Archive for 2011
Term Life Insurance Application Process – How It Typically Works
Many people may know that they need term life insurance, but they do not clearly understand how the process works. In the presence of unanswered questions, many people make a choice (a poor one) to do nothing. My hope is that this post will help answer your questions about the term life insurance application process!
Acquiring term life insurance generally follows the following steps.
- Find term life insurance that fits your needs.
- Request and fill out an application (can obtain from your insurance agent or do this ON-LINE)
- A nurse contracted by the life insurance company will contact you to set up an appropriate time for a health analysis (usually involves a blood test and a basic physical).
- Your application is either accepted or denied.
- If accepted, you will be provided your actual premium rate cost and the policy will go into effect once payment is made.
NOTE #1: Smoking and weight issues do not necessarily mean that you can not obtain life insurance, but it usually results in higher premiums due to increased health risks.
NOTE #2: I carry 10 times my annual take-home pay in term life insurance in 20 or 30 year level term coverage. For example, if a person makes $30,000 in annual take-home pay, then that would be $300,000 in term life insurance coverage.
Disclosure
SERIES: Investments Your Stock Broker Never Told You About – 5
In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.
Part Five Eliminate Debt and Bills
This one might surprise a few of you, but this could possibly be the best investment you could ever make! Consider the amount of money from your household budget that is currently being applied to debt and monthly bills. It is literally hundreds or thousands of dollars every single month! What else could be done with that money? It could be invested OR you could reduce your work hours or even retire!
The rate of return is guaranteed when you eliminate bills. If you are paying 21.99% on a credit card, you can gain that interest simply by eliminating the debt! This is why I am such a big fan of eliminating debt – especially on items that drop in value like a rock or have no value at all.
Read the entire series (available after 9/30/2011)
SERIES: Investments Your Stock Broker Never Told You About – 4
In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.
Part Four Invest In Real Estate
Real estate is another great investment opportunity available. Land, residential and commercial rental properties, and flipping houses have helped many people become millionaires. Of course, it is VITAL in any venture like this to maintain healthy financial margin! “No money down” real estate deals have led to many more bankruptcies than they have yielded multi-millionaires. While it is important to consider some risk, purchasing real estate without any financial margin is a recipe for a financial disaster!
Some keys to think about when considering real estate investments are:
- Clearly understand what you will do with the property BEFORE buying it
- Have a Plan B and a Plan C
- Establish healthy financial margin – at least six months worth of expenses and operating costs
- While a deal may look good “on its own”, but sure to look at your collective holdings and evaluate your ability – time and financial – to handle the project appropriately
- If you are susceptible to taking extreme risks, establish accountability with someone who understands the business
- You will generally make money by purchasing the property for the right price
- Always be ready for a “surprise” – I see them happen all of the time to real estate investors
Questions To Ask
- Do I have the time and energy to pursue this type of investment?
- Is this something I am only doing for the financial gain or is this something that I love?
- Is my spouse on board?
- If I investment my money in real estate, where will I NOT be able to invest as a result?
Read the entire series (available after 9/30/2011)
SERIES: Investments Your Stock Broker Never Told You About – 3
In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.
Part Three Invest In A Business
Starting a small business can provide a financial return as well as the incredibly satisfying work of fulfilling a dream. A business can allow you to produce an income that is not entirely dependent upon you. The McDonald’s franchise owner does not have to do all of the work, but they are able to enjoy the profits that result from the efforts of dozens of employees. This can lead to substantial returns on investment that are far better than the average return of any mutual fund!
Consider the following scenario. Suppose one puts up $25,000 for a franchise that produces $50,000 of profit each year. That is a 200-percent return on investment – only it happens year-after-year-after-year … the Lord willing! Yes, the work would be demanding and time-consuming and energy-draining, but the return on investment is great and less dependent upon the world market.
If it isn’t your dream to run a small business, consider investing in a small business. There are great leaders with terrific ideas that just need some additional funding in order to launch to the stratosphere.
Questions To Ask Yourself:
- Do I have a business idea that I am fired up about and believe in?
- Has a proven business leader/entrepreneur looked at my business idea and told me it looks great?
- Am I willing to put my own money into this deal?
Read the entire series (available after 9/30/2011)
SERIES: Investments Your Stock Broker Never Told You About – 2
In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.
Part Two Invest In Yourself
The greatest investment one can make is him/herself. Investments into education and skills training can pay off far better by providing increased earnings potential. I was able to pursue my dream of helping others accomplish far more than they ever thought possible with their personal finances. One of the key first steps was to make the investment of time, energy, and money to write and publish I Was Broke. Now I’m Not. It literally cost me hundreds of hours and thousands of dollars to accomplish this dream, but the investment has paid off!
As a result of taking this “risk”, I have been able to literally teach over 100,000 people and hear thousands of stories of financial freedom being achieved across the globe. This business has enabled me to further expand my dream to the point that I have been able to acquire another company and serve even more people across the world.
Questions To Ask Yourself
- Do I have a dream that I’ve always wanted to pursue?
- What can I do today that would make a difference tomorrow?
- Do I see a need where I can do something that addresses it?
- Where can I personally add value to other people?
Read the entire series (available after 9/30/2011)