Yelitza's Savings Blog

30/03/2022

14/02/2021

The factor that will determine the most about your life insurance price and coverage is the contract, so you should be sure you are reading it right.

Your financial goals and status will change with time, so you should be sure each of these parts in the policy align with your financial goals.

Benefits
Parties
Claims
Deductibles

To learn more read the article I found: https://www.forbes.com/advisor/in/life-insurance/how-to-read-a-life-insurance-policy-document/

13/02/2021

The best way to save on your life insurance is to not get whole life insurance if you don't need it.

So, how do you know if you match the profile?

If you are trying to 1) use Whole life insurance as an investment strategy, 2) are young, 3) have debts higher than your monthly wage and 4) you expect these debts to stay or grow, you should look at term life insurance long before whole life insurance.

While life insurance is cheaper for younger people, the discount you get on term life insurance, combined with the fact you won't be paying the monthly payments until you die, will save you a LOT of money compared to whole life insurance.

Read more, and check if you don't apply for whole life insurance just yet here:
https://www.businessinsider.com/personal-finance/people-who-definitely-dont-need-whole-life-insurance-2021-1

12/02/2021

When was the last time you applied for a new auto insurance?

Even if the process is a hassle, and time consuming, insurance companies compete for a limited pool of users, so you might get a good price if you switch from one insurance provider to another one.

This method is the most effective when you are paying month-to-month, or every 3-months. Insurance companies tend to give you discounts for committing to 6 months or a full year, to prevent you from skipping from insurance provider to insurance provider, which benefits their bottom line.

Next time you get an insurance policy, think before committing to 6 months or a full year of payment, because you could save more if you change your policy after improving your driving situation or credit score.

11/02/2021

If you're looking to save up cash -- and do it faster -- high-yield savings account may be your answer. Not only do they have interest rates many times higher than traditional saving accounts, but they also compound interest daily, giving you the ability to earn more -- and save more -- at a faster pace.

Most people avoid high-yield savings accountes because they believe 1 or more of these myths:
1- The interest rate is always the same
2- It's hard to access your money
3- You'll get the best rate from your own bank
4- It's not much better than a traditional savings account
5- The only benefit is the interest rate

Read more about high-yield savings accounts here. I was convinced and I'm calling to open an account tomorrow!
https://www.foxbusiness.com/money/high-yield-savings-accounts-myths

11/02/2021

A Small Tax Change Is a Boon for Permanent Life Insurance. This rule from 1984 could threaten certain life insurance products.

Owners of permanent-life policies defer taxes on their investment gains, and their beneficiaries receive the death benefit tax-free. The policies are designed to be in place for a buyer's entire life, and allow a buyer to accumulate money to help fund the policy's future costs and to tap prior to death.

A small tax could change all this.

Life insurance companies pay an interest rate of 4% on their policies, but the 2020 pandemic dropped the yield of the binds they invest in so low that they couldn't afford to do this anymore.

This is bad for the insurers, but also for the people subscribed to these permanent life insurance policies.

This article below explains how they got the interest rate down to 2% for a big win-win between the insurers and the people insured: https://www.wsj.com/articles/a-small-tax-change-is-a-boon-for-permanent-life-insurance-11610283602

11/02/2021

Have you taken advantage of your insurance provider's good driver programs?

If you know you are a responsible driver, this is a great way to get a discount on your policy!

Geico offers a program called "Drive Easy", and Progressive offers a very similar program called "Snapshot". These consist of hooking up a small chip to your car, which will track how much you drive and how smooth you drive, and offer you discounts program for good drivers.

So, what are you waiting for? Give you insurance provider a ring and ask what discounts programs they can offer you, and start saving your money!