Financial

Top 5 Reasons Why Insurance is Important in Life and Helps

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Life insurance is about securing your greatest asset: your own self and life because nothing is more important than your life. As we go through the different stages of life and grow older, find a partner, and start a family, we realize the importance of getting insurance as a long-term plan for financial stability.

Insurance provides you with the financial stability to sleep peacefully, knowing that you and your loved ones are protected and in good hands. The concept of life insurance can be complicated, and it’s more difficult to decide if you need one or not. Here are a few other reasons why you should get life insurance.

1. Inheritance

Nobody wants to leave their loved ones with the burden of loans and no money to live one. Everyone wants their family to be financially secure after their death. Life insurance can help you achieve that by enabling you to build an inheritance. If you don’t have other assets to leave behind as inheritance, you can create a life insurance policy and name your loved ones as beneficiaries. This way, you can secure your children’s future and provide for them even when you aren’t here.

2. Protect your loved ones

Life insurance becomes a must when you are the only bread earner in the house. Life insurance is important when your loved ones depend on your income for a living because it takes care of them financially in your absence. This holds especially true for parents with young children or a spouse that is completely dependent on the other and would find it difficult to sustain a living if their partner passed away. You need to think long-term and keep in mind that you will have to provide enough money so your family can cover the cost of daily expenses.

3. Pay of loans and debts

Your loved ones also need to be free from any outstanding debts and loans. Funeral and burial expenses can easily account for up to fifteen thousand dollars. When you go, you obviously don’t want your loved ones to worry about financial problems along with the emotional trauma they will be going through.

4. Increases financial stability

Everybody wants their loved ones to live peacefully and happily without any financial problems and issues when they pass away. Getting life insurance secures your loved ones’ future and takes care of their education, marriage, and career. But you must see best final expense insurance companies available in the market before you make your decision.

5. Sleep peacefully

Nobody knows when they are going to pass away. Death is inevitable and will eventually occur. No one can ever replace a person and the contributions and love that they have for their family. But life insurance can help provide financial stability and protection in times of need and unexpected events.

Top Reasons Why Insurance is Important in Life

Conclusion

Getting life insurance will, without a doubt, bring you peace and allow you to sleep peacefully at night, knowing that you and your loved ones are in safe hands. Life insurance protects your loved ones from the unexpected events that they may face once you are gone and provide them with care and financial aid whenever they require it.

Positive Words Research – Top Reasons Why Insurance is Important in Life

4 Simple And Smart Suggestions To Boost Credit Score

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Do you often pay high-interest rates on your loans or credit cards? Or, does your lender or card issuer ask you to pay more as EMI than someone you may know? If your answer to any one of the two questions is ‘Yes’, then you are a victim of a low credit score.

A high credit score brings with it several benefits like a low-interest rate, better terms, higher repayment tenure, and broader discounts. Such benefits can conveniently decrease your interest bills than the current home loan or other loans’ interest rates. Read this article to discover four simple yet effective ways to boost your credit score.

The Top-4 Ways to Enhance Your Credit Score

When you apply for a home loan or any other loan, the lender would take a look at your credit score and determine the interest rate. If you want a lower interest rate than the current home loan interest rates, you have to increase your credit score. At this point, it is prudent to note that the current home loan interest rates are the lowest when compared to other loans.

However, before taking steps to increase the score, you should find out the reasons why your score is nose-diving.

Here are the ways you can boost your credit score!

1. Pay More When You Can Afford To

If you have an existing loan, like a home loan, the chances are high that you pay a fixed amount every month. In the case of a floating rate of interest, your EMIs increase or decrease depending on market rates.

As you continue paying the EMIs on time, your credit score slowly ascends to the top. To accelerate the process, you can pay something extra when you manage some extra cash. Doing so can increase your credit score considerably, as it reduces your credit utilisation ratio.

2. Extend Your Loan Term

At times, your lender may tell you the advantages of closing off your loan account, like a home loan, early. The lure of massive savings may prompt you to opt for a short tenure loan. While it’s true that a short duration indeed makes you debt-free earlier, it can also increase your loan bills, making it challenging to repay on time.

In such cases, it is better to request your lender to increase the loan term. As you repay the loan bills before due dates, your credit score would jump healthily and steadily.

3. Keep Your Credit Utilisation Ratio Low

The Credit Utilisation Ratio (CUR) is the amount you owe to lenders compared to your net monthly income. If your CUR is 50%, it means you spend 50% of your net earnings to pay credit bills, including home loan EMIs.

If you aspire for a high credit score, your CUR must be below 30%. A low CUR means less stress on your financial health and better credit score.

4. Keep an Eye on the Credit Bureau

While it may seem too naive a suggestion, it can sometimes be the reason behind a low credit score. There are instances when the credit bureau is late in updating your records or might have updated it incorrectly.

It would be best if you check your credit score at least once every month and point out any anomaly. CIBIL, for example, provides you with the CIBIL Dispute Resolution Form, which you can submit online with details of the error.

Conclusion

Boosting your credit score can open up a door of opportunities. In best cases, you can get a much lower interest rate on your loans, like a home loan, than the current interest rates.

Positive Words Research – 4 Simple & Smart Suggestions To Boost Your Credit Score

Money May Not Buy Happiness But Financial Stability Helps

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Your parents likely told you once or twice when you were young that money doesn’t buy happiness. Not to say they were wrong, but as we age we begin to understand the importance of peace of mind and that being caught between a rock and a hard place is a lot easier to squeeze out of if you’ve got the right funds stored away.

While money may not buy happiness, there is something to be said about the positive effects budgeting your income (and debts) affords you. Creating stability within your finances can reduce stress and create more opportunities for the funnier things in life. As adults, this financial stability can come in many forms. In particular, saving up for your first home and refinancing your student loans are pretty common, important milestones. Keeping a positive mindset and utilizing habits for success will be essential when working through these challenges.

Adjustment Is Sometimes Necessary

Considering how many graduating adults finish school with debt, refinancing your student loans is a great option that can help provide more financial stability and create more flexibility within your monthly budget. Refinancing can seem like a hassle, but the process is fairly simple and oftentimes easier than you think.

Refinancing can also provide a much-needed mental break considering the negative, stressful feelings that arise when you watch your saving get drained by those huge monthly payments. It’s also important to keep in mind that refinancing doesn’t necessarily mean you’re incapable of paying back your loans. Rather, it’s like tailoring your payments to better fit your current place in life. For example, if you have a student loan repayment plan with a high-interest rate, you can consider refinancing the loan with a private lender such as Earnest refinance.

Financial stability

There are a few things to consider before refinancing. As the experts at LendKey explain, “When making any financial decision, timing is everything, and refinancing student loans is no different. There are several factors to this – some a student can control and others they cannot – that affect when they should refinance student loans. This includes the timing of graduation, interest rates, employment, and credit score.”

Refinancing also depends on which lender your loans are through as the requirements vary from company to company. Either way, it’s definitely worth investigating to see if you qualify. Adjusting your payments to better suit your income makes it easier for you to pay in full and on time each month, which is good news for your credit score and stress levels.

Confidence Is Key

Another significant milestone, buying your first home, is a financial goal that many adults are currently working towards. The process of becoming a homeowner can often seem intimidating, especially if you’re unsure if you’re actually ready for that kind of commitment. It can be fairly easy to focus on the negative feelings that arise when approached with a significant milestone such as this. However, you’re likely not giving yourself enough credit, and although the process can be tricky to navigate at times, it’s important to not deflate your own dreams of owning a home one day.

Of course, there is definitely a lot to consider when it comes to buying your first home: mortgage rates, down payments, property taxes, etc. You also need to ask yourself if you are in a position to stay in your home for an extended period of time. As Quicken Loan suggests: “Generally, we recommend you only consider buying a house if you plan to live there for at least five years, but this depends on a lot of factors, like the housing market, rental prices, and how much equity you have in the house.”

Create a goal for yourself

While you may not be able to afford or find your dream home right now, it’s still worth creating a goal for yourself and beginning working towards it. With that in mind, shopping for a new home can certainly drain you mentally and physically, which means it can be tempting to give up. Nevertheless, with the right budgeting, discipline, and determination, buying your first home doesn’t have to be so scary.

As we mature, financial stability becomes more and more important. Finishing school, owning a home, and finding the right career are all valuable goals the majority of us all hope to achieve one day. While money may not buy happiness, when we are able to better manage our time and money, we can worry less and enjoy our spectacular life even more.

Author’s Bio

Avery T. Phillips is a freelance human being with too much to say. She loves nature and examining human interactions with the world. Comment or tweet her @a_taylorian with any questions or suggestions.

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