5 Lifestyle Changes That'll Get Your Finances Back on Track by January

Between travel, concerts and restaurant dinners al fresco, summer fun can make a major dent in your bank account. David Prahl / Getty Images

Ask my mother, best friend, college roommate or anyone else close to me: I�ve never liked summer. Sure, sitting on the beach with a book and a lemonade sounds appealing, but I�m usually over the heat and humidity and longing for a chilly night by the fire after about an hour. Summers, to me, are best spent hopping around the city trying to find the best AC, whether that be in the library or at the movie theater.

But somehow, even I�m prone to seasonal "fear of missing out," or FOMO, over-spending in the summer. It�s something that gets even the best of us � that feeling that we must take advantage of the season, lest we miss out on all the fun everyone else seems to be having. (Instagram does not help with this.)

Seasonal FOMO gets even the best of us � that feeling that we must take advantage of the season, lest we miss out on all the fun everyone else seems to be having.

Seasonal FOMO gets even the best of us � that feeling that we must take advantage of the season, lest we miss out on all the fun everyone else seems to be having.

Between several road trips and great shows, I managed to have a lot of fun this summer. But, of course, it was all at the expense of my bank account. After checking in with my Mint account, I found out that, since May, I�ve spent the following:

• Entertainment (movie, theater, concert and amusement park tickets): $627 
• Travel (airplane/train tickets, rental cars, taxis/ride shares): $728 
• Shopping (clothes/household items): $290 
• Total: $1,645

I feel better knowing some of the travel and entertainment spending here has been for things that haven�t happened yet (e.g. a flight home in October, tickets to Sweeney Todd for my boyfriend�s birthday). Besides a couple of overpriced taxis to and from the airport, I can�t say I regret any of this spending.

But seeing the total I�ve spent on fun in one season � $1,645?! � is a real wakeup call. I still have several money goals I want to hit by the end of the year, including fleshing out my emergency fund and contributing as much as I can to my retirement account. And while I�ve still managed to set money aside in my savings accounts this summer, I�m not quite where I want to be.

Here are 5 active ways I�m going to get back on track by the end of this year:

1. MEAL PLAN

I�ll be honest � I�ve never been into the idea of meal prep. I have several friends who do it (successfully!), but I don�t relish spending two-plus hours of my Sunday cooking food that I�m not going to start eating until the next day. I do love cooking at home, and I�m proud to say I�ve gotten really good at always having and eating leftovers so I don�t have to buy lunches out � but I can do better.

Whenever it�s my turn to cook dinner, I decide on a recipe, then go to the store and get everything I need. Since I live in a city and don�t have a car, it�s a lot easier to make a few short trips to the grocery each week rather than try and carry everything in one trip. But, unfortunately, I think this lack of planning is costing me money. Sometimes I end up with produce that goes bad, because I never got a chance to use all of it up. Other times, I end up making multiple meals in one week that use different meats, to try and change things up, which gets to be expensive.

But even with multiple weekly shopping trips, I can still do a better job of meal planning. One thing I�ve started doing is planning out dinners that use overlapping ingredients. This is really easy to do when you reference the same cookbook or blog for multiple recipes (my personal favorite is Budget Bytes), because often the writer will use the same set of ingredients several times over to illustrate all the different things you can do with them. By planning ahead and using up all my ingredients, I�m hoping to cut down my grocery spending by $10-15 a week.

2. LIMIT GOING TO RESTAURANTS AND BARS TO ONCE A WEEK

My boyfriend and I love going out to eat or grabbing a drink at a bar in our neighborhood � the downfall of many otherwise-frugal people, especially when you live somewhere as expensive as Manhattan. And this summer, we really haven�t been cutting back. I don�t want to cut out these nights altogether, but I do think we should make them less regular. Because even though we almost never go to �fancy� restaurants, it�s too easy to spend $30+ on an entree and a drink or two. That�s more than I spent making a one-pot pasta and an apple pie to feed four people last weekend (plus leftovers).

Right now, we typically go out to a restaurant twice a week, plus another night or two at a bar. Cutting this back to once a week should easily save me $100+ each month.

3. FIND A NEW SIDE GIG

Unless you�re already earning a six-figure salary, the easiest way to increase your savings is to increase your income. I currently spend about two-thirds of my work week as the managing editor of The Financial Diet, and the other third working on side projects (all of which are somehow writing/editing related). I�m very lucky in that I�ve been in a full-time freelancer for several years now, so I know how to find more work if I need to.

I typically find clients via freelancing platforms like Upwork or PeoplePerHour, and I�ve also had some luck on LinkedIn. I�m not looking to overwork myself, but adding an extra client is totally feasible with my current schedule. Hopefully I�ll be able to add an extra income source in the next few weeks, and then direct all of those extra earnings to my savings. If your line of work doesn�t lend itself to remote freelancing, I�d still definitely recommend finding a side hustle, like adding a part-time seasonal job for a temporary income boost.

4. PARTICIPATE IN A READING CHALLENGE

I am hardly the first person to tell you that reading is one of the best hobbies out there for saving money (especially if you�re a slow reader, like I am). Even if you buy your books, you can spend hours entertaining yourself at home, in a coffee shop or in a park rather than out spending money elsewhere.

I�m challenging myself to do two things: read at least one book per week and buy no new books in order to do so.

I�m challenging myself to do two things: read at least one book per week and buy no new books in order to do so. That being said, I have too many books I�ve just never read. I love having a full bookcase and owning books I love � but that doesn�t justify buying new books before I�ve even read all the ones on my shelves. So for the rest of this year, I�m challenging myself to do two things: read at least one book per week, and buy no new books in order to do so. (Library books are allowed!) This should help me spend a lot more time reading, and a lot less time spending money I�m trying not to elsewhere.

5. WALK (ALMOST) EVERYWHERE

Finally, I definitely need to cut down on my transportation costs. I�m proud of how much I�ve been able to save on public transportation in the past year or so, after I finally stopped buying an unlimited monthly pass for the subway. I used to spend $120 a month for the unlimited pass, and now I spend only around $80 a month by paying only for individual rides. Since I work mostly remotely and typically don�t have a commute, this makes total sense for me.

However, I also feel like I�ve given myself more license to take cabs or use ride-share apps whenever it�s convenient. If I�m spending less on the subway, it�s okay to spend more on other transportation, right? Wrong � I�ve definitely spent more on cabs this year than any other year in my adult life. I used to go completely without them, and it�s time I get back to that. So, while it�s still warm enough out, I�m going to start walking everywhere it makes sense. If it�s not raining and I can get there in less than 45 minutes, I�m walking. Otherwise, subway it is!

If there�s one thing each of these tactics has in common, it�s planning ahead. I�m not saying there�ll be no room in my life for spontaneity, but it�ll be less frequent � and that way, it�ll be even more special.

Want more tips like these? WELL-BEING INSURED is obsessed with finding easier, healthier and smarter ways to live. Sign up for our newsletter and follow us on Facebook, Twitter and Instagram.

How Much Life Insurance Do You Really Need?

Some people equate life insurance with tragedy and death. In truth, life insurance is for the living. Without it, the sudden demise of a key breadwinner could leave a family stranded without the resources to maintain their lifestyle�or even retain their home.

Not so long ago, professionals recommended that families carry a life insurance policy with a death benefit of 10 times their annual household income. Today, however, in light of rising house prices in many parts of the country, spiraling college costs and low interest rates most advisors now recommend up to 20 times your household income.

Unfortunately, most American families are underinsured. The gap between what households have and what they need is nearly $320,000, according to LIMRA�s study Closing the Life Insurance Gap, 2015.

If you�d like to get a working idea of how much life insurance you may need (or how much more you may need), you can use our quick Life Insurance Needs Calculator.

A Cornerstone of Your Financial Plan Life insurance is a cornerstone of your financial plan, for these reasons.

1. It provides income replacement. 

For most people, their most valuable economic asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they could no longer rely on your income. A life insurance policy can also help supplement retirement income, which can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.

2. It covers outstanding debts and long-term obligations. 

Without life insurance, your loved ones must shoulder burial costs, credit card debts, and medical expenses not covered by health insurance using out-of-pocket funds. The policy�s death benefit might also be used to pay off a mortgage, supplement retirement savings, or fund college tuition.

3. It can be used for estate planning. 

The proceeds of a life insurance policy can be earmarked to pay estate taxes so that your heirs will not have to liquidate other assets to do so.

4. You can use it to support a charity of your choice. 

If you have a favorite charity, you can designate some or all of the proceeds from your life insurance to go to this organization.

Remember an agent or advisor can help you figure out your life insurance needs and find something that works within your budget. If you don�t have one, you can check out our Agent Locator.

4 Financial Tips to Keep Your Family Safe

It�s tough to get our financial house in order, not because it�s especially hard, but because it�s � boring? Tedious? The last thing we want to spend time on? To remedy that, here are four tips that you can take on and accomplish:

1. Make sure you have life insurance�or enough of it. 

Do you really need life insurance? Well, answer this question to find out: Would your loved ones suffer financial if something happened to you? If the answer is yes, you need life insurance. Then comes the question, how much? There are a number of factors that go into calculating how much life insurance you might need. But it doesn�t have to be difficult. Instead, use this online Life Insurance Needs Calculator, and in just a couple of minutes you can have a working idea of the amount you need. If you already have life insurance, why not use this calculator to make sure you have enough!

And don�t let cost�or actually perceived cost�stop you from getting coverage. Did you know that 80% of people overestimate how much life insurance costs? And those under 25 think it�s four times more expensive than it actually is. Let�s frame it this way, say you�re 30 and in good health, a 20-year level term life insurance policy with $250,000 of coverage may cost around $13 a month. That�s the equivalent of a few Starbucks drive-through lattes. Here are a number of ways you can get coverage or search for an agent if you don�t have one.

Would you like to your ex-spouse to get your life insurance if something were to happen to you because you forgot to change the beneficiary on your policy?

2. Review your life insurance beneficiaries. 

Would you like your ex-spouse to get your life insurance if something were to happen to you because you forgot to change the beneficiary on your policy? Would you like the money to get tied up in court because you named your minor children as the beneficiaries? These are missteps that happen more than you think. Add to that the fact that people may have more than one policy�for example one through the workplace (a group policy) and one that they bought individually.

This is exactly the type of thing that a life insurance agent or advisor can help you with. And it won�t cost you anything to talk to them about it. Plus, if you�ve gone through tip #1, they can double check that the amount of coverage you came up with meets you needs. Also, it�s honestly a lot less hassle to have someone who knows what they�re doing help you out, and isn�t that what we�re trying to achieve here�get it done?

3. Don�t skip disability insurance. 

Many people aren�t really familiar with what disability insurance is and what it does. Basically, it replaces a portion of your income if you�re unable to work due to a disabling illness or injury. Why is that important? Think about how long you could make ends meet�pay rent or the mortgage and all your monthly bills if your paycheck suddenly disappeared. A Life Happens survey found that a majority of those who work wouldn�t make it more than a month before they�d have to make some serious financial sacrifices. Again, an online calculator can help; get started with this Disability Insurance Needs Calculator.

So, how do you get it? Your employer may offer disability insurance coverage through a group plan. If you�re not sure, contact your HR department or benefits manager to find out what kind of coverage you have (if any). If you don�t have coverage or need more than is offered through work, buying your own disability insurance policy is worth considering. Unlike group coverage, privately owned insurance stays with you even when you change jobs.

Also keep in mind that most people overestimate what the government will pay or cover if something were to happen. According to the National Safety Council, 73% of long-term disabilities are a result of an injury or illness that is not work-related and therefore wouldn�t qualify for Workers� Compensation. And if you were hoping for Social Security disability benefits, know that about 45% of those who apply are initially denied, and those who are approved receive an average monthly benefit of around $1,100, which would leave you living at about the poverty level.

4. Automate your emergency fund. 

While not as fundamentally critical as the above tips, this will probably have the most impact on your day-to-day life. Everyone one of us runs into unexpected events that are costly�a major car repair, a leak in the roof, a job loss � the list, as you know, can seem endless. To give yourself peace of mind and bit of cushion, set aside a certain amount each month�it could be $50 or $500, depending on your financial situation�and have it automatically deposited into your savings account. If it�s easier to track, you could even keep it in a separate account. Then it becomes a no-brainer, because that money isn�t there for you to spend. In a year, if you chose one of the above amounts, you could have $600 or $6,000 stashed away!

These tips will set you on the path of ensuring that if the unforeseen happens, you and your family will be OK financially. And what�s worth more than your peace of mind?

4 Ways to Get Financially Fit in Your 40s

Many people in their 40s are facing an uncomfortable fact: They simply aren�t where they�d hoped to be financially. Fortunately, all their life experience can help correct for past mistakes.

�There�s a different trigger moment for everybody,� says Jay Howard, financial advisor and partner at MHD Financial in San Antonio, Texas. �But regardless of when it comes, people find themselves looking down the barrel of a gun as they consider retirement.�

One challenge is that it�s impossible to advise 40-somethings based on tidy �life stage� demographics. Some are just starting families, while others are sending offspring to college. They�re married, single, divorced, and just about everything in between.

But for those still grappling with financial instability, these four principles can help in moving forward with confidence:

1. Acknowledge what you�ve done right. 

It could be one great decision sandwiched in between some fails, or just a single good habit that can mitigate the impact of a host of wrongs.

Take the example of Kiera Starboard, a 46-year-old controller at a San Diego software firm. A mom to two adult sons and a teenage stepson, she always made having sufficient life insurance�both term and permanent�a priority, the result of her previous training as a financial advisor. �Even if it was tight, I made the payments,� she says. �It was a priority for my family�s sake, and for my own peace of mind.�

Unlike the 40% of Americans who have no life insurance, Starboard was protected when the unthinkable happened last August. Less than two years into her marriage, her husband, Steve, was killed while riding his motorcycle to work�one month after they purchased a small, additional life insurance policy to supplement his employer coverage.

�To have had to deal with financial stress on top of everything else, it would have been unbearable, incapacitating,� says Starboard. �My stepson and I are certainly in a much better position today than we would have been, had Steve and I not followed the advice I used to give to others.�

2. Take action to shore up the decades ahead. 

For many, the hardest part can be learning to put your own long-term future first�sometimes for the first time in your life.

�I see people focusing on their kids� college savings, and not enough on retirement or an emergency fund for themselves,� says Starboard. Many advisors point out that kids can borrow for college if necessary, but no one can borrow for retirement.

The most important step is clear, says Howard: �You must have a written financial plan, period. Because that plan will dictate what you must do to be successful for the entirely of your life.

�The financial plan is your road map,� he continues. �In it will be your portfolio requirements, your savings goals, and your insurance-related needs.�

Finally, make sure your plan takes inflation into account, commonly estimated at 3% a year. Says Howard, �Inflation is the silent assassin that eats away at your nest egg.�

3. Apply the hard-fought wisdom you�ve gained. 

�Treat the numbers determined by your plan�such as monthly savings�as bills that need to be paid,� advises Howard. When money comes in, it�s easy to start thinking of a new kitchen or a trip to Tulum. �Just be patient and keep the bills paid.�

Using that wisdom also applies to the big stuff. As the executor to her husband�s estate, Starboard has held back making any major decisions. �In a prior loss, I committed to real estate transactions and other things prematurely. At the time, it really felt like the right thing to do but my grief clouded my perception. I had a painful, expensive learning lesson.�

4. Focus on your shining future�really. 

Forward thinking is an essential part of your financial plan, says Howard. �Get help really envisioning what kind of retirement you want. For each aspect, really drill down. For instance, where do you want to live? Do you want to be near your grandkids? Will you have the money to go see them? How often? It�s not just financial planning, it�s life planning.�

If all that forward thinking feels presumptuous, Howard recalls the eminently quotable Yogi Berra, who once said, �If you don�t know where you�re going, you might not get there.�

And finally, remember the simple refrain: it�s never too late.

3 Life Insurance Myths That Could Hurt Young Families

When you�re just starting out, it often seems that a dollar never stretches far enough. And with new commitments, such as buying your first home or having children, comes the responsibility to make sure your loved ones will be provided for financially, no matter what life may bring.

If you were to die unexpectedly, life insurance is there to make sure your loved ones can maintain their standard of living, stay in your home, send your kids to the same schools and keep their plans for the future on track. It also gives the grieving spouse or partner time to make decisions, or in some cases find work outside the home, without worrying about finances.

But common misconceptions often prevent young families from purchasing the life insurance they need.

Myth 1: I only need life insurance if I�m the primary breadwinner in my family. 

Whether you bring home the largest paycheck in your household or a smaller one, your family relies on your income to maintain its quality of life, and it would be missed if something were to happen to you. Even if you don�t work outside of the home, having life insurance is a smart choice. Stay-at-home parents perform valuable services such as childcare, cooking, housecleaning and household management, which can be costly to replace for a surviving spouse or partner.

Stay-at-home parents perform valuable services such as childcare, cooking, housecleaning and household management, which can be costly to replace for a surviving spouse or partner.

Myth 2: If I buy a term life insurance policy and find that I still need protection when the term ends, I can always renew the policy. 

Term policies are quite popular with many young families, and for good reason: They typically offer the greatest coverage for the lowest cost. Term insurance provides protection for a specific period of time (the �term�), and can be ideal for people who feel they have financial needs to cover that will disappear over time, such as a mortgage or a child�s education.

However, many families realize that even after the kids are grown and the mortgage is paid off, their need for insurance continues�to provide income for a surviving spouse, eliminate debts, pay taxes, etc. Because life insurance premiums increase with age, renewing your policy when the term expires can be very expensive. Moreover, poor health may make renewal impossible.

Myth 3: I only need term life insurance. 

Term life insurance makes sense for many young families because their need for coverage is great and their budgets are often limited. But that doesn�t mean it�s the only type of insurance you should consider.

Permanent life insurance policies provide a death benefit as well as other unique features such as lifelong protection and the ability to accumulate cash values on a tax-deferred basis, similar to assets in most retirement-savings plans. You can access the cash values for important uses like a child�s education or a business opportunity. (Keep in mind, however, that withdrawing or borrowing funds from your policy will reduce its cash value and death benefit if not repaid.)

If these features appeal to you, it might make sense to buy a large face amount term policy, giving you the death benefit protection you need, and combine it with a smaller permanent policy. When your budget permits, you can gradually increase your permanent insurance coverage. If you�re not sure which would be better for you, you can answer a few easy questions on our Product Selector.

And remember, insurance agents and advisors are there to help you. They can step you through your life insurance needs and solutions at no cost or obligation. If you don�t have an agent, you can use our Agent Locator here.

5 Reasons Why It�s (Super) Smart for Women to Get Life Insurance�or More of It

One of the most harrowing experiences I�ve ever had was during the sixth month of my pregnancy. My husband was out late, hadn�t called, and I was, of course, angry at his thoughtlessness. But this very evening, he had misjudged a bend in a rural, mountain road�and plummeted off the side of it into a ravine, totaling his car.

It was some time before campers found him, unconscious and with a dislocated shoulder, but otherwise uninjured. I was overwhelmed suddenly�even though my husband was going to be fine�with the prospect of managing the future costs of raising a child without him. But there was a catch to this epiphany: I was the breadwinner of the family. If I was worried about losing him, what if he lost me? I talked to an insurance agent and secured policies for both myself and him.

My story could be anyone�s story. And women, in particular, tend to have less life insurance coverage than men. So here�s why it�s a good idea to take stock:

1. Women increasingly are the primary breadwinners and even sole providers for families. 

Whether you�re earning more than your spouse or you don�t have a spouse, your income is critical to providing the most basic of needs to your family, whether that family involves kids you�re raising, aging parents or a special-needs sibling you�re caring for. Life insurance ensures that whomever depends on your livelihood can continue to do so even after (heaven forbid) something happens to you.

2. Stay-at-home moms need protection, too. 

Don�t discount the value you provide as the manager of the household. Life insurance provides much needed funds when an overwhelmed spouse or other caregiver suddenly has to find help to care for the kids, manage a household or needs to take a significant amount of time off to stay with them. Watch the Virgen�s story if you have any doubt.

3. Women often pay less for insurance�or get more coverage for the same amount. 

Because women have a longer average life expectancy than men, that in turn brings the cost of life insurance down for women. Also keep in mind that the younger and healthier you are, the less it will cost you. For example, a healthy 30-year-old can get $250,000 of coverage in the form a 20-year level term life insurance policy for about $13 a month.

4. Mompreneurs and those who work part time need coverage too. 

Women often run home-based businesses or work part time while also raising children. They should also consider their need life insurance because, while they may not be the main breadwinner, their income supports the family and will be sorely missed if something were to happen.

5. Women�s situations can change. 

Just when you think you�ve gotten your life insurance needs all taken care of, you might experience more additions to your family, or close down a business, or go through a divorce, or a family member might need your active support in the future. Is your insurance up-to-date with your changing needs?

Remember, an insurance agent will sit down with you free of charge to go through your needs and help you find coverage that fits your budget, which is key! If you don�t have an agent, here are some tips on finding the right fit and then searching by ZIP code with the Agent Locator. Don�t wait for that crisis moment, the way we nearly did!

7 tips to speed business insurance recoveries from Hurricane Harvey

A business was wiped off its foundation in the wake of Hurricane Harvey, Saturday, Aug. 26, 2017, in Rockport, Texas. (AP Photo/Eric Gay)

Hurricane Harvey tore up large areas of the Texas Gulf Coast with gale-force winds and storm surge, and then inundated vast areas, including Houston, with unprecedented amounts of rain.

Many businesses in those areas are still shut down, and operations are only slowly being restored. Moreover, refineries have been shut down, which means that companies throughout the country will suffer losses because of the storm�s impact on the supply and prices of petroleum-based products.

Fortunately, many businesses have applicable insurance for first-party property loss, lost profits and extra expense. Indeed, throughout the U.S., businesses far from the storm's direct impact may have cause to tap �contingent business interruption� coverage for losses resulting from damage to the property of suppliers and customers � which can be triggered even if your business is geographically remote from the path of the storm.

Yet, if the experiences of policyholders after Hurricanes Katrina, Rita, and Ike, and Superstorm Sandy are any guide, businesses will have to be proactive and vigilant if they are to successfully resolve their insurance claims anytime soon. The following tips can greatly enhance your organization�s chances of success.

Your team of experts may include accountants, lawyers and financial analysts as well as senior managers. (Photo: iStock)

1. Assemble a team of experts to prepare and negotiate the claim

Securing the largest possible recovery for a storm-related loss requires careful expert analysis of your insurance policies. For example, many claims for losses caused by Harvey will present significant challenges for policyholders who have little or no coverage for �flood.� However, just because the damage is caused by water does not necessarily mean it falls within a flood exclusion or sublimit. Also, the damage that results from wind and rain may not be excluded by subsequent flooding of the same damaged property.

Therefore, for large losses, policyholders should assemble a team of experts to prepare and negotiate the claim, including risk managers, accountants or loss adjusters, and coverage counsel. Insurance companies understand the importance of such expertise and are busily at work now assembling teams to devise strategies to minimize their exposure to Harvey claims. Policyholders may find themselves at a distinct disadvantage if they fail to bring the same expertise to bear when pursuing their claims.

Contact your insurance agent or broker at the first opportunity. Don't wait for them to call you. (Photo: Shutterstock)

2. Be proactive in presenting the claim

Provide the insurance company with all relevant information about your loss without waiting to be asked. Also, don�t wait until all the information about all elements of the loss can be presented in a neat package. Provide information as it becomes available.

Some attorneys are advising policyholders in Texas to submit property damage claims before Sept. 1, 2017, to possibly avoid the impact of a Texas statute that takes effect on that date. The statute will reduce the rate of interest awarded to a policyholder who is successful in an insurance coverage lawsuit.

Although immediately notifying your insurance company that you have suffered a loss is always advisable, be careful not to make unsubstantiated assertions in the interest of meeting this filing date. In particular, be mindful that asserting a loss amount without justification can cause problems that outweigh the possible benefit of earning additional interest if you prevail someday in a coverage action.

Giving the insurance company a deadline reinforces your need for prompt payment to keep your business going. (Photo: Shutterstock)

3. Give the insurance company a reasonable deadline for resolving the claim

Under the best of circumstances, major insurance claims tend to be resolved only when the policyholder pushes them to resolution. When competing for attention with countless other policyholders after a catastrophe, it is imperative that the policyholder make clear at the outset of the adjustment process that it will cooperate fully and provide information promptly, but that the claim must be settled by a specific date.

Pick a realistic date and stick to it, if need be threatening to file formal proofs of loss or to assert claims of bad-faith claims handling. Also be sure to explain to your insurance companies � in writing � any financial pressures created by the loss that make prompt payment of your claim important.

Review your policy before filing a claim to be sure you've met the requirements. (Photo: Shutterstock)

4. Comply with all insurance policy requirements

Most property insurance policies impose a number of requirements upon the policyholder, including timely notice and deadlines for the filing of proofs of claim and the commencement of coverage lawsuits.

The failure to comply with these requirements might result in a forfeiture of coverage. So, be sure to comply with these requirements or obtain the written agreement of the insurance company to adjourn deadlines.

Insist that the insurance company pay you any amounts not in dispute. You need them to keep your business running. (Photo: Shutterstock)

5. Demand partial payments

Typically, the insurance company will make a �good faith� partial payment and then pay little or nothing more until a final negotiation over all the open issues. This allows the insurance company to hold onto funds that should be paid out for undisputed portions of the claim and increases its leverage for later negotiations. Counter this strategy by forcing the insurance company to commit to a position on coverage and to pay the amounts due under its own analysis of the claim.

Start by demanding a coverage determination. Typically, insurance companies issue vague reservation-of-rights letters that quote numerous policy provisions without explaining how those clauses apply to the claim. Such a letter is intended to protect the insurance company from a waiver of defenses but does not fulfill its obligation to provide a timely coverage determination. Respond to the reservation of rights with a demand for a detailed and specific coverage determination, reminding the insurance company that its failure to do so may constitute bad faith.

Also, demand payment of the undisputed amount of each element of the claim. For example, a dispute over the period of restoration for business interruption coverage should not delay payment for property loss. If the insurance company will not agree to make partial payments, submit partial proofs of loss, which will trigger the deadlines for payment under most states� unfair claims-handling statutes.

Keep careful records of all your interactions with your insurance company. (Photo: Shutterstock)

6. Document everything that does and doesn't happen with the claim

The resolution of claims, particularly catastrophe claims, can be slow-tracked by a high turnover among insurance adjusters or just a lack of attention by claims personnel.

Policyholders should not only be persistent in their demands for attention, they should also create a written record of everything that happens with the handling of the claims, including their responsiveness to requests for information and the insurance companies� delays and lack of responsiveness.

The chronology should be presented to the insurance company in writing on an ongoing basis to deter dilatory conduct and to make a record for a possible bad faith claim later on.

When all else fails, you may have to file suit against the insurer. (Photo: Shutterstock)

7. Choose appraisal or litigation if negotiation fails

If the claim can�t be resolved through negotiation, you may have a choice of proceeding either to appraisal or litigation. Appraisal is a form of arbitration provided for under many insurance policies that either party can demand to resolve disputes over the amount of the loss. It can be a quick and inexpensive way to quantify disputed amounts of the claim.

Appraisal is not required, and may not be appropriate, when there are coverage issues to be resolved. For example, if the parties disagree over the amount of a business interruption loss because of a dispute over whether market conditions after the hurricane should be considered when calculating damages, the policyholder would be entitled to have that coverage issue decided in court, where the rules of insurance policy interpretation are generally favorable to policyholders, and unfavorable to insurance companies. Appraisers, who typically are in the building trades, generally are not qualified to address such issues.

Also, bad faith claims fall outside the scope of an appraisal clause and will have much greater value if placed before a jury. So, the policyholder must carefully consider its options and not necessarily feel compelled to agree to an appraisal simply because the amount of damages is one issue in dispute.

The key to getting insurance claims satisfactorily resolved within a reasonable period of time is for policyholders to take control of the process and to demonstrate a resolve to secure the coverage they paid for. This requires hard work but will pay handsome dividends.

Finley T. Harckham is a senior litigation shareholder in the New York office of Anderson Kill. He also heads Anderson Kill�s loss advising subsidiary, Anderson Kill Loss Advisors. He can be reached at fharckham@andersonkill.com

What businesses can learn from Harvey and Irma before the next hurricane

Part of the roof membrane atop the Everglades Preparatory Academy is peeled away in the wake of Hurricane Irma, Monday, Sept. 11, 2017, in Homestead, Fla. (AP Photo/Wilfredo Lee)

In the wake of the disaster that Hurricane Harvey left behind, experts estimate up to $23 billion dollars in damage in just two southeast Texas counties.

That number reflects market value, rather than total storm damage, and doesn�t include the storm�s total reach. Experts are still calculating the total cost of damage across the rest of Texas and Louisiana.

Whatever it is, it�ll take many business owners � especially those of small businesses � years to rebuild, if they do at all. Over 40% of small businesses don�t reopen after a disaster because they simply don�t have the resources.

If the aftermath of Harvey isn�t enough of a warning to business owners about storms wreaking havoc, Hurricane Irma followed soon after, hitting south Florida over the weekend and working her way north.

Irma was the most powerful hurricane on record, but it weakened substantially after making landfall. Still, business owners, particularly in south Florida, are now left assessing the damage.

Here are some serious issues to consider before the next hurricane hits:

Chris Stokes, right, cleans up mud brought in with the storm surge from Hurricane Irma with help from his son Chase, 9, at his father's convenience store in Everglades City, Fla., Monday, Sept. 11, 2017. (AP Photo/David Goldman)

Related: 7 tips to speed business insurance recoveries

Develop a business continuity plan

Harvey put the brakes on the fifth largest economy in the U.S. for a few days � and it�s very slowly beginning to move again.

Obviously, it may not be possible (or safe) to work during a hurricane. However, depending on the effects of the storm, you may be able to resume business at an alternate location � if you�ve planned in advance.

Before a storm hits, review your employees� contact information to ensure it�s up to date. It may be a snap to reach people on social media, email, by phone or text, but consider how power outages, cell service and even email servers might be affected by a natural disaster.

In addition to your employees, you should also make sure your suppliers and partner companies are available. If your supply chain is disrupted by the same natural disaster � or another one that doesn�t directly affect you � you might still have to deal with the fallout. Consider contingent business interruption (CBI) insurance to protect against disruptions in your supply chain.

The roof membrane of a storage building is peeled away in the wake of Hurricane Irma, Monday, Sept. 11, 2017, in Homestead, Fla. (AP Photo/Wilfredo Lee)

Get the right types of insurance � and review coverage periodically

Business interruption insurance will cover expenses your business incurs if you can�t operate due to a hurricane or other natural disaster. Review your limits periodically to ensure you�ve got adequate coverage. It�s easy to underestimate what you need to try and save money � in reality, business might resume just a few days after a storm hits, but you could feel the effects long after it.

On the other hand, if your business has been severely damaged, you may need to rebuild. Make sure your business interruption insurance includes coverage for payroll. If you can�t work remotely during the rebuilding phase, you want to ensure that your employees are compensated until they�re able to work again.

Typical property insurance covers the effects of natural disasters like lightning damage or wind damage. But it doesn�t cover damage caused by flooding. Hurricane Harvey dumped an unprecedented 51.8 inches of rain on parts of Houston, which is more rain than the city usually accumulates in a year.

Many businesses in the storm�s path did not have flood insurance, which means there may be few options for filing flood-related claims. Business owners should look to the federal government�s National Flood Insurance Program, which can issue policies that cover businesses in the event of a flood.

Jessica Newman, from the City of Wauchula cleans up broke tiles from a sidewalk after Hurricane Irma

Jessica Newman, from the City of Wauchula cleans up broke tiles from a sidewalk after Hurricane Irma came through the area Monday, Sept. 11, 2017, in Wauchula, Fla. (AP Photo/Chris O'Meara)

Consider the emotional toll on employees

Your business was hit by a hurricane; that means your employees� homes were likely affected, too. Hurricane Harvey displaced an estimated one million people. While getting your business back up and running is a priority for you, consider the impact of the storm on your colleagues.

Following a natural disaster, it�s important to keep the lines of communication open and be flexible with employees as they deal with damage to their homes. Put policies in place before a storm hits that outline how you�ll handle working after the storm. Your employees may need to work flexible hours while they care for kids who aren�t able to go to school or elderly relatives who typically live on their own or at a nursing home or assisted living facility.

A vehicle lies on it's side in the aftermath of Hurricane Irma, Monday, Sept. 11, 2017, in Miami. (AP Photo/Josh Replogle)

Organize and protect your records

In the days leading up to a forecasted hurricane or other severe weather, you�ll likely want to spend it preparing for physical damage, preparing to evacuate and making sure that your family and your employees� families are safe. You don�t want to spend it scrambling to organize your policy files.

While most of the information you need is on the web, make sure you know can easily access it from your phone. You might also want to print out backup copies of policies and carry them with you so you can reach out to insurers after the event.

Put your smartphone to use

When it�s time to assess the damage and begin rebuilding, put your smartphone to use. Take pictures and video to capture the damage to your business. As an added measure, take pictures of paper receipts during your rebuilding efforts as a backup. It�s an easy way to help you document your expenses that can contribute to your deductible.

These recent powerful storms are a reminder to prepare ahead of time for these types of natural disasters � even if you don�t think it can happen to you. No doubt, some businesses beginning the rebuilding process after Harvey and Irma believed it would never happen to them either. But the storms proved, once again, it�s better to be safe than sorry.

James W. Gow Jr., CPCU, AU, (James.Gow@corpsyn.com) brings more than two decades of experience at leading national carriers to his role of senior vice president, Property & Casualty Practice for Corporate Synergies.

6 Reasons People Don�t Buy Life Insurance (and Why They�re Wrong)

Let�s face it. Most people put off buying life insurance for any number of reasons�if they even understand it Take a look at this list�do any of them sound like you?

1. It�s too expensive. 

In the ever-burgeoning budget of a young family, things like day care and car payments and possibly student loans eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those �necessities� when money�s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local caf�, and well, if money�s tight now, what if something happens to you?

2. That�s that stuff for babies and old people, right? 

People of a certain age remember Ed McMahon telling them their grandparents couldn�t be turned down for any reason and figure that�s the target demographic for life insurance. Or, you might have been offered a small permanent insurance policy for your newborn, attractively presented with a cherubic infant on the envelope. The truth of the matter is that these are very specific insurance products�just as there are many insurance products for adults in their working years.

3. I�m strong and healthy! 

You eat right, you stay active, and everyone admires how grounded and centered you are. You passed your last physical with flying colors! That�s GREAT! But you�re neither immortal nor indestructible. It�s not even that something could happen to you � though it could � so much as when you�re at your strongest and healthiest, there�s no better time to get a policy to protect your loved ones. If you fall seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.

4. I have life insurance through my job. 

Many people are offered life insurance as part of their employee benefit coverage �and often, it�s the first time they encounter life insurance and have no idea that a $50,000 policy, or one or two times their salary, isn�t as much as they think it is. It sounds like a lot of money, until you figure that it has to cover some or all the expenses for your loved ones in your absence. Plus, if you leave the job, it�s typically the type of insurance that doesn�t �move on� with you.

5. I don�t have kids. 

Sure, kids are a big reason why some people get life insurance. But that�s not the only litmus for needing protection. If there is anyone in your life who would suffer financially from your loss�your spouse or live-in partner, a sibling, even your parents�a life insurance policy goes a long way in making sure everyone�s still OK even if something happens to you.

6. Life insurance�it�s on my list � eventually. 

There�s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it�s certainly not the most invigorating topic for conversation. But don�t let your �eventually� turn into your loved ones� �if only.�

If any of this sounds daunting, just know that you can talk to an agent�at no cost. They will help you figure out how much you may need, and also find a policy that fits into your budget. If you don�t have an agent, you can use this Agent Locator to find one in your area.

List of Top 10 Schools For Insurance and Risk Management

Many of the next generation of insurance professionals can be found at these top 10 insurance and risk management schools. (Photo: iStock)

According to U.S. Census data, millennials outnumber baby boomers and are expected to make up half of the global workforce by 2020.

However, the insurance industry needs to find a way to make itself attractive and leverage this talent.

The good news is that four out of five millennials are "optimistic" or "very optimistic" that the insurance industry will evolve to attract the next generation of insurance talent, because of productivity and efficiency gains from technology adoption, according to Vertafore's second annual "Millennial Revolution" study.

Year-over-year comparisons show that work/life balance is the No. 1 reason why millennials stay in this industry, according to Vertafore. Millennials also name compensation and enjoyment of work as reasons for staying in the industry. They value decision-making, with three-quarters identifying it is "important" or "very important" to influence change in their companies. Nine out of 10 millennials also identify their company's use of technology, particularly mobile and social media, as key elements contributing toward job satisfaction.

Sourcing new talent is often a pain point for insurance companies. However, the best and brightest may be found attending U.S. News & World Report's top 10 insurance and risk management schools. For the 2015-2016 school year, the publication named its top 12 insurance and risk management schools.

Coming in tied for the No. 12 spots are Pennsylvania State University, University Park and Illinois State University. Ranked No. 11 is the University of South Carolina.

10. University of Texas, Austin

In-state tuition and fees: $9,830.

Out-of-state tuition and fees: $34,836.

Enrollment: 39,523.

2014 rank: 9 (tie).

In the McCombs School of Business, the Center for Risk Management and Insurance is a premier independent research resource for public policy decision-makers within Texas in regard to issues related to risk.

Research topics include analysis and public policy implications of credit scoring in insurance; environmental risks and their handling; and social, ethical and financial implications of genetic testing for risk and insurance underwriting.

The Center sponsors and edits the Journal of Risk and Insurance, the flagship publication of the American Risk and Insurance Association. Professional programs � ARM, CSP and CPCU � also are offered at the center.

For an academic degree, the Department of Information, Risk and Operations Management offers three disciplines: information management, operations management and risk. The Department of Mathematics also offers a a degree in actuarial science.

9. University of Illinois, Urbana-Champaign

Champaign, Ill.

In-state tuition and fees: $15,626.

Out-of-state tuition and fees: $30,786.

Enrollment: 32,959.

2014 rank: 8.

Students can earn a degree in finance with an emphasis in insurance and risk management.

The RMI program includes traditional classroom lectures and hands-on projects, and students are exposed to industry and government leaders in the field through guest lectures and internships at companies, including Allstate, A.J. Gallagher, Northwestern Mutual and State Farm.

Students also are involved with the University's Office of Risk Management and Insurance Research, wich allows corporate partners to help identify and design the dreiction of critical issues.

(Photo: Shutterstock)

8. New York University

New York City

Tuition and fees: $46,170.

Enrollment: 24,985.

2014 rank: 6 (tie).

Students can earn an undergraduate degree in actuarial science at the university's Stern School of Business.

Students take courses in probability, statistics, financial mathematics, actuarial mathematics, finance, marketing, accounting, management and information technology.

The program at Stern prepares students to take the first three examinations jointly offered by the Society of Actuaries and the Casualty Actuarial Society, and satisfy the three validation by educational experience areas of economics, finance and applied statistical methods.

The Stern School of Business has a student-run Actuarial Society, which offers seminars and meetings. Graduate students can obtain a certficiate in Enterprise Risk Management as part of the School of Professional Studies.

(Photo: Shutterstock)

7. Florida State University

Tallahassee, Fla.

In-state tuition and fees: $6,507.

Out-of-state tuition and fees: $21,673.

Enrollment: 32,948.

2014 rank: 6 (tie).

The undergraduate major in Risk Management and Insurance was established at Florida State University in the 1940s, as part of the Department of Risk Management/Insurance, Real Estate and Legal Studies.

The department holds "Insurance Days," its own two-day placement program for RMI majors focusing on internships and full-time jobs. Students also can �fast-track� many training programs in their degree, and can join the Florida State Insurance Society for the opportunity to interact with faculty and business leaders outside of the classroom.

Famous alumni include Dr. William T. Hold, a 1963 graduate who went on to found the National Alliance for Insurance Education & Research.

6. Georgia State University

Atlanta

In-state tuition and fees: $10,686.

Out-of-state tuition and fees: $28,896.

Enrollment: 25,315.

2014 rank: 5.

U.S. News & World Report has ranked the school's undergraduate insurance program among the nation�s top 10 since 1999.

The Department of Risk Management & Insurance takes a broad look at the industry, offering a curriculum that includes financial concepts in all markets where risk trades.

The program has one of the largest full-time research faculties in the world devoted to the subject, who publish more than 20 articles annually in trade journals. Faculty and students are aided in their studies with the school�s two research centers: the Center for Risk Management and Insurance Research and the Center for Economic Analysis of Risk.

(Photo: Shutterstock)

5. Temple University

Philadelphia

In-state tuition and fees: $15,096.

Out-of-state tuition and fees: $25,122.

Enrollment: 28,287.

2014 rank: 4.

The Fox School of Business�s Department of Risk, Insurance & Healthcare Management offers degrees in risk management and insurance, actuarial science and healthcare management, and has about 300 undergraduate and graduate students. Students are active in the Sigma chapter of Gamma Iota Sigma.

(Photo: Shutterstock)

4. University of Wisconsin, Madison

In-state tuition and fees: $10,415.

Out-of-state tuition and fees: $29,665.

Enrollment: 31,289.

2014 rank: 3.

In the school of business, the department of Actuarial Science, Risk Managment & Insurance offers undergraduate degrees in both actuarial science and risk management and insurance, and an MBA in risk management and insurance.

Founded in 1938, the RMI program is the second oldest of its kind in the United States. Each fall, the department hosts a career fair that attracts nearly 50 companies, where both full-time and internships are offered.

The school�s Risk Management and Insurance Society is the oldest collegiate risk management society in the country, and its RMI network has more than 2,200 alumni. The program graduates about 60 students a year.

The school is a nationally recognized Center of Actuarial Excellence, and has received grants to support industry-related research topics.

3. St. Joseph�s University

Philadelphia

Tuition and fees: $42,180.

Enrollment: 5,512.

2014 rank: 9 (tie).

Making the largest gain in rank than any other school, the Risk Management and Insurance major at St. Joseph's gives finance students an understanding of policies, pricing and underwriting.

Students also can obtain a bachelor's degree of Business Administration in Risk Management and Insurance through the Haub Degree Completion program. Students can join the college�s chapter of Gamma Iota Sigma to connect with educators, students and representatives in the industry.

2. University of Georgia

Athens, Ga.

In-state tuition and fees: $11,622.

Out-of-state tuition and fees: $29,832.

Enrollment: 26,882.

2014 rank: 1.

The Terry College�s Risk Management-Insurance program traces its beginnings to 1965.

In order to be accepted into the program, students must take a standardized, multiple-choice assessment of acadmeic skills, maintain grades in certain economics, accounting and risk management courses, and write a statement of purpose.

The program�s annual Risk and Insurance Careers Day attracts more than 50 employers. The curriculum includes commercial property and liability insurance, employee benefits, insurer operations and policy, corporate risk management, life insurance and other courses.

(Photo: Shutterstock)

1. University of Pennsylvania

Philadelphia

Tuition and fees: $49,536.

Enrollment: 9,746.

2014 rank: 2.

The Wharton School at the University of Pennsylvania offers an undergraduate Insurance & Risk Management concentration and also an actuarial science concentration as part of its Business Economics and Public Policy program, where students examine the techniques useful to corporations, organizations and individuals in minimizing the potential financial losses arising from risk exposures. The program covers global risk management, regulation, estate planning and related public policy initiatives.

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VIPKID is venture backed by top investors,
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Life Insurance for a Family of One

We spend a lot of time talking about how couples, families and businesses can protect their financial futures with life insurance. But what about if you are single�do you need life insurance, too?

There are those people who have no children, no one depending on their income, no ongoing financial obligations and sufficient cash to cover their final expenses. But how many of those people do you really know? And, more importantly, are you one of them?

I think it�s important, then, to illustrate how a life insurance purchase can be a smart financial move for someone who is single with no children. Asking yourself these three questions can help you get at the heart of the matter:

• Do you provide financial support for aging parents or siblings?
• Do you have substantial debt you wouldn�t want to pass on to surviving family members if you were to die prematurely?
• Did family members pay for your education?

Don�t Take My Word for It

Life insurance is an excellent way to address these obligations, and in the case of tuition, reimburse family members for their support. But don�t just take my word for it. Instead, �do your own math.� This Life Insurance Needs Calculator can help you quickly understand if there is a need�a need you might not be aware of�that could be easily addressed with life insurance.

The most important reason for you to consider life insurance may be the peace of mind you�ll have.

In addition to addressing any financial obligations you might have, the current economic climate has made permanent life insurance an attractive means to help you build a secure long-term rate of return for safe money assets. The cash value in traditional life insurance can provide you with money for opportunities, emergencies and even retirement.

For young singles, keep in mind that you have youth on your side. I don�t mean to sound trite. Instead, I�d like you to think about the fact that purchasing life insurance is very affordable when you�re young and allows you to protect your insurability for when there is a future need�perhaps, in time, a spouse and children.

While all of these reasons are valid, the most important reason for you to consider life insurance may be the peace of mind you�ll have knowing that your financial obligations will be taken care of should anything happen.

3 Questions to Ask When It Comes to Life Insurance

Your life insurance needs will ebb and flow throughout your lifetime. Buying a term policy early in your career or taking a basic employer-issued life insurance policy is a common course of action.

However, deciding how much and what type of life insurance you need at each stage of your life will serve you and your loved ones much better.

One simple thing to keep in mind throughout this process is that the more responsibility you have, the more life insurance you need. Here are a few questions to consider:

1. Who depends on me?

Of course, if you have children, a term life insurance policy that is large enough to pay off your home and debts with some money left over to support your family while your spouse or partner grieves and recalibrates the new financial situation is the option that gives everyone peace of mind.
Many times, it�s easy to overlook the other people who depend on you. The care of elderly parents or grandparents, siblings, or people in your family with special needs should also be considered carefully when deciding how much basic life insurance to buy. You can also get a working idea of how much you might need with this Life Insurance Needs Calculator.

2. How much insurance can I afford?

A term life insurance policy that covers the care of your loved ones in the event of your untimely death is an inexpensive option, if you are under 40 and in reasonably good health.

Permanent life insurance insurance is worth researching if you know you have a permanent need for life insurance, such as caring for a special needs child or sibling. It also makes sense if you�d like certain benefits beyond a guaranteed death benefit for your loved ones, like premiums that do not increase with age or changing health conditions, and a cash value that you can borrow against.

If you can afford the additional premium amount and expect your financial situation and income to remain stable long-term, whole life insurance policies offer living benefits that may outweigh the temporary pain of higher premiums.

3. How healthy am I?

People in great health who have only a little bit of wiggle room in their monthly budget may want to consider a combination of term and permanent life insurance coverage.

Your clean bill of health will keep premiums for both types of insurance lower than if you have major health issues. If you have a term life insurance policy but want more coverage, adding a permanent policy to the mix may be the ideal answer.

By adding a permanent policy with a cash-value element to your portfolio, you also open a world of options that could help add to your nest egg in retirement, start a business, or pursue a second career, among other benefits.

It is possible to have multiple policies and customize your life insurance to your changing wants and needs. Choosing a policy or combination of policies that gives you and your family the greatest potential benefit may seem tricky. So, simplifying the process by asking these three questions will set you on the right track.

The Risk of Being Uninsured (and the Hidden Bargain in Addressing It Now)

With all the expenses of everyday living, it�s tempting to think of insurance as just another cost. What�s harder to see is the potential cost of not buying insurance�or what�s known as �self-insuring��and the hidden bargain of coverage.

The Important vs. the Urgent 

We�ve all experienced it: the tendency to stay focused on putting out fires, while never getting ahead on the things that really matter in the long run. For most people, there are two big things that matter in the long run: their families and their ability to retire. And being properly insured is important to both those concerns.

Life Insurance: a Hidden Bargain? 

It�s exceedingly rare, but we all know it can happen: someone�s unexpected death. Life insurance can prevent financial catastrophe for the loved ones left behind, if they depend on you for income or primary care�or both.
The irony is that many people pass on coverage due to perceived cost, when in fact it�s far less expensive that most people think. The 2016 Insurance Barometer Study, by Life Happens and LIMRA showed that 8 in 10 people overestimate the cost of life insurance. For instance, a healthy, 30-year-old man can purchase a 20-year, $250,000 term life insurance policy for $160 a year�about $13 a month.

Enjoy the Benefits of Life Insurance�While You�re Alive 

If budget pressures aren�t an issue, consider the living benefits of permanent life insurance�that�s right, benefits you can use during your own lifetime.

Permanent life insurance policies typically have a higher premium than term life insurance policies in the early years. But unlike term insurance, it provides lifelong protection and the ability to accumulate cash value on a tax-deferred basis.

Cash values can be used in the future for any purpose you wish. If you like, you can borrow cash value for a down payment on a home, to help pay for your children�s education or to provide income for your retirement.

When you borrow money from a permanent insurance policy, you�re using the policy�s cash value as collateral and the borrowing rates tend to be relatively low. And unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions. You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit and cash-surrender value.

In this way, life insurance can serve as a powerful financial cushion for you and your family throughout your life, in addition to protecting your family from day one.

Disability Insurance: For the Biggest Risk of All 

The most overlooked of the major types of insurance coverage is the one that actually covers a far more common risk�the risk of becoming ill or injured and being unable to work and earn your paycheck.

How common is it? While no one knows the exact numbers, it�s estimated that 30% of American workers will become disabled for 90 days or more during their working years. The sad reality is that most American workers also cannot afford such an event. In fact, illness and injury are the top reasons for foreclosures and bankruptcies in the U.S. today. Disability insurance ensures that if you are unable to work because of illness or injury, you will continue to receive an income and make ends meet until you�re able to return to work.

It�s tempting to cross your fingers and hope misfortune skips over you. But when you look at the facts, it�s easy to see: getting proper coverage against life�s risks is not just important, but a bargain in disguise.

Separating Fact From Fiction When It Comes to Long-Term Care Insurance

Few people are prepared to handle the financial burden of long-term health care.

In fact, many people have a false sense of security when it comes to long-term care. Let�s separate fact from fiction:

�Medicare and my Medicare supplement policy will cover it.�

FACTS:

• Medicare and �Medigap� insurance was never intended to pay for ongoing, long-term care. Only about 12% of nursing home costs are paid by Medicare, for short-term skilled nursing home care following hospitalization. (Source: Guide to Long-Term Care Insurance, AHIP, 2013)
• Medicare and most health insurance plans, including Medicare supplement policies, do not pay for long-term custodial care. (Source: 2017 Medicare & You, Centers for Medicare & Medicaid Services)

�It won�t happen to me.�
FACTS:

• Almost 70% of people turning age 65 will need long term care services and supports at some point in their lives. (Source: LongTermCare.gov, November 2016)
• About 67% of nursing home residents and 70% of assisted living residents are women. (Source: Long-Term Care Providers and Services Users in the United States, February 2016, National Center for Health Statistics)

�I can afford it.�

FACTS:

• As a national average, a year in a nursing home is currently estimated to cost about $92,000. In some areas, it can easily cost well over $110,000! (Source: Genworth 2016 Cost of Care Survey, April 2016)
• The average length of a nursing home stay is 835 days. (Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last updated May 2014)
• The national average cost of a one bedroom in an assisted living facility in the U.S. was $43,539 per year in 2016. (Source: Genworth 2016 Cost of Care Survey, April 2016)
• Home health care is less expensive, but it still adds up. In 2016, the national average hourly rate for licensed home health aides was $20. Bringing an aide into your home for 20 hours a week can easily cost over $1,600 each month, or almost $20,000 a year. (Source: Genworth 2016 Cost of Care Survey, April 2016)

�If I can�t afford it, I�ll go on Medicaid.�

FACTS:

• Medicaid, or welfare assistance, has many �strings� attached and is only available to people who meet federal poverty guidelines. 

Whether purchased for yourself, your spouse or for an aging parent, long-term care insurance can help protect assets accumulated over a lifetime from the ravages of long-term care costs.

I Have Life Insurance Through My Employer. Why Do I Need Another Policy

One of the perks of having a full-time job with a good company is the benefits package that comes with it. Often, those benefits include life insurance coverage, which is great. And everyone who can get life insurance at work should definitely take it, as there are many advantages to company-funded life insurance, also known as group life insurance. These advantages include:

1. Easy qualification. Often, enrollment into group life insurance is automatic. That means everyone qualifies, as there is no medical exam required. So people who have preexisting health conditions, like diabetes or previous heart attack, can get life insurance at work, and may get a better rate compared with what an individual life insurance policy might cost them.

2. Lower costs. Employers� insurance plans tend to be paid for or subsidized by the company, giving you life insurance at a low cost or even free. You may even have the option to buy additional coverage at low rates. Costs tend to be lower for many people because with group plans, the cost per individual goes down as the plan enlarges.

3. Convenience. It�s easy to subscribe to an employer�s life insurance plan without much effort on your part and if a payment is required, it�s easily deducted from your paycheck in much the same way as your medical costs are deducted.

These are all great advantages, but are these the only considerations that matter when it comes to life insurance? The answer, of course, is no.

Life insurance should first and foremost fit the purpose�it should meet your needs.

Life insurance should first and foremost fit the purpose�it should meet your needs. And the primary purpose of life insurance is to care for those left behind in the event of your death. With group life insurance, it�s often set at one or two times your annual salary, or a default amount such as $25,000 or $50,000. While this sounds like a lot of money, just think of how long that would last your loved ones. What would they do once that ran out?

There are several other disadvantages to relying on group insurance alone:

1. If your job situation changes, you�ll lose your coverage. Whether the change results from being laid off, moving from full-time to part-time status or leaving the job, in most cases, an employee can�t retain their policy when they leave their job.

2. Coverage may end when you retire or reach a specific age. Many people tend to lose their insurance coverage when they continue working past a specified age or when they retire. This means losing your insurance when you need it most.

3. Your employer can change or terminate the coverage. And that can be without your consent, since the contract is between your employer and the insurer.

4. Your options are limited. This type of coverage is not tailored to your specific needs. Furthermore, you may not be able to buy as much coverage as you need, leaving you exposed.

Importance of Buying a Separate Life Insurance Policy

It�s for these reasons you should get an individual life insurance policy that you personally own, in addtion to any group life insurance you have. Individual life insurance plans offer superior benefits, and regardless of your employer or employment status, they remain in place and can be tailored to meet your needs and circumstances.

Most importantly, an individual life insurance policy will fit the purpose for which you purchase it�to ensure your dependents continue to have the financial means to keep their home and lifestyle in the unfortunate event that you�re no longer there to care for them.

5 Things Millennials Need to Know About Life Insurance

Being catapulted into the adult world is a shock to the system, regardless of how prepared you think you are. And these days, it�s more complicated than ever, with internet access and mobile devices being must-have utilities and navigating tax forms when they aren�t as �EZ� as they used to be.

Maybe you�re still living with your folks while you get established. Or maybe you�re looking forward to moving out of a rental and into a house or to tie the knot. Life insurance might be the last thing on your list of things to deal with or even think about. (You�re not alone.) But here are five things you might not know about life insurance�that you probably should.

1. Life insurance is a form of protection. If you Google �life insurance� you�ll get a slew of ads telling you how cheap life insurance can be, without nearly enough information about what you need it for. That�s probably because it�s not terribly pleasant to think about: this idea that we could die and someone we care about might suffer financially as a result. Life insurance provides a financial buffer for the people you care about in the event something happens to you. Think just because you�re single, nobody would be left in the lurch? Read the next point.

2. College debt may not go away. Did someone�like your parents�co-sign your student loans through the bank? If so, the bank won�t discharge that debt upon your death the way that the federal government would with federal student loans. That means your parents, or others who signed the paperwork, would be responsible for paying the full balance�sometimes immediately. Don�t saddle them with the bill!

3. If you don�t know anything about life insurance, it�s probably better if you don�t buy it off the internet. It�s what we�re used to: You find the thing you need or love on Amazon or Ebay or Etsy, click a few buttons, and POOF. It arrives at your door. But life insurance is a financial planning product, and while it can be as simple as a 20-year term policy for less than a cup of coffee each day (for real!), going through your options with an insurance professional can ensure that you get the right amount for the right amount of time and at a price that fits into your budget. And many people don�t know that an agent will sit down and help you out at no cost.

4. Social fundraising only goes so far. This relatively recent phenomenon has everyone thinking that they�ll just turn to GoFundMe if things go awry in their lives. But does any grieving person want to spend time administering a social fundraising site? The chances of going viral are markedly slim, and social fundraising sites will take their cut, as will the IRS. And there is absolutely no guarantee about how much�if any�money will be raised.

5. The best time is now. You�ll definitely never be younger than you are today, and for most of us, the younger we are the healthier we are. Those are two of the most important factors for getting affordable life insurance coverage. So don�t delay. And if you don�t have an agent, you can also use our Agent Locator. The key is taking that first step.