Do You Still Need Your Life Insurance Policy?

If you're like most people, then you purchased a life insurance policy either when you started a family or when you started your first major job. With life insurance, you knew that you could help your family to cover your funeral and medical expenses. You also knew that the insurance could provide income for any spouse or children you left behind.

Now, as you grow older, you may wonder whether you still need life insurance. If you've accumulated enough wealth to take care of those you'd leave behind, then you may be tempted to let your policy lapse. Alternatively, when you don't have many assets, letting your life insurance policy lapse may cause you to lose your most valuable investment. Before getting rid of your life insurance, weigh the current amount of money that you'd save on your premium versus the risk to your dependents and your estate.

How to Know Whether You Should Keep Your Life Insurance

Before you give up your life insurance policy, ask yourself these questions:

1. Does anyone depend on your continued earning capacity? If your loved ones depend on your salary and not on investment income, then they'll need the proceeds from your life insurance to sustain them after you're gone. On the other hand, if no one depends on your income and your medical and funeral expenses are covered, then you can get by without your policy.

2. How much would your beneficiaries need? Add up your employer's life insurance benefit, any pension money your beneficiaries may receive, any money that they may inherit and your Social Security survivors benefit. Then, add up your dependents' income needs and any major future costs, like college tuition. Compare the two totals and decide whether your dependents would have enough to live on without your life insurance benefit.

3. Could your dependents become self-sufficient? If you leave behind young children when you die, then your spouse may not be able to return to full-time work. Also, if you have older children who are in college or that are having difficulty finding jobs after graduation, then they may still need financial support from you. Consider keeping your life insurance policy if any of your adult dependents can't jump right into the workforce.

4. What about probate? Avoid dropping your life insurance if your family wouldn’t be able to cover their expenses while going through a lengthy probate process.

5. How much will your estate owe in terms of debt and taxes? Your family will need enough money to cover any debts and tax payments related to your estate. If you have liquid assets, like securities, certificates of deposit or cash in bank accounts, then they can easily access the money to pay those expenses. However, if they would have to sell an asset like a home or business at a loss to cover debt and tax payments, then you should keep your life insurance.

What If You Need Cash Instead of Insurance?

If you can no longer afford your life insurance premium and find yourself in need of cash after retirement, then you may want to consider a life settlement. In this transaction, you surrender your life insurance policy to a life settlement provider in exchange for payment. The provider then continues to pay your premium and receives the benefit after your death.

Start by contacting your insurance company and letting them know you're interested in a life settlement. Your insurance company will usually contact a life settlement broker, who will forward your request and medical records to a life settlement provider. Underwriters will evaluate your mortality risk so investors can weigh the premium they'll pay during your lifetime against the amount of your death benefit. With life settlement, you'll receive more money than if you allowed your policy to lapse, but you won't get the policy’s full value.

For almost everyone, life insurance is a good investment. Consult a broker to find out whether you should purchase term or whole life insurance. Also, talk to an estate lawyer about how to leave the benefit to your heirs while minimizing tax consequences to your estate.

About the Author: George Thacker writes about personal finance for both print and online publications. He recommends Pacific West Capital Group to people that want to pursue a life settlement.

Image by Stuart Miles from FreeDigitalPhotos.net

Understanding The Finances Surrounding Mental Disorders

Rethink Mental Illness (Photo credit: Wikipedia)

Mental incapacitation, also referred to as mental illness, affects quite a percentage of the world's population; and this brings a finance implication on them and their caretakers. While much stigma surrounds those suffering from these mental conditions, some of the illnesses can be treated or managed, and the ill people enabled to live their lives almost in full. Treatment of mental conditions may require the use of drugs, psychiatric, social support and provision of basic needs, by others.

Causes of Mental Instability

While some illnesses draw their traits down hereditary lines, some may be a result of drug abuse, social trauma, physical conditions and concussions/ brain injuries. Senior citizens may suffer from mental-related illnesses as a result of their advanced age or that, coupled with previous drug addictions or head trauma. For better mental health, care should be taken to address such illnesses whenever symptoms exhibit in a patient, regardless of age.

Common illnesses

Dementia, Alzheimer's disease and Parkinson's disease comprise some of the illnesses that mostly affect senior citizens, and may set on from the age of 50 years. Mentally ill patients may lose their memory from time to time and or permanently, and or lose their ability to coordinate their mortal functions/ movements, in the long run. Temporary and or permanent amnesia (memory loss) may endanger the life of the person or those close to him or her and not to mention it reduces their ability to take care of themselves, at least when they cannot remember much.

Costs associated with mental illnesses in elderly people

Drugs

More often than not, finances towards mental illness treatment go to drugs acquisition and administration. The drugs may be used to calm the mind or boost a sense of well being in the patient. Patients may need the help of drugs to sleep and rest as well as manage anxieties.

Home Health Care

Mental and or psychological illnesses can be permanent or temporary. Permanent illnesses, especially in senior citizens, may require patients to be taken care of at their own or relatives' homes. Having a nurse/ caretaker monitor the patient may proof more cost effective than having that patient hospitalized/ institutionalized. A major advantage of home health care, over a hospitalization/ institutionalization, is that the patient can live close to his/ her loved ones; which makes him/ her feel more loved.

Institutionalization

Some elderly people, with advanced and permanent mental illnesses, may need to be hospitalized; especially when they have no one to take care of them. The government and other institutions may contribute funds towards setting up and running homes for the elderly, especially those suffering mental illnesses. In these homes, the ill elderly receive basic needs, psychiatric help and monitoring to ensure their safety.

Other Indirect Costs

In addition to finances associated with management/ treatment of mental illnesses, such as home health care and drugs, patients might need to change their lifestyle. The lifestyle change may include a change in their diet, physical or mental therapy and lots of sleep among other things. This change may then cost the patient and his/ her family, guardian, government, insurance money in the form of the person needing extra/ special treatment and care.

Mental illnesses such as schizophrenia, dementia, Parkinsonism, depression and Alzheimer's disease comprise some of the mental illnesses that affect a lot of people. Luckily, some can be treated or managed to give the person a dignified life. Finance implications towards treating or managing mental illnesses include money on drugs, therapy lifestyle change and ample rest; which means the person may not be able to work/ continue working, yet need care.

Author Bio
Sarah Daren is a writer who creates informative articles relating to the field of health. In this article, she offers financial tips to those helping others with mental disorders and aims to encourage further study with a USC Online Master of Science in Applied Psychology. 

Can You Afford To Pay For Your Children’s Education?

saving and spending (Photo credit: 401(K) 2013)

University education comes with the cost of thousands of dollars every single year. Though there is funding available for students through the form of traditional loans, more and more parents are creating savings accounts and investment plans to assist their child with the cost of education. 

Can You Afford Your Children's Education?

It's best to start saving as soon as possible to ensure that the children in the family are going to have a university savings account that is going to get them through their education but this isn't always the case.

Consider the costs of the tuition, the supplementary income that the child can contribute while they're going to school and working part time. It's important to assess the budget and determine the monthly amount that can be allocated to the child's university costs. If more than one children are attending university, it's important to consider the costs and how they are going to be divided.

For parents with school aged children and no savings for post-secondary education, consider where you can cut corners now to build the education savings account for future use. Research grants and other types of funding options that can supplement parent savings. 

University Costs -- Not Just Tuition

University education is more than the costs that come with tuition. Additional fees through the university include admission fees, administration fees, fees for books and laboratory time and extracurricular and transportation fees. In addition to the fees that are charged to the student for attending school, students attending university outside of their hometown are charged for room and board while staying on campus and additional living costs if they choose to live off of campus. 

How to Increase Education Savings

Saving early is the best way to get a head start on university costs. For families putting multiple children through university, the costs can add up quickly. Establishing a finance savings program early in life is an effective way for families to assist in the cost of the child's education.

Starting early is easier when a savings program is established and automatic debits are set-up from the account. Choosing the debits at the same time every month and paying yourself first can help to boost these savings.

Take advantage of the grant programs that are available through government programs. These programs contribute a percentage of the amount that has been deposited by the parents into the education savings account. Research the programs to determine the eligibility of the family and determine how to best use the program. Starting early will ensure that you're able to maximize this program as much as possible.

Budget. Find ways to cut the costs of the household finance expenses to find additional room to put away into a monthly savings or education investment account. Something as simple as taking your lunch, or cutting the cable or vacation fund can help to establish and cushion the savings account for post-secondary school.

Ask for help and enlist the students that are going to be attending university to take on part time jobs to help cover the costs of the additional education. In addition to part time income, ask children to research scholarships and grants that are available or determine the loan options available to cover a percentage of the tuition for school.

Finally, consider the options of a local university -- rather than the children attending school in another city or state. Attending a local university can help to save money, as students are able to live at home while attending school, cutting the costs of living expenses and allowing more money to be allocated towards tuition.

Author Bio
Ryan Ayers is a writer who creates informative articles in relation to education. In this article, he offer financial tips to college students and aims to encourage further study through ACU Higher Education Degrees Online. 

5 Tips To Save Money On Medications

Ritalin (Photo credit: Wikipedia)

Many seniors find it difficult to finance everyday living expenses while paying for expensive medication. Even with insurance, some medications can take a chunk out of a senior's budget, leaving him or her to make difficult choices such as cutting back on money for food to pay other bills. However, there are some programs and resources in place that can help a senior to afford medication. Consider the following five tips to save money on medication.

Ask your health care provider for samples if the prescription is new. Sometimes a new medication may have side effects or may not work well in treating a condition. Whenever this happens, the medication usually sits in a medicine cabinet or is discarded, which is a total waste of money. Prescription-drug samples can help you save money while you determine if the medication is effective. If samples are not available, ask the health care provider if he or she can write a partial prescription, which can save some money if you find that the medication does not work as expected.

Talk with your health care provider about special discount cards that will reduce your copay. Some pharmaceutical companies now offer discount cards that will reduce the amount of the copay for brand-name drugs. This is to help brand-name drugs compete with generic drugs, which cost less. If the company offers a discount card there may be limitations since some insurance companies will not approve the use of a discount card with their plans. Generally, a patient must activate the discount card by telephone or online, and the pharmacy will contact the insurance company to verify that the card can be used.

Contact your local agency on aging or similar organization that provides services for older adults. These agencies do not usually pay for medications, but they do employ caseworkers or social workers who are familiar with special programs for older adults. They can inform you of whether there are programs at the state or local level that can provide some financial assistance for medications and help you complete the paperwork to get the process started.

Talk with your health care provider about whether a generic medication will work for you. In some cases generics work as well as over-the-counter medications. However, if your prescriber recommends a brand name drug, it may be because your body will respond better to that specific medication, so spending more for the drug can help your avoid medical issues that could cost you more in the long run.

Purchase a larger supply. Buying a 90-day supply of prescription medications may qualify you for a discount. Some pharmacies and insurance companies offer discounts to those that purchase medications in bulk. Consider using a locally-owned or family-owned pharmacy. They often have some flexibility in the prices they charge and may offer discounts for quantities for regular customers. Another strategy that may help double your supply of medication is pill splitting. If you take a medication that is 20 milligrams, a 40 milligram pill would provide two doses, and the cost may not be much more than the lower dose pills. It should be noted, however, that not all pills are suitable for splitting. Your health care provider will determine whether your pills are appropriate for splitting. Never split a pill without specific directions from your health care provider or pharmacist.

Compare Medicare Part D prescription plans and make changes during the open-enrollment period. By carefully looking at each plan's medication coverage, you might find a plan provides better prescription-drug coverage than your current plan.

It is possible to save money on medication. Think about trying some of these strategies that could help provide the finance you need get your medication.

Author Bio
Sarah Daren is a writer who creates informative articles relating to the field of health. In this article, she offers financial tips to individuals dealing with medical costs and aims to encourage further study through online masters of health law programs.