Disability insurance is an income replacement insurance policy which is dispensed to you if you are injured or too ill to return to work. It’s the only insurance available which keeps all other assets protected. Without insuring your income, any investments and/or insurance you have been contributing to for possibly many years will no longer have a source of funding for their upkeep. There is potentially a risk you could lose not only your home, but your car, insurance plans and any ability to plan or fund your retirement.

From accumulating assets to long-term financial plans, you have worked hard as you have gone through life. Have you given any thought to how you are going to keep these assets as well as your long-term plans if your income source is no more? Any disability programs offered from the government don’t necessarily get awarded to everyone in the event of disability. With strict requirements, averages of one third of all cases are approved. With the ability to structure, your disability insurance covers either partial or total disabilities for either short or long term. It’s essential to make sure you have the right coverage just in case.

Prices for disability insurance can vary greatly. Unless you have the opportunity to get insured through an employer, it could get pricey. You can estimate 1 to 3 percent of your annual income. This cost will depend on several factors, including your choice of policy, your type of employment, your health condition, and your age. Whether or not you smoke is also a factor.

If you don’t need immediate payments of your disability insurance following a disability (due to reception of workers’ compensation or employee benefits), you could save quite a bit of money on your premium by choosing to wait for reception of your disability payments.

You can choose either a traditional fixed-premium policy, or one similar to term life insurance plans. These are called annually renewable disability income policies. This type provides you with affordable options, with premiums rising in price minimally each year. With either of these plans, you determine the monthly payment in order to receive appropriate insurance – typically an amount around 60 percent of your earnings. Following this, if you become disabled, those payments will be returned to you.

When considering the purchase of a disability policy or when reviewing a current one, the main objective is to adequately cover your monthly expenses. Some individuals choose to insure their entire income, even though it may be higher than their respective expenses. This ensures there is enough money being received to cover your assets.

A good policy will always take into consideration inflation and its impact on your monthly benefit on a long-term basis. Always verify the possibility of adding an inflation rider to your policy.

There comes a time to realize that not all disabilities are equal. The majority are partial disabilities which decrease the amount of time you are able to work, but allow you to work at least part time. A perfect example of this is Multiple Sclerosis, which is a disease of many faces. Always look for a residual disability rider to ensure a partial benefit will be paid if you are partially disabled.

One way some insurance companies save money on policies is through their definition of disability. If your policy reads “any occupation” this could result in you having to return to any position, even if it’s not your own. A policy stating your “own occupation” is something you need to look for when choosing an insurance plan.

There are a wide range of questions and verifications which need to be addressed before committing to any one particular disability insurance policy. If you plan for this potential need ahead of time, you can shop around for the policy which best fits your needs, as well as your pocketbook.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

Do you ever feel like there’s some sort of conspiracy among corporations to deprive you of as much of your hard-earned money as possible? That’s not too far from the truth. Banks, stores, service providers and utility companies are all in it to make money. Some are more aggressive than others in the pursuit of the almighty dollar, but they all need to turn a profit to survive.

With costs rising everywhere, consumers have begun to search for ways to beat the system and save money. It takes some work, but there are ways that you can save on your everyday bills. Here are some suggestions.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

* When it comes to banking, it pays to shop around. Some banks charge all sorts of fees just to maintain a checking account, while others have free options. Check with your bank to make sure you’re getting the best deal they have. If that’s not good enough, look elsewhere. Some banks will even pay you to switch!

* Look at all of your communications options. Many households have a landline and multiple cell phones. Could you do without your landline? If you truly need a home phone, consider dropping your long distance service. Many cellular service providers include free long distance in their packages. Calling cards may also be a cheaper option depending on your calling habits.

* Consider bundling services. Companies often offer packages that include phone service, cable and high-speed internet at lower prices than if you purchased them separately.

* When it comes to electricity, the best thing to do is conserve, conserve, conserve. Switching to a cheaper electric company isn’t an option, so it’s important to find ways to use as little juice as possible. Turn off lights and televisions when leaving the room, unplug TVs, DVD players and other electronics that use power even when turned off, hang clothes out to dry when possible, and purchase energy-efficient appliances. These easy changes can make a noticeable difference in your bill each month.

* Make a habit of getting auto insurance quotes once a year. Changes in the way an insurance company calculates its rates, or changes in your driving record, could make a difference in the rate you would be charged. It’s also wise to get quotes on homeowner’s and other types of insurance on a regular basis.

* Keep a close eye on your credit cards. Even if you had a great interest rate to start with, you might be paying more now. Late payments (either on your credit card or other bills) can trigger rate increases, and until new legislation goes into effect preventing it, card issuers may raise your rate for no reason whatsoever. So pay attention to any notices you receive, and confirm your interest rate every now and then. If you find that you’re paying too much, look for a new card with a lower rate.

When looking for ways to save money, we often overlook everyday expenses. But by examining them closely, you can almost always find a way to save at least a few dollars each month. And those few dollars can add up to hundreds in a year’s time.

Many of us are told from a relatively early age to read everything, including the fine print, before we sign it. Then we go out on our own into the world to the wonderful experience of having to get our own insurance for various necessities. Someone could have at least warned us how easily we could get lost trying to make heads or tails of our insurance policies!

Once you have tried and been able to retain at least some part of the pages of complex information, it is a good time to call a representative from your insurance company. They are the best people to contact when things just seem like words on a page. They have this uncanny ability to make those words comprehensible. So before going too far into the conversation, be sure to get their name. You may need them again some time.

Each insurance company has its own way for handling deductibles, or what is known as out-of-pocket expenses. These amounts are any amounts which your insurance company does not cover. Some examples could be items you must pay for first, before your insurance company reimburses the rest.

This is an important part of your policy which you need to be aware of to the greatest extent possible. Surprises when you or family members are ill are more stressful to deal with. There may be a co-pay or monthly premium as well. This amount could have to be paid before your insurance company pays all of your expenses. Normally this leaves you with only the monthly premiums to pay.

Let’s go into a bit more detail about deductibles, co-pays and premiums, as well as co-insurance.

Deductible – This is the amount of money you are required to pay before your insurance coverage begins. Normally the higher the deductible, the lower the premium will be. This is because the person holding the policy wishes to shoulder a larger portion of the medical expenses.

Co-insurance – This is an expense paid by the insured person as a percentage of your provider’s charge. If a plan has 70/30 co-insurance, you are required to pay for 30 percent of the covered service after meeting the deductible, but prior to reaching the maximum out-of-pocket level.

Co-payment – This is not the same as co-insurance. Co-payments are specific amounts you are required to pay at the time of any doctor’s visit. Regular scenarios have co-payments not being subject to the deductible. This simply means you don’t have to meet your deductible to be able to use this option. However, this also means this amount does not apply to your out-of-pocket amount.

Any out-of-pocket expense maximum or cap would be an amount you are required to meet in order for your insurance company to begin paying 100 percent of the benefits covered by your policy. Any out-of-pocket expense which may be applied to this amount can include deductibles as well as co-insurance.

So as you can see, there is quite a bit of information which you need to be aware of when it comes down to the inner workings of your medical insurance. Remember that nice representative who helped you out with your questions earlier? Keep her name in a place you won’t lose it. Remember her every once in awhile and send her a Thank You note, or a picture of the family. She’s the one you want to keep turning to when things stop making sense, and you need a little refresher course.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

Quote massaging is a system used in the UK whereby anyone who is seeking to reduce car insurance rates can change one’s job description in order to reduce the cost of insurance.

While this system is not available in the US, it is widely used among the top five UK insurance comparison sites online. Among the sites where you can apply for insurance using quote massaging are: confused.com, uswitch.com, Admiral Insurance, Association of British Insurers, and moneysupermarket.com.

How does quote massaging work? One example cited is this: Let’s assume you are a lawyer. By changing the job description to a solicitor, you may enjoy substantial savings on your car insurance. And if you are a writer, changing the description to journalist may yield savings as well.

What do job descriptions have to do with receiving cheaper rates on car insurance? On the aforementioned comparison websites, entering a job description is a requirement (along with other pertinent information). Once the information has been entered, you are then given insurance quotes.

Thus, experimenting with different types of job descriptions can reduce the cost of car insurance. However, it should be noted that the job descriptions used should be accurate and one should not engage in false claims.

An example given was the case of a man who attempted to obtain cheaper insurance by changing his job description sixty times. While this is an extreme case, it nonetheless reflects how the system of quote massaging can be misused and abused.

Given the popularity of quote massaging in the UK, one would be curious to know how this same system could be used in the US. For example, years ago, men who worked for the Sanitation Department were known as “garbage men.” Today, however, their job description could accurately be called “sanitation engineers.”

If you are looking to reduce the premiums on your car insurance, it may be worth your while to check out these comparison sites and try out different but related job descriptions to determine just how much you can save.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

A licensed insurance agent can be a valuable resource. You would visit a travel agent to discuss destinations, rates, and obtain the latest updates only a travel agent could provide; a licensed insurance agent works in a similar way.

Let’s assume you need a specific type of insurance. An insurance agent can search for those policies that meet your needs. He can answer many questions you may have, can apprise you of discounts offered through his company, can help you with filing claims in an expeditious manner, and can review your existing policies to ensure you are fully covered.

On the other hand, before speaking to an insurance agent, it is recommended that you engage in some research on your own. While it may take a little more time, you can certainly find the most affordable insurance rates on your own either by checking companies online or by calling them directly.

However, if you do not have the time or the inclination to do so, finding a really good licensed insurance agent can make all the difference. The only caveat is that some agents may try to talk you into purchasing insurance you neither need nor can afford.

Just like travel agents, most insurance agents work on commission. And just like travel agents, if the trip and/or the arrangements made are unsatisfactory, an agent will lose a valuable customer.

Ultimately, using the services of a licensed insurance agent can benefit you in a variety of ways, including:

* Finding the best deal
* Offering information not readily available to you
* Help you to make the right choices
* Explain the different types of insurance and if they are beneficial to you

Therefore, it’s a good idea to find an agent whom you feel comfortable with, who listens to your concerns, and doesn’t seem overly zealous when it comes to your insurance needs.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

We are all looking to find ways to increase savings during this economic recession. Reducing the cost of your home insurance policy can help in this regard. Here are six ways you can lower the costs.

1. Stay with the same insurer. You can take advantage of discounts offered by your insurer if you purchase all insurance policies with one carrier. For example, having a homeowners and automobile insurance with the same company can yield up to 15% discount on your premium.

Moreover, the longer you remain with the same insurer, the better chance you have of obtaining additional discounts. For example, homeowners who have been with a company for five years or more may qualify for a special discount.

2. Increase the deductible. While you may currently have a $500 deductible, by raising it to $1000 you can save up to 25% on your premium.

3. Add security features. By installing smoke alarms, burglar alarms, and special locks, you can save as much as 20% on your premium. To find out if your insurance company offers these types of discounts, give them a call and determine how much you may be able to save in this regard.

4. Age-related discounts. Some insurance companies offer discounts to individuals who are 55 or older and retired. Check with your company and ask if they offer such discounts.

5. Annual review of your policy. This is another way you can cut costs on your policy. If you have expensive items in your home that are covered under a floater attached to your homeowner’s plan, these items will depreciate each year and may no longer have to be covered.

6. Good credit. One of the components used in determining how much you will pay for insurance is based on your credit rating. Therefore, to keep costs down it’s a good idea to ensure that you check your credit report and FICO score annually and correct any errors you detect on the credit report. Do not skip any monthly payments on credit card bills or loans, and maintain a good credit history.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

There are several factors that will determine whether or not you need life insurance. Here are some tips on how to choose a policy that is right for you.

* Who should buy life insurance? Life insurance is recommended to those who have dependents, those who are self-employed or own a business, and those who want to ensure that their surviving spouse will have enough funds to cover funeral and burial expenses as well as any outstanding debts or taxes incurred.

* How much insurance do you need? This is also dependent on several factors. In addition to the expenses already mentioned, you may want to cover education costs for the children. You may also require a supplemental safety net in case a situation arises such as illness or if you need to borrow money.

While some experts agree that most people who buy life insurance do not buy enough, others will say that most people buy too much. How much is enough is determined by how much debt has been incurred including mortgage, credit card debt, tuition and expenses, and the needs of the surviving spouse as well as the children. Once that calculation is made, one can then ascertain the amount of coverage needed.

* What type of insurance should you obtain? There are two types: term life and whole life. Term life is insurance that is only good for a specific period of time, whereas whole life insurance has no expiration and allows you to borrow from the policy or cash it in.

Term life insurance varies in cost. Depending upon your age, whether or not you smoke, your current health, and income may inflate the cost of this type of policy. But, in general terms, term life insurance is usually affordable.

* Understanding the types of life insurance available is critical. It is recommended, therefore, that you research each type as well as the insurance companies who provide the policies. Then set up an appointment with at least five agents to obtain proposals that you can compare and contrast.

Once you have decided on the type of insurance and the insurance company, think about it before signing on the dotted line. Ensure that this policy meets all your needs.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

According to one statistic, payment protection insurance claims have risen to 118% in the US alone. This is due, in large part, to the recession and high unemployment figures. What is payment protection insurance or PPI?

Basically, it provides a buffer for anyone who has become ill or unemployed by protecting loan payments and preventing the possibility of default. PPI can be purchased for car loans, personal loans, credit cards, and mortgages.

Payment protection insurance allows for short-term coverage, usually from one to two years. The standard policy is available to anyone that is employed full time or works part time for at least 16 hours a week, regardless of age, gender or occupation. This policy is usually available at the time a loan is obtained and requires a monthly payment commensurate with the amount of protection you require.

The cost of a PPI policy varies depending upon the state in which you live, the amount of coverage, and the provider you choose. For example, one insurance provider offers a PPI policy up to $70,000. The cost is 5.5 cents per $100 loan balance for a single, and 8.8 cents per $100 for a couple.

However, there is one disadvantage in purchasing a PPI policy from a bank or other lender and that is they may charge higher premiums. In fact, in some cases, lenders may automatically add the cost of the insurance to the loan without your knowledge. This results in your paying interest not only on the PPI but on the loan as well.

In addition, there are certain eligibility requirements. Some providers may not offer a PPI to retirees, those who are self-employed, or to part-time workers. That is why it is recommended that you research many insurance providers to find the most affordable and effective PPI policy that suits your specific needs. One example given is that if you are not working, you can opt to select a PPI policy that only covers illness or accidents.

On the other hand, there is a unique advantage in obtaining a PPI. It does not adversely affect your FICO score because the monthly payments are being made through the insurance provider without interruption.

There are different policies available through providers, and it is recommended that you check the exclusions and peruse the fine print so that you are aware of all aspects of the policy.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

There are many ways in which you can get cheaper car insurance. Although you can utilize price comparison charts and check out car insurance company websites as a start, there are additional methods you can employ to lower your existing rates as well.

Here are a few ideas to help you in this regard:

* Sign up for a driver’s defensive course. This can save you 5% on your premium.

* Install anti-theft devices in your car.

* Raise your deductible.

* Eliminate collision on older cars.

* Purchase car insurance from the same company which you purchased a homeowner’s policy or life insurance from.

* Instead of paying premiums on a monthly basis, change payments to twice a year or yearly.

* Inquire if the insurance company offers a discount if you have low mileage, or if you belong to an association or organization.

* A long-standing good driving record can result in a reduction of insurance costs.

* Maintain good credit. Check your report annually and correct any errors that may appear. Also, check your FICO score as well.

* Compare and contrast insurance rates online and/or call several insurance companies to obtain quotes.

For new car buyers, you may be asked to buy insurance from the auto dealer and/or switch to a new insurance company. Before doing so, check insurance companies on your own.

However, there are instances in which switching from one company to another may have its merits. For example, the dealership may ask you to sign up with a well-known insurance company who may offer a substantial savings. Before switching to the new company, check again with your current one to ask what the rate would be before deciding.

On the other hand, if you currently deal with an insurance company that holds your home owner’s policy and life insurance, it is recommended that you stay with the same carrier so that you can earn additional discounts when you add the auto.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com