Insurance

Is Nationwide’s Vanishing Deductible Option Something You Should Consider?

auto Insurance

Car insurance innovations are possibly the greatest example of follow-the-herd mentality in the financial services industries. Whenever a leading car insurance company launches a national campaign to tout a new coverage option or feature, it’s not long before competitors are close behind like drivers drafting behind a leader in a stock car race. One of the more recent features goes by many names accident forgiveness, diminishing deductible, safe driving deductible rewards, etc. but they all essentially offer the same promise. Go for an extended period of time without a claimable accident and the insurer will reduce the deductible on select coverage options carrying one.

Nationwide has tagged its version of this option with the catchy phrase, Vanishing Deductible, and has even built several memorable television commercials around it.

Here’s a quick overview of how it works and a few things you may want to consider before adding it to your policy.

How it works

One of the first things to know about Nationwide’s Vanishing Deductible option is that it isn’t available everywhere. Some states do not allow Nationwide to offer this option to drivers, so be sure you check into what options are available in your state.

If you do have access to the Vanishing Deductible option, Nationwide tries to make it easy to understand and to add. They offer it as a stand-alone option and you are not required

to have a specific coverage package to apply for eligibility. You do have to have a coverage option that calls for a deductible and the two obvious ones are collision and comprehensive. Here again, Nationwide makes it a little easier in that you can choose to add either collision or comprehensive (many car insurance companies force you to have both, even if you want just one.)

If you elect to add Vanishing Deductible to your

Nationwide car insurance plan, you’ll be charged a flat rate (usually around $60-per year for the first car and $10-per year for any additional cars.) Once in place, Nationwide will immediately and automatically reduce a select deductible by $100. For each year you keep the option in place and go without an accident that generates a claim on the option where the deductible is “vanishing”, Nationwide will reduce that deductible another $100. Nationwide caps the total you can have a deductible reduced at $500.

An example

Let’s say you have a Nationwide car insurance plan with comprehensive coverage that comes with a $500 deductible (which is, by the way, the average deductible for a Nationwide comprehensive option.) You add Vanishing Deductible and you go a full year without filing a comprehensive claim. A couple weeks into your second year with Vanishing Deductible, a tree falls on your car requiring $1,800 in repairs. Instead of having to pay $500 out-of-pocket before Nationwide starts reimbursing your expenses, you only have to pay $300 out of-pocket. In this case, the $120 extra you’ve spent to add the option has paid for itself.

If you do have to file a claim while on the Vanishing Deductible option, Nationwide doesn’t make you go all the way back to square one to start earning credits against deductibles. You still get the original $100 reduction in a deductible for having and maintaining the option. In the above example, say a hailstorm wreaks havoc on your car three months after the tree incident, leaving you with $900 in new repair costs. Your out-of-pocket expense on that claim would be $400 (not the full $500 deductible you originally selected for your comprehensive coverage.)

Is this a bargain?

Take a few moments to pencil out whether adding Vanishing Deductible to your Nationwide car insurance plan is a bargain. A good way to go at this is to add up all of what you have to pay to get Vanishing Deductible. First, you will need to have a coverage option in place that comes with a deductible. In most cases this will be a collision or a comprehensive option (or even both) and take some care in determining if you even need any of those options on your car.

A simple rule of thumb for determining if adding collision or comprehensive is a value-added idea is to total the increase in premium you will pay for adding the option over the time you’ll have that car, plus add in the deductible you’ve chosen. If this total exceeds the current market or cash value of the car you’re insuring, it probably isn’t a wise financial move to add that option. In the case of Nationwide, adding either collision or comprehensive options to your policy will add an average of $20-$25 in monthly premium to your bill (for each separate option and depending on the state where you live and other options you have in place.)

One other thing to factor in with the Vanishing Deductible option is that it is capped at $500. If you have a $1,000 deductible, the most the option can offer you is to cut that deductible in half. If you happen to have a $500 deductible, you’ll spend more than you will ultimately save in just over eight years.

Generally speaking, Nationwide’s Vanishing Deductible option is a little more flexible and forgiving than many of its competitors, but it’s still an option that you’ll want to carefully consider before adding it to your policy.

(Note: this article is intended solely for informational purposes and is in no way a promotion or a solicitation. The author has no affiliation with Nationwide or with any other car insurance provider.)

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  • License: Royalty Free or iStock source: Image courtesy of Nationwide Insurance.

Jeffrey Davidson is a writer and marketing consultant with more than 25 years of experience working with insurance and financial services companies. He currently writes about auto insurance products and services for Reply!. You can find his article on other options to consider for your car insurance plan.


Why Tech Friendly Seniors will have a Better Retirement

The world is becoming more and more technology-oriented. The gadgets we use are only going to get more complex and impressive in their abilities, and greater in their scope. As technology becomes the defining characteristic of our times, it makes sense to shed one’s inhibitions and join the bandwagon.

BRGLogoBigI’ve noticed that older people often shy away from technology instinctively. They are overwhelmed by all the gazillion features that smartphones, ipads, and laptops contain. The Internet simply bamboozles them.

They need not worry though. Even younger people often find no use for the endless features on smartphones. And the Internet, though vast and labyrinthine, is primarily used only for its basic functions, which anybody can learn.

Since today’s senior citizens grew up in a different time, it is perhaps impossible for them to get their heads around how a small piece of technology can become central to anybody’s life. My parents still don’t get how I can spend hours and hourson end just sitting in front of my laptop.

I tell them they can, too.

You have fulfilled all your responsibilities; carried out all your duties; sorted out your taxes, your medication,your auto, health, life, pet, and AARP insurance, and your income and investments are safe and adequate. What’s there to do now?

You can’t be travelling or talking to people all the time, and retirees have a lot of time on their hands. Turn to the Internet for some harmless fun.

Here’s how:

Get your children or grandchildren to teach you online video games. They will keep you sharp.

Social networking will tell you what your friends and family are up to even if none of them bother ringing you anymore.

You can download free photo-editing software and tweak your old photographs with them. You will have so much fun with this, you won’t even realize it’s 2am and that you have to be up at 5!

You can watch an endless number of movies via online film subscriptions, and not just Hollywood movies either.

You can relive your old memories on YouTube by listening to the songs you grew up with.

If you are fond of reading, the Internet is the best thing that could have happened to you.

If there was a discipline you always wanted to pursue but couldn’t, you can do it now. Who cares about attending classes and earning a degree? After all, it’s the knowledge that matters. Love anthropology? Devour the latest research on the Net.

You can keep track of your medical reports, your bank statements, and all your investments in one place.

You can become a better cook than you ever were.

You can create your own music with music editing software.

You can pursue new hobbies, while following online tutorials.

Sign up on forums for people of similar age groups and interests as yours.

If you are alone, try online dating.

Finally, you can start writing for fellow retirees: Create your own blog, or sign up with blogger communities, to share your experience and wisdom with others. You never know who will end up taking heart from your words.

Yes, there is a danger of getting carried away on the Internet, but the more you use it the better you will be able to moderate your use of it.

And while a retired person is busy doing all of the above, they are enjoying themselves to the hilt. And not ruminating about the past, or worrying about a tomorrow that’s looking increasingly uncertain for all of us, regardless of our age. They are focusing on making the most of the time they have now,with the enthusiasm and glee of a child who has just discovered a new world. Sleep on time, get plenty of exercise, watch your diet, and laugh out loud with YouTube videos!

loriLori Wagoner is a marketing and business consultant working with All Car Insurance Companies, which is a realtime online platform for reviews of auto insurance companies, comparison of quotes, and discussion/resources related to the car insurance sector in the U.S. Catch Lori on Twitter @LoriDWagoner.


6 Worst Attempts At Insurance Fraud

We all understand that in today’s economy, times are a little tough. Many of us struggle, business is down, and sometimes it’s very tempting to just take an easy way out.

But we don’t. Because it’s almost always a bad idea.

Unfortunately, though, there are people out there who attempt it. And while some get away with it, most end up with a whole lot of problems—more than they had before, in fact.

Here’s a list of some of the worst insurance fraud cases.

Horse Murder

From about the 70’s to the 90’s, there was a very intricate plot in the equestrian world involving very expensive horses. The horses were usually show jumpers and had insurance on them for an accident or for death.

So owners had the bright idea to kill the horses in order to claim the insurance money. It’s been estimated that anywhere between 50 and 100 horses were killed in this scheme, making it the biggest scandal in the equestrian sport to this day.

John Mango

This Toronto guy hired a person to set fire to his business so that he could claim the insurance money on it. Only problem was that the fire ended up killing a person and causing a whole lot of families to evacuate the area while the fire raged.

Mango didn’t get his money. Instead, he got a second degree murder charge and fraud charges.

Cooperman Art

Trying to steal your own stuff is not only technically impossible, but it’s pretty dumb, too. LA ophthalmologist Steven Cooperman did just that when he arranged for two very expensive paintings to be stolen from his home—one a Picasso and the other a Monet.

He would have collected $17.5 million…if he hadn’t been caught.

Not Very Coordinated

Isabel Parker is a woman who apparently just can’t use her legs very well. She has been part of 49 cases in which she has done the good old “slip-and-fall-onto-the-floor” act and received a grand total of $500,000 from them.

New Car

What do you do when you’re sick of your car? Most people would sell it. But not chemistry teacher Tramesha Lashon Fox.

In order to end payments on her car, she got two of her failing students to set it on fire so that she could collect the insurance money. In return, she would give them passing grades.

Instead, she got 90 days in jail and lost her job. Good plan

Mouse Problem

Lastly, let’s take a look at Carla Patterson. While eating at a Cracker Barrel in Virginia, she tried to accuse the restaurant of leaving a mouse in her soup. Well, there was a mouse in her soup, but the restaurant didn’t put it there.

After doing some tests, the restaurant found that there was no soup in the mouse’s lungs and it hadn’t been cooked. Yup, she pulled the old “stick something disgusting in my food” trick. Well, that trick got her a year in prison.

So, if you’ve ever considered insurance fraud, take it from these people—it’s never a good idea. So save yourself some jail time and embarrassment.

Just don’t do it.

Featured images:
  •  License: Royalty Free or iStock source: http://www.shutterstock.com/pic-137398187/stock-photo-handcuffs-and-judge-gavel-on-brown-wooden-background.html?src=GDdbe4Mr9vKrVkRdHiKI9A-1-6
  •  License: Royalty Free or iStock source: http://www.shutterstock.com/pic-133228235/stock-photo-arson-metaphor-paper-house-on-clothespins-on-a-clothesline-in-the-fire-hand-with-a-cigarette.html?src=sK6hTWvChGIKegPpW55_UA-1-84
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  •  License: Image author owned

Brianna Martin is a freelance writer from Lancaster, Pennsylvania who has been published across the web. The topics she has covered span from technological advancements to industrial operations and solutions to business practices and more, providing information and insight into a variety of industries.  Inspro Technologies has one of the most reputable policy administation systems that protects businesses from falsified insurance claims.


Reduce The Cost Of Employee Absence

As an employer, you are legally responsible for the health and safety of your employees. When your employee numbers run into the thousands, this means that your health and safety policies must be as robust as possible.

In 2010/11, workplace injury and ill health (not including cancer) cost society an estimated £13.8 billion. Around £5.7 billion of thiswas for financial costs, while the remaining £8 billion signifiesthe monetary value given to individuals’ ‘pain, grief and suffering’.

Practice Good Health And Safety

706 cases were prosecutedfor health and safety breachesacross Great Britain in 2012/13, leading to 672 convictions for at least one offence and total fines received of £15m.27 million working days were lost overall in 2011/12 due to work-related ill health or injury. The impact and cost of employee absence due to work related injury can bevast, so the need to identify risks and take precautions against them is clear.

Some industries have a higher rate of injury within the workplace than others, particularly transport and storage, construction and manufacturing, but every business poses its own unique risks to employee well-being.

8812012170_13604e9106_nYou must have a risk assessment policy which identifiesrisks and outlines actions that protect people from harm and injury. Large companies need to have their policy written down. As well as looking at hazards in the workplace and measures that can be taken to prevent workplace injury, you should analyse workstations and ensure they meet minimum requirements, and provide health and safety training and information for employees.

The needs of new starters should also be taken into consideration. Employers should consider engaging an occupational health service provider to help their businesses properly meet legal requirements, make any necessary adjustments and assess suitability. They can also monitor workers who are exposed to health risks which have been identified within the workplace and advise on any action needed. Getting expert advice on occupational health could reduce the cost of employee absence.

Investing in a business health insurance plan can provide extra support for employees when they are ill, allow them to access health services at a time and place that suits them, and get them back to health and the workplace, thereby reducing the impact that sickness has on a company. Health insurance can be tailored for large organisations, and should also help to improve productivity within the workplace.

Combat Stress

Your business has a legal duty to look after the mental welfare of your employees, as well as the physical welfare. While your HR department will have hired staff who were thought to be fit to cope with the daily pressures of their role, it’s important to prepare for time when stress affects their work.13.3 million working days were lost to stress, depression and anxiety in 2011, and it’s one of the most common reasons for employee absence.

Your employees should feel comfortable speaking to their line manager, a member of your HR team, or another person about stress at work. You should have a health policy in place ready to cope with occupational stress. This should look at whether the employee has an appropriate workload, if they are being bullied or harassed, if their role has changed without proper training, if they can expect reasonable adjustment, what a return to work policy will be, and what other support will give them. Consider investing in a service which provides counselling, so your employees can get the help they need.

If your business does not do enough to reduce employee stress, your employee may have the right to take legal action against you, which could result in paying compensation.

What do you consider to be the biggest threat to employee health in your workplace?

Sources

http://www.tuc.org.uk/workplace-issues/health-and-safety/risks-newsletter/risks-2013/risks-616-3-august-2013

http://www.adviceguide.org.uk/england/work_e/faq_index_employment/faq_employment_under_stress_at_work.htm

http://www.ons.gov.uk/ons/dcp171776_265016.pdf

http://www.hse.gov.uk/STATISTICS/

http://www.hse.gov.uk/STATISTICS/overall/hssh1213.pdf

http://www.hse.gov.uk/risk/risk-assessment.htm

http://www.bupa.co.uk/jahia/webdav/site/bupacouk/shared/Documents/PDFs/WoW/Bupa-Select-CORP.pdf

http://www.ons.gov.uk/ons/rel/mro/news-release/131-million-working-days-lost-to-sickness-in-2011—but-it-s-falling/sanr0512.html


Everything You Need to Know About Temporary Car Insurance

Sometimes, yearly car insurance just isn’t right for you. Although annual cover is usually the most practical, there can be times when you only want to be insured for a short period. Temporary car insurance makes this possible and it means that you can get insurance that allows you to drive somebody else’s car or allows them to drive yours. It runs from 1 day to 28 days and has a number of practical uses. Here’s everything you need to know about temporary car insurance.

When Might You Need Temporary Car Insurance?

car-financeMost people who get temporary car insurance only use it for a couple of days. One common use for temporary car insurance is long journeys and this is because people want to borrow their partner’s or friend’s car because it is either larger or more comfortable.

On that theme, space is the main reason that people get temporary insurance for vans. Generally, this is because they are moving home and they need something that is larger than their family car. Obviously, this is a huge bonus for both you and your friend who owns the van and probably doesn’t want to act as your personal chauffeur for a few days.

There are hundreds of reasons why you would get temporary car insurance and these range from insurance to drive your new car home or insurance for other people to test drive a car that you’re selling. In addition, short term car insurance is great for students.

What Will it Cover You For?

Temporary car insurance guarantees you comprehensive cover for the car that you’re borrowing and protects your no claims discount when you lend your car to somebody else.

Because of the nature of the cover, you can get quotes in seconds and even be insured within the hour; it is far less complex than getting annual cover and it is much quicker.

Although on a day to day basis the short term cover is more expensive than annual cover, it is still incredibly cheap over a limited time period, and if you want cover for something that lasts anywhere between 1 and 28 days, then it is a good option.

Finding the Right Policy

Short term insurance is widely available and, much like with annual cover, there are large variations in prices depending on the vehicle you’re insuring, your driving record and your level of experience. As you’d expect, some comparison websites also offer the cover, but using tools like an instant quote calculator means that going around individual retailers is relatively quick and you can cover some companies who aren’t on price comparison websites.

To conclude, there are a number of reasons why temporary car insurance is incredibly useful. So, if you want to borrow somebody else’s car or if you want to let somebody else drive yours for a while, then there’s an option for you. Surprisingly, short term cover is relatively cheap too, while still covering you for a multitude of sins.


The Best Of The Best Doesn’t Always Stand Out Like The Rest

These days there are more and more insurance companies popping up. It’s hard to turn on the television or listen to the radio without hearing something about how ‘this company can save you 15%’ or ‘that company is more trustworthy than the rest’. It can be very easy to get caught up in the hype so today we are here to discuss a few mistakes to avoid making when shopping around for your next policy. Knowledge is power and that knowledge will also save you a pretty penny and quite a bit of stress down the road.

Common Insurance Traps to Avoid Falling Into

We completely understand that you have a budget to think about and a family to look after but sometimes spending a little more money is the best route to take. We aren’t saying you should go with the most expensive solution out there but by not having the right amount of coverage, you are putting the future of your household on the line. Technically you can legally drive with liability coverage but in the event your car is totaled or there are physical injuries involved within your vehicle, this could leave you with no other choice but to pay directly out of pocket. While you won’t have to worry about covering damages that were caused to the other vehicle or person within if you were at fault, this can leave you completely vulnerable if said person doesn’t have the same type of protection. Unexpected expenses happen but these types of hefty bills are something you definitely don’t want to get involved in.

Honesty is Always the Best Policy

Many people find themselves tempted to fudge their answers slightly in order to receive discounts or lower premiums but this can make your insurance void in the event of an accident. Let’s say you’ve decided to say you only use your vehicle to drive to and from work or that you live in a different area code simply because you could save a few bucks each month. This could lead to serious financial troubles down the road. The cons definitely outweigh the positives in this situation.

Shopping Around Truly Pays Off

Most people on the lookout for an insurance policy are generally going to pay attention to price but it’s important to take a deeper look than that. While you may think companies you recognize are the best, that’s not always the case. Different insurance agencies have unique discounts but they also have different reputations. Take a good look at the background of each company you look into. Don’t only look at the positive feedback but also make it a point to pay close attention to the negative. You want to go with a business that you can guarantee will have your back in the event of an accident. Read the fine print and make sure you understand every aspect of your policy. The last thing you want to do is end up paying for something you don’t need or not including coverage that would benefit your family. Any time you aren’t sure, speak up and ask so when you sign that dotted line you know what to expect. Did we mention shopping around before locking in could literally save you hundreds, if not thousands of dollars every single year? Yes, insurance companies really vary that drastically!

Questions to Ask Before Committing: Save Green and Time

As you have probably gathered, selecting an insurance provider is a lot like purchasing a car. You shouldn’t commit to anything until you know what you’re in for. There are a handful of questions that are important to ask so you aren’t left with any surprises down the road and so you can quickly weed through agencies that just aren’t going to cut it for you.

If you have a good driving record, see if you can use that to your benefit. Find out if the company you are interested in offers safe driving discounts and if they do, you may just qualify. Sometimes you need to be an existing customer to take part, but not always. See if where you work will help minimize your bill. If you are a teacher or a student, you may be able to pay less each and every month. While you’re working on saving money, switching other vehicles onto your policy or including your home insurance may be worth looking into as well.

Knowing how to report a claim is also important because if an accident occurs your mind is probably going to be bogged down with worry. Keep this information and your agency’s contact number in your car with you at all times. Many customers also find it comforting to have a local agent so they can go speak to someone face to face if need be. This may be something to consider because many companies are only accessible online or via the web.

Featured images:

The author of this post, Dawn Anderson, works at Money Saving Angels, specialists in insurance. When he is not working, he likes to take up swimming and pilates to rejuvenate himself. Visit moneysavingangels.net for more info.


Save Money And Get The Best From Your Van

If you are a self employed tradesman your van will be an essential function for the smooth-running of your business. You will need your van to transport supplies to and from your jobs, especially if you have heavy goods such as tools, ladders and materials like wood.  Here are a few ways to get the best from your van.

Keep Your Vehicle Running Smoothly

Make sure that you do weekly checks on the tyre pressure. Don’t overload your van too much, and be sure to check the tyre pressures according to the weight of your load as it could affect your steering.

Keep an eye on the oil because depleting levels can be detrimental to the engine. Always top up your washer fluid and check the windscreen wipers so you have optimum visibility.

Make sure your van is serviced regularly and ensure that your MOT and tax is always up to date. If you drive out of the local area and travel quite far to jobs then it is also wise to have breakdown cover. The last thing you want is to be caught off-guard and not be able to get to a job because your vehicle is stuck on the side of the road.

Make Your Van an Advert for Your Business

Your van is also an opportunity to advertise your company with your logo and contact details. A catchy van that is painted in a bright colour and displays your brand logo is an excellent way to attract attention and could increase your customer base.

It may sound like a small thing but it is also important to keep your van clean and tidy – what’s the point of having your logo on the side if it is smeared with mud and grime? This will show your customers that you are a professional company that cares about appearances.

Protect Your Van Inside and Outside

Having the right insurance is also essential because accidents can and do happen, especially if you are driving a considerable amount of mileage. If you a reliant on your van then you need to look after your interests, settling for the lowest band of insurance policy does not necessarily mean that it cost effective long-term. It is advisable to think about how much you could lose if your van was involved in an accident that wasn’t your fault. One Sure Insurance offer a range of deals that can include everything up to and including the contents of your van being covered too.

Keep Your Van Secure

There are many insurance claims related to theft as well as accidents, yet this is something that van owners can sometimes forget about. After a hard day’s work you would be forgiven for leaving your van stocked up with your tools and other materials, the value of which can amount to a significant sum.  Not everyone has garage space to keep their vehicle locked in at night, and those who have to park on the road are instantly more vulnerable to theft.


What are the most important types of insurance?

If it might be unrealistic bordering on naïve to assume that anyone really likes paying for insurance.

However, it is something that might one day be all that stands between you and financial disaster so it might be important to take the matter seriously.

There are, of course, dozens if not hundreds of different types of insurance but some are perhaps rather more important to the average person’s daily life than others.

Possibly the most familiar and also potentially reassuring forms of cover are:

  • Household cover – This is what protects us financially against the consequences of things such as fire, storm damage, burglary and so on. Liverpool Victoria (also known as LV) is a provider of this type of policy;
  • Motor vehicle insurance – This is not only important it is one of those rare forms of cover that is actually a legal requirement if you plan to use a motor vehicle on the public roads. Axa Insurance is one specialist in this area;
  • Another car insurance provider is Esure who also offer additional insurance cover such as breakdown assistance and legal protection;
  • Life Insurance / Assurance – Policies here provide financial help to our families in the event of our death. Aviva is one well known provider of life cover;
  • Mortgage protection – The form of cover is typically aimed at meeting your mortgage repayments for a specified period of time if you cannot work due to accident, sickness or unemployment. Drewberry Mortgage Insurance is a specialist broker in this area.

Life_insuranceThis list is by no means exhaustive but you may find that some insurance providers offer broad spectrum cover across many of these domains whilst others specialise or major in one or two of them.

Almost inevitably in tough economic times, some people start to question whether they really need any form of insurance other than perhaps in situations, such as motor cover, where they have no real choice.

It is often said that insurance is absolutely useless to you – but unfortunately only up until the moment that you need to make a claim against your policy.  At that point and immediately afterwards your insurance policy might easily become one of the most important things in your life.

So, being casual and dismissive about insurance might not be advisable.  Any responsible adult should perhaps take stock of their risks and financial exposures, plus those of their family and loved ones, then decide how best to protect them with an appropriate policy.


Credit Card Fraud Insurance Debacle Adds to Bank’s PPI Woes

PPI Scandal

This infographic is originally published on Have I Got PPI UK, a CMC based in Manchester, UK.

The United Kingdom’s banking industry is struggling to recover from the aftermath of the payment protection insurance scandal. This disaster has already cost the largest banks more than £10.5 billion over the past two years. The PPI crisis continues to grow each month, but banks may have another problem that they need to deal with. The Financial Conduct Authority has recently announced that a credit card fraud insurance scandal is also starting to plague the industry.

Background of Credit Card Fraud Insurance

The Financial Conduct Authority began an investigation into a firm known as CPP last year. CPP provided credit card fraud insurance to High Street banks between 2006 and 2011. The FCA found that CPP and the banks colluded to trick unwitting customers into purchasing the insurance.

Many customers were misled into believing the insurance would offer more coverage than they already received. The banks told customers that they could use the insurance to protect themselves if someone stole their credit cards and rang up fraudulent purchases. However, the banks already offer this protection so there was no real incentive for customers to buy it.

Structure of the Insurance

Credit card fraud insurance premiums were typically about £120 a year. In exchange, the banks promised customers coverage for up to £100,000 in fraudulent credit card purchases. Customers with the insurance were also deceived into believing they would be insured for up £60,000 in identity theft.

The protection against fraudulent credit card purchases was moot. The Consumer Credit Act of 1974 already requires financial institutions to reimburse card holders for fraudulent purchases. The protection against identity theft may have been beneficial if it actually worked as promised. However, the £60,000 would actually be used to cover administrative costs rather than reimbursing the consumer for their losses.

Financial Scandals Continue to Grow

The PPI and credit card fraud insurance crises are beginning to take their toll on the banks. The new scandal probably won’t have the same impact as the PPI mis-selling debacle. However, the FCA still expects that it will cost the banks approximately £1 billion.

Customers already began to lose faith in the banking system after PPI mis-selling was first exposed. Many customers have worked with a PPI refunds company after they learned they may have been mis-sold the financial product. They will probably file more claims in the future as the problem gains more attention. The new credit card insurance debacle will probably cause them to lose even more faith in the banking industry. Many customers have stated that they will be reluctant to trust the banks again until they have proven that they are changing their practices.


What Happens To Taxes And Insurance In 2014?

What Happens To Taxes And Insurance In 2014?

As President Barack Obama enters his last two years of presidency, many Americans are wondering what kinds of new taxation and insurance changes to expect for the future. Throughout the next year, there will be a number of new changes that all taxpaying citizens of the United States will face – including increased taxes and new policies that mandate documentation of insurance. Whether or not you agree with the initiative, you will be facing changes that may be affecting how you get medical care – and how you file your taxes.

Employer Health-Care Mandate: The Delay Will Finally End

TaxesOne of President Obama’s biggest plans has been the Affordable Care Act, which has been a critical part of the democratic party’s platform and has promised employed Americans a better chance of getting quality health care at a reasonable price. One of the biggest benefits to expect is that preventative health care measures will be covered as well, instead of only covering or reimbursing the costs of treatment for major injuries and sickness. This summer, the White House issued a statement that it has delayed the process of demanding documentation of compliance from businesses, allowing companies more time to deal with this drastic shift in benefits throughout the upcoming year. An unexpected delay such as this should impact taxpayers relatively little, but it will have a big impact on how insurance will be procured through employers. Companies are struggling to decide when to provide the insurance demanded by ACA, as the timeline remains unclear.

However, in that many of them have already invested a great deal of corporate energy and time – not to mention the great financial investments that have already taken place – to comply with the new reporting guidelines that now will be delayed for the upcoming year. The Department of Health and Human Services has already started rolling out the benefits to individuals and families who need coverage, including special coverage for women and those who have diseases or ailments such as high blood pressure, addictions, weight issues, and cancer-preventative treatment – and these costs have to draw from somewhere. Expect many companies to struggle to implement these new requirements for employer health-care benefits through 2014 and perhaps into the beginning of 2015, and for struggling families to begin using Obamacare at higher rates – nevertheless, mandatory employer-provided quality health insurance will become a reality by the end of President Obama’s term in office.

The Effects Of Insurance On Taxes In 2014: How The System Will Operate

Like never before, the American public will have to consider the impact of tax credits and penalties on insurance at the federal level – which will lead to fee spikes over the upcoming five years. Obama has pledged to not cut any Medicaid funding, and he will do so by changing the methods through which inflation is calculated on Social Security benefits. Totaling 21 new charges, tax hikes and other initiatives that help to fund the Obamacare program, these changes will surely have an effect on everyone, though the severity of the effect will differ based on insurance status and current income levels. In 2014, expect to have to pay a $95 fee if you choose not to buy insurance or have no coverage from your employer. This fee is expected to rise to an annual charge of approximately $700 by 2016 – intended to pressure employers and employees alike to seek out affordable insurance costs that provide quality care. High-income earners will be paying a higher percentage towards Medicare costs in order to make ACA a reality.

If you and your family are wondering what types of coverage and care might be provided to you through the Affordable Care Act, it is best to consult with a representative of the US Department of Health and Human Services, who can refer you to a social worker who can handle your family’s case to make sure that you and your loved ones are fairly protected with the minimum essential coverage to keep you healthy and strong as members that contribute to society.

The article was written by Audrey, who is working for Wallace & Associates CPA, a Pasadena CPA serving the Los Angeles area.


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