Perhaps the first thing to understand about life insurance is that it's probably a good idea. No matter where you are in life -- or how you currently manage your finances -- life insurance can provide some protection for those you might leave behind if tragedy strikes. Even if you don't have children or other heirs, a life insurance plan ensures no one is left on the hook for funeral or burial costs and helps estate administrators or others wrap up any financial obligations you might leave behind.
People find themselves in debt for a variety of reasons. When hit with unexpected bills due to an illness, or unable to pay daily bills due to job loss, credit cards may be the only way to make ends meet. It may be the best short-term solution, but debt can rack up very quickly, especially with high interest credit cards. Suddenly, you may be faced with an amount of debt that seems insurmountable. When that happens, there are different debt relief options to consider and which option is best for you will depend on your specific situation.
A few weeks ago, we discussed the topic of the estate tax in New Jersey. While estate taxes are complex issues that don't always apply when someone passes away, income taxes -- also complex -- do usually apply. When a person passes away, if he or she received any income in the last year, then someone must file a tax return on the person's behalf.