Auto Insurance Basics – Quiz

You’ve just purchased a new car and want to protect both it and yourself as much as possible. Your old auto insurance policy doesn’t seem to cut it anymore, but you don’t know what kind of coverage you need. A car insurance policy can cover a lot of things if you choose the right level of coverage, but in order to do that you need to know what exactly what each facet of the policy will actually take care of. For example, different parts of your policy cover different kinds of damage.
Let’s say you lost control on an icy road and drove into the side of someone’s house. Property damage liability is the insurance that pays to fix the other person’s property. But if the front of your car is dented in a car accident that you caused, the insurance that covers fixing your car is collision insurance. Those are great options, but what if your car breaks down not because of an accident, but due to age or disrepair? Roadside assistance will help you with tows and flat tires. Mechanical breakdown insurance helps with the cost of fixing your car.
Do you need all of these coverage options? That’s entirely up to you.
Some people opt for lots of coverage and others opt to save money. Before you make a choice, take the Auto Insurance: The Basics quiz from Health IQ. You’ll learn about the different coverage levels, so you can make an informed decision while you’re shopping for auto insurance.
 

5 Insurance Coverage That Protect You

Insurance policies provide cover against various types of contingencies. The contingencies could be like damage to the house, loss of vehicle, loss of goods, loss of life etc. Life can be extremely cruel at times. It is also full of uncertainties that could arise at any time.
In order to make sure that you are not affected by various unforeseen events of life, it is would be logical to get insured against various risks. The main advantage of various insurance policies is that the risk gets shared over a large number of insured people and each person has to pay only a small amount of premium. Insurance companies follow various principles such as:
Indemnity– The insurance company compensates a person only up to the extent he or she is insured. The insurance company is not liable for losses suffered beyond that fixed amount.
Utmost good faith– The insurance policies tie the insurer and the insured in a bond of honesty and fairness. They must not hide any vital information from each other.
Insurable interest– This principle states that insured must have some financial benefits from the property or goods that he wants to get insured. If he doesn’t have any interest in the property, goods or person that he wants to get insured then there could be no insurance agreement.
Causa Proxima– This principle states that the cause of loss must be among the list of causes mentioned in the initial insurance contract for which compensation is allowed.
Affordable premium– Since a very large number of people apply for insurance policies, so the risks get shared among all of them. So the amount of premium that has to be paid on a monthly or yearly basis is an affordable amount.
Accidental loss– The losses that can be insured must be accidental by nature. They must not be the outcome of self-derogatory activities like gambling or other speculative activities.
Calculable nature– The loss which has to be insured must be calculable. It must be numerically calculable. Losses which cannot be calculated numerically cannot be insured.
The following are some insurance coverage policies that can come handy to you, in the present future.
Insurance Coverage

Auto insurance

This kind of insurance protects a person from financial losses arising out of contingencies related to damage to vehicles. An insured person would get compensated in case of damage caused to a vehicle in an accident or in case of theft of a vehicle. Your personal car could probably be the most valuable investment and asset of yours. Therefore, during road mishaps, accidents, and other unfortunate situations, it is always beneficial to cover your car with auto insurance coverage plan that is just the best for you.
In case of an accident, an insured person would also get compensated for injuries suffered, loss of wages etc apart from the maintenance expenses of the vehicle.

Home or property insurance

This kind of insurance provides indemnity in case of damage to home or property arising due to various factors like flood, earthquake, accidental fire etc. In the current scenario, and considering the dynamics of real estate market, the occurrence of casualties and natural disasters, accidents, and mishaps, a home or property insurance is definitely another form of coverage that you must be keen on.

Health insurance

Health insurance policies aid a person in case of expensive medical treatments. There are different types of health insurance plans that you can make use of. The type of health coverage you will receive after a specific tenure has passed by will be determined by the type of health insurance plan you choose and the amount of premium you pay.

Life insurance

These insurance policies provide monetary compensation to a deceased family in case of untimely or unexpected death. Having a life insurance will take care of your family member’s needs and requirements in the best way possible. This includes taking care of the deceased family’s existing expenses, funeral expenses, and other financial instabilities. The two basic types of life insurances are:

Long-term disability coverage

While most people might feel that taking long-term disability coverage would be a waste of time and money, reports from the Social Security Administration show that it’s not. Disability can occur anytime and without no reason at all, and it’s always better to stay safe than sorry. Because disability has become a major concern for the society, the government offers long-term disability insurance coverage that can take care of your needs, finances, and lifestyle after you are officially struck by a disabled medical condition.

Conclusion

You might feel that paying premiums for such insurance coverage plans is taking a huge chunk out of your pocket, failing to do so might lead to more unfortunate circumstances in the future. To keep your present and future happy, convenient, and completely risk-free, essential insurance coverage such as the above can help take care of you and your loved ones in the most economical way.

3 Things to Consider when Buying Your First Home

One of the major milestones and most exciting times of your life is when you make the decision to buy your first home. However we often get caught up in the status quo, whether it is because your friends are all buying homes, or you have reached the magic age where it is determined you should have one.

While you may be eager to find that perfect house and move  in, there are a three major things you should consider before buying a home.

Buying your First Home

Are you actually ready for home-ownership?

Although it may sound crazy, the first question you should be asking yourself is if buying a home makes sense for you.  Since you were little, you probably dreamed of growing up and owning your own house in an area that you like.  After some consideration, you may come to the conclusion that you are better holding off. For example, if you travel often for work, you will not be able to enjoy the home that you are making your mortgage payments on. Worse yet , you may find yourself in a situation where you need to relocate soon after you purchase your home,  and forcing yourself to have to go through the house selling ordeal.

Can you actually afford it?

We live in a time when many people try to live above their means. People are constantly buying the newest cars, electronics, and whatever other toys their hearts desire. They are also putting themselves into tons of debt every time they buy something new. It’s important to take a good look at your finances and make sure that you are in this for the long term.  Consider how steady your pay is, debts you already have (student loans, credit card bills, etc) and an emergency fund for any unseen circumstances.  Often times it’s a hard realization that you might have to settle for something a little different than your dream home.


Are you responsible?

You may have reached a point in your life where you are finally financially responsible. You pay everything on time, never call out of work, and generally don’t live beyond your means. Great, you can probably afford your mortgage and not miss any payments. Have you considered what to do with your home when you go on vacation? In the summer, you may need to hire someone to come and take care of your lawn for the week, and in the winter you may need someone to make sure your heat is on so your pipes don’t freeze. You are now responsible for the maintenance of your house, and it is important to stay on top of it or you may have a few large bills later down the road.

If you still think that you are ready to buy a home, then the first step is to begin talking to different lenders and see what is offered. You should be looking to get the lowest mortgage rate you possibly can. A loan officer can also point you towards a program that will fit your needs. After talking with the loan officer and deciding on your program, you rate will be locked. Your home will go through a final appraisal, underwriting will approve the conditions, and you will get a final approval. Once you are approved, you can get ready to move in, and enjoy your new home!

Understanding the Elements of an Overall Credit Card Processing Fee

As the holiday season comes into full prime, educate yourself on what is happening every time your credit card gets swiped.

Credit card processing is a crucial consideration for many businesses. With this borne in mind, it is necessary for a business (and consumers) to understand fully the charges associated with credit card processing.

 Credit Card Processing Fee

Three basic components are associated with the overall costs of credit card processing. The components of the overall free include the free paid to the bank that initially issued the customer’s credit cards, a fee paid to the card brand itself and a fee to the company that actually facilitates the processing of a particular charge. These fees vary in amount by financial institution.

The fee paid to the issuing financial institution is called the interchange fee. It is calculated using a percentage of the total transaction plus an additional nominal charge.

The fee assessed by the credit card brand also typically includes a percentage and a flat fee. However, in the case of Visa, that brand also charges a merchant an additional monthly fee.

Finally, the processing fee itself is a set amount for each transaction. Keep in mind that the processing fee is the only component of the overall costs associated with credit card transaction processing that is open to negotiation. The interchange and brand fees are set and cannot be changed.

Moving forward, this information should help you understand where the money is coming derived from credit card processing fees.