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TOP 6 TIPS FOR CHEAPER TRAVEL

July 12, 2022 / All Blogs, Budget, Saving

It seems like there is light at the end of the tunnel for travelers who are itching to see the world.

And with travel restrictions seeming to be on the edge of lifting, they may have the opportunity to explore again.

But before you start planning your international adventures, here are 6 tips for cheaper travel.

1. Avoid expensive tourist spots.

Paris is lovely this time of year. So are London, Dubai, and Tokyo. They’re also outrageously expensive to stay, eat, and play in. Fortunately, there are many other locations that are just as loaded with culture and fun things to do at a fraction of the cost. Central and South America, Southeast Asia, and Eastern Europe all feature affordable cities, lovely landscapes, and interesting attractions that go toe-to-toe with classic destinations.

2. Book flights well in advance.

Usually the further out you can book, the better. Though some flight sites offer deals on last-minute fares, they’re not always that great of a bargain. It’s typically cheaper to buy tickets a few months in advance. The same logic works for lodging. Speaking of which…

3. Consider staying in a hostel.

They’re a great opportunity to meet fellow travelers in a foreign land. They’re often cheaper than an Airbnb or a hotel, and sometimes offer tours. Just do your research in advance—not all hostels are equal as far as cleanliness and safety.

4. Cut transportation costs.

Need to travel from city to city? Try taking the bus. It’s not glamorous, but it might be a more cost-effective way to get around. While you’re in town, try walking as much as possible and getting public transit when needed. Save your money and spend it on something else like souvenirs or trying a meal you’ve never had before.

5. Explore opportunities to work and travel.

You may be surprised by how many programs pay you to visit exciting new places. Whether you’re teaching English in Asia and South America or working as a tour guide in Sweden, opportunities abound. You may earn enough to offset some of your traveling expenses.

6. Eat local, prep at home.

Eating out for breakfast, lunch, and dinner in a tourist destination is a surefire way to quickly deplete your travel budget. Instead, explore local markets to purchase ingredients that you can store or prepare where you’re staying, like protein bars or sandwiches. Those should cover your first two meals of the day. Then splurge on evening fare with local cuisine at an interesting restaurant!

Seeing the world doesn’t have to break the bank. Use these tips to plan your adventure, send me a postcard, and let me know if they make a difference in your budget!

 

TIPS FOR SAVING AT THE GROCERY STORE

August 1, 2022 / All Blogs, Budget, Saving

Every penny counts, especially when you’re trying to balance your monthly budget.

But unless you plan ahead and only buy things you need, it’s easy to overspend at the grocery store. If you keep these tips in mind when you’re shopping, you can save money without sacrificing quality.

Bring a list of what you need to buy.

Why? Because a list keeps you on task. You’ll be far less likely to wander the store, spying on things you don’t need and snapping them up if you go with a clear plan of what you need to buy. Make a list, check it twice, and shop with a purpose!

Buy in bulk when it makes sense for your family size and lifestyle.

If you have a big family, buying in bulk can save you big money, especially if items are on sale! But don’t just buy anything that seems like a good deal—only buy what your family will consume, and be sure to store it properly. That means non-perishable food items, hygiene and cleaning products, and home supplies.

Compare the unit price.

A low sticker price doesn’t always indicate it’s the best buy. Always check the unit price to maximize your savings. The cheaper it is per ounce, pound, or unit, the better bargain it probably will be!

Use coupons and sales flyers when available.

It’s simple—just download your favorite store’s app and look for the savings or coupon page. All you have to do is tap the items that you want to save on. Then, just scan your phone when you check out and watch the savings!

Rack up loyalty points when possible.

After all, why shouldn’t you be rewarded for your usual shopping? Just scan your card every time you shop, and eventually, you can earn free or discounted items. However, be careful that you don’t increase your spending to maximize your rewards!

Why not try one of these tips for just a month and see how much you save? It’s a worthwhile experiment that may result in a substantial boost in your cash flow. Let me know how it goes!

PERSONAL FINANCE MOVES FOR SMALL BUSINESS OWNERS

July 12, 2022 / All Blogs, Business, Financial Education, Investment

As a small business owner, you’re responsible for everything—from saving on office supplies to making sure folks get paid to know what taxes to file and when.

A big part of success is educating yourself on how your personal finances affect your business and vice versa. Here are a few moves that can help keep your personal finances healthy while you grow your business.

Keep track of your monthly income and expenses.

Your business income can vary dramatically from month to month, depending on the season, number of sales, trends in your market, etc. These could potentially cause your average bottom line to be lower than anticipated.

That’s why it’s critical to track your monthly income and then budget accordingly. As your income grows and shrinks, you can adjust your spending.

Set up an emergency fund.

This money can be used to cover unexpected costs, such as unanticipated repairs or an illness. But, when you own a business, it can also help you make ends meet if the business is slow or, say if a global pandemic shuts down the world economy. Save up to 6 months’ worth of spending in an account you can easily access in a pinch!

Know what you owe, to whom, and when it is due.

Personal debt can be a serious challenge for small business owners. It may motivate them to make foolish financial decisions to pay off what they owe, regardless of the consequences.

That’s why it’s important to manage your finances responsibly so that debt doesn’t become a problem. Adopt a debt management strategy to reduce your debt ASAP. Your business may benefit greatly from it.

Get professional advice if you need help with your finances.

If it’s at all feasible for your business’s budget, get a professional set of eyes on your books. They’ll help you navigate the world of finances, share strategies that can help make the most of your revenue, and show you how to position yourself for future success!

PERMANENT OR TERM LIFE: WHICH IS RIGHT FOR YOU?

August 1, 2022 / All Blogs, Financial Education, Insurance

Life insurance has many benefits.

Most people purchase life insurance to serve as a safety net for the financial health of their family if something happens to them as the primary provider. A life insurance policy in such cases could be used for funeral costs, medical bills, mortgage payments, or other expenses.

You’re finally convinced you need a life insurance policy, and you’re ready to buy. But what do you need exactly? What type of life insurance is best for you?

When preparing to purchase life insurance, there are two main types of policies to consider – permanent and term. Read on for a short primer on the differences and which one may be right for you.

Term life insurance at a glance

Term life insurance offers life insurance coverage for a set amount of time – the “term”. If you pass away during the term, the policy pays out to your beneficiary. A term policy is sometimes called a pure life policy because it doesn’t have financial benefits other than the payout to your dependents should you die within the term.

There are different terms available depending on your needs. You could purchase a term life policy for 10, 20, or 30 years.

Term life insurance pointers

When purchasing a term life policy, consider a term for the number of years you’ll need coverage. For example, you may want life insurance to provide for your child in case you die prematurely. So, you may select a 25-year term. On the other hand, you may want a life insurance policy to help with the mortgage should something happen to you. In this case, you may opt for a 30-year term which will expire when your mortgage is paid off.

You’ll need to purchase enough insurance to cover your family’s needs if something happens to you and you cannot provide for them. Term life insurance benefits could serve as income replacement for your wages, so buy enough to pay for the expenses your paycheck covers.

For example, if you cover the mortgage, car payment, and child care, make sure the term life policy you purchase can cover those expenses.

Term life insurance policies when appropriately used should expire around the time they need for them goes away, such as when your children are self-sufficient, or your mortgage is paid off.

Permanent insurance at a glance

This type of policy can provide coverage for your entire life, unlike a term policy that expires at a set time. A permanent life policy also contains an investment benefit which is known as the policy’s cash value. The cash value of a permanent life policy grows slowly over time but is tax-free (provided you stay within certain limits), so you don’t pay taxes on the accumulating value.

A permanent life policy can be borrowed against. You can borrow against the cash value, but you must abide by the repayment terms to keep the policy payout unchanged.

Some permanent life insurance policies offer dividends. The dividends are paid to the policyholders based on the insurance company’s financial profits. Policyholders can take dividends in the form of cash payouts or use them to earn interest, pay back a loan on the policy, or purchase additional life insurance coverage.

Some of the key points regarding permanent life insurance include:

  • The premium can remain the same throughout the policy term if you abide by the conditions and terms in the policy
  • The policy offers a guaranteed death benefit

Cost of life insurance

Term life insurance is generally less expensive than permanent life insurance because the policy has a pre-selected term. Permanent life insurance, on the other hand, covers the insured for their entire lifespan, so you can expect premiums to be higher.

Which life insurance policy is right for you?

If you aren’t sure which policy is right for you, talk to a qualified financial professional who can help you find the right type of life insurance policy to meet your goals and budget.

 

This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing or enacting a savings or retirement strategy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options.

 

CONSIDERING A HOME EQUITY LOAN?

June 13, 2022 / All Blogs, Debt, Investment

Home prices may be leveling off in some areas but they’ve had a healthy recovery nationwide, leading to massive amounts of untapped equity.

According to a recent report, the average homeowner gained nearly $15,000 in equity in the past year and has nearly $115,000 available to draw.[i]

This can be good news if you need to increase your cash flow to pay for a special project or unusual expense.

Home equity risks
It might be obvious, but a home equity loan is secured by your home, based on the equity you’ve built. Your eligibility for a home equity loan involves several factors, but primary consideration is going to be the difference between your home’s market value and the remaining balance on the mortgage. Keep in mind that missed payments due to a job loss, illness, or another financial setback may put your home at risk from two loans – the original mortgage and the home equity loan. Before you take out this type of loan, make sure you have a solid strategy in place for repayment.

Home equity loan costs
Funds acquired through a home equity loan can feel like found money, but keep in mind that a home equity loan takes an asset and converts it to debt – often for up to 30 years. As such, you’ll be paying certain fees to use the money.

Home equity loans often have closing costs of 2% to 5% of the loan amount.[ii] It might be worth it to shop around, however, to see if you can find a lender who won’t bury you in fees and loan charges. Interest rates may vary depending on your credit rating and other factors, but you can expect to pay about 6% or higher. If you were to borrow $100,000 of the $115,000 the average homeowner now has in equity, the interest costs over 30 years would be $115,000 – $15,000 more than you borrowed. If you can manage a 15-year term instead, this would drop the interest costs down to about $52,000.[iii] Carefully consider what you’ll use the funds to purchase. A new patio addition to your home or a pool with a deck may not add enough value to your home to offset the interest costs.

Tax benefits
Once upon a time, the interest for a home equity loan was tax-deductible, much like the interest on a primary mortgage. Now, there are some rules attached to the tax benefit. If you use the loan funds to make improvements to the home you’re borrowing against, you can usually deduct the interest. In the past, the tax benefit didn’t consider how the funds were used.[iv]

Home equity loans can be a powerful financial tool. But as with many tools, it’s important to exercise caution. Before signing on the dotted line, be sure you understand the long-term cost of the loan. With interest rates climbing, a home equity loan isn’t as attractive a source of funding as it once was.

Depending on how the funds are used, a home equity loan can make sense. If you’re buried in high-interest debt, like credit cards, the math might work in your favor. However, if the money is spent on a shiny, red sports car and a trip to Vegas, it might be tough to make a financial argument for that – unless you win big.

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This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies that may be available to you. Before taking out any loan or enacting a funding strategy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options.

[i] https://www.cnbc.com/2018/07/09/homeowners-sitting-on-record-amount-of-cash-and-not-tapping-it.html\ [ii] https://www.lendingtree.com/home/home-equity/home-equity-loan-closing-costs/\ [iii] https://www.mortgageloan.com/calculator/loan-line-payment-calculator\ [iv] https://www.cnbc.com/2018/05/21/5-things-to-know-before-taking-out-a-home-equity-loan.html

TIPS FOR WORKING AT HOME

June 13, 2022 / All Blogs, Business

You’ve most likely become a work-at-home pro over the last few months.

At this point, you’re probably perfectly comfortable with your routine and feel like you’re highly productive!

But you also might need a refresher on some working-at-home basics. Even at the office—where you’re more likely to be held accountable—it’s easy to slide into bad habits. Here’s a quick rundown of some tips to help you get back in your groove!

Start strong

Sleeping in is almost always a temptation. Crawling out of bed, hitting the snooze button until it breaks, and rushing out the door just feel like a routine to many of us! Working from home can compound this. Suddenly, you have the luxury of peacefully sleeping until 8:55 am, making some tasteless instant coffee, and booting up your laptop in your PJs right before your 9 o’clock video call. Sounds like life, right?

But this ritual of jumping right from your mattress to your dining room table/temporary desk can have serious drawbacks. Staring at a computer screen while barely keeping your eyelids open is an incredibly uninspiring way to start a day. It’s much better to do things that help you wake up and get your mind focused. Make breakfast! Go for a walk! Meditate! Use that time you would normally spend looking at brake lights for something productive.

Make a workspace

Homes are (hopefully) relaxing. They’re where we go at the end of a long, stressful day to binge-watch shows, eat delicious food, and spend time with our families and friends. Those associations can make working from home tricky. You might notice that the temptations to watch TV, talk to a roommate, or reorganize your kitchen for the 100th time are interfering with your job performance.

The solution to this problem is to create a workspace in your home that is dedicated to being productive. Remind your family that you love them, but that you’ll need some space when you’re in your home office. Move TVs and other distractions out and create a place where you can focus. And it’s probably wise to avoid setting yourself up in your bedroom unless absolutely necessary!

Always communicate

One of the biggest downsides of working at home is that it can strain communication with your coworkers. On one hand, that’s probably not awful. Less chatter with your office buddies about the latest reality TV show might be a welcome productivity booster! But collaborating with your team, getting approvals from bosses, and receiving feedback are essential parts of getting projects done and growing your skillset.

So don’t go off the grid. Stay in touch with your colleagues. Ask your boss for feedback. Get advice from your mentors. Staying vocal keeps work moving forward, it keeps you socialized and feeling accomplished, and it reminds the higher-ups that you still exist!

Whether you’ve finally decided to upgrade your work-at-home game or you just needed a reminder, try out these tips and let me know how it goes!

FIRST TIME HOME BUYER? BEWARE HIDDEN EXPENSES

August 1, 2022 / All Blogs, Insurance, Investment, Life Insurance

If you’re getting into the home-buying game, chances are you’re feeling a little overwhelmed.

Purchasing a home for the first time is exciting but it can also be very stressful! Anyone who’s been through that process could probably share a story about a surprise hidden expense that came along with their dream home.

Read on to help prepare yourself for some common costs that can pop up unexpectedly when you’re purchasing a home.

Emergency fund
Before we get into the hidden costs of homeownership, let’s talk a little about how to help handle them if and when they do arise. If you’re getting ready to buy a home but don’t have an emergency fund, you may want to strongly consider holding off that purchase, if at all possible, until you do have an emergency fund established. It’s recommended to put aside at least $1,000, but preferably you should save 3-6 months of your expenses, including mortgage payments. An emergency fund is the most fundamental personal finance tool you can have in your toolkit. It’s like the toolbox itself that holds all your other financial tools together. So, before you start home shopping, build your emergency fund.

Homeowners associations
If your dream house happens to be in a neighborhood with a homeowners association (HOA), be prepared to pony up HOA fees each month (some HOA’s may charge these fees every quarter, or even annually). HOA fees may cover costs to maintain neighborhood common areas, such as pools or parks. They may also cover maintenance to your front lawn, and/or snow removal from driveways, etc. Typically, a homeowners association will have a board that enforces any agreed-upon property standards, such as having you remove ivy from your home exterior, or making sure your sidewalk is pressure washed regularly.

If you purchase a home with an HOA, be prepared for the added cost in fees as well as adhering to the rules. You may incur a fine for such things as your grass not being mowed properly, or parking your boat or camper in your yard.

Private Mortgage Insurance (PMI)
PMI comes into play if you can’t make at least a 20% down payment on your new home. If that’s the case, your mortgage lender charges PMI which would kick in to protect them if you default on the loan. It can cost 0.3 to 1.5% of your mortgage. However, once you have 20% equity in the home, you don’t have to pay it anymore. (Note: You may have to proactively call your mortgage company and tell them to remove it.)

Maintenance costs
If you’ve been living a maintenance-free life in an apartment or rental home, the cost of maintaining a house that you own may come as a shock. Even new homes require maintenance – lawn care, pressure washing, clearing rain gutters, painting, etc. There’s always going to be something to upgrade or repair on a home, and many first-time home buyers aren’t prepared for the expense.

A good rule of thumb is to budget about 10 percent of the value of your home for maintenance per year. So, if you buy a $250,000 home, you should prepare for $2,500 a year in maintenance costs.

Home insurance
Be prepared for some sticker shock when purchasing your homeowners’ insurance. Homeowners’ insurance is typically significantly more expensive than purchasing a renter’s policy. If you live in an area prone to natural disasters, be prepared to pay top rates for homeowners’ insurance. If you live near a body of water, you may also need flood insurance.

Life insurance
Many first-time homebuyers may not give life insurance a thought, but it’s an important factor that can help protect your investment. You probably need life insurance if anyone is depending on your income. Especially if your income helps pay your mortgage every month, you should strongly consider a life insurance policy in case something were to happen to you. This will help ensure that your spouse or significant other can continue to live in your home.

Home buying is exciting and part of the American dream. But don’t neglect to come back to reality – at least when making financial decisions – so you can budget properly and anticipate any hidden costs. This will help ensure that your first-time home buying experience is a happy one.

DIG YOURSELF OUT OF DEBT

June 29, 2022 / All Blogs, Debt, Financial Education

I hate to break it to you, but no matter what generation you are – Baby Boomer, Generation X, or Millennial – you’re probably in debt.

If you’re not – good on you! Keep doing what you’re doing.

But if you are in debt, you’re not alone. A study[i] by the financial organization, Comet, found:

  • 80.9 percent of Baby Boomers are in debt
  • 79.9 percent of Generation X is in debt
  • 81.5 percent of Millennials are in debt

There are some folks whose goal is to eliminate all debt – and if that’s yours, great! But one thing to keep in mind while you’re working towards that finish line is that not all debt is created equal. Carrying a mortgage, for example, may be considered a “healthy” debt. Student loan debt may feel like an encumbrance, but hopefully, your education has given you more earning power in the workforce. A car loan may even be considered a healthy debt. So, there are some types of debt that may offer you advantages.

Any credit card debt you have, however, should be dealt with asap. Credit card debt can cost money every month in the form of interest, and it gives you nothing in return – no equity, no education, no increase in earning potential. It’s like throwing money down the drain.

So, let’s get to work and look at some of the best tips for paying down credit card debt.

1. Get to know your debt
Make a commitment, to be honest with yourself. If you’re in denial, it’s going to be hard to make positive changes. So take a good, hard look at your debt. Examine your credit card statements and note balances, interest rates, minimum monthly payment amounts, and due dates. Once you have this information down in black and white you can start to create a repayment strategy.

2. Get motivated
Taking on your debt isn’t easy. Most of us would rather not confront it. We may make half-hearted attempts to pay it off but never truly get anywhere. Need a little motivation? Getting rid of your credit card debt may make you happier. The Comet study asked respondents to rate their happiness on a scale of one to seven.[ii] It turns out that those who selected the lowest rating also carried the highest amounts of credit card debt. Want to be happier? It seems like paying off your credit card debt may help!

3. Develop your strategy
There are many strategies for paying off your credit card debt. Once you understand all your debt and have found your motivation, it’s time to pick a strategy. There are two main strategies for debt repayment. One focuses on knocking out the highest interest debt first, and the other method begins with tackling the smallest principal balances first. Here’s how they work:

  • Start with the highest interest rate: One of the items you should have noted when you did your debt overview is the interest rate for each account. With this method, you’ll throw the largest payment you can at your highest interest rate debt every month, while paying the minimum payments on your other debts. Utilizing this method may help you pay less interest over time.
  • Start with the smallest balance: As opposed to comparing interest rates, this method requires you to look at your balances. With this strategy, you’ll begin paying the smallest balance off first. Continue to make the minimum payments on your other accounts and put as much money as you can towards the smallest balance. Once you have that one paid off, combine the amount you were paying on that balance with the minimum you were paying on your next smallest balance, and so on. This strategy can help keep you motivated and encouraged since you should start to see some results right away.

Either strategy can work well. Pick the one that seems best for you, execute, and most importantly – don’t give up!

4. Live by a budget
As you begin chipping away at your credit card debt, it’s important to watch your spending. If you continue to charge purchases, you won’t see the progress you’re making, so watch your spending closely. If you don’t have a budget already, now would be a good time to create one.

5. Think extra payments
Once you are committed to paying off your debt and have developed your strategy, keep it top of mind. Make it your number one financial priority. So when you come across “found” money – like work bonuses or gifts – see it as an opportunity to make an extra credit card payment. The more of those little extra payments you make, the better. Make them while the cash is in hand, so you aren’t tempted to spend it on something else.

6. Celebrate your victories
Living on a budget and paying off debt can feel tedious. Paying off debt takes time. Don’t forget to take pride in what you’re trying to accomplish. Celebrate your milestones. Do something special when you get that first small balance paid off, but try to make the occasion free or at least cheap! The point is to reward yourself for your hard financial work. (Hint: Try putting up a chart or calendar in your kitchen and marking off your progress as you go!)

Reward yourself with a debt-free life Getting out of debt is a great reward in and of itself. It takes discipline, persistence, and patience, but it can be done. Come to terms with your debt, formulate a strategy, and stick to it. Your financial future will thank you!

 

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[i] & [ii] https://www.cometfi.com/details-of-debt

7 MONEY-SAVING TIPS FOR BUDGETING BEGINNERS

May 13, 2022 / All Blogs, Budget, Financial Education, Saving

Starting a budget from scratch can seem like a huge hassle.

 

You have to track down all of your expenses, organize them into a list or spreadsheet, figure out how much you want to save, etc., etc.

But budgeting doesn’t have to be difficult or overwhelming. Here are 7 easy and fun tips to help keep your budget in check and jump-start some new financial habits!

Take stock

Laying out all of your expenses at once can be a scary thought for many of us. One key is to keep your budget simple—figure out what expenses you do and don’t need and see how much you have leftover. This method will help you figure out how much spending money you have, how much your essential bills are, and where the rest of your money is going.

Start a spending diary

Writing down everything you spend for just a couple of weeks is an easy way of finding out where your spending issues lie. You might be surprised by how quickly those little purchases add up! It will also give you a clue about what you’re spending money on and places that you can cut back.

Don’t cut out all your luxuries. Don’t get so carried away with your budgeting that you cut out everything that brings you happiness. Remember, the point of a budget is to make your life less stressful, not miserable! There might be cheap or free alternatives for entertainment in your town or some great restaurant coupons in those weekly mailers you usually toss out.

That being said, you might decide to eliminate some practices to save even more. Things like packing sandwiches for work instead of eating out every day, making coffee at home instead of purchasing it from a coffee shop, and checking out a consignment shop or thrift store for new outfits can stretch those dollars.

Plan for emergencies

Emergency funds are critical for solid budgeting. It’s always better to get ahead of a car repair or unexpected doctor visit than to let one sneak up on you! Anticipating emergencies before they happen and planning accordingly is a budgeting essential that can save you stress (and maybe money) in the long run.

Have a goal in mind

Write down a budgeting goal, like getting debt-free by a certain time or saving a specific amount for retirement. This will help you determine how much you want to save each week or month and what to cut. Most importantly, it will give you something concrete to work towards and a sense of accomplishment as you reach milestones. It’s a great way of motivating yourself to start budgeting and pushing through any temptations to stray off the plan!

Stay away from temptation

Unsubscribe from catalogs and sales emails. Unfollow your favorite brands on social media and install an ad blocker. Stop going to stores that tempt you, especially if you’re just “running in for one thing.” Your willpower may not be stronger than the “Christmas in July” mega sales, so just avoid temptation altogether.

Keep yourself inspired and connected

Communities make almost everything easier. Fortunately, there’s a whole virtual world of communities on social media dedicated to budgeting, getting out of debt, saving for early retirement, showing household savings hacks, and anything else you would ever want to know about managing money. They’re great places for picking up ideas and sharing your progress with others.

Budgeting and saving money don’t have to be tedious or hard. The rewards of having a comfortable bank account and being in control of your spending are sweet, so stay engaged in the process and keep learning!

THE POWER OF LIVING BENEFITS

June 16, 2022 / All Blogs, Financial Education, Life Insurance

Preparing for the possibility of a critical medical illness or condition is probably not high on your list of fun things to do.

But its importance cannot be overstated—two-thirds of people who file for bankruptcy do so because of medical debt.¹

What many don’t know, however, is that life insurance can help you shoulder the high cost of medical care… if you utilize living benefits!

How living benefits work

Almost all life insurance policies come with a death benefit. It’s money that will go to your beneficiaries when you pass away. A living benefit is a feature of some life insurance policies that allows you to access the death benefit while you’re still alive.

So let’s say you have a life insurance policy with a $400,000 death benefit. You suddenly get diagnosed with a serious illness that requires you to take time off work and undergo intensive medical treatment.

That means you’re facing a substantial expense with a decreased income. Your medical crisis has also become a financial crisis!

But what if you could access your death benefit in the present? $400,000 may cover a substantial portion—perhaps even all—of the cost of treatment.

And you don’t have to use your entire benefit. If your medical bills add up to $100,000, you could use $100,000 from your life insurance policy to cover your expenses, and leave the remaining $300,000 as of the death benefit!

Keep in mind that only certain types of illness may trigger your ability to access your benefit. That’s why it’s important to work with a licensed and qualified financial professional to create the right policy for you.

If you’re interested in what living benefits would look like for you, contact me. We can review your income and how much life insurance your family needs!

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¹ “This is the real reason most Americans file for bankruptcy,” Lorie Konish, CNBC, Feb 11 2019, https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html

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