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Are you one of those people who doesn’t open their bank or credit card statements? Do you take out store cards on the spur of the moment? Have you been with the same bank simply because it is less hassle than changing?

If you have answered yes to any of the above questions, fear not confused consumer, help is at hand, with some assistance from a few internet tools.

* Internet tool number one:

** The consumer champion site for personal finance information

Websites such as Fool.com, Fool.co.uk and Moneysavingexpert.com have proved extremely popular with consumers. Fool.com is more geared towards the US market, whilst Fool.co.uk focuses on the UK market. Both have an extremely diverse selection of information from investment and high risk options to personal finance and low risk options. There are extensive discussion boards, newsletter subscriptions, finance calculators and competitions. These sites not only answer your questions, they make you want to ask more.

Fool.com, Fool.co.uk and Moneysavingexpert.com are community based sites and function on consumers exchanging information between themselves, whether that’s about passing on recommendations or expressing concerns. The article “Ten Reasons To Fear The Future” by Cliff D’Arcy” on Fool.co.uk is a particularly good introduction to the financial aspects of modern life.

Martin Lewis has almost become a household name in the UK through his website Moneysavingexpert. The outspoken journalist and presenter offers a comprehensive resource on a range of personal finance topics. If you can put up with the cheesey photos of Mr Lewis and his catalogue poses, you will undoubtedly find this site extremely helpful.

* Internet tool number two:

** The price comparison site for personal finance information

Kelkoo, moneynet.co.uk and Lowermybills.com (US) are now commonly exploited by consumers to ensure they are getting the best deal on their purchases. However, it is probably fair to say that more people shop around for clothes and music, than they do for their personal finance products, which is worrying as these cost significantly more.

* Internet tool number three:

** Online banking and account aggregation tools

The internet can be a scary thing and there is still much scaremongering about online security. However your details are often as secure online, as they are offline and providing you choose and hide your password effectively - there should not be a problem with people accessing your confidential information. Choose a password of eight characters or more, preferably replacing some letters with numbers, such “1nternet” or “passw0rd”.

Set yourself up with online accounts and you can proactively manage your finances yourself, without waiting for statements through the post or call centre agents to take your query. You can also save yourself bank charges by transferring funds yourself over the internet. Some banks charge large amounts for transferring funds when you can do it for no additional cost at all.

Personal finance doesn’t have to be about debt and the efficient co-ordination of funds may save you hundreds of pounds in the long-term.

Resources:

http://www.fool.com

http://www.moneynet.co.uk

About Rachel

Rachel would be really interested to get feedback on whether anyone actually reads this section. Rachel has written about living in straw huts, having the ‘Best Hits of 1987′ in her music collection, eating Green and Blacks chocolate and the fact that on her left foot - her second toe is bigger than her big toe. If someone feels like rescuing Rachel from obscurity, she would be grateful for an e-mail out of here.

Rachel also writes for the personal finance blog Cashzilla - http://www.cashzilla.co.uk

Don’t spam it though or she’ll eat you.

Contact details
Rachel Lane
Rachel@positiveinterest.com

Tags: Credit Cards, debt consolidation loans, Life Insurance, personal finance, personal loansCredit Cards, debt consolidation loans, Life Insurance, personal finance, personal loans

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Many seniors own life insurance policies that they no longer need or want, or that they can no longer afford. Often, they allow their policies to lapse or cash them into the insurance company for the surrender value. What many seniors don’t realize is that their unwanted life insurance may be worth much more if sold to an investor in a life settlement. A Life Settlement is the sale of a life insurance policy by the policyowner, before the policy matures. Such a sale, at a price discounted from the face amount of the policy, but in excess of the cash surrender value, provides the seller an immediate cash settlement.

Life Settlement History

Life Settlement industry evolved out of Viatical Settlements.

In the mid-80’s AIDS became an epidemic, A number of AIDS patients were told that they only had a limited time to live. Many of these patients owned life insurance policies. They knew that when they died, their family would receive the death benefit but they needed money today to pay medical bills or enjoy the rest of their lives. In stepped Viatical Settlement companies. These companies purchased policies on terminal patients and sold them as retail investments to individual investors. The AIDS patients got money they needed today and the investors got the promise that when the patient died they would get the death benefit.

The Life Settlement Market

In the 90’s the Life Settlement market was born as companies and investors turned towards buying unwanted life insurance policies from seniors. According to Sanford Bernstein, the industry grew from $0 in the mid 1990’s to approximately $13 billion in 2005. Bernstein estimates the life settlement market will reach $160 billion over the next several years. The penetration rate is expected to exceed 20% as awareness and the size of the market is increased over the next 20 years.

Life Settlement Case Studies

Below are some real life case studies that illustrate ways that others have used life settlements to increase their net worth:

Case 1:
Settlement Frees up $966,000 in Cash for Annuity purchase

This case involved an 82 year old female who owned several policies totaling $4.6 million. She no longer wanted to pay premiums for the insurance and was going to accept the cash surrender value of $236,548. Her intent was to use the policies’ cash value to help fund the cost of an assisted living facility.

Her advisor recommended a life settlement for each policy, and she agreed. Ultimately she received a settlement of $966,000 - more than 400% greater than the cash surrender value - and used those funds to purchase an annuity. The annuity payments now help cover the costs of the assisted living facility.

Case 2:
Settlement Proceeds Stabilizes Trust

This case involved an 81 year old female, owner of a $5 million life insurance policy with a surrender value of $196,866. Since the insured had lost interest in maintaining the policy and no longer wished to make gifts to the trust for premium payments, the cash surrender value was rapidly depleting as premiums were being deducted from the cash value. Working with her financial advisor they conducted a review to determine whether the policy should be surrendered or whether a Life Settlement would be more advantageous. The advisor provided an offer of $556,000 - over three times the cash surrender value.

Case 3:
Settlement Allows Policyowner To Purchase Paid-Up Policy

A 78 year old male decided to allow his $1,250,000 policy to lapse. He had significant medical expenses and could no longer justify the $39,536 annual premium. After reviewing the available options with his advisor they decided to pursue a Life Settlement. He was able to secure an offer of $490,000. The policyowner and advisor decided to use some of the proceeds to purchase a paid-up $500,000 policy and the remainder helped to ease the burden of the policyowner’s medical costs.

Case 4:
Policyowner Makes $797,000

A 74 year old in good health purchased a $10mm Life Insurance Policy. He paid-$536k for two years of premiums. After the policy is two years old, he sold the policy for $1,333,333 in the secondary market representing a $797,000 profit on his investment.

If you are 70 and over, and have an insurance policy that you were going to get rid of anyway, you owe it to yourself to explore whether a life settlement might be a better option.

Matthew Tuttle, CFP

Tags: Life Insurance, life settlementLife Insurance, life settlement

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Sorting out your personal finances can be a tricky and exasperating time. Whether you are looking to obtain money through a loan, protect your finances with life insurance, medical, travel or car insurance, save some money through an individual savings account (ISA), apply for a credit card or a mortgage, change a telephone or fuel utility supplier, or simply decide what the best current account is for your needs, the choices are seemingly endless as well as being extremely complicated. They can also be potentially serious if you get it wrong. With so many options, and so many companies trying to get you to use their product, it is difficult to know where to turn.

The first method of working out your own finances is to review your needs and compare the products on offer to meet those needs. You could, if desired, visit the banks one by one, burning calories and shoe leather by doing so. Alternatively you may have heard of the World Wide Web, it’s like a sort of big and commercial version of Narnia and you don’t have to go through your wardrobe to get there. And no freaky men with goats legs

not without a login and password anyway.

So, we present the concept of financial product comparison sites, which have been around in the UK since 1997, when small company called moneynet decided to break up the monopoly in the personal finance market. Over the past eight years, there has been an explosion in the number of UK sites seeking to provide information to enable consumers to make informed decisions on their personal finances. These sites provide free consumer financial product comparison services for credit cards, insurance, investments, savings accounts, mortgages, loans, as well as gas and electricity bill suppliers. Additional consumer information services are also often provided such as financial guides, financial newsletters and personal finance calculators. Moneynet, in particular, has a tool which allows registered users to manage all of their accounts online - securely, including credit cards, savings accounts and current accounts.

You can also obtain financial advice from an independent financial advisor, but this is an expensive way of doing what could be done for free with a little effort. If you do your own homework, then you can use your time with an advisor more effectively by asking informed questions. You’ll have a better understanding of what you’re being sold if you’ve done a little bit of homework first.

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Resources:

http://paler.com/uk_financial_comparison_sites.html

http://www.moneynet.co.uk/

About Rachel

Rachel writes for the personalfinanosaurus Cashzilla

http://www.cashzilla.co.uk

Rachel has been writing personal finance related articles for six months and has learnt so much about mortgages and life insurance, that nobody invites her out to dinner anymore.

Tags: Credit Cards, Life Insurance, motor insurance, personal finance, personal loans, UK mortgagesCredit Cards, Life Insurance, motor insurance, personal finance, personal loans, UK mortgages

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