Saving Up and Planning For Unexpected Expenses

Oct 06, 18 Saving Up and Planning For Unexpected Expenses

“All days are not same. Save for a rainy day. When you don’t work, savings will work for you.”

M.K. Soni

The hurricane season last year left many households in wreck, not just on their properties but also in their finances. The destruction left by the inclement weather forced many people to spend more on unexpected expenses.

Over the past few years, destructive weather disturbances have become common. But while these phenomena are not new nowadays, the sad fact is that only very few American households actually save up for these ‘unexpected’ expenses.

Come to think of it, many of us make budget plans every year (some do it monthly). Some even write their financial plans on creative planners, such as those reviewed at https://getlifeyoudesire.com/. We allot budget for basic necessities, transportation, mortgage, vacation, insurance, etc. But not all of us actually allot money for unexpected expenses. As a result, our finances get drained when these unplanned expenses occur.

Preparing for Sudden Expenses

Aside from storm-related costs, there are many other unanticipated expenses that can arise throughout the year. Emergency home repairs, additional power and heat consumption, car repair bills, annual insurance premiums, sports fees, new membership & subscription fees, medical expenses, and other lump sum expenses. This list can go on and on, as there are endless sudden expenses that you can face.

Saving Up For Unexpected Expenses

Unanticipated expenses can eat up a large sum of your daily budget and even savings. That is why, it is vital that you include it in your annual budget management plan. Here’s how to effectively prepare for these sudden costs.

  1. Identify the common unexpected expenses. Usually, these expenses are seasonal in nature so you can actually foresee them. Some examples of sudden expenses include car repairs, Christmas gifts, car insurance, winter season, dental bills, property taxes, etc.
  2. Review your previous year’s credit card and bank statements. See any irregular expenses or withdrawals. This should help you better identify the sudden expenses you’ve accrued.
  3. Sum up all the amounts paid for unexpected costs that are beyond your monthly paycheck. Divide the sum with your total annual paychecks. So, if you incurred $3,000 for sudden expenses, divide by 24 (if you receive bi-monthly paychecks), then you’ll need to allot $125 for unexpected costs.
  4. Consider it as a recurring expense and pay it up every time you receive your paycheck. For a more organized financial management, you can use the best goal planners that you can find at Get Life You Desire.
  5. Be ready to adjust with your budget and spending habits. You can also start saving small then move up until you reach the target savings. This should help avoid hurting your spending on basic necessities.
  6. Set up electronic transfers that will automatically fund another savings account intended for unexpected expenses. This will help you manage your money better and avoid forgetting your savings.

Once your savings begin to grow, you might be tempted to spend on unnecessary buys. Avoid this itch by thinking of your goals for the savings. Just think that if you spend it now, you’ll end up paying more on debts in case sudden expenses come your way.

 

 

 

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Special Insurance

Feb 05, 16 Special Insurance

There are some types of insurance which are good for pretty much everyone. Homeowner’s insurance, life insurance, health insurance; these are the types of insurance that just about anyone can benefit from having, and that just about anyone can use to save money and be covered (or cover someone else) in the event of a mishap. But there are also special insurance types which are highly viable for specific people, but practically useless to everyone else. Here, we’ll cover a few different types of special insurance you may or may not already be aware of. Consider this an educational piece if you will.

First, take a look at tool insurance. While it’s true that many people own and use tools regularly, the ones who really get hurt the most when their tools break are the ones who use those tools for a living. Handymen, machinists and mechanics all rely on their tools to make a living. Without their tools, they’re essentially out of a job, so for the people who fit into this niche, tool insurance is something that seems a lot less special and a lot more necessary. Most other people who own tools can deal with them being out of commission for a little while, so an insurance policy may not be needed.

Next is actually a type of insurance most people don’t even know exists. Professional athletes of all types have health insurance policies in case they get injured, but there are many types of special insurance here as well. For instance, did you know that boxers actually get their hands insured? Sometimes these policies cover for millions of dollars, like in the event a prize fighter takes a tumble and uses a hand to break their fall, then ends up breaking their hand. This can even happen when beating on a professional punching bag.

This next type of special insurance isn’t actually that uncommon, and people in flatlands and flood plains around the world probably know about it already. It’s flood insurance of course. This type of insurance provides coverage against flash floods, seasonal flooding, natural disasters and other types of water damage which can occur. What sets these policies aside from others is that they aren’t typically included with homeowner’s insurance policies – the flood coverage costs extra, basically. Now, some people can get by without it just fine. On the other hand, there are those who absolutely shouldn’t be without it.

These are just a few of the niche types of insurance which exist. There are many other kinds of policies which are extremely beneficial to an extremely limited number of people as well, but that’s something for another time, unless of course you have something to add. Do any readers here have experience with specialty, niche policies which provide coverage for unique circumstances or interesting projects? We’d all love to hear more about it. In the meantime, if you want to know about all the different kinds of insurance which exist, it’s likely any sales agent would be happy to talk you through it all.

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Do You Need Coverage for Antique and Vintage Collections?

Antiques and vintage collections are fast becoming popular. Aside from being great home interior pieces, these timeless pieces are also great investments. Unlike other assets, antique pieces get pricier as they age.

Almost every household will have a special collection of antiques or heirlooms. Probably you have a collection of intricate jewelries or perfectly carved furniture items, as if they were done with high quality wood router. Considering their price or market value, it’s difficult to imagine if anything bad happens to these priceless belongings. Unfortunately, not all home insurance cover loss or damage of these hard-to-replace valuables. So, if you have a collection of priceless belongings it is best to check with your insurance agent whether your policy covers loss of antique items.

One of the misconceptions is that regular homeowners insurance covers all high value items such as collectibles, vintage, antiques, and family heirlooms. In most of these policies, the coverage is very limited and is often not even enough to cover the actual price of the lost item. For instance, some policies may put a cap of $3,000 for antiques, collectibles and art. If you’re a serial vintage collector, then this meager coverage is definitely not enough to cover your collection’s actual value.

If you think you need additional, specific coverage for these belongings, you can either work with your insurer so that you can add a rider to your current homeowner insurance policy for items that are valued over the standard coverage of your home policy OR you can also take out a different insurance floater for every vintage collection you have in your home.  Talk with your agent to see which approach will benefit you most.

Some people aren’t sure whether they really need to take out a collectible insurance. Here let’s take a look at some scenarios where a collectible insurance could save you:

  • Your vintage furniture pieces gets destroyed by fire
  • Fine art pieces get stolen
  • Autographed memorabilia get drenched in flood water
  • Delicate figurine pieces breaks after an earthquake
  • Catastrophe damages your wine collection

These are just a few unwarranted scenarios where you could lose your prized belongings. Since these possessions are valued in the thousands or may have special connections with your family, it is just wise to protect them by taking out the right insurance policies. An insurance will give you peace of mind while knowing that your treasured possessions are protected from sudden loss.

A lot of vintage and antique collectors are unsure about the worth of their collections. And this is the reason why many do not bother to take out specific insurance. It would be helpful to have your vintage items, collectibles and antiques appraised every now and them. An antiques appraiser can help you determine the worth of your items so you can get the right insurance protection you need.

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What Should You Keep In Mind When You Choose A Sports Insurance

Nov 08, 15 What Should You Keep In Mind When You Choose A Sports Insurance

When you play sports, amateur or professional, there are increased chances of injury. Some of these injuries can be covered by health care insurance while some are not covered in this way. In this case, you might need a sports insurance. Here are things that you should keep in mind when you choose the sports insurance. Find answers to these questions:

  1. What injuries are covered by your health insurance? Read the policy or check with your insurance agent which injuries cover your health insurance. If it covers a wider range of injuries, there may be no need for an additional cost for sports insurance.
  2. What types of sports are in sports insurance policy? You cannot choose any sports insurance. You need to know what type of sports specific sports insurance covers. Look at the list of sports and verify that your sport is on it. This is especially important for some sports that are not as popular and widespread, like, for example, extreme sports.
  3. Does your travel insurance cover sports injuries? If you are in seasonal sports, for example in skiing, perhaps the injuries are covered by travel insurance. The same applies to other sports that may be part of a tour package such as hiking, surfing or something else. In this case, you do not need additional sports insurance.
  4. How much are you professionally in sports? Approach to the sport is very important for insurance. Professional insurance does not only imply compensation for injury and covering the costs of treatment. It implies insurance due to loss of income because of inability to play sports.
  5. How risky is your sport? Some sports are less risky, usually those that require less physical activity and that are individual. Team sports and sports where there is direct contact between athletes have a greater coefficient of risk. Extreme sports have the highest coefficient of risk. Depending on the risk, it is formed the policy.
  6. Does the insurance include insurance of sports equipment? Damage or a loss of equipment can affect the inability to play sports and may cause an injury. If you ride a longboard, you need a reliable and quality longboard like some of these. However, when you invest in equipment, it is desirable that your sports insurance covers its damage.
  7. Are there exclusions? Even with insurance of extreme sports, there are exceptions. So before you sign an insurance policy, you should check whether your sports insurance covers your sport, does it excludes pre-existing medical conditions and similar exclusions.

As you can see, a lot of things need to be considered when you choose a sports insurance. The most important thing is to read carefully all the conditions, and to have a well-informed agent. Perhaps the most important factor with which you can start your insurance consideration is how often and how professional you are into sports. Select the type of insurance that best protects you against potential injuries and accidents accordingly.

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Why A Private Medical Insurance Is Needed

A health insurance or private medical insurance is a supplementary cover in addition to what you are eligible for in the NHS. Some may have it as part of the employee benefits. If you do not have one, and can pay the insurance premiums, you can decide on availing it.

While health care is provided, free of cost by NHS, if you don’t wish to use NHS, it will be difficult to pay for private medical treatment particularly in case of serious illnesses. A private medical insurance is necessary in such situations.

Insurance cover

The cover provided in the private medical insurance is based on the type of policy you purchase. Basic policy covers the cost of treatments such as surgery in day care, inpatient surgery, and tests. Some of the basic policies also cover cost of consultant and specialist outpatient fees, and can pay a meager fixed amount for every night you stay in hospital (NHS hospital only)

Treatments not covered by the policy

If you have preexisting medical conditions, chronic conditions such as diabetes, hypertension, epilepsy, or HIV related illnesses, organ transplants, adventure sports injuries, war injuries, and cosmetic surgery the policy would not cover. Childbirth and pregnancy costs too are not covered. Taking proper care of health can reduce the treatment costs largely. For instance, control of blood sugar will prevent most of the complications that need costly treatments. Similarly back pain can lead to several costly treatment modalities, if you do not take the necessary measure to right your posture. Posture Braces help a great deal in correcting your posture and alleviating back pain and discomfort.

When private medical insurance is not needed

respect doctors - they make your life betterWhen you depend on NHS for all your health care needs, or have insurance through employee benefits, private medical insurance is not needed. Also in case you are not able to pay the premium because your finances restrict you to pay home and car insurance only, or you don’t have enough savings or have debts to take care of, a private medical insurance will add to your burden.

The insurance is also not necessary, if you are able to pay for the individual treatments, as this would be more cost effective than paying regular premiums.  If your child needs immediate and priority treatment on NHS too, you will not need private medical insurance. In general, the necessity for the insurance depends on the policy you want to purchase.

Advantages of medical insurance

A private medical insurance will help you get specialist opinion for specialized care. You can make the advanced tests and scans that may not be available under NHS cover. The insurance can be used to reduce the waiting time for the treatment, which is mostly a long one with NHS.  You can also choose the hospital and surgeon you want to consult with.

Getting a private room and specialist treatment and drugs is easier with the medical insurance taken privately. And in case you need physiotherapy sessions, quicker access is possible.

A private medical cover is of great value, when you are in need of expensive and specialist treatment. For sports enthusiasts, the type of specialist treatment needed is not accessible with NHS, so a private health care cover is necessary.

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Is Your Garden Insured?

Oct 23, 15 Is Your Garden Insured?

Many homeowners don’t realize how much money they spend on their garden. If you just consider the value of your ornaments, plants and most especially outdoor garden equipment, you’d be dumbfounded at how much your garden really costs.

There are a lot of pricey garden equipment and tools which are often an easy target for burglars – garden tractors, lawnmowers, barbecue grill and even pots.

According to GardenTractorReport.com, a review site for garden tractors, an ordinary garden tractor costs around three grand. That’s a huge amount and you definitely want it covered. Further, the garden is also prone to damage from both natural and man-made causes.

But have you ever asked your insurer whether your garden and its items are covered in case of theft or destruction?

While most home insurance policies do cover the garden, the level and amount of coverage often varies – so it’s important to discuss it with your insurer. This is especially true if you are a garden-lover and have spent a huge amount on garden improvements, tool and equipment.

The basic garden toolkit is worth an average of $250 with greenhouses, sheds and patio furniture the priciest items. Most American home gardens will also have barbecue grill, garden ornaments, a lawnmower, children’s toys scattered around the garden, plants and seeds. On average, our “outside rooms” cost around $1,000 to $5,000.

lovely little gardenStandard home policy normally covers damage to fixtures and fittings which include outbuildings, walls, patios, gates, sheds, and fences in your garden.

However, most insurance policies do not cover damage or loss of movable objects; this means, lawnmowers garden, furniture and other items found in your garden are likely not covered. Many assume that these garden items are covered by their insurance only to find out that they are not.

Some policies cover contents of your garage and shed as long as they are kept locked. The problem is that many homeowners undervalue the contents of these outbuildings, much like they do with the contents of their home, thus they often don’t get any claim in case of loss. If you have spent so much on your garden, be realistic when placing the value of your space to avoid being frustrated later on.

Remember that the garden is a target of burglars and also prone to damage. If you are a garden lover, it is best to ask your insurance agent if the policy has specific provisions for garden “contents in the open”. Ask if the policy has exclusions such as expensive plants, pots or damages to plants. Know if your garden is covered in case of damages due to flood or storm.

Many of homeowners just enjoy the beauty of their “outdoor rooms” but do not really keep them covered. If you have spent so much improving your garden, perhaps it is time to have your investment fully covered. Go ahead and talk with your insurer.

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