Logic Of Disability Insurance

It may be hard to picture yourself as disabled or injured to the point that you can no longer work or earn an income. From childhood we’re taught that everyone works and earns money to pay their bills. Few people think about the “what ifs” like injury or illness that can take away their ability to earn money and pay those bills. Since people don’t think about these “what ifs” they rarely plan for emergencies and find themselves woefully unprepared for any emergency.

Many don’t know that the chances of a permanent injury or illness are five times higher than being a victim in a house fire. While a fire is visible, ofttimes injuries and illnesses aren’t visible and people may suffer for many long years and others may never realize that they’re even suffering. In fact, few recognize such injuries or illnesses unless it’s happened to them, or someone that they love.

Disability insurance can bridge the gap between an injury or illness and the ability to bring in a pay check. If a disability lasts more than a month or so the medical costs may skyrocket and the person may find that they can’t afford to pay the doctors or hospitals that have treated them. After a time, cars are repossessed, homes are foreclosed upon or tenants are evicted from a rental. That is why it is important to protect your income, especially if you are a sole proprietor. They actually offer special disability insurance packages for professionals. For example, here you will find options for physician disability insurance.

It doesn’t have to be this way. A little bit of pre planning can prevent this from happening. However, many have their health insurance through their employers. Sadly, with the creation of Obamacare, a lot of employers have dropped health insurance programs. People are being forced to go into other health care programs and pay higher fees for the same coverages. Those on disabilities are suffering and now, they must buy directly from the insurance companies if they desire this sort of coverage.

Why do People Over 50 need Life Insurance?

You  may be thinking you don’t really need to have life insurance if you are over 50.  Many people think the same thing.  After all, unless you die it is completely useless.  If you do die, you won’t be around to benefit from it.  However, you may want to take another look at it.  When you die, what happens?  There is a funeral held for you, right?  Well, it’s a fact that funerals aren’t cheap.  Year after year they keep getting more expensive.  Someone will have to pay for your funeral.  Your loved ones will need to come up with the money unless you already have enough saved to cover the expenses.

You can easily avoid putting your loved ones through this potentially unpleasant situation by taking out a life insurance policy.  All of your funeral expenses can be covered by the insurance, and in certain situations it can cover permanent disability caused by severe illness or an accident.  Another issue for you to consider is that a funeral frequently follows a severe illness.  Therefore, if there are already big hospital bills that need to be paid on top of all the pain and sorrow your family is already going through, you can only imagine how much pain and stress this might cause.

Although your regular bills might at times be overwhelming to the point where you don’t think you can afford to buy over 50life insurance, you might be surprised at how cheap a policy can be.  Check things out for yourself.  You can contact a local area insurance agent or visit an online insurance website and request a free set of life insurance quotes for people over 50.  Usually life insurance policies are customized to an individual’s needs and finances.  So if you don’t make lots of money, then you won’t need a high coverage amount.  It is always possible to get a low cost policy with low coverage.  However, life insurance is often more affordable than you think.  Just keep in mind it can provide your family with much needed funds in the event anything bad happens to you.

Creating a Budget for Your Personal Finances

Creating a budget

We all know its benefits and yet we find ourselves just having enough in our pockets to cover for the remaining expenses before the next pay check comes.  Creating a budget for your personal finances does not mean depriving yourself of things that you enjoy in life.  When you create a budget, you try to understand how much you have available to spend and allocating the funds wisely.  When done properly, a budget can actually keep you on track financially.  Over time, a budget can help you identify cash flow problems that you didn’t know you had and help you allocate the funds to savings or to an even more lucrative investment.

It is important that you set aside a time to go over your personal finances with your spouse and create your budget jointly.  Once you have written down everything, you will be surprised at how much money you have left to save and this will make you wonder where it all goes when in fact you have covered all the important expense.  It may take some time to get used to but once you and the members of the family get the hang of it, you will all enjoy the rewards of the surplus of funds created by an effective budget program.

Tips of creating a budget for your personal finances

1. Identification of Income and Expense

Before deciding on how you should allocate your funds, your should identify how much disposable income the family has by combining the income that both you and your spouse make as well as other informal sources of income that you both may have.

List down all the expenses that you incur each month and before putting down what you actually spend on each, think of a figure that you would ideally want to allocate for each item.  Once you see the difference you can adjust to minimize the difference between the two.  Make your budget realistic and do not make yourself feel guilty over spending on leisure items.  Anyway, you deserve this reward once in a while for working very hard for your family.

There are online budget worksheets and forms that can guide you through the whole process in case you need some help.  This may see a very daunting task at first, but keeping in mind that this is ultimately for the benefit of the whole family will keep you on track and will help you maintain a personal budget religiously.

2. Allocation for savings

Being able to allocate for expenses will help you identify how much money you still have left to save for savings or other investments.  You and your spouse should agree on a figure that you are comfortable with that you will take away from what’s left of the income and commit to putting this in savings or investment each month.

But do not commit the mistake of waiting for all the expenses to be paid up before setting aside money for savings.  Make sure that you put aside the savings portion prior to paying the bills to make sure that you have this secure.  Most people fall into the trap of waiting until all the bills are paid and end up not saving anything.  The more money you have on hand, the more things you will find to spend it on.

3. Stay on Track

Creating a budget does not end with putting them all down on paper.  You and your spouse should both commit to sticking to the budget and keeping expenses to your desired figures.  Monitor your expenditures and try to stay on target.