Retirement Planning - Credible Resources For Planning Your Future

 

Retirement planning is a crucial part of planning for your future. Unfortunately, it is oftentimes left on the back burner because many people do not have sufficient income to contribute to a retirement fund or investments. Today, a large percentage of Americans are living paycheck to paycheck; struggling to get through the week and never giving retirement planning a second thought.

 

In a perfect world, retirement planning would begin at birth. Imagine how much money you could have if your parents put just $10 a week into a retirement account starting the day you were born. The reality is most Americans do not begin planning for their retirement until they are well into their 40s or 50s. Even worse, many people don't prepare for their golden years at all. Instead, they end up living off a fixed income provided by the government.  

Retirement planning doesn't have to difficult, confusing, or overwhelming. It is not limited to the wealthy or fortunate few. In fact, planning for your retirement can be downright exciting and exceptionally rewarding. There are endless opportunities which put your money to work for you. All it takes is a bit of time to conduct research or consult with a professional retirement planner.

Perhaps one of the most trusted and reliable resource for retirement advice is the American Association of Retired Persons. An advocate for retirees, the American Association of Retired Persons offers a comprehensive financial planning section on their website. Everything you ever wanted to know about Individual Retirement Accounts (IRA), Simplified Employee Pension (SEP), stocks, bonds, mutual funds, low-cost index investments, real estate investment trusts (REIT) and other investment opportunities can be found at the American Association of Retired Persons website.

 Another source for obtaining Retirement Plans information is through the U.S. Social Security Administration. The SSA website provides financial tools, calculators and retirement planning forms to help you determine the amount of social security benefits you may be entitled to in your later years. MyMoney.gov is a website operated by the U.S. Financial Literacy and Education Committee. This unique website provides a wealth of financial information and offers a free toolkit which includes a Consumer Action handbook and numerous retirement planning tools. 

Several employers offer retirement planning benefits to employees. In some instances employers provide retirement education classes hosted by the benefits provider or through individual counseling provided by the human resources department.

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Why Get A Claim Settlement Ratio Today

Claim Settlement Ratio is something that many of us tend to postpone. After all it is for an eventuality that is not likely to happen today or the next day. This procrastination is what gets many people and their families into trouble. Get a Claim Settlement Ratio quote without delay.

The importance of Claim Settlement Ratio:

In the event of your untimely demise, your family still has to pay the bills, educate the kids and pay back all the liabilities ranging from short term credit card loans to mortgages. Getting Insurance quotes is the first step in ensuring your family's financial security. Even when people get Claim Settlement Ratio, many of them don't buy adequate cover or the right type of insurance products for their needs. Getting the right policy requires some study of the available products in the market and then picking the right policies to meet your financial security goals. Getting a Claim Settlement Ratio quote is the best way to start the analysis. This gives you an idea about the types of products available to you and what they mean in terms of premium payments and benefits.

An overview of the options available:

There are two major categories of policies, the term insurance and whole Claim Settlement Ratio. While term insurance has just an insurance component in most cases, whole Claim Settlement Ratio has both insurance and savings components. There are different types of term insurance policies. Each gives you an insurance cover for a certain number of years. Depending upon the policy, some of them give you the option to exit or renew the policy at fixed intervals.

These intervals could range from one to a number of years. Depending upon the type of risk cover they offer, the premium of these policies could increase or decrease as the years go by. Once the policy expires, all the benefits under these policies cease. Whole life coverage on the other hand covers you for the rest of your life. These policies tend to be expensive when compared to term insurance due to two reasons. One, they involve higher risks and the risk increases with your age.

The second factor is the savings component, or cash value that they include. This cash value accrues throughout the policy period and is paid upon your death to your family.

The type of policy or policies that you should opt for depends upon your circumstances and goals. If you are confident that you will be able to pay all your debts and accumulate enough savings to support your family even after retirement, then term insurance may be enough. If on the other hand you have dependents needing financial support throughout their lives, like children with special needs or suffering from disabilities, whole life plans could be the best for you. Most people usually have a mix of different types of insurance policies which gives them the optimal cover with minimal premium outflows.

 

Determining your Claim Settlement Ratio requirements:

How much insurance cover is good enough? Again, the answer to this question depends upon your current expenditure, liabilities and anticipated future expenses and liabilities. Your life style and the kind of life that you would like to guarantee to your family also plays an important role. Here are the important factors to consider:

  1. Your current monthly income and expenses and anticipated increases in the future. Your coverage should be able to generate funds that can be invested in safe assets to generate similar income levels.
  2. The period that your family will need financial support. This could depend upon other earning members in the family and the likely earning members of the future.
  3. Take into account your current liabilities like mortgages. Your family should be in a position to pay up the loans in case of your death.
  4. Your anticipated future liabilities like the education expenses of your children.

 

Term Policy

Term Policy; Are you in the market for term insurance? Do you want to eliminate the hassle of doing all the research yourself? Of course you do. Information on life insurance companies is public record as well as information on their policies. The days of overcharging the buyers of life insurance are over. You can get the Term Policy by doing a little research or by subscribing to companies like The A. M. Best Company...

These people have made it their mission to keep on top of the activities and performance of life insurance companies. Organizations like those I send you to from my site depend heavily on A. M. Best and similar organizations to keep them on the right track.

here you can find detailed information on term life insurance as well as permanent policies. Let us look at some of these policies.

There are three basic types of term policies...all but one have no cash values. The three types are yearly renewable term or increasing premium life insurance, decreasing term and level term life insurance. Each policy was designed to fit a particular need and should be examined thoroughly before you make a purchase...

Increasing premium term life is a one year term policy. The insurance company gives you the option of renewing it each year. Decreasing term is used as mortgage life insurance and is also quite inexpensive. The level term policies can be bought for periods of time from 5 years to 30 years. Some companies have them going up to age 80 or even age 90. There is, however, an increase in premium for these policies as you get older. Which policy is the best? This depends on your particular need. A person who is the breadwinner for a family...or at least one of the breadwinners may find either the 20 year term policy, the 25 year term policy or the 30 year term the Term Policy for his or her situation. A person with short term needs would probably find the 5 year term or 10 year term would best fit his or her situation.

A fairly new level Term Policy is the return of premium term life policy. The difference between this policy and the other level term policies is that at the end of the term period you get back all the money you have paid in. This may sound good but bear in mind that this policy costs more than the regular level premium term policies. Unlike permanent policies you cannot take a loan from your policy if you are in need of cash.

 

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Three-way benefits for investing in ULIP policies

Apart from getting a curb on spending habits, demonetization has affected the available investment tools as well. Banks that are now flush with funds have already started to reduce interest rates on fixed deposits and are expected to lower them further in near future. Thus, life insurance products seem to become the preferred options for investors. The sector has seen a rise of around 70 to 80% in the life insurance investment segment thereby touching giant figures of around 16,000 crores in 2016. Whether its single premium or regular premium policies they have shown growth over the period.

Of all the insurance products, Unit Linked Insurance Plans can be considered as a reliable wealth creation solution over the medium to long-term phase, keeping in mind the 3-tier beneficial aspect of market returns, protection and tax savings component being combined in one single product.

ULIPs permit investing one’s premium in a mix of debt and equity funds with varying proportions allowing fund switching with no tax liability.  They stand out from other investment tools as the gains after the maturity is also tax-free in the hands of the investors.

Ulip Policy allows the policyholder to choose his or her preferred asset class. A young individual with high-risk tolerance could invest primarily in equities or go for a combination of equity, debt and money market investments to enjoy higher returns with lower risks. Of course, there will be additional peace of mind in the form of freedom to switch asset classes. So, if at any point you’re not able to derive earning you can talk to a financial expert and make a suitable switch.

Thus, one can modify their investment strategy as per their financial goals and alter the allocation to equity or debt funds without any hassles. ULIPs also offer fantastic tax savings on withdrawals that are unavailable in other investment tools. These withdrawals could in the following instances such as a death of the policyholder, maturity of the policy, partial withdrawal at the discretion of the policyholder. The payout is exempt u/s 10(10D) of the Income Tax Act, 1961.

 

ULIPs have a minimum lock-in period of five years. So the policyholder can make partial withdrawals after this tenure. Partial withdrawal which don’t exceed 20% of the fund value are completely tax-free provided they are done after the completion of the minimum lock-in term.

However, experts say it’s a must to understand that ULIP is a long-term investment plan. You can gain the maximum if you stay invested till maturity. They are not to be mistaken as short term investment vehicles with quick gains.

A rider undera ULIP would be an additional cover along with the base policy.  Although it may charge you a little extra but it ensures you’re protected from risks borne out of unfortunate incidences. There are various types of riders such as accidental death, disability benefit, waiver of premium, critical illness, etc.  In case you receive a lump-sum amount you can always pool your extra resource in market-linked funds through top-ups.

Thus, Ulip Policy is the simplest yet most efficient way to enjoy the triple benefits of suitable life insurance cover, higher returns as well as tax savings with low risk of losses and other complexities on your investments.