August 31, 2010

Life Insurance Checklist for Young Families

Do you have young dependants? The main aim of buying a life insurance policy is to protect them from financial strife in the event of your death.

Young families are vulnerable, so term life insurance is best.
The needs of a young family are special. This necessitates that you not just own a life insurance policy, but that you own one that will take care of your family’s needs as perfectly as possible.

Young families are placed quite precariously from a financial standpoint. Kids are expensive to care for. Young families have several financial obligations like mortgage on the family home; parents may be in the process of saving up for college education while trying their best to keep their family’s monthly expenses within the budget. Their life insurance policy needs to be economical as well as effective. The goal is to have a big enough death benefit to cover all your dependants’ needs and yet be able to make premium payments regularly.
                         life insurance policy
It is very important that young families with many financial obligations consciously opt for a term life insurance policy because it perfectly caters to their needs.

Life insurance checklist
Here’s a useful checklist if you have a young family.
  1. If you already have a life insurance policy, you need to review it. The best way to do this is act as if you are buying a fresh policy. So move over to Step 3.
  2. If you don’t already have a life insurance policy, you need one. Opt for term life insurance.
  3. First determine your needs. An online life insurance needs calculator will help you, as long as you answer the questions in the form as honestly as possible. Even those who have existing policies need to go over this step to help you assess if you have enough coverage, or too little or too much.
  4. The next step is to decide the term of the policy. When do you see your financial obligations getting lighter? For most people this happens when the youngest child is in college, or the last mortgage payment is made. Different families have different needs. Decide on a term based on your particular situation. If you already have a policy, work this out and see if you have the right term on your existing policy.
  5. Now you know what type of life insurance policy you need, for how long you need it and how much life insurance you need. It is now time to decide the variant of term. Within term life insurance, there are several interesting options. This calls for a bit of reading up. If necessary, meet up with a licensed life insurance practitioner. Also read up and consult on the different riders that companies may offer on their life insurance policies. They can add value to your policy, if chosen carefully. If you have an existing policy, go over these variants. Several of them are new, and may not have been in existence at the time you purchased life insurance.
  6. Life insurance purchases necessitate a lot of shopping around. This will help you go over a lot of policies and zero in on ones that best fit your needs. Luckily, this search can be done online, and will only take a few minutes. Use a reputed online life insurance agency website that has hundreds of life insurance companies on its database. Enter the questions asked in the quote request form as honestly as possible. You will instantly receive a list of policies that best match your requirements. If you have an existing policy, follow this step.
  7. It’s time to analyze the quotes you receive. Most reputed online agencies will give you comparison charts and financial analyses for the policies that are presented to you. Use these to narrow down your choice further. If you are an existing policyholder, go over the life insurance quotes and check if any of them are better than your existing policy terms. If so, you need to think about buying a fresh policy. If you opt to buy a new policy, remember to cancel out the old policy only after the first premium on your new policy has been paid out.
  8. Zero in on a policy that you like.
  9. Well, we are not done yet. You will need to list out one or more beneficiaries. You could name your spouse or kids. However, read up on the pros and cons of making a minor a beneficiary of your policy. If you have an existing policy, go over the beneficiaries especially if you have divorced or separated from your partner since you bought the policy.
  10. Make a will and include relevant information about your life insurance policy in your will. However remember that the life insurance proceeds will only go out to the beneficiaries named in your policy because as a rule, beneficiaries named under your insurance policy will supersede beneficiaries named in your will.
Our young ones are precious. With a term life policy, you can take care of them
Have you insured your life? Have you reviewed your policy lately? Is the amount you have insured enough to take care of your family, and will it be enough to pay off your credits and loans? Take a little time every year to review your term life policy so that your kids have a good life until they can take care of themselves, even if you are no longer around to provide for them.

This article has been contributed by Denise Mancini who writes articles on behalf of AccuQuote.com, a leading Life Insurance Quotes company
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August 24, 2010

What Are the Advantage of Online Payday Loans?

Americans are taking payday loans more than ever. That is mainly due to the economy which has resulted in many people being without jobs or not making enough money to handle their expenses. Short term lenders are popping out on every corner in most cities and State where such loans are allowed.

Some of States have a lot of restrictions and regulations regarding payday lending, which is driving many people to get payday loans online from reputable and trusted online lenders. Taking payday loans online helps customers avoid state regulations, saves them time from going to local payday store, and saves them hassle on paperwork.

Payday loans can be expensive as most payday lenders can charge average of $25 per $100 borrowed but they are still more affordable than utility bill late fees, bank overdraft fees, and credit card late fees. (See graph below)

payday loans online

This is the main reason where many Americans tend to apply for payday loans when they need money fast.

A study done by center for responsible payday lending, shows that majority of people apply for payday loans for the following reasons but not necessarily in that order.
  1. Avoiding Overdraft Fees;
  2. Paying Utility Bills
  3. Paying Medical Bills
  4. Money to buy necessary grocery
  5. Auto repair bills
  6. Cash for Gas for their vehicle
  7. Pay when their vehicles have been impounded.
  8. Pay for personal debt
  9. Pay credit card late fees
  10. Pay officials fees, such as DMV registration fees, tickets, etc.
It is noticeable that all reasons above mentioned are absolute financial emergencies that these customers encounter. According to same study, majority of people apply for payday loans as last resort where their other options are exhausted. Only a small portion of payday loan customers seem to get these short term loans for non emergencies or personal gain. And when applying for these loans, they prefer to apply for online loans because they are more convenient, and often they can get the amount of money they need in lesser time.

This is a guest post by Kristine Sauze, a financial writer. 
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August 22, 2010

Personal Finance – Secured vs Unsecured Loans

At one time or another many of us have had to make tough financial decisions, and taking out a loan can be one of the most difficult decisions to make. You have to try and decide what it is you want from your loan, how much it is you need to borrow and what sort of repayment plan your looking for before making such a decision.

When you decide to push forward with a loan, you then have to decide whether or not you wish to secure the loan against your assets. Doing so has both its advantages and disadvantages which I will try and address in this article; it’s Secured VS Unsecured loans.

The Basics

A secured loan is a loan that is secured against something you own, e.g. your home or your car.

An unsecured loan isn’t secured against any assets you own but as a result of this, the risk is greater for the lender.

The Current Situation

As a result of the current financial climate, being approved for a loan is becoming harder, lenders are more selective about whom they choose to qualify. The current market has meant that cheaper unsecured loans are becoming harder to come by and subsequently secured loans are becoming a more feasible option for lenders.

If you are looking to borrow a large amount over a long period of time then a secured loan could be the way to go, however, if you are looking to borrow a smaller amount over a shorter period then an unsecured loan could prove the right choice for you; it all depends on your personal circumstances.

Advantages / Disadvantages

Secured Loans: Advantages:
  • You will receive a better, more affordable rate than an unsecured loan
  • Your repayment period will be longer offering you greater flexibility with your payments
  • Easier to borrow larger amounts of money than an unsecured loan
Disadvantages:
  • You have to use your assets as collateral against your loan, failure to meet the regular repayments of the loan could result in the lender repossessing your assets
  • As the repayment periods are normally longer than unsecured, this may mean you are in debt for a long time
Unsecured Loans: Advantages
  • You can be eligible for one without having any substantial assets;
  • You avoid the risk of loosing your assets;
  • They are a better option for someone who wishes to only borrow a small amount.
Disadvantages:
  • You would normally have to pay the amount back over a shorter period of time
  • As you don’t have to place an asset as collateral, the risk for the lender is greater and therefore, the interest payments are normally higher than a secured loan
  • It is tougher to be approved for an unsecured loan than it would be for a secured loan

It’s Your Decision

When you have read the pros and cons of each type of loan, you should try and identify which type of loan would best suit you. Taking out a loan is such a tough decision, you should be 100% sure of all the details before you finally make a choice; you may have to live with decision for a very long time. Both unsecured and secured loans have their advantages, they both suit a certain persons needs, compare as many of them as you can and decide which best fits your future.
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August 19, 2010

Judge Your Pension Schemes and Their Performance to Secure Better Future

Life has got better for us. It is evident now that improved health care services and its easy affordability have increased life expectancy of people in European countries and other developed nations. This raised the concern and need for continuous income flow during the retirement years. Well, the subject of discussion here is pension plan that secures your future income potential when you need it most.

                        pension schemes

If you talk about various pension arrangements in Ireland, pension guides or information booklet can be of your good use. But are you aware of the investment risks, fees and charges that can affect your retirement benefits? It doesn’t matter what form of pension membership (State, company or personal) you have, you should understood how your pension works. Seek out more information to unveil the understandings.

In brief you should get a hand on –

1. Operational procedures of company pension schemes and personal pension schemes.

2. Calculation of the retirement benefits

3. Knowledge on the factors affecting your benefits

Here is a checklist or group of questions, upon solution of which you would be able to judge the performance metrics of your pension scheme.

What type of pension schemes do you own?

Is it a defined benefit scheme, defined contribution scheme, hybrid scheme or do you have Personal Retirement Savings Account (PRSA) or Retirement Annuity Contract (RAC)?

Does your employer make a contribution to your pension account? If yes, then how much and which way and in what funds? Do you know varied investment performance can affect your final outputs and poses enough risks too? As you are near retirement stages ask your trustee or pension provider for moving your scheme to a secure fund.

If it is your defined benefit scheme, do you examine the funding status of the scheme? You would get pension board booklet from Ireland Government to know more information. Effective planning, investigation of scheme and careful analysis of annual report – these are all about Pensions Ireland, you must excel with.

Finally it is about the adequate need and contributions that is to determine for old ages requirements. If you are a civil or public servant, ask your superannuation department or human resource department to know about pension status.
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August 11, 2010

Essentials to consider before you opt for an over 50 life insurance policy

Concern about you and your family are uppermost in an individual’s mind. It is pertaining to the concern that you opt for a life insurance. Many have the misconception that insurance is available for persons within a certain age limit. This is not the case, insurance is for all – the only thing you need to do is choose wisely.

                           over 50 life insurance
Think its way too late! Think that the premiums would be excessively high! Well, think again. Numerous Over 50 life insurance policies are present. The question is which one to choose. Here are a few questions, and there answers, you need to know before you opt to sign a certain policy.

Why do you need the insurance coverage?: In most cases, over 50 individuals consider insurance to ensure financial support for the cremation/burial services, repayment of debts, support for minors in the family and so on. Note down the aim beforehand. This helps in the financial planning.

How much coverage amount is necessary?: Plan your finances. The policy coverage amount is proportional to the premiums you pay. You need to decide what premiums are suitable for you. Usually, premiums for these policies are more than other insurance plans. Therefore, you need to know your budget in advance.

Where do you search?: If you have access to the Internet, it is best to conduct an online search for companies offering these policies. Otherwise, you may talk to local insurance providers to get the details of the over 50 life insurance plan.

Why is comparing quotes necessary?: Get insurance quotes from different companies and compare these. This gives you a good idea about which Over 50 Life Assurance policy offers the best possible coverage terms within your budget.

                             over 50 life insurance
What to do if you don’t understand the details of the policy?: It is imperative to get a good understanding of each of the terms and conditions of the policy before you sign it. This is essential to avoid later hassles. If you are unable to understand any, be sure to clarify from the insurance agent you are working with.
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August 1, 2010

How To Get A Home Loan Approved

If you are wondering how to get a home loan approved you have come to the right place. The hard part of getting a home loan is saving up for the deposit. It will require you to work hard, go without many little extras, and put lots of money into savings. However, once you have the down payment you can move on to the fun part. The fun part is choosing a house. Many people make an exhaustive search comparing square footage, amenities, neighborhoods, school districts, and personal tastes when they are looking for a house. It can take months of visiting houses and doing loads of research to find just the right house for your needs and your budget.
how to get a home loan approved
Once you find that perfect house, the next thing to do is to go out and find a bank to loan you the money in order to buy it. This is often the first step in how to get a home loan approved that stops people in their tracks. You might assume that all you have to do is to walk into a bank with your down payment and the bank will write you a check. That is not always the case. If you have not done the proper research, you might find yourself walking out of the first bank, then another and another without a loan because you were not at all prepared to ask for one.

Knowing how to get a home loan approved:
  • Know your credit score - This is one of the major stoppers in the loan process. The almighty credit score tells lenders whether you will pay back the loan. Your credit score takes into account all of your previous bills and loans and whether or not you paid them back on time. It also helps banks determine how your debt stacks up to your income. This score informs them of whether or not they should grant you a loan and what your terms and interest rates will be on that loan. If your credit score is spotty then you will need to clean it up before you even consider asking for a home loan. If you do not know your score, then you should get a copy of your credit file from one of the major credit reporting agencies. Verify it to make sure that it is correct and that your score will qualify you for a home loan.
  • Choose a reasonable house - Most lenders are not willing to give you a loan on a house that is falling apart. Likewise, they will not give you a loan for a house that is far beyond your means to purchase. While it is important to buy the house that you really want, you must also balance that with the one you can pay for and the one that is an acceptable risk to the lending institution.
A lot of people think about how to get a home loan only in terms of which lender they will use and how much they need to save for a down payment. While these are noble plans, the true first step should be getting your personal finances in order. The second is to evaluate your budget so that you only consider those homes that meet your needs and your wallet. Only then should you start looking for houses and choosing between lenders. The upside to this plan is that once you find that perfect house, odds are that the bank will approve your loan. Remember that the better your credit score is the less you will have to pay in interest and the better your terms for the loan will be.

This article was written by William Eve. William writes about saving money, investment loans and real estate for Home Loan Finder. If you are a first home buyer or looking to refinance, visit the Home Loan Finder website for great advice and competitive mortgage products.
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