What to do when your life insurance application gets denied?

Most of the time, the reason why people buy life insurance is because of the silent fear that is always loitering around us– what if I suddenly die? Unless you can see right to the future, more often than not, you are fearful of what could happen next. People die every day. Accidents happen every time. Thousands are diagnosed with severe medical conditions daily.

 

Who knows when is your unlucky day, right?

 

To remedy the negative repercussions of an uncertain future, the concept of life insurance emerged. Depending on the policies of your life insurance, you can rest assured that if the inevitable happens, the people who are most dear to you are covered.

 

It serves as a guarantee in case something happened to you.

 

Those who faced more danger than most people fall into the ‘impaired risk market.’ Essentially, this entails that your risk is ‘impaired.’ There’s something in you that increases your chance to die early.

 

Health complications like a cancer diagnosis, severe tuberculosis, previous stroke records, and diabetes can make an insurance company have second thoughts on whether to approve your insurance application or not. Ultimately, falling into the ‘risk impaired’ category can lead to your life insurance to get denied.

 

Your life insurance table ratings are based on factors like previous criminal activities, dangerous hobbies, prior conviction record, hazardous work conditions, and financial incapacity.

 

When your insurance application gets denied, it is only reasonable to feel upset and disappointed. Perhaps, you feel betrayed? However, do not let these feelings affect your mental clarity.

 

Here are three things that you should do when your insurance application gets denied

 

  1. Know why your insurance application gets denied

 

An insurance company or insurer will gather a lot of information from a variety of sources first before they reject your application. They do this to gauge or assess your risk as a prospective customer. Depending on your risk, your application can be postponed, rated, or at worst —be denied. To clarify the reason why an insurer denied your application, you should request additional information.

 

When an insurance company accepted your request, the carrier will present the necessary information on why your application was rejected whether it was because of your present examination results, previous conviction record, impaired medical history or something else.

 

  1. Verify the result

 

To ensure that there was a legitimate reason regarding the rejection of your insurance application, confirm if the data that was given to the underwriter is correct. When the results of your medical examination are poor or impaired, authenticate it with a registered physician. More often than not, an insurance company can deny an application solely due to new or undiagnosed laboratory results—even if the cause of concern is shallow.

 

  1. Get a professional agent

 

When push comes to shove, the primary thing that you must do is to seek professional help. Even when you spend endless nights and days to thoroughly research an insurance company that is most suitable for you, it does not mean that you can automatically apply for the top insurance company.

 

Getting an agent to work for you will significantly alleviate the weight off your shoulders. Moreover, an experienced agent can look into far better choices and alternatives.

 

What are the disadvantages of a home equity loan?

What is a home equity loan?

 

A home equity loan is a kind of mortgage loan wherein the borrower utilizes the equity of his/her home as collateral. The amount of the loan depends on the price of the house. An appraiser from a lending institution shall be the one to determine the value of the property.

 

The main disadvantages of a home equity loan:

 

Interest Rates

 

Home equity loans generally have fixed interest rates, but they often come with variable interest rates. If you want to pay back your loan immediately, you should thoroughly review your interest rate.

 

At first, the adjustable-rate-mortgage (ARM) interest rate may seem manageable, but it can exponentially grow over time. The accumulated amount of interest rate will make your monthly payments extra hard to pay.

 

It is of maximum importance to research and compare the terms and conditions of different lenders. Moreover, it would be best if you become aware of the varying interest rates of their loans. On top of that, also calculate the interest rate of the home equity loan— before you even borrow. Failure to do so can cost you your home-sweet-home. So beware!

 

Amount of loans heavily subjected to the housing market

 

Credit cards and home-equity loans are similar to each other in the sense that both are a lump sum that needs to be paid at once. Also, both have maximum limits laid down by law. The limit threshold of home equity loan usually is around 70 to 85% of your home value—based on the sort of home equity loan you are applying for. Essentially, this makes you unable to borrow as much when a case of a decline in the housing market happen.

 

Suppose that you urgently needed money, so you decided to apply for a home equity loan. If a recession in the housing market is occurring, the value of your home will decrease. Thus, it will force you to settle down for a lesser amount than what you initially intended.

 

Tax

 

While home equity loans or credit lines can make it possible for you to make a tax cut, your loan payment may not be deductible to the extent that you want.

 

The federal tax deduction only subtracts the interest of a home equity loan depends on the percentage of an interest that you are paying on a home equity loan, instead of the total sum.

 

Furthermore, the maximum deduction can be quickly paid by homeowners in a high tax category, which means that the interest of home equity loan is not affected by the amount of tax that they shall pay.

 

What are the included costs in the mortgage refinance?

Mortgage points (or Discount points)

 

Mortgage points are charges paid to the lender directly at closing, in exchange for a decreased interest rate. This can reduce your mortgage payments every month. One point is equivalent to a 1% charge of your mortgage. Mortgage lenders often charge points to make an instant profit from refinancing.

 

No-Cost Refinance

 

A refinance for a mortgage generally leads to out-of-pocket costs to take account of items like lender fees or services of third parties. Principally, no-cost refinancing means that you do not pay such charges directly. Lenders can offer borrowers an optional no-cost refinancing to decrease the amount of money needed to be paid upfront.

 

In hope for a higher return of interest rates,  lenders offer to cover refinancing costs for their clients.

Also, refinancing costs are sometimes added to the refinanced loan. All of these could lead to a more significant long-term mortgage rate costs compared if you paid for the refinancing out-of-pocket.

 

Mortgage Insurance

 

Mortgage can make pricey purchases manageable to those who do not have enough funds. It is done through spanning and dividing your payments over some time—with an interest rate. You must then pay back the loan with its interest. If you failed to pay back the loan—the mortgage lender (usually a bank) could take your house through a legal process called foreclosure.

 

Mortgage insurance is simply an insurance policy that protects the property against damage. Essentially, it means that the lender is also protected against economic loss if the planned mortgage payments are not made.

 

 

 

Prepayment Penalty

 

Sometimes, paying your debt too early can be harmful. It is especially true when your loan terms contain a penalty for paying a debt in advance. To put this into perspective, if you paid your mortgage off prematurely, you would then be penalized because you paid off your debt early. It is wise to inspect your present loan terms and conditions to see if there is a penalty for doing prepayments. Keep in mind that the sanctions would increase the refinancing costs, so be cautious.

 

 

Fees

 

Refinancing includes an application fee for the loan to be reviewed. The fee finances the work needed to determine the worth of your credit. According to the Federal Reserve, application charges can vary from $75 to $300.

 

Other refinance fees include:

 

  • Attorney or legal fee
  • Title fees
  • Recording fee
  • Origination fee
  • Flood certification fee

What should you know before you sign a legal release?

Legal Release: What is it, and how it will affect you?

 

In its simplest definition, a Legal Release is a form of  legal agreement between two parties: the releasee and the releasor.

 

Signing it means that the releasor will not make any legal complaint and action against the releasee, in exchange for cash or some other compensation.

 

To get the full implication of what a legal release is, imagine that you’re driving on a chilly Sunday morning when suddenly your car got hit by another vehicle. Your car got wrecked, but fortunately, you’re okay— aside from a few minor wounds and a broken arm.

 

The driver at fault (and his insurer) might offer for a quick settlement by encouraging you to sign a legal release. He proposed that you sign it as a form of recompensation for you not to sue him.

 

(Note: In this example, the driver at fault is the releasee while you’re the releasor)

 

With a signed legal release, the driver at fault can settle down any legal obligations and free himself from the liabilities associated with the accident.

 

On hindsight, this is convenient because you would not be stressing yourself when you file for legal claims for personal injury and property damage.

 

  • You would not spend money paying legal fees.
  • You would not waste your time going to court.
  • You would not be attending hearings.

 

In short, when you sign a legal release, it will quickly resolve the issue, right?

 

Well… no.

 

Before signing a legal release, bear these in mind:

 

Don’t be quick to sign

 

While it’s tempting to sign a release to resolve an issue instantly, it is not wise to immediately sign one. See to it that you thoroughly read and understand what it’s all about. Review the terms and condition and make sure that they are just and fair.

 

Some releasees could make an enticing proposition and will especially suggest an excellent offer to persuade you. However, don’t be swayed too easily. Be on guard!

 

Get a lawyer

 

If you have difficulty understanding the legal stuff about your current status,  get a lawyer. A skilled lawyer can adequately address any concerns that you might have, and can also clarify the things that you are unsure about. Though hiring an attorney might seem obvious, most people don’t do this.

 

Get the consent of your insurance company

 

Why? Because of subrogation. Your car insurer shall utilize your legal right to go after the driver at fault, for them to obtain the cash return that they gave to you to cover your accident.

 

Suppose that you sign a legal release without the consent of your car insurance company, the right of your insurance company to legally pursue the driver at fault is now absent. Therefore, your insurance company can refuse to cover your underinsured motorist coverage claim.

Three simple ways to build your credit up

If you need a particular product or a service, but you don’t have enough cash to pay upfront, you can use a credit card to purchase it. But a credit card has what is called a credit limit.

 

What is a credit limit?

 

A credit limit is an utmost amount a credit company can lend you. Sometimes a product or a service is too expensive; even when you have your credit card, still you cannot buy it.

 

For example, suppose that you want to buy the latest smartphone, which costs $899. You don’t have sufficient cash to pay $899 immediately, so you want to use your credit card and pay the smartphone through credit installments. However, even though you have a card, you cannot purchase the smartphone because you’re credit limit is only $500.

 

What can you do to increase your credit limit?

 

increase your credit score.

 

Sounds simple right?

Hmm… if it’s simple why do so many people struggle to build credit then?

 

For them to become confident that you can pay your loans, credit card companies look at the credit history and credit score of a potential client before approving their credit application.

 

As you build your credit, your credit limit increases too. Continuing with the smartphone example, if you attain enough credit, your credit limit can rise to $1000, allowing you to buy the $899 latest phone.

 

Three key ideas to help you build credit:

 

Get a job

 

The first step in credit building is having a steady source of money to fund for your loan repayments. Having a stable and sustainable amount of income are two of the most surefire ways to successfully raise your credit. These are the two foundations upon which the subsequent tips rest upon.

 

Get a credit card and be a responsible cardholder

 

Owning a credit card and keeping it well maintained is one of the most efficient ways to build your credit. The technique is straightforward. You will only borrow money if you can repay it on time. Your good credit record will help your credit to increase undoubtedly.

 

Having a credit card is like killing two birds with one stone: it will allow you to buy the things that you want or need while building your credit—if you use it responsibly.

 

It is also worth noting that some credit card companies offer a special reward if you open an account with them. Make sure that you don’t miss this opportunity!

 

Credit-builder loan

 

The Credit-builder loan primary purpose is to cater to the needs of people to build credit. It is usually offered by small scale financial organizations. You might want to check it out to see if it suits you.

These 4 tips will guarantee your success with rental property business

Rental property business has been steadily growing its popularity in recent years. Most people find it captivating and attractive in the sense that rental property business is one sure way to generate passive income—even without doing ‘anything’.

 

Rental property business: What is it?

 

A rental property business is an endeavor wherein an investor buys and manages one or more profit-making properties. These properties can accommodate one or more units that can be leased to tenants for monthly rental charges.

 

How to be successful in the rental property business?

 

Educate yourself first

 

Your success in a rental property business is highly subjected to your real-estate knowledge. Strive to acquire all of the necessary information that you need, and when you do—your journey to wealth building through rental property business is half-won.

 

Calculate the Return of Investment

 

Before executing your plan of doing a rental property business, compute the Return of Investment (ROI) first.

 

Return of Investment  = (Net Profit/Cost of Investment) x 100

 

Depending at your present financial status and your goals, reflect on how much ROI you need to determine if a rental property business is a good investment.

 

Stay up to date about current affairs in the rental market

 

Having the means to generate a passive income should not make you an irresponsible landlord who sit all day and play computer games. Become aware of the latest news, especially if it can affect your business. Knowing the current trends in the rental market world would tremendously help you and your business grow together.

 

As a landlord, you have to be well informed with regards to the fair market value in your area. You might be setting your rent too high, which can force your tenants to vacate the place.

 

Be a responsible landlord

 

As a landlord, make sure that you will deliver and meet the terms and conditions that you and your tenant agreed into. This would make your tenant feel secure because of your accountability. Thus, they are more likely to respect and stay in your rental property.

A responsible landlord is not only concerned about the status of his rental property, but also to the welfare of those inhabiting it.

 

For example, when a tenant raised a concern about a malfunctioning electrical system in your rental space— it is your responsibility to fix the situation. Overlooking this could lead to significant repercussions such as the tenants vacating your property or even worse, the malfunctioning electrical system could lead to fire— thus burning your property and its inhabitants.

HOW TO START A BUSINESS ON A SHOESTRING BUDGET NOW

Beginning a business is an astounding thought that could enable anybody to improve their satisfaction and increase more opportunity. Nonetheless, it’s frequently an entangled procedure that anybody can get off-base and end up losing their venture. Perusers who need the best odds of progress ought to do their best to restrain use during the beginning times. That way, if something awful occurs, they won’t lose everything and end up in a horrible position. The thoughts beneath should help every single new business person in settling on the correct choices when propelling their unique pursuits. Make sure to put these recommendations without hesitation on the off chance that you need to get things done on a minimal spending plan.

Work from home for whatever length of time that conceivable

In many occurrences, new entrepreneurs can telecommute during the beginning periods of their tasks. Without a doubt, that may cause a few unsettling influences for your accomplice and youngsters, yet they’ll comprehend when you clarify how a lot of money you’re going to spare. Convert an extra room into an office or utilize the carport as your workshop. With a touch of karma, that will help you in decreasing spending while the organization discovers its feet. You can likewise utilize a level of the family unit charges as consumption on your government forms, and that is a reward. Possible that you have a good WiFi connection, nothing should hinder that exhortation. The advantages of telecommuting include:

  • No additional rental installments
  • No requirement for business protection
  • No compelling reason to drive to work
  • Utilize the most recent innovation furthering your potential benefit

All entrepreneurs should become accustomed to utilizing the latest innovation if they need to diminish spending. That could mean putting resources into master programming bundles or using the web to encourage deals. There are heaps of various projects accessible available today that will help people in sparing a great deal of time and exertion. For example, most organization supervisors will utilize:

  • Computerized bookkeeping programming
  • Antivirus and malware programs
  • Video calling apparatuses like Skype
  • Computerized requesting and stock control programming

Advancements achieve the market every day, and that is the reason all business people should keep their fingers on the beat. Just bookmark some business websites like this one and verify the most recent articles once every week for the best outcomes.

 

Become as ingenious as could reasonably be expected

There are numerous manners by which entrepreneurs could end up savvy and spare themselves a fortune. For example, introducing some sunlight based boards on the top of the working environment could diminish month to month outgoings. Additionally, deciding on utilized or reused things could make similar outcomes. Visit http://varnerpipe.com/steel-pipe/for subtleties on how different business visionaries use that technique. You could likewise look through Google to locate some additional tips and traps dependent on your industry. The fundamental standard guideline is that people need to utilize some sound judgment and search for sparing methodologies every day.

Realize when to redistribute

There are a ton of discussions online right now about the idea of re-appropriating and how it encourages entrepreneurs to further their tasks. In spite of prevalent thinking, paying specialists to perform tedious assignments inside the organization will cost not precisely utilizing somebody on a full-time contract. The absolute most prominent employments that entrepreneurs re-appropriate include:

  • Promoting
  • Bookkeeping
  • Client administration

Investigate your activity and attempt to work out, which errands back the workforce off. At that point, check whether it’s conceivable to re-appropriate those occupations to different experts. In practically all examples, you will spare a great deal of time and cash, and that is convenient for individuals in your position.

Continuously perform value examinations for the best arrangements

It’s imperative that all organization managers start playing value correlations before paying for anything. That is because a few providers offer preferable methods over others, and you can’t bear to overspend. In this way, make sure to look at costs for everything like:

  • Business Visas
  • Business credits
  • Cell phone contracts
  • Web inclusion

The 3 common investing mistakes you could make in your retirement

Investing too aggressively

 

Investors tend to take excessive risks to achieve their retirement goals, but doing this can have substantial adverse impacts. If you’re aggressively chasing for a 20%  rate of return, that 20% rate of return can become 75%— loss. So be cautious!

 

Indeed, it is correct that failure can teach you great lessons, especially within the context of investing. However, when nearing  retirement age, you cannot afford to lose your money in some sketchy investments.

 

While it’s true that experience is the best teacher, it is now too late for you to learn the hard way. Instead, you should carefully plan out your investments and strive to become aware as to what and how significant their risks are.

 

Not hiring for a financial expert

 

Due to the drastic technological advancement, acquiring information has never been easier. The internet paved the way for information to be passed quickly from point A to point B.

 

Back in the day, you must need to thoroughly search for the details of something that you don’t know. But today, the internet created the ‘know it all persons’.

 

People who are laying down in bed, holding a smartphone in their hand, and watching a 1 hour investing tutorial on Youtube think that they know it all after a couple of online videos.

 

When investing, especially if it’s for your retirement, you should be extra cautious not to take matters in your own hands.

 

Don’t tamper with something you don’t comprehend. It is like dabbling with an electric powerline to fix your electricity. Tampering it without sufficient knowledge would get you electrocuted at the end. So better hire an expert to do it for you.

 

In finance, this is the case too. Don’t be afraid to seek professional help.

 

Some people think that hiring a financial expert is a waste of money, not realizing that they can potentially lose regrettable of money if they don’t.

 

If your reason for not hiring an expert is—you cannot afford to hire one, I’ll refute that you also can’t afford to lose your money, especially in an investment for retirement.

 

Becoming attached in your investments

 

Most people nearing the age of retirement are fond of this one particular investing technique: the buy-and-hold until you die strategy.

 

Sometimes it is our emotional attachment to our investments that keep us away from growing financially. Do not fall in love with your investments.   Understand when is the right time to let go and sell them.

 

 

Six surefire signs to alert you that your credit card debt is running wild

Sometimes, signs are too subtle for us to identify them. But with these six signs, you could quickly determine if you are in a financial crisis.

 

These six signs could almost guarantee that your credit debt is too massive for you to handle effectively:

 

You’re having a hard time figuring out how to pay

 

When you always experience this, your credit card debt is probably running wild. You might as well consider adopting an ideal budget plan to help you clear your credit debt. Make it your prime focus to kill them off, and make sure that they won’t happen again in the future.

 

You can’t save up money

 

You cannot save money because almost all of your income is allocated to credit debt repayments. This is dangerous, keep in mind that you could incur more debt if you can’t save money. Thus, to manage your debts, you might try to refinance it. However, refinancing could  increase your debts even further. If you have this kind of problem, it is a sure sign that your credit debt is out of control.

 

You use a credit card almost every day

 

While a credit card is a convenient way to purchase goods and services, it might be a sign that you do not manage your finances effectively—if you became dependent on it. This is mostly true if you tend to use your card every day so that you can acquire your daily necessities.

 

Your credit application is consistently rejected

 

Banks and other credit companies always check the financial background of their potential clients before approving their application. If you have massive credit card debt, it will reflect in your credit history and credit score. Getting rejected every time should alert you that there is something wrong with regards to your financial status.

 

You’re always late when paying for credit card debts

 

Because you are having a hard time trying to make ends meet, the schedule of when do you pay your debts are always late. If you see this problem recurring, again and again, it is an obvious sign that you have an underlying financial problem. Solve your credit debts as soon as possible, so that the interest rates will not accumulate.

 

Your credit card is maxed out, or you’re above the limit

 

Maxing out your credit card is one way to tell that you might be struggling in your finances, but going above the limit? It’s one of the sure signs that your credit debt is running wild.

 

Keep a good credit history and increase your credit score without being in debt

Before credit card companies approve a prospect’s credit application, they will utilize everything at their disposable to know their financial background first.

 

These include the prospect’s credit history and credit score.

 

Credit History

 

is the accumulated historical credit data that the credit reporting agencies gather to learn about the borrower’s credit background.

 

Credit Score

 

banks and credit card companies assess the likelihood of a prospective borrower to pay back a loan by calculating his/her credit score.

 

To help credit card companies to decide whether to approve or deny your credit application, they will initially analyze your credit history and credit score.

 

So how do you maintain good Credit History, and how will you increase your Credit Score WITHOUT being in debt?

 

Below are some ideas to get you started:

 

Be a responsible cardholder

 

Owning a credit card with no remaining balance if not the best— is one of the best ways to increase your credit score, without acquiring debt. With this, you can gain credit score by virtue of your low debt-to-credit proportion. Furthermore , you can get additional credit score by paying bills on time.

 

Also, it’s important to note that you may receive generous rewards when you open an account in a proper credit card company!

 

To cut a long story short, obtain a credit card, and be responsible for it.

 

Include rent payments in your credit file

 

Rent payments paid on schedule can help you to increase your credit score. Landlords can now report on how the tenants pay their rents through a consumer reporting agency called RentBureau.

 

Paying your rent on schedule is like effectively managing installments debts; thus, it shows that you are accountable and trustworthy.

 

So be a responsible tenant and pay your rent on time!

 

Be an authorized user with someone you can trust

 

When a credit cardholder open a credit card account, he usually has the choice to feature somebody else as an authorized user. Authorized user primarily indicates that a specific person has the power to use their credit card account.

 

Authorized users attain specific privileges such as making payments through that credit card account. Additionally, authorized users usually receive their cards with their names thereon.

 

One of the benefits of being an authorized user is—even though you are using someone else’s credit card, you’re not legally and financially liable for that credit account. On top of that, the records and transactions of that credit card—such as timely payments are typically included in your credit card report.

 

Essentially, it signifies that the status of that credit account will affect your credit score. Hence, it means that if the cardholder is responsible— it’ll reflect on your credit card report.

 

To summarize: you can passively increase your credit report as an authorized user, provided that the original cardholder is a good payer.