5 months ago ·
by Donna ·
Life insurance is an important type of coverage that many people would benefit from. It provides you with essential benefits that can cover funeral costs, supplementation of lost wages and more. This monetary support may be essential for your loved ones’ financial well-being after your passing. However, there is a general perception or assumption that this type of coverage is too expensive for the average person. You may not think that you can afford to make the monthly premium payment, or you may believe that the premium would be too high. Some people think that it would be better to simply save the money in an interest-bearing account on their own rather than to pay a premium. However, there are a few good reasons why life coverage is more affordable than you might think.
Lock in Low Rates Today
A life insurance premium is typically calculated based on several important factors. The primary factors are your age, your gender and your health status. The type of life coverage and the amount of the benefits are also relevant factors affecting the cost of life insurance. When you purchase coverage today rather than in a year or two, you have the incredible benefit of taking advantage of your current age. You are not getting any younger, and rates typically increase each year that you age. When you buy coverage, you lock in a rate for the remainder of the term. This means that if you buy coverage with a 30-year term when you are 25 years old, you will still be paying the same low rate when you are 53 or 54 years old as you did when you were 25. In addition, many people generally slowly decline in health over the years. It is reasonable in most cases to expect to qualify for better rates based on your health status when you are 25 rather 35 or 45 years old. When you hear other people discuss the premium on their insurance coverage, keep in mind that they may have locked in a rate based on reduced health or an older age than you may be able to lock in if you purchase coverage today.
Your Control of the Premium
In addition to your age and health, your coverage type and benefits directly affect the premium amount. Term coverage is a type of insurance that expires at the end of defined period of time. A 10-year term will have a lower premium than a 30-year term will have in many cases. There is also another type of coverage, known as universal or whole life, which extends for the remainder of your life. You will lock in the rate now for the remainder of your life, which can be advantageous to some people. However, the rates for this type of coverage are usually more expensive. In addition to controlling your premium cost based on the term of your coverage, you also have control over the cost through the benefits amount. You can realistically choose benefits that range between $10,000 to $500,000 or more, and the premium varies dramatically based on your coverage amount.
The Cost Associated with Not Being Covered
You can see that the premium amount for your life coverage is dependent on several factors that are under your control as well as several factors that may yield more affordable rates now rather than later. In addition to these points, keep in mind that there is a cost associated with not being covered. While everyone will reach the end of life at some point, there is no way to know when that day will come for you. Even individuals who are young and healthy can pass away from an accident, a sudden illness or something else. With the knowledge that death could come for anyone and at any time, you are taking a risk by not buying coverage. Consider the financial strain that your loved ones may feel if you were to pass away today.
The premium for life coverage will be another regular expense in your budget. This expense is not a requirement in the same way that groceries or your mortgage payment are requirements. However, you must plan ahead for the care and well-being of your family. There is never a question about if death will come. Instead, there is only a question about when death will come. With this in mind, you can see that it makes sense to purchase at least a modest about of life coverage sooner while you may qualify for lower rates.
5 months ago ·
by Donna ·
In today’s world of high technology, identity theft is one of the most common dangers for anyone managing their financial/credit affairs online electronically. The convenience and at times necessity of online banking and bill management have left many users unsuspecting victims. While dangers do persist, there are safety tips that everyone can use to minimize this threat to personal information and financial data.
One of the simplest ways to keep personal and financial information out of the hands of individuals intending on stealing personal data is frequent credit report monitoring. Closely monitoring your personal credit report can help in the detection of unfamiliar and/or inaccurate debt that has been reported to credit agencies. The sooner fraudulent data is discovered on a credit report, the easier it will be to report and resolve the matter with minimal damage to personal credit.
Keeping your social security number out of the hands of malicious identity thieves is another safety tip that can greatly reduce the chances of becoming a victim. This may seem difficult to most people since nearly every credit card company and financial institution require a potential customer’s social security number to open and maintain personal accounts.
The Internal Revenue Service has a potential alternative to using your personal social security number for such transactions. A federal tax identification number can be issued through the IRS which can legally be used in place of the social security number. It is much more difficult for those engaging in such activity to access and use a federal tax identification number fraudulently.
Another method of preventing identity theft is to choose and use passwords wisely when engaging in online activity. Among safety tips, this is the most often misused measure individuals fail to take seriously when attempting to keep their personal information secured. It is recommended that passwords for banking, email and other sensitive information be changed often in order to offset the chance of becoming a victim. It is also pertinent to chose a password that is complex enough to deter identity thieves from being able to access personal data.
Equipping your personal computer with antivirus and identity theft protection software can serve as another safety measure against having personal information stolen. There are several inexpensive software applications that can be imperative as a first line of defense.
Properly discarding credit offers, receipts and other documents that arrive via the mail is an overlooked measure that many individuals fail to do. A common practice for identity thieves is to steal unsecured mail that has been either thrown away or left in the mailbox by the rightful recipients. Nefarious individuals have easy access to opening credit lines and other accounts in your name if they are able to have access to any of these items.
While there exists a vast amount of additional safety measures individuals can use to protect themselves from identity theft, the tips mentioned will greatly reduce the threat and help to keep such information out of the wrong hands.
5 months ago ·
by Donna ·
Homeowner’s and renter’s insurance policies offer personal property coverage. There are many categories that insurance companies use to assess reimbursement for theft or damage to an item. We will discuss the replacement cost and actual cost value. The coverage stated in your policy will determine which one applies to you. A good place to start is to know the difference between the two different claims payouts.
What is the actual cost value?
This is one of the methods that an insurance company uses to reimburse your claim. It is the least expensive and benefits those on a tight budget. Using the actual cost value (ACV) method, you will not receive the full amount of money that your paid when you originally bought the item. An exception to that rule would be if you have some antiques in your home.
The insurance company has a way of compiling the actual cash value of an object. They start with determining the market value of an item. This begins with discovering how much you paid for it. Next, they consider how long you have had the object. There are other criteria that may be used such as the expected lifespan of an item and its condition. The ACV is the value of an item minus depreciation.
What is the replacement cost?
It is another method that an insurance company uses to pay out a personal property claim. This is the most recommended coverage to have because it has more benefits for the home owner. A claim is handled differently than an actual cash value request. The claim amount tends to be of a higher amount.
When using this process, the owner is offered how much it would cost to re-purchase the damaged item as if new. This type of coverage is used for many objects including insuring the house itself. Insurance companies use contractors with house structure claims due to their expertise in knowing the materials used and how to estimate the costs to re-do a home.
There are many things to consider when preparing to buy new coverage or switching insurance companies. Do you prefer replacement cost or actual cash value? In both instances, you need to already have the coverage before an incident occurs. Consider the cost and benefits of the different value assessments. Do you have many high-end products to insure or a small amount of less expensive items? This may make a difference.
It’s important to read your policy and fully understand the type of plan that you have. Don’t forget to ask an insurance professional if you have questions. It would be helpful to take an inventory of your possessions. Taking pictures of your inventoried items will make the process easier when you have to file a claim. Another factor to keep in mind is the deductibles that you would need to pay before insurance will make a payment. Lastly, remember that your insurance has limits and may not pay the entire cost of replacements.