- Makes Garage Floors Look Nice
- Prevents Staining
- Makes Clean Up Easy
- Resist Floor Cracking
- Epoxy Has a lot of Fumes When Applied
- Floor Must Be Very Clean to Adhere
- Garage Floor Epoxy Can Be Expensive
- Requires Rutine Maintaince
Cost – $0.74 per square foot plus the cost of any tools you may need if you do it yourself or between $3 to $12 if you hire a professional company to do this for you.
An epoxy-coated garage floor will give an aesthetically pleasing look, prevent cracks and staining and make it easier to clean up messes. However, epoxy can give off a lot of fumes when applied and the floor must be very clean before applying.
To learn more about the cost, pros and cons, and what the process is like keep reading.
What is the Average Cost to Epoxy a Garage Floor
The average cost to epoxy a garage floor depends on how you do it (DIY or Hire Professionals), the conditions of the current floor, and how big the space is overall.
Overall, epoxying your garage floor will cost between $1 to $12 a square foot depending on whether you do this yourself or not. In this section, I will break all 3 of these areas down for you.
DIY or Hiring Professionals – Which is Better
Before you start this project you need to consider if you want to tackle this project on your own or hire a professional to do this for you.
A professional will cost more but they have the added benefit that they know what they are doing versus you who may or may not have done this before. They have the right tools for the job and know how to get the best results.
If you plan to do this yourself you’ll be able to save a lot of money and if you’re well versed in doing DIY projects like this you shouldn’t have a problem. If you’ve never done something like this don’t be misled that this is easy.
This project will take at least 2 to 4 days to do and will require a lot of patience and time. If these are not skills you have then consider at least getting a quote from a few different companies to see how much it will actually cost you.
Next, if the floor is not in perfect condition you will be spending a lot of time cleaning, scrubbing, and patching just to get the floor to a place where you can apply the epoxy.
This is what will likely take the majority of time to complete the job. If your floor has a previous coating on it you will need to remove this by grinding it off or applying a special primer to help cover this up.
As a result, this could add more to the cost in this situation. If the floor is fairly clean then it will save you some time and cost.
Finally, the size of your garage will factor into this cost as well. If you have a one-car garage the cost will be cheaper than if you have a 2.5 car garage.
Below are some general costs to do a 1 car to a 3 car garage.
|Average Cost to Epoxy||DIY||Pro|
|1 car garage 250 sq. ft||$250 to $750||$1000 to $3000|
|2 car garage 500 sq ft.||$500 to $1500||$2000 to $6000|
|2.5 car garage 750 sq ft.||$750 to $3000||$3000 to $9000|
|3 car garage 1000 sq ft.||$1000 to $3000||$4000 to $12,000|
What Are the Advantages & Disadvantages of Epoxy Flooring
If you’re not sure if putting epoxy on your garage floor is right for you here are a few things to think about.
Great Looking Floor. Whether you plan to keep a certain particular car in your garage or want to use the space for parties and family get-togethers it will definitely make your garage floor shine.
Prevents Staining. Next water and oil on your floor will be no match for the epoxy. It will prevent staining on the floor due since it will fill in the pores of the concrete.
Easy Clean-Up. As a result, this will also make floor clean-ups a lot easier as well. No more oil dry and sweeping will be a lot easier since the dirt has no way to engrain itself to the floor.
Resist Floor Cracking. Finally, the epoxy will also coat the floor and help prevent floor cracking and chipping. This is because the epoxy will actually harden the floor.
Fumes. Epoxy will have a lot of strong fumes when you first put it down and you will want a well-ventilated area. Try to do it on a nice day out where you can keep the garage door open to keep a breeze going to keep the fumes from building up.
Floor Must Be Clean. Before you lay down the epoxy you will want the floor as clean as possible. There is an exact process you much follow to do this but if you don’t the epoxy won’t adhere as well.
Epoxy Can Be Expensive. Epoxy itself can cost upward of $100 per gallon or more. This doesn’t even include the cleaners and clear coats. At the end of this article, I can show where to buy epoxy and get the best deal.
Doesn’t Last Forever. Finally, just because you put epoxy on your garage floor doesn’t mean it will last forever. High traffic areas will show their wear and tear and will need continued maintenance.
How Long Does Epoxy Last On Your Garage Floor
The amount of time the epoxy will last depends on 3 major factors, how clean the floor was before it was applied, the elements floor is in on a regular basis, and if the floor receives any continued maintenance.
How Clean Was the Floor. If you just swept the floor and washed it out with a garden hose then you didn’t get it near clean enough. You also need to remove any loose debris, use cleaning solutions, and etch the floor to get a better bond.
Conditions of the Floor. Next, what elements are the floor in on a regular basis? Does it get a lot of foot traffic, rain, snow, or road salt on it? These things will break down the epoxy over time and cause wear off.
Continued Maintenance. Finally, to keep your floor looking nice you will need to do some basic maintenance from washing it regularly to applying a fresh clear coat on top to keep it looking nice.
If you follow these 3 points the epoxy floor can last as long as you want but if you don’t do any of these the lifespan of the epoxy won’t be as long.
What Is the Process to Epoxy a Garage Floor
Now that you have an idea of the pros, cons, and cost you might be wondering what is the process like to epoxy your garage floor.
1. Check for Moisture
First, you need to check to make sure there is no moisture on your garage floor. Sometimes moisture isn’t visible on the surface of the floor so before you start you need to do a simple test to see if you have moisture in your garage floor.
To do this tape down a small patch of plastic sheeting or vapor barrier to the garage floor. Then leave it for 24 hours. After that peal up the plastic, if there is any moisture you will need to apply a concrete moisture sealant like Rust-Oleum Concrete Moisture Stop Fortifying Sealer.
You will apply the sealer once you’ve cleaned the garage floor in step 2.
2. Clean the Garage
Next, you will need to clean out your garage in order to get the floor ready.
- Start by removing everything out of your garage. Remember this will take roughly 2 to 4 days to complete.
- Once everything is removed sweep out the garage to get all the large debris and dust.
- Use a wire brush to remove any grease and dirt stains.
- Next use the Rust-Oleum Cleaner and Degreaser by mixing 1 gallon of the cleaner with 1 gallon of water.
- Pour the solution on small areas of the floor and work it in with a brush. Do this until the floor is completely done.
- Then wash it out with a garden hose and use a long handled squeegee to get all of the remaining water out.
3. Etch the Floor
Next, get the etching powder out of the epoxy floor kit. Mix with 2 gallons of water. Also, make sure the floor is just wet before you start pouring the etching solution. The floor will need to stay this way for the entirety of the etching process.
Pour the solution into 10-foot by 10-foot areas and work it in with a scrub brush. Then rinse the area before doing the next section. Repeat this until the floor has been completely done.
Finally, rinse the entire one more time to get the remaining solution off the floor and squeegee any remaining water off the floor. Then let it dry for 24 hours.
4. Patch & Repair Concrete
Once the floor is clean you will want to patch and repair any cracks, and holes. This will also help give your garage a smooth floor.
I recommend using Rust-Oleum Concrete Patch. You may also need a putty knife and something like an old piece of cardboard to help you mix the solution.
Side Note: Once these two solutions are mixed together you will have a limited time to use them before it starts to harden depending on the air temperature. So make sure you do this all at one time. Drys in roughly 8 hours.
If you have a previous floor coating then you may want to apply a primer coat first before applying the epoxy coat.
To do this use the Rock Solid RUST-OLEUM Concentrate Floor Primer first before applying the epoxy. You will want to let this dry for 12 hours before moving on.
5. Apply the Epoxy Floor Coating
Now that your floor is clean and the patch and repair have had time to dry it’s time to apply the floor epoxy. For this, I recommend using Rust-oleum Epoxyshield Professional Semi-Gloss Floor Coating Kit.
Side Note: Make sure you have all of your tools ready as the epoxy has to be used once it is mixed together.
Here are some basic steps to follow.
- Mix the epoxies seperately and then roll part B into part A to break the inner seal and mix the two liquids together.
- Next you will need to let the epoxy sit to achieve the proper induction time. Follow the directions on the product you are using. Don’t cut open the bag until you’ve met this time limit.
- Cut a corner of the bag and pour the mixed liquid into a paint tray for easy use.
- Using a small paint brush do the perimeter of the wall in 4′ by 4′ sections
- Next use a long handled paint roller and finish the first 4′ by 4′ section
- As each 4′ by 4′ section is complete add the decrative color chips by throwing small handfuls of them over the area.
- Continue this process starting in the back of the garage and working your way to the front till the floor is completely done.
- Finally, let it dry for 24 hours
6. Appy the Clear Coat
The final step is to apply the clear coat. This Rust-Oleum Clear EpoxyShield Premium Clear Coating is the one I recommend using. Here are some basic steps to help you complete this.
- First mix the 2 part solution bag seprately.
- Lay the bag on the floor and roll part A into part B. This will break the seal in the center of the bag mixing the solution. Thoughly mix the solution together.
- Cut the corner of the pouch and pour it into a clean bucket.
- Next, add the antiskid additive to the clear coat and mix thourghly. The antiskid additive create an antislip floor that will give you more traction when walking on floor while its wet.
- Now dump the mixture into a new paint tray.
- Trim in the edges in 4′ by 4′ sections.
- Use a long handled roller to apply each section.
- Continue this process working from the back of the garage to front until the floor is done.
- Finally, let the floor dry. You can have light foot traffic in 10 hours, heavy foot traffic in 24 hours, vehicles in 3 days or for a full cure in 7 days
Does Epoxy Increase Your Homes Value
Overall having a garage floor with an epoxy coating will not drive up your home value, at least not by a large amount.
Home values typically go up based on things like the number of bedrooms, square footage of the home, and location of the home. These things usually drive up the cost.
However, having an epoxy coating on your garage floor may be more likely to impress buyers and help make the sale faster.
Think of it this way, if the garage looks this good then what does the rest of the house look like?
This may pique their interest and drive more curiosity to the buyers and make the sale faster in the end.
Can You Epoxy Your Garage Floor in the Winter
It is possible to epoxy a garage floor in the winter but I don’t suggest it. There are going to be a few problems with this.
The floor cannot be too cold when it comes to applying epoxy to concrete. Typically you don’t want to go any lower than 50 to 55 degrees. Any colder and the epoxy may not bond correctly to the floor.
The only way you could do this is if your garage is temperature-controlled and you can keep it at a consistent temperature at all times. If you can’t then wait till you have more favorable weather.
The second problem is the fumes the epoxy will give off. These fumes can be rather strong at times and are recommended that you have decent ventilation while doing this.
In most cases, this means you should have the garage doors open. If you live in a colder climate area then you may want to reevaluate this and wait till the temperatures are more favorable.
Are Epoxy Garage Floors Slippery
An epoxy garage floor can be slippery especially if you only apply just the epoxy and nothing else. This happens because the epoxy will fill in all the cracks and crevises creating a flat and smooth surface.
There are a couple of ways you can avoid this though.
Add a Clear Coat. If you decide to do this yourself you may want to add the clear coat. The Rust-Oleum EpoxyShield Premium Clear Coating comes with an antiskid powder that you can mix in with the clear coat that will give you more traction especially when the floor is wet.
Talk to a Professional. Your second option is to talk to a professional and see what they might be able to use as a solution. Often time they may have something similar. or even better.
Should You Paint or Epoxy Your Garage Floor
Painting a floor only covers the surface but it does not engrain itself into the surface as the epoxy will.
Over time the paint will wear and flake off since it does not bond to the concrete. Paint won’t make your concrete strong and it won’t prevent cracking like an epoxy will.
What is Better Than Epoxy for Garage Floors
Polycuramine is up to 20x stronger than epoxy and is used for more industrial floors but it can also be used on residential garage and shop floors as well.
The Rust-Oleum Rocksolid Polycuramine Garage Floor Coating is the best option if you plan to go this route.
Where to Buy Garage Floor Epoxy
Below is a list of the products I’ve mentioned in this article from Amazon. I am an affiliate of Amazon but you can also find these products at many of your local retailers as well.
Rock Solid RUST-OLEUM Concentrate Floor Primer – This primer is intended to be used if you already have a previous coating on the floor. This will save costs from having to grind off the previous coating. 1 gallon will do approximately 400 sq. ft.
Rust-Oleum Concrete Moisture Stop Fortifying Sealer – If you’re garage floor is sweating or retaining moisture then you want to put this down first after you clean your garage floor. This 1-gallon jug will do 200 square feet of space. This does not come with the floor epoxy kit.
Rust-Oleum Concrete Patch – If you have cracks or chips in your concrete this patch will help fill in those spots and give a smooth finished look. This does not come with the floor epoxy kit. Contains 24 oz.
Rust-Oleum Cleaner and Degreaser – This cleaner/degreaser is used to help get the floor clean. This does not come with the floor epoxy kit and is recommended to get the floor clean. This 1-gallon jug will do up to 200 square feet.
Rust-oleum Epoxyshield Professional Semi-Gloss Floor Coating Kit – This is the kit that contains the epoxy and etching solution. This is a 2-gallon kit and will do between 300 and 400 square foot space.
Rust-Oleum Clear EpoxyShield Premium Clear Coating – If you want to go the extra step to protect your epoxy-covered floor this clear coat solution will do just that. This 1-gallon jug will do up to 500 square feet on painted surfaces and 250 square feet on concrete surfaces.
As someone who has life insurance and at one-time use to sell life insurance, you might be wondering what is the average cost of life insurance is for you.
A $100,000 term life insurance death benefit for men can run between $12.64 at age 20 to $92.38 at age 60. A $100,000 term life insurance death benefit for women can run between $10.44 at age 20 to $54.87 at age 60. Life insurance cost very for a lot of reasons from age, current health condition, the type of policy you decide to get, to the amount of coverage you get.
As you can see the rates vary a lot and in order to find the true cost you need to take several these several considerations in mind. However to give you an idea of what you might pay I ran a few quotes with an insurance broker just to help you see what’s possible.
Keep reading to see how much a life insurance policy could cost you.
What is the Average Life Insurance Cost Per Month?
If you’re looking to buy life insurance you may be wondering just how much all of this will cost you. In this article, I’m going to share with you the actual rates I got from insurance companies.
This would include companies like Pacific Life, American General, Transamerica, Banner Life, Lincoln Financial Group, Prudential, and a whole lot more.
Before I share the rates there are a few things I want to cover.
First, rates can vary for a bunch of different reasons. The rates I’m sharing here are going to be for a term life insurance with a death benefit of $100,000.
These rates are also based on a healthy person who does not smoke or has any kind of health condition.
There are two charts. One for men and one for women. I did this to show you how rates between men and women vary.
Finally, none of these rates guarantee that you can or will get the rates that I share below. Afterall this is designed to show you what you could possibly pay if you were to get a quote yourself.
All rates vary on a wide variety of things which I also cover further down in this article.
Men’s Term Life Insurance Premiums Chart
|Age||Policy Type||Premiums/Monthly||Death Benefit|
|20||30 Year Term||$12.64 – $18.77||$100,000|
|30||30 Year Term||$12.98 – $19.72||$100,000|
|40||30 Year Term||$18.12 – $28.83||$100,000|
|50||30 Year Term||$38.50 – $61.70||$100,000|
|60||20 Year Term||$54.65 – $92.38||$100,000|
|70||20 Year Term||$206.23 – $397.06||$100,000|
|80||10 Year Term||$289.63 – $753.02||$100,000|
*Rates are subject to change, as this is only an example.
Women’s Term Life Insurance Premiums Chart
|Age||Policy Type||Premiums/Monthly||Death Benefit|
|20||30 Year Term||$10.44 – $13.51||$100,000|
|30||30 Year Term||$10.75 – $14.15||$100,000|
|40||30 Year Term||$15.11 – $19.60||$100,000|
|50||30 Year Term||$27.57 – $38.42||$100,000|
|60||20 Year Term||$36.37 – $54.87||$100,000|
|70||20 Year Term||$171.48 – $323.79||$100,000|
|80||10 Year Term||$198.11 – $496.77||$100,000|
*Rates are subject to change, as this is only an example.
Obviously this is just the tip of the iceberg. These rates can go up or down for a lot of different reasons which I will cover more in the next section.
However, there are a few things I want to point out from the rates I ran above that I noticed.
#1 Rates Generally Stay Lower From Age 20 to age 40. For a healthy man or woman buying life insurance between the ages of 20 to 40 can expect to see lower rates. This is because younger people statistically have less of a chance of dying.
According to finder.com at age 20 you only have 5.96% of dying within 30 years. At age 40 that jumps to a 23.41% chance of dying over the next 30 years.
#2 Rates After 50 Go Up Substantially. Obviously the older you get the higher your chances are that you’ll develop health issues, or even die. As result rates will go up. This means the earlier you buy your coverage the better deal you will get. This is because once you buy your policy the rate or the amount you pay on a monthly basis will stay the same.
This includes all types of policies from term, universal, whole life, to variable universal life insurance. The only way rates will change is the policy lapses, cancels, and start a new one, or add something to your policy like a rider.
#3 Policy Types Change as You Get Older. Another thing you may notices is that the type of policy you can get differs as you get older. The reason for this is because insurance companies don’t like to hand out a 30-year term policy to an 80-year-old person.
The chances of that person making it to the age of 110 are very unlikely. But there is a good chance an 80-year-old person may be able to live to be 90. This is why the term limits went down as they got older.
#4 Women Pay Less than Men. Finally, one thing I’ve noticed from just a few quotes I’ve pulled is that rates for women tend to be less than men.
This gets more noticeable the older you get. At a young age, the cost is only a few dollars different. However at an older age, say 80, the difference is huge.
In the example above an 80-year-old man in good health can get a 10-year term policy for roughly $289.63 while an 80-year-old healthy woman could get the same policy for $198.11.
This is a difference of $91.52 a month or $1098.24 a year more!
These Aren’t the Only Differences
Now this isn’t the only place you’ll see a difference with rates as I mentioned at the beginning of this article there are a lot of ways the rate of life insurance policy can differ and that is what I want to share with you in the rest of this article.
What Determines How Much Life Insurance Will Cost
There are actually 10 major things that can affect life insurance rates. In each way, I will give you examples of what these costs might be.
The first factor that’s obviously going to play a big role in the rates you get on your life insurance policy is your age. As I pointed out earlier the older you get the more you will pay for life insurance.
However just to give you an idea of how much let’s run a few numbers. Based on the quote above here are some rough numbers you could see when you quote a life insurance plan for yourself.
Men Term Life Insurance Rates
|Age||Policy Type||Premiums/Monthly||Death Benefit|
|20||30 Year Term||$12.64||$100,000|
|80||10 Year Term||$289.63||$100,000|
*Rates are subject to change, as this is only an example.
As you can see rates grew by nearly $276.99 over the course of 60 years. This means every year you wait to buy life insurance it will cost you an average additional $4.62 per month or $55.44 per year more.
Now let’s see how much more it might cost for a woman if they decide to wait to buy life insurance.
|Age||Policy Type||Premiums/Monthly||Death Benefit|
|20||30 Year Term||$10.44||$100,000|
|80||10 Year Term||$198.11||$100,000|
*Rates are subject to change, as this is only an example.
For woman rates grew by $187.67 over a 60 year period. This means every year you wait to buy life insurance it will cost you on average an additional $3.13 per month or $37.56 per year more.
As I covered earlier gender also plays a big role in cost. To give you an idea of the cost difference I put together this side by side comparison to show you the difference.
*Rates are subject to change, as this is only an example.
Mortality charts show that men are more likely to die earlier than women which is why the rates for men are so much higher at older ages.
#3 Your Current Health
Your current health also plays a role in how much you’ll pay for your life insurance. If you have diabetes, heart problems, or even high cholesteral it can raise your rates.
It can even determine if you’ll get life insurance in the first place. I’ve had clients who seemed perfectly fine and after an extensive underwriting process found the insurance company declined their coverage.
So what should you do if you’re in this situation? If you are still recovering from the situation you’re in, you may want to wait to purchase coverage till you’re in a healthier state.
At the very worse you can at least apply for coverage to see if you can get it. The worst thing that can happen is that you’ll be declined.
Smoking also plays a big role in how much you’ll pay for coverage as well.
|Age||Term||NonSmoking Male||Smoking Male||Difference|
If you can’t figure out after reading the chart above, smoking is going to cost you big time. If you take out a term life policy at age 20 as a smoker you’ll pay $20.68 more a month.
If you pay that over a 30-year policy you’ll pay around $7,444.80 not to mention all of those cigarettes literally burning a hole in your pocket.
That’s just at the age of 20. By the age of 50, it jumps up to almost $114 a month extra and it only goes up from there. After 30 years you’ll have paid an extra $40,950. Ouch!
The bottom line is doesn’t pay to smoke, it’ll save you thousands of dollars in the long run.
#5 High-Risk Occupations
High-risk occupations may also drive up the cost of your life insurance as well. In fact, if you do certain activities you may have to waive your right to be covered while doing it.
If you fly airplanes, skydive, rock climb, or a myriad of other things you’ll likely have to sign a waiver that will allow you to claim any of the death benefits if you do these activities.
So if you do any of these activities you will have to disclose them when you are applying for coverage.
#6 Type of Life Insurance
The type of life insurance you get can also affect how much you’ll pay as well. If you have a term life policy you’ll pay a different premium than if you get a universal life policy.
Below are some example rates I pulled for a $100,000 death benefit between a term life policy and and a universal life policy.
|Age||Term Life||Universal Life||Coverage||Difference|
As you can see going with permanent type policy such as whole life or universal life policy will be way more costly in the long term.
A term policy will be your cheapest option. At age 20 a universal life policy will already cost 3 times more than a term life policy. Instead, why not just get 3 times the coverage for the same amount of money.
I did this several years ago when I got rid of my variable universal life policy which had $250,000 of coverage and switched to a term life policy and doubled my coverage for the same money.
#7 Amount of Life Insurance
The amount of life insurance you get can also play a big role in the amount you’ll pay.
You might think a $100,000 in coverage would be enough, but what about your mortgage, car loans, kids’ college funds, not to mention the funeral expenses.
Here is a few quotes I ran on how price can range for a 40 year old male.
|$100,000||30 Year Term||$30.63|
|$200,000||30 Year Term||$46.73|
|$300,000||30 Year Term||$66.87|
|$400,000||30 Year Term||$87.00|
|$500,000||30 Year Term||$104.52|
One of the great things I’ve found with term life insurance is that the first $100,000 of a policy will cost the most. In this example of some rate I ran I found that for a 40 year old male it would cost $30.63.
You would think for an additional $30 you would get only $200,000 in coverage but you’ll actually get $300,000 in coverage.
Important: If you have to get more coverage, add it to your existing policy as that will likely be much cheaper than getting a new policy.
Also, think about the amount of coverage you’ll actually need. According to ThinkAdvisor, 40% of Americans are underinsured. Adding more coverage probably won’t cost as much as you think.
#8 Insurance Riders
Insurance riders can also add cost to your life insurance policy. One of the most common riders is the return on the premium rider. This rider does basically as it says, it returns the premiums you’ve paid over the life of the policy.
When I switched to term policy several years ago I added this rider to my policy. What I like about this option is that I can elect to get all of my money back after my policy ends.
I also have the option to convert it to a paid up policy as well if I choose to.
The question is how much does it cost? Riders are charged by basis points. A basis point is a percentage of 1%. So if a rider cost 25 basis points the cost of the rider will cost a quarter of a percent.
For example, if your policy cost $30 and the cost of the rider is 25 basis points then the rider might cost 7.5 cents a month.
The price of a rider varies by company but you’ll have to talk to your insurance agent to see what it will cost.
#9 Where You Live
Where you live can also raise or lower your premiums. However this obviously will depend on the company also go with as well.
Insurance companies are regulated by the state in which they reside not by the federal government. As result rates may vary in price.
However their is a movement to change this and have the federal government oversee the insurance industry. This has been going on for years but I don’t expect that to change anytime soon.
Finally, your height and weight can make a difference in the amount you pay. A 200 pound male will pay vastly different rates than a 350 male.
Below is a chart to give an example of a $100,000 term life policy.
|Age||200 lb Male||350 lb Male||Difference|
Like all other things being overweight is going to cost you. What’s worse is that if you decide to buy life insurance late in life there is a pretty good chance you won’t get coverage.
If you plan to buy coverage in your early 60’s and you’re overweight then you may not be able to qualify for coverage.
In the end being young and healthy will give you the best rates. So consider getting life insurance sooner rather than later.
In your later years, you may look back into your life as a younger person, those of your loved ones or even your assets as you begin thinking about what legacy you have never achieved creating.
What you never realize is the fact that life insurance is one of the only ways to ensure that the hard work and toil are well preserved, and all the people you may have cherished are properly taken care of for all the years to come.
Life insurance for seniors exists. On the contrary, the real issue is to compare the prices of the available policies and find one that fits your requirements.
2 Types of Insurance Policies
With the massive number of strategies for the old individuals, it can be easy to get confused on which policy to get.
The insurance companies themselves go for different names or different materials for marketing to make sure that their products are differentiated from the rest in the market.
All the same, there are two main types of elderly life insurances for those aged 60years or so, in today’s market. When it comes down to it there are two main types of life insurance…
- Term life insurance
- Cash Value Insurance.
What is Term Life Insurance?
This insurance is one type of insurance in which the company pays a death benefit to the beneficiaries particularly if the policy happens to be active at the moment the insured dies.
This kind of system can be necessary since it may be used to cover the burial expenses or the mortgage debts and also other miscellaneous expenses if in case there are such expenditures.
However, as the name of the policy suggests, this kind of insurance is time-bound. It is set just for a particular timeframe. On the contrary, the term policies would be renewed when the expiration dates are attained to maintain coverage even though the premiums may increase considering the age of the insured client.
Health issues are also concerns since such may determine whether the policy may be renewed or just pay for the increased premiums available.
What would be some of the terms policies for this type of Insurance?
One of the fundamental policies is the guarantee for a renewed feature which allows the possibility of renewing the policy for the elderly life insurance cover of the elder people. On the contrary, the premium will only be increased based on age and not any issue related to the health of the client. The other is
On the contrary, the premium will only be increased based on age and not any issue related to the health of the client. The other is a term to 100.
This feature happens to guarantee the yearly premium to remain the same until the insured client attains the age of 100. In case the insured lives beyond 100 years, all the premiums are bound to stop whereas the coverage will continue.
This kind of insurance, therefore, offers the highest death benefit for the dollar spent.
Cash Value Life Insurance
Insurance companies happen to have created some valuable products under this particular insurance, and thus a lot of confusion may occur when it comes to choosing an appropriate plan.
This insurance cover has both a life insurance component and also the part of the investment. Similar to the earlier insurance, they also happen to give benefits once the insured client happens to die. The policies come in different names depending on what the company deems fit to meet their market demands. Some of the names may include
The policies come in different names depending on what the company deems fit to meet their market demands. Some of the names may include interest-sensitive whole life, variable universal life, or blended universal life covers.
The insurances are permanent and remain active as long as the premium requirements are fully met. Their cash values also build up and would be accessed when the insured client happens to pass away. On the contrary, their annual premiums appear to be greater than those of term life insurances.
It should be noted that while the insured client is still alive, the benefit of the policy belongs to the insured and not the beneficiary whatsoever. Once the insured is dead, the cash value of the policy is added to the available death benefit.
Also, the rate at which the cash value happens to be accumulating will depend on some returns the insured will earn on the funds that he invests. Under this policy, the rate of return guaranteed runs between 2-5%.
On the contrary, their annual premiums appear to be greater than those of term life insurances. It should be noted that while the insured client is still alive, the benefit of the policy belongs to the insured and not the beneficiary whatsoever.
Once the insured is dead, the cash value of the policy is added to the available death benefit. Also, the rate at which the cash value happens to be accumulating will depend on some returns the insured will earn on the funds that he invests. Under this policy, the rate of return guaranteed runs between 2-5%.
What are the examples of cash value policies and features?
Some of the examples of systems and features found in this type of insurance include:
- Whole life: it combines demise benefits and cash value benefits and also happens to be the most common policy in the market. With this type of cash value insurance, both the face value amounts and all the premium values happen to remain constant.
- Universal life: this policy has few restrictions and would allow the insured client to pay any amount of the premium value and virtually at any time. The cash value will, therefore, depend both on the premiums paid by the client and the total amount of interest earned.
- Variable Universal Life: this policy will provide cash value and death benefits depending on some investment returns. This is done by confirming both the responses received from stock and the total bonds managed by the insurance company.
- Joint life insurance policies: under this system, the company allows multiple clients to share one life insurance policy.
- First to die policy: companies will only pay these particular policies once the first client dies after which the policy automatically expires.
- Survivor Policy: a company pays for this policy once the second person on the policy dies. Mostly, this kind of system is used when there are concerns about paying estate taxes.
3 Things to Consider Before Purchasing a Life Insurance Cover
Some of the most important issues that any potential client should consider before buying life insurance include:
#1 Renewal options
Some of the available tern life insurance policies for the elderly have renewal options whereas others don’t. A client should thus be very vigilant with those policies that don’t provide renewal options.
On the contrary, insurance policies for the elderly mostly have premiums that happen to be adjusting after every few years. Such policies may be very expensive since they would increase the net amount that a client would ultimately pay for the policy.
#2 Policy organization
Organization happens to be important when it comes to issues concerning financial and legal frameworks. One should find out what sort of life policy they are going for and determine the level of financial organization before buying the cover.
Such a client should also determine the terms and conditions set for the policy and confirm if they fit his or her requirements.
#3 Determine long-term care insurance
With many guys living past 80years of age, the potential requirement for long term care is an expensive yet real possibility. Such financial costs should, therefore, be considered.
Last but not least, before a potential client considers terminating the policy, he or she should remember that purchasing a policy in the future would be difficult since the premiums would be a little higher.
How much will an elderly life insurance plan cost?
The most dominant issue people consider when they look into life insurance coverage is the cost against the need for the cover. Cost itself can be a challenge, particularly when calculating it since there are several types of life insurances.
Also, the cost of life cover is different and unique to each and every individual depending on the kind of cover such person takes. Other factors that would also influence the cost of insurance are the age of the insured client and the overall health of the same client.
As a result, factors that would affect the cost of cover an insured client would pick include:
- Age: it is evident that elderly life insurance cover increases with an increase in age.
- Health profile: health conditions also affect the cost of cover one would pick.
- Gender: since women typically live longer according to statistics, they would pay less for life covers.
The average cost of elderly life insurance would be made depending on the factors highlighted above. If in any case any of the available variables change, the cost of the life cover will also change.
Also, there are more factors that may also be considered depending on the state to which the policy applies. They include:
- Whether the state registers high rates of obesity or not
- The extent of natural disasters in a region
- The level of disease epidemics in a region
- The rate of mortality in a particular state due to crimes
- The number of policies in that particular region.
What would lower the cost of elderly life insurances?
It is quite evident that both lifestyle and health are two major factors that influence the rate of life insurances. As a result, the major activities one would perform to lower life insurance costs always have to be aligned to the improvement of health status and reducing risks of all types of chronic medical conditions like diabetes or even cancer.
Other factors that must be considered to lessen the cost of insurance policies include:
- Maintaining a healthy weight to reduce risks of whatever chronic condition that may come by.
- Maintain the heart condition to reduce the risk of complications like hypertension attack, heart attack or even stroke.
- Managing blood sugar to reduce risks that would result in diabetes.
- Most of the elderly life insurance companies will also review a client’s death risks and other work-related accidents.
Where can a client get the best rates on elderly life insurance?
Depending on the situation of the client, it is recommendable that such customer would choose covers from one or two senior life insurance companies at going.
This is because the companies may have their kinds of considerations to make depending on several factors. The factors would include lifestyle, age, health or even overall needs of the client. Some of the available life insurance companies for the seniors would include Gerber, Fidelity, Assurity, Lincoln Financial, Prudential, and Transamerica.
These are some of the best insurance companies ever.
Assurity Insurance gives you cover from the day you sign the cover deal to the agreement day. Before the age of 65, the cost may be up to $50,000 after which the maximum amount is $25,000 according to the benefit plan.
Fidelity Life Insurance company, on the contrary, offers hybrid term life insurance policy which will ensure that the client gets coverage within 48hours. According to this policy, 1/3 of the coverage is term insurance while the rest is accidental death insurance.
Gerber insurance offers coverage to the youth but also provides services to the senior people. However, one would also consider choosing covers from the Prudential Life Insurance Company. This company happens to be having high brand recognition. Most of the senior people recommend using this company as their first life covers.
Prudential is unique in the sense that it provides specific underwriting guidelines that have been proved to be working for the client. Furthermore, the instructions provided ensure that the company provides the most affordable life insurance at a fair price for the seniors.
Last but not least, the Transamerica Life Insurance Company is another company offering quality life insurance cover for senior clients. The cover is affordable mostly for clients of about 70years and above. Unlike other available life insurance companies, this company proves to be working with the senior group of customers.
The terms offered by the company are old insurance policies for the senior just above 80years. For instance, if a customer is 71 years old or above, and with a blood pressure which reads 145/85, then the client would qualify for one of the best rates in the market.
Another client who will get the best rates from the company is one who has a 5.5 cholesterol ratio. It would be evident, therefore, choosing a particular kind of senior life insurance policy will depend on several considerable factors.
A potential client is therefore faced with a challenge of proper scrutiny of the available companies to reduce risks of choosing inappropriate or extravagant life covers.
Which Kind of Life Insurance Policy is Right For Seniors?
In the end, the right life insurance policy all depends on your situation. However, if I had to recommend a certain life insurance plan for seniors I would recommend term life.
The reason being is that term life is cheaper upfront and because you’ll never get the full value from a cash value policy. Cash value policies are designed to get cheaper as the policies cash value account builds up. However, if you’re already a senior you likely don’t have a lot of years left to get receive this advantage.
So what are your thoughts, what kind of life insurance are you thinking about getting? I would love to hear your thoughts about this in the comments below.
In my last article I talked about what it took to sell my timeshare and I shared 3 different ways to get rid of a timeshare and you can learn more about that by clicking here. In this article I want take things in a different direction and talk about the timeshare resale scams that have plagued the industry.
Here I’ll share what timeshare resale companies are, why I feel they’re scams, how to avoid them, what to look for, and also I’m going to share my story about how I was able to get my money back from timeshare resale scam and how you could possibly do the same.
However before I start I just want to mention that I’m not the only one who believes this. Guys like Dave Ramsey and Clark Howard don’t recommend these companies either.
Here is a quick video from Dave Ramsey you can watch to see what other expert professionals say.
Warning – Read This Whole Article First
Before we jump into the article one thing I do want to do first is give a warning here. if you are someone who is brand-new looking to sell your timeshare and you have been looking at these companies I want you to read this entire article before you do this before you consider a timeshare resale company.
Before you consider the idea of buying into one of these resale companies I want you to fully understand what you’re getting yourself into here before you do it.
I know this from first-hand experience because I’ve dealt with this situation in fact I’ve lost up to $1,100 with these kinds of companies and the last thing I want you to do is to fall into the same trap.
Thankfully as I will share with you later in this article I did get some of my money back however I consider myself lucky in that this isn’t something that everyone’s going to be able to do but it does give a little bit of hope in that if you are someone who has fallen for one of these scammers that this might work for you as well.
So with that said read on.
What is a Timeshare Resale Company and How Do They Work
A timeshare resale company is a company that list timeshare units, whether it be a week a floating or fixed week, for sale and requires an upfront fee in order to list them.
These fees can range from as little as a few hundred dollars to several thousands of dollars. How these companies come up with the amount of pricing they charge is a complete mystery but once the fee has been paid your timeshare will be listed on their site till it sells.
Side Note: This sounds really attractive to the seller but what you don’t realize is that nobody sells their timeshare with these companies.
In a nutshell that’s pretty much all these companies do, is have you pay a big upfront fee and list timeshares for sale on their website.
This might look like an attractive offer but it just isn’t. To prove why this is read on.
3 Ways to Spot Timeshare Resale Scams
To help you spot these companies and know whether or not you should deal with them I want to share a few things you should look for.
#1 They Require an Upfront Fee
A I’ve mentioned already the first things to look for is if these companies require a big upfront free in order to list your timeshare with them. This fee can range from a few hundred dollar to a few thousand dollars.
The first resale company I bought into cost me $600 and the second cost me $500 in upfront fees. Now you might be thinking when you buy almost anything these days you have to pay upfront.
The problem is selling your timeshare unit should work more like selling a house. For example, when you sell your house a real estate agent will list your house and when someone buys it they get a commission also known as a success fee but only when they sell your house.
Resale companies work in the exact opposite way. They require you to pay an upfront fee to list your timeshare and then when it comes time to sell your timeshare they usually enter the witness protection program never to be seen or heard from again.
#2 They Have No Vested Interest in Helping You Sell Your Timeshare
The second problem with resale companies is that they have no vested interest in helping you sell your unit. Let me explain…
After signing up with two resale companies I called them both and asked them why they weren’t helping me sell my timeshare and both companies came back with the same answer that they only listed the unit for sale as an advertiser.
What this means is that timeshare resale companies are nothing more than an advertising company listing your unit for sale, and they are certainly not a real estate broker trying to help you sell your unit.
Another way to look at this is the newspaper, if you put a listing in your local newspaper to sell your house that newspaper has no vested interest in helping your sell your house. Their money was earned to just to post your ad in their paper and that’s it. What happens after that is up to you.
In the end these companies don’t care if your timeshare unit sells or not and more than likely they won’t because in the few years I had my timeshare listed with these companies I never get got one person offering to buy my unit.
#3 They are Legal
Now for the really bad news that I’m sure you really don’t want to hear and that is that timeshare resale companies are 100% legal.
Yup, you heard me.
What’s not legal are some of the tactics these companies will use to get you to sign up with them. Some of these companies will tell you almost anything to get you to sign up with them.
If you find a company making big promises like this…
- We can sell your timeshare in 2 weeks or less
- We can get ten times what your timeshare is worth
- We have buyers waiting to buy a timeshare unit like yours
Do any of these promises sound familiar?
If you hear a resale company saying anything like this they are completely lying to your face. Stay away from these companies or you could be their next victim.
How I Got My Money Back – A Personal Story
At this point I hope I’ve convinced you enough not to buy into timeshare resale companies or as I call them timeshare resale scams. However if you’re someone who has already bought into one of these companies their may be a small glimmer of hope when it comes to getting your money back.
When I originally bought into one of my very first resale companies and figured out they weren’t there to help me sell my timeshare I decided to take matters into my own hands. To start I called them and asked for my money back.
However as you’ll already know these companies usually have a strict policy that they do not offer refunds. So how do you go about getting your money back you might ask?
The way I’m about to share is not full proof by any means nor is it guaranteed to work. To get my money back I wrote an article on my blog about the company being nothing more than a bunch of scammers. With a little work this article eventually ranked in the top 5 for the name of this company in Google.
With this article ranking well their legal department eventually caught wind of this and sent me a cease and desist letter telling that I needed to take down the article or I would face legal action.
So I called the resale company and told them that if I would get a full refund on what I paid to them I would gladly take the article down. In the end I got my $5oo back and I removed the article.
To be honest to do something like this takes a bit of leg work but it can be done, and one final thing I want to share is that you only want to ask for your money back and that’s it. Asking for more than what you paid could be considered blackmail and I definitely do not support that in any way here.
In the end this may or may not work for you. If the company is a more legit company like the one I was working with they obviously didn’t want any negative publicity and were willing to work out a deal.
However if the company is nothing but a bunch of fly by night scammers from the start then your chances of getting anything back would be much less.
Share Your Story
To wrap this article up I just want to ask, have you ever considered buying into a resale company to sell your timeshare unit or have you been burnt by a timeshare resale scam in the past?
If this has happened to you please share your story so we can all learn from this and work together to avoid this mistake and keep more of our hard earned dollars in our wallets.
Can I sell my timeshare without upfront fees?
Several years back I made one of the biggest financial mistakes of my life, I bought a timeshare. I’m sure if you’re reading this article you may be facing a similar situation.
However you may have also figured out by now that selling your timeshare is riddled with all kinds of landmines from paying high upfront fees to dealing with the typical ripoff timeshare resale company.
I know this industry first hand because I’ve been taken by two of these companies which ended up costing me $1100 in upfront fees. You may have dealt with a similar situation and this may have left you asking how can I sell my timeshare without upfront fees?
In this article I’m going to share 3 ways you can go about selling your timeshare. One is a method I used to sell my timeshare, the second is a fairly new option I’ve recently come across, and the third is not exactly a way to sell your timeshare but a way to recoup some of the cost, but before I share these options I want to debunk a myth that will help you out in this whole process.
The Biggest Timeshare Myth
When it comes to selling your timeshare the biggest myth going around is that you can sell it for the same amount of money or more that you bought it for and this is completely untrue.
When I was trying to sell my timeshare I had several people tell me that I could get just as much if not more from selling my timeshare. The first time I heard this was when I was buying my timeshare.
While buying my timeshare the sales rep said that I could easily get back out what I paid for my timeshare. The problem with this is that when you buy a timeshare you are not buying a piece of land or anything physical for that matter but rather a period of time, a week to be exact.
The second time I heard this a timeshare resale sales rep claimed that people in other countries besides the US would pay far more for my timeshare. This is completely false. The truth is you won’t get back what you paid for your timeshare even if they live in France or Australia.
In my situation I paid $4500 for my timeshare unit and in the end I only got $400 back when I sold it. I considered myself lucky at the time to just be rid of the thing and not have to pay one more maintenance fee.
Related Article: Not sure why timeshares are bad then read this article. It goes into more depth on the topic.
So if you keep this advice in mind while you’re trying to sell your timeshare the less likely you’ll get taken by all the ripoff deals out there. Now that you know what you’re up against when it comes to selling your timeshare I’m going to share three option you can try to finally get rid of your timeshare for good.
#1 The Buyback Option
The first option and the option I used to sell my timeshare was to call my resort and ask them if they could buy back my timeshare. After getting ripped off by two timeshare resale companies and refusing to pay my maintenance fee I ask my resort if they could by it back from me.
Now before you start thinking if this might be the option for you you’ll want to know that every resort may not offer this and if they do offer this they aren’t going to pay you anything close to what they sold it to you for. In my case I only got around ten cents on the dollar back on what I paid.
The upside to this is that if you’re looking for a way to just get out from under your timeshare this is a great way to do it even if you don’t get anything back in return for it. Not having to pay a huge annual maintenance fee will be well worth it in the end.
Another thing to think about is whether you have a loan on your timeshare because if you do you may not be able to take this option until you have it completely paid in full. This also holds true with your maintenance fees as well. So if you feel this is an option for you here is some basic steps you can follow.
Step 1: Contact Your Resort
The first step you need to do is to contact your resort. You can do this in a few way from just calling them to sending them an email. In my case my resort was located in Aruba so I just sent them an email to make things easy.
In the email just let them know that you are interested in selling your timeshare and you want to know if they have a buyback option that is available. Keep the email simple and sweet. Don’t go into any long drawn out email and just let them know what you are looking to do.
Step 2: Review the Offer
Once the timeshare sales rep gets back with you he will let you know whether this option is available or not. If their is they may tell you that they don’t buyback timeshare units but that they have a third party company that does this.
A lot of times this is how timeshares will buy back the unit through a third party company and this is perfectly fine. One caveat to this is that the resort may require you to pay your current maintenance fee in order to do this. This was the requirement in my case but it was well worth it to get rid of it.
Step 3: Sign the Agreement
Once you’ve both come to an agreement they will send you letter containing the agreement. This will make the agreement binding. At this point all you should have to do is sign the agreement and send it back.
Side Note: You should not be required to pay a big upfront fee other than the maintenance fee if it happens to be due.
Step 4: Get Paid
Finally once you’ve signed and sent the agreement back it will take anywhere from a weeks to a month to get your check. This all depends on the resort and how fast they get things approved.
So their you have it, this is first method to selling your timeshare with no upfront fees.
#2 Sell Your Timeshare on Vacatia
Side Note: First off I want to be upfront and say that I’ve never used this service before but it come highly recommended by Clark Howard. You can read more on what he says here.
I recently came across this option when Clark Howard mentioned it on is show and I’ve found this to be a possible option when it comes to getting rid of your timeshare and paying no upfront frees. Instead Vacatia only charges you a success fee when you sell your unit.
This is just unheard of when it comes to timeshare resale!
In order to sell your timeshare with Vacatia you need to follow their 5 step process. Below is a list of the 5 steps to take to get started.
Step 1: Sign Up For Free
You can sign up by going here.
Side Note: I am in no affiliated with Vacatia.
Step 2: List Your Timeshare For Sale
Once you’ve signed up with Vacatia go ahead and list your timeshare for sale. You can sell anything from your fixed or floating week to your timeshare points here.
The best part is it doesn’t cost anything to list your timeshare with them unlike resale companies which will require you to pay a huge upfront fee before they will even list your unit. One thing I’m not quite sure of when it comes to Vacatia is how to price your timeshare with them.
My guess is you won’t get what you paid for it, however if you are someone who does get a decent return on selling your timeshare through this service I would like to hear your story in the comments below and how things worked out for you.
Side Note: If you want to list your timeshare on Vacatia and have the best chance of selling it, it’s best that you are current will all maintenance fees.
Step 3: Guarantee the Accuracy of Your Listing
Once you’ve listed your unit the next step is to verify that you own the resort unit to help avoid fraud. Doing this will give you the Vacatia Guarantee which may help you sell your listing faster. Below is a picture of how this will look in your listing on Vacatia.
Step 4: Talk to Interested Buyers
One thing I find very unique about Vacatia is that they allow perspective buyers to contact you about your property through their own internal messaging system. I’ve never seen a company who sells timeshares do it quite like this.
I can remember signing up with resale companies years ago when I listed with them and I would call them every once in a while to see if anyone was looking at my unit and typically they just gave me the run around.
With Vacatia you are in control of talking to the buyers and this is gives you a lot more leverage over the situation.
Step 5: Complete Your Timeshare Sale
Once you and your buyer have agreed on a price the last step is to complete the sale. To do this a purchasing coordinator will get in touch with you tell you exactly what you need to do step by step. This will include signing a legally binding purchase agreement and funds will be put in an escrow account until everything is complete.
Once the sale has been completed you as the seller will be required to pay a success fee. Below is a list of the fees.
Side Note: If you happen to sell your timeshare with Vacatia I’d love to hear your story in the comments below.
#3 Rent Your Timeshare on Vacatia
The final option to consider if you can’t sell your timeshare right now is to rent it on Vacatia. If you have an available unit to use up and you don’t have the time use them this is a great way to make up some of the money while your trying to get it sold.
The problem with this years ago was much the same with selling your timeshare. You had to pay upfront fees to get the unit rented and in most cases this never guaranteed anything. On top of that the fraud and scammers out there are everywhere and it can be hard to decide who to trust.
So if this is your situation then this may be an option for you as well. Below I’ve laid out a list of steps to help you get started. You can also learn more by going here.
Step 1: Fill Out the Application
The first step in this process is to fill out the application to rent your unit. They may also ask you to see a copy of your deed or recent maintenance fee to make sure you are the owner of the unit and cut down on fraud. You can do that by going here.
You can rent your timeshare unit, condominium at a professionally manage resort, or points.
Step 2: Book Your Unit
Once your unit is listed, Vacatia will take care of everything when it comes to finding people to rent your unit. Typically people will rent your unit right online where they will be able to view photos of your unit and all the amenities.
Step 3: Get Paid
Finally, once they book your unit it’s time to get paid. Vacatia will charge you success fee but this will not be nearly as big as the fee if you were to sell your resort.
On top of that you won’t get paid for your rental until 24 hours after the guest check in. This is to avoid any charge backs just in case the guest pull out of their agreement.
Can I Sell My Timeshare Without Upfront Fees
If you’re asking Can I Sell My Timeshare Without Upfront Fees you definitely have a few choices. However I suggest you take the time as I have to really research all of these options before you start.
With an industry full of ripoff deals and scammers you need to consider every option. I was ripped off by two resale companies costing me over $1100 and my goal is for this not to happen to you too.
So what are your thoughts. Have you considered any of the options I’ve shared with you? Feel free to share your story and how you were able to sell your timeshare and not pay the upfront fees in the comments below.
Are timeshares worth it?
In my lifetime I’ve owned 1 timeshare and that was more than enough for me to last a 100 lifetimes. I’m going to be completely honest, I lost a lot of money when it comes to timeshares but I don’t want to make this another one of those everybody hates timeshares articles without at least covering the benefits of them as well.
In the end I want to give you the view from both sides of the fence to help you make a more informed decision of whether this is really the best choice for you. After all this is the whole reason I started this blog was to help people make better financial choices.
My hope is that this article helps you consider some of the hidden factors that most people don’t know before they buy a timeshare as well.
I’m also going to be honest and up front and say that I am not a big fan of them as you can probably already tell and their are a lot of people who back this up from Dave Ramsey to Clark Howard but again I want this to be your decision.
Finally, if you have any questions after reading this article feel free to ask them below in the comments section and I would be glad to help you out.
So with that said read on…
Benefits to Owning a Timeshare
To start here are some of the benefits I know of when it comes to timeshares you may or may not have thought of. If you know of any other benefits than the one I’ve mentioned please feel free to share them below in the comments.
#1 Allows You To Have a Nice Place To Go On Vacation
The first benefit is that it allows you to have a nice place to go on vacation every year. For most people we don’t always get the option to go someplace nice for a vacation and with a timeshare this is definitely an option.
I know the unit I owned in Aruba was very nice. It had two big swimming pools, hot tubs, a nice restaurant, and a nice view. It wasn’t right on the ocean or anything but it was still a nice place.
#2 Inexpensive Compared To All Inclusive
Back a few years ago I actually did a comparison between which was cheaper to do a timeshare or an all inclusive vacation. You can see my results by checking out this article here.
What I found even with all the extra cost is that the timeshare was still cheaper. The only thing was is that I was comparing this against the resort that I owned which was on the cheaper side of things.
I paid right around $4500 for my timeshare but if you got something like a Mariott which my brother in-law bought in Aruba you may have paid upwards of $25,000 or more.
In this case the numbers may have not penciled out as well but if you were on the cheaper end of things it might still be worth it to go the timeshare route.
Side Note: Even though I’m saying timeshares can be a cheaper route please read the rest of this article before you make a final decision.
#3 Rent it Out To Friends, Family, and Guest
Another great benefit is that people often tell me is that they may not be able to use it every year, in that case I recommend you rent it out. This is the great thing about timeshares is that you don’t have to be the one always using it.
You can rent it out to friends, family, or even put it up on Craigslist to rent it out to someone. Now I should mention that their is a fee to do this but even with this small fee you’ll at least make a nice little profit for renting it out.
If you rent your timeshare for a $100 a day it’s still going to be cheaper than going to any other resort so why not earn some money from it when you’re not using it.
#4 You Get a Whole Week
Next with timeshare you can get a whole week to yourself. If you figure one night for a couple at an all inclusive resort at around $250 a night your looking at right around $1750 plus taxes and fees to stay there for a week.
With a timeshare you are paying nothing, since you already own the unit you get to forgo this cost because you paid for it upfront.
Side Note: I should mention that it isn’t costing you anything as long as you have the timeshare paid off in full. If you still have a loan on it you are technically still paying for it.
#5 You Can Go Almost Anywhere
One objection I also hear from people is that they don’t want to buy a timeshare and be forced to go to the same resort each and every year and I agree because this was one of my big objections before I bought my timeshare but what I learned is that you can exchange your unit to go someplace else.
For example, instead of going to Aruba I decide that I want to go to Hawaii. I can opt to put my unit in the exchange marketplace and take a unit in Hawaii if it’s available.
#6 It Gets Cheaper the Longer You Have it
Finally, one last subtle benefit that many people don’t think about is that the longer you own a timeshare the cheaper it will get. What do I mean by this…
For example, if you buy a timeshare that cost $25,000 and an average all inclusive resort cost you $1750 a week and you use your timeshare once year. In roughly 14 years you’ll have basically used your timeshare enough times to recoup the initial amount of money you paid for it.
Every year after the fourteenth year you own your timeshare it will be at a cheaper cost since you have used it enough to compensate for what you paid on it.
Downside to Owning a Timeshare
Now that I’ve covered the benefits to owning timeshare let’s cover the other side to owning them. These are the things I wish I would’ve known before I bought mine and hopefully they will help you make a better decision as well.
#1 Not Available in all Places
First off, timeshares are not available in all places. When it comes to tropical destinations and bigger cities you’re more likely to find a timeshare that you can exchange and use.
However if you are planning to go somewhere off the beaten path then it’s likely you won’t find anything.
I remember one time in particular I was planning to go to Las Vegas for a convention and I was sure I would be able to use my timeshare there but what I came to find out was that this wasn’t the case.
I found that all the major hotels make up the Las Vegas strip and any timeshares were not going to be close to where the convention was at. In the end this was a big downside and one I did not consider upfront.
#2 Maintenance Fees
One of the biggest reasons I didn’t like my timeshare was the maintenance fees. My unit ran around $700 every two years which actually isn’t much compared to other resorts but it was still a pain to pay.
This fee was the main reason I wanted to sell my timeshare because even though I didn’t want it anymore I still had to make the payment, and I know this is a struggle many people face when owning a timeshare.
In my next few upcoming articles I’m going to talk about your options when it comes to selling your timeshare and what you should not do as well.
#3 Network Fees
Another fee you’ll have to deal with is a network fee. A network is a company that allows you to exchange your unit to go some place else. The network I was part of was called Interval International. I can’t recall how much the fee was to be apart of Interval but I know it can be fairly pricey.
I also noticed their website does one heck of a job of not letting you know how much it cost either which I feel is a huge negative when it comes to this company. I often feel when companies don’t want to tell you the price they are usually hiding something from you.
I don’t know if this is how you feel but it’s just the impression I get from them.
#4 Exchange Fees
Now the fees aren’t over yet.
Once you’re a member of a network you still have to pay to exchange your unit. With Interval I remember it being a $100 but this was also 10 years ago so this fee may have gone up since then.
#5 High Interest Rate Loans
Another huge down side to buying a timeshare is the interest rates they charge on the loans they give out. I ended up taking 80% of my timeshare out on loan and they slapped me with a 16% interest rate.
Needless to say when I found this out I end up paying off the remaining balance immediately. Thankfully I was able to do that but it ended up leaving me strapped for cash in a lot of other ways and would end up causing a lot of other financial headaches down the road.
I talked about this in a recent article which I called the financial domino effect.
#6 Hard to Sell
The final reason of all other reasons you don’t want to buy a timeshare is because they can be extremely hard to sell. I left this one for last because this one is the real ringer. Owning a timeshare is not the real problem it’s when you decide that you don’t like it anymore and that you want to sell it.
The timeshare resale industry is littered full of landmines and companies just waiting to take advantage of you. Believe me I know because I fell for their crap and I lost a lot of money because of it. I contacted companies I thought were legit that ended up ripping me off.
I’m not going to talk about how to sell your timeshare in this article but I will have an article that is coming out shortly that will talk about the options.
Are Timeshares Worth It
When you weigh all the options from the good to the bad a timeshare can be a great way to take a vacation but one of the big issues I have with them is that you are essentially pre-buying your vacation and more than that you don’t have as much control over your vacations.
I know some people will not agree with me when I say that but I know this is true because I lived it and I also know of a lot of other people who are living this nightmare as well.
So what is your decision are timeshares worth it? Share your thoughts in the comments below.