Saturday, July 21, 2007

Mortgage Payment Insurance

Mortgage payment insurance covers the situation in which you are unable to make your mortgage payment for any reason and will make your mortgage payments until you are able to resume. Mortgage payment insurance is very beneficial if you suddenly become unemployed or suffer some disability which presents payment of the mortgage.

Wednesday, July 18, 2007

How can I get most updated inflation rate?

This is FAQ and if you ask this question most of the answer you will get is refer to national inflation rate. This information can be found in your local newspapers or you can just refer to here. But, this is crap! Reason is this value doesn’t represent the real inflation that you are having. National inflation rate just a rough estimated value. What you really need is the personal inflation rate but not the national inflation rate.

The national inflation rate is measured by the consumer price index (CPI) and the producer price index (PPI). The CPI measures the retail price movement, while the PPI measures the cost of inputs to the producer or manufacturer. These figures are the closest indicators of prices levels but do not reflect the actual personal inflation rate.

Unfortunately, there are many basic items, which are controlled items whose prices are kept down by the regulating authorities, in the basket of goods that make up the CPI. So, your personal inflation rate may actually be higher if you are consuming items that are not covered by the CPI.

So, the most updated inflation rate you want to find is your own personal inflation rate. Your actual personal inflation rate depends on what and how much you are consuming. To get your own personal inflation rate, you can just simply calculate % of increase of your expenses yearly. You will surprise with the % of your personal inflation rate. How far is it from the national inflation rate? You will understand why I said national inflation rate is crap and not accurate.

Homeowner’s Insurance

Homeowner’s insurance covers property damage to your home for any reason. It will not only cover your home, but any valuables listed on the policy, including furniture, art, jewellery, and other collectibles. It will also cover injuries to guests or others that occur on the premises.

Generally the policies are issued under two categories: Named Peril Insurance and All-risk Insurance

Named peril insurance protects only against specific occurrences described in your policy. If the policy does not list the peril, for example, earthquake, and your home is destroyed because of that peril, you will have no resource under your insurance policy. All-risk policies are comprehensive, but it is more expensive.

With either type of homeowner’s policy, you can buy Cash Value policies or Current Replacement policies. With cash value policies, the value of categories of property are set and if loss occurs, you will receive the set cash value. With a current replacement cost policy, you will receive the current replacement cost for any loss of property.

Furthermore, you can have up to 100% cash value for current replacement policies. In other words, the insurance company will pay up to a set percentage of the value of the property, depending on the terms of your insurance. Lower than 80% is not recommended.

Finally, you should have riders attached to your insurance policy to cover specific valuables such as artwork or jewellery. A rider is an addition to the insurance policy which describes a specify piece of property and states that the insurance policy specifically covers that item.

Friday, July 06, 2007

Health and Wealth

Do you realize health can build wealth but not the other way round? But the question is why majority of the people focusing on building wealth first rather than health? Some may said without wealth, they do not have a time to build health. Is this really true? So what exactly we should focus on? If we have wealth but do not have health, that is confirmed useless. So it remains only one answer. We should focus on health and put it as the first priority before we can actually build wealth. To build wealth, first you need to have a healthy body. Even I have told you or you have already known the fact, you will still not going to focus on health. That is how our world works now. We all know the facts but we do not take any action. When we try to take action, it won't last long and we usually give up in a short period. Everything will then later back to the square one and the health once again has been forgotten.

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