Limited Pay Life Insurance – The Basics

Today let’s take a look at limited pay life insurance policies. What are they, how do they differ from other standard life insurance policies? What are the pros and cons, and where can one seek out such policies.

What does limited pay life insurance mean?

One of the concerns a lot of people have when considering taking out a life insurance policy is a worry that failure to pay a premium in the unpredictable future will result in the laps of the policy, in which case all benefits of the policy automatically fall away.

The limited pay life insurance product is an effective way to deal with this concern.

A limited pay whole life insurance policy is what it appears to be. Under such a policy, you are required to pay premiums for a prescribed limited period or until you reach a certain age. Once the period or the age has been reached, you are no longer required to pay premiums.

However, unlike with term insurance, you will still get the benefit of both the death benefit and the cash value component until the time of your death. In essence, the risk due to non-payment of a premium is shortened to a specific period or event

The main takeaways for limited pay life insurance policies

Three main takeaways here.

Firstly, you pay premiums to a specific date or event, after which you no longer have to pay the premiums for the insurance benefits to continue.

Secondly, there is a high cash growth rate early on, which may interest you financially.

Thirdly, the policy remains active until you die, meaning you provide for the beneficiaries long after paying your last premium.

So what is the catch?

It stands to reason that, since you are paying premiums for a limited period, not for your whole life until the day you die, the insurance cost will be more. And indeed, it is.

However, you can reduce the additional expense by electing to lower the amount of your death benefit, which will result in a lower premium.

You could also consider extending the period, reducing the monthly premium.

Important things to know

Typical payment terms are ten years, 20 years, or payment until you reach the age of 65.

Remember that the shorter the period of payment, the higher the premium, but on the other side of the coin, the faster the cash value accrues.

It is vital to shop around for the best rates from companies that offer limited pay life insurance.

Death benefits to your beneficiaries pass to them tax-free.

Some limited pay policies include dividend payouts – speak to your broker.

There are different options for premium payments. These range from monthly to semi-annually to annually, so you can make the right choice for your circumstances and needs.

The growth of the cash component of these policies is tax-deferred, providing you with another excellent tax advantage.

If you decide to consider taking out insurance, do your homework. There is a wealth of information on the internet. Then do yourself a favor and see a broker. They will answer any questions and put together a customized insurance product for you.

4 Tips to Buying a Home This Market Cycle

The current market cycle for residential housing is not being kind to buyers. Inventory is tight, and prices are rising dramatically. It might seem like a seller's market, but many potential sellers are sitting things out for fear of not finding their next home if they sell their current one. 

If you want to make anything good happen, you need effective tips for buying a home in this particular market cycle.

Be Ready to Pounce

The few homes hitting the market right now are sometimes being bought the very same day they go on the market. Even though this can be such a huge decision, you have to be ready to leap at any good opportunity and seize the moment. 

That's because such moments aren't happening very much right now, so be ready when yours presents itself to you.

Get Preapproved

Find a mortgage broker who can help you get a letter of preapproval. You'll be able to start looking for homes knowing how much you can actually borrow against your assets, credit, and income. 

That helps you avoid anything you won't be able to actually afford later. For that matter, many sellers prefer selling to someone with a preapproval since they won't be declined for their mortgage and see the deal fall apart.

Leave Wiggle Room

Even if you're preapproved for $500,000 for your mortgage, you might not want to start making offers on homes with that value. 

Many homes are getting hit with multiple offers that result in bidding wars. You'll need to leave yourself some room to run up your offer in such a case or you'll never wind up landing a competitive bid.

Focus on Potential

You want the perfect home. In fact, you deserve the perfect home for yourself and your family. However, you might not find it. What you need is to find what could be the perfect home. Emphasize location and potential. 

You'll have an easier time finding a home that you can make your own after home improvements than finding a home that's turnkey to your specific liking.

Things Are Tight But Not Dead

Limited inventory and skyrocketing prices might make the possibility of current homeownership seem remote. However, transactions are still taking place. 

These tips might just help you be one of the lucky few to buy a home, even in the midst of this hectic market cycle.

At the end of the day, the best thing to do is to stay within your budget, be patient but don’t let a good deal slip through your fingers, and soon enough you will find the home you are looking for. 

Take advantage of your realtor if you are using one. Yes, they get a commission, but they are working for you nonetheless.

How Much Should You Budget For Seasonal Pest Control?

Suppose you've looked around your home or business and seen a few too many ants, spiders, mosquitoes, or other pests that can cause inconveniences and even health problems. In that case, you may be thinking it's time to call in professional pest control experts. 

While they can likely solve your problem, you'll also have to pay for their services. If you're wondering how much to budget for seasonal pest control, here are some factors to keep in mind.

How Often Do You Need Pest Control Treatments?

First of all, you'll need to decide how frequently your home or business will need pest control treatments. For example, suppose your problem can be taken care of in one visit. In that case, you should budget between $300-$500 since a technician must spend time investigating and diagnosing the problem and providing treatment. 

Whether you’ve had past issues or want to prevent problems in the first place, regular pest control is essential for protecting your home and family. But knowing when to do it is just as important. 

Size of Your Property

If you have a smaller home or building for your business, you usually expect to pay less for pest control services. 

In most cases, an effective pest control management plan involves treating areas inside a home or business and around its outside perimeter. You can visit a site like https://www.pestcontrolexperts.com/aptive/iowa/ to connect with pest control experts who can create a comprehensive strategy tailored to your property's needs.

Should you opt for monthly, bi-monthly, or quarterly pest control treatment, expect to pay as little as $40 for monthly treatments to possibly $100 or more for quarterly treatments.

What Types of Pests Are Involved?

Since different pests call for different types of treatments, this will factor into how much you spend. If mosquitoes are your biggest problem, a reasonable amount of money you can expect to pay for these services can range from $100-$500, depending on your problem's extent and the type of treatment plan you select. 

Scorpions, for example, tend to be more expensive and require additional work for pest control companies to handle so consider reaching out to your local pest control pros for details. 

Pros like Skeeter Beater, for example, can share their prices and often bundle different types of pests. Whatever company you go through, consider asking for discounts with annual contracts.

The Type of Treatment Used

As the pest control industry has evolved over the years, much more emphasis is placed on using pest control treatment products that are more environmentally friendly and safe around children and pets. 

Since you will likely want these used in your home or business, you should budget a bit more to pay for these treatments since, in most cases, they cost more than traditional pest control methods.

While you may have to adjust your budget slightly to pay for pest control services, most are affordable to almost anyone. Whether its ants, mosquitoes, or wasps that just won't go away, calling on experts to provide seasonal pest control will soon have your home or business pest-free.

Should You Install a Home Security System?

Many people today are more concerned with home security than ever. In addition to getting a dog or adding more outdoor lighting for protection, some are investing in a home security system.

Here are some of the benefits of installing technical security devices where you live.

Keep Intruders Away

Posting security program signs in your yard and windows is often enough to deter a break-in. Thieves and other miscreants are looking for an easy target. 

They will go out of their way to avoid a home that has professional surveillance, alarms, and notification to authorities of suspicious activity around the home. 

Post the signs and warnings where they can easily be seen by someone who may be planning to break into your home.

Added Protection

Even if you have a dog that will bark at unusual noises or people outside your home, a security system reinforces the protection you already have. 

If someone does try to break in, they will likely be scared away by the loud alarm and knowing that local police are being alerted to their presence. 

Not knowing exactly how the alarm system works, whether by motion or sound, for example, may help to discourage potential criminals from trying to enter your home.

Homeowner Insurance Discount

Many insurers offer a home insurance discount for professional security systems. A system that can deter or quickly catch someone trying to get into your home to damage or loot the contents helps to prevent criminal activity and insurance losses. 

Ask your insurer if installed security devices can lower your home insurance policy premiums. Some premium reductions may depend on whether the alarm connects to a live monitoring station or direct reports to the local police station for immediate emergency response.

Peace of Mind

For your own peace of mind in protecting your loved ones and your belongings, a home security system can help you feel more comfortable about traveling away from home. 

Video feeds on some systems can show you who is at your front door even when you are not home. You can speak to anyone who is there, and that person will not know if you are home or not. 

When you are at home, you have the comfort of knowing your house is protected by a sensitive alarm system that can frighten a burglar away and help to keep you safe.

If you are concerned about possible property damage or robberies in your area, consider getting a security system that can help to keep trouble away.

Tricks That Can Help You Climb Out of the Bad Credit Hole

Bad credit can hold you back from doing things like buying a car or house or renting a house. It can even affect what kind of jobs you’ll likely be able to get. 

However, having bad credit isn’t the end of the world. You can still fix it. If you have found yourself in a bad credit hole, you can climb out of it by utilizing the following tricks.

Pay More Than the Minimum on Your Credit Cards

Maxing out your credit cards can really tank your credit score. Ideally, you want to utilize less than 30 percent of your available credit. You can improve your credit by paying more than the minimum payment on your credit cards each month. 

This will allow you to pay them down faster and lower your utilization overall. Even paying a few extra dollars each month can help you pay off this debt a lot faster.

Get a Part-time Job

It’s not uncommon for many individuals to not have any extra money left over that they can use to pay off some of their debt. If all your money is going towards bills, then you may want to consider getting a part-time job. 

By working just a few hours a week, you can earn the money that you need to get out of debt a lot faster than you would have otherwise.

Negotiate With Debt Collectors

If you aren’t able to pay your debt for several months, those that you owe may seek the assistance of a debt collector in order to try to collect the money that you owe them. 

While it can be scary to get a notice in the mail that a debt collector is now handling your debt, you may find that they are willing to work with you. 

Many debt collectors will allow you to make payments on your debt for an extended period of time. If you have a lump sum of money available, you may be able to settle your debt for a fraction of what you owe them.

Seek Credit Repair Services

It can be difficult to repair your credit on your own. This is why many individuals seek credit repair services. They can look at your circumstances and credit profile to give you specific advice as to how you can climb out of the bad credit hole.

Bad credit may feel insurmountable, but there are plenty of things that you can do to climb out of this hole. Though it’s easy to be overwhelmed and to try to ignore your debt, it’s important that you deal with it and that you commit to paying it off no matter how long it will take. Once you pay off your debt, you’ll see your credit steadily grow over time.

Tips for Determining When You're Ready to Retire

It is difficult to determine the ripe time for retirement because there is no standard measure. Readiness to some people is reaching a certain age while others set goals like saving a million to use or invest after retirement. However, the issues below can help to determine if you are ready for retirement.

Guaranteed Income

A guarantee of income ends with retirement because you will no longer receive a paycheck each month. There might be some pension, but it is essential to identify expenses likely to be there every month after retirement. Cover the basic needs like food, housing, insurance, medical, and transport costs.

Track the amount you currently spend if you cannot estimate future expenditures. Add up the expenses to determine the retirement income you require to cover your needs. 

Weight the expenses against the period that the current income plan is likely to last and the additional income you will need. Income planning involves setting up sources of additional regular income sources to boost pension or other retirement funds. You are ready to retire if assured of enough income to cater to your needs each month.

Lack of Debt

Carrying debts to retirement is not ideal. Research shows seniors face more financial insecurity when they retire with enormous debts like a mortgage. 

An important thing when preparing for retirement is to prioritize paying debts, so that much of your retirement income caters to your needs. That means you pay off the highest-cost debts even as you set money aside for retirement.

A car, student, or home loan without a salary will reduce the income stream and burden you with a responsibility to continue paying. A debt-free status is one of the tips for determining when one is ready to retire. 

You can still retire before paying all debts to ensure you have paid high-interest debts like credit card expenses or student loans and a practical plan to pay others without straining.

Having Reliable Health Insurance

Employer-funded insurance ends with retirement. You should have health coverage from private insurers. The premium goes up with age, but it is worth the payment because many health conditions start cropping up at this time. 

Personal health cover saves you from paying much out of the pocket to cater for medical expenses that public health insurance like Medicare will not cover. It is even safer to add specialized illness and life insurance.

Financial stability is an indicator of readiness for retirement, but it is also crucial to prepare mentally by having another engaging activity in place and a social network outside employment. It helps in transitioning to a new life without feeling as if retirement was a bad thing.