Banking & Finance

As an Indian citizen, it is likely that you are well aware of the vast saving culture the country has running wild within. While we have come some way from people storing their lives earnings under their mattresses, only to lose it all to a sudden demonetization push, the average Indian citizen still prioritizes saving, something that is instilled in them even before they are born.  

This practice of saving most of your earnings, however, especially with the advancement in the globalization movement, has drawn a lot of criticism, with the opportunity cost of stashing away your earnings being immense. Countless data shows that fiat currencies lose their value over time (you can use an FD calculator to check), and thus it is important to invest in financial assets that will ideally outperform, or at least grow at market rate. So, should you still be investing in a fixed deposit account? 
 

The Pros of investing in Fixed Deposit

• Security: Since your money is stored with a bank, you can be almost completely carefree about your money being stolen or lost.  

• Very low risk: A fixed deposit is effectively a guaranteed return scheme, as you are storing your money in your bank account, and the only action this money takes is to sit idle and generate interest. Unless your bank goes bust, you will not be losing your money.  

• Returns: Many criticise a fixed deposit account for the low returns. However, this is one step better than storing money in physical form, as you can earn interest. You can use an FD interest calculator to assess your earnings.  

• Fixed interest payouts: You can set your term of choice and can even opt for monthly, quarterly or yearly payouts if you are in need of the money.

The Cons of Investing in Fixed Deposit

• Low returns: Just because you use an FD interest calculator and see you get a certain percentage as returns, does not mean this is good. FDs offer very low rates of returns, and when adjusted for inflation in the long term, you could be losing money.  

• Penalties: In a fixed deposit, your money is effectively stuck till the term lapses. If you need the money earlier, therefore, you will have to ‘break’ the FD and pay the subsequent penalties.  

• No more tax exemptions: After the 2019 budget, any interest earned over 40,000 on an FD is now to taxes that are deducted at source (TDS).  

Conclusion

If you are looking for a simple answer to the question ‘should I invest in an FD’ then you do not need an FD Calculator to tell you that the answer is a resounding yes. However, you are asking the wrong question. Were the question to be ‘should I invest all my money in an FD, you would get a more realistic answer. An FD is a low-risk investment instrument. Its best use, therefore, is to offset high-risk instruments in your portfolio. The goal here is to create a diversified portfolio, due to which you will not have to rely on your FD only and constantly.  

Tristan D. Porter

I am Tristan who loves to ride and spend time with my jenny (horse) and my love Mark. After completing my graduation, I have been working as an accountant in a private firm in Cologne.

Any business owner knows that keeping on top of the finances and administration is one of the cornerstones of success. Some companies work with a couple of clients and bill them on a fixed basis, others take thousands of payments from customers and need to keep detailed records of each transaction.

Companies need good financial systems in place to keep them running smoothly and the most successful are often those that are proactive about adopting new technology. By accepting different payment types and embracing the latest security measures businesses can give their customers the reassurance they seek.

Financial management software can offer a range of different features to help you keep track of your finances and even automate some of your more time-consuming tasks. Managing your finances with this software can be an easy and effective way to improve accuracy and minimize the risk of mistakes being made.

Handling Checks

Most businesses make and receive payments in a variety of ways including:

• Online Payment Platform
• Automated Payment
• Wire transfer
• Credit card
• Debit card
• Automated Clearing House (ACH) Transfer
• Electronic Funds Transfer
• Checks

Although they have become less popular in recent years, technological advances have given checks a new lease of life. They have always been a popular choice in certain sectors, and there are many advantages to checks including:

• Checks can be used to make payments by mail
• There’s no need to carry cash when using checks
• Using checks doesn’t usually attract any charges
• Checks can be stopped or cancelled if they are lost or stolen

Businesses that use checks often want to ensure that they are using the most secure option available to them, and this can help reduce the risks that are associated with any payment method. Businesses that use checks need to be aware of the potential pitfalls of using checks so that they can mitigate the risks.

1. Incorrect data: a check that isn’t filled out correctly can be difficult to process, so many businesses implement additional checks to ensure that each element of the check has been completed correctly. Businesses can use printable checks to reduce the chances of mistakes, and these can include payment details and deductions to make record keeping as easy as possible.

2. Lack of security: check technology has moved far beyond simple pieces of paper, and you can now get checks that have in-built security measures. The most advanced checks now use security holograms that are tamper-resistant and impossible to counterfeit, so businesses can improve their financial security by choosing cutting-edge checks.

3. Ineffective record-keeping: maintaining an accurate record of income and expenses is an important part of running a successful business. Using checks for payroll can help keep track of deductions and invoices, and multiple stubs can be useful for keeping accurate and detailed records, both digitally and in hard copy.

4. Improper disposal: businesses that handle checks need to have an effective way of disposing of them. Checks should be destroyed in a confidential manner to avoid any personal data being accessible to anyone else.

Although checks are not quite as ubiquitous as they once were, they are still a popular choice among businesses and consumers who appreciate their convenience and versatility. Offering a wide range of payment options makes a business more accessible to customers who may have strong preferences when it comes to how they manage their money, so understanding checks can help businesses to widen their market.

By understanding how to handle checks effectively, any business can accept and use them with confidence, knowing that they can put measures in place to maximize their security. Most high-tech providers are combining new technology with traditional payment methods to ensure that those who want to use checks can do so in the knowledge that they are safe and secure.

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

Wondering how to restore credit after bankruptcy? Good news! There are several simple and effective ways to rebuild your credit rating after bankruptcy.

Even though the record of your bankruptcy stays on your credit bureau reports (Equifax and TransUnion) for approximately six years after your bankruptcy discharge date, you can start rebuilding your credit as soon as you are discharged – and it won’t be long before you see your credit score begin to rise.

Let’s review a shortlist of the most popular methods.

1. Get a “secured” credit card

Using a secured credit card and keeping a perfect payment record on it will boost your credit rating.

Note that a secured credit card is not the same as a pre-paid credit card. With a pre-pay card, you deposit funds into the card, and you are limited by how much you deposit – so you are not using “credit,” and you do not build your credit rating.

Secured credit cards, by comparison, do build your credit rating. With a secured credit card, you pay the issuing bank or financial institution a deposit, which is kept separate from your credit account as security for the financial institution. The deposit is often the same amount as your credit limit.

Your secured credit card, which is a VISA or Mastercard, is a true credit card and does not look different from “regular” credit cards.

You can use a secured credit card for anything you need credit for, up to its limit. You’ll also have a monthly payment, just as with any credit card. Keep in mind that even though the financial institution is protected by your deposit, your credit rating will still be damaged if you are late on payments, or miss them.

Several financial institutions offer secured credit cards to Canadians. You may also wish to ask at your bank – some banks will arrange secured credit cards within the bank branch for their customers.

2. Get a car loan

Similar to method #1, this method improves your credit score by giving you credit history. Maintaining a perfect payment record until you pay off your car loan will have a noticeable beneficial effect on your credit score.

Car loans are often used to repair damaged credit ratings. Compared to other forms of credit, it is relatively easy to qualify for a car loan. In most cases, the car itself serves as collateral for the loan, so the risk to the credit company is reduced.

3. Get a small loan from your bank – perhaps for your RRSP

If you don’t need a car loan, you can approach your bank and ask about a “credit builder” loan – specifically to help you repair your credit rating. The bank may approve you for a small unsecured loan, or they may use funds on deposit in your savings account as security.

Whether the loan is secured or unsecured, it can be used to apply towards your RRSP if you have one – a financially savvy move – and you can make your loan payment from your income until the loan is paid off.

Having a loan as well as a credit card on your credit bureau report is especially beneficial, as your score increases when you have a good history of managing more than one type of consumer credit.

4. Practise good credit habits, including maintaining a perfect payment history

Make sure that when you begin acquiring new credit after a bankruptcy, you do not experience the pitfalls that may have caused your credit woes in the past.

Be scrupulous about making your payments on time. Never miss one.

Be careful not to acquire too much debt. This may sound like an odd caution, given that it can be challenging to be approved for credit after a bankruptcy. Your available credit sources may charge high-interest rates, so make sure not to overspend on credit.

Check your credit report and credit score to see how you are doing. Many banks now offer free credit reports from Equifax or TransUnion to their customers who use online banking or banking apps. If you find any mistakes in your credit report, be sure to contact the credit bureau.

For more information on repairing your credit score after bankruptcy, see the article “A Guide to Rebuilding Credit After Bankruptcy” from Bankruptcy-Canada.ca.

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

Human life never moves out of astonishments, be it good or bad. This is why it is imperative to possess a financial backup plan that helps you overcome any storm. While you may be the most disciplined individual when adhering to resources and saving a part of your earnings every month, unforeseen circumstances may transpire that can render you in economic ruins, particularly when you do not have a plan B.

This is when people run from pillar to post and need emergency money now to take care of their financial obligations. It is where funds and financial planning for emergency expenses come into the picture.

These emergency expenses funds are an indispensable corpus that you must put aside to tackle contingencies. It is a capital you can use at the time of crisis or for sudden and unplanned situations to meet your expenses.

Best backup plans to handle emergency expenses

Mentioned hereunder are some best options to handle emergency expenses without running out of your budget.

Emergency reserve fund

Creating an emergency reserve fund is your most effective tool for dealing with unexpected expenses. An emergency fund is a compilation of personal savings that you set aside for sudden and urgent outgoings such as car repairs, house maintenance, and medical appointments.

You can manage unforeseen issues right away with the assistance of these cash reserves without interrupting your budget. The withdrawal will not affect your ability to pay your mortgage, utilities, household goods, and other monthly necessities. The only drawback to this backup option is that it takes time to develop into a significant safety net.

Credit card payment

If you don’t have emergency savings, you could use your credit card as a fallback option. Your credit card allows the user to manage expenditures when you don’t have enough money on hand and then oversee installments later.

Before considering this option, ensure that your remaining balance is not close to your pre-approved limit. You don’t want to use your credit card to its limit. If you have different cards, use the one with the most account balance.

Line of credit facility

A personal line of credit is another lending tool that can be extremely useful in an emergency. If you apply for a line of credit digitally and are approved, you may be able to withdraw funds up to your credit card limit and have them transferred into your bank account.

When you don’t have enough income, you can use this to cover an emergency expense rapidly. You will have to reimburse the money borrowed over time, just like you would with a credit card.

Go for a short term loan

A short-term loan is yet another excellent way to meet your emergency expenses. This short-term loan can readily help you fulfill all your financial obligations with a flexible repayment option without being dependent on anyone else.

However, while there are several types of short-term loans available in the market, it is imperative to perform thorough research and examine your affordability while opting for a short-term loan. Apart from this, take your monthly earnings, regular expenses, and monetary obligations into consideration to decide your repayment capacity.

IOUs or personal borrowing

When it comes to contingency systems, an IOU should be the absolute last option. To begin with, you can’t count on your friends or relatives to have the funds you require on hand. They aren’t financial institutions. It is why requesting an IOU is not a reliable emergency solution.

Even if they sincerely want to assist you, they may not have what you require. Another reason why an IOU should only get used as a last resort is borrowing money from friends can ruin your friendships, especially if you don’t have the financial means to repay the loans straight away.

When you take funds from a financial institution, you do not get exposed to this visceral risk. Moreover, if you don’t pay back the loan on time, the lender may begin charging you penalties and interest all in the name of the business. Also, your late payment will be taken personally by a friend. Hence it is better to walk away from this backup plan as much as possible if you want to keep your friendships and family relationships intact.

Saving a fraction of your income, living within your means, ignoring unnecessary expenses, and monitoring your accounts are all sound financial habits to develop. When you develop good financial habits, you can build the fiscal discipline that will help you achieve long-term financial success.

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

This article is for entrepreneurs searching for counselling regarding the best way to deal with their organization’s funds. Overseeing funds can be quite difficult for any entrepreneur. Frequently, the concept around your private business being influential is a result of the abilities you bring to the table in making your product or offering your services. In case you have very little involvement in overseeing business accounts, it can feel like a chore and you could be falling back into the same failing financial patterns that could one day hurt your business.

The main thing for any entrepreneur is to prepare themselves. By understanding the fundamental abilities expected to maintain a private company – like doing straightforward record-keeping, applying for an advance, or making budget reports – entrepreneurs can make a stable financial ground and keep away from disappointment. Dealing with your business financial accounts is significant for making a stable ground for your company’s future and putting it on the right path to succeed and grow.

Here are some tips for the financial dealings of your business. The following are a couple of things you ought to do as an entrepreneur to keep your finances under control:

Don’t Resist Loans

Loans can sometimes be terrifying. They can prompt you to worry over the economic repercussions that go with disappointment and failure. without the inflow of capital you get from business loans, you might meet considerable difficulties when trying to get the equipment or expand your team. You can likewise utilize advance returns to support your income and in this manner face fewer issues paying workers and providers on schedule. Specialized business lenders like Thinking Capital can guide you and help you get a suitable loan for your small business.

Keep a Great Business Credit

As your organization develops, you might need to buy more business land, procure extra insurance arrangements and take out some more loans to work with this load of work. With helpless business credit, getting aid for this load of sales and acquisitions can be more troublesome. To keep great credit, take care of all your loans and pay them back straightaway.

For instance, don’t allow your business to be on a negative balance for more than half a month. Similarly, don’t take out advances with financing costs that you can’t bear. Just look for financial aid or loan that you can rapidly and effectively pay off

Your Billing Strategy Should Be Good

Each business has a customer that is usually fairly late on all payments and invoices. Overseeing private company funds additionally implies overseeing a steady income flow to assure your business is working without hindrance on an everyday basis. In case you’re battling to gather from specific clients or customers, it might very well be an ideal opportunity to get creative with how you can charge or fine them.

Always Oversee your Company’s Records

Of course, every business does it but it is important to mention it as it is the most crucial step. Make an additional effort to save time every day or month to survey and screen your records, regardless of whether you have a clerk. It will enable you to be more informed with the accounts of your business, and additionally equip you with a sense of noticing an error if something goes wrong.

Establish Good Financial Patterns

Specifying internal financial strategies, even if it’s as simple as committing to saving some time to review and update financial information, can go a long way in protecting the financial condition of your business. Keeping up with your finances can help you identify fraud or risk.

By following this advice you help your business manage and improve its financial dealings.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

When it comes to securing your family’s financial future, determining the best life insurance policy you require is critical. While there are numerous types of life insurance policies, they may all be classified as either term or permanent. The only difference between them is how they work.

In today’s article, we will go over the different types of life insurance policies and the best life insurance policy in each category.

Types Of Life Insurance Policies

The different types of life insurance policies include:

Term Life Insurance

Term life insurance is one of the most common types of life insurance and is often regarded as the most basic sort of life coverage.

Term life insurance works by paying a fixed monthly premium (such as INR 2000 per month) for a particular amount of coverage (such as INR 40 lacs) for a set time or term length (Like 20 Years).

If you live over the term length, the insurance will expire; however, you can renew it on an annual basis, at which point your premiums may increase.

If you die before the term expires, your beneficiaries will get the total amount of the coverage (or death benefit).

You should now be able to see why this is the best life insurance policy.

iSelect Star Term Plan – Canara HSBC Oriental Bank of Commerce

The iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce is a pure protection term plan that provides full coverage to the insured’s family. This plan, as one of the insurance plans available on the market, is suitable for people who wish to guarantee the future of their loved ones at a reasonable premium cost.

Whole Life Insurance

The other major types of life insurance are known as whole life insurance.

Whole life insurance is a form of permanent life insurance that covers you for the rest of your life.

Unlike a term life insurance policy, a whole life policy allows you to accumulate cash value.

Whole life insurance works by having you pay a fixed monthly premium (say, 6500 INR per month) for a particular amount of coverage (say, 36,00,000 INR) for the rest of your life.

When you die, your death benefit will be paid in full, and if you have allowed your cash value to accumulate, it will be paid in addition to your death benefit.

PNB MetLife Whole Life Wealth Plan

The PNB MetLife Whole Life Wealth Plan is a comprehensive insurance plan that provides insurance coverage, wealth building, and the option to invest in a variety of market-linked funds. This insurance policy is highly recommended for inclusion in one’s financial portfolio.

Simplified Issue Life Insurance

Simplified issue life insurance is most frequently a form of term life insurance that allows you to obtain life insurance quickly.

These plans are commonly referred to as No Exam life insurance policies; however, they go a step further by removing items from the underwriting process.

You may eliminate a phone interview, medical documents, and a lengthy application procedure with a Simplified Life insurance policy, in addition to not having to take a medical test.

Insurance companies utilize your personal information from a variety of sources to make an instant decision on your insurability.

ICICI Prudential iCare II Plan

The ICICI Prudential iCare II Plan is a non-participating pure term plan that can be purchased on the company’s website. This plan, like a term plan, provides excellent protection at extremely low premium rates, covering the family’s future requirements in the absence of the breadwinner.

Mortgage Protection Life Insurance

Mortgage life insurance is one of the types of life insurance policy that will pay your mortgage company immediately if you die.

It is a sort of decreasing term insurance policy that is also known as mortgage protection insurance.

As you pay down your mortgage, the coverage amount or death benefit lowers to match your mortgage balance. These plans typically leave nothing to your family, only the mortgage company.

LIC Mortgage Redemption Plan

The LIC Mortgage Redemption Plan is a pure protection Term Plan that protects against all loans and obligations. It implies that if the life insured dies within the policy term, the lump sum Sum Assured is paid to pay off any outstanding loans and obligations, leaving the family with no need to pay any. If, on the other hand, the life insured survives until the end of the policy term, nothing is payable on policy maturity.

Accidental Death Insurance

Accidental death insurance is one of the types of life insurance policy that only pays out if you die in an accident.

These plans do not need you to go through underwriting; therefore, they are essentially guaranteed approval policies.

An accidental death insurance policy works by paying a certain monthly premium (such as 400 INR per month) for a specified amount of coverage (such as 73,00,000 INR) until you reach a certain age (Usually 65).

The coverage will not pay out if you die due to causes other than an accident.

These plans can be purchased independently or as a rider to standard term life insurance.

If you add accidental death insurance as a rider to a term policy, it will payout in addition to your life insurance if you die in an accident.

Bharti AXA Smart Individual Personal Accident Plan

Bharti AXA provides a variety of health insurance products, each tailored to the specific needs of its consumers. The Smart Individual Personal Accident plan is a type of health insurance that covers severe accidents that result in death or permanent disability. It also covers small injuries such as burns, sliding and falling down the stairs, and other minor everyday ailments. The payment for this plan must be paid in one single sum, and the coverage is for one year.

Guaranteed Issue Life Insurance

A guaranteed issue life insurance policy is also the best life insurance policy that does not need you to answer health-related questions in order to be approved.

While they can be both term and permanent policies, guaranteed issue plans are mainly oriented at seniors as whole life policies or for those who require high-risk life insurance.

If you cannot obtain approval for a standard life insurance policy or a last expense policy, this is typically your only choice.

These plans have a 2 to 3-year waiting period before the whole death benefit is paid out.

If you decide to obtain this sort of coverage, always inquire how long the waiting period is.

If you die before the waiting time is up, the insurance will only pay out the premiums you paid plus a few percentage points.

HDFC Life Click 2 Protect Life

HDFC LIFE Click 2 Protect Plus is comprehensive insurance that offers financial protection to the policyholder and his or her family at an affordable price. The plan is adaptable and includes a variety of riders and perks that aid in safeguarding the future of the life guaranteed as well as their loved ones.

So, these were the different types of life insurance policies that you can go for!

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

Buying a home can be a fulfilling experience. But it can also become a challenging undertaking, especially if you don’t have enough cash to cover the expenses. Fortunately, there are ways that can help you own a house without spending more money. One of these ways is through a fixed rate mortgage.

However, just like other types of first-time home loans, determining whether a fixed rate mortgage is the right financial solution for you can be difficult. There are things that you need to consider to determine if it’s what you really need for your home purchase. In such a case, talking to a mortgage expert can be a good idea to assist you in obtaining a home loan that meets your needs.

Meanwhile, keep reading this article to have a better understanding if a fixed rate mortgage is right for you.

What Is A Fixed Rate Mortgage?

Essentially, a fixed rate mortgage refers to a mortgage loan wherein the interest rates on the note are fixed for the whole term of the loan. This means that the mortgage would come with a consistent interest rate from start to finish, instead of the ones which may adjust or float over a period of time.

Because of this, many borrowers who want to know how much they need to pay for their mortgage each month prefer this type of loan. If you want to know more about fixed rate mortgages, you can check out some reliable online websites for more information.

Is A Fixed Rate Mortgage Right For Your Needs?

To know whether getting a fixed rate mortgage is the right decision to make, it’s important to weigh and understand the pros and cons. By doing this, you would come up with an idea if this type of home loan can be an excellent solution for your personal situation.

The following are the advantages and disadvantages of a fixed rate mortgage:

Pros:

To most homebuyers, getting a fixed rate mortgage can be beneficial in a variety of ways. These can include:

• Predictability: As mentioned, a fixed rate mortgage comes with constant interests. This means that the amount you owe from the beginning of your loan never changes. As such, you can expect a sense of predictability about the amount of principal and interests rates you’re going to pay for your fixed rate mortgage.

• Stable interest rate: Even if there are some market fluctuations, your interest rate remains stable and will never change. In other words, no matter what happens in the market, the rate you’re paying will stay the same.

• Ability to pay principal: With a fixed rate mortgage, you’re also allowed to pay down the principal amount of your loan without incurring any fees. This means it doesn’t come with restrictive pre-payment penalties, allowing you to make extra payments on the principal during the duration of your mortgage.

• Variety of loan terms to choose from: Just like other types of home loans, a fixed rate mortgage also comes with a variety of terms. For instance, you can pick between 10, 15, 20, 25, and 30-year terms, which allows you to determine which payment period would perfectly suit your needs.

• Easy comparison: Shopping around for the right fixed rate mortgage is much easier and faster because you can opt to compare two interest rates based on the same payment terms. In short, you don’t have to make complicated calculations before you can compare one from another.

Cons:

Although getting a fixed rate mortgage for your home purchase can be a popular option, it doesn’t mean it’s the best for your unique situation.

Here are some drawbacks you should keep in mind:

• Strict eligibility requirements: Applying for a fixed rate loan requires strict eligibility requirements. For example, you may not qualify if you have a poor credit score since lenders consider it as a primary factor for eligibility. Also, if you have plans of making small payments, you may have fewer chances of getting a successful loan approval.

• Need for refinancing to obtain a lower rate: Typically, if the interest rates start to go down, other borrowers would start to enjoy paying lower rates. But with a fixed rate mortgage, you may have to refinance your loan, and it’s costly to reduce your interest rates, making repayments easier and cheaper.

• High starting rate: Due to the predictability offered by a fixed rate mortgage, you may have to deal with a higher interest rate for a few years.

• High upfront costs: When you get a fixed rate mortgage, you would more likely have to pay a variety of expensive fees. These can include underwriting fees, origination fees, and other related costs.

• Locked-in interest rate: Since you can’t predict when the interest rates would go up and down, dealing with a locked-in interest rate in a fixed rate mortgage can be a bit stressful. This is especially true if you’re dealing with a high rate and then it decreases but can’t do anything about it.

What Are The Personal And Financial Factors Affecting Your Decision?

Aside from the pros and cons, it’s also essential to consider some personal and financial factors that can affect your decision to apply for a fixed rate mortgage. In short, there may be instances wherein this type of home loan doesn’t do good, but it may harm your financial health. These can include:

• You’re only planning to live and stay in the home you’re going to purchase for a few years;
• You’re looking for a home loan that offers a lower starting interest rate;
• You have a poor credit score or you only want to pay a small amount of down payment.

As enumerated, there are many reasons that can help you decide whether to obtain a fixed rate mortgage or not. Depending on your situation, you can also find out if this type of home loan is the best one for you. So, to help you with the selection process, it’s best to speak to an expert for more valuable advice.

Bottom Line

Indeed, a fixed rate mortgage can be a popular choice for anyone who’s buying a home. However, even if it’s preferred for its popularity, it doesn’t mean it’s the right type of home loan for your needs. Therefore, if you want to ensure you make the most suitable decision, keep this information in mind, and you will know if it’s ideal for your situation.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

As a business owner, the last thing you want is for your organization to get entangled in a major accident and a potentially costly lawsuit. To protect your enterprise from possible unforeseen unfortunate events, you’re going to need a business insurance plan.        

Similar to typical insurance products, there’s a vast array of business protection coverage to choose from. That’s because there are unique risks involved in a company depending on its set-up, nature of business, and other factors.

If you’re thinking of getting one for your business, the following are the questions you need to ask yourself to come up with the right business insurance coverage.

Questions You Need To Look For Appropriate Answers Prior To Getting An Insurance

The right insurance products can give you peace of mind. But getting the wrong one could potentially translate to further losses. These key queries should guide you in choosing the right type of insurance for your business.    

What Is A Business Insurance?          

By definition, business insurance refers to all types of coverage that aim to protect your business from losses. 

Different insurance products may be purchased to cover any type of business assets such as equipment, premises, and employees’ health. Various coverages are also available to protect a company from potential liabilities including workers’ compensation.     

Because every business is fraught with external and internal threats that could impede its continued operations, well-fitting insurance is believed to be paramount for business growth and expansion.   

What Are The Risks That Can Possibly Affect My Business?

Before proceeding to the nearest insurance agency to get an insurance coverage plan, it’s necessary to perform due diligence and analyze your enterprise inside and out. Identifying business risks requires you to study the following elements: 

• Your business set-up and operations: Do you provide life-threatening services, for instance, construction or electrical contracts? Are you engaged in the medical field? Do you manufacture products that impact consumer’s health?       
• Your physical office or store location: How does your office and locality fare in terms of security and the probability of natural and man-man disasters?
• The resources that keep your business running: Identify the assets that you rely on for operations. This can include human resources, a variety of business equipment pieces, vehicles, your information technology infrastructure, and utilities among others.         

Getting a good understanding of these aspects, along with the serious threats that may derail your operations, can help you decide the most ideal product for you. To be more specific, think about what could go wrong and how your business and yourself can be held liable for such incidents.     

The most common business threats could include the following:

• Professional malpractice;
• Workplace accidents;
• Product liability;
• Premises liability;
• Natural disasters;  
• Theft and burglary;
• Equipment breakdown;
• Breach of contract and other business-related laws; and
• Long-term utility interruptions.   

The list isn’t exhaustive and your business could face other specific risks depending on the three key elements as discussed earlier.    

Which Business Insurance Type Do I Need?

After getting a good idea of the various threats your business could be facing, identify your venture’s top priorities to further narrow down your list of options. Then, take note of the following business insurance coverages to find what you’re looking for:     

Business insurance covers accidental damages to your company assets, as well as financial losses due to unforeseen circumstances covered by the policy.    

Liability insurance provides coverage against the legal costs for liability lawsuits. For example, if your business has been sued for injury and property damage claims, your insurance can help fund your expenses.

Professional indemnity insurance protects businesses engaged in providing professional advice or service from financial losses arising from legal actions filed against them.

Errors and omissions insurance covers businesses and employees from allegations of negligence or unprofessional work from clients.   

Commercial auto insurance is recommended for businesses that operate vehicles for their operations. Auto insurance typically covers expenses for loss or damage to your  

vehicle or the damages to the other party’s vehicle where you’re held liable.     

Cyber liability insurance shields companies against losses related to data breaches, cyber hacking, and unauthorized use of client data by online fraudsters.   

Workers’ compensation insurance is a legally mandated coverage for your employees who get injured or become ill while performing job-related tasks.    

How Much Coverage Do I Need?

It’s hard to come up with a definite answer to the question of how much coverage a company should opt for. States typically set a minimum insurance coverage for individuals and businesses. Professional organizations also often recommend minimum requirements for professional indemnity.   

Apart from fulfilling the minimum insurance set by these entities, it could be helpful to analyze the inclusions to the coverage package. Most often, your company’s needs may not be included in these products.       

Compare the amount that your insurance provider is willing to pay for a covered incident and the potential costs you’ll be paying for such a lawsuit or claim. Doing this can give you an idea of how much coverage your business might need.  

In coming up with a rough estimation of the amount of business insurance coverage, list all your business assets, both tangible and intangible. Considering depreciation costs, come up with your own calculation of expenses should you need to replace them in case of any untoward incident. Include the loss of income due to business interruptions, as you’ll likely shut our doors for several days or may need to transfer to a new office.        

How Can I Avail Of A Business Insurance?

Perform due diligence by researching and comparing various product offerings on the market. It’ll take time but you’ll reap the benefits of getting business insurance that’s a perfect match to your needs.

You can check online insurance sites to see which ones can be considered value-for-money based on the type and estimated coverage your business needs. After choosing two or three options, it’s time to ask essential questions pertaining to the general terms of coverage, the filing and claims process, as well as the exclusions.

Getting in touch with the insurance provider’s customer service gives you a feel of how transactions will be like once you become a policyholder. In the same manner, you want to ensure that your provider is capable of facilitating smooth claims filing process through strong customer service.        

Final Thoughts

Without protection or adequate coverage from losses and liabilities, your business stands to lose more than it could ever gain. Paying for insurance costs on products that you don’t really need has the same impact. To get the best out of your business insurance policy, you need to ensure that you’re getting the right type and a reasonable amount of coverage. Asking yourself key questions as discussed in this article can help you with that.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

A time comes when we have to make significant financial decisions to bring positive change to our lives. From buying a new house to establishing a startup, moving abroad, investing in stocks, it could be anything. You have to take time before deciding anything.

Conduct an ample amount of research or ask your friends who have made the same decision before. It will help you understand all technical aspects and to make the right financial decisions. 

There are different factors included to make the right financial decisions. You should consult with a relevant person to know the impact of your financial decision. Not everyone has good financial knowledge, so you should go for it even if you can get professional consultancy.

Let’s explore what things you should consider while making big financial decisions.

Set Your Priorities

You may have many chances of taking on significant financial projects, but you couldn’t capitalize on success. It is essential to set your priorities straight in terms of goals to fulfill your financial objectives. The best way forward is to prioritize your needs over your wants.

For example, you may dream of getting married, but you do not have a house. In this scenario, you should prioritize the house and delay the wedding.

If you want a loan to buy a new car and study abroad, you should study first and buy a car later. You may look for a reliable mortgage advisor in your town, city, or state to find options that work for you.

Suppose you’re living in Wigan, Greater Manchester, and looking for a mortgage advisor; type in mortgage advisor Wigan on Google to find one in the area.

Your priority should be long-term goals that help you achieve better financial results in the future. By putting efforts in the right way, you will be able to differentiate between right and wrong, which will help you view things from a bigger financial perspective.

Do Complete Research

Once you set priorities, it is time for you to do a survey and figure out how to make your financial decisions right. For example, if you plan to buy a new sports bike, you should research the market.

On the other hand, if you want to establish a business, you need to know how much money you need as an investment. Having a clear idea of the amount will help you create a foolproof financial plan.   

Analyze Pros and Cons

Before making any financial decision, you should assess the pros and cons of your actions. It may seem a time-consuming and daunting task, but it will help you make smarter choices. You will be able to predict financial outcomes in particular situations, allowing you to take risks without any fear of failure.

For example, if you plan to buy an apartment, you need to consider available saving options. You may use your savings account or make investments to accomplish your goal. Although it is not easy to make such decisions, you have to be mindful in such situations.

After closely assessing all aspects, you should make the final decision with minimum risk and maximum benefit.

Create a Plan

To make sound financial decisions, you need to plan. Before you buy anything or start making investments, you should examine your current financial situation. See where you are standing financially. If you do not have enough money after clearing bills, create a budget or wait for things to get better.

If your finances are in good condition, then you are all set to start planning. The first thing you need to know is how much money you need to fulfill your financial dreams. You have to be realistic while creating a plan, so if you cannot afford the amount, you should not put yourself under the burden of debt.

Try to use the available resources and be consistent with your effort.

Think about the Future

While making big financial decisions, it is crucial to keep a long-term vision in mind. It would be best to think about life after retirement to spend the later stages of your life without any financial stress. Check your state pension and then assess your savings.

These factors will give you a clearer picture of whether or not you’re on the right track for life after retirement. You may also start looking for options to increase your savings. With enough savings, you can also create an investment plan to make your life easy after retirement.

Conclusion

Making financial decisions is not a piece of cake. From planning to research, you cannot afford to skip anything to accomplish your financial goals. You have to keep various factors in mind while making the right financial decisions.

You should know people with sound financial knowledge and hands-on experience dealing with financial matters. It will help you gain valuable insights that will make decision-making easier for you. You have to stay patient and focused and act wisely according to the given financial situation.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.