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Apache is functioning normally

Apache is functioning normally

Add this to the list: control costs while growing and use an off-the-shelf tech system when you are small. 

“The focus for me is: I want to grow in a very sustainable, methodical way,” Shoemaker said. 

TLS will focus on the wholesale channel but not compete with United Wholesale Mortgage (UWM), Shoemaker said. The core business will be conventional government lending, though TLS will create value-added products and services. Despite inheriting more than 9,000 brokers from Homepoint, TLS will only do business with the “right brokers,” Shoemaker said. 

“That capacity allows us to take about $400 million a month, which is a very small number relative to what we were generating at Homepoint. The people we’ve hired allow us to take it from $20 million to $400 million a month. We’re about halfway there, and we’re in month two and a half [since the transaction]. Once we get there, we’re going to focus on optimizing things.” 

Shoemaker answered a range of questions in an interview with HousingWire in mid-June. 

This interview has been condensed and edited for clarity.

Flávia Nunes: Why did Homepoint choose to sell its origination business to TLS?

Phil Shoemaker: There were a few things important to me as well as to Willie [Newman, Home Point Capital CEO and president] and the team at Homepoint that put this deal together. We wanted to make sure that we set the origination team up for success. The best way to do that, based on everything I’ve learned the last 28 years, is to accomplish a couple of things. 

We wanted to find a platform where the capital, the ownership structure, was long term, meaning we were looking for a group of individuals that owned a mortgage entity to operate in perpetuity, and there was no strategy to build it up to a certain level and then sell it. To that extent, the owners of TLS, two of them are close friends of mine, are looking to build a successful mortgage bank that is sustainable and profitable with time. That means doing things methodically, sustainable across the market cycles, and maybe not growing as fast. 

Nunes: Will TLS only operate in the wholesale channel?

Shoemaker: I do think the model is mattering more and more. Despite the competitive dynamic of wholesale, I still think wholesale is the right model to access the purchase market, the primary market. And the reason why I think that’s the case is because I think it’s the best for the borrower. Anytime you’re aligned with the consumer, overtime you’ll win. 

Now, the competitive dynamic in wholesale is fairly unique, and I don’t think that’s gonna change because the main incumbent is good at what they do. We’re all gonna need to keep stepping up and doing it better. The whole nature of wholesale is optionality; brokers want choices. We’re not looking to do business with every broker out there; we’re looking to do business with the people that are aligned with us culturally.  

Nunes: How has the transition of employees from Homepoint to TLS been so far? How has their compensation changed? 

Shoemaker: We’re still going through that process, we’ve gotten most people over. When the last person joins TLS, it’s gonna be just around 100 or so people. In total, by the time we’re done, there’s probably gonna be upwards of 140. It was our goal to make sure that everyone transitioned without seeing an impact at least to their base compensation. 

The market overall is seeing salaries, and probably more variable compensation, start to normalize because there was a bit of a run-up in 2020. We’re seeing salaries start to come back to a more normal level across the board. Within that, I think you’ll have two types of strategies: companies trying to bring new people in, train them and pay them at a lower level, and then you have people – and this is more the strategy where we’re – going more towards the highly experienced people. We want to pay them fair compensation, and we want to give them an upside based on the performance of the company.

Nunes: The cost structure was a problem at Homepoint. How will you control expenses at TLS? 

Shoemaker: The important piece is making sure every dollar we spend needs to go towards making a good loan. The experience I had at Homepoint was great. Of course, we all wish we could have worked out differently. That’s a given. But I really don’t regret it. It was a great experience. The people I met. The private equity investors – very good people. But you learn things, right? To some extent, the bigger you get, and the faster you do that, you start to get infected with a lot of costs that maybe are not necessarily directly attributable to making the loan. The focus for me is I want to grow in a very sustainable, methodical way. 

The biggest lesson is skill matters in a big way. So, when you get larger, your fixed costs get diluted over a larger slice of production. That said, you still have to be efficient. The problem is the bigger you get, the harder it is to change things. Literally, it’s like turning the Titanic. You can’t build it and then come back and try to make it more efficient. It’s something you have to do on the way up. Maybe some people can, but that’s not what I intend to do. To be clear, I’m not trying to compete against UWM. That’s not my goal. And anyone out there that thinks they can; they’re crazy. Again, it’s a big market. I know it’s a challenging market. Wholesale will continue to expand. I’m just going to focus on what I can do well and the things I can control.  

Nunes: Another problem at Homepoint was the technology. Tell us about TLS’s tech stack. 

Shoemaker: I do believe that is part of the secret sauce. My first time actually dealing with a vendor was when I came to Homepoint. And here’s where I’ve got with that: I actually don’t believe there’s any strategic advantage in having and building your tech in-house. The more you try to customize and build things on your own, the more cost you create. If you’re doing a ton of volume, then sure it makes sense. But that’s not most of the world. 

When you customize an out-of-the-box system, you actually end up with a scenario where you’re not only maintaining the cost structure of running your own proprietary system, but you’re also having to pay the vendor. We’re going to go all in on an off-the-shelf system. We’re currently using Ellie Mae, they’ve agreed to align with us on our roadmap, what we need. The expectation is we’re going to build a platform that is competitive, that doesn’t have any gaps, that performs well, and they’re going to bear that cost. My hope would be they then take that and they give that to other lenders and wholesalers and they’re able to take advantage of that, because we need more wholesale lenders, not less.

Nunes: TLS is a small lender. How big can the company be in the short term? 

Shoemaker: Before Homepoint, TSL was doing maybe $20 million or $30 million a month — a very small company. That attracted me because I didn’t want to come into something where there was a whole lot of volume, and then you had to change things. It’s a lot easier to change things when you’re small. It also was all pure wholesale, so it wasn’t business channels that needed to be changed or shut down. The other benefit is the way it’s been set up is very scalable. 

TLS was formed in 2019. Since then, it hasn’t scaled much. They grew about $350 million per month in 2020, when the refi boom was there. But they never really got big, so their emphasis is really just getting things right.  As a result of that, their quality track record has been outstanding. At the time that we joined, they originated like 7,600 loans, and there were only seven loans out of that 7,600 that were bought back. It was a platform ready to take on some scale but didn’t have the people, experience or structure to do that. We are taking the best of salespeople, we’ve transitioned over to TLS. That capacity allows us to take about $400 million a month, which is a very small number relative to what we’re generating at Homepoint. The people we’ve hired allow us to take it from $20 million to $400 million a month. We’re about halfway there, and we’re in month two-and-a-half [since the transaction]. Once we get there, we’re going to focus on optimizing things. 

Nunes: What will be TLS strategy in terms of products? 

Shoemaker: We’re about to do a big marketing push on something called ‘buy before you sell.’ This is a partnership with a company called HomeLight, where we’re able to create liquidity for borrowers in their current homes and make it easier for them to get out of their homes and into a new one. It’s addressing the inventory issues. We’re going to focus on things like that. Our core business needs to be conventional government wholesale lending. But what we’re going to do is, rather than focusing on scale, we’re going to focus on creating value-added products and services around that, which will further diversify the business, make it more sustainable, and then will grow as the market conditions allow us to grow or it makes sense to grow.  

Nunes: How will TSL compete in terms of price? 

Shoemaker: TLS was doing about $20 million a month; we’ll be somewhere in the $130 million range this month, and next month we should be upwards of $200 million. We’re growing the business very quickly. And the reasons why we’re able to do that are: 1) We have control, and our cost structure is allowing us to price at a level that is in line with the market. 2) We do spend money on people, and so the service is ultimately where we’re going to win; 3) Our goal is to not do business with every broker–to be clear, we want to do business with the right brokers. 

Nunes: Who is the right broker for TLS? 

Shoemaker: It’s probably more of a cultural piece. We had 9,500 brokers or so at Homepoint and we have access to those brokers now at TSL, that’s basically what was acquired. But if we were to go to do business with all of them now, we would blow ourselves up. We can’t support them. We’re strategically deciding based on the products we offer; based on, for example, it being a purchase market. We’re focusing our energy on brokers that we think are best suited for this market as sequencing it in a way where we can ensure the service levels that we want to support. Rather than going for scale and getting vague, we’re going to focus on service, and we’re gonna define ourselves around being really best in class when it comes to purchase. Based on the size of TLS, I would not be surprised if we’re supporting LOs somewhere in the range of 1,500 or so. 

Nunes: Home Point Capital bought a share at TLS, but now it has been sold to Mr. Cooper. What will happen to this investment? 

Shoemaker: Home Point, as part of the transaction with TLS, they did get 9.99% of the TLS that was the consideration that was given for the assets that were purchased. But the majority of TLS is owned, is in control, and the company’s isolated, with a group of individuals aligned to build this business for long-term sustainability.  

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

Most income taxes in the United States are paid by the people with the most income. That is in keeping with the generally progressive nature of the individual federal income tax, the primary source of government revenues, which applies higher tax rates to higher incomes. However, some taxes fall more heavily on people with less income, while the most affluent of all can sometimes pay little or no income tax. A financial advisor can help you plan to manage your taxes.

The Biggest Taxpayers

The biggest source of tax revenue in the United States is the federal individual income tax and the biggest source of individual income tax revenues consists of the nation’s highest earners. In 2023, according to an estimate of the Tax Policy Center, 67% of all federal income tax collected will come from the top 20% of earnings, who were bringing home more than $189,200 annually. The situation where a small minority of high earners pay most of the individual income taxes has remained steady for many years.

Beyond that, figuring out who pays the most total taxes in the United States is complicated by the fact that there are many types of taxes. Federal individual income taxes levied on earnings from working and investing is just one variety, albeit the most important.

Payroll taxes supporting Social Security, Medicare and unemployment benefits are the second-largest source of federal tax revenues. Employers deduct these Federal Insurance Contributions Act (FICA) taxes from workers’ paychecks.

Other taxes include corporate income taxes, estate taxes, gift taxes and customs duties. Excise taxes are assessed on gasoline, alcohol, gambling and some other products and services. These taxes land more or less heavily on different taxpayers. For example, lower-income workers pay a larger percentage of their incomes in payroll taxes than higher-income workers thanks to the cap on income subject to Social Security taxes.

The capital gains tax is a special tax imposed on certain types of investment income that is in lieu of and generally lower than the individual income tax rates. Capital gains taxes are mostly paid by people who have more assets, while people with few assets may pay little or no capital gains tax. Similarly, property taxes, which are the major source of revenue for state and local governments, are only levied on the owners of property such as real estate.

Factors Influencing Who Pays the Most Taxes

A number of factors determine how much someone pays in federal income tax. The interplay between these factors and taxpayers’ efforts to save on taxes while conforming to the tax law, is largely responsible for the complexity of tax planning and preparing tax returns. Here are some of the major considerations.

  • Taxable income: As your income rises, you move into a higher tax bracket, which means more of your income goes to taxes.
  • Filing status: Tax rates vary depending on whether you are filing as a single individual, a married couple filing jointly, a married couple filings separately or as a head of household.
  • Adjustments to income. Retirement plan contributions, student loan interest payments and some other outlays can reduce your taxable income and your taxes.
  • Exemptions: Taxpayers can further reduce income by claiming exemptions, including dependency exemptions for their children.
  • Deductions: Yet another way to reduce taxable income is by claiming deductions. In addition to the standard deduction, you may be able to claim deductions for medical expenses, charitable contributions, home mortgage interest and other costs.
  • Tax credits: Credits for education and energy conservation, among other categories, can not only reduce your taxes but result in the government sending you a check.

Managing your tax liability consists largely of working with these factors. For example, if you have an unusual amount of income in one year, you may be able to use averaging to spread the income among different taxable years, keeping you from moving into a higher tax bracket.

Using the capital gains tax to reduce income taxes is also important. If you have assets that have appreciated in value, you could be subject to a large capital gains tax bill when you sell them. On the other hand, if you never sell them, you may be able to pass them on to your heirs without ever paying any income tax on your increased wealth. Very affluent taxpayers can pay their bills while avoiding income and other taxes by a number of other means, including pledging their assets as collateral for loans, the proceeds of which are not taxable.

The Bottom Line

The people with the highest incomes generally pay the highest taxes in the United States, thanks to the generally progressive individual income tax system used by the federal government. There are some exceptions to this type of policy, as very wealthy individuals can find ways to reduce their taxes – sometimes paying none at all – by making the most of so-called loopholes in the tax code. However, as a rule, the top 20% of earners pay more income taxes than the rest of the tax-paying population put together.

Tax Tips

  • Managing and reducing the amount of taxes you pay can benefit from the assistance of a financial advisor. Finding a financial advisor doesn’t need to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • SmartAsset’s Federal Income Tax Calculator can help you break down your tax obligations including the total tax as well as the type of tax and your marginal and effective tax rates.

Photo credit: ©iStock.com/Rossella De Berti, ©iStock.com/Drazen_, ©iStock.com/D-Keine

Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.

Source: smartasset.com

Apache is functioning normally

Apache is functioning normally

If you’ve ever wanted to live on an off-grid, private island, this might be the opportunity for you.

Located in Groton, CT, Mouse Island is home to just three residences and accessible only by boat.

One of the houses has just hit the market for $900,000. The four-bedroom dwelling was built in 1939 and offers a cozy 1,531-square-foot, seasonal retreat.

“Having a cottage to unplug [in] on an island is a special thing, but what is extra special about this home is not only its location but the convenience to be able to get to it, and it is surrounded by breathtaking views,” says listing agent Nassim Saad, of Re/Max on the Bay.

Although on an island, the house isn’t so far from land.

“It’s at the mouth of the Mystic River and off the coast of Morgan Point Lighthouse,” says Saad. “Fishers Island is on the south, and Ram Island is to the east. You can hop on a dingy, and get dinner at a popular clam shack on the river or downtown Mystic, as well.”

Aerial view

(Realtor.com)

Dock

(Realtor.com)

Dock your boat and enjoy the coastal views from the front farmer’s porch, complete with Adirondack rocking chairs. The all-white interior boasts oceanfront views from every room.

‘Like a boat on land’

“The home functions like a boat on land,” Saad says. “It has a full, functioning bathroom. There are solar-powered batteries and rainwater cisterns for the sink. The owners also bring their own water to the island, as needed.”

While the island offers totally green, off-grid living, the towns of Mystic and Noank, CT, are just a quick boat ride away.

“It’s a great way to be one with nature and is a unique place to escape,” says Saad.

The four-bedroom home is being sold fully furnished, including all appliances, furniture, and even a generator. An Eastern, 18-foot skiff motorboat is included for water transport.

The first-floor, open floor plan features wood-paneled walls, exposed beams, and preserved wood floors.

Kitchen

(Realtor.com)

Dining room

(Realtor.com)

A bright and airy kitchen has updated appliances and large windows with lovely views. A nearby dining room has a built-in hutch.

The cozy living room features a working fireplace, and the home’s one full bathroom is situated nearby on the main floor.

Four cute bedrooms, including the spacious primary bedroom, are upstairs.

Living room

(Realtor.com)

Bedroom

(Realtor.com)

From back and front decks to a side patio with fire pit, there are plenty of outdoor spaces for enjoying the spectacular waterfront vistas.

Saad said he believes the home’s next owner will be someone who is comfortable with its current setup as a vacation getaway.

“You could explore other options, but it’s designed to be a seasonal property for someone who wants simple living,” he explains. “The current owners didn’t want to make it more than that. They loved the simplicity of it and hope the next owners will, as well.”

Porch

(Realtor.com)

Fire pit

(Realtor.com)

Source: realtor.com

Apache is functioning normally

Apache is functioning normally

Growing unemployment across the U.S. has prompted millions of adults to move back in with their parents.

As a new Zillow analysis shows, the potential rent lost from Gen Z alone could total an estimated $726 million, and the ripple effects of their next move could have far-reaching consequences for the housing market.

The number of adults living in a parent’s or grandparent’s home grew by more than 2.7 million in March and April, nearly triple the next-largest two-month increase from the past five years. A large majority of those who moved home – about 2.2 million – are from Generation Z, and between 18 and 25 years old.

Those 2.2 million Gen Zers represent an estimated $726 million in rent payments each month – payments that could be lost if these moves prove to be more than a temporary measure. That represents about 1.4% of the rental market at risk. It is highly unlikely that all leases will be broken and this full amount would go unpaid, but it serves as a gauge of the potential impact on housing.

The next move this population makes could shape the housing market’s near future. If jobs quickly return to pre-pandemic levels, the housing status quo could return just as quickly as these renters return to the market. But if jobs are permanently lost or slower to recover than expected, that could free up many rental units and drive down prices.

“The share of adults living with their parents has been high since the global financial crisis of the aughts,” said Zillow Senior Principal Economist Skylar Olsen. “Then, it was Millennials flocking to the basements and spare bedrooms of their Baby Boomer parents, where many remained as rent burdens grew. Now, it’s Gen Z’s turn to ride out today’s crisis amid massive unemployment. But this time, rents are more likely to slow, easing the path to returning to living on their own even if some under-employment persists. Apartment construction has exceeded historic norms in recent years and some are likely to double up or live more affordably in all kinds of ways, which should soften rent growth, at least for now.”

Previous Zillow research has shown renters in some industries highly affected by coronavirus-related layoffs were struggling to keep their heads above water even before the pandemic began. It’s possible that many will appreciate the breathing room afforded by living with parents if allowed to stay rent-free, and stay even after their jobs return. That could allow some Gen Zers to save enough to move into homeownership more quickly, or perhaps even delay their parents from downsizing into a smaller home while a child is still living under their roof.

Young Americans move more often in general because they tend to have less stable employment and have not had time to accrue the same level of savings as older counterparts. Many also move home during the summer due to college schedules, typically bumping up the share of young adults living with parents by 2-3 percentage points from April to July.

It is likely that some college students made that move earlier this year as campuses closed due to COVID-19, contributing to the jump seen in April, but there were far more young people living with parents in April than even during a typical summer peak, indicating the usual seasonal shift was super-charged by soaring unemployment. Recently unemployed young people moved back home at roughly the same rate as usual – about 60% of them typically live with parents – but the pool is much bigger than ever.

Metros with a higher share of young renters have a greater potential for impact. This includes Austin, Kansas City, Cincinnati and Pittsburgh. On the other end are areas with more millennials and older renters, including Miami, New York and Los Angeles, each with less than 1% of the rental market made up of young people who have moved home.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Latest posts by Mike Wheatley (see all)

Source: realtybiznews.com

Apache is functioning normally

Apache is functioning normally

Unlike a typical spring homebuying season in which sellers are also looking to buy a home, people trying to relocate into a bigger or smaller home in the Mid-Atlantic region made up a relatively small share of the housing market. 

Move-up buyers made up just 11% of sellers in May, while those looking for a smaller home accounted for 12% of all sellers. In comparison, 32.4% of sales were rental or investment properties or second homes, according to a survey of 1,063 listing agents.

“With inventory so low and many homeowners reluctant to give up their extremely low mortgage rates, everyone is wondering where new listings are going to come from. We’re starting to see more sellers who are listing second homes and investment properties,” said Lisa Sturtevant, the chief economist of Bright MLS, which conducted the survey.

Sturtevant noted that as workers are being called back to the office, fewer people are able to take advantage of those vacation getaways that were acquired during the pandemic, at a time when remote work was ubiquitous. Simultaneously, the short-term rental market has also slowed down, prompting some sellers to offload homes they had purchased specifically for that market.

According to Bright MLS, 56.5% of buyers in the region paid above the seller’s original list price. On average, these buyers paid 5.6% above the asking price and ​​the most competitive segment of the market was among homes priced in the $500,000 to $699,999 range, where nearly two-thirds (62.9%) of all homes sold for more than the original asking price.

With limited inventory, it’s difficult to find a home: 45.8% of first-time homebuyers said they had a “very” or “somewhat” difficult time finding the right home. Lastly, buyers will outnumber sellers for the foreseeable future in the Mid-Atlantic region, according to Bright MLS. This month, 41% of survey respondents indicated that buyer activity would be “high to very high” in the next three months, down from 47.2% a month ago. 

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: JPAR.]

A full-service brokerage at a capped, transaction fee cost with over 3,500 agents across the U.S., JPAR Real Estate closed more than 22,000 transactions in 2020, with total sales volume topping $5.5 billion. Its franchise services launched in Fall 2018 and has since sold 50+ franchises, with 200+ realtors joining the team each month.

JPAR boasts an impressive leadership group around founder JP Piccinini that includes Mark Johnson (former executive for HomeServices SoCal & Tom Ferry International), Geoff Lewis (former RE/MAX President), and Justin Tracy (Former CEO of Kunversion).

What we like: Being one of the largest independents provides JPAR a front-row seat to adopting best-of-breed solutions, as is made evident by recent partnerships with Zavvie and Lone Wolf.

Learn more.

Source: geekestateblog.com

Apache is functioning normally

Your bedroom is a cozy retreat that shows off your personal style, and your above-bed decor is a great way to make a statement. Whether you want to add some pizzazz, create a relaxing vibe or showcase your unique taste, there are plenty of styles and ideas to try in this sacred spot. From eye-catching artwork to functional shelves, get ready to transform the space above your bed into something stylish and creative.

11 above-bed decor ideas

Elevate the visual appeal of your bedroom with these 11 ideas. From hanging tapestries to arranging a gallery wall of cherished photos, these ideas can add a personalized touch and transform the space above your bed.

1. Wall art gallery

Create a wall art gallery above your bed. You can curate with composition combinations, mixing different picture sizes, arranging in unique orientations and playing with frame styles. Consider using personal pictures to make the gallery wall more unique and meaningful to you.

2. Canopy

Transform your bedroom into a dreamy escape with a bed canopy. Easily install a bed canopy above the bed and watch a simple drape transform your bedroom while filling the wall space.

3. Tapestry

Not a fan of artwork? Opting for a colorful, patterned tapestry is a great way to bring color to your space. Tapestry easily complements a bedroom’s color scheme and infuses the room with a bohemian flair.

4. Statement mirror

While a mirror above your bed may seem counter-intuitive, hanging a large, decorative mirror above the bed can add depth to the space. Statement mirrors are readily available and make for a convenient furniture find.

5. Floating shelves

Installing floating shelves above the bed is a great way to combine storage with style. These shelves create a space for a personal display of items such as books, plants and small tchotchkes.

6. Woven wall baskets

Arranging a collection of woven wall baskets in different sizes and shapes will add a rustic and natural touch. Because of the neutral color of the baskets, they can complement any room color scheme or vibe.

7. String lights

Drape string lights to add a touch of romance to your bedroom. String lights are a great way to incorporate a little light as opposed to a lamp. Opt for a colored string light to work with a preexisting color scheme or create a certain aesthetic.

8. Statement canvas

Rather than creating a gallery wall, opt for showcasing a single statement canvas above the bed. This is great for themed bedrooms as it allows you to curate and emphasize the theme.

9. Quote decal or print

If there is a saying or quote that really speaks to you, why not place it in the room you spend the most time in? You can place quote decals directly on the wall or frame a quote decal for a sleeker look. For a brighter twist on this decor concept, look into customizable LED light signs for your quote.

10. Hanging plants

Create a green and natural atmosphere by hanging indoor plants in macrame planters or hanging baskets above the bed. In the same natural theme, consider also hanging driftwood or branches.

11. Bookshelf display

If you have a lot of wall space to cover, look into installing a bookshelf display. This space is utilized best with books and small keepsakes that showcase your personality and style.

Your space meets your style with the right above-bed decor

Decorating the space above your bed is a fun and creative way to add a personal touch to your bedroom. Whether you go for a gallery wall, a statement mirror or some string lights, the options are endless. Think about the look and feel you want to create in your room, and let your imagination run wild in choosing the perfect decor pieces.

With a little creativity and attention to detail, you can turn the area above your bed into a visually stunning and unique space that reflects your style and makes your bedroom feel extra cozy and special. Find your dream apartment with your ideal bedroom space here!

Apache is functioning normally

Life insurance is a bit of a touchy subject for many. After all, the point of the whole thing is to provide some sort of financial coverage to help you pay your final expenses and take care of your loved ones too.

The people who pursue one form of life insurance or another are those who want take care of household expenses, debts, and other burdens in the event they die. There a number of types of life insurance that can be purchased today. They include term life, whole life, and universal life.

Of course, with each type there are certain advantages and disadvantages. Life insurance is something that can be tailored to fit your particular needs and circumstances. One of the aspects that will be discussed here is the concept of permanent life insurance rates. If you want to know more then you need to learn something about universal life insurance.

In fact, universal life is known as a permanent life insurance option. The biggest advantage of this form of coverage is that it has a remarkable level of flexibility when it comes to how payments are paid, the costs of the premiums over time, and the short-term interest rates can be reset each year. Additionally, the rates are normally much lower than other types.

Permanent Structure

The rates for universal life insurance policies are guaranteed to never increase no matter how much the rates paid by insurance companies fluctuate. The structure of the typical universal life policy is arranged based on the idea of permanent coverage. Features of both universal and term-life are included to broaden the range of coverage. This means that not only do you get permanent rates but you also can benefit from investing premiums in order to get cash value. This cash value benefit can be useful for several different reasons. One of the least common ways is that it can be used to provide a loan if you ever need it in the future.  This last aspect is a great way to plan for your family’s well being in the event of your death.

The policy rates also function as a form of investment for the policyholder since a portion of the premium you pay goes towards the costs of the insurance while other pats go to a separate account that accrues interest in a tax-deferred structure. This money will be paid out to a beneficiary when you, the policyholder pass away.

Permanent Insurance Options

It should be noted that universal life insurance policy rates come with three payment options. They are fixed premium, flexible premium, and single premium. The first option requires the rate remain the same for a set period of time and you only pay the premium once. Other factors deal with the behavior of the cash value account and how they determine whether you pay additional premiums. The second, the flexible premium, let the policyholder choose when to pay a premium as well as how much. The last option, the single premium, lets you pay a lump sum that deducts the monthly payment costs from the cash value on the account. As you learn more about universal life insurance rates, you’ll find out how a permanent rate can be a good thing.

Deciding which plans works best for you

As we mentioned early, each type of policy has different advantages and disadvantages. There is no “one-size-fits-all” plan that works for every applicant. Take the time to weigh each plan and see which ones fits your needs the best. Our agents can help you decide based on your wishes and what matters most to you

Why you need life insurance

If you’re like the majority of Americans, you would leave behind a mountain of debt if you were to pass away. When you die, what’s going to happen to that debt? They will be passed on to your family.

Every year there are thousands and thousands of families that go through the pain of losing someone close to them, and then on top of that, they find themselves struggling to pay for mortgage payments, car loans, and credit card bills.

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How much life insurance do you need?

Based on what you choose to buy (think term or permanent life), you need to make sure that you get a large enough policy. Not having enough coverage can leave your family struggling to pay for final expenses. So, how do you know if you have enough life insurance or if you should purchase more? There are a few questions that you can ask yourself.

How much debt do I have today? As we mentioned earlier, one of the main goals of life insurance is to help your family pay off any unpaid expenses that would be given to them if you passed away. It will also help them pay for funeral expenses that can be as much as $10,000. Sit down and look at all of the debt and unpaid expenses that you have. Make sure that your life insurance policy is large enough to pay all of those off.

Does your spouse and children use your salary to pay for basic expenses? Would they be able to survive off other incomes sources without yours? If you have several people that rely on your income, then life insurance can give them the funds they need to find a way to replace that lose income.

Getting the lowest rates possible

Regardless of the type of policy, you’ll want to get the lowest rates possible for the best coverage. There are millions of people that are buying more than they need. The number one method to saving is using a broker or independent agent who can serve quotes from lots of companies.

If you have any health complications or pre-existing conditions, it’s important that you find an insurance company or agent that has experience working with high-risk applicants.

Some companies look more favorably at applicants with conditions like diabetes or cardiovascular complications, and if you have any health problems, it’s vital that you find one of these companies to get the best rates available.

Source: goodfinancialcents.com