Monday, April 27, 2009

10 ways to lower your auto-insurance

Post by Mei Ling Lin

In the tough economy, people want to save money in any way that they can. One of expensive expense in the life, is the insurance include the life insurance, health insurance, home insurance and auto insurance. In those insurances, the home and auto-insurance is one that people need to pay all of the fees by themselves, unlike the life or health insurance that employers may help to pay part of the fees. Here have ten ways to help you to lower your auto-insurance.
1. Raise your deductibles, the more deductibles you have, the less premiums you going to pay. However, when you raise the deductible, then you need to be driver safer.
2. Compare quotes from different insurers, because each insurance company may have different rate of the auto-insurance customers.
3. Drive fewer miles, the less you drive, then less risk of collision and the less you file vehicle insurance claim.
4. Maintain good credit, if your credit score is lower, then you may view as the high-risk customers and need to pay the high-rate insurance
5. Stay a safe driver, mean to lower the risks of collision, then you need to avoid lane hogging, be aware of the conditions, don’t tailgate, prepare you journey, and stay clam.
6. Keep a clean driving record
7. Combine your auto and home insurance, you may get more discount on your rate if you use the same insurance company to insure your home and car.
8. Pick the right coverages, the more coverage you pick, the more premiums that you going to pay, but if you get the less coverage, and then you are taking the risk to pay more money out of your package if you have a claim or at-fault in a collision.
9. Choose your car carefully, because the model of car that you drive would affect you premiums
10. Take advantage of discounts, because discount can help you to lower your premiums

source #1 #2 #3

Bear market ups need for life insurance

copy and post by Mei Ling Lin

With the unprecedented generational bear market that has wreaked havoc on investors' portfolios, now is a good time to review your life insurance and determine if you have enough coverage.
Remember that you depend on the combination of your investment assets plus your life insurance to make sure your dependents are financially secure should you die prematurely.
How much life insurance do you need? Ask 10 professionals and you'll likely get 10 different answers. If you have people who are dependent on your income for their support, use the following three-step process as a "quick check" of your life insurance needs:

Step 1: If you are the sole income provider, multiply your annual income by 0.80. This results in reducing your income by 20 percent. The reason you do this is because there is one less spender in the household (you!). Note that if both you and your spouse work combine both incomes and multiply by 0.80.
Step 2: Divide your answer in Step 1 by the rate of return you would reasonably expect to earn on the life insurance proceeds once they are invested. Your answer here indicates how much money you will need in order to continue the necessary income stream to your surviving family.

Step 3: Subtract any savings or investments you already have from your answer in Step 2. This is the `ballpark' amount of life insurance you should own. Let's look at an example. Edward and Jean Anderson have two children. Edward earns $100,000 a year and Jean stays home to raise the children. The parents assume that they could earn 6 percent on investments; they have $45,000 in personal investments and $75,000 in their retirement plans.
First, multiply Edward's income times the "one less spender factor" to calculate the adjusted income need ($100,000 x 0.08 = $80,000).
Second, now divide the adjusted income need by your expected rate of return on investments ($80,000 x 0.6 = $1,333,333). This amount of money invested at 6 percent will provide the needed $80,000 per year for Jean and the children.

Finally, subtract the total of all current investments from the total capital needed ($1,333,333 - $120,000 = $1,213,333). If Jean was employed and planned to continue working after Edward's death, you would also subtract her income from your answer in step one.
You would also need to repeat this exercise for Jean to determine how much life insurance is needed on her life. For a non-working spouse, estimate the costs to replace that spouse's services such as nanny and housekeeper and multiply those costs times the number of years the services will be needed.

The answer you get by using this three-step process should only be used as a rule of thumb. Once you have the number, you should personalize the solution to your particular situation.
For example, you may want to increase the amount of insurance to help cover the costs of funding college expenses for your children. If your goal is to provide a lifetime income for your dependents, additional insurance will be needed to offset the ravages of inflation.

Saturday, April 25, 2009

House passes property insurance bill

Posted by YiLin Zhu
From The Associated Press

TALLAHASSEE, Fla. -- The Florida House has passed a bill that would increase insurance rates for more than 1 million property insurance policyholders.

The bill (HB 1495) limits the annual rate increases to an average of 10 percent for customers of the state-backed Citizens Property Insurance Corp.

The measure passed Friday on a 75-33 vote.

Without the legislation, Citizens' policyholders could see premiums increase more than 40 percent on Jan. 1. Instead, they'll pay the increase in smaller increments.

The Senate started debate on its version Friday, but didn't vote.

The goal of both bills is to reduce state's $20 billion exposure on the Florida Hurricane Catastrophe Fund while shoring up Citizens with actuarially sound policies.

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