Category Life Insurance

4 Common Pieces of Money Advice You Can’t Afford to Follow

Bad money advice

Few of us feel like financial experts, so when it comes to money matters, we generally welcome advice. The trouble, though, is that not all the financial advice the professionals dish out is sound, despite often seeming so. Below you’ll find several examples of bad financial advice. There are plenty of others, though, so carefully assess any guidance you run across.

1. Save 10 Percent for Retirement. It’s a common piece of financial advice, and for many people, socking away 10 percent of their income will get them to a comfy retirement. But this guidance isn’t one-size-fits-all.

If your needs in retirement will be greater, saving 10 percent may not be enough...

Read More

How Bold Smokers Can Get Life Insurance for Less: Just Lie

a man wearing a suit smoking a...


By Juliette Fairley

When Alex Grebe signed up for term life insurance, he lied. The 28-year-old stated that he is tobacco-free. “I know not to tell insurers the truth,” said the Manhattan resident, who smokes cigarettes. Grebe only pays $50 a month for his term life insurance, but had he revealed he was a smoker, he would have paid more than three times as much as a non-smoker for the same policy, according to a new report.

A 45-year-old nonsmoking woman pays $544 per year for a term life policy with half million in coverage for 20 years but with a smoking habit, her rate goes up 269 percent or $2,600 a year.

“Smoking causes one in five deaths in the U.S...

Read More

5 Smart Financial Decisions for After You Buy a New Home

cheerful senior couple standing ...


There is certainly no shortage of financial advice available to those who are thinking of buying a new home. Where to buy, how to get the best mortgage rate, even why you shouldn’t buy a house in the first place — all this information is accessible with a few mouse clicks. And once the loan is approved, the piles of paperwork signed, and you have the keys to your new home in hand, there is a temptation to think that all the hard work is done. But it’s not, it’s just beginning.

Buying a home is the biggest purchase most people will ever embark upon, and that is why it is especially important to take a number of post-sale steps to make sure you protect your largest financial investment.

Like most of us, the previous owners of your home probably had multiple copies made of thei...

Read More

8 things you should pay for – no matter what

couple looking worried about billsHard times make for hard choices — especially when it comes to prioritizing which bills get paid, when what you have is not enough to cover all your expenses. But there are some bills it behooves you to keep high on the priority list. A Tennessee homeowner found out the hard way this month when his house caught fire and the firefighters arrived. All he could do was just stand there and watch as his home burned to the ground — with his pets inside. The homeowner lived outside the city limits and had “forgotten” to pay a $75 annual fire service fee, which would have earned him the fire department’s services, in what has since been dubbed a ‘pay for spray’ arrangement.

This situation presents a bizarre extreme, but it also serves as a grave reminder of the disastrous results that can arise fr...

Read More

Think you’ve got health insurance? Rescission could leave you broke and sick

%image_alt%Karen Knee’s insurance problems began with her 2005 New Year’s resolution: addressing her nagging health concerns. First on her list was to get those little benign cysts on her scalp removed. Blue Cross pre-approved the procedure, and it went off without a hitch — at first.

But then the insurer retroactively canceled her policy, claiming that Knee (at right), of Orange County, Calif., had failed to disclose a pre-existing condition, and saddled her with a $30,000 medical bill.
Knee was stunned. Four years earlier, she had applied for coverage online and included everything she could recall about her health history — doctors’ names, prescriptions taken, the test results of her latest pap smear...

Read More

Life settlement funds: good investment, ghoulish, or a death bubble?

grim reaperInvestors large and small are looking for a new way to return to the juicy profit level of sub-prime’s heyday, and one product beginning to gain popularity is life settlement funds, AKA Grim Reaper funds.

In a life settlement, investors pay the elderly cash today in return for the money from their life insurance when they pass. Yes, it sound ghoulish, but when has that been an impediment on Wall Street? With $26 trillion of life insurance currently in effect, the prospects are enormous.

In the same way that mortgages were bundled and turned into securities, companies such as Credit Suisse are buying up quantities of policies to create funds. Investors are hoping for returns as generous as 20-40%. Last year, seniors sold life settlements with a face value of $11.8 billion...

Read More

5 Financial Decisions That Sound Smart but Are Really Dumb

Vector illustration ? Empty head and money brain.
Alashi, Getty Images

Norma Yaeger, 83, of Encino, Calif., thought she was making a smart financial decision last fall, when, after pulling into a Ralph’s supermarket, she impulsively hired two men to fix her car.

“Two nice gentlemen came over to me and look at my fender, which was badly scratched. They said that they had a compound that will remove the scratches and restore the paint,” Yaeger says.
They would fix it, for just $50.

Yaeger isn’t a rube — she was, in fact, the first female stockbroker to work at the New York Stock Exchange (and recently wrote an autobiography, “Breaking Down the Walls”). She also served as president of two stock brokerage firms. The men who approached her seemed honest, and Yaeger was self-conscious about her fender...

Read More

5 Life Insurance Policies You Really Need to Cancel

A hand holding an umbrella with paper money design


Life insurance is sold based on one thing: fear. Fear of dying, of being injured. Fear of a catastrophe befalling you or your family. If worrying about death isn’t enough of an inducement, there’s the financial fear of not being able to replace a breadwinner’s salary once they’re gone.

Insurance companies know this, and they use those levers. And they should: Financial peace of mind in the face of loss is exactly what they’re selling.

But some types of life insurance just aren’t worth buying, because the policies aren’t used often and don’t provide much of a return on the premium. You’re better off putting that money aside in an emergency fund for that rainy day, if it ever happens. Here are five life insurance policies you probably want to think about canceling if you have them:


Read More

6 Estate Planning Moves You Should Make in Your 30s

Family of three with baby having quarrel quarrel over money at home


When you’re in your 30s, planning for your eventual demise is likely to be low on your list of priorities. However, financial experts suggest that this could be the best time to start acting to protect your family and your assets in case the unexpected occurs.

“It is imperative that those in their 30s have their estate plans in order, because they have as much to lose as their elders — in fact, sometimes more,” says Dan White, owner of Dan White & Associates in Glen Mills, Pennsylvania. “You may be just settling down and getting married, purchasing your first home, and, most important, starting a family, which will now need to be protected.”

To get started, experts recommend meeting with an attorney and financial adviser to put the following elements in place:


Read More

Tycoon Got $201 Million In Life Insurance. What Do You Need?

BDX3K5 Depressed mature business man in failure depressed life insurance thinking about death dying unhealthy stress stressed es


Life insurance plays a valuable role in helping protect families from the financial impacts of an unexpected tragedy. For one billionaire, that was so attractive that it led to the biggest life insurance policy ever written. According to a CNBC report, an unnamed Silicon Valley tech tycoon bought the record-setting policy with a death benefit of $201 million, which required 19 insurance companies to participate in order to spread the risk.

You face some of the same financial risks — albeit on a smaller scale — that inspired this single entrepreneur to buy that policy. Here are four tips to make sure you choose the right life-insurance protection.

Consider the Long Run In Choosing Policy Size

Life insurance isn’t just something you buy for today...

Read More