Your home is the most significant investment for almost every American. Do you know how to choose the right coverage for you and your family? Here's tips how.
How to pick the right homeowners insurance
(BPT) - If you're like many Americans, your home may be your most valuable asset. That's why it's so important to protect it with homeowners insurance. Plus, it's probably a requirement of your mortgage. Setting up your coverage the right way starts with understanding the major parts of a homeowners policy.
Consider the following information and tips from the USAA Home Learning Center:
This protection covers the cost of repairing or rebuilding your home if it's damaged or destroyed. When you select the amount, keep in mind the cost to rebuild your home is different from its market value.
It's important to get the dwelling coverage right and to monitor it over time to make sure it keeps up with construction costs to rebuild. Under most homeowners policies, if you file a claim and have underinsured your home, your payout may be reduced.
Some insurers will help you estimate the rebuilding cost. They take into account the features, materials and finishes that make your home unique.
Personal property protection
This protection covers your furniture, clothing and pretty much everything else inside your home. Most policies set the amount of personal property protection as a percentage of the dwelling coverage.
It may not be enough, though. Homeowners plans set limits on certain high-value items. If you own expensive jewelry, art, guns, stamps, furs, cameras, computers, silver or collectibles, you'll want to consider buying valuable personal property insurance. This is sometimes called a "personal articles floater."
When you set up your homeowners policy, you may have to make an important choice about how to reimburse losses. There are two approaches:
To make your recovery from a loss as smooth as possible, replacement cost coverage is recommended.
This is one of the most important and least appreciated forms of protection offered through homeowners coverage. It protects you if you're found to be at fault for someone's injury or property damage. It even covers you for non-automobile incidents away from your home. Generally, it also covers your legal costs associated with such claims against you.
As a rule, your liability coverage should at least be equal to the total value of your assets for both your homeowners and auto insurance. If your assets are higher than the maximum coverage allowed under the policy, consider purchasing umbrella insurance to cover the difference. This is important to protect the savings and other assets you've worked hard to acquire.
As with other types of insurance, a deductible is the part of a loss that you're responsible for covering out of your own pocket. The higher your deductible, the lower your monthly premium.
Choosing a higher deductible can save you money with a lower monthly premium but increases the risk you take. Consider the amount of cash you typically have on hand in your emergency fund or checking and savings accounts. Make sure you can cover the deductible amount comfortably.
What may not be covered
Your policy's basic coverage won't cover some special risks.
For additional information on protecting your home, visit USAA.com/Homeowners.
Want to reach your money goals? Here's a four-step process to achieve your dreams!
(BPT) - The new year is just around the corner and it’s never too early to think about your 2020 goals — and for many, this means prioritizing finances. Taking the time to focus on your goals and determine what’s important to you financially is the best way to set yourself up for success, but actually following through can be difficult. These easy financial exercises from Vanderbilt Mortgage will help you reach your goals in the new decade.
1. Outline your plan
If you don’t already have one, establish your plan. Write down short-term financial goals, such as creating a monthly budget, and long-term goals, such as paying off a debt or buying a home. Defining these goals will help as you set your budget for the next year.
2. Create a monthly budget
Gather pay statements, bills and bank statements to get started. You can write down all this information or use a budget tool. Start by calculating your monthly income, which includes not only the amount you may get from a regular paycheck, but also any money you get in government aid, child support or pensions. The next step is to look at your bills and bank statements to find out exactly what you spend in various categories of expenses such as utilities, auto, medical, personal, insurance, etc. This accurate information will empower you to take control of your spending.
3. Set a savings goal
Saving is another important aspect of financial health. Whether you’re using a general savings account, adding to an emergency fund, or setting aside funds for a new home, saving for larger financial goals helps you prepare and gives you peace of mind no matter where life takes you. If you’re new to saving, start small. Simply skipping your daily latte from the coffee shop a few times a week can add up quickly.
4. Stick to it
The statistics on how many people actually follow through and keep their New Year’s resolutions are rather bleak, but sticking with your financial goals will pay off. Stay on track by monitoring your progress each week. As you get closer to your goals, excitement will build and you’ll be motivated to keep budgeting and saving.
Vanderbilt Mortgage offers helpful online resources whether you are looking to purchase a new home or keep your current home in great shape. “Here at Vanderbilt, we want to use our years of experience to help current and future homeowners.” Said Eric Hamilton, President of Vanderbilt Mortgage, “Providing educational materials for every step of homeownership is one of the ways Vanderbilt is with customers every step of the way.”
Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), MT Lic. #1561, Licensed by PA Dept. of Banking. Sponsored ad content from Vanderbilt Mortgage and Finance, Inc.
When it comes to economics, many teens’ mouths write checks their knowledge can’t cash. Help influence the financial literacy of a teen in your life with these practical money-management tips.
5 Financial Tips for Teens
(Family Features) When it comes to economics, many teens’ mouths write checks their knowledge can’t cash.
While 93% of American teens say they know how the economy works, 29% have had no economic schooling, according to a survey of 1,000 U.S. teens ages 13-18 by Wakefield Research on behalf of Junior Achievement and the Charles Koch Foundation. Even in light of their false confidence, teens are aware of the importance of financial education.
Although the study identified numerous gaps in economic and financial knowledge, it also showed teens do know where to look for credible information. Two-thirds (67%) recognize they should use their school as a resource.
“One of the things we hear often is that some textbooks are written too academically for most students to understand the concepts,” said Jack E. Kosakowski, president and CEO of Junior Achievement USA. “Our programs, which work as a complement to the school curriculum, are written from the perspective of today’s teens and use digital content to help bring economic concepts to life for students.”
Beyond the classroom, another 63% of students believe they should use their parents as resources for economics education. Help influence the financial literacy of a teen in your life with these practical money-management tips adapted from the curriculum.
Set goals. Managing your money is more meaningful when you’re doing it with purpose. This might mean budgeting to ensure you have enough money to maintain your auto insurance and keep gas in your car, or you may be saving for a big senior trip. Knowing what you want to achieve with your money can help you plan how you spend it more wisely.
Weigh needs vs. wants. When you begin making your own money, it’s easier to indulge your own wishes and spend money on things you don’t necessarily need. To some extent, that’s not a bad thing; rewarding yourself is fine when you do so within reason. That means not exceeding your available funds, and not forsaking things you truly need, like gas money to get to and from a job or school.
Get a debit card. Most people find that having cash on hand makes it easier to spend. If you use a debit card instead, you’re an extra step away from spending so you have a little more time to consider your purchase. Another benefit of a debit card is it helps track your purchases in real time so you can keep constant tabs on your balance and ensure you don’t overdraft your account.
Start a savings habit. Even if your income doesn’t allow for much, it’s a good idea to get in the habit of setting aside a portion of each check. It may only be $10, but over time each $10 deposit can build your account toward a long-range goal.
Protect your privacy. Teens who’ve grown up in the digital age tend to be less skeptical and cautious about privacy matters than their elder counterparts. It’s important that young people understand the potential impact of failing to protect their privacy when it comes to financial matters, including the possibility that their identities could be stolen and all of their money siphoned away. Teaching kids about security is an essential lesson in economics.
Visit ja.org for more tips and information to help raise your teen’s financial literacy.
Photo courtesy of Getty ImagesSOURCE:
Mortgage insurance is a stable, cost-effective way to obtain a low down payment mortgage, and offers distinct benefits to borrowers. It has been a cornerstone of the U.S. housing market since 1957, providing more than 30 million families with the opportunity to own homes despite financial barriers. If you are considering purchasing a home, it is important to understand your options, including your low down payment options.
(BPT) - For many Americans, the biggest hurdle in buying a home is the down payment. According to a recent report, 49% of non-homeowners stated that not having enough money for a down payment and closing costs was a major obstacle to purchasing a home. Many people also mistakenly believe lenders require a 20% down payment to qualify for mortgage financing.
Data shows that by using private mortgage insurance (MI), millions of homebuyers with down payments as low as 3% or 5% have been approved for affordable and well-underwritten mortgages.
In the past year alone, MI has helped more than 1.1 million borrowers purchase or refinance a mortgage. Nearly 60% were first-time homebuyers, and more than 40% had annual incomes below $75,000.
How MI works
In addition to the other elements of the mortgage underwriting process — such as verifying employment and determining the borrower’s ability to afford the monthly payment — lenders require borrowers to commit some of their own money before approving their mortgage loan. This is where MI entered the system more than 60 years ago, to bridge the down payment gap and help creditworthy borrowers qualify for a mortgage without large down payments.
Benefits of MI
MI is a stable, cost-effective way to obtain a low down payment mortgage, and offers distinct benefits to borrowers. It’s been a cornerstone of the U.S. housing market since 1957, providing more than 30 million families with the opportunity to own homes despite financial barriers. If you are considering purchasing a home, it is important to understand your options, including your low down payment options. To learn more, visit LowDownPaymentFacts.org.
Every year, millions of American workers enroll in employee benefits through their workplaces during a period known as annual enrollment. It’s usually a short window of time, but employees make crucial financial decisions for their families for the coming year. In addition to medical insurance, consider these voluntary benefits that can help bridge the gap between what health insurance covers and what you’re financially responsible for.
Help Safeguard Your Family’s Finances
(Family Features) Every year, millions of American workers enroll in employee benefits through their workplaces during a period known as annual enrollment. It's usually a short window of time, but employees make crucial financial decisions for their families for the coming year.
In addition to medical insurance, many employers offer a range of voluntary benefits - those you select and pay for yourself, often by having the cost deducted directly from your paycheck. These voluntary benefits can help bridge the gap between what health insurance covers and what you're financially responsible for, especially as more employees opt for high-deductible health insurance plans.
In fact, according to a poll of 1,512 full-time U.S. workers conducted by employee benefits company Unum, 49% of working adults plan on enrolling in a high-deductible health plan for the coming benefit year, with Millennials (58%) and Gen Z'ers (54%) at even higher rates.
"While high-deductible health plans offer lower monthly payments, that can mean more financial responsibility for policyholders when they need to use the benefit," said personal finance expert Laura Adams. "Combining a high-deductible health plan with a health savings account can offset out-of-pocket costs, but it's also a good idea to consider voluntary benefits like disability, accident and hospital insurance to further financially protect your family."
If an accident, illness or injury prevents you from working, disability insurance replaces a portion of your income. While it may seem unlikely to many they would ever experience a disability, it's more common than some realize. Based on 2019 information from the Social Security Administration, more than 1 in 4 of today's 20-year-olds will become disabled before reaching age 67.
Accident and hospital insurance can pay a lump sum directly to you to offset out-of-pocket costs associated with medical care often not covered by health insurance.
Voluntary benefits, policies and details vary, so it's essential to review your options and discuss with your family before your benefits enrollment begins.
"Investing a little additional time on the front end can help reduce your family's financial risk down the road," Adams said.
For more information about employee benefits, visit Unum.com/benefits.
Photo courtesy of Getty ImagesSOURCE:
As wedding season begins to quickly roll around once again, many couples are seeking to make their special day unique. Whether you're going for an out of this world theme or getting your wedding dance choreographed there is no doubt that unique is the end goal here. However, many are seeking to go above and beyond the day of the wedding, and looking for that something special to last throughout their marriage. The following list entails some of the most unique ideas when it comes to choosing your wedding ring.
Forego a Traditional Ring—Use Tattoos Instead
A wedding ring has been the staple of marriage for at least a couple of hundred years now. They represent a tight bond between two people and a visual of it as well. However, couples today don't seem to be satisfied with simply an object as a representation of their commitment. Therefore, a new trend has emerged amongst younger, soon to be married couples. This trend includes the addition of a tattoo on each of their bodies. Usually, it's the date of the wedding or their names, which are marked somewhere on their skin, but some have even gone so far as to tattoo an entire portrait of themselves! Needless to say, this is one way to truly show your commitment.
Rings That Support a Cause
Often the things that bring people together are their shared values. We constantly hear stories about people meeting within a school social club or while volunteering at a local shelter. Nevertheless, these shared values are a big part of one's life. Why not continue this into the marriage with the inclusion of a wedding ring that supports that cause? There are differences between lab created diamonds and mined diamonds but none as obvious as the eco-friendly nature of one over the other.
Forget About the Centerpiece Look
One of the most common designs of a wedding ring is that big centerpiece diamond. While this may look very impressive, it does not make it unique. New designs are popping out today that incorporate the value of a centerpiece but with a different approach. We highly recommend looking at wedding rings that showcase multiple diamonds spread across the band. These beautiful designs not only keep the value of the ring but they give it that extra bit of uniqueness. Choosing a wedding ring design that will be yours to keep and look at for years may be a little daunting. Therefore, we recommend understanding your expectations and what is realistically possible to obtain. We hope that the list above has provided you with some ideas to make your wedding ring that much more unique.
Looking for more unique styling tips? We recommend reading another article from The Beauty IDEA.
Automobile insurance is something that you need to secure if you are going to be driving your own vehicle. This is a big expense in addition to purchasing and maintaining a new vehicle, so you will want to take appropriate steps to make sure that you are getting the best deal around. It is important that you budget your auto insurance, but you should make sure that you’re getting good coverage as part of your policy. Lawyers often tell their clients that insurance companies are not actually trying to help them; instead, they are more concerned about protecting shareholder profits and avoiding as much financial loss as possible. The truth is if that is your experience, you are with the wrong insurance company. If you are in search of a new insurance company and do not know where to begin, here's 2019's top performers according to Consumer Reports.
Amica Insurance is one of the oldest mutual insurance companies for automobiles in the country. Founded in 1907, Amica isn’t as popular as other companies on the market, but it has a really good reputation for customer service. J.D. Power has praised Amica for its customer service protocols for the past twenty years. Its policies provide excellent coverage for all types of vehicle scenarios.
New Jersey Manufacturers Insurance Company
When you need to tap into your insurance coverage, you need a company that is going to bend over backward for you. New Jersey Manufacturers Insurance Company has a passion for customer service. It is frequently recognized by national organizations and publications that focus deeply on the best insurance providers in the country. New Jersey Manufacturers Insurance Company was created in the early 1900s and has been serving the community since then with great results.
USAA Property and Casualty
There are many benefits associated with using USAA Property and Casualty. You can acquire a very comprehensive policy for an affordable price point. The company offers online assistance where you can speak with a representative or access your policy information. Flexible payment plans are available for clients if you are on a budget and need to be careful about what you are spending on your insurance. Many discounts are available for each policy year as well. Auto insurance is not something people really budget for, but it is a bill you will receive monthly or a couple of times each year.
Auto Club Group
Auto Club Group is part of the AAA Travel Agency organization, which is centrally located in Troy, Michigan. As one of the world’s largest insurance providers, you will get excellent coverage for your vehicle. There is also a great roadside assistance feature that provides you with towing, jump-starts, and more. If you are looking for insurance that will provide you with peace of mind that if you are in an accident, you will be taken care of, then this is a great provider to use. You will also get some wonderful benefits that you might use more than you think you would.
Here’s another article we think you’ll like:
How to Survive Financially After a Car Accident
(BPT) - When it comes to managing your monthly bills, it doesn’t get much more convenient than auto-pay. Because this option eliminates missed payments and late fees, it’s easy to see why three-quarters of Americans have opted in, with anywhere between one and seven monthly payments, according to recent survey findings.
However, consumers are also discovering that enlisting in auto-pay isn’t without its financial downsides. The following survey findings from TheZebra.com (an insurance comparison site) show how auto-pay can make consumers complacent.
* Nearly a quarter of people (23%) admit to not paying attention to what’s coming out of their bank accounts. If the result is an overdrawn account or a billing error slipping through, that can prove to be a costly mistake.
* One-third (29%) of respondents confess to forgetting to cancel services linked to autopay after they’ve stopped using the services. A couple prime examples of this are a music streaming service subscription or a gym membership.
* Nearly half of consumers indicate that once auto-pay is set up for their car insurance payments, they never get around to re-evaluating their fees. Considering the market value of our cars depreciates every year, this suggests that many consumers are missing an opportunity to get the best coverage at the best price, as car insurance rates can change daily.
* Finally, by not taking time to evaluate costs or cancel unused services, consumers are paying the price. Some 29% of respondents estimate they’re losing $100 annually, but for high-ticket items like a gym membership, the savings could be in the thousands.
Now that you know the high price you may be paying for the convenience of auto-pay, here are some tips to help you stay in control of your finances.
1. Keep track of your statements. Because money is withdrawn from your account each month, it’s easy to lose track of your spending. Otherwise, if a price hike takes effect or if you end up consuming more services than expected, the consequence can be a higher-than-expected bill. If your bank account lacks the funds to cover it, you’ll end up with an overdraft, which can end up costing you more than any late fee! So when auto-pay takes effect, make sure you review the monthly statements. If you see an additional charge or a price hike take effect, follow up immediately.
2. Research rates at least twice a year. While your service provider may offer excellent service at a great rate, it’s always possible there’s a better deal for you somewhere else. Take time to research and compare the going rates for things like internet service and car insurance — you may be pleasantly surprised. To make sure you follow this step, set up six-month reminders on your phone or calendar and commit yourself to following through. If you end up using the service less often than you planned — or not at all — this reminder can give that much-needed nudge to reevaluate.
3. Take time to fully understand your options. As you know, some service agreements, such as gym memberships and mobile phone contracts, can’t be canceled without penalty — at least, not until you’ve reached a specific end date. But don’t make the mistake of thinking this rule applies to all service agreements. For example, did you know you can switch your car insurance anytime without paying a penalty? It’s true! In fact, once you switch, your old insurer will send you a rebate for the balance, even if time remains on your six- or one-month policy. So go ahead and shop around. If you find a car insurance provider that’s more affordable and provides the coverage you need, you can reap the benefits right away. Just remember, if you do decide to switch, don’t cancel the old policy until the new one is officially in place. Otherwise you might get charged a penalty for the gap in coverage.
How to save on a big bill: Car insurance
Looking for a better price on car insurance? TheZebra.com allows you to see how your current policy stacks up to the rest. The Zebra is the only auto insurance comparison site that shows you all your options side by side, and never sells your data. When you shop around with The Zebra, you can rest assured knowing you won’t get any unwanted calls or emails. Visit www.thezebra.com and see how much you could be saving on car insurance.
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