WalletPop.com interviewed experts in saving, spending, borrowing and investing to find out the biggest mistakes people make when it comes to their hard-earned money.

Will you be one of the thousands of people to make these mistakes in 2010? Let’s hope not…

Here’s what they say are 5 critical money mistakes to avoid this year:

1. Not having life insurance. If anyone depends on you financially, you NEED life insurance! (we’ve been saying this all along) – Even if you’re a stay-at-home parent, you need life insurance, because if anything happened to you, child-care costs would come into play. The idea isn’t that your surviving spouse or dependents would spend the money; rather, you want an amount that’s large enough for them to invest and be able to live in a manner to which they’re accustomed off the returns.
2. Being late with a credit card payment – This is just an all-around bad thing to do. Your credit score gets dinged, you get slapped with a nasty late fee and your interest rate will probably zoom up.
3. Buying a company’s stock just because you like what it sells – Plenty of companies have great products or services, but there are so many other factors that contribute to a stock’s day-to-day price and its long-term value that you could end up losing money anyway. Do your homework and expand your investment strategy beyond the facile.
4. Not having an emergency fund – “The biggest mistake I’ve noticed is that while a lot of people know it’s important to have a 401(k), they forget to focus on an emergency savings fund,” says Clarky Davis, a personal finance expert. Too many people get intimidated by the idea of having three or six months’ worth of expenses saved up and never take the first step toward creating a rainy-day fund. “Start small, even if it’s just change every week,” she advises. “You’ve got to do what you’ve got to do and not think that you’re a failure for not having a huge pile of money saved up.”
5. Buying lunch instead of brown-bagging it – Your average cost of lunch out is around $6.50 and that can be even higher, depending on where you live. But on average, it only costs between $1.37 and $1.80 to make and bring your lunch from home, regardless of where you live. So stock up on cold cuts or salad greens, and make that noontime deli trip a special treat instead of a daily occurrence.

Read the full article at WalletPop.com

For more money saving tips keep reading AccuQuote’s blog, become a fan of AccuQuote on Facebook and follow us on Twitter. And don’t forget to check here first to learn about the benefits of term life insurance. By shopping online for free term life insurance quotes, you may be able to save up to 70% on your term life coverage!

January 28, 2010

5 Reasons to reevaluate your life insurance needs in the New Year

Description:

The New Year is a perfect time to take a look at your current financial status and make changes if necessary. Byron Udell, the nation’s foremost life insurance and annuity industry expert, gives five reasons why you should reevaluate your life insurance needs in the New Year.

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Length: 6:31

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Purchasing life insurance is truly a selfless act of love. You do it for love. That’s why we’re passionate about making sure everyone understands the importance of life insurance.

If you have life insurance, whether you purchased it from us or not, please take a moment to tell us why you feel life insurance is important.

If you don’t have life insurance (no hard feelings by the way), please tell us why and what your feelings are toward life insurance.

Your comments will help us make a difference by educating others and understanding what people like you value most. We look forward to hearing what you have to say!

Marriage means many things: buying a new home, taking vacations, having kids, planning a comfortable retirement, etc. But it also means that you (well most of us) will become financially dependent on each other. That’s why it’s important to take out a term life insurance policy to cover shared financial obligations if one of you were die prematurely.

And because life insurance is so important, you need to review your policy if your marital status has changed. Here are some examples:

• Death – If your spouse, who was the beneficiary, has died and you have no children you may no longer need as much or any life insurance at all. But be careful, because if your children are still young, you may need to increase your coverage. The most important thing to remember is to change your beneficiary designation immediately. This way your loved ones will be able to collect the death benefit when you die, rather than a judge deciding who gets what.
• Divorce – Again, make sure you reevaluate your financial needs. If you don’t have kids, you may not need as much coverage, but if you do have kids you’ll probably need to keep or even increase your current coverage. Also be sure to change your beneficiary designation. If you no longer want your ex-spouse to receive the proceeds of your life insurance policy, make that clear. If you have a joint life insurance policy, you’ll want to talk to your financial advisor about separating it. You may need to apply for a new individual term life policy.
• Re-marriage – If you have re-married, make sure to change you beneficiary designation. And if your new spouse makes more or less money than your previous spouse, you’ll want to reevaluate how much coverage you have. Remember, experts recommend having 10 to 15 times your annual salary in life insurance coverage, but you may need more depending on your specific circumstances.

The most important lesson here is that you need to review you life insurance needs regularly. In addition to your marital status, there are many life events that affect how much life insurance is an adequate amount.

For more information about reviewing you life insurance needs or for a free term life insurance quote, talk to a licensed life insurance professional at AccuQuote.

Just a reminder – term life insurance is the most cost-effective type of life insurance. That’s why it remains more popular than permanent life insurance coverage. It offers maximum benefits for a great value, and for a specific amount of time.

There are three types of term life insurance coverage. They are:

1. Return of premium term life insurance – You get your money back of all the premiums paid at the end of your term (if you haven’t died).
2. Annual renewable term life insurance – You have to renew your rate every year based on changes in your health and lifestyle.
3. Level term life insurance – Your premium is guaranteed for the entire length of your term.

Today I’d like to focus on level term life insurance. Why? Because it’s the most common type. It offers term lengths that range from 10 to 30 years and the yearly premiums stay the same for the entire length of your term.

How does it work? Your cost is based on your health and lifestyle, just like the other types of term life insurance. But the reason this one can remain level for the life of your term is because underwriters calculate the sum of what your annual renewable term life rates would be…so it’s like an average. And making level payments is much easier to keep up with than constantly having to be reminded of how much you owe.

If you’re in less than satisfactory health or you think your health might decline in the future based on your family’s medical history, level term life insurance is definitely a great option. But remember, even if you’re in good health it’s wise not to wait to purchases a life insurance policy because rates increase with age and poor health.

For more information about the types of term life insurance, contact a licensed agent at AccuQuote. We can help you choose which one is right for your specific situation and provide a free term life insurance quote.

It’s challenging to cut back on heating costs when you’re facing sub-zero temperatures. But many of us are doing whatever it takes to save money due to poor economic times, even if it means having to wear multiple layers around the house. But because I’m determined to find ways to save on everything, I yet again searched for advice from other people who have uncovered ways to save. This time, it’s how to save on our winter heating bill.

Today’s advice comes from Mike Valles’ personal finance blog:

1. Determine to Make a Difference – Lower costs in your electric bill will probably also mean making some sacrifices. If you are determined, however, your electric bill can be noticeably smaller next month. The key is to do something about it today. This may mean putting on more clothes, wrapping up in a comforter while you sit around the house, or something similar.

2. Turn the Thermostat Down – This will affect your heating bill the fastest. With every degree that you reduce it, the more you will save. With a sweater,
you can probably keep it about 68 degrees during the day. Greater savings can be had if you turn it down to about 65 degrees while you sleep. Also, don’t forget to turn it down while you are at work, too, for a much larger savings.

3. Turn Down the Water Heater – Turn your water heater’s thermostat down to about 120 degrees. If it is in a cold basement, you may also want to wrap a water heater blanket around it, too, to help insulate it.

4. Use Your Appliances Less – Besides your heating and air conditioning bills, appliances will use the most amount of electricity. You can raise the temperature in your refrigerator some, and you can run your washing machine less by only washing full loads. It’s important to maintain your appliances, too, for better savings. Things like computers can be unplugged when you are not using them. Most electronics will consume electricity when they are plugged in – especially if they can operate by a remote.

I hope you’ll see a difference by using these helpful tips consistently. If anyone has additional advice or has lowered their heating bill by using these ways to save, please comment.

For more money saving tips keep reading AccuQuote’s blog, become a fan of AccuQuote on Facebook and follow us on Twitter. And don’t forget to check here first to learn about the benefits of term life insurance. By shopping online for free term life insurance quotes, you may be able to save up to 70% on your term life coverage!

There are some circumstances where you may have a hard time qualifying for traditional term life insurance coverage. For example, if you’re in poor health, live a risky lifestyle or your occupation doesn’t allow the time. However, there’s another option that will allow you to obtain some type of coverage so you can protect your family. It’s called a quick issue policy.  

If you can relate to any of the following situations, a quick issue term life policy may be just right for you: 

• You don’t want to get stuck with a needle
• You’re never home because your occupation is a truck driver, boat captain, offshore oil rig worker, etc.
• You’re a U.S. citizen who does a lot of foreign travel in dangerous countries
• You want a small coverage amount for a shorter term

There may be additional situations that make you eligible for quick issue life insurance, so if you think this is the right type of coverage for you, contact an experienced life insurance agent at AccuQuote for a free term life insurance quote.

But remember, if you’re young and relatively healthy, traditional term life insurance coverage is better because it allows you to purchase a large coverage amount for a longer term. The point of having any life insurance coverage at all is to make sure your family could continue living the lifestyle they’re used to should you die prematurely.

Life insurance should serve as the foundation of your family’s financial security, helping to ensure that your loved ones will be alright financially even if something were to happen to you.

The LIFE Foundation tells us about the seven wonders of life insurance:

1. Buys time – Allows loved ones to focus on their grief by helping to pay for the funeral and other final expenses.
2. Provides a fresh start – Lets loved ones start with a clean slate by helping to pay off credit card bills, outstanding loans and even the mortgage.
3. Generates income – Helps replace lost income for years to come so that surviving family members can continue to pay for life’s necessities.
4. Offers flexibility – Gives a surviving spouse the chance to take time off from work or to switch to a job that offers a more flexible work schedule.
5. Creates opportunities – Can provide funding to start a business, or pay for schooling so surviving family members can train for a new career.
6. Funds for the future – Offers a way to fund longer-range goals like a college education for the kids or a secure retirement for a surviving spouse.
7. Leaves a legacy – Gives parents the chance to leave future generations with the legacy of long-term financial security.

You can leave a legacy by getting a free term life insurance quote from AccuQuote. Our experienced life insurance agents can help you find the best term life insurance for your family’s needs, at a near record low rate. Start shopping for cheap life insurance today!

If you purchased a term life insurance policy several years ago, it may be a good time to find a new policy that costs less and provides better protection. Right now, term life rates are near record lows! So you’ll probably be able to beat the rate you’re currently paying by just shopping around.

But remember – NEVER cancel an existing life insurance policy until a new one is “in force.” What does in force mean? It’s the insurance industry’s language for a policy that’s active and paid for…meaning that if you died today…your family would be covered. If you cancel an existing policy before your new one is in force you risk leaving your loved ones unprotected should you die unexpectedly.

Also keep in mind that if your health has declined since you first purchased your policy you may have trouble qualifying for a new one at a better rate…or even qualifying at all. If your health is poor and you end up qualifying for coverage, it’s possible that the premiums on your term life insurance policy will increase dramatically when the level term ends.

If this is the case, you have another option besides replacing your existing term life insurance policy. You can choose term conversion. What is it? It’s converting your existing term life insurance policy to a permanent one. The process is easy and guaranteed even if you’ve had a change in health. Here’s how it works:

• You don’t have to take ANOTHER medical exam
• The new premiums are guaranteed for the rest of your life
• The unused premiums from your existing policy will be credited toward the new one

But…

• The conversion option is only available if exercised no later than a certain age, and
• If you’re thinking about conversion…don’t wait! The premiums for conversion will increase with your age

Whether you choose to replace your existing term life insurance policy with a new one or convert it to a permanent policy, the most important thing to remember is that some life insurance coverage is better than having no coverage at all.

Get a FREE term life insurance quote from AccuQuote…and ask the experienced life insurance agents about your options.