Insurance

Review Your Home-Insurance Risks

August 2, 2018 By Twila VanLeer

Failure to update your home protection strategies could cost you as much as $10,000. A survey by Chubb recently found that although 90 percent of the included homeowners felt they were doing a good job of protecting their homes, some 64 percent had failed to update their home protection in the last year.

While most owners are concerned about fires, burglaries and other crises, they fail to realize that they can be damaged by water, the survey suggested. In fact, water damage is a more likely scenario than other emergencies that can cause damage.

About 20 percent of those queried said they install pipe insulation, and less than half check their appliance hoses regularly. Only 40 percent said they regularly maintain water heaters.

The best remedy is to talk with an insurance agent about the best coverage for your specific circumstances.

The average claim for water damage between 2012 and 2016 was nearly $10,000. That average includes some very devastating damage in some cases and makes it a very good
idea to assess your insurance coverage.

Most homeowner policies cover damage related to accidental overflow of water or steam from plumbing, heating and air conditioning as frozen pipes. Damage from a general flood is generally excluded unless you specifically pay for it. Knowing that your home is located in a recognized flood plain should be incentive for looking into specific protection.

To prevent water damage, be aware of where the main water valve in your home is located so if an emergency arises, you won’t waste time locating it. Turn off the main valve if you are leaving home to vacation or for other reasons.

Regular home inspections are wise and a safety check by a plumber every year could save money in the long run. Some insurance companies will give you a discount is you can show that you are taking these steps to protect your property. Technology is available to monitor plumbing for leaks.

Look Before You Jump Into A Car Lease

October 19, 2017 By Twila VanLeer

Leasing a car rather than purchasing one outright may be a cost-effective choice, but there are some fine details that might trip you up. Be sure you read the fine print before signing.

Consumer advice experts at Edmunds.com offer these tips to help you make an informed choice:

You may be asked to pay a hefty fee up front to qualify for the comparatively low monthly payments. Repaying may become a problem if anything should happen, such as theft of the vehicle or a wreck. The insurance company would reimburse the leasing company for the value of the car, but the money paid up front likely would not be reimbursed to the lessee.

The advice is not to pay more than $2,000 in advance, and less if possible. That would increase the monthly payment, but you’d have the option of putting the “pre-lease” amount into 1:18 AMan interest-bearing account. Or use what you have to help make the monthly payments. If something happens to the vehicle during the lease term, you won’t lose a chunk of money to the dealer.

“Gap insurance” is a very good idea. It covers you if the vehicle is stolen or totaled and your regular insurance doesn’t cover the full amount of its value under the lease terms. Like all vehicles, a leased car loses value as soon as it leaves the lot. Ask before the lease is finalized if the contract includes gap insurance. If not, you may want to keep looking for a lease plan that does.

Underestimating the miles you have driven in a leased vehicle could cost you. Many leasing companies base their low monthly payments on a low mileage limit. When you turn in the vehicle, the overages on mileage could add significantly to the cost. Ask for a higher limit to begin with if you are pretty sure you’ll run over the mileage limit. That could result in a higher monthly payment. Balance it out before signing.

If you fail to maintain the vehicle, you could pay more for wear and tear when you turn it in. A rule of thumb: If a scratch or ding is larger than the size of a driver’s license or business card, it is likely to fall into the category of “normal use.” Be aware of the leasing company’s standards before you get into the deal. If there is significant damage, you can expect to pay in full.

Leasing for a long time may entail additional costs. After the car passes beyond its warranty, usually three years, any costs for maintenance, such as brakes and tires, becomes your responsibility. You are then putting money into a vehicle you don’t own. You pay those costs over and above the lease cost.

Health Coverage Up In The Air

April 11, 2017 By Twila VanLeer

With President Trump hinting at dismantling President Obama’s Affordable Care Act health care plan, what’s the use of buying coverage now, even if you feel you need it?

The best reason is that health care is fickle. Today you may be able to get by and wait out the changes. But tomorrow you may be facing significant health care issues. That’s the nature of insurance of any kind. But with health care now being a huge consideration in your personal finances, it doesn’t pay to treat it lightly while waiting for the chips to fall.

If you are facing decisions regarding your own health insurance arrangements, make the potential for need the major factor, not the current haziness of what happens next in Washington D.C. It may take months or even years for the change in policis to settle out and you don’t want to risk a health disaster in the meanwhile, experts advise.

No changes are expected within the coming year, at least. The Republican-controlled Congress has indicated it will provide a transition period of a year or more, even if Trump should opt to repeal ACA soon after he is inaugurated. Congress also is toying with the idea of a replacement act that would significantly alter ACA. The future is too cloudy to base health care decisions on the “what-ifs.” Cutting funding now for the national program would leave millions of Americans without health care resources, and that’s a scenario even Trump may want to avoid.

More than 10 million Americans covered through HealthCare.gov and state markets that offer subsidized private insurance will see no changes. Also safe for the moment are those low-income persons covered by Medicaid.

The 2017 premium prices, which incorporate huge increases, were set months ago and have already been approved by the relevant agencies. Some people are looking at short-term coverage outisde the ACA exchanges. They generally cost less but also cover less. Those who choose this option are exposed to the possibility of being fined for being, to all intents and purposes, uninsured. But they are covered for major health expenses.

Those who are still uninsured when 2017 rolls along face penalties of $695 per adult or more, depending on household income. But the payment isn’t due until tax time 2018, and by then major changes in the national program may have taken effect. Trump has expressed particular opposition to this aspect of ACA.

The future is not clear, but your need for health care coverage is. Make your decisions accordingly.

Investment Trends For Personal Finance In 2016

March 7, 2016 By Twila VanLeer

What’s happening in the world matters to your personal finances. The larger socioeconomic trends filter down to your own pocketbook whether or not you want them to. Following are current trends that may affect your finances over the next five years, according to the experts:

Interest income will continue to be dismal.

Cash and savings accounts are being affected by global debt, aging populations and low energy prices. Countries have lowered interest rates they pay on short-term notes, in some cases paying negative interest rates. That means the lenders have to pay a fee to own debt securities. The results trickle down to the individual. To offset, the experts advise that you modestly increase your allocation to global stocks and real estate.

Too much information can swamp you.

Technology makes an excess of data available through blogs, social media and emails. With so many options and relatively easy access to competitive products, analysis paralysis can cloud decisions. Turn off the “cookies” feature in your browser and avoid an overabundance of ads.

The costs of investing will continue to drop.

In the investing world, where so many factors are beyond the control of individuals, it is smart to lower expenses in hopes of increasing returns. But cost isn’t the only factor. Consistent savings, investment diversification and comfort with volatility are also to be considered. The experts say that instead of focusing solely on low fees, you should create an investment strategy that aligns with your goals.

Life insurance costs are going up.

Insurance companies earning less on their portfolios may opt for premium increases for whole and term life policies. The companies make their money on premium income and investment performance and they share the pain with customers when things are not going well for them. To counter, you might consider buying term insurance for the longest time span that makes sense to you. Term life, unlike whole life and other so-called permanent policies, has no cash component and usually expires after a set number of years, so it usually is cheaper. If you want permanent life insurance, look at a variably policy from a lower-cost but reliable provider. You then take a moderate risk over a longer time and grow the policy’s investment.

Buying Your Own Health Insurance

October 18, 2009 By Sherry Tingley

Buying your own health insurance is not the easiest thing to do. Because of the economy and the huge number of people who currently do not have health insurance, finding your own health insurance is something you may have to do.

First of all, you probably feel quite vulnerable without health insurance. Being human, we are all just one accident or one major illness away from being rocked off our secure financial boat especially if you don’t have health insurance.

You may have been without health insurance months or possibly even years. Maybe you were let go from your regular job because of company downsizing. Maybe you have tried to get insurance but you weren’t the perfect healthy specimen that insurance companies want to offer individual policies to.

It can take you 30 seconds to have an accident where you can fall and hurt yourself. When you break your ribs with that fall, it can cost you up to $9,500. You’ll need an ambulance ride to the hospital, x-rays, and possibly a CAT scan. You might not even stay at the hospital for more than 24 hours and still have that large bill. Needless to say, going without health insurance could very easily wipe out all of your savings and put you into debt you never dreamed of.

Say you had an accident and fell down your stairs and hit your head. This type of accident might cause internal bleeding in your brain and you might need surgery. You might have to be in the hospital for a month. Your bills will mount faster than you could ever imagine and soon you are owing hundreds of thousands of dollars for your care.

When you buy health insurance, it’s not like going shopping for other types of insurance. There must be hundreds of car insurance offices near you, but health insurance offices are scarce. You might have to ask many people how to find out about buying your own health insurance. A simple solution to your problems is to try out www.ehealthinsurance.com. This company is a referral company that links you with insurance companies that can meet your needs. They are knowledgeable about many different companies offering insurance. If you don’t get accepted with one company they can easily help you apply for insurance with another company.

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