Category: Business

5 Types of Life Insurance

Life Insurance Arlington is an investment in your family’s future. It can help pay off your mortgage, funeral expenses, children’s education and other debts.

Whether you choose a term or permanent policy, it pays a death benefit to your beneficiaries when you die. It also builds cash value and often includes health and wellness benefits.

Life insurance is designed to provide a payout for the people you choose (called beneficiaries) upon your death. This money can help them cover funeral expenses, pay off debt, or meet other financial obligations. Most people get life insurance to ease the burden on their loved ones after they die. It can also be a way to protect your family from the potential economic impact of a long-term illness or disability.

There are two primary types of life insurance: term and whole life. Term policies are designed to last for a specific time period, such as 10, 20, or 30 years. When the policy expires, it no longer provides coverage. However, you can renew it for another term, convert it to a permanent policy for a higher premium, or buy a new policy.

Some insurers offer level term policies in which the premium remains the same throughout the entire term of the policy. Other insurers offer a rising term option where the premium will increase over time, usually every year or several years. You can also purchase a decreasing term policy where the premiums will decrease over the course of the term, resulting in a smaller death benefit.

Unlike whole life insurance, term policies do not build cash value that you can borrow against. This is one reason they tend to be cheaper than whole life. Whether you decide to go with a term or a whole life policy, it is important to weigh the pros and cons of each before making a decision.

When you apply for a term life insurance policy, the insurer will review your medical records and may require an examination. Depending on your results, the insurer may decline to issue the policy or may approve it with an exclusion or limitation. This is why it is important to answer all questions honestly and accurately on the application.

Whole Life

Whole life insurance offers a variety of features that can help you and your loved ones feel secure about your family’s future. Unlike term life insurance, it provides lifetime coverage and a fixed premium that’s guaranteed to never increase. In addition, it builds a savings component called cash value, which you can borrow against or withdraw from at any time — tax-favorably, through First-In-First Out (FIFO) rules.

A portion of each premium goes towards your policy’s cash value, which is invested with a guaranteed rate. The rest is used to pay for your coverage and other expenses. This feature gives you peace of mind that you can access your money when you need it, whether for a down payment on a home, college tuition or additional retirement income.

In addition, whole life policies offer the ability to grow the policy’s cash value by earning annual dividends. In most cases, these are credited to the cash value account and may be used to reduce your premium, cover expenses or purchase paid-up additional insurance.

This is especially helpful when preparing for long-term goals such as retirement. Having access to your policy’s cash value can help you avoid the need to withdraw or borrow against the death benefit when your needs require it.

Another advantage of whole life insurance is that it can help provide financial security for families who depend on a single breadwinner. A death benefit payout can help them continue their lives without the worry of losing out on income and other potential responsibilities.

While whole life insurance is a great way to provide financial protection and accumulate savings, it’s also a popular choice for those who want to save on taxes. With proper planning and a trusted Life financial professional by your side, you can find a balance of financial protection and wealth accumulation that’s right for you.

Ready to learn more about life insurance? Contact us today to discuss your options and determine which type of coverage is best for you. We’re here to help you achieve the future you envision for yourself and your loved ones.

Universal Life

Universal life insurance offers a death benefit and a cash savings component with the flexibility to adjust premiums up or down as your financial situation changes. Unlike term life, this type of policy lasts your entire lifetime, providing coverage for your beneficiaries after your death. You can also borrow against or cash in this savings portion, and it grows tax-deferred over your lifetime. Depending on the specifics of your policy, it may include additional benefits like accelerated death benefits, chronic illness riders and waiver of premium riders.

This type of policy has several different types. The most common is a guaranteed universal life (GUL) policy, which has fixed premiums and a set death benefit. GUL policies typically have low fees that don’t change over time and they offer a stable rate of return on your cash value, which you can access by taking a policy loan or withdrawal.

Another type of UL is an indexed universal life (IUL) policy, which allows you to add money to your policy that’s invested in indexes like the S&P 500 or Nasdaq. This can provide better returns than other investments, though the gains you receive are not guaranteed and there is more risk associated with IUL policies.

A variable universal life (VUL) policy is a complex product that combines elements of both whole and GUL policies. It’s often difficult for consumers to understand, but it can offer more potential for investment-related gains than other types of UL policies. A VUL policy can also require more active management, as you’ll be required to monitor the performance of underlying sub-accounts in order to take advantage of opportunities for growth.

Regardless of which type of universal life insurance you select, it’s important to understand that your policy will have fees associated with the initial purchase and the continued operation of the policy. These fees are intended to cover the cost of administering your life insurance policy as well as provide a small amount toward the building of the cash account. In addition, there are other costs related to your life insurance policy that should be taken into consideration as you evaluate your options.

Variable Life

As the name suggests, variable life insurance allows you to vary the amount of money in your policy’s cash value account by letting you choose from a number of investment options. These include mutual funds, equities and bond funds. You may also have the option to add a fixed interest rate account, which pays a guaranteed minimum interest rate. Your cash account’s growth depends on how well your selected investments perform and the death benefit amount that is added to the original premium.

Because your death benefit may decrease over time, these policies are not suitable for everyone. But for those who are more risk-tolerant and don’t mind paying suspicious fees, a variable life policy can be a good fit.

You must have enough cash in your account to pay the annual fees and avoid a lapse, in which case your coverage is cancelled. To avoid a lapse, it’s essential to carefully review the prospectus (the document that spells out the policy’s internal fees and expenses, as well as its investment options and death benefit) and fully understand your options. You’ll likely need the help of a financial professional or independent life insurance agent to do this.

Another factor to consider is the company’s reputation and history. The National Association of Insurance Commissioners maintains a complaint index that reveals an insurer’s reputation and track record for handling complaints. Check that index and ask for a copy of the insurance company’s rating before signing up for a variable life policy.

Unlike whole life or other permanent policies, you can cancel a variable life policy within a free-look period — usually 10 to 30 days. This allows you to change your mind without incurring a surrender fee, which is a percentage of the total face amount of the policy.

Before you buy a variable life policy, examine the internal costs and compare it with other companies’ quotes. Also look for a guarantee that the policy won’t lapse. Generally, Flagg says, you’ll get better cash value growth if you select an insurer with lower internal costs.

The Benefits and Drawbacks of Bookkeeping Services

Atlanta Bookkeeping Services keep track of all the money coming into and going out of a business. This information is used to create financial statements that can help businesses make informed decisions about allocating their resources.


Choosing the right bookkeeping service is essential to your company’s success. There are many factors to consider when comparing providers.

If you are in the business of bookkeeping, it is essential to understand how cost factors can impact your service. The number of transactions, the complexity of the accounts and the frequency of the services will affect the fees charged. For example, a large business with multiple revenue streams will have a much greater volume of transactions and will require more detailed work than a small company. This will lead to a higher fee for the larger business.

The accuracy of a bookkeeping service is another factor that can influence the cost. A professional bookkeeper will be able to catch errors that an untrained eye might miss. They can also make recommendations to help you improve your cash flow. They will also be familiar with small business tax deductions and compliance issues. This will help you save money in the long run by avoiding costly mistakes.

A good bookkeeper will produce accurate financial reports, which will provide an inside look at your business’s performance. The two key reports are the balance sheet and the income statement, which give a clear indication of how well your company is doing. You can use these reports to make strategic plans and develop realistic objectives.

In addition, a professional bookkeeper will be able to advise you on ways to reduce costs. For example, you might need to outsource some of your processes. Outsourcing can be a great way to cut your overhead expenses without compromising quality or speed. However, it is important to find a reputable bookkeeping service that complies with data privacy laws.

When determining the cost of your bookkeeping services, you should consider what other people in your industry charge. This will allow you to price your services competitively and offer value to your clients. It is also helpful to research the needs of your potential clients and how your services can solve their problems. For example, if you specialize in a specific industry, you may be able to charge a higher rate than your competitors.

One method for calculating your rates is to charge by the hour. This is a straightforward strategy and allows you to maximize your profit. However, this type of pricing can be inefficient if you don’t have a solid understanding of the work involved. Alternatively, you can choose to charge a fixed fee for your services. This is an attractive option for both clients and bookkeepers, as it provides a predictable expected income and helps prevent scope creep.


The accuracy of a service is important for several reasons. For one, it can help avoid costly mistakes that could have a negative impact on a business. It also helps businesses save money by identifying errors early and streamlining tax processes. It can also make it easier to understand financial statements and make decisions about future business plans. In addition, it can help prevent fraud and other issues that might occur due to mismanagement of supplies and inventory.

A professional bookkeeper has the experience to quickly identify problems and correct them. They can also improve the efficiency of your business by using automation tools to streamline processes and reduce the time it takes to complete a task. In addition, they can provide valuable insights into your business’s profitability and growth potential.

Although many people believe that bookkeeping is simply data entry, it is actually a critical part of the accounting process. Moreover, it is a very complex and important skill. This is because it provides the foundation for all other accounting services. For example, a good accountant will provide great tax planning and guidance, but they will only be able to do so if the books are in order.

The main objective of bookkeeping is to accurately record all transactions in accordance with accepted accounting practices. Then, the information is used to prepare a variety of financial reports. These include cash flow statements, balance sheets and income statements. In addition, the data can be used to assess a company’s profitability and make financial forecasts.

Bookkeeping is a critical aspect of a business, but many small businesses struggle to find the time and resources to handle it in-house. As a result, they often delegate this responsibility to a family member or an employee. However, these tasks can be very time consuming and lead to inaccurate results. In addition, a family member or an employee might not be skilled enough to handle the job.

Using a bookkeeping service can be much more cost effective than hiring an internal accountant to manage your accounts. In addition, a service can provide greater convenience by handling routine tasks such as managing receivables and payables, reconciling bank statements and generating financial statements. In addition, a service can also help you stay compliant with state and local taxes by assessing sales tax rates and remitting them to the appropriate authorities.


Bookkeeping is a critical part of running a business. It involves the process of tracking financial transactions and creating reports that help businesses prepare tax returns and file business taxes. It also helps owners and leaders understand the company’s current and past financial health. This information is important for making informed business decisions and applying for loans or financing. However, hiring bookkeeping services can be expensive. Fortunately, these expenses can be tax-deductible.

In addition to managing accounts payable and receivable, a bookkeeping service can also manage payroll, record keeping, and more. A good bookkeeper can provide accurate and timely data for all these tasks. In addition, they can help you determine your company’s profitability and provide recommendations for improvement.

As a business owner, you may want to consider using a bookkeeping service to save time and money. However, it is important to know the differences between a bookkeeper and an accountant before hiring one. While a bookkeeper can handle basic accounting tasks, an accountant is responsible for more complex duties and auditing. Accountants have a higher education background and have experience in auditing, taxation, and financial analysis.

The best way to find a quality bookkeeper is by asking for referrals from other business owners or searching online for providers. You can also visit local CPA firms that offer bookkeeping services and specialized national outsourced bookkeeping firms. The services offered by these companies can be tailored to your specific needs and budget.

A professional bookkeeper can save you a lot of time by helping you organize your finances, create financial statements, and prepare for taxes. They can also reconcile accounts payable and receivable, and manage your bank account. They can also help you make payments to regulatory bodies such as the internal revenue service, which is essential because failure to remit required payments can lead to stiff penalties and damage your business’s reputation.


Many new business owners are advised by well-meaning advisors to hire a professional bookkeeper for their company. This is a good idea, since there are several benefits of having your business’s finances handled by a qualified professional. These include improved financial clarity, fewer tax mistakes, and a better understanding of the health of your business. Despite these advantages, there are some drawbacks to hiring a professional bookkeeping service.

One of the biggest is cost. A professional bookkeeper may charge a different rate than an amateur one, especially if they have additional certifications or specialized skills. In addition, they may also be working with a different accounting software system, such as Wave or Xero. These systems are intuitive, feature-rich, and help small businesses monitor their finances in real time.

Managing accounts payable, preparing employee payroll, and balancing the general ledger are all part of a bookkeeper’s duties. This is an important aspect of the job, as it requires double-entry bookkeeping, where each transaction is recorded as both a credit and a debit. This ensures that the trial balance at the end of a designated period is accurate. In addition, a bookkeeper may be responsible for ensuring that all timecards are correctly logged and wages paid to employees.

Some bookkeeping services also provide a controller service, which increases accountability and checks and balances. A controller may review a bookkeeper’s ledger to ensure accuracy and completeness of the accounting data file. Additionally, a controller can provide monthly financial reports that highlight critical issues that a small business owner needs to know about.

A professional bookkeeper will have a thorough understanding of accounting fundamentals, such as the 5 main types of accounts: assets, liabilities, revenue, expenses, and equity. Assets represent the resources and cash owned by a company, while liabilities are debts or obligations owed by the company. Revenue is the money that a company takes in, and expenses are the amount of money that a company spends on operating costs. Finally, equity is the net worth of a company, which is the difference between assets and liabilities.