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2008 and most of 2009 were sheer disaster zones for investors. Some investors lost more than half their investment portfolios, some lost all of it and there were the select few who actually made money, through the economic turmoil. Now, that most experts claim the worst is behind us, it might be time to jump back in the market. However, not without caution. While clients might be skeptical about taking the plunge back into the investment market, we feel that this might be the opportune moment for a lot of individuals. Although plenty of investors have missed out on the massive 50 percent plus gains that the DOW has experienced in the past few months, it is not too late. We put together a few investment strategies that should help individuals with their investing in 2010.

Best Investment Strategies For 2010

1. Large Caps To Lead The Way: In the recent past investors have pulled out close to $15 billion out of large cap stocks and out of fear of another investment market crash have invested nearly 4 times the same amount in less risky bond-funds. Historical returns have shown that the long term moving average of returns on stocks are far greater than that of bonds or funds that invest in bonds. Another important point of consideration while investing in 2010 is to remember that US large cap stocks are currently undervalued and this might be the time to start picking up some quality stock prior to their pricing sky rocketing. Our investing advice is to look to buy stocks that have a focus on dividend yield especially those which have more than 2% on offer.
2. International Markets: While the US is on the road to recovery, it may be a good investment strategy to adequately diversify your investment portfolio and look to international markets. Let us remember that international markets such as Australia in the Asia Pacific region and funds in the Latin American sector have outperformed the USA by a fair bit. Another point substantiating international investment is owing to the fact that international investment markets are considered more risky, they compensate investor by offering higher dividends and returns. This would be another factor why we believe investors should consider international stocks and funds as part of their investment strategies.
3. The Resource Sector: Seasoned investors reckon that the resource sector is probably a safe investment strategy at the moment if you are beginning to feel your way through the investment world. In particular, stocks in the energy sector and mining and drilling sector seem to have more appeal to seasoned investors.
4. Precious Commodities: When we say precious commodities what we basically at the moment are talking about gold investment strategies. A lot of investors do not consider investing in gold an investment technically. Gold has always been considered a preservation vessel for wealth and a hedge against geo political risk and other unforeseen market and non-market related forces. Gold is and will always be an excellent protection against inflation, and with the weakened Dollar, its prices being driven higher. It might be a good idea to hold about 10-15 percent of your investment portfolio in gold to add stability and diversification to it.
5. Mutual Funds: In light of the fact that prices in the money market are low at the moment it might be a prudent investment strategy to consider investing in quality mutual funds. While picking mutual funds the trick is to remember to select mutual fund managers who aim to provide their investors returns while preserving their capital.

These are some of the basic investment strategies we feel investors should consider while contemplating investing in 2010. However, remember to do your research and ensure that you have taken into account your risk tolerance.

Reference:

1. The 3 Best Investing Strategies for 2010 – The Motley Fool

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In today’s credit climate, having a steady job and a good credit rating aren’t enough. When it comes down to mortgages, credit officers are getting more and more picky about the type of clientele they prefer. Hence it is always important that you take a proactive approach and dazzle your mortgage officer with your preparation.

The 4 Cs A Loan Officer Looks For

Primarily when assessing your application, the four Cs are a pre-requisite to a mortgage officer. This tells mortgage officers a lot about they type of client you will shape up to be. The four C’s are:

1. Capacity:  This refers to the ability of an individual to meet the servicing requirements of a mortgage and how successfully will he/she be able to make the repayments.
2. Character / Credit:  This of course is proof of the fat that a borrower has not been a bankrupt, been foreclosed on been in arrears in the past or have a history not meeting debts. Most of this information is available on your credit report.
3. Capital: This is the down payment or the equity that the borrower holds in the property being offered as collateral.  Needless to say, that the higher the down payment or the more the equity in the property the better it looks on your application, not too mention the easier it is makes it you as far as loan repayments are concerned.
4. Collateral: This is pretty self explanatory, as it refers to the security being offered, its condition and of course it’s appraisal value. These elements put together constitute the type of security.

One factor that consumers often tend to make a mistake with is that, they feel either a strong income or a great credit score is sufficient to get you over the line. This however is not true. It is a combination of al four factors that make a customer exceptional. Moreover in a credit climate such as the one we have now, lenders are bound to be a bit nit picky.

Paperwork For A Lending Officer

Before applying for your mortgage loan, apart from having perfect credit scores, make sure you have the following paper work in order:

• The last 2 years W-2 forms
• Bank statements for 3 months
• If you are self employed all other relevant financials including the previous 2 tax returns
• The lender may ask for additional documentation, be prepared to give hand them over without any substantial delay

In addition to this remember never to change your circumstances post your loan application, your application could get knocked out the ballpark even if you are an exceptional customer, should you greatly change your situation. Some things to avoid in this regard are:

• Do not apply for new credit once you have applied for your loan, this will affect your serviceability.
• Remember, only float your interest rate once you know that you re comfortable with paying a higher repayment.
• Make sure that you are up to date with all your bills and expenses and your credit score is not hampered in any way.
• If the lender requires additional documentation get it to them as fast as you can, and do not question their request for more paperwork.
• One pivotal mistake consumers often make is that they change their job after having made a mortgage application, it is absolutely essential that you do not do this, as it will reset the clock on your new job and that in turn will greatly affect the mortgage officer’s decision.

Keeping these simple things in mind could be the difference between you getting an approval and you getting shown the door.

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The last year has been an extremely turbulent time for money markets across the globe. Investors have seen their investment portfolios dwindle to shadows of their former selves, Investment giants have collapsed, been forgotten and swept under the rug only to be replaced by new investment majors. A lot of clients have lost most of their life’s savings and retirement funds. Clients have also made investment blunders by selling at the bottom of the market only to see the market rise 60% in a matter of months. All these facts makes one question, is there really a point to investing in the market and buying stocks and holding direct equity more so?

Why Owning Stocks Is A Good Idea

So with investments falling through across the board, why should investors consider buying stocks? There are several reasons why it it sensible to buy stocks in the current climate

1. Beating Inflation: As known to most inflation is the biggest detriment to individual savings. It is what the market calls an erosion of savings. Look at it this way if you store your money as cash in a safe or a vault your money is not working for you. While the face value of your money remains the same, the prices of goods and services around you rise at a steady inflationary rate. Even if you held your money in CDs or a savings account, in reality your money would indeed be growing at a slower rate than the rising prices of goods and services thereby causing you to lose money in reality. On the other hand by buying stocks and holding your funds in stocks would mean that your money would be growing faster than the inflation prevalent in the market place. The long term moving average of stocks show that they have always out performed the inflation bench marks. The most important thing at the moment is getting started and getting into the market and not worrying about what the market seems to be doing or where it is headed.
2. Stocks The Way To Go: The reason why most experts recommend that buying stocks are the way to go is for these simple reasons. Let us assume that you invest $5,000 for 35 years in a savings account or in a certificate of deposit. Assuming that as last year the inflation rate remains at 3.8%, you would have only made approximately $2,200 in today’s terms, even though the amount in reality would be something close to $8,000 plus, owing to the fact that these instruments on average offer no more than 1.5 – 2% annually. On the other hand a similar if you buy stocks and had invested in stocks, you would have made in the region of  $70,000 plus and in today’s terms that would have been close to $21,000 and above owing to the fact that on a conservative estimate basis, stocks offer 8% on a long term moving average basis. Hence you actually stand to lose by placing your money else where.

Even though you might consider that the market is a risky place in light of the current economic downturn, let us allow the figures to speak for themselves. Had you bought stocks and invested in the year 2002 after the tech crash, you would have seen your funds increase by roughly 33 percent in year one, 44% in year  and by the fifth year you would be up by as much as 92-95%, there by almost doubling your investment in buying stocks in a matter of 5 years. Even if you suffered a loss with recent global meltdown, bu buying stocks you would still be ahead by about 30 plus percent.

Hence to sum what we have already stated, it might be a good idea to buy stocks and invest in the market especially in this climate when everyone is looking to exit, anticipating a fall. However, as with any investment decision, it is always prudent to consider your own personal circumstance and risk tolerance prior to making any decisions.

References:

1. Roadmap to Riches – MSN Money
2. Is Now the Time to Buy Stocks? – The Wall Street Journal

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If you haven’t started planning for your retirement yet and are in your sixties, it may be a good idea to start taking time out to plan your retirement and ensure a secure retirement future for yourself. If current statistics are anything to go buy, most individuals leave the work force by the age of approximately 62. In addition to this only about 12-15 percent of these individuals feel that they will have sufficient funds in their retirement. The most recent of economic downturns has left several individuals in the lurch about the fact whether they will have sufficient income during retirement from the defined benefit plans.  In addition to this it has also been estimated that unlike previous years, retirees nowadays carry an average debt of $50,000.

If all this has made you feel that you too might be in a similar boat here are a  few tips to help you plan your retirement better and ease in to the transition and ensure retirement security.

Retirement Guide – Tips To Help Secure Your Retirement

1. Set Your Retirement Date: By setting your retirement date, you will be able to zero in on a time frame and hence gauge whether your current savings are sufficient to last you and guarantee you a secure retirement. If this is the case you may be able to extend the date a little longer there by giving yourself a couple more years to boost your retirement savings. However if you feel that you are already in that position it wouldn’t make any sense in prolonging your retirement more than you would have to.
2. Place: Another important decission which you will need to consider where are you going to retire to? Are you going to stay in an unencumbered house, or are you going to downsize to a smaller place? Are you going to be carrying be a mortgage or will you be debt free? Are you going to move to a retirement village or relocate etc. These questions will also help you decipher the amount of money you will require in your retirement and ensure retirement security.
3. Insurance Options: One fact that all retirees must consider is getting long term care insurance. While experts suggest that getting this prior to the age of 65 is not good, prolonging it may mean that you develop a condition or suffer an illness that will disqualify you from getting this insurance. It is always advisable to consult an expert in the field prior to getting this insurance.
4. Debt: Most individuals like to enter their retirement phase debt free. In order to do this make sure that as you approach your retirement date you have paid out your outstanding credit card balances and any other looming debt that you have so you can enjoy a hassle free and secure retirement. Some individuals may also think it prudent to consult an attorney or bankruptcy expert with regard to these issues.
5. Budgeting: Once you have detailed the above it is always advisable to budget to ensure retirement security. Creating a budget will ensure that you have planned your retirement expenses and have an estimate as to what your spending should be through the years so as to ensure that you do not deplete your hard earned money all too quickly.
6. Checking Your Social Security Options and Estate Planning: Individuals can start drawing on their social security benefit payments by the age of 62. However, if you prolong this, it will ensure that your benefit checks are larger, thus guaranteeting you a more safe and secure retirement. While looking into your social security payments and benefits options, it may also be advisable to consider estate planning. If you have not made a will and a power of attorney then it might be time to make sure that these are in place to ease your affairs for your loved ones on your passing. If however you have already had these drawn up then it may help to have them reviewed.

There are a few simple steps that should help you plan your retirement out better and ensure a happy, peaceful and secure retirement.

References:

1. Retirement Advice – Wallet Pop
2. Plan Your Retirement – Social Security Online

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On November 6th President Barrack Obama signed a bill extending and expanding the tax credit for first homebuyers. The $8,000 first home buyers tax credit has been extended till June 30. In addition to this the government has also decided to expand the tax credit to another $6,500 to encompass current home owners who are looking to make new purchases.

Changes To The Homebuyers Credit

In an interesting move by the government to spur market sales the government has extended the homebuyer tax credit to existing homeowners as well. In order to qualify for the homebuyer credit, homeowners should have lived in their existing properties for a period of 5 years consecutively in the last 8 years. In addition to this, the grant for the first home buyers has also been revamped. To qualify now individuals should earn less than $125,000 and couples should have a combined income of less than $250,000. These amounts have been revised upwards from $75,000 and $150,000 respectively.

Homebuyer Credit Stimulus – What It Means

This brings us to the next topic of discussion, what of this information do you need to know:

1. Buyers Are Expected To Surge: If you are a seller who is waiting to sell his property but has been unable to owing to the slack demand in the market, this might be the right time. With the extension of the homebuyer tax credit, experts expect there to be a surge in the numbers of buyers in the market. In addition to this one must also keep in mind that the extension of the homebuyer credit grant in conjunction with the expansion to include existing home owners and low interest rates, makes this a largely buyers market.
2. Timing Is Important: While home buyers have up to April 2010 to make the homebuyer credutgrant, as long as it is under contract by then, only as long as they close it out by the end of June. However, while consumers think that this is a lot of time, in reality they should start shopping now if they feel they are eligible. In the housing world a couple of months is not enough of a window to close the deal. It would be beneficial to have the property under contract by the end of March 2010 so as to ensure you have enough time to close the property.
3. Slow Months: While the seller are headed into the months which are traditionally regarded as the slowest for the real estate industry, with the extension of the homebuyer tax credit and also it’s expansion, a lot of new buyers are going to rush into the market therefore making these slow months rather busy to ensure that they make the grant in time.

If however you are in the middle of negotiations or have recently signed a contract it may be beneficial to check your eligibility. As a first step contact your real estate agent or banker to ensure that you can take full advantage of the grant. This extra money will go a long way irrespective of if you are a first home buyer or a existing home owner.

In addition to this prospective home buyers should remember that they can take advantage of the tax credit as long as they have a contract by the end of April and close it out by the end of June. Hence it is very important that consumers time their purchase decisions and ensure that they have sufficient time to make the grant.

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Many experts are of the opinion that the worst of the financial crisis is behind us. However, we are still not completely in the clear. It is always in the best interest of consumers to gauge their financial situation and not be lured in by rosy pictures painted by bankers, lending professionals, investment analysts and lending professionals. A common sense approach to the whole dilemma is that individuals are probably in the best position to judge their own financial situation in comparison to complex model created by professionals.

The Consumer FInancial Protection Agency – What It Means

This article is more in the wake of the fact that the financial industry and political spearheads are trying to fight the creation of the a new Consumer Financial Protection Agency.  The creation of this agency would mean that some of the following industries would come under regulations and scrutiny. Examples of these are:

• Credit Cards
• Store Cards
• Home Loans
• Financial Advisory Services
• Credit Bureaus
• Collection Agencies etc.

The creation of this agency would mean that there would be new consumer and user-safety guidelines introduced to better protect consumers from the clutches of predatory practices prevalent in the financial industry.

Financial Bully Info For Consumers

1. In a recent chain of events car dealerships have been placed beyond the scope of jurisdiction of the new Consumer Financial Protection Agency. This move comes of course for more obvious reasons. Come to think of it there are few other institutions on the planet, which would rip consumers off more than car dealerships.  In addition there is severe push to get rid of the new agency altogether as most financial institutions prefer the state of chaos and confusion where they have a firm grip over their customers and where customers have no one to take their appeals to.
2. With the relaxed lending practices NINJA loans became exceedingly popular and so did unregulated lending practices. This led to a severe economic downturn and even though the heads of several financial institutions met in the year 2006 they could not agree upon a set of regulations to filter applications and screen the approval process more carefully.
3. It was not until 2008 that the Federal Reserve Intervened to ban unfair lending practices, This of course came 14 years after it had been handed absolute power by the congress and 2 years into the subprime crisis.
4. At the moment predatory lending practices such as pay day loan institutions outnumber McDonald’s burger King and Wendy’s combined. No concrete action has yet been take to curb the geometric growth of these exploitive practices.

This brings to the point that some individuals may consider this as a mollycoddling approach. If you come to think of it the ones who are suffering the most are individuals  who do not make bad decisions and are individuals who have no agency to go to protect themselves.  However all this can change and consumer can voice their opinion. The entire copy of the 89 page bill by can be at the Wall Street Journal (1).

Remember it is your opinion and it should be voiced to ensure better consumer protection in the future.

References:

1. Obama’s Financial Reform Plan – Wall Street Journal
2. Fight the financial industry thugs – MSN Money
3. Consumer Financial Protection Agency – LA Times

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In the not so distant past it was possible to get a no down payment mortgage loan or a 100 percent lend as the market place calls it. However with the recent economic meltdown and tightened lending policies, no deposit loans are fast becoming the “Dodos” of the banking world. In other words they are extinct. This leaves clients with the obligation of coming up with sufficient funds to be able to secure a mortgage nowadays.

Come to think of it, one of the chief advantages of putting down a down payment for mortgage is that it creates instant owners equity in the market. In addition to this, the larger the down payment, the smaller your monthly interest payments on your mortgage.  In addition to this several industry experts have found that several first homebuyers who are not accustomed to owing a property find it hard to cope with owning an maintaining their homes. Hence as a precaution it is advisable that individuals should not allocate all their money towards their down payments and should store a bit in reserve. As a result of this a lot of mortgage programs nowadays have cash reserve requirements for individuals.

Getting A Down Payment For House

Some quick fixes to getting a house down payment are as follows:

• Ask your parents for the deposit amount as a non-repayable gift. This will ensure that the banks do not treat the mortgage down payment amount from your parents as another debt.
• You can also create your house down payment by selling assets such as cars, boats, bikes collectibles etc.
• In addition to this you could also liquidate your investments such as stocks and managed funds.
• Another alternative for a down payment mortgage could easily be recycling your tax refund and using that as a deposit.
• You could borrow the mortgage down payment from your IRA account.
• If you have received a bonus at work and are planning to buy a property, set this amount aside to use it as your down payment.
• In addition to the above-mentioned methods you could also look into private mortgage down payment assistance programs or if you are an employee of the government you could look into home buyer programs for public servants.

Alternative Methods To Getting a Down Payment

• Government Backed Programs: Apart from the above-mentioned methods there are other alternatives to securing a house down payment for your mortgage loan as well. For instance, The FHA backed mortgage Insurance program allows borrower to secure a loan with as little as a 3% deposit, the entire of  which could be a gift. However, you must be a approved applicant first. In addition the loan programs run by the Department of Veteran Affairs allows retired servicemen to get a home loan without any deposit at all.
• Private Assistance Programs: Private Assistance programs such as Nehimiah and AmeriDream are extremely popular and controversial at the same time. While these programs convert sellers equity into the buyers house down payment, they are not without flaw. One may ask him or herself the question that if an individual did not have the discipline to save up for a deposit,  will they have the discipline to make their repayments.

Hence, as stated there are several ways an individual can come up with a mortgage down payment for their home, but it is always advisable to ensure that you have saved up for it and have made adequate contributions.

Reference:

1. How to come up with a down payment – House Hunt
2. How to come up with a down payment – MSN Money

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If you have been harbouring dreams of college, or have been wondering if you will be able sufficiently to send your kids to a university of their choice, this is post on education savings may be suited to your needs. Irrespective of market conditions education costs do not seem to have dropped as much. Even today affording good higher education requires planning and meticulous savings for college.

The 529 College Savings Plan & Other Options

The new 529-college savings plan, has meant that it might be beneficial to stay near home as States offer deductions to residents contributing to their state’s plan. This however does not mean that you should not venture out of your home state for college. It might just so be that the other educations and non-educational benefits of moving to a university in another state, far surpass the tax incentives offered by your state. In addition to this the next question that needs to be answered is that should you invest your funds in your states 529 plan or are there better options out there These are some of the things, which a college saver should look out for:

1. Cheap Funds: This might sound a tad bit absurd, but historically it has been proven that education funds, which do not cost an arm and a leg, to get into have a better chance of outperforming the index. Having said this does not necessarily mean that the fund will out perform. That could depend on a number on factors such as investment decisions, calls made by the fund manager and other external market factors.  However what does remain a certainty is of course the amount of money you pay. If however you take an expensive fund, apart from the entry cost, there will be administration expenses attached by the 529 plan plus brokerage, if you are investing through a broker etc. This can greatly hamper your overall return.
2. Diversification: Here is another important consideration. Diversification basically means spreading your eggs across several baskets. You could, by diversifying, expose your self to international college saving funds and small caps, which in turn usually offer greater returns in the long run. This will also reduce your overall exposure and thereby dependence to Domestic Blue Chips and large caps.
3. Time Frame & Risk Tolerance: It is important to remember the time frame you have in mind for your college savings plan. If you are working a fairly large time from, it might be prudent to initially invest in small caps and international funds as these yield a higher return in the short term. If you only have a few years to go prior to the date the individual or yourself having to join college, then it may be a safer bet to invest your education savings in large caps and blue chips.

Having mentioned the foundation guidelines for a good education savings plan, it is also worth mentioning that unless you have used the right mix of funds and have properly diversified you could end up losing money. It is essential that you have strong base of college funds around which you can place several satellite funds to help obtain your overall objective. However, it is essential that you or your broker chooses these funds with ample care and after having done ample research.

Once again prior to making any investment decision remember to consult an expert in the field and ensure that you have weighed all your options accordingly.

Reference:

1. College Savings 101 – Saving for College

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One fact that home buyers should remember is that it is more difficult to obtain a home loan today than it was even a few years ago. Hence it is very essential that consumers, first home buyers and experienced buyers, take into consideration all factors that might influence the most important purchase of their lives – buying a house.

Guide To Buying A Home

Before buying a house, it may be beneficial to actually visit the websites of some of the lenders you might be considering. Most of these lenders have calculators online, which can help you gauge how much money you can borrow. Once you have got an idea of the amount of money you can borrow, the following may be beneficial for buying a house.

• Gather the paperwork that you will require to give the mortgage company for buying property. This could include statements from banks, pay slips and other financial documentation and evidence. You may require additional documentation if you wish to apply for the government’s home buyers tax credit or other government grants.

• Having gathered your paperwork for buying a house, it may be beneficial to get yourself a pre-approved home loan once you know the range of property you are looking at. Unlike a pre-qualification, a pre-approved loan is where you already have a loan ready and hence it will make your offer to the seller more attractive as it will mean that you will be able to go unconditional and close the offer much quicker in comparison to other buyers.

• You must bear in mind that if you feel interest rates are going to rise, it may be prudent to lock in rates.

• As a home buyer you could also look in to various FHA loan program and loan programs offered by the Department Of Veteran Affairs, if you have been in the armed services.

• In this current credit climate it is almost a given that you will require a down payment when buying property. This can either be obtained as genuine savings, a gift, through government programs or through private down payment assistance programs or the by the sale of another asset.

Home Buyer’s Guide:  Types of Loan Products

Once you have taken the above factors in to consideration, it is time to consider a loan product that best suits your spending habits and needs. Several products are available on the market today. A brief description of some of them are:

1. Fixed Rate Home Loans: These home loans are beneficial to those home buyers who wish to live in the property for the entirety of the loan. In this case you can fix the interest on the entire life of the loan.
2. Variable Loans: These loans are also known as Adjustable Rate Morgages. With these, the interest rate for buying a house is fixed for a certain period after which it fluctuates according to the market index.
3. Interest Only Loans: With interest only loans home buyers pay only the interest component for the first five years after which they go in to a period where they go back to making to principal and interest repayments.

Buying Real Estate: Questions To Ask

An important part of the home buyers guide is to ask the right questions before you buy property. Some important questions to consider before buying a house are:

• How often will the interest rate be adjusted?
• Have you got mortgage insurance, as this can greatly affect your mortgage repayments?
• When do the payments come due?
• Is there a cap on the interest rate?

Once you have considered all these options for buying a property you could feel fairly comfortable while making a decission with regard to buying a house.

Reference:

1. Your 5 Minute Guide to Home Loans – MSN Money

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Everyone knows about it and everyone knows it’s benefits but what most consumers do not know are the simple facts about their life insurance policies and how with the power of knowledge they can save themselves not only a lot of money but also heartache should the need to make a claim ever arise. Here are some things to know about life insurance policies.

Life Insurance Policy Information

1. Evaluate Your Options: In a complex business environment such as we have today, the age-old principle of “one size fits all” is long gone. Make sure that you look around and consider a few insurers before settling on one provider for your life insurance policy. This will allow to you find the insurer best suited to your needs. In addition you will also be able to make sure that no one provider is over-charging you.
2. Level Of Cover: When reviewing life insurance policies, often people make the mistake of under insuring just to save on the level of premium they have to pay. By doing this you put your loved ones in a whole lot of strife. In the event of an untimely death of a contributing family member the funds from the insurance pay-out are some times insufficient to pay the existing liabilities. The best way to calculate your required level of life insurance cover is to take your existing liabilities on a monthly basis and calculate them by the number of months of life expectancy you feel you may have. For instance if you feel that your monthly liabilities are $1,000 per month,  and you feel that you are going to live for another 30 years, multiple $1,000 by 360 months (12 months X 30 years), and the resultant figure is $360,000 worth of life insurance cover required.
3. Rates And Health Go Hand In Hand:  This basically means that the healthier you are the better the life insurance rates you will get. The simple reason for this is that your health determines how much of a risk you are to the insurance company. The healthier a person the lesser the risk of a claim due to a premature death etc.  Hence it is important that you do not have ay major health issues when applying for comprehensive life insurance.
4. Do Not Delay Buying Life Insurance:  A lot of clients wait till their twilight years prior to considering getting life insurance. In a lot of cases if you wait too long to get a life insurance policy, your application is either rejected owing to factors like age and ailment or your premiums are through the roof. It is always advisable to get life insurance policies early as not only are you healthier, but you are also a lesser liability from the insurance company’s point of view.
5. Review Your Cover: One common mistake people make is that they do not review their life insurance cover and often make the mistake of keeping whatever cover they had started out with. This could be an issue in the future. If your liabilities have increased or beneficiaries of your policy have changed, these factors may need to be taken in to consideration, when increasing your level of cover or modifying your existing cover.

These are certain facts about life insurance policies that consumers should keep in mind when considering their life insurance options. It must be remembered that life insurance is one of the most important insurance policies that a individual can take out. Hence it is important that you consider all your options prior to settling.

References:

1. Top 10 Things to Know About Life Insurance – Insurance.com
2. Ten things you should know about life insurance – Yahoo Finance

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