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One of the biggest wealth transfers in history is about to unfold.

That is, it’s estimated that more than $68 trillion in wealth – involving 45 million households across the U.S. – will be transferred through inheritance in the next 25 years.

Will you be one of them?

If you’re a Millennial or a Gen Zer, chances are you may be in the group of Americans most likely to benefit from this massive transfer.

If so, you’ll need to know how to plan for an anticipated inheritance, even if you’re not sure of the details.

What’s Ahead:

1. Have a rough idea of the amount that you are set to inherit

How To Plan For An Anticipated Inheritance In 9 Steps - 1. Have a rough idea of the amount that you are set to inherit

Source: shurkin_son/Shutterstock.com

Though this seems like a simple step, it often isn’t.

Not all parents or grandparents are open about their personal net worth (it’s a generational thing). And asking how much you can expect to inherit – or, if you’ll be inheriting anything at all – can seem presumptuous at best, and greedy at worst. 

Some parents and grandparents will be open to this question. Some may even provide the information without you asking. But if that’s not your situation, you’ll need to proceed carefully and delicately. 

How do I find out how much I will inherit?

You probably already have an idea of your parents’ approximate net worth, but if you don’t, don’t beat yourself up. After all, it isn’t always that obvious on the surface.

The best way to find out?

Just ask.

If your parents aren’t forthcoming about their finances, you’ll need to step back. That doesn’t mean giving up, however. You can let some time pass, then approach the subject later. Just be sure to frame it in such a way that you’re interested in protecting all they’ve worked so hard to accumulate.

2. Learn what makes up the inheritance

Some estates are very simple, while others can be incredibly complicated. The best scenario is a parent who rents his or her home (no house to sell) and has nearly all wealth sitting in financial assets, like bank and brokerage accounts.

Things get way more complicated when a large share of the estate is held in real estate, and especially investment real estate. More complicated still is business equity.

Collectibles, like jewelry and artwork, can also be problematic. You’ll first need to get a ballpark estimate of the value. But before they can be sold, they may need to be formally appraised. 

Just as important, your parents may prefer to pass real estate, business interests, or collectibles to specific individuals. That may or may not include you, which is something you need to know before you plan to inherit them.

3. Know if there are other beneficiaries

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This is as delicate an issue as requesting the value of your parents’ estate. If you are the sole beneficiary, it’s a non-problem. But if there are siblings, or others your parents may want to distribute assets to, the waters can get a bit muddy.

In a perfect world, your parents will set up an equal distribution for you and your siblings. But real life isn’t always so simple. 

For reasons known or unknown to you, your parents may choose unequal distributions. This can be due to family politics, like one sibling being favored over the others, or one sibling being closer to your parents than others. In some situations, parents may choose to give a larger share to a child who provides for their direct care in their later years. 

There may still be other situations where your parents want to make special provisions for one of your siblings or even a grandchild.

Yes, it can get worse!

But those aren’t even the most complicated beneficiary situations.

Given that divorce is common, and often involves a second set of children, there may be issues and limitations. 

In some extreme situations, parents may disown one or more children, and exclude them from the inheritance. If that might be you, you’ll need to know.

Finally, complicated family situations can result in probate. That’s where the estate has to go before a judge prior to distribution. This can happen because of the nature of the family situation, or because one or more potential beneficiaries (or even an excluded party) challenge the distribution of the estate proceeds.

If that situation seems likely, it’s one that should be discussed with your parents. They may need to set up a trust to ensure each beneficiary gets the intended distribution so the estate can avoid probate.

4. Understand the intended distribution process 

This primarily has to do with the timing of inheritance distributions. While the conventional distribution method is to distribute all beneficiary shares on a common date when the estate is settled, that’s not always the case.

Parents sometimes arrange to have estate assets distributed gradually.

For example: if one or more beneficiaries is considered to be irresponsible with money, the parents may set up a staggered distribution over a period of several years. 

A staggered distribution is often accomplished through a trust. If your parents have set up a trust, either for part or all of the estate, you’ll need to know of its existence, as well as the intended distribution.

Some trusts are even more specific

For example, they may include provisions that will distribute funds based on certain milestones. Common examples include holding distributions until the beneficiary turns 30 (or some other age), or gets married (or divorced, if the marriage is shaky).

Trusts can be amazingly specific, which is why people set them up. That’s also why you’ll need to know any distribution method that will be used. 

Some estates may also have provisions to make staggered distributions based on asset types.

For example: cash-type assets may be distributed early in the estate process. But real estate and business interests may not be distributed until they have been liquidated. 

5. Estimate your personal finances at the anticipated time the inheritance happen

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A big part of how you handle an inheritance will be determined by your own financial situation.

If you already have a sizable personal estate, you may be able to simply fold the inheritance into your existing plan. But if your finances are limited, you may need to be more intentional and figure out what you’re going to do with the inheritance when it arrives (ya know, so you don’t blow it all on a bright red Mustang). 

The point is, only when you have a clear picture of your own finances can you make the best use of an inheritance. And to get the greatest benefit, it can help to improve your finances before you receive the money. The better positioned you will be when the inheritance comes in, the more flexibility you’ll have in choosing where to allocate the money. 

If you’ve not been investing up to this point, you may want to begin before the inheritance comes in. It’s best to get investment experience with a small amount of money, so you don’t risk losing your windfall through poor investment choices.

Read more: Best Investment Accounts For Young Investors

6. Design a plan (aka what to do with the inheritance)

If you already have your own personal financial plan, planning for an inheritance will be much easier. But even if you do, you should have at least a loose plan for what to do with the new money. The worst choice is holding off until the inheritance is received. Without a solid plan, you may quickly draw down the new money, financing a series of wants.

Having a plan for the inheritance will ensure the money will provide for a better future. To learn how to set up a financial plan, check out our article: What Is A Financial Plan And Why Do You Need One?

Decide what your priorities are

The main purpose of a plan is to set up a series of priorities.

For example: if your retirement planning isn’t where you want to be, you can make it a priority to fix that with the inheritance. You can either use the new money to enable you to make larger retirement plan contributions or plan to set up an annuity specifically for retirement.

Take advantage of annuities

One of the advantages of annuities is that they can be used to shore up an adequate retirement plan.

Read more: What Is An Annuity And Should You Consider One?

The investment earnings on annuities accumulate on a tax-deferred basis, like retirement plans. But the major advantage is that there are no limits to your contributions. You can make a single, large lump sum contribution to an annuity and let it grow tax-free until retirement. You can set a date that distributions will begin, which can even cover the rest of your life.

In addition, Dr. Guy Baker, CFP and founder of Wealth Teams Alliance, also points out:

“Annuities are a fixed-income alternative. The opportunity to get a market return with no downside risk can be dramatically better than the income from an investment-grade bond of comparable risk. The amount to put into an annuity should coordinate with the age of the beneficiary and the investment objectives. In general, an indexed annuity can provide significant benefits for no additional risk.”

However, since annuities are complicated instruments themselves, you’ll need time to do research and evaluate the best one to take. That’s best done in advance of receiving an inheritance.

Consider starting your own business

In a different direction, maybe you’ve been dreaming of starting your own business. If you lack the capital to do that up to this point, the inheritance can make it happen.

In the meantime, you can make preliminary plans for the business, and even get it up and running as a side hustle. When the inheritance arrives, you’ll have an established business to grow, rather than starting a new one from the ground up.

Starting a business is always risky, though, so make sure you carefully consider such a big move if/when you do receive an inheritance.

Read more: How To Start Your Own Business – A Complete Step-By-Step Guide

7. Find out if there will be tax consequences

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You’ve undoubtedly heard the saying,

“the only things certain in life are death and taxes.”

Well, guess what? Sometimes the two happen at the same time. 

Officially, they’re called inheritance taxes. Because estates can contain a lot of money, governments view them as rich revenue sources. Just like they tax your income, your home, your utility bills, and even your purchases, there are taxes designed to snatch a part of an inheritance before you receive it. 

There’s good news and bad news here.

Let’s start with the good news…

There is a federal inheritance tax, but the good news is that it only applies to very large estates. 

Under current IRS regulations, estates that transfer from one spouse to another are generally tax exempt. But even when they pass to other beneficiaries, like children and grandchildren, there’s a federal estate tax exemption of $11.7 million, for 2021. 

That means if the total value of the estate (before distribution) doesn’t exceed $11.7 million, there’ll be no federal tax on the inheritance.

Now for the bad news…

18 states impose some type of state-level inheritance tax. And while some of those states match the federal estate exemption, there are no fewer than 13 with lower exemptions.

On the low-end, Massachusetts and Oregon can tax estates as low as $1 million. Rhode Island sets the threshold at $1,595,156.

Not many Americans have a net worth of over $11.7 million. But there are many millions with estates of $1 million or more. Even if you’re not affected by the federal estate tax, you may be subject to it at the state level.

If any of the estate tax thresholds may apply in your situation, whether at the state or federal level, you’ll need to be prepared for this outcome. 

So make sure you estimate for a lower inheritance

The best strategy is to estimate a lower inheritance, based on applicable estate tax rates. Fortunately, the estate will pay the inheritance tax before the money is distributed. But you still need to be prepared for a lower distribution amount.

If your parents are open about your inheritance, you may even be able to discuss the tax consequences with them. That way they’ll be in a position to take action to minimize them before the fact.

8. Decide if you’ll need a financial planner

If you believe your net worth is too small to justify a financial planner right now, you may change your mind when you receive a large inheritance. But you don’t have to wait until the inheritance arrives to at least consult a financial planner. 

If you know the approximate size of your inheritance, paying for a meeting with a financial planner may be money well spent. The financial planner can help you to make decisions to both set up your current finances in anticipation of the inheritance, as well as to make intelligent decisions when it actually comes. 

The financial planner may also provide ideas you may want to convey to your parents. They’re often unaware of strategies that will minimize inheritance taxes, or create a strategic plan for a more successful distribution of the estate.

In addition, if there may be questions surrounding the estate, perhaps involving the children of a previous or subsequent marriage, the financial planner may recommend consulting with an estate attorney.

The more you can do in advance, the less likely it is you’ll be blindsided when the inheritance arrives and the stakes are higher.

Read more: Are Certified Financial Planners Worth The Money?

9. Decide if you’ll need a trust

Source: Alla Aramyan/Shutterstock.com

If you don’t have one now, receiving a large inheritance might make a trust advisable. It may even be completely necessary if the inheritance is particularly large, or if you yourself have children from a previous marriage.

A trust is a way to protect your assets, and to ensure the money is distributed as you wish upon your death. 

Shawn Plummer, CEO of The Annuity Expert, explains further:

“You may need a trust if you want to specify how your assets will be distributed without a probate court getting involved. While a will can achieve a similar purpose, wills have to be authenticated by a probate court and can require more time and money.”

Just as important, a trust has the potential to protect your assets from seizure by creditors, or from litigation. With the larger personal estate the inheritance will create, you may need just that kind of protection. 

And don’t worry, you won’t need to pay an arm and a leg to get these documents drawn up. Trust & Will offers estate planning help with plans starting at just $39. This can help you avoid racking up a high bill with an estate planner.

Summary

You’ve probably known of situations where someone came into a large windfall, only to be broke a few short years later. Unfortunately, it’s not an uncommon outcome.

The sudden arrival of a large amount of money can cause an unprepared recipient to blow what could be a life-changing opportunity. It could have the potential to dramatically improve your finances and your life.

You’ll need a plan to make that happen, and it’s never too early to start drawing one up.

Read more:

Source: moneyunder30.com

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We’ve written many an article about how much Disney World has changed since the start of the pandemic. Luckily, most of Disney’s recent changes are swinging toward making upcoming trips feel like they did before the park temporarily closed in 2020.

However, one offering has been very slow to return, and some frequent Disney World visitors have been not-so-patiently waiting for it: the Disney Dining Plan. While that add-on isn’t back for use quite yet, it is now bookable for Disney vacation packages that include a hotel stay and theme park tickets or a resort-only reservation for visits on or after Jan. 9, 2024.

Related: The best restaurants at Disney World in 2023

The idea of paying for your meals before your Disney World vacation is certainly enticing, but is it convenient — and filling — enough to justify the cost? It’s been a few years since Disney dining plans were on offer, so here’s everything you need to know before you decide to buy for your 2024 trips.

What is the Disney Dining Plan?

SUMMER HULL/THE POINTS GUY

With a Disney dining plan, you can prepay for a specified number of meals and snacks for your Disney World vacation.

How many meals and snacks you’ll get with a dining plan depends on the number of nights of your Disney World hotel stay. For example, if you are staying for three nights, you’ll get three days’ worth of meals and snacks to redeem during your stay.

FOR NO-COST ASSISTANCE WITH PLANNING AND BOOKING YOUR NEXT DISNEY VACATION, CHECK OUT TPG’S DISNEY BOOKING PARTNER, MOUSE COUNSELORS.

In addition to the convenience of prepaying for your meals, the Disney dining plan is flexible. You aren’t required to redeem a set number of meals and snacks each day; you can use them anytime during your stay.

If there is a day when you don’t use all of your credits, you’ll have even more meals and snacks to use the next day. If you have leftover snack credits at the end of your trip, you can stock up on prepackaged treats to take home and fend off the post-Disney blues.

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What is included in a Disney dining plan?

TARAH CHIEFFI/THE POINTS GUY

There are currently two Disney dining plans that you can purchase for your 2024 vacations. Each comes with two meals, one snack and one mug with unlimited soda, water and coffee refills at your Disney hotel. However, one focuses on quick-service dining, and the other includes options for daily table-service meals.

Here is what you’ll get with each package:

Disney Quick-Service Dining Plan

  • Two quick-service meals per night stayed.
  • A snack or nonalcoholic drink per night stayed.
  • One refillable drink mug with unlimited refills at your resort.

Disney Dining Plan

  • One table-service meal per night stayed.
  • One quick-service meal per night stayed.
  • A snack or nonalcoholic drink per night stayed.
  • One refillable drink mug with unlimited refills at your resort.

A “quick-service meal” includes an entree and nonalcoholic beverage at any eligible quick-service dining location, such as Woody’s Lunch Box in Hollywood Studios, Columbia Harbour House in the Magic Kingdom or Capt. Cook’s at Disney’s Polynesian Village Resort. These are essentially the spots where a waiter doesn’t come to your table; instead, you pick your food up from the counter.

For breakfast, a “table-service meal” includes an entree, buffet or family-style meal and a nonalcoholic beverage at any participating table-service restaurant. For brunch, lunch or dinner, you can also order a dessert with your entree at table-service restaurants.

Related: Tips for visiting Disney World in 2023: 18 ways to save money and have more fun

If you have your heart set on a character meal at Cinderella’s Royal Table or a signature dining experience like Topolino’s Terrace at Disney’s Riviera Resort, select restaurants will allow you to redeem two table-service credits for these experiences. However, not all character meals require two credits. Chef Mickey’s at the Contemporary Resort, for example, is just one credit for both breakfast and dinner.

If you purchase a Disney dining plan for a child aged 3 to 9, you must order from the children’s menu at any restaurant that offers one.

Snacks on both plans include single-serve items like popsicles, ice cream bars (including the iconic Mickey ice cream bar), a box of popcorn, a 20-ounce soda, a piece of whole fruit and more. You can also use your snack credits to purchase bags of snacks at your hotel gift shop or other retail locations.

WALT DISNEY WORLD

Participating dining locations should have details on their website regarding which dining plans are accepted and how many credits you’ll need to redeem to dine there. Some fine dining restaurants, such as Takumi-Tei in Epcot and Victoria & Albert’s at the Grand Floridian Resort, do not accept the dining plan.

Keeping track of your credits is also relatively simple. Each time you redeem a credit, you should see your remaining credits printed on the receipt. You can also check on your remaining balance under the “My Plans” section of the My Disney Experience app.

Related: These are the best credit cards to use at Disney

How much does a Disney dining plan cost?

A meal at Disney’s Polynesian Village Resort. SUMMER HULL/THE POINTS GUY

The cost of a Disney dining plan depends on which plan you choose and the length of your stay. Pricing starts at $57 per night for adults and $23 for kids.

Here is a more detailed nightly breakdown of each plan:

Disney Quick-Service Dining Plan

  • Adults: $57.
  • Children age 3 to 9: $24.

Disney Dining Plan

  • Adults: $94.
  • Children age 3 to 9: $30.

Tax is already included when you redeem a credit for a meal or snack, but you will still have to pay out of pocket for tips at table-service restaurants. That will add to the overall cost of the plan, so factor that into the cost if you’re thinking about purchasing the table-service dining plan.

How do you purchase a Disney dining plan?

There are two ways to purchase a Disney dining plan. You can include a dining plan when you purchase your Disney World vacation package online, over the phone or through an authorized Disney vacation planner. Or, you can add it on anytime after you purchase your vacation package up until the day before your arrival.

Is a Disney dining plan worth it?

Now for the fun part – let’s do some math. Before you choose to purchase a Disney dining plan, you want to determine whether the plan’s cost provides more value than if you paid for your meals out of pocket.

Let’s look at how much food you can get — and the cash total — on a typical day with each plan for one adult.

Disney Quick-Service Dining Plan

Lunch at Casey’s Corner in the Magic Kingdom

  • Footlong, Chicago-style hot dog — $14.
  • Fountain beverage — $5.

Dinner at ABC Commissary in Hollywood Studios

  • Shrimp tacos — $12.
  • Glass of chardonnay — $9.

Snack at ice cream cart in the Magic Kingdom

  • Mickey ice cream bar — $6.

Refillable resort mug

  • Average of three soda or coffee refills per day — $12.

Total cash price: $58 plus tax.

Daily cost of Disney Quick-Service Dining Plan: $57.

SUMMER HULL/THE POINTS GUY

Disney Dining Plan

Lunch at Connections Eatery in Epcot

  • Southwestern burger — $14.
  • Vanilla shake — $7.

Dinner at Ohana at the Polynesian Village Resort

  • All-you-care-to-enjoy dinner — $59.
  • Polynesian mai tai — $15.50.

Snack at ice cream cart in Epcot

  • Mickey pretzel — $7.49.

Refillable resort mug

  • Average of three soda or coffee refills per day — $12.

Total cash price: $114.99 plus tax.

Daily cost of Disney Quick-Service Dining Plan: $94.

Enjoy dinner at Disney’s Polynesian with the Dining Plan. SUMMER HULL/THE POINTS GUY

As you can see, it is possible to break even or come out ahead with a Disney dining plan if you maximize the value of your credits by choosing more expensive restaurants, selecting pricier menu items and factoring in the cost of unlimited drink refills at your resort.

For example, ordering alcohol (for adults) or a milkshake (for kids) with your meal will get you more value than ordering a soda; ordering a steak or seafood will probably be a better value than ordering a chicken or vegetable dish.

The real question is whether or not you want that much to eat and drink in a day. If you don’t use all of your credits, you are essentially leaving money on the table. You’ll need to do a little math and plot out how you’d use up all the credits to see if you will come out ahead. Of course, for some people, the opportunity to not worry about food costs while enjoying time in the park is worth the price of the plan.

SUMMER HULL/THE POINTS GUY

Bottom line

Whether or not the Disney dining plan is a good value for you depends on your budget, vacation style, and eating and drinking preferences. This is going to be different for everyone.

Fans of this “all-inclusive” option love that you can truly leave the real world behind and live in the “Disney bubble.” However, Disney dining plans are only worth the monetary cost if you maximize your credits and ensure no Mickey ice cream bar, pretzel or beverage is left behind.

Related reading:

Source: thepointsguy.com

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Image of a relaxing lake -- perfect for an early retirement

For as long as I can remember, I have known that I wasn’t fit for the corporate world.

Like J.D. Roth, the founder of Get Rich Slowly, I am an introvert, not a fan of authority and even less of structure. So even before I graduated college, I had my mind on one big goal: leave the corporate world as soon as possible. I was working for a big IT multinational in business school; those were not the happiest times, but that job allowed me to graduate debt free, with a small nest egg that I immediately invested to buy my first rental property in cash.

I believe real estate is one of the best way to build wealth and make money, since you generate an almost passive income, but it was far from enough to cover my basic living expenses. I started playing with those online savings calculators to see where my savings would take me in 5, 10 or 20 years. It was a revelation.

Do you know that if you make $2,000 and invest 10 percent of your salary at 6 percent for the next 40 years, you will have $400,289 for only $96,000 invested? At a 4 percent withdrawal rate, your nest egg will produce a monthly income of $1,334. Less than the $2,000 you are making today, or the $1,800 you are living on since you are investing 10 percent of your salary, but no small change.

The thing is, I didn’t want to wait for 40 years. Playing with the calculator some more, I found out that if you can live on 25 percent of your salary, to cover your expenses in retirement, you only need to save for 7 years! Living on 25 percent of my salary was a bit of a stretch, so I looked for ways to make more money. I bought a three-bedroom apartment and took in two roommates. I took odd jobs on top of my day job; I was making money tutoring at night and writing for several travel websites on the weekends, catering at weddings and freelancing as a translator. The plan was to retire around age 40, but I was so determined to quit my last job that I considered an alternative: how about leaving the U.K., where I worked, and relocating abroad?

At the time, I was 29 and owned two rentals in France and the U.K. that would cover my expenses in a cheaper country. I had a few investments that could cover the mortgage on the second rental (the first one was paid for) in case of a vacancy. And my freelance income was more than what I made at my day job. It came from half a dozen sources, and the probability of them all drying up at once was slim. I quit my job and took a one way flight to Morocco.

I lived in Casablanca for a year, and started a life of semi-retirement. I would cycle along the oceanfront, study Arabic, spend hours shopping for fresh produce or eating grilled camel at the market, and travel for weeks at a time to get pictures and posts for my travel writing gigs. I loved my time in Morocco but kept thinking about a country I loved even more, Guatemala. I had lived there for three years after business school, and after traveling to 80 countries, it was still one of my favorite. After a short trip there, I knew it would be my next destination. I found a piece of land by a beautiful lake in the northern area of the country, complete with a lovely little house that could become a guest house someday (one of my dreams). I bought it with cash along with with a 90-acre piece of land that I am turning into a residential development.

I have been living there with my boyfriend for almost a year, and after putting quite a bit of cash into house renovations and building a detached room and panoramic terrace, we are living happily on less than $1,000 a month, or $500 each.

Related Content: How to live on less

Here is our budget:

Housing: $0 We bought our property with cash. You can rent a lovely furnished one- or two-bedroom house in Antigua Guatemala or Lake Atitlán, the two favorite retirement spots in the country, for $500 to $700 a month, generally including utilities. For a bigger colonial home, you will have to spend $1,000 to $1,500 per month.

Food: $200 This is pretty high, almost the minimum wage in Guatemala but we like to eat and that includes some imported products we enjoy (like cheese!) and some alcohol. We seldom go out.

Car: $100 We have two old cars that we bought with cash and put about $100 per month in gas.

Electricity: $80 With the house renovations there were drills and tools plugged all day, we occasionally use air conditioning, and pump our water from the lake to cook and shower with an electric pump.

Natural gas: $12 for a 25 lb. container that lasts about a month.

Staff: $300 We have a full time handyman/gardener around the house, who alternates with his girlfriend who comes to clean the house. This is a great perk to living in Guatemala.

Animals: $20 We have a rooster and 10 hens, some turkeys, ducks and roosters. They eat a $20 bag of feed per month, we eat $40 worth of delicious free-range eggs each month. Win-win!

Internet: $80 We spend $40 each. He pays for a data plan on his iPhone, and I pay for a wireless USB modem. It’s expensive, but we are in the middle of nowhere!

Property taxes: $30

Accountant: $20 We own the house and land as an LLC so we need an accountant.

Random: $150 Once in a while we go out, buy something for the house or go over the grocery budget, but that never comes to $150 though, but if something breaks it could. It is quite complicated to get car parts or any parts around here.

That’s a total of $992 or $496 per person.

On top of that, I spend about $3,000 per year or $250 per month on travel. I fly back to France for a month but stay with my family so apart from a $1,000 ticket I don’t spend a lot, my last trip cost about $2,000 so I still have $1,000 to travel somewhere else, maybe the U.S., by the end of the year.

You may have noticed that I don’t mention healthcare. When I go back to France I get my physical from my doctor, and I do not have health insurance here, just a travel insurance included in my credit card that will repatriate me if something serious happened. This year, I only got a root canal in Guatemala that cost $200.

With the cost of a rental, healthcare and travel back to the U.S. once or twice a year, you could live well here on less than $1,000 per person. Go the extreme early retirement route, and you can live on rice and beans for less than $300, housing included.

But is retiring abroad worth it? I wrote a post recently to compare the costs of early and normal retirement in the U.S. versus abroad, where I concluded that you could either live better than you do for the same price, have a bigger home, some staff, a lovely piece of land with a view for the price of a 500-square-foot condo, or be able to retire years earlier by moving to a cheaper country and living by local standards.

For me, Guatemala meets all my requirement. The weather is mild all year long (they call it the land of eternal spring), people are nice and relaxed, the cost of living is very low and you can find most things you may want or need, from imported tech gadgets to U.S. trained doctors, albeit at a cost. I enjoy my month-long European holiday to visit my family and friends. Since I have been living abroad for the past 10 years anyway, I am used to emailing and Skyping the rest of the year. They visit me occasionally, as well. I could live in France on a similar or slightly higher budget but would not get the same quality of life.

Related Content: Retirement strategies

Where you will spend your retirement is a very personal choice, and for many, being near your family will be on the top of your list. Although if your kids are on the West coast and you are on the East coast, you are just as far away as if you had retired under the Guatemalan sun.

Source: getrichslowly.org

Apache is functioning normally

By Contributing Author 6 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 28, 2013.

There’s no doubt we live in the information age. I’ve heard it said that the average American consumes several gigabytes of information a day. With all of this knowledge at our fingertips, it can be difficult to find solutions when everyone is pointing in a different direction.

Learning to invest can be a difficult process for those who haven’t had a formal education. I know this because I haven’t had a formal education in investing, but I have found some great methodologies for getting up to speed quickly. In the beginning, I made several mistakes that I wish I could have avoided such as single stock investing.

By following these three simple tips you’ll be well on your way to wise investing.

Three Tips for Beginners

  1. Meet with the professionals. Look up a few investment brokers in your area. Make a list of three offices to visit. Give them a call and let them know you are new to investing and would like to sit down and have a free lesson on what investments are and how to use them wisely. Most brokers will be willing to do this. Do not invest anything until you have met with these three brokers and have a few good perspectives on growing your money.
  2. Follow biblical principles on investing and finance. Jay Peroni wrote a great article on BibleMoneyMatters.com regarding biblical finance and investing. Biblical principles on diversification, seeking advice, being diligent, and screening your investments will propel you to success.
  3. Take your time and build a solid foundation! Don’t rush into an investment strategy. It is unwise to invest your money into something you don’t fully understand. If you can’t explain to a layperson what you’re investing into and how it works, you should probably hold off investing until you can. Also, don’t begin anything until you put into practice some foundational elements of financial freedom. A strong foundation will ensure your investments are safe from collapse.

Plans fail for lack of counsel, but with many advisers they succeed. -Proverbs 15:22 NIV

If you have the money to obtain a formal education in investments, you might consider signing up. But remember, investing does not require years of training. You’ll learn with time. The key is to be proactive and seek out solid financial advice before diving in. Don’t let the excuse of not having a formal education hinder your investing.

Everyone needs to save for retirement and pursue a sound financial footing. Surround yourself with knowledgeable, caring people and you’ll be on your way to investing with confidence. Investing is a powerful vehicle for building wealth.

The ability to compound your money with time is a mathematical wonder. After you have destroyed your non-mortgage debt, built your fully-funded emergency fund, and obtained the know-how on investing, you are ready for wealth-building.  Are you ready?

This article was written by John Frainee, author at TheChristianDollar.com. His goal is to provide biblical financial principles that encourage people to live healthier lives.

Related Posts

Source: biblemoneymatters.com

Apache is functioning normally

There are a lot of Americans that skip purchasing a life insurance policy, especially once they start to reach their mid-50’s and early 60’s, but this could be an awful mistake.

When looking for life insurance at age 56 one of the greatest impacts on your premium is your health.

Unfortunately, at this age there are many medical conditions that can start to creep up if it hasn’t already started affecting you.

Depending on what type of medical condition you have, your rates may or may not be affected significantly.  There are a lot of people that think if you have any pre-existing condition, you can’t get life insurance. That isn’t true.

Regardless, life insurance is something that everybody should have for their own peace of mind.

What Type of Coverage Should I Get?

Ninety percent of 56 year olds who obtain life insurance typically only need it for 10 to 20 years. This is the case because the purpose of the life insurance is meant to fill in for displaced income.

With this in consideration it is assumed that you will not need insurance after retiring and for that reason you only need a policy for the term of your working career.

Buying cheap term life insurance is the solution for this. This type of insurance is surprisingly affordable, especially considering all of the benefits that come with it.  If you need more extensive or permanent insurance, whole life insurance is most likely for you.

As you can imagine, the biggest difference is whole life insurance is effective for as long as you pay the monthly premiums. This a significant advantage over term policies that expire after their predetermined time.

There are a lot of people that prefer having permanent coverage and don’t have to worry about reapplying for another policy. If you want the comfort of having a whole life policy, go for it, but be warned, you’re probably paying way more for life insurance coverage than you have to.

What are the rates for a 56 year old?

Your rates are going to be based on your age, your health, and much more. We can’t give you exact numbers, but we can give you a rough idea of how much coverage you’ll pay.

For example, let’s say you are a 56 year old man who wants to get a $500,000 insurance plan. You’re going to pay around $1,600 every year for your plan. A woman is going to pay $1,200 for the policy.

Here is some quotes for $250,000 of coverage for someone age 56:

Sex 10 Year 20 Year 30 Year
Male Protective – $42.48/month SBLI – $73.30/month Transamerica – $161.88/month

Female Protective – $32.07/month SBLI – $55.46/month Transamerica – $113.75/month

Keep in mind, these are only ballpark figures for life insurance coverage. There are so many variables, there is no way for us to tell you exact numbers without getting information from you.

What Risk Tables Does a 56 Year Old Operate On?

Pre-existing health conditions are the main reason people in this age group are declined for life insurance. This could be anything from diabetes to heart problems.

There are a lot of life insurance companies that have experience working with high-risk applicants of various conditions. These companies understand the conditions and how they can be controlled, which means they will view applicants for favorably than companies without that experience.

Even if you’ve been turned down for coverage because of your health conditions, there are still several insurance coverage options that you can choose from. Your health won’t prevent you from getting at least a small amount of coverage.

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How much Life Insurance do you need?

Aside from asking what type of policy that should get, this is the next most common question that we receive, “how much life insurance do I need?” and it’s one of the most important calculations you can make in regards to your insurance.

Shopping for life insurance at age 56 is extremely different than shopping for a policy in your 20’s or 30’s. There are many notable differences that are going to impact your life insurance needs. More than likely you don’t have as much debt as you did twenty years ago. One of the main goals of life insurance is to pay off any debt you would leave behind, you might be able to buy a much smaller policy at this stage of life.

Another key difference in a life insurance policy in your mid 50’s is your salary and how many people are relying on your income. Your salary is probably higher than it was when you first bought a life insurance policy many years ago, but that doesn’t necessarily mean that you need a larger insurance plan. If your spouse is still working, and your kids all have jobs of their own, you can consider getting a smaller, cheaper insurance policy.

Getting the Best Rates on Your Life Insurance Policy

Getting life insurance is important for the protection of your family, but it’s also important that it doesn’t break your bank. Even at 56, a life insurance policy can still be more affordable than most applicants assume. The older you are, the more your plan is going to cost, but just because you aren’t as young as you used to be doesn’t mean your policy has to be expensive.

The first way is to focus on your health. Aside from your age (which you can’t change), your health is the next most important factor that impacts your monthly premiums. Sure, you probably aren’t in as good shape as you were twenty years ago, but now is the time to focus on your health.

If you’re carrying any extra weight, it could hurt your monthly rates. The more weight that you’re carrying, the higher your chances of having health problems. The higher your risk for health problems, the higher your rates.

Shedding some of those pounds through a diet and exercise will not only lower the number on your scale, but it will also work wonders for your cholesterol, blood pressure, and much more. Not only is this great for your health, but good for your wallet as well.

Additionally, kicking your bad habits like smoking cigarettes will also save you several hundred dollars on your policy coverage. Smokers pay double on their monthly premiums, sometimes triple, versus a non-smoker.

Whether it is standard term life insurance or a no medical exam policy, the best way to locate the perfect plan is to partner up with an independent agent. Each insurance carrier is very different. Different plans, rates, riders, and much more. Sure, you can look through them all to find the best, or we can bring you 50 companies all at once.

We work with all of the top-rated life insurance companies so that we can shop for you and get the absolute best rates. Life insurance is a long-term investment, and just like any other investment, you want to make the best choice. You should always work with an expert to make your choice.

Source: goodfinancialcents.com

Apache is functioning normally

It’s been some time since I’ve done mortgage Q&A, so without further delay, let’s explore the following question: “Do you need 20% down to buy a house?”

If you chat with anyone older than 50 (maybe 60), they’ll probably tell you that you need to (or should) put 20% down if you want to buy a house.

For them, it’s the normal, or should I say traditional, down payment needed to secure a mortgage.

And while it might be conventional wisdom when it comes to home buying, it’s not necessarily the reality anymore.

In fact, the median down payment is just 12%, per the National Association of Realtors (NAR) 2021 Home Buyer and Seller Generational Trends report. Despite this, a lot of people still seem to think you need 20% down to purchase a home.

You Don’t Need a 20% Down Payment…

typical down payment

A few years back, the NAR 2017 Aspiring Home Buyers Profile report found that 39% of non-owners believed they needed more than 20% for a mortgage down payment on a home purchase.

And 26% assumed they needed to put down 15-20%, while 22% said they needed a down payment of 10-14% in order to buy. None of those answers are true.

A 2020 study from NAR also had a whopping 35% of respondents going with the 16% to 20% down payment tier, easily the number one answer.

In reality, you may not even need a down payment if you take out a certain type of home loan, or receive gift funds for the down payment.

Even if a down payment is required, it’ll be a lot less than 20% in most cases, most likely less than 5%.

Last year, the typical down payment for first-time home buyers was just 7%, while it was 17% for repeat buyers, per NAR.

It’s common for repeat buyers to use the proceeds from their original home to buy a replacement, making it easier to come up with a larger down payment.

Conversely, first-timers often have a tough time coming up with funds because they can’t tap into home equity.

You’ll notice both figures have moved lower over the years, though average down payments have ticked higher recently, perhaps due to home buyer competition in this hot housing market.

20% Down Payments Used to Be the Norm

20 percent down payment

  • Your parents probably put down 20% or more when they bought a house
  • But back then home prices were a lot lower than they are today (and interest rates a lot higher)
  • You might only need to put down 3% or 3.5% when you purchase a property these days
  • But there are still key advantages to putting down at least 20% like no mortgage insurance and a lower interest rate

Back in the day, it was customary to come in with 20% down (or more) when purchasing a property.

But property values were significantly lower those days, and mortgage rates a lot higher.

Times have changed as home prices skyrocketed and mortgage lenders got more competitive (and less risk-averse).

Leading up to the housing crisis seen in the mid-2000s, a zero down mortgage was a common theme. In fact, there were lenders that named themselves after that lack of a down payment…

Of course, we all know what happened next – home prices tanked and low down payment options began to evaporate.

That led to increased FHA loan lending, which requires only 3.5% down if you have at least a 580 FICO score.

And over time, Fannie Mae and Freddie Mac introduced a competing product that allows for loan-to-value ratios (LTVs) as high as 97% (just 3% down).

So we’ve kind of come full circle, though we’re not quite at the zero-down stage just yet.

Though lenders have offered mortgages with just 1% down, such as Quicken, Guaranteed Rate, and United Wholesale Mortgage thanks to the use of grants.

Should You Put Less Than 20% Down on a Home?

median down payment

  • You may not need to put 20% down on a home purchase in many cases
  • But it will cost you more money monthly if you don’t via a higher rate, PMI, and a larger loan amount
  • It may also make your offer less desirable to home sellers if they have competing bids with larger down payments
  • So it can beneficial to put down more, especially in a seller’s market

We’ve already answered the original question. You don’t need a 20% down payment to purchase a home.

In fact, you don’t need any down payment in some cases if you consider a home loan from the VA or USDA, both of which offer 100% financing.

You also don’t need to put down 10% or even 5% thanks to widely available programs from the FHA and Fannie and Freddie.

The median down payment is quite a bit lower, around 12% at last glance, and even lower (6%) for the 22 to 30 age cohort.

This age group also said saving for the down payment was one of the most difficult steps of the home buying process.

Now assuming you can muster a 20% down payment, should you come in with less?

This answer is a bit more elusive because it depends on a variety of factors, which include your household balance sheet and your financial goals.

Perhaps it’s better to frame the question the other way around.

Why You Should Put 20% Down on a House

In short, the less you put down on a home, the more you pay each month via your mortgage payment. This happens for three main reasons:

– Larger loan amount (less down means more financed)
– Higher mortgage rate (rates tend to rise as down payments fall)
– Mortgage insurance (added cost to account for risk)

If you put down less than 20%, you wind up with a bigger loan amount (obviously), a higher mortgage rate (usually) because of pricing adjustments, and you have to pay mortgage insurance to protect the lender.

This means your monthly housing costs go up, but you keep more cash in-hand, or at least not in your house.

Let’s assume the home you want to purchase is selling for $350,000 and you plan to take out a 30-year fixed mortgage. This comparison chart shows us how things might look.

3% Down vs. 20% Down: The Math

$350,000 Home Purchase 3% Down Payment 20% Down Payment
Down payment $10,500 $70,000
Loan amount $339,500 $280,000
Mortgage rate 4.125% 3.875%
Monthly P&I payment $1,645.39 $1,316.66
PMI $125 n/a
Total monthly cost $1,770.39 $1,316.66
Difference +453.73

As you can see from the chart above, the 3% down mortgage payment is roughly $454 more expensive each month thanks to those three things I mentioned.

That higher payment equates to an additional $27,223.80 spent over the course of five years.

Additionally, because the loan balance and mortgage rate are higher, more of your payment goes toward interest every month.

After 60 months, the 3% down mortgage would have a balance of $307,684.69, whereas the 20% down mortgage would be whittled down to $252,738.50.

The tradeoff is basically more money in your pocket versus the home, and the ability to buy more house now in exchange for a higher monthly payment.

This assumes you lack the down payment funds, but can afford the higher payments, which can be a common scenario for young high-earning individuals without significant savings (HENRYs).

At the same time, I’ve argued that it’s possible to buy more house if you put more money down because less income is required.

This assumes income is the problem and not assets, which can result in debt-to-income issues, which are prevalent and often grounds for denial.

Of course, it’s entirely possible for a low-down payment to be voluntary, for a homeowner who wants to park their money elsewhere.

That decision really comes down to how you value your housing investment, and if you think you can do better putting the money in the stock market or some other place.

For those who don’t have that choice, take comfort in the fact that you don’t need a 20% down payment to buy a home, or anywhere close to it.

But you will pay extra for that convenience, and you might have more hurdles to clear, such as convincing a seller to take your offer when another prospective buyer offers to put down 20%.

Alternatively, you could get a gift for a portion of the down payment and get the best of both worlds.

Can You Put More Than 20% Down on a House?

  • You can put as much down as you’d like (or even buy all-cash to avoid the mortgage entirely)
  • There are advantages to putting down more than 20% on a home purchase
  • Such as a lower mortgage rate thanks to fewer pricing adjustments
  • And an even stronger offer if buying a home in a hot market
  • Also a lower monthly payment and much less interest paid

You sure can. It’s generally possible to put down as much as you’d like on your home purchase, though if you put down too much you could run into issues with minimum loan amounts from lenders.

Of course, this probably isn’t going to be an issue in most cases with property values so high these days.

I’ve heard of home buyers putting down 50% just because they are debt-averse, but again, most folks don’t have that type of cash lying around.

The obvious benefit of putting a large down payment on a house is that you’ll have a smaller mortgage balance and pay less interest as a result.

You’ll also enjoy lower monthly payments, which will free up cash for other expenses or investments.

Conversely, you’ll have that much more money locked up in your property, which you’ll only be able to access if you sell or take out another home loan.

When it comes to mortgage rate pricing, it’s possible to obtain a slightly lower interest rate when you put down more than 20%, though it likely won’t be much.

We’re talking .125% to .25% lower depending on the scenario in question, so there are diminishing returns, especially when interest rates are already low.

But if you have bad credit the pricing impact can be greater with a larger down payment, so in those cases it could make sense to put down more than 20%, assuming you’ve got the cash available.

However, once you’re at 65% LTV (35% down payment) the pricing incentives tend to stop, so there wouldn’t be a benefit mortgage rate-wise after that threshold.

In summary, consider how much money you want locked up in your home, what your money could be doing (earning) otherwise, and how much it’ll cost you to put less down.

Lastly, don’t forget home sellers favor those who come in with larger down payments!

Read more: 2021 home buying tips to get the deal done.

Pros of Putting Down 20% on a Home Purchase

– Smaller loan amount
– No mortgage insurance required
– Lower mortgage rate
– Pay less interest over the life of the loan
– Ability to tap equity or take out a HELOC
– Lower closing costs
– Better chance of getting your offer accepted in a hot market
– More lender choice and loan options available

Cons of Putting Down 20% on a Home Purchase

– Requires a lot more money up front
– May make you house poor (little leftover for repairs/maintenance)
– Money tied up in the home that could lose value (and thus access to it)
– Could invest that money elsewhere for a better return
– Inflation makes dollars worth less over time
– Difference in monthly payment may not be all that substantial

Source: thetruthaboutmortgage.com

Apache is functioning normally

One of the trickiest aspects of homeownership is unloading an existing property while acquiring a replacement.

Aside from being stressful, it can also be difficult it not impossible thanks to financing constraints and unwanted contingencies, which a home seller likely won’t accept in a hot market.

Unfortunately for those in this predicament, real estate is red hot at the moment, thanks to a lack of inventory and record low mortgage rates.

This means contingent offers, where you must sell before you commit to buy, aren’t likely to be accepted. And worse yet, even an offer that requires a mortgage could be denied in favor of an all-cash offer.

Enter “Knock Home Swap,” which as the name implies, looks to solve this common conundrum by giving the concurrent home buyer/seller some helpful tools to compete.

How Knock Home Swap Works

how knock works

  • First you get pre-approved for a mortgage with Knock Lending LLC
  • This allows you to make offers on a replacement home with down payment assistance included
  • Once you find the right home you can move in and make just the new mortgage payment
  • In the meantime, your old home will be prepped, listed, and sold while they cover monthly mortgage payments

We’ve heard of home swapping before, with it being a common feature with popular iBuyers.

For example, Opendoor, HomeLight, Reali, and Offerpad all offer trade-in programs where you can sell them your home and buy one from them at the same time.

But unlike an iBuyer, Knock doesn’t purchase your old home from you—instead, it’s sold on the open market via a licensed real estate agent. Ideally for a much higher price.

To close the buy/sell gap, they integrate a “competitive mortgage,” along with an interest-free bridge loan (similar to the one Compass offers) that covers the down payment on the new home, along with mortgage payments on the old home.

You can also claim up to $25,000 for “home prep and repairs” on the old property so it sells quickly and for top dollar, similar to the service provided by Curbio.

So it’s almost like Knock combined several different fintech offerings into one to make the home selling, buying, renovating, and mortgage financing process one smooth transaction.

In exchange for all these services, Knock charges a 1.25% convenience fee when you close on your new home, which can be rolled into the mortgage if you wish.

Once your old home sells, you pay back Knock for any monies advanced, such as down payment assistance, mortgage payments, and home preparation costs.

Speaking of, they’ll advance up to six mortgage payments on your old home, $25,000 in home renovation costs, and up to 5% down payment on the new purchase.

Which Homes Qualify for Knock Home Swap?

  • Property must be located in their service area (new markets launching soon)
  • Must be single-family residence, condo, or townhome that is eligible for traditional home loan financing
  • Title must be clear and held by seller
  • Must be owner-occupied or vacant (no tenants)
  • Knock must value home at $150k or higher (or combined value of old/new homes must be at least $350,000-$400,000)

At the moment, Knock Home Swap is live in a limited number of cities, mostly located in Florida and nearby states.

Those cities include Atlanta, Austin, Charlotte, Dallas-Fort Worth, Fort Lauderdale, Houston, Jacksonville, Orlando, Miami, Phoenix, Raleigh-Durham, San Antonio, Tampa, and West Palm Beach.

Several more markets are expected to launch this year and in 2021, so stay tuned.

It should be noted that both homes must be in those markets in order to qualify. Additionally, the property cannot be in an age-restricted community, nor can it be a distressed sale or bank-owned.

They also won’t go for homes with a solar lease, unpermitted additions, or significant foundation or water damage.

It is available exclusively through local broker and real estate agent partners who have been trained as Knock Certified Agents.

Why Use Knock Home Swap?

why use knock

  • You can buy a new home before selling your old home
  • You can get down payment assistance (up to 5%) for new home purchase
  • They provide the home loan and bridge financing that pays old mortgage before you sell
  • Can get up to $25,000 in home renovation costs fronted to sell your home for top dollar
  • Fee is only 1.25% plus standard real estate commissions and closing costs

There are several reasons why an existing homeowner might consider using a service like Knock Home Swap.

For one, it can be difficult to buy and sell a home at the same time because contingencies are often frowned upon.

So again, if the market is hot, or a particular property you have your eye on is popular with other buyers, the seller likely won’t accept a contingent offer.

Additionally, there can be complications when trying to juggle two mortgages at once, especially if affordability is already stretched.

There’s also the sheer timing of things when selling one property and acquiring another – will you need a leaseback before you move into the new home?

With Knock Home Swap, you can get the ball rolling on your new home and concurrently renovate and prep your old home to list, without worrying about where you’re going to live.

And you aren’t selling your home at a basement price to an iBuyer – it’s sold on the open market after suggested repairs are made, meaning it should go for a decent price.

Additionally, there’s more certainty overall if one company has approved your mortgage and is covering the old one while your former property sells.

In terms of gotchas, they do charge a fee of 1.25% for the service, which while not free, seems reasonable. I believe it’s based on the new home sales price.

Of course, they are also originating your mortgage and presumably taking full real estate agent commission on both the new home and the old home.

This could mean a standard fee of 2.5% to 3%, which might be more expensive than what other discount real estate brokerages charge.

Still, you seem to get a lot of good value out of it, and if the repairs they suggest result in a higher sales price for your home, it could cover the fees and then some.

Knock Lock and Shop

In early October 2022, the company unveiled a new solution known as “Lock and Shop,” which is basically a mortgage pre-lock option.

It allows prospective home buyers to lock an interest rate while shopping for a property to buy.

If rates go up during that time, they will enjoy their lower, locked interest rate regardless.

If rates happen to go down, they might receive the option of a float-down to capture some of that improvement.

The rate lock periods are being offered in 60, 75, 90, and 120-day increments, with longer lock periods resulting in higher interest rates. And vice versa.

The Lock and Shop feature can be used in conjunction with Knock Home Swap and Knock GO (Guaranteed Offer), which allows first-time home buyers to compete with all-cash buyers.

Knock also recently launched an interest-free equity advance loan that can be used to buy down your mortgage rate and/or increase your down payment to lower monthly mortgage payments.

It can also be used to cover the cost of a rate lock extension via the Lock and Shop program.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Determining what type of life insurance to purchase at age 52 calls for several factors that may otherwise not be considered at any other age.  At age 52, considerations that may not otherwise be a factor start to come into play.

For example, a 52 year old may start to think about the unexpected health scenarios and whether or not their families will be cared for in the event of one.

It is never too late or early to buy a life insurance policy, however age 52 could be the sweet spot as there is still a good chance that you are mostly healthy and can capitalize on a low rate.

Regardless, it is something that should definitely happen as it is not a pleasant thought leaving your family unattended to financially.

If you’re past your 50s, you may think you can skip out on the life insurance plans. More than likely, you still have a mortgage, credit card bills, car payments, and several other debts that would be passed on to your family.

Every year we hear of families that are struggling to pay bills that were left behind by a family member because they didn’t have insurance coverage as they were getting closer to retirement. It’s easy to see why life insurance is still an important purchase life insurance at age 52.

Is Whole or Term Life Insurance Best at Age 52?

When considering life insurance, there are always multiple options to choose from. Perhaps two of the best options to make a selection from at this stage in life are either whole life coverage or cheap term life insurance coverage. Term life insurance is one of the most sought after types of insurance as it is not only inexpensive but it allows for a decent amount of flexibility in coverage. The coverage on this policy expires at the end of the term, depending on what length you have selected.

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Whole life insurance is slightly different from that of term life insurance. Make your premium payments under whole life insurance, you are insured. Additionally, the policy starts to accumulate value over time and is actually looked at as an asset. This means that you can borrow from it in certain cases, almost making it a type of investment.   For anyone that doesn’t want to worry about losing coverage at the end of a term, these whole life plans are an excellent option. Because you will never lose the insurance coverage, you’re going to pay more for these types of plan.

Determining which type of insurance to use is mainly dependent on what your needs are at a 52 year old. The insurance provider is always another important decision to make. If you are not clear on what type to buy or which insurance provider to use, it is never a bad idea to seek the guidance of an experienced insurance provider.

We know that buying the perfect life insurance coverage can be difficult. Because it’s so important that you make a great choice for your life insurance needs, it’s vital that you work with an educated insurance agent.

The rates for term life insurance vary depending on how much insurance you actually need. Starting at $250,000, the rate that you will pay starts at $16.08. For $200,000 of coverage, the rate jumps up to $32.20. For $500,000, the rates will start at $55.32. The rates are for those that are considered healthy adults. This would include those who lead a healthy lifestyle, have no pre-existing illnesses, and those who do not smoke. Of course, there are various other factors that affect your insurance rates so the best bet is to get several quotes and consider all factors. Here are some quotes for $250,000 of coverage:

Sex 10 Year 20 Year 30 Year
Male Protective – $29.40/month SBLI – $50.90/month Banner – $90.34/month

Female Protective – $23.97/month SBLI – $38.72/month Banner – $66.94/month

The problem with these quotes is everyone is different. If you’re a smoker, you might as well disregard these quotes.This is because smoking cigarettes or using tobacco drastically increases your chances of health problems. If you want to get rates like the example above, it’s time to put down those cigarettes once and for all.

Similarly, if you’re looking for the lowest rates possible on your life insurance, it’s time to improve your health. You can do this through a diet and exercise. Both of these are going to health you improve your overall health that is going to translate into more savings on your insurance policy. Just like smoking increases your risk of health problems, diet and exercise LOWER your risk of health problems. It’s time you start using that gym membership that you’ve been paying for.

Aside from deciding which policy type and where to buy the plan, you’ll also have to calculate how much insurance coverage you need. Not having enough life insurance coverage could be as bad as not having any coverage at all. There are several different things you need to account for when deciding how much coverage to purchase. The first thing is your debt, and you’ll also need to calculate in your annual salary.

While it is a good idea to obtain insurance as fast as possible, it is never a good idea to jump into a plan without doing your due diligence. Seeking the help of a professional is as easy as filling out the form on the side of this page.

Obtaining life insurance for people over 50 takes working with an agent that is used to that market.  Since the policy needs of people in their 50’s vary much more than people who are in their 20’s, 30’s, and 40’s having the flexibility of an agent really is a need. To get the best insurance rates available to you, you’ll need to compare prices with different companies. Just like you would with a TV or new vehicle.

Source: goodfinancialcents.com