1891 Financial Life’s Post

Should I prioritize health insurance costs or student loan payments? Answers: https://lnkd.in/gj-XCpwm #HealthInsurance #StudentLoans #MentalHealthSupport Hey there! It sounds like you're juggling a lot right now. Let's break down your situation a bit. You just turned 26, meaning it’s time to fly solo when it comes to health insurance, and that’s a big change! 🦅 Here's a recap of what you're facing: Income: You make around $1,400 a month after taxes. Expenses: Private loans: $760/month Public loans: $240/month Health insurance: $195/month Remaining Budget for Necessities: After covering your major bills, you're left with about $200 for groceries, gas, and everything else. That's really tight! 😟 Now, you're torn between two critical expenses: health insurance, which could help support your mental health through therapy, and your student loan payments. Both are important, but each decision comes with its own weight. Why This Can Be Tough Health Insurance: It’s crucial, especially since you’re looking to start therapy. Having solid mental health support can make a significant difference in your life. However, $195/month is a hefty chunk when you'r...

🎓📚 The Value of Life Insurance for College Students: A Smart Financial Move 📚🎓 As our kids embark on their college journey, many of us are focused on tuition, textbooks, and student loans. But have you considered the benefits of taking out a life insurance policy on them? 🤔 While it may seem unconventional, having a life insurance policy on your college-aged child can be a wise financial strategy. Here’s why: Debt Protection: Student loans can be a heavy burden. In the unfortunate event of an untimely tragedy, a life insurance policy can help cover outstanding loans, preventing financial strain on your family. Affordable Rates: Life insurance premiums for young, healthy individuals are generally lower. Locking in a policy now can be cost-effective and provide peace of mind for the future. Building a Financial Safety Net: In addition to covering debt, life insurance can contribute to a financial safety net, helping with any unforeseen expenses or needs that arise. Long-Term Benefits: Some policies build cash value over time, which can be a valuable financial asset for your child’s future. It’s never easy to think about the "what ifs," but planning ahead can offer crucial protection and peace of mind. Have you considered this for your family? Let’s discuss! 💬👇 #LifeInsurance #CollegeFinancialPlanning #StudentLoans #PeaceOfMind

Life insurance and business loan protection are two key financial products that help protect businesses and their owners from financial risks: 1. Life Insurance: Personal Protection: Life insurance provides financial support to your beneficiaries (family, partners) if you pass away. It’s a way to ensure they are not left with financial burdens like debts, mortgages, or other expenses. Types of Life Insurance: Term Life Insurance: Provides coverage for a specific period (e.g., 10, 20, 30 years) and pays out a death benefit if the policyholder dies during the term. Whole Life Insurance: Offers lifetime coverage with a death benefit and a cash value component that grows over time. Universal Life Insurance: A flexible policy that combines permanent insurance with investment options. 2. Business Loan Protection (Keyman Insurance): Purpose: This type of insurance is designed to protect a business if a key employee (such as a business owner or an essential partner) dies or becomes disabled. Business Continuity: Business loan protection ensures that outstanding loans or business debts can be paid off if a key person passes away, preventing financial strain on the company. How It Works: The business takes out a policy on the key person’s life, and if the insured individual passes away, the insurance payout is used to cover business debts or replace lost income. Key Differences: Life Insurance is typically for personal or family protection, ensuring dependents are financially supported in the event of death. Business Loan Protection focuses on the financial health of a business, ensuring the company can meet its financial obligations if a key individual dies. Businesses often use both to ensure their owners, employees, and financial stability are protected.

How Term Life Insurance Can Help You Pay Off Student Loans Not only does term insurance protect you against the unexpected, but also term life insurance can be a strategic tool for managing financial obligations like student loans. Here’s how it can help: Financial Protection: If you have significant student loan debt and unexpected tragedy strikes (like death or disability), your term life insurance policy can provide a lump-sum payment to your designated beneficiaries. This money can then be used to pay off the remaining student loan balance, ensuring that your loved ones are not burdened with your debt. Affordability: Term life insurance is generally more affordable than whole life insurance because it covers you for a specific period (the term). This affordability makes it easier to fit into a budget, especially for young professionals who may have limited income but want to protect their loved ones from financial hardship in case of untimely death. Customizable Coverage: You can choose a term length that aligns with your student loan repayment timeline. For example, if you expect to pay off your student loans in 15 years, you can select a 15-year term life insurance policy. This ensures that coverage matches your financial commitments. Peace of Mind: Knowing that your student loans are covered in the event of your passing can provide peace of mind. It allows you to focus on other financial goals without worrying about leaving a burden behind for your family. No Tax on Benefits: Life insurance benefits are generally paid out tax-free to beneficiaries. This means the full amount can go towards paying off debts or covering living expenses as needed. Supplement to Employer Coverage: If your employer provides life insurance as part of your benefits package, it may not be sufficient to cover all your financial obligations. A term life insurance policy can supplement this coverage to ensure your debts are fully covered. Before purchasing term life insurance, it's essential to assess your specific financial situation, including your student loan debt amount. This evaluation will help determine the appropriate coverage amount and term length needed to protect your financial interests adequately.

How to solve a $552,840 problem in under 1hr. (And how I can solve yours too!) I had a great call today with a young couple that didn’t think they “needed” life insurance. I walked them through a simple exercise that I’d encourage you to walk through as well. I had them write down all their debts on a piece of paper while we were on the call. They needed to see this number! 2 vehicles ➝ $84,000 1 Mortgage ➝ $385,000 4 Credit cards ➝ $32,590 3 Student loans ➝ $51,250 𝗧𝗼𝘁𝗮𝗹 𝗱𝗲𝗯𝘁 ➝ $𝟱𝟱𝟮,𝟴𝟰𝟬 Once they had this number in front of them I asked a really simple question. “𝗜𝗳 𝘆𝗼𝘂 𝘄𝗲𝗿𝗲 𝘁𝗼 𝗽𝗮𝘀𝘀 𝗮𝘄𝗮𝘆 𝘁𝗼𝗱𝗮𝘆, 𝗱𝗼 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 $𝟱𝟱𝟮,𝟴𝟰𝟬 𝘁𝗼 𝗽𝗮𝘆 𝗮𝗹𝗹 𝗼𝗳 𝘁𝗵𝗮𝘁 𝗼𝗳𝗳, 𝗼𝗿 𝘄𝗼𝘂𝗹𝗱 𝘆𝗼𝘂 𝗹𝗲𝗮𝘃𝗲 𝗮𝗹𝗹 𝘁𝗵𝗮𝘁 𝗱𝗲𝗯𝘁 𝘁𝗼 𝘆𝗼𝘂𝗿 𝗳𝗮𝗺𝗶𝗹𝘆?” ❌It’s not a scare tactic. ❌It’s not putting pressure on them. ✅It’s a question to help them see what their departure from this earth would cause the family in terms of financial responsibility. That’s it. They can do with it what they will. - - - - So I ask you the same thing. If you were to pass away today, who’d be responsible for your debt? Do you want them to have to take care of that debt if they didn’t have to? Let me know if I can help give you some peace of mind!

Set your kids up for financial freedom by avoiding student loans! Consider setting up an Indexed Universal Life policy today. This will help them avoid additional debt and be financially free. If you're interested in learning more, send me a message today. #financialfreedom #studentloans #IndexedUniversalLife https://lnkd.in/gSCzy6fb

How To Use Life Insurance To Pay Your Student Loans   I bet you never thought really thought about life insurance and how it relates to you money situation right now. Maybe your a student dealing with loans and not saving much, life insurance is one of the last things on my mind. You’ve heard the basics: you pay a monthly fee, and if someone dies, the money from the policy usually goes to their children, sibling, or parent. Maybe, maybe not you’ve heard there are different types of life insurance, most people say they will look into it when you have more money to save. I bet the idea of using life insurance to help with your student loans never crossed my mind, especially a policy you could actually afford. That's where the "Indexed Universal Life Insurance Policy," or IUL for short, comes in.   What it is: An IUL is like a savings account: You use your own money to pay for the insurance, and when you get the money back, you don't have to pay taxes on it. It's not like regular insurance because some of the money you give each month gets invested in a special money tracker. This tracker might give you more money than other types of insurance. People often talk about IULs like they talk about 401(k)s, but it depends on what you want to do with your money. We'll talk more about that later. How to Use the Policy to Pay Your Debt: Here is how the IUL can be used to pay your student loans: most IULs allow you to take early withdrawals (or loans) from the policy tax free. You can then use the proceeds from the withdrawal from your IUL to pay down your student debt. The withdrawals are likely penalty free as well, depending on the terms of your policy. Some agents would never want to withdraw money in the first five years. Ideally you would want to wait 10 to 15 years before withdrawing to avoid penalties, but that’s some agents. When you are sitting down with and IUL savant who knows how to engineer and structure these policies the right way, and IUL becomes a powerful tool to help reduce your debt… here’s the catch, when an agent engineers the policy correctly his commission greatly decreases. Next Steps: If you want to get an IUL (a type of insurance), there are some things you need to qualify. It depends on your health and money situation. Remember, an IUL can help you pay for things other than just student loans. It's good to have some emergency cash in case unexpected things happen. But, like with any money choice, it's a good idea to talk to an IUL specialist for advice.

Can we normalize not gatekeeping information that can uplift others? Buy a house and get a 15 year fixed mortgage rather than a 30 year mortgage. Saves a lot of money in interest over the life of the loan. If you must get the 30 year mortgage, verify that there is no prepayment penalty. This gives you the flexibility of paying it off early if you are able. But it also gives you the option of making lower payments when times are tough... When you start your job, get an HSA account and not FSA and get the high deductible health insurance. It will lower your tax bracket and the money is yours to use. You also earn 40% in most cases after 10k!!! Never buy a car brand new! Check into certified pre-owned. I’ve watched Escalades go from 100k (new) to 35k four years later. 🚙 Understand how your credit score reflects your interest rate/monthly payments. Get you an LLC (incorporate your name!!) and run it as an S Corp. Add yourself and your kids as employees and avoid pay the 15.3% self-employment tax. Remember Jay-Z quote “I’m not a Businessman I’m a Business Maaaaaaaan....” Let that sink in. Build business credit! The loans are bigger and the interest rate is lower. Once your LLC has been established you can then hire your children and pay them an annual salary up to $12,400 which serves a tax break for you and lowers your yearly liability, at that point your children can use their earnings to pay for things like their tuition, school trips and any other activity or upkeep that you were originally going to be financially responsibility for so their needs are met, you're assisting them in establishing a good work ethic but more importantly you're decreasing your taxes and keeping more of your earning in house Get a business bank account (in most cases this costs around $500 to start). Use your stimulus checks and/or SBA,PPP to open it. Get life insurance for you (whole life) and your children (term) as soon as they are born (one thing is for sure is we will die..might as well leave your kids or family something extra). The sooner you get it, the cheaper it is. And you can borrow against it to fund certain projects. Also, the ones that pay out dividends are the best! They normally are associated with the market (money market accounts). IUL’s are great! 💰 Get the people in your immediate family to save collectively! If 10 people save $500/month, that’s 60k every year. You could buy 3 starter homes (depending on your market) every year and in 4 years all ten of you are home owners. Buy on the same block or neighborhood if you can...this way you control the value of the homes (remember Monopoly!). 🏠 Just some basic cheat codes! 😎

The latest developments in employee benefits are here! 💡 This regulatory and legislative update covers issues involving student loan repayment, preventive coverage, job-based life insurance participant money and more. #EmployeeBenefits #LegislativeUpdate #RegulatoryUpdate

The latest developments in employee benefits are here! 💡 This regulatory and legislative update covers issues involving student loan repayment, preventive coverage, job-based life insurance participant money and more. #EmployeeBenefits #LegislativeUpdate #RegulatoryUpdate