Peace of mind is important, whether you use your car for work, leisure, or for taking the kids to school.

You want to know that if something happens to the car you can get things sorted quickly and stay mobile.

So you look for a comprehensive policy which has a 24-hour claim line and provides a replacement car while yours is repaired. But what other benefits can women expect when buying car insurance?

Replacement car seats

If you have a family, it may be worth checking the comprehensive cover will replace child car seats and booster seats if they are stolen from the car or damaged in an accident or fire.

Replacement locks

Cover which includes the cost of lock replacement is another useful benefit, and it could save you money if you are unlucky enough to lose your keys.

Personal possessions cover

When comparing car insurance policies, remember to look at the level of personal possessions cover on offer. If you carry valuable belongings, like your mobile phone, around in your handbag, then choose a policy that provides a good level of personal possessions cover. This way, providing you've locked the vehicle, you're covered if your handbag is stolen from your car on the day you forget to take the bag with you.

Help with recovering uninsured losses

Before you a buy a policy, see whether the insurance company provides assistance in recovering your uninsured losses from a third party. If it does, you have the reassurance of knowing that in the event of an accident caused by a third party, you'll receive professional help in attempting to recover uninsured losses, like your policy excess or a loss of earnings. Some policies also provide assistance to help you pursue a personal injury claim after an accident.

Protect your no-claims discount

Insurance statistics show that women drive safely and make fewer and less costly claims than men. When you get an AA quote you can protect the no-claims bonus that you've earned by driving safely.

Car security

If you can avoid it, don't park your car on the street at night. Better still, use the garage if your home has one and lock it at night – the extra security could bring a discount on your premium.

Also, insurance companies can advise on which security devices can help reduce your car insurance premium. Tracking devices and immobilisers are likely to attract a discount.

What you need to know about life insurance, including types of insurance policies and deciding on how much coverage you need.

1. All policies fall into one of two camps.

There are term policies, or pure insurance coverage, and the many variants of whole life, which combine an investment product with pure term insurance and build cash value.

2. Insurance is sold, not bought.

Agents sell the vast majority of life policies written in the U.S. because the life insurance industry has a vested interest in pushing high-commission (and high-profit) whole-life policies.

3. Whole life is expensive.

Policies with an investment component cost many times more than term policies. As a result, many people who buy whole life often can't afford an adequate face value, leaving themselves underinsured.

4. Whole-life policies are built on assumptions.

The returns quoted by the agent are simply guesses - not reality. And some companies keep these guesses of future returns on the high side to attract more buyers.

5. Keep your investing and insurance strictly separate.

There are better places to invest - and without the high commissions of whole-life policies.

6. Buy enough term coverage to fill your needs.

Life insurance is no place to skimp, especially with generally low rates.

7. Match the term of the policy to your needs.

You want the policy to last as long as it takes for your dependents to leave the nest - or for your retirement income to kick in.

8. Buy when you're healthy.

Older people and those not in the best of health pay steeply higher rates for life insurance - so buy as early as you can, but don't buy until you have dependents.

9. Tell the truth.

There's no sense in shading the facts on your application to get a lower rate. Be assured that if a large claim is made, the insurance company will investigate before paying.

10. Use the Web to shop.

Buying life insurance has never been easier, thanks to the Internet. You can get tons of quotes - and avoid the pushy salespeople.

Insurance

Insurance can be a boring topic. It’s not one of those things you think about every day. Or even every year. After all, a person obsessed with insurance would probably be a pretty paranoid person.

My friend Lynn works for a major U.S. insurance company. I recently asked her for tips to help people save money on auto insurance. I expected maybe a few quick ideas, but she went above-and-beyond with the following detailed list. If you own a car, you should read these tips. For readability’s sake, I haven’t blockquoted this, but it’s all Lynn.

Note that every insurance company is different — not all of these ideas work everywhere. The first thing you can do to save money on auto insurance is to self-insure as much as you can afford. Do this in the following ways:

• High deductibles. Everyone preaches this, yes, but it’s usually the easiest way to cut costs. Usually. (If your car is over ten years old, the savings may be minimal.)
• Remove towing. Good maintenance and planning can save you money. Don’t run out of gas. Don’t lock your keys in your car. Make sure you have a spare and know how to change it. Sometimes your car will break down, but if your car is well-maintained, it won’t happen often. You pay $10 – $30 a year over the life of your policy and one tow costs $100. Note that in the event of an accident, towing is almost always covered under collision.
• Remove car rental. Small economy cars cost about $20 – $25 per day to rent. Car rental is $20 – $40 per year. Play the odds. If you rent a car on vacation, your insurance will cover you while driving that car. Don’t pay for the extra coverage. The only things it offers are:
  1. Zero deductibles. You go all year long with your deductibles, why change now? Also, if you pay for the car with a credit card, they may pay for any out of pocket in the even of an accident.
  2. Downtime coverage. Downtime means that while the rental car you wrecked is in the shop being repaired, it can’t be rented out to other customers and they can ding you for the daily fee. This may be an issue if they can show that all other cars were rented out and they lost money because of you — Hawaii is notorious for charging this. But, again, it’s a risk you might decide to self insure rather than pay $21 a day for the insurance.

Aside from self-insuring, there are other steps you can take to save on car insurance.

• Shop ahead. Before you buy your next car, check on insurance. Many people assume that SUVs are expensive and Neons are cheap. This is not necessarily true. Some companies will increase your liability based on the cost of damages your type of vehicle may inflict — big trucks cause big damage. However, they also rate the autos based on how likely they are to be damaged in an accident, how often they are stolen, and how badly driver/passengers are injured. That Neon (or Jetta or Honda) is going to be a lot more expensive than you think. Many companies will have websites that will give you lists of safe and lower priced cars. (Saturn is a low insurance car because it has dent-resistant doors.)
• Think twice about after-market gizmos. If your vehicle is totaled or stolen, the insurance company will determine a fair market or actual cash value. They will look at your vehicle as a “whole package.” Even if you paid for $3,000 in after market items (wheels, spoilers, stereos, exhaust, etc.) they may only add $1,000 in value to your vehicle. It’s not dollar for dollar.
• Have all of your insurance in one place. Often, the more types of policies you have, the more you save in discounts.
• Find out if your insurance company offers any low-mileage breaks that you qualify for.
• Can you take a safety-driving course? Some companies offer a discount for this.
• Do NOT pay monthly. Your carrier will charge anywhere from $3 to $5 per month for this type of billing. Pay every six months if possible. If you must pay monthly, do an auto pay — the charges are less because they only send a bill if the amount changes.
• This might not be a money saving tip, but insurance companies are state regulated. They must file their rates with the state and be able to justify any increases these are public record as are any types of complaints or fines. For example, if you’re in Oregon, you can check out your company and/or agent.

• Most companies now use aspects of your credit to determine your rate. It is illegal for them to do this mid-term — as long as your policy is continuous without any lapses, they can’t use external info to change your rate. They can only use claim and ticket info. However, all newly added vehicles can be affected by credit. If you have good credit, this may be to your advantage. You are allowed to request that they re-check your score once per year. However, whatever the score is, you’re stuck with it. If it comes back bad and it raises your rate: too bad. But, if you have a policy that was written when your credit wasn’t so great, request that they check it again after things look better.

Precautions you should take

Here are several precautions that should help you avoid being "taken" by a  scam:
1. Never sign papers you do not fully understand.
2. Get all "promises" in writing.
3. Beware of any loan assumption where you are not formally released fromliability for your mortgage debt and contracts of sale.
4. Check with an Attorney or your Mortgage Company before entering any deal with your home.
5. If you are selling the house yourself to avoid foreclosure, make sure you check to see if there are any complaints against the prospective buyer.

You can contact your state's AttorneyGeneral, the State Real Estate Commission, or the local District Attorney'sConsumer Fraud Unit for this type of information.

Do a Pre-foreclosure sale if you haveexhausted every other option.
This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating.

You may qualify if:
1) The "as is" appraised value is at least 70% of the amount  you owe and the sales price is 95% of the appraised value,
2) The loan is at least 2 months delinquent prior to the preforeclosure sale
3) you are able to sell your house within 3 to 5 months An additional benefit to this option is the assistance you will receive with the Seller-paid closing costs.

Deed-in-lieu of foreclosure 

As a last resort, you may be able to voluntarily "give back" your property to  the lender.
You will still lose the house, but it will help your chances of getting another  mortgage loan in the future.

You can qualify if:
1) you are in default and don't qualify for any of the other  options;
2) your attempts at selling the house before foreclosure were  unsuccessful;
3) you don't have another FHA mortgage in default.

Main points To Remember 

1. Make every effort to not lose your home and damage your credit history. 

2. Call or write your mortgage lender immediately. 

3. Stay in your home to make sure you qualify for assistance. 

4. Arrange an appointment with a housing counselor to explore your  options. Call HUD-approved housing counseling agency. 

5. Cooperate with the counselor or lender trying to help you. 

6. Explore every alternative to losing your home. 

7. Beware of fraud. 

8. Do not sign anything you do not understand. 

Remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation. 

9. Act now. Delaying can't help. If you do nothing, YOU WILL LOSE  YOUR HOME and your good credit rating.

Every business, large or small, should have insurance in case something goes wrong, but just how much coverage does your business need? Insurance is a must for any business, no matter the size, but the amount and type of insurance will vary depending on your company. A home business with no employees will need a different kind of coverage than a larger one with 100 employees, so make sure you know which is right for your business type. Your insurance company should be able to help you decide just what kind of coverage and how much, you will need, but it’s a good idea to have an understanding before you start shopping around. Educate yourself, then start looking for insurance providers.

Types of Business Insurance 

You will need to choose more than one type of insurance, according to your business needs. In some cases, your insurance company may package several kinds of coverage under one business package and this may be cheaper, so make sure you ask before buying each one separately.

Workers’ Compensation: 

This covers you for any injuries incurred by employees while working for you. It doesn’t matter if you are not the responsible party, the employee is still eligible for compensation in many cases. This type of insurance will cover things like lost wages for time away from work, loss of limbs, diseases that occurred as a result of the job and death, among other things. If you have an employee, you should consider this insurance.

Property: 

Property insurance is very important as it protects both the place of business and the equipment you need for your business. In some cases, it will also protect client property if it is in your possession at the time of theft or damage. You can often add specific types of insurance, such as flood or fire.

Casualty: 

This type of insurance helps to protect you in case of injury or damage to business property. It is often combined with property insurance and the two are quite similar.

Liability: 

In case of negligence by your company or by one of its employees, where someone else is harmed, liability insurance covers the mistake. In short, if the company is sued for negligence, this insurance coverage will protect it. There are several types of liability insurance; most of them are packaged under one name.

Commercial Auto: 

Since your regular car insurance doesn’t cover company vehicles, it’s very important that you insure your business vehicle correctly.

Health: 

Not all companies offer health insurance and while it is not mandatory in most places, you may wish to include it as a bonus for employees. A good health plan can keep employees around longer and helps when you want to hire someone who is debating more than one choice in jobs.

Life and Disability:

If one of the main people in the business were to die or become injured, this could have serious repercussions for the company. To help prevent this potential issue, life and disability insurance is useful.

Unemployment: 

This type of insurance isn’t always required, so check with your state’s laws before looking into this. It is meant to help out employees who have been laid off.

How Much Coverage is Required? 

The amount of coverage you opt for will depend on a few different factors. First, the size of your business is important. If you have just a handful of employees, you may not want to offer health insurance, for example. Anyone running their business on their own will not need any of the employee related insurance types.

When it comes to liability insurance, consider how much contact you have with clients. A store or theme park would need some heavy liability insurance against potential client injury, but a home based writing business wouldn’t require anything, as there is no direct contact with the customers. Finally, the cost is a very big deciding factor.

Like other types of insurance, business insurance allows you to adjust what you pay on a monthly or annual basis, according to how much you want to pay out in deductibles before the insurance kicks in.
This will depend on your budget mostly, but is also affected by your business needs. In some cases, you may not require flood insurance, for example, so you could eliminate this from the property insurance and reduce your premiums. Take a close look at which types of coverage you really need.

The best thing to do, once you have familiarized yourself with the various types of business insurance available, is talk to your insurance agent. She will be able to guide you toward the right business package for your company and help you decide which types of insurance you need. Price several different packages through different insurance companies to find the best deal. You can save quite a bit of money by shopping around.

Debt can be a useful tool if it's taken on wisely. If, however, your debt repayment begins to take too large a bite our of your income or you suffer a significant income loss, your debts and associated interest on that debt can quickly start you on a downward financial spiral from which recovery may be difficult, if not impossible.
Here are some suggestions for reducing your debt and reversing your financial fortunes. Taking these 10 steps can, if implemented with determination, can put you back in control of your money again.

Develop a comprehensive picture of all your debts, loans, credit cards and the details about each. 

How many are secured.? How many unsecured? What are the highest and lowest balances. Which are more flexible? You need a complete picture of your debt before you talk to your creditors about interest rates and payment schedules.

Put away the credit cards. Stop carrying them. 

Place them in a safe-deposit box or some place where they are hard to get at. You don't want to cut them up or cancel the account as this can have a negative impact on your credit. Keep them for emergencies, but be careful to define what is an actual emergency. If you do use a credit card, determine to pay off any emergency expenditure within 30 to 60 days. Make no more impulse purchases

Call your bank or any lenders with which you have loans. Discuss whether they might lower your interest rate. 

You might be surprised at their willingness to work with you. If you are in financial trouble, it may well be in their best interest to ease your payments rather than risk your defaulting on your loans. The bank may also have special programs to prevent mortgage default for which you may be eligible.

Calculate your debt-to-income ratio. 

Decide which debts, like mortgages and student loans, are with you for the long haul and which ones can be reduced dramatically with a determined effort. Decide how much you need to reduce non-essential debt like car notes, credit cards and store credit in order to return you to a positive cash flow position.

Begin keeping financial records. 

A simple check register type accounting program is easy to use and allows you to periodically pull up a statement of your financial position to help you evaluate your progress toward being free of indebtedness. At first the reports may look discouraging, but as you make progress, you will look forward to charting your success at reducing your debt.

Plan the steps you will take to get out of debt based on the information you have collected. 

Calculate payment schedules, time-lines and dates for clearing various elements of your debt picture. Plan a “Freedom Day” celebration for the date when you will pay down the last non-essential debt and you once again have a positive cash flow.

Check your W-4 form at work. 

If you've been consistently getting a large refund check from the IRS every year, you're taking too much out in withholding. Reducing your withholding can give you more cash with which to knock down your indebtedness. The savings in interest alone can more than make up for the lack of the big annual tax check. Right now knocking off those credit card payments is more important.

Stop paying minimum payments on credit cards. 

The larger your payments the faster your debt drops. Minimum payments often merely pay the interest without reducing the principle.

Stop going out to eat. 

Quit smoking. You can't afford it. Reduce your cable and cell phone packages to a more manageable level. Turn off the lights. Turn down the thermostat in winter and dress warmer. Turn up the thermostat in summer and put up a couple of ceiling fans. The more you reduce your cost of living, the faster you can pay down your debt.

Borrow from yourself. 

If you've got a 402K or retirement account, insurance policy or wealthy relative who will give you a loan at little or no interest, pay off your credit cards now. Secured loans against money you already have or from relatives is much easier to pay off than credit cards. Only file bankruptcy as a last resort. Working your way out of debt through discipline and planning looks good to lenders if you find you need to buy a car or replace the roof after you've restored your finances to a manageable condition.

The discipline required to dig yourself out of a debt hole can be exhausting. Once you’ve figured out your plan, think up some inexpensive rewards for yourself for meeting your time-lines and goals. If you've got something to look forward to, austerity isn't nearly as deadly dull.

The new health insurance reform bill might mean big changes for your business -- or not. Learn how it affects you here. If you are a small business owner you have probably wondered what the Affordable Care Act means for your business. Before you make any changes to your group health insurance learn what the new law means for you.

Size 

If you run a small business there is a good chance that the new law doesn’t affect you at all. If you have a staff of less than 50 employees you do not have to make any changes. You are exempt from the law.

The Basics 

For firms with over 50 employees, here are some basic rules you should know:

• If you offer health insurance to your employees, don’t worry. The new law won’t affect you much. 
• If you don’t offer health insurance you must pay a fee of $2,000 for every worker in your employ if even one of your employees receives a government subsidy to buy health care. 

• The first 30 employees are deducted from the above fee. 
• If you have employees making less than 400 percent of the federal poverty level who spend between 8 and 9.8 percent of their income on health insurance they have the right to purchase insurance on an exchange. You must provide these employees with a free choice voucher equal to what you would have paid for insurance otherwise. 
• If your firm employs more than 200 people and offers health insurance all employees must be enrolled in the plan, unless these employees have alternate forms of coverage. 
• Enrolled employees’ children may remain on their parents’ plans until their 26th birthdays. 
• All changes take affect on January 1, 2014. 
• Plans with aggregate coverage values of over $8,500 for an individual or $23,000 for a family plan are subject to an excise tax of 40 percent on all benefits in excess of these amounts. 
• Waiting periods likewise incur a fee. After 2014, you must pay a fee of $400 for every employee in the midst of a 30 to 60 day waiting period and $600 for every employee waiting between 60 and 90 days.

Evaluating Your Plan 

It’s not a foregone conclusion that you must offer insurance to your employees. First of all, as stated above, the law does not affect small business. Further, even if you have more than 50 employees, it might be more cost effective to not provide health insurance. There are two cases where this might be true:

• If all of your employees earn more than 400 percent of the federal poverty level, you will incur no penalty for not providing coverage. 
• If group insurance health care plans will cost you more than the $2,000 fine, you might be better off not paying for health insurance and taking the hit.

These will not be the final determiners as to whether or not you provide coverage. They do, however, act as a guide to whether it is economically advantageous for you to provide group health insurance for your employees. 

To Provide or Not to Provide

Whether or not you provide health care coverage for your employees is a complicated issue. 

The final decision is not a result of a pure cost analysis. Remember that having a competitive benefits package is part of attracting the top talent. Still, familiarizing yourself with the changes in the law will allow you to avoid paying fines that aren’t part of a cost-benefit analysis.

Not all business debts are bad.

Using financing to lease an office, tackling the rising costs of healthcare benefits, or even borrowing money to buy a company car -- all can be good debts with high return values. 

But there are bad debts, too -- debts that for entrepreneurs can limit or even prohibit cleaning up your student loan debt. Of those bad debts, few are worse for fledgling business owners than credit card debt. Simply stated, credit card debt can kill your small business from a personal finance point of view. 

Massive credit card debt can also choke your ability to deal with all of your other financial responsibilities, taking over your life and limiting your business' ability to grow and prosper.

Business Owners' Reliance on Plastic 

Credit cards are now the most common source of financing for America's small-business owners, according to the 2008 National Small Business Association survey. 

The survey also notes the following: 44% of small-business owners identified credit cards as a source of financing that their company had used in the previous 12 months -- more than any other source of financing, including business earnings. In 1993, only 16% of small-businesses owners identified credit cards as a source of funding they had used in the preceding 12 months. That's not to say you shouldn't use a credit card  it just means you should use one wisely. 

Sure, taking a valued client to a five-star restaurant or expanding your office size are worthwhile pursuits as a business owner -- if you can afford them with what you bring home in profits from your company. 

Here are some action steps to take to reduce credit card debt at your business: But often, using a credit card to finance these endeavors is a long-term loser, if only because most of the stuff you buy with credit cards depreciates rather than rises in value. Those high-top Reebok basketball sneakers may look great in the box, but once you slap them on your feet, their value resides only in your mind's eye, because few others want them anymore. 

Unlike other depreciable items, like a car that provides vital transportation for your company or a pair of eyeglasses that helps your read legal documents, most things you buy with a credit card don't offer much to your personal bottom line.

STEP 1: Understand credit card debt 

From your business' financial perspective, any money that is earmarked toward your credit card debt is money that you can't use to free your business from debt. 

That's the primary reason why credit card debt is invariably bad debt. It's bad from a financial management point of view, as well. Take student loan debt -- one of those examples of supposedly “good debt.”

 

Unfortunately, student loan debt and credit card debt are joined at the hip. 

For decades, credit card companies have targeted college students, offering them their first shiny new plastic card while downplaying the dark side of owning a credit card. 

Well, that plan worked. Millions of young Americans who received their first credit cards in college (and millions more who didn't, but got them right after they graduated and earned their first job) have developed the nasty habit of using their credit cards with alarming regularity. In the process, younger Americans have put a real dent in their financial health and made it even harder to address their student loan debt. 

It's the same idea with credit cards and small businesses. Once an entrepreneur gets that card in hand, it's tempting to use it for non-critical purchases. To alleviate that issue, start racking your daily use of your card, and figure out what is critical and what isn't. Then start using the card for only those “critical” purchases.

STEP 2: Use a debit card 

It's always a good idea to plan your spending on what you actually have in the bank. 

That's where a debit card can come in handy. Knowing you can only spend what you have you'll get a more realistic view of what is necessary to run your business. So ditch your credit card and start using a debit card. 

STEP 3: Pay in full each month 

Get in the habit of paying your small business credit card in full each month, no exceptions. 

That will keep you from falling behind on your credit card debt, which accumulates faster than the ivy grows at Wrigley Field. 

If you think you can't manage that, get an American Express Card. That card has to be paid off in full each month. 

STEP 4: Watch the interest rate 

Focus like a laser beam on your business card's interest rate. 

Credit card companies are crafty, and can up your rate for the slightest reason (like paying your card bill late or exceeding your card limit). 

Fight any uptick in rates, and always be looking for credit cards with lower rates and better rewards deals. Creditcards.com, for example, has a great database of card options for small-business owners. 

Managing your business credit cards is one part diligence and one part creativity. Apply both liberally, and watch your credit card debt melt away.

There are many forms of business insurance out there, and it can be difficult to determine which ones your small business needs, let alone what you can afford. The reality is that insurance needs vary from business to business.
This guide will help you decide which types of business insurance are best for your business and are worth the extra expense to reduce your risk of devastating losses due to liability.

General Liability Insurance 

General liability is a blanket insurance that covers legal disputes due to accidents, injuries and claims of negligence. These types of policies protect the insured business against expenses related to claims concerning bodily injury and property damage caused by your business operations. This is an important and pervasive form of insurance that nearly all small business owners and contractors should have.

Property Insurance

 Property insurance protects your valuable business property, such as real estate, equipment, inventory and machinery. It covers the risk of damage and loss due to fire, theft and certain forms of weather damage. 100% coverage is ideal, but if that’s not financially feasible, determine what would ruin your business in the case that it’s destroyed, stolen or damaged and get coverage up to at least that amount. If the region in which your business operates has a much higher risk of natural disasters that are not normally covered under a standard property insurance policy, such as earthquakes or floods, you may consider purchasing specific insurance to cover the potential damages from such an incident (e.g., Flood Insurance).

Bundle It with a BOP 

Some insurance providers offer bundles of Liability Insurance and Property Insurance, called Business Owners Policies (or BOP) at a discounted rate. For business owners with a critical interest in their property, this is an easy way to reduce the price of both forms of protection.

Product Liability Insurance 

Businesses that manufacture, distribute or sell products may be liable for the safety of users of those products. Extremely expensive claims can sometimes result as a result of production or design flaws, as well as improper warnings and instructions.

Product liability insurance

protects the insured from the costs that may be incurred when found liable when the products cause injury or bodily harm. The amount of product liability insurance may vary depending on the potential danger associated with your products; for example a clothing store would have significantly less risk than an appliance store. Professional Liability Insurance Professional Liability Insurance (also called Errors and Omissions Insurance) is an important insurance option for service providers. It protects doctors, lawyers, consultants and other professionals who provide advice from the heavy cost of defense against and liability for negligence claims. Some professions are required to carry this insurance - such as physicians who are required to purchase malpractice insurance in certain states.

Home-Based Business Insurance 

Home-based business owners commonly assume that homeowner’s insurance will cover some degree of their business liability. Depending on the circumstance, some homeowner’s policies offer riders in addition to regular home insurance, but these only go so far. A home-based business owner may consider purchasing additional policies to cover other general and professional liability risks, as well as the potential for loss of income if their home-based office is damaged.

Workers’ Compensation Insurance 

Workers’ compensation insurance is legally required by almost all states (with the exception of Texas) for any business with employees. It protects your company from financial liability for the injuries incurred by employees on the job, as well as the loss of income due to disability. It does not apply to independent contractors.

Life Insurance 

It’s important that a business owner strongly consider purchasing life insurance in consideration of their loved ones and their company in the case that they die unexpectedly. Different forms of life insurance have the capacity to protect your family from your business loan obligations, and cover the costs of lost skills or connections made by the previous owner, as well as finding their replacement.

Business Interruption 

Insurance Also called Business Income Insurance, this insurance covers the loss of revenue while your facilities are closed or being restructured after a disaster. It is supplemental to Property Insurance, which covers the cost of damaged property, but not the loss of income associated with a fire or break-in. This may be useful for retail stores or brick and mortar businesses that depend on operating in one physical location to stay afloat.
If you have any further questions or concerns, don't hesitate to consult with an insurance agent.

Most individuals have some type of insurance. When you first receive the policy document, nearly all clients glance at the fancy words and file it away. However, if you are spending a large sum of money each year on insurance it is beneficial to learn about those tricky terms and exactly what it says.

Fundamentals of an Insurance Contract 

The first step to acquiring insurance is filling out the proposal form and sending it to the company. 

This is considered your offer to the insurance organization. If they agree you are insurance-worthy, this is known as an acceptance. In many instances the insurance agent will accept your offer with a few changes to the proposal. To enter into any agreement you must be legally competent and not a minor. However, insurers can be considered competent if they are licensed under specific regulations. The next step is consideration, which details the money paid if you must file a claim. Otherwise known as a premium, consideration designates that each legal entity in the contract must provide some amount of value. 

Indemnity Contracts 

With the exception of life insurance, the majority of insurance agreements are known as indemnity contracts. These apply to specific types of insurance where the loss incurred is quantifiable by monetary gain. Therefore, the principle of indemnity outlines that insurance organizations are not required to pay more than the actual loss. The idea behind an insurance contract is that you are left in the same financial position prior to the claim. Additional factors of an insurance contract include excess and under-insurance. Excess refers to the insurance company paying you in excess of a specific amount of damage. For instance, if you have a car accident with an amount totaling $6,000 and the applicable excess is $5,000, the insurance company will pay you $6,000. However, if the damage is only $3,000 then the company will not pay a penny. Under-insurance designates insurance that is less than the total value of item to save on monthly premiums. If there is a partial loss then you must pay any costs over that amount. For instance, if you insure your residence for $90,000 while the total value is $100,000, during a partial loss the insurance company will only pay $90,000 and must cover the remainder. This is not a recommended practice. 

Principle of Subrogation 

The Principle of Subrogation permits the insurance company to sue a third-party entity that has instigated a loss to the insured client. During the suit the goal of the insurer is to retain some or all of the money that they have paid to the client from the loss. 

Insurable Interest 

As a customer it is your legal right to insure any type of property that could result in financial loss or induce a liability. This is known as insurable interest. This prevents future owners of vehicles, residences or properties from insuring the entity because they do not own it. Also, insurable interest helps married couples complete life insurance policies on their spouses and can exist in business arrangements between a creditor and debtor or between employers and employees. 

Doctrine of Good Faith 

The doctrine of good faith or uberrima fidei specifically outlines the presence of a mutual faith between the insurance company and the insurance client. For instance, when applying for life insurance, it is your duty of good faith to divulge previous illnesses. Similarly, the insurance company cannot hide information about the coverage. 

Doctrine of Adhesion

 The doctrine of adhesion recognizes that you are required to accept all the terms and conditions of the insurance contract without negotiating. Since the client does not have an opportunity to change the conditions of the contract, any uncertainties favor the insurance company. This concept was created to protect the consumer. During the insurance purchasing process, most clients rely on their advisor for all aspects from selecting the policy to completing the forms. Most people steer clear of the legal jargon found in their lengthy and boring contracts. However, it is always important to be familiar with this terminology as well as the conditions of your contract since you have to live with it.

Mybe You are facing problems understading many terms that have relationship with business that's why today i'm presenting To you a Glossary of business Tips to let know every single word about Business.

Actual Cash Value: An amount equal to the replacement value of damaged property minus depreciation.

Adjustable-Rate Mortgage (ARM): Also known as a variable-rate loan, an ARM
usually offers a lower initial rate than a fixed-rate loan. The interest rate can change at a specified time, known as an adjustment period, based on a published index that tracks changes in the current finance market. Indexes used for ARMs include the LIBOR index and the Treasury index. ARMs also have caps or a maximum and minimum that the interest rate can change at each adjustment period.

Adjustment Period: The time between interest rate adjustments for an ARM. There is usually an initial adjustment period, beginning from the start date of the loan and varying from 1 to 10 years. After the first adjustment period, adjustment periods are usually 12 months, which means that the interest rate can change every year.

Amortization: Paying off a loan over the period of time and at the interest rate specified in a loan document. The amortization of a loan includes the payment of interest and a part of the amount borrowed in each mortgage payment.

Amortization Schedule: Provided by mortgage lenders, the schedule shows how over the term of your mortgage the principal portion of the mortgage payment increases and the interest portion of the mortgage payment decreases.

Annual Percentage Rate (APR): How much a loan costs annually. The APR includes
the interest rate, points, broker fees and certain other credit charges a borrower is required to pay.

Application Fee: The fee that a mortgage lender charges to apply for a mortgage to cover processing costs.

Appraisal: A professional analysis used to estimate the value of the property. This includes examples of sales of similar properties.

Appraiser: A professional who conducts an analysis of the property, including examples of sales of similar properties in order to develop an estimate of the value of the property
The analysis is called an "appraisal."

Appreciation: An increase in the market value of a home due to changing market conditions and/or home improvements.

Arbitration: A process where disputes are settled by referring them to a fair and neutral third party (arbitrator). The disputing parties agree in advance to agree with the decision of the arbitrator. There is a hearing where both parties have an opportunity to be heard, after which the arbitrator makes a decision.

Asbestos: A toxic material that was once used in housing insulation and fireproofing. Because some forms of asbestos have been linked to certain lung diseases, it is no longer used in new homes. However, some older homes may still have asbestos in these materials.

Assets: Everything of value an individual owns.

Assumption: A homebuyer's agreement to take on the primary responsibility for paying an existing mortgage from a home seller.

Balloon Mortgage: A mortgage with monthly payments based on a 30-year amortization schedule, with the unpaid balance due in a lump sum payment at the end of a specific period of time (usually 5 or 7 years). The mortgage contains an option to "reset" the interest rate to the current market rate and to extend the due date if certain conditions are met.

Bankruptcy: Legally declared unable to pay your debts. Bankruptcy can severely impact your credit and your ability to borrow money.

Capacity: Your ability to make your mortgage payments on time. This depends on your income and income stability (job history and security), your assets and savings, and the amount of your income each month that is left over after you've paid for your housing costs, debts and other obligations.

Closing (Closing Date): The completion of the real estate transaction between buyer and
seller. The buyer signs the mortgage documents and the closing costs are paid. Also known as the settlement date.

Closing Agent: A person who coordinates closing-related activities, such as recording
the closing documents and disbursing funds.

Closing Costs: The costs to complete the real estate transaction. These costs are in addition to the price of the home and are paid at closing. They include points, taxes, title insurance, financing costs, items that must be prepaid or escrowed and other costs. Ask your lender for a complete list of closing cost items.

Collateral: Property which is used as security for a debt. In the case of a mortgage, the collateral would be the house and property.

Commitment Letter: A letter from your lender stating the amount of the mortgage, the number of years to repay the mortgage (the term), the interest rate, the loan origination fee, the annual percentage rate and the monthly charges.

Concession: Something given up or agreed to in negotiating the sale of the house. For example, the sellers may agree to help pay for closing costs.

Condominium: A unit in a multiunit building. The owner of a condominium unit owns the unit itself and has the right, along with other owners, to use the common areas but does not own the common elements such as the exterior walls, floors and ceilings or the structural systems outside of the unit; these are owned by the condominium association.
There are usually condominium association fees for building maintenance, property upkeep, taxes and insurance on the common areas and reserves for improvements.

1. Don’t give your account number and bank routing information to anyone you 
   don’t know.

Give out your account information for transactions only if you are familiar with the company you are dealing with. And if you have not done business with a company before, give out account information only if you have initiated the transaction. Criminals may ask you for your bank account number and then withdraw money from your account by creating a demand draft (sometimes called a "remotely created check") or making an electronic transfer. They may also ask for your debit or credit card number and other personal information. Don’t fall for these scams and don’t let yourself be pressured into "free trial offers." To be removed from telemarketing lists, sign up for the National Do Not Call Registry online (https://www.donotcall.gov) or by calling, toll-free, 1-888-382-1222.

2. Review your monthly statement.

Make sure all the checks, debits, automatic payments, and other withdrawals are ones you authorized. If you see a transaction you did not authorize, notify your bank immediately. If your bank has online banking, you don’t have to wait until your bank statement comes--you can check your transactions at any time.

3. Notify your bank about any problems as soon as possible.

The sooner you alert your bank to a problem, the sooner they can get it resolved. In some cases, your bank may require you to notify them in writing. Keep copies of any documents you give the bank until the problem is resolved. If you think the problem is a result of fraud, you should also contact your state attorney general.

4. If you don’t have enough money in your account, don’t write the check or authorize the debit.

Checks are being processed more quickly these days, which means the money may be debited from your account sooner. Also, many stores and utility, insurance, and credit card companies will convert your check to an electronic payment, which also means the money will be debited from your account sooner. If you don’t have enough money in your account when you write a check or authorize a debit, you could find yourself paying a fee. For more information, see the Federal Reserve Board’s publications "What You Should Know about Your Checks" and "Protecting Yourself from Overdraft and Bounced-Check Fees."

5. Know your rights under consumer protection laws.

If you have a problem with an electronic debit or electronic fund transfer, you have certain rights under the federal Electronic Fund Transfer Act (EFTA), as explained in the Board’s "Consumer Handbook to Credit Protection Laws." You also have rights under the EFTA if you have a problem with a check that has been converted, as described in the Board brochure "When Is Your Check Not a Check?" The Federal Trade Commission’s publication "Automatic Debit Scams (175 KB PDF)" explains your rights and what to do if you have a problem with a demand draft or remotely created check.

Strategy 4: Manage your debtors

A sale isn’t a sale until the money is in the bank. A well managed debtors system is critical for a successful business. Ensure your debtors system has preventative measures as well as a step by step plan to recover overdue accounts.

Some examples of how to improve the debtors system:

• Credit checks for all new customers.
• Receiving deposits on signing of contract.
• Discounts offered for early payment.
• Make it as easy to pay as possible. Offer to take credit card details to move the risk to the credit card company.
• Send out invoices immediately.
• Bank regularly.
• Regularly review aged receivable report and consistently follow a step by step plan to follow up overdue accounts.
• If the customer cannot pay the whole amount, be flexible and arrange a payment plan. Take the first payment straight away while on the phone by asking them to pay by credit card.

Strategy 5: Manage the stock

Controlling how much stock is on hand can be both an art and a science. Not enough stock will lead to lost revenue. 

Too much stock can impact on cash flow. I have seen how both can have a major impact on profit and cash flow. For example, a retailer increased the amount of stock on hand and sales increased dramatically when customers saw the availability of products. 

This is more the exception than the norm. Generally, businesses have too much stock that is tying up valuable resources. 

One possible reason is that the owner doesn’t want to realise a loss on the sale of the stock. However, they have not considered the hidden costs by holding onto old stock such as missed opportunities due to poor cash flow and shelf space that could be used by a fast moving product. 

Knowing what the right stock level for your business may require some trial and error. 

However, with a good accounting program you will be able to make an educated guess about how much stock to carry.

Examples of how to improve stock control:

• Monitor stock regularly. Use ratios such as inventory turnover and days inventory to compare to previous periods and industry standards.

• Clear old and outdated stock by packaging together or discounting.
• Don’t buy too much stock even if a discount is offered if it will take an extended time to sell.
• Conversely, for fast moving stock, buy in bulk to receive a discount.
• Focus on a ‘just in time’ ordering system to save build up of stock.
• Set minimum and maximum levels of stock and stay within these levels.

Strategy 1: Get your pricing right

Determining the price to charge for a product is frustrating for most businesses. However, getting your pricing strategy right is critical to your success in business because it affects many areas of your business.

 The pricing strategy impacts the type of customers attracted to your business, the quantity of product sold, how the product is perceived, product promotion and your profit.

There is no single way of determining the best pricing strategy for your business. The following is a list of factors that you may consider when developing your pricing strategy:

• The type of customers you are targeting.
• The positioning of your products in the market.
• The relationship between the price and quantity sold.
• How you will promote your products.
• How you will distribute your products.
• The costs associated with your products including the fixed and variable costs.
• Your competitors and their pricing decisions.
• The objective of your pricing strategy.
• The method of calculating price.

Strategy 2: Reduce your cost of goods sold

This strategy complements the first strategy ‘get your pricing right’. The gross profit margin is the difference between the price you sell your product for and the price you paid for it.

Increasing the margin between the two will increase your profit and your cash flow. There are two ways to increase your gross profit margin: increase your price (as discussed in strategy 1) and/or decrease the cost of goods sold. The cost of goods sold is the cost of the product to you that was sold to your customers.

Examples of ways to reduce your costs of goods sold:

•  Negotiate with your suppliers for a better price if you buy in bulk. Only use this strategy if you can turn over the stock quickly.
•  Negotiate with your suppliers for a discount if you pay early if there isn’t a discount already in place.
• Shop around with other suppliers to ensure you are getting the best value (this is not necessarily the best price).
•  Purchase new equipment or implement new processes to produce the goods more efficiently.

Strategy 3: Control your expenses

Regularly review your expenses by comparing them against your budget and prior periods. If an expense is greater than budgeted or than the previous year then investigate the reason for the increase.

Examples of how to control your expenses:

• Compare expenses against your budget.
• Compare expenses against the previous year or period.
• Compare expenses as a percentage of sales.
• Train your employees to be thinking about how expenses can be reduced. Reward them forideas that reduce expenses. Rewards don’t have to always be monetary. Be creative with the reward system.
• Review the transaction listing to understand each expense.
• Prepare regular financial reports.
• Require quotes from various suppliers.
• Rearrange annual payments into small payments. This generally costs more and should only be used when needed. Revert back to annual payments once you are able.
• Implement performance measures to monitor your expenses. For example, measure the costs of vehicles on a cents per kilometre basis.

End #Successful Business#business-tipsndtricks.blogspot.com.

Both my husband and I are recent college grads who are in over our heads in debt. My credit card is the worst and I was curious as to whether I need to cancel it or not.

We never use it, so is it really necessary to cancel it? What exactly happens when you close an account?

Is it a strike on your credit history to cancel a credit card? Is the only benefit of canceling a card the certainty of not using it?

Cynthia’s questions really go a bit deeper than just whether to close a credit card account. Underlying is an understanding that she needs to manage her credit. And we all should take an interest in that subject. Because how you manage your credit will determine whether you can borrow money in the future and how much you’ll pay for the privilege. 

Before we look at her questions, let’s take a moment to look at credit management. Once we do, the answers to Cynthia’s questions will become clearer. There are two aspects of credit management that are important for individuals. The amount of credit you have available and your history of payments. The amount of credit available to you will be a concern for potential lenders. They look at a credit file to see how much you could charge or borrow without needing anyone’s approval. They’ll look at the total and decide whether they want to grant a loan that would add to that amount.

Every credit card in your wallet has a credit limit. If you total them all and add any other lines of credit you’ll find out how much credit you have available to you. Whether you intend to use it isn’t important. The fact that you could is enough for potential lenders. Too much credit available can raise the rate you pay to borrow.
You can also have too little credit. Closing your last credit card could leave you with zero credit available. That, too, would be a warning sign to lenders. Generally only the young or people in financial trouble have no credit available to them.

Your payment history is the other big factor in your credit rating. Obviously it’s best to have a record of paying your bills completely and on time. Lenders understand that anyone can have one or two late payments in their life, but if it happens often you’ll find yourself paying higher interest rates.
Now let’s get into Cynthia’s questions. First, is it necessary to cancel the card? The simple answer is no, it’s not really necessary. But it still might be a good idea. Especially if she doesn’t intend to use the card there’s no advantage to keeping it open.

Many companies will allow you to close an account by phone. Unless you need evidence that you closed the account, that should be sufficient. However, if you need to be certain, you’ll want to notify the card issuer by letter and keep a copy for your files.

OK, so what happens when you close an account. Basically the credit card issuer reduces your available credit to zero. That reduces the amount of credit available to you. If you have a lot of credit cards that could help your credit score. But a canceled account will still show up on your credit report. In fact, it will appear for seven years after the last payment on the account.

Canceling an account doesn’t have any affect on any balances owed or payments that are due.
Could Cynthia be penalized for closing her account? Canceling a credit card is not a “strike” against the card holder. It’s expected that you’ll open and close accounts as your needs change. One warning though: You can close too many accounts. People who are continually transferring balances and closing accounts demonstrate a pattern that concerns potential lenders.

Another caution is to make sure that the account is closed properly. It’s important to have the card issuer report that the account was canceled “at the customer’s request”. That tells anyone checking your credit report that you made the decision to close the account.

If the card issuer initiates the account closing that would probably mean that the credit card company felt that you were a bad credit risk. Naturally, that doesn’t help your credit rating.
Finally, Cynthia hints at one advantage to closing the account for those who have trouble controlling their purchases. You can’t put charges on a canceled card. It’s also safer because thieves can’t use it either.
Should Cynthia close out the account? In most cases it’s not that important, but it is probably still worth the time it takes to close it.

Introduction To Credit Restoration

Rebuilding Damaged Credit

Bad credit can happen to good people. Don't despair.

As you do so, your credit score will improve, resulting in better credit offers and a substantial savings in money.

With patience and timely repayments, you'll likely be able to build a new credit history that creditors will look upon favorably when making decisions about your ability to handle even more credit.

The key to having great credit is to understand the factors that can hurt your Credit Sscore or Rating.

Bankruptcies, tax liens, judgments, student loans, credit counseling, numerous inquiries, repossessions, collections, late payments and chargeoffs bring your score down and hinder your chances of obtaining a new loan.

How It Works

Pull 3 separate credit reports from the 3 credit reporting agencies, Experian, Transunion, and Equifax, and dispute any and all negative items.

The entire dispute process is done online and does not generate any inquiries or put any negative marks on your credit report.

What to Expect

Results can be expected within 30 - 45 days and are mailed directly to the client from the 3 credit reporting agencies.

Once these results are received, you can dispute any remaining items a second time.

Usually the results we are reached within that time frame.

Why Your Credit Score is So Important 

The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future.

Credit scores can range between a low score of 350 and a high score of 850.

The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate.

This can save literally thousands of dollars in financing fees over the life of the loan.

Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates.

On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600.

Mortgage lenders consider a score of 700 or above to be very good.

The Five Factors of Credit Scoring

1. Payment History– 35% Impact
2. Outstanding Credit Balances– 30% Impact
3. Credit History– 15% Impact
4. Type of Credit– 10% Impact
5. Inquiries– 10% Impact

Credit reports contain errors on a regular basis.  So, before applying for new credit or beginning your credit repair journey make sure that all of the information contained in your credit report is yours.

Reasons for such mixes include:  

1. Common name.  For example, a father and son who live at the same address, or who don’t add “Sr.” or “Jr.” when completing credit applications. 
2. Loan officers make clerical mistakes.  For example, spelling names wrong, transposing social security numbers when pulling the credit report, or even entering incorrect addresses.
3. When reporting data to the Credit Reporting Agency (CRA) personal information is entered incorrectly.  For example, an address at which you never lived.
4. If married, the social security number of the incorrect spouse is entered.  This is not good because each credit report should be individual.  What can happen is a merged credit report resulting in incorrect scores. 
5. Co-signing for children or other people.  Sometimes the lender will match the social security number with the wrong person.
6. Individuals with the same name mixed at the CRA's side.  For example, John L Smith and John M Smith all is the same except the middle initial. This is a very common mistake.

It is not easy finding these mistakes, but if you know you see information that does not belong to you, then call the CRA specifically to ask, “Is my file mixed?”

Mortgage lenders pull three bureau credit reports through different systems. Sometimes the system has the capability to pull in mixed reports or split files, which will show the conflicting information. This is something consumer reports don't always show.

1. Experian: Experian is the best for this because the mix can show two ways.
   1. It will show additional names and addresses and possibly incorrect accounts that are not obvious.  If the consumer gets the chance to review the credit report and knows something is not right, then the consumer will have to write directly to Experian and provide a copy of a driver’s license (with DL number marked out) and request to un-mix the file. 
   2. Sometimes it is obvious showing additional social security number of the other individual mixed on the file. Fix the same way by writing to the CRA with request to un-mix the file. 

2. Equifax: On the mortgage side when the files are split, the files are received as Equifax 1 and Equifax 2.  What is different is that on the credit report are two credit scores, one for each file. But it is all merged on the mortgage reports.  These are very complicated.
   1. It may very well be all of the consumer’s information that just got split because two names were used.  For example, a married name versus maiden name.  If that is the case, Equifax advises to add both scores and divide by two for the end score to be used. But also follow up informing Equifax that the file needs to be re-merged. 
   2. Other splits may be by common name, for example father and son, where there are two people making up the files. These need to be unmixed. 
   3. Consumers using and pulling their personal credit report on a daily basis from monitoring services can cause problems, compiling soft hits to the credit report.  If the file gets too large, Equifax cannot handle it and will result in a split file. Some accounts will show on one credit report while other accounts show on another credit report. 

3. TransUnion:  Like Equifax, TransUnion doesn't show additional social security numbers, only additional names, addresses, and possible accounts that don't belong. The consumer must contact TransUnion with a copy of their driver’s license in order to update the file. 

So, depending on the vender and software used, besides the type of creditor, different things can result when trying to pull credit reports. Sometimes it just looks like you have no credit history, and other times it mixes other people’s credit reports right in with yours.  If creditors don't know to look for the warning signs, they will flat out decline credit because they think it was all your credit that was bad.

The CRA’s don't go first and foremost by the social security number.  Listed below is how the repositories assign importance to this information (from most important to least important).  Notice the SSN is not the most important (Information provided by California Association of Mortgage Brokers, Orange County Chapter, “Shedding Light on Credit Scoring” by the NAMB Credit Scoring Committee Chair, March 12, 2002):

Equifax	TransUnion	Experian
Last name First initial Address SSN	Zip Code Address Last name First name SSN AKA/Alias name	Last name First name SSN Address

With this in mind, understand that it is quite easy for the creditors to mix consumer files.  Even if you catch this and fix it completely, it can happen again.

You must take precautions to just use one deviation of spelling your name, especially if you have a father and son with similar names living at the same address.

Finally, be sure to obtain a copy of your credit report at least once a year or 60 days prior to applying for credit so you can catch and fix mistakes in time.