getting a job http://www.wisebread.com/taxonomy/term/12538/all en-US New Breadwinner in the Household: How Does This Affect Life Insurance? http://www.wisebread.com/new-breadwinner-in-the-household-how-does-this-affect-life-insurance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/new-breadwinner-in-the-household-how-does-this-affect-life-insurance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/financial-planning-family-meeting-605.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>In the current economy, many households are changing primary breadwinners. For example, after a stint as a stay-at-home parent, your husband decides to reenter the workforce. When he lands a job, your finances, day-to-day arrangements, and lifestyle may become very different.</p> <p>After such a change in circumstances, you might wonder &mdash; should there also be a change in your life insurance policies? What factors influence these decisions? And what courses of action make the most sense for your household?</p> <h3>Factors That Influence Life Insurance</h3> <p>You may have heard that coverage should be a certain multiple of your annual salary because life insurance is purchased as a form of income replacement after death. But there are many factors that can influence the amount of insurance needed, if any, when there is a new breadwinner in the household. These include the following.</p> <p><strong>Children</strong></p> <p>As a family grows, financial obligations increase. No matter how thrifty you are, there are extra expenses associated with food, medical and dental care, clothing, and education for each child. And if a parent dies when children are young, the survivor may need to spend more than expected on childcare, grocery convenience foods, etc., especially if he returns to full-time work.</p> <p>When children grow and become independent, however, a parent&rsquo;s financial support diminishes and disappears. Exceptions include special-needs children, who may not be able to provide for themselves in adulthood.</p> <p><strong>Debt </strong></p> <p>We typically think of mortgage debt as a large expense that could be eliminated with a life insurance policy in the event of a breadwinner&rsquo;s death. But all debt obligations, such as student loans, credit card debt, and auto loans, should be figured when calculating obligations.</p> <p>And, though you shouldn&rsquo;t insure for debt possibilities that have not yet materialized, a new job might mean a bigger mortgage if you move to a larger home, a more desirable school district, or a location closer to your workplace. Similarly, you may take out an auto loan if a more reliable form of transportation is required. Don&rsquo;t forget imminent debt when you evaluate needs.</p> <p><strong>Assets</strong>&nbsp;</p> <p>Your assets can influence needs for coverage. For example, if you have a mortgage-free home, fully loaded 529 plans, and large retirement accounts, then you&rsquo;ll have income from investments&nbsp;and relatively low expenses in the future. You may not need an insurance payout to remain in your home or send the kids to college. On the other hand, if the breadwinner dies during an economic downturn, then cash from a death benefit could help you to avoid selling assets at depressed values.</p> <p><strong>Economic Value of Non-Working Spouse</strong></p> <p>The value of a non-working spouse and/or stay-at-home parent is immeasurable. The direct economic worth can be measured in terms of services and products that you may have to buy if your partner was no longer around. These will vary from household to household but would generally include costs associated with childcare, food preparation, and cleaning. Less quantifiable measures are family support, companionship, and guidance about family issues, school concerns, and career decisions that may come from a life partner.</p> <p><strong>Current Insurance Coverage</strong></p> <p>Consider existing coverage amounts as well as policy terms and premiums. Also think about whether a policy is sponsored by your employer.</p> <h3>Solutions for Changes in Circumstances</h3> <p>When undergoing a major financial change like having a new breadwinner in the household, you should focus on getting adequate coverage based on well-defined needs.</p> <p>Matching specific needs with policy amounts and terms is the strategy advocated by Tony Steuer, CLU, LA, CPFFE and Director of Financial Preparedness for <a href="http://www.uphelp.org/">United Policyholders</a>. Getting more insurance coverage as financial obligations grow is the approach suggested by <a href="http://jeffrosefinancial.com/">Jeff Rose, CFP</a>; he cautions against becoming insurance poor but sees that <a href="http://www.goodfinancialcents.com/life-insurance-movement/">many people are not covered adequately</a>. Here are some specific tactics recommended by these experts for ensuring that you have proper coverage.</p> <p><strong>Get Coverage for Both Spouses, Period</strong></p> <p>Tony and Jeff recommend coverage for both spouses, largely independent of breadwinning status. In fact, Jeff tells me that he recently worked with a couple to obtain identical coverage in two separate policies for a husband and wife despite a large income disparity.</p> <p>Look at all aspects of your needs, including the value of a supporting role, when you have a new breadwinner in the household.</p> <p><strong>Obtain Insurance Not Linked to Your Employer</strong></p> <p>Jeff says that an overwhelming number of people have employer-based policies only. They may be unaware that company coverage is typically not portable, unlike a 401(k) or Health Savings Account. Relying on an employer policy for coverage is risky, given the frequency that you may change jobs over a 30- or 40-year career.</p> <p>A change in status may prompt you to purchase coverage from a third party, separate from that provided by employers. &nbsp;</p> <p><strong>Buy Multiple Policies</strong></p> <p>Tony recommends a laddering strategy in which specific needs and time frames are matched with policy amounts and terms. For example, if you have a 5-year-old and 15-year-old, you may want to purchase a 20-year level term policy to cover educational expenses for the younger child and a 10-year level term policy for the older one.</p> <p>Jeff also sees value in obtaining multiple policies for flexibility&rsquo;s sake. As circumstances change, you can make adjustments and purchase more coverage. If life insurance costs begin overwhelming your budget, you can drop one of the policies but still maintain coverage with the others.</p> <p><strong>Consult an Expert</strong></p> <p>Determine whether changes in breadwinning status will affect your insurance requirements and take appropriate action, consulting with an expert as needed. Document specific areas of concern as you consider your unique situation. You might note educational expenses for children with learning disabilities or a demanding business travel schedule that places greater value on a stay-at-home or work-at-home parent. This evaluation will help you to articulate why you are requesting coverage and make adjustments throughout your career and lifetime when circumstances change yet again.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/julie-rains">Julie Rains</a> of <a href="http://www.wisebread.com/new-breadwinner-in-the-household-how-does-this-affect-life-insurance">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-kinds-of-insurance-that-arent-worth-it-and-what-to-do-instead">6 Kinds of Insurance That Aren&#039;t Worth It -- And What to Do Instead</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/not-insuring-these-6-things-could-bankrupt-you">Not Insuring These 6 Things Could Bankrupt You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-do-i-need-to-know-before-i-hire-a-cfp">What Do I Need to Know Before I Hire a CFP?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/meet-wise-breads-financial-planning-expert-jeff-rose-cfp">Meet Wise Bread&#039;s Financial Planning Expert, Jeff Rose, CFP!</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-long-does-it-take-to-get-life-insurance">How Long Does It Take to Get Life Insurance?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Insurance getting a job life insurance Thu, 13 Dec 2012 12:55:01 +0000 Julie Rains 959765 at http://www.wisebread.com 25 Signs That You've Been at the Same Job Too Long http://www.wisebread.com/25-signs-that-youve-been-at-the-same-job-too-long <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/25-signs-that-youve-been-at-the-same-job-too-long" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/3237482009_4106372473_z.jpg" alt="office stapler" title="office stapler" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>We live in an age of short attention spans, low patience, instant gratification, and unrealistic expectations. Duration of employment is at an all-time low, and most of us don't make it past the two-year mark, on average. That being said, we've surely been around the guy or gal who has simply just been around too long. And just maybe, that guy or gal is you! (See also: <a href="http://www.wisebread.com/10-important-signs-that-your-job-sucks" title="10 Important Signs That Your Job Sucks">10 Important Signs That Your Job Sucks</a>)</p> <p>That's right, without realizing it, there might be signs that you've reached the limit on your current job, and it might be time to consider an employer or a <a href="http://20somethingfinance.com/should-you-tell-your-employer-you-are-changing-careers/">career change</a>. What follows are some warning signs that the writing is on the wall (all meant to be humorous, but some might be painfully true):</p> <ol> <li>You start to refer to all new hires as &quot;pups&quot; and &quot;spring chickens.&quot;<br /> &nbsp;</li> <li>You play office trivia at lunch with other tenured folk just to make the &quot;pups&quot; and &quot;spring chickens&quot; feel out of place.<br /> &nbsp;</li> <li>They ran out of clever title changes to make you feel special about doing the same work.<br /> &nbsp;</li> <li>You start getting plaques for how long you've been around.<br /> &nbsp;</li> <li>They start naming plants around the office after you as some sort of twisted memorial.<br /> &nbsp;</li> <li>You stop caring that last night's leftover fish that you're microwaving for lunch stinks up the entire break room.<br /> &nbsp;</li> <li>You work in a company of thousands of people, you have a common first name, and your email alias is your first name.<br /> &nbsp;</li> <li>You bring up the &quot;office softball game from 10 years ago,&quot; only to sadly realize mid-thought that nobody you're talking to was even there 10 years ago.<br /> &nbsp;</li> <li>HR has to tell you to &quot;use or lose&quot; your <a href="http://www.wisebread.com/america-is-the-no-vacation-nation" title="America Is the No Vacation Nation">vacation days</a>.<br /> &nbsp;</li> <li>You know everyone's kids' names, and remember them.<br /> &nbsp;</li> <li>You only stick around for the sole purpose of getting drunk and making an ass out of yourself at the annual Holiday party.<br /> &nbsp;</li> <li>You're the only person the IT guy completely avoids because he's scared of you.<br /> &nbsp;</li> <li>There are empty liquor bottles in your cubicle...and you just don't care.<br /> &nbsp;</li> <li>You can't remember when you didn't spend an hour a day at watching YouTube videos at work.<br /> &nbsp;</li> <li>You reminisce about the '80s all the time, only to painfully realize later that most of the people you work with were actually born in the late '80s.<br /> &nbsp;</li> <li>Your boss is younger than you. Yeah....<br /> &nbsp;</li> <li>You remember actually cashing a paycheck from the same employer.<br /> &nbsp;</li> <li>You get nostalgic about how things used to be...and those things used to really suck back then.<br /> &nbsp;</li> <li>You are grandfathered in to an actual <a href="http://20somethingfinance.com/pensions-vs-401ks-why-you-should-care-that-pensions-are-going-extinct/">pension</a>. Man, those were nice.<br /> &nbsp;</li> <li>You tell your boss about a job offer you received and they just laugh.<br /> &nbsp;</li> <li>Business casual now means jeans and a polo shirt.<br /> &nbsp;</li> <li>You brought your kid to work on &quot;bring your kid to work day&quot; when they started school but they couldn't make this year's because they have their own job now.<br /> &nbsp;</li> <li>You reference a scene in Office Space, comparing it to your job, at least once a week.<br /> &nbsp;</li> <li>You stop getting performance reviews because your boss ran out of BS suggestions for &quot;areas to improve.&quot;<br /> &nbsp;</li> <li>9-to-5 literally means 9-to-5.</li> </ol> <p><em>What are some other painfully humorous revelations you've had that told you you've simply been around too long?<br /> </em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ge-miller">G.E. Miller</a> of <a href="http://www.wisebread.com/25-signs-that-youve-been-at-the-same-job-too-long">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-important-signs-that-your-job-sucks">10 Important Signs That Your Job Sucks</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-warning-signs-that-it-is-not-the-job-for-you">6 Warning Signs that It Is Not the Job for You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-answer-23-of-the-most-common-interview-questions">How to Answer 23 of the Most Common Interview Questions</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/you-re-fired-20-signs-that-a-pink-slip-is-coming">You’re Fired! 20 Signs That a Pink Slip is Coming</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-ways-to-actually-take-all-your-vacation-days-this-year">7 Ways to Actually Take All Your Vacation Days This Year</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career Building career career change finding a job getting a job unhappy at work work Thu, 30 Sep 2010 14:00:17 +0000 G.E. Miller 250395 at http://www.wisebread.com