state.
Further savings can come in the form of a temporary tax credit. The American Opportunity Tax Credit, included in the economic stimulus bill signed by President Barack Obama, can be worth as much as $2,500. People who earn $80,000 or less a year (or $160,000 or less for joint filers) can claim this credit on money paid for tuition, certain fees and course materials for higher education in 2009 and 2010. For complete details, visit www.irs.gov.
Once a student enters college, Violet advises making other financial considerations:
Ride public transportation. In addition to saving on fuel and parking fees, public transportation provides time for students to get a head start on assigned reading and homework.
Avoid credit card offers. However tempting the offer seems, credit cards charge interest on purchases and impose fees for late payments.
Work while attending classes. Many students work full- or part-time while earning their degrees. The federal work-study program helps eligible students find employment on campus.
"Taking the time to apply for scholarship funds is a step that can help now while they're in school, and in the future when no bill comes due," Violet says.
Courtesy of ARAcontent
(ARA) - As we head into this holiday season, shoppers will start to plan their holiday gift lists, hit the stores and start shopping. Getting the most for your holiday shopping dollars this year will not only be about sticking to a budget, but managing valuable time to spend on shopping for the holidays.
Bing.com commissioned University of Washington Economist Ali Tarhouni to analyze data on consumer shopping behavior and found the time spent holiday shopping could be more valuable than you might think.
* Research reveals that an average American can expect a $114 savings, or roughly 10 percent savings per transaction in time and material cost this holiday season by reducing the running around typically associated with holiday shopping.
* Shoppers could make an average of 5.4 trips to the mall for holiday shopping this coming season, which is equivalent to an average of $98 for lost working productivity and approximately $16 for gas, according to Tarhouni's research.
* A typical consumer visits an average of five stores, shops for an average of two hours and spends an average of $150 per mall trip during the holiday season, according to a survey by Baker Retail Initiative and Verde Group Research. Conducting research by comparison shopping online before heading into stores or making purchases online can help reduce the amount of time and money spent.
Mary Hunt, personal finance expert and author of "Debt Proof Living," believes it's important to be smart in the way you approach your holiday shopping so you can avoid these hidden costs and be more productive this holiday season.
"This season it is all about value, and time is often a more precious resource than money," says Hunt. "If we consider how valuable each hour of our holiday shopping experience is, consider how much more valuable spending time with loved ones is, or volunteering at a local food bank. Shopping is about efficiency this time of year, and it's about using the tools available to make better purchasing decisions faster."
Hunt offers a few tips to help you make faster and more informed shopping decisions this holiday season:
* Use tools available online: when creating your holiday shopping plan, start online. You can organize your list, set your budget and comparison shop fast and efficiently. Sites like Bing.com offer comprehensive user and expert reviews, and you can choose to shop entirely online, or hit the mall more empowered to find what you want in less time.
* Shop alone. Take the kids to the mall to see the Holiday sights and sounds and enjoy hot chocolate and cinnamon rolls, but shop alone when you are not distracted or pressured. Shopping solo gives you the luxury to compare, contemplate and change your mind.
* Keep organized with an exclusive online shopping e-mail account and keep all receipts. Create an e-mail address that you use exclusively for online shopping. Now it will be a snap to keep all your invoices and receipts together in one place where they can be easily retrieved. Returns are always easiest when you have the receipt. Ask for "gift receipts" that do not show the dollar amounts to give to your recipient just in case the sweater doesn't fit or the color is all wrong. A stack of envelopes, each with the name of a person on your list, is the best way to stay organized.
* Shop early to take advantage of deals and free shipping. If you wait until the last moment you may spend all your savings on overnight shipping. Shop early when you have the luxury of the cheaper and slower - delivery options.
* Get cash back. More online retailers than ever are offering cash back this holiday season. Try Bing cashback for cash rewards on purchases from more than a thousand of your favorite retailers including Walmart, Target, HP, Nordstrom, and eBay.
Bing shopping offers you a single destination to shop and get cashback from more than 1,000 retailers nationwide. You'll reduce your online shopping time with features including search result filters, comprehensive shopping results and opinion ranking.
Bing cashback allows you to set up an account and receive actual cash back on qualifying purchases. The site tells you up front what items will qualify and how much you'll save. Money is deposited into your account and you can ask for a payout 60 days (varies by merchants) after purchases as long as your account total tops $5.
Log on to www.Bing.com/shopping to save time and money this holiday shopping season and earn cash back on your purchases.
Courtesy of ARAcontent
(ARA) - Scam artists are always changing their schemes in an effort to trick consumers into handing over money or personal information. One of the latest scams involves hacking into social networking sites and then targeting specific friends in the victim's account.
For example, a scam artist will gain access to "Susan's" Facebook account. The scammer will send an e-mail message to all of her friends pretending to be Susan and claiming to have been mugged, injured or arrested in a foreign country, and in need of some cash immediately. But in reality, Susan is completely unaware that this message was sent out because she did not send it.
Believing that this message is from Susan, her friends want to help and immediately follow her instructions to wire money through a money transfer service like Western Union. Later they discover that they sent money to a scam artist.
The following are some tips from Western Union to help you avoid becoming a victim of these "emergency" scams through which fraudsters prey on people's emotions:
* If you receive an e-mail or phone call claiming a friend or family member needs cash, take a step back and attempt to independently verify the need. Call the person on their phone, or call a mutual friend and find out if they are aware of the situation.
* Let your friend or family member know that you have received a call or e-mail from them claiming they need help. If it turns out there isn't an emergency situation happening, they will need to report the case to local police and the administrators of their social networking site. Also advise them to change their passwords and install or update an anti-virus and anti-spyware program to help protect their computer from hackers.
* If you did send a money transfer through Western Union, and realize that it was a scam, immediately contact the company at (800) 448-1492. If the transaction has not been picked up, it will be refunded to you. Contact the police if the money has been picked up and file a report about the scam.
* Be aware of questionable situations. Scam scenarios can evolve quickly and the way scammers contact victims changes daily. Another scam similar to the social networking scheme that targets victims' emotional reactions involves phone calls from people pretending to be family members or authority figures who claim to be in need of money for medical assistance or even bail.
Regardless of whether you are contacted online or through some other means, be suspicious of requests to send money to "help a friend or family member out" unless you can absolutely verify the information you've been given.
For more information on other scams or for more tips on how to protect yourself from scams, visit www.WesternUnion.com/fraud. of ARAcontent
Courtesy
(ARA) - In a tough economy, it's only natural to look for ways to cut corners. But trimming auto maintenance expenses isn't worth the risk. Taking proper care of your car steers you on the road to safe driving. It can help to keep more cash in your pocket too.
"Even the most cautious drivers are putting themselves in danger if they're not driving a well-maintained vehicle," says Charles Valinotti, senior vice president with QBE Regional Insurance. "No one wants to be in a less-than-road-worthy vehicle during an emergency."
Most drivers are diligent about addressing major mechanical issues, especially since today's cars have automatic alerts when a problem surfaces. However, many people overlook the basics - like tires - which can quickly outlive their usefulness. In recent surveys, The Rubber Manufacturers Association reported that nearly two out of three drivers do not know how to tell if their tires are bald and only 9 percent of vehicles have four properly inflated tires.
Valinotti warns that all too often windshield wipers go unnoticed until it is too late. "It's usually after a nighttime auto accident where there's bad weather and little visibility, when a driver realizes that they haven't replaced their wiper blades in years," he says. Holding off on an oil change or spark plug replacement is not worth compromising safety either.
In addition to the peace of mind that comes from having reliable tires, windshield wipers, brakes, suspension and steering systems, there are other benefits from proper car maintenance:
* Save yourself from expensive car repairs after an accident that could've been prevented.
* Extend your vehicle's life span and avoiding replacement costs for big-ticket auto parts. Consult your owner's manual to determine how often you should perform certain services on your car. If you take a long road trip or have greater wear and tear on your car, think of making a visit to your auto mechanic ahead of schedule.
* Save money at the pump. If you drive a car with a poorly tuned engine or tires that aren't properly inflated, you could find yourself filling up the gas tank more often. Fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve mileage by as much as 40 percent, according to the U.S. Department of Energy and the U.S. Environment Protection Agency.
* Score some discounts on your auto insurance policy. "We encourage our customers to drive safely and invest in ongoing auto maintenance," Valinotti says. "Our safe driver discount can take up to 10 percent off your premium." Approximately 85 percent of vehicles insured by General Casualty, a QBE Regional Insurance company, get that reward. The safe driver discount is applied automatically and keeps rolling over each year you are accident or violation free.
In between scheduled maintenance checks with a mechanic, drivers should do routine checks on their own, too. It's as simple as referring to the owner's manual for instructions. A little more diligence with car care goes a long way.
Courtesy of ARAcontent
(ARA) - With the holidays fast approaching, it is time to start thinking of practical gift ideas in this tough economy. As the wireless revolution continues to dominate our personal and professional lives, a laptop or netbook is a hot gift for those close to you this holiday season. Netbooks were even included in Amazon's list of top holiday gifts last season and their popularity is only growing.
Laptops and netbooks are not just for college students anymore. They make the perfect gift for the busy person who is always on the go. But how do you know which laptop or netbook is best suited for your loved one? With so many options available, it is important to know the different features of each computer, as well as how the owner will be using it.
"There is a wide variety of laptops and netbooks available today. Purchasing a new laptop can be daunting and overwhelming, especially when it is a holiday gift. Creating a list of 'must haves' is a good way to start your search," says Mark Grace, vice president of consumer business of Absolute Software, a company specializing in computer theft recovery, data protection and IT asset management. "Security is one aspect that is too often overlooked and, with the size of laptops decreasing, that new laptop will be a prime target for thieves."
Absolute Software has developed a list of basic questions to help make choosing a laptop or netbook an easy part of your holiday shopping:
* How will the laptop be used? Laptops are becoming more than just the family computer and are being used for movies, photos, gaming and music. So before purchasing a laptop, figure out what it will be used for most to determine what features it should include.
* What is your budget? The economy is affecting each and every one of us so now, more than ever, it is necessary that you get the most bang for your buck. So before shopping, identify how much you want to spend and what features you can skimp on to stay within your budget.
* Is security software included? With laptops being stolen at a rate of one every 50 seconds, theft recovery is an important aspect of a new laptop purchase. Backed by an elite theft recovery team, software like Computrace LoJack for Laptops by Absolute Software is an easy and inexpensive way to help recover stolen laptops or netbooks and protect the data stored on it.
* How durable is the laptop or netbook? To truly get your money's worth on the purchase of a new laptop or netbook, it needs to last. It is crucial that your new equipment can hold up in a variety of conditions. It should have a long battery life and an exterior tough enough to handle being carted about.
* How much will you be storing on this new device? When purchasing a laptop, think about how much information will be kept on the laptop versus an external hard drive. If the owner is planning to store larger items such as videos or digital photos, choose a laptop with a larger hard drive.
* What accessories will you need? An extra battery for longer use, a discreet laptop bag or an extra power cord could come in handy and will ensure your gift is ready to be used and enjoyed right out of the box.
For more information, visit www.absolute.com. of ARAcontent
(ARA) - Americans may be curbing spending across the board, but many are still willing to lay down their dollars for a certain kind of luxury - the high-tech kind that hangs on the wall of your family room and makes you feel like you're right there on the field at your favorite sporting event.
Even though sales of flat-screen TVs have yo-yoed in the past year and a half, overall, analysts view the industry as healthy, and likely to remain so. In fact, a recent survey by PriceGrabber.com revealed that 20 percent of the men polled consider a flat-screen high-definition TV a necessity rather than a luxury.
In 2009, more than 53 percent of American households have at least one HDTV, according to the Cable & Telecommunications Association for Marketing, the Web site ScreenSleuth.com reports. That's an 18 percent increase over last year, the site points out.
Retailers haven't missed the fact that flat-screen televisions are among the few big-ticket items Americans are still willing to buy. They've responded by lowering prices and offering deals and incentives. These deals, plus wider availability of products and services like designer wall mounts and HDTV programming make it a great time to upgrade your set to a flat screen.
Consider these compelling facts if you're considering purchasing an HDTV:
* Some major discount chains are offering free shipping on flat screens if you purchase online and have the product shipped to a chain location near you. That means if the TV of your choice is out of stock in the store, you can buy it online and pick it up at your local store without spending anything on shipping and delivery.
* Manufacturers have started offering HDTVs with integrated Blu-ray players, so you can enjoy two of today's hottest entertainment experiences in a single product.
* Most major cable companies now offer a variety of high definition channels - including movies and sports - so you can enjoy the full benefit of your HDTV.
* Online coupon Web sites offer coupon codes, discounts and deals on flat screens that will make you feel like you're getting away with something. Finding an online discount is as easy as Googling the words "flat screen coupon codes."
* Some manufacturers are offering extended warranties of five years or more on flat screens. That means your flat screen would likely be under warranty until the technology improves even more and you're ready to upgrade to a new model.
* Increased competition, including a number of new manufacturers, has helped drive flat screen prices down faster than practically any other entertainment technology. Anyone remember how long it took for VCR prices to fall below $500? Or for video game consoles to cost less than $200? By comparison, flat-screen TV prices have fallen quickly and dramatically, with many quality options now costing less than $1,000.
* It's easier and more visually appealing than ever to mount your flat screen on the wall. Clunky, intimidating hardware that held flat screens several inches away from the wall are giving way to sleek designer options like Super Slim Low-Profile Mounts from TV accessory maker Sanus Systems. Capable of supporting up to 65-inch flat screens weighing 150 pounds, the Super Slim mounts emphasize the sleek look of ultra-thin LCD, plasma and LED TVs by placing them less than an inch from the wall. Visit www.sanus.com to learn more.
Courtesy of ARAcontent
(ARA) - Nearly 10 million people in the United States were victims of identity fraud last year and, over the past two years alone, Americans have lost $8.5 billion to online con artists. When online criminals are so convincing, how do you avoid becoming a victim? And how do you know if you've already become a victim of a cybercrime and know where to go for help?
Recently an Oregon woman lost nearly half a million dollars of her family's retirement savings in a cyberscam. Her saga started when she used a genealogy Web site to track down her family history and ended with a cybercriminal stealing information about her and her family members. Her dramatic story is chronicled in a Web film series at www.stophcommerce.com. are relentless when it comes to trying to access your personal information, credit and bank accounts. We call it H*Commerce or hacker commerce," says Pamela Warren, cybercrime strategist at McAfee, the world's largest dedicated security technology company. "The sad news is that consumers sometimes lose hundreds of thousands of dollars or sometimes their life savings to these cybercrooks."
"Criminals
Warren shares best practices and telltale warning signs that you have been the victim of a cybercrime, and what to do about it:
Telltale sign 1:
You find unexplained charges or suspicious activity on one or more of your financial accounts.
What to do:
Contact your financial institutions immediately and report the crime to law enforcement agencies. If you find the transaction was fraudulent, consider placing a fraud alert on your accounts with the three credit reporting agencies.
How to keep it from happening to you:
Cybercriminals are incredibly savvy at creating legitimate looking Web sites, including sties requiring financial information. To be sure you don't fall victim, download a safe search tool, like SiteAdvisor, that will alert you if you're about to click on a dangerous site.
Telltale sign 2:
Your computer suddenly slows down and/or you start seeing numerous pop-up ads.
What to do:
Sudden changes in your computer's performance can be a sign that it's infected with spyware, viruses and other forms of malicious software. Install and update your computer security software.
How to keep it from happening to you:
Make sure the subscription to your security software is current, and you have adequate protection. As cybercriminals evolve their tricks, you can rest assured that you're safe.
Telltale sign 3:
You responded to an e-mail or Web site request for personal information and now think it might have been a scam.
What to do:
It's possible you are now the victim of an online fraud that uses e-mails and Web sites looking like legitimate businesses to solicit personal or account information. Check your financial accounts. If you notice unusual activity, notify the appropriate financial institutions.
How to keep it from happening to you:
Never follow links in e-mails from businesses or people that you do not know.
If you have become the victim of an online scam, you are not alone. Tens of thousands of Americans fall prey to clever cybercriminals each year.
To diagnose your situation if you think you may be a victim of cybercrime, and learn how to stay safe in the future, visit McAfee's Cybercrime Response Unit at McAfee.com/CRU.
The CRU acts as an "online 911" and provides many tips on what to do if you've been scammed, information on the tactics cybercriminals use, online safety tips and resources to report cybercrime to law enforcement and other authorities. You can also speak to live experts who can directly assist you in recovering from an attack.
Courtesy of ARAcontent
(ARA) - They are your vehicle's only connection to the road, yet most of the time your tires are the last thing you think about. Despite being viewed by many drivers as simply round and black, today's tires are more technologically advanced than ever before. As the technology in tires rapidly advances, so do consumers' options to choose the right tires to meet their vehicle needs.
Vehicle manufacturers carefully outfit their cars and trucks with particular tires that best suit each vehicle's purpose and performance. When those original tires wear out and it is time to shop for replacement tires, there are a few important steps you should take.
Know your size
Check the existing sidewalls and write down the numbers you find there, especially your existing tire size. All four tires should be replaced with ones that are the same size, according to the Rubber Manufacturers Association. However, there are times when a vehicle manufacturer requires different sizes for the front and rear axles, so be sure to check your vehicle owner's manual.
Consider driving conditions
An all-season tire would probably be the right choice for a climate that experiences dry and regular wet conditions, along with light to moderate snowfall. Seasonally, winter tires make sense for those who live in areas that regularly get heavy snowfall or extended periods of icing or wintery mix conditions.
Know what you want
Do you want the quiet comfort of a luxury all-season tire? Increased puncture resistance and extreme off-road traction for rock crawling? Or is it all-season performance and increased fuel economy? Thanks to recent technological advances, today's tires can give vehicles an extra edge in all these areas.
Consider cost
You paid a lot for the technological advancements designed into your vehicle, from traction control to stability control or a sport suspension, but your tires are the only things translating those benefits to the road; if they aren't up to the task, you won't get the full benefit from your investment.
Match needs with tires
The outside of a tire can show a lot about its performance attributes. For example, large, aggressive-looking lugs with big spaces in between are generally good for off-road traction. Deep sweeping channels help evacuate water and slush from a tire to enhance traction. Many small "sipes" in a tire help create additional biting edges to enhance all-season traction.
An asymmetrical tread optimizes traction characteristics across the face of the tire, so the outside can optimize cornering grip, while the middle or inside provides stability and traction.
What's on the inside?
Today's tires feature many specialized compounds and high-tech construction techniques that give them performance attributes. Examples include unique materials such as volcanic ash for icy conditions, and reinforcements such as carbon fiber and Kevlar, which can give sidewalls extra toughness, or dampen sounds and vibrations.
The newest generation of technological innovations is helping create tires that can save money at the fuel pump. Goodyear's new Assurance Fuel Max tires use a technology to better link and distribute materials within the tire compound to improve rolling resistance without sacrificing all-season traction or tread life. The result is a fuel-efficient solution that can potentially save drivers 2,600 miles worth of gas over the life of four tires. (2,600 miles based on a 4 percent fuel economy improvement, on 65,000 Mile Tread Life Limited Warranty, as compared to the standard Goodyear Assurance tire tested on P195/65R15 size - 2008 Honda Civic. Actual results may vary based on when tires are replaced, driving and road conditions, and proper tire maintenance.)
For more helpful information on tire technology or advice on selecting the proper tire for cars, light trucks, SUVs and more, visit your local Goodyear retailer or go online to www.goodyeartires.com. of ARAcontent
Courtesy
(ARA) - Even in the best of times, life insurance can offer an extra measure of peace of mind in terms of helping to provide financial security. But the need for life insurance is even more significant during difficult economic times, when jobs are harder to find and dependents are in greater need of financial assistance.
The current high rate of unemployment is causing consumers to re-evaluate the importance of individual life insurance coverage, with many viewing it as an essential component of long-term financial security for their families and loved ones.
"People have been hit hard and aren't sure where to turn," says Mark Hug with Prudential's Individual Life Insurance business. "They see life insurance as a way to help provide stability and financial protection."
Hug notes that a recent report titled Navigating Life Insurance Choices in Challenging Times issued by Prudential Financial, Inc. in September, found recent layoffs made two-thirds of consumers realize they need more insurance than their employers provide. But, 22 percent do not have more coverage beyond what they get at work and 18 percent have no coverage at all, according to the report.
The discrepancy between the coverage people have and the coverage they believe they need seems to boil down to the fact that the choices in life insurance policies can be confusing.
Getting started
The good news is, determining your needs is not as complicated as it may first appear. When selecting a policy, consider several key things, including:
* Calculating how much coverage you need.
* Considering the period of time for which you need coverage to determine if term or permanent insurance is right for you.
* Determining how your needs fit within an overall plan that suits your personal circumstances, your financial priorities and your budget.
Understanding your options
Like its name implies, term life insurance provides coverage for a specified "term" or period of time. It is usually less expensive than whole life or permanent insurance, especially in the early years of the policy, and can be a good option for people who want maximum coverage at minimum cost.
Whole or permanent life insurance provides lifetime coverage and premiums are typically paid for as long as the policy remains in place. In addition to providing a death benefit, permanent policies can potentially accumulate cash value, which can be accessed via loans or withdrawals. Loans and withdrawals will reduce policy cash values and the death benefit and may have tax consequences.
When in doubt, a combination of coverage can be a good approach to cover all your bases. A financial professional or a life insurance agent can play an important role in helping you determine what level of protection you need by evaluating present and future financial responsibilities and income, and identifying the right products to help meet those needs. When it comes to financial security, life insurance offers the kind of guarantee you can take to the bank. Of course, it's also important to note that all guarantees are based on the claims-paying ability of the issuing company. For more information, download a copy of Navigating Life Insurance Choices in Challenging Times.
Courtesy of ARAcontent
