Voices in Finance » Insurance

Tips To Prepare For Rising Interest Rates

Mike — Mon, 31 Oct 2011 06:52:24 +0000

The instability in world finances has a direct impact on everyone with debt, none more so than homeowners. Rising interest rates are unwelcome but are a fact of our financial lives, so it pays to be prepared. Most importantly, it’s vital that your know your financial limits – just being able to make your repayments now is going to turn into a nightmare if rates increase down the track, and the chances of defaulting on a loan then become much greater. It’s not just home loans than can be affected – taking into account all of your current and future finances, from cash loans to car loans, is something we should all look at to make sure we are ready.

Make extra repayments now

Reducing your debt while interest rates are lower is the best way to prepare for future interest rate rises. You can do this in two ways. Firstly, pay more than the minimum repayment on your loan, and do it regularly. This will provide you with surplus funds if rates rise and in the process will give you confidence to ride out the rates storm. Paying extra also reduces the life of your loan, which in the long run will save you thousands of dollars. Secondly, consider making a lump sum payment against your loan. If you are lucky enough to have some extra cash, use it to pay off some of your loan. It has the same benefits as paying more than the minimum amount each repayment cycle, but leaves you with the extra cash you would otherwise commit on a weekly, fortnightly or monthly basis.

Loans health check

Interest rates don’t suddenly jump overnight – there are plenty of indicators which give us prior warning, and they shouldn’t be ignored. So if everything points to interest rate rises, and especially a prolonged period of increases, then a check of your loan situation is a good idea to make sure you are getting the best product for your needs. The use of a broker can be a big advantage in this situation as they can take into account your current loan and match it against what else is available. They can then make recommendations with an expert eye on the future. It may be that switching from a fixed to a variable rate is the best bet, or consolidating several loans into one. Just remember that the fees associated with moving from one loan to another can often nullify any future savings through lower rates. Have a look around the internet as well – just like getting car insurance quotes, it can be simple and secure to get some information and advice that can put you on the right track.

Stick to your budget

If you haven’t got a home budget then it is hard to keep a track of your finances and exactly where all the money is going. So it makes good sense to formulate a budget and stick to it. A good budget that has been well thought out will reveal any cash “leaks” and identify where you can cut back on spending and potentially put it into reducing debt or making extra loan repayments. It’s also important to save money as well and any surplus funds identified in your home budget can be put away for a rainy day. Rising interest rates can also be used in your favour – when they do go higher, consider putting that extra cash into a term deposit where you will earn extra interest as rates rise.

Tricks for Finding Affordable Car Insurance These Days

J. Hamilton Fraser — Sun, 24 Jul 2011 21:54:04 +0000

Car expenses can be a vexing proposition if one is living hand to mouth or if you have suffered the loss of a job. It pays to be an intelligent shopper when it comes to these big expenses.

If you are confused about how to find affordable car insurance then the best thing to do is to research and get information online. Almost everything can be found in the internet today and car insurance companies that offer affordable deals are no exception. You may hear from other car insurance advertisements saying that you might be paying too much for your car insurance but the truth is there is no standard rate for car insurance cost. There are many factors that are involved in the insurance cost so it is usually based on averages.

It is true that you can compare insurance prices in the internet but if you want to really save money you can try increasing your deductible. It is much better if your car is new and in top condition because this means you are confident that there will be no trip to repair shops in the near future and you can raise your deductible to lower your monthly payment.

You can also ask the insurance company for car insurance discounts. They do not often include the discount information on their advertisement so you have to get information about this. An insurance company can have discounts based on your demographics. They can also give discounts if your son or daughter is an honor student. Even your job and career can qualify you for a discount so it is better if you ask more details about their discount.

It is also much better if you have a safer car because it is very much eligible for discounts. If your car has a GPS, car alarms, winter snow tire, additional air bags and other safety features then you can qualify for a discount.

So these are just some of the information that can help you get affordable car insurance. Remember to do some research and understand all the benefits and policy coverage that the insurance company offers you.

How Can Homeowners Beat Their Home Insurance Renewal Quote?

J. Hamilton Fraser — Thu, 21 Jul 2011 15:08:08 +0000

Homeowners can beat their home insurance renewal quote when they read some of the following money saving tips. Just implement as many as you can before obtaining another home insurance quote. Homeowners should be able to beat their renewal premium if their personal circumstances, level of cover and excess have not changed.

Before homeowners go off getting quotes I recommend that they find visit a home insurance comparison website. These websites have all the latest deals and offers from the top providers of buildings and contents insurance. You can compare all the benefits and features of each insurer in one place. This way you can see who is offering the best deal. They display discounts, incentives, free features and reward points, plus how much it costs to pay via monthly direct debit. Look out for multi product discounts such as when you buy buildings insurance, you get contents insurance for free or discounted. Its a great way to save even more money. When you have selected a couple of insurers that you like, go direct to their website and get a quote from them. The Direct Line home insurance offer is always a good place to start searching for buildings and contents insurance deals. See if they can get you a low cost premium.

Before you do get a quote homeowners should consider these other money saving tips.

Securing your property against thieves is an important point to consider. Installing your home with a security alarm will keep your personal possession safe, plus when getting a quote, if you inform the insurer that you have a burglar alarm fitted at your home, you will probably earn yourself a small discount. Why? Insurer give discounts to policyholders who they deem to be low risk, low risk for make a claim. If you fall into this category you get achieve more discounts, which means saving more money.

A quick and easy way to achieve a big discount is to increase the policy excess. This really is a quick way of save money, but don’t forget that if the time comes that you need to make a claim, you will have to pay the full excess amount to the insurance company before any repairs are made.

Homeowners should review their level of cover too. Do you really need home emergency, legal protection and accidental damage? Extra house insurance features like these just cost you more money. To save more money consider taking some of them out, in order to reduce the premium.

Shop Smart for Philadelphia Auto Insurance

J. Hamilton Fraser — Thu, 23 Jun 2011 18:21:11 +0000

Owning a car comes with responsibilities and the owner is expected by law to have car insurance. You might be familiar with the terms deductibles and premium but fail to understand the principles behind car insurance. Philadelphia Auto insurance is quite similar to other states where you are required to have some sort of proof of coverage, which opens up optional coverage to protect you in the event of an accident.

If you are thinking of purchasing Philadelphia car insurance, you may want to consider such details as the type of car you have, it’s age, your driving record and the funds available to pay insurance. Understanding the basic requirements of car insurance policy will help you to opt for those sections to incorporate in your policy to ensure your peace of mind.

The insurance policy may be personalized to meet your specific requirements. Most packages have several coverage’s blend into one. Liability insurance covers property damage or injuries that others may receive in case of an accident. The property section will pay damage to other cars or property. The state law requires you to have liability insurance when you buy Philadelphia auto insurance. Each state stipulates the minimum insurance coverage you may have but you may acquire more if you so desire.

You may also want to consider the collision insurance to cover damages caused to your car in case your car collides with other vehicles or objects. On the other hand, comprehensive insurance is some kind of umbrella policy that will cover damages to your vehicle other than an accident such as theft, vandalism or damage by hailstorm. These are basic policies that you may have but you may add more Philadelphia auto insurance policies if you like. Decide what you desire and get different quotes and settle for the right insurance at the best price.

The Policy of Whole Life Insurance

J. Hamilton Fraser — Fri, 17 Jun 2011 17:32:03 +0000

Today’s corporate world is being dominated by the young professionals. They work with zest. They think sharply. Their ideas are fresh, bold and attractive. Their actions are clear-cut, upfront, and results-oriented. They are the Zuckerbergs of the world – ambitious but never discriminating, business-minded but give same importance to end users.

No matter how active and busy these young professionals are at work, they always find time and ways to enjoy. They are not anymore confined to partying at night. They have gym memberships not to mention their weekend sports activities. They go to spas and regularly visit their dermatologists. These things they do because they believe that beauty and health are their assets in the corporate world. Too minded of what would make them stay in the corporate world, they tend to forget that the future is way bigger than the corporate world. While still young, compelling and persuasive to be given bigger work opportunities, these young professionals should better start securing their future by investing their wealth on certain types of investments like life insurance.

One very good life insurance is whole life insurance. What is whole life insurance? It is the most stable insurance alternative because under this type of insurance, the insured is covered in his or her entire life usually until age 100. The policy never lapses as long as the premiums are paid regularly. Most of the time whole life insurance premiums are paid yearly. However, like any other type of insurance, whole life insurance is not perfect.

What then are whole life insurance pros and cons? The fact that your coverage is lifetime, its premium is expensive. Still, you are assured that your beneficiaries will get the death benefit without regard to the time or year death occurs. Other insurance types such as term insurance expire after a certain period. You may have the option of renewing your term insurance policy but the premium cost will increase.

8 Ways on How to Play the Field with Insurance Companies

Mike — Mon, 06 Jun 2011 07:58:30 +0000

There is no way you can get the best out of car insurance if you don’t make the most of your options. Not all insurance is the same, and not all will give you the flexibility to do what you want, and get the best value for your money. In this world of competition, market forces, and the huge amount of internet based information exchange, there are many ways to get a better deal. Insurance renewal notices or the decision to get insurance for your car, should be thought of as a game to play, with your aim to get everything you deserve. Here are some tips on how to play the field.

Online Quotes. Any decent provider will have online quoting tools to get the quote you are looking for. Make sure you read the policy details they will also provide online. You should get as many quotes as you can. Some people will think that 3 quotes will be enough, but you should get a lot more. The more you get, the better you can understand. Take your time to do your research.
Renewal Comparison. Do you know your renewal notice may be higher than what the company is quoting online? This may be because you have been with that company for many years, and they are assuming you will stay with them. They might not be informing you of promotions they have now. Always check your renewal quote compared to what that company is currently online.
Check Rating Sites. There is an array of brand and company rating sites on the internet. They allow users to post and rate their experience with different companies. You should also get involved with these websites. You can find out the payout rating for each company and what other customers have experienced.
Use Social Media. If you are not happy with your current provider, look for their online social media sites, and let them and other customers know. Always state your experience. You will probably get a lot more response than compared with a normal letter, email or phone call. This is because other people can also see everything you are saying. This is a great way to start looking for a discount to renew.
Negotiate. Let your insurer know you will be leaving them, and you will influence others to do the same. You can try to get them to beat the price of their competitors when it comes time to renew.
Take Your No-claim Bonus With You. If you are changing to a new provider, tell them you want to take your no-claim bonus, or at least a part of it with you. Never stay with one provider because of a no-claim bonus. You might find another insurer which has a better price.
Look for Combined Deals. Always see what group of coverage you can shift to a new insurer, and what deal they will give you to do so. Using the weight of the total value of all of your insurance, will mean you can get a better deal.
Group Buying. Are you in any social group or other group? Have you thought about getting everyone together and bulk buying deals? This is a very good way to get your car insurance much cheaper. If the insurer knows there is a group of you buying, you have more purchasing power.

Life is a challenge, enjoy it while you step up to the plate. Getting car insurance quotes and prices was never this much fun.

Have You Ever Been Mis-sold PPI?

Mike — Mon, 06 Jun 2011 05:52:29 +0000

Despite the spate of bad publicity given to it, Payment Protection Insurance does have benefits for some customers.

The UK’s Financial Services Authority investigated how PPI was sold and it found evidence of widespread mis-selling. Five companies received fines.

Yet for some people who take out loans, PPI can provide a vital lifeline in the eventuality that they cannot make their repayments if they lose their job or fall sick.

PPI is sold in conjunction with a range of loans, such as mortgages, credit and store cards and other products such as car finance. Whether or not it would be a good idea for a customer to take it depends very much on their individual circumstances.

If there are two earners within the household, it may be possible to cover repayments on the loan even if one person lost their job or became unable to work because of ill health.

Or perhaps savings could be used to continue making repayments until the situation improves. In both these cases, PPI may not be considered necessary.

Yet, even in dual income households, PPI could offer real peace of mind, especially when it’s unlikely that one pay check would be enough to cover monthly outgoings.

Not everyone is eligible to take out PPI. For example, you have to be in permanent employment which rules out many people such as students, home-makers or those who have already retired from work. The self-employed won’t be covered by most policies.

There are tight rules on how and when a PPI policy will pay out. Most will not cover claims made when an individual takes time off work for stress or back ache. Also, most policies will not pay out for the first 30 days of illness or job loss.

It’s important to note that you do not have to buy PPI from the same company that is making the loan to you. In fact, you may get a much better deal by shopping around, much in the same way that you would shop around with a company like moneysupermarket when looking for the best deal on other financial products.

Obviously the company making the loan to you would very much like you to buy a PPI policy from them, but you are completely at liberty to go elsewhere.

Furthermore, there is no legal requirement for you to have PPI at all. In the past, some companies implied that it was a condition of being offered a loan, but this was never the case and this situation has contributed to the bad publicity surrounding PPI.

If you take out PPI and subsequently have second thoughts after signing, you are legally entitled to cancel it, providing you do so within either 14 or 30 days, depending on the terms of your particular policy. This is known as the ‘cooling off’ period.

But if you took out the policy some time ago it is likely that you will have to pay a penalty charge if you want to cancel it. You won’t get back any of your premiums, unless you can show that you were mis-sold the insurance in the first place.

If the provider didn’t fully explain all the terms and conditions of the insurance to you when you bought it, you may have the right to a refund. You should have been given details of any exclusions on the policy.

If you feel that you were mis-sold PPI, write to your provider in the first instance setting out your reasons and asking for a refund of the cost of the insurance plus interest. If the company does not reply within eight weeks, or you are unhappy with their reply, you can complain to the Financial Ombudsman Service.

Despite the scare stories that persist around PPI, it can provide extremely worthwhile cover for people who experience unexpected changes in their circumstances such as losing their job, or being unable to work because of illness or accident.

Acquire Commercial Insurance Coverage And Be Secured

J. Hamilton Fraser — Sun, 05 Jun 2011 14:54:05 +0000

Insurance is vital to our personal properties such as house, cars, or even jewelries. It is that kind of risk management that is being utilized at times when we have losses due to unforeseen events such as theft, fire or earthquake. There is an exchange of appropriate compensation to the amount of loss acquired in the form of corresponding payment.

There are different kinds of existing insurances; one of them is commercial insurance which is intended basically for business. This is a kind of insurance wherein an entrepreneur can spend on. This is a type of insurance which can be of use especially to prevent losses occurring from fortuitous events.

Property, liability and worker’s compensation are the most common types of commercial insurance. Business property damages are covered by property insurance; third parties is covered by liability insurance and injuries acquired by employees on duty is covered by worker’s compensation insurance. A company may choose additional insurance coverage depending on the need. Risk management is a must is considered when operating a business since it might cost you more than the value of a premium in a commercial insurance. An owner may enjoy his peace of mind since injuries and other untoward incidents maybe totally covered by an insurance so there is no need to worry about potential hazards in case of occurrence.

Since businesses are significant because it helps us in our everyday existence, it is strongly suggested to acquire a commercial insurance coverage. Famous persons like businessmen and even Hollywood celebrities have the knowledge how relevant an insurance so they opt to insure their assets and properties. It is also one way to give you security as well.

It is therefore an advantage to procure a commercial insurance corresponding to the value of your properties and businesses if you can afford it. It is rather an asset than a liability to have one. If you think you want to safeguard and secure your properties and businesses from possible loss due to damage and the like, be sure to avail of a commercial insurance coverage. It would lessen your worries and increase your sense of security.

How to Buy Life Insurance

Mike — Mon, 11 Apr 2011 11:43:27 +0000

Life insurance is a major asset, particularly if packaged with other forms of income-protective insurance, like income protection and/or disability insurance. Buying life insurance, however, involves shopping around and making comparisons to find the life insurance that’s right for you.

Decisions: Checking out your options for life insurance policies

The first thing you’ll notice when you start looking for life insurance online is that there are a lot of choices. This can be a case of “too much information”, because there are so many products on the market.

It’s better to shop for your life insurance on the practical basis of what you need, not just “what’s available”.

For example, there are a range of issues when taking out insurance:

Budget: How much are you prepared to spend, per month, on insurance? This should be an easily manageable amount which has no significant effect on your budget.

Insurance packages: Do you want insurance with investment options? Many life insurance policies contain additional package options which may or may not be suitable for your needs.

What type of life insurance do you want? Do you want “whole life” insurance, or term insurance? (Term insurance is life insurance for a fixed term.)

Do you want trauma insurance and/or disability insurance? These are special types of income protection insurance which are common features of life insurance packages.

Considerations

Insurance packages can vary considerably. Modern insurers are usually prepared to create a customized package for their clients, and that can lead to some useful advantages for policyholders:

Investment packages: Some investment packages are quite positive assets. These investments earn income, which to some extent offsets the cost of the insurance. They’re self managing, auto-pilot investments, very low maintenance, and they can accumulate over time into significant amounts of money.

Income protection, trauma and/or disability insurance: These are “industry best practice” all-round coverage options. Depending on the type of insurance package, they can also be relatively cheap, but obviously you need to see the numbers before making a decision.

Buying life insurance packages

If you’re familiar with the standard business practice of “three quotes”, you will be aware that this approach can sometimes have a few holes in it, and that some quotes aren’t particularly representative or even good quotes.

When buying life insurance, you need to take a very different approach. The best option is to check out the big market leaders first, which will give you a general benchmark for the cost of the insurance policies. You will also notice that the market leaders aren’t necessarily giving the best deals. Life insurance is an extremely competitive industry, and there usually are better deals available.

The good news for consumers is that the new generation insurance policies, particularly from online insurers, are very efficient. You can quite literally set up your policy online, with backup advice and support from the insurer.

Shopping around will give you a short list of insurers. The next stage in the process is to get life insurance quotes for comparison and to contact the insurers directly.

The rest is easy. Tell the insurers exactly what you want, and buy the insurance policies that give you what you want.

House Insurance Offers – Do You Know What To Look Out For?

J. Hamilton Fraser — Mon, 04 Apr 2011 09:39:08 +0000

When it comes to searching for cheap house insurance quotes there are many different ways of achieving savings. Read the following suggestions on how house owners can beat their buildings and contents renewal premium.

Property owners will always find that one of the best ways to achieve more savings is to simply get more house insurance quotes. You can do this by visiting a home insurance comparison site and get the latest deals and offers from the big suppliers of insurance. You can see who has the best level of cover for your home. This can include free features like accidental damage or home emergency coverage, or online discounts, or maybe multi product discounts. The Aviva home insurance review is one policy that you should take a look at if you want a cheaper deal.

When buying contents insurance you may find that some insurers will get you a big discount if you also buy buildings insurance from them as well. So you may want to consider this if you are buying both buildings and contents insurance for your home. It can save you more money.

The installation of a burglar alarm in your house is a great way to prevent burglars from gaining access to your house and stealing your personal possessions. Having a burglar alarm fitted can also get you a small discount when obtaining a house insurance quote. Why? Having a burglar alarm makes it less likely for your house to be broken into, thus you will be less likely to make a claim for loss or damage.

Don’t forget to think about reducing the value of cover that you need for contents cover. Do you know how much coverage you need to protect your personal possession from loss or damage? Must homeowners don’t? Consider reviewing the value need for contents cover, as guessing will make it more likely that you could be over insuring yourself and wasting your money on coverage that you don’t need.

By incorporating a few of the above suggests you could reduce your premium and save yourself some money.