Life insurance ? wise investment in personal finance or excessive caution?
Life insurance is typically taken out to offer valuable financial protection for your family in the event of your death, upon which a payment is made to your financial beneficiaries, heirs or family members.
The extent of this payment will depend on your insured sum and earnings.
Life insurance and life assurance may be interlinked in advertisements, though bear in mind the two policies are different.
Life assurance is a form of financial protection which is also an investment, as you should always get a pay-out at the end of the term of the policy.
Life insurance on the other hand is simply financial protection for your family, avoiding the issue of debt in the event of your death.
According to an article by the Fair Investment Company, the British life insurance industry shrank to almost half the size of the pensions industry last year and according to the Association of British Insurers, less than 50% of UK households hold a life insurance policy.
In their most recent newsletter about this issue, the Association of British Insurers found that 25% of mortgage holders had insufficient life insurance to cover their debt.
The ratio of new life insurance policies to new mortgage loans was apparently 68% in 1994, but by 2004 this had dropped by half to 33%.
The absence of mortgage life coverage poses a serious risk for the dependants of homeowners.
If banks were to embark on wide scale repossessions as a result of this absence of life insurance, this would impose a risk on their loan books and reputations.
The Association of British Insurers also state that one of the main reasons behind the increased gap between mortgage loans and insurance is the emergence of people remortgaging their property to take advantage of equity release through a rise in value, without insuring their borrowing.
In their report it was stated that around 63% of new mortgage loans were remortgages or further advances, compared to 34% in 1994.
Egg reported at around the same time, that three out of four of these new loan homeowners had no intention of insuring this additional debt.
This is particularly worrying if couples are remortgaging their property later in life ? towards retirement, given that should anything happen to the breadwinner, the partner would be left with significant debts without the capability of paying the loan back.
Reasons for the downward trend in life insurance take-up include:
* Relaxation in lending policy ? increased competition in the mortgage market means that lenders are not forcing life insurance policies on their customers
* High house prices have stretched homebuyers, in particular first time home-buyers, in terms of their mortgage repayments, that the additional costs of a life insurance policy are deemed too expensive
* There are more households with no dependents
If you're interested in researching a life insurance policy, make sure you shop around.
UK websites such as moneynet ( life insurance ) provide life insurance and life assurance information guides, as well as providing price comparison research for the different products.
In the states, the website LowerMyBills.com also offers a similar service.
Because of the various factors listed above, people have also become less familiar with the term life insurance and without the awareness there is little recognition of the importance of this type of insurance.
However as speculation increases that UK households are not coping with their debt, so should the awareness of life insurance as an essential product in the personal finance portfolio.
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Higher Education Act Delay Allows College Graduates to Consolidate Student Loans
Quincy, MA (ContentDesk) October 3, 2005 -- Legislative changes affecting federal student loans have been pushed back in Congress for at least 60 days, giving recent college
graduates a window of opportunity to consolidate their federal
student loans at the current interest rates and programs. Graduates can take advantage of locking in low interest rates and transforming
their variable rate federal student loans into fixed rate loans.Both houses of Congress spent a fair portion of the summer designing revisions to the Higher Education Act of 1965 (last reauthorized in
1998) which, if passed, would make significant changes to federal financial aid programs. Some of the proposed changes include:-????Penalizing graduates with higher interest rates if graduates choose a fixed rate consolidation over a variable rate consolidation,-????Stafford Loan interest rate increases from the current 5.3% to 6.8%,-????Reduction of $5 billion - $12 billion in funds...
Car loans > Higher Education Act Delay Allows College Graduates to Consolidate Student Loans
Rent One Online to Provide Avis and Budget Rental Cars to Vacation Rental Travelers
Scotts Valley, CA (ContentDesk) April 20 , 2006 -- Rent One Online is introducing the ability for travelers to vacation rental properties to get quotes and book Avis and Budget rental cars via Rent One Onlines rental property management and vacation travel software.
Rent One Onlines solution is used by vacation rental managers, destination area real estate offices, resorts and web sites that list vacation rental properties.Rent One Online is the first vacation rental company to directly integrate car rental booking within its web-based reservation and vacation property management software. Rent One Online, and its network of customers, can now offer quality Avis and Budget rental cars to vacation rental travelers from the initial point of booking through the point of stay . Rental managers win by providing better service and by sharing in the travel agency commission received by Rent One Online; the vacation rental traveler wins via the convenience of a one-stop shop ...
Car loans > Rent One Online to Provide Avis and Budget Rental Cars to Vacation Rental Travelers
Personal loans for bad credit can discipline repercussions of negative credit
Bad credit is like an ongoing battle for many loan borrowers. Bad credit has many repercussions for the people when they apply for personal loans. You usually are branded as a bad credit borrower if you have anywhere in your credit history terms like late payments, county court judgments, bankruptcy, foreclosures, charge offs etc. All such financial blunders are termed as bad credit while applying for personal loans. But then again there is a solution to every difficulty.
In this case it is called - personal loans for bad credit. Bad credit borrower when applies for personal loans usually face the liability of higher interest rates. This is. When you make late payments on your loans, it is a negative sign with respect to loan borrowing. It is termed as bad credit on your credit report.
The loan lender sees this and charges you more because your credit report indicates a paradigm of risk. It suggests that you might make the same mistake again. The threat of higher interest...
Personal loans for bad credit can discipline repercussions of negative credit
Car loans > Personal loans for bad credit can discipline repercussions of negative credit
Get Off Clean Highway Paint Remover (HPR) Product is in Full Production
Based on the nationwide trend for increased summer road painting, Get Off Clean announced today that the companies new highway paint remover is in full production. This new technology product is formulated to safely remove both white and yellow paint over spray from clear coat finishes. The company performed all of it's testing in cooperation with the State Highway Traffic Department's road projects.
What most people don't know is that road paint contains glass beads which has a reflective effect during night hours.
This specialized water borne paint easily adheres to the paint on automobiles as well as the car's chrome and rubber surfaces.
When car owners clean the road paint off their car, they can unwittingly scratch their car surfaces.
Get Off Clean is designed to remove highway paint from all of these surfaces without damage.
Mike Liebing, Vice President of Marketing states, "Get Off Clean is not a known entity in the huge automotive after...
Car loans > Get Off Clean Highway Paint Remover (HPR) Product is in Full Production
Consolidate
Consolidate your loansIf you have federal student loans it is more than likely youare receiving letters and email that are warning you it istime to consolidate your loans in order to pay less interestover the life of your loan and have smaller monthlypayments. However, people are still wondering if they shouldconsolidate or not. Here are some of the reasons why.If you are currently enrolled in school and have federalstudent loans then you should act now and have themconsolidated regardless of the fact that you may need totake out loans in the future. This is the first time inhistory that current students are able to consolidate theirloans, so if you have federal loans do not wait. Yourcurrent loans will be consolidated and the low interestrates will be locked in for the life of those loans.
Yourfuture loans will not have this opportunity, so lock in thediscount on the ones you have while you can.Also, if you are a recent graduate or have been paying highmonthly payments for a...
Consolidate
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7 Hassle-Free ways to buying a new car
According to NADA, almost no single car model is sold at the same fixed price by car dealerships in a particular area. Every buyer receives a different final new car price quote.In other words every Honda Accord buyer in your area would have paid a different price for the car based on which car dealer they went to and how well they negotiated the price. Therefore, there is no level playing field on buying a new car. As you may have guessed, this translates to either visiting as many car dealers in your area as your time permits or negotiating really hard with a shrewd car dealer. My 7 hassle-free tips to buying a new car will certainly help you save money and pay one of the lowest prices in your area for any new car.1.Finalize what car model you want and how much you're willing to spend.
This way you'll be less pressured into making hasty decisions.2.Identify two other competing car models that you might consider buying or can use as a negotiating leverage with car dealers. By...
7 Hassle-Free ways to buying a new car
Car loans > 7 Hassle-Free ways to buying a new car