Life Insurance- Protecting Finances and Loved Ones

 

Life Insurance Coverage

Life insurance is also referred to as life assurance or life cover. It provides financial protection for loved ones or named beneficiaries in case you die during the valid period of your policy. Protecting against financial loss that results from an insured’s premature death safeguards beneficiaries from the financial impact of death.

Aspects of Life Insurance

  • A life insurer pays the death benefits in consideration of the insured’s premium payments. Life insurance entails a contract between a life insurance company and the person with insurable interest. The financial risk of untimely death is transferred to the insurer for a specified premium amount.
  • It is important to note that life insurance is not an investment or saving product and unless a claim is validly made or you have permanent life insurance, there is no cash value.
  • You determine how much cover you need as how long you will need it.Premiums can be made on a monthly or annual basis. Your family has peace of mind knowing that in case while you have the policy coverage, they will be paid when a claim is made accordingly. These funds can be used to cover mortgage payments, child-care costs or household bills.

Dependents

If you have a spouse, children or anyone who depends on you for income or financial help, life insurance is an important consideration. If the income you earn as part of a couple or sole breadwinner helps with household costs, the family may find it difficult to pay bills such as rent or mortgage without that money. Learn more about JUNIPER LIFE INSURANCE here.

If you work from home or part- time, you family may struggle to handle the expenses of finding someone that can look after the children if you are no longer around. Any individual who has dependents is advised to take out life insurance.

Debts and Loans

Life insurance can also be essential if you have an outstanding mortgage, loans or debts. It can pay out a cash sum in case you die during the policy term. The money could be used for the purpose of helping to pay debts or assist the family with daily living expenses and child care costs. It can also help with funeral expenses.

Death Benefit

Death benefit is a term that is used for the cash amount that the beneficiaries of the insurer receive from an insurance provider upon the insured’s death. While the insured determines the amount of money, the insurance provider must establish whether there is insurable interest and the insured qualifies for coverage according to underwriting requirements.

Premium

The life insurance company determines the premium amount required to cater for mortality costs. This amount is typically based on actuary statistics. Main determinants of risk include lifestyle, family and personal medical history and the insured individual’s age. As long as the premium is duly paid, the insurer has an obligation to make the death benefit payment.

Cash Value

With permanent life insurance there is a component of cash value. As a savings account, it enables the insured to amass capital for a living benefit. Accumulated capital can be used for any reason when the insured is alive. The insurer also uses it to mitigate the risk.

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Managing Your Personal Finances the Smart Way

 

As a working adult in today’s economy, you will realize that managing personal finances is essential for survival. The cost of living is at an all-time high, there is more to spend on and less ways to make it. If you are not careful, you may end up living from pay check to pay check or worse, in debt! Saving is an essential part of managing personal finances that most people often fail at leading to financial strain in case of emergencies. The following are some of the ways you can improve your personal finances and save more:

Where are you financially

Start by knowing your financial status today. Financial status consists of a couple of factors:

  • How much you owe
  • How much you spend
  • How much you earn
  • How much you have in savings

You may need about a month to capture all the above information. Make sure you get all the credit card payments, bills, purchases and loans in order to determine where you are financially. Once you have a clear picture of your money, you can start making the decisions that will improve your financial status.

Determine your financial goals

It is quite difficult to have a plan if you do not have an end result in mind. You need to determine your monetary goals and develop a plan to meet these goals. Do you want to buy a new house? A new car? Start a business? You need to save up for short term or long term goals. Therefore, list down your needs in terms of urgency in order to avoid financially stressing yourself, buying expensive things that you do not presently need. Add up the costs of everything you need and this becomes your target savings for both long term and short-term needs. This is capital expenditures projection.

Cut back

Once you already know what you need, you should go back to your recorded spending and cut back on all unnecessary things. Unnecessary expenditures include things like magazine subscriptions that you never even read and cable TV that you never watch. Every dollar you cut back on is a dollar towards your goals. Websites like leasequit.com help you terminate your car lease early hence saving you money.

Once you are through cutting back, create a new monthly budget with only necessary expenditures and savings.

Jump start your savings

By now you are itching to start saving. Relax; you have already covered about 50% of the savings. Saving involves a lot of discipline and you might need to start avoiding hanging out with those friends that you often spend a lot of money with just to get your savings going. Here are some tips to jumpstart saving:

  • Open a saving account and set up an automatic savings transfer on a monthly basis.
  • You can also use direct deposit to move money from your salary straight to your savings.
  • Use your workplace’s 401(k) plan. 401(k) is a profit sharing plan offered by employers for employees.
  • Join a retirement benefits scheme.

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Managing Your finances With Technology

Checking your bank account on pay day can be one of the most satisfying feelings of the month, but unfortunately that feeling is often short lived. Once you’ve paid your rent or mortgage, your energy bills and your taxes, you can often be left with very little to spend on anything other than food. But although your smartphone now adds another big bill to your monthly outgoings, it can actually help you keep track of your finances and even save money. Here are a few ways technology can make managing your finances much easier.

Pay the Best Price for Products and Services

One of the best ways to make your money go further is to make sure you’re paying the best price for products and services. Often if you’re buying something from a store in person you could be paying a lot more for it than if you were buying it online. You can now even get apps on your phone like Barcode Scanner that will let you find out whether a product is available cheaper online by just taking a photo of the bar-code. If you can find it online cheaper, you could save even more money by visiting sites like Coupon Follow and Deals Plus to find discount codes that can get you a percentage off the price or even free delivery.

Check Regularly for Promotions

By taking the time to shop around and checking sites regularly for promotions you can really save a lot of money. When you do buy from your favorite stores, booking sites or even casinos take the time to sign up for their newsletter as they will let you know when they’re running sales on their range of clothes, electrical products or DVDs. If you’re a fan of playing casino games, there are even some really lucrative casino promotions to take advantage of on the internet. Casino affiliate site Red8’s regularly run casino promotions on their client’s behalf, ensuring that customers get to enjoy the latest bonuses.

 

Check Energy Savings Opportunities

You can even save money on your energy bills by checking whether you’re on the best tariff from the comfort of your mobile phone. Sites like Choose Energy will compare all of the energy providers in your state and based on your energy usage tell you what the cheapest deal for you is. Although switching energy providers might sound difficult, the website takes the stress out of switching for you and within a few clicks you can be saving hundreds of dollars every year.

View your Bank Account Regularly

Although discount codes, casino promotions and comparison sites can save you a lot of money, the best way of managing your finances is probably to keep an eye on your bank account. Luckily most major banks now have smartphone apps that mean you can check how much money you’ve got 24 hours a day, wherever you are. So whether you want to make sure you have some money saved up for something special or just want to stay out of your overdraft, these banking apps can be a real stress reliever.

              Keep a Sharp Eye on Your Finances With Your Smart Phone