https://unsplash.com/photos/mCqi3MljC4E
No-fault insurance is a form of insurance coverage in which an insured person’s injury or property damage is compensated for regardless of who was at fault. No-fault insurance is often available with personal injury insurance coverage, but it can also get added as a separate type of coverage.
There’s so much to consider when starting a small business – so much so that insurance may not have even popped up on your radar. All that said, insurance is probably the most necessary factor in starting a business, in order to protect against those unforeseen risks (say, a pandemic), as well as ensuring you avoid any unnecessary fines.
Legally, you are only required to have one policy, which is employers’ liability insurance (EL). This covers your business in the event of an employee claiming illness or injury as a result of working for you, with legal and compensation costs covered by EL. You could be fined £2,500 for each day you don’t have this coverage.
So just the one policy required by law – nice and simple, right? Many small business owners opt for additional kinds of insurance too.
So what’s out there?
Public liability insurance (PL) is very similar to employers’ liability insurance, with the key difference that it covers any claims made against you by members of the public. PL picks up the hefty bill should any unfortunate accidents occur.
Professional indemnity insurance (PI) works in a similar way, though in this instance it is designed for claims of financial loss rather than illness or injury. Then you have directors and officers’ liability insurance (D&O), which covers the individuals with management responsibility rather than the business itself.
Contents and portable equipment insurance could also be useful for you. If you’re a small business, you’ll inevitably be reliant on technology. This insurance covers smartphones, tablets, laptops and cameras – all of which are often necessities for the modern business regardless of size.
When it comes to tech, it’s vital to protect against the instance of a cybercrime with cyber liability insurance. Cybercrime has reached ‘epidemic proportions’ according to reports. With cyber liability insurance, you are at least covered to a degree.
What about your employees?
Your employees are the foundation stone of your business, so making sure they are covered for any eventuality is hugely important. Employee life insurance is arguably one of the most valuable benefits a company can offer for all parties. That said, it’s also important to make sure the option chosen is right for your business and its employees.
If the worst should occur, life insurance offers security for the family of the employee. Life insurance may go under many various different monikers, but the security it provides is universal. In light of the Covid pandemic, we should take nothing for granted at this point, even those of us of a younger disposition. After all, life is unpredictable at the best of times.
As with most things in life, it’s vital to consider the individual needs of each employee. After all, it could lead to employees paying a great deal more than they would like for unsuitable coverage in terms of their personal needs. Not all employees will have a family that needs security should they pass on, whereas others might have a sizable family. Ultimately, this is why getting the best advice on which policies are best can put your employees ahead of the game.
It’s no secret that women face unique financial challenges. From the gender pay gap, to managing household finances, it can be tough for us to make informed decisions about our money. To empower ourselves and make sure we’re on the right track financially, we need to ask the right questions. Here are some of the most important ones.
Insurance is a big (and often surprising) topic for women: we live longer, are more likely to experience a disability that impacts our earnings, and are more likely to support children or elders. We have a stronger need for a safety net.
As a high-level guide: max out any employer-sponsored coverage (like through your job) and then get an individual policy for the remainder of your need, as your budget accommodates.
Life insurance is a tax-free gift you give the next generation, and term life insurance is inexpensive. Buy what you can afford, on the private market or through your employer.
Disability insurance is so important for women – it will replace a portion of your income if you can’t work, and you want to target 60% and 70%. Especially if you are a single mom or supporting family. To achieve this target, you will probably need a private policy in addition to any coverage from your employer (if available).
And finally, if you’re approaching retirement, long-term care insurance is important if you want to make sure you don’t have to spend all of your savings on health care in retirement. It can be very expensive, so don’t purchase this til you’re older and approaching the need for it.
These are just general guidelines – there’s no one right answer when it comes to insurance. It’s important to talk to an expert (like a financial planner) about what kind of coverage makes sense for you given your unique circumstances.
There’s no one right way to budget your money – find the method that works best for you and stick with it! Consistency is much more important than perfection.
Some people use the “envelope system” where you put a certain amount of cash into an envelope for each category (like groceries, entertainment, and transportation). That’s all you get for that category for the month. This is great if you have to be very careful and want to stay away from credit cards entirely. It’s also a great system if you like using a physical planner over software/apps.
If you prefer using technology to manage your finances, there are a number of great budgeting apps out there that can help you track your spending and set goals. Some popular options include Mint, You Need a Budget (YNAB), and EveryDollar.
For those who like having more control over their budget (and who are comfortable with Excel or Google Sheets), creating a budget in spreadsheet form can be a great option. This method gives you a lot of flexibility to track your spending in the way that makes the most sense for you.
One of the best ways to make sure you’re saving enough money is to “pay yourself first.” This means that as soon as you get paid, you put some money into savings before you spend any of it. This can be difficult at first, but if you make it automatic (i.e., set up a direct deposit from your paycheck into your savings account), it will become easier over time.
Again, there is no one right answer to this question – it depends on your goals and financial situation. But the upshot is that you can build an emergency fund or improve your generational wealth. Here are some general tips that can help you get started:
It can be very challenging, but to save money, you need to bring in more money than you spend. You can lower your costs and watch your spending, but you can also increase your income through a side hustle, a raise at work, or a promotion. You could sell extra things around your house. You don’t need to make a huge commitment – even small improvements in your earnings can make a big difference.
Set up automatic transfers from your checking account to your savings account so that you’re automatically putting away money each month. This is a great way to make sure you’re always saving something, even if you don’t have a lot of extra money.
A savings challenge is a great way to encourage you to save more money and get some community support. There are all kinds of challenges out there (like the 52-week challenge, where you save $52 in week one, $51 in week two, and so on), but the important thing is that you find one that works for you and stick with it. Dasha Kennedy at the Broke Black Girl runs a great year-long savings challenge to help women save $1000.
As much as you can.
Women retire disadvantaged: we generally receive lower social security benefits due to lower earnings. We also tend to live longer (which means more years in retirement), and we’re more likely to experience a period of disability. All of this points to the need to have a larger retirement nest egg.
Controversial opinion: I encourage all women to target 20% of pre-tax household income for savings. That is a lot. But most of us are playing catch up, and starting from lower earnings. Build up to it by increasing your savings rate little by little, and remember that even small amounts add up over time.
You want to make sure your money is working hard for you, and one of the best ways to do that is to invest it. Investing can be intimidating, but on average, female investors outperform by 1% because we are less likely to panic. 1% is what professional investment advisors charge. Set up auto investment, choose low fee index funds and increase your contribution little by little. Like saving, successful investing is about consistency and patience.
The biggest mistake you can make is to hand your finances off to a partner and ignore them. Women are socialized to do this (and it’s changing, slowly) but we pay for it. If you are widowed or experience divorce, you will be adding a terrifying and steep learning curve to a personal crisis.
Additionally, and I say this as Chief Financial Officer of our family, financial decisions will be better with your input! Even though I do this for a living, my husband often has great insight and our decisions benefit from his involvement. Don’t discount your ability or perspective, especially given that women are better investors.
Claire Hunsaker, ChFC®, is a Chartered Financial Consultant featured in American Express, Forbes, Parents, Real Simple, and Insider. She offers free financial planning for single women through AskFlossie, where she is CEO. Claire holds an MBA from Stanford and is an IRS-certified Tax Preparer. She has 20 years of business and leadership experience and approaches money topics with real talk and real humor.
Anyone that gets injured at work is entitled to receive workers’ compensation benefits until they’re able to return to work. Follow the tips below to ensure that you don’t get denied what’s rightfully yours in your workers’ compensation case.
If you’re in a state to write anything after your injury, it’s advisable to note down all the witnesses who may be present at the time. This will help you pursue your case successfully in case any issues arise. These issues include having to prove that you got injured while at work and not somewhere else. Clearly, this can make a big difference to the outcome of your case because an injury that typically qualifies for worker’s compensation is one that occurs during the scope and course of employment. These injuries could be cumulative trauma or a single event, something that will be detailed in your medical report.
The laws for workers’ compensation require that any work-related injury be reported within a short period of 30 days or fewer when possible. While you may not be legally barred from getting compensation due to failing to report your injury immediately, your claim may be delayed as a result. For this reason, make sure to immediately report any injury you suffer at work to your immediate supervisor, especially if you feel like it may cause you to miss work.
If you suffer an injury while at work, seek medical treatment immediately. This is because if you delay or don’t go to the doctor after an injury, it may be assumed that you weren’t injured enough to deserve any compensation. If you’re able to take yourself to the emergency room, go immediately or request to be taken if you’re unable to do so. Once you undergo treatment, you will be able to deal effectively with the rest of the procedure.
When you receive your accident report or insurance form, make sure that you fill it out as accurately as possible. If you’re not in a state to do so when it’s presented to you, request to fill it out at a later date. This is important in order for you to make sure that you can concentrate on the task and do it well without omitting any important details and being as clear as possible.
Note down any time and similar information as well as you can remember it, and make sure to be consistent in what you write and what you say to the relevant parties by ensuring to remain truthful. You may be able to get your compensation fast enough to carry on with other activities in your life, such as paying your mortgage.
With the average sales price for condos in existing buildings standing at $1.9 million in the third quarter of 2017, for example, you may have responsibilities that need to be death with without delay. It will be in your best interest to have the case proceed fast and favorably.
Finally, if you feel like any of the steps in your workers’ compensation case may be complicated or cause issues, you can always talk to a lawyer. With 87% of consumers, according to recent estimates, reading online reviews for local businesses in 2020, which was an increase of 81% since 2019, you can look for a lawyer online. Go for a lawyer with a proven track record and experience in this field so you can be sure of a fast and successful exercise.
These tips should make it possible for you to get a positive outcome from your workers’ compensation case, so follow them as closely as possible.
If you want to drive anywhere in the United States, you need insurance. Insurance is a fact of life. You need proof of insurance to drive, you need health insurance, you need life insurance. The list of reasons why you may find you are on a search for insurance is extensive. The search for auto insurance is one of the most searched for items. If you have a felony conviction, you may find that conviction is affecting your insurance rates.
Most people know that a criminal record can have some serious repercussions. It can affect where you are able to rent an apartment. A criminal record can affect your ability to get a job. A little-known fact is that a criminal record can affect your auto insurance rates. Unfortunately, it is not only felony convictions that will affect your auto insurance rate. A misdemeanor conviction can also affect your rates.
However, not every conviction will affect how much you pay for auto insurance. The type of crime you were convicted of plays a bigger role in whether you can expect to pay more than whether it is a felony conviction or a misdemeanor conviction. In any case, crime truly does not pay when it comes to how much you are going to pay to keep your car legally on the road.
At the top of the list of convictions that are going to raise your rates is a DUI conviction. Driving Under the Influence or Driving While Intoxicated convictions make you a high risk to an insurance company, and because of that risk, you are going to have to pay higher rates for a while. However, even in the case of a DUI conviction, the circumstances of the arrest will play a role in exactly how high those rates climb.
If you are pulled for a DUI on the open road after smashing into a few mailboxes and causing property damage, the charge is different from when you are stopped at a DUI checkpoint. About 25% of DUI arrests in California happened in LA County, and many of those arrests were at checkpoints. Being stopped at a checkpoint means that there are no “aggravating” factors.
Underwriters may look more favorably on you if there were no aggravating factors. About 110,400 underwriters in 2018 worked directly with insurance carriers (about 42% overall) to write policies. They are the people that make decisions about your rates.
There are some misdemeanor convictions that will drive your rates up, including reckless driving, speeding, and fraud. The underwriters will look at the complete picture when they are making decisions about what type of risk you are and then adjust the rates accordingly. There are a lot of convictions that can affect how much you will pay.
It is not all bad news. Insurance rates can vary widely, even with a conviction on your record. You may have to dig a little deeper to find a plan that will fit into your budget, but it is possible to find a plan that will provide you with coverage and stay within the high-end of your budget. It is easy to get your research done online before you make an appointment with an insurance agent. On average, about 48% of people will research for two weeks before they make an appointment.
Another good piece of news is the further away you get from that conviction the lower your rates will go. Time can play a big factor in taking some of the heat off, as long as you do not get into the type of trouble that will affect your rates. Once you have paid your dues and some time has passed, giving you an opportunity to prove yourself, your rates will go way down.
It can be a hassle for a little while to have to pay top dollar to be insured but as time moves forward your rates will come down. You do want to be sure that you search for the right plan as your new plan is getting ready to expire. You may be surprised how much you can save after a year of paying for a policy without having any incidents.
The Covid-19 pandemic changed life for two years and there are definitely still elements of what life was in the world today. No doubt there were some terrible things that happened. People lost their lives and their jobs. But there were also positives that came out of it. We’re going to highlight the lesson we can learn from this pandemic, particularly some personal finance lessons we can learn.
This new type of work does not apply to everyone and I don’t like leaving people out, but this needs to be talked about. Working from home and articles about it took over during the pandemic and continue to be discussed.
Working from home, at least from some of those articles and studies, appears to be a net positive for employees and employers. Let time commuting, less overhead costs, more productivity thanks to no commute, increased job satisfaction, and improved work-life balance.
Thanks to the work-from-home setup, people who were able to do that moved out of the city or rented an Airbnb for an extended amount of time. In either case, those people were, likely, able to reduce their housing costs by moving to the suburbs or giving themself a little vacation/change of scenery.
A lot of people saved money during the pandemic thanks to stimulus payments. In April of 2020, the personal savings rate for Americans was 33%. In March of 2021, the personal savings rate for Americans was 26.6%.
The savings rate has fallen since then but is still above 12% which is higher than it was before the pandemic (less than 10%).
According to the National Bureau of Economic Research (NBER), most Americans either saved or paid down debt with the majority of their stimulus payments. 40% of the stimulus payment was spent, 30% was saved and another 30% was used to pay down debt.
I think there were a lot of personal finance lessons that can be learned from the pandemic. Here’s a list of them below:
The future was very uncertain so people were more conservative with their spending and less conservative with their savings. That mindset shouldn’t change. The future, in principle, is uncertain. We do not know what tomorrow holds, so saving for a rainy day/goals/retirement is very important.
At the very beginning of the pandemic, you couldn’t go anywhere. Quarantine and lockdown orders came in right away. Instead of getting together in person, people utilized Facetime, phone calls, and Zoom. I, personally, had group Zooms with family members where we played and had conversations like we would if we were in person.
Early in the pandemic, the market tanked. We lost over 30% in six weeks. Granted, it came right back up not long after, but that might not always be the case. If you don’t have time to ride out the ebbs and flows of the market, it’s important you get your asset allocation right. Talk with your adviser to make sure your investment matches your time horizon and risk tolerance.
You never know when your job and your ability to earn can be taken from you. Some people lost their jobs, some people were furloughed, and some people just weren’t able to go to work. If you don’t have an income, the only other part of the balance sheet you can affect is your expenses. Get rid of your debt. That’ll help you reduce your expenses in case that happens (you can also save more).
Get life insurance. A lot of people passed away during the pandemic. If you contribute income to your household, you need to make sure you financially protect the people that rely on your income.
5 Personal Finance Tips from the Pandemic
How to Regain Control of Your Finances Amid the Pandemic
How to Save Money on Your Post Pandemic Vacation
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
At the end of 2021, the new 2022 Medicare premiums, Medicare Advantage plans, and Part D plans were announced. Many people were shocked that the Medicare Part B premium increased more than $20 per month. Those who were enrolled or looking to enroll in a Medicare Supplement Plan G in 2022 wondered what the cost of that plan would be. [Read more…]
There’s always talk about home-buying and mortgages, but with interest rates being at all-time lows over the past few years, I feel like the talk about those things have picked up. Not only that, interest rates are likely going up this year so people are trying to get in before it’s too late. In this post, I want to talk about mortgages, how they work, and what happens when applying for a mortgage.
A mortgage is a loan you get from the bank or another lender to buy a house. When you submit an offer to buy a house, you’ll apply for a mortgage, and it’s a very involved process. More on that later.
In a mortgage, you’ll have options for what your term is. Your typical options are 15-year, 20-year, and 30-year.
You’ll also have to make a down payment. Current trends show that a lower down payment is pretty common. Depending on the type of loan, you can put down 3+%. And how much you put down matters. If you put down less than 20%, you’ll have to pay Primary Mortgage Insurance (PMI).
Here are the pieces of your typical mortgage payment – principal, interest, taxes and insurance, and PMI (if applicable). Taxes and insurance are commonly put in an escrow account and paid when they’re due by the lender.
From application to closing, it’s about 45-60 days. During that period, you’ll go through underwriting. In underwriting, they’ll have you submit documentation to confirm your credit report, annual income, current assets and liabilities, employment information, prior tax returns, among other things.
After you’ve cleared underwriting and they’ve confirmed everything, you’ll head to closing. At closing, you’ll sign a lot of papers. You’ll likely need to bring your checkbook with you as well.
There are closing costs associated with your mortgage. Some of these can be added to your total mortgage and some of them need to be paid. Closing costs are normally 3%-6% of the total mortgage and can include real estate commissions, taxes, insurance premiums, title fees, and record filing fees.
And if you’re buying, you’ll also need to write a check for the down payment.
There is a slough of factors you need to meet when applying for a mortgage. Credit score matters. Usually, you’ll need at least a 620 credit score (all else being equal) to get a mortgage. Though the better the credit score, the better interest rate you’ll get.
The debt to income ratio needs to be under 50%. The lower the debt to income ratio (all else being equal) the more you can afford. If you have a 45% debt to income ratio and can afford a $250,000 mortgage, you’d probably be able to afford a $300,000 if your debt to income ratio is 25% (this is just an example, I didn’t do the math on this).
Condition of the home. With an FHA mortgage, they are a little pickier on the condition of your home. Usually, it’s just the outside of the home they’re picky with. Chipped paint is a typical thing they take issue with, so just be aware of that.
Applying for a mortgage is necessary for most people so it’s important you understand how they work.
Understanding 15-Year vs. 30-Year Mortgages in the USA
What to do when you’re one month behind on your mortgage
Why Financial Literacy is Important
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
When you’re looking for term life insurance, the number of options that are available is often overwhelming. However, if you’re looking for a company that doesn’t require medical exams and can provide you with fast coverage, Bestow might be your perfect match. If you are wondering whether Bestow is the best option for you, here’s what you need to know about the company, as well as a look at the pros and cons of using Bestow.
Bestow is a term life insurance policy portal that uses a streamlined online application and algorithm-supported calculations to determine if a partner insurer can extend you coverage. It’s important to note that Bestow currently acts only as an agent or broker, so any coverage you get isn’t technically from Bestow. The company does have plans to become a fully licensed insurer, though it isn’t clear when that’ll occur.
At Bestow, speed and convenience are both priorities, something that may appeal to many prospective customers. However, as with all companies, there can be some drawbacks to going this route.
The main pros of using Bestow are speed and convenience. The application process only takes a few minutes and, since a medical exam is never a requirement, you can wrap everything up in no time. Plus, everything is online, so you can get it all done from the comfort of home.
Another benefit of Bestow is that your coverage – should you decide to purchase it – begins right away. There aren’t any waiting periods or setup delays, giving you immediate peace of mind.
Bestow doesn’t work on commission, so you don’t have to worry about being pressured into a plan that isn’t a good fit. Instead, you’ll get options that are selected for your situation, not the amount of money they generate for the company.
Finally, Bestow works with an A+ rated carrier. While there is a higher rating companies can get (A++), A+ is still incredibly reliable, which can make you feel more confident about moving forward with a longer policy if that’s what you’re after.
As with all term life insurance options, there are some drawbacks to using Bestow. One of the biggest is that coverage is only available up to $1.5 million. While that may sound like a lot, other places do offer policy options far above that mark.
Additionally, Bestow only supports term life insurance. If you’re looking for another kind of coverage, Bestow isn’t designed to meet your needs.
Even if you’re looking for term life, not everyone qualifies for coverage either. While there isn’t a medical exam, you do have to supply some details about your health history, and certain conditions make you ineligible for coverage.
Age restrictions do limit many people’s options, too. While the company does have term lengths as high as 30 years and can supply coverage to people up to 60 years old, that doesn’t mean everyone age 60 and younger has access to 30-year terms.
Instead, for a 30-year policy, you have to be a woman under the age of 41 or a man under the age of 40 and a non-tobacco user. For tobacco users, the age cutoffs are 31 and 30, respectively. The highest age for a 25-year policy is 45, and 20- and 15-year policies are cut off at 50 and 55, respectively. If you’re above the age of 55, a 10-year term is the most you can get.
When it comes to coverage amounts, Bestow isn’t necessarily the most expensive. However, there are more affordable options available.
Generally speaking, Bestow could be a solid place for term life insurance for many people, particularly younger adults who aren’t tobacco users. However, anyone age 60 and under looking for coverage who doesn’t want a cumbersome application process or medical exams should keep Bestow in mind, too.
In the end, getting a quote from Bestow is completely free. As a result, you can find out what coverage options are available to you specifically, all without having to commit. Then, if there’s a plan that meets your needs, you can finalize the purchase, allowing you to have immediate coverage.
If you’re looking for term life insurance and you need it fast, Bestow could be your answer. You can find affordable plans with ease and get instant coverage upon approval, all from the comfort of your home. Head on over to the Bestow website to learn more today.
Can you think of any other pros and cons of Bestow that people should know about? Have you used Bestow and want to discuss your experience? Share your thoughts in the comments below.
Read More:
Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.
Healthcare costs can add up quickly. However, if you’re using out-of-network medical services. The damage to your financial health could be significant. If you are wondering what kind of impacts out-of-network providers can have on your budget. Here’s what you need to know.
An out-of-network provider is a healthcare facility or medical professional that isn’t affiliated with your health insurance coverage. They aren’t part of your insurer’s medical care network.
Medical networks are groups of doctors, hospitals, and facilities that have a contract with your insurance provider. That contract outlines various details about care. Particularly when it comes to the rates they can charge insured patients.
It’s important to note that out-of-network medical professionals can work for in-network facilities. When that happens, any facility-related charges are bound by the contract. However, services provided by the medical professional are not.
When patients use out-of-network medical providers. They end up paying different rates for services than if they used an in-network provider. The out-of-network provider isn’t bound by a contract with your insurer. Thus, allowing them to set their own prices for services.
Insurers may also set separate coverage rates for using in-network and out-of-network doctors. For example, the percentage of the charge that the insurer will cover, copay amounts, and other details may be different. The rates are less favorable if you use out-of-network providers.
In some cases, insurers may not cover any of the costs associated with out-of-network care. When this happens, the patient is responsible for the full bill regardless of whether the insurer handles some of the expense if an in-network provider was used.
Cumulatively, this means that out-of-network medical services cost patients more money. Providers may charge higher prices, and the insurer may cover less of the cost. Anything not handled by your insurance company is your financial responsibility, so you’ll end up with a higher bill by not staying in-network.
Often, healthcare insurance and medical bills are quite costly, even when you use in-network providers. However, if you go out of network, the out-of-pocket costs are even higher. That can put a significant strain on your budget, making it hard to cover your living expenses while you repay the debt.
In the worst-case scenario, the higher costs might actually be unaffordable. If that happens, you may fall behind in repaying your medical bills, causing the account to go into delinquency or leading the provider to send the account to collections. At times, it may become so burdensome that bankruptcy seems like the best option, a choice that can have long-lasting effects on your credit report and score.
Can you think of other ways that out-of-network medical services impact your financial health? Share your thoughts in the comments below.
Read More:
Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.