We have always known growing up that investing in a life insurance policy is one of the better ways to secure yourself and your loved ones. We buy life insurance policies to secure ourselves and our family in the event of any unexpected mishap.
The fact that Covid has affected majority of the people across the world further establishes the importance of the same.
So, with 2021 almost half the way, for the rest of the year, you can still work out a plan that will essentially make sure that you are able to plan your finances better and head towards financial sanity. Let us see how.
Just as people with Covid symptoms have to get themselves screened to decide upon the next course of action, you can do the same with your personal finances. Sit down and carry out a through screening of your income, expenses, investments, savings, debts, financial commitments, status of loans, if any, and of course your life insurance portfolio.
We are used to hearing the age-old phrase, “Prevention is better than cure”. Just like sanitizers, these life insurance policies will cover your family from financial risks. In the event, you find that the current policy is not adequate, you can get a rider or add-on coverage.
In order to find out how much coverage is adequate for your household, you can compare plans, policies, and compensation amount that is being offered buy different carriers.
By doing so, you know you can curtail your expenses and pay off your credit card debt sooner.
If you have never followed a budget all your life, this is essentially the time when you must do so. When you write down your income and expenses as mentioned in point number 1, work out a budget too.
Curtail the unnecessary expenses. Since Covid has snatched jobs and forced many households to turn to passive income avenues, if you are lucky enough to still hold on to your job, appreciate the fact that you have been bestowed upon with another chance.
Spend only what is necessary for. Defer parties, huge social gatherings, eating out, and shopping sprees. Remember, there are many people that are not being able to pay for their medical expenses and ventilator life support systems at hospitals. So, save for the rainy day.
Aside from the credit card balance transfer mentioned above, if you have more than one debt account, talk to your creditors. Ask for debt consolidation and if you could be allowed to pay a lump sum every month and pay off your debt on better terms. In this respect, you must have a good credit score too.
So, always strive hard to maintain a good credit score, remember, it helps you on several instances to enjoy better terms and conditions for loans, of any types and of course life insurance policies where you can enjoy lower premiums.
Thanks for the informative article! waiting for your next post ADDX
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