Is Term Life Insurance for You?

WEEKLY EDUCATIONAL UPDATE - MAY 15, 2019

In This Issue

Quote Of The Week

Term insurance is the simplest form of life insurance. It provides temporary life insurance protection on a limited budget.[1] Here's how it works:

When policyholders buy term insurance, they buy coverage for a specific period and pay a specific price for that coverage.

If the policyholder dies during that time, their beneficiaries receive the benefit from the policy. If they outlive the term of the policy, it is no longer in effect. The person would have to reapply to receive any future benefit.

Unlike permanent insurance, term insurance only pays a death benefit. That's one of the reasons term insurance tends to be less expensive than permanent insurance.

Many find term life insurance useful for covering specific financial responsibilities if they were to die unexpectedly. Term life insurance is often used to provide funds to cover:

Dependent care
College education for dependents
Mortgages

Would term life insurance be the best coverage for you and your family? That depends on your unique goals, needs, and circumstances. You may want to carefully examine the pros and cons of each type of life insurance before deciding what type of policy will be the best fit for you.

Another factor to think about: term policies generally become more expensive as you grow older. If your term life insurance expires and you are facing certain health challenges, such as an injury or disease, you may find that a policy with similar coverage may be much more expensive.

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

"You don't become what you want, you become what you believe."

- Oprah Winfrey

Garlicky Dill Pickles

Yields 10 to 12 pickles

Ingredients:

2 lbs. small pickling cucumbers
1½ cups apple cider vinegar
1½ cups filtered water
2 Tbsp. pickling salt
8 garlic cloves, peeled (add more if you'd like)
4 tsp. dill seed
2 tsp. black peppercorns
1 tsp. red chili flakes

Directions:

Be sure that your jars are washed thoroughly. To make shelf-stable pickles, prepare a boiling water bath canner. Put fresh canning jar lids into a small saucepan with 3 inches of water and set to the lowest simmer.
Prepare the cucumbers by washing and drying them, then remove the blossom end. Depending on the shape of pickle you want, cut the cucumbers into slices for chips, quarters for spears, or leave whole.
Bring the vinegar, water, and salt to a boil in a saucepan.
Distribute equal portions of the garlic cloves, dill seed, black peppercorns, and red chili flakes among the readied jars. Arrange the cucumbers into the jars as tightly as possible but try not to crush them.
Pour the brine into the jars, leaving ¼ inch between the top of the liquid and the rim of the jar. Gently tap the jars to remove any air bubbles. You can also use a long kitchen utensil, like a chopstick, to let any bubbles escape. Wipe the rims of the jars, then put the lids and bands on the jars without screwing on too tightly.
If you're processing jars for shelf stability, put them into the processing pot. Once the water returns to a boil, set a timer for 10 minutes, then remove the jars after the time is up. Check the seals once the jars are cool enough to handle.
If you're not processing your jars, then allow them to cool before putting them into the refrigerator. Your jars may seal during the cooling process.
The pickles need to rest in the fridge for one week before serving.

Recipe adapted from Serious Eats [2]

Tax Facts About Renting Out Residential Property

For individuals who rent out their residential property for income, there are different tax rules that apply based on whether they used the property as a residence at any time over the course of the year.

Residential rental property may include a single house, condominium, apartment, mobile home, vacation home, or similar property. These properties are often referred to as dwellings. Taxpayers renting the property can use more than one dwelling as a residence during the year. Using a dwelling for personal purposes for more than the greater of 14 days or 10 percent of the total days rented to others at a fair rental value is considered a residence. Personal use includes:

Any person who owns an interest in the property or a family member of such person
Anyone who has an arrangement that lets the owner use some other dwelling
Anyone using the property at less than fair rental value

Personal use does not include days for repair and maintenance if the work is being done on a largely full-time basis.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov[3]

The Dreaded Dogleg

A dogleg is a hole that bends at some point along its length, like the hind leg of a dog. A common mental block among golfers is how best to play a dogleg hole with real trouble on either side of the fairway.

Since the ball tails off to the right for most of golfers, it doesn't make much sense for one to stand on the tee box of a dogleg-left hole and try to curve their drive in that direction. Instead, try thinking of how to play the hole to the best of your ability.

Tip adapted from Golf Digest [4]

Gratitude is the Attitude

It's hard to be anything else when you are in an attitude of gratitude. A grateful mindset is an instant way to get positive and feel better. But just how do you do that? Here are some great tips to start now:

Make a commitment to gratitude. This is a daily practice; one you can do at the end of each day. Compile a gratitude list of all the positive things to be grateful for.
Pay attention to your thoughts. Have a mindset of gratitude. Notice if your mind wants to be negative or judgmental. That's okay. Gently guide it back to grateful.
Help others. There are always others who are less fortunate. Giving, whether it is your time, service, or a financial donation, feels good and shares your abundance. Living in abundance is a flow, an ability to give and receive.

Tip adapted from Lifehack [5]

Ways to Save Energy at Home

There are a lot of ways to save energy at home, including a few you might not have thought of. Here are a few energy saving tips that are different and doable:

Energy-efficient landscaping: Plan where you place shade trees around the house, and you could save between $100 and $250, annually.

Duct check: To avoid wasting energy, have your ducts inspected to ensure they're sealed properly and insulated if necessary.

In hot water: Turn down the temperature of your water heater to the warm setting (120°F) and save energy.

Cook small: Use your microwave, toaster oven, or grill appliance rather than the oven. You'll use less energy and avoid excess heat that increases room temperature.

Use a power strip: Leaving a computer on all day can cost about 21 cents per day or about $75 per year. Plug your computer, printer, and other home office items into a multiple-outlet strip, which can turn everything off with the flip of a switch.

Tip adapted from Energy.gov[6]

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[1] www.nbcnews.com/better/pop-culture/how-much-life-insurance-do-i-need-ncna935811

[2] www.seriouseats.com/recipes/2011/08/garlic-dill-pickles.html

[3] www.irs.gov/newsroom/know-the-tax-facts-about-renting-out-residential-property

[4] www.golfdigest.com/story/strategy-for-doglegs

[5] www.lifehack.org/articles/communication/10-tips-more-grateful-life.html

[6] www.energy.gov/articles/top-11-things-you-didnt-know-about-saving-energy-home-summer-edition

Eric Meushaw
Financial Foundations, Inc
602 Center Street #105
Mount Airy, MD 21771
301-829-8610
[email protected]
http://www.financialfoundationsinc.com