What is most important in your life? The answers vary from person to person. People encounter financial milestones throughout life—buying a house, paying for college, etc. Most people say their loved ones and health or well-being are the most important things in their life. If you are the primary provider for your family, you are your family’s biggest asset. Though human life is invaluable, you can assign a monetary amount to it through the purchase of life insurance. Life insurance can be an important tool in your investment arsenal to build or transfer wealth. Depending on the type of life insurance you choose, you may be able to access your money early—through a partial settlement or accrued cash value—or you can ensure your beneficiaries continue living a good life if something unexpectedly happens to you.

Two of the most common reasons people buy life insurance are:

• You may die too soon or
• You may live too long

However, many don’t consider the purchase of life insurance as a way to make more money, build wealth and transfer wealth. Let’s learn more about this interesting aspect of creating financial security.

Building Wealth

Do you consider yourself wealthy? How long would it take for you to acquire your desired level of wealth? Financial health and wealth creation are reasonable life goals. However, to reach such goals, you need to define what wealth means to you. It may mean different things to different people. Some people say the meaning of wealth is to have enough to fulfill all their needs and meet financial aspirations. Some people want to be a billionaire by the time they are 40 years old while others want enough money to travel worldwide.

Building wealth is a long-term activity that requires setting goals and careful planning and effort from you. Do not be discouraged if you are older; there are many life insurance products that offer simplified underwriting, meaning there is no physical or blood work required.

Reasons to use Life Insurance for Wealth Creation

Life insurance can help in wealth building either directly by giving you access to immediate money or by allowing you to save money. Both are equally important for consistent wealth creation.

There are two types of life insurance: permanent life and term life. Term life insurance has cheaper premium payments and lasts for a specified period (the term). When that term is up, you may usually be eligible to reapply for coverage, however the premiums most likely will be higher, as you will be older. Permanent life insurance never expires and it has a death benefit for your beneficiaries. Importantly, it builds cash value that you can use during your lifetime.

• You have worked hard for your money and investments. When you die, some of your wealth may be lost due to taxes. The proceeds of life insurance can be passed on to your spouse, partner or children completely tax-free. This can help your family reap the benefits of your good financial decisions.
• In case of an untimely death, there could be debts yet to be settled. Hard-earned money and savings may have to be diverted towards clearing that debt. By purchasing a life insurance policy, you can ensure that all debts are paid off without causing financial hardship to your family.

Life Insurance as a Wealth Benefit

You may be surprised to learn that life insurance is a fast and great way to build wealth compared to other investment vehicle. Everyone has different levels of risk and goals; you must consider yours carefully. If you have trouble understanding insurance terminology our life insurance agents are here to answer your questions. Some of the benefits of life insurance include:

• It is a great asset in any portfolio, especially if you want diversification.
• It can provide a steady income in retirement.
• Death benefit is tax-free to your beneficiaries.
• Dependent on the type of permanent life insurance policy you select, your accrued cash value may not subject to market losses.
• If you are self-employed, this makes it easier for you to invest.

One of the biggest advantages of life insurance is that with the right policy, you get access to a portion of your invested money during your lifetime to pay for assisted living or care expenses you may encounter. This helps to protect your other investments, like your house, you have worked so hard to build. You can also create and save your wealth for your loved ones.

Choose the Right Life Insurance

Life insurance is a popular way to increase after-tax wealth and a chance to pass on more money to heirs. However, it is of extreme importance to select the right policy. Spend some time finding the most suitable option. If you want more flexibility in paying the premium or want the money to be invested in specific assets, there are many choices available in the market.

If you are just starting out with wealth planning and building, just understand it takes continuous and consistent efforts but it will pay off. Using the right strategy and planning, it is possible to build substantial wealth fast. Life insurance is a great way to do this and offers many advantages. It not only provides life coverage but also provides tax-free death benefits. Let our team of advisors help you build wealth with the right life insurance product.

You must have heard about Final Expense Insurance, but do you know its role? This insurance plan is designed to financially protect your family in times of sudden death. While your loved ones are already upset about your death, you would never want them to be burdened by debt payments or huge expenses. So, here is why it is important to have a final expense insurance policy.

Here are 5 reasons you why you really need to consider getting a final expense insurance plan.

Funeral Expenses

As the name says, Final Expense Insurance is intended to pay for funeral arrangements and burial expenses. Facts state that funeral costs range from$7,000 to $12,000. Also, when you purchase final expense insurance, you can take responsibility for how your funeral will take place. You may have preferences regarding your burial. Hence, this policy is very helpful in supporting your burial and funeral choices.

Multiple Uses

The best thing about final expense insurance is that when you purchase it, your family is not restricted to use it only for your burial or funeral costs. Instead, the lump sum amount that your loved ones receive after you pass away can be used for multiple reasons.

For instance, if you have any outstanding medical bills at the time of demise, your family will have a solution to pay it. Also, you can use the funds to pay off any credit card or loan payments. The insurance amount paid at the time of the policyholder’s death serves as life-saving. Your family will be saved from any further stress or grief, as they have sufficient financial support.

Have you ever thought that being the breadwinner of your family if you pass away suddenly, what will your family do? Thus, the flexible terms of the final expense insurance make it the best choice to save for unexpected times.

If you are operating a business in partnership, you can manage business risks with final expense insurance. Unfortunately, if something happens to your business partner, you will have the money to purchase his shares without selling out the venture.

Paying Estate Taxes

Recent changes in estate tax law suggest that if the value of your estate exceeds $11.5 million for an individual or $23.16 million for couples, the extra value is taxable. Therefore, the death benefit gained from the final expense insurance can be used to pay estate taxes instead of selling your assets.

Gift for Your Loved Ones

You can also gift a portion of the final expense death benefit to anyone you love. After paying the funeral cost, the remaining amount is a bonus that you can relegate any way you wish.

Easy to Apply

Another great advantage of final expense insurance is that it is very easy to access. You can choose any amount policy you wish to. We represent many insurance providers that can match your expectations and needs.

 

Many think financial freedom is something that cannot be achieved. This belief is so deep the whole concept of being financially free simply feels like an illusion. Most have totally given up on the idea and the phrase ‘financial freedom’ is not even in their vocabulary! Achieving financial freedom by following three simple rules will put you on the road to financial stability.

Rule Number 1: Never Live Above Your Means

Living above your means is one of the main reasons many never realize financial stability. Living above your means indicates you are spending more than you are earning. In the long run, you could end up dead broke; no savings and you are most likely living paycheck to paycheck. Try and live below your means. Look at what you are spending money on. Some of life’s luxuries you are indulging in can probably be eliminated. Look closely at what you are spending money on and figure out what you can get rid of yet still live comfortably. For example, are you using Uber, other ride-share apps or taxicabs excessively? Perhaps you can look at public transportation or carpool options. Have you considered walking or even biking? You could realize significant savings. Creating a budget is the best way to see where your money is going.

Rule Number 2: Save and Invest Whatever Remains

Once you have identified where you can eliminate or greatly reduce spending, take those funds and invest them—no matter the amount! There are various saving options offered by banks, such as interest-bearing accounts. An interest-bearing account, e.g., certificates of deposit (CDs), is one in which the bank pays you interest (money) based on a percentage of your account balance. Take a good look at your banking institution to see if they offer these types of accounts. Saving is one of the wisest things one can do. It is important to think of the future and not just today. Look for a savings arrangement you can live with and start now to grow your money.

Rule Number 3: Continuously Improve on Rules 1 and 2

It is easy for one to plan to save or minimize his or her expenses. The problem is after a few months or so, old habits return. Make sure you don’t fall into this trap. Keep looking at ways to reduce your spending and increase your savings weekly. If you need help, Google search articles or books about money and you can always reach out and talk to a financial professional.

Being healthy is very important and preventing debt stress can be a factor in contributing to good health. Anything you can do to help keep yourself healthy should be your top priority. Exercising and eating nutritional foods, along with possible meditation or other means to help relieve you of daily stresses that may be bogging you down can help make a difference in how you feel. Creating a budget is key to dramatically improving any debt issues to help with stress reduction. A survey by Credit.com revealed nearly 27% of Americans don’t think they need a budget.

Figuring out a budget is something most have difficulty with. The key to achieving debt relief lies in creating and managing a well-balanced budget. Getting into the habit of following a budget first weekly or monthly—your choice—is undoubtedly the best way to improve your debt condition.

Start thinking about how to manage your money properly. You want to be consistent in sticking with a budget—one that is realistic for you. Doing so will drastically pay off for you down the road. You will finally release some of the stress to help you enjoy your life fully, without the worries of feeling overloaded with debt over debt.

Having a budget makes it possible for you to recognize you can do more than just survive month to month. Even better, you will find ways to have a little bit of extra money each and every month! How fabulous would that be? Now is the time to stop feeling overwhelmed and exhausted from thinking about your debt. Carve out some time from your hectic schedule to sit down to work on this. Let’s get you on the road to fixing your debt problems instead of thinking it will just go away. Take a deep breath and just follow these 3 easy steps to get started! We created an easy to use spreadsheet to get you started. (Here is a PDF version if you don’t have spreadsheet software.)

Step 1 – Make a list of monthly expenses

The first step is to list all of your expenses. There are two types of expenses fixed—stays the same monthly and variable—changes month to month. Fixed expenses include rent, childcare, health insurance and the cable bill; variable expenses can be the grocery bill and the amount you spend on gas for the car. The quickest way to compile your monthly expenses is to look at your debit card or bank statements! Create buckets for your expenses: “Eating Out,” “Rent,” “Travel,” “Clothes Shopping,” etc. Create a 3-month history to get a realistic picture of your spending habits.

Step 2 – Determine your income

Look at what you are paid after taxes. If your income varies weekly, it is fine to average what you are paid on a monthly basis. Be sure to include any other income, e.g., alimony, your side hustle and rental income.

Step 3 – Calculate the difference

Take the total of your monthly expenses, fixed and variable, and subtract this number from your total monthly income. If you have a negative number, this shows your expenses are more than your income. If so, start looking at how you can trim expenses—maybe eat out less? Take public transportation to work instead of driving? Perhaps it is time to ask for that raise at work? Start that side hustle you keep putting off? Keep looking at your expenses to see what can be reduced or even eliminated. Consolidating your bills each month makes it possible to help save money too.

If the difference is positive, congratulations! Is that amount consistent month to month? Once you have the answer, you want to look for ways to make this money work for you. Start out by looking at your budget every 2 weeks until it becomes a habit. Think about automatically diverting that money into an interest-bearing account to avoid the temptation of frivolous spending. Consider buying insurance to make protect your life; to supplement your retirement; or to build up and pass on wealth to your loved ones.

Don’t let debt become your worst enemy. Eliminate this area of stress in your life by following these 3 easy steps to building a budget. Teach your young ones at an early age the value of money by teaching them how to follow a budget.

The coronavirus pandemic is disrupting every aspect of life including exercise routines. You know the adage Healthy Mind, Healthy Body. Now, it is even more important to maintain health, to keep your weight in check, support mental health through stress reduction and improve your quality of sleep. Maintaining regular exercise results in several benefits:

1. Exercise helps free up your mind. Something as simple as going outside and taking a walk, where you stay at least 6 feet away from others, can be a great, safe way to stay healthy. (The CDC recommends wearing cloth face coverings in public settings.) If your schedule allows, try to exercise early in the morning. Even if you just work out on the treadmill for 15 minutes in the morning, you will feel rejuvenated. This gives you time to think, to plan out your day, which is very important.
2. These times may have you drinking more alcohol. Consider doing some moderate-to-vigorous physical activity; it has been shown to help reduce the use of alcohol and other substances.
3. Another very important benefit of regular exercise is that it helps keep diseases at bay. While the blood is pumping throughout the body, you are also rejuvenating your immune system—physical activity releases endorphins, chemicals in your brain, which revitalize your mind and body. You not only are healthier in body but also in mind—helping you to think better.

These are just three of the many benefits that regular exercise provides. Invest a small portion of your time to exercise—especially during these unprecedented times, you cannot afford to downplay its importance in your life.

There are many ways to combat stress, which is known to affect the mental health and well-being of individuals. According to the United States National Institute of Mental Health, “stress is how the brain and body respond to any demand. Any type of challenge—such as performance at work or school, a significant life change, or a traumatic event…” Undoubtedly, the COVID-19 pandemic has disrupted the lives of all Americans. An American Psychological Association survey reported “70% of adults in the United States say they feel stress or anxiety daily.”

There are numerous benefits to reducing and managing stress. Mindfulness, which has been studied for many years, is one method that has been shown to support physical and mental health resulting in stress reduction. Daily, we are pulled in many directions with work, family and school. Learning how to build mindfulness into your everyday life doesn’t have take a lot of time. Starting a mindful practice for even 5 minutes a day can help you avoid feeling overwhelmed or overly reactive to certain situations or events.

What is mindfulness? It can be summed up as having an awareness and focus on now—this present moment; Greater Good Magazine offers a detailed definition. Practicing mindfulness can be accomplished in many ways. We have outlined some steps and tips, curated from 5 articles, to guide you towards reaping and understanding the benefits of adopting a mindfulness practice. These benefits include the ability to strengthen your memory; to help reduce pain; to improve sleep; to create thinking flexibly; and to help weaken prejudices. Maintaining a mindful meditation practice has also been proven to restructure or affect the architecture of the brain. This causes stress reduction; increased focus; reduced emotional reaction; enhanced intuition as well as many health benefits that range from better immune function to higher brain functioning.

Mindful Seeing

Mindful seeing encourages visualization for a healthy imagination by simply looking out a window with a view. PositivePsychology.com details the steps for mindful seeing (and 21 more mindfulness exercises, activities and techniques) as:

Step 1: find a space at a window where there are sights to be seen outside;

Step 2: look at everything there is to see. Avoid labeling and categorizing what you see outside the window; instead of thinking “bird” or “stop sign,” try to notice the colors, the patterns, or the textures;

Step 3: pay attention to the movement of the grass or leaves in the breeze. Notice the many different shapes present in this small segment of the world you can see. Try to see the world outside the window from the perspective of someone unfamiliar with these sights;

Step 4: be observant, but not critical. Be aware, but not fixated;

Step 5: if you become distracted, gently pull your mind away from those thoughts and notice a color or shape again to put you back in the right frame of mind.

Practice Mindfulness at Work

Forbes offers 4 great tips that are easy to put into practice while at work, including picking a mantra or positive message to repeat to yourself throughout the day.

Ready to get started? There’s no better way to stay in this present moment using mindfulness techniques to help reduce stress and improve your health.