Life Insurance Benefits: Getting the Best Benefits You Can Afford

Life insurance is one of the most important financial decisions a person can make in their lifetime.
Different options

There are numerous types of policy for life insurance, and there are numerous different companies offering policies. Each insurance policy comes complete with different types of life insurance benefits. These benefits can be financial benefits, or they can be benefits in terms of security for the future. If we examine some of these benefits, we can see how we can maximize the impact these benefits can have on our futures.

Inheritance

A great life insurance benefit is that with the right policy, the heirs to your estate can be left comfortable in the even of your debt. This can be a great source of comfort for some people who would like to know that those who carry their name after their death are in good financial condition

Taxes after death

A good life insurance benefit is that you can leave your heirs with money to pay for any estate taxes in the event of your death. This can be a great life insurance benefit for those who worry that their family might to be able to pay estate taxes or death taxes upon their death.

A type of savings account

Some life insurance policies have the added benefit of the holder being able to draw money from, or borrow against, the policy after a certain amount of time, creating cash value for the policy which might not exist with some other policies. When these ideas are looked at, it becomes important to make sure that you look at the life insurance benefits of any policy before deciding which one is right for you. It is wise to shop around and compare the different types of policy and the companies that provide them, especially in the case where you would prefer the policy to have a cash-value at some point in the future. When this decision is made, it is always the best course of action to examine both the financial and security aspects of the life insurance benefits.

Essential Steps to Buying a Home After Bankruptcy

Buying a home after bankruptcy is not going to be easy. Once you come to terms with that, and still want to move forward in your quest to buy a home (and I strongly recommend that you do), you must take some important steps to prepare yourself and help the process. Repairing credit, learning from your mistakes and saving money are important to bring you to the point of a home purchase. These steps will help you in buying a home after bankruptcy:

STEP ONE: Repair Credit Reports.

Yes, that is an “s” at the end of reports. You must work at, and clean up all three credit reports, as lenders will evaluate all three when applying for a mortgage.

You can view an article about cleaning up negative remarks on your credit reports here: www.associatedcontent.com/article/1065650/removing_negative_remarks_from_your.html.

STEP TWO: Create a realistic budget.

Too many people today fall into the trap of immediate gratification. The see something they want, and they buy it. Now. They just figure they can pay it off later. However, with the extreme rise in bankruptcy and foreclosures, it has become clear that avenue is no longer working. We are also in the era of “keeping up with the Jones'”. While you may want that large, 5 bedroom, new construction home on 3 acres, you may only be able to afford the 1950, 3 bedroom home in the neighborhood.

Try to be realistic, and look on the bright side as well. If you don’t let yourself become “house poor”, you will have more room in the budget for the fun things in life, such as travel, season tickets to your football team, or even that big screen TV you have been wanting.

 

STEP THREE: Save a down payment of at least 20% of the home you want to buy.

Yes, it is a lot, but well worth it. First of all, with a bankruptcy on your record, you may be required to put 20% down anyhow. Secondly, you will avoid paying PMI, or private mortgage insurance, which often results in $50 – $100 a month extra in your mortgage payment. Third, this teaches you the value of money, and the value of your home.

The foreclosure rate skyrocketed this last year, in part because of all the zero down loans made. People didn’t feel they had anything invested, and were less interested in saving their home. Figure out your budget. If you need $20,000 to put down on a home, and you want to achieve that in two years, you will need to put away $830 a month into the highest interest rate savings account you can find. If needed, you may consider picking up a second job to help save this money faster.

STEP FOUR: Keep your current job.

Most lenders require at least 2 years employment at the same, steady job. If you job-hop, you will need to start this over. Lenders are less likely to be lenient on this after a bankruptcy.

STEP FIVE: Begin to work with a mortgage lender.

He or she will be able to help you decide how much home you can afford on your income and what you need to do in order to re-establish yourself. Many may recommend getting a small, second-chance credit card to help rebuild your credit and establish some new, good tradelines. It is important to find someone reputable, and who you feel comfortable working with.

The best advice on buying a home after bankruptcy, is to be patient. Save money, avoid debt, keep working and pay all your bills on time. It can be done.