Life Insurance & Its Role in Human Life

Universal Life Insurance Company (Photo credit: Thomas Hawk)
Life insurance – Its role in your life

Needless to say that life insurance plays a pivotal role in a human. There are tons of ways in which one can benefit by availing a proper life insurance plan. The prime benefit that it provides is the guaranteed peace of mind. The foremost reason why people opt for good life insurance plan is to get coverage on their near and dear ones in their absence. It is true that no one likes to think of death when they are fit and healthy but being practical and rational would is certainly wise. One hardly understands what tomorrow holds; therefore getting a good coverage for your children, spouse or parents is indeed beneficial.

Why it is a must thing to have

Imagine what would happen to your child’s education if something happens to you tomorrow. How will your spouse be able to pay for the loans that you have already opted for? Where will they get the money for treatment if required? Well, it’s never too late and it does not require a fortune to get a life insurance plan. A good search over the internet can help you to get an insurance plan that is effective and reasonable in price. The basic thing to remember whilst opting for a n insurance is that today is a better day to procure a plan than tomorrow. This is due to some reasons which are discussed below.

Tomorrow you might not be as healthy as you are today and that would not do any good to the budget of your insurance. There are certain things that an insurance company checks before deciding on the premium that one needs to pay. The health of the applicant is a prime thing that is considered. If the applicant is found to be in a good healthy condition whilst he/she is applying for the insurance then the premium on his insurance plan will definitely be less. The insurance companies also check whether the applicant is a smoker or has a history of disease or things like that. These things are taken into consideration before deciding on the premium amount.

Benefits of Life insurance

• It provides security to your family members. It helps your family members to take care of two huge expenses in the form of mortgage and education. Therefore it guarantees the required peace of mind. 
• It can also help you to manage your finances well. An insurance plan can help you get a waiver on your taxes. 
• It can also be used as collateral for a loan. This will help in accessing additional money to pay for sudden expenses. 

The rates of an insurance plan depends on the following 

• Life expectancy of the insured 
• Term of the insurance. A whole life insurance will definitely cost a bit more than the one meant for a specific period. 
• Family health history of the applicant. 
• Smoking habits of the applicant. 

Author’s bio – Jacob brown has a vast experience in writing articles on insurance and related topics. In this article he has discussed the ways to avail a Life Insurance. He suggests his readers to visit Arc-protect.com for further information

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3 Retirement Decisions You Need Now

Retirement (Photo credit: Tax Credits)There are more people that need financial advice right now than those with airtight plans. The problem is there are too many delegators and not enough do-it-yourself thinkers. How many of us question the moves we must make right now? For those who see future finances as a complex puzzle, by all means seek the opinion of a financial adviser. For all those do-it-yourselfers, start with these three simple questions; 

1. How much do I need to live on each month? 
2. During retirement, if I were to draw x amount from my retirement income, how long would it last? 
3. Do I need a long term care insurance policy? 

Retirement Decision #1

Financial planners suggest pre-retirees save an aggressive 80 percent of pre-retirement income to maintain the current standard of living. Of course, this will vary depending on the lifestyle. During retirement you pay less in taxes, spend less on children and have less of a mortgage burden than you did while working. The way you decide to spend your retirement years will impact how much income you’ll need. Create a smart preplanned budget that details the expenses likely to decrease and the expenses likely to increase. The more detailed your spending habits are, the more accurate retirement picture you will have.

Retirement Decision #2

It’s great that we’re living longer; on the other hand, a longer life expectancy presents a dilemma in developing an airtight retirement plan. How much income will you receive annually during retirement? Take inventory of all retirement sources, including cost-of-living adjustments. For example, social security typically has a cost-of-living increase, yet your company pension probably will not adjust annually. If you own rental property, you will probably adjust the rental income for rent increases.

The biggest question is do you currently have enough money set aside to reach your retirement goals? If not, depending on your age, you will have to make a few sacrifices. Possible solutions include living on less, saving more, working longer past the normal retirement age or moving to a less expensive area to retire.



Retirement Decision #3

Many retirees have traditionally placed the burden of care on their families, yet this has left millions looking at nursing home care. Becoming a caregiver is difficult, and while it may start out as a loving burden, many retirees simply deserve better. Seniors have two basic options: accept the risk of depleting their savings and hope they do not require care or purchase insurance. Long term care insurance allows seniors to live out their remaining lives how they choose – in their own homes, in an assisted living community or upscale nursing home. Estimating what you can pay out-of-pocket is challenging, unless you can see the future. Nursing homes, assisted living and home health care typically cost approximately $100 – 150 per day. If you or your spouse ended up in a nursing facility, how would it impact your retirement income?

These three simple questions can profoundly impact your lifestyle. Sit for a while and rethink your retirement, and evaluate your options.

Author Byline:

Ken Myers as an Expert Advisor on multiple household help issues to many Organizations and groups, and is a mentor for other “Mom-preneurs” seeking guidance. He is a regular contributor of “http://www.gonannies.com/”. You can get in touch with him at k.meyerst20@gmail.com.

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Financial Services Working With Small Business

California Bank & Trust (Photo credit: Majiscup - The Papercup & Sleeve Log)Running a small business is a big job, and choosing the right financial institution to fit your needs is a big decision. California Bank and Trust has an established history spanning more than 50 years. Today, it continues to serve with branch offices throughout the state and a strong online presence. CB&T handles commercial and personal banking, and it specializes in services designed for small business owners. Once you establish a relationship with CB&T, you have online access to real-world business tools. 

The CB&T website provides you with a secure portal to your accounts from anywhere and at anytime. The convenience of online management is an invaluable, time-saving advantage for your small business. Smooth site navigation makes it easy to check balances, transfer funds and inspect loan information. You can pay bills, view checks and order new ones. You always have access to real-time data and total control over all financial aspects of your business. 

CB&T also offers you the ability to deposit checks through its online site. By utilizing its Remote Deposit Capture service, you scan paper checks at your place of business and transfer funds directly to your account. The interface is simple, straightforward and secure, and you can apply it to multiple accounts. It's easy to manage your savings, track your portfolio, and access a variety of smart resources, all through the CB&T website. Your time is one of your most valuable commodities. Banking online with California Bank and Trust is a smart investment in that asset.

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Buy a Fuel Efficient Car or Keep the Used Car?

Automobile (Photo credit: A*A*R*O*N)

The cost of gas these days is driving consumers to avoid purchasing larger cars and choose more fuel-efficient cars, but is this the right move? Many people think only about the rising cost of gas at the pump, and forget about the long-term effects. Trade-in value, driving habits, how much is owed on a car loan; these should all be considered before deciding to purchase a new car.

First, do not to sell a car less than 3 years old. According to the American Automobile Association (AAA) this is the time when a vehicle depreciates the most, losing 40 - 50% of its original value. A car can be used for a few more years, and still retain nearly as much value. Fuel inefficient cars in particular are quickly depreciating in value (8% in the last 6 months on average). Still, trading in the gas-guzzler may not save money. The gas may still be expensive, but it’s better in the long-run to get the most value out of the vehicle while being able to drive it for twice as long. It’s also important to know that the savings may not be immediate. For most, trading in an older car for a compact will cost more right now, but balance out years later.

Here is an example: A consumer trades in a four-year old GMC Yukon, worth $15,726 for a new $21,677 Toyota Prius. The difference is $5,951. If the consumer drives 1,200 miles per month and gas costs $3.80 per gallon (national average), the monthly fuel savings will be $186.97. At this rate, it will take 32 months to pay back the additional cost of the Prius over the trade-in value of the Yukon, and start saving money from the lower fuel price.

Buying a small, fuel-efficient car is an excellent way to combat rising gas prices, but the sticker price is what dents your wallet. The average price of a compact car has increased by $2,532 since 2010. That’s nearly double the average price increase of all other cars. Right now is the worst time to sell an SUV or gas guzzling car, and also the worst time to purchase a compact car. Every situation is different and it may take some time to see the savings, but consumers must weigh all of the factors and compare all of the costs before making a change.

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What Type of Investment Should You Consider When in Retirement?

retirement (Photo credit: 401(K) 2012)You would have assiduously saved sufficient corpus to meet your retirement needs. When in retirement, you should plan properly to convert your savings into income to meet your regular needs.

First prepare a quick budget to ascertain the essentials or must haves that you really need, besides the ‘nice to have’ that you really need. It is recommended that you keep 12-month expenses towards essentials and must haves in easy-to-access accounts such as checking account, money market account, or short term certificate of deposits. This approach will help you meet your regular expenses all through the year.

You may next follow investment in suitable mix of various asset classes keeping in mind your risk profile. This asset allocation policy would ensure that you don’t invest too much of money in risky equity assets. If you have already created sufficient corpus to meet your entire retirement life, you can protect the corpus by allocating larger percentage towards safer asset classes such as bonds.

Ideally you can allocate 60 percent of your overall corpus in bonds and related fixed income instruments with the rest split among equities and other asset classes.

You should also have proper drawdown strategy to meet your retirement needs. For instance, you may first start to withdraw funds for your regular needs from the interest accrued in your bonds and other fixed income instruments such as Certificate of Deposits or money market funds. These would provide predictable income. You can add fluctuating income sources such as dividend yielding stocks by making investments in individual blue-chip stocks and / or income oriented stock mutual funds.

It may be highlighted that your investments in stocks or stock mutual funds should be part of your overall asset allocation towards equities.

If you have large corpus, you can meet almost all your retirement needs from the interest and dividend earned from fixed income instruments and stocks, as indicated above. However if you haven’t built such huge corpus, you can withdraw the additional amount required, if any, from maturing Certificate of Deposits or short term bonds. To meet this requirement, as a better strategy, you may invest about two to four years of your annual expenses in short term Certificate of Deposits and bonds.

Since the above strategies might affect your overall asset allocation across various asset classes, you may review your asset allocation at least once a year and rebalance your portfolio to stay in tune with your asset allocation.

Although not a qualified finance advisor, Allan has been writing about personal finance for over 4 years using knowledge he acquired reading and talking with professionals. Allan particularly enjoys blogging about savings and has written numerous article on the topics. Aside from blogging, Allan is a regular consumer advocate and has reviewed many products from major banks including Ubank, Chase Bank and Ally Bank.

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How to Plan a Business Conference

Sandbox event planning sketch (Photo credit: edmittance)

Business conferences are meant to inform and invigorate a companies team. The conference brings together people, giving them a place to network with other like minded people and build strong business relationships. Choosing a proper conference venue in hand with proper planning and preparation will guarantee your event is a success.

Planning

Preparation is the key to a successful conference. It's important to begin your planning well ahead of time. Starting your planning a year before the event occurs is not unreasonable. On the planning committee should be staff familiar with the purpose of the event. The committee should have an event specialist who can coordinate conference logistics.

Budget

A budget is necessary to stay in line with your desired goals. You do not want to spend to much money on one facet of the event and fall short in funding on other critical components. Specific budget items are venue (hotel, auditorium, etc.), catering, equipment (A/V, computing, podiums, etc.), speakers (fee/honorarium, per diem, travel, lodging, entertainment), marketing, conference materials, and staff.

Conference Venues

Finding good conference venues that provide the necessary staff familiar with events is critical. Hotels and convention center staff are trained and have the experience to provide competent hosting. When comparing venues you can negotiate complete event packages including facilities, catering , equipment rental, and hotel rooms. Easy to manage travel to locations that may be located in downtown or airport locales may afford easy travel to and from the event.

Speakers

Contract with speakers well in advance of the event dates. Obtain samples or summaries of the speakers remarks before hand. Any equipment needs should be arrange well before hand. Arrange travel and accommodation needs with the speaker early.

Conference Registration

Getting people informed about the conference needs to be set up. Create a website with a way to register and inform participants. The website should have a way to register online and through the mail. It should have the capability to allow participants to pay for the event online. Conference details concerning event location and a run down of the conferences events should be included.

There is much to do when organizing a business conference. Planning is key to creating such a large event. Be sure to allow plenty of lead time to organize. For more information on suitable venues visit venuefinder.com.