Thursday, October 12, 2006

Life Insurance: Accidental Death Benefit Rider

What is an "Accidental Death Benefit Rider?" An accidental death benefit is where in case you died from bodily injury, your life insurance will pay your beneficiary additional money on top of your current coverage. You must not commit the injury on purporse. Of course, you have to pay additional premiums to get this benefit.

Folks, the chance of you dying from an accident is very very low. Every day, someone gets injured and its very rare that they die from it. If someone did die from accident, it must be concluded that no other medical factors contributed to that injury. For example, if you have weak bones or that you commonly have blood clots in your vessels, then you did not die from accident. It was your medical condition that lead to your death. In this case, your life insurance company will not pay the accidental death claim.

If you have this accidental death benefit, you are wasting your money. You are better off getting more coverage on your life insurance policy because life insurance will pay a death claim regardless on how you died. Accident death benefit only pays out if you died from bodily injury. With today's technologies, its almost impossible for someone to die by accident.

Monday, October 02, 2006

Fixed Rate Mortgage

Simply put, its where interest rate is locked in for life of the mortgage, either 15 years or 30 years. You don't have to guess what's your next month payment is going to be and you can easily budget yourself. Plus, you can add more to the principal to pay off your mortgage sooner. Just make sure it goes toward principal and not for advancing next month payment.

Good thing about having a fix rate mortgage is that if you bought a home when interest rates are low, you are lock into that rate for life of the loan. Bad thing is that if interest rate do fall, you can't change your interest rate unless you refinance, which will cost you more money.