Sign-Up Bonus: Earn 80,000 bonus points after you spend $2,000 on purchases in the first three months from account opening. That’s worth up to two free nights at 5,000+ IHG properties worldwide.
Rewards on IHG Purchases: Up to 17x points
Bonus Non-IHG Rewards: 3x points on dining, utilities, select streaming services, and gas stations
Base Rewards: 2x points
Elite Status: Automatic Silver Elite status with membership — upgrade to Gold Elite status with $20,000 annual spending
If you only stay in hotels a handful of times each year, it’s fair to wonder whether you should bother with a branded hotel credit card. Though these cards tend to have generous benefits for frequent guests, most charge annual fees that are difficult for occasional guests and light spenders to offset. Most, but not all.
One exception is the Chase IHG® Rewards Traveler Credit Card, which favors spending at nearly 6,000 IHG hotel and resort properties worldwide. As a cardholder, you earn bonus points on these purchases (and some non-hotel purchases too) while enjoying complimentary Silver Elite status in the IHG One loyalty program.
The IHG Rewards Traveler card is ideal if you can easily stay at widely available IHG properties like Holiday Inn Express, Candlewood Suites, and InterContinental Hotels when you travel, regardless of how frequently that happens. But it’s not the best choice if you’re on the road every month. So before you apply, carefully consider the pros and cons.
What Is the IHG Rewards Traveler Credit Card?
The IHG Rewards Traveler Credit Card is a hotel credit card with no annual fee. Designed for people who regularly stay at IHG hotel and resort properties, it rewards IHG purchases to the tune of up to 17 points per $1 spent.
The IHG Rewards Traveler card earns rewards on non-hotel spending as well. Restaurant, gas station, utilities, and streaming purchases all earn 3 points per $1 spent, inching ahead of the 2x base rate on general spending.
The IHG Rewards Traveler card has some other notable benefits, including automatic Silver Elite status in the IHG loyalty program and spending-based opportunities to earn extra bonus points and higher loyalty status. But it’s less generous than most hotel credit cards and — at least for frequent IHG guests — overshadowed by the perks-laden IHG Rewards Premier Credit Card.
What Sets the IHG Rewards Traveler Credit Card Apart?
The IHG Rewards Traveler card stands out from other hotel credit cards for several reasons:
No annual fee. Most hotel credit cards have annual fees, so fee-free is a notable feature. It increases the card’s appeal for occasional IHG guests.
Above-average sign-up bonus. For a no-annual-fee card, the IHG Rewards Traveler card has an extremely appealing sign-up bonus for new cardholders. While not quite as generous as annual-fee cards like IHG Rewards Premier, it’s reliably worth at least two free nights at more than 5,000 IHG properties worldwide — several hundred dollars in value.
Broad 3x bonus categories on non-hotel spending. This card earns bonus points on purchases in several non-hotel categories: restaurants, gas stations, utilities, and select streaming services. These categories are broadly popular. You likely make at least one monthly purchase in each, and probably much more than that.
Key Features of the IHG Rewards Traveler Credit Card
Like other hotel credit cards, the IHG Rewards Traveler card has a rewards program that uses its hotel partner’s loyalty currency — in this case, IHG points. It has some other notable perks as well, including automatic loyalty status and a spending-based status upgrade opportunity.
Sign-up Bonus
Earn 80,000 bonus points after you spend $2,000 on purchases in the first three months from account opening. That’s worth up to two free nights at 5,000+ IHG properties worldwide.
Earning Rewards
The IHG Rewards Traveler Credit Card reserves its best return for purchases at IHG hotels and resorts, including bookings and purchases made at the properties themselves. These purchases earn up to 17 points per $1 spent, broken down as follows:
10x points just for being an IHG loyalty program member
2x points with Silver Elite status, a complimentary perk of the Traveler card
5x points with the card itself
Purchases in non-hotel categories earn 3x points:
Restaurants
Gas stations
Utilities
Streaming services
All other eligible purchases earn 2x points, with no caps or restrictions on how much you can earn. Points expire after 12 months of inactivity, so be sure to earn points (through spending) or redeem them at least once per year.
Annual Spend Bonus
When you spend $10,000 on your card in a calendar year, you earn 10,000 bonus IHG points. These points work the same as points earned on everyday card spending.
Redeeming Rewards
It’s best to redeem your IHG points for award stays (free nights) at participating IHG hotels and resorts.
Redemptions start at 10,000 points per night for budget-friendly hotels and range up to 70,000 points per night at luxe properties. Actual nightly point requirements vary by location and demand, but you can generally get by with 25,000 points or fewer per night at lower-end brands like Holiday Inn Express and Candlewood Suites. Resorts and more amenity-rich urban properties typically require 30,000 points or more per night.
Fourth Night Free With Qualifying Redemption
When you redeem IHG points for three consecutive award nights at any participating property, you automatically get the fourth night free. Keep it in mind when you book. There’s no reason not to extend your stay if you can.
Automatic Silver Elite Status
The IHG Rewards Traveler card comes with complimentary Silver Elite status in the IHG One loyalty program. Benefits include:
20% bonus points on paid IHG stays — that’s 2 points per $1 spent, which counts toward the total of 17 points per $1 spent on IHG spending with this card
Priority check-in
Late checkout (2 p.m.)
Upgrade to Gold Elite Status With Qualifying Annual Spending
When you spend at least $20,000 on your card in a calendar year, you’re automatically upgraded to Gold Elite status. The benefits significantly improve on Silver Elite’s:
40% bonus points on paid IHG stays — 5 points per $1 spent instead of 2 points per $1 spent, for 20x total points on IHG spending with this card
Ability to roll over points to count toward next year’s status, making it easier to keep Gold Elite status moving forward
Priority check-in and 2 p.m. checkout
Travel & Purchase Benefits
The IHG Rewards Traveler card has four travel and purchase benefits of note:
Baggage delay insurance. This benefit reimburses essential purchases (like toiletries), up to $100 per day for three days when your bag is delayed more than six hours in transit.
Lost luggage insurance. If any of your luggage or an immediate family member’s is lost or damaged in transit, you can claim up to $3,000 in reimbursement for the bag and its contents.
Trip cancellation and interruption coverage. This benefit covers up to $5,000 per person and $10,000 per trip for prepaid, nonrefundable travel expenses (fares, hotels, and tours) forfeited due to illness, severe weather, and certain other covered situations.
Purchase coverage. This benefit covers loss and damage to covered items purchased with the card, up to $500 per item and $50,000 lifetime per account for 120 days from purchase.
Important Fees
This card has no annual fee or foreign transaction fees. Other fees may apply — see pricing information.
Credit Required
This card requires good or excellent credit. If your FICO credit score is much below 700, you may have difficulty getting approved.
Advantages
The IHG Rewards Traveler card has a surprisingly generous set of perks for a no-annual-fee travel card.
Up to 17x points on eligible IHG purchases. All told, this card earns up to 17x points on eligible IHG purchases. Only 5x points come from the card itself, with the balance from your automatic Silver Elite status and IHG Rewards program membership. But it’s still a nice bump over what you’d earn without the card.
Above-average sign-up bonus. This card’s sign-up bonus isn’t super-generous as hotel credit cards go, but after accounting for the lack of an annual fee, it’s pretty impressive. Most no-annual-fee travel cards have less generous sign-up bonuses or none at all.
No annual fee. I can’t say it enough: The IHG Rewards Traveler card has no annual fee. That makes it ideal for occasional travelers who can’t justify an annual maintenance charge.
Multiple 3x bonus categories. This is another appeal for occasional travelers who spend most of their money on everyday expenses like fuel, food, and utilities.
Automatic Silver Elite status with card membership. Without this card, IHG Silver Elite status requires at least 10 paid nights at IHG properties in a calendar year. With this card, you get Silver Elite status automatically.
Spending-based points bonus. Spending $10,000 on a single credit card in a calendar year is a heavy lift for some folks, but if you can swing it, you earn an extra 10,000 bonus points. That’s significant progress toward your next IHG award stay.
Fourth night free with qualifying redemption. There’s an incentive to save up enough points to redeem for three consecutive award nights. When you do, you get a fourth award night free — no additional points or dollars needed.
Disadvantages
The IHG Rewards Traveler card is less generous than most hotel credit cards, including the IHG Rewards Premier card. And IHG’s rewards program is also less guest-friendly than Marriott’s or Hyatt’s. IHG has:
No 0% intro APR promotion. The IHG Traveler card has no 0% intro APR promotion. That’s a notable downside if you’re laboring to pay off existing high-interest credit card balances or looking to finance your next vacation on the cheap.
Gold Elite status upgrade requires heavy annual spending. If you want Gold Elite status without racking up 20 paid stays or earning 40,000 base points in a calendar year, you must spend $20,000 on this card during the same period. That’s a lot to ask many people. If it’s not a heavy lift for you, you can probably afford the annual fee on a more generous travel card.
Relatively few value-added perks. Other than automatic Silver Elite status, the IHG Rewards Traveler card has limited value beyond its rewards program. By contrast, the IHG Rewards Premier card comes with complimentary Platinum Elite status, a free award night each year after your account anniversary, credits against eligible expedited entry programs (like TSA PreCheck), and complimentary DoorDash DashPass membership (good for free delivery on eligible orders).
IHG points aren’t worth much. Valuing hotel loyalty currency is always tricky, but it’s not up for debate that IHG points are worth less than some competing hotel loyalty programs’ currency. Marriott Bonvoy points and World of Hyatt points are both worth more when redeemed for award stays. You might need just 20,000 Bonvoy points and 15,000 Hyatt points to get a free night at a full-service downtown hotel, versus 35,000 or 40,000 IHG points.
How the IHG Rewards Traveler Credit Card Stacks Up
The IHG Rewards Traveler Credit Card is a fine choice for occasional travelers who tend to stay at IHG properties when they venture away from home. However, if you hit the road more often, the IHG Rewards Premier Credit Card might be a better fit. Compare them head-to-head before you apply.
IHG Rewards Traveler
IHG Rewards Premier
Sign-Up Bonus
Yes, worth 80,000 points
Yes, worth 140,000 points
IHG Rewards
17x points
26x points
Bonus Rewards
3x points on select categories
5x points on select categories
Base Rewards
2x points on all other purchases
3x points on all other purchases
Elite Status
Silver (potentially Gold)
Platinum
Annual Points Bonus
10,000 bonus points with $10,000 spent
None
Annual Free Night
No
Yes
Annual Fee
$0
$99
Final Word
You don’t have to stay at an IHG property every month — or every quarter — for the IHG Rewards Traveler Credit Card to make sense. You don’t pay anything to keep it in your wallet. Yet it still boasts a generous rewards program and complimentary Silver Elite status.
It’s truly a hotel credit card for people who don’t consider themselves seasoned travelers. But by the same token, it’s not the best choice for people who spend a significant amount of time on the road.
If you’re not sure which is right for you, start with the IHG Rewards Traveler Credit Card. If you find yourself yearning for more and better benefits and traveling often enough to justify a $99 annual fee, you can upgrade to the IHG Rewards Premier Credit Card.
The Verdict
Our rating
IHG® Rewards Traveler Credit Card
Sign-Up Bonus: Earn 80,000 bonus points after you spend $2,000 on purchases in the first three months from account opening. That’s worth up to two free nights at 5,000+ IHG properties worldwide.
Rewards on IHG Purchases: Up to 17x points
Bonus Non-IHG Rewards: 3x points on dining, utilities, select streaming services, and gas stations
Base Rewards: 2x points
Elite Status: Automatic Silver Elite status with membership — upgrade to Gold Elite status with $20,000 annual spending
Annual Fee: $0
Credit Needed: Good – Excellent
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Whether you’re planning to visit your bank for a routine transaction, open a new bank account, or consult a financial advisor, it’s essential to know when banks are open or closed.
This article provides an overview of bank hours, bank holidays, and what services are available during federal holidays. We’ll also discuss online and mobile banking alternatives that can save you time and offer added convenience.
Factors Affecting Bank Hours
Bank Type: Local, Regional, or National
The operating hours of a bank can vary depending on its size and reach. Generally, local and regional banks have more restricted hours, while national banks may offer extended hours at select branches or have more locations open on weekends.
Geographic Location
Bank hours can vary based on the branch’s location. For instance, banks in urban areas may have longer hours compared to those in rural communities. Furthermore, specific financial institutions may adjust their hours in different regions or cities to better serve their customers.
Online vs. Brick-and-Mortar Branches
While traditional brick-and-mortar bank branches have set operating hours, online banks are accessible 24/7. If you have a bank account with an online bank, you can access your account and perform transactions without worrying about bank hours.
Regulatory Guidelines and Public Holidays
The Federal Reserve System regulates banks in the United States, and its guidelines influence bank hours. Banks usually close on federal holidays to comply with these regulations.
Typical Bank Hours
General Operating Hours for Most Banks
Banks typically open around 9 a.m. and close between 4 p.m. and 6 p.m. from Monday to Friday. Some banks may have extended hours on specific weekdays, opening earlier or closing later to accommodate customers’ needs.
Variation in Hours Among Banks
Different banks may have slightly different operating hours. It’s essential to check your bank’s specific hours, as there may be variations based on the factors mentioned above.
Weekend Hours
Many banks have limited hours on Saturdays, often closing around noon or 1 p.m. However, some banks do not operate on Saturdays at all. Sunday hours are even rarer, with only a few banks open on Sundays, typically in high-traffic areas like shopping centers.
Extended Hours for Select Branches and Services
Some bank branches may offer extended hours for specific services, such as drive-thru teller windows or customer service hotlines.
Federal and State Bank Holidays
Federal Bank Holidays
Banks close on federal holidays, as mandated by the Federal Reserve System. Here’s a list of federal holidays when banks typically close:
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day
If a federal holiday falls on a weekend, banks may close on the preceding Friday or following Monday. For example, if Independence Day falls on a Saturday, banks may close on the preceding Friday.
State-Specific Bank Holidays
In addition to federal holidays, banks may also close on state-specific holidays. It’s essential to check your state’s official holidays to determine if banks close on those days.
How Holidays Affect Bank Hours and Services
Banks may adjust their operating hours around holidays, such as closing early on the day before a holiday or staying closed the day after a holiday. Bank services, such as wire transfers and check clearing, may also be affected by bank holidays.
Online and Mobile Banking Availability
24/7 Access
Online and mobile banking platforms offer 24/7 access to your bank account, allowing you to perform transactions and access essential services even when banks are closed. This convenience means you don’t have to wait for banks to open to manage your finances.
Available Services
With online and mobile banking, you can:
Check account balances
Transfer funds between accounts
Pay bills
Deposit checks via mobile check deposit
Set up account alerts
Apply for loans or open new accounts
Monitor credit scores and reports
Limitations of Digital Banking Services During Bank Holidays
While digital banking platforms are accessible 24/7, some transactions may be delayed due to bank holidays. For example, wire transfers or check-clearing may take longer to process if initiated on a federal holiday or weekend.
Finding Your Bank’s Operating Hours
Bank Websites and Mobile Apps
Bank websites and mobile apps typically display their operating hours and holiday schedules. You can check these resources for accurate information about your bank’s hours.
Google Maps and Search Engine Queries
You can also find bank hours using Google Maps or by searching for your bank’s name along with the specific branch location. Search results often display the bank’s hours and contact information.
Calling the Bank’s Customer Service Line
If you cannot find the information online, you can call your bank’s customer service hotline to inquire about their operating hours and holiday schedule.
Alternatives to Bank Visits
ATMs and Their Services
ATMs are an excellent alternative to visiting a bank branch, as they’re accessible 24/7 and can perform essential services. These machines are typically located near bank branches, inside shopping centers, and at various other convenient locations. Some key services offered by ATMs include:
Cash withdrawals: ATMs allow you to withdraw cash from your bank account, providing quick access to funds when needed.
Deposits: Many ATMs accept cash and check deposits, making it easy to deposit money without having to visit a bank branch.
Balance inquiries: You can check your account balance and recent transactions at an ATM, helping you stay informed about your financial status.
Transfer funds: Some ATMs enable you to transfer funds between your accounts or even to other bank accounts.
Bill payments: Certain ATMs allow you to pay bills directly, such as credit card payments, utility bills, or loan installments.
Peer-to-Peer Payment Apps
Peer-to-peer (P2P) payment apps, such as Venmo, PayPal, and Zelle, allow you to send and receive money quickly without visiting a bank. These apps are especially useful during bank holidays when banks are closed. P2P apps offer several benefits, including:
Instant transfers: P2P apps enable instant money transfers between users, making it easy to send or receive money in real-time.
Mobile convenience: You can use P2P apps on your smartphone or tablet, allowing you to transfer money from anywhere with an internet connection.
Splitting bills: P2P apps make it simple to split expenses with friends, family, or roommates, eliminating the need to deal with cash or checks.
Direct Deposit and Automatic Bill Pay
Setting up direct deposit for your paycheck and automatic bill payments can help you avoid the need to visit a bank, ensuring your transactions are processed on time, even during bank holidays. These services offer several advantages:
Timely transactions: Direct deposit ensures your paycheck is deposited into your bank account on time, while automatic bill payments ensure your bills are paid before their due dates.
Convenience: Once you set up direct deposit and automatic bill pay, you don’t have to worry about visiting a bank branch or mailing checks, saving you time and effort.
Reduced fees: By paying bills on time through automatic bill pay, you can avoid late fees and penalties, potentially saving you money in the long run.
Better budgeting: With regular deposits and bill payments, you can better track your income and expenses, making it easier to manage your finances and budget accordingly.
What to Do if Your Bank Isn’t Open Today
If your bank isn’t open today due to a holiday or other closure, there are still several options available to manage your finances effectively. Here’s what you can do:
Use Online Banking Platforms
Most banks offer online and mobile banking services, allowing you to access your accounts, transfer funds, pay bills, and more, even when the bank is closed.
Visit an ATM for Essential Transactions
ATMs remain accessible 24/7 and provide essential services, such as cash withdrawals, deposits, balance inquiries, and in some cases, bill payments and fund transfers.
Utilize Peer-to-Peer Payment Apps
As mentioned, peer-to-peer payment apps, like Venmo, PayPal, and Zelle, enable quick and easy money transfers between individuals without the need to visit a bank.
Plan Ahead for Time-Sensitive Transactions
If you have a time-sensitive transaction, such as a wire transfer or a loan application, plan ahead and complete the transaction during bank hours or well before the bank closure.
Contact Your Bank’s Customer Service Hotline
If you require assistance and the bank isn’t open, try reaching out to your bank’s customer service hotline. Some banks provide support over the phone or through online chat services even during holidays.
Conclusion
Understanding bank hours, federal holidays, and how they affect banking services can help you plan your financial activities better. While brick-and-mortar banks have set operating hours, online banks offer 24/7 access to your accounts and essential services. By utilizing these resources and alternatives, you can efficiently manage your finances without being restricted by bank hours or holidays.
Frequently Asked Questions (FAQs)
Are banks open on Christmas Eve?
Banks typically operate on Christmas Eve, but their hours may be shortened. It’s a good idea to check with your local branch for their specific hours on Christmas Eve, as they can vary depending on the bank and location.
Are banks open on New Year’s Eve?
Similar to Christmas Eve, banks are usually open on New Year’s Eve but may have shortened hours. It’s best to verify the operating hours of your local branch for New Year’s Eve to avoid any inconvenience.
Are banks open on Easter?
Easter is not a federal holiday in the United States, and most banks typically follow the federal holiday schedule. However, since Easter always falls on a Sunday, banks are generally closed, as most bank branches do not operate on Sundays.
Can I still use ATMs during bank holidays?
Yes, ATMs are available 24/7, even on bank holidays. You can use them for cash withdrawals, deposits, balance inquiries, and other essential services. However, keep in mind that some transactions, such as check deposits, may take longer to process due to the holiday.
Do bank holidays affect direct deposit?
Bank holidays can impact the processing of direct deposit transactions. If your payday falls on a bank holiday, it’s possible that your funds will be deposited on the preceding business day or the following business day. Check with your employer and bank to understand their policies regarding direct deposit and bank holidays.
What happens if a bank holiday falls on a weekend?
When a federal bank holiday falls on a weekend, banks usually observe the holiday on the preceding Friday (if the holiday falls on a Saturday) or the following Monday (if the holiday falls on a Sunday). Check your bank’s holiday schedule to confirm their specific observance dates.
I had recently returned from Iraq and my wife and I were hunting for a couch for our new home.
We found one that was on sale we both thought it was perfect. .medrectangle-4-multi-638border:none !important;display:block !important;float:none !important;line-height:0px;margin-bottom:15px !important;margin-left:auto !important;margin-right:auto !important;margin-top:15px !important;max-width:100% !important;min-height:250px;min-width:250px;padding:0;text-align:center !important;
Okay, it was a red couch and she thought it was perfect. I, personally, didn’t understand why anyone would buy a red couch but apparently I didn’t understand home decor. Nonetheless, the wife’s vote trumped mine.
When the sales clerk asked how we wanted to pay suggesting we take advantage of their great in-store financing, an exciting thought ran through me – “we can pay cash”.
A year prior, that wouldn’t have been an option. Not even close!
But now we found ourselves in a very exciting position; we were financially stable.
I can’t say that I 100% believed we were financially stable at that point in our lives, but it definitely was a turning point for us. Not only could we pay cash, but we also had money left over.
People often spend most of their lives chasing financial stability. But is it possible that you may already be financially stable?
Here are 27 signs that you’re financially stable – already! And if you’re not, you can start working to make a lot of these a reality in your life.
1. You Never Overdraw Your Checking Account
Even if you have overdraft protection with your checking account, you still prefer to keep a cushion in your account, rather than relying on the protection. And you absolutely, positively, never bounce a check!
Part of it has to do with your aversion to paying overdraft fees. But mostly, it’s because you have a sufficient amount of money that you can keep more in your checking account then you need in a typical month.
2. You Don’t Lose Sleep Over Finances
When you go to sleep at night, you tend to sleep deeply and peacefully. And if anything does keep you awake, it’s usually not related to financial matters.
This is a non-financial benefit that people who are financially stable have as a result of their strong financial position. This isn’t to say that you don’t have any money worries at all, but rather that they are not significant, and never without some sort of reasonable solution.
3. You Use Credit Cards for Convenience and Rewards – But Never Out of Necessity
I currently have 4 credit cards in my wallet and use them almost every day. <gasp!>
How could you, Jeff? You’re a Certified Financial Planner!
Yes, I am, but here’s the catch: I pay them off every month. As a bonus, we have carefully selected credit cards that collect reward points which we use for airlines miles. Boo-yah!
Many people who are not financially stable have a bad habit of using credit cards as a way to extend their paychecks – to buy the things that they really can’t afford.
That’s not an issue in your life!
If you do use a credit card, it will strictly be for convenience, such as being able to make a fast payment online. Or you will do it because your credit card company provides you with rewards for making purchases.
4. You Don’t Worry About Losing Your Job
This is one of the very best indicators that you are financially stable. It’s a sad state of affairs that the vast majority of people in the US live from paycheck to paycheck. The thought of losing their job, even for a month or two, would be a financial disaster.
Since your finances are in balance, losing your job isn’t something that you worry about, at least not the potential for ruining your finances.
5. You’re Never Late With Payments
This is partly because you always have plenty of money to pay your bills, but also because of your preference for being ahead of your finances, rather than behind. This is also a big reason why you don’t lose sleep over your finances. When you go to bed at night, you know that your bills are paid, and all is right in the world.
6. You Pay Your Bills Ahead of Time
Part of the reason why you’re never late with payments is that you pay your bills ahead of time. In fact, you probably pay them as soon as they come in. You do this because you don’t like bills to linger – and simply don’t like owing anybody anything.
7. People Ask Your Opinion About Financial Matters
One of the biggest outward signs that you are financially stable is when people ask your opinion about financial matters. They’ll do this because they see you as being someone who has “figured it out”, at least when it comes to money.
When this happens, take it as a supreme compliment. It means that your financial stability is so obvious that others can see it, and will ask your opinion as to how to achieve it.
8. You’re Generally Happy With Your Financial Situation
This doesn’t mean that your financial situation is completely perfect, but rather that your finances are in balance, and you are satisfied with the direction that things are heading. Even if you have financial challenges over the horizon, you have some sort of plan set up to deal with it before it comes. That’s all anyone can do – and you’ve already got it covered.
9. You Have No Ugly Credit Card Balances
It’s not at all unusual for people who have high incomes and a large number of financial assets to also carry great big, ugly credit card balances. That’s not a game that you play. You absolutely refuse to carry credit card balances that can’t be paid off relatively quickly. And that keeps you from paying high-interest rates, and from losing sleep at night.
10. You Finance Your Cars Over Five Years or Less – If You Take Loans at All
Even though there are car loans available as far out as seven years, you keep your car loans to five years or less. Or you pay cash for your cars, or you pay them off ahead of schedule.
That means that you won’t live your life carrying a perpetual car loan payment. That also means that when you buy a new car, it’s very likely that you’ll be making a larger than average down payment on it – which is why you take shorter loans in the first place.
11. You Contribute a Double-Digit Percentage of Your Pay To Retirement
Many, many people contribute nothing more than the minimum percentage that they need in order to get the maximum employer match on their retirement contributions.
But that’s not a game that you play.
You recognize the importance of aggressive retirement investing as a critical part of becoming financially stable. You either make the maximum retirement contribution that you’re allowed, or your contribution is well into double digits percentages.
And because you do, early retirement is actually a legitimate consideration in your life.
Investing and feeling good about it has never been easier with great online brokerage tools such as Betterment. Learn more about how to use Betterment on our review page.
12. You Don’t Feel Guilty When You’re Out For Special Occasions
Everybody has episodes where they spend a little bit too much money. This can happen on special occasions, such as birthdays, holidays, vacations, and other celebrations. But for you, these events are not budget busters. You have enough flexibility built into your budget that you can accommodate the occasional spending spree without having too much month at the end of your paycheck.
13. You Can Afford to Buy the Things You Really Want
If you really want something, you go out and buy it. Your finances are strong enough to enable you to get those things that you really want.
This isn’t at all about impulse spending on an ongoing basis, but rather about having enough room in your budget to get the things that you really want. In that way, money doesn’t rule you.
14. Recreational Spending Doesn’t Appeal to You
There are all kinds of coping devices in life, bad habits like hard drinking, drug use, and overeating. For some people, the vice is recreational shopping. Spending money enables them to lose themselves – and their troubles – at least for a time. And often, recreational spending is a way of rebelling against their impaired financial situation.
That’s not something that you engage in, nor do you ever feel the need to do so. You’re happy with your finances in general, and you don’t need to spend money to feel good about yourself.
15. You’re a Natural Saver
This is one of the key habits in becoming financially stable – and it’s one that you mastered a long time ago. You’ve been doing it so long and so well, that you are virtually a natural saver. You can do it with a sense of purpose, and without ever feeling any pangs of self-denial.
16. You’re Generous With Money When it Comes to Charities or Helping Others
You have certain charities that you support on a regular basis, and you’re generous with the people around you who are in need. You’re able to do this because you never sense that giving money to others in need will in any way negatively impact your financial position. You give with ease, and you feel good about it.
17. You’re Confident About Your Future
This is one of the best indications that you are financially stable. Your finances are sufficiently under control, that you feel confident about your future. This is because you’re easily able to live on what you earn, you have substantial financial assets that you’re adding to on a regular basis, and you carry little, if any, non-housing debt.
The future tends to be kind to people in that situation – and that’s where your confidence comes from.
18. Your Net Worth Grows Significantly From Year to Year
Your net worth tends to grow each year and to do so by fairly large amounts. This isn’t about doubling your money each year, but rather about achieving fairly consistent increases in your net worth. Those increases come from a combination of adding to your investments through regular contributions, and through solid investment returns.
19. You Have Substantial Equity in Your Home
Another of the major markers of being financially stable is that you have a large amount of equity in your home. This is either because you made a large down payment on the home when you bought it, or because you’re paying extra principal on your monthly payment as a way to accelerate the payoff of the mortgage. It may even be a combination of both.
That large equity means that you don’t worry about falling property values, at least not the way people in low- or no-equity situations do.
20. You Consistently Live Beneath Your Means
You consistently live beneath your means because you are well aware of the fact that all the things that make someone financially stable start with having extra room in your budget for savings, investments, or paying off debt.
This isn’t a struggle for you either, but something that makes sense and comes easily to you.
21. A Large Pay Cut Wouldn’t Destroy Your Life
Yet another of the benefits of being able to live beneath your means is that the prospect of taking a large pay cut wouldn’t destroy your life. Because you are already living on less than you earn, taking a pay cut at work, or transferring to a lower paying position, won’t represent a mortal blow to your existence. You’ll find a way to live beneath your means, whatever those means are.
22. The Cost of Sending Your Kids to College Doesn’t Scare You
You’re looking forward to your kids going to college. You’re well aware that the cost is outrageous, but you’re making plans so that you’ll be prepared when the time comes.
This can be a combination of specifically saving money for each child through a college savings plan, streamlining your own finances so that you’ll be able to pay a large chunk out of your income, or working to help your children get scholarships that will contribute toward the cost.
23. You’re Totally Unconcerned With Keeping Up With the Joneses
In your world, being financially stable is its own reward. You have no need to acquire the trappings of the good life that others around you are working so hard to attain.
That keeps you from spending money that you don’t have and going into debt. And that leaves you more money for savings and investments, which increase your financial stability even more. No toys and trophies are needed!
24. You Give 100% on the Job – Financial Concerns Don’t Distract You
Just as you sleep like a baby because you are unconcerned with financial troubles, you’re able to give 100% on your job. You aren’t weighed down by the emotional troubles of having unpaid bills or out-sized debts to pay. And because you can live on less than you make, you don’t waste time feeling sorry for yourself because you’re not making enough money to pay your bills.
That frees you up to do the job that needs to be done, makes it more likely that you will get the bigger raises, and the promotions when they come around.
25. You Pay Your Credit Cards in Full Each Month
Since you don’t use credit cards as an extension of your paycheck, you simply pay the balance in full each month as the bill comes in. There are no lingering debts in your life and none of the worries that are attached to them. Every month, you have a clean slate going into the next month. See #3 again. 🙂
26. You Could Survive For Months Without a Paycheck
You have sufficient liquid savings that you can live for months without a paycheck if you have to. You won’t need to tap long-term savings, like retirement plans either. And bankruptcy won’t be even a remote consideration since you have very little debt.
The fact that you can live without a paycheck for an extended period of time even makes it easier to do your job. You can work without concerning yourself with the threat of layoff, or being fired. And you never feel trapped by your job.
This is one of those circumstances were being financially stable feels so good!
27. You Feel In Control of Your Finances – Never Dominated by Them
Overall, you have a strong sense that you are in control of your finances. This means that when it comes to money, you have choices. And since money creates options in life, you have more than the average person.
This is what being financially stable is all about, and what the ultimate goal of it should be. Being able to do what you want, when you want, and on your own terms.
This is a long list, and if you’re not feeling some of these right now, you can work to get yourself into a position where you will. It’ll take a bit of effort, but that effort will be sooo worth it!
Life insurance is an integral part of most any financial plan. That’s because, without it, the people you love and care about the most could end up facing some significant financial hardships if the unexpected were to occur.
The proceeds of a life insurance policy can be used – income tax-free – by your survivors for most any need. These can include the payoff of debts (such as a mortgage balance), the payment of monthly living expenses, and the payment of funeral and other final expenses. It can also be used for keeping financial promises, such as making sure that a child or a grandchild has money to attend college in the future.
Before you commit to the purchase of a life insurance policy, it is important to make sure that the type and the amount of the coverage are in line with your specific needs. It is also essential to check out the insurance carrier that you’re thinking about buying the policy through so that you know it is secure and stable financially, and that it has a good, positive reputation for paying out its policy holders’ claims. One company that fits these parameters is Pacific Life. .medrectangle-4-multi-638border:none !important;display:block !important;float:none !important;line-height:0px;margin-bottom:15px !important;margin-left:auto !important;margin-right:auto !important;margin-top:15px !important;max-width:100% !important;min-height:250px;min-width:250px;padding:0;text-align:center !important;
The History of Pacific Life Insurance Company
Pacific Life has been in the business of helping its clients to grow and protect their wealth for more than 145 years. The company is part of a mutual holding company structure; therefore, policy and contract owners are members of the enterprise, rather than the company being driven by shareholder needs.
The company offers a variety of products that help its clients to achieve their financial goals and to protect the people and the things that they care about. Pacific Life covers thousands of individuals and businesses. The company remains independent and is focused on long-term strategies and financial strength to benefit its policy holders and clients.
Pacific Life Insurance Review
Pacific Life has a critical expertise in several areas of economic growth and protection, such as:
Income for Life / Retirement Income
Wealth Accumulation
Financial Protection
Wealth Preservation
Throughout the years, Pacific Life has grown to be impressive regarding its financials, as well as its service to the community.
The company has earned numerous awards and accolades, including:
Ranked first in the sale of indexed universal and universal life insurance
Ranked 8th in total life insurance sales
Ranked 13th for variable annuity sales
Ranked 16th for largest fixed annuity sales
Ranked as #302 on the list of Fortune 500 companies
Also, the company has donated to numerous charities and foundations. In 2017, Pacific Life gave $2million to Marine Mammal and Ocean Focused Non-Profits. It also gave $1 million to HomeAid of Orange County. Over the past 32 years, Pacific Life has given nearly $100 million to community non-profits.
It has also invested $4.4 billion in assets related to socially responsible efforts in underserved and low-income communities, as well as in environmentally green efforts. Also, in just a year 2016, the company contributed more than 10,000 employee volunteer hours to nearly 200 different community projects.
As of year-end 2016, Pacific Life held approximately $143 billion in company assets, and it paid out roughly $2.3 billion in insurance and annuity benefits for that year. In 2016, Pacific Life had operating revenues of $9.0 billion, and operating income of $868 million. Pacific Life is headquartered in Aliso Viejo, California.
To compare life insurance premiums from Pacific with several other carriers, Try PolicyGenius>>>
Insurer Ratings and the Better Business Bureau Grade
Due to its strong financial foothold, and its timely payment of policyholder claims, Pacific Life has earned high ratings from the insurer rating agencies. These include an(n):
A+ from A.M. Best Company
A+ from Fitch Ratings
A1 from Moody’s
AA- from Standard and Poor’s
Also, while Pacific Life is not an accredited business through the Better Business Bureau (BBB), the company has been given a grade of A+ by the BBB – based on a grading scale of A+ to F.
Over the past three years, Pacific Life has cleared just four total customer complaints through the Better Business Bureau (and only one complaint over the last 12 months). Of the four total charges, three had to do with problems with the company’s products and services, and the other one dealt with advertising/sales issues.
Life Insurance Coverage Offered Through Pacific Life
When it comes to life insurance coverage, Pacific Life has made a substantial commitment to the future of its clients and their financial well-being.
The company has a long history of passing on policy improvements to its existing policyholders – so the company doesn’t disappear once the initial sale has been made.
Just some of the improvements that the company has passed on to it current customers include the following:
123 in-force life insurance policy owner gains since 1985
27 life insurance providers with the cost of insurance (COI) improvements
19 life insurance products with the premium load reduced twice
Ten life insurance products added competitive loan provisions – actually reducing the current costs to access the policy’s cash value loans
Seven life insurance products benefitting from a reduction in deferred acquisition cost adjustment
Six products received an increase in the persistence credit
One life insurance product received a reduced surrender charge
One life insurance product reduced the mortality and expense charge
Several different life insurance options are offered through Pacific Life. These include both term and permanent life insurance policy choices. Term life insurance provides death benefit coverage only, with no cash value or savings build up. Because of that, this type of coverage can typically be quite affordable – especially as it relates to a comparable permanent life insurance policy.
The Pacific Prime Term plan is a level term life insurance policy that offers coverage for either ten, fifteen, twenty, or thirty years. During the period that is selected, the life insurance coverage will remain level, and the premium will stay the same. The policyholder is also able to access up to 75% of the policy’s death benefit if he or she is diagnosed with a terminal illness, and the policy may be converted over to a permanent life insurance policy without additional underwriting (in particular circumstances).
To more carefully “customize” the policy to the insured’s needs, there is also an optional waiver of premium rider that may be added. With this benefit, the premium on the policy may be waived (after a waiting period of 180 days) if the insured becomes disabled before age 65.
Pacific Life also offers an extensive list of permanent life insurance options. Here, there are both death benefits and cash value build up, where savings can grow and compound on a tax deferred basis.
The Flex Protector is a whole life insurance policy, where the death benefit is fixed, as is the amount of the premium. The cash value grows, based on a rate that is set by the insurance company, and the cash value may be either borrowed or withdrawn for any reason that the policyholder sees fit.
Pacific Life also offers the Versa Flex universal life insurance product. This, too, has death benefit protection and a cash component. Universal life insurance is considered to be more flexible than whole life, however, in that the policyholder is allowed (within certain guidelines) to alter the timing and the amount of the premium to match their changing needs better.
With this plan, there are different death benefit options, such as:
Necessary face amount
Face amount plus accumulated value,
Face amount plus a sum of premiums, less any withdrawals
In certain cases, an insured may be able to convert or increase their coverage without requiring evidence of insurability.
There are additional, optional riders that can also be added to this plan to help with customizing the policy to meet the insured’s needs. These may include the guaranteed insurability rider, the waiver of charges rider, and the overload protection rider.
In keeping up with the demand for indexed products, Pacific Life also offers an indexed universal life insurance policy. Here, there is death benefit protection and monetary value – and the return on the cash value is related to the performance of an underlying market index.
With the Pacific Indexed Accumulator plan, there are several market indexes to choose from, such as the S&P 500, the MSCI Emerging Markets Index, the Hang Seng Index, and the EURO STOXX 50 Index. When the index(es) have a positive return, the monetary value will be credited – up to a certain set cap. If however, the underlying index(es) perform poorly in a given period, then the policy holder’s principal will be protected, and the monetary value will just be credited with a 0% for that period. .leader-1-multi-643border:none !important;display:block !important;float:none !important;line-height:0px;margin-bottom:15px !important;margin-left:auto !important;margin-right:auto !important;margin-top:15px !important;max-width:100% !important;min-height:250px;min-width:250px;padding:0;text-align:center !important;
This plan also has additional features that may be added, such as the ability to increase coverage with the cost-effective Additional Coverage rider, and the Annual Renewable Term Rider, and the Children’s Term Rider Coverage.
Other Products and Services Available Through Pacific Life Insurance Company
In addition to life insurance coverage, Pacific Life also offers other products and services that can be helpful to its customers for the growth and the protection of their wealth.
These include the following:
Mutual Funds – Mutual funds are defined as being professionally managed investments that offer both liquidity and diversification. Numerous mutual funds are available in the market place – and depending on your goals, you can find mutual funds that focus on growth, growth and income, income, safety, and aggressive growth opportunities. Mutual funds may also consist of U.S. and international companies. Pacific Life has its own family of funds – the Pacific Funds – which is designed for growth, income generation, and diversification.
Retirement Annuities – Today, as people are living much longer life spans, one of the key worries on the minds of retirees and pre-retirees is that of outliving their money. But, an annuity can ensure that you have income that lasts for the rest of your life – regardless of how long that may be. Pacific Life offers some annuity option that can work as a tax deferred savings vehicle and an income stream in retirement. These annuities can also keep money safe in any market or economic environment.
Investment Products and Services for Businesses
Key Man Term Life Insurance – An employer may take out a key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company.
How to Get the Best Premium Rates on Life Insurance with Pacific Life Insurance Company
If you are seeking the best premium rates on life insurance coverage through Pacific Life – or through any life insurer – it is typically recommended that you work with an independent life insurance agent who can provide you with information about multiple policies, companies, and premium rates. That way, you can pick and choose the one that suits you and your budget the best.
When you are ready to see what type and amount of life insurance coverage you may qualify for, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurers in the industry today. To begin the process, all you have to do is just simply fill out our quote form.
We know that finding just the right life insurance policy and the best life insurance company can seem a bit confusing. But when you work in conjunction with an expert on your side, it can be made so much easier. So, contact us today – we’re here to help.
Kate Wood, home expert at NerdWallet, noted that it’s not a tremendous surprise. “Mortgage interest rates rose in March, so it makes sense that fewer buyers signed contracts,” she said. “Affordability is already a major challenge due to higher home prices, and every time interest rates increase, the situation gets harder for buyers.” The trade … [Read more…]
Homeowners racked up some serious wealth over the past decade.
Middle-class homeowners who bought real estate during the depths of the Great Recession built over $122,000 in wealth thanks to home price appreciation, according to a recent report from the National Association of Realtors®. The values of their homes have soared 68% since 2012.
As prices skyrocketed over the past decade, lower-income and wealthier homeowners also benefited from the hot housing market. Low-income homeowners saw about $99,000 in home appreciation over the same period. Wealthier homeowners saw nearly $151,000 in gains.
“Everybody can build wealth through homeownership. There are significant long-term and financial benefits,” says Nadia Evangelou, a senior economist at NAR. “A mortgage payment is also often considered a forced savings account. [And] the value of a home increases over time, so homeowners can build wealth from the price appreciation.”
Homeowners typically have net worths that are 40 times that of renters, and homebuyers often have higher incomes and credit scores than many tenants.
Those living in the most expensive metros experienced the largest run-ups in appreciation. In San Jose, CA, the heart of Silicon Valley, middle-class homeowners built roughly $643,000 in wealth over the past decade.
That boost in net worth helped homeowners across the country weather costly emergencies, fund big-ticket items like college educations, pay down debt, and buy new trade-up or secondary homes.
“Homeownership helps create long-term wealth and financial stability for your family and future generations,” NAR President Kenny Parcell said in a statement.
Black homeowners saw the lowest appreciation
However, home appreciation for Black homeowners was the lowest among any racial group. Their properties went up about $115,000 in value since 2012—compared with $239,000 for Asian homeowners, $162,000 for Hispanic homeowners, and $138,000 for white homeowners.
Black Americans also had the lowest homeownership rates in the nation, at just 44.9% at the end of 2022, compared with 74.9% for white Americans. Much of this discrepancy is due to discriminatory housing policies such as redlining, which prohibited people of color from buying homes in predominantly white communities. The federal government and lenders also made it more difficult—if not impossible—for them to receive the low-cost mortgages that were offered to white Americans.
“It’s more challenging for Black Americans to purchase a home because fewer of them can afford to [do so],” says Evangelou.
Homes owned by Black Americans have a median value of $240,000, according to the NAR analysis. The median value is about $308,000 for Hispanic-owned homes and $310,000 for white-owned homes. Homes owned by Asians have the highest median value, at about $575,000.
“Even though Black homeowners didn’t gain as much equity as other racial and ethnic groups, the amount they gained was still significant,” says Evangelou.
A company may be run by a large group of people with the responsibilities spread out evenly between different departments.
Other companies rely heavily on one or two people.
If one of these highly important people were to pass away, these companies would have difficulties keeping the company in business.
Otherwise stated: They would be screwed!
You would think that most businesses are prepared if something happened to one of its key personnel.
A survey by AMA (America Management Association) says otherwise finding the following:
Only 14% of those surveyed said that their companies were well-prepared for the loss of a key person.
It’s these type of businesses that would benefit from key man life insurance.
What Is Key Man Life Insurance?
The concept of losing a close friend and colleague can be very difficult for business partners to imagine, but they must do so if their plan is to continue operating the business after the death of an important partner.
The key man insurance policy is a life insurance policy that business partners can purchase against the possibility of losing a key partner. If these particular people mean life or death for the company, they are exactly the people who need key man insurance.
Owners of small businesses may have life insurance policies that name their spouses or other family members as beneficiaries. These policies take care of the business partners’ personal expenses, such as the mortgage on the house and other debts.
Business partners often purchase disability insurance and make this available to their employees as well.
The disability insurance pays the expenses in the event that people experience an injury or are diagnosed with an illness that makes it impossible for them to work and earn their salaries.
However, key man insurance covers a completely different area. With the death of a key person, the key man insurance policy covers the company. If you’re one of those essential people in the company, or you’re the owner of the business, then you know how detrimental the death of a key person can be. You’ve been in hours of hard work and sweat into helping your company succeed.
Key man life insurance will protect that from crumbling down if there were anything tragic to happen.
Key man insurance would not be beneficial to every business, but the owners will want to learn more about this insurance coverage to discern whether or not their companies fall under the category of those that would benefit from purchasing a key man insurance policy.
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Does The Company Have One Or Two People Who Are Highly Important?
The owner of the company would certainly fall under this category. The founders of a business may also qualify as key people. If the loss of some employees would cause the organization to experience difficulties in running the business, this company may want to have key man insurance on these employees.
Every company is different, some companies have a whole team of people that they rely on, and if anything tragic were to happen to them, the business would struggle. Other companies have one key person at the top that is essential to the whole operation.
Because every company is different, there is no one-plan-fits-all policy that you can buy.
You will need to look at your organization and decide which kind of coverage is going to work best for you.
Regardless of the setup of your business, it’s vital that your key people have the insurance coverage in place to protect against anything that would happen if they were to pass away.
How Does Key Man Insurance Work?
Key man insurance is a life insurance policy that works much like regular life insurance.
The business will purchase the policy and will also be named as the beneficiary.
This requires that the partners pay premiums that keep the policy active. If one of the key people in the company passes away while the policy is active, the business receives the pre-determined lump sum of money.
This amount may be $100,000, but it could also be as much as several million. The amount that an organization receives will depend on how much the company can afford to pay in premiums. For example, purchasing a policy for a $5,000,000 payment will require that the partners pay more to keep the policy active than if they chose a $100,000 payment.
The partners will not necessarily benefit from a policy that offers them $500,000. The amount of the death benefits will depend on how much money will be required to replace the key person who has died. If the partners in the company believe that $100,000 would suffice, purchasing a policy for this amount is a legitimate choice to make. The partners can also keep their premiums lower if they purchase a term policy that tends to be less expensive than whole life insurance through one the best life insurance companies we have to work with.
What Can the Company Do with the Death Benefits?
What is done with the money will be up to the remaining business partners, but it will be used for the benefit of the business. For example, the business partners can pay any debts that are remaining, or they may offer an amount to their shareholders. Some business partners keep a portion for the business and offer the other to the deceased partner’s spouse.
Who Actually Owns the Policy?
Most key man life insurance policies will have some sort of cash value build-up either a whole life policy for universal life. Here’s the biggest misunderstanding I see: The individual does NOT own the policy. The company does and is also the beneficiary.
The company may get a tax deduction in paying for the key man life insurance policies’ premiums, but they can only do so if they add the premiums paid to the individuals taxable income. This might not sound as attractive if your the individual, but most companies will offer the cash value build up as an added retirement benefit.
I had one client that worked for an old company that had bought a $400,000 cash value life insurance policy on him. He had retired from the company and they let him take the policy with him. The cash value was only around $20,000 which he ended up leaving in the policy to pay for the premiums until it expired.
Are you a business that is need of key man life insurance? Give my office a call and we can give you a free review to see where you might need some coverage.
When you’re looking to get a key man life insurance plan, there are dozens of different factors that you have to consider to ensure that you’re getting the best plan to fit your company’s needs. It can be a long and difficult process, but if you’re one of the main components in a small business, you know the importance of getting insurance protection and not paying more for that coverage than you have to.
Obviously, the most important factors are how much it’s going to cost your organization to replace you if anything tragic were to happen. Each business is different and every person’s responsibilities inside of that organization are going to vary.
For example, if you manage all of the finances of your business, you’ll need to hire another person to handle those or outsource the finances. Depending on how long you need to outsource the job, you could need thousands and thousands of dollars of life insurance.
You’ve worked hard to make your small business flourish. It’s your lifeblood. If you started the organization yourself, you want to be able to protect that business, regardless of what happens to you. The best way to ensure that your employees and business partners have the security that they need is to have a key man life insurance policy that will give the resources that they need, if anything tragic were to happen to you.
Additionally, your family probably relies on the business and the income that comes from it. If something were to happen to you, not only would your business suffer, but your family would struggle as well.
Also worth noting, smart co-owners will set up buy-sell agreements and fund them with life insurance
Getting Better Key Man Life Insurance Rates
Just like any other type of life insurance policy, there are several things that you can do to ensure that you’re getting the best price for your coverage. You should always compare the rates from dozens of companies before you choose the one that works best for you. You compare the prices of TVs, why wouldn’t you do the same for a key man insurance plan?
Every insurance company is different, and all of them are going to have different medical underwriting requires and guidelines for how they determine their premiums amounts, which means that you could get drastically different rates from two separate companies. The best place to start your search is with the insurance company that you already hold policies with. Just about every insurance company gives discounts for having more than one policy. Getting a bundled discount is a great way to save a couple of extra dollars on your key man insurance policy, and could save you money on your other plans as well.
When you apply for a key man life insurance policy, just about every insurance company is going to require a medical exam. The results of the medical exam are going to play a major role in how much you’re going to pay every month for the policy. It’s important that you or the person being insured is in excellent health. One of the best ways to get lower rates for your key man policy is to cut out the tobacco.
If the person that is getting the plan is a smoker, then you’re going to be paying much higher rates. Anyone that uses tobacco is going to have a higher chance of heart attack and cancer, which means the insurance company is taking a great risk. They are going to offset all of that risk by charging you twice as much for that insurance coverage.
Don’t wait any longer to get the key man life insurance policy that your business and family deserve. You can’t predict the future, which means that you never know what’s going to happen tomorrow.
Does this sound disturbingly familiar? Skyrocketing home prices have very suddenly leveled off. Recession fears are swirling. The number of home sales has dropped. Is it 2006—the year that saw the ramp-up to America’s housing crash two years later—all over again?
Just like in the mid-2000s, experts are adamant that the correction in the housing market is simply that: a correction and not a catastrophe. Many news reports from early 2006, which often downplayed the risk of a severe housing crash, seem like they could be written about what’s happening today.
But back then, the pundits were wrong. We all know that a housing bubble burst, ushering in the Great Recession and taking down the global economy with it. Hindsight is 20/20.
So is the housing market in for a repeat performance? Or is this just some temporary pain for both buyers and sellers?
“Parallels can be drawn because of how quickly home prices have risen over the past few years,” says Yelena Maleyev, an economist at KPMG. “But that’s where the comparisons would end.”
Housing experts are quick to point out that the foundation of today’s housing market is stronger than it was in the mid-2000s. This time the downturn is due to higher mortgage interest rates, which rose rapidly from below 3% in 2021 to the high 6% range.
Today’s buyers have monthly mortgage payments that are basically double what they were just before the COVID-19 pandemic began. So many aren’t buying, or they’re unable to bid up prices like they did over the past few years.
But the most important difference between then and now is there are many more buyers than there are homes available this time around. The acute housing shortage will likely keep prices from falling off a cliff.
During the Great Recession, there were plenty of available homes—and no one to purchase them—so prices dropped about 26% over five years for existing homes. Today, buyers are still willing to bid over the asking price for move-in ready homes in desirable neighborhoods despite the financial challenges they face.
In addition, mortgages made over the past few years are much safer than those made nearly 20 years ago when lenders joke that their dogs could have gotten loans. The worst of the subprime mortgages that got homeowners in trouble when their payments suddenly doubled—or even tripled—have largely been eradicated. Borrowers have been thoroughly vetted, and only the strongest have been approved. And today’s homeowners are generally sitting on record amounts of equity.
“There are a lot of similarities that we should not ignore just because this time is different. … We do have some of our fundamentals that are out of whack,” says Ali Wolf, chief economist of the building consultancy Zonda. “But I don’t think it’s going to be a crash because the undersupply of homes is so different.”
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Watch: The Best Cities in the U.S. for Home Sellers Right Now
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Will home prices crash?
The question on the minds of homebuyers, sellers, and homeowners is what is going to happen with home prices.
They’ve already come down from their peaks last summer, which is typical. But they’ve also dipped a bit in some of the markets that got the most heated during the pandemic.
That’s reflected in the new-construction data from John Burns Real Estate Consulting. The price of newly built homes in Phoenix fell 15% year over year in March, according to the data. (The price includes incentives and concessions.)
In Boise, ID, another pandemic destination, prices were down 14% year over year for newly constructed homes. Prices dropped 10% in San Antonio, TX, just outside of Austin.
“It’s substantial,” says Devyn Bachman, senior vice president of research and operations at John Burns.
These places where prices rose the most or were extremely expensive to begin with might be the most vulnerable to larger price corrections, says Lisa Sturtevant, chief economist of Bright MLS. That includes the priciest parts of many housing markets, such as the downtowns of large cities.
Even with the affordability challenges, more than half of the sellers in the mid-Atlantic region received multiple offers in March, according to Sturtevant. About a third of all of the home sales went for more than the list price.
And home prices could continue to rise in the more affordable markets, such as in the Midwest. Homes in the lower price tiers could also see prices go up. Demand is so high for those more affordable properties that the competition often results in higher prices.
“We should expect some price corrections, not a price crash in these places where prices ran up the fastest,” says Sturtevant. “Everything seems to be slowing down a little bit … but everything still seems very competitive.”
The shortage of homes for sale is also keeping prices high. Builders have slowed down construction as their pool of buyers has dried up. And homeowners who would have listed their homes have been reluctant to do so thanks to the high mortgage rates. Most sellers are also buyers, many of whom will need to get a new mortgage at today’s rates. That means significantly higher monthly payments.
“Are there enough homes on the market for sale today? No,” says Matthew Gardner, chief economist at Windermere Real Estate. The Seattle-based brokerage covers much of the Western U.S. “Who is going to sell their home when they’re comfortably sitting on mortgage rates that are around 3%?”
Could higher mortgage rates deliver a death blow to the housing market?
Low mortgage rates were the fuel that caused the housing market to catch fire during the pandemic. Low rates meant buyers had more purchasing power—and could afford to bid higher than they otherwise would have. But when they rose, and buyers could no longer afford to buy, the housing correction commenced.
If the U.S. Federal Reserve keeps raising its rates to combat high inflation, mortgage rates are likely to keep climbing. That could scare off and price out additional buyers and put pressure on home prices to come down.
But many real estate professionals don’t anticipate mortgage rates to zoom up. They largely expect them to stay about where they are now—in the mid-6% range—at least through this spring.
Important to note: Historically, a 6% mortgage rate is relatively low. It’s a lot better than the peak of about 18.6% in September 1981, according to Freddie Mac data. The problem is home prices are high and memories of rates below 3% are fresh in the minds of many recent homebuyers and sellers. For every percentage point rise in rates, buyers can afford a whole lot less house.
Even though higher rates have led to a correction in the market, there are still buyers around the country queueing up at open houses.
“People have figured out how to make these mortgage rates work. They’re just looking for something to buy,” says Sturtevant.
Could there be another wave of foreclosures?
Foreclosures have been ticking up as pandemic-era moratoriums aimed at preventing homeowners from losing their properties have expired. But another tidal wave of foreclosures, like what happened during the 2000s, isn’t likely.
In the 2000s, “we had a huge amount of people using adjustable-rate mortgages with remarkably low interest rates. And there were also people who quite frankly should not have gotten a mortgage,” says Gardner, of Windermere. But when mortgage rates rose, “people found their mortgage payments doubling overnight and they had next to no equity. So what did they do? They walked away.”’
About 40% of homeowners currently own their homes outright without a mortgage, according to KPMG’s Maleyev. Many homeowners have record amounts of equity in their properties thanks to the rising prices over the past few years. So if they were having trouble making their mortgage payments, they choose to sell their homes instead—and often walk away with a profit. And most homeowners who have mortgages have 30-year fixed-rate loans, which don’t balloon in size over time.
There were more adjustable-rate mortgages in the early 2000s. So when mortgage rates ticked up and borrowers’ payments ballooned, “it didn’t take very much to burst that housing bubble,” says Maleyev.
Now, many real estate experts believe the nation is headed right into a recession—or will it be a near miss? A downturn with steep job losses would likely result in unemployed homeowners losing their abodes.
It would also discourage many folks, even those who remain employed, from purchasing property. Buying a home is typically the largest transaction that most people will ever make. And many people won’t feel comfortable doing so if they’re worried about the stability of their jobs.
“We will likely see some effects on the housing market going forward,” says Bachman, of John Burns. “Any time you lose jobs, there’s less demand for housing, for sale and for rent.”
But few expect another downturn would cut as deep as the Great Recession—or last nearly as long. Once the Fed gets inflation under control, it’s expected to cut rates to combat any turbulence in the economy. That will likely lead to lower mortgage rates, giving the housing market a boost. Many economists believe the housing market will begin recovering as early as next year, if not the year after that.
“It’s not the calm before the storm,” says Gardner. “This was just an important reset in the housing market.”
VICTORVILLE, Calif. — Century 21 Desert Rock Realtor Monica Lu’uga tells her clients to get their ducks in a row in the coming months, especially if they want to buy a home in the High Desert.
What You Need To Know
If the Federal Reserve pauses rate hikes, mortgage rates could drop and spur a homebuying run, experts said
The Federal Reserve is set to meet Wednesday
San Bernardino County’s High Desert is experiencing a commercial and residential development boom
San Bernardino has low inventory compared to its pre-pandemic numbers
With the Federal Reserve set to meet again this week, mortgage rates could drop in the next few months.
“If that happens, I think everything housing is going to go up again,” said Lu’uga to Spectrum News. “Sellers are going to have a field day again.”
The Federal Reserve will meet Wednesday to possibly raise interest rates for the last time as part of a yearlong effort to stem historically high inflation to 2%.
In March, the central bank met and raised interest rates for the ninth consecutive time since March 2022, going from nearly zero to just under 5%, according to reports. While interest rates and mortgage rates differ, the Federal Reserve’s actions on raising interest rates usually influence mortgage rates and long-term loans.
It’s still unclear which way the Federal Reserve will lean Wednesday regarding a rate hike. The latest consumer index report shows inflation cooled in March, indicating that the central bank’s hikes are working.
But if the Federal Reserve decides to pause rate hikes during this meeting or next, mortgage rates could drop and spur another homebuying run, many housing experts said.
The National Association of Realtors Senior Economist Nadia Evangelou said as inflation eases, mortgage rates could head below 6% in the coming months.
“Falling mortgage rates create opportunities for many buyers,” said Evangelou in a news release. “A lower mortgage rate brings down the monthly payment for a home loan. If rates drop to 6%, 3.1 million, more households will once again be able to afford to buy the median-priced home compared to the beginning of the year.”
Lowering the mortgage rate could spark more housing movements in San Bernardino’s High Desert, such as Victorville, Apple Valley, Phelan, Hesperia and other cities up the 15 North Freeway.
The area, more commonly known as the cities many residents in Los Angeles, Orange, and Riverside County residents pass as they drive to Las Vegas, is one of the few places in Southern California where a nicely sized home could be had for $350,000 and a mortgage less than $3,000.
According to an affordability calculator created by the National Association of Realtors, the average monthly mortgage payment in San Bernardino is currently $2,664, compared to last year’s $1,630.
Like many cities and counties across Southern California, San Bernardino County is experiencing a record-low inventory level. Demand has fallen only slightly because of high-interest rates and the low number of homes for sale, according to Reports on Housing, a data site that covers Southern California’s housing market.
“If more homes were available, pending sales would rise,” said Steven Thomas, an economist at Reports on Housing. “Buyers cannot buy what is not available. This scarcity of homes will continue as long as rates remain elevated.”
Spring is usually the start of the homebuying season and continues upward throughout the summer before it slows when school resumes. However, the lack of homes for sale has muted the housing market. Several people have hunkered down, either happy or handcuffed to the low-interest rates offered during the first couple of years of the COVID-19 pandemic.
Lowering mortgage rates could incentivize people to sell, experts said. San Bernardino sits at around 2,900 homes for sale in April, its lowest level since April last year, when it had about 2,600 homes on the market, according to Reports on Housing. Before the pandemic, San Bernardino averaged nearly 4,900 homes during the spring market.
“This is the latest bottom,” said Thomas to Spectrum News. “It’s no different than what’s happening across Southern California.”
Thomas said the market is growing hotter as buyers willingly jump into the fray despite the higher rates and low supply. According to Mortgage Daily News, the 30-year-fixed rate is 6.7% as of Monday.
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A look at Redfin’s latest seven-day sold listing shows homes that have sold less than a month after being listed and for above the list price.
“Buyers entering the market today are blown away at just how fast homes that are in good condition and priced according to their fair market values are flying off the market with dozens of offers to purchase,” Thomas said. “Open houses are bursting at the seams. In some cases, inspection and appraisal contingencies are once again being waived like they were when mortgage rates were below 3%.”
Lu’uga, the real estate agent specializing in this market, said people should expect the market to heat up again, especially if mortgage rates fall. She noted that San Bernardino County is experiencing a commercial and residential boom, which is good for the economy.
The e-commerce boom is fueling the county’s growing industrial and warehouse businesses. Brightline West is beginning work on an electric train that could travel 200 miles per hour from Apple Valley to Las Vegas.
The San Bernardino Airport is looking to attract more airlines to the regional airport to serve the county’s residents. More are coming.
“Aside from being affordable, we have a lot of commercial and residential developments being built,” Lu’uga said as she rattled off the projects like the Brightline train and industrial buildings. “I think we’re going to be a hot market again. We have a lot going for us.”
Dependable Home Warranty was founded in California in 1974. When they became a subsidiary of Old Republic International in 1982, they continued to provide reliable coverage to all of their customers.
They have since earned a spot among the top three home warranty companies in the country with an A+ rating from the Better Business Bureau.
Old Republic offers efficient and friendly service with comprehensive plans and straightforward pricing.
Their goal is to be a long-time service provider for your household by building a relationship with your family and earning your trust.
Old Republic Home Protection Review: Main Features
Table of Contents
Old Republic offers many ways to protect your investment by covering common home repairs to help keep your house safe and sound.
With Old Republic, you can expect to find a variety of plans tailored to meet your coverage needs. Across plans, there are a number of features that stand out.
The following are some of our favorite Old Republic coverage features included in all plans, features which put it on our list of top home warranty companies.
Heating System
Heating units not exceeding five tons are covered under all of Old Republic’s warranty plans, and they don’t limit the number of units you can cover.
Most companies only allow coverage for one unit, and you have to pay extra for additional units, so this is a really excellent coverage option.
If you have multiple heating units in a large house or you have an outbuilding you use for your hobbies and projects, this coverage provides you with a great solution. Heating system coverage includes parts like the heat pump, ducts, thermostat, floor heater, and drain pumps.
Plumbing System
When a part of your plumbing isn’t working, it can disrupt your entire routine from dishes to showers to bathroom breaks.
Old Republic’s plumbing system coverage includes the following:
Drain line stoppages
Toilet tanks
Pipe leaks
clogs/leaks: in your water heater, water dispenser, garbage disposal, sump pump, and water pressure regulator parts
Electrical System
You use your electrical system for almost every part of your day. Making toast for breakfast, watching TV in the afternoon, and playing games with your kids in the evening all require electricity.
To keep the lights on, Old Republic covers your outlets, switches, panels, breakers, wiring, fuses, fans, and more.
If something goes wrong with your electrical system, they’ll restore power quickly so you can keep moving.
Home Appliances
Old Republic covers home appliances like your oven, cooktop, range, dishwasher, exhaust fan, built-in microwave, and trash compactor.
Every component of these systems is included in the event you experience normal wear and tear or an unexpected outage.
With this coverage, you can keep your kitchen in proper working order to cook meals, do dishes, or gather with family and friends.
Old Republic Warranty Plans
Old Republic offers customizable warranty plans based on location. While there’s not a standard set of plans for you to preview, Old Republic has brochures available that detail the specific coverage in your area.
Old Republic offers location-based plans to provide better coverage based on common problems in your region.
For instance, you won’t pay for air conditioning coverage when your home doesn’t have an air conditioner.
They can provide superior options and more valuable service by segmenting their warranty plans this way. Experts servicing your location will be more knowledgeable about the problems you encounter and be able to fix them more quickly.
The Good – Old Republic Home Protection
Old Republic offers some benefits in addition to their exceptional features, giving you not only great coverage but fantastic conveniences that make your life easier. Here are just a few of our favorites.
Easy Quotes
You don’t have to call Old Republic to request a quote, and you won’t be hassled by their representatives.
They provide online brochures listing the coverage options in your area so you can do the research on your own and find what’s right for you.
The quoted estimate is highly accurate and lists the service call fee along with the warranty plan price.
Online Claims
Most of your home warranty claims can be handled online, adding convenience to the process. If you find faulty wiring in the basement and you can live without spending time in that space for a few days, the online option is easy to use and eliminates the need for you to pick up the phone.
You should always call instead of filing a claim online in the event of an emergency or if you need to make multiple requests like bringing up previous services or getting the status of an existing claim.
Great Reputation
Old Republic prides themselves on having an outstanding reputation, and they do everything they can to maintain it. They’re reliable, professional, and competent.
The company lists their values online so you can always see how important it is to them to provide you with the best possible service.
They value honesty, and they are always open with their customers. With this kind of transparency, you can rest assured they’ll do whatever they can to give you the best service at the best prices.
Online Resources
Old Republic’s website includes a number of educational tools that can help you make an informed home warranty purchase.
With a blog full of home improvement tips, real estate marketing tools, information about home warranties, and more, you’ll be able to find what you need quickly.
The FAQ page includes answers to the questions that customers ask Old Republic most frequently, so when you’re on the hunt for more information about the company or their plans, it’s all right there.
Real Estate Professional Options
For real estate professionals who prefer to add perks to their sales, Old Republic has packages just for you.
You can cover all of the homes you sell with a fantastic starter warranty, enticing your buyers and giving you an edge.
These plans include extensive tools like customizable e-cards and newsletters, open house kits, and other marketing items.
The Bad – Old Republic Home Protection
As with anything you buy, Old Republic has some downsides, none of which are too significant.
Coverage Areas
They don’t provide nationwide service, so their warranty plans aren’t available everywhere.
However, Old Republic has chosen to focus on areas where they feel they can offer the best value, so in the areas where service is available, it’s the best service you can get.
Customer Support
Old Republic doesn’t offer email or online support. Sometimes the most convenient thing you can do is hop online and chat with someone if you have a quick question.
Support Options Limited
The lack of online support forces you to call in a situation where it would typically be simpler to chat.
However, they do have phone representatives, and their online help section is more comprehensive than many other providers. They have an extensive FAQ section as well as a blog that provides even more advice and answers.
Pros
Cons
Comprehensive Coverage
Old Republic Home Protection offers a wide range of coverage options, including for major appliances, systems, and optional add-ons such as pool and spa coverage.
Ease of Use
Old Republic Home Protection makes it easy to request service and track claims online or through their mobile app. They also have a network of pre-screened contractors to provide service.
Strong Reputation
Old Republic Home Protection has been in business for over 45 years and has a strong reputation for customer service and claims handling.
Customizable Plans
Old Republic Home Protection offers a variety of plans and optional add-ons, allowing customers to tailor their coverage to their specific needs and budget.
Alternatives to Old Republic
Old Republic is one of several great home warranty companies. Take a look at the top alternatives below to decide which provider is best for you.
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The Bottom Line – Old Republic Home Insurance Review
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While Old Republic doesn’t have online chat support or coverage in all areas, they do have a fabulous reputation for being honest and upfront with customers.
Their integrity standards are some of the best in the business, giving you peace of mind that your warranty coverage will be honored.
Their quotes are easy to find without having to reach out to a representative, they have a no-pressure sales process, and they offer location-specific coverage for more comprehensive plans and solutions.
When it comes to home warranty coverage, Old Republic provides excellent options for all of your home warranty needs.
FAQs – Old Republic Home Insurance
What does Old Republic Home Protection cover?
Old Republic Home Protection offers a range of coverage options, including for major appliances, heating and cooling systems, plumbing, and electrical systems. Optional add-ons, such as pool and spa coverage, are also available.
How does Old Republic Home Protection work?
If a covered item in your home breaks down, you can file a claim with Old Republic Home Protection either online or over the phone. Old Republic will then send a pre-screened contractor to your home to assess the problem and perform any necessary repairs.
How long does a contract with Old Republic Home Protection last?
Old Republic Home Protection requires a one-year contract. The contract automatically renews each year unless canceled.
Product Description: Old Republic Home Protection is a home warranty company that offers coverage for home systems and appliances.
Summary of Old Republic Home Protection
Old Republic Home Protection is a home warranty service that offers coverage for major repairs and replacements for important home systems and appliances. It provides coverage for items such as heating and cooling systems, plumbing, electrical, water heaters, and more. The company also offers additional services such as repair scheduling, 24/7 emergency service, online account management, and an annual maintenance plan.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
3.9
Pros
Predictable Coverage: A one-year contract with automatic renewal means that homeowners can count on having coverage for a set period of time without having to worry about renewing the contract themselves.
Continuous Coverage: Automatic renewal ensures that there is no gap in coverage, which is especially important for homeowners who rely on their home systems and appliances.
Budgeting: With a one-year contract, homeowners can budget for the cost of the home warranty and plan accordingly for the renewal.
Cons
Long-Term Commitment: A one-year contract means that homeowners are locked into the service for a set period of time, even if they are dissatisfied with the coverage or service provided.
Cancellation Restrictions: Cancelling the contract before the end of the term may result in penalties or fees, depending on the terms of the contract.
Automatic Renewal: Automatic renewal means that the contract will renew automatically unless cancelled, which may catch some homeowners off-guard if they forget to cancel before the renewal date.