It’s Never too Early to Start a Plan with These Steps

  • Begin with the end in mind!
  • Understand your paycheck.
  • Create a budget. Separate your needs from wants and live within your means.
  • Start saving monthly for the unexpected.
  • Master the concept of compounding.
  • Sign up for your employer’s 401(k) or 403(b) plan to earn the match.
  • Get insured!  Protect your family with life insurance and 60% of your income in disability insurance.
  • Aim for a credit score of 760 or higher, and pay your bills on time.
  • Develop saving goals from short term (house, wedding) and long term (retirement, children’s education).
  • Stick to the plan and keep your eyes on the goal!

When Will Your Insurance Premiums Increase?

Do you know if and when your insurance premiums are set to increase? Life insurance, disability income insurance, and long term care insurance are all an important part of a wealth protection strategy, but it’s important to understand how your future premium situation may affect your plan.

Term life insurance policies are usually issued with a level premium that is guaranteed for the length of the term, but when the term expires they jump significantly in price.

Permanent life insurance policies are intended to be a level premium for the life of the insured. Unfortunately, many policies are started with too low of a premium. Based on the structure of the policy, it’s common that additional premiums will be required in later years. By reviewing your policy with an advisor, you may be able to prevent a premium surprise down the road.

Additionally, disability income insurance and long term care insurance policies may be lacking provisions to lock the required premium for a guaranteed number of years. As the more and more people are using their long term care benefit, insurance companies have been forced to raise rates.

When purchasing an insurance policy ask your advisor about the financial strength of the company and the track record regarding premium increases.  If you already own a policy then review it to make sure everything is on track. Remember that it’s an advisor’s job to apply their expertise to make sure your coverage fits within your financial boundaries now and into the future. To learn more reach out to Veracity Financial Services and obtain reassurance.