Americans’ bank accounts are under siege. Whether it’s a trip to the supermarket or a night out for dinner and a movie, the cost of just about everything seems to be on the rise.
So homebuyers are doing something about it. Frustrated by high home prices and rising mortgage interest rates, they’re increasingly seeking out more affordable places to live—like Lafayette, IN.
The Lafayette metropolitan area was named the top up-and-coming real estate market this spring, according to the quarterly Wall Street Journal/Realtor.com® Emerging Housing Markets Index. The top 20 markets are generally smaller cities offering cheap homes for sale, low costs of living, and strong job markets. The index highlights real estate markets that economists believe will be strong this year.
“We are continuing to see this shift in demand for less expensive markets, many of which are in Midwestern markets,” says Hannah Jones, an economic data analyst at Realtor.com. “They didn’t see the same kind of price growth that larger cities did during the [COVID-19] pandemic, so they maintained affordability.”
Not a single one of these real estate markets was in the West, the region with the highest home prices.
The index identified the top markets for both buyers and investors out of the 300 largest metropolitan areas. It looks at metros with strong housing demand based on page views of local listings, the number of homes for sale, property taxes, and median days homes sit on the market before a sale. It also factors in metros with robust economies, lots of well-paying jobs, a good quality of life, and desirable amenities such as lots of small businesses and reasonable commutes to work. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
The median home list price in the Lafayette metro was $289,000—about a third less than the national median of $424,000 in March, according to the most recent Realtor.com data.
The manufacturing hub of Lafayette, named after American Revolutionary War hero Marquis de Lafayette, is located about an hour northwest of Indianapolis and two hours southeast of Chicago. Big-name employers include Caterpillar, Subaru, and Wabash National Corp., which produces refrigerated truck trailers. It’s also home to Purdue University.
“Homes in Lafayette are significantly more affordable, and it has a strong economy,” says Jones.
Just two of the top 20 emerging markets—Manchester, NH, which has been consistently ranked as one of the nation’s hottest markets, and Knoxville, TN—had price tags above the national median. And just one market, Columbus, OH, the state capital and home to Ohio State University, had a population of more than 1 million.
“These are some of the only markets where locals and first-time buyers can afford to buy a home based on local salaries,” says Jones.
Top 20 emerging real estate markets in spring 2023
Lafayette, IN ($289,000 median home list price)
Bloomington, IL ($339,000)
Elkhart, IN ($275,000)
Lebanon, PA ($372,000)
Fort Wayne, IN ($339,000)
Topeka, KS ($249,000)
Sioux City, IA ($305,000)
Omaha, NE ($345,000)
Springfield, IL ($144,000)
Manchester, NH ($550,000)
Janesville, WI ($331,000)
Columbus, OH ($375,000)
La Crosse, WI ($334,000)
Johnson City, TN ($413,00)
Springfield, OH ($172,000)
Hickory, NC ($349,000)
Burlington, NC ($368,000)
Columbia, MO ($367,000)
Waterloo, IA ($263,000)
Knoxville, TN ($470,000)
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Watch: The Best Cities in the U.S. for Home Sellers Right Now
Looking for something a little bit spacey? Something that’s so far off the beaten path, it’s out-of-this-world cool? A dome home could be for you, as it conveys “rugged individualism” and “retro chic” all at the same time.
Architect, writer, inventor, and futurist Buckminster Fuller is credited with popularizing the geodesic dome home in the United States in the mid-1940s.
Since then, they’ve remained a source of fascination. The curved contraptions do have their advantages: The structure is self-supporting, and it is often less expensive to construct.
So for all you dreamers out there, here are five fabulous dome homes at prices ranging from $449,900 to $925,000, in all corners of the country. Take a look:
Price: $825,000 Luna Dome: This trilevel home is one of the larger ones we’ve seen, with four bedrooms and three baths in 4,560 square feet of living space. Its wide-open floor plan makes it seem even more spacious.
This particular specimen, called the Luna Dome, sits on a hilly, 5-acre lot, with spectacular mountain views from its numerous decks. It has a lower, walk-out level with a separate entrance; it could be an independent unit, featuring a living area, den, kitchenette, bedroom, and bath.
“This unique home has hosted people from all over the world and has proved to be a great investment opportunity,” states the listing.
It’s located about an hour’s drive from Denver and major ski resorts.
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Price: $499,900 Ready for liftoff: We’re willing to bet you’ve never seen anything like this fully shingled, flying saucer-style dome home. It’s built of custom-cut components delivered in special containers, including windows from Denmark.
The traditional front door welcomes you into the futuristic-looking lair. But the use of knotty pine accents and oak flooring brings this four-bedroom, five-bath design back down to Earth. The soaring cathedral ceilings certainly add a sense of awe.
The 5-acre lot includes a metal building with a covered porch, an office, and plenty of storage, which can sometimes be an issue with dome homes—there aren’t a lot of corners where you can place your stuff.
The property is zoned for horses and is covered with native plants, which offer a tax benefit.
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Price: $449,900 White House of the future: This special property doesn’t just have a wraparound porch—it also has a wraparound balcony and a wraparound driveway! That’s a lot of wrapping.
Built in 2013, this four-bedroom, 3.5-bath dwelling is equipped with solar panels, which provide energy for most of the home. There are even solar panels on the well that supplies water to the house and 4.5-acre property.
The lower level of this 2,900-square-foot abode appears to be a massive garage. It’s large enough for your cars, a couple of motorcycles, and a washer/dryer combo, or it could fit a skating rink.
The location is a relatively quick drive from Fayetteville, Huntsville, and Lynchburg.
———
Price: $925,000 Double-domed home: Each dome home is unique, of course, but this one caught our eye with its red, barnlike exterior and colorful, Space Age meets prairie style interior.
The larger dome has an open floor plan and a main-level primary suite. Two bedrooms, a bath, and a beautiful cupola can be found on the second level. The smaller dome has a garage, workshop, and two additional bedroom suites with kitchenettes.
The 29-acre property has off-the-grid features like geothermal heating and solar panels. There’s also a pond, pastures, and woods. The location is about an hour from Roanoke.
———
Price: $470,000 Geodesic classic: Based on the original works of Buckminster Fuller, this geodesic classic was built in 1995. The triangular skylights with wood frames accent the fact that you’re in someplace unique.
Set on 36 acres, the four-bedroom, two-bath, 2,782-square-foot home has an open floor plan. The kitchen is sleek, modern, and colorful. The ceramic tile floor is heated to keep you cozy and warm in the winter.
In the summer you can swim or fish in the nearby Neversink River. You can also enjoy the trails on your own property and those that wind through the adjacent nature conservatory.
The location is relatively close to the Pennsylvania state line and about 1.5 hours from New York City.
Last Updated on February 25, 2022 by Mark Ferguson
I became a real estate agent when I was 22 years old. I was just out of college and did not know what to do with my life, but my father was an agent and I decided to try the business out. It was a great decision to get into real estate, but it took me a few years before I became successful in the business. Some might say my youth hurt me as an agent because people don’t want to work with young real estate agents. Honestly, I do not think my age had anything to do with my success. My attitude and focus were more at fault for not succeeding sooner, not people’s perception of my abilities because I was young.
I get many questions from young readers of the blog who want to become real agents but are worried they are too young to be taken seriously. Some of these readers are much younger than I was when I first started and I can see why they would be concerned. No one wants to begin a career where they have a huge disadvantage, because no one trusts them. Although I could see a few people being concerned with using a very young agent, I think most people are more concerned with an agent’s ability and not their age. I believe the self-confidence that you know what you are doing and you are working for your client’s best interests is much more important than how old you are. There are also advantages to being young as some buyers and sellers may feel a younger person has a better grasp on current technology and marketing trends.
How old do real estate agents have to be to legally sell real estate?
Every state has slightly different requirements on education needed and age requirements to become a real estate agent. Most states require people be at least 18 years old to get their real estate license. You can see the basic requirements of each state to get your real estate license here. While you have to be 18 in most states to get your real estate license, you may be able to take real estate classes and the test before you turn 18. Many of you may think becoming a real estate agent at 18 is not very likely, but I have met some very ambitious youths through this site.
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If you are interested in getting your real estate license, I recommend Real Estate Express, an online real estate school.
How hard is it to get your real estate license as an 18-year-old?
Getting a real estate license can be a very simple and quick process in some states with less 40 hours of education required or a painful and long process with 162 hours required (Colorado). Taking the real estate classes can be a boring and frustrating process, especially if you are taking them online. Passing the real estate agent licensing exam can also be difficult, especially if you aren’t used to tests where the main goal is to trick you into the wrong answers. With enough dedication, most people can pass the real estate tests and get through the classes.
The really hard part about becoming a real estate agent is learning how to sell houses and be your own boss. Most people are not self-motivating enough to put in the work and focus on the tasks that make money. While many may spend 40 hours a week or more working as an agent, they may not be working on the things that are actually going to sell houses. It is also important to know that real estate classes do not teach you how to sell houses and get clients. They teach you how to avoid going to jail for breaking the law and how to fill out a settlement sheet.
How can a younger person become a successful real estate agent?
A young person can be a great agent just like anyone else if they focus on the right things. The first thing and possibly the most important thing to do is to pick the right broker. Too many agents pick a broker that pays them the highest commission split and has the fewest costs. Unfortunately, this causes many agents to fail in the business because they get no training on how to sell houses. I always tell people a 100 percent commission split is not a good thing if you don’t sell any houses. Choose a broker that has the best training available and if possible has a mentoring program.
I know when I was young I thought I could do everything myself and I didn’t need anyone to teach me how to be successful. This was one of the biggest mistakes I made because no matter what you do, there is going to be someone who had already done it and been successful at it. It will reduce the learning curve and make you more successful much sooner than trying to do it all on your own. I run a real estate team of 9 and we have sold over 500 houses in the last three years. I still learn from real estate conferences and other agents how to do things better and become more successful. I also belong to coaching programs to keep me accountable and motivated.
Having goals and focus is also extremely important to all of us. Whether you are young or old, you need goals to show you where you want to be and to be able to plan the route that will get you there. I never had any goals when I was younger and that hurt my business a lot. Once I started creating goals my career took off. I also tried to be successful at multiple businesses at the same time when I started. This “scatter-brained” approach helped me become mediocre at many things. No one wants a mediocre agent who is also mediocre at five other things. They want an agent who is awesome at selling houses. Focus on being the best agent you can be and once you become an expert and set up your business you can branch out to other businesses.
Will people take me seriously as a real estate agent if I am super young?
I get asked this question all the time! People want to become real estate agents or even real estate investors, but they don’t think anyone will take them seriously if they are in their teens or early twenties. I think there may be some people who are put off by a young agent, but for the most part, I don’t think it will affect your business unless you let it. Most people who have bought or sold a house know many agents are not very good. They don’t answer their phone, they don’t return calls and they don’t follow up. If you can take care of your clients and do simple tasks like returning phone calls you will be better than most agents.
I think that most people are looking for an agent that is competent, will communicate well, and knows what they are doing. Agents can demonstrate all of these qualities early on and from that point forward, people won’t care how old you are. They may even be impressed that someone so young is so ambitious.
The biggest problem a young agent will have is if they believe their youth is a problem. Our mindset has a huge impact on how successful we are and if you believe no one wants to work with you because you are young, you might make that happen subconsciously. Believe in yourself and your abilities and people will overlook the age factor.
I go over everything it takes to become a real estate agent in my book How to Make it Big as a Real Estate Agent. How to get leads, how to find a broker, how much money you can make, how to make money, how to manage your time, and how to avoid the struggles many agents have. It is available on Amazon as a paperback or Kindle, and it is also on audible as an audio book!
What are the advantages of being a young real estate agent?
If you are a very young agent there are many advantages that I think out-weight the disadvantages.
Getting started young: The sooner you get started at anything, the better off you will be. There is no substitute for experience and learning by doing. The longer you are in the business the more clients and connections you will gain, which will make you more money. There is also a huge advantage to investing in real estate when you are young and being an agent gives you an advantage as an investor.
Technology: Many people have the perception that younger adults are better with technology. Whether this is true or not, young agents can use it to their advantage. Use technology to get more clients and market yourself to clients as being on tip of the latest marketing trends.
Influence your friends: The sooner you start investing the better. If you are young you probably have young friends. While many of your friends may not be ready to buy houses or invest, you can show them the benefits of rentals. Not only might you sell some houses, but you can help your friends create a better future for themselves.
Better to find out sooner rather than later: What happens if you become a real estate agent at 18, work in the business a year or two and hate it? I think you are better off learning you don’t like the business at 20 than figuring it out at 25 or 30. The sooner you start the business the more time you have to figure something else out if you don’t like it.
More time: Many times the younger you are the more time you have to dedicate to work. The older you get, the more responsibilities you have with family, friends, and life in general. As a young agent, you have more time to commit to your clients and can, therefore, do a better job than many older agents who don’t have any extra time.
Conclusion
Being a young agent does not have to be a disadvantage. Some clients may look at your youth and assume you don’t know what you are doing. However, if you are confident and competent you can show them you do know what you are doing and they may not see age as an issue. The biggest problems with being young are only problems if you believe they are and that affects your confidence and how you interact with people.
The First Access Visa® Credit Card is an option for those who are looking to build credit but would prefer an unsecured credit card without a security deposit. The card, issued by The Bank of Missouri, is widely accepted at retailers.
However, there are some serious drawbacks that make other cards for bad credit or no credit more appealing options. The First Access Visa® Credit Card piles on a laundry list of fees, and should you get into debt, it charges an astronomical interest rate. Though you can earn cash back on your spending, it’s a pittance compared with the annual cost of carrying this card.
Here are five things to know about the First Access Visa® Credit Card.
1. It’s an unsecured card for credit building …
For the most part, credit cards for those with bad or no credit are secured cards, which require a security deposit upfront. That deposit becomes your credit limit, and it’s eventually refunded to you when you establish or shore up your credit scores and graduate to an unsecured card.
But that security deposit can set you back the moment you get a secured card, sometimes by $200 or more. The First Access Visa® Credit Card doesn’t require a security deposit, but other costs associated with carrying this card might make a security deposit seem more palatable, especially if you can qualify for a card with a relatively modest deposit requirement. With the Capital One Platinum Secured Credit Card, for instance, you may be eligible for a $200 credit limit with a security deposit as low as $49.
The First Access Visa® Credit Card does report your payment activity to the three main credit bureaus — Experian, Equifax and TransUnion — which can help you build credit over the long term with careful use, such as paying your card bill in full and on time every month.
2. … But it charges a flurry of fees
The First Access Visa® Credit Card charges a surprising amount of pricey fees, while other credit-building options cost substantially less. Here’s what you’ll pay as a cardholder:
Program fee: You must pay this one-time $95 fee within 60 days of your application getting approved. Once you do, you can activate and begin using your card.
Annual fee:$75 for first year, then $48.
Monthly servicing fee: This fee is waived for the first year but then costs $8.25 per month, or $99 per year.
Additional card fee: Adding cards for authorized users will cost $29 per card, per year.
Credit limit increase fee: You must have the First Access Visa® Credit Card for a year before you can potentially qualify for a credit limit increase. If you do, you’ll pay a fee of 20% of the credit limit increase, which eats into your overall credit limit. So if you’re granted an increase of $100, you pay a $20 fee and get an actual increase of only $80.
Premium plastic card design fee: Pay up to $10 for a “premium” card design.
If you just pay those first three fees and skip adding cards, requesting a credit limit increase or opting for a snazzier card design, the First Access Visa® Credit Card will cost you $170 in the first year and $147 per year after that. Unlike a security deposit for a secured card, that’s money you won’t get back.
3. You can earn cash back, but with caveats
Rewards aren’t a main priority when you’re building credit, but the First Access Visa® Credit Card does earn 1% cash back. Still, there are several things to note about the card’s rewards program.
First, unlike with most other rewards cards, you earn cash back not by making purchases with the card but rather by making payments on your card bill. Second, you have to wait six months before you can redeem any rewards for a statement credit. And finally, you must redeem in increments of 500 points, or $5.
If you’re open to a secured card, some no-annual-fee options also earn cash-back rewards that are much more straightforward. The Discover it® Secured Credit Card earns 2% cash back at gas stations and restaurants on up to $1,000 in combined spending each quarter and 1% cash back on all other purchases. There’s no waiting period to redeem, either. You can redeem your rewards at any time, in any amount. New cardholders can qualify for a sign-up bonus, which Discover phrases like this: INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
If you’re seeking rewards but want to avoid an upfront security deposit and an annual fee, some “alternative” credit cards can tick all those boxes. These types of cards consider financial factors beyond credit scores, like your income, when you apply.
4. Beware of the sky-high interest rate
The ongoing APR is 35.99% Fixed APR, which is staggeringly high, even compared with other cards for bad credit. Making on-time payments of at least the minimum amount due will help you establish credit, but if you don’t pay your bill in full, it can lock you into a cycle of expensive debt that can take years to get out of.
5. A checking account is required
You must have a checking account to qualify for the First Access Visa® Credit Card, which can present a challenge to anyone who wants to build credit but is unbanked.
An alternative is the OpenSky® Secured Visa® Credit Card, a secured card with a $35 annual fee. You can fund your security deposit with a check if you’re able, but you can also do so with a Western Union transfer or money order.
Save more, spend smarter, and make your money go further
MintLife is continuing their contribution to Financial Literacy Month by tacking another personal finance topic: mutual funds. You can catch up on this ongoing series, by reading the first installment, “What are Equities?”
What is a Mutual Fund?
Investing can be pretty scary stuff. Financial fraud, volatile markets, crooked brokers, macroeconomic headwinds – we are constantly bombarded with news of investors losing their shirts after dipping their toes in the nebulous investment universe. But investing doesn’t have to be such a daunting task. There are a number of ways the average investor can distribute risk across their portfolio so that they can sleep easy at night. One of the most popular ways to do that is to invest in a mutual fund.
The mutual fund is the quintessential collective investing scheme. It is basically a variety of securities (stocks, bonds, etc), which are owned collectively by a large number of investors. The securities make up a single fund and shares are sold to investors based on their collective value. It is managed by a group of financial professionals who make all the investment decisions on the fund’s behalf. If the securities in the fund increase in value, then the value of your shares also rise, equating to a positive return on your initial investment.
The aim of a mutual fund is to yield a greater return for their investors than they would have normally received by investing their money alongside an index of some sort, known as a benchmark. For example, if a mutual fund is invested primarily in equities, which are stocks (see last week’s piece), then the fund managers will try to beat the performance of the Standard and Poor’s 500 index, which is a stock index that tracks the rise and fall of 500 stocks that trade in the US.
Which Mutual Funds Should I Invest In?
There are over 10,000 mutual funds available in the US for you to invest in. There are massive, multi-billion dollar funds and there are small boutique funds. There are funds that invest in higher-risk securities and some that invest in securities that have a very low risk profile. But for the most part, mutual funds tend to be divided into three main types: equity funds, fixed income funds and money market funds. Equity funds invest in stocks; fixed income funds invest in debt, like bonds; and money market funds invest in super safe short-term debt securities, like bonds issued by the US government.
Money market funds yield the lowest return for investors out of the three because it is very low risk. The equity and fixed income funds have varying levels of risk and returns based on what they are holding. When you go to invest in a fund, you will be able to see the risk level of the portfolio and can invest accordingly. Funds that are labeled as “growth” funds tend to be riskier than those that are “value” funds. Your risk tolerance is based on your comfort level and on how close you are to retirement.
Why Invest in a Mutual Fund?
Mutual funds are a solid option for people who don’t want to get their hands dirty investing, but who also aren’t keen on seeing their cash locked away in some low to no yield checking or savings accounts, either. There was a time that you could park your cash in a bank savings account or a bank certificate of deposit and receive a relatively decent return on your money. But with the Federal Reserve keeping interest rates so low due to the sluggish economy, chances are you would be better off just stuffing your cash under your mattress than locking it away in a bank.
By pooling your money with others in a mutual fund, you not only get to spread out the risk, but you also are able to take a lot of the guesswork out of investing. You don’t have to spend hours researching a particular stock or a bond – that work has been done for you (hopefully) by the fund managers. And you don’t have to pay the high brokerage fees to buy and sell a security – the fund manager can do that at a much cheaper rate. All you have to do is hand over your cash and go on your daily business. You’ll receive a statement in the mail every few months or every year updating you on how the fund has performed.
The Disadvantages of Investing in a Mutual Fund
But while there are many advantages in investing in a mutual fund, there are also several disadvantages as well. The one that always miffs investors is the fees. Generally, investors have to pay a fee to buy and/or sell their shares in the mutual fund. This fee is known as a “load” and it covers the sales and marketing expenses to the broker who sold you the fund.
When you are invested in a fund you need to pay a few other fees to maintain it. First, there is the management fee, which covers the salaries and personal expenses of the managers running the fund. This fee is usually worth 1% to 2% of the assets you have invested in your portfolio. The fee is paid daily, but is calculated on an annual basis. Some funds also have a marketing fee, known as a 12b-1 fee, which can cost investors around 0.5% to 1% annually. These two fees make up the firm’s management expense ratio. The lower the fees as a percentage of its assets, the more efficient the fund is at managing your money. Separate from those fees is another fee to cover all the trading expenses associated with the portfolio. This fee fluctuates based on the strategy of the fund. For example, if the fund buys and sells securities often, the fee will be higher than if the fund tends to buy and sit on securities for a while.
Beyond fees there is performance. Mutual fund managers aim to beat an index, not make you money. This means that if the S&P 500 index was down 20% last year, a mutual fund manager would be considered successful if the fund was only down 19%. An absolute return, which is making your money grow regardless of how the broader market performs, is not in a mutual fund manager’s mandate. Sure, the fund manager would like to make you money if they can, but they feel like they have done you a service, and earned their fee, if they were able to mitigate your losses compared to that of the broader market.
There have been many studies conducted over the years that try to track the long-term performance of mutual funds. The results mostly show that, net of fees, the mutual fund industry as a whole has not returned a lot of money to investors. Some blame the high fees, while others say that fund managers aren’t doing a good job. But it is sort of unfair to lump the entire industry together. There are, after all, thousands of funds invested in vastly different securities.
The Bottom Line
The key is to put your money in funds where you think have the best chance of growing over a set time. While you can invest and forget for a while with a mutual fund, you still need to rebalance your portfolio – at least yearly. So if there is a recession, in say, Asia, forecasted for the coming year, you might want to pull your money out of the mutual fund that owns a lot of Asian stocks and put it in one that invests in something else safe, like US debt. So while mutual funds are a great alternative for people who don’t want to follow the day-to-day drama of the market, it still doesn’t mean you can check out completely.
Cyrus Sanati is a frelance financial journalist whose work has appeared in dozens of leading publications, including The New York Times, BreakingViews.com, and WSJ.com. Follow Cyrus on Twitter @csanati
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A company may be run by a large group of people with the responsibilities spread out evenly between different departments.
Other companies rely heavily on one or two people.
If one of these highly important people were to pass away, these companies would have difficulties keeping the company in business.
Otherwise stated: They would be screwed!
You would think that most businesses are prepared if something happened to one of its key personnel.
A survey by AMA (America Management Association) says otherwise finding the following:
Only 14% of those surveyed said that their companies were well-prepared for the loss of a key person.
It’s these type of businesses that would benefit from key man life insurance.
What Is Key Man Life Insurance?
The concept of losing a close friend and colleague can be very difficult for business partners to imagine, but they must do so if their plan is to continue operating the business after the death of an important partner.
The key man insurance policy is a life insurance policy that business partners can purchase against the possibility of losing a key partner. If these particular people mean life or death for the company, they are exactly the people who need key man insurance.
Owners of small businesses may have life insurance policies that name their spouses or other family members as beneficiaries. These policies take care of the business partners’ personal expenses, such as the mortgage on the house and other debts.
Business partners often purchase disability insurance and make this available to their employees as well.
The disability insurance pays the expenses in the event that people experience an injury or are diagnosed with an illness that makes it impossible for them to work and earn their salaries.
However, key man insurance covers a completely different area. With the death of a key person, the key man insurance policy covers the company. If you’re one of those essential people in the company, or you’re the owner of the business, then you know how detrimental the death of a key person can be. You’ve been in hours of hard work and sweat into helping your company succeed.
Key man life insurance will protect that from crumbling down if there were anything tragic to happen.
Key man insurance would not be beneficial to every business, but the owners will want to learn more about this insurance coverage to discern whether or not their companies fall under the category of those that would benefit from purchasing a key man insurance policy.
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Does The Company Have One Or Two People Who Are Highly Important?
The owner of the company would certainly fall under this category. The founders of a business may also qualify as key people. If the loss of some employees would cause the organization to experience difficulties in running the business, this company may want to have key man insurance on these employees.
Every company is different, some companies have a whole team of people that they rely on, and if anything tragic were to happen to them, the business would struggle. Other companies have one key person at the top that is essential to the whole operation.
Because every company is different, there is no one-plan-fits-all policy that you can buy.
You will need to look at your organization and decide which kind of coverage is going to work best for you.
Regardless of the setup of your business, it’s vital that your key people have the insurance coverage in place to protect against anything that would happen if they were to pass away.
How Does Key Man Insurance Work?
Key man insurance is a life insurance policy that works much like regular life insurance.
The business will purchase the policy and will also be named as the beneficiary.
This requires that the partners pay premiums that keep the policy active. If one of the key people in the company passes away while the policy is active, the business receives the pre-determined lump sum of money.
This amount may be $100,000, but it could also be as much as several million. The amount that an organization receives will depend on how much the company can afford to pay in premiums. For example, purchasing a policy for a $5,000,000 payment will require that the partners pay more to keep the policy active than if they chose a $100,000 payment.
The partners will not necessarily benefit from a policy that offers them $500,000. The amount of the death benefits will depend on how much money will be required to replace the key person who has died. If the partners in the company believe that $100,000 would suffice, purchasing a policy for this amount is a legitimate choice to make. The partners can also keep their premiums lower if they purchase a term policy that tends to be less expensive than whole life insurance through one the best life insurance companies we have to work with.
What Can the Company Do with the Death Benefits?
What is done with the money will be up to the remaining business partners, but it will be used for the benefit of the business. For example, the business partners can pay any debts that are remaining, or they may offer an amount to their shareholders. Some business partners keep a portion for the business and offer the other to the deceased partner’s spouse.
Who Actually Owns the Policy?
Most key man life insurance policies will have some sort of cash value build-up either a whole life policy for universal life. Here’s the biggest misunderstanding I see: The individual does NOT own the policy. The company does and is also the beneficiary.
The company may get a tax deduction in paying for the key man life insurance policies’ premiums, but they can only do so if they add the premiums paid to the individuals taxable income. This might not sound as attractive if your the individual, but most companies will offer the cash value build up as an added retirement benefit.
I had one client that worked for an old company that had bought a $400,000 cash value life insurance policy on him. He had retired from the company and they let him take the policy with him. The cash value was only around $20,000 which he ended up leaving in the policy to pay for the premiums until it expired.
Are you a business that is need of key man life insurance? Give my office a call and we can give you a free review to see where you might need some coverage.
When you’re looking to get a key man life insurance plan, there are dozens of different factors that you have to consider to ensure that you’re getting the best plan to fit your company’s needs. It can be a long and difficult process, but if you’re one of the main components in a small business, you know the importance of getting insurance protection and not paying more for that coverage than you have to.
Obviously, the most important factors are how much it’s going to cost your organization to replace you if anything tragic were to happen. Each business is different and every person’s responsibilities inside of that organization are going to vary.
For example, if you manage all of the finances of your business, you’ll need to hire another person to handle those or outsource the finances. Depending on how long you need to outsource the job, you could need thousands and thousands of dollars of life insurance.
You’ve worked hard to make your small business flourish. It’s your lifeblood. If you started the organization yourself, you want to be able to protect that business, regardless of what happens to you. The best way to ensure that your employees and business partners have the security that they need is to have a key man life insurance policy that will give the resources that they need, if anything tragic were to happen to you.
Additionally, your family probably relies on the business and the income that comes from it. If something were to happen to you, not only would your business suffer, but your family would struggle as well.
Also worth noting, smart co-owners will set up buy-sell agreements and fund them with life insurance
Getting Better Key Man Life Insurance Rates
Just like any other type of life insurance policy, there are several things that you can do to ensure that you’re getting the best price for your coverage. You should always compare the rates from dozens of companies before you choose the one that works best for you. You compare the prices of TVs, why wouldn’t you do the same for a key man insurance plan?
Every insurance company is different, and all of them are going to have different medical underwriting requires and guidelines for how they determine their premiums amounts, which means that you could get drastically different rates from two separate companies. The best place to start your search is with the insurance company that you already hold policies with. Just about every insurance company gives discounts for having more than one policy. Getting a bundled discount is a great way to save a couple of extra dollars on your key man insurance policy, and could save you money on your other plans as well.
When you apply for a key man life insurance policy, just about every insurance company is going to require a medical exam. The results of the medical exam are going to play a major role in how much you’re going to pay every month for the policy. It’s important that you or the person being insured is in excellent health. One of the best ways to get lower rates for your key man policy is to cut out the tobacco.
If the person that is getting the plan is a smoker, then you’re going to be paying much higher rates. Anyone that uses tobacco is going to have a higher chance of heart attack and cancer, which means the insurance company is taking a great risk. They are going to offset all of that risk by charging you twice as much for that insurance coverage.
Don’t wait any longer to get the key man life insurance policy that your business and family deserve. You can’t predict the future, which means that you never know what’s going to happen tomorrow.
Dependable Home Warranty was founded in California in 1974. When they became a subsidiary of Old Republic International in 1982, they continued to provide reliable coverage to all of their customers.
They have since earned a spot among the top three home warranty companies in the country with an A+ rating from the Better Business Bureau.
Old Republic offers efficient and friendly service with comprehensive plans and straightforward pricing.
Their goal is to be a long-time service provider for your household by building a relationship with your family and earning your trust.
Old Republic Home Protection Review: Main Features
Table of Contents
Old Republic offers many ways to protect your investment by covering common home repairs to help keep your house safe and sound.
With Old Republic, you can expect to find a variety of plans tailored to meet your coverage needs. Across plans, there are a number of features that stand out.
The following are some of our favorite Old Republic coverage features included in all plans, features which put it on our list of top home warranty companies.
Heating System
Heating units not exceeding five tons are covered under all of Old Republic’s warranty plans, and they don’t limit the number of units you can cover.
Most companies only allow coverage for one unit, and you have to pay extra for additional units, so this is a really excellent coverage option.
If you have multiple heating units in a large house or you have an outbuilding you use for your hobbies and projects, this coverage provides you with a great solution. Heating system coverage includes parts like the heat pump, ducts, thermostat, floor heater, and drain pumps.
Plumbing System
When a part of your plumbing isn’t working, it can disrupt your entire routine from dishes to showers to bathroom breaks.
Old Republic’s plumbing system coverage includes the following:
Drain line stoppages
Toilet tanks
Pipe leaks
clogs/leaks: in your water heater, water dispenser, garbage disposal, sump pump, and water pressure regulator parts
Electrical System
You use your electrical system for almost every part of your day. Making toast for breakfast, watching TV in the afternoon, and playing games with your kids in the evening all require electricity.
To keep the lights on, Old Republic covers your outlets, switches, panels, breakers, wiring, fuses, fans, and more.
If something goes wrong with your electrical system, they’ll restore power quickly so you can keep moving.
Home Appliances
Old Republic covers home appliances like your oven, cooktop, range, dishwasher, exhaust fan, built-in microwave, and trash compactor.
Every component of these systems is included in the event you experience normal wear and tear or an unexpected outage.
With this coverage, you can keep your kitchen in proper working order to cook meals, do dishes, or gather with family and friends.
Old Republic Warranty Plans
Old Republic offers customizable warranty plans based on location. While there’s not a standard set of plans for you to preview, Old Republic has brochures available that detail the specific coverage in your area.
Old Republic offers location-based plans to provide better coverage based on common problems in your region.
For instance, you won’t pay for air conditioning coverage when your home doesn’t have an air conditioner.
They can provide superior options and more valuable service by segmenting their warranty plans this way. Experts servicing your location will be more knowledgeable about the problems you encounter and be able to fix them more quickly.
The Good – Old Republic Home Protection
Old Republic offers some benefits in addition to their exceptional features, giving you not only great coverage but fantastic conveniences that make your life easier. Here are just a few of our favorites.
Easy Quotes
You don’t have to call Old Republic to request a quote, and you won’t be hassled by their representatives.
They provide online brochures listing the coverage options in your area so you can do the research on your own and find what’s right for you.
The quoted estimate is highly accurate and lists the service call fee along with the warranty plan price.
Online Claims
Most of your home warranty claims can be handled online, adding convenience to the process. If you find faulty wiring in the basement and you can live without spending time in that space for a few days, the online option is easy to use and eliminates the need for you to pick up the phone.
You should always call instead of filing a claim online in the event of an emergency or if you need to make multiple requests like bringing up previous services or getting the status of an existing claim.
Great Reputation
Old Republic prides themselves on having an outstanding reputation, and they do everything they can to maintain it. They’re reliable, professional, and competent.
The company lists their values online so you can always see how important it is to them to provide you with the best possible service.
They value honesty, and they are always open with their customers. With this kind of transparency, you can rest assured they’ll do whatever they can to give you the best service at the best prices.
Online Resources
Old Republic’s website includes a number of educational tools that can help you make an informed home warranty purchase.
With a blog full of home improvement tips, real estate marketing tools, information about home warranties, and more, you’ll be able to find what you need quickly.
The FAQ page includes answers to the questions that customers ask Old Republic most frequently, so when you’re on the hunt for more information about the company or their plans, it’s all right there.
Real Estate Professional Options
For real estate professionals who prefer to add perks to their sales, Old Republic has packages just for you.
You can cover all of the homes you sell with a fantastic starter warranty, enticing your buyers and giving you an edge.
These plans include extensive tools like customizable e-cards and newsletters, open house kits, and other marketing items.
The Bad – Old Republic Home Protection
As with anything you buy, Old Republic has some downsides, none of which are too significant.
Coverage Areas
They don’t provide nationwide service, so their warranty plans aren’t available everywhere.
However, Old Republic has chosen to focus on areas where they feel they can offer the best value, so in the areas where service is available, it’s the best service you can get.
Customer Support
Old Republic doesn’t offer email or online support. Sometimes the most convenient thing you can do is hop online and chat with someone if you have a quick question.
Support Options Limited
The lack of online support forces you to call in a situation where it would typically be simpler to chat.
However, they do have phone representatives, and their online help section is more comprehensive than many other providers. They have an extensive FAQ section as well as a blog that provides even more advice and answers.
Pros
Cons
Comprehensive Coverage
Old Republic Home Protection offers a wide range of coverage options, including for major appliances, systems, and optional add-ons such as pool and spa coverage.
Ease of Use
Old Republic Home Protection makes it easy to request service and track claims online or through their mobile app. They also have a network of pre-screened contractors to provide service.
Strong Reputation
Old Republic Home Protection has been in business for over 45 years and has a strong reputation for customer service and claims handling.
Customizable Plans
Old Republic Home Protection offers a variety of plans and optional add-ons, allowing customers to tailor their coverage to their specific needs and budget.
Alternatives to Old Republic
Old Republic is one of several great home warranty companies. Take a look at the top alternatives below to decide which provider is best for you.
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The Bottom Line – Old Republic Home Insurance Review
While Old Republic doesn’t have online chat support or coverage in all areas, they do have a fabulous reputation for being honest and upfront with customers.
Their integrity standards are some of the best in the business, giving you peace of mind that your warranty coverage will be honored.
Their quotes are easy to find without having to reach out to a representative, they have a no-pressure sales process, and they offer location-specific coverage for more comprehensive plans and solutions.
When it comes to home warranty coverage, Old Republic provides excellent options for all of your home warranty needs.
FAQs – Old Republic Home Insurance
What does Old Republic Home Protection cover?
Old Republic Home Protection offers a range of coverage options, including for major appliances, heating and cooling systems, plumbing, and electrical systems. Optional add-ons, such as pool and spa coverage, are also available.
How does Old Republic Home Protection work?
If a covered item in your home breaks down, you can file a claim with Old Republic Home Protection either online or over the phone. Old Republic will then send a pre-screened contractor to your home to assess the problem and perform any necessary repairs.
How long does a contract with Old Republic Home Protection last?
Old Republic Home Protection requires a one-year contract. The contract automatically renews each year unless canceled.
Product Description: Old Republic Home Protection is a home warranty company that offers coverage for home systems and appliances.
Summary of Old Republic Home Protection
Old Republic Home Protection is a home warranty service that offers coverage for major repairs and replacements for important home systems and appliances. It provides coverage for items such as heating and cooling systems, plumbing, electrical, water heaters, and more. The company also offers additional services such as repair scheduling, 24/7 emergency service, online account management, and an annual maintenance plan.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
3.9
Pros
Predictable Coverage: A one-year contract with automatic renewal means that homeowners can count on having coverage for a set period of time without having to worry about renewing the contract themselves.
Continuous Coverage: Automatic renewal ensures that there is no gap in coverage, which is especially important for homeowners who rely on their home systems and appliances.
Budgeting: With a one-year contract, homeowners can budget for the cost of the home warranty and plan accordingly for the renewal.
Cons
Long-Term Commitment: A one-year contract means that homeowners are locked into the service for a set period of time, even if they are dissatisfied with the coverage or service provided.
Cancellation Restrictions: Cancelling the contract before the end of the term may result in penalties or fees, depending on the terms of the contract.
Automatic Renewal: Automatic renewal means that the contract will renew automatically unless cancelled, which may catch some homeowners off-guard if they forget to cancel before the renewal date.
By Peter Anderson7 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 June 16, 2009.
Hi, I’m Pete And I Love Gadgets..
As someone who loves gadgets, and who can never get their fill of the newest and latest technology, having self control and not buying all the latest toys isn’t an easy thing to do.
If there is a new Ipod, I would love to find a deal and get my hands on one. New DSLR camera? Put me on the waiting list! For some reason I’ve never been one to wait a year or two until the gadget can be had for a fraction of the price. I have to have it when it’s new, it’s cool and it’s in demand.
Electronic gadgets seem to be one of my main spending downfalls.
Reining In The Spending
Once my wife and I started watching what we were spending a little closer, I realized that I wouldn’t be able to continue with always having the newest and the greatest. Once in a while? Maybe. But not every time that I really wanted to.
Part of the problem that I kept running into when I was trying to stop spending was that the things I wanted were always in front of me, a constant source of temptation.
When I would check my email, I would get email alerts for deals on all the newest electronics. I would open my web browser and it would always go to my homepage – a hot deals website always trumpeting the best deals on the hottest electronics. I would check my RSS reader, and I had an entire section devoted to hot deals, electronics and coupon sites. When talking with friends they would always talk about the newest gadget that they had as well.
After realizing just how much temptation was bombarding me every day, I realized something. I needed to remove the temptations to buy wherever I could. Part of the reason I was having a hard time stopping the spending was because things were constantly being offered to me, when I could in fact remove those temptations.
Removing The Temptation To Buy
Here’s what I did to remove several sources of temptation
I changed my browser’s homepage from a electronics deals site, to my gmail page. No more temptation every time I logged on!
I unsubscribed from email lists for major electronics retailers that I had purchased from before.
I removed many of the electronics and deals sites from my daily reads section in my RSS reader so I wasn’t bombarded with new deals on the hottest items every day.
I counted my blessings, and started enjoying the things I already had! Often the need to pursue the next best thing, and the need to just “have things” becomes more important than the items themselves. It’s then that we know that it’s time to take a step back.
When the temptation isn’t in front of you, it isn’t top of mind. When it isn’t top of mind, it’s a lot easier to realize that you don’t really need it.
I think it’s important to remember that we need to be careful not to become owned by our possessions. If we consistently want more, bigger, better things, they can begin to take over our lives. I believe we need to take the advice given in the bible in order to live better more rounded lives:
And he said to them, “Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions” – Luke 12:15
Have you ever noticed that you are surrounded by temptations, and everyone is offering you ways to spend your money? Have you found that removing the temptation makes it easier to not spend? Tell us your thoughts in the comments.
By Peter Anderson6 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 March 15, 2012.
Weekend Away
This past weekend my wife and I got away to the woods of Northern Wisconsin for a few days of fun and relaxation on the lake (see a picture of the lake below). My wife’s family used to own a beautiful cabin on a gorgeous lake near the town that we visited, and going there for vacation really got all the old memories flooding back of fun times at the cabin, and of being on the lake in her parent’s boat.
We walked through the town, and visited the cute little shops up and down main street. We ate lunch at an awesome outdoor cafe. We played mini-golf and rode the go-karts. We had a really good time. Then while we were sitting at dinner, we started dreaming about owning our own piece of lakeshore in this great little town.
Cabins, Boats And Other Things We Don’t Need
We talked about how we had always had such good times when we were at the cabin, and how some of our fondest memories of our young relationship had been out on the lake, and sitting on the dock at the lake house. We dreamed of buying our own piece of real estate on a lake in the area, and talked about how we could then get a boat, and store it there at the lake. We started thinking of all the ways we could make this piece of Wisconsin our own, and turn the summers at the cabin into a reality.
We even started looking around at places while we were driving around, thinking about how the market was down right now, and we could probably get a great deal on a cabin or townhouse on the lake right now. Prices are probably cheaper on lake real estate than they have been in years!
The cabin fever started creeping in, we really wanted to make the move!
In reading a post this morning on another blog, it looks like we’re not the only ones who were thinking about moving forward on a large goal, although I’m not sure I agree with how this person went about it (doing it without first talking to his wife).
Not Now, Maybe Later
After talking about it all weekend, we started to come to our senses and realize that we aren’t in any position to be buying a lake home right now. We still have a nice hefty mortgage on our principal residence, and adding another mortgage on a vacation home would just be silly. We realize that it just isn’t the right time for us to be buying a cabin.
On the other hand, I think it’s ok for us to dream, and set a future goal of one day owning a cabin on a lake. It is something that we enjoy, and that we could share with others. Is it something we can do right now? No. But it is something that can motivate us, and push us towards achieving in our professional lives? I think so. I wrote about using goals to motivate you a while back. Goals can have an extremely strong motivating power – and the funny thing is, a lot of the time once you are able to attain the goal, it doesn’t seem as important anymore.
So for us, I think that moving forward on a vacation home or a boat just aren’t good ideas right now. They will however be good motivating goals for us to work towards. Who knows, our views of living at the lake may change by the time we’re ready to go down that road ( I doubt it, I mean, look at that picture of the lake above? Doesn’t it just feel relaxing?). In the meantime having that goal will have a strong motivating pull for us, and will help us to reach our goals, whether it ends up being a cabin, or something else.
Do you have a big goal that you’re working towards attaining? Have you ever moved ahead on one of your large goals before you were ready, and were sorry later on because of it? Tell us about your big life goals, and how they have worked out for you.
If the past few years have often made you fantasize about living amidst uninterrupted wilderness, we have a treat for you.
Thirty minutes southeast of Missoula, and about 2.5 hours northwest of Bozeman, Montana, lies the sprawling Five Ranges Ranch — currently on the market for $25 million (Mauricio Umansky of The Agency along with Joy Vance and Jeremy Seglem of The Agency Bozeman hold the listing).
A massive 4,880-acre property that stretches from the banks of the Clark Fork River to the tops of the Garnet Mountain Range of the Rocky Mountains, Five Ranges Ranch is a truly rare offering.
It’s also a bonafide hunting paradise, being home to a native herd of over 300 elk, as well as upland birds and turkeys, with over 100 miles of game trails and wilderness roads to explore.
At the center of it all sits a majestic 8,510-square-foot main lodge, which comes with ample accommodation for guests and fellow big-game connoisseurs.
SEE ALSO: NASCAR Champ Tony Stewart’s house is a massive 415-acre hunting paradise
The Five Ranges lodge features two levels of living space and a third-level Sky Lounge with towering views of the Pintler Mountains.
Incorporating natural and handmade elements that pay tribute to the lodge’s locations — and the breathtaking landscape that surrounds it — the lodge features unique finishes like American Clay walls and ceilings, hand-forged ironwork, custom-made light fixtures, and reclaimed white timber oak flooring.
On the main floor, we find a hand-placed rock fireplace in the living room and towering two-story, floor-to-ceiling windows that open up to uninterrupted alpine and valley views.
Also on the main floor: a beautifully appointed kitchen, dining room, and library, as well as access to the expansive multi-level deck outside.
But it’s the ground floor that holds the key to funtown, as this space was specifically designed for entertainment.
SEE ALSO: Is the Yellowstone ranch real? We found the Dutton ranch in real life
As such, it comes with some extraordinary features like a high-quality game room with premium sound and video, hand-crafted white oak and persimmon wood Hellgate Bar, country club style locker room, and additional walk-out covered patio and entertainment space offering over 5,000 square feet of outdoor living.
But the lodge isn’t the only accommodation available on site.
There are also two apartments — nestled below the lodge itself — that provide extra space for guests or people working on the Ranch, as well as several cabins dotted throughout the timberland and connected via off-road trails.
Equipment and machines necessary for the sprawling 4,880+ acre ranch’s upkeep also have their dedicated space, in the oversized 6,000-square-foot garage.
Rightfully touted as “a world unto itself”, the Five Ranges Ranch is one of Montana’s most exclusive real estate offerings and a dream retreat for big-game hunters and nature lovers alike.
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