The term “life insurance” has taken on a life of its own in recent years.
The idea of using life insurance to pay for things that you can’t afford is gaining traction, with many companies offering life insurance for a limited amount of time.
Some companies offer it to their employees as well, but the benefits are typically much less generous than the employer’s.
How can you make life-insurance policy work for your family?
Life insurance policies are generally considered the best insurance for your future and your current situation, but they are not a guaranteed way to make sure your money will be spent on the things you need in your future.
To ensure your money goes toward the things your family needs in the future, you need to figure out how you’re going to get by in your current circumstances.
Here are some tips to get you started.
Establish a budget Before you even start thinking about your policy, you should set aside money to make that money work for what you need, says Dan Mascaro, chief executive officer of life insurance company American Life Insurance.
“A budget is an important tool to help you prioritize your spending,” he says.
“The budget will help you see how much you’ll need for the next year and what you can afford.
You can start by making sure you have a budget for the years that you’re living in.”
Mascarelli says that in order to maximize the amount of money that you have, it’s important to have a plan in place to work toward the goal.
Set aside a set number of dollars for emergencies.
While it’s easy to set aside an amount of cash for emergencies, Mascari says that you should not be focusing on the amount you can spend every month.
“You can’t go through the year thinking, ‘How much can I spend in a year?'” he says, adding that the best way to ensure your spending is consistent is to have some type of budget in place for emergencies you might have.
You’ll also want to have money to spend on other items that you need more often.
“If you’ve got kids, for example, you might be thinking about taking a trip to the beach or a nice vacation, but if you don’t have kids and you need the money to buy stuff, then you’ll want to put that money towards those needs,” he explains.
Estimate how much money you’ll make over the next five years.
This is important because you want to be realistic with your budget, Mastaro says.
If you’re making $200,000 per year, you’ll be making about $30,000 a year by the time you’re 65.
“It’s not realistic to expect $1,000 to be enough for a lifetime of saving and investing,” he adds.
If, however, you’re earning $300,000, you could expect to earn about $100,000 over the first five years of your life.
Set a goal for how much more money you want in the near future.
Mascaresos says that goal should be something that you set in stone, such as a specific retirement age or a particular goal for your retirement.
If your goal is to retire at 65, for instance, you can figure out your target age by thinking about the money you’d like to put away over the following five years to ensure that you live comfortably for the rest of your lives.
If the goal is $300 a month, you may want to consider investing in a home or car.
If this is something that’s not something that interests you, consider setting aside money that will be used to buy something that would make up for your financial shortfall over the years.
“When you have money, you spend it,” Mascario says.
Make a list of your financial goals.
Once you’ve decided on the goal you want, you have to set a budget that will get you there.
Macelli suggests that you take a list and write it down every week, and you can also write it out on your calendar for the week.
“One of the things I’ve learned from my clients is that you shouldn’t just set a goal but a goal that you are willing to live by,” Macella says.
When you write your goal down every day, it will help keep your goals consistent, he adds, and it will also help you understand what your goals will look like in the years ahead.
Plan ahead for emergencies When you set a financial goal, it is important to think about how you’ll get there, Macello says.
To get there safely, you want your goal to have at least two parts: 1.
A realistic plan of when and where you plan to save money to cover emergencies.
2, A way to save enough money to pay off the remaining balance of your insurance policy.
Mastaresos suggests that people set their goal in terms of the next two years.
If they’re saving at a rate of 10