Get Affordable Term Life Insurance

Is term life insurance something you should buy? This question gets asked a lot, and the answer is simple. If you have dependents that could be in financial trouble after your death, or you have a mortgage, then the answer is "yes"!. Term life insurance is a If you have dependents that could be in financial trouble after your death, or you have a mortgage, then the answer is "yes"! Term life insurance is a cheaper life insurance alternative that pays a sum of money upon death. You take out the policy for a specific period, and it will pay out should you pass away during this period. These periods can be either 5, 10, 15, 20 or 30 years, depending on your insurer. The monthly premiums are incredibly affordable, and it is easy to obtain such a policy. Two types of term life policies exist namely, decreasing term life insurance and level term life insurance. Let us explain these two policies.

Decreasing term life insurance

Decreasing term life insurance is usually really cheap, usually only a few dollars per month. If you pass away before it reaches its full term, this policy will pay the outstanding balance of your mortgage. The reason it is called decreasing term insurance is that the insured amount decreases as your exceptional mortgage decreases. The premium usually stays the same for as long as you have the policy, making it a very predictable and safe option, mainly if you work on a monthly budget. Remember that this policy only pays out a fixed amount to help settle your mortgage debt. It does not provide any money to your loved ones.

Level term life insurance

These policies are not as cheap as decreasing level insurance but are still affordable. It includes everything decreasing level insurance does, but you also have the option to leave a sum of money to your loved ones. The insured amount does not decrease with time, but stays the same - so does your premium.

This policy is highly recommended if you have an outstanding mortgage and loved ones who depend on the money you bring in every month. Keep in mind that level term life insurance does not have to be at the same time as your mortgage. You could have a policy covering your mortgage, as well as a 15-year level term insurance policy, for example. The premiums for the 15-year level term will be more expensive than that for longer terms, as the term is shorter. It will, however, provide you with the needed cover in the unfortunate event that you pass away during this term.



Options to Bankruptcy

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Debt is a major issue being faced by families and businesses. It is not a good path and most of the times when someone is unable to pay their debts, they file for bankruptcy. This should not be the case for everyone as there other solutions.

Debt is a big problem all over the world. In the UK, the average debt per adult currently standing at a massive £29,210. In the US, the average household with debt carries $15,762 in credit card debt and $130,922 in total debt. Rising debt, plus a drop in income and savings, means 2016 is a rather uncertain one when it comes to our finances.

Debt Management Plan

A debt management plan is an informal repayment agreement between you and your creditors. You will agree a monthly sum and pay it back. Typically, a debt management company will manage such a plan for you. Find out more about debt management plans on this government website.

Individual Voluntary Arrangement

An individual voluntary arrangement, or IVA, is a formal agreement between you and your creditors. This means it is approved by the court. With an IVA, you would agree to pay off your debts over a set period of time. An IVA needs to be set up by a lawyer or an accountant. Sourced from:http://www.lifehack.org/412326/alternatives-to-bankruptcy-debt-solutions-explained

Speak to a professional about your debt problems and they will be able to counsel you and even advice you on how to go about paying it. You might come up with a healthy debt management plan too.

Credit Counseling / Debt Counseling - There are some legitimate companies, including GreenPath, that offer free debt counseling to consumers who want to get out of debt. If you have significant credit card debt, you may be a candidate for is a debt management plan. With a debt management plan, you make regular payments to the credit counseling company, and they make payments on your behalf to the creditors. In addition to the convenience that this option provides, a debt management plan typically lowers credit card interest rates, waives late and over limit fees and stops collection activity. It can be a great tool for some people to help them save a lot of money and get out of debt faster.

Debt Settlement - If your debt is severely delinquent, you may find success in negotiating with creditors to pay less than what you owe. The obvious advantage to this would be the cash savings. The disadvantage would be the fact that your credit report will show that the debt was paid for less than the agreed amount, which would likely lower your credit score. Additionally, you’d want to consult a tax professional because you would likely pay taxes on the forgiven amount as revenue. If you are interested in this option, you could try your hand at communicating directly with the creditors. Debt settlement companies often charge high fees and offer no guarantees. Sourced from: http://www.greenpath.com/university/bankruptcy/alternatives-bankruptcy

It would be wise to sit down and go through your mortgage and see what needs restructuring. This is to ensure that you do not face foreclosure due to debt.

Restructure your mortgage. If you're paying off your home, another method is to restructure or refinance your mortgage. By arranging a new mortgage payment plan, you may be able to save some money to put toward paying down your debt. It's worth it if you can avoid bankruptcy or getting your home foreclosed.

There are two basic ways changing up your mortgage can aid you in averting a bankruptcy filing. First is to negotiate an agreement with your housing lender to reconfigure your mortgage under a new payment plan. See if you can devise a new or temporary payment schedule under the same terms of your original mortgage. A second approach is to refinance your mortgage altogether, which may include applying for a lower, adjustable interest rate stretched out over a longer period of time. The money you save on the front end can be useful in paying off your remaining debt and staving off the threat of bankruptcy. Sourced from:http://money.usnews.com/money/blogs/my-money/2012/05/16/5-ways-to-avoid-filing-for-bankruptcy