Posts Tagged ‘insurance advice’

Do You Have an Emergency Fund?

January 13th, 2011 by Iris | Comments Off | Filed in advice and how-tos, insurance specialists

No matter where you live or what you do, having an emergency fund is a smart idea. This way, if some sort of catastrophe hits your area, or there’s a family emergency that requires you to spend an extended period away from work, you won’t be forced to dip into your retirement fund or go into debt to rebuild your life, or fund your time off the job.

Most experts recommend that your emergency fund be equal to six months of your salary, so if you typically take home $2500/month, work toward an emergency fund of $15,000, even if you have to do it $25 or $50 at a time.

You should also keep your emergency fund in a lower-risk account, something that’s really stable and allows you easily access your money without penalties. A regular savings account held in an FDIC-insured bank is an excellent first step, and once it grows large enough, you can move part of it into a money market account or a certificate of deposit (CD) to earn better interest.

Since building an emergency fund takes time and patience, realistic goals are the key. Nationwide Insurance offers some fantastic tips for getting you started:

* Decide on an amount you can live with, perhaps 5% of your paycheck
* Save through automatic payroll deduction, so you won’t have a chance to spend the money
* Think of it as you think of a bill − something you have to pay
* Skip one big expense this year and use that money to launch your emergency fund
* Put your tax refund or company bonus into the emergency fund

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Does your homeowners insurance include a “Santa” clause?

December 23rd, 2010 by Iris | Comments Off | Filed in advice and how-tos, homeowners insurance

Homeowners in the UK risk losing more than Britons risk losing over £23 million worth of presents via burglary this Christmas, and sadly, that may not be covered by the usual contents clause in their home insurance coverage, at least according to HSBC.

To help protect consumers, the bank is urging them to read their policies and look for a so-called “Santa clause” which is meant to cover the additional value of goods in their houses during the Christmas period. Two companies, More Than and Tesco Personal Finance have increased their basic home contents coverage by ten percent during the holiday season, for example.

Also of concern to insurance companies is the increased risk from theives. HSBC says that as many as 64,600 British homes could be burgled over the holidays, and adds that only about fifty percent of the population follows basic security practices, like keeping their Christmas trees away from windows.

Stephen Young, head of general insurance at HSBC told the press that, “Every year, over 60,000 people have their Christmas ruined by opportunistic thieves. “Before starting your Christmas shopping, make sure your home is secure and check that your insurance policy has a ‘Santa Clause’ to cover all those extra gifts.”

While most American insurers don’t offer such clauses, temporary riders to cover additional value are available. If you go crazy with Christmas shopping, consider giving yourself the gift of security this year.

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Chimney Safety Tips from CSIA

December 8th, 2010 by Iris | Comments Off | Filed in advice and how-tos, fire insurance, homeowners insurance

It’s December, which means that Jack Frost is probably nipping at your nose, as the song says. Even if you’re not actually roasting chestnuts over an open fire, the Chimney Safety Institute of America (CSIA) wants to make sure that your fireplace is a heat source and not a safety hazard this winter. To that end they’ve published their top ten safety tips for wood burning fireplaces and stoves. Enjoy:

1. Get an annual chimney check. Have chimneys inspected annually, and cleaned as necessary, by a qualified professional chimney service technician. This reduces the risk of fires and carbon monoxide poisonings due to creosote buildup or obstructions in the chimneys.

2. Keep it clear. Keep tree branches and leaves at least 15 feet away from the top of the chimney.

3. Install a chimney cap to keep debris and animals out of the chimney.

4. Choose the right fuel. For burning firewood in wood stoves or fireplaces, choose wellseasoned wood that has been split for a minimum of six months – one year and stored in a covered and elevated location. Never burn Christmas trees or treated wood in your fireplace or wood stove.

5. Build it right. Place firewood or firelogs at the rear of the fireplace on a supporting grate. To start the fire, use kindling or a commercial firelighter. Never use flammable liquids.

6. Keep the hearth area clear. Combustible material too close to the fireplace, or to a wood stove, could easily catch fire. Keep furniture at least 36” away from the hearth.

7. Use a fireplace screen. Use metal mesh or a screen in front of the fireplace to catch flying sparks that could ignite or burn holes in the carpet or flooring.

8. Install smoke and carbon monoxide detectors. Place detectors throughout the house and check batteries in the spring and fall. When you change your clocks for Daylight Savings Time, remember to check your batteries.

9. Never leave a fire unattended. Before turning in for the evening, be sure that the fire is fully extinguished. Supervise children and pets closely around wood stoves and fireplaces.

10. The CSIA recommends annual inspections performed by CSIA Certified Chimney Sweeps. These chimney sweeps have earned the industry’s most respected credential by passing an intensive examination based on fire codes, clearances and standards for the construction and maintenance of chimney and venting systems. The National Fire Protection Association also recommends that all chimneys are inspected on an annual basis.

One tip they didn’t recommend? Check the status of your fire insurance policy…just in case.

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Life Insurance: Can it Be Extended?

September 8th, 2010 by Iris | Comments Off | Filed in advice and how-tos, insurance facts, life insurance

Most life insurance agents will tell you that the question their existing customers most often ask if their term policies can be extended. Sadly, there is only one answer to this question: NO. Why? Because the term of a life insurance policy is set at the time of issuance, and there are no extensions after that term.

When you’re shopping for term life insurance, then, be sure to talk with your agent or financial advisor about what term length is best for you. In most cases, unless you are taking out a life insurance policy that needs to have a short term for a reason (ten years to cover a short-term loan, for example), the longest term available (generally 30 years) is the best plan.

When you do a close comparison of different types of term insurance, you might find that even though a shorter-term policy seems less expensive in the moment, the rates tend to be higher if something happens to cause your health to deteriorate, while a longer-term policy will ultimately cost you less money in premiums.

Bottom line: if you’re buying term life insurance, purchase a policy with the longest available term for your age.

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