Guard rails for your retirement savings?

Guard rails for your retirement savings? Why not? The question is how much more can you afford to loose?

Staying in the Home

What can life insurance and disability insurance provide when it comes to your family’s life style? Staying in the home should be a top priority of any financial protection plan. If you die, your family may not want to stay long term in the house you live in or they may. Regardless, they need time to decide and money will buy them time. A death benefit that can pay all, some or even one to two years of mortgage payments should buy them plenty of time to do one of the following:

• Re-finance to a more affordable payment by putting a lump sum down on the mortgage balance.
• Pay off the mortgage completely.
• Have one to two years of payments so that they can put up the home for sale while keeping the bank at bay. After all, you want your family to get the home not the bank.

Disability insurance provides a paycheck while one is temporarily or permanently sick or injured and unable to work. If you are not working your sick pay and savings will dry up quickly. A disability check could mean the difference between staying in your home while you are unemployed and racking up medical bills and being thrown out. Again, the bank does not care.

A simple mortgage protection plan should be part of your long term financial planning.

New blog on Orphan Benefits and your lif

New blog on Orphan Benefits and your life insurance: http://t.co/7mXubCAG

Orphan Benefits

Life insurance pays your loved ones when you die. Tax free. That’s a nice benefit following a tragic event that helps ease or eliminate financial burdens that death brings to a family. What happens if a family with young children loose both parents? A lot of questions and uncertainty come up.

• Who takes care of them and can they afford to?
• Will my children be a financial burden on someone?
• Will there be enough money to raise them?
• Will all of my death benefit from life insurance be used to raise them so that nothing is left over when they are adults?
• Will there be any benefit leftover for their college tuition?

Point being, that aside from the fact that someone else will be raising your children, there is the financial component involved. We want the best for our children, not leave them with little or nothing. Too many times you see where a “charity account” is set up at a local bank because the parents did not plan for the worst.

Thus the life insurance policy with an orphan benefit. That means if mom and dad pass away, then when the kids go to live with a relative or other guardian, they each come with $900 per month per child paycheck. Not only can you know that enough is being provided to feed them, cloth them and provide educational expenses, but also that your death benefit can be stashed away, growing with interest to be used later for things like college when they turn 18.

On top of all that, there is a college benefit they can apply for when they turn 18 which can provide up to $6000 year for four years to be used for higher education.

If you have children or grandchildren, then you need to have an orphan benefit in your life insurance or talking  to your adult children about adding one. Assuming your a grandparent now, then you will most likely be the one to take them in a parent-less situation.

Simplified Issue Life Insurance

 

Simplified Issue Life Insurance means an application that is simple; no cup, no needles and no scales. The insurance company has set a rate on premiums that they are willing to offer the applicant with out full underwriting. In other words, if an applicant were to qualify, they would be able to obtain life insurance without a medical. They simply answer a few questions and as long as they qualify on paper, there’s an almost 100% chance the policy will be issued.

What is the advantage to this type of underwriting? It’s fast and easy and still very affordable.

What is the disadvantage? An applicant could possibly get a lower rate if they are willing to go through full underwriting. Other than that, there is not much of a difference.

Simplified issue policies can come in several flavors of term insurance, whole life and universal life insurance