You may view your life insurance policy as a necessary evil. For years, you have been making your payments relying on your policy’s value to pay for your final bills and support your loved ones after you are gone, but have you considered the value that your life policy holds while you are still alive?
Most policy owners look at their coverage as an asset. A permanent life policy has an investment aspect that allows policy owners to increase the value of their payout over time. The advantage comes when you accumulate enough value that you can borrow against your policy before you die.
With over 70 million Baby Boomers moving through their retirement years, many people are looking for ways to pay for their golden years and special care that may become essential. Let’s take a closer look at a few of the ways you can use your life insurance before you die, like selling your policy to Windsor Life Settlements.
Use Your Cash Value
Your permanent life policy has been accumulating cash value for years thanks to its investment component. Permanent policies can be borrowed from as a source of income for any reason. Although term policies tend to have lower premiums, your benefits will only be paid out after your death. There are several ways that you can tap into the cash value of your permanent life insurance policy.
Sell Your Policy
If you need to access your policy coverage before death to pay for medical bills or senior care, you can sell your policy to a secondary investor. You will be able to receive a lump sum or annuity payments from your policy. Your payout amount is generally a more considerable amount than your policy’s cash value but smaller than your final payout amount. The purchaser will take over the payments for the policy and become the final settlement beneficiary.
If you meet specific requirements, you may qualify to receive up to 50% of your policy payout prior to your death. This benefit will allow you to get the money you need without draining your policy of any final death settlements. You can apply for several different kinds of benefits.
Choosing the right Medicare plan can be an overwhelming task. Missing the enrolment period or committing to the wrong plan for your needs can be a costly mistake.
Time, patience, and some comparison shopping will help you choose the right Medicare package for your needs. Here are five steps to prepare for Medicare.
Know Your Enrolment Period
The first thing to research when preparing for Medicare is your enrolment period. You are eligible for Medicare when you turn 65. However, the enrolment period spans from three months before your 65th birthday, to three months after.
The importance of signing up within the initial enrolment period is that you won't be required to provide additional medical information to enroll. You also avoid late enrolment fees or coverage gaps by signing up within the six-month span surrounding your 65th birthday.
If you miss the enrolment period, there is an open enrolment from January 1st to March 31st each year. You can review your plan and change it during the annual enrolment period from October 15th to December 7th.
Evaluate Current and Future Needs
Once you have clarity surrounding the enrolment period, take some time to evaluate your current and future needs. Original Medicare (Part A and Part B) covers medical visits and hospital stays. Other common costs, such as prescription drugs, dental, and hearing services, fall under Part C and Part D.
You'll also need to look at the out-of-pocket costs and evaluate how your health is changing. While you may not need as much coverage now, it's worth looking into if any concerns could develop over the next year.
Check Your Network Coverage
One of the challenges with choosing a healthcare plan, particularly when enrolling in Medicare, is understanding the network coverage. If you have a preferred family doctor or specialist, confirm that they accept Medicare before enrolling. Many people find out later that their usual care provider isn't covered, costing them thousands of dollars in unexpected medical costs.
If your current medical providers don't accept Medicare, you'll need to set aside time to find new healthcare providers, pharmacies, etc. This isn't generally a concern for Part A and Part B coverage, but can be when looking at supplemental insurance.
Choose the Best Provider
When choosing supplemental Medicare coverage, it's essential to choose the right provider to fit your needs. There are many supplementary providers to choose from, which can be overwhelming. Health has a comprehensive comparison of the top medicare supplement plans to simplify the process.
Some key considerations to keep in mind when choosing a supplementary insurance provider include:
Consider the Costs
Finally, evaluate the costs that will and won't be covered by your insurance provider. Determine whether a high deductible, low premium or low deductible, high premium plan is better for your situation. Generally speaking, a low deductible is better for people with ongoing health issues who require regular treatments. High deductibles are often better for those in good health, with few annual trips to the doctor.
You can also look into a health savings account (HSA) to set aside money for the out-of-pocket costs. The HSA program is for eligible high-deductible plans and can be used toward Medicare premiums. These funds can be used to pay Medicare directly or as a form of reimbursement if your Medicare premiums are deducted from your social security payments.
Give yourself plenty of time to evaluate your options and determine which coverage strategy is right for your needs. If you make the wrong decision or your needs change, you can alter your plan during the annual enrolment period.
There is a relatively new movement for people looking for more control over their lives called FIRE. That stands for Financially Independent/Retire Early. For the first time, people are able to do things differently and live life according to how they see fit and enjoy massive gains as a result.
There has never been a better time to make money than right now and people are taking advantage.
If you are tired of living in the rate race and want to enjoy your life as a whole, then having a FIRE plan is your ticket. In this article, I will give you several ideas that you can use to implement your strategy for financial independence.
1 - Invest
The easiest and most effective way to gain financial independence is to have your money work for you too. If you are thinking you need to work more to make more money, then you need to adjust that thinking.
People get rich not by working more but by working smarter. Look around for wise investment opportunities and take advantage. Start out by getting into cryptocurrency.
Just create bitcoin wallet and start trading some cryptocoins to take advantage of the increasing value of bitcoin these days.
This is the easiest way to invest, but it does carry some risk. If you don’t like the idea of risking your hard earned money and are ok with making less of a return, then parking your money in index funds is a great way to be safe while making money.
You can usually expect to make around 6% per year in index fund returns.
2 - Downsize and live frugally
For regular people, becoming financially independent doesn’t mean living in luxury. It simply means that you can make better decisions because you don’t have to worry about where your money is coming from. In other words, try to live frugally.
Which means that if you set up your life to require less material stuff then you can set yourself up for independence much easier.
Find yourself a small house to live in with less possessions. The tiny house movement is very popular with people in the FIRE club. It saves money on rent or mortgage, on utilities and you are much more aware of spending money and end up buying less.
3 - Start a side hustle
When you are working full time you hit a ceiling with regards to how much you can make. To go beyond that ceiling you need to take on a second income.
This can mean a lot of things like a second job part time or driving for Uber in your spare time. But, the most effective use of your time is to start an online business or job.
If you want to make extra money doing something simple, then you can find plenty of gigs online like data entry or virtual assistant. Or, you can create something that brings in a considerable amount of cash. You can start an ecommerce site in your spare time and it can end up replacing your full time income.
What comes to your mind when you hear the word adulting?
This word made its initial presence around 2008. It refers to indulging in typical tasks for adults, such as holding a stable 9 to 5 job and being responsible for payments and other grown-ups duties.
As terrible as it sounds, adulthood is a terrifying experience indeed. Once you step into it, there is no way out. Aging ought to be a privilege. But life gets complicated and more demanding as we tend to grow up and step into the world of adulthood.
We know that we have one life and, therefore, should live to the fullest. But all of us seek ways to escape from responsibilities.
Now that we are on the same page and agree that adulting is killing all of us. Not to mention the severe impacts of it on health. Let us have a look at the best ways to escape the traps of adulthood.
We never consciously chose to enslave our lives to a 9 to 5 job and work a second shift to pay off loans and mortgages. We humans have been conditioned into ‘adulthood’ so we can become useful participants of society. The majority of us work jobs that we are not even interested in.
This can take a severe impact on your mental, emotional, and physical health. Resultantly, you might experience pangs of burnouts. The importance of financial stability is undeniable. However, it is also essential to take some time off to recharge. The best way to escape adulthood is by diving in and taking full control of your life.
Do what makes you Happy
To break the monotony cycle, we have to bring in some passion and induce a livelier lifestyle. When we talk about escaping adulthood, it does not indicate that you should shun your responsibilities. On the contrary, it means that you fulfill your obligations while taking 100% responsibility for your emotional and mental health. Find what makes you happy. You can do this by looking into yourself and restructure your life while knowing the importance of free-will.
Instead of blaming your spouse, workplace, and other aspects for your unhappiness. Take responsibility and induce specific changes in your life that will lead to happiness. For instance, if you are an avid reader or painter, make sure you take out some time to read and paint every day.
Indulge in Self-Reflection
Real adulthood can make you lose your self-identity. While you face the harsh realities of life and struggle with making money and balancing other responsibilities, you can get overwhelmed with stress and anxiety. This is why adulting demand vigor and courage. You should be resilient enough to maintain your perspective. This can be done by taking a mental break and getting your Zen mode on. Meditation is right for your mind and body. It also gives you some ‘me time’ to question your beliefs and find your true self.
Taking some time off and indulging in self-reflection will also make you evaluate your job, lifestyle habits, relationships, and other life choices earnestly. Letting go of stressful patterns is never easy. It takes courage and mental toughness to start a new chapter in life. Be the creator of your life and break free from the shackles of adulting. Live a life that makes you feel passionate and alive. Set your soul on fire by finding your passion. You can set up long-term and short-term goals and work on the daily. A tiny change made every day can benefit you a lifetime and change your world for the better.
Adulting is not as bad. The key is to do it the right way!
If there’s one truth about pensions, it’s that they rarely seem to go quite as far as you thought they would when you first looked at your retirement planning. Back then, you may have had visions of travelling the world and enjoying a laid-back lifestyle. Is it out of reach now? Maybe not!
Many pensioners live abroad for at least part of the year, and apart from fulfilling their dreams of international travel, they’re also making their pension go further thanks to a lower cost of living. Of course, you will have to do some preparation before heading off on adventure - for instance, you need to check whether you have international health insurance before taking the plunge. But with basics taken care of, the world could be your oyster.
Discovering which countries will deliver a great lifestyle that’s also low-cost means doing your homework. Wondering where to start looking? These three countries are popular with pensioners for all the right reasons.
Portugal proves the point that living abroad to make your pension go further doesn’t mean leaving civilization behind you. This Western European country is renowned for much more than its relatively low cost of living.
There are beautiful historic cities like Coimbra, and since it’s a bit off the beaten tourist track, you can soak up the ambiance without constantly battling queues and tourist crowds. As for the cuisine, it leaves nothing to be desired - and if you’re a fan of seafood, you’re sure to be in for a treat.
If chilling out on some of the world’s most beautiful beaches is on your retirement “to do” list, you won’t be disappointed either. From gorgeous rugged coastlines to sandy beaches, Portugal has a lot to offer residents and visitors.
Between majestic sights, and leisure opportunities, you may be tempted to look no further, but if you do, it will only highlight the reasons why Portugal tops our list. Fantastic infrastructure, and one of the world’s lowest crime rates mean that you’ll be able to make yourself at home just about anywhere in Portugal.
Panama often tops lists of desirable countries for retirees. There are many reasons for this, not least the affordability of just about everything. Some sources say that you can expect living costs to be up to 46 percent lower than they are in the United States. Besides that, the country is eager to welcome pensioners. Those able to get a retirement visa enjoy a ton of benefits including tax reductions and some awesome reductions on public transport fares and even hotel rooms. To crown it all, importing a new vehicle is tax free - provided you have that visa and do it more than once every few years.
Apart from the cost savings. Panama offers great infrastructure and amenities, a close-knit expat community, and a pleasant climate. Need to nip home for a family visit? Flight times are relatively short - a definite plus when those special occasions call for a trip home.
3. Costa Rica
Rainforests, beaches, national parks: there’s more to Costa Rica than it’s famous coffee. Interestingly, the US State Department rates Costa Rica as one of the safest countries US nationals can visit and the country does much to protect that reputation, particularly in areas frequented by international visitors.
Cost savings are, once again, substantial. Recent statistics cite basic consumer prices as being around 24 percent lower than they are elsewhere, and property prices, including rentals, are cheaper too. Meanwhile, enjoying the climate and exotic sights will become par for the course once you’re there. What that climate will be is pretty much up to you. From the cool Central Valley district to the tropical Carribean coastline, the weather conditions are as varied as the landscape.
And, while most visitors go to Costa Rica to take in unspoiled natural wonders and miles of fabulous coastline, there’s still no shortage of good infrastructure and services on offer. The healthcare system is excellent too. Back in 2000, the World Health Organization ranked it one notch above the USAs healthcare system and rated Costa Rican healthcare as the very best in Latin America.
Living for Less Doesn’t Have to Be Depressing
For those of us who have come to the realization that we simply can’t afford the lifestyle we once had owing to financial constraints, there’s light at the end of the tunnel. Living for less doesn’t necessarily mean giving up on dreams of an interesting and varied retirement. Too good to be true? The good news is that living in amazing countries and saving at the same time is a reality that others have already explored and benefited from. It’s not unchartered territory, and there’s nothing to stop you from giving it a try.