FinanceDogma – Finance, loans, creditcard and mortgages

June 5, 2009

Home and Contents Insurance – How to Find the Best Deal

Filed under: insurance — Tags: — admin @ 2:02 pm

Each year building insurance increases and the average increase last year was about 1%; seeing the price now sitting at around £205 per year.  Likewise, the cost of contents insurance increased by around 2%, now costing the ordinary homeowner about £151 per year. That is the average, but there are some companies that have pumped up the prices considerably more – last year Norwich Union for example, increased rates by a massive 6%.

So you might be wondering – why this is the case when competition is on the rise?  The answer is fairly simple – external forces that contribute to price increases are on the rise as well – and that’s what we’ll discuss now. (more…)

May 16, 2009

Insurance: Do I Really Need It?

Filed under: insurance — Tags: , , , , , , , , , , , , — admin @ 7:42 pm

There are many different types of insurance, with the underlying purpose being to protect individuals from a host of unseen situations. In most situations this protection will cover individuals by providing money when required, as well as protection from liability, damage and financial loss. Insurance can protect individual’s homes, vehicles and life, among other things. Depending on the needs of the customer, insurance packages can even be tailored to fit their needs.

In certain situations there are some insurance policies that are compulsory. Automobile insurance against personal injury in a number of states is one such example. Insurance coverage can be quite broad and vehicle insurance is not different. As a consumer, you can select between a simple liability policy that pays the other party should you be involved in an accident, but provides no coverage if your own property is damaged.

If you require higher coverage, you might opt to take out a comprehensive policy that will cover damages to the other party’s property and also to your own property, as well as medical expenses. With such a range of coverage and many points of coverage in between, it is generally considered that automobile policies can be varied in nature. (more…)

May 4, 2009

What is Insurance?

Filed under: insurance — Tags: , — admin @ 10:36 pm

Insurance is a way of hedging our bets against an uncertain future. Since we can’t predict what’s going to happen to us or to our property, we buy insurance so we can be compensated for the results of a major or minor life event. Money comes from a pool of money contributed by everyone who holds individual policies. In other words, risks are pooled, and each policyholder’s contribution to the pool of money depends on whether that person is a bigger risk for that particular event (in which case he would pay more) or whether he is a lesser risk (in which case he would pay less).

There are dozens of types of insurance a person can buy, and in the United States, the policies and rules for insurance change from state to state. In other words, Pennsylvania health insurance might be very different from Georgia health insurance in terms of costs and coverage. But health insurance isn’t the only type of insurance. Here are some others: life insurance, accident insurance, homeowner’s insurance, renter’s insurance, car insurance, and travel insurance.

In much the same way that Pennsylvania health insurance is different from Georgia health insurance, so are the different types of insurance different. For example, if you buy travel insurance for a vacation you have planned, that insurance has a short time frame, and costs little in terms of dollar amount. But homeowner’s insurance is necessary for as long as you own the home, and is fairly major budget item for most.
People who determine how much people in different risk categories pay for insurance are called actuaries. They are experts in financial risk probability, and insurance companies employ them to help them best manage risk and charge enough in premiums to cover losses and still profit.

January 18, 2009

Why to Insure?

Insurance plays a vital role in mitigating our financial losses that may arise due to unforeseen events. Any finance-minded person would buy an Insurance policy to secure himself or his dependants at the time of need. There are different types of Insurance policies right from Life Insurance to Home Insurance. One has to resort to the policy that covers his possible risks.

Health Insurance

As a human being we are prone to sickness at some or other point of our life. To recover from sickness, we need to undergo medical treatment. When it comes to medical treatment, we need to pay the medical expenses. When the treatment cost is high, it impacts our savings. This is where a Health Insurance policy comes handy. It covers the risk of medical expenses. (more…)

January 5, 2009

Think about Retirement

Filed under: Finance — Tags: , , , , , — admin @ 8:37 pm

As we all are aware that our life is filled up with many stages, Retirement from regular job is a major part of such stages. We need to be proactive from the perspective of finance, at a younger age. We need to plan well on how we are going to lead or face our Retirement life. When thinking about Retirement, many may consider it as a period of rest and experiencing happy times with no job related worries. Well, while it is true that you no longer need to be afraid of your frowning Boss, there are other issues that you may undergo during Retirement life. Issues like Health and Financial problems top the list.

Speaking in a practical sense once you retire from your regular job, your monthly income comes to an end. You need to have enough money to make a decent living. While planning for Retirement Investments, you need to analyze the monthly expenses and other major expenses during your retirement life.

Employer Sponsored Retirement Plans

If you are employed in a Company, your Employer would offer you a Retirement Plan or Pension Plan. This savings would be of great help during the time of needs. Also this type of savings offers the benefit of tax deduction.

Life Insurance

As a person gets older, the risk of death increases. A Life Insurance is a great way to financially protect the family members or dependants at the time of his death (Insured). Premium amount paid towards Life Insurance is also considered as a tax saving investment in various countries.

Purchase of Home

It is better to purchase a home during the period when you are earning well. This would help you to reduce the rental expenses during the time of your Retirement. There are lots of Banks that offer Home Loans which you could avail to fulfill your dreams of owning a Home.

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