Is the policy for replacement or cash value? Cash value is usually not the best option due to how computers depreciate very quickly. Replacement coverage can cost 10 to 15 percent more, but will insure you will get back the system you need.
-Does the policy include data recovery?
-Does the policy cover the loss of business income while computers are being replaced or data being recovered?
-Will the policy cover any upgrades you may make to the computer?
-What is the deductible?
-Always keep receipts and show them to whoever you choose coverage with.
-Do you use your computer for business? Special policies may be needed to insure the full replacement costs are covered.
Monday, January 21, 2008
Computer Insurance Information
If you own a personal computer, it would be wise to protect your investment with proper insurance coverage.
The purchase of a personal or laptop computer has now become a major expense, which for many people, is now considered an investment which deserves special insurance protection along the same lines as a home and a car. As with any important expense, it is important to understand that computers and related accessories need to be looked at carefully when considering insurance coverage for your computer.
Homeowners and Renters Insurance May Include Coverage
Fortunately, many homeowners and renters insurance policies have some type of coverage for computers in the event of the disasters outlined in the policy. Many insurance companies, however, have limits to how much can be recovered in the case of a claim. Look carefully at these limits and compare to the expenses of your computer (or computers if you have more than one) and all related accessories such as printer, scanner, etc. Furthermore, laptop computers may need additional coverage, or an all together separate policy in case the computer is damaged or stolen outside of the home or residence.
The purchase of a personal or laptop computer has now become a major expense, which for many people, is now considered an investment which deserves special insurance protection along the same lines as a home and a car. As with any important expense, it is important to understand that computers and related accessories need to be looked at carefully when considering insurance coverage for your computer.
Homeowners and Renters Insurance May Include Coverage
Fortunately, many homeowners and renters insurance policies have some type of coverage for computers in the event of the disasters outlined in the policy. Many insurance companies, however, have limits to how much can be recovered in the case of a claim. Look carefully at these limits and compare to the expenses of your computer (or computers if you have more than one) and all related accessories such as printer, scanner, etc. Furthermore, laptop computers may need additional coverage, or an all together separate policy in case the computer is damaged or stolen outside of the home or residence.
Pet Insurance
If you own a pet, you've probably encountered several instances where your vet bill was much higher than you had anticipated. If this has been the case on more than several occasions, it may be wise to look into insurance for your pet. Insuring your pet will allow you to manage the expenses involved with good quality treatment.
Below is a list of common and not-so-common ailments, followed by their estimated medical bills for visits and treatment. This figures show the potential price range you could encounter.
Motor Vehicle Accident: $0 - $4,000 (depending on the severity of injuries)
Cancer Treatment: $500 - $3,800
Pet Eats Foreign Object: $50 - $2,500 (depending upon the object ingested)
Various Infections: $100 - $1,000
Broken Extremity: $1,000 - $2,500
Things to remember
-Some pet insurance policy providers will award a multi-pet discount. Insure Fido and Felix, experience peace of mind, as well as a discounted rate.
-Watch out for pet insurance providers that may add an additional charge, based upon your zip code (postal code), and/or the breed of your pet. Some breeds of animals are considered high risk animals due to genetics.
-Some providers offer accidental death insurance. If your pet was to accidentally die (other than by natural causes), they would pay you the original purchase price of the pet.
-Special coverage can be applied, depending upon the provider. This can range from coverage for older animals, indoor pets, outdoor pets, and by specific breed. One branch of coverage might have the coverage of another. Examine your situation closely to determine which program will benefit both you and your pet.
Below is a list of common and not-so-common ailments, followed by their estimated medical bills for visits and treatment. This figures show the potential price range you could encounter.
Motor Vehicle Accident: $0 - $4,000 (depending on the severity of injuries)
Cancer Treatment: $500 - $3,800
Pet Eats Foreign Object: $50 - $2,500 (depending upon the object ingested)
Various Infections: $100 - $1,000
Broken Extremity: $1,000 - $2,500
Things to remember
-Some pet insurance policy providers will award a multi-pet discount. Insure Fido and Felix, experience peace of mind, as well as a discounted rate.
-Watch out for pet insurance providers that may add an additional charge, based upon your zip code (postal code), and/or the breed of your pet. Some breeds of animals are considered high risk animals due to genetics.
-Some providers offer accidental death insurance. If your pet was to accidentally die (other than by natural causes), they would pay you the original purchase price of the pet.
-Special coverage can be applied, depending upon the provider. This can range from coverage for older animals, indoor pets, outdoor pets, and by specific breed. One branch of coverage might have the coverage of another. Examine your situation closely to determine which program will benefit both you and your pet.
Travel Insurance
The first thing one thinks about when it comes to travel is usually a vacation. A vacation is a time for you to relax and forget about your worries and troubles. During this supposed trouble free event, things can, and do go wrong. Ultimately, it doesn't matter your reason for traveling. Travel insurance will provide peace of mind and protection, which will save you time and heartache in the future. There is a wide variety of coverages and policies for your needs. The most common, well known are flight life insurance, travel accident insurance, trip cancellation/interruption insurance, travel health insurance, lost baggage insurance, and car rental insurance/waivers.
Some of the common things that travel insurance covers
-medical expenses (including dental)
-overseas medical expenses (including dental)
-cancellation and lost deposit expenses
-loss of luggage
-loss of travel documents
-death
-burial and transport expenses
-liability coverage if you cause property damage, injury or death to another
-weather
-various delays
Most companies will offer coverage that will last the duration of a single trip, multi-trips, and even cover your car rental.
If you are going to travel with or include the following in your traveling agenda, then some form of travel insurance is necessary
-Renting a car
-Driving an automobile in a foreign country (other than Canada)
-Renting/usage of a boat or personal watercraft
-Uninsured homeowners or renters
-Studying abroad
-Extended overseas trips
-Severe or chronic illness
-Non-refundable vacation packages
-Traveling with fine arts, jewelry, collectibles or special equipment
Some of the common things that travel insurance covers
-medical expenses (including dental)
-overseas medical expenses (including dental)
-cancellation and lost deposit expenses
-loss of luggage
-loss of travel documents
-death
-burial and transport expenses
-liability coverage if you cause property damage, injury or death to another
-weather
-various delays
Most companies will offer coverage that will last the duration of a single trip, multi-trips, and even cover your car rental.
If you are going to travel with or include the following in your traveling agenda, then some form of travel insurance is necessary
-Renting a car
-Driving an automobile in a foreign country (other than Canada)
-Renting/usage of a boat or personal watercraft
-Uninsured homeowners or renters
-Studying abroad
-Extended overseas trips
-Severe or chronic illness
-Non-refundable vacation packages
-Traveling with fine arts, jewelry, collectibles or special equipment
Universal Variable Life Insurance
Universal Variable life is the type of insurance which gives you more control of cash value account policy features than any other insurance type.
What it does
It pays a death benefit to the beneficiary you name and offers you low risk tax deferred cash value options.
It offers separate accounts for you to invest in such as money market, stock, and bond funds.
It offers premium flexibility.
It allows you to make withdrawals or to borrow from the policy during your lifetime.
It stipulates that if you terminate the contract in early years you will receive less cash value total return than in a whole contract.
What it doesn't do
It requires you, the policyholder, to devote time to manage the accounts. The policies long term success is contingent on the investment you make.
It doesn't work well with small premium amounts because your premium must cover your insurance and your accounts.
What it does
It pays a death benefit to the beneficiary you name and offers you low risk tax deferred cash value options.
It offers separate accounts for you to invest in such as money market, stock, and bond funds.
It offers premium flexibility.
It allows you to make withdrawals or to borrow from the policy during your lifetime.
It stipulates that if you terminate the contract in early years you will receive less cash value total return than in a whole contract.
What it doesn't do
It requires you, the policyholder, to devote time to manage the accounts. The policies long term success is contingent on the investment you make.
It doesn't work well with small premium amounts because your premium must cover your insurance and your accounts.
Universal Life Insurance
Universal life insurance provides permanent protection for your dependents and is more flexible than whole or variable life.
What it does
It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax deferred accumulation.
It allows you to earn market rates of interest on your cash value account.
It offers the right to borrow or withdraw from the policy during your lifetime.
It allows you premium flexibility.
It offers face amount flexibility.
What it doesn't do
It doesn't offer you the account flexibility to invest in separate accounts such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different accounts or to move your money between accounts.
What it does
It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax deferred accumulation.
It allows you to earn market rates of interest on your cash value account.
It offers the right to borrow or withdraw from the policy during your lifetime.
It allows you premium flexibility.
It offers face amount flexibility.
What it doesn't do
It doesn't offer you the account flexibility to invest in separate accounts such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different accounts or to move your money between accounts.
Variable Life Insurance
Variable life insurance provides permanent protection for you and is the type of life insurance with account flexibility for the more risk-oriented policy holder.
What it does
It pays a death benefit to the beneficiary you name and offers you low-risk, tax-free cash accumulation.
It allows the death benefit to vary in relation to the fund returns of the cash value account.
It allows you to borrow from the policy during your lifetime.
What it doesn't do
It offers no guarantee to the amount of cash value during your lifetime.
It doesn't offer you premium flexibility.
It doesn't offer you face amount flexibility.
What it does
It pays a death benefit to the beneficiary you name and offers you low-risk, tax-free cash accumulation.
It allows the death benefit to vary in relation to the fund returns of the cash value account.
It allows you to borrow from the policy during your lifetime.
What it doesn't do
It offers no guarantee to the amount of cash value during your lifetime.
It doesn't offer you premium flexibility.
It doesn't offer you face amount flexibility.
Whole life insurance
Whole life insurance provides permanent protection for your dependents while building a cash value account. With this type of insurance, the insurance company manages the policies various accounts.
What it does
It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax-deferred cash accumulation.
It provides a fixed premium which can't increase during your lifetime as long as you continue to pay the planned amount.
It allows the insurance company to exclusively manage the cash value account in your policy.
It provides you the option to receive dividends from your policy or apply them to reduce payments.
It offers you the right to withdraw from the policy during your lifetime.
What it doesn't do
It doesn't offer the account flexibility to invest in separate accounts such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different accounts or to move your money between accounts.
It doesn't offer premium flexibility.
It doesn't offer face amount flexibility.
What it does
It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax-deferred cash accumulation.
It provides a fixed premium which can't increase during your lifetime as long as you continue to pay the planned amount.
It allows the insurance company to exclusively manage the cash value account in your policy.
It provides you the option to receive dividends from your policy or apply them to reduce payments.
It offers you the right to withdraw from the policy during your lifetime.
What it doesn't do
It doesn't offer the account flexibility to invest in separate accounts such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different accounts or to move your money between accounts.
It doesn't offer premium flexibility.
It doesn't offer face amount flexibility.
Which type of life insurance is best for u
There are two basic types of life insurance: term and permanent. Term insurance is purely life insurance while permanent (aka "cash value" or "whole life") policies include a savings element.
You've probably heard lots of sales pitches and marketing hype regarding cash value polices, and other arguments about how term policies are the better deal. The truth of the matter depends on each persons individual situation.
Benefits of a Term Life Policy
1. It's straightforward. If you die during the term of your policy your beneficiaries get paid -that's all there is to it.
2. It's inexpensive. You aren't paying anything extra to fund a savings account or cover investment fees. And because the market is so competitive for term insurance, companies have a huge incentive to keep prices low.
3. It's easy to shop for. With relatively little effort you can comparison shop and assure yourself of a good deal.
4. You pay only for what you need when you need it. You typically need life insurance coverage for a specific period of time (until the kids are out of college, for instance).
Benefits of a Permanent Life Insurance Policy
1. Flexibility. A permanent plan can give you access to some or all of the premiums that you have been paying for in a way favorable to your taxes.
2. It's with you until you die. This type of policy coverage is guaranteed for your life with no out of the blue payment increases. A term policy will expire at a certain date, and a renewed policy could have much higher premiums.
3. Inheritance. Maybe the best reason for a permanent policy is to make sure your estate and investments don't get eaten up by the government. A permanent policy can provide peace of mind that your family and loved ones will be taken care of for the future.
Remember, the decision to buy a permanent or a term life insurance policy will depend on your situation, your age, your financial well-being, and other factors. If you are a young family with some investments to protect but not financially stable a term life policy might be a good idea to protect those investments and your family. However, if you are financially stable with considerable investments, it may be a better decision in the long run to purchase a permanent plan.
You've probably heard lots of sales pitches and marketing hype regarding cash value polices, and other arguments about how term policies are the better deal. The truth of the matter depends on each persons individual situation.
Benefits of a Term Life Policy
1. It's straightforward. If you die during the term of your policy your beneficiaries get paid -that's all there is to it.
2. It's inexpensive. You aren't paying anything extra to fund a savings account or cover investment fees. And because the market is so competitive for term insurance, companies have a huge incentive to keep prices low.
3. It's easy to shop for. With relatively little effort you can comparison shop and assure yourself of a good deal.
4. You pay only for what you need when you need it. You typically need life insurance coverage for a specific period of time (until the kids are out of college, for instance).
Benefits of a Permanent Life Insurance Policy
1. Flexibility. A permanent plan can give you access to some or all of the premiums that you have been paying for in a way favorable to your taxes.
2. It's with you until you die. This type of policy coverage is guaranteed for your life with no out of the blue payment increases. A term policy will expire at a certain date, and a renewed policy could have much higher premiums.
3. Inheritance. Maybe the best reason for a permanent policy is to make sure your estate and investments don't get eaten up by the government. A permanent policy can provide peace of mind that your family and loved ones will be taken care of for the future.
Remember, the decision to buy a permanent or a term life insurance policy will depend on your situation, your age, your financial well-being, and other factors. If you are a young family with some investments to protect but not financially stable a term life policy might be a good idea to protect those investments and your family. However, if you are financially stable with considerable investments, it may be a better decision in the long run to purchase a permanent plan.
How much life insurance do u need ?
A good rule of thumb is to aim for a policy that will cover 2-6 times your annual income. If your yearly income is $50,000, then a policy from $100,000 - $300,000 should be sufficient. Again, it depends on your personal situation. Take into consideration the rate of inflation, potential college tuition costs, or large loans and home mortgages. If you have two children who plan on attending college, current tuition prices range anywhere from $10,000 - $30,000 per year, with the high end range focusing on private universities. Expect that range to increase anywhere from 5-10% within the next 5 years.
Life Insurance
It depends on your situation. Several key questions follow below to help give you an idea of signals pointing to "yes".
1. Are you married?
2. Own a business?
3. Dependent children?
4. Other dependent relatives? (seniors, disabled)
5. You possess a formidable estate
6. Currently have major financial obligations? (mortgage, multiple loans)
A good life insurance policy would handle the financial responsibilities you left behind so family members wouldn't be burdened. Unlike the funds from an estate, the benefits from a life insurance policy will shoot straight to the beneficiaries, without any roadblocks.
1. Are you married?
2. Own a business?
3. Dependent children?
4. Other dependent relatives? (seniors, disabled)
5. You possess a formidable estate
6. Currently have major financial obligations? (mortgage, multiple loans)
A good life insurance policy would handle the financial responsibilities you left behind so family members wouldn't be burdened. Unlike the funds from an estate, the benefits from a life insurance policy will shoot straight to the beneficiaries, without any roadblocks.
Family business Information and resource
What About a Family Business?
When 50 percent or more of a business is owned by individuals who are members of the decedents family, or if they are natural objects of his or her bounty, the buy-sell agreement will be disregarded for federal estate tax purposes, unless the agreement (1) has a bona fide business purpose, (2) is not a testamentary device to transfer property to family members for less that fair market value, and (3) has terms comparable to those entered into by parties in an arms' length transaction.
When 50 percent or more of a business is owned by individuals who are members of the decedents family, or if they are natural objects of his or her bounty, the buy-sell agreement will be disregarded for federal estate tax purposes, unless the agreement (1) has a bona fide business purpose, (2) is not a testamentary device to transfer property to family members for less that fair market value, and (3) has terms comparable to those entered into by parties in an arms' length transaction.
Business Insurance Plans Advantage
HERE ARE SOME ADVANTAGES OF A STOCK REDEMPTION PLAN
* Only one insurance policy is in force per stockholder.
* Policy cash values are available to the corporation; these values are not subject to creditors of the stockholders.
* The plan avoids transfer-for-value problems because a deceased or withdrawing stockholder has no ownership interest in policies that insure the remaining stockholders.
* The premiums are paid by the corporation (for a sub-S corporation) and are usually charged to the stockholders according to their relative ownership interest. Thus, an older stockholder with greater shares contributes more toward the premium insuring his life, reducing the burden on younger, less-paid minority owners.
* Because life insurance is an after-tax purchase, a stock redemption plan can be more cost-effective than a cross-purchase agreement if the corporate tax bracket is lower than the stockholders' tax brackets.
A CROSS-PURCHASE AGREEMENT OFFERS THESE ADVANTAGES
* Stockholders who are buying achieve a step-up in basis equal to the price they pay for the withdrawing or decease owners shares. This is an important advantage for a C corporation or an S corporation on an accrual basis.
* Policy cash values are available to the stockholders. These value are not subject to creditors of the corporation.
* The agreement avoids the imposition of the alternative minimum tax (AMT), which may occur when a C corporation receives tax-free death proceeds under a stock redemption plan.
* The agreement may avoid unintended shifting of control that can occur with redemption.
* The search for a lower bracket taxpayer favors a cross-purchase plan if the stockholders are in lower tax brackets then that of the corporation.
WHAT ABOUT A TRUSTEED CROSS-PURCHASE AGREEMENT?
A major disadvantage of the traditional cross-purchase plan is the need for numerous policies when the corporation has more that two stockholders. For example: with five stockholders, twenty policies would be needed, four on each life. Funding the agreement with many small policies rather that one large policy on each owner is likely to result in higher costs and add confusion to the transaction.
A trusteed cross-purchase arrangement eliminates the need for multiple policies on each stockholders life, avoids the AMT, and provides the remaining stockholders with a stepped-up basis. For the benefit of the stockholders as a whole, a trust owns one insurance policy on each stockholder. Premium notices are sent to the corporation, which pays the premiums and then charges the salary or dividend account of each stockholder in proportion to his or her percentage of ownership.
At the death of a stockholder, the trustee collects the insurance proceeds and pays the purchase price to the decedents estate in exchange for a bill of sale of the stock to the remaining stockholders.
AGREEMENT MAY ESTABLISH ESTATE TAX VALUE
A deceased stockholders ownership interest is included in his or her gross estate for federal estate tax purposes. The purchase price under a buy-sell agreement establishes the value of that interest if (1) the heirs are obligated to sell the interest, (2) the agreement contains either a fixed price or a formula of determining the price, (3) the agreement prohibits owners from disposing of their interest in a lifetime sale without first offering it to the owners at no more than the contract price, and (4) the fixed price or pricing formula was fair and adequate when the agreement was made.
* Only one insurance policy is in force per stockholder.
* Policy cash values are available to the corporation; these values are not subject to creditors of the stockholders.
* The plan avoids transfer-for-value problems because a deceased or withdrawing stockholder has no ownership interest in policies that insure the remaining stockholders.
* The premiums are paid by the corporation (for a sub-S corporation) and are usually charged to the stockholders according to their relative ownership interest. Thus, an older stockholder with greater shares contributes more toward the premium insuring his life, reducing the burden on younger, less-paid minority owners.
* Because life insurance is an after-tax purchase, a stock redemption plan can be more cost-effective than a cross-purchase agreement if the corporate tax bracket is lower than the stockholders' tax brackets.
A CROSS-PURCHASE AGREEMENT OFFERS THESE ADVANTAGES
* Stockholders who are buying achieve a step-up in basis equal to the price they pay for the withdrawing or decease owners shares. This is an important advantage for a C corporation or an S corporation on an accrual basis.
* Policy cash values are available to the stockholders. These value are not subject to creditors of the corporation.
* The agreement avoids the imposition of the alternative minimum tax (AMT), which may occur when a C corporation receives tax-free death proceeds under a stock redemption plan.
* The agreement may avoid unintended shifting of control that can occur with redemption.
* The search for a lower bracket taxpayer favors a cross-purchase plan if the stockholders are in lower tax brackets then that of the corporation.
WHAT ABOUT A TRUSTEED CROSS-PURCHASE AGREEMENT?
A major disadvantage of the traditional cross-purchase plan is the need for numerous policies when the corporation has more that two stockholders. For example: with five stockholders, twenty policies would be needed, four on each life. Funding the agreement with many small policies rather that one large policy on each owner is likely to result in higher costs and add confusion to the transaction.
A trusteed cross-purchase arrangement eliminates the need for multiple policies on each stockholders life, avoids the AMT, and provides the remaining stockholders with a stepped-up basis. For the benefit of the stockholders as a whole, a trust owns one insurance policy on each stockholder. Premium notices are sent to the corporation, which pays the premiums and then charges the salary or dividend account of each stockholder in proportion to his or her percentage of ownership.
At the death of a stockholder, the trustee collects the insurance proceeds and pays the purchase price to the decedents estate in exchange for a bill of sale of the stock to the remaining stockholders.
AGREEMENT MAY ESTABLISH ESTATE TAX VALUE
A deceased stockholders ownership interest is included in his or her gross estate for federal estate tax purposes. The purchase price under a buy-sell agreement establishes the value of that interest if (1) the heirs are obligated to sell the interest, (2) the agreement contains either a fixed price or a formula of determining the price, (3) the agreement prohibits owners from disposing of their interest in a lifetime sale without first offering it to the owners at no more than the contract price, and (4) the fixed price or pricing formula was fair and adequate when the agreement was made.
Business Property Coverage
Some business owners learn the hard way that they didn't buy enough coverage. Remembering to consider certain pieces of your business property when purchasing an insurance policy is vital to keeping your doors open.
Your business may not possess all the following types of property, but you can use this quick reference list to make sure you have thought of all property categories and any insurance coverage that may be warranted for your business:
* Buildings and other structures (owned or leased).
* Furniture, equipment and supplies
* Money and securities
* Accounts receivable records
* Improvements and betterments you made to the premise
* Boilers and machinery
* Data processing equipment and media (including computers)
* >Valuable papers, books and documents
* Mobile property such as automobiles, trucks and construction equipment
* Satellite dishes
* Signs, fences and other outdoor property not attached to a building
* Intangible property (good will, trademark, etc.)
* Leased equipment
Your business may not possess all the following types of property, but you can use this quick reference list to make sure you have thought of all property categories and any insurance coverage that may be warranted for your business:
* Buildings and other structures (owned or leased).
* Furniture, equipment and supplies
* Money and securities
* Accounts receivable records
* Improvements and betterments you made to the premise
* Boilers and machinery
* Data processing equipment and media (including computers)
* >Valuable papers, books and documents
* Mobile property such as automobiles, trucks and construction equipment
* Satellite dishes
* Signs, fences and other outdoor property not attached to a building
* Intangible property (good will, trademark, etc.)
* Leased equipment
Business Ownerships
Every business owner will eventually get out of the business. In the absence of a child or other relative who can take his or her place, an owner needs to plan for the sale of his or her ownership interest.
Ownership in a small business often has little market appeal to anyone other than those already involved in the business. Consequently, the obvious buyers are the remaining owners.
A buy-sell agreement guarantees a buyer for a retiring or deceased owners interest in a business, thereby allowing the owner (or the owners heirs) to recover his or her investment. The agreement also fosters the continuation of the business by not allowing the departing owners interest to fall into the hands of outsiders - persons who may not be qualified to run the business or who may be incompatible with the remaining owners
UNDER A TYPICAL AGREEMENT, THESE CONDITIONS APPLY
* If an owner wishes to retire, he or she must first offer to sell the interest to his or her associates, or to the business itself, before selling to a third party.
* Upon the death of an owner, the surviving owners or the business must buy, and the estate must sell , his or her interest.
* The purchase price is fixed or the agreement contains a formula to determine the price.
STOCK REDEMPTION OR CROSS-PURCHASE
Stockholders implementing a buy-sell arrangement must generally chose between a stock redemption plan and a cross-purchasing agreement. Under a stock redemption plan, the corporation agrees to redeem the shares of a stockholder at his or her retirement, death or, perhaps, disability. The redeemed shares become treasury stock. To fund the redemption, the corporation owns and is beneficiary of a life policy insuring each stockholder.
Under a cross-purchase agreement, the stockholders agree to purchase the share of a withdrawing or deceased stockholder. To fund the purchase, each stockholder owns and is beneficiary of a policy on the life of every other stockholder.
There are no fixed rules for determining which type of buy-sell agreement is most appropriate for stockholders' particular needs and objectives. However, each type of arrangement has advantages that the stockholders need to consider.
Ownership in a small business often has little market appeal to anyone other than those already involved in the business. Consequently, the obvious buyers are the remaining owners.
A buy-sell agreement guarantees a buyer for a retiring or deceased owners interest in a business, thereby allowing the owner (or the owners heirs) to recover his or her investment. The agreement also fosters the continuation of the business by not allowing the departing owners interest to fall into the hands of outsiders - persons who may not be qualified to run the business or who may be incompatible with the remaining owners
UNDER A TYPICAL AGREEMENT, THESE CONDITIONS APPLY
* If an owner wishes to retire, he or she must first offer to sell the interest to his or her associates, or to the business itself, before selling to a third party.
* Upon the death of an owner, the surviving owners or the business must buy, and the estate must sell , his or her interest.
* The purchase price is fixed or the agreement contains a formula to determine the price.
STOCK REDEMPTION OR CROSS-PURCHASE
Stockholders implementing a buy-sell arrangement must generally chose between a stock redemption plan and a cross-purchasing agreement. Under a stock redemption plan, the corporation agrees to redeem the shares of a stockholder at his or her retirement, death or, perhaps, disability. The redeemed shares become treasury stock. To fund the redemption, the corporation owns and is beneficiary of a life policy insuring each stockholder.
Under a cross-purchase agreement, the stockholders agree to purchase the share of a withdrawing or deceased stockholder. To fund the purchase, each stockholder owns and is beneficiary of a policy on the life of every other stockholder.
There are no fixed rules for determining which type of buy-sell agreement is most appropriate for stockholders' particular needs and objectives. However, each type of arrangement has advantages that the stockholders need to consider.
List to Lower Premiums
Looking for methods to lower your insurance premiums?
An insurance company bases insurance premiums on the risks involved. To do this, they evaluate the situation to determine the risks, or potential for losses. The insurance company determines its rates on the results.
The steps you take today to lower your risks can not only help safeguard your business but may make you eligible for lower insurance rates. According to the Independent Insurance Agents of America, business owners should consider these steps:
* Maintain adequate lighting throughout your business premises.
* Keep electrical wiring, stairways, carpeting, flooring, elevators and escalators in good repair.
* Install a sprinkler system, smoke and fire alarms and adequate security devices.
* Keep only a small amount of cash in the cash register.
* Keep good records of inventory, accounts receivable and equipment purchases.
* Consider keeping a second set of records off-site, such as with your accountant, insurance agent or at home.
* Make sure your employees have good driving records.
* Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles, gloves and respirators.
* You should consider using the services of a risk manager. An outside consultant can advise you of any safety or environmental regulations you may have overlooked.
* Talk to your employees about safety practices.
You may also want to raise your deductible where appropriate to lower your premiums. How high to raise the deductible should be governed by how much you can afford to pay out of pocket. Be careful not to raise it so high that you cannot cover it should a loss occur.
An insurance company bases insurance premiums on the risks involved. To do this, they evaluate the situation to determine the risks, or potential for losses. The insurance company determines its rates on the results.
The steps you take today to lower your risks can not only help safeguard your business but may make you eligible for lower insurance rates. According to the Independent Insurance Agents of America, business owners should consider these steps:
* Maintain adequate lighting throughout your business premises.
* Keep electrical wiring, stairways, carpeting, flooring, elevators and escalators in good repair.
* Install a sprinkler system, smoke and fire alarms and adequate security devices.
* Keep only a small amount of cash in the cash register.
* Keep good records of inventory, accounts receivable and equipment purchases.
* Consider keeping a second set of records off-site, such as with your accountant, insurance agent or at home.
* Make sure your employees have good driving records.
* Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles, gloves and respirators.
* You should consider using the services of a risk manager. An outside consultant can advise you of any safety or environmental regulations you may have overlooked.
* Talk to your employees about safety practices.
You may also want to raise your deductible where appropriate to lower your premiums. How high to raise the deductible should be governed by how much you can afford to pay out of pocket. Be careful not to raise it so high that you cannot cover it should a loss occur.
Employment Practises and Liability
Standard commercial liability insurance generally doesn't cover this area. This is where EPLI comes into play. Employment Practices Liability Insurance was started during the 1980’s, for employers who are targets of lawsuits that are not covered under general liability. The big players in this field include harassment, discrimination, and wrongful termination suits. While the number of lawsuits in this area grows at a high rate, actual plaintiff victories are rare. With wide media involvement, accusations without proof or reason and frivolous claims are abundant. Today's insurance companies know that with specialized representation, claims can be defended with efficiency and insurance can be offered to businesses while retaining a profit. If you ever face one of these situations, the legal financial aspect can be devastating. EPLI will not only cover your finance, but may also provide legal counsel.
Insurance Audits
More often than not, a large majority of commercial insurance is based upon a percentage of your sales and/or payroll for the year that the policy is effective for. Soon after your policy expires, you will be asked to provide a voluntary report from your sales/payroll records, or a field auditor will physically come in and review your bookeeping. Basically, this indicates that the preliminary premium you are quoted is simply an estimate of your actual cost. You may encounter insurance agents who ?lowball? your premium to make it seem that you're getting a deal. Unless you can confirm the actual percentage and payroll or sales figures being used, you may find some time later after the service year that you owe a large additional premium. The insurer and agent have done their part and now it is your turn to pay up. Majority of the time, insurance companies collect these premiums with ease; on the legal side, it is in their favor. On the other side of the spectrum, your actual figures are less than what is used to determine your initial premium. In this case, you should seek a refund.
WCELI
Workers’ Compensation-Employer’s Liability: Someone who provides any type of service for your business who are ill, injured, or die in the course of providing those services may attempt to claim an employment relationship with you, for the purpose of collecting workers' compensation benefits. It may not end there- often times, the worse off the situation, the more likely someone related to the victim will back them in their claim. If you maintain Workers’ Comp-Employer’s Liability insurance, your policy will usually cover you when anyone claims an employment related injury.
Business Insurance Coverage
What is Business Insurance?
You will not find a successful business that doesn't carry business insurance. In today's society, it is absolutely mandatory to carry some form of it, regardless of size or location. It doesn't matter if you're performing out of your basement, or if you're a large corporation in a high-rise building. The range of business insurance coverage is huge, with issues from lawsuits to disgruntled employees. Everyday practices can backfire with enough force to cause a disabling blow to the company. Case in point: You send an employee, in his or her own vehicle, to make some deliveries at a post office down the street. In route, they are involved in an accident. Guess where the finger may, and often times points? If an incident occurs, and they are covered by auto insurance, the best coverage you get is equivalent to their range of coverage. If they do not carry any auto insurance, then it can be a world of hurt for the employer.
You will not find a successful business that doesn't carry business insurance. In today's society, it is absolutely mandatory to carry some form of it, regardless of size or location. It doesn't matter if you're performing out of your basement, or if you're a large corporation in a high-rise building. The range of business insurance coverage is huge, with issues from lawsuits to disgruntled employees. Everyday practices can backfire with enough force to cause a disabling blow to the company. Case in point: You send an employee, in his or her own vehicle, to make some deliveries at a post office down the street. In route, they are involved in an accident. Guess where the finger may, and often times points? If an incident occurs, and they are covered by auto insurance, the best coverage you get is equivalent to their range of coverage. If they do not carry any auto insurance, then it can be a world of hurt for the employer.
Home Office Insurance
A homeowners insurance policy is basically a contract you make with an insurance company. In exchange for your premium, the insurance company will pay for financial losses related to your home or your property during the period of the contract. The insurance company also agrees to pay for damages resulting from injuries or damage to other people for which you are held legally responsible. When you're searching for homeowners insurance, you'll want to shop for the type of policy that will fit your needs best, with adequate protection for your valuable possessions and supplemental coverage to protect against natural disasters that are not covered in your basic policy. If you're like most people, the owner of the mortgage of the home will require homeowners insurance.
Mobile Insurance
Mobile home insurance can vary from location to location, and from company to company. In general, basic policies involve the following: (some coverage may be optional or extra)
-General Protection
-Theft Protection
-Loss of use
-Personal Property Protection
-Liability
-Emergency Removal
-Trip/transport coverage
-Replacement cost
General coverage will cover most perils, including fire, and water damage (pipe damage). Personal property protection will cover your property against many types of losses, including the perils in your general mobile home coverage. Specifics will be found in your policy detail. Theft coverage will cover your personal property from burglary, as well as stolen financial items (credit cards, checks, and cash). Liability coverage protects your family and guests from bodily injury while on your property. Loss of use coverage will pay for expenses incurred while you are unable to live in your mobile home (food and lodging).
Emergency removal will pay a specified amount towards the cost of removing your mobile home, in a case where it is required due to a loss covered by the company. An example is if your area becomes extremely flooded, and transport is necessary to save the home. If a total loss to your property and mobile home occurs, replacement cost will cover the expenses to repair or replace the loss(es). Again, specific amounts and limits vary with each policy and company. Trip/transport covers your home while it is in transit.
Your individual needs will differ from another’s. Policy specifics, including limits, deductibles and premium will vary from person to person.
-General Protection
-Theft Protection
-Loss of use
-Personal Property Protection
-Liability
-Emergency Removal
-Trip/transport coverage
-Replacement cost
General coverage will cover most perils, including fire, and water damage (pipe damage). Personal property protection will cover your property against many types of losses, including the perils in your general mobile home coverage. Specifics will be found in your policy detail. Theft coverage will cover your personal property from burglary, as well as stolen financial items (credit cards, checks, and cash). Liability coverage protects your family and guests from bodily injury while on your property. Loss of use coverage will pay for expenses incurred while you are unable to live in your mobile home (food and lodging).
Emergency removal will pay a specified amount towards the cost of removing your mobile home, in a case where it is required due to a loss covered by the company. An example is if your area becomes extremely flooded, and transport is necessary to save the home. If a total loss to your property and mobile home occurs, replacement cost will cover the expenses to repair or replace the loss(es). Again, specific amounts and limits vary with each policy and company. Trip/transport covers your home while it is in transit.
Your individual needs will differ from another’s. Policy specifics, including limits, deductibles and premium will vary from person to person.
Earth quake Insurance
Something to keep in mind about this insurance is that a traditional homeowners insurance policy doesn't include coverage for earthquakes. If you live in a earthquake-prone area, this coverage may be a nice addition to your current policy.
In general, typical earthquake insurance covers the expenses that come with repair/replacement of damaged property. There are various options to choose from as well- including coverage to protect garages/accessory structures, personal contents within your home, as well as temporary living expenses if your home is destroyed.
Factors too keep in mind, which may affect your premium:
-Age of your home (older homes tend to cause a jump in premium)
-Is your home constructed of brick or wood?
Homes constructed of wood are better able to withstand the forces of an earthquake, and therefore you'll experience a lower premium
-The homes location
Your geographic area is rated in terms of a probability of a quake occurring; a higher probability will point to a higher overall premium.
How much is enough?
If/when you decide to purchase earthquake insurance, obtain enough coverage to shield the costs of a complete rebuild, in addition to your lost/damaged possessions. Base your figures on the actual cost of rebuild, as opposed to the market value of your current home/possessions.
In general, typical earthquake insurance covers the expenses that come with repair/replacement of damaged property. There are various options to choose from as well- including coverage to protect garages/accessory structures, personal contents within your home, as well as temporary living expenses if your home is destroyed.
Factors too keep in mind, which may affect your premium:
-Age of your home (older homes tend to cause a jump in premium)
-Is your home constructed of brick or wood?
Homes constructed of wood are better able to withstand the forces of an earthquake, and therefore you'll experience a lower premium
-The homes location
Your geographic area is rated in terms of a probability of a quake occurring; a higher probability will point to a higher overall premium.
How much is enough?
If/when you decide to purchase earthquake insurance, obtain enough coverage to shield the costs of a complete rebuild, in addition to your lost/damaged possessions. Base your figures on the actual cost of rebuild, as opposed to the market value of your current home/possessions.
Flood Insurance
Besides fire, flooding is the most common natural disaster. In order to legitimize a flood as occurring, two adjacent properties must be under water.
As with earthquake insurance, the basic homeowners insurance policy does not include flood damage. This coverage must be obtained from a provider that associates with the NFIP (National Flood Insurance Program). The NFIP is overseen by FEMA, which is the Federal Emergency Management Agency. FEMA, in turn, is run by the Federal Insurance Administration.
On average, the general policy is around $300/year. If you live in a lours' area, your premium can be as low as $100/year.
A standard flood insurance policy is purchased from the NFIP. Under a “write your own program”, a policyholder obtains insurance directly from a private insurance company, as opposed to going through the NFIP. Your premium will be the same amount, regardless of purchase through the government or private company.
Most insurers offer three basic plans of coverage:
-General property
-Residential Condo building association
-Dwellings
General property coverage will apply to apartments and business dwellings. Residential condo building association provides coverage for condominiums. Finally, your dwelling coverage applies to most residential homes. Each of the above has its individual limit in terms of coverage. When searching for a provider, focus on the service they provide, as opposed to the price. Since the federal government sets the rates, private insurance companies will attempt to gain your business through the service they can provide. One measure of quality service is the time it takes for a claim to be resolved. A worthy company will be able to pay off its claims in a timely fashion, as opposed to a competitor which may be struggling to process its claims within an acceptable window of time.
As with earthquake insurance, the basic homeowners insurance policy does not include flood damage. This coverage must be obtained from a provider that associates with the NFIP (National Flood Insurance Program). The NFIP is overseen by FEMA, which is the Federal Emergency Management Agency. FEMA, in turn, is run by the Federal Insurance Administration.
On average, the general policy is around $300/year. If you live in a lours' area, your premium can be as low as $100/year.
A standard flood insurance policy is purchased from the NFIP. Under a “write your own program”, a policyholder obtains insurance directly from a private insurance company, as opposed to going through the NFIP. Your premium will be the same amount, regardless of purchase through the government or private company.
Most insurers offer three basic plans of coverage:
-General property
-Residential Condo building association
-Dwellings
General property coverage will apply to apartments and business dwellings. Residential condo building association provides coverage for condominiums. Finally, your dwelling coverage applies to most residential homes. Each of the above has its individual limit in terms of coverage. When searching for a provider, focus on the service they provide, as opposed to the price. Since the federal government sets the rates, private insurance companies will attempt to gain your business through the service they can provide. One measure of quality service is the time it takes for a claim to be resolved. A worthy company will be able to pay off its claims in a timely fashion, as opposed to a competitor which may be struggling to process its claims within an acceptable window of time.
Renters Insurance
Basic renter insurance will provide coverage to you, in the event that your belongings are lost. The range of causes can include:
-fire
-water damage (broken pipes)
-burglary
This insurance will also cover damage caused by you, to the landlords property. For instance, if you host a party, and one of your guests breaks a hole in the wall.
Several things to consider before moving on:
Your inventory:
Take a look around your dwelling. Make note of all items of value, and especially of those items with high value/high replacement cost. It might be good to catalog all of your possessions in a table or spreadsheet for easy future reference.
Deductibles:
With any type of insurance policy, you'll have to decide how much your deductibles are going to be. In general, the higher the deductible, the lower your premium will be.
Replacement Cost and Actual Value:
Basic policies begin with coverage for the actual cash values of your covered belongings. Example: a 10 year old TV would be covered for its initial cost, minus the depreciated cost. A 10 year old TV is really not worth much today, so in the end, you wouldn't get much cash for it. If you have items like this, it may be better to opt for replacement cost coverage instead. With this coverage, you would be reimbursed for the total current cost of a new TV. A thing to remember is that replacement cost coverage is more expensive, but perhaps worth the extra cost.
Loss of use coverage:
If, for some reason, you aren't able to live within your apartment, your coverage will take care of expenses that are incurred through food and lodging.
Specialty Items:
If you have very valuable items that come with difficult replacement, you might want to consider a “floater”. Items that might be included: antiques, jewelry, special electronic equipment, etc. A floater policy is essentially a separate policy from your general coverage, and it is designed for these special items. Compared to the replacement cost of these items, this coverage is relatively inexpensive.
-fire
-water damage (broken pipes)
-burglary
This insurance will also cover damage caused by you, to the landlords property. For instance, if you host a party, and one of your guests breaks a hole in the wall.
Several things to consider before moving on:
Your inventory:
Take a look around your dwelling. Make note of all items of value, and especially of those items with high value/high replacement cost. It might be good to catalog all of your possessions in a table or spreadsheet for easy future reference.
Deductibles:
With any type of insurance policy, you'll have to decide how much your deductibles are going to be. In general, the higher the deductible, the lower your premium will be.
Replacement Cost and Actual Value:
Basic policies begin with coverage for the actual cash values of your covered belongings. Example: a 10 year old TV would be covered for its initial cost, minus the depreciated cost. A 10 year old TV is really not worth much today, so in the end, you wouldn't get much cash for it. If you have items like this, it may be better to opt for replacement cost coverage instead. With this coverage, you would be reimbursed for the total current cost of a new TV. A thing to remember is that replacement cost coverage is more expensive, but perhaps worth the extra cost.
Loss of use coverage:
If, for some reason, you aren't able to live within your apartment, your coverage will take care of expenses that are incurred through food and lodging.
Specialty Items:
If you have very valuable items that come with difficult replacement, you might want to consider a “floater”. Items that might be included: antiques, jewelry, special electronic equipment, etc. A floater policy is essentially a separate policy from your general coverage, and it is designed for these special items. Compared to the replacement cost of these items, this coverage is relatively inexpensive.
Home Insurance
Home insurance can be broken down into 7 basic types of plans. What differentiates them from one another are the types of circumstances they cover. The most popular plans today involve #2 and #3.
Basic homeowners insurance covers 11 types of disasters:
aircraft, wind/hail, explosion, riots/civil unrest, fire/lightning, vehicles, volcano eruptions, vandalism, theft, smoke, and self-damaging instances (part of building falls on itself, etc.).
This list can be expanded to include 6 more disasters:
falling objects, water damage (3 sub categories), snow/sleet/ice, and electrical surge damage.
1. This is the basic homeowners insurance that covers your home and property against losses due to the 11 disasters listed above.
2. This plan includes #1, in addition to more specific disaster circumstances: snow, falling objects (like trees), water damage (i.e. washing machine overflows, or dishwasher breaks), and electrical damage (power surge).
3.This plan includes extended/specialty items, in addition to all of the above. The only disasters that this doesn't cover are flood, earthquake, war, and nuclear blasts.
4. Renters insurance coverage. This type of insurance will protect your personal property for the above listed items.
5. Complete risk coverage for the building and property.
6. Condominium coverage. This type of policy covers personal property from the above disasters (all 17).
7. This policy is designed for older homes with historic value. Coverage includes protection from the basic 11 disasters listed above. Under this plan, coverage is limited to repairs or cash values of the items involved. The rebuilding/replacement cost is not covered in this, because some aspects of the home (historic significance) can make these costs higher than current market value.
There are variations that can be had with all of the above plans. There are special policies that can be used to cover mobile homes. Opposite of renters insurance, which only covers the renters property, there is landlord insurance. This covers the actual dwelling, but not the property within.
Basic homeowners insurance covers 11 types of disasters:
aircraft, wind/hail, explosion, riots/civil unrest, fire/lightning, vehicles, volcano eruptions, vandalism, theft, smoke, and self-damaging instances (part of building falls on itself, etc.).
This list can be expanded to include 6 more disasters:
falling objects, water damage (3 sub categories), snow/sleet/ice, and electrical surge damage.
1. This is the basic homeowners insurance that covers your home and property against losses due to the 11 disasters listed above.
2. This plan includes #1, in addition to more specific disaster circumstances: snow, falling objects (like trees), water damage (i.e. washing machine overflows, or dishwasher breaks), and electrical damage (power surge).
3.This plan includes extended/specialty items, in addition to all of the above. The only disasters that this doesn't cover are flood, earthquake, war, and nuclear blasts.
4. Renters insurance coverage. This type of insurance will protect your personal property for the above listed items.
5. Complete risk coverage for the building and property.
6. Condominium coverage. This type of policy covers personal property from the above disasters (all 17).
7. This policy is designed for older homes with historic value. Coverage includes protection from the basic 11 disasters listed above. Under this plan, coverage is limited to repairs or cash values of the items involved. The rebuilding/replacement cost is not covered in this, because some aspects of the home (historic significance) can make these costs higher than current market value.
There are variations that can be had with all of the above plans. There are special policies that can be used to cover mobile homes. Opposite of renters insurance, which only covers the renters property, there is landlord insurance. This covers the actual dwelling, but not the property within.
Home Insurance
A homeowners insurance policy is basically a contract you make with an insurance company. In exchange for your premium, the insurance company will pay for financial losses related to your home or your property during the period of the contract. The insurance company also agrees to pay for damages resulting from injuries or damage to other people for which you are held legally responsible. When you're searching for homeowners insurance, you'll want to shop for the type of policy that will fit your needs best, with adequate protection for your valuable possessions and supplemental coverage to protect against natural disasters that are not covered in your basic policy. If you're like most people, the owner of the mortgage of the home will require homeowners insurance.
WaterCraft and Boat Insurance
If you're an avid watercraft enthusiast with some nice toys in your garage, you might want to check into watercraft insurance. Don't assume that your craft is covered under homeowners insurance, because in most cases, they aren't. First, know your watercraft! Fully understand all operational aspects and characteristics before heading out onto the open water. Your personal watercraft is considered a powerboat, so you need to obey the rules governed for powerboats by the Coast Guard and other marine authorities. Your local waterways sometimes have their own guidelines for use, so get to know and understand them as well.
Who/What Is Covered?
It comes down the policy specifics, but in most cases, the policy will cover you, your spouse, or any other household member that have permission to ride the craft. The policy will pay for bodily injury or other property damages caused by the craft. Various available coverage includes medical payments, physical damage, uninsured boater, and personal effects.
Medical Payments
This extra coverage will pay for the cost of necessary medical treatment that results from an accident involving the watercraft.
Physical Damage
This will cover the cost of repair to the watercraft if you are in a collision with another craft or other object. In most cases, you'll also be covered in cases of theft, vandalism, or fire.
Uninsured Boater
This coverage pays for medical treatment that results from an accident with another boater who does not have insurance.
Personal Effects
This optional coverage will cover some of the various common contents kept within a watercraft. These may include cameras, binoculars, clothing, or assorted accessories.
QUICK TIP
If you haven't already, look into taking a watercraft safety course. Not only will it make you a more proficient rider, but you'll receive a premium discount from most providers. It can range anywhere from 10-15% off.
Who/What Is Covered?
It comes down the policy specifics, but in most cases, the policy will cover you, your spouse, or any other household member that have permission to ride the craft. The policy will pay for bodily injury or other property damages caused by the craft. Various available coverage includes medical payments, physical damage, uninsured boater, and personal effects.
Medical Payments
This extra coverage will pay for the cost of necessary medical treatment that results from an accident involving the watercraft.
Physical Damage
This will cover the cost of repair to the watercraft if you are in a collision with another craft or other object. In most cases, you'll also be covered in cases of theft, vandalism, or fire.
Uninsured Boater
This coverage pays for medical treatment that results from an accident with another boater who does not have insurance.
Personal Effects
This optional coverage will cover some of the various common contents kept within a watercraft. These may include cameras, binoculars, clothing, or assorted accessories.
QUICK TIP
If you haven't already, look into taking a watercraft safety course. Not only will it make you a more proficient rider, but you'll receive a premium discount from most providers. It can range anywhere from 10-15% off.
RV Insurance
Many RV enthusiasts opt to use their ordinary automobile insurance company to provide insurance for their recreational vehicle. In many cases, this does not provide sufficient coverage. In many cases, claims that occur when the RV is under an auto policy cause heartache and consume large amounts of time.
Aspects of an RV that can cause the problems include the internal components, including appliances and plumbing. In most cases, the owner ends up paying for the replacement or repair of these various items.
Insurance that is specialized for your RV picks up where the auto policy leaves off. Most policies that specialize in RV protection offer the following:
Collision
Covers damage to your motorhome and all permanent components which may result from collision with another object.
Un-insured/Under-insured Motorist
Coverage to specified limits for bodily injury caused by an un-insured or under-insured motorist.
Comprehensive
Coverage for damage due to acts of nature- wind, water, vandalism, theft, and fire.
Bodily Injury/Property Damage
Coverage for legal liability
SPECIALIZED COVERAGE (varies with each company)
Full Timer Coverage
Designed for those individuals who spend most of their time on the road, or live in their RV and do not have a permanent residence.
Personal
Coverage for valuables located inside your vehicle
Towing and Labor
Most auto policies do not provide enough to cover towing expenses, because they are not designed for RV's. With coverage meant for your recreational vehicle, you can have peace of mind if your rig breaks down.
Total Loss
This coverage provides for a replacement vehicle if your motorhome is completely destroyed by some natural or man made disaster. The replacement vehicle will usually be a new vehicle of the same model year as your original.
Aspects of an RV that can cause the problems include the internal components, including appliances and plumbing. In most cases, the owner ends up paying for the replacement or repair of these various items.
Insurance that is specialized for your RV picks up where the auto policy leaves off. Most policies that specialize in RV protection offer the following:
Collision
Covers damage to your motorhome and all permanent components which may result from collision with another object.
Un-insured/Under-insured Motorist
Coverage to specified limits for bodily injury caused by an un-insured or under-insured motorist.
Comprehensive
Coverage for damage due to acts of nature- wind, water, vandalism, theft, and fire.
Bodily Injury/Property Damage
Coverage for legal liability
SPECIALIZED COVERAGE (varies with each company)
Full Timer Coverage
Designed for those individuals who spend most of their time on the road, or live in their RV and do not have a permanent residence.
Personal
Coverage for valuables located inside your vehicle
Towing and Labor
Most auto policies do not provide enough to cover towing expenses, because they are not designed for RV's. With coverage meant for your recreational vehicle, you can have peace of mind if your rig breaks down.
Total Loss
This coverage provides for a replacement vehicle if your motorhome is completely destroyed by some natural or man made disaster. The replacement vehicle will usually be a new vehicle of the same model year as your original.
Motor Cycle Insurance information and tips
The first step in purchasing motorcycle insurance is to contact your agent or broker with whom you currently have auto or home insurance. In several states, like California, you must have insurance coverage before you can bring your new bike home from the dealership. If your current insurance company does not cover motorcycles, talk with friends or others who already have coverage. This way, you'll be able to work from a good list of recommended agencies to start out. You may also gain information through your salesperson and motorcycle magazines. Be cautious with your dealership though; they don't always work with the best insurance companies. Don't become pushed into something you're not comfortable with.
HOT TIP!
If you are a first time, or even an experienced rider who has not taken a motorcycling safety course, put it on your “to do” list. Not only will it sharpen your street survival skills, but it will also bring you a discount on your insurance premium.
Things To Keep In Mind
Your premium will be based upon several key factors involved with your motorcycling situation. They include, but are not limited to:
-The motorcycle engine displacement size in cubic centimeters (cc)
-Type of motorcycle
-Brand of motorcycle
-Your age
-Your driving record
-Your driving experience
-Is the bike garaged?
-Location
-Number of intended miles driven weekly
Majority of the time, you'll receive a higher premium with a larger displacement engine. These bikes are more expensive and provide higher performance.
The type of motorcycle you plan on insuring also affects premium price. A 500 cc cruiser will be cheaper to insure than a 500 cc sport bike. Sport bikes usually have fairings (plastic covers that shroud the engine), and other various pieces of bodywork that can make them expensive to repair in a crash or accident. The make (brand) of your motorcycle is not such a big factor, but it is taken into consideration. A brand with models few and far between will run higher than a common brand. Your age will affect your premium. Older drivers tend to experience cheaper rates than their younger counterpart, on the same motorcycle. Statistics show that riders under the age of 25 tend to be involved in the most accidents. Driving record and experience both affect your premium. If your record is blemished with tickets and accidents, then expect to pay more. Experience tends to go hand in hand with your age. Will your motorcycle be garaged, or parked out along the street? If you plan on leaving it out on the street, then you'll experience a higher rate than if it is garaged. Leaving it parked along the street leaves the bike open to theft and accidents. If you live in a big city, your rates may slightly be higher than if you live in a rural area. Will the bike be your daily driver, or used for leisure? The mileage you tend to put on the bike on a weekly basis will push your premium up or down. If the motorcycle is your main mode of transportation, expect a higher rate.
HOT TIP!
If you are a first time, or even an experienced rider who has not taken a motorcycling safety course, put it on your “to do” list. Not only will it sharpen your street survival skills, but it will also bring you a discount on your insurance premium.
Things To Keep In Mind
Your premium will be based upon several key factors involved with your motorcycling situation. They include, but are not limited to:
-The motorcycle engine displacement size in cubic centimeters (cc)
-Type of motorcycle
-Brand of motorcycle
-Your age
-Your driving record
-Your driving experience
-Is the bike garaged?
-Location
-Number of intended miles driven weekly
Majority of the time, you'll receive a higher premium with a larger displacement engine. These bikes are more expensive and provide higher performance.
The type of motorcycle you plan on insuring also affects premium price. A 500 cc cruiser will be cheaper to insure than a 500 cc sport bike. Sport bikes usually have fairings (plastic covers that shroud the engine), and other various pieces of bodywork that can make them expensive to repair in a crash or accident. The make (brand) of your motorcycle is not such a big factor, but it is taken into consideration. A brand with models few and far between will run higher than a common brand. Your age will affect your premium. Older drivers tend to experience cheaper rates than their younger counterpart, on the same motorcycle. Statistics show that riders under the age of 25 tend to be involved in the most accidents. Driving record and experience both affect your premium. If your record is blemished with tickets and accidents, then expect to pay more. Experience tends to go hand in hand with your age. Will your motorcycle be garaged, or parked out along the street? If you plan on leaving it out on the street, then you'll experience a higher rate than if it is garaged. Leaving it parked along the street leaves the bike open to theft and accidents. If you live in a big city, your rates may slightly be higher than if you live in a rural area. Will the bike be your daily driver, or used for leisure? The mileage you tend to put on the bike on a weekly basis will push your premium up or down. If the motorcycle is your main mode of transportation, expect a higher rate.
Filling An Insurance Claim
Before You File a Claim
Be sure you know the answers to these questions before you have to file a claim:
1. How much liability insurance do you have? This coverage pays for damage you cause to another vehicle or injuries to other people.
2. Does your state have no-fault insurance? What coverages does it provide? (See No-Fault Insurance.)
3. What is the deductible for your collision and/or comprehensive coverage?
When You File a Claim
If your car is involved in an accident, if it is damaged by fire, flood or vandalism, or if it is stolen, here are the steps to filing an insurance claim:
1. Phone your car insurance company or local company representative.
Do it as soon as possible, even if you're far from home and even if someone else caused the accident. Ask your company how to proceed and what forms or documents will be needed to support your claim, such as medical and auto repair bills and a copy of the police report.
2. Supply the information your insurer needs.
Normally, written notice of the accident or loss must be given to your insurance company as soon as it is reasonably possible. The notice should have:
your name
the names and addresses of all persons involved
the hour, date, place and facts of the accident or loss, and
the names and addresses of witnesses
Cooperate with your insurance company in its investigation, settlement or defense of any claim, and turn over to the company immediately copies of any legal papers you receive in connection with your loss. Make sure you keep the originals.
Your insurer will represent you if a claim is brought against you and attempt to resolve that claim or defend you if you're sued according to the terms and conditions of your policy.
3. Keep records of your expenses.
Expenses you incur as a result of an automobile accident may be reimbursed under your policy. For example, a no-fault insurance policy will usually pay your medical expenses, and possibly other costs such as lost wages or at least part of your costs if you have to hire a temporary housekeeper.
4. Keep copies of your paperwork.
Store copies of all your paperwork in your own files. You may need to refer to it later.
Be sure you know the answers to these questions before you have to file a claim:
1. How much liability insurance do you have? This coverage pays for damage you cause to another vehicle or injuries to other people.
2. Does your state have no-fault insurance? What coverages does it provide? (See No-Fault Insurance.)
3. What is the deductible for your collision and/or comprehensive coverage?
When You File a Claim
If your car is involved in an accident, if it is damaged by fire, flood or vandalism, or if it is stolen, here are the steps to filing an insurance claim:
1. Phone your car insurance company or local company representative.
Do it as soon as possible, even if you're far from home and even if someone else caused the accident. Ask your company how to proceed and what forms or documents will be needed to support your claim, such as medical and auto repair bills and a copy of the police report.
2. Supply the information your insurer needs.
Normally, written notice of the accident or loss must be given to your insurance company as soon as it is reasonably possible. The notice should have:
your name
the names and addresses of all persons involved
the hour, date, place and facts of the accident or loss, and
the names and addresses of witnesses
Cooperate with your insurance company in its investigation, settlement or defense of any claim, and turn over to the company immediately copies of any legal papers you receive in connection with your loss. Make sure you keep the originals.
Your insurer will represent you if a claim is brought against you and attempt to resolve that claim or defend you if you're sued according to the terms and conditions of your policy.
3. Keep records of your expenses.
Expenses you incur as a result of an automobile accident may be reimbursed under your policy. For example, a no-fault insurance policy will usually pay your medical expenses, and possibly other costs such as lost wages or at least part of your costs if you have to hire a temporary housekeeper.
4. Keep copies of your paperwork.
Store copies of all your paperwork in your own files. You may need to refer to it later.
13 Steps if an Accident Occurs
Unfortunately, bad things do happen, no matter how careful we are. Think through these 13 steps now. If a car accident happens, you'll know what to do.
1. Promptly notify the police and call for an ambulance if anyone is hurt.
2. Cooperate with the authorities who come to the scene.
3. Take reasonable steps to protect your vehicle from another loss. Consider moving it out of the flow of traffic.
4. Try to record everything on the scene. Your notes should include details of the accident, identification of the autos and people involved, and the names and badge numbers of all emergency personnel. Take pictures if possible.
5. Insist on breath tests if you suspect drugs or alcohol are involved.
6. Do not accept money. Do not accept fault. Do not agree to forget about the auto accident.
7. Get copies of all police reports.
8. Have the insurance company inspect and appraise the damage before any steps are taken to repair it.
9. Cooperate with the auto insurance carrier representative in the investigation, defense or settlement.
10. Send your car insurance carrier copies of any notice or legal papers received in connection with the accident as soon as possible. Make sure you keep the originals.
11. If you are injured, submit to physical examinations by physicians selected by the insurance carrier as often as they reasonably require. (The insurance carrier pays the cost of these examinations.)
12. Give your authorization for the insurance carrier to obtain medical reports and other pertinent records.
13. File a claim.
1. Promptly notify the police and call for an ambulance if anyone is hurt.
2. Cooperate with the authorities who come to the scene.
3. Take reasonable steps to protect your vehicle from another loss. Consider moving it out of the flow of traffic.
4. Try to record everything on the scene. Your notes should include details of the accident, identification of the autos and people involved, and the names and badge numbers of all emergency personnel. Take pictures if possible.
5. Insist on breath tests if you suspect drugs or alcohol are involved.
6. Do not accept money. Do not accept fault. Do not agree to forget about the auto accident.
7. Get copies of all police reports.
8. Have the insurance company inspect and appraise the damage before any steps are taken to repair it.
9. Cooperate with the auto insurance carrier representative in the investigation, defense or settlement.
10. Send your car insurance carrier copies of any notice or legal papers received in connection with the accident as soon as possible. Make sure you keep the originals.
11. If you are injured, submit to physical examinations by physicians selected by the insurance carrier as often as they reasonably require. (The insurance carrier pays the cost of these examinations.)
12. Give your authorization for the insurance carrier to obtain medical reports and other pertinent records.
13. File a claim.
Auto-Vehical Insurance
Auto Insurance Coverages Explained
An auto insurance policy actually consists of several different coverages. Required in most states, it is something all drivers must posses.
Liability Insurance
This coverage is the basis of all auto insurance policies, and the minimum required in most states. If you're found at fault in an accident, liability insurance pays for the injury and property damage expenses of the third party involved in the accident. Property damage pays for the replacement or repair of anything that was damaged. Bodily injury expenses cover lost wages and medical bills. If you cause a major accident, your current or potential coverage may not cover you sufficiently. It is a safe bet to buy more than the minimum required by your state.
Collision
If you're found at fault in an accident, collision coverage will cover expenses needed to repair your vehicle. Collision coverage is usually the most expensive component of an auto insurance policy, although it isn't required. Insurance companies might proclaim your car a “total loss” if the repairs exceed the market value of the car. When this occurs, the insurance company will pay you the actual cash value, minus the deductable. From there your car is off to an auction where it will be sold for parts or scrap.
Replacement Cost
The amount required to replace your car or repair damages without considering depreciation.
Depreciation
Decrease in value because of age/wear on vehicle.
Actual Cash Value (ACV)
The value of your car when it is damaged or destroyed. Insurance companies figure the ACV by subtracting the depreciation from the replacement cost.
Tip
In most cases, it’s better to choose replacement cost coverage. Although higher in price, the protection may be worth it.
Comprehensive
Comprehensive coverage will pay for damages to your vehicle that were not caused by an accident. This includes fire, vandalism, theft, natural disaster, and even animals. Depending on the damage, the insurance company will pay the cars worth right before the incident. This is also optional coverage.
An auto insurance policy actually consists of several different coverages. Required in most states, it is something all drivers must posses.
Liability Insurance
This coverage is the basis of all auto insurance policies, and the minimum required in most states. If you're found at fault in an accident, liability insurance pays for the injury and property damage expenses of the third party involved in the accident. Property damage pays for the replacement or repair of anything that was damaged. Bodily injury expenses cover lost wages and medical bills. If you cause a major accident, your current or potential coverage may not cover you sufficiently. It is a safe bet to buy more than the minimum required by your state.
Collision
If you're found at fault in an accident, collision coverage will cover expenses needed to repair your vehicle. Collision coverage is usually the most expensive component of an auto insurance policy, although it isn't required. Insurance companies might proclaim your car a “total loss” if the repairs exceed the market value of the car. When this occurs, the insurance company will pay you the actual cash value, minus the deductable. From there your car is off to an auction where it will be sold for parts or scrap.
Replacement Cost
The amount required to replace your car or repair damages without considering depreciation.
Depreciation
Decrease in value because of age/wear on vehicle.
Actual Cash Value (ACV)
The value of your car when it is damaged or destroyed. Insurance companies figure the ACV by subtracting the depreciation from the replacement cost.
Tip
In most cases, it’s better to choose replacement cost coverage. Although higher in price, the protection may be worth it.
Comprehensive
Comprehensive coverage will pay for damages to your vehicle that were not caused by an accident. This includes fire, vandalism, theft, natural disaster, and even animals. Depending on the damage, the insurance company will pay the cars worth right before the incident. This is also optional coverage.
Long Term Care Insurance Information
Long-term care involves a variety of services for people with a prolonged physical illness, disability or cognitive disorder. Long-term care is not one service, but various different services aimed at helping people with chronic conditions compensate for limitations in their ability to function independently. Long-term care differs from traditional medical care in that it is designed to assist a person to maintain his or her level of functioning; traditional medical care or service is designed to rehabilitate or correct certain medical problems that the individual experiences.
Types of Long-Term Care
Following are brief descriptions of the major types of long-term care:
Nursing homes offer care to people who cannot be cared for at home or in the community. They provide skilled nursing, rehabilitation services, meals, activities, assist with daily living, and supervision. Many nursing homes also offer temporary or periodic care.
Assisted living provides 24-hour supervision, assistance, meals, and health care services in a home-like setting. Services include help with eating, bathing, dressing, toileting, medicine, transportation, laundry, and housekeeping. Social and recreational activities also are provided.
Home care can be given in your own home by family members, friends, volunteers, or paid professionals. This type of care can range from help with shopping to nursing care. Some short-term, skilled home care (provided by a nurse or therapist) is covered by Medicare and is called home health care. Another type that can be given at home is hospice care for terminally ill people.
Community services are services that can include adult day care, meal programs, senior centers, transportation, and other services. These can help people who are cared for at home-and their families. For example, adult day care services provide a range of health, social, and related support services in a protective setting during the day. This can help adults with impairments such as Alzheimer's disease continue to live in the community. This can also provide a necessary break for those friends or family members who provide majority of the care and support for the individual.
Supportive housing programs offer low-cost housing to older people with low to moderate incomes. The Federal Department of Housing and Urban Development (HUD) and State or local governments often develop such housing programs. A number of these facilities offer help with meals and tasks such as housekeeping, shopping, and laundry. Residents usually live on their own.
Continuing care retirement communities (CCRC) provide a range of services and care based on what each resident needs over time. Care usually is provided in one of three main stages: independent living, assisted living, and skilled nursing, depending on the situation.
Types of Long-Term Care
Following are brief descriptions of the major types of long-term care:
Nursing homes offer care to people who cannot be cared for at home or in the community. They provide skilled nursing, rehabilitation services, meals, activities, assist with daily living, and supervision. Many nursing homes also offer temporary or periodic care.
Assisted living provides 24-hour supervision, assistance, meals, and health care services in a home-like setting. Services include help with eating, bathing, dressing, toileting, medicine, transportation, laundry, and housekeeping. Social and recreational activities also are provided.
Home care can be given in your own home by family members, friends, volunteers, or paid professionals. This type of care can range from help with shopping to nursing care. Some short-term, skilled home care (provided by a nurse or therapist) is covered by Medicare and is called home health care. Another type that can be given at home is hospice care for terminally ill people.
Community services are services that can include adult day care, meal programs, senior centers, transportation, and other services. These can help people who are cared for at home-and their families. For example, adult day care services provide a range of health, social, and related support services in a protective setting during the day. This can help adults with impairments such as Alzheimer's disease continue to live in the community. This can also provide a necessary break for those friends or family members who provide majority of the care and support for the individual.
Supportive housing programs offer low-cost housing to older people with low to moderate incomes. The Federal Department of Housing and Urban Development (HUD) and State or local governments often develop such housing programs. A number of these facilities offer help with meals and tasks such as housekeeping, shopping, and laundry. Residents usually live on their own.
Continuing care retirement communities (CCRC) provide a range of services and care based on what each resident needs over time. Care usually is provided in one of three main stages: independent living, assisted living, and skilled nursing, depending on the situation.
Disability Insurance Information
Disability income coverage replaces income lost by an employee when injury or illness prevents the individual from working. Generally, disability income policies are divided into 2 types:
-Those that provide benefits for up to two years (short-term)
-Those that provide benefits for a longer period, usually for at least five years, to age 65, or for a life-time (long-term).
When provided on a group basis, the benefits are usually integrated with benefits from Social Security and other public programs. The entire range of benefits from these sources generally is set at a level that does not exceed 60 percent of earnings.
Individual disability income policies usually pay a fixed dollar amount of coverage. This amount may be greater for those who are turned down by Social Security. Individual disability income policies take many forms and may be designed to fit the special needs of the individual policy owner.
-Those that provide benefits for up to two years (short-term)
-Those that provide benefits for a longer period, usually for at least five years, to age 65, or for a life-time (long-term).
When provided on a group basis, the benefits are usually integrated with benefits from Social Security and other public programs. The entire range of benefits from these sources generally is set at a level that does not exceed 60 percent of earnings.
Individual disability income policies usually pay a fixed dollar amount of coverage. This amount may be greater for those who are turned down by Social Security. Individual disability income policies take many forms and may be designed to fit the special needs of the individual policy owner.
Indemnity Health Insurance
Health insurance coverage can be categorized into 2 major categories:
-Indemnity plans
-manage care plans
Indemnity plans
An indemnity plan reimburses you for your medical expenses, regardless of who provides the service. In some situations/types of coverage, this amount may be limited. The coverage offered by most insurers is in the form of an indemnity plan.
Different plans use different methods for determining how much you will be reimbursed for your medical expenses. Below are some common methods of reimbursement:
Reimbursement--percentage of actual charges
Under this plan, the insurer pays a percentage of the actual charges for covered procedures and services, regardless of how much they cost. A common reimbursement percentage is 80%. This has the same effect as a 20% co-payment.
Reimbursement--actual charges
Under this type of plan, the insurer will reimburse you for the actual cost of specified procedures or services, regardless of how much that cost may be.
Indemnity
Under this type of plan, the insurer pays a specified amount per day for a specified maximum number of days. Although your reimbursement amount does not depend on the actual cost of your care, your reimbursement will never exceed your expenses.
-Indemnity plans
-manage care plans
Indemnity plans
An indemnity plan reimburses you for your medical expenses, regardless of who provides the service. In some situations/types of coverage, this amount may be limited. The coverage offered by most insurers is in the form of an indemnity plan.
Different plans use different methods for determining how much you will be reimbursed for your medical expenses. Below are some common methods of reimbursement:
Reimbursement--percentage of actual charges
Under this plan, the insurer pays a percentage of the actual charges for covered procedures and services, regardless of how much they cost. A common reimbursement percentage is 80%. This has the same effect as a 20% co-payment.
Reimbursement--actual charges
Under this type of plan, the insurer will reimburse you for the actual cost of specified procedures or services, regardless of how much that cost may be.
Indemnity
Under this type of plan, the insurer pays a specified amount per day for a specified maximum number of days. Although your reimbursement amount does not depend on the actual cost of your care, your reimbursement will never exceed your expenses.
Medicore Health Insurance
Medicare is a federal program that provides health insurance to retired individuals, regardless of medical condition. Any individual who is receiving Social Security benefits will automatically be enrolled in Medicare at age 65 (age of eligibility). If you are not receiving Social Security benefits prior to age 65, you will be automatically enrolled when you apply for benefits at age 65. If you decide to delay retirement until after age 65, remember to enroll in Medicare at age 65 anyway, because your enrollment won't be automatic. Individuals who will be automatically enrolled in Medicare will receive notification by mail from the Social Security Administration, usually several months before your 65th birthday. Most people become eligible for Medicare upon reaching age 65 and becoming eligible for Social Security retirement benefits. Additionally, you may be eligible if you are disabled or have end-stage renal disease.
Coverage
Medicare coverage consists of two parts--Medicare Part A (hospital insurance) and Medicare Part B (medical insurance). Medicare Part C (Medicare+Choice) is a program that allows you to choose among several types of health care plans.
Medicare Part A (hospital insurance)
Generally called "hospital insurance", Part A covers services associated with inpatient hospital care (i.e., the costs associated with an overnight stay in a hospital, skilled nursing facility, or psychiatric hospital, such as charges for the hospital room, meals, and nursing services). Part A also covers hospice care and home health care.
Medicare Part B (medical insurance)
Generally called "medical insurance", Part B covers other medical care. Physician care--whether it was received while you were an inpatient at a hospital, at a doctors office, or as an outpatient at a hospital or other health care facility--is covered under Part B. Also covered are laboratory tests, and physical therapy or rehabilitation services, and ambulance service.
Medicare Part C (Medicare+Choice)
The 1997 Balanced Budget Act expanded the types of private health care plans that may offer Medicare benefits to include medical savings accounts, managed care plans, and private fee-for-service plans. The new Medicare Part C programs are in addition to the fee-for-service options available under Medicare Parts A and B.
Coverage
Medicare coverage consists of two parts--Medicare Part A (hospital insurance) and Medicare Part B (medical insurance). Medicare Part C (Medicare+Choice) is a program that allows you to choose among several types of health care plans.
Medicare Part A (hospital insurance)
Generally called "hospital insurance", Part A covers services associated with inpatient hospital care (i.e., the costs associated with an overnight stay in a hospital, skilled nursing facility, or psychiatric hospital, such as charges for the hospital room, meals, and nursing services). Part A also covers hospice care and home health care.
Medicare Part B (medical insurance)
Generally called "medical insurance", Part B covers other medical care. Physician care--whether it was received while you were an inpatient at a hospital, at a doctors office, or as an outpatient at a hospital or other health care facility--is covered under Part B. Also covered are laboratory tests, and physical therapy or rehabilitation services, and ambulance service.
Medicare Part C (Medicare+Choice)
The 1997 Balanced Budget Act expanded the types of private health care plans that may offer Medicare benefits to include medical savings accounts, managed care plans, and private fee-for-service plans. The new Medicare Part C programs are in addition to the fee-for-service options available under Medicare Parts A and B.
COBRA health Insurance
COBRA is an acronym, which stands for Consolidated Omnibus Budget Reconciliation Act of 1985. Under this federal law, you are provided with a ?back-up? system in a time of need, when you aren't currently covered by insurance for a variety of reasons.
This law was put in place to protect your right to continued health insurance, after a circumstance occurs which would otherwise leave you without coverage.
Some of those circumstances
-involuntary loss of employment (lay off, downsizing, terminated)
-voluntary termination of employment (you quit)
-marital separation or divorce
-if you were a dependent on your guardian/parent 's policy, and you become ineligible (no longer dependent), due to age or no longer attending college
-if your spouse (who is the employee with the insurance coverage) dies
COBRA allows you to have the same coverage you had prior to the event/circumstance. The one thing to take note of is that your continued health benefits will only last for a specific amount of time, and will be entirely at your own cost. Under most cases, the time frame for continued coverage lasts 18-36 months.
A quick example
You are currently employed, and your company pays for 50% of your insurance premium. You are included in a downsizing effort by your employer, and receive notice of termination. You can opt for COBRA, which will allow you to continue coverage. Instead of the 50% you had prior to termination, you will now be faced with 100% of the insurance premium cost. In some cases, this might be even higher, with the added cost going to administrative fees charged by your ex-employer. As mentioned above, the time frame can be anywhere from 18-36 months.
This law was put in place to protect your right to continued health insurance, after a circumstance occurs which would otherwise leave you without coverage.
Some of those circumstances
-involuntary loss of employment (lay off, downsizing, terminated)
-voluntary termination of employment (you quit)
-marital separation or divorce
-if you were a dependent on your guardian/parent 's policy, and you become ineligible (no longer dependent), due to age or no longer attending college
-if your spouse (who is the employee with the insurance coverage) dies
COBRA allows you to have the same coverage you had prior to the event/circumstance. The one thing to take note of is that your continued health benefits will only last for a specific amount of time, and will be entirely at your own cost. Under most cases, the time frame for continued coverage lasts 18-36 months.
A quick example
You are currently employed, and your company pays for 50% of your insurance premium. You are included in a downsizing effort by your employer, and receive notice of termination. You can opt for COBRA, which will allow you to continue coverage. Instead of the 50% you had prior to termination, you will now be faced with 100% of the insurance premium cost. In some cases, this might be even higher, with the added cost going to administrative fees charged by your ex-employer. As mentioned above, the time frame can be anywhere from 18-36 months.
Hospital Health Insurance
$100? $200? $300? How Much Could You SAVE on Health Insurance?
Search for an Agent in Your Local Area
1. Select Health Insurance Individuals/families Senior/ Medicare Plans Group Health - Businesses Long Term Care Disability Dental Plans Vision Saving Plans Rx Savings Plans 2. Select State Alaska Alabama Arkansas Arizona California Colorado Connecticut DC Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming
Hospital expense coverage provides specific benefits for daily hospital room and board and usual hospital services and supplies during hospital stays.
Hospital/medical coverage may be extended in one of three ways
--A policy usually sold in combination with a physicians or surgical expense policy that provides benefits for both surgical operations and doctors in-hospital visits
--A major medical policy that provides broad and substantial coverage for many types of medical expenses
--A combination of hospital-physician-surgical coverage plus a supplemental major medical policy.
Room and board benefits are usually stated in one of two ways
--Indemnity plans reimburse for the actual room-and-board charge up to a specified maximum dollar amount per day for hospital confinement.
--A service-type benefit that pays the full cost of a “semi-private” room-and-board charge.
Search for an Agent in Your Local Area
1. Select Health Insurance Individuals/families Senior/ Medicare Plans Group Health - Businesses Long Term Care Disability Dental Plans Vision Saving Plans Rx Savings Plans 2. Select State Alaska Alabama Arkansas Arizona California Colorado Connecticut DC Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming
Hospital expense coverage provides specific benefits for daily hospital room and board and usual hospital services and supplies during hospital stays.
Hospital/medical coverage may be extended in one of three ways
--A policy usually sold in combination with a physicians or surgical expense policy that provides benefits for both surgical operations and doctors in-hospital visits
--A major medical policy that provides broad and substantial coverage for many types of medical expenses
--A combination of hospital-physician-surgical coverage plus a supplemental major medical policy.
Room and board benefits are usually stated in one of two ways
--Indemnity plans reimburse for the actual room-and-board charge up to a specified maximum dollar amount per day for hospital confinement.
--A service-type benefit that pays the full cost of a “semi-private” room-and-board charge.
Managed health Insurance
Managed care plans fall into 3 basic types plans:
-HMO
-PPO
-POS
A common trait among managed care plans is the incentive (usually, a lower premium) for the insured to stay within a specified network of health care providers.
Health Maintenance Organizations (HMOs)
HMOs provide medical treatment on a prepaid basis, which means that HMO members pay a fixed monthly fee, regardless of how much medical care is needed in a time period (usually a monthly basis). In return for this fee, most HMOs provide a wide variety of medical services, from office visits to hospitalization and surgery. There are exceptions but most HMO members must receive their medical treatment from those within the network.
Preferred Provider Organizations (PPOs)
A PPO is made up of doctors and or hospitals that provide medical service only to a specific group. Rather than prepaying for medical care, PPO members pay for services as they are provided. The PPO sponsor (usually an employer or insurance company) usually reimburses the member for the cost of the treatment, minus any co-payment fee. In some cases, the doctor may submit the bill directly to the insurance company for payment. The insurer then pays the covered amount directly to the health care provider, and the member pays his or her co-payment amount. The price for each type of service is negotiated in advance by the health care providers and the PPO sponsor(s).
Point Of Service (POS) plans
A point of service plan is a type of system where you pay no deductible and usually only a small co-payment when you use a health care provider within your network. You also must choose a primary care physician who is responsible for all referrals within the POS network. If you choose to go outside of the network for health care, you will likely be subject to a deductible, and your co-payment will be a percentage of the physicians charges.
-HMO
-PPO
-POS
A common trait among managed care plans is the incentive (usually, a lower premium) for the insured to stay within a specified network of health care providers.
Health Maintenance Organizations (HMOs)
HMOs provide medical treatment on a prepaid basis, which means that HMO members pay a fixed monthly fee, regardless of how much medical care is needed in a time period (usually a monthly basis). In return for this fee, most HMOs provide a wide variety of medical services, from office visits to hospitalization and surgery. There are exceptions but most HMO members must receive their medical treatment from those within the network.
Preferred Provider Organizations (PPOs)
A PPO is made up of doctors and or hospitals that provide medical service only to a specific group. Rather than prepaying for medical care, PPO members pay for services as they are provided. The PPO sponsor (usually an employer or insurance company) usually reimburses the member for the cost of the treatment, minus any co-payment fee. In some cases, the doctor may submit the bill directly to the insurance company for payment. The insurer then pays the covered amount directly to the health care provider, and the member pays his or her co-payment amount. The price for each type of service is negotiated in advance by the health care providers and the PPO sponsor(s).
Point Of Service (POS) plans
A point of service plan is a type of system where you pay no deductible and usually only a small co-payment when you use a health care provider within your network. You also must choose a primary care physician who is responsible for all referrals within the POS network. If you choose to go outside of the network for health care, you will likely be subject to a deductible, and your co-payment will be a percentage of the physicians charges.
Group Health Insurance
The continuing growth in the number of insurance plans where the employer or union assumes all or part of the responsibility for paying claims made the nations employers a principal bearer of the financial risks of illness and non-job-related injury in 1990. Group health insurance is better than individual in most cases- your premium will be lower, and your options greater. If you cannot receive group insurance coverage through your employer, then you'll need to seek out an individual plan.
2 basic group plans
--fully insured
--MPP (minimum premium plan)
Under fully insured, your employer accepts all the risk for paying your claims.
Under MPP, your employer pays up to a certain specified maximum; after which point, the insurer pays. Most of these plans offer several types of coverage:
--basic coverage
--major medical coverage
-->basic, plus major medical coverage
Majority of these plans fall under major medical, and don't contain a basic hospital benefit for hospital related expenses.
Employers Offering Health Insurance
Coverage varies from industry to industry. Most, if not all, state and local government agencies offer health insurance. Goods-producing firms are more likely to provide health benefits than are service-producing firms.
Coverage is less commonly offered by firms employing significant proportions of low-wage workers, that have a large proportion of part-time workers, or that experience high employee turnover.
2 basic group plans
--fully insured
--MPP (minimum premium plan)
Under fully insured, your employer accepts all the risk for paying your claims.
Under MPP, your employer pays up to a certain specified maximum; after which point, the insurer pays. Most of these plans offer several types of coverage:
--basic coverage
--major medical coverage
-->basic, plus major medical coverage
Majority of these plans fall under major medical, and don't contain a basic hospital benefit for hospital related expenses.
Employers Offering Health Insurance
Coverage varies from industry to industry. Most, if not all, state and local government agencies offer health insurance. Goods-producing firms are more likely to provide health benefits than are service-producing firms.
Coverage is less commonly offered by firms employing significant proportions of low-wage workers, that have a large proportion of part-time workers, or that experience high employee turnover.
Individual Health Insurance
Individual health care insurance provides coverage for only one individual, or family. In general, individual plans are more expensive than group insurance. You can obtain individual plans directly from a company who offers them. The company with whom you apply will evaluate you from a health standpoint, in terms of how much risk you present to them. Usually, they'll provide a questionnaire for you to fill out, asking various questions about your current and past health history. They will determine your risk accordingly, from which a premium will be generated.
Things to look for
Most individual plans fall under managed health care plans. Under this, you can opt for an HMO, PPO, or POS plan.
Guaranteed renewable
Your insurer cannot cancel your coverage if you become sick. If you continue to pay your insurance premium, coverage continues.
If available, group insurance is generally a better option, since it is usually more comprehensive and less expensive than individual insurance. However, individual coverage is ultimately better than being uninsured in the event of illness or injury. Although you may think you can do without health insurance, you are taking a major risk if you choose not to get coverage. An unexpected illness or serious injury can put you and your family under financial stress.
In a group insurance situation, the provisions of the policy are negotiated between the insurer and master policy owner (usually an employer or association). With individual insurance, you are directly in control of your policy. You can negotiate to have certain provisions included or excluded, and you can often choose your deductible amount and co-payment percentage. Keep in mind, however, that these things will have an effect on your premiums.
Things to look for
Most individual plans fall under managed health care plans. Under this, you can opt for an HMO, PPO, or POS plan.
Guaranteed renewable
Your insurer cannot cancel your coverage if you become sick. If you continue to pay your insurance premium, coverage continues.
If available, group insurance is generally a better option, since it is usually more comprehensive and less expensive than individual insurance. However, individual coverage is ultimately better than being uninsured in the event of illness or injury. Although you may think you can do without health insurance, you are taking a major risk if you choose not to get coverage. An unexpected illness or serious injury can put you and your family under financial stress.
In a group insurance situation, the provisions of the policy are negotiated between the insurer and master policy owner (usually an employer or association). With individual insurance, you are directly in control of your policy. You can negotiate to have certain provisions included or excluded, and you can often choose your deductible amount and co-payment percentage. Keep in mind, however, that these things will have an effect on your premiums.
Making a list and checking it twice
There’s a reason why Santa Clause makes his list and then checks it twice! It’s because people make mistakes. Because people make mistakes, and because your credit score is calculated based on the information that people enter about you into a file- don’t you think you should get your list and check it twice?
Or at least once a year from each of the three major credit bureaus.
You’re entitled to a copy of your credit report for free, once every 12 months. Many people either do not know about this, or just don’t take advantage of it. Why would you want to leave the fate of your future in the hands of people and companies that really don’t know you or care about you one way or another?!
Case in point…. I just got a copy of my credit report. I found numerous errors. First of all, they had my employment wrong- they had me listed as if I was currently employed at a company that I hadn’t worked at in over 3 years. They had my name wrong. Yes, my name. One of my school loans was listed as a car loan.
My errors weren’t anything that seemed drastic - but what if there were other people’s accounts on my credit report that was effecting my actual score? This happens often when a father and son have the same name (one is a SR and one is a JR). Careless recordkeeping can result in a complete mix up of your credit scores and accounts being put on the wrong person’s report.
If you haven’t checked your report recently, it’s highly recommended that you get your report - even if you have to pay a few dollars to get it and check it over - who knows what you may find! Also, if you’ve been denied credit for any reason, you are entitled to view the report that the lender looked at to make sure that there were no errors that may have caused you to get denied for lending.
Knowing what your score is can be powerful too- because you’ll have a good idea what kind of interest you’ll qualify for if you do need to apply for credit. You’ll also be able to say “My FICO score is ###” when you are checking to see if you would get approved for certain credit- and while a lender would still have to pull your credit report before approving your application, they could at least give you some indication if the score is high enough to bother applying- and save yourself the inquiry on your report!
Or at least once a year from each of the three major credit bureaus.
You’re entitled to a copy of your credit report for free, once every 12 months. Many people either do not know about this, or just don’t take advantage of it. Why would you want to leave the fate of your future in the hands of people and companies that really don’t know you or care about you one way or another?!
Case in point…. I just got a copy of my credit report. I found numerous errors. First of all, they had my employment wrong- they had me listed as if I was currently employed at a company that I hadn’t worked at in over 3 years. They had my name wrong. Yes, my name. One of my school loans was listed as a car loan.
My errors weren’t anything that seemed drastic - but what if there were other people’s accounts on my credit report that was effecting my actual score? This happens often when a father and son have the same name (one is a SR and one is a JR). Careless recordkeeping can result in a complete mix up of your credit scores and accounts being put on the wrong person’s report.
If you haven’t checked your report recently, it’s highly recommended that you get your report - even if you have to pay a few dollars to get it and check it over - who knows what you may find! Also, if you’ve been denied credit for any reason, you are entitled to view the report that the lender looked at to make sure that there were no errors that may have caused you to get denied for lending.
Knowing what your score is can be powerful too- because you’ll have a good idea what kind of interest you’ll qualify for if you do need to apply for credit. You’ll also be able to say “My FICO score is ###” when you are checking to see if you would get approved for certain credit- and while a lender would still have to pull your credit report before approving your application, they could at least give you some indication if the score is high enough to bother applying- and save yourself the inquiry on your report!
When u need a new credit Card
Most people have at least one credit card, if not more. No matter how many cards you carry in your wallet, there’s a chance that you might need a new one! Or maybe you want to consolidate your existing card debt onto a single credit card, for lower rates and easier managing of your finances? Whatever your reasoning for looking at new credit cards, you want to make sure you choose a card that gives you the best deal possible. Before you go applying for the first credit card you see, let’s just take a minute to evaluate your options and help you choose a card that will give you the most benefits based on how you use the card. First of all- if you already have several credit cards with balances that you are looking to move to a low or no-interest credit card offer, then you know exactly where to start! The balance transfer cards offer you a way to move the debt to a another card where you can make payments with very low interest or even no interest. Some balance transfer credit cards have zero interest for 12 months; while others have a very low fixed rate for the life of the balance you transfer. If you’re more interested in getting a credit card for your current purchasing needs, think about how you spend your money. Do you:
Buy a lot of gas for your car?
Travel frequently by plane?
Rent cars?
Need a student credit card?
Purchase business expenses?
If you tend to spend more money in one area than another, you will want to look at rewards credit cards that are part of that category so you can get benefits based on that spending. You’ll also need to keep in mind that all credit cards have a credit rating requirement. So check your credit score so you know what your score is; and apply for cards that your credit qualifies for. You only want to apply once or twice- as the more applications you put in the more inquiries to your credit report and the lower your score will become!When looking at the various rewards programs that meet your spending needs, keep an eye on what the interest rate is on new purchases. You want a card with the lowest interest that you can qualify for- and if you know you’ll use the card soon after getting it, look for a card with a great introductory offer of 0% interest, or an extremely low interest rate for at least one year. This will help you save even more money.
Buy a lot of gas for your car?
Travel frequently by plane?
Rent cars?
Need a student credit card?
Purchase business expenses?
If you tend to spend more money in one area than another, you will want to look at rewards credit cards that are part of that category so you can get benefits based on that spending. You’ll also need to keep in mind that all credit cards have a credit rating requirement. So check your credit score so you know what your score is; and apply for cards that your credit qualifies for. You only want to apply once or twice- as the more applications you put in the more inquiries to your credit report and the lower your score will become!When looking at the various rewards programs that meet your spending needs, keep an eye on what the interest rate is on new purchases. You want a card with the lowest interest that you can qualify for- and if you know you’ll use the card soon after getting it, look for a card with a great introductory offer of 0% interest, or an extremely low interest rate for at least one year. This will help you save even more money.
Maximise Credit Cards Use
Yes, credit cards have a bad reputation in the eyes of most people. We all do it though- we get mad because we pay one of our credit cards a little late and then get hit with late fees, or worse, an interest rate hike on all of our credit cards.
You can really maximize your card usage though, and get more out of your rewards programs and get more control over your finances if you were to use your credit card to pay for all of your bills, purchases and expenses each month.
Now, if you do this- you have to be someone who has control! A lot can go wrong if you don’t keep yourself to a budget and make your payments on time. Done correctly, however, it has a ton of benefits!
1. Choose a Card with Appropriate Rewards
If you’re going to be putting all of your monthly expenses on your credit card each month, it makes sense to pick one with a rewards program that will offer you benefits that are actually useful based on how you use the card.
2. Know the Details of Your Credit Card
Most credit cards offer a grace period. This is a time when you can repay your purchases without paying interest or finance fees. Usually it’s around 25 days. When picking a card to use for all of your expenses each month, you should find one with the longest grace period you can find! Also, be sure you know what your interest rate will be on purchases, and what happens to it if you should make a payment late. Will the interest rate go up? How much is the late fee?
3. Set Up A Budget - and Stick to It!
If you decide to spend more than you can afford just because you’re using a credit card instead of check or cash; you’re going to be in some serious financial trouble! To maximize your credit card use and make the card work for you, you need to determine how much you can spend each month on the card and don’t buy more just because it’s easy to overspend with the card! You already have a good idea what you pay each month in utilities or mortgage payments; prescriptions, groceries and vehicle loans. Factor those itesm as well as miscellaneous monthly expenses and entertainment costs into your monthly budget and then don’t go over it.
4. Set up your Payments
If possible, use your automatic payment plan with your credit card and let them take your payment from yoru checking account automatically each month. Also, try to set up the payment so it is within the grace period to avoid interest fees. If that isn’t possible, you may be able to log into your online account management system and make payments early there and avoid fees.
The benefits of paying for your monthly expenses with a credit card include;
taking advantage of the rewards program and gaining the maximum benefits
seeing exactly where your money goes each month
getting more control over your budget
obtaining the ability to set up a savings plan (now that you know exactly where your money goes!)
You can really maximize your card usage though, and get more out of your rewards programs and get more control over your finances if you were to use your credit card to pay for all of your bills, purchases and expenses each month.
Now, if you do this- you have to be someone who has control! A lot can go wrong if you don’t keep yourself to a budget and make your payments on time. Done correctly, however, it has a ton of benefits!
1. Choose a Card with Appropriate Rewards
If you’re going to be putting all of your monthly expenses on your credit card each month, it makes sense to pick one with a rewards program that will offer you benefits that are actually useful based on how you use the card.
2. Know the Details of Your Credit Card
Most credit cards offer a grace period. This is a time when you can repay your purchases without paying interest or finance fees. Usually it’s around 25 days. When picking a card to use for all of your expenses each month, you should find one with the longest grace period you can find! Also, be sure you know what your interest rate will be on purchases, and what happens to it if you should make a payment late. Will the interest rate go up? How much is the late fee?
3. Set Up A Budget - and Stick to It!
If you decide to spend more than you can afford just because you’re using a credit card instead of check or cash; you’re going to be in some serious financial trouble! To maximize your credit card use and make the card work for you, you need to determine how much you can spend each month on the card and don’t buy more just because it’s easy to overspend with the card! You already have a good idea what you pay each month in utilities or mortgage payments; prescriptions, groceries and vehicle loans. Factor those itesm as well as miscellaneous monthly expenses and entertainment costs into your monthly budget and then don’t go over it.
4. Set up your Payments
If possible, use your automatic payment plan with your credit card and let them take your payment from yoru checking account automatically each month. Also, try to set up the payment so it is within the grace period to avoid interest fees. If that isn’t possible, you may be able to log into your online account management system and make payments early there and avoid fees.
The benefits of paying for your monthly expenses with a credit card include;
taking advantage of the rewards program and gaining the maximum benefits
seeing exactly where your money goes each month
getting more control over your budget
obtaining the ability to set up a savings plan (now that you know exactly where your money goes!)
The Secured Card Options
Some people think secured credit cards are for people who just cant get any other financing. While it’s true that individuals with less than perfect credit can still get a secured credit card, many secured options offer just as many benefits as traditional cards and should not be over looked as a valuable form of business credit.
If your business is just starting, it won’t have a credit history. It’s very much like a teenager who has just graduated high school- it can be difficult to get a credit card because you haven’t yet established credit worthiness. So if you’re a business owner, you should not rule out the secured card option when it comes to applying for business credit cards.
Secured Cards
The idea of secured credit cards is that you put something up for collateral, typically you make a deposit, against the use of your credit card. Once you do that, you are provided with the power of a credit card having either the Visa or MasterCard logo and all the spending power you would expect from either card issuer. Your payments will be reported to the credit bureaus in the same way that they would be reported for unsecured credit cards. This is how secured card options can help you start establishing and building a strong credit reputation that helps you get other types of financing in the future.
Shop Around
If you decide to get a secured business credit card, make sure you shop around. Some secured card companies will charge ridiculous annual fees and interest rates- but not all. So take the time to find a reasonable offer and use that to build your credit.
Discreet
When you shop with a secured credit card, there is absolutely no difference to the merchants. No one will be able to tell that your card is secured rather than a traditional credit card. You and the credit issuer will be the only people who know the real truth behind the credit card!
A Secured Stepping Stone to the Future
When you consider using a secured business credit card, just keep it in mind that it’s temporary. As you establish a good credit rating by making your payments on time with your secured card, you’ll soon be able to apply for and get approved for other financing, including loans or unsecured credit cards. Having a secured card when you first start a business is a gteat way to give the business it’s own credit right from the start- so that a year or so down the line, when you’re ready to grow the business but require financing to do so, you’ll have the credit score and positive credit history to help you do so.
If your business is just starting, it won’t have a credit history. It’s very much like a teenager who has just graduated high school- it can be difficult to get a credit card because you haven’t yet established credit worthiness. So if you’re a business owner, you should not rule out the secured card option when it comes to applying for business credit cards.
Secured Cards
The idea of secured credit cards is that you put something up for collateral, typically you make a deposit, against the use of your credit card. Once you do that, you are provided with the power of a credit card having either the Visa or MasterCard logo and all the spending power you would expect from either card issuer. Your payments will be reported to the credit bureaus in the same way that they would be reported for unsecured credit cards. This is how secured card options can help you start establishing and building a strong credit reputation that helps you get other types of financing in the future.
Shop Around
If you decide to get a secured business credit card, make sure you shop around. Some secured card companies will charge ridiculous annual fees and interest rates- but not all. So take the time to find a reasonable offer and use that to build your credit.
Discreet
When you shop with a secured credit card, there is absolutely no difference to the merchants. No one will be able to tell that your card is secured rather than a traditional credit card. You and the credit issuer will be the only people who know the real truth behind the credit card!
A Secured Stepping Stone to the Future
When you consider using a secured business credit card, just keep it in mind that it’s temporary. As you establish a good credit rating by making your payments on time with your secured card, you’ll soon be able to apply for and get approved for other financing, including loans or unsecured credit cards. Having a secured card when you first start a business is a gteat way to give the business it’s own credit right from the start- so that a year or so down the line, when you’re ready to grow the business but require financing to do so, you’ll have the credit score and positive credit history to help you do so.
Your Good Credit Managment is Rewarded
Discover card has to get creative when trying to lure customers over to their side of the fence. Competing against the big names - MasterCard and Visa is no easy task, but Discover has come up with a clever rewards program that just might make more people see the Discover card as a better option for their credit card choice.
Pay On Time : Get Rewarded
In the world of credit card payments, if you pay on time, you avoid late fees. While that might be incentive enough to make your payments on time, Discover thought they’d go a step further. When you make your payments on time, you receive a “pay-on-time bonus” which is equal to a month’s worth of interest fees, whenever you have 6 months of payments on time. That’s a nice benefit of paying on time that goes above and beyond the avoidance of late fees! Discover is currently the only credit card to reward people for good credit management.
Other rewards
There are a few other rewards based benefits with Discover Motiva card that are worth mentioning. When you shop specific retailers through the Discover exclusive online shopping site, you earn between 5 and 20% cash back bonuses. I’m thinking about using the Discover Motiva to do my holiday shopping online- and hoping to get that 20% kickback. That’s basically like saving 20% on my holiday shopping if I can work it out right- and considering I regularly spend around $1200 during the holidays, saving $240 is a decent amount of cash back. Discover doesn’t limit the amount of cash rewards you can earn, either, which is nice compared to the majority of rewards programs that have a maximum earnings level.
If you decide to redeem all that cash back bonus in the form of gift cards- you’ll end up with double value to redeem. That’s pretty decent- and will even buy another few gifts around the holiday time!
You do need to have good credit - make that “excellent” level credit to qualify for the Discover Motiva, but if you are in that boat I suggest you check it out. The cash back program is a strong benefit particularly around the busiest shopping season of the year.
Earned rebates with Discover Motiva card won’t expire for three years as long as your account stays active, so you have plenty of time to earn those rewards!
Pay On Time : Get Rewarded
In the world of credit card payments, if you pay on time, you avoid late fees. While that might be incentive enough to make your payments on time, Discover thought they’d go a step further. When you make your payments on time, you receive a “pay-on-time bonus” which is equal to a month’s worth of interest fees, whenever you have 6 months of payments on time. That’s a nice benefit of paying on time that goes above and beyond the avoidance of late fees! Discover is currently the only credit card to reward people for good credit management.
Other rewards
There are a few other rewards based benefits with Discover Motiva card that are worth mentioning. When you shop specific retailers through the Discover exclusive online shopping site, you earn between 5 and 20% cash back bonuses. I’m thinking about using the Discover Motiva to do my holiday shopping online- and hoping to get that 20% kickback. That’s basically like saving 20% on my holiday shopping if I can work it out right- and considering I regularly spend around $1200 during the holidays, saving $240 is a decent amount of cash back. Discover doesn’t limit the amount of cash rewards you can earn, either, which is nice compared to the majority of rewards programs that have a maximum earnings level.
If you decide to redeem all that cash back bonus in the form of gift cards- you’ll end up with double value to redeem. That’s pretty decent- and will even buy another few gifts around the holiday time!
You do need to have good credit - make that “excellent” level credit to qualify for the Discover Motiva, but if you are in that boat I suggest you check it out. The cash back program is a strong benefit particularly around the busiest shopping season of the year.
Earned rebates with Discover Motiva card won’t expire for three years as long as your account stays active, so you have plenty of time to earn those rewards!
A free $ 75 just for opening a new Checking account
Don’t you just hate it when you hear about a good deal after it’s too late to benefit from it? Hopefully that won’t happen to you since you’re reading this right now!
Don’t miss out on getting $75 for doing nothing special the way that I did. I still have steam coming out of my ears since I saw this information posted on some other blog out there after the fact. Why couldn’t it have been posted BEFORE I opened my Bank of America account? WHY?!
I actually just opened a new checking account with Bank of America online with a friend about a week ago for a business thing we’re going to be doing together… we live in different states so we liked the convenience of having bank branches in both locations and having online access. I knew nothing about this offer and I’m really mad that I didn’t know! $75 is quite a bit of money just for opening a checking account and I missed it!
Here’s how you get $75 free…
Sign up for Bank of America’s MyAccess personal checking acount online, using offer code CH75OLB
Deposit $25 within 30 days (why not just do it when you open the account? it walks you through it step by step and then you won’t forget and won’t miss out on the free money!)
Get $75 within 50 days deposited into the account
That’s it! Even if you already have a checking account, what’s the harm in getting another one just for the benefit of $75 extra bucks?! There isn’t a minimum balance required, and there are no fees so it won’t cause any problems to set it up. You also are not required to set up a direct deposit- but you can if you want to. You might even like your account and want to make it your primary bank account- who knows?
Bank of America also has a bunch of credit cards, (over 30 to be exact- and includes card offers for all ranges of credit scores, including bad credit or no credit) so if you have one of those along with the checking account, you could quickly transfer money from the checking account to pay the credit card bill! They’re using the same type of online banking services that you get with your credit card accounts with their MyAccess Personal Checking accounts. So you can log in and manage any of your Bank of America accounts, whenever it’s convenient to you and not just during regular bank hours.
Don’t miss out on getting $75 for doing nothing special the way that I did. I still have steam coming out of my ears since I saw this information posted on some other blog out there after the fact. Why couldn’t it have been posted BEFORE I opened my Bank of America account? WHY?!
I actually just opened a new checking account with Bank of America online with a friend about a week ago for a business thing we’re going to be doing together… we live in different states so we liked the convenience of having bank branches in both locations and having online access. I knew nothing about this offer and I’m really mad that I didn’t know! $75 is quite a bit of money just for opening a checking account and I missed it!
Here’s how you get $75 free…
Sign up for Bank of America’s MyAccess personal checking acount online, using offer code CH75OLB
Deposit $25 within 30 days (why not just do it when you open the account? it walks you through it step by step and then you won’t forget and won’t miss out on the free money!)
Get $75 within 50 days deposited into the account
That’s it! Even if you already have a checking account, what’s the harm in getting another one just for the benefit of $75 extra bucks?! There isn’t a minimum balance required, and there are no fees so it won’t cause any problems to set it up. You also are not required to set up a direct deposit- but you can if you want to. You might even like your account and want to make it your primary bank account- who knows?
Bank of America also has a bunch of credit cards, (over 30 to be exact- and includes card offers for all ranges of credit scores, including bad credit or no credit) so if you have one of those along with the checking account, you could quickly transfer money from the checking account to pay the credit card bill! They’re using the same type of online banking services that you get with your credit card accounts with their MyAccess Personal Checking accounts. So you can log in and manage any of your Bank of America accounts, whenever it’s convenient to you and not just during regular bank hours.
Joe Got ur Identity
Identity theft is a growing concern, despite the high-tech attempts companies are making to help prevent it from happening. It used to be that you’d only have to worry about identity theft if you were crazy enough to throw away documents without shredding them first. If Joe the identity-thief was rifling through the dumpster, he’d be able to take those documents and run with them… literally, and start charging things in your name.
Now though, our information is stored all over the place. Retail store databases, websites where we’ve created accounts and made payments for items, or where we’ve entered our personal information in order to receive payments for work completed. Every time we swipe a credit card or debit card, we’re giving someone the ability to steal or identity.
Most people don’t even think about identity theft though. After all, credit card information is transmitted over secure networks and for the majority of people- it’s not gonna happen. Many credit cards help keep us secure though, and when you’re looking for credit cards, the best thing you can do is look for this, all-important feature:
No Liability for Unauthorized Charges.
In fact, make sure that the credit cards you are currently using have this feature. It means that if someone steals your card, or the waitress takes down the info before handing back your credit card and use it to go shopping after her shift on her favorite website- you won’t be responsible for any of those charges because you didn’t authorize them.
Another feature to look for to help protect your precious identity is lost and stolen card reporting… with a 24/7 customer service line that lets you call and tell them your credit card has been stolen or lost so they can stop transactions before they occur on the missing card(s) - and even issue you a new one right away that can be used.
Most cards require that you notify them as soon as you see the unauthorized charges on your statement- so make sure you are checking your monthly credit card billing statements closely to be sure the charges are all the ones you’ve authorized. But as long as your card offers that protection, you can feel comfortable using your cards and knowing that Joe (or any other thief for that matter) can’t make you pay for their crime.
Here are a few cards that advertise the no liability for unauthorized charge benefit (most of the credit cards have it now, but this should just help you get started finding the ones that offer it without a doubt!)
United Mileage Plus Signature Visa Card
Amazon Platinum Visa
Speedway SuperAmerica Platinum MasterCard
Chase Student Flexible Rewards Card
Now though, our information is stored all over the place. Retail store databases, websites where we’ve created accounts and made payments for items, or where we’ve entered our personal information in order to receive payments for work completed. Every time we swipe a credit card or debit card, we’re giving someone the ability to steal or identity.
Most people don’t even think about identity theft though. After all, credit card information is transmitted over secure networks and for the majority of people- it’s not gonna happen. Many credit cards help keep us secure though, and when you’re looking for credit cards, the best thing you can do is look for this, all-important feature:
No Liability for Unauthorized Charges.
In fact, make sure that the credit cards you are currently using have this feature. It means that if someone steals your card, or the waitress takes down the info before handing back your credit card and use it to go shopping after her shift on her favorite website- you won’t be responsible for any of those charges because you didn’t authorize them.
Another feature to look for to help protect your precious identity is lost and stolen card reporting… with a 24/7 customer service line that lets you call and tell them your credit card has been stolen or lost so they can stop transactions before they occur on the missing card(s) - and even issue you a new one right away that can be used.
Most cards require that you notify them as soon as you see the unauthorized charges on your statement- so make sure you are checking your monthly credit card billing statements closely to be sure the charges are all the ones you’ve authorized. But as long as your card offers that protection, you can feel comfortable using your cards and knowing that Joe (or any other thief for that matter) can’t make you pay for their crime.
Here are a few cards that advertise the no liability for unauthorized charge benefit (most of the credit cards have it now, but this should just help you get started finding the ones that offer it without a doubt!)
United Mileage Plus Signature Visa Card
Amazon Platinum Visa
Speedway SuperAmerica Platinum MasterCard
Chase Student Flexible Rewards Card
Credit Cards and Credit History
Responsible credit card use can help you get out of a bad-credit situation. If you’ve had some problems making payments in the past, or know your credit isn’t perfect- then you know exactly how it effects you. When you apply for credit, you get turned down. Even a new employer can use your credit score as a reason not to hire you! Your automobile insurance rates can increase if you have poor credit. Getting an apartment will be as impossible as a mortgage, since most landlords rely on your credit score now to determine whether or not you are a good tenant.
So- if you have already damaged your credit or it’s just not as good as you would like, you can use your credit cards to start improving your credit score. If you already have a credit card, start with that one, but if you don’t have any credit cards at this time- even with poor credit you will be able to qualify for several of the credit cards for bad credit options available. These cards will have higher interest rates and less perks than cards designed for people with good credit, but they will still work to help you start repairing your credit.
If you are still having trouble getting approved for credit cards, you can try getting a secured credit card or asking a family member to co-sign your application.
First, order a copy of your free credit report from each of the three credit bureaus and make sure there are no mistakes that are affecting your score. Take appropriate steps to correct any mistakes that may be on the reports.
Next, use your credit card as a credit rebuilding tool. Each month, make one or two purchases with your credit card and immediately send in the payment. (Some cards offer a grace period, and if you make your payments within the grace period you won’t even have to pay interest!)
Each time you send a payment on time, it is reported to your credit report. Several months of doing this will slowly increase your credit score. Also, if you hadn’t had any available credit listed on your credit report, just having access to the credit card limit can also help increase your credit score. Just be careful that you don’t max the card out because then you’ll lower your score by using a larger percentage of available credit.
So- if you have already damaged your credit or it’s just not as good as you would like, you can use your credit cards to start improving your credit score. If you already have a credit card, start with that one, but if you don’t have any credit cards at this time- even with poor credit you will be able to qualify for several of the credit cards for bad credit options available. These cards will have higher interest rates and less perks than cards designed for people with good credit, but they will still work to help you start repairing your credit.
If you are still having trouble getting approved for credit cards, you can try getting a secured credit card or asking a family member to co-sign your application.
First, order a copy of your free credit report from each of the three credit bureaus and make sure there are no mistakes that are affecting your score. Take appropriate steps to correct any mistakes that may be on the reports.
Next, use your credit card as a credit rebuilding tool. Each month, make one or two purchases with your credit card and immediately send in the payment. (Some cards offer a grace period, and if you make your payments within the grace period you won’t even have to pay interest!)
Each time you send a payment on time, it is reported to your credit report. Several months of doing this will slowly increase your credit score. Also, if you hadn’t had any available credit listed on your credit report, just having access to the credit card limit can also help increase your credit score. Just be careful that you don’t max the card out because then you’ll lower your score by using a larger percentage of available credit.
Student Credit cards for the holidays
I know credit cards can be really bad, when they’re used wrong. As students, though, you’ve got so many great opportunities for good student credit cards that offer outstanding rewards programs and reasonable interest rates, that if you just learn how to use the effectively, you can enjoy the freedom they give you and build your credit at the same time.
Around the holidays, money can be a little tight, especially for the typical student who probably doesn’t budget all year for the holiday season! Using a credit card to purchase gifts for family and friends is ok as long as you figure out how much you can afford to spend (and pay off in a reasonable amount of time). To do this, you’ll want to create a budget.
On a piece of paper or in a spreadsheet program, write down all of your monthly expenses on one side, and all of your monthly income on the other side. Determine how much money you have to spend each month, and then you can figure out how much you can reasonably afford to put on a credit card for holiday shopping, and pay it off within a specific number of months.
To make your holiday purchases better on your cash flow, look for a credit card with a good rewards program. There are rewards programs that give you all sorts of benefits just for shopping with your card, including, but not limited to:
gas rewards programs
cash back
entertainment rewards programs
travel rewards
Whatever you think would benefit you most is the type of credit card rewards program you should look into. If your current credit card doesn’t offer you a rewards program, consider opening a new one, and transferring any old balances onto the new card so that you have just a single payment each month.
The best part about using a credit card over the holidays to get your gifts or pay for your tickets to travel home; is that as you make your payments on time each month you are establishing a credit history. The longer you make payments and the longer you make the payments ON TIME, the better your credit score will be. Using your college years to generate a strong credit score makes sense, as then when you graduate you’ll have a good score for when you’re ready to purchase big ticket items- like a new house, or a new car.
Around the holidays, money can be a little tight, especially for the typical student who probably doesn’t budget all year for the holiday season! Using a credit card to purchase gifts for family and friends is ok as long as you figure out how much you can afford to spend (and pay off in a reasonable amount of time). To do this, you’ll want to create a budget.
On a piece of paper or in a spreadsheet program, write down all of your monthly expenses on one side, and all of your monthly income on the other side. Determine how much money you have to spend each month, and then you can figure out how much you can reasonably afford to put on a credit card for holiday shopping, and pay it off within a specific number of months.
To make your holiday purchases better on your cash flow, look for a credit card with a good rewards program. There are rewards programs that give you all sorts of benefits just for shopping with your card, including, but not limited to:
gas rewards programs
cash back
entertainment rewards programs
travel rewards
Whatever you think would benefit you most is the type of credit card rewards program you should look into. If your current credit card doesn’t offer you a rewards program, consider opening a new one, and transferring any old balances onto the new card so that you have just a single payment each month.
The best part about using a credit card over the holidays to get your gifts or pay for your tickets to travel home; is that as you make your payments on time each month you are establishing a credit history. The longer you make payments and the longer you make the payments ON TIME, the better your credit score will be. Using your college years to generate a strong credit score makes sense, as then when you graduate you’ll have a good score for when you’re ready to purchase big ticket items- like a new house, or a new car.
Best Airlines miles credit cards existings
It’s so good to be back to the blog! Actually, many things have changed in my life over the past few weeks. I’m starting a business with a friend of mine. And we had a lot to do. Well, you know, all those permits and licenses, a business plan, tons of papers… Those weeks were really busy. But it’s not the point. What I was going to write about is an airline credit card that I find very beneficial.
I have never considered getting one of the credit cards with air miles rewards program. You are well aware of the fact that rewards credit cards carry the highest interest rates. As for frequent flyers plastics, it might take years to collect enough points to get a free flight. However, since my business is concerned with frequent international business trips, I decided that applying for such a card will be just what I need.
After a thorough scanning of nearly all credit card offers available, I have set my eyes on The Miles by Discover Card that is issued by Discover. Believe me, I have killed quite a lot of time browsing through numerous offers, and this deal is definitely one of the best credit cards for those, who love travelling or often get to go on distant business trips.
The Miles by Discover Card is available to people with excellent credit rating, like most of the rewards cards. This offer enables you to earn double miles for food and travel-related purchases and 1 mile per every dollar you spend on all other purchases. So, as soon as I spend $ 3,000 I will get 6,000 miles. And with 5, 000 miles I will be able to choose a travel credit to my account with no blackout dates on one of major US airlines. 1,000 miles can be redeemed for cash or gift cards from over 80 brand-name eligible partners.
The card membership allows you to earn 1,000 miles every month for any purchase made, during the first year. So, you can get up to 12,000 bonus miles just shopping. Though there is a maximum of 60,000 bonus miles one can collect per year, but the good thing is that they do not expire for 3 years. Car rental insurance, travel accident insurance for up to $ 500,000, online access to your account - all these options come with this card as platinum benefits.
And the most attractive part about this offer from Discover is low interest rates. First of all, you get 0% APR on balance transfer and purchases until July, 2008. Then, you get an ongoing variable APR between 10.99% and 18.99%. These rates are among the lowest ones, attached to credit cards with rewards programs. Discover really knows how to attract and please its clients.
By the way, Discover was the first brand to introduce a plastic with rewards. Back then, the company developed a card with cash back. And since then till present days Discover carries the palm in the “rewards” field on credit card market.
So, if you face the problem of an airline miles credit card choice, personally I would advise you to take a closer look at The Miles by Discover Card.
I have never considered getting one of the credit cards with air miles rewards program. You are well aware of the fact that rewards credit cards carry the highest interest rates. As for frequent flyers plastics, it might take years to collect enough points to get a free flight. However, since my business is concerned with frequent international business trips, I decided that applying for such a card will be just what I need.
After a thorough scanning of nearly all credit card offers available, I have set my eyes on The Miles by Discover Card that is issued by Discover. Believe me, I have killed quite a lot of time browsing through numerous offers, and this deal is definitely one of the best credit cards for those, who love travelling or often get to go on distant business trips.
The Miles by Discover Card is available to people with excellent credit rating, like most of the rewards cards. This offer enables you to earn double miles for food and travel-related purchases and 1 mile per every dollar you spend on all other purchases. So, as soon as I spend $ 3,000 I will get 6,000 miles. And with 5, 000 miles I will be able to choose a travel credit to my account with no blackout dates on one of major US airlines. 1,000 miles can be redeemed for cash or gift cards from over 80 brand-name eligible partners.
The card membership allows you to earn 1,000 miles every month for any purchase made, during the first year. So, you can get up to 12,000 bonus miles just shopping. Though there is a maximum of 60,000 bonus miles one can collect per year, but the good thing is that they do not expire for 3 years. Car rental insurance, travel accident insurance for up to $ 500,000, online access to your account - all these options come with this card as platinum benefits.
And the most attractive part about this offer from Discover is low interest rates. First of all, you get 0% APR on balance transfer and purchases until July, 2008. Then, you get an ongoing variable APR between 10.99% and 18.99%. These rates are among the lowest ones, attached to credit cards with rewards programs. Discover really knows how to attract and please its clients.
By the way, Discover was the first brand to introduce a plastic with rewards. Back then, the company developed a card with cash back. And since then till present days Discover carries the palm in the “rewards” field on credit card market.
So, if you face the problem of an airline miles credit card choice, personally I would advise you to take a closer look at The Miles by Discover Card.
Credit Cards best sellers of 2007
Now that the year is about to make its way for the next one, 2008, people analyze the events, misfortunes and achievements of the current year. A week left till America’s most loved holiday. I’ve been thinking on posting an article on Christmas expenses, shopping holiday season, or how not to lose control over your credit cards during holiday period. But the Internet is overloaded with information on such issues. So, I’ve decided to review this year’s new credit products and make up a chart of top credit card offers.
I have looked through several surveys’ results, browsed through the World Wide Web. And basing on all those facts and figures, I’ve made up my hit list of credit cards bestsellers. So, if you take interest to find out what were the best offers of 2007, or you hope to hit upon your card deal among them, you are welcome to my final countdown of credit cards.
7. Citi CashReturns Card. In general, it’s a regular cash rebates credit card. But it has been designed for heavy credit card spenders. It offers 1% cash rebates on all credit card purchases with no caps on earnings and no tired rebates. Not that much, actually. But it will perfect for you in case you are up to spend a lot of money on different purchases. This card will give you 5% cash rebate on credit card purchases for the first 3 months.
6. World of Warcraft Visa. There is no need to speak of the popularity credit cards for gamers are gaining today once again. And World of Warcraft sounds familiar even to those, who are not really into computer games. This credit card from Visa offers rewards points that can be redeemed for free online playtime. Warcraft fans can get a month of free game time for 1,500 points.
5. Bank Americard. This card from Bank of America gives card holders n opportunity to earn extra half rewards point per every dollar they spend on any other Bank of America credit card.
4. Gap Visa also turned out to be among most popular credit cards of the year. This offer, as it is perfectly clear from its name, has been designed especially for Gap fans. With the card you get 5% rebate on purchases at Gap, Banana Republic, and Old Navy stores, and 1% rebates on all other everyday purchases. Fashion victims just fell in love with this card.
3. Chase Freedom Card. Chase Bank decided not to discover America, they just re-invented the wheel. They refreshed the rewards program. Now it enables credit card owners to get higher rebates for the top 3 purchases of a month. As a rule, such purchases turn out to be dining out, gas, and groceries.
2. “Green” credit cards became a real breakthrough of the year. The Bank of America Brighter Planet Visa, the GreenPay MasterCard, and the GE Money Earth Rewards Card are gaining popularity among people, who are concerned about the future of our planet. The rewards points you earn with this card help fund tree planting, renewable energy projects that reduce your carbon footprint, and other environmental projects.
1. Capital One’s Card Lab. This is number one credit card deal of the year 2007. This card gives you a great chance to become an architect of your own fortune. With this offer you literally can chose your interest rates, introductory rates, and even rewards on your new purchases, as well as balance transfers. You will not find a deal of the kind among other credit card issuers’ offers, but Capital One Bank.
So, these are the 7 top credit cards of 2007. If you ask why 7, I will explain. The first reason for that is the year itself – 2007. And the second one is that 7 is a magic number. And on the threshold of Xmas you just want to believe in magic. Merry Christmas and a happy and financially successful New Year!
I have looked through several surveys’ results, browsed through the World Wide Web. And basing on all those facts and figures, I’ve made up my hit list of credit cards bestsellers. So, if you take interest to find out what were the best offers of 2007, or you hope to hit upon your card deal among them, you are welcome to my final countdown of credit cards.
7. Citi CashReturns Card. In general, it’s a regular cash rebates credit card. But it has been designed for heavy credit card spenders. It offers 1% cash rebates on all credit card purchases with no caps on earnings and no tired rebates. Not that much, actually. But it will perfect for you in case you are up to spend a lot of money on different purchases. This card will give you 5% cash rebate on credit card purchases for the first 3 months.
6. World of Warcraft Visa. There is no need to speak of the popularity credit cards for gamers are gaining today once again. And World of Warcraft sounds familiar even to those, who are not really into computer games. This credit card from Visa offers rewards points that can be redeemed for free online playtime. Warcraft fans can get a month of free game time for 1,500 points.
5. Bank Americard. This card from Bank of America gives card holders n opportunity to earn extra half rewards point per every dollar they spend on any other Bank of America credit card.
4. Gap Visa also turned out to be among most popular credit cards of the year. This offer, as it is perfectly clear from its name, has been designed especially for Gap fans. With the card you get 5% rebate on purchases at Gap, Banana Republic, and Old Navy stores, and 1% rebates on all other everyday purchases. Fashion victims just fell in love with this card.
3. Chase Freedom Card. Chase Bank decided not to discover America, they just re-invented the wheel. They refreshed the rewards program. Now it enables credit card owners to get higher rebates for the top 3 purchases of a month. As a rule, such purchases turn out to be dining out, gas, and groceries.
2. “Green” credit cards became a real breakthrough of the year. The Bank of America Brighter Planet Visa, the GreenPay MasterCard, and the GE Money Earth Rewards Card are gaining popularity among people, who are concerned about the future of our planet. The rewards points you earn with this card help fund tree planting, renewable energy projects that reduce your carbon footprint, and other environmental projects.
1. Capital One’s Card Lab. This is number one credit card deal of the year 2007. This card gives you a great chance to become an architect of your own fortune. With this offer you literally can chose your interest rates, introductory rates, and even rewards on your new purchases, as well as balance transfers. You will not find a deal of the kind among other credit card issuers’ offers, but Capital One Bank.
So, these are the 7 top credit cards of 2007. If you ask why 7, I will explain. The first reason for that is the year itself – 2007. And the second one is that 7 is a magic number. And on the threshold of Xmas you just want to believe in magic. Merry Christmas and a happy and financially successful New Year!
Credit Cards Offers Are Turning Green
In my previous post I touched upon the issue of green credit cards. They hit the charts of the best selling credit cards of 2007, and ranked second. I have looked up some information on this type of cards to figure out whether they are really so popular among credit consumers. So, this post is devoted to the phenomenon of green credit cards.
The latest survey conducted showed that almost a half (49% to be more exact) of adult Americans are up to making a green credit card deal next year. Credit card companies’ excitement got beyond bounds. Of course, they had nothing but good intentions, developing new reward credit cards with “green” incentives. They encourage card holders to apply online for such credit cards out of pure altruistic impulse.
Did I get too sarcastic? Well, obviously, credit card issuers are permanently in pursuit of profits. However, it is quite praiseworthy that these money hunters take steps in order to solve our environmental problems.
A surprising fact revealed by this study was that younger credit card holders are more concerned about the future of our planet than older ones. On the one hand, the reason for that can be that it is the younger generation is here to stay for a bit longer. That is why they are so enthusiastic about improving out environmental situation.
On the other hand, young people are known to be more careless when it comes to some global problems. They love to hang out, enjoy their life, and they are convinced that everything’s gonna be ok somehow. Another myth busted… Personally I was pleasantly surprised to find this out. We still have grounds for hope.
All green cards developments are aimed at funding environmental projects. Among them there are such programs as buying greenhouse gas emissions offsets, supporting renewable energy projects, retiring CO2, generating electricity through wind power, and others.
One of the most attention-claiming inventions, to my mind, is a biodegradable plastic card introduced by IL-based Versatile Card Technology, the “Green Earth Card”. It is made of corn starch. The print on them is made of waterless-ink printing press. That is really a 100% ecologically safe card.
So, getting such a card is a matter of opinion. If you really do not want to stay out of ecological problems, you can apply for one of the green cards. In case you stick to an opinion that you won’t witness any serious ecological cataclysms, it will be long after you go, well, it is up to you. Actually, it doesn’t matter that much whether you are a true Greenpeace supporter, or you do not really care. If you make your contribution to making our planet environment healthier, you do the right thing.
Personally I am going to apply for a green card myself. It might be one of the Visa credit cards - the “Brighter Planet”
The latest survey conducted showed that almost a half (49% to be more exact) of adult Americans are up to making a green credit card deal next year. Credit card companies’ excitement got beyond bounds. Of course, they had nothing but good intentions, developing new reward credit cards with “green” incentives. They encourage card holders to apply online for such credit cards out of pure altruistic impulse.
Did I get too sarcastic? Well, obviously, credit card issuers are permanently in pursuit of profits. However, it is quite praiseworthy that these money hunters take steps in order to solve our environmental problems.
A surprising fact revealed by this study was that younger credit card holders are more concerned about the future of our planet than older ones. On the one hand, the reason for that can be that it is the younger generation is here to stay for a bit longer. That is why they are so enthusiastic about improving out environmental situation.
On the other hand, young people are known to be more careless when it comes to some global problems. They love to hang out, enjoy their life, and they are convinced that everything’s gonna be ok somehow. Another myth busted… Personally I was pleasantly surprised to find this out. We still have grounds for hope.
All green cards developments are aimed at funding environmental projects. Among them there are such programs as buying greenhouse gas emissions offsets, supporting renewable energy projects, retiring CO2, generating electricity through wind power, and others.
One of the most attention-claiming inventions, to my mind, is a biodegradable plastic card introduced by IL-based Versatile Card Technology, the “Green Earth Card”. It is made of corn starch. The print on them is made of waterless-ink printing press. That is really a 100% ecologically safe card.
So, getting such a card is a matter of opinion. If you really do not want to stay out of ecological problems, you can apply for one of the green cards. In case you stick to an opinion that you won’t witness any serious ecological cataclysms, it will be long after you go, well, it is up to you. Actually, it doesn’t matter that much whether you are a true Greenpeace supporter, or you do not really care. If you make your contribution to making our planet environment healthier, you do the right thing.
Personally I am going to apply for a green card myself. It might be one of the Visa credit cards - the “Brighter Planet”
Getting over christmas Dept Hangover
Jingle bells, jingle bells, jingle all the way
Oh what fun it is to pay off your debts till next year, May…
Yeah, sounds a bit gloomy. I know I am no song writer. And maybe “next May” is an exaggeration. But now that Christmas presents are opened, delicacies are almost eaten up, you no longer hear bells jingle, and the Christmas magic fades away, it is right about the time to sum up your holiday expenses.
The reason for this issue I am going to write about is quite clear. People spend more and more money during Christmas shopping season every year. Since it is a sore point for me as well, I am up to give you some tips on how to beat your holiday debt hangover. Personally I have spent over $ 900 on X-mas gifts and preparations. I by no means regret it, as nothing compares to that fuzzy, warm feeling this holiday brings. And those piles of credit card bills are just side effects of the celebration.
I believe I was not the only one to blue a whole bunch of money during these holidays. Christmas consumerism is a wide-spread disease nowadays. And the statistics proves it. A recently conducted survey has shown that every American spent about $ 800 in the average during Christmas period. That is quite a severe attack of your personal or family budget. This kind of spending is a beaten path to a credit card debt. So, once you feel like you are on the edge of your financial setback, you might find the tips bellow helpful in solving your money problems.
So, you have been pushed further into debt by holiday season spending.
First what you are to do is to face the fact. Your Christmas debt hangover doesn’t mean that you are an irresponsible card holder. It just shows that you care for your close people and you are still a bit of a child at heart, who believes in magic. Once you admit that you are left with a hole in your pocket, it will get much easier to start planning out your budget for the oncoming months. Estimate the approximate losses your accounts have suffered. And don’t give way to despair.
Make up a six-month savings plan. That will help you a lot. You’d better not try to pay off your balance in full at a time. Potion out your payments. But try not to drag it out till next Christmas. Make maximum payments possible. But you don’t have to sacrifice buying the essentials, of course. Even every $ 50 bring you closer to the day when all your financial problems fade away as a bad dream.
Try to cut down your expenses, starting with groceries, ending with entertainments. You don’t have to go to extremes. Just set up a budget that will be a bit lower than your regular one. Think of getting things at a lower cost.
You can also get a balance transfer credit card and transfer your balance to this plastic. Thus you will save on interest rate. In case you keep your balance on one of your current credit cards, especially if it is not a low interest credit card, try to manage your debt problems as soon as possible. Otherwise, you will lose money on your annual percentage rate.
Think of all extra spending that you will face during next 6 months. Take into account all anniversaries, birthdays, other celebrations, trips, etc. This will help you to create an appropriate budget. And write a financial scenario for your next Christmas beforehand. Don’t put it aside till December. You might consider getting one of the plastics with favorable rewards programs. A cash rebates rewards credit card, for instance. This will reduce your risks of getting into debts next year.
And, finally, stop promising yourself “to start over” next January. Just really do it. It is not that difficult. It, actually, will take you not that much time and efforts as it may seem.
So, there are the simple rules that will hopefully help those, who have overspent a bit this holiday season. I am determined to follow them myself. So, you are not alone. Cheer up!
Oh what fun it is to pay off your debts till next year, May…
Yeah, sounds a bit gloomy. I know I am no song writer. And maybe “next May” is an exaggeration. But now that Christmas presents are opened, delicacies are almost eaten up, you no longer hear bells jingle, and the Christmas magic fades away, it is right about the time to sum up your holiday expenses.
The reason for this issue I am going to write about is quite clear. People spend more and more money during Christmas shopping season every year. Since it is a sore point for me as well, I am up to give you some tips on how to beat your holiday debt hangover. Personally I have spent over $ 900 on X-mas gifts and preparations. I by no means regret it, as nothing compares to that fuzzy, warm feeling this holiday brings. And those piles of credit card bills are just side effects of the celebration.
I believe I was not the only one to blue a whole bunch of money during these holidays. Christmas consumerism is a wide-spread disease nowadays. And the statistics proves it. A recently conducted survey has shown that every American spent about $ 800 in the average during Christmas period. That is quite a severe attack of your personal or family budget. This kind of spending is a beaten path to a credit card debt. So, once you feel like you are on the edge of your financial setback, you might find the tips bellow helpful in solving your money problems.
So, you have been pushed further into debt by holiday season spending.
First what you are to do is to face the fact. Your Christmas debt hangover doesn’t mean that you are an irresponsible card holder. It just shows that you care for your close people and you are still a bit of a child at heart, who believes in magic. Once you admit that you are left with a hole in your pocket, it will get much easier to start planning out your budget for the oncoming months. Estimate the approximate losses your accounts have suffered. And don’t give way to despair.
Make up a six-month savings plan. That will help you a lot. You’d better not try to pay off your balance in full at a time. Potion out your payments. But try not to drag it out till next Christmas. Make maximum payments possible. But you don’t have to sacrifice buying the essentials, of course. Even every $ 50 bring you closer to the day when all your financial problems fade away as a bad dream.
Try to cut down your expenses, starting with groceries, ending with entertainments. You don’t have to go to extremes. Just set up a budget that will be a bit lower than your regular one. Think of getting things at a lower cost.
You can also get a balance transfer credit card and transfer your balance to this plastic. Thus you will save on interest rate. In case you keep your balance on one of your current credit cards, especially if it is not a low interest credit card, try to manage your debt problems as soon as possible. Otherwise, you will lose money on your annual percentage rate.
Think of all extra spending that you will face during next 6 months. Take into account all anniversaries, birthdays, other celebrations, trips, etc. This will help you to create an appropriate budget. And write a financial scenario for your next Christmas beforehand. Don’t put it aside till December. You might consider getting one of the plastics with favorable rewards programs. A cash rebates rewards credit card, for instance. This will reduce your risks of getting into debts next year.
And, finally, stop promising yourself “to start over” next January. Just really do it. It is not that difficult. It, actually, will take you not that much time and efforts as it may seem.
So, there are the simple rules that will hopefully help those, who have overspent a bit this holiday season. I am determined to follow them myself. So, you are not alone. Cheer up!
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