You May Be Paying Too Much For Insurance

You May Be Paying Too Much For Insurance

Many times, certain things happen unexpectedly wrong. The place where we live burns so rapidly all in one go, there comes an earthquake, our car strikes into something, or we get bit out of sorts, there comes a possibility that we have to suffer such loses for which we have to pay heavily that even we can’t afford. Due to efforts of some people in the past years, we are now able to overcome those storms without being involved in any risk factor. We can help each other by spreading the risk among us as a group, and that’s what insurance does.

Let us first know what is insurance and how does it work?

What is insurance?

Insurance is a promise by the insurance companies that they would compensate for specific losses occurred by ill-fate i.e. any natural disaster, illness, death, fire etc.

If we buy an insurance policy it will reduce the rate of risk factor by being transferred from us to the company. In actual, the there is no complexity in Insurance. It’s a simple way to proceed. We have to pay a particular amount to as insurance company that is known as Premium. In case, if certain tragedy happens, that can be enveloped by policy words, either lost or damaged items can be repaired or replaced by our insurer or they pays wholesome amount of it.

Kind of insurance you need…

Everyone knows many kinds of insurance exist such as life, health, car, home etc but you do not need every kind of insurance. The exact type of insurance you need can be decided by your circumstances and your outlook. Before buying any insurance, you must mention following four questions directly;

  • Explain the risk I would be insuring averse to?

It could be a sudden death factor, burning at home or car being stolen or being severely sick and under treatment.

  • Mention the number of chances for it being occurred

There exist a small probability of fire at home but if it happens, you have to pay heavily for it. The risks of car being stolen are high but it won’t cost you as high as losing your home.

  • What will happen if it occurs?

What happens if you die or your home gets fire or your car gets stolen? Will you be able to bear the expenses?

  • How much would it cost?

May be you have enough balance saved to overcome the cost or maybe you surely want to use your balance for this.

Purchasing insurance

Purchasing insurance from the providers of insurance will help you to buy around and compare quotes and cover. Maximum tasks for this are being done online. There are many different types of insurance covers and insurance policies. The insurance brokers and companies are always available for you help. They will explain how the policies work; they can find you one suited to your circumstances and even help in claiming. All these insurance companies, insurance brokers and financial advisors have to follow the protocol and get registered on the official government website Financial Service Providers Register (FSPR).

Here are the few tips that you must keep in mind when buying a policy.

  • Read the policy carefully.
  • Always choose the right excess.
  • Have an emergency fund.
  • Be honest and tell the truth.
  • Shop around
  • Don’t double up.
  • Combine insurance.
  • Look for a credible.
  • Take precautions.

Right cover is the key

All the insurance policies are not same. They have different rules and regulations. It’s better to compare policies as the decision will become easier for you. Go for the right cover as two policies can have same price. For example, a trauma policy will only cover certain named diseases, not all illnesses or injuries. There are few cheaper house policies which cover specific events such as fire, theft etc. but not all risks.

Also, some policies will pay for the damaged or stolen items. Others may only pay ‘present value’. If you want to know all the details, go to Insurance Council website. All insurance policies have different conditions and exclusions. These exclusions are for unfavorable events that take place without your control.

The crux of this discussion is that read the policy carefully. Know the terms and conditions in detail. Clear your mind; otherwise you may be paying money for policy that will not help you when you need it the most.

Making claims

In a perfect world, you would call an insurer and get fixed what is broken. But the world we live in is not perfect. Here, the process of claim is a little more complicated than that. There should not be any misunderstanding about the claim. Your claim will vary according to the type of insurance you need (home, life, health etc.).

The procedure for every insurance claim is quite same with a slight difference. Claims for home owners and car insurance require same basic steps.

  • Step 1

Make the right phone call. No matter what kind of claim you are filling, get in touch with your insurer as soon as possible. The faster you get the ball rolling, the sooner you will receive the outcome.

  • Step 2

Fill out the required forms. After you have contacted your insurer, they will send you few forms to fill. Many insurance companies give facility to fill online forms which makes process much smoother and quicker.

  • Step 3

Get your damages assessed. Most insurance companies will ask you to get damages priced by an approved party to make sure that they are paying you a right amount.

  • Step 4

Cover your deductible. You have to cover your deductible in full before insurance company will fork over its share of the total cost.

Make sure that you contact your insurer soon after the damage happens. The settler may choose to settle the claim by paying a sum of money. They may or may not repair or replace the items that have been damaged. In most policies, there is a value you have to pay as the first step of the claim. Be honest as insurance companies are wary of fraud and they will investigate if they have a slightest doubt of betrayal.

The amount of time it takes to settle a claim depends on different factors. It also depends on the severity and complexity of damage, how you quickly contact the insurer, how soon an adjuster is available, whether the company is handling multiple claims at once such as in case of natural disaster and so on. Considering all these factors, it is hard to tell the average time for claim settlement. The best thing you could do to settle claim in a timely fashion is to file as soon as possible and stay in constant contact with your insurer.

Smart Ways To Reduce Debt And Increase Savings

Smart Ways To Reduce Debt And Increase Savings

Debt is one of the few stressors in life that does not go away easily. Most dangerous thing about debt is that it gives so much stress that person falls victim to chronic diseases. Most stressful things in life-a car accident, death in the family, a divorce-happen and then they are over. Our bodies react to these losses and bounce back. But owing someone money completely becomes inescapable.

But if we take a closer look at the emotional, psychological and behavioral studies, it shows that there are healthier ways to spend money and decrease the debt, which will ultimately reduce the stress we feel.

We have gathered few important tips that you can follow to decrease your debt and increase your savings.

  • Stop creating more debt

The first thing you should avoid is to create more debt. Increasing debt will not take you anywhere. Instead, try to pay-off your entire debt in minimum chunks of money. Although, it won’t get you out of your debt but atleast, you will not be increasing your debt. Make possible to pay-off the debt entirely in just one shot. If you can’t, it’s fine to pay the minimum on your credit cards.

  • Pick one debt and pay-off completely

It’s good if you have only one debt to repay, but if multiple debts are lingering on your head, it is better to choose the one with the highest amount. In this way, a huge burden will fall off from your chest. Or make a big payment from your account every month to repay debt if you can’t do it all at once. Do the same for another debt and so on.

  • Build an emergency fund

Building an emergency fund when you have already a debt to pay-off seems dull. But it will give you an edge in emergency situations. An emergency fund can actually keep you from creating more debt by providing you with a safety net you can use in an emergency. Usually, the perfect emergency fund is six to twelve months of living expenses. You should atleast make $1000 in the short term.

  • Request for lower interest rate

Ask your creditor for lower interest rate on your debt. Higher interest rates keep you in debt for longer period. Your hard-earned money goes towards the monthly interest charge and not towards your actual balance. If you have a good credit history, you will easily be considered for lower interest rate request.

  • Put more money towards the debt

The more money you put towards your debt, faster you will be paying off for your own good. Create your monthly budget and try to find ways where you can cut your expenses and add them to pay your debt. You can also come up with the money for your debt by selling few expensive things in your home.

  • Use retirement fund or life insurance policy

Both choices are risky. Use these options when you find no other way. You may consider pulling money from your retirement fund but your savings will fall short when the time of retirement comes. Also, borrowing from your life insurance can also be considered but it will affect the death benefit your beneficiaries will receive.

  • Get a second job

Getting a second job or doing second shift on work is common way for people to pay-off their debts. No one can actually make it but if it does work for you, you will be debt-free before you can even imagine. For this scheme to work, put your extra shift money into the debt repayment. These extra hours are not permanent. Once you have paid-off all the debt, just sit back and relax. You will be back to your normal routine.

  • Make settlements with creditors

Debt settlement is also the solution if your accounts are past due or you owe more money than you could repay over a few years. Ask the creditor to accept a one-time, lump-sum payment to satisfy the debtor. Sometimes, creditors who agree to a settlement offer also agree to cancel the rest of the debt, but they typically accept these offers on accounts that are in default or at risk of defaulting.

  • Speak with a credit counselor-it’s free

If you are really struggling with your debt and you cannot manage anymore, try credit counseling. It’s absolutely free. They will help you in finding programs that can help to deal with your debts. A reputable and honest credit counselor will explain all the options that you can avail to clear your debt. Many people do not know about the debt-repayment programs but are relieved when they come to know about it. Speaking with a non-profit credit counselor about your options is confidential, non-judgmental and a better escape.

Increase savings

If the debt repayment has drained all of your savings, it’s time to build your savings again.  Before you pay for anything else, put aside some money into your saving account. The secret to increase your savings –whether it’s earmarked for your emergency fund or another savings account-is to pay yourself first.

Here are few tips to paying yourself first to increase the savings.

  • Make a habit to save every month. It doesn’t matter if you save a single penny every month; it’s about commitment you make. If you make it a habit, it will help you towards a healthier financial future.
  • Consider saving as the necessary work. Make it a priority in your monthly budget.
  • When you reduce or eliminate an expense, or save any money on grocery or shopping, put it in the savings account. Any fund, bonus, raise you get should be put in the saving account.
  • Always go for the job that gives you maximum benefits for example a good life and health insurance, any extra favor, free transportation etc. The less you pay for these extra things, the more you will be able to save for yourself.
Save The Money By Cutting The Chord

Save The Money By Cutting The Chord

Worried about soaring monthly cable bills? We have the answer.

Cut the cord. Yes, you heard it right. Cutting the cord can actually save your money.

Cable and satellite bills keep piling up monthly and you might be worried about the high prices that you have to pay for the service. Its 21st century and technology has advanced with unlimited streaming services. There are many alternatives that you can try if you are tired of this cable thing.

We have made a cord guide for you that can help you decide if it is a good decision to cut a cord and show you other alternative ways to watch your favorite shows on TV.

If cutting the cord is a right decision?

We know you really want to make sure if you can actually save money by cutting the cord and if it is really a right decision for you. Do not worry. Everyone has the right to do a proper research first. Before deciding to cut your cable cord, figure out how much you are paying the monthly bill. You can do a little math by checking monthly statement. The total of your bill will give you some to understanding of the figure to compare with other costs of alternatives that we will tell you. The goal is to make sure that you save your money.

Cable companies have started the business to cut the cable cord and offer you many other options for a suitable cost. Cord cutting means there are no contracts or any fees. You can also cancel the services at any time by just a simple button. Now how simple is that!

Recently a data was published that the average cable customer pays more than $90 a month. This is a huge amount for watching cable. Compare this cost with other streaming services and you will notice the big difference.

What are the other options?

After cutting the cord, you can go with having an antenna or switch to streaming services. If you are going to depend on streaming services, just make sure that your internet speed can handle the streaming. If you want to watch live TV, install an antenna. This is the cheapest way as you just need to purchase a good antenna and hook it up. Remember that only available channels in your local area will be there on your TV. Even if you have live TV, you are not bound to watch TV shows live. It’s your choice. There are methods to record your favorite shows and watch them later.

Talking about streaming services, there are unlimited options. HULU comes with a live TV and costs $45 a month. You can watch shows from every category and for the people of every age.

Sling TV provides its service with three different packages. These packages range from $25-$40 with many premium channels and international stations. DirecTV Now is also an online streaming service. It comes with no contracts and it charges $50-$70 depending on the package you pick.

YouTube TV is also a good option as it provides live streaming from dozens of networks. You can also consider PLAYSTATION VUE, PHILO, FUBO TV. You can also watch Network TV and Premium channels without a cable plan. You can also stream TV shows for free on Crackle, Tubi, VUDU and Pluto TV. There is no need to wait for your favorite shows as they are available readily on these services.

Netflix is the most popular streaming service right now in this advanced era. You have the option to choose from three plans that cost from $9-$16 with different options for HD content. Netflix also gives its customers facility of 1 month free trial.

Amazon Prime includes streaming access to TV shows and movies. Prime membership costs $120 a year. You can also pay in monthly installments. Amazon gives you access to thousands of songs in their library, unlimited reading of books and magazines, free unlimited storage of photos and more.

Let’s do a little math over here. The average cable or satellite user spends about $100 a month on their TV bill. It means his total bill of a total year will be $1200. Assuming you are the consumer who pays for both TV and internet; if you switch to a web-based service, it should not be too expensive. The cost of Amazon Prime plan is $99 a year, Netflix charges subscription costs $132 and Hulu has $96 cost. Even if you get all of them, you will still only be paying $327 annually. It will save you total $875. That’s a huge amount if you consider.

Major benefits

We have already given you an idea how you can save money by cutting the cord and moving towards other alternatives. It takes some time thinking about your viewing preferences. Considering all your options can be tricky sometimes. Just look at these three major benefits and the decision is yours to make.

  • The cost savings are significant as we have mentioned earlier.
  • You have a option to get a cloud DVR instead of a physical DVR box. It comes with many live TV subscriptions with no extra charges. It even enables you to tape shows to watch at your convenience.
  • You can easily watch on your phone, laptop or tablet while travelling.

For many, money is the only issue. With the cord cutting technique, you can save a whole lot of money. Apart from this, there are many other reasons. The viewing experience is way better on streaming services than cable TV. The quality is superior and you have a long list to watch. Everything comes through one-box and can be controlled with a single remote. Also, cutting the cord removes the difficulty of using a cable box. You can watch easily your dearest shows literally anywhere. The bottom line is that try to move to other alternatives and make a choice for your own good.

Save On Utility Costs With Solar Panels

Save On Utility Costs With Solar Panels

For many homes and buildings, the common phenomenon to produce energy is through sunlight. Those areas are considered lucky where there is an abundance of sunlight. However, understanding how it works is still not so popular among people. They do not know the unlimited benefits of producing own energy. The real question still remains, “Does solar power save energy”?

If we consider first law of thermodynamics, it states that energy can be transferred but it cannot be created or destroyed. Solar power is a source of energy that is renewable; it is not a method of energy conservation. In reality, it is a method that can drastically reduce our dependence on the fossil fuels.

How solar power can save you money?

Having a solar power system at your home can save you a great deal of money. You can have your own power plant if solar panels are installed at your home and they remain connected to the electrical grid. In this way, they will actually contribute to the grid. When the sun shines bright all day with no clouds in sight, solar panels can produce more energy. Any extra energy produced will automatically be transferring to the electric grid. By giving energy to the grid, you will be saving money instead of spending it.

Solar panels save energy but how much do solar panels save on electricity bills?

It depends on different factors; direct hours of sunlight and the size and angle of your roof are both important but local electricity rates play the biggest role in determining how much money you can save. The first step is to calculate how much you are spending every year on electricity bills. For example, the average annual electricity use required is approx. 10,400 kilowatt hour (kWh). Multiply that by the national average electricity rate ($0.1326 per kWh) and you will find that one home spends over $1,856 a year on electricity alone.

You have to keep in mind the volatile nature of electricity prices and determine the increase in electricity rates in the coming years. When you compare cost of utility electricity with home solar, also consider the increasing rates of electricity. Over the past decade, the trend shows that there is a 2.2% per rate increase in electricity annually. When you generate your own energy, you do not have to worry about the increase in electricity rates any longer.

Sunlight exposure

In cutting-off utility bills, the exposure of sunlight plays a significant role. If the sunlight falls directly on your roof and you are getting the best angle, your solar panel will have a great potential to save the energy. Usually, the location of your home, the amount of light it receives and the type of roof explain the exposure quantity. The efficiency of panels in your area can be calculated easily by using the Solar-Estimate calculator.

Be economical

Go for solar panels that suit your needs and can be easily installed. Usually solar panels are not very cheap. Without tax credit or incentives, the whole cost of a 5kW system lies from $15,000 to $25,000. The high cost can easily make it up to you in the coming years. The only cost associated with your solar panel is the cost of installation and any electricity cost that your system does not off-set 100% of your electricity use. Whether your system completely off-set your electricity or not depends on the accuracy of your PV system. You can easily calculate how many solar panels you will need to get the 100 percentage.

Benefits of solar panels

Environmental concerns

Although fossil fuels are cheap and generate inexpensive electricity but it is a disaster for environment. In contrast to that, solar power is completely clean; there is no air and water pollution and no green house gas effects.

Disruptions in energy supply

As the demand for energy has been increasing, we have been forced to take energy from outside to meet the ever increasing demand. Imported energy is also not reliable. Solar energy eliminates this problem and having solar energy at home, energy supply to distant areas is not a problem anymore.

Self-reliance

With the increased use of solar panels at home, there is a prevailing sense of self-reliance. The ability to produce energy at home makes you self-reliant. You do not have to pay heavy bills.

Furthermore, you can generate both heat and electricity from sunlight using different methods. The two important methods are solar thermal heating and PV panels. Solar thermal heating uses sunlight to heat domestic water. The pipes in solar thermal panel run the heated water to a storage cylinder for use by the household. Solar panels are installed on the roof of your house or garage. As described earlier, they gather light from the sun and energy is then converted to electricity for domestic use. The PV panels are available of two types: tiles or fixed panels. Panels are the cheaper option. These panels vary in size and length. Efficiency of energy increases with the exposure of sunlight but they can also produce electricity in areas with less sunlight.

As a responsible individual of the earth, we are clearly moving from heavy reliance on fossil fuel energy sources to electricity produced by renewable resources. The cost may be very high but the long-term pay-off will be permanent. It’s possible that eventually most of the homes will be either built with solar installations. You should not wait any longer as the upfront cost of solar system installation is easily justifiable by the long-term savings. If you have high electric bills and you are living in an area with abundant sunshine, you do not need to worry as your pay-off will come even sooner. You are just one step away from joining the solar revolution, install solar panels at your homes and make your own electricity. Having solar production at your home will put you in a better position to welcome an increasingly different future.

How To Make Your Car Get More Miles Per Gallon Of Gas

How To Make Your Car Get More Miles Per Gallon Of Gas

Nowadays, car fuel prices are on the rise and consumers are suffering. Gone are the days when you can carelessly drive your car without worrying about burning up too much gas.

There are important procedures that you, as a car owner, can take in order to improve gas mileage. The following are practical tips to conserve gas:

Close Windows – Windows that are open can create air drag that can decrease the fuel consumption by 10%.

Avoid Bumpy Roads – Rough roads should not be taken as much as possible. Dirt, bumps, rough roads and gravels can cause 30% increase in fuel consumption.

Keep Your Car Light – Take out unnecessary baggage. The trunk should be kept clean, any gadget, tools or loads that are not needed should be taken out. 100 pounds of extra baggage can affect fuel economy by two percent.

Drive Efficiently – Just drive reasonably within the speed limit. Remember that speeds of more than 60 miles per hour increase fuel consumption. Do not do sudden starts, accelerations and stops. Acceleration should be done gradually. The gas pedal should not be stepped on more than one fourth of the way down. This will allow the engine to function most efficiently. Gas conservation could reach up to 5 percent if sudden stops, jerks and accelerations are avoided. Make use of gears for overdrive and cruise control as needed.

Check Your Car Regularly – The car should always be maintained. The engine should be given a regular tune up, the tires should always have the right air pressure and efficiently aligned, the oil should be changed when needed and air filters replaced regularly. Clogged filters can affect gas consumption adversely by up to ten percent.

Don’t Burn Gas Unnecessarily – Turn off the engine whenever there is an opportunity. Idle engine wastes fuel. There are instances where the engine could be turned off; stopping for gas, waiting for someone, changing tire pressure, caught in traffic and a lot more.

Don’t Warm Up Too Long – Lengthy warming up of the engine should be avoided. 30 to 45 seconds should be enough time. Also check if the automatic check is removed after warming up the engine. This is usually stuck which could usually cause poor gas and air combination.

By following these simple tips, you will be surprised at how much money you can save on your car fuel. And guess what? The money really adds up if you continue to follow these simple practices for conserving car fuel!

How To Save Money On A Home Security System

How To Save Money On A Home Security System

I am sure that if you’ve decided to purchase a home security system, by now you must be utterly confused. The prices seem to vary a lot even for the very same device. This guide complements our guide called How to Choose the Right Home Security System and will help you make the right decision based on your needs.

If you are an average homeowner, then I strongly recommend purchasing a security kit. These offer the standard protection against common intruders and have proved their effectiveness time and time again. In the security systems industry, it is not the systems themselves that cost a lot but rather the customization. Just like buying a ready-made bicycle, it is far cheaper to buy it as-is than to select the individual components you want the bicycle to have and have everything put together. Security kits excel in providing a reliable standard for a do-it-yourselfer. Because these systems involve the bundling of multiple systems, you can expect a hefty discount. Who said that security must be expensive? The security kits demolish this myth and allow do-it-yourselfers to install and have a quality home security system.

There is another way of cutting back costs. I am introducing this method in this guide precisely because at some time you will no doubt feel attracted by it. I am talking here about the price leverage you will get from choosing a lesser known brand (or no-name brand) instead of a more well-known brand. This is not something I recommend. Those companies with strong brands have invested heavily in building up their reputation through well-made products.. What you have here is a distinctive difference in quality. So if you plan on buying a cheaper system from a no-name brand which manufactures its products in South East Asia I strongly advise against it. In the long-term you will realize that the money saved wasn’t worth it. Why save a couple of dollars only to have a false sense of security? It is far better to invest a little extra now than to risk your home, the safety of your family as well as your own when intruders break-in later.

But perhaps the single, most effective method of deciding what security measures are appropriate and cost effective for your home or business is to hire a security consultant. Believe me when I tell you that the money spent on their services will actually help you cut down costs, either by suggesting the right and appropriate security installations or by detailing the weaknesses in the system. It is more than a low price that you should aim for; your goal should be to obtain an effective security system.

I hope that this guide to saving money on a home security system has put you on the right track. Remember that you must strive to achieve a balance of maximum benefits and protection while keeping the costs at a minimum.