Lcisinsurance

Posted By Admin on October 14, 2010

Private mortgage insurance or PMI as is known is a form of insurance new homeowners are required to purchase. This is particularly so if their down payment is 20 percent or less of the property’s valued price or sale price. The main reason for private mortgage insurance is to protect lenders in the case the new homeowner defaults on their home loan.

Although private mortgage insurance has a bad reputation since it only protects lenders, it is actually a good thing. Reason is it has allowed millions of people to be able to buy homes with smaller down payments. Previously, these people would not have been able to afford a home had the down payment remain the same. Another important reason is private mortgage insurance can help you qualify for home loans.

Cost of Private Mortgage Insurance

The cost actually varies depending on the mortgage loan and the monthly down payment. Usually, it is half a percent. To calculate your private mortgage insurance, you can use this estimated formula:

Annual private mortgage insurance = 100 – (percentage of down payment paid) * (sale price of house) * 0.05

Let’s take an example. Suppose you brought a 500,000 house. You pay a 20 per cent down payment. So using the formula as above:

Annual private mortgage insurance = (100 – 20) * 500000 * 0.005 = 2000

Your monthly mortgage insurance will be around 167.

One important point to note is you should always keep track of your payments and notify your lender when you have reached 80 percent equity of your house. Even though the Homeowner Protection Act requires lenders to notify you of how long it will take you to pay, it is still better to keep track of it yourself.

There are some cases where lenders make homeowners continue their private mortgage insurance all the way through the lifetime of the loan. This usually applies to high risk borrowers. Therefore your payment history and credit rating such as your FICO score plays an important part as well.

Some people hate paying private mortgage insurance for years. There are some ways around it.

One way is to pay more interest on your home loan. Some lenders will waive the private mortgage insurance requirement if you agree to pay a higher interest rate. Since mortgage interest is tax deductible, it can be a good idea to go ahead.

Another way to avoid paying private mortgage insurance is to prove to the lender that the value of your home has risen. If the value of your home has risen significantly, your home have already have the 20 percent or more equity you need to cancel the mortgage insurance. However, it does take time for the lender to verify your claim, sometimes as long as a year.

Category: Insurance Cover | No Comments »

Posted By Admin on October 7, 2010

It’s important to start saving early for retirement. The good news is, even if you already have a 401(k) at work, you can give your savings a boost with an Individual Retirement Account (IRA). An IRA, which combines the benefits of compound interest and tax savings, is available to anyone who earns a taxable income. You can open an IRA at virtually any financial institution, including your bank, and opening fees are typically lower than other investment accounts.

While opening an IRA is relatively easy, figuring out what type is best for you can be confusing.

There are two types of IRAs-traditional and Roth. With a traditional IRA, your earnings are taxed when you start making withdrawals, and you generally incur a penalty if you withdraw money before age 5912. With a Roth IRA, you can withdraw your earnings tax-free after age 5912 as long as you’ve had the account for at least five years. In other words, earnings from a traditional IRA are tax deferred, while Roth IRA earnings are tax exempt.

Another important difference is that you must begin taking withdrawals from a traditional IRA at age 7012. There is no mandatory distribution age with a Roth, but there are income restrictions. Single filers with adjusted gross income of 110,000 or more and couples whose joint return is 160,000 or more cannot open a Roth. Traditional IRAs, on the other hand, have no income restrictions.

That explains a little about the money you take out of an IRA, but what about the money you put in? Contributions to a traditional IRA may be tax deductible depending on your income level, but if you’re eligible to participate in your employer’s retirement plan, you may not be able to deduct all of your contributions. On the other hand, Roth IRA contributions are never tax deductible, but earnings are tax-free if part of a qualified distribution.

The federal government imposes new IRA contribution limits each year. It’s generally a good idea to make the maximum contribution. The good news is, contribution limits have gone up since 2002 and continue to increase, so there’s never been a better time to open an IRA.

Category: Insurance Cover | No Comments »

Posted By Admin on September 30, 2010

Insurance companies consider many factors before they provide you with an auto insurance quote. Here is some of the basic information that goes into compiling your auto quote:

Age: Insurance companies like older more experienced drivers. According to the CDC (Center for Disease Control and Prevention), 16 to 19 years olds are four times more likely than older drivers to be involved in a car crash. Premiums tend to decrease as the young driver ages.

Type of Car: Brand new, expensive, fast cars are more expensive to insure than older, slower cars. Check to see if the car you’re interested in insuring is a high risk car, meaning that it is often stolen or vandalized. For instance, in 2004, the 1995 Honda Civic was the most stolen car in the US according to a report released in November 2005 by the National Insurance Crime Bureau. Discuss this with your insurance agent before you select a car. The cost of insuring it might determine how much car you can afford.

Driving Record: Clean driving record is important to getting a lower rate. If you do have a violation, attend a driver’s education class. This may help to reduce your rate. Some insurance companies will not insure drivers with very poor driving records.

Credit Score: Yes, that’s right. Credit score. Your credit score is also used when securing insurance. It is called an insurance score. Studies indicate that the way a person manages their finances is a good predictor of the potential for insurance claims, therefore they charge a premium in accordance with the risk they are assuming. According to statistics, people with lower insurance scores are more likely to file claims.

Deductibles: The higher the deductible, the more you save in premium. Go as high as you can afford.

Underwriting guidelines vary slightly from company to company, so get more than one automobile quote and compare.

Category: Insurance Cover | No Comments »

Posted By Admin on September 23, 2010

Floods can happen without warning. Even if you don’t live near a river, one heavy rainstorm can change everything. Floods can happen anywhere, according to the Federal Emergency Management Agency.

Floods occur whenever rain, melting snow or even a dam break produces more water than the land can readily absorb. Use the following tips from the CPCU Society to protect your family and belongings from floods:

• Keep an up-to-date home inventory and other important papers in a secure place. If you must evacuate, take these items with you. Also, keep exact copies in a place away from home, such as a bank safety-deposit box.

• Utility services may be disrupted during floods. Stock non-perishable food that requires little or no cooking. Buy bottled water or prepare jugs for filling with water.

• Check portable radios and flashlights. Make sure you have new batteries on hand.

• Keep your car’s gas tank filled. Also, keep oil and gas tanks for your home heating system filled. This will help keep them from coming loose and causing damage to the foundation.

• Leave immediately when authorities tell you to evacuate. Delay can trap you without an escape route. Because flooding changes the way areas and landmarks look, you can become disoriented easily.

• Do not walk or drive through flowing water. As little as six inches of fast-moving water can knock down an adult.

• Be alert to downed electrical wires and gas leaks. Electricity travels through water, so report downed wires as soon as possible. Before using electrical devices and heating and air-conditioning equipment, have a trained professional check them. The damage may not be obvious if the equipment was under water or exposed to moisture.

• Contact your insurance representative as soon as possible. Document the damage with photos. Keep evidence of damage and loss for the claims adjuster.

Standard homeowners insurance does not cover flood damage; however, special flood insurance covers this risk. Flood insurance pays for covered losses quickly. Government loans and grants may take some time and not cover what was lost. Your insurance agent can give you coverage information or a no-obligation quote.

Category: Insurance Cover | No Comments »

Posted By Admin on September 16, 2010

Companies today are increasingly looking for ways to cut expenses and improve profit margins. Among their greatest expenses are fringe benefit costs associated with employee health care.

As such, many are looking at how the lifestyle habits of their employees – such as smoking – are affecting their bottom line.

Medical care and lost productivity cost employers about 3,856 per smoker per year, according to the Centers for Disease Control and Prevention. Men who smoke pay 15,800 more for medical care over their lifetimes and miss four workdays more per year than nonsmoking men; female smokers shell out 17,500 more in lifetime medical expenses and miss two days more from work than women who do not smoke, according to the CDC.

Some companies refuse to hire smokers or demand that their employees quit smoking or lose their jobs. Others are setting policies restricting smoking on or around company property and offering bonuses or other incentives for employees to quit smoking.

For those who want to quit but have failed with various cessation methods, one company says it has a unique solution that may help them kick the habit for good.

Safer Smokes Inc. offers a smoke called Bravo that has all of the characteristics of a tobacco cigarette with three key differences: no nicotine, no tobacco and none of the dangerous carcinogens derived from the additives found in commercial tobacco cigarettes. In lieu of tobacco, Bravo smokes are made with enzyme-treated lettuce leaves.

“You give up the nicotine and harmful tobacco without having to give up the physical behavior of smoking,” said Dr. Puzant Torigian, chairman and founder of Safer Smokes. “Once the nicotine leaves your system, the urge to smoke leaves you as well, and you smoke your way out of the habit just like you smoked your way into it.”

“For smokers challenged to quit the habit or quit the job, the key is to find a cessation strategy that works for them,” Torigian said. “Of all the choices on the market, Bravo is the only product available today that lets you quit the nicotine and tobacco habit immediately while you smoke your way out of the habit gradually.”

Category: Insurance Cover | No Comments »

Posted By Admin on September 9, 2010

The Blue Cross and Blue Shield Association is the largest private health insurance system in the United States (including Puerto Rico) and Canada. It is composed of 55 independent, locally operated Blue Cross and Blue Shield Plans that collectively provided health care coverage to over 88 million people in 2003.

For its beginnings we need to go back to 1929 to a man namedJustin Ford Kimball when he became vice president of Baylor University in Dallas, Texas. He was an experienced administrator, as he headed the College of Medicine, School of Nursing, College of Dentistry, and the university hospital.

Soon after taking the job, he developed a health plan that guaranteed teachers 21 days of hospital care for 50 cents amonth. The plan soon spread to other employee groups in Dallas, and then similar plans began to crop up nation-wide.

Meanwhile, around the same time that Kimball was creating his plan, the Blue Shield concept was becoming popular in the lumber and mining camps of the Pacific Northwest. Serious injuries and chronic illness were common among these workers who were in very hazardous and dangerous jobs.

Their employers saw the need to provide medical care for them and they arranged with physicians to pay them a monthly fee to take care of the medical needs of the workers. These programs would later become what is known as the Blue Shield Plans.

As for the cross symbol, it was first used in a 1934 advertisement for the Hospital Service Association, which later became known as Blue Cross and Blue Shield of Minnesota.

Joseph Binder, a Viennese artist, was hired by Company secretary E.A. van Steenwyk to create a poster that included a blue Greek cross. Van Steenwyk used the symbol to identify his company’s health plans and then Blue Cross began to use it in other parts of the country.

In 1939, the American Hospital Association, which was based in Chicago, began to use the Blue Cross symbol to indicate that health plans around the country met certain standards.

The AHA continued to use the symbol until 1960 when the Blue Cross Association was founded. The two organizations remained affiliated until 1972.

The shield symbol was created in Buffalo, New York by Carl Metzger in 1939 and the first official Blue Shield plan was founded in California that same year. Carl Metzger was an early pioneer in the Blue movement and he wanted a design that would distinguish the new medical service plan.

It soon flourished as the number of Blue Shield Plans kept on growing. In 1948 the symbol was informally adopted by nine plans called the Associated Medical Care Plan, which was later renamed the National Association of Blue Shield Plans.

Over the years, the Blue Cross and Blue Shield healthcare insurance concepts took hold. The Blue Cross Blue Shield Association was formed in 1982 by a merger of the Blue Cross Association and the National Association of Blue Shield Plans. When the Blue Cross and Blue Shield organizations merged, their brand symbols also merged and became one of the most familiar symbols in America.

To show you how large it has become, in 2003, the Blue Cross and Blue Shield Association took in 182.7 billion in revenue. The evolution of managed health care in the United States is intimately linked to the designs of Blue Cross-Blue Shield.

Category: Insurance Cover | No Comments »

Posted By Admin on September 2, 2010

Auto accident checklist: Tips on what to do following a car accident

Hopefully you will never be involved in an auto accident or need to file an insurance claim. Even the most careful and skilled drivers, however, can easily find themselves in the middle of a crash. Would you know what to do? Knowledge of what to do after the car accident can help make the insurance claims process easier and smoother so that you are back on the road faster.
If you are in an auto accident:

1.Try to stay calm, stop your vehicle and check for injuries. The life and health of you, your passengers and the other people involved in the accident is far more important than the vehicle itself.

2.If required, call the police and let them know of the accident, your location, how many people are involved, whether there are injuries and the types of injuries.

3.You may wish to take reasonable steps to protect yourself, and your vehicle, from further damage. Where possible and if legal, move the autos to the side of the road and turn on your hazards as soon as it is safe. If you have flares, you may wish to use them to warn oncoming traffic and to prevent additional crashes.

4.Taking lots of notes is a good practice, like:

the date, time and location of the accident
how the accident occurred sometimes a drawing is worth a thousand words and can help enhance what youve noted
the type and location of damage to your car
the type and location of damage to the other cars or property involved
the names, addresses and contact information of all drivers and passengers involved in the accident
drivers license numbers and all the information on the licenses
insurance identifications including the name of the insurance company and policy number
the names, addresses and contact information of witnesses
the names and badge numbers of police officers or other first response personnel

(Being able to take notes is important so keep a pen and pad in your glove compartment, just in case.)

5.You may wish to ask the police officer when and where you can get a copy of the accident report. Theres a good chance youll need it when you submit your insurance claim to your insurer.

6.Its usually a good idea to call your insurance company right away and report the accident because the sooner they know about the crash the quicker they can start working to resolve your insurance claim. As well, theyll be able to explain the next steps, like where to have the car towed if necessary and arrange for an adjuster to come out and appraise the damage before any repair work is done.

7.There are a couple of donts you might want to consider like dont discuss the financial limits of your auto insurance policy and avoid discussing the responsibility for the accident or circumstances of the accident with anyone other than the police or a representative of your insurance company.

Auto accidents take a significant toll on everyone involved. But, if you stay calm, make safety your priority and follow the above tips, you will get through the ordeal of being in an accident and submitting an insurance claim.

Category: Insurance Cover | No Comments »

Posted By Admin on August 26, 2010

What is a Structured Settlement? A Structured Settlement is a Settlement in which you receive Structured payments on a regular basis. In other words, it is a payment plan, in which, instead of getting a large lump sum, you receive smaller payments in increments. These increments go on weekly, monthly or yearly cycles. These settlements are often known as a win-win situation because the payer needs to come up with a lot less money up-front and the payee has a steady stream of income coming in at all times. This process can also be described as Annuity.

When are structured settlements used? Structured Settlements are often, but not limited to, these common situations:

1.Lottery Winnings Often times, in the Lottery, you can opt to receive numerous smaller payments in exchange for a single larger payment.
2.Malpractice Cases In situations where a family member is lost or left crippled due to medical malpractice, the party may be entitled to a structured settlement over the span of the victims life or as a grievance payment. These payments dont fix things, however, they are meant to make living a little bit easier for the victims and families.
3.Insurance Cases In many insurance cases, this form of settlement is used. This is because it is easier to make smaller payments over a longer period of time as well as the damage left behind may be better dealt with over time.

Understanding these concepts are important in the process of properly handling your income. It is important also to understand how money works over periods of time. Over long periods of time the value of the pound is likely to decrease. This means if one was to receive, for example, 1000 a month for 20 years, that 1000 pounds could only be worth 500 at the end of the term. This is one reason some people decide to sell their structured settlement for a large lump sum.

One people decide to sell their structured settlement there are numerous reasons behind it. The first reason may be that, due to their immediate needs, they need a larger amount of money right away. A good example of this would be when buying a new car or home. Another reason people decide to sell is because they would like to invest it into something that gains equity over time and actually grows in value rather than decreases. Some people want to fight the cost of inflation and take the monthly payments and re-invest. This is the wiser choice of the two most of the time.

When selling your structured settlement or selling Annuity, it is almost always advised that you do your homework first. Dont sell to the highest bidder right off the bat. Before hand you should read up on what your options are. Seek the help of a broker, a financial advisor and a legal professional first. By doing this, you can protect yourself from scam artist to defend yourself from transactions lacking in integrity. It is always smarter to take the safest route possible. Selling Annuity can be dangerous so it is always wise to make slow and steady steps.

Category: Insurance Cover | No Comments »

Posted By Admin on August 19, 2010

Amanda was 42 when she was given the difficult news that she had ovarian cancer.

The West Yorkshire woman received chemotherapy treatment after diagnosis, but Amanda became one of the unlucky ones. She had a bad reaction to the chemotherapy and because of this she was unable to work.

So when a tax bill arrived in the post for a large sum of money, re-mortgaging her house felt like the right thing to do. The building society with whom she had the mortgage asked her to bring along her life insurance papers to support the mortgage application.

But to Amanda’s surprise, what she thought was a life insurance policy was in fact critical illness insurance instead. She had been paying out 80 per month for two separate insurance policies with Scottish Provident and Norwich Union and had absolutely no idea that those two policies covered her for critical illness.

As a result, Amanda claimed back a staggering 100,000, which paid not only the tax bill but her mortgage as well.

Many of us haven’t got a clue about the exact sum we’re paying on insurance each year or the details of what we are in fact covered for. Not only are we shocked to find out that we are actually covered for more than we in fact realise, but that we’re doubling up by paying for various types of insurance that actually cover the same thing.

You’ll find that it’s areas such as loss of income, legal expenses, theft and death which most often people wind up paying out twice for when there is no need – mainly because they haven’t carefully read the insurance policy or because it has been the case that some insurance has been put on to some policies as an added bonus.

In a recently released Financial Services Authority survey, it shows that car insurance policies also come with added extras like breakdown recovery and legal expense cover. Paying out for these added extras when you do not want them is an easy mistake to make, according to the survey, because you actually have to physically ring the insurance firm and tell the staff that you do not want them before these ‘options’ are removed from your agreement.

Take permanent medical insurance (PMI) for example. Many aspects of this policy cover you for the same things that Payment Protection Insurance covers you for. But few people realise this and so they take out both.

The FInancial Ombudsman is very aware about the situation surrounding insurance duplication. They say that “people often do not realise until they make a claim that they have been paying for a policy that provides very little, if any, benefit”.

Take a look at your Critical Illness Insurance, as this is one area in which you sometimes get cover from your employer. Find out whether you have this type of insurance with your work before you make the purchase on this policy. Do the same with life insurance, because if you have a company pension scheme, life insurance is something you do not actually need. The reason? Because most company pension schemes have a death-in-service benefit. What this means that should you die while you are still an employee at that particular firm, then large, a tax free payment will be made – a payment which could add up to four times your annual salary at the time of your death, or more.

Other types of insurance you might not need includes mobile phone insurance. The consumer watchdogs will tell you this is something that’s often a waste of money because you have to pay the first 50 of the claim and if you already have home insurance, that insurance might provide you with some protection.

Others include car insurance extras such as legal expense cover. If you are a member of a trade union, then you could have some legal cover anyway.

Some companies trying to get people to take out ID theft insurance. A waste of money? The consumer watchdogs think so because if it is the case your ID gets stolen you are only responsible for the first 50 and most of the time the banks are prepared to waive charges.

Category: Insurance Cover | No Comments »

Posted By Admin on August 12, 2010

If you’re like many bikers, you’ve been looking forward to the day you can again hit the road aboard your dream machine.

Well, that day will probably be here before you know it and now’s the time to make sure your insurance policy is as ready to roll as you and your bike are. Your motorcycle is a significant investment and you owe it to yourself to be properly covered. So here are a few expert tips to help you make sure your motorcycle insurance coverage is as strong as your passion for the road.

First, verify your coverage is still in force. It may seem obvious, but you’ll want to start off by making sure your insurance policy is still in force by verifying its expiration date. Be aware that some companies have a winter months layaway period during which some coverages are restricted. Check with your insurance company to see if you currently have any type of limited coverage.

Update your policy. Update your insurance company with any changes such as additional riders or a new garaging address. A quick call to your independent agent or insurance company will ensure coverage that reflects your current needs.

Make sure custom parts and equipment are covered. Parts such as chrome plating, a new paint job, saddlebags or special rims usually increase the value of your motorcycle. If you’ve added any custom parts or equipment recently, you’ll want to make sure they’re covered too.

Consider dropping coverage you really don’t need. If you own an older bike, you may want to check its value so you’re not paying for coverage that’s not cost beneficial. It’s generally recommended that you consider dropping collision coverage when the collision premium equals ten percent of the bike’s market value. Understand that by doing so, you will not be covered for damages to your bike if it overturns or collides with another object.

Look for discounts. You should also check to see if you qualify for any discounts your insurance company may offer. Remember that prices can vary from company to company so shop around for insurance. Another tip to help you save: if you purchase comprehensive and collision coverage, consider raising your deductibles, which will lower the cost of your physical damage coverage.

Choose a company that specializes in motorcycle insurance. For example, Drive Motorcycle Insurance is underwritten by Progressive-America’s #1 motorcycle insurer-and offered through independent insurance agents and brokers across the country. Drive agents and brokers understand your needs and offer specialized coverage that’s designed for motorcycle owners and their machines.

Category: Insurance Cover | No Comments »