Pros and Cons of Secured Student Credit Cards

Many college, and even high school, students have a need for carrying a credit card. Often, however, these students are not yet financially responsible for themselves and still rely on their parents to help take care of their financial responsibilities. Therefore, secured student credit cards may be a great option for parents with children who are still in school. Nonetheless, the pros and cons of secured student credit cards need to weighed in order to determine if they are the right choice for you.

Pro: Secured Student Credit Cards Allow You to Monitor Spending

Secured credit cards are different from traditional credit cards in that you put funds on the credit card ahead of time. Therefore, the only money that is spent with the card is the money that is put on to it. In other words, a line of credit is not extended. Therefore, you don't have to worry about your child creating a humongous debt that you have to pay for.

In addition to preventing your child from going into debt, a secured student credit card also allows you to set your child up with an allowance. You can determine how much money you want to give your child to spend each month and you deposit the money onto the card. Depositing money onto these cards is easy. You can set it up so that a portion of your check is deposited onto the credit card each payday. Or, you can send money to the credit card company or deposit the money at select locations. This makes it much easier to get money to your child quickly if needed.

Con: Secured Student Credit Cards have a Number of Associated Fees

Although secured student credit cards allow you to monitor your child's spending habits, there are a number of fees associated with these guards. Generally, there is a fee to set the account up in the first place. Often, there are also annual fees and even monthly fees. In addition, each time you deposit money onto the card, you are usually assessed a small fee. All of these fees add up and can make the student credit card quite costly. Of course, these costs are still less then paying late fees or paying a large debt incurred with a line of credit.

Pro: Secured Student Credit Cards Provide Freedom and Flexibility

One of the best pros of credit card offers for college students or high school students is that they allow your child to have the freedom and flexibility that is part of being a credit card holder. These cards do not look any different from traditional credit cards and are accepted at all of the same places. Therefore, your child can use the secured student credit card to purchases necessary items without having to ask you for it or making you have to go out and buy the item.

This is particularly helpful for college students when it comes to purchasing books and other school supplies, as the college may be located pretty far away from home. This makes it highly impractical for you to come to the school to make purchases for your child. Similarly, sending checks can take too long and can make your college student late in purchasing items he or she needs for school.

Pro: Secured Student Credit Cards Teach your Child Financial Responsibility

One of the best perks of a secured student credit card is that it starts your child down the road of financial responsibility. When you deposit money onto the card, your child has to learn how to responsibly use the money provided. In addition, most secured student credit cards report to credit bureaus, and the report will be in your child's name. This helps to build a credit history for your child, which will make it easier for him or her to acquire loans or other credit cards in the future. Before applying for a card, however, make sure it does report to these bureaus in order to receive this added benefit.

Understanding Life Insurance Underwriting

You should know that once you get your life insurance quotes, there is just one thing standing between you and the issuance of a life insurance policy. And that thing is life insurance underwriting.

What is life insurance underwriting?

Life insurance underwriting is the process of evaluating the amount of risk that you present to the insurance company. When a life insurance company looks at you as a potential policyholder, it must decide how risky your life is and how likely you are to die before they've gotten enough premium payments from you in order to make a profit on the policy.

In order to do this, the insurance company underwriter will look at your age, weight, smoking status and height and determine statistically how likely you are to die. Next, they will factor in your health history, family health and attempt to determine how risky the health history makes you.

The next step is to look at how all of these factors can work together to create combined future health problems and if anything in your health history will work to make you less likely to develop these future problems.

Lastly, the life insurance underwriter will look at your lifestyle and determine whether or not that makes you more or less of a risk. They will look at your moral turpitude, your vocation and your hobbies (avocation). The more risky a lifestyle you lead, the more likely your policy will be declined or charged higher rates.

As an example, when looking at your moral turpitude they might draw conclusions about your lifestyle based on the amount of drinking you do, any sexually transmitted diseases you might have had or any driving-related issues you have had.

When looking at your vocation, the life insurance underwriters might consider any travelling you do for work, what type of work you do and the amount of risk it presents to your life based on the actual duties of the occupation and the kinds of situations your work might put you in.

Lastly, looking at your hobbies, your life insurance underwriters will determine whether there is any kind of innate danger within your hobbies. For instance, if you enjoy finger painting, then you have a very low-risk hobby with little opportunity for injury or death. But if your hobby is motocross rating, then your mortality opportunities are exponentially increased and your underwriters will be more likely to rate or decline your policy.

Insurance: Choosing Term, Whole, or Others

There are so many ways to have your life insured and your decision can't be driven completely by cost. Following will be your education on the different kinds and types of ways to insure your family's security if you die prematurely; use this guide to make an informed decision that will work for your happiness. Term Insurance If you need to be insured for a specific number of years because you are working a risky job or for any other reason fear you are living with an increased chance of death, this is the category for you. In exchange for a monthly (or annual) premium, those you leave behind would receive an agreed upon payment of money to secure their futures without you. Going into your decision, you'll need to have a term in mind. It might be 5 years, 10 years, or whatever length you can negotiate with the agent. You're going to have to pay a high premium over a short period of time, but less for longer. You'll also have to determine the "face amount". This is the payout your family would receive in the unfortunate event of your death. Almost all insurance company will put terms, premiums, and face amounts in all sorts of different combinations, so it can be difficult to find a match for you, but don't settle for what you don't need. There are three subtypes: Level: Purchased in periods of 5 years at a fixed premium, it is great for financial planning. Annual Renewable: With this, you are only covered for a year, but the price you received is guaranteed for renewal for the following years. Mortgage: Your relatives would receive the amount of your home mortgage upon your death, and you pay a level premium. Whole Life You get a level premium and guaranteed money. The premiums, death benefits, and cash values are all guaranteed with no tricky fees. Unfortunately, you won't get as competitive a face value or premium here. However, over the course of a life, the amount you pay would become level with term insurance on the whole. You should also check into the company's dividends policy. Universal Life These are insurance packages that, as long as you make your premium payments, the insurer cannot cancel except for fraud, and are more flexible about the term, interest rate of return, and premium. Over time, the payout becomes less, and the policy essentially deteriorates with interest payments. One nice thing though is that if you reach a set age, say 100 years old, you receive the death benefit. If you want flexibility now, this is a good option, but ultimately it isn't worth as much. Limited Pay You pay all the premiums in the early years of the policy, and you retain the benefit of the policy until a set age. Usually it is around retirement. Life insurance is a tricky topic, but with proper research you can find the life insurance policy that is right for you. Check online for life insurance quotes to make sure you get a good deal, but don't get the wrong type of coverage - it will waste more money than you save.

Life Insurance Riders: Additional Insured Riders

You should know that your life insurance policy doesn't have to just cover you. In fact, you can simplify your life and budget by adding family coverage riders to your life insurance policy. These riders provide affordable coverage for your spouse and children.

Child rider coverage

You can buy life insurance for your children through a child rider on your policy. Generally, the purchase of one child rider will cover all children that you have, including those that you adopt. The rider generally offers $10,000-$20,000 (in increments of $5,000) in insurance coverage for each child and has a low premium expense. The rider is often convertible into individual policies once the children are of age. As you continue to have or adopt children, make sure you contact your insurer and supply them with the names of your children as well as dates of birth and social security numbers.

Spouse rider coverage

If you want to cover your spouse on the same policy you have, you can buy a spouse rider. A spouse rider pays a death benefit if your spouse should die before you do. It is important to understand that if your spouse dies after you die, there is usually no death benefit paid to your spouse's beneficiary. In addition, they will have no access to cash value accumulation since the policy and cash values are owned by you, not the spouse. Spouse riders do not always offer the same extent of insurance death benefit as an individual policy would so it is important to make sure that it offers you and your family enough coverage to be financially helpful. Souse riders are generally not convertible into individual policies, unlike child riders. In the event of a divorce, a spouse rider will become invalid but you must still notify your insurer so that they do not continue to charge you the additional premiums.

Remember, every insurance company is different and has their own approach to offering a rider. This article series on riders is meant to give a general overview of options. It is not an exhaustive list of available riders and does not reflect the rules or policies of every insurer. Be sure you read the fine print and fully understand the riders you are thinking of adding to your policy before you commit to them. Remember to also explore the benefits of additional insured riders against the benefit of buying individual policies for your family members.

The Full Story About HMO

You should know when you are searching for low cost health insurance an HMO plan is likely to come across your radar. HMOs, or health maintenance organization plans, offer some of the lowest cost full coverage insurance benefits but they have certain drawbacks.

With an HMO, you will be treated exclusively by doctors and medical treatment centers that are in the HMO network. If you receive treatment from someone outside of this network, unless it is an unpreventable emergency, your claim is likely to be denied. Unlike a PPO, HMOs do not offer any coverage for treatment received outside the network unless it is emergency treatment in an area with no network treatment centers or physicians. So if you have a favorite doctor that you or your children visit, make sure he or she is on the network list before you take out the HMO's cheap health insurance coverage. If you don't, then you will be forced to pay out-of-pocket for the full cost of all your visits to this physician.

With an HMO you are likely to have a copayment amount each time you visit a doctor or treatment facility. The copayments are fixed dollar amounts that will be listed out on your policy and possibly on your insurance card. They do not vary although they may be increased when your policy is renewed.

Some HMO plans have deductibles which is an amount of money that you must pay out-of-pocket before the policy kicks in and pays a benefit. These deductibles are variable and you can choose yours when you take out your policy. The larger your deductible the less expensive your insurance premium will be.

Your policy will also have a limit, or cap, in the amount of benefit you can receive over your lifetime. This protects the insurance company from having to commit to pay too much in benefits. Since the limits are usually set above one million dollars, it's doubtful that most consumers will need to worry about exceeding them.

Remember, check your rates, choose an affordable deductible and a reasonable limit, and check that your favorite physicians are on the network list before you take out an HMO plan. Then your family will be happy, safe, well cared for and not at financial risk.

Is Cheap Home Insurance Good For Business?

With unemployment rates reaching an all time high and economic recovery that brings in new jobs slow to appear, freelancing and working from home are becoming more and more popular among the recently laid off. Whether you have the choice to work at home or not, you need to make sure that your home business is properly insured through your home insurance policy.

Is Cheap Home Insurance Good For Business?

One of the top goals for consumers is to find cheap home insurance that offers them protection against risk. Unfortunately, when you are simply searching for cheap home insurance instead of home insurance that offers good coverage for the activities you use your home for, you could be in trouble. If you choose regular home insurance and do not disclose that you are running a business on site, then you could suffer from unpaid claims, lost equipment and lawsuits resulting from the damages your business or home causes to others.

If you have clients who come on site to your home business, then your home insurance company needs to be made aware of this so that you can get proper liability coverage. If you have equipment at home that is for business use, then your home insurance company needs to know this so that they can cover it properly and you won't have to suffer any loss of use while you scramble for the funds to replace it.

When your clients rely on your continued business to keep THEM in business, then your non-disclosure of home business activities to your home insurance company could result in a slowdown of your production and a financial loss for your clients. This is a dangerous risk as not only could you lose the money you paid in buying your equipment initially, but your clients could sue you because they depended on you to stay productive even after an insurable incident.

In addition to ensuring you have the proper coverage for your home business through your home insurance company, you should also get professional liability coverage so that no business can take your personal assets as a result of a business lawsuit.

So remember, let your home insurance company know about your home business and make sure their policy protects you properly.

Health Insurance Underwriting Overview

There are many different aspects of your health and habits that are taken into consideration when you have a health insurance policy underwritten. These factors work together to create the general risk that you life presents to the insurance company. It is not until all these factors are considered that your insurer can determine whether or not to issue your policy and what premiums to charge. Here are some of the main factors that health insurance underwriters consider when reviewing your health insurance application for approval.

Your medications: The medications you take give a tremendous insight not only on the prior events of your health history, but also on what your doctor thinks might be in the future. For instance, you might not have had a heart attack yet but if your doctor has you on a cholesterol medication, then it is likely that he or she thinks you may be at risk for one in the future. That indicates to a health insurance underwriter that you could be a risky bet.

Your actual health history: The events that comprise your health history give an insight not only into what your health future might hold but also in how you treat and respect yourself. For instance, Type 2 diabetes is often caused by obesity and poor eating choices. If you have Type 2 diabetes then it is unlikely that you eat well or exercise, which puts you at risk for a whole host of additional health problems.

Your family history: DNA ruins a lot of things health wise. If heart disease runs in your family then you are much more likely to suffer from it eventually. The same can be said for cancer, obesity, diabetes and certain mental illnesses. Knowing that someone in your family has suffered with these issues could change how a health insurance underwriter views your application for coverage-even if you are in perfect health.

Your weight and height: Your weight and height indicate how well-proportioned you are. Someone who weighs 300 pounds and is 5'3" is much more likely to be considered obese than someone who is 6'5" and weighs the same.

Smoking status: If you are a smoker-even an occasional lighter upper-then you are putting your body at risk for cancer, lung disease, emphysema and more. This will not be looked upon favorably by the underwriters reviewing your health insurance application.

Short-Term About Health Insurance

There can be times in your life when you need a temporary health insurance option to help you and your family. It may be while you are in between jobs or while you wait for another group policy to begin, but if you no longer have access to COBRA coverage or if you need a less expensive option then a short-term health insurance policy might be a good option for you.

When you get health insurance quotes online, short-term health insurance is one type of insurance you can get a quote for. They are usually inexpensive since they cover a very limited period of time and the likelihood of having significant claims occur during this period is low. That means that the insurance company does not take on a great amount of risk when insuring you.

The Downside of Short-Term Health Insurance

Much like catastrophic insurance policies, short-term health insurance policies will not likely count as creditable coverage under HIPAA. This can have a major impact on your future health insurance purchases and can mean that your pre-existing conditions can be excluded for a limited period of time from group policy coverage. It also means that when you have a short-term health insurance policy, you may not qualify for coverage under HIPAA. These are important considerations for individuals opting for short-term coverage instead of COBRA.

Speaking of pre-existing conditions, short-term health insurance policies generally exclude them from coverage. In addition, short-term plans often don't provide any benefits for preventative care or routine physicals.

The need for short-term health insurance policies is limited. They are not a good fit for every family and you should research a plan in full after getting online health insurance quotes in order to make sure it is a good fit for you and your family.