Your need for life insurance really depends on your current circumstances. If for instance you are the only provider for a family of three then you should definitely consider a policy, if however you are single, without any dependants then your payout wouldn’t directly benefit anyone.

If you decide that you require a policy then the next step is to decide upon your level of cover. Firstly you should work out how much your family will require upon your death. It’s important to factor in any outstanding debts into this amount, and ensure that the amount left will allow your family to maintain their current standard of living.

The length of your policy should last up until your children complete full time education or your partner reaches the state pension age. Quite simply, the longer the term and the larger the payout the higher the cost of the policy will be.

Your current health and lifestyle also play a major role in determining how much your policy will cost, with smokers, those in ill health and/or with risky occupations paying considerably more.

Policy prices vary a lot, changing day to day; therefore it’s a good idea to find a good broker to source your insurance policy. It’s important to note that prices can also differ a great deal depending on the broker, with their commercial relationship and commission rate playing a large role.

Unlike a lot of financial products with term assurance cheaper really is better! Once you have decided upon the details of your life insurance policy going for the cheapest one available is generally a good idea. It’s possible to compare cheap life insurance quotes online.

Popularity: 27% [?]

One of the biggest stumbling blocks for a new business owner is acquiring financing for the early costs of establishing the business. Unless you have an established banking relationship or collateral to put down, few banks or lenders are willing to make a loan without a personal guarantee of some sort. It makes sense for a homeowner to turn to their largest asset as collateral. A home equity loan or line of credit is often the easiest way for a new business owner to acquire a sum of money that can be used to fund their business startup.

The Case against Home Equity Business Financing

Financial experts almost unanimously warn against using your home as financing for a business. It’s a risky move. If your business fails, you could be putting your home in danger. Since most entrepreneurs begin a business with the intent of supporting their families, does it really make sense to put your family’s biggest asset at risk?

On the other hand, your home is the biggest asset. Using it as collateral can be a very cost-effective way of financing a new beginning. Home equity loans often carry the lowest rates of interest of any other type of loan. Add to that the fact that many banks will require a personal guarantee for a business loan to a startup, and the effect is about the same. You’ll still be personally liable for paying the money back if your business fails.

The trick is to borrow smart. Before you decide to put your house on line to finance your business, do a bit of soul-searching and a lot of research. Here are some factors to consider before you decide to put your home up as collateral for a business loan.

1. Are you counting on the success of the business to pay back the loan?
Keep in mind that most business concerns do not turn a profit within the first year. Can you make payments on a home equity loan for a year without tapping business profits? If you can, then a home equity loan may be a good option for you. Even if the business fails, as long as you know you can make the payments on your loan, your home is safe.

2. Is a home equity line of credit an option?
A home equity loan makes sense if you need a chunk of money to purchase equipment and pay starting expenses. A home equity line of credit has a number of advantages over a closed-end loan under some conditions. While you may be paying slightly higher interest rates on a line of credit, one of the biggest advantages is the revolving feature. In other words, when you pay back money on a line of credit, it becomes available for you to borrow against again. A second advantage is that you’ll only be paying interest on what you actually owe. A home equity line of credit for business purposes is a good way to have cash in reserves for emergencies without having to pay interest on it until you use it.

3. Do you have an exit plan?
One of the biggest failings for most business owners is that they fail to plan for failure as well as success. We all hope that our businesses will be wildly successful, and it’s easy to make big plans based on that dream. But there’s a real danger in not planning what you’ll do in case of failure. At what point will you decide that enough is enough, and what steps will you take to get out with the least possible damage? Deciding when to call it quits can save you from disaster if the business doesn’t fly as high as you hoped.

4. Should you tell your lender that your loan is for business?
While home equity loans can generally be used for any purpose, including funding a new business, some loan experts recommend against volunteering the information to your lender. They may feel obligated to direct you to the commercial lending arm of their institution if that’s bank policy. If, on the other hand, you are asked directly, it’s best to be honest. Lying about your purpose for the loan could be construed as misrepresentation and open you to charges of fraud. Misrepresenting yourself could also negate the loan and call it due immediately.

Popularity: 84% [?]

You’ve certainly heard the ads on television that tell you to ‘tap the equity in your home’ when you need fast cash for home renovations, emergencies and even family vacations. There are two main types of home equity loans, a standard home equity loan, and a home equity line of credit. Before you decide to tap the equity in your home, you should understand what home equity debt is and how you can use it to finance the important things in your life.

Borrowing against your home equity

Most homes are purchased through mortgages, a loan taken from a bank or lender and then paid back over a course of ten to thirty years. As you pay back that money, a certain portion of what you pay goes to the bank as interest, and the rest is applied to the principal. The amount paid on the principal builds ‘equity’, which is, in simplified terms, the amount of your home that you own. The amount of equity you have in your home can be used as collateral for a loan to finance college, pay for a wedding or make home improvements, among other things.

A home equity line of credit is not exactly a loan. Rather, it’s a promise from a bank or lender that they will loan you money up to a specified amount when you need it at the interest rates agreed upon. Unlike a home equity loan, where the bank loans you a chunk of money and you pay it back, a home equity loan of credit allows you to borrow money as you need it, like a credit card.

Using a Home Equity Line of Credit

For example, if you take out a home equity loan for $10,000, you’ll get a check from the bank for $10,000 all at once. The interest clock starts clicking as soon as you sign the papers, and if you find that you need to borrow more money, you will need to apply again. If you really only need $2,000 of that money, you’ll still be paying interest on the entire $10,000 because you have the use of the entire $10,000.

With a home equity line of credit, the bank promises to lend you up to $10,000 over the next however many years. You haven’t actually borrowed any money when you sign a home equity line of credit agreement. It’s more like signing a credit card agreement. You won’t owe any interest until you actually use your home equity line of credit to borrow money. Once you’ve established a line of credit, if you find you need $2,000, you can draw that money from your home equity line of credit. At that point, you’ll owe the bank $2,000 and will start paying interest on a $2,000 loan.

There will still be $8,000 remaining on your line of credit. In other words, the bank has promised that it will loan you up to $10,000 during the term that the line is in effect, so you can still borrow up to another $8,000 as long as your loan remains in good standing. Even better, as you repay your loan, that money becomes available to borrow again, just like with a credit card.

So if you use $2,000 of your line of credit, you’ll have $8,000 remaining. If you then pay back $500 of it, you’ll be able to borrow up to $8,500 if you need it. You’ll only pay interest on the amount that you have actually borrowed, but you’ll have up to $20,000 available to you to use without having to apply for a loan every time you need one.

Why choose a home equity line of credit?

Establishing a home equity line of credit before you need one can be an excellent idea. Unlike a standard home equity loan, you won’t be paying any interest on the money that’s available to you unless you actually use it, and you’ll only be paying interest on the amount that you actually borrow rather than on the entire $10,000 amount.

There are a few circumstances where a home equity loan makes more sense than a line of credit. Since standard home equity loans generally carry lower interest rates than a home equity loan of credit, it makes sense to use a home equity loan if you will be paying out all or nearly the entire loan amount in a short period of time. In other words, if you need $10,000 to pay for something up front, then it makes more sense to take out a home equity loan for $10,000. You’ll pay less in interest that way.

If, on the other hand, you predict that you’ll need about $10,000 to complete a project over the next year, but won’t need all of it at once, a home equity line of credit makes more sense. While your interest rate on the line of credit may be slightly higher than on a standard loan, you’ll only be paying interest on the amount that you actually owe each month.

Popularity: 88% [?]

Approximately a third of holidaymakers place themselves and their belongings at unnecessary risk while on holiday. This “It can’t happen to me” attitude means that thousands of British tourists travel without insurance or an awareness of basic safety guidelines.

In a survey carried out by Nationwide, it was revealed that around 36% of those who responded failed to secure things like passports and foreign currency; preferring to leave it on the bedside table. A large number of those asked admitted they prefer to keep their valuables - such as expensive jewellery - on their person instead of securing it in the safe. Many weren’t even aware that their accommodation had a safe deposit box which they could use to keep things secure.

When asked about travel insurance, a large percentage said they didn’t bother taking out a policy before a trip, not realising the repercussions if something were to happen. Travel insurance covers you in case you fall ill and need medical attention, it will cover the cost of replacing your belongings should your luggage decide to take a holiday of its own, and some policies can even insure you in case your holiday is cut short or cancelled by the agent. It needn’t be expensive either; if you go away more than once a year you’d benefit from annual cover, which will insure you no matter how often you travel within a year. Single-trip insurance works out a little more expensive as a one-off, but worth it if you only plan on going away infrequently.

One of the main causes of British tourists falling ill is sun exposure. We’re just not used to it. It’s easy to forget to re-apply your suncream in the excitement of a holiday, but it must be reapplied every hour, and straight-away after bathing in the sea or a pool. And take a leaf from Spain’s book and siesta between 11am and 3pm; the hottest part of the day when the sun can do the most damage.

Be careful of the food too; avoid salads and only eat cooked vegetables, and make sure you peel all fruit. While the tap water in most countries isn’t actually dangerous, it’s often at a Ph level our digestive systems aren’t used to, so try to keep to bottled water. On the subject of drinks, try to keep your alcohol intake to a minimum, to avoid risk of dehydration. It’s a good rule of thumb in any country to have one glass of water for every alcoholic drink, but especially so in hot countries. Buy a bottle of water and keep it with you at all times.

Finally; immunisations. Check with your doctor or local pharmacy to find out if there’s a malaria risk in your destination country, or if any other immunisations are needed. Treatments for malaria vary in price from around £5 for a two week holiday - which needs to be started the week before you go and carried on for four weeks after your return - to around £70 for travelling to certain countries. While expensive, it’s nothing compared to the cost of contracting malaria in a foreign country when you have no travel insurance!

The best way to find cheap travel insurance is to shop around online. While holiday insurance isn’t mandatory, it’s always wise to take out a policy. The one time you go on holiday without travel insurance could be the one time you need it.

Popularity: 26% [?]

At some point, you have probably heard of umbrella insurance, but have no idea what it is. Well, first off, it does not cover the umbrella you protect yourself from the rain. It is a figure of speech. An umbrella policy is designed to shield you from almost everything that your home and auto insurance does not, as well as fill in gaps in coverage when the limits of your regular policy are exhausted.

Every day, there are personal lawsuits filed against ordinary citizens, with the reasons ranging from the frivolous to the justified. When and if this happens to you, you need to be prepared. More often than not, people are sued and have no extra protection to block the plaintiff from going after their personal assets in the lawsuit. To protect yourself from such a quandary, you need to have umbrella insurance.

An umbrella is often referred to as excess liability. This excess liability coverage kicks in when the underlying limits on your home or auto policy have been exhausted, or if you are sued personally for something that neither your home nor your auto insurance covers. Depending on the company, you can purchase anywhere from 1 to 5 million dollars worth of excess coverage, sometimes as high as 10 million.

The amount of coverage you select really depends on how much you are worth. If you have 5 million dollars worth of personal assets, you should get a 5 million dollar umbrella. It is not uncommon for someone to buy a 5 or 10 million dollar umbrella policy even if that number far exceeds their net worth, because the coverage is so cheap to buy.

Most insurance companies will not offer you the coverage unless you have both your home and auto already insured with them. Also, the insurer will require that you maintain a certain level of liability on the home and auto policies in order to qualify for the excess policy. Usually, you must maintain at least $250,000 of bodily injury liability per person, $500,000 per accident, and $100,000 for property damage for your autos, and $500,000 of liability for your home.

The coverage is cheap. It is possible to obtain 1 million dollars worth of excess liability for as little as $120 dollars. The more cars and homes you have, the higher the price for the insurance, but the cost is still low. In addition to your home and cars, liability associated with any other conveyances you may have, such as boats, motorcycles, and other recreational vehicles, may also qualify for coverage under the umbrella, depending on the insurance company.

You are probably wondering when the umbrella would actually come into play. Here is an example: If you are involved in an auto accident where you crashed into a pedestrian who was walking on the sidewalk, resulting in medical expenses for that person that costed more than what your auto policy covered, the umbrella would be used. Or, if that pedestrian then decides to sue you for negligence and seeks punitive damages, your umbrella can be utilized to cover your legal expenses and to pay any judgements levied against you.

It is also important to understand that the excess liability covers you for all sorts of things that have nothing to do with your cars or homes. Things such as personal injury protection are covered. This includes false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction.

Also, some umbrella policies provide coverage for you if you are sued in connection with any charitable boards or organizations of which you are a member. You may have to contact your insurance company and pay an extra premium for this type of coverage.

I hope this has helped illuminate to you the importance of having umbrella insurance. Without it, your personal assets are totally vulnerable in any lawsuit or legal action. Talk to your agent about it and ask how much it costs. Even though multi-million dollar lawsuits are not common, they can happen. So, an umbrella is probably worth it.

Popularity: 45% [?]