CREDIT LIFE INSURANCE

You usually take out credit life assurance when you enter into a major financial contract, for example, getting finance for a new car, a new fridge or take out a loan for your child’s education. This type of long-term insurance product is there to protect you or your dependents, should you die or become disabled and cannot replay the loan. Following are some aspects to keep in mind when taking out credit life insurance:

• Read and understand the declarations of the documents you sign. Often, the excitement of buying a new car or fridge sometimes gets in the way of reading the financing agreement and any possible credit life insurance contract you could be entering into. You, then pay too little attention and may end up not being aware of the benefits that you are entitled to.
• When you buy anything on credit make sure whether you have also agreed to buy credit life insurance. If you have, get the details of the insurer, so that you know whom to claim from should you become disabled. Also that your dependents or the beneficiaries in your will know of the cover so that they can claim should you die.
• If you already have sufficient long-term insurance policies in place that you have taken out before to secure the debt, you should not be forced into taking out a new long-term insurance policy. The Long-term Insurance Act (Section 44) makes it clear that you can choose whether you want to take out credit life insurance or use your existing long-term insurance policies to secure the debt. If you decide to take out a new policy, you also have the right to choose the company you prefer to provide you with the policy. If an intermediary is involved, you also have the right to choose whom you would like to use.
• Some policies can include cover for critical illnesses or even retrenchment. You must ask detailed questions about the type of cover that is offered when and if you are purchasing goods that have a credit life insurance portion cover.

However, be aware that your existing long-term insurance policies were probably taken out for other reasons, whereas credit life insurance has been designed to protect you and your family from inheriting a major debt. Very often other long-term insurance policies do not necessarily provide for unique benefits like retrenchment cover.

How to Get Your Health-Care Coverage

Especially for the young and healthy, the prospect of ducking premiums (perhaps vowing to spend a portion of the savings on healthy living) and going without any sort of coverage might be a tempting option. By all accounts it's not a good idea. So, in the interest of keeping our readers healthy, Five for the Money offers strategies for getting health insurance -- or at least lowering health-care costs -- to those working without a net.

1. Buy insurance through Sam's Club. Wal-Mart Stores has taken heat for not providing enough of its hourly employees with health coverage, but a program offered through its Sam's Club warehouse stores could potentially change how Americans buy insurance. Sam's Club members -- the people who pay to shop at the cavernous discount stores -- can now also buy their health insurance through the retailer.Offered with Salt Lake City benefit management outfit Extend Benefits Group, the program is designed to allow Sam's Club members to choose between plans based on their family's needs and budget. For example, a 30-year-old man in Los Angeles could choose from more than 40 plans with monthly premiums ranging from $50 to about $400.Employers can also sign up to get their employees into the program. A Sam's Club spokesman declined to say how many people have signed up for health insurance since the program kicked off in early January, but the store says it has 46 million members.

2. Use a Health Savings Account. For those who can afford it, combining a Health Savings Account (HSA) into medical costs can be an attractive option. Signed into law by President Bush in 2003, the accounts enable people to set aside funds, tax free, to be used for future health care.The money can also be used to fund retirement. The accounts must be paired with an eligible "high-deductible health plan," according to the Treasury Dept.Because they are often coupled with relatively inexpensive insurance policies, HSA users can save money, "especially if they're healthy," says financial adviser Donald Whalen of Alpharetta, Ga. The program provides protection from the costs associated with disastrous medical problems, but not, typically, a family's routine medical expenses. "Insurance is supposed to protect you against catastrophes, it's not supposed to subsidize your doctor's visits," Whalen adds.

3. Work part-time. In addition to placing enormous burdens on individuals, the price of health insurance has forced many employers to reel in their offerings. Nonetheless, part-time employees at a few companies qualify for attractive benefits. For example, Starbucks employees who clock at least 20 hours a week are eligible for health insurance.Start slinging lattes and you'll also be eligible for a 401(k) and stock options. These days, that looks like a bona fide retirement plan, particularly by the flinty standards of the service sector. For many freelancers, the part-time jobs can also be an attractive option because they often offer a degree of flexibility along with the benefits.

4. Find an independent insurance broker. If you're too busy for a part-time job, there are still other avenues available. Whalen says the uninsured often flock to Web sites such as eHealthInsurance.com and INSweb.com, which allow consumers to compare the offerings of different private health insurers. He says it may be smarter to meet with an independent broker first."Being turned down for health insurance is kind of like being declined for credit," Whalen says, in that it can affect how future potential insurers will evaluate you. "It's much better to have someone work with you from the start," to ensure a good fit. He suggests starting the search with the National Association of Health Underwriters, which represents brokers and offers listings on its Web site.

5. Broaden your search. Large employers aren't the only ones offering group plans. A surprising number of professional and independent organizations offer health insurance. In a search for insurance options it's a good idea to check with bar associations, chambers of commerce, and similar groups. A Brooklyn (N.Y.)-based group called Working Today offers a health insurance program to qualifying freelancers.

Tips To Save Money On Your Homeowners Insurance

· Think insurance when buying a home. Get a copy of the insurance loss history of the home you want to buy. Get it inspected so you know that past problems have been properly repaired. The Clue and A-PLUS databases, for example, enable insurers to check the claim history of both the homeowner and the property which the homeowner is purchasing.

· Raise your deductible. Higher deductibles on your home could produce savings of 15% to 30 % or more.

· Upgrade your home. Consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. Make sure to let your insurer know of these upgrades. Find out from your insurer what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes.

· Improve your home security. You can usually get discounts of at least 5% for a smoke detector, burglar alarm or dead bolt locks. Some companies offer to cut your premium by as much as 15% or 20% if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren’t cheap and not every system qualifies for a discount. Before you buy such a system find out what kind your insurer recommends, how much the device would cost and how much you’d save on premiums.

· Buy your home and auto policies from the same insurer. Some companies that sell homeowners, auto and liability coverage will take 5% to 15% off your premium if you buy two or more policies from them.

· Maintain good credit. Increasingly, insurers are using credit- based insurance scores to determine homeowners and auto coverage premiums. All else being equal, a person with a good insurance score will pay much less for insurance than someone with a lower score.

MOVING TIPS

There are things you can do before you move that will help minimize (or avoid) loss or damage of your personal property. If you do most or all of the things listed below, you can be assured of fair and equitable settlement of your claim when there is loss or damage.
Ship only personal property that you own - don’t ship anything for someone else that doesn’t belong to you.
Don’t ship cash, coins, furs, and jewelry. These items are highly susceptible to pilferage.
If you have items of great sentimental value that you cannot bear to lose, do not ship them - take them with you.

Don’t ship important documents such as passports, birth certificates, marriage licenses, or medical records. Arrange to take them with you.
If possible, don’t ship firearms. Try to take them with you. If you must ship them, ensure each appears as a line item on the inventory (including manufacturer, model, and serial number. Disable the firearm in some way, so it cannot be used.

Don’t ship corrosives (including bleach), flammables, or unsealed liquids. These items can destroy or ruin your entire shipment (and, perhaps, someone else’s) if the container(s) leak. In fact, the carrier will most likely refuse to load these kinds of things on their equipment.

Invest some time making a detailed, video inventory of all your property prior to your move. Do yourself a favor - go overboard on this one. Be sure to open up closets, dresser drawers, cabinets, entertainment centers, and buffet doors, etc - don’t forget the garage, back patio and outdoor shed. Do a running dialog during the video, read off model numbers, serial numbers, sizes, dates, etc. Turn on the television, microwave, and washing machine. In addition to a video inventory, prepare a written item-by-item inventory of your collections, such as coins, VHS tapes, albums, CDs, cassettes, baseball cards, sports memorabilia, dolls, and other collectible items. What’s the value of doing all this? First, it documents what you own. Second, if it’s done just few days before your move, it helps to document that major appliances were in working condition at the time of shipment. You should also make a list of the purchase prices and dates of major items, such as furniture, electronic equipment, and art objects, and gather the documentation to prove it: paid bills, credit card slips, canceled checks, pre-shipment appraisals, etc. Keep this information separate from your household goods. Carry it with you or mail it to your next duty station.

If you have a lot of high-value items, consider getting private insurance or request your shipment be released with full replacement value (FRV) protection. See the separate handout on FRV.
You are responsible for preparing most of your items for shipment. Disconnect all computer equipment. Remove ink cartridges from fax machines and printers. Disconnect and disassemble your stereo/home theatre/satellite television system. Disconnect and drain the hoses from your washing machine. Disconnect and drain garden hoses. Drain the gas and oil from your lawn mower.
Think ahead.

Consider having your personal property packed and picked up a few days (even up to a week) in advance of your anticipated departure date. If you wait until the last minute and something goes wrong (say, bad weather or the carrier fails to show up), you may not be able to correct the problem.
Want to preclude problems when unforeseen events prevent your personal property from being packed and picked up at the scheduled time and you can’t delay your departure? Line up a good friend or a trustworthy co-worker to take responsibility for your goods and give that individual a power of attorney to act in your place. Be sure this is someone you trust and can rely upon to act in your best interests.
It’s up to you! It’s packing and pick up time.

In most cases, you are the government’s representative at the time packing and pick up of. If something is not being done properly, it’s up to you to call the transportation officer immediately.
Make sure the packers write adequate descriptions of the contents on the boxes themselves and later on the inventory. While the packers do not have to list every item, they should write the general category of the items on the outside of the boxes. The general category of each box (e.g., CD’s, toys, garage items, etc.) should also be written on the inventory.

Make sure that items that would not logically be packed in a certain box are specifically listed. Examples: tolls packed in a box marked clothes; a lamp packed in a box marked garage items. If you later claim for an item that would not reasonably expected to be found in a certain box, you may not be paid for it.
High-value items absolutely must be listed on the inventory. See the separate handout on high-value items.
Be sure the inventory the carrier prepares lists all of your property. If it gets late in the day, the carrier may want to load the items on their equipment and tell you they’ll complete the inventory back at the warehouse. Tell them NO! Things not listed on your inventory almost never arrive when your shipment gets delivered at destination. Further, chances are slim to none for getting paid on claim for an item that doesn’t appear on the inventory.

Before you sign the inventory and allow the carrier to depart, do a walk through of your residence (look in the closets, under the stairs, and in the basement) to be sure the carrier has taken all of your property.
Ensure all expensive items (e.g., VCRs, stereos, televisions, and cameras) are listed as separate line items on the inventory.
When the carrier prepares the inventory, they will list the condition of your property. You need to pay close attention to the codes they list which show things are scratched, dented, chipped, etc. If you disagree with what the carrier shows on the inventory, discuss it with the carrier and try to get them to change it. If the carrier refuses to change the condition, make sure you take exception on the inventory before you sign and date it (there’s usually space at the bottom of each inventory sheet).

Ensure that whoever prepares your inventory writes legibly. If you can’t read or understand their writing, it’s guaranteed that claim settlement personnel won’t be able to read it if you must file a claim. Also, insist that you get a readable copy of the inventory. Quite often, the carrier wants to stick you with the last copy, which may be impossible to read.

Insist that you receive a copy of the government bill of lading or service order that applies to your shipment. Don’t wait until the day of pickup, because the carrier probably won’t have a copy of it. If you didn’t get a copy when you set up your move, contact the office that made the arrangements and have them furnish you a copy. If you elected full replacement value insurance for your property, you need to be sure block 27 of the GBL is annotated. If it’s not, you won’t have the coverage and it is not something that can be added after the fact.