Mortgage loans are available through banks, credit unions and other additional independent home–financing agencies. In mortgage loan, you can purchase a home, land, car or any other property by keeping that same property as a collateral. In case you commit a default to pay the monthly payments, the lender takes the home or car away.
Types of Lenders:
1. Mortgage Banks: They are direct lenders wherein the bank employees take the decision to lend you the money. The bank employees review your application, and check for the necessary details such as your annual salary, credit history, etc. and accordingly give you the mortgage loan. Mortgage banks are reliable because they are regulated by the government state and federal agencies. Since they are the direct lenders there is no intermediary party involved. This leads you to dealing with the source of your mortgage loan and the process of passing your loan is much faster. However, the mortgage banks offer their own schemes, so it is better if you compare the plans of 2–3 mortgage banks so as to get the best deal.
2. Mortgage Brokers: A mortgage broker is a representative of the mortgage loan products of various mortgage lenders. He is not the source of the loan but is a middleman who helps an individual with the variety of loan products to suit his/ her need accordingly. The mortgage broker tries to help you to select the best offer. When the loan gets approved, he will direct you to the primary mortgage service provider. A mortgage broker helps in saving your time for crosschecking the loan rate of different loan companies. He provides access to the good lenders by showing you a variety of different schemes offered by various banks. However, while dealing with mortgage brokers make sure that there are no hidden costs and ask as many questions to the broker. Also check whether the particular mortgage broker has the right to license and regulate in that particular state.
3. Credit Unions: They offer a limited range of loans just as the mortgage banks. The mortgages that they hold are sold into the secondary market.
4. Internet Lenders: They are primarily known for giving fast, easy loans at competitive prices.
5. Real estate Agencies or Builders: They use this form of mortgage lending to sell their land or houses. They operate with a mortgage bank or institution and provide homes/ property on mortgage loans.
While selecting a lender consider the following points:
• Consult family and friends and preferably select those lenders who are known to either your family or friends.
• Before making a decision, that the mortgage lender you have selected is licensed and has all the regulatory powers. This will save you from being cheated.
• Check out for any hidden costs. Hence, ask a lot of questions and verify for any hidden costs again.
• While purchasing a mortgage loan online, make sure that the broker has the appropriate credentials. Reliability is the key issue here because you will be inputting your credit card number and other financial details for buying the loan.
• During peak seasons, mortgage loans are available plentily. There are many attractive and mouth watering offers. Make sure that the lenders or mortgage brokers are genuine, and do not present you with false rates or hidden costs.
Health insurance basics
With the rising costs of medical care, health insurance is becoming an essential step towards ensuring that you and your family have access to quality and affordable health care. If you do not qualify for state sponsored health insurance you can buy a health insurance policy from one of the many private health insurance companies. Before investing your hard earned money, there are some health insurance basics that you must keep in mind.
Type of Plan. There are many kinds of health insurance plans. Each of these plans has its own advantages and disadvantages. Most plans are variations or combinations of the two basic plans – Indemnity plans and Managed–care plans. The merits of each have been discussed in our series of articles on health insurance.
Coverage vs. Affordability. This is the trickiest part when purchasing health insurance. A plan must provide you with sufficient coverage to cater to all your health insurance needs, yet it must also suit your pocket. Finding a plan that provides you with the right amount of coverage for the right price will take a bit of research and persistence. You may even consider employing the services of an insurance agent to help you with this process.
Quality. The last but most important factor is quality of service. A health insurance plan is there to provide you and your family members with financial backup or appropriate medical care in times of a health crisis. If your insurance provider backs out or provides you with sub–standard service at this crucial time, you will be left without a helping hand when you need it most. The simplest way to ensure quality of service is to buy insurance only from a reputed insurance company.
What is health insurance
The protective cover that a health insurance company gives to its insured customer for his medical needs is called Health Insurance. For example, if you purchase a health insurance policy, the insurance company will then pay your medical bills. The doctor’s visiting fees, the cost of surgeries, the hospital bill for the time you have stayed in the hospital and other such medical treatments will be paid by the insurance company. However, the type of insurance policy that you have opted for, will determine the extent to which these bills are paid.
You will have to fill up a detailed form and maybe even undergo a medical test before purchasing the health insurance policy. Your premium amount will then be decided on the basis of your age, lifestyle, present health status, medical history and some other things like your smoking habit and your occupation. This way, the healthier you are the lesser premium will you have to shell out.
Private and government organizations offer health insurance plans to the public. A lot of companies also give some form of health insurance to their employees as an incentive. In fact, these credit card companies too give free health insurance as a benefit to their users.
Fact remains that health insurance comes with a high price so it is absolutely essential that you read and understand all the details of your policy. Your health insurance company may also specify names of the hospitals that are affiliated with it. At least one of the hospitals specified should be near your house or work place so in case of emergency, you do not have to spend money on excessive travelling. It is important for you to remember that unlike in the case of life insurance, your health insurance may need annual renewal. In that case, do try to find out the ways in which you can avoid the random rise in your annual premium.
Choosing a plan
Choosing a health insurance plan requires a lot of care and forethought to ensure that your plan suits your requirements. There are many different types of plans available in the market and there are number of factors to keep in mind when choosing one them. Some of the factors that you should keep in mind when choosing a health insurance plan are:
Coverage. The kind of coverage offered by the insurance plan is the single biggest influencing factor when picking a plan. The plan should provide you with adequate coverage in areas such as routine physical examinations, specialized care, emergency care, medication, dental examinations, mental health care, and rehabilitative care. It must also provide coverage for any other special health–care needs that you may have identified.
Affordability. The second important factor is the affordability of the plan. The plan should fit your budget comfortably. It is pointless to pay insurance premiums for coverage that you may not even require.
Quality. In your search for an affordable health insurance plan, you must not overlook the quality of health–care offered. There are a number of plans in the market that are available at rock–bottom prices. However, such plans may not provide you and your family with quality health care that you require. One good way of ascertaining the quality of service offered is to find out if the insurance company and any associated medical organizations have received accreditation by the Government. If possible, you can even obtain feedback from existing customers to obtain a fair ide of the quality and range of medical service offered.
Long term care
For most people in the prime of their health and youth, an investment in long term care insurance may seem to be a useless expenditure. However, if you sit down and think about it carefully, you will see that this is not as frivolous an expenditure as you thought it to be. Consider these statistics obtained by governmental health studies:
• Nine million men and women over the age of 65 will require long–term care this year; twelve million elderly Americans, by 2012.
• U.S. Department of Health and Human Services predicts that people over the age of 65 have a 40 percent chance of being cared for at a nursing home.
You are still young, so why should you worry about your old age and invest in long term care insurance? There are two reasons to do this. Old age is a fact of life. All of us grow old, and chances are, we shall probably require some form of long term care or the other. Secondly, old age is not the only condition that may precipitate long term care. What if you are involved in a debilitating accident, or suffer from a prolonged illness, that involves long term care? The prudent thing to do would be to invest in a long term care insurance policy when you are still young, so that your premiums are low and you are prepared for eventuality.
Our website has a series of articles on long term care insurance that will answer all your queries. We address the benefits of long term care insurance, tell you how to keep your insurance premiums low, and introduce the concept of partnership programs. These articles are written in simple English so as to be easily accessible to the common man who does not have much knowledge of insurance
Your health insurance plan takes care of your medical bills related to your health care needs. The long–term care insurance covers your medical bills at the time of an elongated illness or recovery. But, none of these takes into account that you will invariably be out of job during such times. That will lead to a loss of your regular monthly income. However, this loss of income can be made good if you have purchased a kind of insurance called the disability insurance. Of course, the extent to which your loss is replaced will be determined solely on the basis of which type of disability insurance plan you opt for. In addition, the money that you will thus receive is tax–free.
You will find all the relevant information on our website that will help you decide if you need a disability insurance plan or not; and if you think you do, then what kind should you go for. We have given an exhaustive list of all the different types of disability insurance plans that are available in the market along with their pros and cons. Our website will be useful in helping you decide over the disability insurance plan that will meet your requirements the best and also the way for you to go about purchasing it. We have published information on the way insurance premiums are calculated with tips on how you can keep your premium low. Moreover, we have even given information on the employee coverage that many organizations offer to their employees these days. Our website cover these topics:
• Meaning of disability insurance
• Kinds of disability insurance plans
• Procedure to buy a Disability insurance plan
• Calculation methods of disability insurance premiums
• Meaning of employer coverage
• Some more relevant information