What is Life Insurance?Written by John Mussi
Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during policy term, a lump sum is paid out. Life insurance is considered as cornerstone of financial planning. It is a cost effective way to provide for your family after you are gone. Many of us will at some stage in our lives have need for life insurance. Life insurance is an agreement between you and an insurer and under terms of a life insurance contract, insurer promises to pay a certain sum to a designated beneficiary when you die, in exchange for your premium payments. This may give you peace of mind that, should you die during policy term, your family would have some financial security. The most common reason for buying life insurance is to replace income lost when you die. For example, say that you work, and that your income is used to support yourself and your family. When you die and your income stops life insurance proceeds can be used to continue to support family members you've left behind. If you have dependants or your income is needed to maintain your family's standard of living you may need life insurance. If you died your family could use money to pay off some outstanding bills or perhaps towards a mortgage. There may also be extra costs to deal with that were not there before; such as cost of extra childcare. To decide if you need life insurance you will need to consider whether your family could cope financially without you and for how long.
| | Is Consolidating Loans Right For You?Written by Gary Gresham
Consolidating loans makes sense but only if you can pay a lower interest rate than what you're paying now. This is especially true if you are consolidating mortgage loans. Be aware of your total overall costs to avoid getting deeper in debt than when you started. Have you ever asked yourself why should I consolidate my bills? The simple answer is to reduce your monthly payments and save thousands in interest costs. Here are a couple of things to consider if you want to see if consolidating loans will benefit you. No matter what kind of loan you shop for get very lowest interest rate possible. You always want to pay off a consolidating loan in shortest amount of time to avoid getting deeper in debt. Plan to pay off all of your debts in three to five years starting with highest interest rate debt first. Here are some of best ways for consolidating loans. Credit Cards Many low rate credit cards offer you a lower rate than a standard debt consolidation loan. Just be sure to get a no fee card for transferring new balances. By transferring a higher interest credit card debt to a lower rate card, you can pay more towards principal of your debt and pay it off quicker. Consolidating loans always makes sense if you can lower your interest on your debt. Debt Consolidation Loan A debt consolidation loan is another good option for consolidating loans. Just shop for an interest rate that is reasonable. The repayment terms should only be three to five years not ten or fifteen years so you don't pay thousands of dollars in interest. Calculate total cost of loan from start to finish to see if this kind of loan makes sense for you.
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