Archive for the ‘Life Insurance’ Category

What is Term Life Insurance

Posted September 29, 2009 by Bernz

Shopping for a life insurance policy can be confusing and frustrating. There are many different types of policies with different rules and privileges. Premiums vary significantly across providers and product types.

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One of the most popular types of life insurance is term life. Term life is straight life insurance without any of the bells and whistles. Whole life, on the other hand, usually carries an investment portion which grows in value and can be cashed out over time. Term life pays the face value of the policy at the time of death of the insured.

Term life insurance has both positives and negatives in comparison to whole life. On the positive side, the premiums are usually significantly lower than whole life premiums because there is no investment portion. Many individuals with term life insurance find that having a separate investment account allows them to have more control over both their insurance and investments. (more…)

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Posted in Estate Planning, Life Insurance | No Comments »

Financial Literacy- Does It Still Work?

Posted March 30, 2009 by Bernz

Financial literacy means being savvy with your cash flows and understanding your financial transactions in order to make better decisions that will protect and increase your wealth. Many feel that financial literacy is no longer useful or relevant in the face of our current economic meltdown. They feel that, no matter what consumers know or do, they will be hurt in this recession.

financialiqHowever, financial literacy is more important than ever. Understanding your financial position and how to navigate through tough economic times will give you a leg up in ensuring your financial security.

The people who will survive and thrive in today’s economy are those who have a handle on their personal finances. They know what they own and what they owe and they know where the cash is coming from and going. Every dollar that comes in has a name- meaning they know exactly where it is going.

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Popularity: 95% [?]

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Posted in 401k, Debt, Estate Planning, Financial Education, Financial Goals, IRA, Index Funds, Investing Basics, Investing Strategies, Investing in Real Estate, Life Insurance, Loans, Mutual Funds, Retirement Planning, Roth IRA, Saving Money, Saving for College, Simple IRA, Stock Market Investing, Tax Reduction, Traditional IRA, Wealth Building | No Comments »

Child Life Insurance- Do You Really Need It?

Posted February 16, 2009 by Bernz

No one wants to think about the death of those close to them, especially their children. However, it is an important part of your overall financial planning to consider it. There are many insurance companies out there that tout the benefits of getting life insurance policies on your children. Many of these policies have bells and whistles that have nothing to do with actually insuring the life of the child. In many cases, these policies are not worth buying.

childlifeinsuranceMost child life insurance is whole life coverage. That means that the term of the policy is indefinite. The child can take the policy with them their whole life. Whole life policies almost always include an investment component as well as an insurance component. That means that the policy builds value over time. Many insurance companies market these features as a way to save for college or other large expenses in the future. There are many better investment vehicles for these purposes, however. The premiums on whole life policies are larger than straight insurance to cover the investment piece.

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Popularity: 27% [?]

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Posted in Estate Planning, Financial Education, Life Insurance, Misc | 1 Comment »