10 Most common insurance myths

Insurance policies have become an important part of life with the increase in risks related to life and accidents. These policies can be very complicated and surrounded with a lot of false information. You must not believe everything you hear, because there are many myths associated with your insurance policies. 

The 10 most common myths are as follows: 

1. Benefits should equal premiums:

 Your policy is your buffer against severe financial problems and not to be used for daily ups and downs in life. You must not feel cheated if you have been paying premium for years and never made a claim. 

 2. Everyone needs life insurance:

For some even this policy is unnecessary. The policy is designed to give financial care to your dependents. This includes your children or any elderly person who depends on you. If you do not have any dependents, then you may not need the policy. 

 3. Only the breadwinner needs to be insured: 

It is generally believed that only the person who earns in the family needs to be insured. We tend to forget that duties such as house care, food preparation etc also must be taken into account. Thus a non-working spouse also contributes greatly to the budget; therefore even he or she should be insured for life.

 4. Your car not your responsibility if someone else drives it: 

Even if someone else is driving your car and causes an accident, you will be financially held responsible for it. 

 5. No need to insure old cars: 

According to statistical information old cars are the ones that get stolen the most, because it’s easier to steal them. 

6. Company will pay for a rental car if your car gets stolen:

This is not automatically included in your policy. Even if you have comprehensive and collision coverage the policy will not include a rental car. 

7. You need flood coverage only in a high risk area: 

All areas under a National Insurance Program are eligible to buy flood insurance. You must be insured if you live in a flood prone zone. 8. Umbrella insurance is for rich people: As lawsuits occur so commonly now, this policy is for all home, auto and watercraft owners and not just for the wealthy. 

 9. You don’t affect others when you don’t get insured:

 If you decide to be uninsured, you are indirectly affecting the lives of others. This will include the lives of those who are dependent on you. 

10. Red cars increase your policy premium: 

Many drivers think that car color is an important factor when it comes to paying premiums. This is not true at all.

Continue Reading

How bad credit can affect your family

Financial indiscretions or poor money decisions affect your future and your family. Making late payments, missing payments, owing high balances or opening multiple credit cards lowers your credit score. Even if you made these mistakes during your college years, negative information remains on your credit report for up to seven years. When future creditors evaluate your credit history, your past mistakes indicate that you are a high credit risk. Creditors may refuse to extend credit to you or may assess high interest rates on new loans. Your family’s finances and future are adversely affected by bad credit.

Bad credit limits your ability to meet your family’s current needs. When you owe money to numerous creditors, you spend your income repaying the debts. You have no excess money to repair the leaking house roof or buy new clothing for your growing children. Your spare money goes toward repaying debt accumulated in the past. You also have access to limited financial resources. Already overextended, new creditors may be reluctant to open new credit cards or offer store credit for essential household expenses.

                                       

With poor credit, your family may be unable to obtain affordable housing. If your family expands, your home sustains weather-related damages or elderly parents must move in with you, you could be left without financial resources to purchase a new home or make improvements. Mortgage lenders and property managers perform credit checks on potential buyers. In most cases, they choose to extend credit and favorable interests rates only to the consumers with clean credit records. Poor credit reveals your history of missing payments or paying less than the minimum payment. You may lose valuable housing assistance because of bad credit.

After a vehicular accident, a new baby is born or never ending auto repair bills, you may wish to purchase a different vehicle. Bad credit limits your ability to purchase a reliable vehicle upgrade. While auto dealers advertise loans for consumers with bad credit, the money is not free. You will pay high interest or receive other unfavorable loan arrangements that limit your ability to maintain the payments and stay current on other household expenses.

Repeated phone calls or letters from creditors can lead to emotional stress or depression. Additionally, the weight of unpaid debt strains family relationships. One spouse blames the other for irresponsible spending. The strained relationship inhibits honest communication about a solution, and the debt cycle continues. In many cases, bad credit leads to emotional separation, health problems or divorce. Instead of suffering, work with your spouse to create a solution to your bad credit.

Bad credit indicates the possibility of poor spending habits. Unaddressed, increased spending on credit prevents your family from finding financial freedom. It keeps you stuck repaying creditors for items you probably do not really need.

Learn to live within your means. Record an accurate list of your family’s monthly income and expenses. Look for ways to increase your income, and cut unnecessary expenses. Use the excess money to repay outstanding debts and save an emergency fund. At least once a month, hold a business meeting with your spouse. Address the next month’s bills, and work out a manageable budget. By agreeing together on your financial goals, you improve your credit and protect your family’s financial future.

Continue Reading

Has the gold bubble burst?

Fresh fears that the “safe haven” aspect of gold investing could be over hit investors last week with the news as “large institutions” began selling off their gold as February came to an end.

Commentators and financial advisors (as reported by a blogger for The Telegraph) think gold prices have started a downward trend and will eventually dip to around $1,000 per ounce.
This caused gold to dip in price by $100 in less than a day.

Key figures such as Brian Dennehy from Dennehy Weller speculate that there could be a final spike in gold prices and then a “large correction” in the gold price will begin, taking gold down to $1,000 an ounce. He thinks gold could even get as low as $700 an ounce.

Hope for gold prices

Of course, with every financial commentator saying that gold will fall, there is a bullion seller to say that no, the gold market is not over and that any dips in price are only temporary.

Ben Yearsley at Hargreaves Lansdowne says: “The gold price has remained high and gold shares haven’t really moved; therefore the disconnect between their profits and share prices remains.
“The world is still in an uncertain place; therefore the demand for gold will remain strong, underpinning the gold price and underpinning gold miners’ profits. So the outlook for gold shares remains good.”

Sell your gold while you can still profit

So who is right? Is Yearsley right with his optimistic view or is Dennehy right when saying that the boom is over for gold? Whoever is right, the message to investors seems to be very clear: sell, sell and sell some more.

If gold is booming, then selling makes sense; if only to avoid the dramatic fall in price that occurred last September. If gold is about to dip dramatically then the same rule applies. In this financial climate it does not make sense to hold onto a valuable, profitable commodity that changes in price daily.

How to get the best price for gold

Who knows if cash for gold prices will drop suddenly? Current market indications and subsequent research indicate that such a dip could happen. However, with the financial problems of the world still unresolved, gold could still climb back up to that $2,000 per ounce figure or even higher.

If you’re uncertain, and wish to still get a great price for your jewellery, the onus is on you to take control and sell gold now. Don’t wait for the market to change suddenly; which could leave you out of pocket.

Use our excellent gold price comparison service to find the best gold buyers for you.

Continue Reading