Having a basic understanding of life insurance and its various components is the first step towards leveraging it effectively. In the next sections, we will explore how to determine your life insurance needs, choose the right type of policy, evaluate insurance providers, and make the most of you...
Paying off your mortgage ahead of time can have a lot of benefits for homeowners — including paying less interest, earning equity in your home faster and dropping mortgage insurance earlier.There are different ways to cross the finish line faster, but not every strategy will work for your situ...
How To Determine Appropriate Equity Exposure After you have quantified your risk tolerance by assigning a Risk Tolerance Multiple = the number of months you need to work to make up for your potential bear market loss, take a look at this guide below. ...
Customs clearance is the next step in the import process. The imported liquids must undergo a customs assessment to determine the applicable duties and taxes. Import duties and taxes are levied based on the HS code, declared value, and imported liquid type. Rates may vary depending ...
APY, or Annual Percentage Yield, is a key metric used to determine the overall growth potential of asavings account. It provides a more accurate representation of the actual return on your investment compared to a simple interest rate. While the interest rate tells you how much interest is ear...
We assume that the loan-to-value ratio (LTV) follows an ‘age minus 30’ rule of thumb, i.e. the LTV ratio will be the difference between the borrower age and 30 divided by 100. Where the borrower is a couple, lenders typically determine the loan amount by applying this rule to the...
To determine if and for what amount a premium increase is warranted, carriers may review claims history and loss ratios for the past five years. If the insured has a very brief tenure with the insurer, the company may decide that the auto dealer presents an unacceptable future risk. At that...
You can also calculate the combined ratio on a trade basis, where you divide the incurred losses and loss adjustment expenses by earned premiums and add to the incurred underwriting expenses divided by netwritten premiums. The trade basis combined ratio of insurance company XYZ is 0.93, or 93% ...
Excess:To avoid trivial claims, the insurers have introduced provisions like excess. For example, let's say that you haveauto insurancewith the applicable excess of $5,000. Unfortunately, your car had an accident with the loss amounting to $7,000. Your insurer will pay you the $7,000 be...
Mortgage payments (including homeowner’s insurance, property taxes, andhomeowner association (HOA)dues) Calculation of Gross Monthly Income You'll also need to determine your gross monthly income to calculate your DTI. Keep in mind that this factor includes all the money you earn each month befor...