Which Type of Life Insurance is Right For You?

Victor Shepherd Business Services , , , ,

People purchase life insurance to help pay for final expenses, outstanding debt and to leave a financial legacy. It can also help with estate planning.

Life Insurance Anderson policies are usually paid out to a beneficiary upon the insured’s death. However, some specific exclusions exist such as suicide and homicide.

The death of a loved one is a tragedy, but it’s also an emotional and financial blow that can have far-reaching effects. Fortunately, life insurance can help cushion the blow by providing a lump sum payout that your beneficiaries can use to settle debts and other expenses. But which type of policy is right for you? Term and whole life policies are two of the most common options.

Term life insurance offers coverage for a set amount of time, such as 10, 20, or 30 years. If you die during that period, your beneficiaries will receive a cash benefit—which is typically tax-free. You can also choose to purchase a renewable term policy that gives you the option of renewing your coverage at the end of its initial term. However, the premiums will be higher if you do so because of your age and any health changes that may have occurred during that time.

Most term life policies require you to undergo a medical exam and answer health questions as part of the underwriting process. However, you can avoid the medical exam and questionnaire altogether by choosing a simplified or guaranteed issue policy. These policies have higher premiums, but you won’t be required to undergo a health screening.

Another way to compare life insurance policies is to look at the company’s financial strength ratings. This indicates how likely the insurer is to be around if you need to claim your payout in the future. You can find a list of life insurance companies with the best financial strength ratings on NerdWallet.

The benefits of a good life insurance policy are plentiful, but it’s important to choose the right one for your needs. You can begin by using our free life insurance calculator to estimate how much coverage you’ll need to cover your family’s expenses in the event of your death.

Then, find a licensed agent or broker who can help you understand your options and choose the right policy for your situation. It’s a good idea to work with an agent who has earned the Chartered Life Underwriter (CLU) designation, which means they have demonstrated expertise in life insurance. You can also check your state’s department of insurance website for licensing information.

Whole Life Insurance

Whole life insurance is a permanent policy that guarantees lifetime coverage, a death benefit and cash value growth. Whole life is a good option for individuals who want to ensure their families have an income after they die, especially if there is one primary breadwinner in a family. It also gives people the opportunity to build a savings component that can be used to supplement retirement funds and other financial goals. Whole life policies are more expensive than term life.

Whole Life insurance builds a tax-deferred cash value in addition to the premium you pay. This money can be accessed through a loan or withdrawal. However, it is important to note that any loans or withdrawals taken from a whole life policy can decrease the amount of money your beneficiaries receive upon your death.

Some whole life policies may even pay out dividends to the policyholder. These are essentially investment returns on the money that has been paid into the policy over time. The way that the money is used by the policyholder is completely up to them. In order to determine if a whole life policy is right for you, it is important to assess your current and future financial needs.

During an initial consultation, your Thrivent financial professional will take the time to understand your full financial picture. They will help you identify gaps in your portfolio and make recommendations to address them. They will also work with you over time through periodic reviews and ongoing guidance to make sure that your strategies are on track to meet your goals.

Whether you’re looking to cover your final expenses or leave a lasting legacy, whole life insurance offers a number of benefits. It provides permanent protection with a guaranteed death benefit, set premiums that won’t increase, and a potential for accumulated cash value and dividends. To learn more about whole life insurance and how it can fit into your financial strategy, connect with a Thrivent financial professional today.

Universal Life Insurance

Like whole life insurance, universal life policies provide long-term protection in exchange for a premium. However, UL policies are more flexible, allowing you to adjust your premium payments and death benefit amounts within certain limits. They also offer a cash value component similar to a savings account that accrues interest. In addition, the death benefit can be used to pay for things like long-term care or chronic illness coverage. Generally, the death benefit and accumulated cash value are payable to you upon surrender. However, some policies deduct a front-end or back-end charge if you choose to cancel the policy.

Unlike term life, a UL policy can last for as little as fifteen years or as long as you live as long as you continue to pay premiums and maintain a positive cash value balance. As such, UL policies are ideal for people with changing financial needs who want a permanent solution that can grow with them over time.

Most UL policies allow you to increase your premium payments and decrease them if your income fluctuates, giving you the flexibility to adapt your policy over time. In addition, a UL policy’s cash value grows over time and is available to borrow against or cash in at any time, while the investment portion earns tax-deferred interest.

There are several different kinds of UL policies, each offering unique benefits. Guaranteed UL policies are the least risky, offering a fixed rate of interest to help your cash value accumulate more slowly. Indexed universal life policies have a cash value portion that’s invested in various sub-accounts tied to market indexes, generating higher potential gains than a traditional UL policy but with more risk.

Variable UL policies have a cash value portion that’s tied to your choice of investment sub-accounts, giving you the opportunity to earn more or less money than with other UL plans. These kinds of policies are typically more expensive than guaranteed UL or indexed UL, though, because they require you to make your own investment choices and take on more risk. If you’re interested in a variable UL policy, we’ll be happy to explain your options and help you decide which one is best for you.

Variable Life Insurance

Variable life and variable universal life, or VUL, policies offer the potential for growth in addition to a death benefit. But it is important to understand the policy fees and risks involved.

Unlike whole life insurance, the cash value in a variable life or VUL policy is invested in subaccounts that allow the opportunity for growth based on market performance. The investment portion of the policy receives favorable tax treatment. However, if the investments perform poorly, the cash value total can drop and your policy may terminate.

Like other permanent life insurance, VUL policies include a death benefit that your beneficiaries can claim when you die. The amount of the death benefit is based on the sum of the policy’s face value and the cash value accumulated, but is not guaranteed. VUL policies also allow you to adjust the death benefit and premium payments within certain limits.

However, because the death benefit is not a fixed number, and you can change your payment amounts within certain limits, VUL policies are complex. They also require a larger cash need, long time horizons and more volatility than other types of life insurance.

Many variable universal life policies have a “target” death benefit that is calculated using assumptions about the cash value’s performance, such as an assumed rate of return of 4%. The insurer projects that, if the cash value meets this target, the death benefit will be equal to the policy’s face amount when you die. However, the death benefit can decline if the cash value falls below the target.

VUL policies often have additional charges associated with transferring money between investment options, partial withdrawals and obtaining policy illustrations. Some of these fees are charged by the insurance company, while others are passed on to you as a percentage of your net amount of risk. It is important to speak with a financial professional to fully understand these and any other fees that may apply.

VUL policies are regulated by the Securities and Exchange Commission and must be sold by a licensed life insurance professional. In order to sell them, a life insurance agent must meet stringent licensing requirements, including passing a series of exams and training courses.

Why You Need Bookkeeping Services

Caleb Hendrix Business , , , ,

Bookkeeping Services help business owners maintain accurate financial information. Without them, even minor miscalculations or disorganized payment tracking can lead to costly consequences.

Bookkeeping

Bookkeepers manage transactions brought in through accounting software and bank feeds, comparing the data to ensure accuracy. They also reconcile the general ledger, prepare payroll and expense reports, and assist with tax preparation. Visit Website to learn more.

Bookkeeping Services are an excellent tool for business owners who struggle to keep up with their company’s financial records. As a small-business owner, you’re probably already overburdened with marketing, production and customer relationship management, so hiring someone to manage your bookkeeping and accounting can help you focus on your core operations and make better decisions for your business.

A good bookkeeper ensures that all financial transactions are recorded and organized for reporting purposes. This information can help you monitor your business’s performance and identify areas where you could save money on expenses. It also helps you plan for the future by indicating what initiatives have worked and which ones haven’t.

In addition to managing accounts payable, bookkeepers can handle employee payroll and prepare tax returns. They may even be able to advise you on the type of business entity to register, which will determine how you pay taxes and what kind of liability protection you have as a small-business owner.

When choosing a bookkeeping service, look for one that offers an affordable rate and is reliable. You can also hire a bookkeeper on a freelance basis, which will give you more flexibility than a full-time employee. However, be sure to check references and credentials before hiring anyone.

If you want to start your own bookkeeping business, consider registering your business as a sole proprietorship or an LLC. This will help protect your personal assets and limit your liability as a business owner. It will also limit your startup costs. Once you have the proper documentation and business structure, you can start advertising your services.

Whether you’re an experienced accountant or just getting started, bookkeeping services are critical for companies of all sizes. The right bookkeeping services can save you time and money, and help your company grow faster. When searching for a reliable and affordable bookkeeping service, be sure to ask other businesses for recommendations, and compare pricing and software functionality.  

Accounts receivable is a current asset that represents amounts owed to a business from sales of goods or services. A company records accounts receivable in its general ledger. Accounts receivable are the opposite of accounts payable, which represent bills that a business must pay to vendors.

Keeping clear business records is vital for any company. It enables managers to track financial trends and make sound business decisions. It also helps prevent costly – and sometimes illegal – errors. Every entry into your bookkeeping system impacts at least two other accounts in your chart of accounts, so it is critical that you accurately classify these transactions. This will ensure that the correct financial management reports are produced.

A good bookkeeping service can help you achieve these goals by combining a variety of services, including cash management and credit and collections. These services will improve your business’s cash flow by accelerating the time it takes for clients to pay their invoices and managing bad debts.

A company typically records accounts receivable in its general accounts ledger when it sells products or services on credit to customers. These products or services are then delivered to the client and invoiced. Companies may also apply discounts or fees to the invoice and record these amounts as revenue in its accounting system. In addition to recording these revenues, the accounting department is responsible for sending out invoices and following up with customers to ensure that they are paid on time.

The goal of the accounts receivable department is to reduce days sales outstanding by optimizing credit risk and collecting overdue accounts at the earliest possible date. The team is also responsible for minimizing bad debt expenses and improving the accuracy of billing and collection data.

It is crucial for a business to manage its accounts receivable effectively to avoid late payments and bad debts. Inefficient accounting departments can have a significant impact on a company’s cash flow, making it more difficult to invest in growth or secure loans and investors. In addition, slow payments can increase a business’s cost of capital by adding interest expense and financing charges to its balance sheet.

Payroll

Bookkeepers maintain the day to day financial transactions for a business, but they don’t offer advice about growing the business. While their diligence and attention to detail are valuable, a business owner still needs a CPA or accountant for the higher level accounting work of preparing reports, analyzing cost of operations, and advising about upcoming decisions that could have significant financial impact.

A great online bookkeeping service can save a small business owner valuable time and money by providing a complete snapshot of the company’s financial structure every month. That information is a solid foundation on which critical business decisions can be made.

In addition to keeping a record of all the money that comes in and goes out of a company, a good bookkeeper will keep track of bank accounts and credit cards and ensure that balances are consistent with those in the accounting software. They will also help with tax compliance by keeping tabs on sales taxes collected, filing reports with the tax office, and making payments when due.

It is important for a small business owner to stay involved with their bookkeeper and keep the lines of communication open. This will help them keep up to date on the current state of their finances and allow for any questions or issues to be addressed immediately. A good bookkeeper will be willing to do this and provide the best possible service for their clients. To make the process even easier for small businesses, bookkeeping services often offer a variety of package options such as hourly rates, flat recurring monthly service fees and a la carte packages to meet the specific needs of each customer.

Financial Statements

Bookkeepers are responsible for entering financial data to generate various types of reports, including balance sheets and income statements. They also include supplementary notes that are in compliance with accounting frameworks, such as the Generally Accepted Accounting Principles (GAAP). Having reliable, trustworthy financial data is important because it serves as the foundation from which other business decisions are made.

A balance sheet provides a snapshot of the financial health of a company at a specific point in time, while an income statement shows how much a company has earned and spent over a certain period of time. Both of these reports are essential for assessing a company’s financial strength and determining future investment potential.

The last type of financial statement is the cash flow statement, which shows inflows and outflows of money from a company over a period of time. This information is valuable because it can be used to identify areas of the business that are struggling or thriving so that adjustments can be made accordingly.

It’s important to hire a reputable bookkeeping service that has the credentials, experience, and training necessary to serve your company’s needs. You should choose a company that offers the right combination of value, quality, and convenience to meet your unique business needs. For example, if you need help managing your books but aren’t interested in hiring full-time employees, consider choosing a bookkeeping service that offers virtual services or utilizes accounting software to complete the work for you. This way, you can avoid the costly mistakes and expenses that can occur when an employee is mishandling your financial records.

Accounting Tips Blog For You

Adele Hopkins Uncategorized
Accounting tips Blog

There are many accounting blogs that offer helpful tips for professionals and those who are looking to grow their knowledge. These blogs cover everything from tax-related topics to COVID-19 information.

These blogs have a wide range of readers. They include accountants, bookkeepers, and CPAs (Certified Public Accountants). They also attract small business owners.

Accounting Today

Accounting Today is the leading information resource for public accountants – the community of professionals who provide tax preparation, bookkeeping, auditing, financial planning and business advisory and consulting services to individuals and businesses. The magazine serves this community by addressing their most important concerns – from tax law and accounting standards, to technology and wealth management. Through breaking news and analysis, practical business-building ideas, and a deep network of contributors, Accounting Today provides the insight needed to succeed in the public accounting industry. In addition to the biweekly print magazine, Accounting Today also offers a range of online and live events including CPE-qualified webinars and the Firm Growth Forum. Accounting Today is a part of Arizent, which connects professional communities through trusted business information brands.

Number Crunch

Number Crunching is the process of processing large amounts of related numerical data into a more usable format. It frequently entails performing arithmetic operations and deploying them in charts and graphs for easy viewing and management. In the context of business, number crunching can help companies understand their current state of affairs and guide new decisions. Companies often have a general idea of how their operations work but lack specific, actionable information. Without the ability to crunch numbers, they won’t know the cold hard facts until they collect and analyze relevant data.

One of the benefits of using Crunch accounting is that it makes it easier to reconcile accounts, categorize expenses, and process payroll. It also helps you save time by eliminating manual data entry and keeping your financial statements up-to-date. Additionally, you can connect Crunch with your business bank account to make account reconciliation even more convenient.

Many online reviews of Crunch accounting praise the software’s ease of use and rock-solid features. For example, several users say that Crunch has allowed them to spend less time dealing with painful accounting procedures and more time building their businesses. They also love how Crunch connects them with expert accountants for a small fee. However, some people have criticized the software’s lack of built-in mileage tracking functionality and the inability to scan receipts. In addition, they have complained that the interface is not as intuitive as they would like.

Insightful Accountant

Insightful Accountant provides news and insights for accounting professionals working with small business clients. The site covers everything from the latest updates from Intuit, Xero and Sage to hundreds of Add On products serving the small business market. It also offers advice and insight to help Advisors better serve their clients.

Insightful Accountants publisher Gary DeHart recently sat down with Nathan Rodgerson, Senior Accountant Development Manager at Zoho to discuss his firm’s tech stack and how they use automation tools like Anchor and Pulse to interact with their financials and KPIs. You can listen to the podcast HERE.

BottomLine Consulting Inc provides full-service bookkeeping and accounting services for the small business. They specialize in using QuickBooks accounting software and its add-ons. Their services include tax filings, bookkeeping, file reviews and ongoing accounting oversight.

Less Accounting

Less Accounting is a free online accounting and financial management platform that offers users the ability to keep track of their income, expenses, and profits in a simple double-entry system. While it doesn’t feature as much content as some of the other blogs on this list, it is a great place to start for a newcomer to the world of accounting. The site’s articles and blog posts provide step-by-step tutorials on how to use its software, along with tips for small business owners who are looking to save time while still keeping track of their finances.

The financial and accounting advice offered on these blogs can be a valuable resource for anyone who needs help with their bookkeeping, taxes, or general money matters. These blogs are a great choice for students who are seeking to become CPA’s, as well as for seasoned professionals who are interested in the latest developments in the field of finance.

Whether you are looking for an accounting business blog that will teach you how to use the latest accounting technology or simply need some financial advice, these top ten sites are sure to have what you’re looking for. Despite their serious tone, these blogs can also be a lot of fun to read. By adding a personal touch to your blog posts, you can create a sense of connection with your readers that will keep them coming back for more.