The very mention of the term disability insurance evokes mild cynicism from many people. There may not be takers for insuring the risk of suffering a disability precisely because people believe themselves to be miraculously immune to disabilities. But a national survey of younger population aged 22 to 25 years revealed a shocking fact that one in four of our youth are getting affected by disabilities covering temporary to critically permanent disabilities that affect their employability.
Self-employed workers are more at risk because they don’t have employers with deep pockets providing work incentives and disability compensation, and a disability places an intolerable burden on their business and income earning capacity.
This is what you should know about disability insurance if you happen to be slotted in the self-employed category:
Insurers are less kind to self-employed because they are perceived to be in the higher risk category
Ask any freelancer or self-employed entrepreneur and he will tell you what he misses most is the steady pay check and the luxury of permanent employment and all the facilities that permanent employees take for granted. Industry watchers say insurers are very sensitive to risk and they will need the reassurance that you are gainfully employed drawing a steady income, and that you are not a fly by night operator hopping between jobs.
So the self-employed will have to dig out verifiable records showing their income and they will also have to prove that they are not in the high risk illness prone category. Above all insurers will want to know whether you are in a position to pay regular premiums.
To sum it up you need to produce at least three years of steady income proof and a reasonably good health record to make insurers consider your policy application favourably.
An important issue is how insurers will treat your passive income
Let’s assume for the sake of illustration that you earned $55,000 the previous year from your regular vocation and you also earned $5,000 from writing articles for a publisher. If you employ an insurance agent he could negotiate http://www.qikcartitleloans.com/es/how-people-stand-to-gain-through-texas-auto-collateral-loans/ a better insurance package that takes that $5,000 income into consideration.
On the contrary if your passive income happens to be a substantial component of your regular income, the insurance agent could probably convince the insurance company to consider your case if it can be proved that a disability won’t hinder your chances of losing that passive income. For example let’s say you are a contractor doing plumbing jobs for bigger firms and for residents in your metro and that involves a great deal of movement, and you suffer an accident that partly impairs your ability to move around. The disability might not hinder your work a great deal because you can still use your arms and hands freely for routine plumbing jobs. Now supposing your major income was sourced from oDesk contracts for article writing, it can be argued that the disability would not impair your ability to use a computer keyboard to complete writing assignments.
Understanding various types of disability insurance products
Some types of disability insurance policies are portable so even if you lose your traditional job you can still enjoy the benefits of the policy after you shift back to passive income freelance jobs. To err on the side of caution get these policies before that eventuality materializes and before you leave the traditional job.
Some professional associations offer specialized insurance for persons affiliated to their local chapters. So if you happen to be a lawyer for example, the local bar association could be your gateway to policies that extend reasonably good coverage and end up being cheaper on your pocket.
Make sure you land an experienced insurance agent
It pays rich dividends to identify an insurance agent who has a keen grip on insurance companies and superior knowledge about disability insurance policies. An agent that is a specialist in the disability insurance field will be of greater help than a generalist who happens to be a jack of all trades. For you the International Disability Insurance Society may be the safest entry point to research viable options.
To sum it up it can be said with a great deal of authority that your physical wellbeing and your personalized skills and talents are too precious to remain uninsured throughout life. What happens if you lose your skills through an accident or mishap and that affects your employability? Disability insurance is a momentous decision that deserves more consideration than we assume it does.
With low interest rates and negligible growth prospects, Bank savings accounts are losing their sheen but the same is not true of Money Market Bank Accounts or MMBAs that are more favored options for the growth conscious investor.
This is what makes the Money Market Bank Account worth considering
In money market accounts the rates are linked to movements in the money market where safer government investments and low risk corporate bonds rule the roost. As these instruments yield higher rates, the rates you get for depositing funds in MMBAs is higher than regular savings accounts. These accounts extend nearly all the privileges as regular savings accounts and you are permitted to make maximum six withdrawals in a month (three by check). This increases the savings potential of MMBAs and they are very useful for parking emergency savings.
MMBAs are not the same as Money Market Mutual Funds (MMMFs)
The MMBA is a bank account that attracts FDIC coverage. The MMMF is an investment opportunity that doesn’t enjoy FDIC cover and it exposes you to market risks just like stocks and bonds.
The basics of operating MMBAs
You require at least $1,500 to $2,500 to open an MMBA unlike regular bank savings accounts. Because there are restrictions on the number of withdrawals from such accounts, banks levy stiff penalties if you exceed the permitted withdrawals, so it would be advisable to read the Bank’s rules before opening these accounts. Prepare yourself to keep funds for longer periods to make noticeable growth in savings and refrain from transacting regular payments as you would do in regular savings accounts.
Persons most suited to operating MMBAs
In case of Bank Certificates of Deposit (CDs) you are committed to depositing money for longer periods to enjoy full benefits but an MMBA gives you instant access to cash in emergencies. Purely in terms of yield on your money, the MMBA offers you a solution midway between savings accounts and CDs. You should not assume that an MMBA is a wholly risk free investment. Like stocks and bonds risk is an inherent aspect of an MMBA and you are likely to suffer losses just like stock market investments.
What do we make of Money Market Mutual Funds?
These are market related funds that are linked to short term corporate debt and up to the financial crisis of 2008 they were actually considered to be a safe bet. The crisis exposed their loss making nature. If you don’t mind exposing yourself to a higher market risk then MMMFs offer an attractive growth opportunity. Leaving aside the memories of 2008, MMMFs are still attractive to legions of investors as they feel they can make their emergency funds grow at a reasonably faster clip, and their linkages to safer securities makes them less risky than stocks.
Talking of market risks there is absolutely no guarantee that your returns will consistently outgrow inflation. You will definitely make more money than MMBAs and savings accounts but you also have to prepare yourself for the risk of losing cash. blog url Moreover, the market regulators are chewing their nails trying to bring in legislation governing Mutual funds that will prevent a repetition of 2008. So you need to study these changes and assess how they are likely to impact your investment strategies before taking a leap of faith.
The last word
Consider the Money Market Bank Accounts as a neat compromise between low growth savings accounts and higher yield CDs, where your emergency stash rakes in a decent return to make you sleep soundly. It’s far better than parking money in savings accounts that give you transactional flexibility but deliver slow growth that just doesn’t compete with inflation. It’s less rigid than Certificates of Deposit and allows you greater flexibility in the sense that the money is instantly at your command as liquid cash whenever any emergency threatens you.
The Money Market Mutual Funds are a different piece of cake. They belong to an altogether different category of risk that compels you to make a choice between low risk medium growth instruments and high risk high growth instruments. The best option is to park your emergency funds in better yielding MMBAs and to park a proportionately lower amount in MMMFs and stocks and bonds in a ratio that spreads the overall risks carefully. Such a division of investments is a must if you want to make serious money in the long term on your hard earned savings.
nullRaising children is an awesome responsibility, and as children grow up, cross adulthood and mature the same “children” begin to realize that they need to return the favour by looking after their parents as age and infirmity overcomes them. Old age is replete with lifestyle changes that take over as the human http://www.qikcartitleloans.com/es/locations/auto-title-loans-mckinney/ body slows down and hitherto healthy bodies become weaker and disease prone and quirky. This is the time when youngsters need to give a lot of their time and attention to parents to ease their transition to a more relaxed and care giving period.
When it comes to finances, it is basically the children’s responsibility to see to it that their parent’s needs are taken care to the extent possible. This role assumes importance because it may not be possible for parents to squeeze in all their benefits when they are living on a reduced and inflexible income. Food, shelter and medication are not easy to acquire and parents need to shell out more money than ever before to make ends meet. What adds to their misery is the escalating cost of health care, therapy and medication. Parents do need financial assistance to tide over cash shortfalls in their daily needs.
The case for supporting ones parents is compellingly strong, a dire necessity that can’t be ignored under most circumstances, and you would be hard pressed to find children that deliberately neglect their parents or withhold financial assistance where financial assistance and care is the need of the hour.
But there might be an exception to this trend; consider a situation where ones parents lead a spendthrift and extravagant way of living with scant regard for savings and make zero efforts to grown investments; parents that lead a “now or never” type of existence with no thought for tomorrow. Such parents would be deliberately ignoring or neglecting to lead a financially prudent lifestyle. What would you do with such parents? Would you pursue the same principles and tackle such parents as you would in the case of financially prudent parents?
One choice before you would be to hep such parents out of filial responsibility and a sense of obligation because after all family is family and blood is thicker than water, and we all need to stick together through good times and bad. Besides, one can’t forget the fact that at a vulnerable point of time we too were totally dependent on our parents and they made no compromises when it came to dedicating their time, energy and money for rearing us.
This is one side of the story looking from the perspective of the children, but what of the parents that are profligate? Parents that live life king size like it was their last day are exhibiting a high degree of selfishness and their actions are patently anti-family and more of a self-seeking nature that is not conducive to family cohesiveness. Such parents have no regard for their own future and they are also compromising the security and integrity of the children and their children’s future.
The worst scenario is having parents that are highly skilled and intelligent but who refuse to use their skills to work or earn an income or bring in additional streams of income. Had they worked to nurture a positive income flow they would have taken a lot of pressure off their retirement kitty and they could even have postponed their withdrawals. If parents are financially responsible they could delay taking financial help from their children unless they are utterly compelled by bad health or indigent circumstances.
The million dollar question is would you support parents that are financially profligate? Whichever way you lean you might not have much of a choice because many states have filial responsibility legislation in place that obliges you to provide basic needs and even home assisted care.
But just for the sake of argument let’s say law is the last thing on your mind. The moot question is would you set aside your misgivings and help parents that are helping themselves more than fulfilling their responsibility to you and your children?
Perhaps the best answer to that question is to help such wayward parents out of filial responsibility but to also educate and guide them in such a manner that they open their eyes and regain their lost perspective and take bold steps to set right the wrongs they are committing. To sum it up you need to help, guide and educate your parents and lead by example.
Most people must have experienced this difficulty – it is much easier to locate the ideal airline and the flight that closely follows your time schedule, but just try booking that flight and travel sites simply lead you up the garden path. You find yourself wasting ample time browsing innumerable web pages finishing the formalities for booking tickets without getting anywhere near your goal the funny thing is that you may end up spending a lot more money on non-essentials and so called freebies before you get to click the book-here icon. Ultimately, a flight booking becomes much more costly than what the airline or agency had advertised.
A case in point is baggage fees, the amount you pay for checking in your bags at airline counters. Unlike yesteryears people are travelling more and have been molly coddled with frequent flyer statuses and special privilege airline cards and travellers have learned fast how to circumvent baggage airline fees. This created a huge revenue loss to airlines and they promptly responded by charging for various miscellaneous services.
If you examine the matter closely you will realize that carry-on baggage fees, phone in for reservation fees, priority-boarding category fees, priority check in status fees, and change of reservation or cancellation fees are among a host of other charges that are gently chipping away at your budget. Even blankets and pillows and food and beverages have not been (source) spared and seemingly innocuous service charges have been incorporated to inflate the final bill. Credit cards have the universal “convenience” charges incorporated in payments.
While it may not be practical to avoid all these extra charges it will help you to book tickets that are cheaper even after including these charges. These are some of the viable money saving techniques adopted by seasoned flyers:
Is low fare booking what you are looking for? — Ultimately it is up to each individual traveller whether he prefers low cost air travel without the frills or he desires a more comfortable travelling ambiance with some perks thrown in which makes the package more expensive in the final analysis. There are airlines that include everything in the listed price or which present options that you can check or ignore, and that is a great way of knowing and controlling the cost that you bear. But for all other airlines you have to make it a point to enquire and understand the full scope of airline charges before you venture to book your seat.
Make your packing as compact as possible — For the purpose of bypassing check in baggage charges people generally tend to pack the whole world into their cabin baggage seriously inconveniencing everybody and themselves. The smarter solution would be to package and ship bulky items cheaply to their destination well before you arrive, and hotels will be glad to hold your baggage for you on a confirmed room booking. Again, when it comes to packing try rolling up instead of folding clothes flat, pick and choose fewer clothes that mix and match better, pack smaller objects within larger containers and try to extract every inch of space from the baggage to avoid overflow.
Picking and choosing your seat without having to dole out extra cash — you may not know this but most airlines follow a definitive boarding policy and it pays to smartly find out what that policy is. The airline decides whether to fill seats from rear end forwards or maybe window seats first, then middle followed by aisle seats, or perhaps some other combination. The smarter option is to understand the policy and choose seats accordingly. It also pays to avoid checking in straightaway at the airport and instead to book your ticket online methods as online customers mostly get preference in seat allocation. There are several useful sites that can guide you in boarding procedures.
Airline credit cards can save you a ton of money if you travel frequently — if you use a particular airline for frequent travel it is safer to opt for a cobranded card that allows you facilities like priority in boarding, elevation to elite class, free check in for baggage and other conveniences connected to the hotels and restaurants partnered to that airline. You will make savings that are substantial considering the frequency of travelling and consistency of your final destination and choice of hotels. There are other cards that help you redeem cash and transfer points or miles.
Ultimately, making savings in airline fees is an art that requires a keen eye and ear for detail and the ability to comb the internet (wasting some time initially) for the best options that your money can buy.
The variable interest rate is one of the options available to people on http://www.qikcartitleloans.com/locations/car-title-loans-frisco/ the lookout for creating new mortgages. It came into prominence when fixed home loan interest rates moved beyond reach. Variable interest rates became controversial during the subprime crisis because the majority of homeowners opted for low introductory interest rates that eventually crept up forcing many people to default on their home loan payments.
People are rediscovering the variable rate of interest
On the surface it would seem rather risky exposing yourself to a rate that fluctuates. But for many it is a risk worth taking if the introductory rates are reasonable enough to make them eligible for home finance. Moreover, the types of variable interest rates operating today are markedly different – they are more like hybrid interest rates where the initial fixed rate of interest is pretty low for a period of up to five years. Following that initial fixed interest period the rate starts changing against its index. To avoid distress to the borrower the rate changes are put through only once every three, five or seven years till it tallies with the index.
So for a pretty long period the borrower faces a stable fixed interest rate regime that allows him to keep his borrowing expenses well within his budgetary constraints. In many plans it is observed that the fixed rate is lower if the initial offer period stays low.
To improve our understanding of the variable rate regime we explain the terms that are commonly used:
The Index rate
This is nothing but the yearly rate for Treasury (CMT) securities, or the Cost of Funds Index (COFI), or the London Interbank Offered Rate (LIBOR) which is leveraged as a threshold rate for fixing the home loan interest rate.
The Margin on your interest rate
This is a fixed percentage that is added to the index to determine your home loan rate. For example, a margin of 1% may be merged to the index of 3% to fix a home loan rate of 4%.
The Cap or maximum interest rate
This is the maximum upper ceiling for any rise in interest rate put through by the lender.
The Lifetime Cap
This gives the borrower a clear idea to what extent the interest rates are likely to rise during the period of his loan repayment. For example a 1/2/6 scenario would imply that the first rate change would be 1% followed by 2% and go all the way up to a 6% increase for the entire loan repayment period.
Getting over the “Payment Shock”
The payment shock is nothing but the inconvenience or added repayment burden a borrower faces when rates move upwards. Before applying the loan the prospective homeowner can talk it over with the loan counselor to crack the numbers and determine how each interest rate movement adds to his monthly repayment installment.
Solid reasons why homeowners refer variable interest rates:
You anticipate higher income
You have discussed with the loan officer and fully understood the implications of each interest rate change, and you feel confident that incremental raise in salary income will be more than enough to take care of higher loan repayment.
You are in the mood to sell before the rate hike hits your repayment
It could be that you are expecting a major promotion or change of residence due to career dynamics and you will be in a position to renovate and sell the home. You get the immediate benefit of lower initial interest rates and you can recoup the original investment through home sale.
You intend to move to a bigger home as your family grows
You are anyhow intending to move to a larger home to accommodate a bigger family, so it makes sense to tap a cheaper home loan that can be repaid early.
Your credit score is not up to the mark
You get time to improve your credit rating and with improved ratings you can opt for a lower interest loan in the near future.
Prices may move against you
You find it difficult to qualify for a fixed rate loan at the moment and you want to settle a good rate before the prices become unfavorable.
Anyway that you look at it, variable rates have a future and many people are finding it prudent to clinch a variable interest loan to make the best use of the favorable rates climate.
There’s a lot of confusion out there concerning what home loan or mortgage modification truly is.
Surely these are vexing times. I discuss with many homeowners every day who are wondering how to proceed and what’s happening. The economical slowdown we’re in has created unparalleled adversity with regard to the homeowner and with the monetary sector.
Thus let us cut to the pursuit. The banks DON’T WANT YOUR OWN HOUSE. Banks aren’t in the real-estate business – they’re in the financing company.
Yet, if the homeowner only cannot make payments subsequently the bank does not have any selection but to foreclose on the property and take possession of it to attempt to regain the principle number of the loan. These scenarios are occurring all around us and are unlucky. Enter the loan adjustment software.
If you are talking about mortgage modification, home loan alteration, President Obama’s Making Residence Affordable plan or any of the other of the many variations of a loan alteration it actually does not matter.
It Is in their greatest interest to help keep you at home. So your loan is more affordable for the homeowner for that rationale they may be willing to shift or alter the provisions of the initial loan and they’ve an increased odds of reimbursing the loan.
Most homeowners who are experiencing a monetary adversity need to remain in their own residence but are experiencing a decline in income for one rationale or another. The banks and the homeowners adversity want to have a performing loan makes a loan alteration a great match. In essence the bank and you are associates working jointly to get through this rough economical scenario with a mutually beneficial results.
The procedure of “changing” a loan identifies the negotiation procedure that happens between you (i f you select to take action on your own or another man or thing which you have chosen to negociate on your behalf) and your mortgage company.
You start making your recently agreed upon monthly payment once your loan is changed.
There Is substantially more here to talk about but I am out of space…. Make sure you take a look at our web site for more information with this topic.
The odds of getting the mortgage they want are lower than for great credit applicants, when poor credit borrowers are looking to purchase a brand new residence. That’s simply to be anticipated, but the good thing is that getting home loans with poor credit is way from being an impossibility. The chance for funds is welcome, while perfect periods can be ruled out.
It’s common knowledge that guaranteeing mortgage acceptance from conventional lenders, like banks, is tough but with numerous online lenders to select from, a competitive option is easily sourced. They’re also cheaper, with interest rates which are more adaptable and more competitive repayment terms.
Subsequently the odds of acceptance are enhanced substantially, if these are in good order.
What’re the Vital Areas?
So, guaranteeing mortgage acceptance essentially begins by comparing it to income, and computing how big is the present debt.
Once the quantity of the surplus income is understood, a reasonable repayment can be computed, thereby showing how big is the home loan most likely to be safe.
The Part of the Down Payment
Few individuals quit to believe that a deposit is more substantial to your mortgage deal than merely used to formalize the sale arrangement. The truth is the size of a down payment directly influences the size of the mortgage needed. Thus, when it is substantial enough subsequently getting a mortgage loan with poor credit is simpler.
In the end, over 30 years, that saving sums to $18,000.
Lenders additionally enjoy the thought of applicants because the fiscal discipline needs to save that cash is high vowing bigger down payments. In regards to contemplating allowing a mortgage loan that type of obligation is striking.
Get the Correct Lender
Eventually, the need for the lender is tremendous when trying to get a mortgage loan with poor credit. The reason being delayed penalties, fees and the unique terms will make the mortgage deal less affordable than was first idea.
To that end, approaching on-line lenders is typically the greatest method of guaranteeing mortgage acceptance, and the fact they have been understood to bill more competitive interest rates means they offer the least expensive mortgage loan options – as long as states and the standards are satisfied, naturally.
Nevertheless, constantly check the standing of a web-based lender in the Better Business Bureau web site before signing any loan contract.