Benefits of Life Insurance: What You Should Know

Closeup of life insurance form

Benefits of Life Insurance

Most of us have not learned about the added benefits of having life insurance outside the obvious reason of being insured in the event of death. However, there are added benefits to insurance policies for the living. Having insurance leads to having added benefits we should be aware of: Tax Deductions, Insurance as an investment, Insurance as a savings plan, Cashback policy, and Estate planning. Whether you’re self-employed, a business, or an individual, the expense of insurance today has many added benefits tomorrow. Doing your due diligence is key to choosing what insurance expense is right for you given your goals.
  • Tax deductions

You may be able to claim a tax deduction if your total healthcare costs for the year are high enough. Also, self-employed individuals may be qualified to write off their health insurance premiums if they meet certain criteria.
  • Insurance as an investment

Investment policies that double as investments are known as ‘Insurance Investments’, where part of your premiums eventually becomes investments after a certain period of time. As the value of your premium grows, so does your investment. While your insurance premium remains untouchable and dedicated exclusively to the items listed in your policy coverage, you can dip your hands into your investment funds once in a while. This is a great option to have especially if you ever need emergency funds, including additional money for your children’s schooling, your retirement, or even if it’s just for your much-deserved vacation.
  • Insurance as a Savings Plan 

Insurance savings plans provide much-needed flexibility.  You can withdraw money from your policy to support major or minor events in your life without you having to surrender your policy.
  • Cash Back Policy

If you outlive the term of your life insurance policy, you can be returned your premiums. This creates a guaranteed payout as either your beneficiaries receive the death benefit payout based on your policy or you outlive your policy and your premiums are returned to you.
  • Estate Planning

Life insurance proceeds can be used to pay debts, taxes, and other estate costs so that estate asset, such as registered retirement savings plans (RRSPs) or registered retirement income funds (RRIFs) are not eroded to pay these expenses. Capital gains tax, tax associated with registered plans, estate taxes, and probate fees can all be covered by life insurance. Before signing on the dotted line for your business or personal insurance, ensure you are getting the best option available to you. Your insurance needs to be readily convertible into an asset that works for you when you need it without issues from the insurer. Visit TheFinRoute to connect with experts and agents who can help you choose the best policy for yourself and your business.  

7 Ways To Prepare for Retirement

Retirement Vacation Time

7 Ways To Prepare For Retirement 

We’ve simplified the process of planning for retirement. It is a frequent desire is to retire comfortably and early. Taking the first steps toward your goal in retirement doesn’t have to be difficult.

To get started, follow these seven basic steps: Getting a good start, making advance preparations Learning about your employer’s pension plan while not affecting your retirement money Two of the most essential things you can do to better your financial condition are repaying debt, increasing your net worth, and talking with financial professionals. TheFinRoute https://www.thefinroute.com/ makes connecting with experts who can guide you through all you need to know about retirement planning easier than ever before.

1. Make an Early Start

Decide how much money you want to put aside for retirement each month. This is distinct from your savings and should be completed prior to dealing with your costs (groceries, bills, etc.)

2. Plan Ahead

Retirement may be costly, especially if your income is limited. Knowing what you’ll need throughout your retirement years and planning ahead helps you to see what you’ll need to start saving for right now. Medical costs, travel costs, and housing costs must all be factored into your monthly expected and unexpected expenses in retirement.

3. Learn about your Employer’s pension plan

Be sure to verify whether you are qualified and registered in any pension plans offered by your employer. Make sure you know how the pension plan operates and what advantages you’ll receive. If you’re thinking about moving jobs, find out what happens to your pension benefits and what perks your new company offers. Finally, if you are married, make sure you are aware of the advantages provided by your spouse’s pension plan.

4. Don’t touch your retirement savings

If you take money out of a pension plan before retirement, you will not only lose the money you take out, but you will also lose out on the interest you should be earning as well as any tax advantages you may be entitled to. If you change jobs, roll your funds into your new retirement plan or, if you have the choice, leave them invested in the previous plan until you’re ready to retire.

5. Pay off your Debts

Paying off existing debts before retirement allows you to spend your money (even if it is reduced) on the things that are most important to you at the moment. In the long term, paying off a house or vehicle debt before retiring will benefit you.

       

6. Grow your net worth

Finding methods to invest your money (in a business, real estate, or the stock market) might help you increase your net worth and attain your retirement objectives sooner than you thought. Make sure you’re aware of the dangers associated with every investment you make and how much you’re prepared to sacrifice in exchange for a larger return.

7. Speak with Advisors

There will always be value in getting the guidance you require to attain your objectives. Make sure you can reach out to financial experts and learn more about what they have to offer. Work with the adviser who best matches your requirements to reach your retirement objectives.

For additional information on how to save for your retirement, check out https://money.usnews.com/money/retirement/401ks/articles/steps-to-take-when-preparing-for-retirement as well as https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement.pdf 

For more help on managing your finances and overall financial health, visit https://www.thefinroute.com/

 

What is National Insurance?

Insurance concepts

What Is National Insurance?

Most of us already know the basic definition of national insurance, it’s a means of protecting us financially in the event of a loss. Whether that be loss of life, vehicle, or our homes. What about national insurance though? What is national insurance and what is the purpose of national insurance?

Put simply, the definition of national insurance (NI) is a fundamental component of our state’s socio-economic safety net. It creates a form of social security for our citizens, as NI contributions establish certain state entitlements to workers and their families. National Insurance helps us create a safety net for ourselves and the most vulnerable in our society. This aids in sustaining at minimum, a decent quality of life for all our citizens, especially when they are in need the most. 

  • Who pays national insurance?

National Insurance is paid by employers, as well as employees and self-employed workers. Once you reach the state pension age, you don’t need to pay it at all, which effectively reduces your tax bill.

  • How do I make national insurance contributions?

If you’re employed, National Insurance is automatically deducted from your monthly pay.  If you’re self-employed, you’ll need to organize these contributions yourself, usually through your self-assessment tax return

  • What are some benefits of N.I.?

  1. Universal Healthcare
  2. Retirement Pension Program
  3. Unemployment / Disability Benefits
  4. Can I make additional contributions to N.I.?

Employees may make additional voluntary payments to increase the pension amount they’re eventually entitled to receive.

 You can easily get more information on N.I. contributions and benefits, seek a financial advisor, or easily visit https://www.thefinroute.com/to connect to financial advisors automatically. 

 

How to Save Money?

Saving Money putting coins into a jar.

How to Save Money?

Whatever the reason, learning how to save money is essential for your personal financial health. It is critical to your financial stability to have access to cash without the need to borrow.

Here are some tips for building a better savings habit: Review your monthly expenses, Budget your income, Set savings goals, Research financial tools, Automate your savings, and Monitor and review.

  • Review your monthly expenses.

Each month, you will have both fixed and variable expenses. Your fixed expenses are unlikely to change, but your variable expenses are critical to identifying opportunities to increase your savings.

  • Budget your income

After taking note of your expenses, budget for your weekly/monthly savings. Your recorded expenses should help you understand your monthly income and expenditure profile. Based on this you can locate where you can cut your expenses and put that unspent cash toward your savings plan. Note: (Not eating out as often and canceling subscriptions to unnecessary services can be significant money savers)

  • Set savings goals.

These will be different for everyone, but they will guide your savings process. Creating a financial plan can help you outline your savings goals. Short-term goals such as saving for a vacation, creating an emergency fund (covering 3-9 months of your expenses), or a down payment for a car are achievable in 1-3 years depending on how aggressive and disciplined you are with your savings. Longer-term goals such as saving for a home down payment, your child’s education, or saving for retirement may call for less aggression but more consistency over a longer period of time.

  • Research financial tools

Research different financial savings plans. Aside from your usual savings account at your bank or credit union, there may be savings accounts with higher interest rates or more flexibility that can benefit you outside of simply setting aside your savings each month. Higher interest rate accounts can offer you more return on your savings. Insurance savings policies not only allow you to save money but benefit from insurance coverage in the process. Getting advice on these financial tools can give you additional benefits on your savings plans.

  • Automate your savings

Automate your weekly/monthly savings. By having a predetermined amount of your income automatically sent to your savings account(s) you don’t have to think about the temptation of spending your money that has been reserved for a purpose. This can help make it easier to create the consistency you need over time and help you reach your savings goal within your planned time without delays.

  • Monitor and Review

Ensure you are sticking to your plan. No matter the goals you have, the method you take, or the savings tools (account type) you use, monitoring your progress and ensuring you are on target is important to your success in both the short and long term.

Building your savings doesn’t have to be a difficult process. You should ensure you do it in a way that is sustainable for your needs. This will make it easier for you to meet your savings goals across time. TheFinRoute can connect you to financial advisors to help you develop the financial skills you need. The easier they become, the easier it is to stay on course and keep focused on achieving your goals. 

For more tips on saving money, click here.

Dealing with Job Loss During the Pandemic

Job loss due to COVID-19 virus pandemic concept. Unrecognizable man holds sign "I lost my job"

Dealing With Job Loss During the Pandemic

Job loss is a painful experience for anyone who has had to experience it. Losing your job due to poor performance is bad, but as many people have experienced recently, losing your job due to no fault of your own is even worse. When it comes to getting back on your feet, a positive attitude will separate you from everyone else trying to get back on their feet. Here are some things to help you get through this difficult period and get back on your feet: You are not your job, Keep looking forward, Positive people are the only people you want around you, Take care of yourself, Utilize your network, Finding a job is your job and Trust yourself and the process.

1) You are not your job; it does not define you

Losing your job might be a very personal experience for some but you cannot allow yourself to take it personally. Individuals who view their job loss as a representation or sign of personal inadequacy or failure are less likely to make it through this difficult period quickly as they beat upon themselves. Instead, try to view it as an unfortunate experience that can provide a valuable opportunity to grow and learn from the situation, reassess and redefine your priorities. Your company, employer, and job title do not define who you are, you define who you are. Potential employers will prefer individuals who have proven their capability of being resilient, positive, and confident when having to deal with such setbacks in life.

2) Keep Looking Forward

Don’t let yourself get stuck in the past. Replaying the event you can no longer change only maintains a cycle of potentially destructive emotions such as pity, anger, and a sense of hopelessness. Look ahead and keep your focus on your future and the things you have control of, such as budgeting your money in a difficult period, preparing what is needed for the new opportunities for income, and strengthening the relationships with the people and organizations which can help you find your next job.

3) Positive people are the only people you want around you

The people you keep can directly influence how you see yourself, your current situation and what you do to improve it. Be intentional regarding the people you keep around you. Don’t allow negative people and their energy to fill the positive environment you are creating for yourself. Negativity and unconstructive behavior waste precious time and energy which you can use to get yourself back to where you want to be. Surround yourself with people who lift you up and have a desire to see you thrive.

4) Take Care of Yourself

Be intent on taking care of yourself and doing whatever it takes to take care of yourself. Get outside, go for a walk, get your blood pumping or just do something that keeps your spirits high. By keeping your spirits high and taking care of your physical and mental health, you help create the environment needed in pursuit of your next job.

5) Utilize your network

As the saying goes “Your network is your net worth” comes to life here. Reach out to people you know and try to get support in making introductions and connections for jobs that may be available yet not advertised. Never underestimate the power of your network to open doors and opportunities to get you that chance you’ve been looking for.

6) Finding a Job is Your Job

Structure your day and manage your time. Create a routine that incorporates your job search each day. Ensure you are intentional each day about what you want to get done, when and how you intend to do so. Create a plan for your job search with a strategy, goals, and steps to your process.  This will become your daily priority as you work to get yourself back to where you want to be.

7) Trust yourself and the process

Sometimes things take time. Be calm, focus on your budget to know how far your money can stretch, and concentrate on keeping all of the above-mentioned considerations a part of your daily life. Keep drawing from the experience and trust yourself to do what is in your best interest.
Difficult periods in time are meant for us to overcome, not be defeated or defined by them. You can and will overcome these difficult times with focus and perseverance. The lessons you will learn have the ability to shape you and make you better for your future. To learn more about dealing with Job Loss, visit: https://www.helpguide.org/articles/stress/job-loss-and-unemployment-stress.htm