Tag Archives: social issues

Life Insurance 101: The DIME Method

Life insurance is one of those topics that can often be taboo.  Why?  Because nobody likes to talk or think about death but it’s the one thing we can’t avoid.  As a result it is very important that we plan for the inevitable by purchasing some form of life insurance.  It’s just smart and gives you and your loved ones peace of mind.

Purpose of Life Insurance

The primary purpose of life insurance is for income protection in the case of premature death.  If you’re the sole or main provider for your family or someone depends on your income for survival, then you should definitely have insurance.  If there is no need for a death benefit there is no need for life insurance.  For example, if you are single, have no kids.

The amount needed depends on your living situation as well as other pertinent details…it can get complicated.  However, a great way you can ensure that you have the basics covered is by using the DIME method.

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Tax Deadline is Drawing Nigh: Contribute to a Traditional or Roth IRA

If you’re anything like me then you hate filing taxes so you’ve waited until the very last minute to do them.  Most individuals are anticipating a refund this year….yay for them.  However, if you find yourself owing the IRS, don’t panic…at least not yet….there’s still time to do something about it.  Why don’t you consider contributing to an IRA?

An IRA (Individual Retirement Account/Agreement) is a very popular tax advantaged strategy that has been used for years in tax planning and is a great way to save for retirement.

IRAs have not always been known as IRAs.  Several modifications and legislations have taken place to get it to where it is now.  In a future post, I will go more into detail about the history of IRAs and how they came to be.

There are several types of IRAs to choose from depending on your situation; however I will just touch on the two most popular ones….Traditional and Roth IRAs.

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How I Saved Money on my Car and Homeowner’s Insurance

The other day I received a renewal notice for my homeowners insurance and guess what?  It went up by $110 dollars!  Needless to say, I was not happy at that so I immediately called the insurance company and asked why.  Their response really wasn’t a response at all or shall I say; it was a cop out response at best. The customer service agent told me that claims,  in my state had risen over 100% in the last year and as a result that $110 increase was my share of the burden….then he said, “that’s how insurance works”.

I was not amused.  🙁

The increase only resulted in a hike of about $9/month on my mortgage. I guess when you look at the big picture, it’s not that bad….it’s the principle…the goal is to save money not shell out more, however, some things are beyond our control.

Luckily the customer service agent suggested that I get an auto insurance quote through them which could result in lower homeowner’s insurance.  This is called bundling policies.  So basically, instead of my homeowner’s insurance going up $110, it would only go up $35…that’s a savings of $75.   I didn’t know if it would work but it was worth a try.

Well to my surprise…it did work!  Not only did I save $75 dollars on my homeowner’s insurance, but my car insurance went down by $25/month!  That’s unbelievable.  All this time, I could have saved a ton on car insurance (I sound like a commercial) by switching and bundling.  In a year’s time I will save a whopping $300 dollars in car insurance which will more than cover that $35 hike in homeowner’s insurance.

So take a lesson from me….bundle your policies (car, mortgage and life, etc.) with one company, or at least do the numbers by getting a quote to see where you stand and then make an informed decision.

Unfortunately, I’d been lazy and never thought about bundling my insurance policies.  Now, I’m thinking of switching my life insurance to this same company or at least getting a quote just to see if I can save more money.  Every little bit helps…right?

Here are some tips to go by when bundling policies:

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