Debt Free Life | Insurance Your Way (2024)

FAQs

How does the debt Free 4 life Program work? ›

Through the Debt-Free 4 Life™ program, Jason and his team create plans for clients based on real-life numbers, existing income, budget, and bills. By understanding client lifestyles and current financial situations, they collaborate and provide road maps to debt freedom while creating a nest egg to borrow from.

Adopting a debt-free lifestyle could be your way out. While a debt-free lifestyle often requires sacrifices, the payoff is that you'll be able to stop living paycheque to paycheque. Below, I'll outline some of the enormous benefits of changing your mindset towards money and adopting a new debt-free lifestyle.

Is it worth it? In almost all cases, you probably do need life insurance. Other than those rare and awesome situations where someone has finished off the Baby Steps and become both debt-free and self-insured, most people need to have a life insurance policy in place.

Term coverage from a life insurance company is usually more affordable than credit life insurance for the same coverage amount. Moreover, credit life insurance drops in value over the course of the policy, since it only covers the outstanding balance on the loan.

Debt settlement cons

Debt settlement companies can charge fees. The creditor may require you to close the account, which will result in losing access to that credit line. The amount of forgiven debt may be considered taxable income by the IRS, so there may be tax implications.

Generally, yes; most types of debt relief companies charge some type of fee, although some options are free. Here's a quick rundown of the costs you can expect, according to Investopedia research: Debt settlement companies: Typically 14% to 30% of your debt.

Achieving and maintaining a debt-free lifestyle requires sacrifices, such as cutting back on non-essential expenses or delaying major purchases. This can sometimes mean missing out on experiences or opportunities that might benefit the family in other ways.

A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.

How much life insurance do I need at age 55? ›

What is the rule of thumb on how much life insurance coverage you need? Consider getting up to 30X your income between the ages of 18 and 40; 20X income at age 41-50; 15X income at age 51-60; and 10X income for age 61-65.

At What Age Is Life Insurance No Longer Needed? Life insurance is no longer needed for many people once they reach their 60s or 70s. At this point they have retired, their kids have grown up, and they've paid off their mortgage and other debts.

Term insurance is initially cheaper than other types of policies that offer the same amount of protection. Therefore, it gives you the greatest immediate coverage per dollar.

Potential Drawbacks of Credit Life Insurance

Premiums can be more expensive than regular life insurance: Since credit life insurance doesn't require a medical exam, the coverage could be more costly than traditional life insurance. If you're in good health, you might pay less by buying your own life insurance policy.

Is there an age limit for credit life insurance? There's no set (or industry-wide) rule regarding age limits. Before signing up for a credit life policy, though, check the fine print for any age-related rules. For example, some policies end when a borrower reaches age 70.

Freedom Debt Relief provides a debt settlement program for people grappling with unaffordable debt. Staffers negotiate with creditors to settle debts for less than the total amount owed. Clients only pay a fee after Freedom Debt Relief successfully negotiates a settlement they agree to.

Debt relief refers to measures to reduce or refinance debt to make it easier for the borrower to repay it. Options for debt relief include forgiving a portion of the debt, lowering the interest rate, stretching payments over a longer period, or consolidating multiple debts into a single, lower-interest one.

Debt consolidation works by merging all of your debt into one loan. Depending on the terms of your new loan, it could help you get a lower monthly payment, pay off your debt sooner, increase your credit score or simplify your financial life.