Author: Chillmaadi Admin

Deciding on the purchase of a life insurance as early as now is a vital move that you can do especially when what you have in mind is the assurance for your loved ones that even if they lose you, they will be financially secured.

Most young individuals don’t necessarily need a life insurance but you have to realize that you will need one as you age.

Why is it so? It is because your concerns become more profound. And the payment that you need to settle in line with your life insurance likewise rises as you age through time. The reason behind this is because of the fact that you become more prone to sickness and other accidents. Of course, your insurance company would want to pay for as little as possible so the life insurance premiums are adjusted to become higher.

Now when it comes to the choice of a life insurance policy, there are literally a lot of options that you can choose from. Have a brief look at the different types of life insurance and then determine which may fit you best.

The term life insurance. This is one of the most popular and commonly applied for types of life insurance. This type of life insurance policy is far cheaper than that of the permanent life insurance. If you think your finances are not that enriched, then this can be a good choice. But you need to know also its advantages and disadvantages. The good part of the term life insurance is that the payment is less expensive. Also, it can be affordable despite your meager financial sources.

However, its downside is that the insurance is only crafted to cover a specific span of time. As it expires, you lose all the benefits that you can reap out of it. Meaning, if you die after the time period which it covers, then your beneficiaries get nothing. But of course you can renew the policy if you want to.

The permanent life insurance. This type of life insurance comes in a myriad of selections. Among of which are the whole life insurance, the survivorship life insurance, and the universal life insurance. As a point of difference, the whole life insurance is considered to be a conservative type. It demands for a fixed rate to be paid for the premium.

On the other hand, the universal life insurance allows the holder to determine the amount of money that he is willing to invest on the policy. Meanwhile, the survivorship life insurance insures two people and the cash out is provided upon the death of the second member.

The different types of life insurance makes it possible for the would-be policy holders to obtain as much choices as needed in order for them to be able to pick out only the best deal that will be most appropriate for their needs. So that you will not be left in a daze, it would be wise to shop around for the different types of life insurance before marking your final choice.

Most people who want utmost financial security when it comes to their future invest in a life insurance policy. A life insurance policy is a contract made between the insurer and the policy owner. The insurer agrees to pay a specific amount of money upon the incidence of death or a terminal illness on the insured individual.

Because of its seemingly popular image for most of the individuals who seek for financial stability in the future, more and more people wonder how life insurance work. This article will hopefully shed light on the subject.

You should review the offers provided by different insurance companies so you could be sure of what you are bound to allocate your money for. The key element to figure out what is the best plan for you is to determine your financial status and as well as your stage in life. Do you have an ample amount of income to finance a whole life insurance or do you just want to have a considerable amount of money for a short period of time? Do you have children you want to provide for when it comes to their college education? These are important points to consider when you want to have a life insurance.

After choosing the plan that you want, you have to pay the insurance company every year, usually in a monthly basis, and the amount that you pay for is called a premium. The amount of money you pay will vary on the type of insurance that you have entered a contract in. If you were able to have a term life insurance policy, then you are paying premiums only for a specified number of years, ranging from about five to thirty years. Most people would like this type of insurance policy because it is relatively cheaper, but however, it does not accumulate cash value. If you want a type of life insurance which will stay with you for a lifetime, then it would be better for you to have a whole life insurance policy. In this case, the policy will cover you for a lifetime.

The insurance company invests the premiums that you give out to them, and the cash value accumulates as time goes by. In this case, you can be sure that you are really able to save some money by just paying the monthly premiums involved in the policy.

Now that you know how life insurance work, it is time to apply for one which you like. As you can see, you will not have any confusion regarding how life insurance work, because it is pretty much simple. In totality, most people would prefer any of the two types depending on their needs and financial security purposes.

Just remember to choose the best company to provide the life insurance for you, so you would not have any doubt or whatsoever regarding where does your money go to. You can never go wrong with a life insurance as a means of ensuring your financial security.

Life insurance agents commonly have the same tag line as they endorse to you the terms that their policies contain. They use the sweetest flowery words which directly cut through your sense of rationality so that you will be prompted to purchase a life insurance policy from them. Clearly speaking, a life insurance policy offers you two things–peace of mind and then financial security for your family.

As you know, nobody can tell the exact moment when the life which you have been lent with would be taken away. Have you imagined this sad and momentous day to happen? Have you thought about your loved ones? What would happen to them if they suddenly lose you? So here is the logic presented by the life insurance policies. So, to further enhance your knowledge about life insurance policy and its essence, better read on.

The life insurance policy requires the payment of the premium. As it goes, the acknowledged beneficiaries are able to claim their dues at the time of the policy holder’s death. Another good point that life insurance policies boast of is that it can be used to pay off any mortgages that can truly become a burden to the bereaved family. Now who would not want this deal, right?

There are basically two broad categories of life insurance policy. They are the term life insurance and the whole life insurance. The term life insurance is generally cheaper but it is only applicable for a certain point in time. If the policy holder does not die in the course of the covered period, there is the possibility that the family may not get anything at all. The exception is of course, when the policy is renewed.

It is strongly advised that you should look into the categories and varieties of life insurance policies before finally grabbing anything to purchase. There are chances that you may encounter discounted or low rate life insurance policies but it should not be a guarantee that it will work best for you. Researching is a must. And to better do that, you can try searching for life insurance policies and companies online.

Why should you search online then? Here are the top reasons.

There are numerous life insurance companies websites online so there is an increased chance of getting hold of the reliable yet cheaper life insurance quotes.

Online search is easy and convenient.

Those companies who grant online applications are generally cheaper because of the lesser document processing so that means there are lesser fees to settle.

Online advertisement is moreover more affordable than that of advertising over the television and radio networks and through the broadsheet.

Nowadays, spotting the perfect life insurance policy is no longer much of a hassle. There are tips from the experts and life insurance policy holders themselves that are available over the Internet which you may make use of as your guide in coming up with a wise decision about which life insurance policy would be best for you.

When it comes to insurance, there are people who are really skeptical. Afterall, you see nothing but a piece of paper upon paying a sum of money. Many did not see the long-term benefits of a Life Insurance policy until disaster strikes in their family. Many will even shun away from this topic because they seem to relate Life Insurance to Will because both are related to death.

Many individuals would rather opt to talk and discuss with beauty product or wardrobe agents than deal with the people who sell life insurance policies. But then again, such idea may not be thrilling or literally elegant but for the very practical beings, this topic concerts a great significance. Honestly, those individuals who prefer to better handle their finances would decide to invest on life insurance policies, so to speak.

I’m sure that if you are at this website, you are interested in life insurance. Here are some things that you should understand before you look for life insurance.

To improve the bad notion which life insurance has long been tagged with, this policy is basically crafted to protect your loved ones against possible financial constraints in the future should you as the provider for the family enter the gates of your Creator’s kingdom. You can never be sure about life as it is one of the uncertainties that the humankind has ever known. Death is said to come like a thief in the night.

So you need to secure a life insurance policy for these reasons–if you have a spouse, some children, elderly parents and relatives who are literally dependent on you, if you run your own business, if your retirement funds are insufficient enough to cater to the future of your spouse, and if you have an estate to maintain. To also enhance your knowledge about the life insurance basics, these are the uses for the policy of your choice. The money can be used to cover the expenses for your funeral and other expenditures, pay for the estate taxes and debts, pay for the daily provisions, be deposited along with your spouse’s retirement funds and as a donation to any charitable deed or institution.

Even if you don’t bear any dependents, you can still secure your own life insurance so as you will not become a burden to your family should your last hour comes. Now when choosing the policy that would serve your purpose right, you have two options to look into–the permanent life insurance and the term life insurance.

The permanent life insurance policy provides more benefits for your loved ones. They can claim against the policy at any moment that they lose you. Also, the money that can be claimed may be used to pay off other existing payable. The only drawback is that such policy is a lot more expensive than the other type.

On the other hand, the term life insurance’s benefits can only be banked on if the policy holder dies within the span of its term. These policies can be renewed too. The thing is, they are better options for those people who have lower income rates.

Now that you know the life insurance basics, you can better come up with a wiser decision.

By the time you finish reading this, you will be equipped with the knowledge about insurance. Well the first thing to note is that there are two major types of life insurance- whole and term.

However, we will discuss more about whole life insurance. What exactly is a whole life insurance? A whole life insurance is bought on a permanent basis and the insurance remains in effect until the pay out of the policy.

The policy will pay out upon the death of the insured or upon an event as specified in the policy.

Have you ever thought of the benefits? Well below are the benefits of a whole life insurance over term life insurance.

Guarantees

There is something that a whole life insurance can offer which term life insurance can’t. It is stability. Whole life insurance carries stable premiums, a guaranteed pay out and guaranteed coverage.

Another important thing that whole life insurance can offer you is that there are no limits as to time and often the pay out can occur before death.

Cash Value

If these benefits do not seem attractive enough you should read on. One of the greatest benefits a whole life insurance policy can offer you is cash back. What is cash back? This means you can borrow against the money or even cash out early.

This is considered one of the best policies because you cannot get that with term life insurance as there is no cash value.

However, if you borrow a certain amount from the policy you bought, you may not need to pay back but this means that the final pay out will be less the loan amount.

Flexibility

Most whole life insurance policy is very flexible. You can alter the benefit amount and change things according to your needs as years go on.

Additionally, because the policy carries cash value that you can cash out with at any time, you always have the option to take your policy elsewhere without losing the money you have paid into it.

However, whole life insurance is not for everybody as the premium are higher but it is the best option for people that needs a secured future for their family.

Life insurance is something that anyone with dependents and people who rely upon them should look into purchasing. It can give you the comfort because you will know that your loved ones get the pay out upon your death and that can help immensely in such a trying time.

Re-shopping a home mortgage loan can save you money, but it can also become a costly mistake. Elizabeth Warren and Amelia Warren Tyagi explain when to sign and when to run from a home refi contract.  From their book All Your Worth: The Ultimate Lifetime Money Plan.

1. Arm Yourself Before You Call. You can save a lot of time in the long run and make things a lot easier if you get ready before you start shopping.

• Clean up your credit report. The mortgage lender will start by ordering a copy of your credit report, so your best bet is to clear up any errors ahead of time. Order a copy of your credit report from each of the three big credit bureaus: Equifax, Experian, and TransUnion. (Depending on where you live, you can get your report for free or for a meagre fee.) Steer clear of anyone who offers to clean up your credit report for you; they charge a lot of money, and most of them don’t do any good anyway. This is strictly a do-it-yourself job. If you find any errors, notify the credit bureau immediately.
• Here are some common errors to look out for: mistakes in your name, Social Security number, and other personal information; accounts that are not yours; bankruptcies that are more than 10 years old, and additional negative information that is more than 7 years old (by law, the credit bureau is required to remove that information); credit inquiries that are more than 2 years old; missing notations when you’ve disputed a charge; list of credit card and mortgage accounts that are in good standing; closed accounts that are incorrectly listed as open.
• According to a recent poll, 1 in 4 credit reports contains an error serious enough to keep you from getting a good loan, so be sure to take the time to check your credit report before you apply for the mortgage.

• Gather your financial information. Gather your pay stubs, tax returns, bank statements, and the like. You’ll need this before you can finalise your applications, so you might as well gather it ahead of time. You can usually get a more accurate quote if you have all the information at the time you apply.

• Find out your current mortgage balance. This should be listed on your monthly mortgage statement. If you’ve thrown that out, then call the mortgage company and ask.

• Learn how much your house is worth. The lenders will need to know this so they can calculate a “loan-to-value ratio” (which tells them how much equity you have in the house). The more capital you have, the better your interest rate. Eventually, you will need an official estimate of the value of your home, but having a general sense ahead of time can help you with your shopping. So check out the open houses in your neighbourhood and take a look at the real estate section of the newspaper, so you get a ballpark estimate of what your house is worth.

2. Get multiple quotes. Before you buy something big — say, a washing machine or a new television — you probably check prices at two or three stores. Well, your mortgage probably costs 200 times more than your washing machine, so you should talk to 400–600 mortgage companies, right? Okay that’s a bit much, but you get the point — shopping hard for a mortgage can save you far more money than shopping for pretty much anything else. So put in the time to get it right. Here’s our rule of thumb: Five quotes before you quit. Five different mortgage companies with lots of information and plenty of range to compare. And if the quotes are all over the place, then you may want to get five more. The bottom line is that the time you spend here pays off big time.

3. Never forget that the mortgage broker does NOT work for you. The mortgage broker, like an insurance broker, gets you price quotes from a lot of different places and gets a commission for his services. So far, so good. But, mortgage brokers (unlike most insurance brokers) often get extra commissions from the lender if they talk you into taking a mortgage with a higher interest rate than you qualify for. That’s right: They get kickbacks for steering you to a bad deal. And it’s perfectly legal, so you’d better beware.

Yes, it is your money. Yes, you choose which lender will have your mortgage. Yes, the broker will tell you that he “checked with all the banks” and that he found you “a great deal.” But the fact is, mortgage brokers are a lot like car salespeople. The more you pay, the more they make. A recent study at Harvard Law School showed that people who went to mortgage brokers paid, on average, over $1,000 more than people who went directly to the mortgage lender.

Does this mean you should never use a mortgage broker? Not necessarily. Some reputable brokers will give you an entirely fair quote. (And some mortgage companies will steer you to a bad deal if you don’t use a broker.) But you should never count on a lone broker, a single Web site, or just one lender to show you all your options. The lesson is straightforward: You must get on the phone and get quotes from several different sources. If you’re not sure if a particular company is a mortgage broker, ask. And keep asking questions until you are sure you have the best deal.

4. Do not increase the amount of money you borrow. There are lots of people (including several so-called financial experts) who will tell you that it’s smart to “cash-out” your home equity and take on a bigger mortgage. Well, we’re here to tell you it isn’t intelligent. It is just plain dangerous. You are not “cashing” anything. You are only borrowing money that you will have to pay back someday — and you are doing it in the most dangerous way possible. If something goes wrong and you can’t pay, the mortgage company gets to take away your house. Remember this simple rule: When you refinance your mortgage, don’t let the bank talk you into taking on a single dollar of new debt.

5. Watch out for fees, points, and other fine print. Picture this: a team of lawyers fanning out through a forest to lay bear traps, which they carefully cover over with leaves. Then switch the image: The forest is just a mortgage agreement, and the leaves are just words to cover up what they are doing. But the traps are real, and you need to make sure that they aren’t in your contract. Here’s a list of the questions to ask, along with the answers you want to hear:

• What is the interest rate? By law, every mortgage lender must quote you the annual interest rate. (You may also be quoted the Annual Percentage Rate, or APR, which lumps certain fees into the total cost.) Once you have the annual interest rate, you can make an apples-to-apples comparison on the interest rate, which is probably the essential part of the loan. Here’s a rule of thumb: Unless you have recently declared bankruptcy or have abysmal credit (and we’re not talking about a couple of late payments) if someone wants to charge you more than the average market rate, this is probably a bad deal.

• How many points are on the loan? A “point” is just jargon for an extra fee of 1% of the total amount of the mortgage loan. Generally speaking, there is a tradeoff between points and interest rate: A loan with fewer points will have a slightly higher interest rate, and vice versa. If you think you will sell the house or refinance again in the near future, then your best bet is usually to avoid the points and pay the higher rate. Regardless of how long you plan to stay in the house, you should steer clear of any mortgage that charges more than 1–2 points. Don’t assume that all big lenders charge about the same fees. Not long ago, when most companies were charging less than 1 point on refinancing, Wells Fargo reportedly charged some customers as much as 10–12 points!

• What are the closing costs, origination costs, and other fees? Ask for a “Good Faith Estimate” of closing, origination, and other costs, and use this information when you do your comparison shopping. If the fees are unduly large, or if the estimate is in a range that is too wide to be useful (for example, we heard of one company that tells people that the fees are anywhere from $0 to $12,000!), walk away. This isn’t a company you can trust for the next 30 years.

• How long is the payoff period? The typical mortgage payoff period is 30 years. But if someone tries to steer you to a 40-year loan or an “interest-only” loan (where you never pay off your mortgage!), run the other way. And if you have a relatively short time left to pay on your mortgage — 15 years or less — get a 10-year or 15-year loan, rather than a 30-year. Lower monthly payments are great, but not at the cost of keeping you in debt for more years than necessary.

• Is this a fixed or variable rate? If rates are low, then it is a good idea to lock in the rate for as long as you plan to live in your house. You will pay slightly more for a fixed-rate loan, but the security is worth it; the rate on a variable loan can go up at any time. If you think you will stay in this house for the rest of your life, get a 30-year fixed-rate mortgage. If you are pretty sure you will move on in a few years, you might consider a mortgage that is fixed just for the first 5 or 7 years, which tends to be cheaper than a 30-year fixed loan. Brokers call such mortgages ARMs, for adjustable rate mortgages. At the end of the 5- or 7- year period, the rate can vary, but by then you will have sold the house and moved on. But stay away from any ARM that lasts less than 5 years; the risk that rates will rise while you’re still living there is just too high. And if you’re not really sure whether you’ll move or stay put, your safest bet is still a 30-year fixed loan. It costs a little more, but 30 years of easy sleeping is well worth the price.

• Is there a balloon payment? If the answer is yes, walk away. A “balloon payment” is a giant payment that will be required of you at some point in the future (on top of your usual monthly payments). These are notorious scams that have cost countless homeowners tens of thousands of dollars in extra fees, and many have even lost their homes.

• Is there a prepayment penalty? If the answer is yes, walk away. If you need to sell your home, or if you want to refinance to obtain a better rate in the future, a prepayment penalty leaves you at the mercy of your mortgage company — paying extra for the privilege of paying off your loan.

• Is there a Yield Spread Premium (YSP)? This is industry-speak for the kickback that gets paid to brokers for steering you to a bad deal. Ask if the loan has a YSP. If the answer is yes, walk away. And if you can’t get a straight answer, run away. These aren’t people you want to deal with.

• Do I have to take out Private Mortgage Insurance (PMI)? When you buy a home with a small down payment (less than 20% of the purchase price), most lenders require that you take on Private Mortgage Insurance (PMI). If you get in trouble and the bank forecloses, the PMI will pay the mortgage company off. It doesn’t benefit you and it doesn’t help you hold on to your house, so it’s really only there to help the mortgage lender, not you.

Having the vision to start your own business is not an easy task. This is because there are no second chances when you commit a mistake. When mistakes are committed especially when you are trying to raise capital, you have no other options but to take the consequence.

Mistakes cost you time and money, which are both in short supply. Therefore, you want to make as few of them as possible. If you make enough errors in judgment, you might be forced to terminate your project. Alternatively, you might find yourself having to continuously pump capital into a failing business just to keep it alive.

The first option is a complete disaster in itself, even if the means to raise capital was very efficient. This is simply because there is no more contingency budget for the exceeding budget. As for the latter, it would just negate the whole way of how to effectively raise capital, simply because it just goes to waste.

The whole point behind optimum means to raise capital is by preventing unnecessary expenses which could lessen the whole budget so as to have allocation difficulties already. This is the most difficult to master, especially first time businessmen. Besides having not much control and knowledge of the cash flow, there is much room for errors which would translate to more expenses.

When planning to raise capital, take the typical startup expenses into account: the cost of renting or buying a location for your office, employee’s salaries, logistical/transport costs, warehousing services (if applicable), and so on. You must also make an allowance in your capital computation for any unexpected costs that may crop up. Be careful not to underestimate the required budget.

Because you’re trying to raise capital, you have to pitch a good business plan to your potential investors. Make sure you’ve considered all of the above costs, and show them accordingly. However, your presentation to investors should really center on the potential profits your business will make.

When you are delayed in meeting your commitment you will have to pay the penalties. This will also mean a depletion of your raise capital. This happens when you are not totally focused in achieving your dreams. You might have other interests that you are more interested in then you meeting your commitments.

Trying to raise capital can be very difficult, but planning properly will give you a head start in the tricky game of business. You should enlist all the free help you can get and take stock of all your assets and resources. You may have more going for you than you realize.

Financial planning for the future is something that every person thinks about. There are many reasons why you need to plan for the future. It may be for your children future-their education. It may be for your retirement. You may also be simply planning ahead, putting away money to buy your dreamhouse or to buy a car.

There are a lot of means by which to make your money grow for you. Most Indians invest in gold. It is an age-old tradition because the value of gold is always appreciating. A lot of people also invest in bank fixed deposits. They are a very good way to lock in a particular amount of money for a particular time period.

Postal savings are another way to put aside a small sum of money each month. Mutual funds are also an excellent way to plan your future. However, many people avoid mutual funds or invest in the stock market. This is mainly due to the obvious risks involved in such investments.

But as the saying goes ‘there is no such thing as a free lunch!’ In order to obtain good returns, you have to be willing to take certain risks. A Mutual Fund is an investment tool that pools the money of a group of people so as to build a huge corpus. The money thus pooled is then invested in the stock market by a group of financial experts. These experts are called fund managers.

Investing in mutual funds is not as daunting a task as many would imagine it to be. All that is required is to have a demat account with a bank and one can then log in to the many online trading portals. These trading portals provide all of the necessary information to investors that are considering investing in mutual funds.

There are many kinds of mutual funds that are available for investment. They are basically classified equity funds, fixed-income funds and money market funds. All mutual fund plans are variations of these three asset classes. Equity funds that invest in fast-growing companies are known as growth funds while those that invest in companies of a certain sector are known as sector funds or specific funds.

Investing in equity funds involves a certain amount of risk as equity basically refers to shares of a company. But equity funds do in the long run, provide good returns. Fixed-income funds are more suited for those investors that wish to lock their money away and also take advantage of the tax benefits that they offer.

The most important thing to remember when you invest in mutual funds is diversification. Investors should invest in a basket of securities right from high-risk to the most stable. This helps to keep the investment portfolio balanced, even during market fluctuations.

Once your portfolio hit 500,000 or more, you then should begin to consider stepping away from mutual funds and allow a professional adviser to manage your money. Until that time you should consider the 5 reasons why having ETFs are the best way to build your 500,000 nest egg.

Number One: You will have an actively managed account by a team of professionals that will help your money to grow with out the worry of day to day trading yourself. These actively managed accounts can also be far less costly to you as the investor because these managers are often working with hundreds of millions of dollars of buying power, which means lower costs overall.

Number Two: Diversification is very important and ETFs can allow you to have funds within a number of different sectors and categories. As a result you then mitigate your risk since all your money will not be within one or two stocks.

Number Three:  There are clear guidelines that these fund manager and companies that run the funds must follow, which allows you to have clear transparency into the activities that they are involved in, in bringing you a return on your investment.

Number Four: Continuing in the vein of diversification, you can offset continued risks by purchasing into funds which represent varying degrees of risk.  That is, best large cap funds versus best index funds can be very different but blending them can create a healthy portfolio based on your needs.

Number Five: ETF Funds are very accessible to the mainstream investor and can carry significant reductions in costs.  Whereas you can receive allot of costs with individual stock, bond and commodities purchases.  There are two ways in which you purchase into these funds; load and no-load.  Each can have its benefits, so consulting with a professional adviser is always recommended.

As you can easily see, these are just 5 of the many reasons why you should be investing in ETFs until your portfolio has reached the magic value of 500,000.  Again, diversification does provide you with the opportunity to reduce the risks involved in investing into the market.