Occupational Disability Protection: What to do if there are financial bottlenecks?

Elmshorn – Those who get into financial difficulties often face the decision to terminate insurance contracts. But especially with the disability insurance should not be saved at the wrong end. Because once the policy is terminated, it will be difficult with age to get comparable protection on the same terms. But how do you deal with financial bottlenecks?

News / Insurance

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Exploiting time limits

In the case of short-term financial bottlenecks, the insurer must first set a deadline before he can terminate the contract with his customer. This will give you two weeks to raise the money – and since a reminder flutters usually only after a few weeks in the house, insured have won a few weeks to raise the missing premium – so can short-term bottlenecks overcome.

Cancel insurance partially

In order to reduce the costs insured can also part with expensive parts of the insurance. Thus, some occupational disability insurance is coupled with a life or pension insurance, which can be separated. This often halves the premium.

The pension amount of the occupational disability insurance can also be reduced in order to reduce the premium – a personal agreement with the insurer is necessary here. Ideally, those affected agree that the premium can later be adjusted back up when the financial bottleneck is overcome.

Another option: the insured leaves the policy to rest. The persons concerned then do not pay the premiums due for up to one year, depending on the insurer, but of course also receive no benefits if they become unfit for work during this period. This variant is still better than a termination if the insured person recovers the old contract after one year.

Termination: Yes, but

If you have a new contract in your pocket, you can of course give up the old one. If there are no pre-existing illnesses, it can make sense to start looking for a new insurer if, for example, he offers a more favorable insurance cover than the previous one.




Portugal’s sovereign debt surpasses the 9% barrier for the first time

Portugal’s sovereign debt surpasses the 9% barrier for the first time

  • The 5-year Portuguese bonds reached the highest interest since the accession to the euro.
  • The latest cuts by risk rating agencies and the open political crisis following the Prime Minister’s resignation have contributed to this increase.
  • Portugal must face the payment of 9,000 million euros due to the expiration of several lines of debt.

Prince Charles of England (left) talks to Portugal’s Prime Minister José Sócrates at the Sao Bento Palace in Lisbon (Portugal). REUTERS

The interests that penalize the sovereign debt of Portugal continued in the same ascending line one more day and in the case of the Portuguese bonds to five years they surpassed this Wednesday for the first time the barrier of 9% .

Market sources attributed this increase to the latest cuts by risk rating agencies, to the political crisis opened after the resignation of Prime Minister José Sócrates and the worsening of economic forecasts for 2011 .

The profitability demanded by investors in the secondary market to repurchase Portuguese bonds continues unchecked, which hurts the country’s options to overcome the crisis autonomously and without resorting to foreign aid .

The Portuguese bonds to five years quoted this Wednesday to 9,040% Portugal, in addition, must face the payment of about 9,000 million euros due to the expiration in April and June of several lines of debt , which in practice forces it to continue going to issue securities in the primary market to achieve liquidity.

The five-year Portuguese bonds traded at 9,040% on Wednesday, the highest interest since joining the euro in 1999; while these same 10-year obligations are already above 8% after 38 consecutive days above 7%.

These rates are hardly sustainable , according to analysts, and reflect the high degree of uncertainty among investors, whose confidence that the country will fulfill its promise to reduce the public deficit by 2.7 points this year (up to 4, 6% of GDP) has fallen due to the context of political instability in Portugal.

Early elections?

The situation of political “impass” that exists since the resignation of the prime minister leaves open the possibility of early elections , a decision that should be taken by the President of the Republic, the conservative Aníbal Cavaco Silva.

At this juncture, Socialists, the Government, and Social Democrats, the main opposition group, exchanged harsh accusations on Tuesday, blaming each other for having contributed to the worsening of this crisis.

Standard & Poor’s has lowered sovereign debt to leave it at “BBB-“ The pressure on Portugal has only increased in recent days, with several cuts by financial rating agencies Fitch and Standard & Poor’s included.

Especially hard has been the position of Standard & Poor’s, which in just five days downgraded twice the sovereign debt lusa to leave it in “BBB-“, a single step of the consideration of “junk bond” indicating the ” BB + “.

The risk of default remains very low

Analysts at the agency, however, said on Tuesday that the risk of default , “default”, remains very low , so they think “exaggerated” the pressure to which they submit to Portugal markets.

Neither helped to clear the doubts of investors about the economic situation of the Portuguese country the publication of the latest forecasts of the Bank of Portugal, which point for 2011 to a GDP drop of 1.4%, one tenth worse than in their previous estimates , and an inflation of 3.6%.

Housing Riester: More than 50,000 euro savings

Who builds with Riester, builds cheaper. In the new residential Riester loans to state subsidy, tax benefits and interest savings in individual cases to more than 50,000 euros advantage add up. The financial test has examined the first residential Riester offers.

He builds with Riester, builds cheaper. In the new residential Riester loans to state subsidy, tax benefits and interest savings in individual cases to more than 50,000 euros advantage add up. The financial test has examined the first residential Riester offers and says how much money they are worth.

Actually, quite simply works: Riester loans are ordinary real estate loans to pay installments of principal and interest for the borrower. The conditions are almost the same as for a conventional financing – and yet the difference is large: homeowners get allowances and tax benefits as for a Riester savings contract for the repayment of a loan Riester. The condition is that they have built or bought their homes after 2007 and use it yourself. They must also pay back the loan no later than the 68th birthday.

The financial test has been calculated on the basis of six typical financing examples of how much money save homeowners with a Riester loan compared to a conventional mortgage. Depending on income, age, number of children and funding the transport balance is different. However, in any case: With the Riester house or apartment, the owner is always clearly positive.

In individual cases, more than 50,000 euros savings

The financial test model cases, the benefits until retirement add up to 12600 to 51500 euros. The taxes levied in the retirement age to the funding amounts have already been charged in these totals.

The interest on Riester loans do not have to be high: Lowest provider in the test was Landesbausparkasse (LBS) Baden-Wuerttemberg. With an effective interest rate of only 4.45 percent, their Riester loans in mid-December were even cheaper than a conventional loan at many Internet intermediaries. The best nationwide provider was the alliance with an effective interest rate of 4.5 percent.

The big drawback, however: Riester loans are – yet at least – very rare. Finanztest surveyed 86 providers. Only six providers had a fitting for the financial test model cases offer. Most banks and financial institutions will initially offer no own Riester loans or they plan to launch in the course of the year.


Promotion. Connect your home financing Riester loans from! but whose interest rate should not be much higher than for a loan without subsidies?

Old contract. Pay for the house purchase no more money in your old Riester savings contract. The repayment of the loan Riester is more profitable.

Provider. Lowest nationwide provider in the test was the alliance, even better was the Riester loans of LBS Baden-Wuerttemberg. but ask at banks and brokerage companies. The number of providers will rise in the coming months.

Combination loans. Riester subsidy is also available for combi loans of building societies, where a building loan is financed with a grace loan. Such contracts are usually more expensive.

The Four Things Necessary For A Successful Business Loan Application

You found yourself in the financial jam and are struggling even worse ends make contact with. Perhaps you can’t pay this month’s rent and might face eviction, or you don’t have insurance and require help paying medical bills so you could potentially still have a roof too broad and have food consume. So you went to their bank and got down to take out finance. Unfortunately, commercial banks do not make small loans to families. It is too expensive for a billboard bank to alter a little loan account. A credit union may be selected but, the bank will only loan money to an individual with stellar credit. Other people are denied because of their imperfect personal credit history.

Internet attributes significant effect our functional life. It is now straightforward to get cash from a home loan. You could get house approval loans entirely online through the net. What you only need to do is to fill a natural online appear. Your loan application will be regarded as without hold-up. You will get loan amount within in few hours time. You’ll have not be bothered to pay a visit to anywhere for the loan. If the credit is eligible, the money will be transferred to your account with delay and hassle. Which can make use of the funds from the comfort of your home. To ensure that it is straightforward for you to get the cash through the net.

It have been better to mail every taxpayer a carefully consider $100,000 more than a caveat that 80% of the money to be able to pay down debt for that household. With this solution, almost 4.5 trillion dollars possess been pumped back into the economy and lessened the impact, though not eliminating it. Granted there would still undoubtedly be some problems that are going to have to get been dealt with, beginning with re-instating laws that appear to be passed as soon as the Great Depression to keep the speculation down in monetary system developed by classification of banks separate from investment banks and wire-houses. But that’s another 600 pages of dissertation we won’t bore you when it comes to. So. Finding yourself in this whirlwind, what now ??

The mainstream press hasn’t reported this either: A provision associated with $700 billion bailout bill permits the Fed to pay out interest over the collateral it’s holding, in which merely best ways to funnel taxpayer dollars straight into the investment consumer bank definition money institutions.

Down payment: When you borrow a building loan, just be sure to make a more expensive down money. Borrowing money may seem to be easy but it can long-term commitment. It is best to keep your borrowings low by creating a higher down payment.

Certificate of Deposit – this kind of account, also known as a CD, is for deposit only. You don’t touch the money deposited from a CD for an agreed upon amount of time, covering everything from 6 months to several years, most likely earn a guaranteed interest rate. If you do withdraw the money before the agreed upon date, a lot of lenders will cost you a service fee.

I shudder to think what main difference could are had there been some accountability along with those high business leaders I had got to hear live back in 1978. Who knows, Home Federal may still be enterprise today!