What To Expect When Applying For Life Insurance?

What To Expect When Applying For Life Insurance?

For many, Life Insurance is the most affordable, reliable and secure way to ensure their families have enough financial resources in place in the event of a loss. Applying for Life Insurance is now easier than ever with options to apply right on-line.

THE APPLICATION PROCESS: The Life Insurance application will ask for some basic information including:

– Name, address

– Height, weight, date of birth

– Habits and lifestyle (smoking habits)

– Medical history

ALWAYS TELL THE TRUTH! When getting life insurance quotes, it’s important to tell the truth. The information you provide helps the insurance company calculate the policy premiums and if an insurer discovers you have lied on your application about basic information OR lifestyle/habits, it could result in an increase to your premium, the cancellation of your policy or coverage, or the denial of your claim.

In some cases, insurance companies will accept your application answers for health-related questions. However, some will require an in-person medical exam. Typically, for lower coverage amounts of up to $250,000 or less, a simple health questionnaire is likely. For higher coverage amounts or for customized individual insurance policies a detailed health screening is more common. Where this is required, your insurance provider will arrange for a medical examiner to visit your home or office, or you will be asked to attend a clinic selected by the insurance company, where they will review your personal and immediate family medical history, take your blood pressure, check your physical attributes, take a blood & urine sample and also review your lifestyle habits that could affect your overall health, including exercise, smoking, alcohol, stress, hobbies, etc. Depending on your age, there may be additional testing like an EKG, X-Rays, or cardiovascular tests.

Once examined, an insurance underwriter will review your application and medical exam … READ MORE

What You Need to Know to Find the Best Car Loan

What You Need to Know to Find the Best Car Loan

To help you find the best car loan you need to understand how APR and loan terms work.

– APR – this is the interest rate at which the lender is offering funds

– Loan Term – this is how long you have to pay the money back which you have borrowed.

One of the most cost effective ways to borrow money is to balance APR and a loan term. Many low APR offers are only available on long term products or are subject to many underwriting conditions. At first these seem like a good deal but when you calculate how much interest you are paying over the whole loan, especially once you have confirmed the true APR, you may find that it is actually better to take advantage of the fixed rate offered to you through the dealership.

Setting Your Budget

The best car loan is not just about finding the cheapest APR. You also need to make sure the product can work for you and this means setting your budget. Too many people get carried away and take out finance deals that they cannot really afford. You must never borrow more money than you can afford to repay out of your monthly income. This just puts a huge strain on your finances and makes it very difficult for you to meet your financial obligations. Here are a few tips for helping you to set your budget:

– Existing Repayments – look at your existing credit products including credit cards, store cards, personal loans and mortgages. Calculate how much you need to meet these repayments each month.

– Essential Bills – make a list of all your essential bills such as utilities, groceries and fuel.

– Extras – also make a list of any extras you spend on during … READ MORE

On the Risk of a Stock Market Collapse

On the Risk of a Stock Market Collapse

They say money makes the world go ’round. Yet with the recent collapse of Wall Street’s securitization business came the end of a largely unregulated, credit creating machine equipped with an infinite multiplier. Gone is capacity once possessed by investment banks, hedge funds and private equity firms to essentially create money out of thin air. Indeed, this capacity had been largely encouraged by Federal Reserve Chairman Alan Greenspan immediately following his appointment just weeks prior to the stock market crash of October 1987. Wall Street’s securitization business became a formal means by which the financial economy was almost effortlessly able to expand up until 2007. Securities once possessing a full measure of “money-ness” (not unlike a dollar bill) facilitated the financial economy’s unchecked growth until those securities tied to sub-prime mortgages became “toxic” — unable to be traded at any price.

The now dysfunctional credit creating machine which once was Wall Street’s securitization business — itself having been principally powered via City of London connected offshore financial centers (through OTC derivatives) — over the course of recent decades helped both build and mask all manner of financial and economic imbalances. With its seizure a huge, capital sucking hole has been blown into the global financial system, requiring all manner of extraordinary support. Truth is, however, these support arrangements do little more than buy time in which deep, long-delayed structural adjustments might be made. Sadly, though, practically nothing in this effort is being done. Rather, an attempt at perpetuating unsustainable global dependencies built up by the now-defunct credit creating machine are instead being promoted. In effect Wall Street’s deep-seeded troubles are being put off for another day. Furthermore, the fundamental problem the global financial system faces is being made only all the more vexing — and ultimately insurmountable — now that … READ MORE

Stock Market For Beginners – What is Your Investment Style?

Stock Market For Beginners - What is Your Investment Style?

Stock market is a very interesting concept and it can also give you a high rate of returns. However, investing in the stock market can be risky at the same time and if you are not careful, you can incur huge losses. First of all before going all out and investing in the stock market, understand what kind of an investor are you.

There are usually three types of investors, namely low risk taker, high risk taker and medium risk takers. Depending on the type of investor you are, you should choose where to put your money.

If you are the kind of person who does not like to take any risks in life, then probably the stock market is not the correct place for you. You should keep your investments low and also take a step by step approach towards your investment. You should also get enrolled with a stock broker who can guide you. Again, you should make a careful choice about your stock broker.

For medium risk takers, they can buy a combination of mutual funds and individual stocks and build their portfolio. There are several options for them as they can be flexible and deal with little bit of losses. However, you should keep your investment mid range and should not get overwhelmed when you are making good money. That is the biggest risk with this kind of investor. When the stocks are doing very well, they tend to go over boards with their investments and this strategy of investing can actually backfire.

A high risk taker is used to risks and they also tend to know the stock markets well. They seldom need advice. They know that taking big risks can reap large returns or large losses and they are prepared for them.… READ MORE

Lump Sum vs. SIP – Which One Is Good For An Investment?

Lump Sum vs. SIP - Which One Is Good For An Investment?

Investment in mutual fund’s schemes can be done in two ways. The first way is investing the whole amount at once i.e. lump sum. The second way is to start a systematic investment plan (SIP). Both ways are very different from each other. Lump sum route involves making an investment in mutual fund scheme in a single instalment while SIP involves investing in fixed instalments throughout the year either on monthly, quarterly or half yearly basis. In this article, we will understand which way of investing is good for you i.e. lump sum vs. SIP.

Let us first learn about which type of investment will give you higher returns.

Lump Sum vs. SIP: Which Type of Investment Will Give You Higher Returns

The stock market condition determines which investment type is better between lump sum and SIP. When the market is in bullish mode or an uptrend, lump sum investment can be considered good, but in the bearish or falling market, SIP will give you better returns in comparison to lump sum investment.

Lump sum and SIP investments both have their advantages but overall SIP investment is considered better than the lump sum. In this section of the article, we shall learn the advantages of SIP over lump sum investment.

Advantages of SIP Over Lump Sum Investment

  • Compounding

SIP investments can create good wealth for you because of compounding effect. This is because in SIP you earn returns on the already made returns on your investment. The returns remain invested in the SIP and they keep growing if held for long term horizon.

  • Rupee-Cost Averaging

It is not possible for anyone to time the market correctly. In such a scenario, SIP is the best option to go for. This is because in lump sum investment you buy the mutual fundREAD MORE