The numbers are quite surprising. Almost 7 out of 10 Americans have less than $ 1,000 in savings.One in three Americans has nothing in reserve for their retirement.And, according to Federal Reserve data, the average working-age couple has saved only $ 5,000 for their retirement. How is this possible?
How can it be that the citizens of the richest country that ever existed in the history of the world have hardly any savings?Simple. The cost of living has skyrocketed over the past few decades. For tens of millions of people it is terribly difficult to keep up with their expenses and debts. Just look at the numerical data. House prices, once again, are at their all-time highs. And for those who choose to rent rather than buy, rents in many cities have also reached their all-time highs.A cross for the MillenialsThis is especially difficult for the Millennium generation, which is spending more than 40% of its disposable income on housing costs.If you add student debt (which continues to be a pest among millennials), this will take more money out of your pockets monthly.And God help them if they decide to have children, whose cost of support is now at a record level.According to a study published last year by the US Department of Agriculture (I'm not sure why they looked for this data ??), the total cost of raising a child from birth to age 21 is now $ 233,610 .Other private studies have fixed that amount in more, surpassing $ 300,000.And it's not just inflation, but childcare costs have risen so fast that for many families, it's impossible to keep both spouses in their careers? One of them has to dedicate himself, at least temporarily, to take care of the children.Then there are the costs of insurance and medical care, which continue to rise to record levels.Health costs in the clouds
Costs for health care in the United States are now at the highest levels ever before.But what is even more important, the TASA in which costs are rising reached its highest level in 32 years.So, is it any wonder people are unable to save some money ?? Or, in spite of a brief fall after the GreatRecession, credit for consumption is once again exploding. People survive in debt.Like its federal government, Americans are once again heavily indebted.And it's easy to understand why: What they earn simply is not enough for them to make ends meet.And while, in theory, wages have finally begun to grow, albeit slightly, this has been largely overcome by the increase in the main costs of living, such as housing, child care, insurance and medical care.
Everyday life exposes us to situations of risk that can strongly affect personal finances. Any day, an illness can destroy everything because we have worked.
Situations such as disability or death can destroy the heritage we have forged for our family; For this reason it is important to have a life insurance that protects our loved ones when we can no longer do so.
The offer of policies in the market is very large, so HiR Seguros recommends following some steps before choosing a tool that fits our needs.
1. Familiarize yourself with vocabulary. It is important to know some terms that will help you make a good decision.
-Coverage: is the specific risk by which the insurance will protect you.
Policy: is the document that contains the general rules of your insurance.
- Insured sum: refers to the maximum amount that the company will pay you if the insured event occurs.
-Prince: alludes to the cost of insurance.
2. What do you want to insure? There are insurance for unemployment, medical expenses, cars, real estate or personal. Prioritize your needs and be prospective, analyze what things or who are vulnerable.
3. Economic dependents. Consider whether you have young children or if you are studying, you are single or retired; How many incomes in addition to yours will compromise.
4. What coverage do you have? Usually coverages are for death, damage to third parties or disability; However, you can opt for terminal or serious illnesses or funeral expenses. It is suggested that coverage be five to eight times the current income.
5. Define your budget. Think about how much you earn and how much you could spend for the insurance payment.
6. Review options. The insurer can be a bank or maybe a specialized company, considers the trajectory, presence in the city and country, prices and what its strong in the sector. The insurer must have physical offices and permanent care websites, as well as alternative means of communication.
7. Seek advice. There are insurance agents and insurance brokers. The first ones are people who guides you about existing insurance and makes you a tailor made plan. Meanwhile, the broker are intermediaries of several companies, which are engaged in marketing contracts and insurance policies to their customers.
8. Compare. Many times the decision for insurance is only motivated by the price, however, the ideal is to make an assessment of the advantages and disadvantages of each option.
9. Organize your income. Look for payment plans that do not compromise other necessary expenses in your family.
10. Beneficiaries. Clarify the name and percentage that will be granted, remember that they can not be minors. Avoid intermediaries, if you appoint someone else to deliver the sum insured this action is only a moral obligation.
