Why would someone choose Short Term Life Insurance?

Why would someone choose Short Term Life Insurance?

Short term life insurance might be a good fit if you have short-term goals or want financial protection for a specific amount of time. Reasons for utilizing short term life insurance might be one of the following:

  1. If you have a 20-year home mortgage, then you may want to purchase a 20-year term policy. That way, you will know that your family can pay off the mortgage and remain in their home should anything happen to you.
  2. A term policy might also be a good option if you want insurance coverage just for the years you are paying for a child’s education.
  3. Maybe you are paying off a business loan and you don’t want a spouse or partner to be burdened with the balance.
  4. Additionally, If you are a small business owner, term insurance can be used to protect against the untimely death of a key employee.

In each of these examples, the term ends along with your specific financial obligation, so you are not paying for coverage that you no longer need. For that reason, term life insurance can be a flexible and affordable coverage solution for a range of situations.

Are there Differences Among Term Insurance Policies?

The biggest differences between term insurance policies are the length of time the coverage is for. Some term policies offer optional features called riders that allow you to customize your policy. For example, you can add your children to your policy or get accidental death protection if need be.

Moreover, a term insurance policy can be increasing or decreasing.  A decreasing term life insurance policy would best be used to cover the life of a homeowner for the death benefit to cover for a mortgage.  For example, the primary breadwinner of the family and their spouse is on the deed and the mortgage.  The primary breadwinner passes and leaves the mortgage debt to the stay-at-home spouse.  In this case, the 2nd spouse would need to either go get employment to make the income to pay debts, including the mortgage, or lose the house and possibly all the assets or (worse case scenario) marry immediately so he/she can have another primary breadwinner to fill the financial void.  The decreasing term insurance death benefit can be used to pay off the mortgage and possibly all the other debts as well, leaving the stay-at-home spouse to effectively grieve and move into the next season of life without much worry or unnecessary anxiety.

Increasing term life insurance could be used in the case of having several children that might accrue education debt in future years and the parents feel as though they want to cover the cost.  In the parents’ demise, the increasing term death benefit would be able to cover the entire cost (if not a large portion of the cost) of the children’s education cost without worry or unnecessary anxiety.

At this point, it is important to note one unique type of term life insurance policy which is what is known as a return of premium term policy. With this type of policy, all premiums that have been paid are returned to the policy owner at the end of the level-premium period (terms and conditions may apply).

What Happens at the end of the Term of a Term Life Insurance Policy?

At the end of the term, you have the option of letting your coverage end, keeping it by continuing to pay the premiums, or possibly converting it to some type of a permanent life insurance policy.  We discuss various types of permanent policy options in another blog. Remember, if you do choose to convert, be sure to work with a reputable company that offers quality life insurance options.

If you choose to keep the policy after the level-premium period ends, your premiums will increase each year as outlined in your contract and usually will stop at age 85, unless otherwise indicated when the policy ends.

How Much Term Life Insurance Do I Need?

As a general rule you should purchase a term life insurance policy for 10–12 times your annual income. That way, your salary will be replaced for your family if something happens to you.

And don’t forget to get term life insurance for both spouses, even if one of you stays at home with the kids. Think about what you would pay in childcare and home upkeep costs if the stay-at-home parent was gone! No matter what, you both need term life insurance.

Want to make sure your family is covered no matter what happens? Check on your coverage BEFORE it becomes an emergency.

Most financial professionals recommend that if you decide to buy a term policy be sure it is with a term that will see you through until your kids are heading off to college and living on their own. That might be anywhere from 20 years, if you already have children, to 30 years if you do not have children or aren’t finished adding to your family yet.

A lot of life or death can happen in 20 years.

Don’t Wait Until You Need Life Insurance to Get It

The truth is, we cannot see the future and aren’t promised tomorrow. Life is precious! And the ideal time to buy life insurance is when you are young and have a clean bill of health. Especially since life insurance companies are all about weighing the risks of the person purchasing the policy.

Our strong opinion is that you should get your term life insurance policy, as much as you can afford to cover as much of your family’s needs, as possible. (In hindsight timing is everything).  Then take as many funds as you possibly can, immediately set up your emergency fund and then set a short term plan to push hard to put as much as you possibly can in a very wise (and fully proven) investment to allow your money to grow in your sleep!  That way you can begin building your nest egg.  Unless you can imagine yourself working until the day you die, then why not work now while you can in order to prepare for those later years so that you can actually enjoy the fruits of your labor.

Covid19 Happened After You Planned 2020

Rewrite Your Business Process for the Next 90 Days

These current Covid 19 times have really stopped all of us small business owners in our tracks.  We had to throw out the business plan we just did at the first of the year and start all over.

Here are some practical TIPS to implement for success.

1.Take Your Meds! 

I don’t mean prescription drugs!  You have heard the saying “put the oxygen mask on you first, then you can help others.”  Well that is what taking your MEDS is about.  It is a metaphor for meditate, exercise, diet and sleep.  These are key to our overall health and wellness and staying on track for long term success in life.

Meditate – we are in a high stress environment and situations with all of our social and business changes.  Meditate, pray, breathe … create space where you can unplug and have quite time to clear your mind.  Take time to set the tone for the day or remove all the negative energy or to simply calm your thoughts and prepare for the day or end the day if needed.

Exercise – it could be getting in your 10K ‘steps’ for the day and for some of you it could mean your thirty minutes to an hour of a good solid work out routine.  Some are doing virtual exercise groups.  Wherever you are in your exercise journey, make sure you are creating time an a routine to fit in a healthy exercise routine.

Diet – we are what we eat! Make sure you are eating for energy.  Research options to make sure you are feeding energy to your mind and body.

Sleep – studies tell us that 7+ hours of sleep allow the mind to detox and wash out and to be ready for the next day!  We should all do the best we can to take care of ourselves.  Don’t be that person that becomes the energy-sucking vampire.

  1. Make Sure Your Finances Are In Order!

This is part of the safety equation, too.  Make sure you are getting the facts and truth.  Scrub your expenses hard and fast if you haven’t already and make sure you are working with a P&L.   Talk to your CPA or Financial Professional.

  1. Keep Your Business Moving Forward!

That means yes you can continue to market BUT with the right tone and messaging.  Plan out what you will do over the next 30 to 90 days.  What videos you would like to do?  What emails are you going to send?  What marketing campaigns are you going to implement?  No matter what you decide in form of marketing just make sure you are sharing the right tone and message.   If you have billboards make sure you update them to say #WeCare.  Support your local community and make it meaningful.  You don’t have to stop your marketing, simply make it meaningful.  If things are still a little somber in your area, then launching out with a ‘party like’ tone will not be received very well.  Take things seriously and make sure you are matching your message to the right tone needed.  If people are still scrambling for work and still in a social distancing requirement, address your audience accordingly.

  1. Go Virtual!

You have adapted by now to the virtual arena, I hope! Skype, Zoom, Google hangouts, etc.  Embrace it and get comfortable with it.  It will be here to stay.  I don’t believe we will go back to the way it was after this.  Many businesses have had to adapt to the work from home and virtual systems.  There are many cost savings and ease of conducting business involved that make this advantageous.

Tony Robbins says there are always two kinds of people:  Those that BLAME the resources and those that ARE resourceful!  Which are you?  Are you coming from a fixed mindset or a growth mindset?  People in the past would resist doing videos and now everyone is doing it! Those that adapt to change are the ones that survive and thrive.

  1. Load The Cannon!

Yes, you generate leads in this environment.  How are you educating people today?  How are you staying up on your industry trends and ever-changing market conditions?  Plan how you will nurture your leads.  Check in to see how people are doing.  Show compassion and empathy.  If business comes out of it, that’s great but at least you kept the relationships alive and current.

  1. Sharpen Your Axe!

Especially if your area is still practicing social distancing, you can take some time to sharpen your skills.  Do you need to upgrade your tech skills, your negotiation skills, and marketing skills?  Now’s the time!

  1. Adjust Your Tone!

Have you double-checked the automated systems that are sending out messages and emails to make sure you have updated those messages to match the tone needed now?  Make sure you are relevant and current.

 

So you had big plans for 2020?!  Then Covid 19 happened.  Well, time to revamp, restructure and rewrite.    If you have more tips to add, please share them.  All of us small business owners need to pull together and help each other now more than ever!  Here’s hoping these tips have helped.

 

Budgeting Like a Boss

When it comes to creating your own monthly budget, sometimes planning is easier than the practice. Keeping track of finances can be tricky, but, with a few guidelines and time, you can take charge of your bank account once and for all.

Adopt a weekly allowance
Parents offer their children an allowance to teach them about saving money, and the same principles can be applied to your own spending as an adult. Set aside a specific amount for treats and other nonessential expenditures, and vow that once the money is gone, extras can wait until next week.Avoid eating your meals out

Planning out your meals for the week and grocery shopping ahead of time may seem like a pain, but it can help you save money in the long run. Eating out at restaurants and fast food places adds up significantly over time. Just remember to be cautious at the grocery store or warehouse store to avoid temptation buys.Consider saving to be a payment to yourself

Adding to your savings account after each paycheck is just as important as paying any other bill, so treat it as such. Choose a set amount to put away from each paycheck you receive and, before you know it, the number in your savings account will be something you can be proud of.

Save all of your receipts

Keeping receipts is a great way to see your spending in action. Sometimes it’s difficult to remember how much a cup of coffee a day or a take-out meal each week adds up by the end of the month, but putting your receipts in a secure spot and adding up the amounts can help prevent you from overspending.

Is the Real Estate Business WORKING for you anymore? Consider ……

Why did you choose the real estate industry? To help a family find their dream home? To help a seller make the most money for the sale of their property? To bring a child to their new, most perfect dream room? Or maybe to make a TON of money for YOUR hard work?!
Most real estate professionals fail within the first few months of trying to create a business enterprise out of real estate. You are working your leads, marketing and advertising and spending your time and money chasing YOUR dream.
Just think about all the clients you are simply working with and then putting in your follow-up list. Or clients that you cannot help at this moment so you just leave them on the table. Or friends and family members you just set up on your social media feed so that you have the appearance of success.
Consider the fact that we are an organization that start with a useful marketing plan and actually have a well-organized effort to reach all the efforts on the plan. We are in the business of creating wealth, maintaining wealth and assisting in the preservation of wealth. If you are limiting your product availability with simply the real estate industry, then you are limiting your own growth. And you are limiting the growth of your clients.
Why not consider adding more to your product base.
What Do We Do?
 Mission #1
We create more financially independent families than any other business in history.
 Mission #2
We lead the consumer empowerment revolution.
 Mission #3
We do that by using a very seasoned Leadership Format System and hundreds of business partners in our office to assist us.

How Do We Do This?
 Mission #1
We sit down at the kitchen table of every American family and go through the Financial Needs Analysis which reveals a “roadmap” to reach their dreams & goals.

 Mission #2
Provide the family with the financial roadmap recommendation sheet in order to answer the following six of the major financial dilemmas:
 Cash flow: earn additional money and assist with the management of the increase.
 Debt Management: consolidate debt & strive to eliminate it.
 Emergency Fund: 3-6 months’ income & prepare for unexpected expenses.
 Appropriate Security: against any damage of income & assets of the family.
 Form Wealth: attempt to overtake inflation & cut taxes.
 Preserve Wealth: reduce taxation & build a family multi-generational legacy.

We here at Eclipse USA Financial Division are helping hundreds of clients with these new products and educational services and we are making a much more substantial amount of money than with simply real estate services. Real Estate agents in Georgia are struggling. We provide financial services as an addition to the real estate sales career. YOU CAN TOO!!

So in a nutshell, the real estate industry professional can provide much more than simply a limited amount of services. Added value to your clients……what true professional wouldn’t want to know more?
Call, text or email today for an appointment to know more.

Reggie Moon 404-606-9353 (direct)
Reggie@EclipseUSARealty.com

Sindy Moon 770-655-7726 (direct)
Sindy@EclipseUSARealty.com