Why Life Insurance Is (Even) More Essential During a Recession

July 23, 2020 11:32 newlambertagency

People often think that they should wait for the right time to purchase term life insurance or any other type of insurance. But what if the time is never right for you!

We always set a benchmark for our life – a stable job, marriage, or a promotion. But life waits for no one. There is never a right time when it comes to buying an insurance plan. The economy is always fluctuating, people are losing their jobs – at such an indecisive time it’s better to be prepared rather than waiting for a day that may never come.

You need to consider all the options to harness a safety net for you and for your family’s financial security and what’s a better option than taking up an insurance policy during a recession.

Why buy life insurance?

Apart from the obvious financial security, an insurance policy can help you transfer your savings from generation to generation and safeguard your assets whatever maybe the financial conditions.

An affordable term life insurance policy is a terrific option for those looking for the highest level of coverage possible for the lowest cost, for a specific amount of time. Some financial representatives suggest that you will no longer need life insurance when you are older.

Let’s examine a few of the facts about why and who needs life insurance.

Life insurance can help your family keep their home

Whether you’re paying rent or paying a mortgage, a term life insurance policy can help your family continue to make those payments after you’re gone.  This is crucial if you’re the primary earner in your house. Such kind of blanket protection would play a key role at the time of a recession as the chances of a family member losing their job is likely high which could, in turn, affect the overall household income.

Life insurance can help pay off debts

Recession leads to a lot of debt and if you somehow lose your job, you might find yourself turning to credit cards to cover everyday expenses — and, like many Americans, you might end up in a little bit of credit card debt.

A good insurance policy can help your family cover the outstanding debts (if any) if something were to happen to you. For instance, if you shared a credit card with your spouse, the proceeds from a life insurance policy can help you clear any outstanding debts after you die.

Life insurance keeps you prepared

If the recent pandemic has taught us anything it’s that the economy or the stock market isn’t the only unpredictable thing. You are never really prepared for every possible thing as it’s difficult to anticipate how the world will be in the next 6 months. Will we ever go back to the old normal? Will offices be reopened? Will the job opportunities improve after the dust settles?

The point is, the next few years might turn out to be nothing like we anticipated but that doesn’t mean we shouldn’t be prepared. An affordable term life insurance policy can provide you with much-needed stability even at difficult times. Determine how much coverage you might need and what it will cost using a life insurance calculator.

You just need to remember that you’re doing this for your family’s financial security and insurance policy just might be the key to rid you of any worries you might have about the future.

Steps to Buying Whole Life Insurance

July 21, 2020 11:37 newlambertagency

We as humans love to plan everything. We love the comfort of a pre-planned schedule and we derive comfort from the idea of an ideal future. But even as we’re busy making plans for our lives there always comes a time when we think about life insurance – whether it’s the right time? Which type of insurance is beneficial? What exactly is whole life insurance?

Well, you’re not alone! But as you mull over all the options you’ll find that when it comes to buying whole life insurance, you’ll need some assistance.

Not to worry as we have curated a detailed list of steps to follow when going for whole life insurance.

What is whole life insurance?

Before you decide to settle on whole life insurance coverage, you need to know what exactly does it stand for. Whole life insurance is a type of permanent life insurance (also called cash value life insurance), which is one of the two major categories of life insurance the second major being term life insurance.

The biggest difference between these two categories is that term life insurance ends after a set number of years; it offers a death benefit and nothing more. Permanent policies like whole life insurance, on the other hand, cost more because they include an extra savings component, which is referred to as the “cash value.”

Choosing the right company

There are a plethora of companies that sell whole life insurance. While some are better than others, each one will appear to have something unique to offer.

You must begin by filtering out the clutter to make a list of companies that you deem to be appealing and then compare the pros and cons to make a final decision.

When comparing companies, the details could be daunting but their financial strength rating should be your top priority – this shows here the company stands at present.

You need to also find out what the dividend payout is and whether the policy will accumulate a cash value.

Asking the right questions

Even if you skimmed through the list of various companies to select the right one for you, you must ask the right questions. The last thing you want to do is purchase a policy without being sure of the whole life insurance benefits.

Prepare a set of questions beforehand when you set up a meeting with the insurance provider – this will help you make the right choice.

Get illustrations

After landing on the preferred company, it’s time to layout the final details of buying a policy. You can decide on a policy by analyzing your personal needs and budget.

However, you need to be aware that the final price could change based on your medical exam.

You need to have a clear agenda on what will happen next. From there, review each step for potential roadblocks. For example, you may realize that a medical exam could turn up that you’re a smoker and that could result in an increased premium.

Activate your policy

After going through the tedious process, it’s finally the time to activate your whole life insurance. Make sure you receive the details of the policy one final time before you make the purchase.

Carefully go through the details such as the coverage, including the death benefit, as well as the premium. It’s alright to not move forward if you’re unsure about something and need assistance from the agent.

The last step is making your first payment. Speak with your company about your options for making payment – online, credit card, over the phone, check. Choose as per your preference.

Buying whole life insurance can seem overwhelming and that’s why you need to remember communication is key. You’re entitled to ask about any minute detail that seems to be clouding your judgment and get it cleared from your agent.

Hope the aforementioned steps help you find the right company and policy that makes you worry about the future a little lesser.

Tips to Approach Retirement Savings Plan for Women Entrepreneurs

July 13, 2020 10:07 newlambertagency

No matter what stage of self-employment you may be in, thinking about how to make your investments last in retirement should be a top priority.

Saving for retirement can be challenging for anyone, but especially for business owners who invest much of their own savings and earnings into their companies.

And if you’re a women business owner, having a retirement plan in place is even more critical as in general, women live longer than their male counterparts.

To set up a robust retirement plan, women business owners must consider the following:

Develop a plan for caregiving responsibilities

Because women are often the primary family caregivers for children and ageing parents, women business owners need to have a plan in place for how to manage and share these responsibilities. Building a support network is key.

Considering the financial ramifications of work absence is also advisable since less income means fewer retirement savings — and a prolonged period away from work could negatively impact the future success of the business.

Start investing early

In the initial phase of a start-up, companies are cash poor and hence business owners won’t have the required money for investing in their own retirement. And even as a business gets its legs and ramps up, entrepreneurs often focus on the growth of their business and end up reinvesting.

But at such a lean time, women entrepreneurs must consult a financial advisor who can make recommendations for their personal retirement savings — as well as for their business. If you start early, the stronger would be your retirement plan and your savings would be that much more alluring.

Invest cash distributions in retirement vehicles, not the business

When you start to receive a considerable cash distribution from your business, it would prove advantageous to invest in stocks, bonds and non-traditional investments so as to diversify away from the single enterprise.

Of course, it would not be prudent to invest business profits in these same investment vehicles. Businesses require a certain level of liquidity to meet their financial obligations and having funds tied up in investments like long-term bonds, for example, could prove to be problematic.

Reduce tax liabilities through HSAs

If you’re a female entrepreneur with the ability to pay for upfront medical expenses through a high deductible plan, the tax advantages of health savings accounts (HSAs) are many:

  1. a) if the contribution is made as a payroll deduction, no taxes are paid on the contribution,
  2. b) investment earnings in an HSA account are not taxed, and
  3. c) qualified health expense withdrawals from an HSA account are tax-free.

By adopting these strategies to balance retirement savings with business growth and set up a conducive ‘women retirement plan’, female entrepreneurs can look to their futures more confidently — which can only be good for business.

Tips to Help You Boost Your Retirement Savings – Whatever Your Age Is

July 9, 2020 12:49 newlambertagency

It doesn’t matter if you have just begun your work life or are on the verge of bidding goodbye to your beloved job, or are planning for retirement; it is never too late for some savings.

But it goes without saying that for significant savings, you need to start your investment at a much earlier stage of your life.

Retirement is one of the biggest and most common goals that many people have. After all, your retirement savings determine how comfortably you’ll live and whether your money will outlive you.

Making the most of your retirement savings is essential if you want to build a nest egg that will withstand the risks of inflation, market turmoil, and your unexpected longevity.

And if you’re one of the millions of Americans who are on the other side of 40 and don’t yet have a substantial retirement nest egg, don’t despair. It’s not too late, but you need to implement some strategies that will put you back on track to an advantageous retirement solution.

Read on to know some of the best retirement saving tips.

Start today

The best piece of retirement investment advice is to start today. The longer your money has to grow, the more you’ll get out of compounding returns. Even if you can’t set aside a lot of money immediately, any amount you invest today will have the chance to compound. Over time, even a small start can make a difference.

Begin today with as much as you can, and then increase your retirement account contributions as your finances improve. The longer your money has to grow, the bigger your nest egg will be.

Plan and estimate

Roughly estimate how much money you’ll need to live on in retirement. Don’t get bogged down by conflicting advice on how to calculate the amount. A ballpark figure is a good starting place.

Knowing how much you’ll need not only makes the process of saving and investing easier but also can make it more rewarding. Set benchmarks along the way, and gain satisfaction as you pursue your retirement goal.

Contribute to your 401(k)

Contribute the maximum amount allowed for you to your 401(k) every year. You may want to contact a financial advisor or tax professional for further information on your specific situation. If you have matching contributions from your employer, be sure you take advantage of this benefit. These investment plans boost your retirement savings and may also give you tax savings now or when you start withdrawals, depending on your choice of plan type.

Automate your contributions

It’s not just about adding to your accounts on occasion. Consistency is a big part of growing a nest egg designed to see you through your entire retirement. One way to make sure you’re investing consistently is to automate your contributions.

The easiest way to automate is to have money taking from your paycheck automatically each month. If that’s not an option, set up an automatic transfer, or set up an automatic investing plan through your broker. That way, you prepare for retirement without having to think about it.

Why Should You Choose a High Deductible Health Plan?

July 3, 2020 10:18 newlambertagency

For a growing number of Americans, it has become crucial to choose a deductible health plan. The trend started a decade ago and shows no signs of disappearing. At many firms, it’s the sole health insurance that’s offered for employees.

However, there are still a considerable amount of people who find themselves without employer-offered insurance benefits. Be it a student who’s in between jobs or self-employed individuals, people are needed to re-evaluate their Texas health insurance plans.

Thus, in such a case, one option to consider that will favour your budget is a high deductible health plan. A High-Deductible Health Plan (HDHP) is a health insurance plan with low premiums and high deductibles, compared to traditional health plans.

How does an HDHP work?

An HDHP involves the participant assuming all expenses until a deductible amount has been met. Any expenses that are greater than the deductible will be covered as part of the health plan. The insurer covers all medical expenses after the deductible has been met in full.

It can pay much lower monthly payments for medical coverage, with premiums being more reasonable it is possible to save money for the future in case a high deductible arises. Also, monthly medical costs decrease substantially with an HDHP.

HDHPs also offer some unique ideal for young people as they do not often deal with major illnesses. Health coverage is something they have just in case something happens unexpectedly. When the probability of a medical expense is low, an HDHP offers adequate coverage with lower costs in the long run.

People with HDHPs can also contribute to a Texas health savings account, which is a health savings account that allows you to contribute and withdraw money for qualified medical expenses without being taxed. So, if you combine your HDHP with an HSA, you can pay that deductible, plus other qualified medical expenses, using the money you set aside in your tax-free HSA.

The insurance benefits of an HDHP also give you some peace of mind as it covers for any catastrophic event and at the same time helps you save between 30 and 60% on medical costs.

You must consider the following when choosing a health plan that suits you:

  1. If you’re healthy and usually go to the doctor once a year, a lower monthly premium may be a good choice for you.
  2. If a chronic health condition means that you go often to your primary care provider (PCP) or specialists during the plan year, you must decide if savings from low premiums are greater than the cost of regular care or medication.

Carefully analyzing the ins and outs of high-deductible health insurance may help you find the coverage that’s right for you. In addition to saving you money, finding the right plan for you can help ensure that you’ll receive coverage for the health care you need when you need it.