Online Financial Tips

Archive for November, 2011

Don’t Pay Too Much for Burial Insurance!

Burial policies, also known as final expense insurance, are small life insurance policies that are meant to pay for funeral costs and other final expenses. These types of policies are gaining popularity with seniors who find themselves without life insurance because their term insurance has ended, or because prior life insurance policies have lapsed. Many seniors think that there are no affordable options for them to leave money to their families to pay final expenses. A burial insurance policy is the best way for senior citizens to get affordable life insurance.

Some features of burial policies:

• Permanent insurance with level premiums that will never increase.
• Qualifying ages between 50 and 85
• No medical exam required and many health issues are ok
• Issued quickly and death benefits are paid quickly

What If I Have Major Health Issues?

Most burial policies are easy to qualify for, even if you have some minor health issues. The application usually consists of a health questionnaire and the life insurance company will typically check to make sure there is nothing in your health history that you did not disclose. But what if you have more serious health conditions? There are policies that are known as guaranteed issue final expense policies, and nobody is turned down. The premiums are higher, but for those who feel that they have no other option, these policies can provide peace of mind that their final expenses won’t be a burden on their families.

Which Company Has the Most Affordable Rates?

There are many companies that offer affordable burial policies for seniors and the elderly. Since each company has different underwriting requirements, the best company will differ from person to person. Your rates will depend on your age as well as your health history and smoking status.

If you’ve been looking at any large balance loans regardless of whether it’s for a house, car, new equipment for business or something else entirely that you must understand that you cannot simply look at the main or base cost and then expect that  will be all you’ll be paying, unless of course you decide to pay in full and in cash. But that is generally not the way most people will end up owning their vehicle. In short, you’re most likely going to need a loan and as such you’ve got some work to do before you go and apply.

Of course, you want to make sure of your budget first and the easiest way to do this is to use an amortization calculator. Although some say that using this gets in the way of going after what they want. However it is always a good idea to know exactly what you’ll be able to pay and for how long rather than running off without this information although this is tempting especially the case of a new car!

Similarly, there are those that say that using an amortization calculator complicates things to the extent that they get confused and cannot figure out exactly what their payments should be or what the can afford. While this can be true for some, here again you want to make sure that you find one that is easy to use it yet allows you to play with the amounts, the length of time, and of course the interest rates. The reason you want to do this is you want to not only have your first and best option you also want to have several different options available to you. After all, I’ve yet to hear about any lender accepting someone’s very first offer.

So it pays for you to play with the numbers and have several different options available so that you can more easily and more quickly come to an agreement with the lender of your choice. This is where an amortization schedule calculator is invaluable because it allows you to see a clear picture of your financial obligation as it pertains to the loan you want. It also allows you to truly figure out what exactly you can afford.

In our highly technological and very fast society we are like a sitting duck without having a debit card. But the one draw back for some people is that most people find there selves in a critical credit situation at times who in turn make it hard to get a credit card. The first good thing to do is to be going online and look for all the various people who issue cards to people who have bad credit.

These cards range from secured cards to prepaid cards alike and they all seem to be the same. First thing to do is to know what kind of features you are looking for in a card, the preference of not having to carry cash. Plus it is also something that will improve your credit score. The next best thing to do is to compare all the benefits of most cards before you choose one.

The first fact is that prepaid cards are also like debit cards you would just put money in an account and then draw it when you are ready. Prepaid cards are accepted worldwide much like a normal credit card. Most of the times there is instant approval and also no interest on the money you spend but there are other fees. Secured car5ds look and operate just as a real debit card would; you make a deposit to an account which is also your credit limit. Next is that there are high interest balances, these are reported to the relevant tax agencies to help boost your credit score.

Having problems by the big amount you’re paying for your auto and home insurance? Are you looking for a better quote? You don’t have to because there are lots of tips you can follow for you to get considerable auto and homeowners insurance savings. There’s also a good chance that you could find better insurance rates from other insurer than what your existing insurance company is offering.

It is always wise to take time to review the policy from various insurance companies. If you already have policy but you’re about to give up because of the high rates required by your insurer, better start looking for new insurance company.

If you think shopping around for an insurance company would be a hard task for you, better think again. With the handy dandy Internet, it is now way too easy for consumers like you to analyze and compare various policies as well as find rates that’s easy on your pocket. Despite such convenience, it seems like customers do not spend as much time shopping around for auto and home insurance as they do when searching for a new vehicle or home.

Among the ways to help you save on your auto and home insurance are:

1. Maintain a clean and up-to-date driver’s record.

2. If you qualify for a discount, be sure you get it.

3. Get a sensible car that’s outfitted with security, safety, and anti-theft features.

4. Do the with your home plus live in a safe neighborhood away from possible floods

5. Choose an inexpensive yet good insurance policy.

6. Presume more risk by adjusting your coverage and increasing your deductible.

For you to find out the discounts you are eligible of, you must first know the different discount categories. These categories include:

• Renewal Discounts and Combined Coverage

One big source of auto insurance savings is to get policy from the same company that provides you with your other coverage such as your home insurance. Before signing up, find out first if the company offers combined coverage. If it does, then that’s the insurance company for you since it can offer you lower premiums for your auto and other policy.

Make sure also that you avail of the renewal discount that most insurance companies is offering. Such discount is offered to clients who have been insured with the same insurer for a long period of time.

• Low-Risk Occupations

There are occupations that insurance companies consider as low-risk. You are fortunate if you belong to the group of people who have low-risk occupations because there is a big chance that you might get discounts from most insurers. Since not all companies are the same, it is better to shop around first to find out if you will receive a discount on your auto insurance because of your occupation.

• Auto Clubs and Professional Groups

If you are affiliated with Triple A or a member of other professional associations, there’s a chance that you’ll receive lower insurance rates. Ask your employer if you can avail of any insurance rates for your group. You can also inquire with your company representative about the price of policies.

• Discounts for Auto Security and Safety Features

Safety and security devices installed in your vehicle and home definitely reduce your insurance premiums. Among such devices are anti-lock brakes, car alarms, home alarms and automatic seat belts.

If you are trapped in high insurance premiums, please consider these categories the next time you buy an automobile and home. Insurance companies keep these things in mind when calculating the cost of your insurances. Please put into consideration the above factors. Sure enough, you will love the home and auto insurance savings you’ll get.

There are different kinds of mortgage insurance. Private Mortgage Insurance (PMI) is insurance that protects the lender – the mortgage company. Many home buyers cannot afford to make the traditional 20% down payment on a home. They can make SOME down payment, but they don’t have and can’t get the money necessary to make a 20% down payment. With less than a 20% down payment, the lender is taking a larger risk. PMI is their guarantee that they won’t lose money. The buyer pays the monthly premiums for PMI.

The Federal Housing Administration (FHA) and the Veterans Administration (VA) are both governmental entities that guarantee mortgages. Borrowers must meet certain requirements in order to qualify for an FHA or VA guaranteed loan.

Basically, mortgage insurance works like this. Let’s say that you want to buy a home that sells for $264,000 – that was the average price of a home in the U.S. in October 2007. A 20% down payment would be $52,000. Not many people can come up with that much cash all at one time. If you can make a down payment of, say, $15,000, a private mortgage insurance policy will be written to insure the balance of the usual down payment, and the premiums will be added to the monthly payment.

Many people do not realize that the PMI policy can be canceled after the mortgage has been reduced and/or the home has appreciated in value.

In the past, buyers were not informed that mortgage insurance could be canceled when the loan-to-value ratio decreased to a certain point – usually 78%. The Homeowner’s Protection Act of 1998 made it mandatory for companies to inform buyers each year about the terms and status of their mortgage insurance and give them the option to cancel when it was no longer required by law.

Private mortgage insurance or PMI as is known is a form of insurance new homeowners are required to purchase. This is particularly so if their down payment is 20 percent or less of the property’s valued price or sale price. The main reason for private mortgage insurance is to protect lenders in the case the new homeowner defaults on their home loan.

Although private mortgage insurance has a bad reputation since it only protects lenders, it is actually a good thing. Reason is it has allowed millions of people to be able to buy homes with smaller down payments. Previously, these people would not have been able to afford a home had the down payment remain the same. Another important reason is private mortgage insurance can help you qualify for home loans.

Cost of Private Mortgage Insurance

The cost actually varies depending on the mortgage loan and the monthly down payment. Usually, it is half a percent. To calculate your private mortgage insurance, you can use this estimated formula:

Annual private mortgage insurance = 100 – (percentage of down payment paid) * (sale price of house) * 0.05

Let’s take an example. Suppose you brought a $500,000 house. You pay a 20 per cent down payment. So using the formula as above:

Annual private mortgage insurance = (100 – 20) * $500000 * 0.005 = $2000

Your monthly mortgage insurance will be around $167.

One important point to note is you should always keep track of your payments and notify your lender when you have reached 80 percent equity of your house. Even though the Homeowner Protection Act requires lenders to notify you of how long it will take you to pay, it is still better to keep track of it yourself.

There are some cases where lenders make homeowners continue their private mortgage insurance all the way through the lifetime of the loan. This usually applies to high risk borrowers. Therefore your payment history and credit rating such as your FICO score plays an important part as well.

Some people hate paying private mortgage insurance for years. There are some ways around it.

One way is to pay more interest on your home loan. Some lenders will waive the private mortgage insurance requirement if you agree to pay a higher interest rate. Since mortgage interest is tax deductible, it can be a good idea to go ahead.

Another way to avoid paying private mortgage insurance is to prove to the lender that the value of your home has risen. If the value of your home has risen significantly, your home have already have the 20 percent or more equity you need to cancel the mortgage insurance. However, it does take time for the lender to verify your claim, sometimes as long as a year.