The foundations of the basics of personal finance are security stability and growth and protection as well as management. Investment growth begins with security.

The subject of personal finance is very broad, but as a beginning, I would like to discuss what I consider the foundations of personal finance: Security, Stability, Growth and Protection & Management. This article will discuss security. Investment growth and financial freedom begins with security.

A good question to ask yourself is what is security? For the average individual it means that you have health, disability, auto and home insurance on top of life insurance. These policies will insurance that if something happens to you your family will be taken care of. If you are the head of household and you make most of the financial decisions make sure you leave explicit instructions for your family to follow. These should include the names and locations of all your insurance policies. The names and numbers of your insurance agents. Include all the basic policy information like account numbers and associated costs. Make sure all your important paper is placed in a secure local like a safety deposit box, at work, or at a friend house. Keeping the only copies of your insurance information in the house may be a problem especially if the house is damaged by a fire.

Additionally you should maintain a emergency fund. This is money which is placed into a money market account which checks can be written from. This is money that can be used if there is a financial or natural disaster. Make sure you have at least six months of income saved up, a year would be even better. This can be done by putting a side a little bit of money each month as well as adding gifted money to the account (from birthdays or inheritances). It is also important that you have will which reflects what you want to be done in the case of your death. It should include references to both finances, personal property, and your personal opinion about life support and end of life options.

Making sure your family is safe and secure can give you the piece of mind to invest fully in the stock market. Often times investors are held back by the fear of risks and losing money. No can predict your success in the stock market. The one thing that all investors know is that sometimes you will fail and lose money. This is less devastating if you do not have all your money wrapped up into your stock portfolio. Having an emergency fund means losing money in the stock market is not the end of the world. It also means that for unexpected bills and expenses can be paid without having to sell of stocks which are mean to be long term investments. Especially in the case of mutual funds and IRAs where they are severe penalties for withdrawing money before retirement. Security is your first step to starting your investment portfolio.

Property insurance protects from any kind of harm or robbery that is incurred to a belongings or house. It can include factors like flood, wind, fire, or earthquake damage. Getting property insurance facilities in locations that are more open to these hazards is more costly than the one?s that don?t come under such dangers.

If you possess a house you may not necessarily have any kind of home insurance. It is right that you are taking a chance that your home and belongings are either not going to be stolen or harmed. If it happens, then you can anticipate losing one of the chief possessions you own. If your home gets fire and all of your stuff, furniture, and clothes are burnt with your home, then you not only will be without a home but you also have to start your life again. This is at times a great risk for those people who are not monetarily secure, or who live in a location which is prone to such natural disaster.

You may want to have property insurance only if you have a credit or you are still making payments on your home loan. As the home is yours officially, the insurer has a right to make sure that your home is safe. If the home is ruined in a disaster it will be more of insurer?s loss than yours. You need to be very cautious of the insurance plans that insurer present directly for your ease. It is advisable to get a great deal for yourself that may help you in saving some funds.

Not all insurance companies provide property insurance, but many of them do. Look around on the internet and phone book to find companies in your area. Talk to the agents to find the best deal possible. Make sure you find an agent that you trust, since there are some that are only out there to make money off of the commissions. Ask questions about your coverage and any discounts that you might be able to get.

Before you initiate your search for insurance it might be useful to recheck your credit record. If you just purchased a house it is expected that you already have an experience of this. Your credit plays a huge role on how your payments are decided, along with your history of claims if any, and on the house which is to be covered. Talk to the credit company to settle any claims and to make payments for any outstanding credit.

There are many other ways you can save money on your property insurance as well. Start off by looking for a home in an area that isn?t considered high risk. For example, cities like Los Angeles and Miami will have higher rates since they are more prone to earthquakes and hurricanes. The condition of your home is taken into consideration as well. If your home is not up to building codes it may be more of a risk for insures. Likewise, if you have a very large and beautiful home, insurers may charge you more since it is more susceptible to theft.

Graham McKenzie is the syndication coordinator Insurance-south-africa.co.za. South Arica?s leading Insurance information portal.

Regardless of what kind of insurance you receive, there are several methods you can adopt to make sure that you find the best plan. Getting the suitable insurance is hard, but if you explore your options well your will be able to get a plan that works well for you. If you are applying for insurance for the first time, be careful so you don?t find yourself trapped in giving more than you should.

There are lots of dissimilar methods you can do to lesser your premiums. Prior to your application, make certain that your credit is okay. Redeem any owing amount overdue and complains about any reports that are fake. If you are going for car insurance or home insurance, spend some additional funds to spend into security features such as airbags, and security system so your insurer can offer you discounts. If you are planning to apply for health insurance or life insurance, you get healthier by working out and by maintaining a good diet. If you are a lesser burden to the insurers they will provide you good rates.

While going for insurance you require looking for several insurance companies. Look for quotes online and from your phonebook. You can also inquire your friends about the brokers they know. Collect as many insurance providing companies as possible and remove the ones which don?t offers the kind of insurance you require.

While seeking brokers, insurers, and premium rates, always bear in mind that it is not necessary that the lowest costing deal is always the most suitable one. Go through your agreement very carefully to ensure that you understand every clause. Your broker must be able to properly explain every aspect of the plan to you if you have any doubts.

The cover amount that you require depends mainly on your individual personal condition. Mostly, you don?t need your exposure to surpass the cost of what you are attempting to insure. If you own a car, which is worth only some hundred dollars, then it’s better that the car isn?t covered at all. You must take into account your earnings and what kind of premiums you can easily bear.

Make sure you completely understand your insurance before it comes into effect. When it comes to car insurance, know exactly the procedures that you need to take if you get into an accident. If you have health insurance you should know what types of hospital bills are covered, and which doctors and hospitals you can go to. This will help prevent confusion when you are confronted with an emergency situation.

To help save you some money, check to see if your work has any special deals with insurance companies. If they don?t already give you some sort of coverage, they may provide some sort of plan that pays for part of the payments. Always remember check back in with the insurance company if you quit your job so you can continue getting insurance from them.

Graham McKenzie is the syndication coordinator Insurance-south-africa.co.za. South Arica?s leading Insurance information portal.

Your home obviously holds a ton of importance to you. It’s the place of residence where you can go back to every night and sleep tight in. It’s filled with everlasting memories and important objects of affection. But what happens in the event of a tragic disaster? I’m talking about a type of disaster that completely destroys your property?

One reason it may not have adequate coverage is the recent economic crisis, which is understandable. But what does not make sense is what will happen if a disaster does destroy your home. Then what financial shape will your family be in?

There are ways you can save on your home insurance costs. First of all, you can raise your insurance deductible. Just raising the deductible to the next highest level can save you hundreds of dollars a year on your insurance premiums. You are still covered, yet you are spending less for insurance. Just make sure you can meet the deductible in case something happens and you need to file an insurance claim.

Protect your home with safety devices such as smoke and burglar alarms if you haven’t already. Insurance providers reduce premiums for homes well protected.

Third, purchase more than one insurance policy from the same provider. You can buy auto, home and life insurance from one provider, allowing that provider to “bundle” the policies and give you a hefty discount on all insurance policies. This is a great way to save money on a much needed product.

When purchasing home insurance, insure your home for 100 percent of the cost to replace the home after a loss. This is called insured to value, and it can save you significant dollars on your home insurance premiums. You will have the coverage you need to protect your home and your family without spending a lot and without over insuring your home.

Although all the above procedures are ideal ways to cut cost, the primary way your insurance premium will drop is through a high credit score. Insurance providers analyze your credit score to assess your “risk.” Individuals with poor credit scores are considered irresponsible and “high risk.” Obtain a free credit score and study it for errors or causes for concern.

As you can see, there are numerous ways to save or reduce your home insurance premium. Simply cutting back costs or eliminating the policy altogether is not very responsible. Protect your best asset.

Tom Martens is the syndication coordinator Insurance-south-africa.co.za. South Arica’s leading Insurance information portal.

One day, you may not be able to work owing an accident or illness that stops a normal life so you should in truth think of disability insurance as a good thing to have. When you have financial obligations you need to have an income if you are incapacitated. This can take some of the emotional strain away the fiscal troubles it is certain to create during your incapacitation. The prospects of dying before 65 are actually lower than the possibility of needing disability protection before then! In fact there is a higher probability of a worker requiring disability protection before they retire than there is of them dying.

It is an unfortunate fact that most individuals think they have a greater chance of dying than being laid off work through disability so life insurance policies are more popular. For example for a forty year old there is a bigger chance of a disability that requires at least ninety days from work, than there is of dying before the age of sixty five. Looking for a low disability insurance premium is a key element as it costs more to run this type of plan.

Premiums are based on many characteristics like age, occupation, health and the computations of possible lost income. There are a few ways of reducing the costs with the main one being selecting a longer period of time or waiting period before the plan starts to pay. This means the provider would have less risk of paying out if the insured was only off from work for a short period. Another option to lower the monthly premiums is put a limit on how long the payments are to be made before they stop even though, some people find that by setting the plan to pay for only a set period of time, they can dramatically reduce the premiums they have to pay, With this arrangement the risk is placed squarely on the shoulders of the claimant who will need to find additional income if the incapacity period is long.

Almost all policies are based on a percentage of salary thus even with this protection a certain shortfall will exist. There are two insurance policy options available, the first is short term disability insurance which only covers the claimant for a few months of incapacity. The second plan covers extended periods and is called total disability cover; this allows a reduced payment to be made after the claimant shows he cannot carry out the work he was previously employed for.

While the plan is in force with the conditions met, checks will be sent each week or month until the plan ends or the person returns to their place of work. There are many issues to consider when exploring health policies which may affect the premiums and they include, in no particular order:

Any previous medical problems whether you will have to pay tax on the benefit how long the benefits will be paid for whether your occupation will increase the cost of premiums

You cannot anticipate the same level of income cover in your disability insurance plan from each company so you need to check this carefully first. These percentages vary and payouts can be anywhere from 40 to 70 percent, and so don’t neglect this essential detail. These requirements to be checked thoroughly especially if you have an immediate family with big fiscal commitments each month.

See us at Disability Benefits.