The Basics of Life Insurance in Australia

Life insurance began in Australia in 1833, when the a company issued a policy to Joseph Tice Gellibrand. Gellibrand died fours years later, and so his policy was also the first claim paid. That company is still in existence today as an Australian insurance provider.
In 1849, a non-profit insurer was established, which later expanded its focus to include banking, managed funds, and other financial and investment services. Their name changed was eventually listed on the stock exchange.
Another major insurance company started as an insurer in 1914. Unlike the first two companies, they began with worker's compensation services. Currently, they offer multiple types of financial protection services, including life, home, and car insurance.
As times have changed, more insurance companies have come into being in Australia. They are now available to provide insurance quotes online and no longer require the insured to take a trip to the office. Types of insurance plans have also changed over the years. There are more options now than in the past, so that customers may choose more appropriate life cover.
Current policies
These companies, as well as many others in Australia, offer several main types of financial assurance packages. Term life insurance is the most basic and oldest form. In exchange for making fixed payments, the policy holder is guaranteed that if they die or are diagnosed with a terminal illness during the term of the policy, their beneficiary will receive a set amount of money. The primary use of this type of policy is to cover funeral and other death related expenses.
Total permanent disability (TPD) insurance instead offers protection in the event of the policy holder suffering a permanent and total disability. This policy differs from the first in that it is not limited to a set term but applies for the rest of the policyholder's life. The primary use of this policy is to offer financial stability for both the policyholder and his or her family and dependents in the event that he or she is no longer able to work.
A similar policy offered by life insurers in Australia is income protection insurance. Typically, this type of policy offers a guarantee of up to 75% of a policyholder's monthly income if he or she is unable to work due to a documented sickness or injury.

If you are interested in Life Insurance or Funeral Plans, be sure to visit Guardian Insurance.

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How to Acquire Life Insurance Quotes

There are many kinds of life insurance policies that can be purchased online catering to different sets of needs on the basis of budget and coverage, Go through these policies in detail to assess them properly. Each type of policies has it its own pros and cons, so a detailed study could provide very good clarity when it comes to selecting a suitable life insurance policy.

The Internet is a rich medium through which you can attain highly competitive quotes for insurance policies at attractive and cheap rates. First analyze the profile and needs of your own family and decide on the budget you are ready to allocate for your insurance policy.

With so many types of life insurance quotes available, it is crucial to first be able to distinguish one from the other before comparing their prices. Once you have done that the process is quite simple. Go online and fill up a simple form after which you will be contacted by local agents, who are part of nation wide network of insurance professionals. They will offer you free insurance quotes at highly competitive prices and you can take whole process forward from there on.

Types of policies available to the investor

Term Life Insurance

This form of insurance policy is aimed at providing the investor with temporary coverage and is one the cheapest forms of policies available in the market.

Whole Life Insurance

This form of insurance policy offers permanent coverage to the investor at guaranteed premium rates. This means that the rates do not change over a set period of time with cash value accumulating over the life period of the policy.

Variable Universal Life insurance

This form of insurance offers much greater cash value than whole life but requires the insurer to indulge in some investment options. This brings with it a fair amount of risk to table but can be a worthwhile option for those people who are good at making meaningful investments.

Lets now look at the three types of insurance policies in greater detail.

Term life Insurance vs Permanent life Insurance

Pros of Term Life Insurance

This is one of the cheapest forms of insurance policies available. For a 45 year old person in very good overall health and non smoker can avail a policy of 30 years coverage as part of a million dollar deal. The costs for this would be approximately $200 a month.

This kind of policy is easy to understand and not very complicated unlike other types of insurance products. You can easily go online and check for quotes on term life insurance or contact an agent referred from one your family member or colleagues to pick a suitable policy of your choice.

Being a temporary form of coverage has both negative and positive aspects. The positive being that it can provide financial help to your dependents. Also as your children grow older or your wife heads in to retirement, they would be less dependent on your income to survive. This makes it ideal to go in for term insurance for a period of up to 30 years when you have a newborn child in the family.

Cons of term life insurance

The temporary nature of insurance also brings with some negative aspects. At the end of the term the investor will not receive anything for which he has been paying premium for a long time. That means you would have to arrange for an alternative form of policy to look in to your various requirements. Also it becomes more difficult to buy a comprehensive insurance policy as you grow older because the body becomes more prone to sickness and may often require medical attention.

Whole life insurance Pros and Cons

Whole life insurance even though more expensive than term life offers the investor permanent coverage. It is one of the simplest forms of permanent coverage and has fixed premiums along with death benefits. Your cash value would continue to accumulate and the premiums are fixed making it possible to plan out your finances properly on a long-term basis.

One of the drawbacks of this kind of policy is that the premiums cost more than term life even though they do not increase over time. Also in this form of investment the investor cannot be guaranteed of receiving dividends. Withdrawals from your policy can reduce the death benefits, which will be paid out to your beneficiaries.

Universal Life Insurance

These offer greater flexibility to the insurer in terms of choice and scope than term and whole life policies. This form of permanent coverage allows the investor to make changes in policy with regard to premium rates, timing of payout, limits and death benefits. The insurer can increase or decrease premium rates or cash value and can still be guaranteed protection based on the changes made.

This form of policy is more complicated than whole life. Factors such as growth of cash value are assessed on a periodical basis which means in the event of a market downturn the performance of your policy could possible suffer. The investor may also have to pay higher levels of premiums.

Variable Universal Life Insurance

This kind of policy is in some ways similar to Universal life insurers but brings with it certain investment options. This form of permanent coverage offers greater flexibility with regard to premiums, death benefits, cash flow and other aspects. You can also choose to invest your cash flow in other funding options with the guidance of qualified investors. There is a lot of potential for growth but can also be a risky venture during market downturns.

Comparison of life insurance quotes

All these types of insurance policies bring with different sets of strengths and weaknesses to the table. Every insurer must go through each policy thoroughly before deciding on what works for best for them. Once you have decided on type, go online to get comparisons on various life insurance quotes. Also make it a point to talk to several agents and have all your queries clarified so that you do now have any lingering doubts. Speaking to several agents also will bring in greater clarity over the entire process and makes you better equipped to purchase the best policy in the market.

Andy L Billy was born in Houston, TX. He studied English Literature at Trinity University. He currently works as an insurance agent for a well known Insurance company. Visit our website http://www.beyondquotes.com and compare term life rates from top companies.

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Mortgage Refinancing Interest Rate Predictions, and Trends

When mortgage rates are lowest, homeowners who are refinancing will be able to save the most money possible. If you were able to have an idea of what to expect from mortgage rates over the next 6 months, you would have a huge advantage. Well, here are my mortgage interest rate predictions for 2009 and 2010.

Mortgage refinancing when the interest rates are the absolute lowest, is the key to saving the most money possible through refinance. When rates are lowest, so are your chances of getting the best mortgage deal possible. Early in 2009, mortgage rates were very low, around 4.69%. This represented an all time low interest rate, and many homeowners took advantage.

When the rates were that low, homeowners across the country flocked to get help and refinancing. The mortgage lenders and banks were quickly overwhelmed with a massive amount of paperwork, and needed to do something to stem the tide, and catch up on the pending applications. Interest rates were raised by .5% a few months ago, bringing the average to 5.19% for a typical 30 year mortgage. This increase was not drastic enough to stop homeowners who truly needed help, but was enough to stop homeowners from applying just to save a little money every month. Currently, mortgage rates are around 5.05% and have been slowly dropping. This interest rate is still nearly half the rate homeowners pay who bought a home just 10+ years ago.

I predict mortgage interest rates will keep dropping until they hit their prior lows of 4.69%. This will be the lowest mortgage interest rates get, and this will happen around November 2009 and last through April or so of 2010. Many homeowners will use this time to get a mortgage refinancing for themselves, and a much lower interest rate. If you can wait until the rates get lower, you should, but if you need help do something now. Interest rates are still very low, and refinancing will help millions of homeowners save money every month. Weigh your options, and take this mortgage rate prediction into consideration.

At my site I will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them. Learn the right way to refinance or modify your home loan at my site: http://www.refinancingcondo.com

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How to Calculate a Debt to Income Ratio

Financial institutions use debt to income ratios (D/I) to decide how much risk is involved when lending money to you. Why not figure this out on your own before you apply for a loan? Follow the simple steps below to find your D/I ratio.

First, you need to find your gross monthly income. This is listed on your pay stub or leave and earnings statement. If you don't receive a pay stub, you can use the W-2 form that you receive at the end of the year from your employer.

Second, you need to know the total minimum monthly payments you make each month towards debts. The easiest way is to review your monthly bill statements to find the minimum amount due each month. Another way is to find payments listed on your credit bureau report (CBR). If you don't have a copy of your CBR, then you can obtain a free copy of your credit report once a year from an online source, or contact your financial institution for more information. On the CBR from TransUnion, the monthly payment will be listed under TRADES>TERMS. Depending on the company (TRADES) they can report your debt as "Min97" which means Min payment is $97, or "24M204" which is 24 monthly payments (TERMS) at $204 a month. The minimum and monthly payment, and monthly term, will be different for each person depending on what is owed. You can also contact each company that you pay a monthly payment to and find out the minimum monthly payment amount. Don't forget to ask if they report to the credit reporting bureau agency.

Finally, once you have the gross monthly income and your total minimum monthly payments of your debts, you divide your total minimum payments by your gross monthly income.

See calculation example below:

Total Minimum Monthly Payments (debt) =$1,000

Gross Monthly Income (income)=$2,000

Divide $1,000 by $2,000 =.50 or 50% debt to income (D/I) ratio

So, what does this mean for you? This means that 50% of the money you make goes to debts. How do you feel about that? Great I hope! If you have a 100% debt to income (D/I) ratio that means you have no money left for essential needs like food. Having 50% debt probably means you are living paycheck to paycheck, but able to pay all of your bills on time, go out to eat once in a while, or go on vacation. Now you know, it can be good that the D/I ratio is at 50%, but what do financial institutions think if you have a 50% D/I ratio?

Financial institutions know you need some debt in order to build a credit score. They prefer your D/I ratio to be under 50%; ideal is 30%; best is under 10% because that means you have more money to pay back your loans.

Beware! There are some financial institutions that will loan you money if you have a higher D/I ratio, but they usually charge extremely high interest rates-making it very difficult to pay back. You can always call and see if they will tell you what their requirements are to obtain their lowest rate.

Calculating your debt to income ratio helps you be in control of your finances and helps financial institutions determine loan risk. What's your D/I Ratio?

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Loan Modification Qualifications - 3 Steps to Calculate Your Debt Ratio Correctly

When you apply for a loan modification you must prove that you meet the approval qualifications, and this includes your debt ratio. This term may be a new one to you, but in the world of loan mods it is a key calculation that plays a big part in determining which homeowners will qualify for a loan workout and which ones will not. Your bank will do a mathematical calculation using the financial information you provide to them to determine what your ratio is and whether it falls within the standard approval guidelines. It just makes sense to do this calculation yourself ahead of time so that you can make any necessary adjustments to your figures before your bank has a chance to review your information and possible turn down your request.

The debt ratio for loan modification qualification can vary slightly depending on the bank and also on the actual loan mod program you are being considered for. However, the federal plan called HAMP uses a standard approval guideline that over 90% of lenders are applying to their borrowers who apply for this loan mod plan. The goal of HAMP is to achieve a new payment that equals just 31% of the borrower's gross monthly income. In order to qualify for this very low interest payment plan, your current mortgage expenses must fall above the 31% figure and your loan must be able be modified using standard methods so that the new payment will equal this percentage.

Here are the 3 Steps to Calculate your Loan Modification Debt Ratio:

1. Complete your Current Financial Statement form detailing all of your gross monthly household earnings and your monthly housing expenses. This includes your house payment (first lien only, not any second mortgage you may have-that is a separate calculation) monthly property tax amount, monthly homeowners insurance and any HOA dues. You can take your annual property tax bill and annual homeowners insurance premium and divide it by 12 to arrive at the monthly figure.
2. Now, divide the total housing expense amount by the total gross monthly household income. For example if your total housing expense (house payment, property taxes, homeowners insurance and HOA dues) equals $1800 and your monthly gross income is $3600, then 1800 divided by 3600 equals 50%.
3. Now, verify that your current housing expense equals more than the 31% debt ratio qualification as required by HAMP. If your current debt ratio is less than that figure, then you will not qualify for the government program.

Now that you know what your debt ratio is and whether you are meeting the standard loan modification qualification guidelines, you need to determine if your loan can be modified using the standard methods. This is a more complicated formula, so you may want to use a loan mod software program to help you with this part. This helpful tool will calculate all the figures for you automatically and show you immediately if you are passing standard approval guidelines for loan modification approval. Having all this valuable information ahead of time will give you a big jump start on getting your loan mod approved because you will know just how to prepare your application correctly.

Susan Gregory is the author of two resource books for homeowners and real estate professionals, The Complete Loan Modification Guide Kit and The Stimulus Book-HAMP & HAFA Edition. She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies. The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a software program that mimics the federal approval triggers for loan modification. An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications. Thousands of homeowners have been helped using these materials. Visit http://www.myloanmodificationcenter.com for more information.

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