I don’t consider myself to be an idiot in most cases, but when I am approached about something which will help my family and me in cases of emergencies, I guess I am very gullible. My story begins when I was teaching school and often times insurance agents would require a portion of our time after school had ended for the day. This is what happened on this particular day. After my students had gone home, I made my way to the library to hear the insurance agent’s story.

The agent was selling long term disability insurance. I was interested and I had already purchased short term disability insurance. I hoped to never use either policy, but you never know, so I signed up for it and the payments began to be debited from my monthly check.

I have heart issues and I needed a defibrillator, so in October 2003, I received my first implant. To make a short story long, by March of 2004 I left my teaching position and went out on disability. I received my short term and my long term disability insurance. The short term disability was so pleasant and was never a heartache to receive. The long term disability insurance was another headache altogether.

Some months I would receive a check from the long term and other months, I would receive a letter explaining how they had overpaid me, so they would be subtracting the amount from the amount I should have received. It was a very confusing, frustrating, and financially unstable time for my family and me because the insurance was something we just couldn’t count on.

After a time, the insurance company began to send me letters stating that when I received my social security disability, I would be required to pay them back for the amount they had given me. I didn’t believe this because the insurance agent who came to the school to sell it, never once mentioned this small bit of information. And wasn’t insurance for emergency situations and I had never heard of paying back insurance because I had been paying premiums? This is where the gullible part comes in.

After I received my social security disability, I began to be hounded by the insurance company and their lawyers. They wanted their $19,000 and some odd dollars and they wanted it right then. At the time, the insurance company was not my priority because I had lots of doctor, hospital, and medicinal bills that needed to be taken care of first. I even approached my congressmen and my governor to help me with this issue.

Leaving my career and having to go on disability was not my choice. It was something I had to do to stay alive. The lawyers call my home and threaten my livelihood because they know they can get away with it. I am going to pay the insurance company back because they have threatened to ruin my credit and probably worse if I don’t, but I did manage to get the price down by 50 percent.

My advice to anyone who is contemplating long term disability insurance, don’t get it or if you do, please ask questions and make sure you are aware you will be required to pay the money back to the agency. If the papers I signed for the insurance really stated I would need to pay the money back, I can only say that I carelessly overlooked this most important information. I have learned a valuable lesson and I will never be so careless again. Please understand the money you will receive is really not insurance, it’s a loan.

If you plan to buy a Chicago property, the sooner you learn about title insurance, the better. For many first time Chicago real estate buyers, the first time they hear about title insurance at the closing of their Chicago property. This article presents the basics of title insurance for protecting your new Chicago real estate acquisition.

What is Chicago Properties Title Insurance?

When you buy a new car, do you insure your car? Of course! When you apply for car insurance, does the agent ask to see your title? Of course! That’s the basic idea behind Chicago Properties title insurance – to protect your Chicago real estate investment. The mortgage lender requires proof you own the Chicago property and no one else has a lien on your property. The chances or securing a Chicago real estate mortgage without title insurance are like the Chicago Cubs winning the pennant this year -only better!

Title Insurance – NOT Casualty Insurance

Casualty Insurance such as car insurance assumes risks for damage to your car or other property. When you have a covered accident or loss, they pay you. Title insurers earn their money by finding and eliminating risks to your Chicago property BEFORE you sign the contract. The amount of money involved is so LARGE, there is no room for mistakes. The Chicago real estate buyer and Chicago real estate seller both want the deal for the Chicago property to go through and title Insurance is the vehicle to close the deal.

Title Insurance Benefits Chicago Properties

First you should be healthy and live to a ripe old age in your new Chicago property… Because the problems that could befall you without title insurance could endanger your health such as investing your life savings in a Chicago property only to find you don’t have a clean title to it and wind up in court. The lawyer fees alone will set up back a small fortune or a big one depending how long and costly the fight to secure title to your Chicago property.

Chicago Properties Title Insurance Policies

Title insurance policies come in two types of policies: An “owner’s” policy which insures you, the homebuyer and your heirs . The other type is a “lender’s” policy to protect their security interest in your Chicago real estate acquisition. As opposed to car insurance, the title insurance premium is a one time payment based on the size of your Chicago property purchase. Also, shop around for title insurance to save money better spend on your new Chicago property. Happy Home Hunting!

It seems like everyone is talking about life insurance needs but neglect the consideration of disability insurance. Did you know you are more likely to get injured on the job and not be able to work and draw a pay check than you are to be injured on the job and die because of that injury.

When you are injured your bills do not stop coming, the mortgage, electricity, water, gas, food, automobile payments, health insurance, etc. still have to be made whether your able to work or not. This could be a tough break for most of the working population, who are usually living from paycheck to paycheck just to make ends meet.

For some reason we are not informed about this scenario until we are smack dab in the middle of a life changing catastrophe like an injury, and life doesn’t stop. There are no detour signs in life that are easy to see like “Stop, you are about to be injured and will need something to supplement your income while you are down…this injury will happen in 5 days…so be prepared.” If only life were that simple.

But, we can be prepared and informed. So, let’s look at what a disability policy will do for you. First, it will pay you a monthly paycheck for the down time you are experiencing while you are healing which of course is the best thing to help pay your bills that are still coming in.

With disability insurance there are varied options available for you to consider. Your benefits will be based on your occupation and gross monthly income. The payout in monthly checks is a percentage of your gross monthly income, it will not pay 100% of your income.

There are elimination periods to consider like 30,60,90,180 days or longer. The elimination period is the time from when you are first injured to the time that you get your first paycheck. The longer your elimination period the lower your monthly disability premium will be.

The two common disability plans available are short term and long term disability. The short term plans usually have a benefit period of 6 months. The long term plans have a varied benefit period of 1,2,5, or 10 years, or to age 65. You choose the length of coverage when you set up your policy.

Optional benefit riders are available as well to be added to the policy. Some examples are: Return of Premium Rider (Surrender Value Rider) which will return all your premiums back to you at age 65. Another example would be the Cost of Living Adjustment Rider which will allow for inflation adjustments in your benefits, as well as many other optional riders.

It’s important to ask yourself questions as you journey through life to keep yourself prepared for all of life’s challenges and we all face them. If you did sustain an injury that would not allow for you to work, how long could you live your current lifestyle. Basically how would you be able to survive financially, who or what have you placed in your life to be a helper when the road gets tough….Disability insurance can be a very valuable asset when you are facing a set-back.

I hope that this information has been helpful to you.

No Faxing Installment loans can be defined as the loans in which the amount of the loans taken can be repaid in easy monthly installments. The benefit of these loans is that the urgent requirement can be fulfilled now and the payment of the borrowed amount can be made after some time in the form of monthly installments. The payback period and the amount of installments are settled by the mutual agreement of both the parties. Another benefit of these no faxing is that the loan process is very fast. The borrower can apply for the loan online and the disbursement process is so quick and fast that loan money is with the borrower within few hours.

No Faxing Installment loans can be availed by the people with bad credit. You will just have to apply for the loan through internet and the money will be credited in the account in few hours only. If you are having a bad credit history then also you need not worry as this will not disqualify you for the loan. Lenders are not bothered by the bad credits. The lenders are bothered about the regular income of the borrowers. This assures them about your power to pay back. But the repayment of the loan has to be made within the specified time.

If the lenders ask for an online application, then this form is the sufficient document to get a loan. The payback structure is also very convenient. Loan amount is to be paid in easy monthly installments. That too can be fixed in accordance with your convenience. The amount of the monthly installment is decided on this basis. The payback period can vary from 5 to 25 months which can be extended according to requirement. These loans are available to everyone even if the borrower has bad credit history.

Personal cash loans are essential during emergencies. If there is an
unexpected expense such as a utility bill or car repair, most people whip
out the credit cards. Because of high finance charges, and the fact
that most consumers have little available credit, using credit cards may
not be an easy fix. In this case, obtaining a short-term cash advance
loan will provide you with the needed cash.

Using Cash Advance Loan Companies

Cash advance companies are financial institutions; however, they
operate differently from banks. If you attempt to acquire a personal bank
loan, the bank or credit union will pull your credit and lengthen the
process to ensure you meet all requirements. Cash advance companies have
easy lending requirements. There are no credit checks. Furthermore, you
can have funds within a few hours.

Although personal cash advance loan companies approve most loan
applications, companies do require applicants to have stable employment and
make a minimum monthly income. Moreover, you must have a confirmable
checking or savings account to get a cash advance loan.

Payday Loan Company Options

Individuals hoping to acquire a fast payday loan have several options.
Cash advance companies operate online and offline. Local cash advance
companies offer convenience. However, if you prefer privacy, applying
with a local company may not offer the anonymity you desire.

On the other hand, online payday loan companies offer total privacy. In
addition, you can apply for a loan in the comforts of your home or
office. The entire process is completed online. When your application is
approved for the loan, the cash advance company will notify you through
email. Within 24 hours, the funds will be deposited into your checking
or savings account.

Online payday companies may request fax copies of paycheck stubs or
bank information, whereas other companies are faxless. If using an online
cash advance loan company, you should review websites that offer a
recommended list of reputable online payday loan companies. This way, you
can compare lender fees and terms. Once you choose the perfect loan
company, complete an online application, and wait for a response.

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As the water began to drain from New Orleans in 2005, we learned that most of the homeowners in New Orleans did not have flood insurance, since they were supposedly in “low risk” areas. The over 60% of homeowners will need to depend upon their own savings, and limited federal assistance, to rebuild New Orleans – at an uncalculated cost for homeowners and taxpayers.

Could that level of disaster, especially that level of uninsured disaster, happen in California? Less than 15% of California homeowners currently carry earthquake insurance, due to its high cost, the “can’t happen to me or my house” factor, and mortgage providers not requiring coverage. The next big quake will result in billions of uninsured damage – but is earthquake insurance really worth the high cost?

How Did We Get Here?

The state of California requires that all homeowner’s insurance providers to at least offer earthquake insurance (albeit, at a high cost). Until 1994, it was widely available – but the high damage costs of the Northridge earthquake resulted in 97% of homeowner’s insurance providers pulling out of the state the California. In response, the California Earthquake Authority was formed by the California legislator to provide earthquake insurance.

What Is the California Earthquake Authority, and How Does It Work?

The California Earthquake Authority provides two-thirds of the earthquake policies in California, sold through their member providers, like Allstate and State Farm. A homeowner purchases the policy through their regular insurance agent, but the policy is actually a CEA policy.

The CEA currently has about $7.2 billion to pay claims, which it states is enough to pay foreseeable damages (Loma Prieta in 1989 had $6 billion in total damages). If the damage claims are more than $7.2 billion, then each claim would be paid a prorated portion of their losses – unlike a regular insurance company, which promises to pay the actual damages under the insurance policy. The state of California cannot help pay the claims out of general funds.

The policies also have a high deductible – usually 15% of the value of the dwelling. In other words, your home must be damaged more than 15% of its value before the insurance starts paying. So, this insurance is not for cracks in the driveway – it is for significant structural damage to your home. The policy also pays for limited contents (starting at $5K) and loss of use (starting at $1500).

Why Is Earthquake Insurance So Expensive?

Insurance policy premiums are calculated based on probabilities – the probability that a house like yours in a neighborhood like yours will catch fire, or a driver like you will have an accident. With data from millions of homes, these probabilities can be calculated with reasonable accuracy. But, no one can reliably predict the probability that there will be an earthquake strong enough to damage your home.

And, as you can imagine, damages from an earthquake, flood, or hurricane, are widespread, over potentially thousands of square miles – instead of one or a few dozen homes, as in a fire. As such, the insurer would have to pay either zero claims, or billions of dollars of claims – too much variance to reasonably plan for or price accurately.

Are We Really At Risk Here in San Jose?

According to the USGS, there is a 62% probability that there will be an earthquake of 6.7 or greater (like the Northridge quake) in the Bay Area in the next 30 years. In my zip code (San Jose 95126), USGS calculates a 80% chance of a 6.0 earthquake and a 20% chance of a 7.0, in the next 30 years. Whether you consider that to be a high risk depends on your risk tolerance for earthquakes – I consider that a high risk of a moderate earthquake and a somewhat low risk of a terrible earthquake, over the next 30 years.

But like any issue involving real estate – it is all local. Where your home is actually located significantly affects your risk – bedrock, reclaimed land from the bay, soil type, nearby streams, actual distance from the epicenter – all can affect potential damage.

But of course, many earthquakes occur where the USGS was not even aware of a fault line – and we never know when or where it will happen, until it happens.

Should I Obtain Earthquake Insurance?

Factors to Consider:

Could you afford to pay for the rebuilding your home from your own savings & investments? Can you afford to pay the high cost of insurance, indefinitely? Could make payments on your current mortgage and on a new loan to rebuild? Can you mitigate your potential losses by bolting your roof to the walls and the walls to the foundation, for example? What is your tolerance for the risk of an earthquake? What is the risks of your current home construction (type, age, foundation)? What are the risks of your specific location (soil type, distance to known faults)?
Are the Costs Worth It?

Let’s assume that you have a home that would cost $250K to rebuild, you will own the home for the next 30 years, and your earthquake premiums are $1200 per year. Over the next 30 years, that would be a total of $36,000 in premiums (assuming your premiums do not increase, to simplify calculations).

Instead of purchasing insurance, you invest the premiums in a diversified mutual fund. With an 8% annual return, you would have $135,000 (pre-tax) in year 30.* But of course, you only have that total in year 30, not in year one – meaning that if the earthquake happens tomorrow, you don’t have the money.

The deductible is another big turn off for many homeowners. The insurance pays only for large structural damage, not broken dishes or cracked driveways – meaning that it is less likely you will use it. However, be aware that you will not need to come up with the cash for the deductible – you may either opt to not undertake those repair or rebuilding costs, or you can apply for an SBA loan to pay for the deductible (assuming a federal disaster area is declared).

Why Not Just Get Federal Aid, or “Walk Away” and Let the Bank Have the Property?

The federal government would probably provide access to SBA loans, if the area is declared a federal disaster area (no small business required). However, the $200K maximum SBA loan may not be enough to rebuild your home – and, it is a loan that you need to pay back (in addition to your current mortgage).

If you have refinanced your mortgage, you have a recourse mortgage – which means that not only can the bank foreclose on the property in case of non-payment, the bank can also come after your personal assets and future income in case of non-payment. So you cannot just walk away, especially if you have a good income and some personal assets. The bank may help out by deferring payments for a few months, but you still must pay back the loan.

Last Thoughts

We have earthquake insurance on our home. Our home was not yet built in the 1906 earthquake (so who knows if it would stand), it is 75+ years old and is not bolted to the foundation, and we have a refinanced mortgage. For my family, the insurance premiums are worth peace of mind in case of a major earthquake disaster. That’s exactly what insurance is for – the “you never know.”

*calculations ignore inflation