Hurricane Recovery: Financial Institutions Step It Up

We have all heard the stories of financial institutions exploiting consumers with shady practices such as exorbitant interest rates, hidden fees, and the like. These accounts anger us and, rightfully, those that practice these deeds should be exposed. Fortunately, not all reports are bad as evidenced in the way many companies are treating their customers in light of recent disasters such as Hurricanes Katrina and Rita. Let’s take a look at how some companies are responding in the wake of disaster.




1. Disaster Relief Programs. If you live in an area designated by the Federal Emergency Management Agency [FEMA] and own property, you may be eligible for relief depending on your financial institution and the program they have in place. One well known bank, for example, is automatically deferring mortgage and home equity loans for as long as ninety days, or three payments. In addition, this same bank is not assessing late charges for that timeframe, nor are they reporting negative information to affected consumers credit reports.




2. Payment Holidays. Similar to disaster relief programs, several credit card companies are allowing their customers to not make credit card payments for a two or three month time period. Two institutions have stated that they will not collect late fees, but in each case it is not clear whether customers will still be charged interest on their unpaid balances.




3. Loan Extensions. The financial arms of several automakers are allowing customers in affected areas to defer loan payments for up to three months. Essentially, these institutions are extending the loan’s length and adding the months to the end of the loan period without charging customers fees for this service.




If you live in any of the affected areas, it is best to contact your financial institutions directly to learn exactly what type of deferral plans, if any, they have in place. Some programs are less clear than others, particularly the payment holidays for credit card holders since it isn’t always apparent whether you will still be charged interest during the affected time period. Still, these types of compassionate gestures by certain financial institutions can create plenty of goodwill for consumers and they are the types of corporations certainly worth patronizing for the long term.

Common Mistakes When It Comes To Refinancing

There are many reasons for refinancing your mortgage. Refinancing can reduce your interest rates, your monthly payment, or both. Often, refinancing is an effective way to consolidate debt and to reach your long term financial goals.




However, there are many common mistakes when it comes to refinancing, some of them so serious they could cause you to lose your home. Identifying pitfalls is the best way to make a refinancing decision you will not later regret.




When refinancing, you do not want to eliminate all the equity you have worked so hard to build. Home ownership is all about building equity – it is the equity in your home that makes it one of, if not the most valuable investment you will ever make.




This does not mean refinancing your home is always a bad financial decision – in fact, often refinancing can be a big step toward reaching your long-term financial goals. And it is the equity in your home that allows you to refinance in the first place. What you want is a loan that allows you to borrow against some – but not all – of your equity.




The most common mistake homeowners make with regards to canceling equity is cash-out refinancing. On the surface, cash-out options can appear extremely attractive, because they allow you to take cash out of your loan amount and put it in your pocket. You can use the cash to pay off debt, but taking cash out reduces the equity in your home, and can even eliminate it altogether.




To avoid this refinancing pitfall, consider a second mortgage as an alternative to refinancing with a cash-out option, especially if the interest rate is higher on the new cash-out loan. Already have a second mortgage? Then refinancing with a cash-out loan is very likely to eliminate all your equity. Instead, you can refinance both mortgages into one new mortgage with a cash-out option.




Another form of refinancing homeowners might regret is refinancing from a fixed rate mortgage (FRM) to an adjustable rate mortgage (ARM). Homeowners often do this to lower their monthly payments, but with an ARM, the interest rate is not locked in. Sure, the payments may be lower now, but if interest rates go up, future payments could be higher than the payments you were trying to reduce.




Refinancing options that homeowners are not likely to regret include refinancing from an ARM to an FRM in order to lock in a low interest rate. This is a decision that is usually made with long-term financial goals in mind.




Another refinancing decision that is generally sound is refinancing to the same type of mortgage with a lower interest rate than the current loan. So long as the borrower expects to remain in the home long enough for the interest savings to cover the cost of refinancing, the borrower usually will not regret this decision.




Low interest rates and a lucrative real estate market have prompted many homeowners to consider refinancing. But with predatory lending on the rise, it is up to you, the homeowner, to protect your investment. Fortunately, the Federal Truth in Lending Act is a safeguard for those who refinance a loan on their primary residence with a different lender. This Act guarantees borrowers the “right of rescission,” meaning they can cancel the debt within 3 days of closing. Not many borrowers take advantage of this option, but those who do are not stuck with a refinancing decision they will come to regret.

So, Do You Need Financial Planning?

:


Well do you need Financial Planning? In this article, I will show you how you can answer this question.




Immediately after we complete our college education, we automatically participate in a race call rat race.




Everyone started the race with a cart. In this cart, we have personal bills, loans and our allowance. As we are single, everything is good and manageable. We can spend what we earn without worry.




Then we meet our partners and get married. Thus we begin our next chapter in life. Our cart becomes heavier and we now worry about our spouse's bills and loans and kids allowance. Some of us must support our parents too. We may even need to bring our family to vocation. As we grow older, our carts get heavier and heavier. Do you have enough savings to meet these expenses?




As we know, life is never a straight and smooth path. We will encounter obstacles. Some of these obstacles may set us back in terms of our financial standing .If we do encounter a big obstacle (e.g. critical illness, operation, surgery, business failure) and need a huge sum of money to recover, Do you have enough money to meet this expense? What if the big obstacle results in us being permanently bed-ridden or out of work for a long time, what is going to happen to our cart? Do you have enough money to support yourself and family if that happens?




Many may say, well we have friends and relatives to turn to for help. But our friends and family have their own carts to pull too. If they help push our cart, who is going to push theirs?




We will all retire from work eventually. From then on till we all rest in peace, we do not have regular income but our life must still go on. We still need to pay our bills and we still need to eat. Do you have enough money to support yourself during retirement?




At old age, our body is no longer working as well as they used to. Our health conditions deteriorate, as we get older. We will need to seek medical help frequently. We may even need to employ a person to take good care of us. Do you have enough money to spend on these medical expenses?




So do you need Financial Planning? If you answer ‘Yes’ to all the above questions, then you are safe and need not worry about Financial Planning. Otherwise, I suggest you start thinking about it.

Top Financial Mistakes Made by College Students

1. Blowing your school loan money!


Instead of using your financial aid for books, tuition, room & board, many students will choose to finance their extravagant lifestyle of partying, clothes, gadgets, and eating out. These school loans you've worked so hard to get should be paying for your education, not you social life...so use the money wisely. You'll be paying them off for many years to come.




2. Credit Card Debt!


Even responsible adults can rack up some hefty credit card debt, but students, who have no viable income besides their school loan money, and what cash mom & dad give them, have no business getting multiple credit cards. This is a recipe for credit disaster, because now students will not only have their school loans to repay when they graduate, but large credit card balances. Nellie May, the largest student loan maker, says that most graduate students have an average of $5800 in credit card debt.




3. Not Paying Your Bills on Time!


Racking up huge credit debt and not paying your bills on time is a good way to ensure that you can't purchase a car, rent an apartment or even get a cell phone after you graduate. Keep the credit cards to a minimum, and pay your bills on time to keep your good credit rating. You'll thank yourself in a few years.




4. Bad Budgeting!


Being a college student generally means living on a fixed income. Weather it be your financial aid money or money from a part-time job, or even money from Mom & Dad, the cash is usually limited and setting up a budget is important. A monthly budget doesn't mean you can't do the things you want to do, but simply a plan so you know the "must-pays" actually get paid. Figure out exactly what bills and expenses you have every month and plan for those first. Any money after that you can budget for social / recreational items like CD's and kegs.




5. Going to a College that's too Pricey!


Instead of going to your local community college for your pre-req classes and spending $25 a unit, many students feel they have to go to the 4 year university straight out of high school. Many end up returning home and going to a C.C. anyway, but attending a local school first is a good way to save money, and get those required classes out of the way cheap. After you've completed these courses, transfer to a 4 year school to complete your undergraduate degree. This will save thousands upon thousands of dollars that you would have racked up on student loans, and been paying off well into your 30's.




So many of the bad financial decisions students make is a result of poor financial education. Students haven't been taught by their parents or high school teachers the importance of maintaining a good credit score, paying bills on time, and budgeting income. Wise spending during the college years will ensure that the money you make after graduating will be spent on things you want, not credit card payments, collection companies and school loans.

Financial Security through Structured Settlements

Structured settlements have become a natural part of personal injury and worker’s compensation claims in the United States, according to the National Structured Settlements Trade Association (NSSTA). In 2001, life insurance members of NSSTA wrote more than $6.05 billion of issued annuities as settlement for physical injury claims. This represents a 19 percent increase over 2000.




A structured settlement is the dispersement of money for a legal claim where all or part of the arrangement calls for future periodic payments. The money is paid in regular installments—annually, semi-annually or quarterly—either for a fixed period or for the lifetime of the claimant. Depending on the needs of the individual involved, the structure may also include some immediate payment to cover special damages. The payment is usually made through the purchase of an annuity from a Life Insurance Company.




A structured settlement structure can provide long-term financial security to injury victims and their families through a stream of tax-free payments tailored to their needs. Historically, they were first utilized in Canada and the United States during the 1970s as an alternative to lump-sum payments for injured parties. A structured settlement can also be used in situations involving lottery winnings and other substantial funds.




How a Structured Settlement Works When a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner may propose paying the settlement in installments over time rather than in a single lump sum.




A structured settlement is actually a tradeoff. The individuals who were injured and/or their parents or guardians work with their lawyer and an outside broker to determine future medical and living needs. This includes all upcoming operations, therapy, medical devices and other health care needs. Then, an annuity is purchased and held by an independent third party that makes payments to the person who has been injured. Unlike stock dividends or bank interest, these structured settlement payments are completely tax-free. What’s more, the individual’s annuity grows tax-free.




Pros and Cons




As with anything, there’s a positive and negative side to structure settlements. One significant advantage is tax avoidance. When appropriately set up, a structured settlement may significantly reduce the plaintiff's tax obligations (as a result of the settlement). Another benefit is that a structured settlement can help ensure a plaintiff has the funds to pay for future care or needs. In other words, a structured settlement can help protect a plaintiff from himself.




Let’s face it: Some people have a hard time managing money, or saying no to friends and family wanting to "share the wealth.” Receiving money in installment can make it last longer.




A downside to structure settlements is the built-in structure (no pun intended). Some people may feel restricted by periodic payments. For example, they may want to buy a new home or other expensive item, yet lack the funds to do so. They can't borrow against future payments under their settlement, so they’re stuck until their next installment payment arrives. And from an investment perspective, a structured settlement may not make the most sense for everyone. Many standard investments can provide a greater long-term return than the annuities used in structured settlements. So some people may be better off accepting a lump sum settlement and then investing it for themselves.




Here are some other important points to keep in mind about structured settlements: An injured person with long-term special needs may benefit from having periodic lump sums to purchase medical equipment. Minors may benefit from a structured settlement that provides for certain costs when they’re young—such as educational expenses—instead of during adulthood.




Special Considerations




- Injured parties should be wary of potential exploitation or hazards related to structured settlements. They should carefully consider:




- High Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't eat up too much of its principal.




- Inflated Value - Sometimes, the defense will overstate the value of a negotiated structured settlement. As a result, the plaintiff winds up with much less than was agreed upon. Plaintiffs should compare the fees and commissions charged for similar settlement packages by a variety of insurance companies to make sure that they’re getting full value.




- Conflict of Interest – There have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing he would receive a referral fee. In other cases, the plaintiff's lawyer has set up a structured settlement on behalf of a client without revealing the annuities are being purchased from his own insurance business. Plaintiffs should know what financial interest their lawyer may have in relation to any financial services being provided or recommended.




- Using Multiple Insurance Companies – It’s advisable to purchase annuities for a structured settlement from several different companies. This offers protection in the event a company that issued annuities for a settlement package goes into bankruptcy and defaults.




Benefits of Selling A Settlement




A structured settlement is specifically designed to meet the needs of the plaintiff at the time it’s created. But what happens if the installment arrangement no longer works for the individual? If you need cash for a large purchase or other expenses, consider selling your structured settlement. Many companies can purchase all or part of your remaining periodic settlement payments for one lump sum. This can boost your cash flow by providing funds you can use immediately to buy a home, pay college tuition, invest in a business or pay off debt.




If you’re considering cashing out your structured settlement, contact your attorney first. Depending on the state you live in, you may have to go to court to get approval for the buyout. About two thirds of states have laws that limit the sale of structured settlements, according to the NSSTA. Tax-free structured settlements are also subject to federal restrictions on their sale to a third party, and some insurance companies won’t assign or transfer annuities to third parties.




When selling your structure settlement, check with multiple companies to make sure that you get the highest payoff. Also, be sure the company buying your settlement is reputable and well-established. And keep in mind that if the deal sounds too good to be true, it probably is.

Pros and Cons of Refinancing

Refinancing can be considered a means with which a person replaces his/her current loan with a new loan in order to save money. The loan can be of any type. It can be any consumer debt or a credit card debt or a mortgage.


Many people shelter to refinancing nowadays because it has many pros:




As it helps people to reduce interests, risk, and periodic payment obligations by either lowering the interest rate owed on the loan or extending the period of loan. Also everyone looks for refinancing in order to be able to achieve equity faster.


There are too many individuals who are "house rich and cash poor." What value is it if your house is paid off in full, but you do not have any liquid cash to support? Keep in mind that your house will no doubt appreciate over the next few years. It will do so whether or not you have a large or a small mortgage. The more equity you have in your house will put more money in your pocket when you sell it, but while you are living in the house it is only "dead equity."


In essence refinancing can be used to transform available equity in one's house into ready cash, available for other purposes or expenses.


refinancing an adjustable-rate mortgage into a fixed-rate one, ensures a steady interest rate over time, by removing the risk that interest rate might increase terribly.




As no one is perfect, also there is not good thing without some risks and cons:




Lenders sometimes offer no-cost refinancing, charging you zero points for your mortgage loan. Generally, you will pay a higher interest rate than on an otherwise comparable mortgage with points, and you'll still have to pay the other costs associated with the loan. there are also closing and transaction fees typically associated with refinancing a loan or mortgage. In some cases, these fees may outweigh any savings generated through refinancing the loan itself.


Some sub prime lenders charge excessively high fees, but you can screen these out by comparing mortgage rates.




All you need is to determine the goal behind seeking a refinancing, collecting information about several lenders options and then work on your refinancing.




Finally it became aparent that refinancing, as hasing lots of advantages it also has disadvantages and risks. You should pay great attention that some refinanced loans, while having lower initial payments, may result in larger total interest costs over the life of the loan, or expose the borrower to greater risks than the existing loan, depending on the type of loan used to refinance the existing debt.




So you have to be carefull and Calculate the up-front, ongoing, and potentially variable costs of refinancing while making a decision on whether or not to refinance and you have to Check your mortgage agreement to see whether it contains a prepayment penalty, and try to avoid prepayment penalties in any refinanced mortgages.

Economic Data And Its Influence On The Financial Markets

The things which contribute to price levels and action in the financial markets are numerous and diverse, and their influences can vary through time, and across different markets. This article identifies the different types of Economic Data influences and the role they play.




There are two ways economic information can influence prices. The first is in the macro sense. Macroeconomic inputs include:




Interest Rates


Economic Growth (GDP)


Government Budget Surpluses/Deficits


Trade Balances


Commodity Prices


Relative Currency Exchanges Rates


Inflation


Corporate Earnings (both for individual companies and the broad collection)




These elements will generally all have long-term inputs in to the pricing of any given market. They do not tend to move in sharp, dramatic fashion, so their influences also tend to be seen over longer periods of time.




That said, the release of economic data related to the above can be seen to have serious impact in the short-term activity in the markets. This comes primarily in the form of data releases. Some of the most important are:




Employment Data


Trade Data


GDP growth figures


Consumer & Producer Inflation rates


Retail and Wholesale Sales


Confidence & Sentiment Readings (U. Michigan survey, etc.)


Income & Spending


Production


Interest Rate policy decisions


Earnings releases




The markets can react in very, very dramatic fashion to these releases when they are out of line with expectations. The foreign exchange market, namely the EUR/USD exchange rate, provides a striking example.




On one Friday morning at 8:30 Eastern the monthly Non-Farm Payrolls report hit the wires. This report (released on the first Friday of each month) probably provides the most short-term volatility across all market sectors of any regular economic release. When the data comes in well off of market expectations, fireworks can ensue, as was the case in the example. Over the course of about 2-3 minutes EUR/USD fell more than 20 pips, turned around and rose about 60 pips, then fell back down to near where it had been before the data was announced (a pip being 1/10,000 of a Dollar). It then proceeded to run nearly 100 pips higher in fairly steady fashion over the course of the next hour.




Here is another example, this time of T-Bond futures.




When those payroll figures were released at 8:30 the market dropped more than two full points. One point on the T-Bond futures contract is worth $1000, so each contract fell more than $2000 in about two minutes. Consider that the margin on a contract at the time was probably around $2500. That means a trader could have lost more than 80% on the trade in the blink of an eye.




It is also important to understand that in the futures pits such data events often result in fast market conditions. This means that the action is so hectic that there may literally be trading going on at several different prices in different parts of the pit. This is a risk of having open positions at the time of a major news release. The market may snap back fairly quickly, as in the chart above, but in the meantime the trader’s positions may have been liquidated on a stop order at a substantial loss.




Fortunately, all major economic releases are well documented. They are done on a pre-announced calendar which is readily available on any number of web sites, and of course in the business news media. In the vast majority of cases, one can also find out ahead of time from any number of sources what the expectations are for the release.




Foreknowledge of pending data events may not prevent losses which may result from unexpected figures. It will, however, allow the trader to recognize and understand when risks are increased. Make sure, especially if you are a short-term trader, to know what data is coming out. It can make a difference in your performance.

Is Re-Financing Always Worthwhile Anyway?

This is a very important question which all homeowners should ask themselves both at the start and towards the end of the process of re-financing. The answer to this question can spur the homeowner to investigate re-financing further or convince the homeowner to table the thoughts of re-financing for the moment and concentrate on other aspect of owning a home.




Establish Financial Goals




This should be the first step in the process of determining whether or not re-financing is worthwhile. Without this step, a homeowner cannot accurate answer the question of the worth of re-financing because the homeowner may not fully understand his own financial goals. While financial goals may run the gamut from one extreme to another the most basic question to ask is whether the more significant goal is long term savings or increased monthly cash flow. This is important because re-financing can usually achieve these two goals.




Do You Want to Save Money in the Long Run?




Homeowners who establish a goal of saving money in the long run should consider re-financing options such as lower interest rates or shorter loan terms. Both of these options can considerably lower the amount of interest the homeowner is paying on the loan. This is significant because paying less interest will result in a greater cost savings.




Consider an example where a homeowner has an existing debt of $100,000, an interest rate of 6.25% and a loan term of 30 years. Just by reducing the loan term to 15 years the homeowner can significantly decrease the amount which is paid in interest during the course of the loan. However, this option will also result in an increase in the monthly payments made by the homeowner. Therefore this type of re-financing option may only be available to those who have enough cash flow to compensate for the increase in monthly payments.





Do You Want to Increase Your Monthly Cash Flow?




Some homeowners may have a chosen goal of increasing their monthly cash flow. For these homeowners the overall cost savings may not be as important as having more money available to them each month. These homeowners might consider a re-financing option in which they are able to extend their loan terms. This means they will be repaying the existing debt over a longer period of time. The homeowner will pay more in interest in the long run but will achieve their goal of lower monthly payments and an increased cash flow.




How Will Re-Financing Affect Tax Deductions?




This is another serious consideration for homeowners who are interested in investigating the possibility of re-financing. The interest paid on a home loan is often tax deductible. A homeowner who re-finances in a manner which results in less interest being paid annually may adversely affect their tax strategy. The implications of this type of chance can be amplified for homeowners who were previously just below a significant tax break line. A significant decrease in the amount of interest paid will mean a significant decrease in the deduction the homeowner is allowed to take. This reduced deduction can put the homeowner in an entirely different tax bracket and could end up costing the homeowner money in the long run. For this reason, homeowners who are considering re-financing should have a tax preparation professional determine the ramifications re-financing will have on their tax return before a decision is made.

New Generation Of Financial Information Systems Makes Crunching Numbers Faster And Easier

In what seems like only a few short years, fiscal selective information systems (FIS) have evolved from simple, back-office support systems into fully integrated solutions that can handle everything from payroll to accounts receivable and gross cycle management. But such increased functionality would not be possible without the ability to combine disparate databases into a single source of entropy that can be mined at multiple levels.

The importance of data mining quickly became apparent to corporate executives at James Edmund Scripps Wellness in San Diego, who had been working with six separate databases before upgrading to a newer variant of Dawn Approach Coach/Affected role Fiscal Handler from Boca Raton, Fla.-founded Eclipsys Corp.

Edward Wyllis Scripps currently operates five acute care facilities totaling nearly 1,400 beds, two medical groups with 14 outpatient clinics, a home health agency and a health plan. Today, yearly revenues average $1.35 billion, which is a big turnaround from a few years ago when posted operating losses in 2000 and 2001 totaling approximately $26 1000000 and $22 one thousand thousand and respectively. In an effort to bolster their bottom line, devised a number of key strategies, not the least of which was drastically changing their methods of charge and reimbursement.

"A couple of years ago we moved away from capitated risk to fee-for-service risk," says David Ferdinand Julius Cohn, vice president of patient services. Additionally, since each infirmary had been running its own Eclipsys FIS, the organization made the decision to rise these 13--old systems by installing an enterprisewide FIS.

Realized similar gains in efficiencies, although not all were directly related to the adoption of a new software solution. admits that a significant portion of gain was due to process improvements in recovering underpayments from third-party payers.




"We look at trends by types of underpayments and develop strategies to work together with our payer partners," he says, adding that collection of underpayments in financial 2003 was 9 percent above 2002, amounting to More than $15.4 meg. The auditing of Thomas More than 100,000 accounts during outpatient tax income charge-capture audits yielded Sir Thomas More than $10 a million in additional charges.




Furthermore, monthly cash collections for 2004 exceeded those for 2003 by $10.4 , while net taxation between 2001 and 2003 increased by $44 as a result of improvements in charge capture, coding, reduced bad debt and incremental tax revenue recovery. In addition, operating profitability, during that same period, improved by $40 . A focus on reversing the losses incurred during 2000 and 2001 also led to establish a systemwide cycle steering committee, as well as multidisciplinary teams on the level so that "everybody would be on the same page,".




Drake adds that coordinating the steering committee and teams helped define how the centralized business office could best support the needs of each facility. Those weekly meetings covered a wide range of topics, she says, including coverage, interim and obstacles to discharge. But went even further in overhauling its strategies.




It developed a -dedicated claims processing team within Kaiser's regional claims center in Pasadena, Calif., which reduced the claims backlog by $6. It outsourced unpaid commercial and PPO outpatient claims to QuadraMed. "We wanted our people to stay focused on higher-dollar claims," explains . Drake also says, "We did an awful lot of work on appeals by working with our payers and improving our contracts."




There's no question that upgrading to Dawning Memory access Director/Patient role Managing director variation 11.3 improved the organization's efficiency in accessing and analyzing data. A major driver in that rising slope was the EDI transaction set requirements mandated by HIPAA, says.




Also, needed to streamline its Medicare process, since Medicare accounts for about 35 percent to 40 percent of its business. Due to time constraints resulting from the HIPAA deadline, was unable to install a Web- edition of the Eclipsys software, choosing instead the character- interpretation that could ruin on a UNIX platform using a cache system, says Drake. However, plans are already in the works to ascent to reading 11.4.

Financial Readiness: How Prepared Are You?

Home is where most people feel safe and comfortable. But sometimes — say, when a hurricane, flood, tornado, wildfire, or other disaster strikes — it’s safest to pack up and go to another location.

When it comes to preparing for situations like weather emergencies, financial readiness is as important as a flashlight with fully charged batteries. Leaving your home can be stressful, but knowing that your financial documents are up-to-date, in one place, and portable can make a big difference at a tense time.


Here are some tips for financial readiness in case of an emergency:

Conduct a household inventory. Make a list of your possessions and document it with photos or a video. This could help if you are filing insurance claims. Keep one copy of your inventory in your home on a shelf in a lockable, fireproof file box; keep another in a safe deposit box or another secure location.

Buy a lockable, fireproof file box. Place important documents in the box; keep the box in a secure, accessible location on a shelf in your home so that you can “grab it and go” if the need arises. Among the contents:


- your household inventory

- a list of emergency contacts, including family members who live outside your area

- copies of current prescriptions
- health insurance cards or information

- policy numbers for auto, flood, renter’s, or homeowner’s insurance, and a list of telephone numbers of your insurance companies




- copies of other important financial and family records — or notes about where they are — including deeds, titles, wills, birth and marriage certificates, passports, and relevant employee benefit and retirement documents. Except for wills, keep originals in a safe deposit box or some other location. If you have a will, ask your attorney to keep the original document.




- a list of phone numbers or email addresses of your creditors, financial institutions, landlords, and utility companies (sewer, water, gas, electric, telephone, cable)




- a list of bank, loan, credit card, mortgage, lease, debit and ATM, and investment account numbers




Social Security cards




- backups of financial data you keep on your computer




- an extra set of keys for your house and car




- the key to your safe deposit box




- a small amount of cash or traveler’s checks. ATMs or financial institutions may be closed.




- Consider renting a safe deposit box for storage of important documents. Original documents to store in a safe deposit box might include:




- deeds, titles, and other ownership records for your home, autos, RVs, or boats




- credit, lease, and other financial and payment agreements




- birth certificates, naturalization papers, and Social Security cards




- marriage license/divorce papers and child custody papers




- passports and military papers (if you need these regularly, you could place the originals in your fireproof box and a copy in your safe deposit box)




- appraisals of expensive jewelry and heirlooms




- certificates for stocks, bonds, and other investments and retirement accounts trust agreements





- living wills, powers of attorney, and health care powers of attorney insurance policies




- home improvement records




- household inventory documentation




- a copy of your will




Choose an out-of-town contact. Ask an out-of-town friend or relative to be the point of contact for your family, and make sure everyone in your family has the information.




After some emergencies, it can be easier to make a long distance call than a local one.




Update all your information. Review the contents of your household inventory, your fireproof box, safe deposit box, and the information for your out-of-town contact at least once a year.

How To Safeguard Your Financial Life

How to Safeguard Your Financial Life Several financial planners would agree that one of the foremost and important steps that you should take to protect your financial stability is to set aside funds as emergency reserve. The concept that you have the


fund for emergency and unexpected events is enough to


help you stay away from using your credit card and


drown yourself in debt.




How to Get Started




Everyone must stash a little extra cash in case of


emergencies. However, how much money should you keep?


Although the topic of exactly how much money is needed


for your emergency fund is open to debate, the minimum


amount should be enough to cover your expenses for


daily living for at least three months. It is also


wiser to save for six months though most financial


planners agree on a full year worth of cash.




Your personal circumstances and what it takes to


provide you with a peace of mind are the elements to


help you determine just how cautious you want to be.


If for instance, you have well-off parents who have


always been supportive and willing to help you in a


financial crisis, an emergency fund for three months


will be sufficient. On the other hand, if you had


reach for you credit card for help and end up paying


15% in interest on the debt, you would be better off


saving enough money for your expenses that would last


for at least six months.




If by any chance you are thinking about where to place


your money, emergency fund, paying off the credit card


debt or funding your 401(k), you can always start with


your credit card debt. Next, you can contribute to


your 401(k). This step is especially useful since you


can later borrow money from your 401(k). However, as


soon as all those are finished, return to your project


of setting up your emergency fund.




If you do not feel like you are required to make your


entire funds this week, you can start like everyone


else. Begin by setting aside a monthly amount, like


for instance, 5% of your paycheck or other amount that


allows you to build one month’s worth of living


expenses over the course of a full year. It is also


advisable and helpful to make this automatic. You can


do this by asking your bank to do an automatic program


for deduction from your checking account to your


savings account.




Additionally, monitor you spending habit each month


and always search for areas that you can develop. If


by any chance you receive a promotion, bonuses, or


other unexpected windfalls, always think about


including them to your emergency fund.




Where to Keep the Cash




Keep your emergency fund somewhere that is both easily


accessible and safe because you might be required to


get the cash in a hurry during emergencies. Remember


not to put your cash in the freezer but do not tie


them up together in stocks whose worth may have


declined by the time you need them.




The best option you have is to open a savings account


or money market account. However, always examine their


offer with regards to the minimum balance, interest


rate and other terms.




By time you think you have saved enough, learn how to


stop. You can now sleep easier and try to start


placing your additional saving into higher-interest


and usually less accessible investments or accounts.

Making Financial Choices

It can be hard to make choices in regards to your finances. But you have to get used to it. It is part of managing your money wisely and being an adult. Choices have to be made.




So what can you do?




First, don't spend time worrying about the decision. Worry does nothing. No one has ever had a bill paid by worry. No one has gotten out of debt by worrying or made a million dollars by worrying. Worrying gets you nowhere.




Actually, too much worry can get you into trouble. People make rash decisions when they are desperate. And worrying can make you desperate for the first solution that comes along.




Instead, you need to set a certain amount of time aside during the day to think about your decision. When that time is up, you walk away and leave your thoughts there. I know this is hard to do, but if you are truly working towards making a decision during your time, you should be able to leave it there for a while.




The choices you have to make shouldn't consume your entire life. That is no way to live.




Start by writing things down. This can be an effective tool for organizing your thoughts, comparing choices and getting a sense of the true situation. For some reason, when you see things on paper, they often look much differently. You are often able to leave things alone for a while and clear your mind if your thoughts are safely on paper.




For example, if you are deciding whether or not to sell your home, you could make a few lists. Start with your selling of the home page. List what you gave for the home, including closing costs and an major improvements. Then write down how much you owe. How much do you expect to get for your home? Write down a few realistic numbers. Now you can see what your profits might be.




Then look at your options for after you sell your home. Are you looking at moving up? Calculate what your mortgage payment would be if you moved into a larger home. Then look at moving down. I know that idea may not make sense to you, but consider what having even less of a mortgage might mean to your finances. If you are in a financial pickle right now, a smaller mortgage might be helpful.




Put things down on paper. When you are in debt, this is one of the best ways to start looking at how you will deal with your debt.




Most importantly, decisions must be made. We make small ones every day. Large ones seem so much more important and take more time. But you can't second guess your every decision. Once you make your choice, it is made. And you will deal with the consequences. Take your time, review the facts and use your calculator. Don't just rush into things based on emotion. Remember, plans don't always work out and you have to reassess the situation. But if you plan wisely and take your time, things will work out in the long run.

Searching For A Financial Adviser

The market has so many investment choices that it can offer you, people tend to become overwhelmed just with the thought of them. It is important to have a plan, the discipline, and proper guidance when implementing any financial goals. There are many things within the market that can become extremely tempting, that they will come out with portfolio’s that are misaligned, thus resulting in high risks and poor performance within the market.




Any person wanting to become involved with the market should seek out the council and advice of a financial advisor. This professional can help you meet your goals, as well as helping you protect the finances you have. A financial advisor that is a professional should have all the necessary expertise, qualifications, and tools that can help you focus on your long term goals.




When searching for a financial adviser, you will want a person that helps you to build a plan according to the priorities you currently hold, as well as helping you build for the financial needs within your future. You should seek a person that is willing to meet regularly with you to make any adjustments that are necessary and monitor your progress. Here are specific qualities you will want to look for in your financial advisor:




• Personally meet with you for discussion in how your finances are handling and deciding your goals for the long term.




• Answer any and all questions that you have about the financial advisors experience, compensation, and qualifications in their area.




• Reviews your plan in regularly scheduled sessions




• Keeps you informed and current on all changes regarding your portfolio




• Informs you of new opportunities of investments that could prove beneficial to you






Your relationship with your financial advisor should be a personal one, you must communicate with him or her on a regular basis. You will need to convey to them many things such as your risk tolerance and your goals, as well as any other information the financial adviser may require. It is important that you both work easily together, will allow you to help meet your short term needs, as well as those for your future.




When you meet with your chosen financial advisor you should be prepared to ask them any questions you may have, some of these questions should include:




• The qualifications they possess


• Experience they possess


• Services offered


• Their specific approach in financial planning


• How many people you will work with in meeting your goals


• Compensation for services


• Charges for services


• How their company is regulated


• Services, fees, and plan in writing

Refinancing – Points To Remember

You would consider refinancing only when going gets tough and making ends meet becomes difficult with credits looming over large on you; and you are in a debt trap with creditors calling on you day-in and day-out. Refinancing is your option if it helps reduce your net monthly outgo. Weigh the pros and cons of the option and keeping in mind, the hard facts of life.

You would consider refinancing only when going gets tough and making ends meet becomes difficult with credits looming over large on you; and you are in a debt trap with creditors calling on you day-in and day-out. Refinancing is your option if it helps reduce your net monthly outgo. Weigh the pros and cons of the option and keeping in mind, the hard facts of life.




Some Key Points to Ponder




1. Reducing your monthly installments. Multiple credits and mortgages bog you down with accumulated interests. A reasonable refinancing reduces the monthly outgo and the number of checks to write for a similar period.




2. Breakeven time. Although it depends on multitude of factors, sooner the breakeven the better.




3. “Points” to ponder. Points are onetime percentage costs included into your mortgage. Higher the point lower will be the interest rate. Make a judgment depending on your situation.




4. Risk reduction by paying off high cost flexible interest refinance.




5. Weigh the option of high closing cost with lower interest rate against no/low closing cost with high interest over the same or lesser period.




6. Consider refinancing if you can generate some extra income through refinancing. The comforts of additional resources cushion your efforts to see off debts quicker than you imagined. If not, it is going to take you from bad to worse.




7. You can refinance that portion of the debt which was shared by your spouse before divorcing.




8. Secured refinance gets you lowest interest. You can use your home equity to secure refinancing.




9. Tax matters. Taxation differs when you switchover from one credit to another or when you refinance an existing loan. Consulting an expert must be your top priority.




10. Paper work. None of the above points hold well, unless you got all your requisite papers in place.




Don’t haste through the steps. Keep in mind this is your last straw. Check the credentials of the lender before you sign on the dotted line. It takes a very hard effort to keep away from scrupulous operators. Speak to their customers to get an insight. Understand their processes before committing yourself. Better still, take notes and compare with other lender’s credentials. With due diligence, and keeping the key points in mind, re-financing, is afterall not a big eye-monster that is hard to tame. Once that re-financing monster is tame, your financial status should recover in no time.

Merit-Based Financial Aid – a real merit to students

Merit-based financial aid is one of the main financial aid packages awarded based on their merit or merit plus of students. Merit-based financial aids usually come from state or federal sources or private sources. These types of financial aid packages are intended to assists students to help their college expenses. Merit-based financial aid need not have to be repaid. The rules and regulations of financial aid packages are based on the federal financial aid rules.




Merit-based financial aids can be obtained based on your performance or talents in a variety of areas such as academic achievement, extracurricular involvement, athletic, leadership, volunteer work, or artistic talent (art, music, or theater). You can also obtain merit-based financial aid if you have any other personal qualities which distinguish you in the applicant pool.




Merit-based financial aid will not consider you or your family's financial situation. Though most scholarships are a combination of financial need and merit, but still there are several scholarships which are purely based on merit. Recipients of these scholarships are selected without regard to income information. The amount of scholarship varies according to the state you reside and also in which scheme you are awarded by a scholarship.




Now let us check how to search for a merit-based financial aid. First of all you have to contact your State Department of Higher Education. Almost every state will have a scholarship program for its residents. But remember that these scholarship programs will mostly be limited to its students who join the college. That is, for example the scholarship program offered by the State of Alabama will be provided for qualified students of Alabama who decide to attend in Alabama state colleges and universities. Also, the student applying for a merit-based financial aid package need to be enrolled, or accepted for enrollment, or must be attending at least half-time in an approved postsecondary educational institution.




Also don’t forget to research institutional scholarships. Check the various types of scholarship programs offered by the colleges. You can check the college websites, catalogs, and financial aid offices to know the details of institutional scholarships offered by them. Institutional awards are usually offered within a particular college or on a university-wide basis. Hence check what types of institutional scholarships are offered by your college or the college you are going to join. After checking a list of scholarships that interest you, apply for the one with relevant documents which support your achievements.





To receive merit-based financial aids you need to fill up the Free Application for Federal Student Aid (FAFSA), no matter how many colleges you are considering. The FAFSA features a section for students to record the colleges to which you need your information to be sent. Remember to check with each college to verify if there are any additional forms required.

Health Insurance When Living Abroad

You may not know this already, but when planning on traveling abroad you cannot take your local insurance with you. You will need to purchase an international insurance plan offered by a multinational insurance company. While they may be hard to track down, it is the best way to assure that in the event of an accident or illness you will be able to acquire medical attention if needed.

Many of these plans will cover you up to six months in another country. When you speak with the insurance company, be prepared to give an extensive list of information to them. This will range from health problems you've had in the past ten years, your hereditary conditions to substance abuse, and almost everything else-if it has anything to do with your health be prepared to disclose the information. If you are planning on traveling with more than one family member, then be prepared to give information for each family member as well.

Many times your basic coverage will include emergency treatment regardless of which facility it is administered. This is not the case with minor medical treatment. It is important to know whether you are buying an insurance plan that is an HMO or PPO. If you are under an HMO or health maintenance organization, then you will be limited to receiving care from only the providers who are in their network. You can retrieve a list of all the companies within your insurer's network upon request. If you are under a PPO, or preferred provider organization, you will have the opportunity to pick the best facility you see fit, but your insurer will only cover a portion of the incurred cost.

If you plan on staying abroad for more than six months then you will need to look into what is called expatriate health insurance. Only larger companies supply this type of insurance, as it is much more extensive with the type of options that can be applied to each policy. The type of treatment options that are covered with expatriate health insurance are those that are labeled as specialty treatments, like chiropractic therapy and acupuncture. There are many options that can be applied to expatriate health insurance depending on your family's needs and how long you plan on spending abroad.

There are many options for health insurance when you are traveling abroad. While many individuals never consider purchasing insurance when traveling to another country, this should be at the top of your list when planning for a trip. Health insurance should not be taken lightly. Be sure you understand every aspect of your policy before deciding with any one particular company.

Financial Balance: Reducing Unnecessary Spending

If Americans were polled about their personal concerns, at the top of the list would be finances. Finances are important in our lives, from the national budget to the family budget, and when our finances are unbalanced, it can lead to serious trouble. Not only are bad finances linked to a significant number of failed marriages, but our personal financial history becomes public record when we apply for a job or credit.

Living month-to-month or buried in debt is hard, but ma...


If Americans were polled about their personal concerns, at the top of the list would be finances. Finances are important in our lives, from the national budget to the family budget, and when our finances are unbalanced, it can lead to serious trouble. Not only are bad finances linked to a significant number of failed marriages, but our personal financial history becomes public record when we apply for a job or credit.

Living month-to-month or buried in debt is hard, but many people don’t have to live that way. Simply reducing unnecessary spending will help to balance the budget at home and free up money for paying off debts.

Implement one or more of the following helpful suggestions to aid in balancing the home budget, and breath a little easier.


Limit eating out




If you're like most Americans, you eat out at restaurants, fast-food or not, far too often. Setting a limit to the number of days or times we eat out per week will not only help our waistlines, but our wallets as well. The cost of one restaurant meal can feed an entire family of four for dinner at home, and simply eliminating that cup of coffee and donut in the morning can save up to $1,300 per year! Spend less than half that amount by making coffee at home and popping a bagel in the toaster.




Take stock of your utilities




Utilities are impractical to eliminate, but their cost can be greatly reduced. Many gas and electric companies provide discounts for upgraded appliances, or percentages off bills that show a decrease in power usage. Also, eliminate any unnecessary phone services, such as Caller ID or Call Waiting. Remember to check the monthly water bill for signs of a leak, which can cause a huge financial impact. Overall, review charges and statements each month to avoid paying for unused or undesired services.




Get a new quote




Many people go year to year not realizing they can make a change on their homeowner’s or vehicle insurance. Getting a new quote can be as easy as spending a few moments on the internet providing some key information. The savings can be drastic, especially if multiple insurance policies are purchased from the same company. As with the utilities, coverage should be reviewed periodically for changes that can be made.




Reduce unnecessary travel




Most people have multiple errands to run each week. Running all errands in one weekly trip will save gas money, as well as costly wear-and-tear on the vehicle. Also, limit vacations and out-of-town travel to the most necessary of events, such as weddings and funerals. Forgoing unnecessary travel will tremendously help the budget.




Give up a little entertainment




Eliminating a few channels on the cable or satellite television service can save substantial money each month. Are the movie channels really necessary, and are they watched that often? Magazine and other entertainment subscriptions should also be looked at as a possible area in which to save money. Do you really need 14 magazines every month? Anything that isn’t used or read should be eliminated.




Keep a budget and stick to it




Finally, the most important aspect of balancing a budget is to know what the budget calls for. Make a list of all necessary items and their cost each month, and on that same paper write down the expected monthly income. Remember to budget a little extra for emergencies or savings. Cut down wherever possible to keep expenses below earnings. As the amount of money left over increases, more money to pay off debts or enjoy a splurge here and there becomes available. Remember to make a new list each month, crossing off bills as they are paid, in order to avoid late fees - which will only add to next month’s bills.

Private Financing

Private financing options are available for personal, investment, and commercial purposes. Private financing simply means you are not dealing with a traditional bank. Private financing can be obtained from private parties who are also known as Angel Investors, hard money lenders, private equity investors, investment groups, or venture capitalists.


Angel investors make up the largest and the most flexible group of private financing options. Angel investors may be relatives, friends, colleagues, or persons as yet unknown to you. If your scope of acquaintances does not yield suitable private financing, spread the word about your project among all of the above, as well as bankers, brokers, business development groups, etc. The right angel investor will for private financing will probably be someone who has some knowledge of your industry. Angel investors may provide a simply loan, repayable with interest and possibly points and a prepayment fee. Alternatively, they may want to take an equity position with your company, taking stock in combination with or instead of interest on the private financing they offer you.




Private equity lenders, aka venture capital firms, can be thought of as a group of Angel Investors providing private financing as a group. Venture capital firms sometimes offer incubators: office suites in which their darling companies (for whom they provide private financing) are housed, watched over, and assisted through the early stages of development. To give private financing groups the returns that their investors are looking for, private equity lenders always want a piece of the action. In exchange for the private financing they offer, private equity lenders take an equity position in your company through stock or some other means and become your financial partner.




Private financing obtained in exchange for stock can be an excellent way to get the initial operating capital needed to start a business, but it can be extremely expensive on the far end. While you will likely not be paying interest in the early stages of your business, you will pay dearly should you become a success.




If you have real estate to collateralize, you may be able to obtain private financing without having to give away an equity position (and a place on your Board, control of your business decisions and all that comes with having a financial partner) by working with a hard money lender. Naturally, hard money lenders can provide financing for real estate investment projects, land acquisitions, and construction projects. But, by collateralizing real estate you already own, you may be able to obtain private financing for purposes completely unrelated to real estate. When it comes to hard money private financing, the use of funds is not as important as a clear indication of how the loan will be paid back. Naturally, if you are unable to repay the loan, the real estate collateralized by this kind of private financing will be sold off by the private financing lender, just as traditional banks foreclose on homes when you cannot pay the mortgage.




Regardless of the path you choose in obtaining private financing, you will find private financing companies are more flexible in lending criteria than banks, SBA, or similar traditional lending institutions. Check out private financing companies and brokers online to see which will suit your business needs most effectively.




Recommended Sources of Private Financing:


http://www.rocklandcommercial.com


http://www.interestratepolice.com


http://www.californiaprivatemoneyloan.com

The Perils Of Buying And Financing A Used Car

Whenever a person buys or leases a car, he seeks ways to finance this move. Most auto financing involves a car loan, which entails a detailed check on his credit history and a tough interview about car finance. When he undergoes all these to buy a used car, it is only fair that he also performs his own investigations about the car he is going to buy. In fact, he should never consider buying a used car, which history has not been checked. If he does, he may just end up paying ...

Whenever a person buys or leases a car, he seeks ways to finance this move. Most auto financing involves a car loan, which entails a detailed check on his credit history and a tough interview about car finance. When he undergoes all these to buy a used car, it is only fair that he also performs his own investigations about the car he is going to buy. In fact, he should never consider buying a used car, which history has not been checked. If he does, he may just end up paying for a piece of junk.




A used car must be checked for its title, registration, odometer, and the problems that it had weathered before it reached your eyes. A “title check” will determine if the car is salvaged, flooded or rebuilt. For example, many cars were destroyed during the 9 -11 World Trade tragedy. Many cars, too, were damaged during the hurricanes and floods. These cars were salvaged by enterprising people. The cars will be rebuilt and sold again at car auctions. A title check will also discover if the used car has lemon history.




A “registration check” will determine if the used car has been used as a fleet car, or as a taxi, or even as a police car. If the used car has been utilized in any of these, then it is safe to say that within a given period of time, this particular used car has covered more miles than the average privately used car. A registration check will also reveal if the used car was ever rented or leased.




The car’s odometer is an instrument used to measure the distance traveled by a vehicle. An “odometer check” will show if the odometer has been broken or fraud. It will also show if it has been rolled back or rolled over. If the odometer has been tampered, this does not bode well for the next owner of the used car. The car may be older than what the dealer is telling you. Or it may have mileage problems.




A “problem check” will determine if the used car has sustained fire damage or an explosion. It will also show if it has been involved in a major accident. The fire or accident may have inflicted a still undetected damage on the used car. It is also quite creepy to use a car that has cradled dead bodies before. A problem check will reveal if the car has been stolen. A car that has been stolen may no longer have all its original parts.




A used car may give you more problems than you can manage. But not all used cars are damaged, leased or stolen. This is why there are still many people who take out car loans to buy a used car. To be safe, the potential buyer must order a vehicle history report.

Ways of Paying for Health Insurance

When it comes to health insurance, many people don't exactly know everything that there is to know about the subject. That only stands to reason, it is not something that is easily understood because of its complexity. For instance, when you visit the doctor you may be asked to pay something that is called the "co-pay", and other times you may not have to do anything at all depending on your plan. Let's look at some of the ways that health insurance is paid for.

Often times, your employer will sponsor your insurance and you only have to pay what is known as a "co-pay" or co payment. The co-pay is a set amount that is determined by your insurance company when you receive covered services. This is a significantly smaller fee than you would be paying without the co-pay. Many companies offer this type of payment option because it is easier on the employee to pay this way.

You may consider opening what is known as a Healthcare Savings Account (HSA). This will assure that you always have a location in which to retrieve payments for various medical expenses. The HSA is a pre-tax savings account where a portion of your pre-tax income, determined by you, is deposited into an account automatically. Since this account comes from your paycheck pre-tax, that means it will lower your overall taxable income. This means you are saving money in terms of taxes and saving lots of money towards your overall health care costs.

For certain disabled individuals and those above the age of 65, Medicare is also another way to pay for health insurance. While they will not pay all of your healthcare expenses, they will pay for most of them. Medicare, however, doesn't cover prescription drugs and nursing homes. It is important that you check the different types of restrictions that may apply. There are low-cost prescription discount cards that have been proven to save people who require costly medications on a regular basis over 50% of what they would have been paying without any health care.

Paying for health insurance doesn't have to be complicated as long as you understand just what is going on in terms of where you stand with your plan. Discuss any questions you may have about the plan before committing to one. While one plan may be right for many people, it does not always mean that it will fit your specific needs. 

Traveling Alternative Roads: Other Options for Health Care

Health insurance can be expensive if you are not lucky enough to have it provided by your employer. Even shopping around for the best quotes may not be within your budget. Luckily there are alternatives to health insurance that you can take advantage of so that you and your family will be safe even if an emergency situation comes up. You can apply for the prescription discount card program, which is a low monthly cost and works at most of the of corporation drug stores that we all use. There are also programs that give you health care but are not considered "health insurance".

The prescription discount card is great for anyone who has regular prescriptions that need to be filled over a long period of time. The cost of prescriptions without insurance is high and always rising. If you cannot afford health insurance, there is no way that buying these full priced prescriptions will come without difficulty. You can enroll in a discount card program on the Internet or you can call around to try and find one locally. The reported savings for each person is estimated to be at least 50%, and some programs will enroll you for under $5 a month. 

Health care programs are another popular alternative to expensive health insurance. BeniCard, for example, is a highly acclaimed health care program, and for a small monthly fee, you can have your immediate family covered. You will not be turned down because there is no limit to who is eligible, even if you have a pre-existing condition. It is not health insurance, but you will be able to save money on doctor visits, vision and hearing care, dental services, and prescription drugs. This is just one of the programs that can help you if you cannot get health insurance due to expense or because you have been turned down due to an illness.

No one should go without health care of some sort. Prescriptions are extremely costly without insurance, and if you or someone in your family has an emergency health situation, you could be left with a large debt for years. Insurance companies are hesitant to accept anyone with a pre-existing illness because it will definitely cost them plenty of money. For anyone who has been turned down for health insurance or simply cannot afford to pay a deductible, health care programs and prescription discounts are a low-cost alternative that could save you money.

The Importance of Keeping Good Files

As in everything that involves money, it is important
to keep good records of your medical expenses for many
reasons.

Keeping track of deductibles, especially for a family,
can be time consuming, but is an important task. Every
policy has different deductibles for lab work,
hospital emergency room visits, hospital stays, doctor
visits and x-rays, and it is often difficult to track.

Keeping track of your out-of-pocket expenses becomes
very important when it comes time to complete your
taxes. It also comes in handy to know what your
expenses are for medical care when choosing to change
companies or policies.

A file folder that includes a copy of the policy,
copies of your medical bills and copies of what your
insurance company has paid on those bills is usually
all you will need.

When a bill comes for a provider, you will usually
receive a statement from your insurance company
showing what portion of the bill they paid, and many
times providers write off the remainder, if it is not
a large sum.

If you visit several doctors, you may want to have a
file folder for each doctor or provider.

Insurance companies do occasionally make mistakes, but
they are usually on top of their game. Having a copy
of the policy handy makes it easy to check deductible
levels and whether a particular service is covered or
not.

It also serves as a ready resource for telephone
numbers, website information and your contact at the
insurance company.

The Importance of Good Records

Keeping your own records of any medical care that you and your immediate family have received is the only way to be sure that your insurance and bills are free from mistakes. It may seem unimportant now, but later in life when you try to get life insurance or get treatment that is appropriate for you, the importance will be in the spotlight. Everything from your allergies to your payment records with medical facilities can hurt you if they are wrong in your report. You could be given improper treatment or even denied treatment at all. By keeping your own records, you can dispute anything that is false.

Would you believe that you could be denied a job because of something erroneous on your medical records? It is true; if you are reported to have a disability, whether it is true or not, you could be turned down. You would be labeled as a risk, especially if the company offers insurance; they would know that you are going to cost more money to employ. The same goes for applying for health insurance where your medical records show that you would require prescription drugs, doctor visits, and increased chance of emergencies. It is quite the ordeal if you do in fact have a disability, but imaging if you did not have one at all-you would be turned down for insurance, while also being completely ineligible for disability financial help.

An example of a mistake that could be made on your record would be a diagnosis error. Perhaps you request that your doctor check a suspicious lump in your breast. On the first visit he may suspect that it is cancer. Most people will get a second opinion or go for a more thorough conclusive examination. If the second doctor decides that it is only a cyst and has it removed, your personal records would show that you are cancer-free. However, if this visit was documented incorrectly, or not at all, you may have trouble getting insured and not know why. If you had a record of the second visit that found the cyst, this situation would be easily disputed and your record would be accurate.

Human error is simply a part of life, even on medical documents. It is important to always keep your own records so that insurance companies get accurate information about you and your health condition. If you are being turned down for insurance and do not know why, you are best advised to be sure that you are not being misrepresented within your medical records. This problem can be cleared up quickly and easily if you are responsible enough to keep your own personal records.

The Basic of Health Insurance

The Basics

Health insurance, in this modern world of cancer,
heart disease, AIDS, diabetes, asthma, ageing and
other diseases and afflictions, it is essential to
have some sort of health insurance.

There are many levels of health insurance coverage
available; unfortunately, like most things in life,
you get what you pay for, and good coverage can be
very expensive.

The two most common terms in referring to health
insurance are premium, which is the amount paid for
the insurance, and deductible, which is your
out-of-pocket expense before the insurance pays your
provider.

For instance, you might pay $300 premium per month for
family coverage, and your deductible might be $250 per
person, which means if you fell and broke your ankle
and went to the hospital emergency room, you would be
required to pay the first $250 of the bill.

You can purchase very basic catastrophic coverage,
which would carry a very high deductible and the
premium would be less than comprehensive coverage
which would have a higher premium and lower
deductible.

It pays to invest the time to investigate various
insurance options, taking into consideration your age,
your general health and the health of your family
members.

Your employer may offer group health insurance, which
is most likely the least expensive option for you, and
usually the premium is deducted from your paycheck.

Health insurance is a calculated risk; can you afford
the premiums or are you willing to risk that you would
pay less out of pocket for medical expenses in a year
than the premiums would cost? Consider carefully.

Stay Legal! Avoiding Insurance Fraud

Everyone knows that the health insurance industry is continually raising monthly premiums, and many feel this is unjust to you as the consumer. However, the health insurance industry has had to fight increasing health insurance fraud. The amount of money spent on investigating and prosecuting fraud is then passed on to policyholders. Many people do not understand what health insurance fraud entails, though. With reports estimating health insurance fraud is a $30 billion to over $100 billion industry per year, the topic should not be taken lightly. Every health insurance policyholder should understand what health insurance fraud is and its consequences. By doing so, you are more able to recognize and fight fraud. 

Health insurance fraud is typically defined as intentionally deceiving, misrepresenting, or concealing information to receive benefits from the insurance company. Essentially this means that you assert that you paid for certain medical procedures or expenses out-of-pocket which you have not actually received, and you are submitting claims to the insurance company to receive reimbursement. Another example of member fraud is to conceal pre-existing conditions or to alter medical documents so that non-policyholders or ineligible members receive medical benefits under your policy. Perhaps your sister does not have insurance and needs medical attention. Having her use your name and policy to cover the expenses is health insurance fraud. While you may think that this is a small issue in comparison to your sister receiving treatment, it is actually very serious to your health insurance company and industry, and will result in fines and possible imprisonment if your are caught.

Not only policyholders commit fraud, but providers (physicians, hospitals, etc.) do as well. Since physicians and hospitals bill the insurance company for services they provide for you, they are also receiving reimbursement from the insurance company. When providers commit fraud, they may be billing the insurance company at higher rates for services rendered or they may bill for services you never received. In these cases, you will probably be asked to cooperate in the insurance company's investigation. 

Another type of health insurance fraud that has developed recently targets the policyholder more than the insurance company. Schemes have developed where fake insurance companies or agents sign unsuspecting customers for coverage at surprisingly low premium rates. They often act much like a regular insurance company for the first few months, paying for smaller medical claims like physicians visits. But once you have a more serious medical condition that needs treatment, the insurance company will disappear - along with the money you have been paying in premiums.

The rule with health insurance fraud is much like that of any other scam: if a deal seems too good to be true, just remember - it probably is. Remember to be honest in your dealings with health insurance companies and expect the same in the return from these companies, as well as your health care providers. Stay legal to avoid fines and prison and to continue receiving health insurance coverage.

Something Old, Sometime New: Insurance When You are Getting Married

Health insurance providers are not created equal. Before a couple is married, the option of sharing coverage is extremely unusual unless one of your insurers offers domestic partner insurance. As you become engaged, if you both have separate insurance it is important to talk about the both of you switching to the better plan once you are married. There are a few factors consider, which include deductibles, co-payments, and the benefits of each separate plan. Marriage is a big step, and it can be done with ease if the two of you settle important decisions such as your health insurance plan before you take the big leap.

Your deductible is the amount you must pay each year to start your policy. Once this payment is made you will be responsible for whatever amount of co-payment your insurance company requires for you to pay for the health expenses that are covered in your particular policy. The amount of co-payments that you will be responsible for is established at the time you agree to your health insurance policy. It is going to be a certain percentage of health expenses; for instance, you pay 10% while your insurer will be paying the other 90%. You and your fiancé should compare both of your plans and figure out which deductible and co-payment plan seems most appropriate for the two of you. 

Married couples are usually eligible for certain benefits that unmarried couples are not. Being insured separately by the health care provider sponsored by your employers may no longer be the most beneficial option for you. If you or your fiancé has insurance, and the other does not, once the two of you are married they can be added to the other partner's plan. Cost of adding an additional person is definitely something that should be examined. You should not be required to pay more for adding a spouse or even a child in the future because most plans are offered to immediate family at no extra cost. The best way to compare policies is to estimate a yearly amount of normal health expenses, emergencies, co-payments, and deductibles. Whichever plan has the lowest cost to you will almost always be the best choice.

In addition to sharing health insurance with your new spouse, you may also want to consider switching the rest of your insurance plans, such as the policies you have for your separate automobiles. This is because most companies will give you a discount on having more than one vehicle insured. You may also be interested in finding a company that can insure you home, automobile, and health in one place. If you carry more than one policy with a company, they will also usually give you some sort of discount on them. It is important to sit down and discuss insurance with your fiancé because the two of you could be saving money and stress by figuring out what decision is best before the time comes.

Say Cheese: Dental Benefits

Dental insurance is often an afterthought when obtaining health insurance for a number of reasons. Some people may simply dislike the dentist and use the lack of dental insurance as a reason to not visit the dentist; others may feel that dental insurance is not worth the added cost to their monthly health insurance premium. Still others may simply feel that their teeth are in good shape and there is little need to spend the extra money to cover a part of their body that does not currently have any problems. Nevertheless, dental insurance is important because of several benefits.

When people think of the cost of dental work or procedures, they often think of costly bills. Even simple procedures like getting your wisdom teeth removed can average in the hundreds of dollars per tooth! However, one obvious benefit to dental insurance is the coverage of simple but costly dental procedures such as getting a tooth removed. In the end, the slight increase in a monthly premium may be worth it to avoid a high dental bill. Moreover, dental insurance also helps financially if a dental emergency develops. Perhaps you are in need of a root canal or dental implants - both extremely costly procedures that you often do not anticipate. Dental insurance will most likely cover a portion, if not all of these expensive procedures.

Also, while many feel that brushing and flossing daily is all the dental care they need this is simply not true - even for young, healthy adults. Dental disease is common and can affect your body in a number of ways. For instance, some dental diseases left untreated can lead to more serious medical issues such as kidney infections or even diabetes. Most people do now know of the connection between dental diseases and other illnesses. Thus, having dental insurance that covers routine visits to the dentist, which can help uncover dental diseases early, is extremely important. Dental insurance is designed to encourage preventative care, because spotting dental diseases or dental problems early reduces the overall cost of treatment. 

Dental insurance may seem like just another gimmick to get a few more dollars out of you, but it is essential for your health. Your regular health insurance plan, whether it is through your employer as a group plan or an individual plan, should offer you the option of buying dental insurance coverage, and you should consider this piece of the plan thoroughly when purchasing health insurance.

Protection during the Golden Years: Health Insurance and Retirement

Health insurance for retirees or senior citizens can be confusing, especially with so many options and requirements. However, health insurance is crucial for retirees. As you grow older, your health obviously becomes more of an issue; you may visit the doctor more, need to fill more prescriptions, or even receive in-home care. Before you retire, prepare for health insurance to ensure that you receive the best benefits.

The first step in planning your health insurance coverage in your retirement is to see if your employer offers insurance coverage after you retire. If the company does, you should certainly consider it. Look at the plan, the deductible, and the coverage. Many near-retirees believe that Medicare will cover their medical payments, but this is not always the case. With this sort of coverage, you will most likely receive better health care but at a more expensive cost. As a retiree, you will certainly have a health insurance budget to maintain, and you will have to decide if the cost of your employer's insurance is too expensive.

If your employer does not offer coverage, Medicare will be an important and integral part of your health insurance if you are 65 years of age or older. Medicare works like traditional health insurance plans in that you have been contributing a small portion of every paycheck you earn into this plan. Once Medicare begins, you will make co-payments for office visits or treatment. Medicare will also cover the expense of certain medical equipment or needs. 

However, Medicare did not cover a number of items that are typical of health insurance. The government recently updated Medicare and divided it into three parts: Part A, B, and C. Part A covers hospital care, such as home health care, hospital stays, and hospice care. This part does not require a premium. Part B covers the more routine medical expenses, such as office visits and laboratory tests, while Part C enrolls you into a fee-for-service or managed care plan that reduces your out-of-pocket costs. Despite these different options, Medicare restricts your coverage by not covering certain kinds of care or illnesses and diseases. Thus, there is also Medigap coverage, which helps fill in the gaps in health insurance that Medicare leaves. Medigap coverage differs from state to state and has different payments.

Beyond Medicare and Medigap, there are also long-term care insurance plans that you can buy. You often see these plans advertised on the television at very low prices. These plans can help cover the costs of a nursing home or home health care. With so many different options and limitations, if you are retiring soon, you should take a look at your budget and what you can afford as well as what sort of coverage you feel you will need.

Prescription Insurance Policies

Some health insurance policies do not provide for
prescription coverage and a separate policy must be
purchased for prescription medications.

This is an area where it pays to do some homework and
research and find the best policy for you.

Prescription coverage insurance is not a necessity;
like health insurance coverage, it is a calculated
risk, although the risk is not as high.

Usually you can buy prescription insurance at any
time, so if the doctor determines that you need an
expensive maintenance drug, you may opt in at that
time.

It is important to know that if you presently have
prescription insurance you can usually only change it
at a specific time of the year, although you can add
new prescriptions, you can’t change plans.

The person who seldom takes prescription medications
probably does not need prescription insurance;
however, a person who takes maintenance drugs for high
blood pressure, diabetes, depression, heart disease or
immune disorders most likely needs insurance against
the high costs of drugs.

Prescription insurance policies usually have "tiers",
which usually means that a generic drug is at a low or
no co-pay, a tier 2 level may be the brand name
genuine, and a tier 3 may be a brand new expensive
drug that the co-pay could be a set high-percentage of
the cost.

In choosing prescription insurance, you should first
list the prescriptions that you take and the retail
amount of them. If you chose not to purchase
insurance, this would be your monthly cost.

Find out from the provider what the monthly premium
for you would be, then what the prescription co-pay
amount would be and add these two figures together.
Which is the less expensive alternative?

Medicare

Medicare is a governmental program which provides
medical insurance coverage for retired persons over
age 65 or for others who meet certain medical
conditions, such as having a disability.

Medicare was signed into legislation in 1965 as an
amendment to the Social Security program and is
administered by the Center for Medicare and Medicaid
Services (CMS) under the Department of Human Services.

Medicare provides medical insurance coverage for over
43 million Americans, many of whom would have no
medical insurance. While not perfect, the Medicare
program offers these millions of people relatively low
cost basic insurance, but not much in the way of
preventative care. For instance, Medicare does not pay
for an annual physical, vision care or dental care.

Medicare is paid for through payroll tax deductions
(FICA) equal to 2.9% of wages; the employee pays half
and the employer pays half.

There are four "parts" to Medicare: Part A is hospital
coverage, Part B is medical insurance, Part C is
supplemental coverage and Part D is prescription
insurance. Parts C and D are at an added cost and are
not required. Neither Part A nor B pays 100% of
medical costs; there is usually a premium, co-pay and
a deductible. Some low-income people quality for
Medicaid, which assists in paying part of or all of
the out-of-pocket costs.

Because more people are retiring and become eligible
for Medicare at a faster rate than people are paying
into the system, it has been predicted that the system
will run out of money by 2018. Health care costs have
risen dramatically, which adds to the financial woes
of Medicare and the system has bee plagued by fraud
over the years.

No one seems to have a viable solution to save this
system that saves many people throughout the country.

Health Savings Accounts

If you are considering changing your health insurance
policy, you should be aware of the alternative of a
Health Savings Account (HCA).

Health Savings Accounts started to become available
(and legal) in 2004, allowing people with
high-deductible insurance policies to set aside
tax-free money to fund medical expenses up to the
maximum deductible amount.

If you don’t have to use the funds, it rolls over
every year. Once you reach age 65, you no longer are
required to use it for medical expenses, although you
certainly can; you can withdraw funds under the same
conditions as a regular IRA.

Although you will be penalized if you use the funds
for non-medical expenses prior to age 65, you can use
the money for vision care, alternative medicine or
treatment and dental care.

For 2008, an individual may fund up to $2,900 tax
free. The maximum deductible would be $1100 and the
maximum out-of-pocket cost would be $5,600.

For a family, the maximum tax-free contribution is
$5,800 with the maximum deductible of $2,200 and the
maximum out-of-pocket cost would be $11,200.

Health Savings Accounts are certainly a viable way to
shelter income while providing catastrophic insurance
coverage in light of the high cost of low-deductible
health insurance plans.

For healthy people, it deserves some research. Consult
with your insurance agent for all of the details
involving this approach to managing your insurance
needs.