How much life insurance will your family need?

It’s easy to think that just because you have life insurance, that you have enough life insurance. However that couldn’t be further from the truth, life insurance is a very dynamic thing, just like our lives it should change as our life events change.

Today I’m not going to talk about what life insurance is, Here you can read a complete post all about term life insuranceInstead, I’m going to cover how to figure out how much life insurance you will need.

Before you start looking for life insurance quotes, you should determine how much debt you have and how much debt your future self may have. Are you guys planning for kids? Are you going to be purchasing a new home? Will your kids be going to college soon? Will you be getting married? All of these factors will change the determination of how much life insurance your family needs if you pass away.

To figure out how much coverage you should purchase, you need to do a complete audit of your everyday life which will help you figure out how much coverage you need.

I always recommend that my clients purchase at least 20 times their annual income in life insurance. The reason for this is because if your family is living on a $50,000 annual income and you pass away, that’s $50,000 a year gone immediately.

The insurance industry usually recommends that you only purchased 10 times your annual income. At $50,000 a year that will put you at around $500,000 in life insurance, that sounds like a great amount of coverage. However, the issue is that it only gives your family 10 years of income. It doesn’t account for paying off a home, paying off any additional debt, final expenses, or affording your children the ability to go to college.

At 20 times your annual income you would be leaving your family $1,000,000 in coverage. That would be more than enough to cover your home, allow your family to put some money away for savings, and also assist with paying for your children’s College. It would give your spouse the time to prepare for a new type of financial situation; like will they have to start working or how to deal with one income.

Your current age is going to play a significant factor in the amount of coverage you have as well. You want to make sure that you have a substantial amount of coverage when you’re younger because you’re going to have more debt when you’re younger. It’s always best to try to go for a 30-year term option if you’re under 50 years old. if you’re over 50, go for a 20-year term because it is going to be the most extended term available for your age.

You also want to be mindful to look for the most affordable rates when purchasing life insurance. You want to get the maximum amount of coverage whenever you’re looking to purchase coverage.

Make sure that you look at multiple quotes and make sure that you’re dealing with A rated insurance carriers.

Remember, life insurance is not for you it is for those that you leave behind.

So when you’re determining the amount of coverage you need, make sure it’s enough to cover your family not just for the immediate but also for the long-term.

Don’t Leave Your Loved One With An Empty Bag

Dying is inevitable, we’re all going to leave this earth one day. The sad part is, how we go is not up to us. We all hope we would take our final breaths surrounded by our loved one. However, this isn’t always the case, and for the majority of people, this will come true when their time comes. So before it gets to this kind of stage surely, we’d all like to make sure we don’t leave our loved ones with an empty bag. In this sense planning is the holy grail and nothing will substitute it. It isn’t as easy as we see in the movies when it comes to carving up our possessions and making everything clean-cut for the lawyers and such. Real life comes at your fast, and from angles, you sometimes can’t see. So you must be prepared to ride through the legal maze and not get lost. If you make a mistake here, there’s a big chance you could end up giving your friends and family the short end of the stick.

Who were your real friends

It’s a complicated question that buries itself back in our psyche. Can friends that aren’t our blood relatives be treated as such? Life is amazing, and in it, you meet people who you would be proud to call your brother or sister. But how much do they mean to you and do they deserve to be on the same level as your family? A clear conscious would say only the very few who have been with you through thick and thin. But you run into a conundrum because you’d like some things to be given to them if you pass away before they do. However certain things need to stay within the family such as items of sentimental value and property. However, you can give your friends cash lump sums and even other things like cars and music albums. Be mindful however that you do not cause conflict with them and your family who think they were owed what you left your friends. Have a conversation with both parties before writing anything into legal certainty.

Bypassing the banks

When you do pass away, the biggest gift you can give your children and other family members including your spouse, is the will that leaves them the property. It’s a popular belief but wrong, to think you need a bank’s authority to make this kind of large-scale transaction. Contrary to what the social consensus might be, you don’t need probate to take to your bank in order to secure the financial legalities. If you have a small state that you want to give to your loved ones and it’s of a value that’s under $150,000 you can utilize one of the methods that are an alternative to probate. For example if you had around $100,000 in a bank account but there was no beneficiary stated in the account but you did state them in the will you wrote, the firm will prepare the individual to execute an affidavit that will force the bank to release the funds to the person you solely named in the will. It’s a commonplace to think you need the bank but it’s just not true, only for higher amounts will the bank need proper sign off that legally satisfies them according to their policies. For smaller amounts, you can bypass the banks and make sure the money gets to the right person.

Inheritance laws

When leaving behind a large cash lump sum or an estate, one thing you’ll need to check before signing anything off on your will is the inheritance tax. This tax varies greatly among countries, states and sometimes regions. Put simply what this tax does is take a certain percentage of the money and value of the property that you are leaving behind for family members. There are thresholds with different values and circumstances. Much like the tax bracket, this tax behaves in a tiered response. It’s wise to check what bracket you fall under before you make the true estimate of what your wealth truly amounts to. Inheritance tax will also come with its own laws such as the rights of a particular person such as the spouse. However, if you have children, you can set your preference to be them first rather than your martial companion.

Of course, it goes without saying that planning is the end all be all when it comes to formulating a will. However laws change all the time, and this is why you need to make sure you are taking advantage of loopholes and technicalities wherever you can. It’s not like you’re cheating, you just want to give the best of your life to the people you love and not leave them holding an empty bag.

Saving Money when Revving n’ Riding your Motorcycle

Nobody said that having a motorcycle would be cheap, but did they say that it would be this expensive? Probably not. If you want to try and save money by riding your motorcycle or if you just can’t keep putting as much fuel in then there are a couple of things that you can do about this.

Make your Money Go Further

Motorcycles are known for having great mileage and this is especially the case when you compare them to cars. You probably don’t feel this way because you have picked up some bad habits over the years and this is completely normal. After all, nothing quite compares to hitting the gas hard before you shift up. There’s something about it that is so dramatic and it makes you feel as though you are right out of a Tom Cruise movie. The problem is that this is costing you way more fuel than you’d like, and if you stop right before you reach the lights then this could cause you to have an accident as well. If you have been in an accident, Lane & Lane could help you. Their website has everything you need to know about making a claim.

Gear Up

Did you know that the human body is made up of 60% water? Did you also know that a brick wall is made up of over 90% brick? When you put the two together you’ll quickly see what happens when an unstoppable force hits an immobile object. Motorcycle gear is required for this very reason but that doesn’t mean that you can’t save money. There are plenty of sales on motorcycle gear, and the only thing that you shouldn’t buy second-hand is the helmet.

Be a Wolf

If you only believe what you want to hear, then you’re a sucker. If you take your own path and do your research then this can save you hundreds in the future. You need to know who is able to give you the best rate for your motorcycle insurance and you also need to know everything there is to know about licensing as well. Don’t spend your life always listening to what other people have to say and go out of your way to educate yourself. You also need to make sure that you do everything you can to be aware of the various pitfalls of buying a bike as well, as this can make all the difference to the cost of running your bike. Being a sheep here won’t help you at all, so don’t follow the crowd and always make sure that you go with your gut instinct when making decisions.

Stay Classy

You may want the biggest and shiniest bike out there, but is that really going to do you any favours? Probably not. You’ll end up spending more on your insurance and you may also end up paying more in fuel as well. Think ahead and make sure that you aren’t going for the flashiest bike on the market if it means that it will cost you more in the long-run. Instead, you can easily find a bike that is just as good but with a good fuel economy. After all, there’s a difference between classy and flashy.