For car owners who are either leasing or financing their vehicle getting into an accident even a fender bender can spell financial ruin. Often time the cost of repair is far more then what the car’s value is estimated at leaving consumers responsible for the difference.

Should that car get totalled or even stolen the insurance company will only pay you for the current value which means that now you are not only responsible for paying the remainder of the loan’s balance but you are without wheels as well. Finding yourself with several thousands owed and the necessity of buying a new vehicle can lead to more debt and even bankruptcy if you are already on shaky financial ground.

Now, gap insurance covers whatever the insurance company does not pay out which can save you a large amount of money in the long run and can even save you from the poor house.

While gap insurance is a good idea for everyone there are few consumers who just might need it more then others.

- If you are:
- Leasing a vehicle
- Did not put down 20% of the down payment
- Using a finance plan that lasts a couple of years
- Rolled over a previous car loan into a new one.

Now, some leased vehicles already come with gap insurance in the policy though this is not always the case. Make sure to read the entire lease agreement to see if gap insurance is needed. Many dealers will sell gap insurance but this is generally the more expensive option and so consumers should look at their own auto insurance provider for a cheaper alternative.

Gap insurance is relatively low cost and extremely valuable if it is ever needed. Like all insurance policies you may want to first shop around before making a purchase. Gap insurance can save you from severe losses should you ever find yourself in need of it.

One of the few things that are elusive to obtain but very much worthwhile is Health Insurance. With the right job, this comes relatively easy, but in many other professions or positions, you are left having to jump through hoops in order to obtain the coverage you need to live a peaceful and less worrisome existence.

With so many people in need of health insurance these days, many of them turn to paying for it out of pocket, but a slumping economy has made it difficult to afford something that is being further confounded by the fact that rising premiums are pushing more and more people out of the market.

Premiums covering health insurance have risen only 6.1 percent in recent history, which is the lowest amount that has been recorded in around eight years. However, this percentage still puts it much higher than inflation and the average worker income, making it a very elusive service.

However, growth is slowing, so perhaps there is some hope for those who aren’t offered such benefits freely with their job or at a reduced rate. Economist experts are optimistic about it, however, because premiums have risen at around 78% since 2001, while wages have gone up only 19% and inflation has managed to keep up at around 17%.

The costs are staggering, but the implications of not having it can be worse for some, when a tragic misfortune falls upon a poor family or a person ends up injured somehow and left unable to work. However, around 60% of all employers offer healthcare packages, which allows some workers to pay only 16% of the total premiums for singles and 28% for entire families, which presents considerable savings no matter how one looks at it. Getting health insurance is simply a matter of evaluating the quality of your life and comparing it to the risks you perform on a daily basis, and understanding that the difference is the decided factor in the value of such an investment.

Many people prefer variable life insurance to any other type available simply because there is so much flexibility with this form of insurance. Plus, there is the added perk of a built-in savings account that accumulates tax free interest.

Sometimes people get confused about variable life insurance, perhaps because of all this flexibility. But the concept is relatively simple to understand when you think of it as life insurance that increases in cash value.

The policyholder is able to control the cash value by choosing the investments that cause the cash value to increase. Normally, you have many types of investments to choose from, and you are given the opportunity to move your money from one type to another a few times each year. People like this option because they enjoy they enjoy the ability to manage their money.

Another flexibility that Variable Life insurance gives to you is allowing you not only to decide how much the dollar amount of the money you leave behind for your beneficiary should be, but to decide how much of a premium you want to pay. Be aware that the premium is going to be a larger amount than what the insurance alone would cost. This larger amount is what will be invested and what will earn interest for you.

This is the key to a Variable Life insurance policy. You can consider it as not just a life insurance policy, but also as a financial instrument you can use to build savings. Yes - not only does this type of insurance act as an investment method that you are able to control, but it can also be considered as a type of savings account that you are able to dip into to use in an emergency or if something pressing comes up. You can borrow against the cash amount of your policy as long as you don’t take too long repay this money, and your life insurance policy will still be very much in force.

You have one group of people who figure they will just purchase a Term life insurance policy for less money and are not interested in having a Variable life policy that will work for them. Then there is another group who will weigh the odds and decide that they can only come out ahead by having a life insurance policy that can do so much for them.

If your insurance premiums are rising, there are some facts, which do contribute to the rises in the costs of insurance. Living a lifestyle that is considered to be low risk and if your health is good then you may be in a position to have lower insurance premiums. An unforeseen change in either one of these conditions can, however, cause a rise in the premiums. There are some factors you need to consider when you are looking for a life insurance policy. You will need to know how these factors will affect your insurance premiums and if there is anything you can do to control the effects.

The life insurance companies have to follow certain criteria in determining the amount of the premiums that they can actually charge their customers. The attention is focused on the level of risk with may be associated with the lifestyle of their customers. The insurance company will evaluate your relative health and lifestyle and look for some reasons to suggest that you may die sooner or within the limits of your policy. If your lifestyle is in any way considered to be at a higher risk of these events then the company will be able to charge a higher premium for your coverage. The insurance companies will determine that a prospective customer’s lifestyle, age, and health are all potential causes to charge higher premium amounts.

Generally, the cost of life insurance has been decreasing over the past ten years. According to many independent reports, this is true for both men and women who do not smoke. In this same ten year span the lower costs are said to be the consequences of a longer lifetime for both men and women. Women do have a longer life expectancy than men have, so they will pay a smaller premium for life insurance. Premiums do increase as a person ages, so the sooner life insurance is obtained the less your coverage costs.

Certain health issues such as high blood pressure, obesity, high cholesterol, and diabetes can all affect the cost of life insurance. Smoking and obesity are both the conditions which can cause an increase in premium costs. A 35-year old male smoker can expect to pay about 26 to 30 dollars more for his life insurance, and an obese person may have to pay about 50% more for coverage. These conditions mean a higher level of risk for the insurance company because they can reduce life expectancy.

Your family’s medical history as well as your own health condition can help determine the cost of life insurance premiums. A condition such as heart disease, cancer, or diabetes an cause an increase in the cost of insurance coverage; it doesn’t matter whether you have the condition or if a family member has it.

If you have a risky occupation, such as a high-rise window washer or a racecar driver or if you engage in hobbies that pose a risk to your well-being such as mountain climbing or motor cycle racing, your premium will be higher. With a low risk lifestyle the most important factor in determining the premium cost is your health condition. When you apply for coverage, it is very important to be honest about your lifestyle and health because false information will invalidate your policy.

Now that the benefits enrollment for my company is over, I can start thinking about things that I could do before the end of the year to make my money work harder for me. Here are 22 ideas that I want to share with you.
Boost 401k contribution – I think I will hit the 2007 maximum contribution limit of $15,500; otherwise, I would consider bumping up my contribution before the year is over. The contributions and earnings are tax-deferred — i.e., you don’t pay taxes until withdrawal. Remember if you are 50 years or older, you can contribute additional $5,000 in catch up contribution.
Pay property taxes due next year – I pay my real estate tax quarterly. However, I can pay property taxes due in January 2008 before December 31st, and claim taxes paid as deduction against 2007 income tax.
Pay January 2008 mortgage in December 2007 – Likewise, this allows me to deduct mortgage interest paid against my 2007 income tax instead of waiting for 2008.
Sell the losers – Due to the recent weakness in the stock market, I have a few ETFs and stocks that are in the red. I can sell them, capture the losses, and buy something else that would allow me stay invested. I just have to watch out for the wash sale rule. Capital losses can be used to offset capital gains, and ordinary income up to $3,000.
Donate to charities:
Appreciated assets — I have never donated appreciated assets before (e.g., stocks, bonds, etc.), but it could be a good option because you could deduct the full value of the stocks without paying the capital gains tax.
Old car — My car is not old enough yet. However, when I am ready to retire our 98 Ford Contour, I would consider donating it to a charitable organization. Typically, the organization would take it away for free, coordinate the title transfer, and provide a tax deductible donation receipt. The IRS allows us to deduct the fair market value of your vehicle.
Cash, Clothes, Furnitures, etc. – Any cash donation and the fair market value of used clothes, furnitures, electronics, appliances, etc. are tax deductible. However, make sure you read this MSN article, since the IRS tightened charitable-gift rules in 2007.
Contribute to 529 Plan — 16 states offer state tax deduction on 529 contributions for their residents, and some states impose annual contribution limit. I will be contributing the planned $5,000 before the year is over to capture about $340 in tax savings this year. Check out 529 plan tax deduction estimator at CNNMoney.
Contribute to IRA — This one can wait until April 15, 2008. I am planning to contribute the maximum of $4,000 for my and my wife’s account for 2007. People age 50 and above can contribute up to $5,000 for 2007. Traditional IRA contribution is tax deductible, but not Roth IRA contribution. See Traditional IRA and Roth IRA Contribution Limits at About.com for more detail.
Contribute to Coverdell Education Savings Account — I am not planing to leverage CESA, but it could be a nice college savings vehicle for some parents. CESA allows parents to contribute up to $2,000 per account annually. The contribution is not tax deductible, but it grows, and can be withdrawn, tax free. This one can also wait until April 15, 2008.
Use up Flexible Spending Account (FSA) — Unfortunately, I didn’t add enough money to our FSA, and we used it up very early in the year. If you still have money in there, you should try to use it up because the remaining balance will be lost forever. Before you rush out, check with your employer because you may have up through March 15, 2008 to spend that money. Kiplinger offers 25 Ways to Spend Your Flex Account.
Visit your doctor for a final check up – If you already fulfill your deductible requirement this year, you should take advantage of your insurance coverage and visit your doctor for last minute check up and treatment. Moreover, your medical expenses exceeding 7.5% of your adjusted gross income (AGI), the excess amount is tax deductible.
Buy business equipment and supplies — If you own a business, you can make your purchases before December 31st and claim these expenses against your business income. For bloggers and other small business owners, take a look at “46 Tax Deductions that Bloggers Often Overlook” at ProBlogger for additional ideas.
Pay your vendors early – Likewise, pay for any services rendered by your vendors before the end of the year to claim these expenses against your business income.
Cancel under utilized subscriptions – Do you have any unread, or under utilized, magazine and newspaper subscriptions? These should be canceled. Every bit helps.
Cancel under utilized memberships — Likewise, any under utilized gym, club, or association memberships should be eliminated.
Review your insurances
Life, health, dental, and vision — These were part of my employer’s benefit package and my open enrollment is over; however, you may still have time to review and adjust these to maximize their value.
Car, house, and umbrella — I recently cut my insurance expenses by $1,145 per year. Since you are already on a money optimization streak, this is the perfect time to shop around and see if you can get a better deal on your insurances.
Review your home services — Cable television, satellite television, internet, telephone, cell phone, and home security service are typical candidates for this category. Shop around and see if you can get a better deal. I recently wrote about how I saved $50 per month by switching my television, internet, and telephone services from Time Warner to Verizon.
Set holiday shopping budget – Holiday season is approaching quickly, this is also a great time to figure out your budget for the rest of the year.
Transfer your balance to 0% APR credit card — I advocate paying your credit cards in full each month. But in case you owe money on your credit cards, take the time to find someone who will give you “no fee 0% APR balance transfer” to consolidate your debt and save money on interest.
Cash in your rewards – If you have been using cash back reward cards to your advantage; this is the perfect time to apply the cash reward toward your balance, or shop at their partner sites for the holiday gifts.
Prepare your home for winter – Winter is here and it will only get colder. Heating your home will be more expensive this winter. Some money saving ideas include: insulate your home, adjust the thermostat, add a thermostat with timer, check the heating system, etc.The list is so huge that I will just leave you with a link to Google search: prepare home for winter.
Prepare your car for winter — It can be very expensive, or even fatal, if your car is not ready for winter. Check and replace as needed: brakes, tires, fluids, wipers, and battery. It’s also a good idea to put together a winter emergency kit for each of your car. Here is another link to Google search: prepare car for winter.
Rebalance your portfolio — If you haven’t look at your investment asset allocation for a while, this is a good time to make adjustment to bring it back in line with your original allocation. Timing is easier with tax-sheltered accounts. For non-tax sheltered account, it’s a little trickier and I won’t go into it here.
Kev said, “Giving birth to a child on or before December 31st is a great money-maximizing move. The tax break is wonderful!”
Madison said, “When planning a substantial conversion of a traditional IRA to Roth IRA often it is beneficial to spread it over multiple years to minimize taxes. By projecting how much room you have left in your current tax bracket, you can convert only that much and save the rest for conversion in another year. This way you avoid paying a higher tax rate.”
Speedy said, “Plan to increase your savings and investments by “banking” your raise this coming year. Once you see the amount of your raise, adjust any automatic withdrawals for savings and investment (keeping an eye on contribution limits for retirement plans). I did this in 2007, plus I decided ahead of time that any overtime earnings would be dedicated to debt payments and insurance premiums. This has worked so well that by the end of 2008 I will have no debts and so can increase my retirement savings even more!”

I already did some of these things, and will be using this post as a checklist. If you have other ideas, please share with us and I will add it to the post (you’ll get the full credit, of course).

When I wrote Building, Diversifying, and Shifting Your Income Streams, there was an important element that I left out. That element was some practical real life ideas about how you can start building alternative income streams today. It is worth noting that not all of these are passive income ideas, so you will actually have to actively work for these income streams to grow.

In compiling this list, I did my best to avoid any sort of scams, and stay with practical ideas that work. I have not used all of these ideas, but I have used, or am using, many in this list.
Alternative Income Ideas:
Start a business
Get a second job
Invest in dividend paying stocks, mutual funds, and exchange traded funds (ETF)
Buy Certificates of Deposit (CD)
Start an online savings account — e.g., ING offers 3.00%, WaMu offers 3.55%, etc. (rates may have changed)
Lend money on Prosper and LendingClub, and refer your friends for referral bonus
Start a blog and make money with it
Write for money — e.g., Squidoo, Associated Content, Triond, etc.
Save money online shopping with Ebates, and refer your friends for referral bonus
Becomes a landlord, or a real estate investor — e.g., rent out a parking space, a room, etc.
Beat the S&P500 with a virtual portfolio to earn real money with UpDown.com
Offer basic services — e.g., babysitting, housekeeping, gardening, painting, etc.
Offer services in your area of expertise — e.g., tutoring, resume writing, business consulting, web site development, etc.
Turn your hobbies into income streams — e.g., photography, videography, quilting, etc.
Sell handmade products on Etsy
Write and sell eBooks
Ghostwriting
Enter contests and giveaways (use Google Alerts) and sell the prizes
Earn money with online surveys
Turn your everyday spending into college savings with Upromise
Use cash back reward credit cards strategically — e.g., DiscoverCard, Chase Free Cash Rewards, American Express Blue Cash, Citibank Reward Cards, etc.
Play the credit card arbitrage game (note: this is too risky for my tastes)
Sell used books on Amazon.com
Becomes an Amazon Associate, and ask your friends to use your affiliate link to buy things
Sell unused items on eBay or Craigslist; or buy bulk items and resell them
Freelancing — e.g., Elance, Guru, RentACoder, etc.
Sell your collectibles
Start a bulk candy vending machine business (note: I actually lost money on this)
Mystery shopping
Find missing money — MissingMoney, Where’s My Refund, TreasuryHunt, PBGC database, and GovBenefits.gov (see Frugal for Life)
Alternative Income Resources:
My Sources Of Alternative Income And How I Make Them Work For Me at My Two Dollars
Multiple Income Streams: 10 Ways to Earn Extra Income at The Dough Roller
Spend less than you earn - the wrong way to think at Brip Blap
A Guide to Making Passive Income at Freelance Switch
20+ Free Passive Income Resources at Life Optimizer
Passive Income: How to Earn More and Work Less at About.com
8 Ways To Earn Passive Income Online at iSiteBuild.com
Five Ways to Create Passive Income With Little or No Money at Genius Types
Automate Your Income to Simplify Your Life at Zen Habits
Passive Income is the Key to Freedom and Retirement at All Financial Matters
11 Great Ways to Earn More Money at Free Money Finance
Defining Alternative Income at Lazy Man and Money
Ten Ways to Translate Your Passion Into Additional Income at The Simple Dollar
50+ Resources to Legitimately Raise Your Income at My Super-Charged Life
40 Ways to Make Money on the Internet at Dumb Little Man
How to Make Your Income More Passive at Frugal Dad

I finally took care of my parents’ whole life insurance policies and put them on a Premium Offset Proposal (POP) arrangement. Basically, this arrangement uses their policy’s current and accumulated dividend values to pay their premiums. Their death benefits and cash values will continue to grow, but at a slower pace. At the same time, the insurance agent pitched long-term care insurance my parents.
What Is Long-Term Care Insurance?

Long-term care insurance is a product intended to help the beneficiary pay for the costs of nursing facility, home care, assisted living, etc. This insurance primarily pays for non-skilled assistance with activities of daily living (ADLs)*, which include:
Bathing
Dressing
Using the toilet
Moving (i.e., walking, standing up, sitting down, etc.)
Caring for incontinence, and
Eating

* From National Clearinghouse for Long-Term Care Information

For example, my parents’ insurance agent wants to sell them each a long-term care policy for about $150 a month per person. In return, the insurance company promises to pay $150 per day (with 2% inflation protection) for up to 3 years. The premium must be paid until they die (I am not sure what happen if they used up the benefits before they die).
How Much Does Long-Term Care Cost?

How much really depends on the type and level of services that you need. The price can vary from $5,000+ per month for a nursing home (again wide range depending on the region) to a $1,000+ for home healthcare visits, and a few thousands for assisted living facilities.
Does Medicare or Medicaid Pay For Long-Term Care?

The short answer is some, but not all long-term care services are covered by Medicare/Medicaid. And you must meet all the requirements in order to qualify for these benefits.
Medicare

Medicare is a Federal program designed to cover health care for people age 65 and older, or younger people that qualify. It focuses on medical acute care, and only covers medically necessary care. It doesn’t pay for most long-term care services. Some exceptions include limited skilled nursing facility stay, hospice care, and home health care.

If you qualify, Medicare pays a portion of your cost up to 100 days (100% the first 20 days, and for days 21-100 Medicare pays any expense above $128 per day deductible).
Medicaid

Medicaid is a joint Federal and state program that helps pay medical costs for people with limited incomes and resources. The exact coverage varies from state to state. Most often, eligibility is based on your income, which means that you must use up your personal assets before you qualify.
My Situation

My parents are 64 and 62 current, so they are just in the tail end of that window to buy long-term care insurance. They will most likely outlive their retirement savings and will be able to qualify for Medicare, if needed.

Here are some of the costs and benefits:After Out of pocket expenses Opportunity cost at 7% CAGR Coverage amount
10 years $18,000 $26,600 $196,000
15 years $27,000 $48,000 $217,000
20 years $36,000 $79,000 $239,000
25 years $45,000 $122,000 $264,000

As you can see the opportunity cost is quite steep. Although it’s less than half of the potential benefits even after 25 years, the key word is potential. Unlike life insurance, there is no guarantee that my parents will be using their long-term care benefits. They could die without ever needing the insurance. They may not use up their entire benefit allowance. And most likely their children and grandchildren will be providing some level of support.

Auto insurance is an necessity, but why pay more for it than you have to? Take advantage of every possible discount on auto insurance that you can. Many people choose to pay auto insurance on a monthly basis. However, the premium is calculated on a six month or annual basis. If you look at your monthly statements, you are being charged for the convenience of making the payments monthly. If you pay the six month or annual premium in full you will save money over the course of the policy.

Most insurance companies offer more than just auto insurance. They want to be a provider for all the needs of their customers. There are multiple discounts offered on auto insurance if you combine it with another policy such as your home owner’s insurance or a life insurance policy. This is because the insurance company wants to maintain your business. They can even roll everything into one convenient monthly, quarterly, semi annual or annual payment.

Many people don’t realize that the types of vehicles they operate have a huge effect of the base cost of the auto insurance that they pay. Sports cars and convertibles are among the highest autos when it comes to insurance rates. To get discounts, consider buying vehicles with added safety features including passenger air bags, side air bags, four wheel drive, and a sensor for backing up.

The more you are able to establish yourself as a safe driver, the more discounts you will get on your auto insurance. An insurance provider will look at how long you have had your driver’s license as well as any claims, accidents, and moving violations. Major moving violations such as driving under the influence will raise your insurance costs because of the high risk involved with covering you. If you have young drivers in your household, consider having them take driver’s education so that you can get a discount for them. Many insurance company’s offer a discount for student with good grades as well.

The internet is a great place to find out about the various discounts that may apply to your particular auto insurance needs. If you are new to getting auto insurance or you have a spotty driving record, you may have to start out paying a high premium. You can work to establish a pattern of being reliable by following the rules of the road and paying your premiums on time. This way you will be eligible to reap the rewards of discount auto insurance in the future.

You are reading this article because you want to have free online health insurance quotes from multiple health care companies! You don’t want the hassle of going to the offices of individual agents and provide same information again and again. You want to avoid this hassle.
Thats all possible. Thanks to Internet. It has really opened the avenue of getting multiple quotes from top companies a whole lot easier. Just few clicks of a button and the competitive rates are available for you.
To begin with you need to make a decision, whether you want to go to a specialized website that gives quote from a single company or do you want to go to website that can gather your information and then pass on to multiple companies so that you can get good rates from all these companies at the same time without repeating your information to them?
I suggest, go with the later. Provide your information only once and let the website send it to all the companies. This will save your time and will make your work easier.
This leads to another question - Which website should you choose? The one that takes your information to all the insurance companies irrespective of their reputation or should it be the one that sends your info to only top-notch healthcare companies? Of course the later. This is most important when you go for free online health insurance quote. you don’t want to run in some scamming companies. There are lots of like these outside.
Once you have selected the applicable website, its now the time to enter the information that is needed to get your free quote. Entering this info doesn’t take more than 5 min.
Thats it..Congratulations, you are on your way to get some interesting and competitive health insurance quote online for free and that too only from the companies that are reputed in the market.
Rahul Gupta is expert in Health Insurance and has assisted a lot of people in getting good health insurance rates. To get more tips on free online health insurance quote