bank insurance guide

How Do I Remortgage With Bad Credit?

2011-07-15T07:51:00.000-07:00

Remortgaging is a process that allows homeowners to consolidate debt or lower payments by changing lenders. In this process, a new lender with more amenable terms buys the mortgage from the original lender, so that the homeowner can now pay off the debt with a more flexible repayment schedule. It is often possible to remortgage with bad credit, though it may initially cost more and take some serious research on the part of the homeowner. Deciding to remortgage with bad credit can actually help rebuild credit scores over time.

In order to remortgage with bad credit, it is first important to figure out an ideal payment plan for the mortgage. If a person has 15 years left on his mortgage and can no longer afford his $2000 US Dollars (USD) per month in mortgage payments, he may be able to remortgage with another company for a 20 or 25 year term. While this might mean that he would pay more in interest over time, it could potentially reduce monthly payments to a manageable level. In some cases, a remortgage with bad credit can be the difference between keeping a house and going into foreclosure.

Where credit comes to bear in the remortgage process is the availability of interest rates and loan terms. A person with high credit scores may be able to secure much lower interest rates, while the choices of a person that is trying to remortgage with bad credit may be more limited. Nevertheless, many financial institutions specialize in providing remortgages to people with bad credit or a history of bankruptcy, but experts recommend shopping around to find the best possible rates.

In order to remortgage with bad credit, a homeowner will likely need to agree to strict repayment terms with the new lender. A bad credit history intimates that the person is a higher risk for lenders, so the new mortgage will have built in safeguards to protect the profit of the lender. Some of the extra costs that may be involved in remortgaging include a higher initial processing fee, high late payment penalties, and other fees not disclosed in the initial rate of the remortgage. It is important to read all fine print on remortgaging information to ensure that the terms of the new loan are acceptable.

An important step that can be built into remortgaging is the release of equity in the home or property. As a person pays his mortgage, equity in the house is slowly built up. A person facing large debts may technically have the assets to get out of trouble, but since they are tied up in housing equity, the assets are not liquid. A remortgage can include an option to borrow the equity already owned from the lender, hence creating a lump sum to pay off student loans, credit cards, and other debts. While this does mean that equity is lost, if the interest rate on the remortgage is lower than that on other debts, a person may be able to pay off debt faster by consolidating it into the remortgage.

What are Credit Reporting Agencies?

2011-07-15T07:45:00.000-07:00

Credit reporting agencies (CRAs) are for-profit organizations that keep track of your credit history and report on these details to potential creditors, employers, insurance companies, lenders and landlords. They may also be referred to as credit bureaus. It is important to regularly check your credit history to be sure the information is correct and your credit scores are as high as they can be.

There are three primary credit reporting agencies that keep track of your credit history and provide a Fair Isaac Corporation (FICO) score to potential lenders. These are TransUnion® Experian℠ and Equifax®. You are entitled to one free credit report per year from each agency, though FICO scores are not free. FICO scores can be received for what is generally a nominal fee. It is important to check all three credit reports from each credit bureau, because each one can contain different information.

The annual free credit report can be ordered online, by mail, or by phone. You are also entitled to receive a credit report if you are denied a loan due to negative information found on the report. If you find any errors on your credit report, you can then begin to take steps to resolve them. Equally importantly, if you have negative information on your credit report, you can learn how to improve your money management skills, such as paying bills on time and keeping balances on credit cards at a low or zero balance.

Though there are other, smaller credit reporting agencies across the country, the three mentioned above are known as the "Big Three." Each month, these companies collect information on your debts, payment history, credit inquiries, and types of credit you hold to update your credit history and your three-digit FICO score. Credit reporting agencies also collect information from court records, such as a bankruptcy or foreclosure. These major negative events can affect your credit report for seven to ten years. Maintaining positive information, such as making all your payments on time, is equally important as removing negative information.

The purpose of credit reporting is to signify to lenders and other potential people you may do business with that you are a responsible person and a good credit risk. The information found on your credit report will also affect the interest rate you receive if you are granted a loan, which could end up costing you a significant amount of money over the long term. It is simple to receive your annual credit report from the three major credit reporting agencies, and should be something you do every year to be sure the information is correct and to prevent identity theft.

How Can I Improve My Credit Report Score

2011-07-15T07:37:00.000-07:00

Maintaining a healthy credit report score is very important in today’s world. Unfortunately, many situations can take place that damage credit scores, making it difficult to obtain financing when and as needed. If you need to improve your credit report score, here are some tips on how to get started.

One of the most common issues with credit scores is outdated or inaccurate information contained on one or more credit reports. To begin the process of improving your credit report score, your first task is to obtain a copy of your credit report from each of the major credit reporting agencies. Keep in mind that the information on each report may vary, which is one reason why many creditors use at least two bureaus when evaluating the creditworthiness of an applicant. This means you must read all three reports in order to get an accurate picture of what lenders see before doing business with you.

As you read each of the reports, look for any data that is not current. For example, you may find a reference to an account that still shows an active balance, even though you paid it off over a year ago. There may also be accounts showing as open that you’ve closed at some time in the past. Since your credit report scores are based in part on the amount of debt you currently have as well as the number of creditors, contact each of these creditors and request that they update the information on your credit report as soon as possible.

While contacting the creditors is necessary, also make it a point to contact the credit reporting agency and note the inaccuracies on your report. This can also help expedite the process of updating your information and make sure potential lenders see an accurate credit report and score. Make sure to keep following up until you have confirmation that the updates have been made.

There is also the possibility that you will find data reflected on the report that is not relevant to you. False data can end up on a credit report due to errors with a creditor or some similar data entry error along the way. Call attention to the false data at once, and follow up until it is removed from your report. This will make it much easier to determine your true credit report score as of the current period.

Keep in mind that even if you’ve had financial issues in the past, you can incrementally improve your credit score by not falling behind on any current debt obligations. Make it a point to pay at least by your current due date. In the case of credit card debt, try to pay more than the minimum, even if it is only an additional ten percent. More creditors are not only making note of timely payments, but also noting when more than the minimum payment is submitted, and supplying that data to the various credit reporting agencies.

Be aware that there are no quick fixes to your credit report score. Avoid any type of program that claims to increase your credit score in a matter of days or even weeks. Speak with a financial counselor and learn how to communicate with your creditors and the credit reporting bureaus. While the process takes time, you will eventually see improvement in your credit report score.

What are Credit Reports ?

2011-07-15T07:32:00.000-07:00

Credit reports contain information about an individual's background and credit history, and these reports are used to determine if someone is credit worthy. In short, if you pay your mortgage late, file for a bankruptcy, or are denied a credit card, all of these items will be recorded in your credit report.

Equifax, Trans Union, and Experian are the three major companies that compile credit information. These companies keep track of your addresses, mortgage payment history, checking accounts, credit card payment history and other similar information. They also list the balances you owe on your mortgage as well as credit cards. If you are a prompt payer of bills, this will be reflected in the credit reports. However, if you are habitually late with your monthly mortgage payment, store and bank credit cards, and have a judgment against you from a lawsuit, this will also show on your credit report.

Based on your credit history, you are given a score. This score, in effect, determines the degree of your credit worthiness. It tells a bank or lender what the risks are if they offer credit to a consumer. For example, if your credit history demonstrates a lengthy on-time bill payment history and low outstanding non-mortgage debt, your strong score will allow you to get a loan with a great interest rate to buy that new car you've had your eye on. A poor score may result in an outright credit denial, or the loan for that very same car may come with an extremely high interest rate.

In order for a lender or other creditor to obtain a credit report, the consumer must give them authorization. If you have been denied a loan or credit card and you are wondering why, it would be wise to order your own credit report. While Equifax, Trans Union and Experian have been in the credit reporting business for quite some time, they are by no means infallible. You many find mistakes and inaccuracies on your report and such items can certainly weaken your credit score.

If you discover any inaccuracies in your credit report, you should notify the three major companies and supply them with the corrected information. If you, for example, had a judgment against you from a car accident, but you paid the judgment off, you should supply the companies with a "Release and satisfaction of judgment" so they can remove the judgment from your credit file.

What are the Different Types of Money Transfer Services?

2011-06-28T07:34:00.000-07:00

There are four different types of money transfer services available: wire transfer, bank draft, Internet money transfer, and money orders. All these methods can be used both domestically and internationally. A money transfer service is used to quickly provide funds to both businesses and individuals. They are typically used in situations where a check would take too long, may not be accepted or where the recipient does not have a bank account.

Wire transfers are one of the more popular money transfer services that are used to move funds from one bank account either to another bank account or to a cash office. The person who is sending the money can create a wire transfer from his or her own bank or from a cash office. In order to complete a wire transfer, you need to have the details of the recipient’s bank or their wire transfer code and location code for the cash office where they will pick up the funds.

A bank draft is a type of money transfer service most commonly used for payments to companies in foreign countries. A bank draft is issued by a bank or money transfer company and is cashable at any banking institution. This method of payment is more expensive than other methods, but is preferred by companies and large institutions due to additional security and audit trail features.

Internet money transfer services have increased in popularity as security has improved. Several large companies specialize in this type of service. Funds can be transferred to anyone with an email account in the world and is available is all recognized foreign currencies. Transfers can be created through a third party, or directly from the sender’s bank account.

Third party companies usually provide a free basic account set up, but charge a transaction fee for every transfer of funds to your bank account. In addition, there is a processing delay of between five to seven days to receive the funds in your bank account. If you are going to use this type of service, check the reputation and conflict resolution steps first.

Several specialized firms offer money orders as one of their money transfer services. The sender goes to the cash office and creates a money order for a specific cash office and person to pick up. The recipient is notified by the sender and is responsible for going to the cash office and picking up the funds. A secret password is often used to validate that the correct person is receiving the money order.

How Do I Open a Secret Bank Account?

2011-06-28T07:30:00.000-07:00

There are many reasons why someone may want to open a secret bank account. One person might consider it in order to save money for the purchase of an engagement ring or an anniversary gift, while someone else might be concerned about his or her financial security when another account is shared with a partner. Whatever the reason, the goal is fairly easy to accomplish, but it will definitely take some work on your part. There are many Internet-based financial institutions and local banks that are suitable for setting up an account. To avoid having mail related to this clandestine account sent to your residence, you could have all correspondence sent to the home of a trusted relative. Otherwise, you should consider renting a post office box, where you can receive mail without having to worry about it.

Many financial institutions offer paperless banking options, which means that statements are sent to your email address — not delivered through the mail — as long as you enroll in the service. You can sign up for a secret bank account online, but it is usually not recommended, since many of them require you to link an active checking account to it, which can be counter-productive. Ideally, you should visit a financial institution in person when setting up your account. It is a good idea not to bank at a location where you currently have a joint account with someone else. An out-of-the-way bank is ideal to avoid seeing people you know during any visits.

When you decide on the bank you would like to use to open your secret bank account, you will need to provide certain information about yourself. In the U.S., it is common policy for a bank to request your Social Security Number (SSN), phone number, birth date, and other personal identifiers. You are also required to provide your physical address. For this reason, when you meet with the bank manager, make sure you tell him or her that you do not want any mail coming to your home.

Bank managers are usually very understanding and respectful of your desire for privacy. If you explain your situation, they can usually advise you about the best way to keep your account secure. You will, however, need to provide them with a mailing address, which can belong to a relative or close friend who has given you permission to use it. If it is your desire to keep the account secret from everyone, a post office box is generally your best option for receiving mail about your secret bank account while maintaining your privacy.

Once you sign up for your secret bank account, you should have a safe, secure place to store your banking information, checks, and bank card. If you do not have a private place where you can store this information, a safety deposit box can be a great alternative. It may even be possible to rent one at the same facility where your post office box is located.

What is a Safe Deposit Box?

2011-06-28T07:27:00.000-07:00

Many of us are afraid to keep our valuables in our homes. Though we'd love to feel as if our family treasures and important documents are safe, the fact of the matter is that the unthinkable does happen. In addition to being the spoils of a robbery, our valuables can become damaged due to fire, flooding or another act of nature. For this reason, a safe deposit box is a good idea.

A safe deposit box is a locked container kept inside of a bank vault. These boxes come in many different shapes and sizes and are made of a fireproof material. They're not free though. A safe deposit box is rented much in the way one would rent a post office box. The amount of money you pay depends on the size of the box desired.

Items that are good candidates for a safe deposit box are important documents, such as the deed to a house or a last will and testament, and treasured family heirlooms such as jewelry. Anything you'd rather not see fall into the wrong hands should be kept in a safe deposit box.

When you rent a safe deposit box, you'll most likely be presented with two keys. Only persons authorized by you will be allowed to access the safe deposit box. This means an employee of the bank will request identification before allowing access to the safe deposit box. Anyone not on the list of approved persons will be denied access.

Should you desire to make a deposit into or withdrawal from your safe deposit box, you and your box will be escorted to a private room. You will be left alone to view your treasures without worrying about who might be taking inventory.

Keep in mind however, that there's a downside to owning a safe deposit box. Since your valuables are held at a remote location, they're not available at your disposal. This means you will not be able to have convenient access to your stored valuables during non-business hours. If you decide to rent a safe deposit box, be sure you give careful consideration to those items you opt to store at the bank.

In the long run, the benefits of renting a safe deposit box far outweigh the disadvantages. When it comes to your family treasures, it's better to be safe than sorry.

What Is Involved in an LLC Bankruptcy?

2011-06-28T07:02:00.000-07:00

Declaring bankruptcy for a limited liability company (LLC) can be confusing because there are few solid laws governing the relatively new entity. Some judges may treat this type of company as a partnership, while others might treat it as a corporation. Additionally, many business owners may be surprised to find that obtaining business loans and an office often negates any protection for their personal property, meaning their personal assets can be taken during LLC bankruptcy. The result is that they usually have to file for both business and personal bankruptcy, but even doing so will not allow them to get out of paying payroll taxes.

One of the deciding factors of how an LLC bankruptcy will proceed is whether the company is treated as a corporation or a partnership. If the judge presiding over the business bankruptcy decides to treat the LLC as a partnership, he will likely dissolve it. In such a case, the company's assets would be distributed among creditors, and the owner would get to keep any leftover assets, which are usually few. If the judge treats the LLC like a corporation, he may suggest that the business owner offer ownership interest to another person. If the owner were to refuse this option, he would be treated like a corporate shareholder, because he would get to keep stockholdings despite bankruptcy.

Many business owners wonder if their personal assets are at stake during an LLC bankruptcy. The answer is that while one of the main points of limited liability companies is to protect the owner's personal credit, it can still be affected when the business is in financial trouble. This is because most lenders request that owners give up their limited liability protection to get a small business loan. In addition, many landlords ask business owners to sign a personal guarantee before they will rent out commercial property, which means the landlord can come after the business owner's personal property if he does not pay.

Owners who have never signed a personal guarantee and have not surrendered their limited liability protection will likely find that their personal assets are safe when they file for LLC bankruptcy. Most business owners, however, are not in this group, meaning their personal property is at-risk because of the bankrupt limited liability company. Therefore, they usually need to declare both business and personal bankruptcy, keeping in mind that the most popular routes, such as chapters 7 and 13, are available for personal bankruptcy only. In addition, business owners should be aware that LLC bankruptcy can wipe out their unsecured debts, such as business loans, but they will still owe payroll taxes.

How Is ATM Hacking Prevented?

2011-06-27T07:24:00.000-07:00

Financial institutions prevent ATM hacking through numerous measures. This can include changing default administrator passwords and by regularly inspecting ATMs for fraudulent devices designed to capture customer information. Other security measures such as well-lit locations and cameras help, too. Customers can further prevent ATM hacking by being aware of surroundings and refusing to use an ATM if it seems suspicious.

ATMs (automated teller machines) are convenient for bank customers, but they are also becoming convenient places for thieves to collect customer bank card information for identity theft crimes. Most ATM hacking happens when a thief installs a portable card reader and camera on an ATM or peeks when the customer enters passwords.

Some ATM hackers insert a card reader into the ATM card reader and mount a tiny camera behind the security mirror. They gather card information from the magnetic strip on the card when the customer inserts an ATM card into the false front card slot. ATM hackers gather password information through a hidden pinhole camera pointed at the keypad. Some thieves bypass the camera and install an overlay on the keypad that transmits punched numbers to a laptop or Bluetooth.

Before using an ATM, customers should check for any loose parts on the console, false fronts, or anything that looks out of place. Many false front card readers match the ATM and are nearly undetectable. The card should slide easily into the card reader, and resistance could indicate a portable reader. If the ATM seems suspicious, it should be reported to the bank manager.

Banks are taking action against ATM hacking by installing anti-skimmers. These devices emit an electromagnetic field that blocks the fraudulent card reader signal so the thief cannot collect card information. Anti-skimmer sensors detect foreign objects mounted to the ATM and trigger a silent alarm.

ATM hackers may bypass skimming customer information by hacking the machine itself. A thief who gains access to the administrative password may program the machine to dispense $20 bills when it thinks it is dispensing $5 bills. Banks can prevent ATM hacking by changing the default password in new ATM machines to prevent criminals from guessing the password.

The safest ATMs are in well-lit, heavily populated areas, or in stores where crowds make it harder for thieves to install skimming devices without being detected. Customers should always check for bystanders when withdrawing money and shield the keypad when entering password information. ATM users should always check bank statements carefully and question unfamiliar charges.

What Are the Different Types of ATM Code?

2011-06-27T07:22:00.000-07:00

Automated Teller Machines (ATMs) are one of the most convenient machines available to people, whether they are a few blocks from their house or in another country. ATMs allow people to pull money from their account, check their balance, or, if in another country, withdraw money in the foreign currency. While these machines can be very useful, they can also be dangerous, given that if someone gains access to someone else's account, customers could end up with their identities or large sums of money stolen. An ATM code prevents strangers from accessing your financial information.

There are a number of types of ATMs, such as a mobile ATM, cashless ATM, or ATMs in foreign countries. To do transactions at each of these types of ATMs, users will have to enter the code issued to them by the bank when they opened the account. This code will always be used to access financial information at an ATM after swiping their card. The only way this ATM code is changed is if a customer visits or calls his or her bank to change it. This typically will be in the event of losing the card and needing to have it replaced.

Mobile ATMs are rented out from ATM companies by people organizing a large event that will attract a big crowd. For example, a large music festival would typically have on-site mobile ATMs. Cashless ATMs are usually specific to certain businesses. Rather than withdrawing money from one of these ATMs, the customer can obtain a receipt from it that is good for the amount of money put on it. The receipt will work as currency within the store that holds the cashless ATM.

There are also ATMs set up in foreign countries that can be used as easily as those in a person’s native country. The customer would select their language and enter their ATM code just as they would at home. They can withdraw money in the currency of the country they are in, making the ATM a convenient means of exchanging currency.

Ultimately, the difference in ATM code comes down to the different types of ATMs. A customer’s code itself is the same for each of these types of machines unless they have it changed. Each type of ATM contains information that is encrypted in various ways, but a personal ATM code and check card will always give customers access to their account.

What Are the Best Tips for ATM Safety?

2011-06-27T07:17:00.000-07:00

The best tips for ATM safety are often common sense; an awareness of one's surroundings, for example, is an important step to stay safe any time, not just at the ATM. In addition, another important ATM safety tip is to never count money at the ATM. When the cash comes out, put it away and then immediately walk or drive away from the ATM. ATMs located at banks tend to be the safest choice overall.

ATM safety begins when choosing the best ATM to use. Do not use an ATM on the corner of a building, because this gives criminals an easy place to hide. Similarly, choose an ATM in an open, well-lit and often frequented area, away from any bushes or dividers that someone could hide near. The ATM should also feature a camera that records all transactions, and all people who walk up to the ATM.

Once arriving at the ATM, make note of any people nearby; someone sitting in a parked car near the ATM, for example, is something to take notice of. It always important to trust one's instincts, not just for ATM safety but all the time. Even if the transaction has already begun, if one feels uncomfortable at any time, it is best just to cancel the transaction and go to a different ATM, or come back another time. Do not accept help from anyone else at the ATM; if there is a problem, it is best to go into the bank and ask for assistance from the bank employees. Similarly, never let anyone look over one's shoulder while entering the PIN.

Another ATM safety tip is to stay aware of surroundings throughout the entire transaction. When in a car, keep the doors locked and leave space between any surrounding cars so that there is a method of escape. Do not do any paperwork while sitting at the ATM; for instance, take some deposit envelopes from the bank, fill them out at home, and have them ready to go upon arrival at the ATM. When possible, go to the ATM with a friend or family member, so that an extra set of eyes can sweep the area during the transaction.

As much as possible, use an ATM in the daytime rather than in the evening when robberies are more common. Another important ATM safety tip to remember is that if a robbery does occur at an ATM, do not resist; hand over the money. Chances are, the criminal will be caught on video, and a little cash is not worth losing a life over.

The Value of Having Good Home Insurance

2010-08-13T20:51:00.000-07:00

Shayna A.

Home insurance has become a necessity as burglaries are on the rise and the possibility of natural disasters has increased in the last few years. These occurrences and other tragedies are not unlikely, and without insurance you may not be able to pay for damages. Damages can lower the cost of your property.

Furthermore, all home insurance policies are not created equal. Trying to save a few dollars may cause you more headache and future expenses. Choosing a good home insurance policy requires as much time and thought as buying a home. You may not see the value when calculating the differences between the cheaper and more expensive quotes; however, a good, well researched policy has the potential of saving you thousands of dollars in the future.

Searching for a good policy involves knowledge of the property. Take a look at the surroundings as well as the typical disasters that could occur and check to see if the property is in a high risk area. Is the house located in a flood or fire zone? Is the property location at risk of a hurricane or an earthquake? Depending on the specific hazard, your home should be covered according to the particular hazard zone. Even if the occurrence is rare, if you plan on keeping the house for an extended period of time, you should purchase home insurance with specific hazard protection.

What items will be covered under the policy (i.e. the monetary value)? Add up the specific value of the items you would like reimbursed if damaged, and claim them on the policy. Typically, the policy should add up to the total cost to rebuild your home and replace all of your possessions. When attempting to determine the value of your home, do not use the full amount of the appraisal. The appraisal includes the cost of the land as well as the home price. Most likely, the land will not be harmed in case of a natural disaster.

Proper research and planning will guarantee a smooth and proper selection process which adds value to having good home insurance. The better the condition of your house, the lower the premiums will be. Features such as updated locks, newer wiring and plumbing, proper fire extinguishers and smoke detectors will also keep the premiums at a lower cost. With lower basic premiums, you can add the more expensive personal items to the policy without raising the premium drastically.

There is no question about the value of a good home insurance policy. With the proper research and guidance, you can find a great policy for a good price. Don’t run after the policies for the sake of price. Choose a policy which fully supports your needs and select one based on your criteria first. When you find what you are looking for, price can then be negotiated.

Call upon the expertise of friends, family, and insurance professionals, and choose a carrier with a good reputation. Following these basic principles and doing your homework will make the selection process easy and efficient and will allow you to sleep easier knowing your property is in safe hands.

Guest post author: Shayna A.

The First-Time Buyers Guide to Homeowners Insurance

2010-08-13T20:46:00.000-07:00

So you finally own your own home. Congratulations. The first thing you are going to need is homeowners insurance. Homeowners insurance is one of those things no one likes to talk about. You want to enjoy your new home, not talk to an insurance broker . But while homeowners insurance is one of those things none of us want to use, it’s something we all have to have as homeowners. But before you talk to that insurance broker, here are a few things you should know about homeowners insurance.

What Is Homeowners Insurance?

As the name implies, homeowners insurance protects you should something happen with your home. But it’s not quite as simple as that. As your insurance broker will explain, homeowners insurance is broken down into four components: Structure, Personal Belongings, Liability, and Living Expenses. You and your insurance broker will have to sit down and discuss each one in turn, as different families have different specific need for each type of insurance.

Structure Insurance

The structure part of your policy covers actual damage to your house. This pays for repairs should your house be damaged or destroyed by a natural disaster such as fire, hail, lightning, or hurricane. It does not cover earthquake or flood damage; these must be bought separately in areas where they are needed. Be sure your insurance broker lets you know if you have an “all ails” policy. This means that, other than earthquake and flood, all disasters that damage your home are covered unless specifically excluded. Some policies only cover what is specifically INCLUDED, which is generally not what you want.

Personal Belongings

This part of your policy protects the property inside your house, should they be stolen or destroyed. It is recommended that you purchase insurance for personal belongings equal to 50%-70% of what you purchased to insure the structure. If you have special items like jewelry that are particularly expensive to protect, you may wish to add a floater policy to protect these specific items.

Liability Protection

This insurance protects you should guests be injured on your property. You will generally need to purchase a minimum of $100,000 worth of coverage, though at least $300,000 is recommended.

Living Expenses

This coverage provides for you and your family living away from home while your home is being rebuilt if it should be destroyed or rendered unlivable. There is generally a standard premium attached to your policy for this coverage.

Be sure to sit down with your insurance broker and discuss each section of the homeowners insurance policy in turn. Families with many children may wish to purchase extra liability protection while those with antique furniture may want more personal belongings coverage. Each family has different needs, and your insurance broker can best help you decide what type of distribution of coverage is best for you and your family. Don’t forget to ask any questions you can think of, and don’t sign any policy until you feel completely comfortable with what you have purchased.

Online Banking, Bill Paying and Shopping: 10 Ways to Protect Your Money

2010-03-16T01:11:00.000-07:00

Online banking, bill paying and shopping are conveniences that most people want to enjoy. And most of the time, high-tech transactions are completed quickly and without a glitch. However, just as with other transactions, in a small percentage of cases something goes wrong. That's why you need to take precautions against theft and errors

In particular, even as banks and merchants tighten up security, Internet thieves devise new, sophisticated ways to trick consumers into sending money or into revealing information that can be used to commit fraud. "Today's Internet threats wear many different disguises, from fake Web sites to fraudulent text messages on cell phones," warned Michael Benardo, Chief of the FDIC's Cyber-Fraud and Financial Crimes Section. "That's why online consumers need to be aware that they may be targeted and they should always be on guard."

David Nelson, an FDIC fraud specialist, added: "Online fraud is an ongoing game of cat and mouse. Crooks continuously hunt for security holes, banks and merchants plug those holes, and then the criminals find new ones to slink through. But consumers play an important role in keeping crooks at bay by being aware of the potential risks, taking precautions and remaining vigilant."

FDIC Consumer News, which periodically issues guidance to consumers regarding online precautions they can take, offers our latest collection of top tips. Note: Not all financial institutions offer each product or service described here.

1. If you bank online, frequently check your deposit accounts and lines of credit to spot and report errors or fraudulent transactions, just as you should with traditional banking. "Your ability to monitor your accounts online has gotten easier, faster and more convenient now that banking by cell phone is starting to mature alongside banking online," said Michael Jackson, Associate Director of the FDIC's Technology Supervision Branch. "This is important, because the sooner you can detect a problem with a transaction, the easier it should be to fix."

Nelson suggested checking your accounts online about once or twice a week, but he also noted that "more and more banks are making it easier for their customers to keep an eye on their accounts electronically. For example, many banks offer e-mail or text message alerts when your balance falls below a certain level or when there is a transaction over a certain amount."

Federal laws generally limit your liability for unauthorized electronic funds transfers, especially if you report the problem to your financial institution within specified time periods, which will vary depending on the circumstances. A good rule of thumb is to check your statements promptly and report unauthorized transactions to your bank as soon as possible.

2. Never give your Social Security number, credit or debit card numbers, personal identification numbers (PINs) or any other confidential information in response to an unsolicited e-mail, text message or phone call, no matter who the source supposedly is. Chances are an "urgent" e-mail or phone call appearing to be from a government agency (such as the IRS or the FDIC), a bank, merchant or other well-known organization may be a scam attempting to trick consumers into divulging personal and account information. It's called "phishing," a high-tech variation of the concept of "fishing" for personal information.

Also watch out for phishing scams that involve bogus text messages sent to cell phones claiming that a bank account has been "blocked" and the recipient must call a certain number to fix the problem. If you make that call, you likely will be asked to enter your account number and PIN. The criminals can use this information to make counterfeit debit cards and drain your account.

"Real bankers and government officials don't contact people asking for this kind of information," said Benardo. "Your bank will already have your account numbers and only you should know your log-in credentials, and a government agency won't have a need for this information."

3. Don't open attachments or click on links in unsolicited e-mails from anyone you don't know or you otherwise aren't sure about. Sometimes these attachments or links can infect your computer with "spyware" that can change your security settings and record your keystrokes. "Spyware can secretly steal your passwords, bank or credit card numbers, and your answers to security questions like your mother's maiden name or your high school," Benardo advised. "Online thieves can use this information to log into your account, make changes and transfer money, leaving your bank account empty."

In one recent example, criminals sent out fake IRS e-mails warning recipients that they were being investigated for unreported income and asking them to click on an attachment for more information. The file launched a program that allowed hackers to install spyware and other unwanted programs on personal computers (PCs) to access bank accounts.

4. Watch out for sudden pop-up windows asking for personal information or warning of a virus. This is called "scareware" because it frightens people into providing information, downloading malicious software or paying for removal. If you get an e-mail or pop-up window saying your computer has a virus and it offers a program to clean your PC — and the warning window won't go away — your first step is to use the computer's "task manager" function and click "end task" or "force quit" to shut down the pop-up window. Scareware can be a nuisance to clean off your computer, so call your anti-virus software company if you need help.

5. Use a mix of security tools and procedures. "Staying safe online is like protecting your home with lighting, locks, alarms and fire extinguishers," explained Nelson. "You can't rely on just one layer of defense to protect you from all online threats."

At the top of the list of security tools to use — and keep updated — are anti-virus software to detect and block spyware and other malicious attacks, and a "firewall" to stop hackers from accessing your computer.

Even if your computer seems fine, Nelson said, schedule an automatic anti-virus scan to run at least once a week but preferably every day. Call or e-mail your anti-virus vendor right away if you get a warning message and you don't know what to do next.

Also consider these extra precautions as you use the Internet:

# Don't log into your bank account while using public computers, such as at a library, or free wireless connections at coffee shops and similar places. Criminals often try to intercept Internet traffic, including passwords, from these locations.

# Pay attention to the toolbars at the top of your screen. Current versions of the most popular Internet browsers and search engines often will indicate if you are visiting a suspicious Web site.

# Choose "strong" user IDs and passwords that will be easy for you to remember but hard for hackers to guess. The strongest ones have a combination of letters, numbers and other characters, and are at least 10 characters long. For your online banking, choose IDs and passwords that are not the same as those you use for e-mails or social networking sites, just in case they get into the wrong hands. Also change your online banking password about every 90 days. And if you remove a computer virus from your PC, immediately change your password.

# Have each person in your household bank and shop online and send e-mail through his or her own "standard user account." Not conducting these online activities through the computer's "administrator account" — the one that makes changes affecting all users — reduces the likelihood that a hacker can install unwanted programs on your PC. Limit the use of the administrator account to special tasks needed for your computer, such as adding or removing software and installing updates to your operating system.

# Consider using a separate computer solely for online banking or shopping. A growing number of people are purchasing basic PCs and using them only for banking online and not Web browsing, e-mailing, social networking, playing games or other activities that increase the chances of downloading malicious software. You can also consider using an old PC for this limited purpose, but you should uninstall any software you no longer need and follow up with a scan of the entire PC to check for malicious software.

# Only use security products from reputable companies. Nelson said one way to check out these products is by reading reviews from computer and consumer publications. "Look for a product that has high ratings for detecting problems and for providing tech support if your computer becomes infected," he said.

Kathryn Weatherby, a fraud specialist at the FDIC, also cautioned that banks normally don't ask their customers to download software updates. "If you get an unsolicited request to update your banking software," she said, "independently verify it by calling your bank using a phone number from your bank statement, not the phone number that appears in the request, which could connect you to a scam operation instead of your bank."

6. Beware of check scams. With unemployment high, con artists are preying on people who need cash. One common check scam involves attractive offers — usually originating in e-mails or online job postings — involving part-time work from home. As the new "employee," you will be sent a check to deposit (which will be counterfeit) and told to forward cash from your own account (to the crooks). Another scam involves "mystery shopper" programs where the new hire is given fake money orders or checks and asked to wire funds to the criminals. And unlike electronic transfers that are covered by consumer protection laws, fraudulent check scams often leave consumers suffering the loss.

7. When shopping online, deal with reputable merchants and be wary of unbelievably low prices. "There is no guaranteed way to ensure that an online merchant you're unfamiliar with is reputable, but there are ways to avoid doing business with an unreliable one," cautioned Jeff Kopchik, an FDIC Senior Policy Analyst specializing in technology matters.

First, he said, ask your friends and family if they've had good experiences with a merchant you're considering using. "If people you know have used and can recommend an online merchant, that's a strong indicator," he added. Second, you may already know and like some online merchants from their retail outlets, mail order catalogues or other services. They are likely to be a safer bet than an unfamiliar merchant that doesn't list a physical address or a phone number on its Web site.

If you are uncertain about an online merchant, check with the Better Business Bureau Online (www.bbbonline.com). You can also search online for complaints about the business. Similarly, if you have a problem with an online merchant, file a report with the Better Business Bureau. The Bureau will notify the merchant about your concern and ask you if the issue was resolved. A legitimate merchant will attempt to fix the problem, while a crooked company may have many unresolved issues.

8. Using a credit card generally offers more purchase protection than a debit card or other electronic forms of online payment. "Unlike paying with a debit card and the money being immediately transferred out of your account, with a credit card you generally have weeks to pay your bill," Kopchik said. "So if the merchant does not deliver as promised, you have time to dispute the transaction and even enlist the help of your credit card company." He also noted that federal law gives you certain rights, in areas such as dispute resolution, when buying with a credit card.

However, watch your budget when using your credit card to shop online. Kopchik said studies have shown that people spend more when they use a credit card instead of cash, a gift card or a debit card.

9. Be on guard against scams hiding behind online coupon offers. Web sites for legitimate coupons will only ask consumers to provide an e-mail address in order to use their service to search for online specials and discounts. Beware of any coupon site that asks for personal, financial or payment information, which can be misused by criminals.

10. Be careful if you download banking software onto a cell phone. Many cell phones called "smart phones" allow consumers to add computer-like features ranging from video games to "mobile" banking. But cell phone users need to be aware of an emerging threat from criminals selling malicious software for mobile banking, some even falsely displaying bank logos. "These applications may contain spyware, and downloading them could be giving a hacker access to your bank account or payment card information," reported Nelson.

His advice? "Only download mobile banking applications from a safe site, such as your wireless provider, phone manufacturer or your bank." When in doubt, he added, "contact your bank before downloading any banking applications to your cell phone."

Bank Wire

2010-02-23T20:16:00.000-08:00

Also known as a wire transfer, a bank wire is a means of electronically transferring funds from one financial institution to another. The wire normally involves a set amount of funds to transfer, and is initiated at the request of a bank customer. Usually, the receiving bank issues some sort of confirmation that the transfer was successful, although this is not always the case. For the most part, money transfers of this type are completed the same business day, although the posting of the receipts by the receiving bank may be delayed to the following business day.

The bank wire is one of the more efficient ways to transfer funds quickly and securely. All that is required is the banking account information of the recipient, such as the routing code and the bank account number. With this information in hand, it is possible to initiate the wire, and have the funds delivered in a matter of minutes. The speed associated with a bank wire makes it extremely helpful in emergency situations, such as paying for goods or services that must be paid in full before shipment, or to supply loved ones with funds they need immediately.

A bank wire can be successfully completed, even if the issuing bank and the receiving bank are not in the same country. This attribute makes a funds transfer of this type very attractive to businesses that operate on an international scale. A client in the United States who does business with a company based in the United Kingdom can easily submit payment for goods or services via a bank wire, with no delays. As long as the two parties involved make allowances for the different time zones involved, the transfer should be occur without any type lag time. However, if a customer in the US initiates a bank wire in the afternoon, there is a good chance the wire would not post to the UK company’s bank account until the following morning.

Often, the funds transferred with the use of a bank wire are available for withdrawal shortly after they are received by the recipient’s bank. However, there are some banking institutions around the world that only post deposits until a certain time of day. For example, there are banks in the United States that will not post a credit a deposit to a customer account the same day if it arrives after 2:00 p.m. local time. For this reason, it is a good idea to know the policies and procedures of the recipient bank, as this will help prevent any delays in shipping goods or allowing access to the wired funds.

Cable Transfer

2010-02-23T20:14:00.000-08:00

The cable transfer is a form of wire transfer that involves the transmission of funds from a financial institution located in one country to a bank or financial institution located in another country. This type of electronic transfer makes it possible for individuals and corporations to engage in buying and selling outside national boundaries, without a great deal of impediments to receiving and making payments for goods and services rendered.

Many people tend to use the terms of cable transfer and wire transfer interchangeably. Historically, there is a slight difference. While it is true that cable transfers and wire transfers are both methods for electronically moving funds from one location to another, one has to do with domestic transactions, while the other is focused on international transfers. The term of wire transfer is more properly used to describe an electronic funds transfer in which the point of origin and the point of termination are located in the same country.

In the United States, a wire transfer is conducted using the electronic system put in place by the Federal Reserve System. By contrast, a cable transfer involves electronic funds transfers that originate with an entity located in one country, but terminate with a financial institution in a different country. In times past, the cable transaction was characterized by the use of submerged wires that supplied the medium for the international funds transfers.

Internet technology has made the process of conducting a cable transfer much easier for the average consumer. In fact, many banks provide the ability for a customer to initiate a cable transfer by simply providing the needed information on a template. When completed, the template is processed by the bank and the cable transfer is completed. The customer receives a message via his or her online access to the bank accounts that the transfer request is completed, along with a confirmation number.

Can You Refuse to Show ID with Visa Credit Card?

2009-12-21T00:48:00.000-08:00

I received an interesting complaint from one of my readers. He currently has Chase Freedom Visa Card, Starwood Preferred Guest Card from American Express, Citi Diamond Rewards Card and Citi PremierPass Card. I think we can learn a lesson from his story. Here is the story:

I went to XXXXX (deleted by me) Buffet with some of my friends on May 3rd to eat. After our meal I went to the counter to pay and used my Chase Freedom Visa Card as payment. The cashier asked me to show ID to her and I kindly declined this request. I was then told that they were not going to be able to finish this transaction without my official government issued ID. I insisted that they should not see my ID because I have already signed on the back of the card and they can just check my signature. However, the owner of that restaurant was getting angry when I argued with him. Then he called the police and asked the police to arrest me for not paying for the dinner! I was fully embarrassed! I has 2 credit cards in my wallet at that time. After a while, one of my friends paid the money with his credit card along with his ID.

After reading his story, I looked up some visa card agreements and found out that it’s a violation of their credit card merchant agreements to ask for ID in order to complete a transaction. As it’s cleared stated in an official VISA statement: Stores can’t deny a transaction unless the credit card itself is unsigned.

Merchants may not refuse to honor a Visa card simply because the cardholder refuses a request for supplementary information. The only exception is when a Visa card is unsigned when presented. However, “See ID” is not considered a valid signature. In these situations, a merchant must obtain authorization, review additional identification, and require the cardholder to sign the card before completing a transaction.

To report any merchant practices that you feel are inappropriate, please notify the disputes area at the financial institution that issued your card account. Your card issuing bank has access to the appropriate Visa rules and regulations as well as to the Notification of Customer Complaint forms which should be used by your bank to document and file merchant complaints.

As an alternative, you may contact the Global Customer Care Services to report merchant practices that you feel are inappropriate. Please contact the Global Customer Care Services at 1-800-VISA-911 (1-800-847-2911). Please advise them that you were referred to file a complaint. The staff will be able to initiate a complaint form over the phone.

Next time, when you was requested to present your photo ID with your visa card purchases, you can just deny it. You’re officially protected by the visa!

Get Overdraft Fees Back from Bank of America by Writing to Their CEO

2009-12-21T00:45:00.000-08:00

Bank of America used to be the largest bank by assets and second largest commercial bank by deposits before the acquisition of WaMu by JP Morgan chase & Co. Bank of America’s most popular banking products may be the MyAccess Checking Account and the Keep the Change program. However, there are a lot of complaints about the terrible overdraft fees. Here I will tell you the most useful method to get the overdraft fees back from Bank of America.

Why the overdraft fees are so terrible?

First, what’s “an overdraft fee”? An overdraft item fee occurs whenever funds must be provided to cover a transaction that overdraws the account. Believe it or not, overdraft fees have increasingly become a source of profits. Banks and credit unions collect about $17.5 billion in overdraft fees per year. As reported by USA Today:

In 2007, Wachovia put in place a tool that tells employees how much they can refund to customers hit by overdraft fees. The bank, in memos, also tells employees to “sell” a debit card with every account because it makes money when consumers use it.

Bank of America raised the fee charged on the first day a customer overdraws to $25 from $20. BOA also raised the number of times a customer can be hit with this fee per day to seven from five. It’s really terrible. Furthermore, the next following days after the first day, the fee is $35.00 for each item. A customer can easily get up to $500 fees just for the overdraft. And it’s vry common to pay $100 over draft fees for just 2 or 3 cups of coffee!

It’s common to go to your local BOA branches to complain the over draft fees if it really happens to you. Or you may call BOA up to appeal. However, most of the employees are trained to give you a samll portion or even nothing to you. So there must be other ways to get the money back.

After a little search on the web, I realized that the most effective way to get the over draft fees back is to write to their CEO!

This has been confirmed to be successful for many victims of BOA’s over draft fees. The CEO of Bank of America’s address is:

Mr. Kenneth D. Lewis
100 N. Tryon Street.
Mail Code NC-1-007-18-01
Charlotte, NC 28255

In the letter to the CEO, all you have to do is to state the reason why you have so many over draft fees and tell him that as a loyal BOA’s customer, you hope he can help you!

And there are other methods to reach BOA’s executive customer relations.

Executive Customer Relations general line: 704-386-5687

Nancy M. Condos
VP/ Customer Advocate
Executive Customer Relations
Office of the Chairman
nancy.m.condos@bankofamerica.com

Martha Dominguez, Executive Customer Relations Specialist: 714-792-4264

Corporate Headquarters (Bank of America):
Bank of America Corporate Center
100 North Tryon Street
Charlotte, North Carolina 28255

Cancel Citi Credit Protector

2009-12-21T00:36:00.000-08:00

Most of Citi credit card members enrolled in the Citi Credit Protector Program. But it seems there are few people forget to cancel the Citi Credit Protector after receiving the promotion bonus. (Free Digital Picture Frame and $50 Visa Gift Card) Of course, the “few people” include myself. This post is to remind you to cancel the Citi Credit Protector because whenever there is a balance on your monthly statement, you can to pay $85 cents per $100 balance.

I enrolled in the Citi Credit Protector program early last November (for my Citi Dividend Platinum Select MasterCard for College Students). And then I didn’t use that card for a while until recently I used that card to buy a round trip flight ticket. After the statement came out, I realized that there is a fee charged by the Citi Credit Protector. Thus I called them up and requested to cancel the service. After about several minutes, I was able to convince the customer service to cancel my Citi Credit Protector program.

The hot line for the Citi Credit Protector is 1-888-592-7344. This is a special line for Citi Credit Protector, if you call them through this number it will get you faster connection. Of course, you can use general Citi customer service number 800-347-4934 and them will transfer you to the Citi Credit Protector Program.

Just as any service cancellation process, the customer service representative will try to persuade you to stay in the program. The first time will just be a reiteration of program benefits, and make sure you aware of your benefits. Later on she/he will offer some small money of maybe lower your rate to try to keep you in the program. The cancellation process will be very simple if you insist to cancel your Citi Credit Protector Program (No, thank you!). And you have good reason to do so because in the agreement it clearly indicates that you can cancel Citi Credit Protector at any time for any reason.

You can cancel at any time simply by calling 1-888-592-7344 or in writing to Credit Protector Processing Center, at P.O. Box 901016, Fort Worth, TX 76101-2016. We may cancel your enrollment for any reason, but we will provide you with at least 30 days written notice of cancellation (except for cancellations based on account status).

Remember, whenever there is a balance shows up on your month statement you will be charged a fee of 85 cents for every $100 balance.

4 Things to Look for in a Prepaid Card

2009-12-21T00:33:00.000-08:00

This is a guest post from Tom.

Tom Tessin runs a getting out of debt blog, as well as a prepaid credit cards list based site. Feel free to subscribe to his RSS feed at http://www.findsecuredcards.com/blog/rss.
If you’re like me, and you like to control your budget, I wanted to show you why you should consider a prepaid credit card for your wallet. If you’re into rewards, and capitalizing on credit cards, then this might not be the type of card for you. Honestly, it’s built for those that want to either get out of debt, or know how much they are spending each, and every month.

What is a prepaid credit card?

A prepaid credit card will remind you a lot like a gift card. You’ll tie your bank account up with your card, and every time you want to load your card, you will log into your account, and send money to your card. The cool thing about most cards is that you’re able to set up daily, weekly, or monthly instant transactions, so that it automatically loads your card.

4 things you should look for in a prepaid card

The fees: A lot of these prepaid cards have fees. NEVER get one in a grocery store, or place like CVS. They rip you off in fees alone. Instead, look for a card online that allows you to bypass the fees. Most will make you link your bank account, in order to bypass the fees.

Major logo: Every card should have a major logo that you apply for. Since you want it to be credible, you’ll want to make sure it comes from an issuer such as Visa, MasterCard, etc. It never hurts to do a little research on the bank as well.

Get rewards: Yes, you can get rewards with your prepaid card! Some banks will give you interest on your deposit, while others will give you points for every dollar spent. It you can capitalize on the rewards, and then you’ll really make out.

Review it: The last thing that you’ll want to do is review the card online. How do you do this? Just Google the name, and see what other people think. By doing this, you’ll get a fairly good vibe on how the card is. If you get a bad vibe, find another, since there are so many on the market.

This is really all there’s to it in finding a card. Get a card with no fees, rewards, and from a legitimate bank, and you’ll be all set.

Citi mtvU and Citi Forward Card Special Holiday Promotion

2009-12-21T00:24:00.000-08:00

Citi has two great student cards: the Citi mtvU Platinum Select Card and Citi Forward Card. If you are a college student, I strongly recommend you to apply for one of them. You will find out how much you can save for using the Citi mtvU Platinum Select Card and Citi Forward Card for your everyday uses. Now Citi is running a special holiday promotion for both of the Citi mtvU card and the Citi Forward Card. You can earn more bonus thankyou points during this promotion period.

The promotion link is here.

For the Citi mtvU Platinum Select Card you can earn bonus thankyou points for $25 gift card:

* Earn 1200 bonus points each of the first 3 billing periods your account is open when you pay on time and stay under your credit line
* Earn up to 2,000 reward points twice a year for having a good GPA
* Earn 25 points each billing period when you pay on time and stay under your credit line
* Earn 5 reward points for every dollar you spend on dining, books, music and movies, plus 1 point for any other spend
* Enjoy a 10% discount on music and entertainment products at shop.mtv.com

For the Citi Forward Card you can earn bonus thankyou points for $75 gift card:

* Earn 1200 bonus points each of the first 3 billing periods your account is open when you pay on time and stay under your credit line
* Earn up to 8,500 bonus points after you make $250 in purchases and sign up for Paperless Statements within 3 months of opening your account
* Get a .25% Purchase APR reduction when you make a purchase, stay under your credit line and pay on time 3 billing periods in a row
* Earn 100 points each billing period when you pay on time and stay under your credit line
* Earn 5 reward points for every dollar you spend on dining, books, music and movies, and 1 point for any other spend

You can also get 0% APR on purchases for 6 months, if you qualify, based on your application and credit history. Both of them have $0 annual fees. Enjoy it!

UP to $350 Bonus from Gold Delta SkyMiles Credit Card from American Express

2009-12-21T00:20:00.000-08:00

This is a hot offer from American Express. If you have a good credit history and credit score, I would suggest you give it a try. The Gold Delta SkyMiles Credit Card from American Express is offering up to 35,000 bonus miles for new customers. Plus you can earn 1 miles for every $1 spent with this credit card. This credit card offers 35,000 skymiles for a long time. But you can only redeem them for airline ticket before. Now Delta starts to provide some gift cards for redemption at SkyMiles rewards program. So instead of getting free airline tickets, now you are able to get up to $350 free gift cards!!!

The application page of this credit card is at: https://www201.americanexpress.com/cards/Applyfservlet?csi=24/34268/b/293

The offer details are:

* 25,000 bonus miles with your first purchase.
* 10,000 additional bonus miles after you make $1,000 in purchases within your first 3 months of becoming a Cardmember.
* No annual fee for the first year, a savings of $95.
* One mile for every eligible dollar spent.
* Earn two miles for every eligible dollar you spend on qualifying Delta Air Lines and Delta Vacations purchases.

So after spending $1000 in 3 months, you are eligible to get 35,000 bonus miles.

Now you can go to Delta website to redeem those miles for gift cards (link):

Some featured merchants are:

Saks Fifth Avenue, Macy’s, Old Navy, Lands’ End, Gap, Bloomingdale’s, Banana Republic, Barnes & Noble ……etc

Good Deal!!!

BTW: the platinum version of this Delta SkyMiles Credit Card is offeirng 15,000 bonus miles.

Insurance Claims

2009-11-22T22:33:00.000-08:00

When you are involved in an accident insurance claims may not be the first thoughts on your mind. However, there are some procedures you should follow in order to preserve your right to file an insurance claim. This may be anything from hail damage to a stolen vehicle and does not refer solely to car accidents.

The first thing you want to do is prevention. Most insurance claims can be prevented even before the incident occurs. For instance, to prevent auto accident’s be cautious and think about taking a defensive driving course. To prevent stolen vehicle insurance claims, keep you vehicle locked up and parked in a secure place. To prevent damage from the forces of nature do not travel in bad weather and keep your car in a covered parkway. There are many ways to prevent yourself from incurring loss. Most ideas are just common sense. However, for more information contact your insurance agent for ideas on prevention. Next, you will want to remain calm. When disaster strikes people react. That is our nature. However, sometimes people’s reactions can make things worse on their insurance claims.

If you’re in a car accident this might mean taking the blame, leaving the scene of an accident, or putting your self in danger. If you’re car is stolen you may act on your reaction by accusing innocent persons. There are a number of problems that can arise when people over react that is why it is essential to your insurance claim for you to remain calm.

Now, the next thing you need to be aware of is time. You see, time is not on your side when filing an insurance claim. The longer you wait the less your chances are of recovering your loss. Most insurance companies will not even consider a claim if it was turned in a certain amount of time after the incident. It is also harder to prove the longer you go before submitting an insurance claim.

Finally, you will want to follow procedures and document everything. Insurance companies are hit with frauds all the time. In order to weed out the actual claims from the fraudulent ones, they have to have clear cut procedures. Unfortunately, this can sometimes be confusing to actual victims. Yet, they are in place out of the need to protect the company. This means that you will have to educate yourself to what the policies are. Find out what documentation you need and what forms you will have to file. If you need help, contact your insurance agent. That is what they are there for. If you follow this advice, you should be able to file a claim relatively easy and with the least amount of lag time before payment

How do I Open a Swiss Bank Account

2009-10-31T22:26:00.000-07:00

It is relatively easy to open a Swiss bank account, and you don't have to be rich or have a reason to hide your money to do so. Essentially, Swiss laws have one major requirement for those who wish to open a Swiss bank account: an account holder must be at least 18 years old. Besides that law, there aren't many other regulations, and a person can open a Swiss bank account using just about any type of currency, including United States dollars, euros, Swiss francs and others. In many cases, there's not even a specific minimum opening deposit. However, this can vary depending on the particular bank's rules, as can the minimum balance required to keep the account open.

In most cases, an application to open a Swiss bank account will be processed and accepted without a problem. However, Swiss banks may reject applications because the origin of the money to be deposited is somehow suspicious or seems unclear. An application may also be rejected if the origin of the money violates regulations established by Swiss laws. For example, strict regulations are in place to prevent money laundering and other schemes that are illegal according to the laws of Switzerland as well as many other countries.

It may be easiest to open a Swiss bank account in person. However, there are many Swiss banks that allow people to open accounts via the mail or facsimile. There are even some businesses that work to help others set up Swiss bank accounts from afar.

To open a Swiss bank account, you may be asked provide authentic copies of official documents. This requirement is typically to prove the origin of the money and your identity. For example, you may be asked to provide copies of your passport as well as proof of your occupation, such as a tax return or professional license. You may also be asked to provide proof of where you obtained the money you're depositing, if not from your job. For example, such proof could include documents detailing the sale of property or winnings from the lottery; you'll also have to prove your date of birth and your official address.

If you choose to open a Swiss bank account by mail, the application you need will be sent to you, and you'll have to mail it back, along with copies of the required documents. You also have to sign the application. If you open your bank account in person, you will still have to sign the application and provide your documents; you may also be asked to present a certified copy of your passport that has an apostille, which is a seal of authentication. Usually, apostilles can be obtained from notaries public. Though most banks in the United States accept a driver's license as identification, this is not the case with Swiss banks; you will have to provide an authentic copy of your passport.

What are Different Types of Bank Accounts

2009-10-31T22:24:00.000-07:00

There are several different types of bank accounts. Understanding them all can be difficult, as each banking institution may offer a broad range of bank account types. However, most bank accounts fall into one of five categories. By learning the different account categories, you can make deciphering the choices offered at your banking institution much easier.

A checking account is a bank account that uses checks as the primary instrument for withdrawing money. With a checking account, you can make purchases, pay bills, and give or loan money to anyone you choose. You can also use a check to transfer money from your checking account to a bank account at a different financial institution. Usually, financial institutions allow account holders to make as many deposits and withdrawals as they wish. Many allow account holders to make withdrawals and deposits through automatic teller machines (ATM) as well.

A savings account is another type of bank account that allows the holder to make deposits and withdrawals. However, savings accounts are not as flexible as checking accounts. Often, holders of this type of bank account are limited in the number of withdrawals and deposits they can make each month. Also, savings account holders are not able to access their money with checks. Many financial institutions allow savings account holders to make deposits and withdraw funds through ATM, however.

Another type of bank account is a money market account. This type of bank account pays interest at a higher rate than the rate paid on interest-bearing savings and checking accounts. Often, money market accounts impose a minimum balance for the account to start earning interest. The minimum required balance on a money market account is usually higher than that imposed on a checking or savings account. With a money market account, withdrawals are limited to six per month. No more than three of these withdrawals can be by check.

Time deposits, frequently referred to as certificates of deposit (CDs), are bank accounts that require the account holder to make a deposit and agree to leave funds in the account for a specific amount of time. In return for this agreement, the financial institution pays interest to the account. Often, the interest paid on a CD is higher that the rate paid on other types of bank account. The account holder is required to keep his or her money in the account until the specified term is over. However, some financial institutions allow account holders to withdraw interest, without affecting the principal. In some cases, account holders may be allowed to withdraw their principal funds before their CD matures, but a penalty is typically charged.

Some financial institutions also offer basic, no-frills bank accounts. A no-frills bank account may allow the holder to pay bills and cash checks without paying the high fees associated with completing such transactions without an account. An account of this type will likely allow for only a limited number of checks, deposits, and withdrawals to be processed in any given month. In most cases, interest is not paid on a no-frills bank account.

What Do I Need to Open a Bank Account

2009-10-31T22:23:00.000-07:00

Depending on how you open a bank account and what type of bank account you need, various materials may be required. At a minimum, you must provide proof of your age, address, and legal status, whether you open a bank account in person, on the phone, or on the Internet. Prepare to set aside approximately half an hour to open a bank account, and gather your supporting materials first so that you are ready to go. If you are opening a joint account with another person or a cosigner, collect all of your information and plan on being together to open the account.

Before you open a bank account, determine what kind of account you want, and where you want to bank. Most people have a checking account, which allows them to deposit money and then write checks or use a credit card to pay bills. Depending on the bank, you may be able to get an interest-bearing checking account, which will allow you to earn money on your deposit. In this instance, the bank will probably require a minimum balance, typically around $1,000 US Dollars (USD), and if your balance dips below this amount, you will be charged a fee. If you just want to put money away, you will want to research various types of savings accounts, which earn interest on your deposit, but do not have the flexibility of checking.

You also have options when it comes to banks when you open a bank account. If you travel or move a great deal, you will probably want to consider a large chain bank, which will have a plethora of automatic teller machines for you to access cash from, as well as many physical branches. If, however, you prefer to do business locally or do not travel a great deal, a local bank or credit union is a good choice, and it will support your local economy.

When you open a bank account in person, you will need identification which proves your age, such as a driver's license or passport, proof of address such as mail sent to your home, and an additional proof of your legal status, such as a social security number or passport. You should also bring money to deposit when you open a bank account. Go into the branch during off hours so that you can be helped quickly by the bank staff, and be sure to ask about fees associated with the account before you sign paperwork. Once you have completed all the information, you will be given a passbook and temporary checks, if you have opened a checking account, to use until the bank mails you official documents.

You can also open a bank account over the phone or on the Internet. Your supporting information is given to the banker over the phone or entered into a form, and the bank will request that you send in your signature to finalize the account. Once the bank has received your signature, they will send your checks, official passbook, and other materials related to your new bank account.

Is Online Banking Safe

2009-10-31T21:57:00.000-07:00

Banks now make it possible for customers to do most of their banking online, paying credit cards, utilities, loans, mortgages, and even transferring money between accounts. Customers can save postage, paper, time and gasoline, and that’s just good business. But with fraud and identity theft on the rise, is online banking really safe? Given a few precautions, the answer is probably yes.

To bank online a customer first sets up login credentials at the bank’s website. Once logged in, the customer can access all of his or her accounts at that institution along with relative statements or bills. With a few clicks of the mouse a payment can be made by transferring money from a savings or checking account. The savings or checking account need not be at the same institution. The customer supplies the bank account number and a bank transfer is initiated between the two institutions.

A secure environment is provided for online banking, noted by the https at the beginning of the website’s address. The “s” indicates that the connection between the website and the customer’s computer is secured by point-to-point encryption. Data travels between these two points in cipher. If someone were to “steal” information en-route, they would see unreadable gibberish.

There are precautions to take, however, to make online banking safe. The first rule is never click through to a banking site via a link in email. The email might be a phishing scam, taking unsuspecting people to a fake website that looks exactly like the real thing. By setting up a fake banking site, thieves can capture usernames and passwords customers enter in an effort to login. These usernames and passwords can be used by the thieves at the real site to gain access to financial accounts and funds.

Even when sure that an email is legitimate, go to a banking site through normal channels as a matter of practice. Also note that banks do not ask for sensitive information through email. If the email asks for any kind of response or information, call your bank to verify using a phone book. Do not use phone numbers supplied in the email.

Secure online banking is safe over a wireless network, as the encryption used will prevent your information from being broadcast in readable form. However, it’s a bad idea to do online banking from someone else’s computer. A work computer, friend’s computer or public computer might have spyware, rootkits or keylogger programs running. A keylogger records everything typed into the keyboard, often transmitting the information to a remote third party who has infected the computer without the owner’s knowledge.

Along these lines, clean your computer with a few good scanners before starting online banking. Even if you run an antivirus program that looks for viruses, Trojans and keyloggers, many of these programs don’t search for rootkits or spyware. Use spyware and rootkit scanners reviewed and recommended by websites such as PCWorld, TuCows, ZDNet and MajorGeeks. Sticking with tried and true, recommended software will ensure you don’t unintentionally infect your computer while trying to clean it.

With a clean computer you’re ready to roll into online banking and experience the ease of paying bills online. Keep usernames and passwords secure, and if you are going to write them down, keep them in a private place. Once you’ve tried online banking, you’ll never look back.

What Should I Consider When Choosing a Bank

2009-10-31T21:42:00.000-07:00

Choosing a bank is an important decision. Many people would like to pick a single bank and stick with it for the rest of their lives, so it is a good idea to take time and think about your needs before choosing a bank. By establishing what you know you need in a bank, you can narrow down your choices. When you are choosing a bank, make sure to collect information from several banks so that you can examine it at leisure, and always check to make sure that the bank is insured, as you want your funds on deposit to be safe.

A major consideration for many people when choosing a bank is accessibility and availability. If you travel a great deal, for example, you will want a bank with an extensive branch and Automatic Teller Machine (ATM) network. If you have a tight schedule, you may want a bank which offers extended hours, or is open on the weekends. You may also want to think about choosing a bank which is a quick walk from home or work, making banking very easy for you.

You should also ask yourself how you want to deposit money at the bank. Most banks offer both checking and savings accounts, which may bear varying levels of interest. Some banks also require a minimum deposit, which is an important consideration if you are on a tight budget. While thinking about the types of accounts you want, you may want to think about how many checks you write each month, and if you will need extra services like traveler's checks, direct deposit, or a debit/credit card.

Many people like to do their banking online or by telephone. If this is important to you, find out whether the banks you are interested in offer these services, and if additional charges are imposed. You may also want to explore their online interface, to see whether or not you like using it. While asking about fees for these services, you should check on general banking fees as well, as these can vary from free to quite expensive, depending on the bank.

Finally, you should think about how you will be using the bank. If you are choosing a bank for personal accounts and nothing else, your needs may be different than someone who needs a bank for a business account as well. In addition, you may want to consider whether or not you want options such as a mortgage or car loan through your bank. Centralizing your accounts in one place can be convenient, and you may be able to get a better deal.

If you do not travel extensively and you would like to support your local community, you may want to consider a credit union. Credit unions keep their investments local, building a stronger and better community with the funds deposited there. Sometimes, a credit union can offer better interest than a conventional bank, and credit unions may also offer checking accounts and other features associated with regular banking. Credit unions also tend to invest more ethically than major banking companies, if this a concern.

How do I Get the Best Banking Services

2009-10-31T21:37:00.000-07:00

Banking services vary widely in an effort to serve as many customers as possible. Finding the best banking services will require you to prioritize different aspects of banking in order of importance, to be able to get the services that benefit you the most. For example, banking hours might be of particular concern to one client, whereas the interest rates offered on Certificates of Deposit (CDs) may be of top importance to another person. A fair amount of research and comparison goes into getting the best banking services.

One of the first steps to take would be to compare available services based on different parameters. One bank may offer a discounted credit card rate, for example, but their checking accounts may have fees or surcharges. Another may have free checking, but an above-average credit card rate. If you need a credit card but are already satisfied with a checking account at another bank, the first bank may be the most beneficial. On the other hand, if you have too many credit cards already and need a less costly checking account, the second bank may be the wiser choice.

It’s also a good idea to look for promotions. Many banks, for instance, will offer a promotional CD interest rate, or a $100 U.S. Dollar (USD) deposit upon opening a new checking account. Advertisements for promotions are easily found at the bank location, and sometimes through direct mail or other media. Some banks have regular promotions that run on a yearly or seasonal basis, so direct inquiry at a bank branch about upcoming specials may also be worth the effort.

Hidden fees and other charges may be present in the terms and conditions when opening an account. It is important to review account documents thoroughly, as well as inquiring about unexpected charges before opening an account, to avoid unpleasant surprises later on. If certain account terms seem too good to be true, there are usually trade-offs in the form of hidden fees, and a wise consumer of banking services will take the time to educate himself about these.

Certain people may also want to look into alternative banking hours, locations, and online banking options when looking for banking services. Depending on the person’s schedule requirements and lifestyle, these may be important considerations. Some banks even operate strictly online, without traditional branch locations. Face-to-face customer service is lost here, of course, but these banks are often able to offer highly competitive interest rates on savings and time deposit accounts, making this an attractive option for some.

What is a Consumer Bank?

2009-10-31T21:34:00.000-07:00

A consumer bank is any bank that accepts deposits, offers services like making private loans to individuals, and allows you person-to-person contact at a specific location, called a branch. Essentially any bank you walk into to deposit your paycheck is a consumer bank. The term refers to the fact that the bank has a physical location or branch, and to the fact that it serves individual customers. Serving individuals instead of businesses can also be called retail banking.

The consumer bank is actually a relatively new phenomenon in the history of banking. Most banks were initially built to serve businesses and countries. They weren’t examples of a consumer bank, since they didn’t normally provide services to individuals, unless you were extremely wealthy and your deposits financed some aspects of the bank’s business endeavors. It wasn’t until about the mid 1800s that banks started seeing the value of offering accounts and safe depositing places for the average person.

Private individuals often didn’t help matters. They were wary of placing their money into the hands of others, and feared what would happen if the bank failed. Such events did occur from time to time, and some people hid their money or even “stuffed mattresses” instead, to avoid giving their money into someone else’s care.

Several consumer bank types evolved, such as credit unions and savings and loan companies. Some people particularly preferred credit unions, since they were “owned” to a degree by the people who deposited money into them. Anyone familiar with the classic Christmas movie It’s a Wonderful Life, is likely to remember the scene where there is a run on George Bailey’s Building and Loan and the local town bank. As George Bailey attempts to explain to the people worried about their money, it’s invested throughout the town in loans to other people, but some people still demand their money, costing George and his wife their honeymoon.

For a long time, fear of the consumer bank existed for people because there was no guarantee that if the bank collapsed you’d ever see your money again. This is no longer the case for most consumer bank types of today. Most in the US carry insurance on your deposits, from the Federal Deposit Insurance Corporation (FDIC). When the FDIC backs a consumer bank, up to $100,000 US Dollars of your money is insured should the bank collapse. As financial experts warn, if you have more than this amount, it is better to have no more than this insured amount in any one bank.

In recent years, with the development of so many different ways of banking, via the Internet, ATMs, and telephones for instance, many retail bank branches have closed. This can be irritating for people when they do need to talk to an actual person or conduct banking business that can only occur in person. Some banks, though, have noticed that not all customers are pleased when branches close, and have invested money in opening more branches so that customers have more options as to how to conduct their banking.

Fixed Annuity

2009-10-29T21:06:00.000-07:00

An annuity is a form of retirement income which provides a stable source of financial support, as it consists of returns on an investment which are paid on a regular schedule such as quarterly or annually. A fixed annuity, also called a flat or equal annuity, is a type of annuity which takes the form of consistent payments. A fixed annuity is more stable than a variable annuity, because the annuitant can be confident that he or she will make the same amount of money with each payment, but it is also not as flexible, because the return on an investment provided by a fixed annuity will not increase if the market improves.

To establish an annuity, most individuals work with a firm or financial planner who will purchase the annuity. While the annuity is being set up, options including the length of the annuity and whether it will be fixed or variable are discussed. A financial planner can usually provide sound advice about the best type of annuity to choose, depending on the health of the annuitant and other potential sources of retirement income. In general, a fixed annuity is a good choice for a single person who will be retiring without other sources of income. A variable annuity, however, might be a stronger tool for a couple, or someone with backup income.

In a fixed annuity, the payments will always be exactly the same. Usually a fixed annuity continues for life, or can be rolled over to a partner or specific descendants, depending on the firm issuing the annuity. The dependable form of income represented by a fixed annuity can be reassuring to retirees. However, a fixed annuity will not keep pace with inflation. If the retiree lives well beyond retirement age, he or she may experience weakened purchasing power because of the size of the annuity.

In the case of a variable annuity, the annuity usually has two components. The first is a fixed annuity component, to guarantee a baseline level of income. The amount of the fixed annuity will be discussed and included in the contract. The other component is variable, and will increase or decrease depending on the market. In a strong market, this may mean that the annuitant is making a substantial sum of money. In a weaker market, or if the investments that the annuity is based on are performing poorly, the annuitant may make little or no money from the variable aspect of the annuity.

How I do I Find Discount Health Insurance

2009-10-29T20:54:00.000-07:00

The term discount, in discount health insurance, is a bit confusing to consumers. There are discount health companies, which instead of offering insurance to customers offer a discount on health services from participating providers, in exchange for low monthly fees. These discounts can be small or large and might be offered by doctors, pharmacists, dentists and others. The companies that offer these plans aren’t insuring people though; its more comparable to a Costco® membership. When people join Costco® they get access to its pricing, but still have to pay a certain amount to buy goods at the warehouse store.

People will find many discount health plans online. Any site should claim it is not insurance, and people should be extremely suspicious if a discount plan is marketed as discount health insurance. Also, any plan should allow people to look at lists of health providers in their area that honor the plan, to determine if enough people offer a discount to make the plan worthwhile.

Alternately, people may truly mean they want discount health insurance or low price medical insurance. This might also mean they want access to a health maintenance organization for a low price. There are several potential methods for achieving this and the first is to begin by investigating any plan offered by an employer. In most cases group health insurance will be cheaper than any other form; private insurance is usually more expensive by a significant amount and carries fewer protections for the insured. If a person’s company does not offer health insurance, it may be wise to start shopping around for an employer who does.

Some employers do offer discount health insurance or lower price insurance but employees may still not be able to afford it. Making minimum wage while trying to support a family can be difficult, and people might qualify for other assistance to get health care. In many states, children may qualify for discount health insurance through the State Children’s Health Insurance Program (SCHIP), which usually costs a small fee per month and then some very small copayments when kids need medical care. This is available only through income qualification, but if people are making fairly low wages, they may definitely qualify.

Those who make even lower wages may qualify in the US for Medicaid. This program is completely free and may prove an excellent help to those who meet income qualifications. Those with low income who are currently receiving Medicare might also get assistance from Medicaid to pay for their Medicare costs.

Those looking for discount health insurance through programs like Medicare may have a lot of choices too. One of the best places to look for these is on US Health and Human Services Department website. Another resource people may find useful is the American Association of Retired Persons, which may offer counseling on the type of insurance available to those receiving Medicare.

Capital Note

2009-10-29T20:48:00.001-07:00

In an accounting context, capital is money available to a business or individual to invest in order to produce more income. A note is a debt instrument. Capital notes are unsecured loans based on a company’s credit standing. These are issued as a short-term debt and pay a fixed rate of interest.

Capital notes are considered a higher risk than a secured loan, since they rank lower than all other creditors if the company defaults. As a result of the increased risk, the note pays a higher rate of interest than a secured loan would pay. For an investor who wishes to diversify his portfolio with a product that provides a steady income at a higher return, this may be a good option. For businesses, such notes are a practical way to raise capital.

Banks around the world offer capital notes, also known as debentures, to fund investments, expansion, or to meet mandated capital limits. The laws regarding a bank issue of a capital note may vary from country to country. In the United States, banks can use these as a supplemental source of capital to maintain the mandatory capital-to-asset ratio. Additional requirements include the following; the notes must be for a minimum term of seven years, they cannot have a call feature which allows the investor to cash in prior to the maturity, and they must stipulate that the bank exchange the notes for common stock at a future date for a predetermined price.

In Australia, capital notes are sold on the Australian Stock Exchange. These are generally classified as moderate risk, and offer semi-annual payments at a fixed rate of return. New Zealand offers capital notes, also referred to as corporate bonds, on the New Zealand Debenture Exchange, and requires that the notes include a conversion option at maturity. If the buyer chooses convert the loan instead of extending it, the issuer can either pay back the principal or replace the note with discounted common shares. In other countries, banks and businesses may offer notes directly to the public.

Capital notes are the lowest priority financial instrument found in a structured investments vehicle (SIV). An SIV is a pool of assets, or investment products, which create a financial instrument and provide additional financing opportunities for the underlying investments. The cash flow from these underlying investments is then diverted to the investment group to pay back the indebtedness. The pools use a variety of products, all of which have higher standing than the capital notes, which means the notes will be the last to be paid if cash flow decreases.

Investors who are attracted to the idea of adding a higher-interest yield, income-producing investment, should do research into the terms of various capital notes before committing any funds. The level of the risk associated with the note is determined by the credit rating of the company and what rank the note has in relation to other corporate debts. The rank will determine the order in which debts are paid if the company goes out of business. Some companies do not offer credit ratings, increasing the risk of the investments, while other companies actually secure insurance for their notes.

Discount Note

2009-10-29T20:45:00.000-07:00

Discount notes are financial instruments that are usually sold at a discount and do not include any type of guaranteed interest rate that will be paid upon maturity. For the most part, any discount note will mature in a short period of time, normally no more than one calendar year from the date of issue. One example of this type of note is the Treasury bills issued in the United States.

Discounted notes do provide a couple of advantages for investors. First, they are easily one of the safest investment options available. The extremely low volatility associated with a discount note means the investor has virtually no concerns about sustaining a loss, and will stand to make some small amount of return on the investment. For investors who are very conservative, a discount note can be a good idea.

Another advantage of the discount note is the short waiting period to maturity. Just about any type of discount note, including agency discount notes, will mature in twelve months or less. This means the investor can easily identify when the note will mature and be prepared to use the proceeds from the investment in some new venture.

However, a discount note is not for everyone. Depending on the financial goals of the investor, tying up resources with low yield notes of this type is simply not viable. While it is true the note is among the safest investing options available today, the return is less than spectacular. Any investor who is willing to run some degree of risk in exchange for a potentially higher return would do well to look for other investment options.

In general, a discount note is a good idea for a new investor who is just beginning to get an idea of how much risk he or she is willing to absorb in order to make money with investing. At the very least, having one or two discount notes in the investment portfolio helps to serve as an anchor or foundation. The notes make it possible for the portfolio to have a solid base of value as the novice investor explores the possibility of more volatile investments with an opportunity for a higher return.

Along with government issued discounted notes, some merchants also use a form of the note as a means of retaining current customers and attracting new ones. This type of discount note involves issuing the note when a purchase of goods is made. The customer receives a discount note that can be applied to a purchase sometime in the future. Generally, there are some terms and conditions that apply to this type of discounted note, such as the necessity of redeeming the note within a specific amount of time after the original purchase.

Bank Note

2009-10-29T20:44:00.000-07:00

A bank note is a promissory note issued by a bank. It is payable on demand, sometimes in the form of precious metals like gold and silver, and sometimes in exchange for assets such as bonds issued by the bank. Bank notes are considered legal tender, and they are used in billions of financial transactions all over the world every day. A bank note, in other words, is currency or money.

Originally, people paid for goods and services with objects of physical value, such as precious metals. Over time, governments began issuing bank notes, pieces of paper which could be exchanged for these objects of value. Although the paper itself is physically worthless, it represents value. These certificates were much lighter and more practical to carry around than piles of gold and silver. Small denominations of currency were cast in coins made from less precious metals, so people generally carried around a mixture of bank notes in paper and small coin.

Over time, the use of a gold or silver standard to back up bank notes was abandoned. This means that a bank note in the United States, for example, can no longer be exchanged with a bank for gold or silver, but it is still convertible into other financially valuable assets. This is known as financial convertibility, differentiating it from physical convertibility. Money which is not physically convertible is still valuable as long as banks have the assets to support it.

In the United States, the Federal Reserve Bank regulates the amount of currency that is made and distributed by the Bureau of Printing and Engraving. All bank notes in the United States have emblems indicating that they are issued by the Federal Reserve. The values of these bank notes are also clearly printed, and they include security features to reduce the risk of forging. Banknotes from other nations are issued by their respective central banks.

Some people collect historical examples of paper money, or banknotes from other countries because they are objects of interest. This is a branch of numismatics, the study of money, currency, and financial systems. In some cases, a bank note may no longer be considered legal currency, but it may have acquired numismatic value. A Confederate bank note from the American Civil War, for example, is not technically money, but is has monetary value because it is an object of interest. People may also establish collections of antique coins in addition to paper money.

Deposit Multipliers

2009-10-29T20:41:00.000-07:00

Deposit multipliers are a strategy that is applied when it is necessary to identify the amount of money that is created in the money supply of a bank. The resulting figure helps to ensure that the bank is maintaining at least the minimum amount of funds on hand to comply with any government regulations regarding the operation of the institution. Calculating the deposit multiplier also helps the bank to know what surplus or excess funds are on hand to make loans to individuals and businesses.

To arrive at the deposit multiplier, it is important to know the current status of bank reserves as well as the deposits on hand. By determining the ratio between the reserves and the deposits, it is possible to arrive at the current reserve ratio that will apply in the current economic situation. The deposit multiplier is normally considered to be roughly one-fourth of the calculated reserve ratio, although the exact ratio will fluctuate as economic conditions change.

In the United States, regulations regarding the function of financial institutions make it necessary for the banks in the Federal Reserve System to operate with the function of a deposit multiplier. Other banking institutions in the country also function within these same guidelines. The benefit to this arrangement is that the banks maintain enough resources on hand to provide services to their customers and be able to write new loans and mortgages as a means of generating more revenue.

Assuming that the current reserve ratio is 25%, a bank in the United States would be required to take in $4.00 US Dollars for every dollar that is put to use for loans and other financial services offered by the banking institutions. This type of ratio helps to keep a degree of balance between the amount of reserves available for use and the amount of reserves that are utilized to extend mortgages and other loans as part of the process of making more money for the institution.

The deposit multiplier is not a fixed amount. Depending on the amount of reserves and deposits involved, the multiplier may be higher or lower. For this reason, the variables involved are evaluated on a continual basis, allowing banking institutions to make adjustments as needed.

What are Fixed Deposits ?

2009-10-29T20:38:00.000-07:00

Fixed deposits are loan arrangements where a specific amount of funds is placed on deposit under the name of the account holder. The money placed on deposit earns a fixed rate of interest, according to the terms and conditions that govern the account. The actual amount of the fixed rate can be influenced by such factors at the type of currency involved in the deposit, the duration set in place for the deposit, and the location where the deposit is made.

The most unusual characteristic of a fixed deposit is that the funds cannot be withdrawn for a specified period of time. In most cases, fixed deposits carry a duration of five years. During that time, the money remains in the account and cannot be withdrawn for any reason. Individuals, corporate entities, and even non-profit organizations that wish to set aside funds and limit their access to the funds for a period of time often find that fixed deposits are a simple way to accomplish this goal. As an added benefit, the monies in the account will earn a fixed rate of interest regardless of any fluctuations in interest rates that apply to other types of accounts.

However, both these benefits can also turn into disadvantages under certain circumstances. Because the money cannot be withdrawn until the duration is complete, the funds cannot be used even in emergency situations. Changes in the going interest rate may also rise to a point above and beyond the interest rate applied to existing deposits. This means account holders are actually earning less interest with fixed deposits than with other types of loans and accounts.

While the interest rate on fixed deposits cannot be changed, there is sometimes a way to work around the issue of obtaining use of funds in an emergency situation. At times, the lending institution where the fixed deposit is placed may be willing to extend a separate loan to the account holder, using the fixed account as collateral. While not ideal, this can at least make it possible to deal with the current financial crunch.

Fixed deposits are a credible way to make a return on investment that is somewhat higher than a standard savings account. The use of fixed deposits can also be helpful when working with various types of currency. By establishing what is known as a Foreign Currency Fixed Deposit or FCFD, it is possible to choose the type of currency involved in the deposit and lock in a rate of interest. If the choice of currency is a good one, this means the investor can enjoy a healthy fixed deposit currency rate for the duration of the deposit and earn more than with a standard fixed deposit strategy. However, going with an FCFD does contain a slightly higher amount of risk, since the funds deposited must be converted to the currency of choice and then converted back when the deposit is fulfilled. If the currency did not fare well in the interim, there is some chance of obtaining a loss, due to the changes in the rate of exchange from the time the fixed deposit was activated until the time the deposit is considered complete.

Deposit Insurance

2009-10-29T20:32:00.000-07:00

For a depositor to be able to confidently entrust a bank with his money, it helps if there is some kind of guarantee that, no matter what may happen, he will be able to get his money back. Deposit insurance is the primary way to guarantee the security of a depositor's money. This is important because of the very real risk of bank failure. Dozens and even hundreds of banks fail, or become financially insolvent, every year. In the United States, depositors' money is insured by the Federal Deposit Insurance Corporation (FDIC).

The need for deposit insurance arises mainly from the fact that banks are in the business of lending money and collecting interest on it. This money comes from depositors' accounts, and in most cases, banks keep only a small percentage of their customers' money on reserve as cash at any given time. This practice, known as fractional reserve banking, is very common around the world and is considered to be completely ethical.

The danger lies in the fact that if a bank's customers sense that their bank is having some kind of financial problems, due to borrowers defaulting on loans or any unexpected hardship, their incentive is to get their money out while they still can. When a bank's depositors all do this at once, it is said that there is a run on the bank. Because a bank only holds a fraction of the total funds on reserve, not everyone will be able to get their money. Those who can get it, do so, and without any cash left on hand, the bank usually has no choice but to go out of business.

At least that's the way things went before deposit insurance. In the aftermath of the widespread bank failures of the 1930s, deposit insurance was instituted for banks in the United States during the Great Depression. Many other countries followed suit soon after. Deposits at credit unions also became insured as of 1970. As is the case in most countries, deposit insurance in the U.S. is government-run. Banks pay what amount to insurance premiums to the FDIC, who will step in if a bank fails and provide the bank's depositors a way to retrieve their money. In the event that this has to be done, it is usually a very orderly process, as distinct from a run on a bank.

Deposit insurance, as important as it is, is not unlimited. In most instances, there is a government-imposed cap on the amount of funds that any one depositor can be guaranteed to get back if the bank fails. This does not preclude someone from having accounts at multiple banks as a precaution, and in fact, most wealthy individuals do just that as part of a common strategy known as diversification.

What is a Time Draft

2009-10-29T20:24:00.000-07:00

Time drafts are financial drafts that carry a payment date that is set for some specified future point in time. Generally, there are specific circumstances or conditions that must be met in order for the time draft to pay out. Often, the time draft is put in place with the anticipation that certain events will occur between the date that the draft is created and the date that the draft is set for execution.

The time draft is different from the common sight draft. With a sight draft, the transaction can take place at any time. All that is required is that the issuer of the draft initiate the transaction. As long as the draft meets the general terms and conditions that apply to any type of transaction conducted by a bank or financial institution, the sight draft will be honored and processed upon presentation.

By contrast, the time draft cannot be executed prior to the date specified in the terms of the draft agreement. Furthermore, any provisions included in the text of the draft must be complied with in full before the issuing financial institution will execute a time draft. For example, if the anticipation is that a Letter of Credit will be approved prior to the execution date named in the time draft, the approval must take place and be confirmed before the time draft will be honored.

The time draft is sometimes utilized as a means of making advance preparations to render compensation to a third party is payable in the future. In situations where the payment is conditional on the completion of specified tasks or projects contracted by the third party, the issuing institution usually requires some sort of proof that the project or task has in fact been completed before the draft is honored and processed. Thus, the time draft is sometimes a helpful tool in keeping projects on target for completion, as the recipient of the draft has a vested interest in completing the work on schedule and receiving compensation in a timely manner.

What is a Bank Draft

2009-10-29T20:22:00.000-07:00

f you have to make a large purchase, and do not carry credit cards or cash with you, a private or public seller may ask you to pay by bank draft. This term is more commonly used in the UK than it is in the US, where it is roughly equivalent to the word cashier’s check. Essentially, up to a certain amount of money, a genuine bank draft or cashier’s check is guaranteed.

When you withdraw funds from your account to get a cashier’s check, you are essentially purchasing the bank draft. Once you’ve purchased the cashier’s check, or money order, the money in your account is gone and can’t be spent on other things. This can add extra security to the person selling you something, because it can guarantee that your check will not bounce. The same cannot be said of personal checks, which offer no guarantee that money exists in the account to cover the check.

The face of the bank draft, cashier’s check or money order is changing with so many people now banking with ATM cards. Further, software currently exists that can automatically deduct funds from your bank account. This is increasingly in use in retail locations, and chances are it may become standard at some future point. There are thus only a few reasons why you might need to use a bank draft instead of a standard check or an ATM or credit card. If you’re purchasing or renting something from an individual, instead of from a store or a large company, that individual is not likely to have the means of determining whether a personal check is valid, and probably doesn’t have the ability to take credit card or ATM transactions.

For example, you might need a bank draft as part of a deposit to hold a house you plan to rent, or you might need cash or a cashier’s check to pay for a car you plan to purchase from a private seller. While some people might prefer to pay with cash, this is not always a good idea. Getting a bank draft at the least provides you with a record of a transaction, whereas cash does not. The draft is usually made out to the individual to whom you are making the payment, and this is also recorded. You can show you withdrew cash from your account, but you may not be able to prove that you then gave it to a third party. It can cost a little money to purchase a cashier’s check, usually a couple of dollars per hundred US Dollars (USD) withdrawn. Many find the security of researchable records is well worth the cost.

In recent years there have been some unfortunate scams involving bank drafts that are phony. Since printers are now so capable of creating very realistic appearing checks, people have been fooled into taking bank drafts that don’t truly have any value. To avoid this, you might want to accompany the buyer to his or her bank to see the bank draft written out, or you might ask for a cash payment instead. Another way of checking is to call the bank from which the draft originates and verify that the draft is indeed real. If you’ve never heard of the bank before, get the phone number independently from your telephone operator or phone book, instead of using the number on the check.

SMS Banking

2009-10-21T01:57:00.000-07:00

Push and pull messages

SMS banking services are operated using both push and pull messages. Push messages are those that the bank chooses to send out to a customer's mobile phone, without the customer initiating a request for the information. Typically push messages could be either Mobile marketing messages or messages alerting an event which happens in the customer's bank account, such as a large withdrawal of funds from the ATM or a large payment using the customer's credit card, etc. (see section below on Typical Push and Pull messages).

Another type of push message is One-time password (OTPs). OTPs are the latest tool used by financial and banking service providers in the fight against cyber fraud. Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumer’s phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired.

Pull messages are those that are initiated by the customer, using a mobile phone, for obtaining information or performing a transaction in the bank account. Examples of pull messages for information include an account balance enquiry, or requests for current information like currency exchange rates and deposit interest rates, as published and updated by the bank.

The bank’s customer is empowered with the capability to select the list of activities (or alerts) that he/she needs to be informed. This functionality to choose activities can be done either by integrating to the internet banking channel or through the bank’s customer service call centre.

Typical push and pull services offered under SMS banking

Depending on the selected extent of SMS banking transactions offered by the bank, a customer can be authorized to carry out either non-financial transactions, or both and financial and non-financial transactions. SMS banking solutions offer customers a range of functionality, classified by push and pull services as outlined below.

Typical push services would include:

* Periodic account balance reporting (say at the end of month);
* Reporting of salary and other credits to the bank account;
* Successful or un-successful execution of a standing order;
* Successful payment of a cheque issued on the account;
* Insufficient funds;
* Large value withdrawals on an account;
* Large value withdrawals on the ATM or EFTPOS on a debit card;
* Large value payment on a credit card or out of country activity on a credit card.
* One-time password and authentication

Typical pull services would include:

* Account balance enquiry;
* Mini statement request;
* Electronic bill payment;
* Transfers between customer's own accounts, like moving money from a savings account to a current account to fund a cheque;
* Stop payment instruction on a cheque;
* Requesting for an ATM card or credit card to be suspended;
* De-activating a credit or debit card when it is lost or the PIN is known to be compromised;
* Foreign currency exchange rates enquiry;
* Fixed deposit interest rates enquiry.

Concerns and skepticism about SMS banking

Many banks would have some concerns when the prospects of introducing SMS banking are discussed. Most of these concerns could revolve around security and operational controls around SMS Banking. However supporters of SMS claim that while SMS banking is not as secure as other conventional banking channels, like the ATM and internet banking, the SMS banking channel is not intended to be used for very high-risk transactions.

Quality of service in SMS banking

Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of Service Level Agreement(SLA) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform.

The convenience factor

The convenience of executing simple transactions and sending out information or alerting a customer on the mobile phone is often the overriding factor that dominates over the skeptics who tend to be overly bitten by security concerns.

As a personalized end-user communication instrument, today mobile phones are perhaps the easiest channel on which customers can be reached on the spot, as they carry the mobile phone all the time no matter where they are. Besides, the operation of SMS banking functionality over phone key instructions makes its use very simple. This is quite different from internet banking which can offer broader functionality, but has the limitation of use only when the customer has access to a computer and the Internet. Also, urgent warning messages, such as SMS alerts, are received by the customer instantaneously; unlike other channels such as the post, email, Internet, telephone banking, etc. on which a bank's notifications to the customer involves the risk of delayed delivery and response.

The SMS banking channel also acts as the bank’s means of alerting its customers, especially in an emergency situation; e.g. when there is an ATM fraud happening in the region, the bank can push a mass alert (although not subscribed by all customers) or automatically alert on an individual basis when a predefined ‘abnormal’ transaction happens on a customer’s account using the ATM or credit card. This capability mitigates the risk of fraud going unnoticed for a long time and increases customer confidence in the bank’s information systems.

Technologies employed for SMS banking

Most SMS banking solutions are add-on products and work with the bank’s existing host systems deployed in its computer and communications environment. As most banks have multiple backend hosts, the more advanced SMS banking systems are built to be able to work in a multi-host banking environment; and to have open interfaces which allow for messaging between existing banking host systems using industry or de-facto standards.

Well developed and mature SMS banking software solutions normally provide a robust control environment and a flexible and scalable operating environment. These solutions are able to connect seamlessly to multiple SMSC operators in the country of operation. Depending on the volume of messages that are require to be pushed, means to connect to the SMSC could be different, such as using simple modems or connecting over leased line using low level communication protocols (like SMPP, UCP etc.). Advanced SMS banking solutions also cater to providing failover mechanisms and least-cost routing options.

Telephone Banking

2009-10-21T01:56:00.000-07:00

Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone.

Most telephone banking use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative (see below). With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customer's accounts, etc.

Usually, customers can also speak to a live representative located in a call centre or a branch, although this feature is not guaranteed to be offered 24/7. In addition to the self-service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investment purchases and redemptions, chequebook orders, debit card replacements, change of address, etc.

Banks which operate mostly or exclusively by telephone are known as phone banks.

Online Banking

2009-10-21T01:53:00.000-07:00

Online banking solutions have many features and capabilities in common, but traditionally also have some that are application specific.

The common features fall broadly into several categories

* Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer... and applications... apply for a loan, new account, etc.)
o Electronic bill presentment and payment - EBPP
o Funds transfer between a customer's own checking and savings accounts, or to another customer's account
o Investment purchase or sale
o Loan applications and transactions, such as repayments

* Non-transactional (e.g., online statements, check links, cobrowsing, chat)
o Bank statements
* Financial Institution Administration -
* Support of multiple users having varying levels of authority
* Transaction approval process
* Wire transfer

Features commonly unique to Internet banking include

* Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.

Security
Security token devices

Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking.

* The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (this is called two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed.
* Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.

Attacks

Most of the attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information.

A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background.

A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states.[4]

The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horses permits a remote attacker to modify the destination account number and also the amount.

Countermeasures

There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments.

Home Renters Insurance is Worth the Time Invested in Shopping

2009-10-19T23:04:00.000-07:00

By Kevin Wynn

Buying home renters insurance can be a tiring experience but once you have purchased you policy, it is so worth the time invested. You should begin by making a list of your possessions. You should include clothing and every day belongings such as dishes, televisions, furniture, etc. Next consider what it would cost you to replace them in case of fire, water damage or theft. Finally, go online and search some of the insurance websites for the best quote you can get. If the policy does not offer a high enough limit on contents, you can include an endorsement for high value item insurance that will cover items such as jewelry, furs, computer equipment and other high dollar items.

There is an abundance of companies that offer home renters insurance to buy. Progressive, Allstate and Geico are some of the better known companies but there are others such as Assurant and AGI that are less public about their insurances. Tenants of all walks of life depend on these companies to provide them with content and liability insurance that helps protect them from loss and legal action. The cost of this type of coverage is nominal when you consider the cost involved with replacing the contents of your home.

You can buy your home renters insurance online or over the phone. Most all companies will give you an instant quote for you to compare to other companies. It is recommended that you compare rates with several companies before choosing one specific company. You can compare the major league companies like Geico, Progressive and Allstate and find the best company from those. Then compare that rate to the less public companies such as Assurant and AGI to get the lowest rates for the best coverage.

Insurance companies offer their customers a discount program when they buy several policies with their company. For instance if you already have auto insurance and add home renters insurance, you can get a discount on the rates of your policies. This type of program offers a larger discount the more policies you own. You can also get discounts for safety and security features that your home has implemented. This gives you an instant discount that can lower your rates even more. Very few companies offer liability coverage above the average limits. Allstate allows you to choose the coverage of liability you need.

All tenants of rental property should be aware that it is their responsibility to carry insurance on the contents of their home as well as liability insurance. These are usually combined in one policy and each policy has a deductible that tenants are responsible for paying in the event of a loss or damage. The next time you see an apartment fire on the news, you will wonder if those tenants had home renters insurance. It may even convince you to buy your own to help protect your possessions as well as your future income from legal action.

For more information concerning Home Renters Insurance, pay a visit to http://www.theapartmentrentersinsurance.com.

The Advantages of the Workers' Compensation System

2009-10-11T21:20:00.000-07:00

By Joseph Devine

Even when economic times are not as tough as they have been in recent years, the vast majority of American families live paycheck to paycheck. In such a delicate balance of income and living expenses, any disruption has the potential to lead to financial catastrophe. Workplace injuries often leave an employee and his or her family in a seemingly impossible situation and can cause tremendous physical, emotional, and financial adversity. To help combat these adverse effects, the federal government and each state has enacted law and regulations compelling employers to carry workers' compensation insurance.

In the event of an occupational injury or illness, the harmed employee is granted the opportunity to file a claim for workers' compensation benefits. The workers' compensation insurer evaluates this claim, and if it is approved then payments will be rendered for costs incurred by medical care and lost wages associated with the injury. There is no consideration given to which party is at fault, but occasionally the insurance company will attempt to deny a claim on spurious grounds in an effort to boost its profits and violate the rights of an injured worker. Depending upon the circumstance under which a claim is denied, it may be appropriate to file a suit for workers' compensation fraud.

Workers' Compensation Vs. Litigation

When extraordinary negligence or malicious actions play a role in an occupational illness or injury, then workers may have greater remedies available to them through litigation. Typically, though, the most appropriate resolution can be brought about through a workers' compensation claim. There are some potential drawbacks to this option, including a firmly imposed limitation on the amount of financial compensation and range of damages for which you may receive benefits. These were accepted as concessions to employers in exchange for other, more favorable terms.

The resulting workers' compensation scheme has several distinct advantages over the previous environment in which the only recourse available was through the courts. Of course, there are different perspectives on the matter, but it is important to note and appreciate the following positive aspects of the workers' compensation system:

An approved claim guarantees that all pertinent medical expenses will be paid
Weekly compensation (usually 66 2/3 % of average weekly wage) while hurt
No burden of proof regarding fault
Much swifter distribution of benefits than in a drawn out court case
Limited prospect of a negative outcome such as an unfavorable jury verdict

For Help With Claims

The process of filing for workers' compensation benefits can be confusing and complicated. Mistakes can create procedural grounds upon which your claim may be denied, keeping the money and medical treatment that you need out of the reach of your family. For help with claims, speak with the experienced Des Moines workers' compensation lawyers of LaMarca & Landry, P.C.

Joseph Devine

Workers Compensation Insurance and the Issue of Premiums

2009-10-11T21:18:00.000-07:00

By Herman White

All those people who are associated with construction business know how important workers' compensation insurance can be. In fact, there are people who now believe that this insurance should be used in all types of businesses, and that's correct as well. The reason is that accidents can happen in all sorts of businesses. Though the chances may differ, still no workplace is safe to work in.

Considering this important fact, it is important for employers to get workers' compensation insurance to stay away from facing any trouble. The biggest benefit of this particular insurance is that it keeps employers from facing any legal action, which is a big relief for sure.

However, when it comes to workers compensation insurance, there are few things that make living difficult for these employers. One of the most important things is an overwhelming increase in premiums. Due to consistent increase, workers' compensation insurance was the most important risk management issue during the 90's. But, the problem is still persisting to make it hard for employers to provide their workers with this particular insurance policy.

Although it is a fact that all states are finding it hard to deal with overwhelming increase in premiums, employers in states like Rhode Island, Maine, Texas, and Massachusetts are more in trouble due to an annual premium increase of 20% or more. This increase in premiums is a premier reason why employers are interested in finding another way to protect them from any legal action.

While it is true that there premiums are going up, it is also true that this increase is according to a set pattern. Moreover, when it comes to workers compensation insurance premiums, companies use different factors to determine the premium. For instance, the most important thing to consider is the base industry. It means all insurance companies take your industry into consideration in relation to the total claim occurred in your industry to determine what you need to pay as premiums. It is due to this particular reason that increase in premiums is not similar in all industries.

In addition to base industry, the amount of wages is also taken into consideration by insurance providers. This makes issuers know what they will be covering in case an accident takes place in a facility. So, they make certain changes in premiums according to the risk factor.

What it implies is that though there is an increase in premiums, it is not equal for all industries, which is due to certain factors. But, it is also true that you can reduce the total cost of workers' compensation insurance by taking certain precautionary measures for a safer workplace. So, take some actions on your own and you will see some reduction in the total cost of workers compensation insurance.

Use Compound Annual Returns, Not Cumulative Returns

2009-09-05T00:23:00.000-07:00

from Bogle on Mutual Funds by John C. Bogle, pages 61-63

Total return is the percentage change - over a specified period of time - in a mutual fund's net asset value, with the ending net asset value adjusted to take into account the reinvestment of all income dividends and any capital gains distributions made by the fund. It is almost always calculated before the deduction of sales charges and taxes payable by the shareholder on the income dividends and capital gains distributions.

Total returns can be presented on a cumulative basis or as an average annual compound rate. I strongly caution you against relying solely on cumulative total returns. While the miracle of compounding indeed takes place as the holding period of your investment lengthens, it is simply impossible for most investors to easily compare cumulative total returns in a sensible way. For example, did a fund with a ten-year cumulative return of +100% earn an average annual compound return of +10%? (Answer: No. The annual return, reflecting the yearly compounding effect, was +7.2%.) Did a fund with a five-year cumulative return of +93% do better or worse than one with a ten-year cumulative return of +271%? (Answer: Their annual compound rates of return were identical, +14%.) Has a fund with a seemingly staggering gain of +1,602% over the 30 years ended December 31, 1992, been singularly successful? (Answer: The annual rate of return was +10%. During the same period, however, the stock market's annual return was +11%, for a total of +2,107%.) Be sure to focus on annual ratesÂ of total return rather than cumulative returns.

It might be useful to consider the difference between compoundÂ rates of return and simpleÂ rates of return. The former figure is derived from linking each year's return through multiplication; the latter figure is derived from adding each year's return. For example, consider a fund with annual returns of +20%, +25%, and -15% over three years. The value of an initial investment of $100 in the fund would be calculated as follows: $100 x 1.20 x 1.25 x 0.85, or $128, equivalent to an average annual compound rate of +8.3%. However, when the returns are simply added, the final value of the investment would be $130, a simple average rate of +10% annually.

To do full justice to the difference between the two methodologies, consider an investment that provides a return of +100% in the first year and -50% in the next, or vice versa. The average return would be +25% (100 - 50 Ã• 2), but the average compound return would be zero. Since the reality is that you would have seen your initial $100 double to $200, only to fall back to $100, it is clear that zero is the appropriate figure. So you should rely on what is called the geometric rate of return - which is annualized on a compound basis and will precisely reflect the total return that you would have actually received - rather than the simple arithmetic rate.

To be sure, the use of average annual compound rates of return tends to reduce sharply the apparent gaps among good performers, mediocre performers, and bad performers. But seemingly small differences in annual rates of return can result in enormous differences in total return over long periods of time. For example, a +12% rate of return from a good performer produces a +211% cumulative return over ten years. For a mediocre performer, an +11% rate produces a +184% total return. And for a poor performer, a +10% rate produces a +159% total return. Even as you use annual rates of return as your standard of choice, then, do not ignore the magic of compounding.

Impaired Life Annuities

2009-09-05T00:19:00.000-07:00

With annuity rates near an all time low, it has never been more important to shop around for the best annuity rate.
For those with unhealthy lifestyles or life reducing medical conditions, the good news is that smoking, being overweight or having a serious illness can actually improve your wealth.

Bad Health is good for Your Wealth?

This is because life insurance companies reckon that if you smoke or are unhealthy, you're going to die earlier than someone who is healthy. So they're happy to pay you more each year in the form of an "enhanced annuity" because they won't have to pay you for as long as someone with a normal life expectancy.
An annuity is simply an income for life, paid to you by an insurance company in return for your pension fund. The income can be paid monthly, quarterly, six monthly or annually.

All annuity rates are calculated according to your sex and age at retirement. But enhanced annuities can take other factors into account such as reduced life expectancy, lifestyle, where you live and your occupation.
There are three types of enhanced annuities:

• "lifestyle annuities" which depend on your lifestyle - such as whether you smoke, are overweight, have diabetes or high blood pressure;

• "select annuities" which pay you more than the standard annuity rate if have lived in the north of the England (roughly north of the Bristol/Wash line) and worked in a manual occupation all your life. You have to meet both these criteria in order to be eligible.

• "impaired life annuities" which depend on you having a life-reducing medical condition such inoperable cancer, advanced Parkinson's disease, cirrhosis of the liver, severe stroke or heart failure.

The big difference between the first two and the third is that to buy a lifestyle annuity you simply complete a health/lifestyle questionnaire, whereas impaired life annuities require a medical report from your doctor.

To take advantage of these better rates, you will need to obtain the value of your pension fund from your existing provider and ask an annuity specialist to quote you the best rates on the market for your condition or lifestyle.

Open market options

Seeking out the most competitive rate on the market in this way is called taking the "open market option."

Few people realise that at retirement you don't have to accept the annuity rate offered by the insurance company your pension was invested with during your working life.

In fact, only one in 10 people bothers to take the open market option - either through ignorance or inertia - even though you will almost always get a better annuity rate by shopping around.

For instance, a 60 year male smoker with a £100,000 to invest could get an annual income of £8,352 from a smoker's annuity whereas a standard annuity would pay only £7,728 - about 7.5% less.

Similarly, for a 65 year old man investing £50,000 and who is suffering from advanced Parkinson's disease, the Pensions Annuity Friendly Society (PAFS) quotes an annual income of £11,195 whereas a standard annuity would pay around £5,000 pa.

"The actual increase you receive over the standard rate will depend on an up-to-date medical report on your condition, but it could be up to 30% more, depending on the severity of your medical condition," says Alan Smith of Capital Asset Management .(www.camfinancial.co.uk)

SEE ALSO

What is an annuity

2009-09-05T00:17:00.000-07:00

An annuity is a type of insurance policy that provides a regular income in exchange for a lump sum.
When you reach retirement you have to convert the capital built up in your personal pension policy or with additional voluntary contributions (AVCs) into a regular pension. You can take up to 25% of your pension pot as a tax-free lump sum, but the rest must eventually be converted into an annuity.

In one sense, they work as life insurance in reverse. The insurance company that sells you the annuity estimates how long you will live and then uses this as a basis for the amount it will pay you.
Everyone who has a pension and has built up a lump sum with their provider must buy an annuity by the time they reach 75.
The exceptions are those who are part of a workplace final salary scheme, but, as these are becoming less common, most people are currently faced with the annuity option.

Over the past few years, annuity rates have fallen sharply and a 65-year-old man now earns a typical return of just 8% from his pension fund. Therefore, with a pension fund worth £100,000 he would receive an annual income of £8,000.
You do not have to take the annuity offered by your existing pension company. Annuity rates vary between companies so you need to check which one will give you the best deal.

Switching could boost your pension by hundreds of pounds a year or enable you to invest in a different type of annuity that better meets your needs.

SEE ALSO

What is a Bond

2009-09-05T00:15:00.000-07:00

TECHNICALLY SPEAKING, a bond is a loan and you are the lender. Who's the borrower? Usually, it's either the U.S. government, a state, a local municipality or a big company like General Motors. All of these entities need money to operate -- to fund the federal deficit, for instance, or to build roads and finance factories -- so they borrow capital from the public by issuing bonds.

Now for a little bond-speak. When a bond is issued, the price you pay is known as its "face value." Once you buy it, the issuer promises to pay you back on a particular day -- the "maturity date" -- at a predetermined rate of interest -- the "coupon." Say, for instance, you buy a bond with a $1,000 face value, a 5% coupon and a 10-year maturity. You would collect interest payments totaling $50 in each of those 10 years. When the decade was up, you'd get back your $1,000 and walk away.
A key difference between stocks and bonds is that stocks make no promises about dividends or returns. General Electric's dividend may be as regular as a heartbeat, but the company is under no obligation to pay it. And while GE stock spends most of its time moving upward, it has been known to spend months -- even years -- going the other way.

When GE issues a bond, however, the company guarantees to pay back your principal (the face value) plus interest. If you buy the bond and hold it to maturity, you know exactly how much you're going to get back (in most cases, anyway. We'll discuss some exceptions later). That's why bonds are also known as "fixed-income" investments -- they assure you a steady payout or yearly income. And although they can carry plenty of risk (we'll discuss why in our How Bonds Behave lecture), this regular income is what makes them inherently less volatile than stocks.

Vision Prepaid Card - reloadable pre-paid card

2009-09-05T00:01:00.000-07:00

Unlike the debit card, the Vision Prepaid Card is a re-loadable multi-purpose, non-deposit card that can easily be acquired without opening an account with the bank. This card can best be used as travel money when going abroad or used by parents as a tool in giving allowance for their children. It can also be ideal for companies’ disbursement such as payroll, commissions and even loan proceeds.

For the cardholder, the vision prepaid card provides an alternative payment method to cash. It is the ultimate medium for cashless convenience because the cardholders can purchase goods and services across all merchant environments without the need to wait in long lines in the ATM and lessens the risk of carrying huge amount of cash upon withdrawing.

It also provides access in over 29 million Visa-accepting merchants throughout the world.

This also translates to greater control of funds, as the cardholders can only spend what is available in their account, where more and more are falling in the traps of big debts due to credit card bills.

The vision prepaid card offers consumers a wider range of purchase transactions from typical retail transactions to Internet transactions where cardholders can enjoy the privileges and convenience of shopping and dining without having to worry about monthly bills.

There is no difference between the vision prepaid card and a credit card in terms of payment acceptance; only that the vision prepaid card offers a simpler method of financial management. It’s good as cash only better!

SEE ALSO

About Prepaid Visa Card

2009-09-04T23:58:00.000-07:00

The Perfect Prepaid Card for Every Occasion!

The Prepaid Visa Card is a quick purchase for you, and ideal for anyone on your gift list. It's welcomed worldwide at more than 19 million merchants that accept Visa debit cards, and can be used to make purchases online, by phone or in person. Prepaid Visa Cards come in a variety of designs that are perfect for any occasion. There's even an everyday card that's secure for travel and convenient for smart budgeting.

How does it work? A Prepaid Visa Card looks like a credit card. The front of the card displays the name of the purchaser or gift recipient, the Visa Brand logo, an individual account number and an expiration date. The back includes a magnetic strip. Unlike a credit card, however, the Prepaid Visa Card may only be used for the amount loaded on the card.

Purchasers or gift recipients can use the card as many times as they like for a full year, up to the amount stored on the card. As the card is used, the amount of each purchase is automatically deducted from the card's available balance. If the card is lost or stolen with a balance remaining, the user can cancel the card and order a replacement for a nominal fee.

SEE ALSO

Prepaid Credit Card Solutions

2009-09-04T23:55:00.000-07:00

Pre-paid card processor TxVia raises $15.5m

TxVia, a pioneer in prepaid card processing technology, today announced it has raised $15.5 million in Series C financing, led by new investor, Bain Capital Ventures.

Also participating were all current institutional investors, including Espírito Santo Ventures, High Peaks Venture Partners and Village Ventures. New York City Investment Fund joined as a new co-investor.

The funding follows important milestones for TxVia, including successful large-scale client deployments of the company's groundbreaking platform-as-a-service (PaaS) delivery model for prepaid card processing. Today, TxVia has more than five million reloadable and nonreloadable cards on file in both B2B and B2C prepaid applications.

"We conducted extensive diligence on the prepaid card industry and concluded that TxVia is the best-in-class processor," said Paul Zurlo, a partner with Bain Capital Ventures who was elected to the TxVia board of directors. "Issuers and program managers with complex requirements and sizeable portfolios have selected TxVia for complete deployment of their prepaid card portfolios, achieving new levels of reliability and configurability."

"TxVia strengthens New York City's position as the global center of financial services technology," said Maria Gotsch, president and CEO of New York City Investment Fund. "We are pleased to have the opportunity to invest in the company."

TxVia has pioneered technology to help its clients create those prepaid card products that are the best payment options for end-user organizations and individuals. With much of the financial services community moving back to basics, TxVia has been at the forefront of bringing fundamentals to payments processing-such as transparency, simplicity and accountability-and thereby expanding the bounds of stability and flexibility. By redefining the prepaid card value chain client by client, TxVia offers attainable economic benefits and superior opportunity to capitalize on the prepaid market potential.

"We're pleased to welcome Bain Capital Ventures and New York City Investment Fund as well respected investors and valued partners as we continue to enable the prepaid card industry and set new standards of excellence in processing," said Anil D. Aggarwal, chairman and CEO of TxVia.

via finextra.com and prepaid card blog

With a prepaid Visa card, an individual needs to deposit the amount ones wants to have available for purchases at the time the card is issued. Through the pre-paid Visa card, you can make payments for purchases at all places where the prepaid Visa Debit card is accepted. An individual does not require sound credit history or a bank account to buy a prepaid Visa card.

Loans For Unemployed People - Additional Money Without Any Source of Income

2009-08-10T02:40:00.000-07:00

By Nicholas Taweel

Unemployment stage can ruin your life in the economical as well as social segment. Rising necessities and no source of income will let your fall in financial crisis. To overcome this stage, you can avail loans for the unemployed people without any hesitation and restriction. This loan is designed for the jobless people who are currently laid off from their job or seeking a satisfactory job for themselves.

The credit record of a borrower is considered as bad when they include some discrepancies relating to their repayments, county court judgments, arrears and defaults. Don't bother at all as bad creditors are also welcome to avail additional cash help from loans for unemployed people.

You can avail this loan in both secured and unsecured form as per your requirement and ability. The very first step that will enable you to enjoy lower rate of interest is to go for the secured option. Against the secured option you can pledge car, home or any other residential property. Due to assurance of repayment, you can get a lower rate of interest from the lenders. The unsecured form of this loan is ideal for the borrowers who are unable to pledge any collateral against the loan amount. With unsecured form, you can avail about £1000 to £25000 with repayment term of 1 to 10 years.

Applying unsecured loans for unemployed people will avail you quicker funds without any difficulty in executing your demands. Online medium will help you access this loan in really rapid manner without any faxing and paperwork. It is a hassle less deal that does not demand hectic and lengthy documentation work. You can swiftly avail this service without any lengthy and hassled formality.

You can use the loan amount for varied number of purposes that can be as follows:

-House renovation,
-Consolidation of your debts,
-Paying home loan installments,
-For holiday trip, etc.

You can regain the stability in your life by applying with loans for the unemployed people without leaving the comfort of your home or office.

About the Author
Nicholas Taweel has no formal degree in finance, but years of work that he has put in the finance industry makes him expert in financial matters. To find unemployed loans, unsecured loans for unemployed, unsecured loans, loans for unemployed people, loans for unemployed, unemployed loans and unsecured loans visit http://www.loanforunemployedpeople.co.uk

Unsecured Loans For Unemployed With No Income Proof - Get Cash Without Any Income Support

2009-08-10T02:37:00.000-07:00

By Brooke Hokin

Are you unemployed and find your self in need of cash? Then why are you wandering here and there to get monetary aid instead of going over internet to obtain the loan through Unsecured Loans for Unemployed with No Income Proof. You will be glad to know that you can obtain cash via these loans despite having bad credit score such as amount outstanding, arrears, defaults, bankruptcy, late payments, CCJs, IVA and so on thus it may prove a boon for a bad credit history holder.

By obtaining the loan you can meet your any type of cash requirement whether it requires large amount of cash or needs a small amount as these loans are available in two forms; secured and unsecured. If you have desire to get cash in a large amount, you can apply for secured loan but, for that you will have to place your property or asset as collateral then you can get the cash in the range of $25000 to $75000 with lower rate of interest for a repayment term of 10 to 25 years. On the other hand if you are a tenant or you don't want to place your asset as security, you can take unsecured loans by which you can get the loan amount in the range of $500 to $25000 but with comparatively high rate of interest. The repayment tenure of unsecured loans may vary from 6 months to 10 years.

To obtain the loan you must be at least over 18 of the age, you must have an active checking bank account minimum four months old and you must be USA citizen. If you fulfill the criteria you can apply for Unsecured Loans for Unemployed with No Income Proof. The applying process is very easy, it goes online so it takes very less time. You just need to complete the form with all required information then after that you are do nothing. Your loan amount will be transferred into your bank account on the same day of applying. Your role does not finish here; you have to pay it off on its due date.

Brooke Hokin is a successful contributor to finance allied websites such as Unsecured Loans For Unemployed Loans, which bestows information and advice about Unsecured Loans For Unemployed Loans and ameliorating credit scores urgently. Unsecured Loans for Unemployed with No Income Proof, visit http://www.unsecuredloans4unemployed.co.

How to Establish, Use, and Protect Your Credit What You Need to Know

2009-08-03T23:04:00.000-07:00

Good credit is valuable. Having the ability to borrow funds allows us to buy things we would otherwise have to save for years to afford: homes, cars, a college education. Credit is an important financial tool, but it can also be dangerous, leading people into debt far beyond their ability to repay. That is why learning how to use credit wisely is one of the most valuable financial skills anyone can learn.

What Lenders Look For

Before creditors lend money, they need to be assured that the funds will be repaid. In other words, is the prospective borrower creditworthy? To find out, they ask for various types of information:*

Income & Expenses

Lenders will look at what you earn and your regular expenses, such as rent, utilities, food, and other ongoing items. The amount left tells them whether you can afford to take on additional debt.

Assets

Do you have assets that can serve as collateral? Lenders will look for things like bank accounts, insurance, and valuable items such as a house, if you own one.

Credit History

How do you manage debt? If you have credit cards or have borrowed money before, you have a history that shows prospective lenders whether you are creditworthy by revealing details about the amount of debt you already have, how many credit cards you have, and whether you make payments on time.

It's easy to qualify for credit if you have a good credit history, but what if you have never used credit before? This is a common problem for people who just started working, those who work in the home, people who always pay in cash, and those who do not have assets or accounts in their own names. For them, the first step is to establish a credit history.

How to Establish Credit

Begin by opening individual savings and checking accounts in your name. Over time, your deposits, withdrawals, and transfers will demonstrate that you can handle money responsibly.

Applying for a loan is another option, but be aware that this method of establishing a credit history will cost, since loans require the payment of interest.

You could take out a bank loan secured by the funds you have on deposit or by items you own, such as a car. You could also ask a friend or relative who has good credit to cosign a loan, which means that he or she shares liability for the loan with you.

You could also apply for department store and gasoline credit cards, which generally are easier to obtain than major credit cards. Before you apply for any credit, however, make sure you understand the terms. For example, how long is the grace period or the time you have to pay the current balance in full before finance charges are added? Is there an annual fee or other fees associated with the credit? If you believe that you will carry a balance, you need to know how finance charges are calculated.

Patience is important in this process. It takes time to establish credit and build a record of consistency in making payments to demonstrate your creditworthiness. And it is much better to go slowly and develop a strong credit record than to apply for too many credit cards or a loan that is larger than you can handle.

Start slowly, be cautious, keep track of your overall debt, and pay on time. Most importantly, remember that credit actually represents real money and has to be repaid with interest.

Protecting Credit

Once you have obtained credit, it is necessary to protect it. This means being careful with your credit, debit, and ATM cards, as well as your account and personal identification numbers (PIN).

Carry only the cards you expect to use, and keep the others in a safe place. Maintain a list of account and telephone numbers of the companies that issued your cards. Then, if the cards are lost or stolen, you can notify the companies quickly. If your notification is received before the cards are used, you have no legal responsibility for the bills; if it is received after the cards are used, your legal responsibility is $50 for each card.

Be cautious about giving anyone your account numbers, especially over the telephone when someone calls you. Save sales receipts to compare with your bill, and when you discard documents with account numbers on them, be certain that the numbers can't be read.

If you disagree with an item on a bill, you are responsible for notifying the creditor in writing within 60 days of receiving the bill. You should include your name, account number, the item you believe is in error, and the reasons why.

Common Reasons for Denying Credit

Among the most common reasons people are turned down when they apply for credit are:

* �Too little time in current job or at current residence.
* Too much outstanding debt.
* Unreasonable purpose for requesting credit.
* Cosigner cannot take on additional debt liability.
* Errors on applicant's credit report.**
* Strict creditor's standards.

In general, creditworthiness must be determined on the basis of criteria that relate to your ability and willingness to repay debt. You cannot be denied credit based on your sex, marital status, race, religion, national origin, age, or dependence on income from public assistance.

If you are denied credit, the creditor must provide you with a written statement of the action and your rights, as well as the reason for denial or how to request the reason. For information on the laws applying to credit, see "Your Credit Rights," a Federal Reserve Bank of San Francisco brochure.

Improving Poor Credit

If you have fallen behind in your payments, begin immediately to repair your credit record. Here's how:

* Face up to the problem. Recognize that you are overextended, and contact your creditors to see if they will set up a new payment schedule that you can maintain. In any case, don't ignore your bills.
* Immediately stop purchasing with credit. Take your credit cards out of your wallet. Store them in a spot that is hard to reach, or even cut them up.
* Consider consolidating debts. You may find it easier to make a single payment rather than several. You might also get a lower interest rate that will make it easier to keep up with payments. Remember that debt consolidation is not a cure-all. You have to learn to control your spending to avoid future debt.
* Contact a credit counseling organization. You can obtain referrals for organizations in your area through the National Foundation for Consumer Credit, (800) 388-2227.
* Don't expect miracles. Don't believe companies that promise to fix a poor credit rating quickly and painlessly for a fee. As long as it is accurate and timely, negative information cannot be removed from your credit record. The only way to improve a credit record is to let time pass and establish a record of on-time payment.

Divorce and Credit

Aside from its non-financial effects, divorce can cause problems with your credit record. The end of a marriage does not erase the debts you and your former spouse took on as a couple. Even if your former spouse is ordered by the court to pay debts from the marriage, you can become liable if they are not paid. Here are a few suggestions to protect your financial standing:

* Decide how to divide or dispose of property. If necessary, you can use a mediator to work through this with your former spouse.
* Close or separate joint accounts. Decide with your former spouse who will be responsible for paying bills, and notify your creditors of your divorce.
* Establish independent credit, if you do not already have it.
* Make sure bills are paid.

Paying Off a Loan Early

If you are applying for a loan and think you may want to pay it off before it has run its full term, you should be aware that lenders have several methods of calculating interest. The method they use affects the amount you will owe if you decide to pay off early. Since lenders are not required to disclose which method they use, you may have to ask. Here is a brief description of the most common interest-calculation methods.

Rule of 78

This method uses tables based on a mathematical formula to determine how much interest you have paid at any point during a loan. It requires that you pay more interest at the beginning of a loan when you have the use of more of the money and that you pay less interest as the debt is reduced. Since all of your payments are the same in amount, the amount of your payment that is going toward the principal increases while the amount going toward interest decreases. State law may mandate the use of the Rule of 78.

Generally, the longer the term of a loan and the higher the interest rate, the less favorable the Rule of 78 is to borrowers who wish to pay off early. However, for loans of less than five years and with interest lower than 15 percent, the payoff calculated by the Rule of 78 is similar to that calculated with the actuarial method, described below.

Actuarial Method

This method is most often used for mortgages and other loans in which a periodic rate is applied to a declining balance. It does not take into consideration whether a payment is made before or after the due date. Late payments are subject to a flat penalty, but interest does not continue to accrue.

Daily Simple Interest

In this method, a daily periodic rate is applied to an outstanding balance. Therefore, borrowers benefit by reducing the outstanding balance through early payments or lump-sum payments, both of which reduce the balance and the interest due. Under a simple interest system, late payers will end up owing more.

For More Information

The Federal Reserve Bank of San Francisco has several other consumer brochures. These brochures are posted on our web site at: http://www.frbsf.org/consumer/index.html.

Private Mortgage Insurance (PMI)

2009-08-03T22:52:00.000-07:00

If you are a homeowner, you will want to be aware of a new law that establishes rights for homeowners and rules for lenders regarding private mortgage insurance (PMI) cancellation. With this knowledge, you may eliminate premiums you may be paying unnecessarily.

What Is PMI?

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

Benefits of PMI

PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.

New PMI Requirements

A new federal law, The Homeowner's Protection Act (HPA) of 1998, requires lenders or servicers to provide certain disclosures concerning PMI for loans secured by the consumer's primary residence obtained on or after July 29, 1999. The HPA also contains disclosure provisions for mortgage loans that closed before July 29, 1999. In addition, the HPA includes provisions for borrower-requested cancellation and automatic termination of PMI.

Why a Change in PMI Requirements?

In the past, most lenders honored consumers' requests to drop PMI coverage if their loan balance was paid down to 80 percent of the property value and they had a good payment history. However, consumers were responsible for requesting cancellation and many consumers were not aware of this possibility. Consumers had to keep track of their loan balance to know if they had enough equity and they had to request that the lender discontinue requiring PMI coverage. In many cases, people failed to make this request even after they became eligible, and they paid unnecessary premiums ranging from $250 to $1,200 per year for several years. With the new law, both consumers and lenders share responsibility for how long PMI coverage is required.

The Homeowner's Protection Act (HPA) of 1998

What Loans Are Covered?

Generally, the HPA applies to residential mortgage transactions obtained on or after July 29, 1999, but it also has requirements for loans obtained before that date. This new law does not cover VA and FHA government-guaranteed loans. In addition, the new law has different requirements for loans classified as "high-risk." Although the HPA does not provide the standards for what constitutes a "high risk" loan, it permits Fannie Mae and Freddie Mac to issue guidance for mortgages that conform to secondary market loan limits. Fannie Mae and Freddie Mac are corporations chartered by Congress to create a continuous flow of funds to mortgage lenders in support of homeownership. As of January 1, 2000, mortgages in amounts of $252,700 or less are considered conforming loans. For non-conforming mortgages, the lender may designate mortgage loans as "high risk."

What Is a Residential Mortgage Transaction?

There are four requirements for a transaction to be considered a residential mortgage transaction: (1) a mortgage or deed of trust must be created or retained; (2) the property securing the loan must be a single-family dwelling; (3) the single-family dwelling must be the primary residence of the borrower; and (4) the purpose of the transaction must be to finance the acquisition, initial construction, or refinancing of that dwelling.

How Do You Cancel or Terminate PMI?

Cancellation

Under HPA, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.

Automatic Termination

Under HPA, mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan. If the loan is delinquent on the date of automatic termination, the lender must terminate the coverage as soon thereafter as the loan becomes current. Lenders must terminate the coverage within 30 days of cancellation or the automatic termination date, and are not permitted to require PMI premiums after this date. Any unearned premiums must be returned to you within 45 days of the cancellation or termination date.

For high risk loans, mortgage lenders or servicers are required to automatically cancel PMI coverage once the mortgage is paid down to 77 percent of the original value of the property, provided you are current on your loan.

Final Termination

Under HPA, if PMI has not been canceled or otherwise terminated, coverage must be removed when the loan reaches the midpoint of the amortization period. On a 30-year loan with 360 monthly payments, for example, the chronological midpoint would occur after 180 payments. This provision also requires that the borrower must be current on the payments required by the terms of the mortgage. Final termination must occur within 30 days of this date.

What Disclosures Does the HPA Require?

For Loans Obtained on or after July 29, 1999

The HPA establishes three different times when a lender or servicer must notify a consumer of his or her rights. Those times are at loan closing, annually, and upon cancellation or termination of PMI.

The content of these disclosures varies depending on whether: (1) PMI is "borrower-paid PMI" or "lender-paid PMI," (2) the loan is classified as a "fixed rate mortgage" or "adjustable rate mortgage," or (3) the loan is designated as "high risk" or not.

At loan closing, lenders are required to disclose all of the following to borrowers:

* The right to request cancellation of PMI and the date on which this request may be made.
* The requirement that PMI be automatically terminated and the date on which this will occur.
* Any exemptions to the right to cancellation or automatic termination.
* A written initial amortization schedule (fixed-rate loans only).

Annually, your mortgage loan servicer must send borrowers a written statement that discloses:

* The right to cancel or terminate PMI.
* An address and telephone number to contact the loan servicer to determine when PMI may be canceled.

When the PMI coverage is canceled or terminated, a notification must be sent to the consumer stating that:

* PMI has been terminated, and the borrower no longer has PMI coverage.
* No further PMI premiums are due.

The obligation for providing notice of cancellation or termination is with the servicer of the mortgage.

For Loans Obtained before July 29, 1999

An annual statement must be sent to consumers whose mortgages were obtained before July 29, 1999. This statement should explain that under certain circumstances PMI may be canceled (such as with consent of the mortgagee). It should also provide an address and telephone number to contact the loan servicer to determine whether PMI may be canceled.

The HPA's cancellation and automatic termination rules do not apply to loans made before July 29, 1999.

Although parts of the new law apply only to loans obtained on or after July 29, 1999, many lenders report that they plan to follow the HPA's requirements for both new and existing loans. Making a call to your mortgage loan servicer will help you understand exactly how the law applies to you and your mortgage.

What If Your Home Value Has Increased?

When making mortgage payments, most of the payments during the first few years are finance charges. Therefore, it can take 10 to 15 years to pay down a loan to reach 80 percent of the loan value. If the home prices in your area are rising quickly, your property value may increase so that you can reach the 80 percent mark a lot faster. Your property value could also increase due to home improvements that you make to your home.

If you think your home value has increased, you may be able to cancel PMI on your mortgage. Although the new law does not require a mortgage servicer to consider the current property value, you should contact them to see if they are willing to do so. Also, be sure to ask what documentation may be required to demonstrate the higher property value.

For More Information

The Federal Reserve Bank of San Francisco has several other consumer brochures. These brochures are posted on our web site at: http://www.frbsf.org/publications/consumer.

Deposits vs. Investments

2009-08-03T22:46:00.000-07:00

Any money you have in savings and checking accounts or in certificates of deposit (CDs) is known as a deposit. Your financial institution is committed to returning all of your deposits (plus interest) whenever you ask. You can even take money out of a CD before it matures, however, you will have to pay a penalty for early withdrawal.

Your institution is also required to carry government insurance on your deposits up to $100,000. The insurer is usually the Federal Deposit Insurance Corporation (FDIC). Contact your financial institution if you have specific questions about your insured deposits.

Financial institutions can also provide investment products like mutual funds and annuities to their customers. Your bank or credit union may sell you this type of product, but it is not obligated to pay you back for any losses you may have if the investment is not successful.

Equally important, the U.S. government does not insure you against investment losses, even if you purchased the product at a bank or credit union.

Investing in a Mutual Fund

When you invest in a mutual fund, your money is put together with the money of other investors and is used to purchase a variety of securities such as stocks, bonds, and other financial instruments.

Mutual funds are run by investment professionals who decide which investments to buy or sell for the fund. Their decisions are guided by the fund's investment goals.

For example, some mutual funds are designed for people who want to have easy access to their money and invest only for a short time. These funds invest primarily in government securities or very short-term bank CDs, where the investment risks are moderate.

Other mutual funds appeal to people who are willing to take on more risk with the goal of a higher return. Such funds invest primarily in corporate or municipal bonds.

Most mutual funds, however, are more diverse, offering a mix of investments. A typical fund portfolio includes between 30 and 300 different stocks, bonds, and other instruments.

Investing in an Annuity

When you buy an annuity, the bank or insurance company invests your money and agrees to pay you back according to the annuity's contract terms. The annuity can be part of a long-term savings plan for retirement. Like mutual funds, they are not insured by the U.S. government or by the bank where you buy them.

Some annuities help you set aside money on a tax-deferred basis. You don't pay taxes on the income earned by this money until you retire. Other annuities allow you to receive income immediately. However, the amount of income you will receive can go up or down with changes in financial markets and the income won't be tax deferred.

With annuities, the annuity contract spells out the terms of your agreement. It will tell you whether or not you can transfer your contract to another company. Also, surrender charges or penalties apply when funds are withdrawn before a designated period of time has passed. Surrender charges can apply from five to ten years or more. You may want to consider meeting with a qualified tax advisor or financial planner to learn more about annuities.

Buying through Your Institution

Not all banks and credit unions sell investment products, but many do. Some simply rent lobby space to outside companies. Other institutions sell what are called proprietary funds, which are sponsored by an outside company but receive investment advice from the institution itself. Private label funds, meanwhile, are sponsored and managed through an outside company but are only sold through one bank or credit union.

Some mutual funds and annuities have names that sound very much like names of financial institutions. But no mutual funds or annuities are insured by either your institution or the U.S. government. As an investor, you should be aware that these funds have different degrees of risk and could possibly lead to a loss of some or all of your principal.

For More Information

The Federal Reserve Bank of San Francisco has several other consumer brochures. These brochures are posted on our web site at: http://www.frbsf.org/publications/consumer.

Consolidate My Student Loans - Why Consolidate My Student Loans

2009-08-03T22:25:00.000-07:00

A lot of student with debts after graduating ask the same question: Why should I consolidate my student loans? There are a number of answers to this question, but let's start by defining student loans and the concept of loan consolidation. Student loans are an important source of financial aid for students who need assistance paying for their college education.

Having a mortgage payment of debt after graduating college is a great burden to any person especially if they are not working.
Student loans debt consists of multiple loans from a multiple lenders. Its a huge hassle in life to be making multiple payments to different lenders just to pay for your education. This is a very confusing process and can be very expensive in the long run. So the solution to this hassle is loan consolidation.

When you consolidate your student loans, one payment each month is required for the term of the debt. A payment plan is established between one consolidation agency for the life of the debt.

When the process for loan consolidation begins, the balances of your original existing loans are paid in complete by the consolidation agency. Your debt is now owned by the agency and payments can be made to them that usually carry a lower interest rate and are more manageable to pay off.

Loan consolidation offers many benefits. You can lock in a fixed interest rate for the term of your loan. These rates are usually lower than what you would have been paying, and this can save you a lot of money over time. You could maybe even save thousands when all is said and done.

Other reasons why else to consolidate my student loans, are the lower monthly payments. Repayment plans can be made with consolidation agencies to fit your lifestyle. Be sure to watch for interest rates that tend to build up over time.

However you decide to save when I consolidate my student loans depends on fixed interest rate. It is best to do your research for a great rate that fits your budget and lifestyle. Consolidating student loans usually saves on your monthly payments to 50% less. This however is extending the term of your loan and fees over time.

Always paying a little extra each month will reduce your debt early. No penalties will occur if you decide to do so. If you decide to pay more on your loans each month then expect to have fewer burdens in the long run. More on this subject can be found on the internet, so be sure to check around for helpful decision making progress.

About the Author:
Before you decide to make multiple payments on your student loans, Please read Norman's advice on Student Loans Consolidated, and Student Loan Consolidation

How To Get Your Student Loans Forgiven

2009-08-03T22:23:00.000-07:00

Most typical college expenses are known to cause students to be in need of extra funds and thus make them apply for what often amount to literally thousands of dollars in student loans. Some college students have incurred so much debt during their college studies that they are nearly bankrupt when they finally graduate and enter the workforce. If you, like many other college students, are feeling completely overwhelmed by immense amounts of debt and see no real way out regardless of what you try to do about it, then filing for bankruptcy may indeed be the right choice based off of your financial situation.

Yes, filling for bankruptcy a few months after graduating from college looks bad but it may be your only way out of the mountain of student loans that you have accumulated during your college days.

Bankruptcy Filing

The actual process of filing for bankruptcy can get confusing. Remember that you have to do more than fill out some papers. You will be required to appear in court before a judge whose responsibility it is to decide if you really qualify for bankruptcy or not.

The meeting with a judge can be confusing, so doing some research into the entire process is very important for anyone considering filing for bankruptcy, even more so if you will not be able to pay for the assistance of a legal professional. Filing for bankruptcy will permit the authorities to divest you of assets you own in order to reconcile your current student loan debt.

Some of your personal property cannot be seized. Be sure to notice which properties fall into this category when you do your bankruptcy research. All of the laws associated should be read thoroughly and completely. If you do not quite understand something, get someone who does to assist you since this is a very serious matter.

Remember that paying for a bankruptcy lawyer would be best if you are feeling overwhelmed with all the details of your bankruptcy. They can advise you on what you should do to deal with your student loan debt.

The good thing about hiring a bankruptcy lawyer is that this person knows how to get most if not all of your student loans forgiven. Most of these bankruptcy lawyers understand your financial difficulties so they will not really charge you so much.

About the Author:
Are you tired of buying financial guides that promise the world but just don't deliver on those promises? We offer unbiased reviews of many resources in the debt & credit markets. Visit http://www.financeproductevaluations.com to take a look at our latest reviews, such as our current top pick The Attorney's Guide To Credit Repair.

Learn What Private Mortgage Insurance Is

2009-07-28T00:32:00.000-07:00

By Frank Rodriguez

If you're looking at buying a home, you may have heard the mysterious acronym PMI being thrown around, never realizing what it stood for. It stands for private mortgage insurance, which is quickly becoming a favorite option among many people who might struggle making a down payment.

A down payment is usually around twenty percent, but not everyone will have this much to spend up front. In that case, PMI can be used in place of the full funds. This is regardless of apllying for a fixed or adjustable rate mortgage. It might even manage to stand in completely for the payment, for people not to have to spend anything at all. Needless to say, it might well stick around.

Part of the reason for this is that with the current state of the economy, there are more and more people wanting a house, but not knowing where they're going to get the money. If you're looking at a $200,000 home but aren't in a great position financially, you might have a hard time buying it.

Yet when you take advantage of private mortgage insurance, it could be very little time before all of this is taken care of. You will have to make monthly payments, at the same time as your mortgage payments, but these will be easier to take on. You'll put in the funds in escrow until everything is taken care of or you can cancel.

Even with its rising popularity, this is not an option many people are aware of, and so they might not take it even when they need it. To some extent, it is only the recent situation that has brought it to light in the first place. All the same, it might be the best option for you.

You've probably heard that you don't want too many other people getting involved in your finances, and this is true to some extent. But under special circumstances, you need to take whatever actions will work for you, and this can end up doing a lot of good so you can have your new home.

To find more detail as it relates to private mortgage insurance and whether you'll need it you can find more adjustable rate mortgage information at the aforementioned site.

Mortgage Unemployment Insurance 101

2009-07-28T00:26:00.000-07:00

By Robert McKnight

If you have only recently become aware of mortgage unemployment insurance this article will give an overview of the basics. Mortgage unemployment insurance is one type of mortgage protection insurance and is becoming more and more popular for those who are interested in protecting their home from foreclosure due to loss of employment.

Coverage is Easy to Qualify For

Qualifying for this coverage usually requires a year-round, full-time job and a mortgage. Although, most of these insurance providers will not offer you coverage if you are self-employed.

It is Easy to Find a Policy to Suit Your Needs

As the market for this new type of coverage has grown, more providers have sprung up, making it easy to find this type of insurance. You can usually obtain a policy from your mortgage lender or find another provider.

The internet is a great place to search and compare policies. There are lots of reputable providers and you can easily and conveniently compare rates and polices online.

Mortgage Unemployment Insurance is Easy to Understand

In addition, these policies are pretty straight forward and easy to understand. You pay a fairly low monthly premium and if you lose your job through no fault of your own, the policy will pay you a cash benefit based upon your monthly mortgage for a specified period of time or until you gain employment.

There are, however, different policies offered by different mortgage unemployment insurance companies. The differences generally are the following:

* Amount of cash benefit

* Length of unemployment before benefit begins

* Time period of cash payout

* Waiting period before claims can be filed

These are all items in your policy that will be agreed upon when purchasing mortgage unemployment insurance. They can also be used to compare policies and rates.

Easy to Add Additional Coverage Options to Increase Your Protection

In addition to a simple policy, you can also get further protection by extending your policy to include enhancements. Here are some of the more common extensions of a normal protection policy.

* Addition of spouse to policy

* Disability insurance (loss of job through disability)

* Protection for striking workers

All of these additional protections will add to the cost of your premiums, but they can certainly come in handy in specific situations.

While mortgage unemployment insurance is one of the simpler forms of insurance, it still requires some research on your part. In today's rocky economic climate, which includes escalating unemployment rates, this type of protection is becoming a safer bet and nearly a necessity for those who want to protect their home. Get started finding mortgage protection insurance today!

Ultimate Guide to Cheap Car Insurance

2009-07-06T23:03:00.000-07:00

If you own a car, truck, or other vehicle you are required by law to carry some type of insurance coverage. At a minimum, you are required to carry liability coverage that will cover expenses related to personal injury or property damage. In other words, if you cause an accident and someone is injured or property is damaged, you are responsible for paying for damages.

An insurance policy guarantees payment of a certain amount to cover these expenses should an accident occur. The rates you pay for your car insurance policy are based upon many factors including: age, sex, driving history, credit history, and year, make and model of the vehicle being insured. Other cost factors are determined by the amount of coverage you want.

Comprehensive is the most expensive type of insurance coverage. This type of insurance can offer protection to you, your family, and your car. It covers other things that can happen to your car such as fire, vandalism, or acts of Mother Nature such as hail damage.

Liability is the cheapest car insurance; however, if you do not own your car outright, you cannot purchase liability insurance alone. Lenders require you to have comprehensive insurance covering the vehicle until the note is paid in full.

Liability insurance offers protection to people in other cars when you are at fault for an accident. Typically, liability insurance will cover medical expenses and car repairs, up to a certain dollar amount. In most cases, liability insurance covers you in any vehicle that you drive, whether it belongs to you or someone else.

It used to be that Americans had few choices when it came to car insurance. There were a few major players and they basically had the same rates. Today, there are hundreds of insurance companies eager to obtain your business. The best part is they are offering cheap car insurance rates.

The following tips can help you obtain the cheapest car insurance rates, while making certain you adhere to your state’s minimum insurance requirements.

1. Shop around. Conduct research via the Internet or by phone. Nearly every car insurance agent will provide you with a free quote. It’s a good idea to shop around for competitive rates on your current vehicle. If you’re thinking of buying a new vehicle, obtain quotes for the car you are interested in purchasing. Nothing stings more than to buy a car, only to discover you now have a $400 a month insurance premium. Know your insurance costs before you buy a car, and plan your budget accordingly.

2. Keep a clean record. Both your driving history and credit history are determining factors in the amount of your insurance premium. If you want to have cheap car insurance rates, keep your foot off the gas, obey traffic laws, and pay your bills in a timelfashion.

3. Bundle your insurance. Many car insurance companies offer other types of insurance such as homeowner’s and life. If you buy all your insurance coverage from them, chances are you will receive a significant discount on your premiums.

4. Increase your deductible. One of the biggest mistakes car owners make is to purchase a policy with a low deductible. By increasing your deductible to $1500, you can save up to 20 percent off your monthly premiums. A smart thing to do is to place $1500 in an interest-bearing savings account. The money can draw interest and you will have peace of mind knowing the deductible money is sitting in the bank should you ever need it.

5. Buy online. You can save up to 10 percent or more by purchasing car insurance online. Many insurance companies offer a discount to individuals who set-up automatic payments. This can be done by entering a credit card number or bank account. Each month the agreed upon amount will automatically be deducted from your checking account or charged to your credit card.

6. Buy a more economical car. Insurance rates are partially based on the type of car you drive. If the vehicle has low safety ratings, high theft rates, or high incidence of vandalism, you will pay a higher premium. It’s a good idea to research car ratings prior to purchasing one. Look for cars with high safety ratings and low maintenance costs.
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Loans Tips - Complaints against Personal Loan Practices

2009-07-06T23:01:00.000-07:00

The Federal Trade Commission works hard to protect consumers against many types of fraud, including personal loan practices by dishonest lenders. The Federal Trade Commission is a government regulated agency developed to help protect consumers. Since 1914, the FTC has been working hard to be a safety net for consumers. Congress have given the FTC a great amount of authority to assist consumers.

There are several distinct divisions of the FTC including Advertising Practices, Consumer and Business Education, Enforcement, Financial Practices, Marketing Practices, Planning and Information, Privacy and Identity, Consumer Protection, and Economics. Each division has rules and regulations in place that businesses much abide by to ensure equality for consumers.
The Financial Practices Division focuses on the area of personal loans as well as other types of lending issues.

If you believe you are the victim of unfair personal loan practices by a lender, it is very important that you report it to your local authorities and to the FTC immediately. Not reporting such incidents allows the predator to continue doing so to others just like you. Many people choose not to file a complaint because they don't want to get involved with a government agency or because they are embarrassed. Consumers need to know the FTC is an advocacy and voice for them.

State laws very as to what action will be taken for those lenders who have participated in unfair individualized loan lending practices. However, it is often difficult to apprehend them and take action, especially if the lender is an online predator. They move very quickly and know how to manipulate computer systems so that they can't be effectively tracked down.

The FTC will obtain as much information about the situation from you and conduct an investigation. They will look for patterns with similar reported cases. Often a perpetrator of personal loan lending victimizing has devised a scheme that is repeated over and over again in various areas, especially the internet. It is very quick and easy for such a person to change the name of their company on their website and continue the cycle.

The FTC investigates thousands of individualized loan lending scams apiece year. The average victim loses about $450 to the scheme. The FTC is working hard to educate consumers to help protect themselves from such scams working in the first place. Make sure you are working with a reputable lender who has verifiable history with customers. You can check this information online by looking for consumer reviews and by checking with the Better Business Bureau.

Most individualized loan victims are young people under 30 years of age. They often need the funds quickly and urgently, so they agree to whatever the lender tells them without giving it a second thought. Consumers need to know that it is illegal for a potential lender to charge you processing fees or bad credit fees prior to approving your loan. This is how a lot of victims get roped in. They are told by the lender that the individualized loan is guaranteed, but they first must pay a processing fee of several hundred dollars.

It can be a tremendous help to you for education about the types of personal loan scams out there as well as when you need to file a complaint after falling victim to a personal loan scam.

About the Author:
More information on personal loans ? Finance Infos Free Finance content : Article24.info

Motorcycle Loan Calculator

2009-07-06T22:50:00.000-07:00

What do you know about Motorcycle loan calculator? Well, Motorcycle Loan has become one of the most wanted loans for many people around the world. It is important because this loan can help people who do not have a lot of money but still willing to have a motorcycle. People can apply for Motorcycle loan in many loan lenders.
Since the motorcycle loan is very expensive and high, people should manage their financial for the monthly payment. They should be able to manage their monthly payments of their Motorcycle Loan before feeling sure to apply for Motorcycle Loan.

People have to know the budget they can spend every month for the loan. In order to be able to find out how much they spend for Motorcycle Loan monthly and how much people can afford to pay monthly, they can use motorcycle loan calculator. What are the functions of Motorcycle loan calculator? Motorcycle loan calculator will help people to find out the monthly payment suits with them. Besides being able to know their monthly payment ability after using motorcycle loan calculator, people can also know how long they can afford to pay the monthly payment.

Motorcycle loan calculation isn’t only based on one thing but also many things; such as whether the car is new or used car, the price selling, the tax and many more. To find and use motorcycle loan calculator is easy, we can browse it in the Internet. But, basically when we use motorcycle loan calculator, we are required to enter the amount required by the motorcycle loan calculator such as purchase sales tax, price, fees, net trade-in value cash down payment made, and interest rate. As soon as the whole data is entered, the motorcycle loan calculator will spit out the necessary calculation oh how much monthly payment people are required to pay. For the calculation of motorcycle loan calculator, people can make a decision to buy their favorite motorcycle. So, whenever you want to buy a motorcycle, you shouldn’t forget motorcycle loan calculator.

An Overview of Casualty Coverage

2009-06-30T23:55:00.000-07:00

Casualty insurance is typically combined with property insurance and often referred to as “property and casualty” insurance. However, there is a difference in the type of coverage. This is especially true after the events on September 11, 2001 and the hurricanes in 2004-2005.

Property insurance insures the location of the business while casualty insurance insures the business.

For example, if your business is on the seventh floor of a building and a natural disaster, such as a flood, occurs that wipes out the first floor, but causes no damage to the seventh floor, then any loss would not be covered by your property insurance because there is no direct loss to the location of the business. However, if you have business continuation or business interruption insurance you may have coverage for the indirect loss to your business.

Many of these products are developing in today’s world. Insurers are making it necessary to carry additional casualty insurance to cover certain types of losses. These types of coverage include:

* Terrorism Coverage –

Acts of terrorism or war are not covered by traditional insurance policies – or, so claims the insurers. The attacks on September 11, 2001, resulted in claims exceeding $30 billion. Insurers now specifically exclude terrorism and require the purchase of a terrorism policy.

* Flood Insurance –

Floods are generally not covered by typical property insurance policies and a separate flood insurance policy is necessary to protect against that risk.
* Political Risk or Government Liability –

If you do business overseas or have substantial government contracts, then you may want to look into this type of coverage. It protects against a sudden loss due to a sudden political change in a country or withdrawal of a contract without recourse.
* Other Types –

There are other types of casualty insurance that seem to be developed in response to the latest news: Cyber-Liability, Identity Theft, Cyber-Fraud, Employee Theft, etcetera.

Some of these casualty policies may be critical for the safe operation of your business. More often though, standard casualty coverage offered with a business owners’ policy will be enough casualty coverage and these types of policies are ‘flavors of the month.’

Casualty insurance also includes certain types of bonds or other limited insurance that have been long standing products and may be very necessary to your business.

* Employee Theft and Dishonesty –

This coverage protects your business from loss or damage caused by employee theft. If your employees have access to company funds or handle cash transactions you may want to consider this coverage for the employees.
* Surety Bonds –

This form of casualty coverage referred to as a bond insures someone you will contract with that you will complete the contract. If you are in construction or plan on bidding for government jobs, then you will be required to obtain a surety bond to insure your work.

Casualty insurance is a different type of insurance than property insurance. We will review different forms of casualty insurance and how these can work within your business plan.

Introduction to Property Insurance

2009-06-30T23:50:00.000-07:00

Property insurance insures your business against loss or damage to the location of the business and to its contents. It will also insure against loss or damage to contents under your control. Finally, if your business rents or leases a location or travels to other physical locations, then your business will be required by the property owner to carry property insurance by the terms of the lease or contract.

The more kinds of loss the policy covers, the higher the premium. Property insurance comes in two forms:

* Broad Form – This type of policy identifies a number of different types of disasters and covers against loss from all identified causes in the policy.

* Single or Specific Peril – This type of policy insures against loss only from the identified peril. This is typically a separate fire policy. However, other single perils can be insured against, for example, terrorism.

For most small businesses, a broad form property insurance policy is included in a packaged policy known as the “business owners’ policy” and will be the best coverage for the premium dollar. Some businesses, however, either because of specific risks or unusually high risk, may not be eligible for such a package. In that case, several specific peril policies may need to priced and examined.

Property insurance policies can be modified:

* Endorsements – Endorsements add increased coverage or identify other business locations that are covered. This can include a customer’s location, for example, if your business is working at their location. Endorsements are a big benefit for your business and can be added, typically by a phone call, to a policy relatively easily if you have a good insurance professional.

* Exclusions – Exclusions take away coverage. Your insurance professional or insurer will tell you that property policies are “always” written with the “such-and-such” exclusion. Exclusions are the business insurance purchaser’s worst enemy. The most recent example is after the hurricanes in 2004-2005. Many insurers claimed that the exclusion in their policies for “wind” damage excluded much of the damage from coverage. Regardless of what an insurer tells you: exclusions take away coverage.

* Schedules – Schedules are lists of covered locations and property. These must be updated regularly and at any time a location or major covered equipment changes or is purchased. Good insurance professionals will contact you on a regular basis to discuss updating scheduled locations and equipment. If a location or piece of equipment is not a “scheduled” location or content, there is a possibility that a claim could be denied on that basis.

Property insurance can pay damages or loss based on one of two ways:

* Actual Cash Value (or, ACV) – Actual cash value means that your loss or damage is valued at the value of the property loss. Sounds fair. But, if a $100,000 car lift in your garage has been depreciated over a five-year period it may be found to have an ACV of $20,000 at the time of loss. You can’t purchase a new lift for $20,000.

* Replacement Value – Replacement value means that you are reimbursed the actual amount necessary to replace the equipment when it is lost. In the example above, if the new lift costs $120,000 to replace, then you get a new lift for $120,000.

Replacement value coverage typically carries higher premiums.

All of the above elements must be considered when reviewing and comparing property insurance for your business. A comparison made only on the premiums ignores critical aspects of the policy.

Before You Choose a Business Insurance Professional

2009-06-30T23:44:00.000-07:00

By Gregory Boop

Choosing the right insurance professional is the key to a successful business insurance plan for your business. Before you commit to hiring an insurance professional consider the following points.

Decide Whether You Will Use a Broker or an Agent

Decide whether you will use an agent or a broker.

Generally, the larger your business is the more important it is for you to use a broker instead of an agent. Use a broker if you:

* have a large number of employees
* have a large number of vehicles and drivers change
* are in an industry with exceptional risk
* can't review the business insurance plan regularly

Consider using an agent if you:

* have a small business with few or no employees
* have few or no vehicles
* are in a business where the risks are well known
* will regularly review the business insurance plan.

Interview and Investigate Several Insurance Professionals

Get referrals for insurance professionals from others in your business, or your local chamber of commerce. Arrange meetings and interview each referral personally.

All states have a department of insurance that keeps records of all agents and brokers licensed to do business in your state. These records are typically online and easy to search.

Investigate their background and look for:

* A current, valid agent or broker license.
* Complaints or ethical violations.
* Administrative discipline.

While complaints are not uncommon, administrative or ethics charges are usually a warning to choose another professional.

Demand Accessibility and Excellent Service

When interviewing your potential insurance professional, make it clear that you are securing their service temporarily (one year or less)and you will continue working with them only if they are accessible and provide excellent service.

Demand returned calls within twenty-four hours. Demand to have premium bills and statements arrive on the same day of the month and in good order.

Because there are always other professionals willing to work with you, demand accessibility and excellent service. If you find that service is lacking shortly after payment of the initial premium, then find another professional.
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Insurance Agents vs. Insurance Brokers

2009-06-30T23:40:00.000-07:00

By Gregory Boop

Developing a long term relationship with an insurance professional is a key step in the development of a business insurance plan. Listed below is and explanation of the differences between insurance agents and insurance brokers.

Insurance Agents

Insurance agents are insurance professionals that serve as an intermediary between the insurance company and the insured. As a broad statement of law, an agent’s liability to their customers is administrative. That is, agents are only responsible for the timely and accurate processing of forms, premiums, and paperwork. Agents have no duty to conduct a thorough examination of your business or to make sure you have appropriate coverage. Rather, it is your obligation to make sure you have purchased needed coverage.

Insurance agents can be either:

* Captive – A captive agent is an agent who works for only one company and is a “captive” of that company. A captive agent will sell policies only for that insurer.
* Independent – An independent agent is one who works as an agent for a variety of different insurers. An independent can produce policies from several insurers and offer some comparisons of different insurance policies.

Insurance Brokers

Insurance brokers can be best described as a kind of super-independent agent. Brokers can offer a whole host of insurance products for you to consider. Brokers are required to have a broker’s license which typically means the broker will have more education or experience than an agent.

Brokers also have a higher duty, in most states, to their clients. Brokers have the duty to analyze a business and secure correct and adequate coverage for the business. This is a higher duty than the pure administrative duty of the agent. However, this expertise comes at a price. Brokers typically charge an administrative fee or premium payments are higher when purchased through a broker.

Agent and Broker Accreditation

2009-06-30T23:33:00.000-07:00

By Gregory Boop

Insurance professionals with the appropriate level of experience and education can be accredited by certain trade and insurance organizations. When shopping for an insurance professional to work with, ask what accreditations the agent or brokers in the office possess.

Accreditation can also come from the insurers the agent or broker produces for. This type of accreditation can be important if it directly pertains to the business insurance client. However, often such accreditation is more sales driven than actually helpful to the business client.

The most useful type of accreditation for an insurance professional working with a business client is the Chartered Property Casualty Underwriter Professional (CPCU) designation. The CPCU accreditation follows two paths: commercial or individual. You will want to make sure your insurance professional followed the commercial course work because a CPCU designation will not get you a more valuable professional if that professional focused on individual insurance. Insurance professionals with this designation often belong to the CPCU Society and this provides your insurance professional with up-to-date information and a network of other professionals to contact. Ultimately, your business benefits.

The CPCU designation requires the professional to take a series of courses, have a high level of experience and requires the professional to take an exam to earn the designation. Also, the professional must agree to adhere to a set of ethical rules that are more strict than most state requirements. Since property and casualty insurance can be the most important coverage you have - insist on a qualified professional to work with you.

Used Car Loans

2009-06-30T23:28:00.000-07:00

by: Matthew Bourne

Want to buy a used car but just don't have the funds sat in your bank account? If so, why not consider taking out one of the many used car loans available on the loans market.

Used car loans are specifically designed by loans companies to provide used car buyers with a competitive finance arrangement through which to purchase a used car. Flexible loans terms are available from used car loans companies, as well as low APR deals suitable for used car purchases. Used car loans of up to £20,000 can be arranged on an unsecured basis, with loans companies offering higher loans amounts if security is supplied.

Advance plan your used car loans

When buying a used car it pays to do some advance planning and arrange your used car loan ahead of the search for a used car. There are many loans companies out there offering loans for used car purchases, so it makes sense to shop around to get the best loans deals for buying a used car. Look for car loans that are flexible to your needs and offer a low APR, so your monthly used car repayments on any loans taken out won't be sky-high.

As with all types of loans, you should first determine how much you can afford to borrow on loans to buy a used car. Loans calculators are available on the Internet and can be used to calculate loan and repayment amounts in accordance with different APRs. It is important to take into account other financial commitments too, including other loans, when calculating the loans amount that you can comfortably borrow to purchase a used car.

If you intend to buy your used car from a used car trader where they offer car loans / finance for their used cars, then do make sure that the loans deal you sign up to is better than the loans deal that the used car trader can offer. The APR rate is the critical thing here. On car loans tailored for used car purchases the APR rate - i.e. the rate of interest you'll pay on top of the used car purchase price - can be as low as 6%. Finance loans deals through used car traders may have a higher APR, so pushing the total cost of buying a used car up to an unacceptable price.

One final thought. When negotiating the price of a used car with a trader, they may accept your lower offer providing that you take up one of their loans to finance the used car purchase. If this is an option then do check the terms and conditions of their loans carefully, paying special attention to the loans APR rate, as the savings from your negotiation on your used car may not be as attractive as first imagined when you consider the final costs attached to their loans!

Medical Bankruptcies: What You Can Do To Protect Yourself

2009-06-30T23:24:00.000-07:00

by: David Lear

First the bad news: about 2,000,000 personal bankruptcies each year are caused by unexpected medical expenses. Of all those people, 1,500,000 have (or had) health insurance before they ran into difficult financial straights.

But wait a minute. Isn't the whole idea behind health insurance - security? The financial security that comes from knowing that you're covered if something goes wrong with your body? You say you're covered, but what if your medical "situation" exceeds your policy limits? Then what?

No one wants that to happen, so the question is: are there other options? For instance, is there a way to "insure" against getting sick in the first place? Most people assume that's not possible, but personally, I disagree.

Several years ago my wife Sandy and I stumbled onto a very unusual health product. We both had our own experiences with it and have seen it work miracles for others.

But before going there, I'd like to explain something. To me, health insurance should be about staying healthy. In China, for instance, doctors used to be paid only if they kept you healthy. That's what I call real health insurance. And although the U.S. has some of the best-trained, dedicated physicians in the world, heart disease, cancer, strokes, and autoimmune diseases are all on the rise.

Clearly, our health isn't being protected - at least not to an appreciable extent. The medical paradigm in the U.S. is mostly about treating symptoms, not fostering health. And while we're all very grateful to doctors for all their efforts, symptom treatment is intrinsically short-sighted.

If symptom treatment was effective in restoring health, people would be getting well and staying well. But that's not what usually happens.

There's a growing movement of people who've recognized the shortcomings of the traditional medical/pharmaceutical "health" model. They're not stupid. For instance: 106,000 annual deaths from properly prescribed prescription drugs sure got my attention when I heard the news. Check it out on the net. It's a fact.

OK. So everyone knows there's a problem. Again, the question is: are there options out there and if so, what are they?

As I was saying earlier, there is an option. I can say that because I have personal proof. Four years ago, I was diagnosed with a heart condition called atrial fibrillation. It wasn't painful per se, but the irregular, spasmodic poundings inside my chest were very disconcerting.

My wife Sandy and I were in Maui when a friend of ours told us about something called glyconutrition. Now, I'm a fairly open-minded kind of a guy and I've been interested in health supplements for a long time, so I decided to try it. (By the way, nothing I was taking before then was helping my heart condition). After a few months, the condition went away. It hasn't returned since.

Sandy also had a positive health reversal. She was in a lot of pain from neck surgery she'd had seven years earlier. She also decided to try the glyconutrients. It took a little longer for her, but her pain subsided and surgery was avoided.

My point in telling you these two stories is that we saved a ton of money and who knows how much pain and suffering by not having to undergo surgery. I don't know if my atrial fibrillation would have led to a worsening condition requiring surgery, but I do know that Sandy was considering a second neck surgery before we heard about glyconutrients.

Since then, we've learned a lot more about the science behind glyconutrients and why this new category of nutrient is turning around so many health conditions for so many people.

Even highly trained medical doctors and surgeons are taking notice. Case in point: Dr. Ben Carson is the department head of pediatric neurosurgery at Johns Hopkins Medical Center. A severe form of prostate cancer led him to discover glyconutrients. Long story short: he attributes to them his complete recovery. He now recommends glyconutrients to all his patients, to his staff and others as well.

Without going into a lot of complicated detail, science now has a pretty good idea about why glyconutrients seem to be helping so many different kinds of health conditions. The bottom line is this: enhanced cell-to-cell communication.

Glyconutrients provide the body with highly specialized building blocks that the body transforms into communication molecules that all cells use. Without an adequate supply of these molecules, communication starts to break down and illness starts to creep in.

The reason glyconutritional supplements are so effective is this: our diets suck. Let me explain. If we got all the nutrients we needed in our diet, we'd rarely get ill. By the way, the scientific evidence to support that statement is huge.

But because 90 percent of the food we eat is processed (devoid of essential, health-promoting nutrients) and for a number of other reasons, we're not getting the nutritional build blocks our bodies need in order to stay disease-free.

Bottom line: understand the powerful relativity between the nutrients we consume and the state of our health.

So to reiterate - there are options for warding off illness and medically related bankruptcy. Just don't look for them in the current medical - pharmaceutical - health insurance paradigm. Look for them in the emerging science of glycobiology - the same science that's starting to describe the cellular mechanisms behind the major health recoveries that thousands of glyconutrient users are now reporting.

About the author:
David Lear is an independent nutrition researcher and free-lance writer. His main interest is in cutting-edge supplements that improve health and reverse illness. For further information visit http://www.glycoresults.com

How to Find the Best Low APR Credit Cards

2009-06-30T23:18:00.000-07:00

by: Morgan Hamilton

Low APR credit cards are much more prevalent than in years past. Competition is stiff and credit card financial institutions offer many nice perks, rewards, points, low annual percentage rates (APR) and other inducements. They want to capture new customers who've never had a credit card but also those who already have a credit card and might like to save money by transferring that card's balance on to their new low APR credit cards.

Of course, there is nothing lower in an APR than zero - and those exist too, although sometimes for a limited time period. It may be that the lowest, or even the zero percentage APR is for an introductory period, after which the rate is higher. The permanent APR is what you want to watch out for, of course. Although if you're not opposed to doing a lot of switching, you can always purchase a low APR credit card, or zero percentage APR credit card, transfer the balance from your current high APR credit card, and then, once the introductory time period has expired and the APR is about to go up on your newest credit card, transfer the balance yet again to a brand new low APR credit card.

Let's look at a few of the low APR credit cards out there, so you know what kinds of options are typically available to you.

Citibank, for example, offers low APR credit cards that give you five percent cash back on any purchase you making at grocery stores and gas stations with your low APR credit card, and one percent back for any purchase elsewhere. The APR on transfers is zero for the first year. If your transfer transaction is at least $1500 you will earn $5 cash back with the low APR credit card. There is no annual fee and the APR after the first year is 12.24 percent.

Discover has a platinum clear card whose low APR is continual. The first year the APR is zero, but after the first year it's still a very competitive 9.99 percent. And there is no annual fee. With these low APR credit cards you earn a five percent cash back bonus on purchases made from hardware and home improvement retailers, restaurants, book vendors, and gas stations. If the retailer doesn't qualify you for the five percent discount you will always get one percent back no matter what you buy and from where with this low APR credit card.

Chase Bank offers low APR credit cards as well. Its zero percent APR is good for six months, after which you will pay 10.49 percent. These low APR credit cards have no annual fee, and offer rewards at the rate of one point for every dollar spent with your Chase card. You can get free airline flights and hotel rooms, as well as cruises and auto rentals. This card also provides $500,000 worth of travel insurance for worldwide vacationing. You can also take advantage of a fifteen percent discount off a Hertz car rental with these low APR credit cards.

How To Choose A Health Insurance Plan

2009-06-30T23:14:00.000-07:00

by: Ron King

Are you thinking about buying health insurance? With so many different alternatives, it is difficult to know which to choose.

When choosing a health insurance plan, never base your decision solely on the monthly premium. There are many other cost factors -- deductibles, co-payments, and the like -- that will determine the true price tag of your insurance. You'll need to read the fine print of the health insurance plan, including what it does and does not cover, the in-network versus out-of-network coverage and costs, claims processing procedures, and the coverage limits.

Know Your Health Care Needs

The first step is to review the scope of your needs: coverage just for yourself, for a large family, or something in between?

Next assess the health needs for all you intend to include in your health insurance plan. Are there any pre-existing conditions to consider? Does someone need to have access to certain medical specialists or medical institutions?

Research and Compare Your Options

The answers to the above questions will give you a good starting point in your search for the right health insurance plan.

Next, you need to explore your options. If you're getting group insurance through your employer, your options will be limited to what the company offers. Otherwise, you'll need to more research and comparison shopping. At a minimum, you have to understand the difference between the 2 basic types of health insurance plans offered today: the Indemnity Plan, and the Managed Care Plan with its variants.

Indemnity Plans and Managed Care

An Indemnity Plan offers the freedom to choose when and where you will seek medical assistance. Along with this freedom usually comes higher out-of-pocket costs. For many this is a fair trade-off.

Managed Care Plans are more restrictive, and require you to utilize the medical professionals and institutions that are part of the plan's "network." Participants often need pre-approval for medical services that are beyond basic preventive care. The costs for this type of plan are usually lower than Indemnity Plans. For those who are basically healthy, don't mind who provides their medical services, and who need to control medical costs, Managed Care Plans are usually the better choice.

This is a very basic comparison of the types of health insurance plans available. It is a first step in your own data gathering and analysis process.

Select The Right Company

Once you've done your homework and know what you want, you need to choose the right health insurance company. Many companies offer health insurance, from well-known corporate giants to small independent outlets. As with any major purchase, you'll want to research these companies before making a final decision.

Also, find out which state or federal agency regulates the type of health insurance you're considering, in case you have questions or experience problems.

Each type of health care plan has advantages and disadvantages. It is in your best interest to research thoroughly, so that the health plan you choose will be the right one for you and your family. For today and for years to come.

About the author:
Ron King is a full-time researcher, writer, and web developer. Visit http://www.healthinsuring.comto learn more about this subject.

Piece of mind while away from home

2009-06-30T23:01:00.000-07:00

Travel insurance covers a variety of situations including medical expenses, theft, loss of baggage, trip interruption or cancellation and other travel-related calamities.

Probably the most common forms of travel insurance are policies that protect you against loss in case your trip is cancelled or interrupted. Trip cancellation policies step in if you're stuck with worthless plane tickets or other useless prepaid items such as hotel accommodations, or if you would have to pay change penalties commonly assessed by airlines.

For many travelers, their home country medical insurance does not pay for medical services overseas, so travel insurance can be purchased with provisions to pay medical costs should you fall ill while abroad.

Theft, unfortunately, can ruin a vacation -- especially if all your belongings get stolen, so theft coverage also can be helpful. Along with this, coverage for loss of baggage can add some peace of mind if your bags take a detour to Desmoine but you're in Paris.

Travel insurance can be purchased by the day so you only pay for coverage while you're on you're trip. Longer term policies also are available if you're planning extended travel.

Three Rules of Thumb for Mortgage Refinancing

2009-06-29T02:58:00.000-07:00

by: Stephen L. Nelson, CPA

You might think that deciding to refinance a mortgage requires only a quick comparison of loan interest rates. Unfortunately, that’s not really true. Refinancing is trickier than that! Fortunately, three useful rules of thumb can often help you make sense of refinancing opportunities.

Rule 1: Don’t Ignore Total Interest Costs

You really want to use refinancing as a way to reduce the total interest cost you pay. While that sounds simple in principle, it is sometimes difficult to do. The interest costs you pay are a function of the interest rate, the loan balance, and the loan term period.
When people refinance, they tend to focus solely on the loan interest rate. But they often don’t pay as much attention to the loan term or the loan balance.
When you use refinancing—even refinancing at a lower interest rate—to increase your borrowing or to extend the time over which you borrow, you often aren’t saving money.

Rule 2: Trade Expensive Money for Cheap Money

For refinancing to make economic sense, however, you do need to swap higher interest rate debt for lower interest rate debt. This calculation, however, is tricky. To make an apples-to-apples comparison, you must look at the annual percentage rate that will be charged on your new loan—this is the best measure of the new loan’s interest rate cost—and then compare this to the loan interest rate on your old loan.
You don’t want to compare interest rates on the two loans nor do you want to compare annual percentage rates on the two loans. Again, just to make this perfectly clear: You want to compare the loan interest rate on the old loan to the annual percentage rate on the new loan.
When the annual percentage rate on the new loan is lower than the loan interest rate on the old loan, then you are truly paying a lower interest rate.
Comparing annual percentage rates with loan interest rates seems confusing at first. But note that you would pay only interest on your old or current loan, so that’s all you need to look at in terms of its costs. With a new loan, however, you would pay both interest and any origination or closing cost fees. The annual percentage rate wraps the interest rate charges and setup charges, origination charges, and closing cost fees into one interest rate-like number.

Rule 3: Don’t Lengthen the Repayment Period

Be careful that you don’t extend the length of time you borrow by continually refinancing. For example, one common rule of thumb states that every time interest rates drop by two percentage points, you should refinance your mortgage. However, there have been times in recent history when following this rule would have had you refinancing your mortgage every few years. This could mean that you would never get your mortgage paid off. If you refinanced every few years, you would suddenly find yourself still 30 years away from having your mortgage paid.

How Credit Repair Works

2009-06-29T02:55:00.000-07:00

by: John Mussi
With personal debt at an all-time high, a number of individuals have found that they have overextended themselves and have become immersed in debt. As their debt grows, they can't help but get more and more behind… and their credit score pays the price. If you are one of the many who have had problems with your credit in the past (or still have problems with it), you may be considering credit repair as a way to get back on track.

Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of credit repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal.

What Credit Repair Is

Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of credit repair services exist, providing everything from credit counselling and debt negotiation to debt consolidation loans and budgeting advice.
When used properly, credit repair services can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future.
Credit repair takes time, however, and should never be viewed as a “quick fix” for your credit.
If an offer claims that they can instantly grant you new credit, then it's likely not only bogus but can also get you into legal trouble if you accept it.

Common Types of Credit Repair

As mentioned above, credit repair can take several different forms. Credit counselling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe.
Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments.
Budgeting assistance services are also available to help you get control of your spending and personal finances.

Avoiding Credit Repair Scams

Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance.
Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they're really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges.
Credit repair takes time; if an offer sounds too good to be true, then it likely is.

Repairing Your Own Credit

Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself.
Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports.
It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own.

Before You Look for Health Insurance

2009-06-29T02:51:00.000-07:00

by: Richard Keir

Shopping around for medical insurance can be a confusing business. You need to keep your wits about you and keep track of the benefits and costs of each policy and each type of policy. Too often we tend to look at the price first and the rest of the policy becomes a blur of fine print. And we're off to check the next policy.

Slow down. There some important things you should do before you start chasing around to get a policy. Doing these few things will make the whole process simpler and clearer - and you're much more likely to make a good decision.

You need to carefully consider your situation. Think about these questions and note your answers:

What's the general state of your health?

How old are you?

Do you have any serious medical problems currently or in your medical history?

Do you have any history of recurring or on-going medical needs?

Do you use tobacco? How much?

Do you drink? How much?

Are you over- or under-weight for your height, body-type and age?

Is your job hazardous?

Do you participate in any activities or sports that could affect your health?

Now this may be unpleasant but if there's any chance an insurance company could discover a history of drug or alcohol abuse or sexual behavior that might put you in a high risk group, you may want to be direct and upfront about it - especially if it's in the past. Having a claim denied later because you had failed to disclose medical information to the insurance company would be far more upsetting - and very expensive. The same goes for any significant medical condition. Insurance companies are in it to make a profit - at least most of them are. Paying large claims isn't their favorite activity, so they often do investigate.

If you're seeking a family policy you'll need to make the same analysis for everyone and consider carefully what kind of coverage you want.

Do you need dental, orthodontic, pregnancy, mental health, and/or drug coverage? Do you need long-term care coverage, either inpatient or in a nursing facility? Assisted living coverage? What about traveler's or international coverage?

If there's a possibility that you may require - or want - in-home care as opposed to a residential nursing or assisted living facility, be sure that coverage is included and be sure you understand exactly what you can expect to receive.

Think about deductibles and what you could afford pay to reduce your insurance costs. But be very careful here, because medical expenses tend to pile up quickly and reach nearly insane levels for complex treatments or inpatient stays. Many drugs in common use are ridiculously over-priced and depending on the specifics of your insurance you may not be able to use the least expensive sources.

If you will end up with multiple sources of coverage, be clear about how they fit together and what the rules are about overlapping or combined benefits.

Once you are clear on your current situation, your (and other family member's) medical history, and your projected needs, you can begin looking in a organized way with a better sense of where you're going and what will actually meet your needs. This may seem like a tedious process, but it will serve you well in finding appropriate and affordable health insurance and making sure your health care needs can be met by the medical insurance you choose.

Take some time to work through these questions. Write down your answers. Make a chart with your desired coverages and any special conditions the policy must meet. As you look at health insurance policies, note the rules, exclusions, information about pre-existing conditions, any limitations, the dollar amounts covered and especially any deductibles.

Don't try to do too much at once. If you hurry, it'll become confusing and tiring. You may hate it (I know I do), but you really do need to read all that fine print and understand it. That's not a task to rush through. You might as well face up to it, because it's a lot better to do it BEFORE you need medical services than after you get a bill for the uncovered portion that sends you into shock.

So is it an impossible job to find health insurance that works for you? Not at all. There's a world of resources on the internet to help you find the policy you need. Just be sure to do your homework first.

About the author:
Richard is a writer, educator and consultant providing services to medical, scientific and business professionals. For more on choosing a health insurance policy or finding the best medical plan for you, visit http://www.aboutinsurance.info/

Free Credit Card Processing For Business Owners

2009-06-29T02:49:00.000-07:00

by: Shane Penrod

Would you like to upgrade your company’s operations by taking advantage of free credit card processing for business owners? There has never been a better time to locate banks offering this service and make the best possible deal for your interests. Financial institutions are eager to work with you in opening a merchant account, and they sometimes offer attractive incentives to get entrepreneurs’ business. If you like the idea of free credit card processing, start shopping at your community banks and credit unions to see what type of deals they can offer.

Free credit card processing for business owners is an attractive perk, since some companies impose fees of perhaps 15 to 25 cents per transaction or a monthly percentage fee overall of between 1% and 2%. Being able to get free credit card processing for business owners could save you a significant sum of money each month, and over time, those savings could increase even more. Your customers will love the ease with which they can make online credit card payments, and you will appreciate the time-saving benefits of handling credit payments electronically rather than by employees who require regular paychecks.

It is a good idea to sit down with your financial institution and discuss the precise terms of the free credit card processing for business owners deal. Will you have to pay an application fee? Will annual membership fees come due each year? Are there other embedded costs that you should know about up front? Even if your credit card processing is free, other start-up expenses could add up to cost even more than the transactions would. You will want to make the best possible deal before signing an application or contract to be sure you don’t get trapped into paying unexpected high costs later.

Keep in mind that free credit card processing for business owners may not be the best perk to ask for when applying for a merchant account. In addition to start-up fees that could be imposed and perhaps increased in lieu of the free credit card processing option, you also may have to pay expenses like a statement fee, a minimum fee, a discount fee, and a license fee. These could add up initially to more than you will pay for transaction fees. Even if the free credit card processing option appears to save you money at first, is this a limited time offer? When reinstated later, will transaction fees be difficult to add to the company budget since you did not start the process with them?

You might want to get a second opinion on weighing the benefits offered with various merchant account deals. You could even ask the customers via an informal survey about the type of credit processing they are most interested in and then see how promotional offers for opening a merchant account may impact customer interests. Of course, you can always check out the benefits of paying no transactions costs, and if permissible, switch to another system later if costs increase more than expected with free creditcard processing for business owners.

About the author:
Shane Penrod is the founder of Merchant-Acount-Quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com

How to Compare Motorcycle Insurance

2009-06-29T02:42:00.000-07:00

By Ricky Lim

You've always wanted a motorcycle. Now that you have one, the next step for you is to get motorcycle insurance. But with so many motorcycle insurance companies out there, it's hard for you to choose which one is right. After all, you are paying them your hard-earned money.

You might as well get the best that would cater to your every need. Don't be overwhelmed by all the details the agents tell you. Here are some pointers that you need if you to be aware on how to compare motorcycle insurance.

First and foremost, you have to choose which of these insurance companies give you the best premium discount. You also have to check whether you will be able to save more if you sign up with them online or not.

Some motorcycle insurance companies give their clients that option. They know that the Internet is the backbone of the 21st century and a number of motorcycle owners would prefer do just get those online quotes. If you do want to compare motorcycle insurance, this is a factor that you have to be aware of.

You also have to check whether the insurance companies have claim bonus or not. Go for the insurance companies that have a high percentage of no claim bonus. The standard no claim bonus ranges up to 65%.

If you find one while you are in the process of compare motorcycle insurance, then bookmark that company. Then check whether they also offer premium discount for less usage and higher excess. Don't be too overwhelmed by these terms.

In layman's terms, these just means how much you'll get if let's say you don't use your insurance. If you get an insurance company that will offer you a portion of your money back if your insurance remains unused at a given point, then go for that company.

Another important thing for you to remember when you compare motorcycle insurance is to check if the company covers up to the market value and can replace your bike, just in case it gets stolen. There are some insurance companies that do that but there are some that don't. It's to your discretion which one you opt for.

There are also some insurance companies that cover your riding gear and your personal valuables just in case you do lose your motorbike. The best insurance also offers lifetime guarantee on repairs. But you have to make sure what do they mean exactly by lifetime.

Sometimes, this just means til a given time. Just like any contract, you have to define all statements that you read when you compare motorcycle insurance.

Compare motorcycle insurance rates at my site. Discover where to get the cheapest motorcycle insurance online.

Article Source: http://EzineArticles.com/?expert=Ricky_Lim

Tips for Saving Money on Car Insurance

2009-06-29T02:41:00.000-07:00

by: Ray Shelton

Car insurance is required by all licensed drivers but many of them don’t know how to find the best rates available. Being complacent and purchasing car insurance without carefully investigating your options or maintaining the same car insurance for the remainder of your life could mean that you are paying too much for your car insurance. Comparison shopping, ensuring that you are receiving all the discounts you qualify for and maintaining a clean driving record are just a few of the money saving tips that can save you a fortune on car insurance.

Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. It is critical that you investigate all of your options before choosing an insurance provider to ensure that you are getting the best possible rate on your car insurance. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few. With all of these factors to consider, it is very possible that you will find that there is a car insurance provider who will offer you a considerably lower rate than other providers.

Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.

These discounts can result in a tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don’t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available. For example if your driving record is devoid of accidents or tickets, you may qualify for a good driver discount.

Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who insure their house with the same company as they insure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.

Finally, maintaining a clean driving record is very important to receiving the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.

Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn’t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance.

About the author:
Get all the information you need about car insurance at:
http://www.1-in-insurance.com

Car Insurance Estimate

2009-06-29T02:38:00.000-07:00

by: Timothy F

Shopping around for a car insurance estimate is not something most people look forward to. It is one of the least exciting chores that is required in order to have a car on the road, but it is worth seeking out the most competitive car insurance estimate available. Although getting a car insurance estimate from a number of companies isn’t a desirable task; many people spend far more than they absolutely have to each year on their auto insurance because they simply haven’t taken the time to compare rates and policies with other auto insurance companies. It would be hard to find someone who would walk into an appliance store and decide to spend $200.00 more on a washer that offers the same exact quality and features as the one next to it that costs far less. It doesn’t make too much sense to do the same thing with car insurance.

Most of the time, a car insurance estimate will include collision, liability and comprehensive coverage on a vehicle. Most households have two or more vehicles and every car should be included when seeking out a car insurance estimate. There are a few things that can be done to make getting a car insurance estimate easier and more accurate especially when dealing with more than one car insurance company.

One of the best things to do before looking for a car insurance estimate is to see exactly what the state requirements are as far as what the necessary minimum coverage is in order to have adequate coverage. This is something that might be better to do without the assistance of an insurance agency if possible because their job is to sell insurance and they make more money with the more coverage they are able to sell.

In order to spend less time on the phone when looking for a car insurance estimate, it is a good idea to have a number of items handy including a driver’s license, vehicle identification numbers, make, model and year of each car and even the name and contact information for the company that is financing all vehicles if applicable. There are also a number of factors that can be taken into consideration when seeking a car insurance estimate that may mean additional savings per year. Features on each auto including airbags, auto alarms, anti-lock brakes and other things may mean discounts on auto insurance. Some insurance companies will even offer discounts for having more than one policy with their company as well as insuring multiple cars through with their coverage. Additional discounts may be found through other things like accident-free driving record, defensive driving course incentives and other discounts.

Other circumstances may cost a driver more with certain companies when looking for a car insurance estimate. Men under the age of 25, single drivers, younger drivers under the age of 21, the number of miles driven per day and even the kind of car that is driven can cost a person more money on car insurance when shopping around. The best part about this is that not one car insurance will probably charge the same amount of money for the same coverage so shopping around will prove that there are better choices available.

About The Author
Timothy is the webmaster and owner of " Discounted-Car-Insurance.com " and has been researching and reporting on Car Insurance Estimate solutions for years. Click Here ==> http://www.discounted-car-insurance.com/

Life insurance – wise investment in personal finance or excessive caution?

2009-06-29T02:32:00.000-07:00

by: Rachel Lane

Life insurance is typically taken out to offer valuable financial protection for your family in the event of your death, upon which a payment is made to your financial beneficiaries, heirs or family members. The extent of this payment will depend on your insured sum and earnings. Life insurance and life assurance may be interlinked in advertisements, though bear in mind the two policies are different. Life assurance is a form of financial protection which is also an investment, as you should always get a pay-out at the end of the term of the policy. Life insurance on the other hand is simply financial protection for your family, avoiding the issue of debt in the event of your death.

According to an article by the Fair Investment Company, the British life insurance industry shrank to almost half the size of the pensions industry last year and according to the Association of British Insurers, less than 50% of UK households hold a life insurance policy.

In their most recent newsletter about this issue, the Association of British Insurers found that 25% of mortgage holders had insufficient life insurance to cover their debt. The ratio of new life insurance policies to new mortgage loans was apparently 68% in 1994, but by 2004 this had dropped by half to 33%.

The absence of mortgage life coverage poses a serious risk for the dependants of homeowners. If banks were to embark on wide scale repossessions as a result of this absence of life insurance, this would impose a risk on their loan books and reputations. The Association of British Insurers also state that one of the main reasons behind the increased gap between mortgage loans and insurance is the emergence of people remortgaging their property to take advantage of equity release through a rise in value, without insuring their borrowing. In their report it was stated that around 63% of new mortgage loans were remortgages or further advances, compared to 34% in 1994. Egg reported at around the same time, that three out of four of these new loan homeowners had no intention of insuring this additional debt. This is particularly worrying if couples are remortgaging their property later in life – towards retirement, given that should anything happen to the breadwinner, the partner would be left with significant debts without the capability of paying the loan back.

Reasons for the downward trend in life insurance take-up include:

* Relaxation in lending policy – increased competition in the mortgage market means that lenders are not forcing life insurance policies on their customers

* High house prices have stretched homebuyers, in particular first time home-buyers, in terms of their mortgage repayments, that the additional costs of a life insurance policy are deemed too expensive

* There are more households with no dependents

If you’re interested in researching a life insurance policy, make sure you shop around. UK websites such as moneynet ( http://www.moneynet.co.uk ) provide life insurance and life assurance information guides, as well as providing price comparison research for the different products. In the states, the website LowerMyBills.com also offers a similar service.

Because of the various factors listed above, people have also become less familiar with the term life insurance and without the awareness there is little recognition of the importance of this type of insurance. However as speculation increases that UK households are not coping with their debt, so should the awareness of life insurance as an essential product in the personal finance portfolio.

* * * * * * * * * * * *

About the author:
About Rachel:

Rachel writes for the personal finance blog Cashzilla:

http://www.cashzilla.co.uk

Auto Insurance Rates

2009-06-29T02:29:00.000-07:00

by: Sher Matsen

Will vary depending on the insurance agency, your driving record, and the type of insurance you are looking to purchase. I you are looking for affordable car insurance or truck insurance then read on.

There are ways to reduce your premiums without giving up coverage. One of the easiest things to do is get auto insurance rate quotes online. This will allow you to comparative shop stress free.

Raising your deductibles is the easiest way to reduce your rates. The higher the deductible, the lower the premium will be. The deductible is the portion you will have to pay in the event of accident, before your insurance coverage steps in. It’s important not to carry a deductible that’s more than what you are able to pay. Your insurance company will not honor its portion of the claim until you’ve paid your deductible. However, the higher your deductible the lower your premium cost will be, so you need to find a

Always remember to ask your insurance broker for any available discounts. Quite often we forget to ask and they don’t seem to volunteer the information. A clean record on the current policy for a certain period of time, having your homeowner's coverage with the same insurer, taking a defensive driving course, having an accident free driving record, and having an approved anti-theft device will reduce your auto insurance rates.

The type of car you drive can also reduce your rates. Stay away from cars that have a high class rating. Rates vary among the different makes and models of vehicles. The different rates are based on the risk of accident, cost to repair, higher theft rates for a particular model and replacement costs such as with a new vehicle. So be sure your vehicle isn’t going to be in a category that increases your rates too much.

A safe driving record consisting of no accidents and no traffic violations will get you the most substantial discount. Most insurance companies are very good at recognizing good driving habits. These are the drivers they want to insure because their risk is much lower.

If the car is old and not very valuable, comprehensive insurance is probably not worth buying as it can quickly add up to more than you’d ever receive in the event of an accident. You can save up to 20% by eliminating collision insurance. You may want to opt not to carry collision insurance as well which can save you and additional 20%.

Check around to make sure you are getting the best auto rates you can. Online auto insurance shopping has taken the guess work out of buying insurance and you can very quickly see if you are being hosed. So if your insurance is coming due now is the time to start shopping!.

About the author:
Sher from The Auto Insurance Center has been serving customers for over 20 years. Please visit us at http://www.all-auto-insurance.com/

All About Stock Market

2009-06-29T02:24:00.000-07:00

by: scott morris

A stock market simulation game is a great way to practice your investment skills before actually investing any "real" money in the stock market.

Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision.

Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join.

This is how stock market simulation games usually work:

First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data.

The objective of most stock market simulation games is simple:

To increase the value of your portfolio of stocks so that it is greater than that of the other game players.

Below are some tips on choosing a stock market simulation game:

• Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.

• Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets.

• Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies.

• Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have.

• Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.

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