Frequently Asked Questions
1. What type of Life Insurance is Right for Me?
Modern Woodmen life insurance plans come in a variety of shapes and sizes designed to fit your unique life situation. The more you learn about your options, the better prepared you'll be to select the type of product that meets your needs. You may decide to purchase permanent insurance, term insurance or a combination of both.
2. Why should I buy life insurance for my kids and grandkids?
There is no greater love in your life than your kids and grandkids. You want the best for their futures and look for ways to help make them secure.
Life insurance gives kids a financial head start in life. Premiums are lower, and purchasing coverage now while your kids are young and healthy helps ensure they can have protection throughout their lives – even if they develop health problems later on.
3. Why should i have an emergency fund?
Have you ever thought about what might happen to you financially if you were temporarily laid off or unable to work because of a sickness or an injury? What about those unexpected costs that can derail your budget, such as car or home repairs?
Establishing an emergency fund can help ease your mind. Your emergency fund should be able to cover three to six months of pay.
But how do you start an emergency fund? Easy. Pay yourself first. Try to set aside a percentage of each paycheck and have it automatically deposited into a secure, but accessible savings plan. Contact Modern Woodmen Bank for more details or questions on how you can start your own savings plan
With a little effort, you’ll be surprised at how quickly an emergency fund begins to grow and how quickly you adjust to your “new” income stream.
4. How can i create a successful spending plan?
Creating a spending plan is a great way to keep tabs on your money. It can help you live within your means...now and later.
Ask yourself, “How much is my paycheck? How much do I spend?” Then ask yourself, “How much is left over?” Remember to pay yourself first and look for what you can cut back or cut out.
Putting a spending plan in place can show you what is possible instead of worrying about what isn’t. We can help. Contact a Modern Woodmen representative for more information.
5. What's the best way to save?
-Saving for retirement doesn’t have to be complicated. It requires a commitment to your plan as you systematically put aside the money for your future. It’s never too early or too late to start saving. The key is to set goals and get started.
-Determine your needs in retirement. Try to determine when you want to retire and how much you'll need to have saved to afford the lifestyle you dream of having. Consider future expenses, future sources of income and unexpected events.
-Set goals and start saving. The longer you wait to begin saving, the more you will have to save to achieve your goals.
-Identify potential obstacles. A Modern Woodmen representative can help you create a solid retirement plan by helping you identify potential obstacles to a comfortable retirement. These obstacles include health care costs, inflation, fewer pensions, the uncertain future of Social Security and the risk of outliving your money.
-Contribute to a retirement plan and take advantage of potential tax benefits.* Many retirement plans, like IRAs and 401(k) plans, provide additional tax benefits.
-Keep your retirement savings intact. Don’t withdraw or borrow from your retirement accounts unless it’s absolutely necessary. If you do, you may incur taxes and penalties and lose the opportunity to enjoy compounded earnings on your withdrawals.
6. Will my retirement income last as long as I will?
-Without proper planning and management of market risk, risk factors including poor market performance can deplete your retirement savings during your retirement years. Negative rates of return in the early years of your retirement will also have a negative impact on your portfolio. It can impact your portfolio’s ability to meet your expectations for future income.
-If you plan wisely, you may be in a better position to sustain your retirement income over your lifetime. A thorough retirement distribution plan can offer you protection. It can incorporate a retirement paycheck that's guaranteed to last as long as you live.