If you are considering purchasing life insurance, your biggest decision is whether or not to get a term life policy or a whole life policy. While there are many varieties of life insurance policies – knowing whether you want a term or whole life policy is your first and most important decision to make.

Term Life Insurance Policies

Term life insurance offers a death benefit if you should pass away within a pre-determined number of years. Because it is limited to a specific time period, term life insurance policies are among the least expensive forms of life insurance. At first, you may wonder why anyone would spend money on a temporary life insurance policy – but it’s suitable for younger people who have families at home but maybe don’t have a lot of cash to buy a more expensive policy; or for individuals who have just purchased a home and worry about leaving the burden of the home expense to their spouse if they should die before the mortgage is paid for. Term life insurance policies offer no cash value.

Whole Life Insurance Policies

A whole life insurance policy offers both a death benefit and cash value to the policy holder. The monthly premiums for whole life policies are higher than a term life policy, but it is considered an asset – which means you can borrow against the policy in an emergency. If you do borrow money against your whole life insurance policy, your death benefit is reduced by the amount you borrow if you should die before it is repaid; or if you cash in some of the policy’s equity, the value of the whole life policy is reduced proportionately before the remainder is distributed to your beneficiaries.

Whole life policies do not work like savings accounts, in that you can borrow as much as you pay toward your premiums. Part of your premium accumulates into an asset over time, while part of it is used to pay for the death benefit. For most policy holders, their will not be a significant amount of money earned for the first three to five years you have your policy. In the case of children however, whole life policies purchased for a child who is young can be a significant amount of money when the child becomes an adult.

When the asset has been built in your whole life insurance policy, you can choose to use it as collateral for a loan – any time you need to secure a loan or financing, you can often use your whole life asset as collateral. If you don’t want to secure other financing using your asset as collateral, you may have the option of withdrawing the equity as a loan. Loans taken from your whole life policy must be repaid like any other loan, although you will often get a very good interest rate because the loan is secured against a solid asset.

With so much pressure on the government to devote more focus towards natural resources, renewable energies, and restoring the environment, homeowners can benefit now from making their own green choices about their homes.

The American Recovery and Reinvestment Act of 2009 offers consumers special tax incentives  for homeowners improving the energy efficiency of their homes.  Depending on the location of your residence, you may qualify as a homeowner for a variety of tax credits and tax breaks at both state and federal levels for home improvements that improve energy efficiency. These home improvements include solar panels, insulated windows,wood pellet stoves, wind turbines, and even added insulation can help homeowners be eligible for tax credits.

The homeowner can receive a tax credit equal to 30% of the cost of the improvement, up to $1500 for any improvements that make the home more energy efficient, such as new windows, doors, and roofs. The tax incentive program runs from January 1, 2009 through December 31, 2010. Solar panels and other energy systems can earn a 30% tax credit up through December 31, 2016.

There are a variety of improvement ideas that are relatively inexpensive to implement but can save you big money. By investing in energy-efficient measures around your home, you also benefit from long-term savings by reducing utility, heating, and cooling costs on a monthly basis, keeping more money in your pocket. You can consult with contractors who are experienced with energy efficient improvements around your home and do a few projects that are in line with your budget.

Additionally, consumers and businesses that purchase an energy-efficient vehicle can also qualify for tax credit incentives. The credit percentage will depend on the type and weight of the vehicle purchased or leased during the time period of January 6, 2006 through December 31, 2010.

To find out more information about the energy efficient home improvement tax breaks and tax credits, you can either visit this site or this site. You can see what kind of home improvements are within the scope of the tax assistance programs and then decide which improvements can be implemented at your home.

Each year, more than 80 million people struggle to pay medical bills in reality they can not fit into their budget. Additionally 700,000 are forced into bankruptcy because of medically-related expenses. So what do you do if you have a whopper of a bill you can not afford to pay?

Here are some tips to help you manage those high medical costs:

Check With Your Insurance Company
IF you have insurance coverage but your claim for medical care was subsequently denied, file an immediate appeal and see it through.

Make An Effort
If you are not insured, at least show the facility that you owe that you have every intention of making good on paying your bill. They want to see a good-faith effort towards paying off your debt. Whatever you do, don’t ignore the bills. Contact the office and work in negotiating a payment plan you can afford. Your goal is to avoid being turned over to a ruthless collection agency and allowing the medical bill to negatively affect your credit.

Negotiate a Payment Plan
Office clerks in the billing department may try to play hardball with you but do not accept no as an answer without trying for a better deal. Ask for a discount for paying in cash. If you do not get anywhere with the desk clerk, ask to speak to a supervisor or the patient accounts manager who may have more pull in the decision-making department. Let them know honestly how much you can afford to pay each and every month and be sure to get the final arrangement agreed upon in writing.

Look for Financial Aid
Consult with the billing department about any available financial assistance you might qualify for as a patient. Many people assume they will not be eligible for such aid and end up missing out on that much-needed help.

Prepare Beforehand
If you are anticipating a costly medical procedure or treatment, start early and consult with the doctor prior to the procedure to discuss your financial concerns. Many physicians will agree to work with you, giving discounted prices for those without insurance or the financial means to afford the care. This can help alleviate the shock of a big surprise bill in the end.

Having medical concerns is bad enough but adding financial issues to the mix can make your medical issues worse if you are stressed about money. Medical emergencies are not predictable so it may be in your best interest to sock some money away in a savings account to back up what your insurance doesn’t pay. If you don’t have insurance coverage at all, make medical emergency savings a priority in your budget.

You know what the problem is: you do not save enough money, and now that the economy is down, you are suffering, too.  Saving used to seem easier than it is since priorities have changed.

You cannot be without a good savings plan because if you are ever going to have enough money for the bigger purchases, you have to begin to pay cash for as much of them as you can.  That means tapping into reserves and then building them back up again. Here are five ways to make savings a lifestyle.

Set goals.  Look at where your money is coming from and to where it is going.  If your income is a salary, then you know exactly how much you are going to get every week or other week.  If it is hourly, then it becomes a little harder because of the up and down nature of hours that are worked and income from overtime.  Use a spreadsheet or piece of paper to monitor your expenses and income every month.  In this way, you can set goals after you see what you can expect.

Be specific on dollar amounts.  Decide what amounts you need to make your savings plan work for you. In other words, set an amount to set aside as a cash reserve for emergencies and an amount as an income replacement.  Get this cash reserve fund going as soon as you can so that you will have it available to use right away.  Work on your income replacement fund by determining how many months you need for your situation and then begin to set that money aside as well.  Then, do not forget your retirement savings plan and the need to fund it also.

Distinct accounts.  Separate these funds by putting the money into distinct accounts.  Do not intermingle the money.  The cash reserve can go into a debit card account that is separate from your primary checking account.  That way you can get to the money either by using your debit card or going to an ATM to retrieve it.  The income replacement fund should be in a high yielding savings account, or even a Certificate of Deposit.  Your retirement savings should go into a qualified, tax-sheltered account like a company-based 401k, or an IRA account of your own.

Auto-pilot your savings.  Your retirement savings should be automatically deposited through your employer.  Use this same philosophy for your income replacement fund if possible.  Have it go into your account automatically from your paycheck so that you do not see or miss the money every week.

Make savings an everyday occurrence.  Here is where the change in lifestyle will help you.  Look for ways to save everyday on items that you use all of the time.  It is the little things like spending less on eating out, or using coupons when you grocery shop.  Refuse to pay full price on larger priced items until you have performed price-comparisons from at least three sources.

All of the little things add up and can become your savings lifestyle.  Do not get discouraged if you have a time that you do not adhere to your plan – either because of your actions, the actions of someone in your family or circumstances beyond your control.  Get back up and continue on and you will still reap the rewards of living a savings lifestyle.

Scam artists are nothing new; in fact they have been around since the beginning of time. There are scams targeted toward the young and old, the rich and poor and everyone in between. When it comes to investing your money you must be aware of the fact that there are a lot of people or companies out there offering stock or investment advice that are interested only in separating you from your money. Avoid becoming their next victim by recognizing the following warning signs that you may be dealing with an individual or company that is not legitimate.

• Guarantees a return- There is always risk involved with the stock market. If you are looking for a “safe” place to invest your money you are better off buying a bank CD or treasury bond. Beware of anyone who guarantees an amazing return.
• Email or infomercials- Common sense would tell you that any investment opportunity that you find in the early morning hours on television or unsolicited in your inbox is a scam. Unfortunately due to the large number of people who fall for this scam it requires a mention.
• Investment seminars- Many investment seminars charge thousands of dollars and the only thing you get in return for your trouble is an invitation to attend another seminar or an offer to pay for software or other advice that is supposed to “help” you with your investments.
• Unknown companies- Look for names that you recognize when considering investments. If the name is not familiar do your research. In many cases when the company touting the investments in not known it is a sign of a scam. Note: Familiar or popular companies do not automatically equal a good investment. You should always research companies regardless of the popularity of their name before investing your money.
• Hard sells- It’s your money and you shouldn’t feel pressured to invest it anywhere. If the person trying to sell the stock is too pushy he isn’t looking out for your best interest, rather his own.
• Sounds too good to be true- As with all things in life if it sounds to good to be true, it probably is. It is common for first time investors to fall for penny stock scams, pyramid deals and Ponzi scams.

It is important to keep a vigilant eye on your money at all times. With the current state of the economy people are desperate for money and con artists are on the prowl looking to take advantage of anyone who is willing to risk investing money in the hopes of a big payoff. Protect yourself by questioning the source of information and paying special attention to any tips or offers that claim to generate high yields with no risk.

While Americans are watching their medical premiums rise each year, we keep hearing about options that once we thought were not good ideas.  Now, that has all changed because of the continued spiraling of costs and lowering of benefits coverage for those who are insured.

What is a Health Savings Account (HSA) and how can it benefit me?

Consumers have always had to shoulder a portion of the costs of their health care plans in the form of premiums, deductibles and things like co-pays for doctor visits.  Now an HSA can be set up to help pay for costs associated with high deductible health care plans and do so from a tax-advantaged position.

Since 2003 when HSA legislation was signed into law, these health accounts have steadily taken hold.  The intention was to develop a plan that allowed anyone in any tax bracket to participate and put money into a savings account that could accumulate interest and have tax benefits not unlike an IRA.  The consensus is that the more financial responsibility is shouldered by the consumer, then the more concern will be towards costs of health care.

You can establish an HSA on your own or through your employer.  Most major health insurance companies participate in the offering of HSA options.  Along with a Consumer Driven Health Program, a HSA will help bridge the gap between what you owe as a consumer vs. what is paid for by your health care plan.

Money can be deducted from your weekly paycheck in order to fund your account.  The amount is up to the consumer and the goal is to reach the high annual deductible of your health care plan.

You are allowed to make withdrawals from your HSA for non-medical reasons, but those are treated much like a withdrawal from an IRA and are taxed upon their distribution.

One difference in a HSA is that you do not have to use the money on an annual basis or lose it, but it continues to grow in the account as long as you place it there on a regular basis.

While there is some controversy over the HSA and whether they help or hurt health care coverage for consumers, they have enough advantages to be worth considering.  If you are in poor health, you might find them restrictive.  But if you are in generally good health, they can be a good way to save long-term for medical expenses.  A HSA provides a security blanket against future events, much like any other investment plan affords to those who take part in them.

Saving money in an FDIC insured bank is always a better option than burying your money in the backyard, or slipping it under your mattress for safe keeping. You simply can’t grow your money with the at-home methods of saving, and taking advantage of earned interest is the way to bank better and manage your money more effectively.  Interest-earning bank accounts help you make more out of your money.

How Your Interest Is Calculated

Getting the most out of your banking involves understanding how your interest is calculated and earned. Believe it or not, the savings accounts that list the highest interest rates are not always the ones that actually pay you the most interest. It’s actually more important to understand what method is used for compound interest than the amount of the interest rate. The more often the interest is compounded (reinvested into the principle amount you’ve saved); the more money you will earn in interest.

Here’s a chart that shows how much $1,000 will earn at 3% interest over 3 years (without any additional contributions made to the account), using different methods of compounding interest:

• Compounded monthly: $94.05
• Compounded quarterly: $93.80
• Compounded semi-annually: $93.44
• Compounded annually: $92.72

The more frequently a bank compounds the interest, the more money you will earn. It is very possible that an account that offers a lower interest rate but a more frequent compounding schedule could earn you more money than an account with a higher interest rate but less frequent compounding schedule.

Most Commonly Made Banking Mistake

There are many people who make the common mistake of having their paycheck deposited into a non-interest earning checking account. From this account, bills are paid, money for entertainment is withdrawn, and if there is any money “left over” it often just sits there until it comes time to pay another bill. The money that sits in a non-interest earning account is a waste!

If you don’t like to have more than one bank account, you should at least choose a checking account that earns interest on the balance. That way, if there is some money in the checking account, it will earn a small amount of interest rather than just “collect dust”. What you need to watch out for are checking accounts that offer a low interest rate, but charge high monthly maintenance fees in exchange for doing so. If you’re paying more in fees than you are earning in interest, it doesn’t make sense to use that account.

Look on the television, listen to the radio, or read countless print ads and you will see many promotions that advertise the various companies promising help with mortgages and foreclosures. Sadly for consumers, not all of these companies will really assist those who need serious help keeping their homes, managing their money, and avoiding foreclosures. It has become so bad that more consumers don’t know where to really turn for help. There is a ton of information on the internet that differs greatly from one site to the next. Additionally, there have been plenty of news reports that recap the horror of victims who have lost all of their remaining money by trusting in a scam meant to provide financial assistance.

There is help on the way. It is on the internet; however, the website has been set up by the Obama Administration to be the go-to place for homeowners in doubt and in trouble. The website, MakingHomeAffordable.gov, is full of information relating to foreclosures and mortgages for the homeowner in trouble.
The website offers confidential access and information about government programs meant to help prevent foreclosure. There are two such programs – the Home Affordable Refinancing and the Home Affordable Modification. Consumers can check their own eligibility on the site to see if they qualify. The Modification program is for homeowners who have already defaulted on their mortgage payments. The Refinancing program is for the people who are still current but concerned about making future payments.

For homeowners who have not been able to keep up with payments or who foresee trouble, the worst thing you can do is what to do something about it. Federal help through the programs or even the questions and answers that can be found on the website can be the first step for consumers to get help. If you wait too long or let the problems go too far, you likely will face foreclosure proceedings that are not easy to recover from and you potentially could be without a home. It can seem so easy to have a third party do the dirty work for you but unfortunately it can often result in scams that lose you money and even your home. Seek out the information you need to know now before contracting to work with any other service. Be sure to stay in communication with your mortgage lender during difficult times as well. Ignoring the problem and the lender will only make it worse.

Many people consider their home as their biggest asset. Home improvement projects not only add value to your home, but also create a more comfortable space to live. Certain home improvement projects go a step farther and actually reduce the cost of maintaining your house. Due to the current state of the economy, many consumers are cutting costs and eliminating unnecessary expenses which may result in home improvement projects getting moved to the back burner. On the other hand, home owners who qualify for financing are in a good position to take advantage of home equity lines of credit at relatively low interest rates. If you are thinking about making improvements to your home, consider the following tips to ensure you get the most value for your money.

• Determine who will benefit from the home improvement.  To put it simply renovations made solely to increase the value of the home (for resale) should be approached differently than projects designed to improve the quality of living for yourself and family. If you are planning on selling your home in the immediate future or even a few years down the road, you will have to consider if your improvements will be appealing to potential buyers. Conversely, if you have no intentions of selling your home, your decisions can be more personal and reflect the needs and style of your family.
• Understand the importance of a budget.  Before rushing out to purchase materials or hire a contractor you will have to carefully consider how much money you have available to fund a renovation. Do you intend to use savings to pay for expenses or will you require financing to see the project through completion? In order to know how much money you will need, you will have to have to know exactly what changes are going to be made and how much those changes will cost. Remember that it is not uncommon for unexpected expenses to pop up and push projects over budget, so make sure you give yourself enough of a cushion to handle this possibility.
• Spend money where it counts. Depending on the type of remodel you have in mind, there may be money saving strategies that you can apply to reduce your costs. There is a fine line however between saving money and sacrificing quality. To be honest, money spent on a shoddy renovation that doesn’t add value, comfort or otherwise improve your home is money wasted. There are areas where you can cut corners and areas where you must be willing to pay top dollar to ensure you get the most return on your investment.
• Have realistic expectations.  If you are not knowledgeable about home construction, plumbing, electric and other areas of renovation you must know that some visions simply cannot be turned into a reality.  Understand that certain limitations or restrictions could make it impossible to do the work you have in mind.  It is important to keep the lines of communication open between yourself and contractors to ensure everyone has a clear picture of the work that needs to take place before any demolition or construction begins.
• Get the “go ahead” from local government before starting construction.  Depending on where you live and the magnitude of your renovation you will likely have to obtain a building permit or other approval before beginning construction.  This is to ensure any changes meet building codes and that only qualified individuals perform certain work such as plumbing or wiring.  You don’t want to be in the middle of a remodel and have the project shut down which will cost you both time and money.  

Bounced protection, sometimes known as “courtesy overdraft”, may sound like a great thing to have with your checking account. Essentially, bounced protection plans allow a consumer to pay a fee to have any check that is written over the amount in your account clear without issue. The plan keeps consumers from bouncing checks – thus the plan name.

However, it may seem great to have such protection to save your from embarrassment and additional financial strains, bounced protection can also mean big trouble to those who misuse the service. For instance,  a consumer who knows they can not bounce a check may be more than willing to write checks they can not cash, figuring they only have to pay a fee to be in the clear. However, it is those fees that will add up fast, leaving you owing much more money than you likely have. You end up owing the bank bank all of the cash plus fees within a 2-4 week period.

Bounced protection is different than overdraft protection in several ways. First, many customers end up automatically having the service provided to them unless they chose to opt out. So, you make one miscalculation and end up paying back more than you bargained for when initially writing the check. Bounced protection also differs in that banks do get to choose which checks are cleared by bounced protection. Not all banks will clear all overdrawn checks, whereas with overdraft protection the customer and the bank sign a contract to cover all eligible checks.

Also, overdraft protection typically charges a low annual fee and adds interest on all balances owned. With bounced check protection plans, the fees can be astronomical in comparison, sometimes as much as $40 a piece, somewhat similar to what payday lenders charge for a loan.  Banks essentially count on the fact that some consumers will not be able to pay back the balance owed in time and therefore they get to collect on higher fees on balances owed. Banks are also not required to disclose the interest rates of their bounced check protection plans, unlike payday lenders.

Another interesting note is that banks actually have a bit of control over whether or not you will bounce a check. Traditionally, they process checks by size, from largest to smallest. The reason for the order is because you are likely spending the most money on the most important things. Some financial experts feel banks really do this to capitalize on the larger number of smaller checks that will bounce once a big payment has cleared the account.

Talk to your bank about bounced protection and make sure you opt out of it if you can. If you are interested in the program, at least take the steps necessary to understand exactly what happens, how much it costs, and how it works. Consider the more traditional overdraft protection plans instead to save some money and prevent temptations.