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Life Insurance 101: Your Basic Guide

If you’re like most of us out there, you may think life insurance is too complex or too expensive. But finding a policy that meets your needs and budget isn’t too complicated—it just requires a little bit of research. The whole point behind having coverage is to deliver peace of mind to you and your family and build a source of financial protection. Choosing to have life insurance will help you and your family feel more secure in an emergency. One of the biggest incentives to find a plan and insurance company is the simple fact that a plan can provide tax-free money to your loved ones, which is a huge discount when tax season comes around. There are generally two types of plans you can choose from, and we’ve listed them below.

Term Life Insurance

A term life plan is pretty self-explanatory since it lasts until a certain age or for a specific period of time. The longest that this plan can last for is 30 years. Every time the term ends, you have to option of renewing with your insurance company. This plan’s benefits include tax-free money to your family upon your death, which they can use to cover any final expenditures. This plan also tends to be less expensive and can often be converted to a permanent policy.

Permanent Life Insurance

Permanent life insurance is a policy you can’t outlive, as long as you continue to pay your premiums. These policies often allow you to customize them, including universal life, whole life, budget auto insurance, and indexed universal coverage. A great benefit from permanent life insurance is the fact that you can build cash value over time since a portion of your premium pays for the cost of the coverage while the rest racks up a monetary value. This policy usually also offers a tax-free benefit to your loved ones upon death. It is also ideal because the cash value can be used while you are still alive. When you search out other plans, such as budget auto insurance and home insurance, combining these with your life policy can also be a cost-efficient way to save a few pennies on insurance costs. When looking for any insurance plan or budget insurance, it is important to do all your research and compare market prices by shopping around.

Taking Care Of House and Home

While you are looking into your estate and getting everything in line, it may also help to get your home in order with some energy-efficient upgrades can lower your monthly expenses. Sprucing up your home is a smart way that can help keep more money in your pocket. Any quick and friendly cosmetic facelifts to your home will be well worth the money spent. It can be as simple as applying a fresh new coat of paint to a shabby room or patching up some of that crown molding. These tiny fixer-upper moments will have immense value to your house when it comes time to sell or be appraised.

Homeowners can never go wrong with giving their home a little curbside appeal, and investments into lowering energy costs are good, too. Take an old dishwasher, for example. Older models are not as efficient as more modern ones, and you could already be paying a hefty price tag on your water and electric bills. By installing an Energy Star qualified appliance, you are guaranteed to bring your monthly utility bills down, which will save you money in the long run. If you are a homeowner who enjoys bottled water, why not look into installing a water purifier? Not only will you be saving the planet from a plethora of plastic, but you will also be able to spend less at the supermarket and add more to your savings.