Buy Insurance Only Where It is Needed
A common misconception is that it is a good idea to buy insurance for every family member, including your children. True, life insurance for children is relatively cheap, but that is because of their minuscule mortality rates. Therefore, most of the premium for universal insurance (also called whole life, cash-value or variable insurance) goes into a tax-deferred savings account.
However, keep in mind that most of the first year's premium goes to pay the agent's commissions. After that, expenses consume at least ten cents of each dollar. What is left earns only about that which a Certificate of Deposit (CD) in a bank would earn. And there is much more flexibility with a bank CD than life insurance.
The best way to approach the insurance issue is to insure only the heads of household who are the wage earners for the family. Inexpensive term insurance would be a better value. For example, $250 in universal insurance buys only $18,000 worth of coverage. With term insurance it would cover $250,000 worth of insurance. Then set up an automatic savings plan for your children's education.
Related Articles
14 Ways to Get Free Postage and Envelopes
14 Ways to Get Free Postage and Envelopes
How to Get Free Subscriptions to Magazines
There are a large number of "trade" magazines, journals, newsletters, and newspapers which are mailed absolutely FREE to interested firms and individuals who merely ask for them.
How to Buy Homes and Land for a Few Dollars
Yes, you can buy homes, apartments and land for next to nothing by using the procedure of bidding at "tax delinquency and lien sales." These are made to recover unpaid taxes on property which is auctioned off 3 to 4 times each year.
Get All the Grocery Coupons You Need
Anyone who doesn't use coupons when they go grocery shopping is missing out on an easy way to save money. Many stores double coupons, so a 35 cent coupon will actually save 70 cents.
How to Get Free Travel
If possible, appoint yourself as President of your own non-profit organization and have the organization supply you with a "free" vehicle will all be expenses.
The World's Only Untraceable Bank Account
It may have been possible in the days of swashbuckling pirates for the individual with a few extra bucks to hide his stash in a chest in the ground beneath a secret palm tree and be reasonably sure that his money was sagely hidden from other pirat...
Choosing a Bank That's Right for You
It is important to select the right bank. Do NOT choose any bank―be fussy! There are two main objectives to seek when searching for a new bank.
How to Get Free Life Insurance & Pension
Once you have formed your own non-profit organization, you merely place in your corporate charter the provision that life insurance and pension be paid by the organization of which you are a member.
The Inside Secrets to Personal Tax Shelters
Everybody wants to keep as much of the money they earn as possible. Those people in the higher income brackets are forever looking for a way to protect their money from the income tax collectors.
34 Legal Methods to Cut High Postage Costs
34 Legal Methods to Cut High Postage Costs