Mortgage

A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front. Mortgages are also known as "liens against property" or "claims on property."
	Investopedia explains 'Mortgage' In a residential mortgage, a home buyer pledges his or her house to the bank. The bank has a claim on the house should the home buyer default on paying the mortgage. In the case of a foreclosure, the bank may evict the home's tenants and sell the house, using the income from the sale to clear the mortgage debt.

Credit Insurance

Essentially, credit insurance will cover a business' entire turnover - wherever it may be trading - and will include political risks. However, credit insurance can also cover a business' key accounts or exceptional losses.

What is Credit Insurance?

Credit insurance provides a business with protection against the failure of a customer to pay their trade credit debts. This can arise as a result of a customer becoming insolvent or because your customer fails to pay within the agreed credit period. These risks are referred to as 'commercial risks'. The protection covers as standard goods or services sold and delivered, but can be tailored to cover many other risks such as work in progress and binding contracts.

Companies that export can protect themselves against a range of 'political' risks which may prevent or delay payment. Examples include war or civil war in your customer's country; cancellation of the contract by the government of your customer's country; or governmental regulations such as embargo or quotas that prevent the export or import of goods.

Who Uses Credit Insurance?

Companies of all sizes use credit insurance. Euler Hermes has credit insurance solutions which suit the needs of an SME up to the largest multi national company.

Why Should I Consider Using Credit Insurance?

Research suggests that 18% of companies that fail do so because they have experienced bad debt or poor working capital. Businesses protect their tangible assets such as property and plant, but often neglect to cover their receivables which can represent 40% of their current assets.

Credit insurance can reduce the unnecessary cost of bad debt and protect hard-earned success, and provide the cornerstone of secure growth.

Are There Additional Benefits?

There are many additional benefits to using Euler Hermes. These include:

A reduction in bad debt provisions, thereby releasing tied up capital

Better risk prevention through the 'early warning' system provided by the credit limits service, and Euler Hermes extensive information database.

Greater access to finance. A credit insurance policy can be used to provide security to a lender for trade or export finance.

Better sales targeting - our information can be used to target new customers and markets as well as monitoring existing customers.

Representation at meetings of creditors and free legal and practical advice on enforcing Retention of Title rights.

How Much Cover Is Available?

On average, the level of indemnity is 85% but this can vary, depending on the type of policy you choose or on your specific requirements.

How Soon Will A Claim Be Paid?

We will pay a claim within 30 days of confirmation that an insured debt has been admitted to rank in the insolvent estate of your customer, but in many cases we pay considerably quicker than this.

Loans

Whether you're planning a vacation, redecorating your home or supporting your child through college, a personal loan will give you the extra funds you need. You can even use it as a standby line of credit for unforeseen expenses.
Depending on your specific credit needs, you can take out an instalment loan or a revolving loan without any guarantee or collateral.
Whichever option you choose, we'll help you stay in control of your finances and make the most of life's opportunities and experiences.

The Average Cost of Car Insurance in California

When it comes to the average cost of car insurance coverage in California, there is both good news and bad. Trends in 2009 and 2010 indicate a downward trend, but California is still in the top 10 most expensive states for car insurance.

State Ranking

• According to an April 2010 study by Insure.com, California ranked 5th highest in the nation in car insurance premiums after Louisiana, Michigan, Oklahoma and Montana. Californians paid an average of $1,774.41 per vehicle in the first four months of 2010, or approximately $345 more than the national average.
  

Twelve-Month Trends

• In August 2010, California's auto insurance rates dropped to their lowest level since September 2009, or $1,261 compared to the previous year's $1,544, according to CarInsurance.com. The 2009 to 2010 average decrease was reported at 20 percent by the website, and if these trends continue, Californians may see lower car insurance premiums.
  

The Owner's Insurance

• If the vehicle lender is a friend or family member, then the car's owner probably has insurance that covers you while you drive it. Most standard policies apply not only to the vehicle owner but also family members listed on the policy and anyone else who the owner allows to borrow the vehicle. In this case you won't have to worry about your own auto insurance rates, and you won't even need your own policy to drive. But any accidents you cause will affect the owner's rates.
  

Temporary Policy

• One option for avoiding any damage to your auto insurance or someone else's while you have a loaner is to take out a temporary insurance policy. Temporary policies are available from most major insurance companies and charge by the day, usually up to a 30-day maximum. Temporary insurance costs more than a standard policy but your driving record won't affect what you pay, and if you make a claim it won't factor into your insurance rates with your full-time auto insurance company.
  

What Insurance Covers a Loaner Vehicle?

Driving without insurance can be a nerve-wracking experience, not to mention illegal in most states. When you drive your own car you have the peace of mind that your insurance policy will protect you in the event of an accident. But if you need a loaner vehicle, either while your car is being repaired or if you don't have a car but borrow one temporarily, you'll need to make sure you have insurance from one of several possible sources before you start driving.

Your Auto Insurance

• Most auto insurance policies cover a loaner that you drive. Insurance policies refer to loaners as temporary replacement vehicles. Even if your insurance doesn't pay for the cost of a rental car, it still might cover any claims you make following an accident in a loaner or rental vehicle. One drawback to coverage through your existing auto policy is the fact that if you make a claim, you'll likely see your rates increase long after you get your own car back.
  

The Lending Company's Insurance

• Businesses that lend you a car, such as dealerships and independent auto shops, carry insurance that might cover the loaners they supply to customers. These policies range from basic liability insurance that meets your state's minimum requirements to more complete coverage that includes comprehensive and collision coverage. If you make a claim against the lender's policy, the insurance company may subrogate the cost by asking your auto insurance to pay for some or all of the claim, which may affect your rates.
  

Definition of 'Income Annuity'

Annuities designed to start paying income as soon as the policy is initiated. The income annuity is annuitized immediately, although the underlying income units may be in either fixed or variable investments. As such, the income payments may fluctuate over time. An income annuity is typically purchased with a lump sum payment, often by people who are at or near retirement. Also known as an "immediate annuity".

Investopedia explains 'Income Annuity' Investors seeking income annuities should have clear picture of how much income will be received and for how long. Most annuities pay out until the death of the annuitant and some pay out until the death of spouse. Although the insurance product may be annuitized immediately, variable investments can allow for some principal protection by participating in equity markets. Even if all income units are in fixed investments, there may be a provision allowing for a higher return if a specific benchmark index performs extremely well.

Life Annuity

Definition of 'Life Annuity' An insurance product that features a predetermined periodic payout amount until the death of the annuitant. These products are most frequently used to help retirees budget their money after retirement. Typically, the annuitant pays into the annuity on a periodic basis when he or she is still working. However, annuitants may also buy the annuity product in one large purchase. When the annuitant retires, the annuity makes periodic (usually monthly) payouts to the annuitant, providing a reliable source of income. When a triggering event (such as death) occurs, the periodic payments from the annuity usually cease.

Investopedia explains 'Life Annuity' Because of the complex nature of annuity products and their implications for the annuitant's standard of living, people are well advised to consult a reputable professional before purchasing any annuity product. Due to the tax-preferred nature of annuities, very wealthy investors or above-average income earners often use these life insurance products to transfer large sums of money or to mitigate the effects of taxes on their annual income.

Life Insurance

Definition of 'Life Insurance' A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.

Investopedia explains 'Life Insurance' The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.

Insurance

Definition of 'Insurance' A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

Investopedia explains 'Insurance' When shopping around for an insurance policy, look for the best priced package that is right for you - prices can vary from one insurance company to the next. And make sure you know what you want. Some individuals, for example, prefer 24-hour claims service or face-to-face contact with an insurance representative. Also consider the claims settlement process, the amount of the deductible and the extent of the replacement coverage. Insurance companies and the policies they offer are not all the same, so think about more than just the price.