Life Insurance Benefits

Written by Tim Gorman


Life Insurance is a legal contract between you and a life insurance company withrepparttar purpose of providing an income to spouse, children or other beneficiaries inrepparttar 144869 event of your death.

There are two different categories of Life Insurance. Term Insurance is designed to provide death benefits for a specific time period. It is set up to pay a death benefit if a person should die in this specific time period. The most common term for life insurance is 20 years. Term Insurance has many benefits: it is relatively inexpensive to purchase initially. The reason for this is because your only paying for this death benefit ifrepparttar 144870 death occurs during this specific time period or "term". Term life insurance is great for young couples just starting a family. It is affordable and offers high levels of coverage.

The drawback to Term life insurance is that when you initially start out, your payments are low and coverage is high, but atrepparttar 144871 end of your 20 year term you decide you still need coverage andrepparttar 144872 cost is much higher because your are now 20 years older. If you are in good health your premiums will be higher. If you have had any medical conditions inrepparttar 144873 past 20 years, you may not even qualify for life insurance. Some term life insurance policies do offer a provision that will allow a person to convert their term into permanent life insurance inrepparttar 144874 first few years ofrepparttar 144875 policy.

Self-Employment - Managing you Money: Tips for Living with a Fluctuating Income (Part One)

Written by Ellen Zucker


The way you manage your money is one ofrepparttar first things you'll change when you move from employment to self-employment.

It's one thing to budget and manage your money on a regular income-as you do when you receive a salary. It's quite another when your income fluctuates.

But having a fluctuating income is a basic part ofrepparttar 144838 self-employment reality.

Managing money in such circumstances is unfamiliar and, for most of us, uncomfortable.

These are some tips I developed from my experience of 10+ years of self-employment.

• KEEP GOOD RECORDS

When I first got started, an old CPA friend of mine had three words to say. “Keep good records.”

Maintaining good records of your money transactions helps you in several ways.

It helps you track your income and spending so you can create a realistic budget.

Your financial records become a management tool for your business. If your records are accurate and up to date, you can track changes in income and spending – and take appropriate action, when necessary.

There’s gold in those records. As a self-employed person you can deduct all kinds of business expenses. But you have to be able to substantiate them with evidence (receipts, invoices, credit card slips, mileage logs, etc.)

Lastly, keeping good financial records keepsrepparttar 144839 authorities happy when they come calling. The IRS audit rate of self-employed people is higher than almost any other group.

• OPEN SEPARATE CHECKING AND SAVINGS ACCOUNTS FOR YOUR BUSINESS.

Having separate bank accounts in your business’s name does a great deal to prove to snoopy tax authorities that you are really running a business and not a hobby.

But more important, it helps you to keep your records straight.

Money you generate and spend inrepparttar 144840 process of conducting your business goes through your business account, all other money goes into your personal account.

TIP: If you are a sole-proprietor, don’t intend to have employees, and don’t anticipate a need for business loans, your account can be a separate personal checking account. All that is necessary is that your account be inrepparttar 144841 name of your business.

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