Some of the most successful salesmen and women in the world have worked in life insurance at some stage of their career. It is a field much like that of real estate where everybody has to have somewhere to live, and in life insurance everybody has to protect their family, and their creditors, against any loss that would undoubtedly occur if they should die, or become permanently disabled.

Therefore you would think this would be an easy job – surely nobody with any sense of responsibility would want to see their family thrown into poverty should they be no longer able to provide for them? It is not that way in reality however, because life insurance is still a hard sell, often to a wary buyer. It is this very aspect of life insurance that causes doubt in some people’s mind – that of the salesperson’s attitude. Am I being sold this policy because it will boost the salespersons commissions, or are they right and what is being offered is what I really need?

The right insurance company to put your business through will therefore be the one that has its policy holders’ interests in mind at all times and that you never get the feeling you are being used to boost the salesperson’s own personal earnings. All very easy to say of course, but how do you know when it is in your best interest to buy what is being proposed? Your mind can be put to ease if you look further afield than the salesperson you are talking to. Look to the history and reviews you will find online concerning the company he or she is representing. Good insurance companies are more often than not represented by good honest representatives. They are usually successful companies that have lasted the test of time and during that time have won the trust of their policyholders.

When looking at which life insurance company to put your trust in you should first consider your needs. If you are an older person all you might really be worried about would be the cost of your funeral and paying out any debts you might still be carrying, like a credit card balance, or a car loan. It is a similar story for the young unmarried person, but once you start taking on responsibilities such as getting married, buying a home, and starting a family, things change quite dramatically.

When you purchase a home you will be taking on a very large debt and it will take many years to pay it all off. If something was to happen to you as the primary money earner in the family, all could be lost if you died while inadequately insured. The situation could be even more dire if you had a number of young dependants who would be unable to look after themselves for many years to come. In this case you will need considerable life insurance cover, especially over the period when you are most exposed financially.

Another aspect of life insurance that will affect your choice of life insurance company in which to deal with, will be your planning for retirement. If you manage to get through life considerably unscathed, your house being paid for, and the kids all educated and having left home to start their own families, you will still have to finance your retirement years – the years when you can no longer take part in the paid workforce. This should be looked at early in your working life as the longer you can pay into a retirement scheme the more money you will have when you finally retire.

When you understand the type of life insurance you want you can then look to the company that provides the best deal, taking into account the following important points:

• Longevity: Be wary of a fly by night insurance company that you have never heard of before. It is best to stick with a company that has a long track record of many years service behind them. This can be hard in these days of company takeovers and mergers but with a little research online you will be able to track back the history of the company you are interested in dealing with.
• Customer Service: A good life insurance company will put your interests first. They will listen to what you have to say and fully explain to you what they feel would suit your specific situation the best and why they feel this way.
• Reviews: Go online and see what other people are saying about the insurance company you are interested in. If you see any adverse reports follow it through to see if a similar report has been posted by anybody else.
• Premiums: Be careful here because premiums can differ significantly between companies for seemingly similar policies. Make sure you fully understand what premium you will be paying and what you can be expected to receive as a result. Term insurance is cheap when you are young but can be quite expensive when you are older. If you don’t die during the life of your term insurance you will have forfeited your premiums. Whole of life assurance will have an investment component built in whereby you will always carry a certain cash value. This can be a useful type of insurance to carry in order to give you a retirement payout at the end of your working life. It can be taken in conjunction with different amounts of term insurance during your lifetime as circumstances demand at that time. Cheap term insurance is often used to bolster the life insurance portion of superannuation, a specific retirement based scheme.

It is becoming quite common these days for people to buy their life insurance online. If you do this you will have the opportunity to obtain various quotes from many life insurance companies. Study them all carefully, keeping in mind the above points, and you should finish up with the cover you need provided by a substantial trustworthy life insurance company.

This article was written by Will from Life Insurance Finder.

On average, a full one third of the natural hazard damages caused in Australia are attributed to flooding. Floods are a very real and persistent threat to Australian communities around the country. Most flooding is caused by rivers and bodies of water overflowing due to a large amount of rainfall. Flash floods, however, can occur when a short but extremely intense storm produces localised flooding. Storm surge and tsunamis are also serious flood risks, though they’re not as common.

Unfortunately, until recently a variety of land-use decisions as well as the lack of available and/or accurate flood maps have created a situations where it was difficult, at best, to get residential flood coverage. This has all changes in recent years.

Flash Floods, Storm Water and Rainfall Run-Off

These terms are used to identify water which is produced due to a very intense, though short lived storm. It can lead to localised flooding. In most cases, it is described as water which moves toward a natural source of water. Most policies will cover this type of flooding, though this isn’t true for all of them. If you’re at risk for this kind of flood, such as if you live on sloping land, you need to make sure that your flood policy covers damage from this type of flood.

Inland Flood, Riverine and Flooding

These titles are generally given to inundation caused when a river, creek or artificial catchment such as a dam overflows due to a long running storm over a large area. Many insurers will use their own unique language to describe this type of threat. When you get coverage for this type of flood, it is important that you read and fully understand what the insurer means by their definition of the word “flood”. A lot of insurers will actually exclude flood damage from their coverage.  If you believe there is the potential for flooding in your area, then you should definitely read over your policy and be sure that flood damage is included in your coverage. If you don’t have it, you should definitely shop around and find a new policy that includes it, or purchase supplemental flood coverage.

Actions of Sea, Storm Surge, Sea Level Rise

This is used to describe the inundation of an area by the movement of bodies of seawater. These can also be described as a rise in the level of the ocean or “sea waves” and also “high tides and king tides.” Coastal property is often at risk of being affected by these movements as well as the associated damage, like erosion. There is little coverage available for these types of risks. If you’re an owner of property on the coast, you should be sure that you know exactly which types of damages are covered by your insurance as well as what is not covered. If you can’t get coverage, then you might want to take other measures to protect yourself such as working with your local government and other risk management groups to reduce the risk and help create a way to protect your property.

So Why Isn’t There A Common Definition Throughout The Industry?

By using a universal definition for what flooding is, consumers could better understand what was and was not covered under their policy. This would help them to get the appropriate coverage for their property. Back in 2008, there was an application made to the ACCC that insurers should voluntarily adopt such a universal definition. This was a direct result of the confusion of consumers when it came to the different definitions for flooding in the market. Part of this application included a budget for a campaign of consumer awareness as to what flooding is, the nature of it, the definition and mitigation issues.

Unfortunately, the application was opposed by consumer legal groups and the common definition was not adopted by the industry, nor was it authorised by the ACCC. The result is that consumers are still faced with a variety of differing definitions of flooding in their different policies, making it much harder to choose, and even to understand, their insurance policies.

If you don’t understand the definition of flood that is used by your insurer than you need to contact your insurer and clarify any questions that you may have. You should also be sure that the definition suits the risk that is posed to your property.

Are You Covered?

If you’re at risk for floods, then you should read over the terms and conditions of your insurance coverage and determine whether or not you’re covered. You can find the information that you’re looking for in your Products Disclosure Statement (also called the PDS). The restrictions on your coverage will be listed as exclusions and will detail the circumstances under which you are not covered.

You can now get flood insurance in many areas of Australia which have been mapped for flooding and that mapping has been made available to insurance providers. You can expect the cost of your cover to be proportionate to the flood risk posed to your property, as well as the value of your property and assets located there. Don’t assume that you’re covered for floods, read through your PDS and make sure. If you’re still unsure, contact your insurer and clarify any questions that you might have.

Determining Your Risk

You can find flood maps available for many areas around Australia, and these maps are focused on areas where there are rivers or creeks. These maps can also cover places which are historically known to experience localised flooding, whether it’s due to flash floods or other means. For most of the regional areas of Australia, the government as well as other agencies have studied and analysed data and come up with flood maps which show areas which might have a flood event in a 100 year span.  You can use these maps to determine the risk posed to your property.

Timothy Ng is an experienced personal finance writer, specialising in credit card comparison. Check out his guide to best credit cards where he will step you through the process of finding the best credit card.

There’s a lot that you’ll need to know as a borrower, especially if this is your first time buying a new home. You need to choose the right lender and get the right home loan, as this can save you thousands of dollars over the life of your mortgage. To help you on your quest to home ownership, here are a few questions you must ask your lenders.

Which Loan Best Suits Me and My Lifestyle?

You don’t want to get a loan that you’re not going to be able to pay because it doesn’t suit you or your needs at all. Sit down with your lender and explain to them what you have going on and exactly what you’re looking for. This will help you and help them to pick the loan that is best for you.

What Fees Do I Have To Pay?

First and foremost, you need to know if your loan has monthly account keeping fees. With home loans, you’ll find that fees add up very quickly. You should definitely investigate what you have to pay up-front as well as any ongoing charges that you might incur. Make sure to take into account the entire term of your loan, from application costs and insurance to your monthly payments, redraw and any early-exit fees.

Fixed or Variable Rate Loans: Which Is Best For Me?

When you sit down with your lender to talk about your personal finances, this is the time to talk about fixed or variable home loans. Everyone has a different financial situation, so you need to be sure you choose the right rate for you, specifically. Also keep in mind that just because rates are currently in decline doesn’t mean they’re going to stay that way forever. They could just as easily jump again.

How Can I Reduce My Interest Costs?

Interest is calculate every day and charged monthly in arrears for every home loan. If you can find ways to reduce your interest you will save yourself money. Ask the lender if there are any tips or advice they can give you on ways you can lower the interest costs on the loan you’re getting. Some good questions to ask include:

• Can you make extra payments?
• Can you have your salary paid into your mortgage account?
• Can you use a mortgage offset account?

What Will the Repayments Be If Interest Rates Go Up?

Since we’re nearing the bottom of the market, soon there will be nowhere for home loan interest rates to go but up – and they will. You need to think about the future and what can happen when the rates do go up. Do your research and be sure you have a plan of action.

Have your lender calculate the payments at a higher rate, say around 4 to 5 percent higher, and consider whether or not you could still meet your obligations.

Do You Offer Any Professional or Special Product Packages?

Often, lenders offer special rates to preferred customers for any number of reasons. Maybe you work in a specific industry or with a certain organisation. Perhaps you have multiple accounts with the same lender. Maybe you just earn a very high income and they think they’ll get more business from you if they offer your a specific rate. These packages may also offer lower account fees or discounts on investments or insurance products.

Can I Make Repayments Any Way Other Than Monthly?

You can considerably cut your mortgage term and the amount of money you actually spend simply by setting your mortgage payments to occur fortnightly or even weekly. Make sure that you have this option open to you in case you’d like to use it.

We live in a world that truly has no concept of money and budgets. It seems that everyone from the average person to the big banks and even the government is guilty of spending more money then they make and living on borrowed funds. While this is clearly causing a problem in our economy it is also sending a very bad message to our children. We need to stem the tide of the economic disaster by teaching young people how to manage their money in a smart and savvy way.

They need to learn early how to live on the money that they have and how borrowing money actually works. As a parent, this is not going to be an easy task. Most children see the world as something that is theirs for the taking rather then a place where they have to earn their keep. It is normal for them to see the world this way, a parent’s job is to teach them the difference.

Teaching Your Kids About Money & Finance

Earning Money – The first thing that many parents do to teach their children about money is to give them an allowance. However, simply handing out cash to your child every Friday does not really teach them how money is actually earned. Your child can have chores around the house at a very young age. This teaches them responsibility and allows them to actually earn their money. The tasks should be equal to the child’s abilities. A five year old can pick up their own toys and feed the puppy. For those jobs they might earn one dollar a day or five dollars per week.

As they get older the jobs can increase. A teenager is capable of sweeping the floors and taking out the trash and recyclables as well as cleaning up after the pet every day and earn ten or fifteen dollars per week. Keep in mind that there are some tasks, like maintaining his or her bedroom that are just expected and not paid jobs. If they slack off, it is reflected in the amount of their allowance, just as you would be at work.

Spending And Saving Money – Once your child is earning money they will want to spend that money on various items. While you might not agree with all of their expenditures it is important that they get to choose how to spend at least some of the money that they earned. Eventually, they will understand that if they waste it all on frivolous items then they will not have it when they actually need it. In terms of saving, it can be a difficult thing to teach your child. You might insist that they save a certain percentage of everything they earn. Hopefully, they will see their money grow an realise how important saving money truly is.

If you do not want to force them to put it into a traditional savings account you can talk to them about saving for something specific. If you child wants to purchase a new bicycle you can take them to the store and work out how many weeks they would need to save a certain amount of their allowance to buy the bicycle. This will give them incentive to stash their cash away instead of spending every cent they have as soon as they get it.

Taking Out Loans – Teaching children about borrowing money is really quite difficult. As a parent you tend to give them money rather then having them borrow it from you and if it is borrowed you might not be comfortable charging them interest. One way to approach it is to sit down and explain your loan to them.

They probably watch reality television programs where people buy everything, seemingly without cost. It is your job to explain that this is not actually reality. In reality most people purchase homes, cars, and even educations by getting a loan and then paying it back with interest. They also need to understand that a credit card is really a short term loan only at the end of it you do not have a degree or a house or a car, just a pile of stuff that you probably do not need anymore.

Kids should learn early that credit cards are to be used with great care as they can lead to financial disaster. Many banks offer prepaid debit cards which are an excellent way to teach kids about spending on cards without risking them getting into debt. It also allows you to monitor their spending even when you are not with them.

Making Financial Investments – Clearly you are not going to be able to teach young children about the finer points of investing their cash. If you try to explain to them that there is potential for loss they will probably stop listening. When my children were young we sat down with them once they had reached the $500 mark in their personal savings account.

We talked to them about investments and the potential to earn money from their money and the possibility of loss. In order to make them feel better we guaranteed their initial investment. We promised that if they lost money we would pay back the full $500 to them. This allowed them to make choices and watch an investment grow and change with zero risk.

Hopefully, once you have taught your child enough about earning, spending, saving, and investing they will understand the true value of money. It is easy for kids to get caught up in wanting things regardless of cost. But, once they understand what it means to live on the money that you actually have they might be less interested in just spending for the sake of spending. When you get to the point where your child rolls there eyes at the excessive cost of video games and designer clothes you will know that you have done your job right.

Timothy Ng is a personal finance writer, and has a real passion for encouraging people to compare credit cards to ensure they get the best deal. Check out his comprehensive guide to credit card comparison where he provides an in-depth overview and analysis, to help you find a better deal.

Is your home in urgent need of repair? If it is and you do not have enough money to make those repairs then you do have a number of options. A loan is the most obvious answer and there are many different ones to choose from. The equity in your home is one of the best ways to pay for your home repairs.

You basically have two options when it comes to using the equity in your property. The first is a home equity loan and the second is a home equity line of credit. The equity in your home is basically the amount that is left over when you take the amount that you have paid back on your mortgage, away from the value of the home.

For example, if your home is worth $150,000 and you have currently paid off $50,000 that will take your mortgage to $100,000. Out of this you could take out $50,000 worth of equity.

What is a Home Equity Loan?

A home equity loan is known to be like a second mortgage. You borrow a large lump sum of money and that is then repaid over an agreed time period. They mainly tend to have a fixed rate that will last the entire length of the loan.

One advantage to this type of loan is that it will have a low interest rate. This is because you are securing the loan on your home. If you fail to make the repayments then the lender can take your home as collateral.

The fact that your loan is secured on your home also allows you to get the money that you need without a credit check. Even if you have bad credit you will still typically be able to benefit from an equity loan.

This type of equity is ideal for those who need to make large home repairs. Perhaps you need to completely knock down a few walls in the home? Or maybe you need to have the whole place re-wired? If it will cost a large sum of money then a home equity loan could be just what you need. You could also use any left over money to pay off debts and even go on holiday if you wanted to.

What is Home Equity Line of Credit?

Another option that you have is to use home equity line of credit. These are typically more flexible than a home equity loan. You do not need to take out a huge lump sum. Instead you can just borrow what you need and then get more money later on if you need to. Some lenders will give you chequebooks that will give you access to more money when you need it.

Another difference is that a line of credit will have a variable rate rather than a fixed one. So your repayments could either go up or down throughout the lifetime of the loan. If you do choose this option you will have a draw period followed by a repayment period. In the draw period you will spend your time withdrawing money and carrying out your home repairs. There will be a maximum credit limit set by the lender that you cannot go over.

One of the great benefits of the draw period is that it can last for up to 10 years. Then once the repayment period arrives you will need to repay everything that you owe plus interest.

Both of these types of equity have their advantages and disadvantages. Make sure that you know everything that there is to know about each one before you apply for either of them. Both are excellent for making those urgent home repairs.

Many first-time home buyers are very surprised when they find out about the “extra” costs associated with buying a piece of real property. There are many fees, taxes and price tags that go along with that perfect house for your family. Some experts suggest you expect as much as 5% of the sale price in additional costs. Doing your homework before you begin shopping can save you from some nasty surprises when you’re sitting at the closing table.

Let’s take a look at some of the costs that contribute to the true cost of buying a home…

Home Inspections and Valuations

It used to be just a smart thing to do, having a professional inspection conducted of the home before your make your purchase. Now, most lenders require an inspection and this is a cost paid by the buyer. A thorough inspection of the building and its condition, a search for damaging insects, and perhaps a review by an architect can expose potentially dangerous flaws and make sure you are getting your moneys worth.

A Wide Variety of Legal Costs

The legal aspects of buying a home can be significant and it makes good sense to have an attorney ensure everything is done correctly. A simple mistake in the paperwork today can cause huge headaches down the road. Depending on the complexity of the transaction, the age and number of previous owners, even the terms and conditions of your mortgage can have an impact on legal expenses.

Don’t overlook the need for a title search. Having a lawyer review the title history for your new found abode can ensure the transfer is made in good faith. In some cases, Title Insurance may be in order to cover any unexpected claims made against your ownership.

Yes, the Taxman Cometh

It seems that there are fewer and fewer transactions or life events that the taxman does not come calling for. The sale and purchase of a home is one of them. Taxes are levied in a wide variety of ways to a number of different taxing agencies from state to state, even city to city. Suffice it to say that there will be a tax burden laid on the sale of a home and at least some, if not all, of that burden will fall on you the buyer.

Fees from the Bank

Wouldn’t it be a wonderful world if the bank would lend us the money to purchase our homes without interest of fees? While that’s a wonderful fantasy, it is pretty far from the real world. Banks often add on Application Fees, Setup Fees, Funding Fees and the like to cover their costs of initiating the loan.

These fees are most often necessary because the bank that originates your home loan rarely keeps it for the full term of the loan. It is common practice for the originating bank to sell the loan to a servicing bank. Why is that important? Because its the servicing bank that gets to collect the interest you pay each month. To make up for that lost revenue, most banks tack on fees up front. In some cases the seller will agree to pay some or all of these fees but often it is left to the buyer to cover these costs.

Even After the Loan Closes, Private Mortgage Insurance

In almost every case where the borrow finances more than 80% of the home value, the lender will require the buyer to purchase Private Mortgage Insurance, or PMI. This insurance is payable to the lender in the event the borrower defaults on the loan. Depending on the amount financed PMI may raise your monthly payment from a couple of dollars to several hundred.

In the End, Its All Worth It

Yes, there may be other fees and costs we failed to mention here, but these are the biggies. The ones you will feel the most as you are closing in on owning your dream home. While they may be annoying, even frustrating, they are a necessary part of the real estate process and in most cases serve to protect the buyer. After all, it is the home of your dreams…