Pros and Cons of the Different Types of Crypto Wallets

Bitcoin and the concept of cryptocurrencies were only known to geeks until several years ago, but everything changed after the big boom of 2017. The rise of digital coins earned them a mainstream status and everyone knows about them today.

People use Bitcoin as an investment, for internet shopping sprees, to gamble at online casinos, and for various other purposes.

There are many ways to store your cryptocurrency and this post focuses on the pros and cons of the different types of wallets you can use.

Online Crypto Wallets

One of the biggest problems with Bitcoin and the other cryptocurrencies is that many people found it hard to buy and store them. This issue was pretty much solved by the so-called online cryptocurrency wallets.

They allow every user to simply open a website, register an account in several easy steps and buy Bitcoin or another digital asset. Online wallets are fast, easy to use and you can access them from all of your devices.

On the negative side, you don’t actually own your crypto but use the service of a third-party. The security level is also lower, as your coins are on a server that’s constantly connected to the internet. If one of your devices is compromised, your online wallet is at a huge risk.

You should use online wallets to store low amounts of Bitcoin or other currencies for daily transactions. If you plan to invest a lot of money and hold your crypto for a long period of time, you better try some of the other options on this list.

Mobile Crypto Wallets

Another group of crypto wallets that emerged in the past year or two are mobile wallets. As the name suggests, they come on your phone or tablet and can be used at any given moment. They are friendly even to newbies and they are more secure than online wallets.

And yet, your coins will be at risk if you damage or lose your device. On top of that, if your phone is hacked, your crypto might be stolen.

Similar to online wallets, you should use the mobile alternative for smaller amounts and for convenience, not as your main storage option.

Hardware Crypto Wallets

One of the safest options out there would be to go for a hardware crypto wallet. It’s usually a small device that you can physically possess. You technically store your private keys on a USB device that only you have access to.

The technology is not very user-friendly and the hardware wallets usually cost money, but they are among the best options for keeping large amounts of Bitcoin or other coins.

Desktop Wallets

Many argue that desktop wallets are the best from most of the other options. They are usually easier to use than hardware wallets, but they are almost equally as safe and you actually possess your coins instead of using a third-party.

There’s no risk of someone hacking the website of your online or mobile wallet and damaging your computer beyond repair is close to impossible.

The problem is that you don’t have access to crypto on the go and there’s always a risk if you connect your computer to the internet. You become vulnerable to viruses and Trojan Horses, so you need to spend a lot of time securing your PC.

Desktop wallets are the perfect solution for people who have the skills to take care of their cryptocurrency and computer alone. If you are not confident you can do that, you better use one of the other options.

Conclusion

Picking the optimal type of crypto wallet for your needs is important. You should invest some time and energy to find a solution that works based on what you use your Bitcoin or other digital assets for and what your technical skills are.

What You Need to Know About Payday Loan Consolidation

For many people, the term ‘Payday Loan Consolidation’ conjures up images of a store full of people holding signs that say ‘Payday Loans Is Borrowing Out to Pay Bills’. This is not exactly what it means, but this can be a great way to get a person who may have had a lot of bad credit or a poor score for a long time on a better financial track.

A common problem that people run into with payday loans is that they have bad credit and are unable to get credit elsewhere because they have been turned down. So if you are faced with this situation, there are some things that you can do to improve your situation.

Check out the major lenders first 

The first thing that you should do is visit the website of the major lenders. Visit each of the lenders individually and look at the options that they offer for bad credit. At this point you may want to get a copy of your credit report to see how bad of a credit score you actually have.

In most cases, you should be able to get a loan from any of the companies that you visit to consolidate your loans. If you do have bad credit, the company may offer to help you improve your score if you are willing to make some small payments to start. This is a reasonable option that is available.

The next thing that you can do is go online and find a way to consolidate your loans so that you can use only one lender to handle your payments. When you use just one lender, the company can run only one check on your record at a time.

Two most common types of loans

These are the two most common types of loans that you can take out for bad credit. There are other ways to take out these loans, but the two are the most common.

When you take out loan consolidation, make sure that you read all of the fine print on the paperwork. There is usually fine print that goes over the top of the actual paperwork. In most cases, the fine print can be the single most important thing in the loan that you took out.

Even though the documentation for payday loan consolidation may look like an instruction manual for a vehicle, there are a few things that you need to know. Keep in mind that payday loan consolidation does not mean that you will be able to get a car loan with them. It just means that you will be able to have them processed and paid off much faster.

When you take out a payday loan consolidation, you must get an appointment with the loan officer that you are working with. They will be able to tell you if you qualify for what you are applying for. Also, they will let you know how much the loan will cost.

Bad credit loans for people with bad credit scores

Most people who need to take out a bad credit loan are people who have very bad credit scores and are either turned down by other creditors or simply don’t have enough money to handle their bills. This is a situation that can be really frustrating and even scary for a person.

Now that you understand the basics of how to get a loan with payday loan consolidation, make sure that you pay attention to the paperwork that is being offered to you. If you get a loan consolidation, make sure that you read all of the details so that you will be well prepared to handle all of the ramifications that may come from the loan.

Loans are just like any other loan. If you have bad credit, you may be wondering if there is a way to get a loan that you can handle.

Mortgage Professional Spotlight: Jacques Poujade

When you’re looking to take the leap and buy a home, or move from one home to another, there are many factors to consider. In fact, it can be a mind-boggling process, to try to figure out every step on your own. Thankfully, there are professionals out there, who are experts in every step of the process. Jacques Poujade is a mortgage professional, who is a go-to when it comes to everything involving real estate, and real estate investing. Poujade is a managing partner at LendPlus and is a financial consultant with 30 years of experience in the industry. Poujade is known for giving expert advice when it comes to mortgage trends. So, we wanted to sit down with Poujade, and talk about his area of expertise.

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Jacques, why have you dedicated your career to real estate, and real estate investing?

Jacques Poujade: I’ve seen firsthand how all aspects of real estate, and real estate investing, can transform lives. First of all, I base my business off of the belief that everyone, whether a family unit or individual, should be able to have access to financial services, to afford the home of their dreams. It may be a journey to get there, but with the right professional help, everyone should be able to one day finance a property they are in love with. Because of this belief, I’ve dedicated my career to learning the ropes when it comes to all things real estate and mortgage. It can be a complicated area to navigate without professional help.

How do you use your expertise to help your clients?

Poujade: I’m always looking to share information and resources with people who I feel could use that information the most. I recently spoke about what seniors need to know about reverse mortgages, for example. I wanted to talk about this topic because I know just how challenging it can be for seniors to manage their finances once they hit retirement. I’ve worked in this field for decades, and I’ve seen all kinds of issues, dilemmas, and success stories. I want to share this information with as many people as possible, so they can educate themselves, and be financially wise.

Tell us more about real estate investing.

Poujade: Of course, being able to finance a property can be life-changing for a family, or for someone looking to own their own home. But when it comes to investing, real estate can be a game changer when it comes to overall finances. Real estate investing comes in so many forms, and it can be a confusing world to navigate for newcomers. But the return on investment can make it all worthwhile and can really help transform lives. That’s where I come into play, and where I’m happy to share my expertise in this field, which can be complex to navigate, especially in the beginning.

What are some real estate investing options for newcomers?

Poujade: There’s the option to buy rental properties. I recently shared some information about what people should know before diving into the world of rental properties, and how much a rental property can translate into a return on investment. I’ve also spoken about other ways of getting into the world of real estate investment, such as wholesaling properties. There are countless options out there, and it doesn’t necessarily take a lot of capital or up-front investment to begin venturing into real estate investment. Really, I believe the key is having the proper guidance, so you make sure your time, energy, and financial resources are going to a worthwhile place.

How can people keep up with the latest from you?

Poujade: I’m very active on my social media platforms, especially my Instagram. Anyone who wants to keep up with the latest on the world on real estate and real estate investing can follow me there. Plus, I’m always happy to share information for anyone who wants to learn more.

About Jacques Poujade

Poujade is a financial consultant, with three decades of experience in the real estate industry. He is a Managing Partner at LendPlus, a real estate brokerage agency based in Aliso Viejo, California.

 

Top 5 Things You Should Know about Online Banks

It used to be that banking was all done in person and through the mail. You would go to the bank to cash or deposit your paycheck. You would make another visit to withdraw cash. When you wanted to pay a bill, you wrote a check and put it in the mail. You paid for things at retail stores using cash, checks, or debit cards. How things have changed.

Not only can most payments be handled electronically these days, you do not even have to do business with a brick-and-mortar bank. You can deposit your money with an online bank instead. An online bank provides all the functionality of a traditional bank but without retail branches. Everything is handled online – from deposits to online bill pay and taking a loan out for a new car.

Needless to say that there are plenty of consumers who are wary of online banks. They prefer banking the old-fashioned way, at least in terms of opening an account at a brick-and-mortar branch. Yet online banking is worth looking into. If you are so inclined, here are the top five things you should know about online banks:

1. They Can Be Insured

Online banks can be established just like traditional banks in terms of business structure. They can also be set up as private financial services companies. Here’s the thing: any online bank that wishes to comply with certain federal regulations can be insured by the Federal Deposit Insurance Corporation (FDIC). Being FDIC-insured is all about guaranteeing customers do not lose their money in the event of a bank collapse.

It is important for consumers who want that extra protection to look for an online bank with a website that shows the FDIC logo. That logo tells you the bank is insured. If you are not worried about insuring your deposits, that’s no problem either.

2. Customer Service is Online

Customer service through traditional brick-and-mortar banks is offered both in-person and online. Phone service is also available. The only difference with online banks is that the in-person service is not available. It cannot be offered where there are no brick-and-mortar retail branches.

The online model of banking also encourages online customer service. So while a good many online banks offer toll-free numbers that you can call for customer service, they want customers to make use of live chat, e-mail, and support ticket systems. Chat gives you the best chances of real-time customer service.

One of the downsides here is that communicating online can make it difficult to explain exactly what you need. Most of us just do not seem to communicate as clearly through chat and e-mail. But the opposite side of that coin is the fact that online support leaves an electronic record trail behind. Those records can be returned to if need be.

3. Security Risks Are Reasonable

Some people are terrified of online banking because of its inherent security risks. Such concerns are reasonable – to a certain extent. However, an online bank is no more at risk than a traditional bank with online services. Neither one is at more risk than a credit card company, grocery store chain, online retailer, etc.

Online banks utilize the same types of security strategies as any other business in any other industry. Data transmissions are encrypted and networks are hardened against attacks. Professional IT specialists constantly monitor networks for suspicious activity. As such, anyone who is not afraid to do other things online should not be afraid of online banking.

Obviously, you do not want to be careless with banking information. You want to protect usernames and passwords at all costs. Yet the risks associated with online banking are reasonable. Online banks are as safe and brick-and-mortar banks.

4. Deposits Work Differently

A lack of brick-and-mortar branches makes depositing at an online bank a little bit different. If you were to receive a personal check from someone else for example, there is no brick-and-mortar branch you can visit to deposit it. So what do you do? The most common way of depositing a paper check is to take a picture of both sides using your bank’s app. The bank utilizes the information from those pictures to initiate a deposit into your account.

Deposits really aren’t a big deal in the 21st century. Most of us are paid via direct deposit, so cashing paychecks really isn’t a concern. It is also possible to transfer funds between bank accounts owned by separate individuals. So rather than writing you a check, the other person can initiate a transfer from his account to yours.

5. Access is Never an Issue

Finally, accessing your finances is never an issue with online banking. You still have all of the options of a traditional bank. They are just accessed in different ways. For example, virtually any ATM operating on one of the nation’s major automated clearing house (ACH) networks will let you withdraw cash from your account.

Online banks offering checking accounts give you all the freedom and flexibility of paying with personal check or debit card. You can pay bills online by having money directly taken out of your bank account. Everything you can do with a brick-and-mortar bank account you can do with an online account, except for visiting with the teller standing behind the counter. That is really the biggest difference.

The only other difference you might notice is that some online banks do not offer the same menu of extra services you would find it a brick-and-mortar bank. For example, your online bank may offer traditional banking along with a small selection of loans. Yet you might not have access to things like certificates of deposit (CDs), IRAs, home equity loans, and the like. There are other online lenders more than capable of making up the difference.

It goes without saying that online banking is not for everyone. For those who do use it though, online banking gives them everything they need without having to visit a local branch and stand in line.

Embrace your inner HRH – and ditch the cash

Ever since the Netflix series ‘The Crown’ made its debut back in 2016, it’s captured our imagination and reignited our fascination with all things royal. And it got us thinking: if Her Majesty can get away without carrying cash, why can’t we? Here are our top reasons why you should make like the Queen and ditch the cash.

It’s safer

When Barclays became the first bank to issue a credit card in the 1960s there were concerns over its security. To reduce the risk of fraud, signing for purchases was replaced by the chip and pin method in the early noughties, followed more recently by contactless payments and online banking.

As paying by card, banking via apps, and shopping online have become the mainstay, businesses have increased their digital security, making it harder for cyber criminals to hack online accounts. Whereas carrying cash can make you a more vulnerable target for thieves.

Businesses prefer to be cashless

As cash transactions continue to decrease and debit and credit card use continues to soar, businesses are turning cashless too. Keeping large amounts of money on a premise makes a business vulnerable, as well as increasing insurance premiums. Similarly, cash transactions can often lead to accounting errors as well as extra time spent by staff cashing up at the end of the day – not to mention travelling to the bank to deposit the takings.

As a customer you may notice that card payments, especially contactless, tend to be quicker than cash transactions too. If you need to return an item, but you’ve lost the receipt, you’ll have a paper trail with a card transaction as well.

Helps you budget

When you pay by card you have a physical record of all your transactions, and this can help you budget as you’re able to see exactly what and where you’re spending and how you can cut back.

You can even set up multiple accounts to help you stick to your budget with an account for your wage to go in and an account for your non-essential spending. Your essential transactions such as household bills, insurance, and living costs should leave the account your wage goes in to, whilst your non-essential spending account for things like nights out and clothes should be assigned 30% of your income. Following the 50/30/20 rule, you should be able to save 20% of your income every month too.

Build a credit score

As we move further into a cashless society, it’s becoming more and more important to have a strong credit score, and paying for things more often on your card can help you build a strong credit profile. The whole premise of credit scores is based on how well you use credit. Good credit is necessary if you need to borrow money to buy a house or car, rent a flat, or even get competitive insurance rates.

Whilst we may still have a few more years of paying with notes, carrying cash will soon be a thing of the past, and with so many benefits, perhaps the Queen has been on to something for some time.

 

6 Things You May Not Know about Income Tax Refund

You may be new to filing your income tax returns due to change in your annual income or increase in the taxable income. So as a taxpayer, you have to be aware of terms like income tax refunds that you receive on paying excess taxes. Before, filing for returns, here are certain things you should know how to claim tds refund.

What is Income Tax?

All the citizens that fall in the tax bracket have to pay income tax to the tax department. The taxes collected from taxpayers are used to pay for the infrastructure like roads, government resources, railways, and healthcare amongst others. As a citizen of India, it is the duty of a taxpayer to pay their taxes on time and file the Income Tax Returns (ITR) as per the tax slabs.

Does Everyone Have to Pay the Taxes?

Yes, everyone has to pay their taxes according to the income tax slab. After Budget 2020, the tax slabs have changed. But the plus point of the new tax regime is that you can choose to pay the taxes according to the new tax slab or the old one.

Who Has to File for Income Tax Returns?

Before deductions under Section 80C to Section 80U of the Income Tax Act, 1961, if your total income is under INR 2 lakhs, then you have to file your Income Tax Returns (ITR). The cap for senior citizens is INR 3 lakhs. If you also have other sources of income like property, then it is mandatory to file your ITR.

What is Income Tax Refund?

An income tax refund is a repayment if you have paid excess taxes in that financial year. This is the reason why filing your Income Tax Returns is essential as you are able to claim a refund for any extra Tax Deducted at Source (TDS) that was charged. The refund amount gets transferred to your bank account and the status of the processing can be checked online.

Can I File For Income Tax Refund Online?

Yes, you can now file your Income Tax Refund online on the official website, www.incometaxindiaefiling.gov.in. You can also track the status of your returns and the refunds with the help of the website. You have to register by providing your PAN (Permanent Account Number), date of birth, name, etc.

When Should the Income Tax Returns Be Filed?

You have to file your Income Tax Returns before July 31 if you are filing it online. It is advised to file your returns a month or two in advance as last-minute filing can lead you to encounter a lot of traffic on the website. If you are not sure about e-filing your returns, there are many websites that help you with it by charging a fee.

What Are the New Income Tax Slabs?

The Union Budget of 2020 has been announced and there various changes in the exemptions and deductions you could claim. Also, the tax slabs have been updated and you can now choose which tax regime you want to opt for.

New Tax Slabs for FY 2020-2021

Tax Slab Income Tax
Up to INR 2.5 lakh Nil
INR 2.5 lakh to INR 5 lakh 5% of the total income which is more than the tax slab
INR 5 lakh to INR 7.5 lakh 10% of the total income which is more than the tax slab
INR 7.5 lakh to INR 10 lakh 15% of the total income which is more than the tax slab
INR 10 lakh to INR 12.5 lakh 20% of the total income which is more than the tax slab
INR 12.5 lakh to INR 15 lakh 25% of the total income which is more than the tax slab
INR 15 lakh and above 30% of the total income which is more than the tax slab

 

Under the new tax regime, here are some income tax deductions and exemptions that you cannot claim if you choose the new tax slabs:

● Leave Travel Allowance (LTA)

● House Rent Allowance (HRA)

● Standard Deduction

● Other special allowances

● Chapter VI-A deduction (80C, 80D, 80E and so on), except for Section 80CCD(2) which employer’s contribution to NPS

● Expenses during employment

All You Need to Know about Section 10(10D)

Who doesn’t like having fewer taxes to pay every year? Insurance policies give benefits under certain tax provision to encourage investing in term plans. But it is not advised to view insurance policies just as tax-savings instruments as policies provide security to your loved ones in case something unfortunate happens to you. So, before going ahead to buy a plan suitable for you, here is the tax benefit under Section 10(10D) and the terms and conditions that you should know.

What Is Section 10(10D)?

Section 10(10D) of the Income Tax Act, 1961 enables policyholders to get tax exemption on the death and maturity benefit received from a life insurance policy. This tax provision allows you to avail the lump sum amount as tax-free by claiming it under Section 10(10D) for an income tax deduction. In turn, you are also able to secure the future of your family and fulfil long-term wealth creation goals by buying plans like money-back policy and whole life plan amongst others.

Terms & Conditions of Section 10(10D) of Income Tax Act, 1961

Here are some of the terms and conditions of Section 10(10D) that you need to know about:

  • If the death benefit is received under the Keyman Insurance Policy, the sum assured cannot be claimed as tax-free
  • If the death benefit is received under Section 80DD (3), then sum assured will be taxable
  • For a policy bought after or on 1 April 2003 and before or on 31 March 2012, the premium should not be more than 20% of the sum assured
  • For a policy bought after or on 1 April 2012, the premium should not be more than 10% of the sum assured
  • For a policy bought after or on 1 April 2013, the premium should not be more than 15% of the sum assured for the below-given conditions:
  • Severely disabled individual as mentioned under Section 80U of the Income Tax Act, 1961
  • Suffering from disease as mentioned under Section 80DDB of the Income Tax Act, 1961

Points to Note About Tax Applicability on Sum Assured

Under Section 194DA of the Income Tax Act, 1961, the sum assured given to the Indian Resident policyholder not claimed under Section 10(10D) shall be subject to TDS (Tax Deducted at Source) of 2%. The death benefit or maturity amount exempted under Section 10(10D) will not attract any taxes. And if the sum assured is not claimed under the tax provision but does not exceed INR 1,00,000, then no TDS will be levied. But you need to submit your PAN to the insurer, or else the TDS levied will be 20% instead of 2%.

Now, that you are aware of the terms and conditions for claiming the term insurance sum assured and the TDS applicable on it, you can be cautious and save on taxes.

 

Advantages of Options Trading

Options are a great way to start investing for many reasons. They offer a great way to diversify your portfolio while limiting the amount you will need to invest in case your stock doesn’t move in the direction you are predicting. Options are a more affordable way to invest and, when planned well, can bring some excellent returns.

What are Options?

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Options are contracts to purchase a stock or investment at a set strike price. There are two common types of options contracts, call options, and put options. Call options set a timeframe where you have the right to purchase up to 100 shares of a stock for a set strike price. Put options grant you the power to sell stocks at a set strike price.  These contracts offer some fantastic benefits that many investors tend to overlook. By taking the time to do your research on options, you can have a competitive advantage over the market and see some excellent returns in your investment portfolio.

Options Are More Affordable

One significant benefit of choosing to invest in options contracts is that they are typically far more affordable than buying the shares outright. The options contract gives you the right to purchase or sell depending upon the contract to 100 shares of stock. Because you haven’t taken ownership of any stock, option contracts tend to be significantly cheaper. If you are unsure where a stock may be heading, but have a feeling the company might increase in value, buying a call option is a great way to secure a set price, and know how much you stand to lose. This is a substantial benefit to options trading as you can invest with a bit more confidence compared to purchasing a stock outright and having your losses remain unknown.

Options Can Bring High Returns

Options contracts are a great way to play the market with some added leverage. As options contracts are more affordable, you can budget for more options, then if you were to purchase all of the shares outright. With a lot of practice and market research, this is a great way to maximize your returns when you land on a few stocks that see some increased value. All with a smaller initial investment.

Options open the door to a whole other level of strategy that can significantly benefit the investor when used correctly. While utilizing these contracts and spreading your investments around, you have more opportunities to see high returns. If things don’t work out, you can only lose your initial investment, nothing more. This makes trading options a great way to take advantage of a more aggressive strategy, yielding much higher returns on your investments.

If you are interested in learning all you can about options trading, Raging Bull is a site with professionals ready to help you learn everything you need to know. They have all the tools you need to become a successful financial trader. If you want to gain the competitive edge you need to trade options successfully, check out their article about the best stocks in options trading.

 

Increasing Term Insurance and Riders

You must be well-versed with a term plan if you have bought an insurance policy or considered to get one. But did you know about increasing term insurance plans? Term policies also have several types of which this is one. Let’s see what an increasing term plan is, its benefits and riders.

Increasing Term Insurance Plans

An increasing term insurance plan is a policy where the amount of sum assured or the death benefit keeps increasing on a yearly basis depending on the insurer. In such a plan, the premium may or may not change. Such an insurance plan has numerous benefits as the sum assured keeps increasing and in turn, compensates for the increased expenses of your family as well as for inflation. Depending on the insurer, the sum assured can have a maximum limit as to how much it can increase.

Benefits of Increasing Term Plan

The most vital benefit of increasing term insurance plans is that you can plan certain important things like a wedding or higher education during a period when the sum assured is high. In case something were to happen to you, your loved ones would have financial aid to pay off any of your debts and also, take care of their needs. The increasing insurance policy enables your family to take the sum assured as a lump sum or opt for a regular payout depending on your insurer.

Additional Rider Benefits

A rider is an add-on that can be combined with your term plan to increase the coverage you get from a basic policy. Various insurance riders are available that help you cover unfortunate incidences that are not normally included in a life insurance plan. Here are some popular riders that can be added to your policy:

  1. Critical Illness Rider: By getting a critical illness insurance rider, you can secure yourself from major illnesses. A lump sum payout is given to you on the diagnosis of the illness which helps in paying off the expenses of the treatment as well as any indirect cost like rent. Kotak Life Insurance covers 37 major illnesses like cancer, paralysis of limbs, blindness, brain tumor, etc.
  2. Permanent Disability Rider: This insurance rider covers you in case of an accident causing permanent disability. The sum assured is paid over a period of time to take care of your expenses.
  3. Accidental Death Rider: In case of accidental death, this rider protects your loved ones by providing a lump sum amount. This lump sum enables them to become financially stable and eliminate the need for becoming dependent on someone else.

Getting Life Insurance Over 50, What it Costs and Why You Need it

Some people buy life insurance so that the payout can pay off their mortgage when they die. Others do it to have a comfortable sendoff while majorities do it to replace lost income when they pass away. You’ll realize, however, that life insurance premiums get expensive with age. It is costlier at 50 and above than at 20 or 30. So, do you need this coverage when your children are already adults? And, how can the payout help the people you leave behind? Let’s answer the questions below.

Reasons You Need Life Insurance Over 50

Overall, you require life insurance over 50 for the following reasons:

1. Financial Gift for Dependents

You can pass your life insurance benefits to your dependents as an inheritance gift. The lump-sum payout can help them invest, buy a property, or start a business. It will give them the financial freedom to start anew when you are no longer there to provide for them. What’s more, it acts as a replacement for your pension.

2. A Solution to Standing Debt

There are different kinds of debts that your life insurance benefit can help to clear. Popular examples include mortgages and estate taxes. The good news, though, is that you can protect those you leave behind from the stress of having to sell properties to pay off what you owe. Life insurance is also essential if you are a cosigner to a loan. The money can pay off a cosigned loan.

3. Funeral Benefits

Sometimes burial expenses exceed $10,000 if you factor in things like urn or casket, a burial land, headstone, and funeral mass. Since death is an unexpected event, the funeral cost can overwhelm the people you leave behind. Though life insurance payout may not bring you back into their life, it can make the sendoff less stressful.

4. Fixed Payout

Unlike when you are young, an over-50 life insurance policy attracts fixed premiums. So, it means you can expect to pay the same amount until the end of your term or until death. More to it, the payout is fixed. In this case, your dependents know what to anticipate when claiming death benefits.

5. Acceptance Guaranteed

The biggest challenge of buying life insurance when you are young is that there are many health restrictions. You have to pass specific medical tests to be eligible. Fortunately for the elderly, the over 50 policies do not have such restrictions. So, you are almost guaranteed acceptance upon application.

How Much Does Life Insurance Cost After 50?

Generally, there is so much flexibility when picking a life insurance policy. As you reach 50, expect to pay higher premiums, and the curve continues to rise as you get older. For example, expect a $5,000-death benefit plan to cost you about $16/month (when in good health) or $20/month (when your health is not a factor) when you are 50 and almost double this when you are 65.

You should also note that the monthly premiums depend on gender just as much as health and age. Ideally, men pay more than women of the same age and health status. For instance, a 60-year old healthy man should expect to pay about $43/month for a $10,000-death benefit policy while a healthy woman of the same age is expected to pay about $33/month.

The other cost determinant is the duration, and this brings us to term life insurance. From the name, term life insurance is for a specified period. If you don’t die within the time, which we all pray for, you must renew the policy for your dependents to continue being eligible for the payout.

When at 50, you are eligible for a 20-year and a 30-year renewable term. However, you only qualify for a 20-year run when you get to 60. Usually, an extensive-term length attracts higher premiums, and this is probably the major downfall of life insurance after 50.

Life Goes On

No doubt, life insurance is still dependable even after 50. Your loved ones stand to benefit when you are gone, and this is the pride of every parent, child, or benefactor. Remember, though; most insurance companies expect you to contribute for at least a year before your beneficiaries can be eligible for a payout. So, start to contribute now.