retirement

Apache is functioning normally

Life insurance coverage is an essential financial tool.

The proceeds from these policies can often make the difference between loved ones dealing with long-term financial hardship or being able to move forward with paying off debts or paying their everyday living expenses in the case of the unexpected.

When considering the best life insurance policy for you, it is important to determine the type and the amount of coverage that you require, as you don’t want those you care about to be underinsured.

An equally important part of the equation is the life insurance carrier from which you purchase your plan. Something to consider as well is whether your prospective insurance company provides key person insurance.

It is often overlooked or not considered when planning for the future, but it can be the difference between a business making it or not upon death or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. Take the time and see if it’s something you need to get for your business or firm.

You will want to be sure that the carrier is strong and stable from a financial standpoint. Another key criterion is that the carrier has a good reputation for paying out its claims. One company that meets these factors is Aflac.

The History of Aflac Life Insurance Company

Aflac (American Family Life Insurance Company) began offering insurance coverage to its customers more than 60 years ago. The coverage that this company is considered to be “voluntary” in that the policies can supplement other insurance coverage that an individual may already have.

The founders of Aflac are three brothers – John, Paul, and Bill Amos. In starting this company, the brothers saw a need for financial protection if a medical need occurs. Aflac had its beginning in Columbus, Georgia, and it started with just 16 employees and 60 sales agents.

In just the first year, Aflac had more than 6,400 policyholders and roughly $388,000 in total assets. Over time, the company grew and expanded its list of coverage offerings to its policyholders.

One way that the company grew exponentially was by offering its products to the workplace. Here, large numbers of employees of a company could sign up for protection at one time. As the company grew, it started to offer its products internationally, and in 1974, the products were offered in Japan. Within just one year of this occurrence, Aflac has written roughly $25 million in insurance premiums. During that same year, the company also started trading on the New York Stock Exchange.

The 1980s were a time of substantial growth for Aflac – and in 1982, the company had more than $1 billion in assets. In the decade of the 1990s, the company began its now-famous advertising campaign, which features the Aflac duck.

In the mid-1990s, the company also introduced a SmartApp. This allowed agents to issue insurance business electronically – which sped up the process a great deal and allowed customers to be covered much more quickly as well.

Due in large part to its innovative advertising strategy, 9 out of 10 people recognize the Aflac name and the brand. Ever since its beginning back in 1955, Aflac has put the customer first. It does so primarily by paying out its policyholder claims in a timely and efficient manner.

Today, Aflac – a Fortune 500 company – has more than 50 million policyholders. In addition to just offering protection products, Aflac is also involved in the communities in which it serves. For example, in 2011, the company contributed more than $1 million to the Red Cross for tsunami relief in Japan. And, in 2012, the company was rated as number 69 on Newsweek’s “Green Rankings” of the largest 500 companies. By the year 2013, Aflac had appeared on Fortune magazine’s list of the World’s Most Admired Companies for the 13th time.

The company continues to grow and prosper, due in large part to helping its customers protect against the loss of income and assets, as well as helping them to pay supplemental medical expenses. Aflac has a wide reach in terms of attracting potential customers. Its key distribution channels include individuals at the work site, in retail locations, and in their home. Presently, Aflac is the number one provider of voluntary insurance at the worksite in the U.S.

Aflac’s Insurer Ratings and Better Business Bureau Grade

Aflac has very high life insurance company ratings that are provided by the insurer rating agencies. These ratings are indicative of the company’s overall financial strength, as well as its timely benefit payout to the company’s policyholders. These ratings include the following:

  • A+ from A.M. Best
  • A+ from Standard and Poor’s
  • As3 from Moody’s

In addition, Aflac is also an accredited member of the Better Business Bureau (BBB). It has been a member of the BBB since January 1, 1958. Also, the company has been given a grade of A+ from the Better Business Bureau (on an overall grade scale of A+ to F).  This puts them on par with other top life insurance companies like Transamerica or Banner.

Throughout the past three years, Aflac has closed a total of 497 complaints through the BBB. Of these 497 complaints, 357 had to do with problems with the company’s products or services. Another 96 of these complaints were concerning billing or collections issues, 25 had to do with advertising or sales issues, 11 were about delivery issues, and eight were in regard to guarantee/warranty issues. There are also 20 customer reviews that have been posted on the Better Business Bureau’s website in regard to Aflac.

Life Insurance Products Offered by Aflac

Aflac offers several options for life insurance coverage. These include both term and permanent protection. With term life insurance, a policyholder is covered with death benefit protection only, without any type of cash value or savings build-up. Term life insurance is purchased for a certain period, or “term,” such as ten years, 15 years, 20 years, or even for 30 years, depending on the policy holder’s needs.

Permanent life insurance coverage offers both death benefit protection, as well as cash value, build up. With a permanent life insurance policy, the coverage can last throughout the policy holder’s life, provided that he premiums remain paid.

This type of life insurance protection will also allow tax-deferred growth of the funds that are inside of the cash value component. This means that there are no taxed due on the growth of these funds unless or until they are withdrawn.

A permanent life insurance policyholder may be able to borrow or to withdraw these funds for any reason at all – including the payoff of debt, the supplementing of retirement income, or the assurance that a child or a grandchild will be able to pay for their college expenses.

There are no medical questions to be answered on the Aflac life insurance policies. This means that even those individuals who may have certain health conditions can still qualify for life insurance coverage.

The plans offered by Aflac are also portable. This means that if an individual purchases a plan as a part of his or her employee benefits package if they leave the company, they may still take their life insurance coverage with them.

Aflac also offers juvenile life insurance coverage. With these plans, a child may be protected by providing insurability as an adult, as well as by providing them with a jump-start on the road to financial independence.

The company also offers AD&D coverage (accidental death). With the Aflac accidental death coverage, if the insured passes away due to injuries that are sustained from a covered accident, then an additional amount of proceeds will be paid out to his or her named beneficiary.

On the insurance plans that are offered through employers by Aflac, there is typically no direct cost to the company. Rather, employees can pay for their coverage via direct payment of the premiums through their weekly paychecks.

Aflac offers a life insurance calculator directly on their website. This can help an individual with determining just how much life insurance coverage they may require based on their specific situation.

Other Products Offered

In addition to just life insurance coverage, Aflac offers a wide range of other protection and supplemental products. These include the following:

  • Accident insurance – The accident insurance plan via Aflac offers cash benefits to help provide financial support during the various stages of accident care, as well as recovery. These proceeds may be used by the policyholder to help with paying for emergency treatment, or for treatment-related lodging and transportation.
  • Cancer insurance – The cancer insurance coverage that is offered via Aflac can help to provide a lump sum of proceeds that may be used for a wide variety of needs, such as treatment, living expenses, or uninsured medical procedures.
  • Critical illness insurance – Critical illness insurance protection can help to provide funds for helping with the cost of treatment of a covered illness. Having funds available can provide the peace of mind that may be required for helping an individual to recover.
  • Hospital intensive care insurance – Charges from a hospital stay can often be substantial – and in some cases, these may or may not be covered through a regular health insurance policy. With that in mind, a supplemental hospital insurance plan through Aflac can help. With Aflac, these funds can be made available very quickly, as the company has a one-day payment of claims.
  • Hospital indemnity insurance – With hospital indemnity insurance, policyholders can also be assured that uncovered expenses from their regular health insurance can be fully or partially taken care of.
  • Dental insurance – The dental insurance coverage that is offered through Aflac provides a wide variety of benefits, with no networks, deductibles, or pre-certification requirements to deal with. Just go through your local dentist and have your insurance information with you.
  • Vision insurance – Regular eye exams can do much more than just help with correcting one’s vision. These can also help to point out other health-related issues, such as high blood pressure or cholesterol, diabetes, or even a brain tumor. Having this coverage can be well worth the premium cost.

Also, Aflac also helps its client/employers with setting up benefits, such as through cafeteria plans. COBRA administration is also available through Aflac.

How to Get the Best Quotes on Life Insurance Coverage

When searching for life insurance coverage, it is important to work with an independent company that can help you in finding the very best rates. An independent company or agency will not be associated with just one single insurance carrier, but rather with multiple carriers. Because of this, you will be much better able to compare life insurance policies, benefits, and premium rates – and from there you can determine which of these will be the best for you and your specific needs.

If you are ready to begin the process of finding the best life insurance plan, then we can help you. We work with many of the top-rated life insurance carriers in the marketplace today, and we will assist you with obtaining all of the details that you require for making an informed purchase decision. We can do so for you very quickly, easily, and conveniently – all from your home computer, and without the need to meet in person with a life insurance agent. When you are ready to being, just fill out the quote form on the aide of this page.

We understand that the purchase of life insurance can be somewhat overwhelming. There are a number of variables that you need to be aware of, and you want to be sure that you are choosing the proper type and amount of insurance coverage.

The good news is that today, there are many options that are open to you. We will assist you with finding the one that best fits your specific coverage needs. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

Apache is functioning normally

Today, I have an inspiring story from a blogger. Cassie paid off $10,000 in debt in 10 weeks and shows how you can make this a reality too. Enjoy!

In September of 2015, my wife and I officially tied the knot and, as perfect as it all was, when we returned to our home after our honeymoon we had to take a serious look at our finances. What we found shocked us.

We had known from the get-go that we both had student debt. We both attended a private, Christian college where we met and we both continued on to receive our master’s degrees. While we knew we had student debt, we had always assumed that we would simply pay the minimum until it was gone and that would be that.

What did we find when we did the math? It turns out that my wife and I owe a grand total of almost $200,000 in debt (OUCH!). Even worse? The minimum payments don’t even begin to cover the interest which means that no matter how many payments we make, we will never escape from this debt’s grasp.

Unless…

One of my favorite Dr. Seuss quotes comes from the Lorax, “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”

Related posts:

Now, I know that this quote is referring to saving the world, but I think it’s applicable to paying off debt too. Debt can be all-consuming and debilitating, but unless you care about fixing it, it’s not going to get any better.

The thing with debt is that unless you truly work toward eliminating the problem, the problem is not going to go away. It’s certainly not an easy-fix sort of thing. Unless you truly care about getting the weight of debt off your shoulders, you’ll be trapped.

My wife and I do care about paying off our debt because we realize how much it is holding us back – we are unable to afford a house, put money into retirement, or start a family.

That’s why we made the decision to begin aggressively paying off our debt. Do you know what happened when we made that decision? We began crushing the debt that had been, only recently, crushing us.

In our first ten weeks of debt repayment, we paid off a whopping total of almost $10,000! How did we do it? Well, it’s simple: create a budget and a plan, develop a side income, and learn how to live frugally.

Related tip: Check your credit score with Credit Sesame for free!

Creating a Budget & a Plan

Developing a budget was the first step. My wife and I spent an entire month simply monitoring our spending without changing our habits. Why did we do this? Well, we wanted to see where our money was going.

What we realized is that our money was going everywhere. We were spending outrageous amounts of money for things that we didn’t even realize we were getting! Sure, some of it was important (food, certain bills, etc.), but there was so much that was unnecessary. The couple of dollars here and there for snacks and beverages (when we have these at home), the fast food or restaurants in place of dinner at home, or the subscriptions that we had forgotten we had that were still charging us monthly.

Once we realized that our money was everywhere, we knew we needed to put it into place. We created an excel document to organize our income, budgets, and debts (I love organizing things). We determined what we needed to keep to survive, what the minimum payments for our debt were, and other costs we absolutely have to have.

We wrote it all down and made important decisions as to how much we would spend on food, how much we were willing to pay for gas, etc. This was our budget. If we followed our budget, we knew we could put a significant amount of extra cash toward our debt (which is exactly what we want to do).

The hardest part about developing a budget, though, is not actually the planning, but the sticking to it. The problem we have is that when we try to follow our budget with our debit cards, we somehow always end up off. This time, we knew that we had to do our budgeting right. We pulled out some business envelopes, withdrew some cash, and began using the cash envelope system for our budget.

Almost like magic we were able to stick to our budget – better than ever before. The reality is that plastic money is easy to overspend, but when you have cold, hard cash in your hands, it’s hard to not notice it leaving. When it’s gone, it’s gone.

Developing a Side Income

The second step we took toward aggressively paying off our student debt was to develop a source of income on the side. For me, that meant blogging. I worked as hard as I could to develop a blog that focused on my goals, that inspired people, and that helped people to reach their dreams of becoming financially free.

My wife and I both work with a caterer as we are able in order to earn a little extra money. Each event lasts around six-seven hours and pays us each $100, but we can only score around one to three events per month. Jobs such as dog walking, house / babysitting, and even renting out space are great ways to make a few extra bucks within your community.

We also have started freelancing and taking up positions in the virtual assistant world. My wife has started working longer hours and taking “on-call” shifts. We sell items from our home that we no longer need and we utilize companies that offer legitimate ways to make money online. I test them out and share them on my blog for my readers to see and utilize.

Basically, we are doing whatever it takes to earn an extra income and then ensuring that the entirety of that income goes straight toward our debt repayment goals.

Related tip: You can answer surveys and make extra money! The companies I recommend include: American Consumer Opinion, Swagbucks, Survey Junkie, Pinecone Research, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money. 

Learning How to Live Frugally

Earning an extra income can only get you so far if your spending is too high. Therefore, we also spent a lot of time learning how to live frugally and sharing it on the blog. We are learning new ways each and every day to reduce our spending and live our lives to the fullest on a frugal budget.

Some of our favorites in the kitchen include baking our own bread (which saves us over $250), making our own pasta (which saves us over $100), growing our own vegetables (which saves us hundreds), and learning how to can (which saves us tons)! While each of these individually may not seem like a lot, when added together the savings can be incredible.

The frugal living tips don’t have to end in the kitchen, though. My wife and I are learning great ways to save thousands per month by cutting the cord on cable and other subscriptions, reducing our cell phone bill, and even finding new ways to entertain ourselves that don’t cost money.

As Dave Ramsey so eloquently puts it: “Live like no one else, so later on you can live like no one else.”

Living a frugal lifestyle means making cleaning supplies and hygiene products instead of buying them, making food from scratch instead of eating out, and playing board games instead of going to the clubs. It’s a lot of cutting now, but by living like we are broke, we are putting money toward debt so that later we can live the way we want to live.

How We Paid Off Almost $10,000 in Debt in 10 Weeks

Ever since we started paying off our debt aggressively, we have been competing against ourselves. When we paid off $3,000 in one month, we knew that we could do better the next month and so we did.

It took ten weeks before we had paid off almost $10,000, but the next ten weeks will be even better, we can assure you of that. How? Because we are working as hard as we can to budget, to be frugal, and to earn extra money – no matter what it takes.

The ultimate goal here is to pay off our debt as quickly as possible and that’s exactly what we are doing. We are not putting a date on our debt repayment because we don’t want to limit ourselves to that date. We want to work to surpass any dates that could have been put down and by sticking to our budget, earning side incomes, and living frugally, we can do it.

Author bio: Cassie Jahn is the author of a DIY blog devoted to living life to the fullest on a frugal budget. DIY Jahn began to help Cassie to stick to her plan to aggressively pay off her student loans, in hopes to inspire others to do the same.

How much debt do you have? Are you trying to eliminate it?

If you are new to Making Sense of Cents, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:

  • Find ways to make extra money – Here are over 75 different ways to make extra money.
  • Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna (this is the one we have) and enjoy free TV for life.
  • Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $100,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.75 per month plus you get a free domain if you sign-up through my tutorial. Also, I have a free How To Start A Blog email course that I recommend signing up for.
  • You should know your credit score – Check your credit score with Credit Sesame for free!
  • Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, American Consumer Opinion, Pinecone Research, Opinion Outpost, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
  • You can save money and get cash back at the grocery store. Read my review and learn how to here.
  • Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back too!
  • Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
  • I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
  • Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!

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Source: makingsenseofcents.com

Apache is functioning normally

National mortgage rates were mostly lower compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans moved lower, while rates for adjustable rate mortgages rose.

The Federal Reserve has raised rates 10 times in a row, most recently at its May 3 meeting. Rates now are at a 15-year high, but the consensus is that inflation is finally cooling and the central bank might halt raising rates.

”Mortgage rates have settled into a new normal of around 6.5 percent on a 30-year fixed-rate loan,” says Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region. ”With growing recession risks, we could see mortgage rates dip lower, but we will not be returning to the 3 percent level seen during the height of the pandemic.”

Rates as of June 5, 2023.

These rates are marketplace averages based on the assumptions here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, June 5th, 2023 at 7:30 a.m.

>>See historical mortgage interest rate movements

You can save thousands of dollars over the life of your mortgage by getting at least three rate quotes. Comparing mortgage offers from multiple lenders is always a smart move, but shopping around grew especially critical during the interest rate run-up of 2022, according to research by mortgage giant Freddie Mac. It found the payoff for bargain-huntng borrowers doubled last year.

“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

Mortgage rates for home purchase

30-year mortgage falls, -0.20%

The average rate you’ll pay for a 30-year fixed mortgage is 6.99 percent, down 20 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.87 percent.

At the current average rate, you’ll pay $664.63 per month in principal and interest for every $100k you borrow. That’s lower by $13.48 than it would have been last week.

The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:

  • Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
  • Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
  • Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

15-year mortgage moves lower,-0.24%

The average rate you’ll pay for a 15-year fixed mortgage is 6.37 percent, down 24 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $864 per $100k borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.

5/1 ARM rate moves upward, +0.02%

The average rate on a 5/1 adjustable rate mortgage is 6.02 percent, climbing 2 basis points over the last week.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 6.02 percent would cost about $601 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage declines, -0.22%

The average rate you’ll pay for a jumbo mortgage is 6.98 percent, a decrease of 22 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was lesser, at 6.94 percent.

At today’s average jumbo rate, you’ll pay $663.96 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $14.83 lower.

Rate review: How interest rates have shifted over the past week

  • 30-year fixed mortgage rate: 6.99%, down from 7.19% last week, -0.20
  • 15-year fixed mortgage rate: 6.37%, down from 6.61% last week, -0.24
  • 5/1 ARM mortgage rate: 6.02%, up from 6.00% last week, +0.02
  • Jumbo mortgage rate: 6.98%, down from 7.20% last week, -0.22

Refinance rates

Current 30 year mortgage refinance rate trends down, –0.15%

The average 30-year fixed-refinance rate is 7.10 percent, down 15 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.01 percent.

At the current average rate, you’ll pay $672.03 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $10.15 lower.

Where are mortgage rates headed?

The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.

“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”

Comparing mortgage options

The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
  • Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

What are current mortgage rates?

Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. In general, however, rates are consistently below 4 percent and even dipping below 3%. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.

What comes next:

Featured lenders for today, June 5, 2023

Source: bankrate.com

Apache is functioning normally

Life insurance is an important component of most all financial plans. That’s because when you have life insurance, you can be much better assured that your loved ones and survivors will be able to go financially in case of the unexpected.

The proceeds from a life insurance policy can be used for many different things, including the payoff of final expenses or other large debts, as well as ongoing living expenses so that loved ones won’t have to drastically change their lives.

When purchasing a life insurance policy, it is important to review several factors before moving forward. Certainly, narrowing down the right type and the amount of life insurance that you are applying for is essential. This is because you don’t want loved ones to be underinsured.

However, it is also essential to review the insurance company through which you are purchasing the coverage. That is because the insurance carrier should ideally be strong and stable financially, and it should also have a good reputation for paying out its policyholder claims. One insurance carrier that has an excellent track record in the industry is AAA.

Table of Contents

The History of AAA Life Insurance Company

AAA Insurance Company has been in the business of helping its customers since 1902. The company began as The Automobile Club of St. Louis. The company grew very quickly over the next several years. And, after opening regional offices throughout the state of Missouri, the firm changed its name to the Automobile Club of Missouri (ACMO).

Still, in its early stage, the company hired a young Harry S. Truman, who sold many memberships prior to setting out to pursue his military and political career. AAA introduced many new ideas into the auto insurance world, including roadside service.

Over the next several decades, the company continued to grow and expand, absorbing many smaller auto clubs throughout the state and throughout the country. In 1969, AAA Life Insurance Company became a part of AAA. This company offers both life and annuity products. Today, AAA Insurance is a large and thriving insurer that offers a wide variety of both insurance coverage and other financial products to its customers.

AAA Life Insurance Company Review

AAA Life Insurance Company is headquartered in Livonia, Michigan. Currently, the company has approximately 1.2 million policies in force. Not only does AAA Life Insurance Company help its customers to save and protect their financial assets, but the company is also very involved in community efforts. For example, over the past decade, AAA has supported various entities by raising money and / or serving in other manners. Just some of these organizations include:

  • American Heart Association
  • Alzheimer’s Association
  • American Red Cross
  • American Diabetes Association
  • American Cancer Society

The company also has an excellent reputation for providing outstanding customer service to its policyholders. The company provides information, including life insurance quotes, via the Internet, telephone, and / or through in-person visits with an agent.

Company Ratings and BBB Grade

AAA Life Insurance is considered to be financially strong and stable, and because of that, it is highly rated in the industry. The company has a rating of A- (Excellent) by A.M. Best, which is the fourth highest rating out of a possible 16.

The company is not an accredited member of the Better Business Bureau (BBB), nor has it been provided with a letter grade between A+ and F. However, over the past three years, AAA Life Insurance Company has closed a total of 18 complaints through the BBB.

Of these 18 total complaints, eight had to do with problems with the company’s product and / or service, another five were regarding advertising / sales issues, and yet another five were in regard to billing and / or collection issues.

Life Insurance Products Offered By AAA

AAA Life Insurance Company offers several options for life insurance coverage. These include both term and permanent policies. The proceeds from these policies can be used by loved ones and survivors for any need that they see fit.

Term Life Insurance Coverage

With term life insurance coverage, the policy offers pure death benefit protection only, with no cash value or savings build-up in the policy. These policies are purchased for a set period, or “term.” There are several term life insurance options that are offered via AAA. These include:

Term with Return of Premium

The term with return of premium policy is offered for periods of 15, 20, 25, or 30 years. Insured individuals can be covered for between $100,000 and over $1 million. With these plans, the insured is covered throughout the life of the policy. And, if he or she survives that time period, then the premiums paid into the policy will be returned. (There is an additional amount of premium that is charged for the return of premium option).

Traditional Term Life Insurance

With the traditional term life insurance product, coverage of up to $5 million (or more) is available, with a minimum death benefit of $100,000. Coverage terms can be chosen from 10 years, 15 years, 20 years, 25 years, or 30 years. The premium payments are guaranteed to remain level throughout the life of the policy. Also, an insured may have the option to convert this term insurance over into a permanent form of life insurance coverage.

Express Term Life Insurance

Express term life insurance from AAA Life Insurance Company may be purchased via the Internet. These policies offer coverage of between $25,000 and $250,000 and the term lengths that can be chosen from are 10, 15, 20, 25, or 30 years. Those who are between the ages of 18 and 75 are eligible to apply.

Permanent Life Insurance Coverage

AAA Life Insurance Company also offers permanent life insurance coverage. With permanent insurance, the insured has both death benefit protection as well as a cash value component within the policy that can allow savings to build up. These savings can grow tax-deferred.

There are both whole life and universal life insurance policy options that are available through AAA. Whole life insurance offers long-term insurance coverage with fixed premiums for life. The whole life insurance plans that are offered via AAA include:

Simple Whole Life Insurance

The simple whole life insurance policy is easy to obtain. Coverage may be purchased between $5,000 and $25,000. There is no medical exam required to qualify for this plan. Rather, there are only just a few health questions to answer. An insured may also be able to obtain funds early if he or she is diagnosed with a terminal illness.

Guaranteed Issue Graded Benefit Whole Life Insurance

For those who are between age 45 and 85, the guaranteed issue plan may be a good fit. This policy offers coverage without any medical exam or health questions. It also offers guaranteed premiums.

Universal Life Insurance Coverage

Universal life insurance is also a permanent form of coverage, except that it offer more flexibility that whole life concerning premium payment, as well as where the premium dollars go. AAA offers two universal life insurance policies. These include the Accumulator Universal Life and the LifeTime Universal Life policy.

Other Insurance and Financial Products

In addition to life insurance coverage, AAA Life Insurance Company also offers other products as well. These include annuities (both immediate and deferred), and accident insurance coverage.

Annuities can help individuals to both save for retirement in a tax-advantaged way, as well as to provide an income in retirement – and this income can last for the remainder of the annuity holder’s life, regardless of how long that may be.

With an immediate annuity, an individual deposits a lump sum. This can either be cash from a savings or investment account, or it can be through a “rollover” from an IRA account or a retirement plan such as a 401(k) account. The income stream from the immediate annuity will then begin right away, or within a very short time period.

A deferred annuity provides the ability to build up savings over time. Here, the funds that are within the annuity are allowed to grow on a tax-deferred basis – which can allow the money inside of the annuity to grow and compound exponentially over time. Then, at a point in the future, the income stream will begin. In many ways, an annuity is like a personal pension plan.

Accident insurance is also available through AAA Life Insurance Company. Because accidents can – and often do – occur unexpectedly, this coverage can help to provide financial support to an individual who is involved in an accident, or that person’s loved ones.

There are some key benefits that are offered through the AAA Life Insurance Company’s accident insurance coverage. These include the following:

  • Hospitalization – Accidents can be an expensive situation – and sometimes, the hospitalization that is received may or may not be covered via a regular health insurance policy. With the AAA plan, an insured individual can be covered for up to $375 per day for a covered non-travel related accident, and for up to $1,500 per day on travel-related accidents. These benefits can be paid for up to 365 days per occurrence.
  • Recuperation – Sometimes, even when a person is released from the hospital, they may or may not be ready to go back to work. The bills, however, for everyday living expenses will continue to come in. The recuperation benefit on the AAA accident plan can offer another $1,500 per day in benefits that will help with recuperating from a travel-related accident, or up to $375 per day on a covered non-travel related accident. These benefits can be paid for up to 365 days.
  • Emergency Room and Urgent Care – The cost of emergency room care can also be quite high – and there may be some benefits that are not covered via a regular health insurance policy. With the AAA accident policy, an annual benefit of $1,500 can be paid for ER and urgent care that is received for a travel-related accident, and up to $375 per year can be paid for a non-travel related event.
  • Accidental Loss of Life – Unfortunately, some accidents will result in the loss of life. If this occurs, a benefit of $500,000 can be paid for the loss of an insured’s life when he or she had been traveling on a regularly scheduled airline flight. A benefit of $250,000 can be paid for accidents that result in the loss of life when the insured is either riding in or driving a private car, truck, motorcycle, self-propelled motor home, or bicycle. This benefit can also be paid if the insured had been traveling as a fare-paying customer on public transportation such as a train, bus, airplane, or taxi. In addition, $250,000 can be paid out in benefits if the insured was struck by a motor vehicle as a pedestrian, and a benefit of $62,500 can be paid for death that is due to a non-travel related covered accident.

AAA members who are at least age 18 or older are eligible to apply for the Member Loyalty Accident Insurance plan. There is no medical exam required to qualify for this coverage.

How to Get the Best Life Insurance Premium Quotes

When seeking life insurance quotes,  it is best to work with an independent company that has access to multiple insurance carriers. That way, you will be more easily able to compare what is available to you.

If you are ready to move forward with getting life insurance quotes, we can help. We work with many top life insurance carriers, so can assist you with your needs. Term Life Insurance smoker applicants can find help and information here as well.   Just simply take a few moments to fill out the form on this page to begin.

Source: goodfinancialcents.com

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Save more, spend smarter, and make your money go further

Entering the real world is exciting. For young professionals this often means getting your first career-track job, moving into your own place and taking full control of your finances.

While everyone wants to get started on the right foot, there are some common mistakes young professionals make that can have long-lasting impact.

Figuring It Out Later

This is a time in your life when you may find yourself making many big decisions in a small amount of time.

Don’t say yes and figure it out later. Before you sign a lease or mortgage, determine whether you can afford it.

The easiest way to do this is to create a budget.

You may think you need to wait a while until your expenses “normalize” since when you first move into a place, there can be one-time costs like furniture and security deposits.

But if you wait a few months, you may find yourself already in some serious debt.

[Read: Can You Get Your Student Loans Forgiven?]

Do some research and make a budget immediately.

Then adjust your budget when you see how much money you are bringing home and how much you are really spending.

It’s best to start out tracking your spending right away, instead of playing catch-up later.

Assuming You Will Make More

You may be disappointed by your first salary. You may work in an industry where big bonuses are normal.

Regardless, plan your finances around the salary you are guaranteed right now. This gives you the freedom to make choices in the future.

If you are living beyond your means now, that raise or bonus will only go to paying off debts.

[Read: Can Your Job Hurt Your Credit?]

If you budget for your current salary, you can use that raise or bonus to boost your emergency fund, increase your retirement savings, or treat yourself.

Don’t spend your future self into a corner.

Not Asking Questions

Young professionals are covering a lot of new territory — making decisions we haven’t made before.

Don’t be afraid to do some research or ask for help. Read the fine print before you sign documents and if you don’t understand something, stop.

[Read: Your First Credit Card: What You Need to Know]

Before you accept a job, sign a lease or accept a credit card, ask a few questions.

Being financially independent doesn’t mean you have to be totally alone in the decision-making process.

There are others who have done these things before, so seek out a mentor to help guide you through the process.

There’s nothing more grown up than knowing when you need help.

“Top 3 Financial Mistakes Young People Make” was provided by Credit.com.

Save more, spend smarter, and make your money go further

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