Most individuals who claim auto related deductions use their personal vehicle for corporate activities. However, some small business owners may have vehicles that are used entirely for the enterprise’s activities. Auto insurance premiums may be deductible as well in these instances.

Maintain Records for Auto Use

For those who are going to take the mileage deduction, the means by which records should be kept is via a log. This log can be a simple notebook stating the date and distance that was driven with a note of where the trip was to.

For those keeping receipts, they need to be kept together. The best way to do this is to keep a large envelope in the car and every time the car is filled with gas, or maintenance is performed, the receipt goes into it. At the end of the year, it’s helpful to create a cover sheet with the totals for gas and maintenance so that the amounts can be included more easily on the tax return.

Don't leave the Benjamin's on the table!

Track Mileage

When it comes to tracking mileage, it is important to know that commuting to and from work is not deductible. The idea here is that one must get to work, so this is not a business expense. However, any driving done from the office is not commuting. For example, if an employee arrives at the office and then makes a sales or service call to a location 10 miles away, the 20 miles going to and from the service call would be deductible.

In addition to this, for those who work two jobs, there is an allowable deduction for driving from the first job to a second one. For example, if a person works during the day at one job, and then has a night job, the drive to Job #1 in the morning would not be deductible and neither would the drive home from the night job, but the drive from Job #1 to Job #2 would be deductible.

In addition to this, there is a deduction for miles driven for charitable purposes, such as those who delivered food and water to victims of Hurricane Sandy last year. Moving expenses, if the move is job-related, are also deductible.

Deductible Rates

When claiming deductions, it is important to know that not all mileage is valued equally. The rates are as follows for fiscal year 2012:

Business: 56.5 cents/mile

Moving: 24 cents/mile

Charity: 14 cents/mile

Using the example of the person working two jobs above, let’s say that the employee works at the night job two days a week and that it is 15 miles from Job #1. The employee did not move during the year, but did deliver Meals on Wheels one day a week, and averaged 50 miles per day.

Driving 15 miles twice a week over 50 weeks would be 1,500 miles, which brings a deduction of $847.50, and driving 50 miles over 50 weeks for charity equals 2,500 miles, which brings a deduction of $350. This person’s total deduction for mileage in the year would be about $1,197.50.

Mileage is a great way to increase your tax refund, because you’ll receive compensation for miles you would have driven regardless.

Compare insurance quotes to take advantage of healthy changes!

Making a Change

While many people commit to make changes, not everyone successfully achieves their weight loss goal, their goal to quit smoking or other lifestyle change.  If you have achieved your goals, it might be time to consider purchasing a new term life policy to replace the policy you currently have.  However, don’t cancel your existing policy until you have secured a replacement, which could be a costly mistake.

Before you Cancel

One of the biggest reasons to replace your existing policy with a new plan is to save money.  While there is potential to save, whether it is because your health has changed or rating guidelines have changed, you should never cancel your existing insurance until your new policy is in force.

Reputable agents trying to sell you a life insurance policy should explain the quoting and application process.  When you request a quote, this is just an estimate based on the answers you have provided to the questions on the application.  Once you submit your application, underwriters will review the answers and your medical records to determine the price that they will offer you coverage.  Depending on their underwriting process, and possible previously unknown negative lifestyle or medical concerns, your rates can go up dramatically.  If your medical condition is serious, the insurer may even deny you insurance.  This is why you should keep your policy in force until you know your new insurance policy has been issued.

When Should You Consider a Policy Replacement?

There are a number of different scenarios where replacement may be appropriate.  If you did not take time to compare insurance rates when you established your existing policy, you may want to do so now.  The macroeconomic environment can also have affect the cost of life insurance, since insurance companies invest your premiums in broad market securities, which generate returns that they use to fund insurance payments. As the securities and interest rate markets fluctuate, so too do the costs of insurance policies.

Another very good reason to shop around for insurance is when you have quit smoking or using tobacco for more than a year.  Rates for smokers are much higher than rates for non-smokers.  While some companies do specialize in sub-standard smoking rates, there is a chance you could save money with a standard insurer if you have successfully quit.  The same holds true for a change in alcohol use or other unhealthy substances.

Weight Loss

Weight loss usually results in a host of health improvements. In addition to preventing future ailments and illnesses, weight loss may help you overcome and eliminate existing ailments. If you were diagnosed with high blood pressure, obesity, or high cholesterol, losing weight and living a healthier lifestyle may translate into lower premiums.

Consider more than just the premiums when you replace your insurance.  You need to also look at the surrender fees and the waiting periods associated with the new and old plans.  Compare insurance quotes and speak with the insurance agents to help you throughout the replacement process. Weigh the pros and the cons and be sure your new policy is in place before you cancel your existing policy.  By replacing your new term, you may be able to get more coverage for less and extend your term at the same time.

At some point, life insurance premiums may become an expense with limited return on investment.

Making the Determination

How do you determine whether or not a life insurance policy is right for you? The answer begins with doing research on the most popular forms of coverage. Several types of life insurance policies exist, but they all fall under the umbrella of either a term life or permanent life policy. Term life policies will provide coverage for a set period of time, while permanent life policies will provide lifetime protection for the insured individual.

Having a term life policy is excellent for young adults or individuals who decide to start a family. Term life insurance will provide a financial cushion for individuals so their families will not face tough economic times in the event of their passing. It also keeps the family from dealing with high funeral costs and possible medical expenses associated with an untimely demise. For this specific group of people, the coverage is much needed, but it is still unnecessary for certain individuals despite these excellent benefits.

Life Insurance for Kids

Buying a term life policy for an infant or a teenager is excessive and pointless in most cases. These individuals are still under the care of a parent or guardian, so they have no financial obligations to worry about. Children in this situation may not need life insurance until they reach the age of 18 or 21. Granted, a life insurance policy that covers funerals (and similar expenses) may be prudent for families who are unable to bear the risk of a sudden expenditure. The policies are often very inexpensive.

Life Insurance for the Elderly

What if the individual is a senior at the age of retirement? Should he or she purchase a life insurance policy? This answer totally depends on their situation. If this person already accumulated enough cash and assets to pass on to their loved ones, they may not have reason to purchase a life insurance policy. If the individual has no policy or retirement savings of any kind, they may be able to benefit from a term life policy.

Purchasing insurance as a senior is also relatively expensive since a person‘s age determines the cost of the premium. Seniors should seriously take this into consideration when deciding on whether or not to purchase a policy. If you are in this age group, be totally honest with yourself before you make any kind of commitment. Avoid purchasing a policy unless your income will allow you to keep up with the cost of the premium.

Permanent Insurance Policies

You can also expect to pay higher premiums if you choose permanent life insurance instead of term life insurance. Permanent life policies are attractive because they build cash value over time. These agreements usually have acceptable terms, but they can also be costly for certain individuals. If you are a first-time insurance buyer with limited funds, stick with a term policy until you can upgrade comfortably.

Depending on your current situation, you may not have a need for life insurance at the moment. This does not mean you will not need it at some point in your life. If you are young, you will definitely need it as you get older. If you are already at the age of retirement with a healthy nest egg, you may not need it, but it will not hurt you to have one. Regardless of your current situation, try to obtain a life insurance policy if your income will allow you to afford one. As with anything important in life, it is better to have it when you need it than to need it and not have it.

The United States Federal Reserve Bank introduced a form of monetary policy called quantitative easing in an attempt to stimulate the banking system during the financial crisis in December 2008. The Federal Reserve had essentially exhausted most of the conventional methods in its monetary policy toolkit by using its primary money creating mechanism – the federal funds rate – to achieve a targetof near zero rates for overnight bank borrowing in an effort to stabilize the financial system. With the inability to lower short-term interest rates any further, and essentially free overnight borrowing for financial institutions, the Federal Reserve launched its policy of LSAPs, also known as large-scale asset purchases.

Keep an eye on inflation measures to ensure you are adjusting your insurance policies as needed.

Risks to Insurance Policies

The principal risk of the Federal Reserve’s policies to insurance policies is that of inflation. Inflation means that each dollar is worth less, meaning that life insurance policies that are adequate today may not be adequate in the future. The same holds true for home, health and auto insurance policies. The Federal Reserve must balance between stimulating the economy and keeping inflation low.

Asset Purchases

Quantitative easing, which is the common vernacular used to reference the large-scale asset purchase programs of central banks, is a monetary policy designed with the intention of stimulating higher levels of aggregate demand in the economy by lowering long-term interest rates. Specifically, this policy is implemented by the Federal Reserve purchasing longer-term U.S. Treasury bonds and asset-backed securities from the two government-sponsored mortgage giants Fannie Mae and Freddie Mac. The Fed purchases these securities in the financial markets, not directly from the government itself. This has the calculated effect of bidding the prices of these debt instruments higher in the open market, which lowers the interest rate yields on the securities. The concept follows a basic premise that by the Federal Reserve lowering the cost of money over longer time horizons, consumers and businesses will be sufficiently motivated to borrow larger sums in the form of home mortgages and investments in capital goods like plant and machinery.

Economic Growth

The intended consequences of stimulating such borrowing activity are ideally to drive growth in the general economy, lower the unemployment rate, and generate higher levels of consumer activity. Additional effects would include encouraging institutional investors to redirect capital into corporate bonds, municipal debt, or the stock market by selling their Treasury securities at attractive prices. One of the theories behind quantitative easing is that private-sector enterprises will attract more capital from large non-bank financial institutions seeking higher yields in blue-chip corporate stocks and bonds. In theory, consumers would benefit by having thriving employment opportunities and rising wages associated with private-sector growth, as well as increasing retirement fund balances from a robust stock market.

Inflation Target and Unemployment Rate

The Federal Reserve announced in December 2012 that it will continue large-scale asset purchases of $40 billion each month of mortgage-backed securities and $45 billion per month of longer-duration U.S. Treasury bonds. The Fed determined that this program of quantitative easing is scheduled to remain in place until the inflation rate shows significant signs of increasing above its 2 percent target, which could negatively affect many term and whole-life insurance policies. The inflation rate is one of the two primary benchmarks the Fed indicated it will use to determine the success of the quantitative easing policy. In March of 2013, the Fed announced it will continue this policy.

The other vital statistic for the Fed is the unemployment rate, which fits with the central bank’s stated objectives of price stability, moderate long-term interest rates, and maximum employment. The Federal Reserve anticipates that it will keep interest rates at or near zero as long as unemployment remains above 6.5 percent, or until inflation rises at least a half point above its 2 percent target rate.

Consumer Concerns

For consumers, the Federal Reserve’s quantitative easing policy holds the promise of enhanced economic growth and opportunities associated with historically low mortgage rates. The potential dangers are that near zero rates essentially penalize savings and insurance policies and through future inflationary pressures.

Discipline is the art of sharpening and perfecting the skills of the mind into a tool or weapon, but it is an elusive skill. A person’s temperament can make it easier or harder to exercise discipline, and those who can do so find it more useful than any amount of inborn talent. Only a small percentage of experts succeed based on talent—the rest get by on discipline and deliberate practice. This is as true in making investment decisionsas it is in any sport or hobby. Every stage of the investment process, from investigating and choosing your first investments to managing a long-term portfolio, should be closely managed and the skills needed constantly developed and sharpened.

A disciplined approach to investing will minize risk, while maximizing return.

The Necessity of Discipline

Just as you would never enter a boxing ring without years of practice and cultivated discipline, neither should you enter the markets. In the initial stages of building a portfolio, discipline is just as important as the knowledge of the investment itself. One simple oversight is the difference between a year of profit and a year of losing money to inflation. Deciding to check for trends, news and competitors for a stock is potentially worth thousands of dollars for a simple hour or two of work. An investor that fails to exercise discipline in their approach will likely fail in the returns of their investments. No matter how good your instincts are, nothing can substitute for thorough research.

The Follow Through

Once you have chosen your investments, the need for discipline does not stop there. Your initial choices will be informed by the investment strategies you have chosen, so your future decisions must be informed by those decisions as well. There are many reasons to deviate from your plan down the line, but usually these are emotion-driven reasons made in the moment. Maybe there’s a little voice that says it’s not going to work, and selling early is a better idea. Decisions based on emotions don’t always fail, but their success or failure is a matter of luck, rather than skill. Deviating from the plan on an emotional whim is simply trading one uncertainty for another. On the other hand, a solidly researched strategy is based on sound principles and careful consideration of the risks and benefits of each action.

Emotional decisions can be made out of greed or fear, and in either case the results can easily be catastrophic. Global crises like the ones in 1929 and 2008 are caused in part by irrational investing, and exacerbated by people acting on emotion. The classic boom-bust cycle has played out many times in history: some commodity is perceived of as “hot,” whether dot-com stocks or credit-default swaps, or even tulip bulbs; speculation causes prices to rise, re-enforcing this belief, until the speculative bubble bursts and prices begin to fall. At that point, panicked investors try to unload their investments as they rapidly lose value, which drives prices even lower, causing more panic. Having the discipline to weather temporary setbacks and to avoid taking on more risk than you can handle in hopes of cashing in, gives an investor a major advantage in the long-run.

The Goal of Investment

The ultimate goal of an investment is the choice of the investor. If it is to be a learning experience, then the financial reward should be secondary. If the goal is financial reward, the investor needs to be aware of the risks and potential threats to the integrity of their investment, and mentally conditioned to take the narrow path that leads to profit.

Discipline raises questions like “is this the best idea?” The chess giant Emmanuel Lasker said, “When you see a good move, look for a better one.” This applies to investing as much as it does to chess. The investor needs to be able to back up their ideas with evidence and experience. If a promising idea proves unsound upon further research, that is not a failure but a success; you have avoided a dangerous investment before making a commitment. Keep in mind that the goal of most insurance-based investment portfolios is to mitigate risk, which is paramount to maximizing short-term profit. Keep this goal in mind when making investment decisions.

Most people are familiar with the way insurance companies deal with traffic collisions of the usual type – 2 or more cars colliding or one car colliding with a roadside obstruction, etc. However, what about oddball accidents such as deer collision or collision with road debris or debris from another vehicle? These accidents are often treated a bit differently by auto insurance providers.

Deer and Other Animals

The deer population is growing in many areas of the Unites States, from California to Connecticut. There are about 25 million deer in the U.S. – a number roughly the same as the population in 1607 when settlers founded the Jamestown settlement. This means that more and more deer on average are trying to cross roads and deer-vehicle collisions are even more common than in the past. States such as Michigan and Pennsylvaniacan be found at the top of the list of areas with a high number of deer-related accidents.

The unexpected does happen.

As regards auto insurance, this tends to mean that insurers don’t automatically cover accidents involving deer. Remember, insurance companies are in business to make money, and they are banking on a higher likelihood of receiving premiums than paying out on claims. Therefore they generally don’t want to cover hard to predict yet relatively common occurrences like deer or other animal related accidents unless they are compensated appropriately.

Unpredictability

As suggested above the unpredictability of this type of accident is also a factor. An insurance company uses formulas based on predictable demographic factors to arrive at an assessment of the probable risk of insuring you. They cannot, however, make any realistic prediction at all about whether a deer will happen to run out in front of your car. With such complicated modeling, it is difficult for insurers to price in the risk of a deer related auto accident. A driver’s driving history doesn’t necessarily reflect the likelihood. Most important is the geographic area in which you tend to drive.

Comprehensive Coverage

Often what all this means is that insurance companies only cover animal related accidents if their customers take out comprehensive coverage. This is an expanded and of course more expensive coverage plan. People wishing to take out auto insurance and who live in high deer areas should thus be aware of this when selecting and pricing out insurance.

Road Debris

These same sorts of consideration apply to road debris based accidents. Since they are unpredictable and often ambiguous, insurers often dispute claims made about them. One factor here is that it is often hard if not impossible to determine who is at fault in a road debris accident. Pieces of debris can fall off cars and trucks and be on the road for hours before somebody collides with them and has an accident. It is difficult and dangerous to retrieve debris from the road in a high traffic situation so it often remains there for some time before anyone clears it off the roadway. If it can be proven that the debris is from a certain vehicle, there are some witnesses, insurers will often pay on the claim. But if the facts are unclear, they may not.

If you are involved in an accident involving road debris and are having difficulty collecting on your insurance policy, you may need to contact an attorney for assistance. A good lawyer experienced in this type of thing can often do the necessary legwork to clarify and prove your case. Insurance companies are in many ways just like judges and juries and need to be convinced before they pay on a claim.

Animal and debris accidents are quite common enough. If you live in an area that is highly susceptible to these types of incidents, make sure to find an insurance policy that adequately protects your financial well-being. Compare auto insurance policies across a wide range of insurers to find the policy that best meets your needs at the most affordable price. You will thank yourself should you run into anything down the road.

A note of advice: If you see debris on a roadway and it seems too dangerous to get it off the road yourself, call 911 and report it.

Don't let a few years eradicate your life's savings.

What is Long-term Care Insurance?

Long-term care insurance is a relatively new insurance product that is intended to fill a void between medical, disability and life insurance.  This specialized insurance plan is designed to pay for long-term care services when you are unable to take care of yourself because you are ill, disabled, or frail.  Unlike health insurance, which is designed to pay for doctors’ visits and treatment, long-term care insurance will pay for help with each of the daily living activities like bathing, eating, using the restroom, and dressing.  As individuals live longer, the costs of sustaining ourselves is every increasing. Long-term care helps take some of the risk out of being unable to afford the costs associated with such care.

Many people assume that Medicare and Medicaid pay at least some of the costs of long-term care, but for most Americans, it does not. Medicare does not pay for any of the costs and Medicaid only pays for certain costs for citizens who meet certain poverty thresholds. With State and Federal governments reducing, rather than expanding, benefits, the likelihood of receiving assistance diminishes daily.

How Much Can You Expect to Pay for Long-term Care?

With life expectancy averages getting larger, more and more people are living to 80 and beyond.  The longer people live, the more care they will need in their lifetime.  According to the Health Insurance Association of America, the average cost of care in a nursing home is about $55,000 per year nationally.  If you live in an area with a higher cost of living, you can expect to pay more than this.  Assuming that you will need care for 5 years, you can expect to pay $250,000 just for care for that short period of time.  Without insurance, you may be forced to sell off your investments and use your assets just to pay for this short-term cost of care.

Do You Need Long-term Care Insurance?

Some studies have shown that as many as 70% of us will need some level of long-term care during our lifetimes. You are never too young to buy long-term care insurance.  In fact, the younger you are when you buy your policy, the lower your premiums will be each year.  All policies are rated on your age at the time of application and the premiums will remain level.  There is a common assumption that only the elderly need coverage.  While retired policyholders file the most claims, coverage will also apply for a young person who needs long-term care because of an accident or illness.  If you do not currently have coverage and you want to protect your life savings, a long-term care insurance policy may be the right answer for you.  On the other hand, if your only source of income is Social Security and you are already retired, the benefits of this specialty insurance plan may not be enough to justify the costs.

The question is does not necessarily have to boil down to a yes or no answer, rather the question should be phrased as “what is the right level of long-term care insurance for you?” If you are covered by Medicaid, the answer to that question may be none (the same if you are among the super-wealthy). For most Americans, the answer is that an affordable policy that helps to mitigate the risk of financial ruin is of great value. Finding a policy that offers some level of coverage, at a premium level that you are able to afford is probably the right answer. Many policies offer inflation clauses, which mean that your benefit rises with inflation, helping to mitigate the risk that long-term care costs might outpace your insurance benefit.

Only you can answer the question of whether you think long-term care insurance is right for you. If you come to the decision that this product would be valuable for you, when you are shopping around to price the cost of long-term care insurance, make sure you build a policy that is right for you.  Consider where you would like to receive your care and receive an adequate daily limit so that you can live in a comfortable environment.  You should also consider the waiting period and select a time frame that will keep your premiums low without taking up too much of your savings.  Long-term care insurance can be customized to meet your needs.  Build a policy, pay the premiums, and have peace of mind in knowing you will always be cared for.

Insurers shouldn't let the small size result in a large premium.

The risk of an accident and the estimated damages associated with the accident are the two main factors in determining the price of an insurance policy. Therefore, understanding how insurers measure the risk of a vehicle is critical to understanding how insurance policies for that vehicle (i.e. insurance policies for a smart car) are calculated.

Impact Test Ratings

According to MSNBC, the smart car has received the highest safety ratings in the United States. In fact, the ratings are even higher than more traditional vehicles when it comes to impact test ratings. Although the car is small, it performed well on front and side impact crash tests. Many people fear small cars, however, this car’s small size is actually what may keep you safe should you ever be involved in a medium to low-speed crash.

Basic Safety Features

Every car is equipped with basic safety features, and the smart car is no exception to this rule. Like all of its traditional counterparts, the smart car comes fully equipped with an anti-lock braking system, which prevents skidding due to a sudden stop or ice on the road. However, one safety feature that is unique to the smart car is the electronic stability program, which automatically detects when your car is skidding and automatically configures the driving settings to correct this pattern and keep you safe.

Advanced Safety Features

Of course, there are more advanced safety features that are built into the smart car as well that are more likely to protect you in the event of a crash. Cnet.com reported that there is a “steel reinforced cage” that helps all the energy to be distributed more evenly throughout the car, which protects you since your body doesn’t absorb the majority of the impact during a crash.

What to Look for in a Car

Whether or not you want to purchase a smart car or even a traditional car, there are a few basic safety features that you should consider in any vehicle before you decide to buy it. Consumer Reports suggests the following:

• Front and side airbags
• Anti-lock Braking System
• Traction control
• Fully functioning seat belts
• Cruise control and other computerized safety/warning features

These are just a few of the most prominent safety devices that you should look for when buying any car, regardless of whether or not it is traditional or a smart car. These will keep you safe in the event of an accident, and most of the time, they will prevent an accident from even happening in the first place.

Beyond the car itself, safe driving courses can help to teach safe driving habits that help you avoid accidents. Safe driving tips and behaviors not only keep you safe from harm, they also may allow you to qualify for automotive insurance discounts.

Based on all of the preceding information, it appears that smart cars are just as safe as a traditional vehicle—if not safer. They score perfectly on almost every crash test they are put through, and they are fully equipped with the most essential safety features that are necessary for preventing accidents and reducing the rate of injury should a collision ever occur. In short, if you do decide to invest in a smart car, you will be completely safe.

Insurers will measure the risks differently however, so be sure to compare auto insurance policies in order to find the insurers who have appropriately considered all of the safety features offered by smart cars, and offer policies at affordable prices.

After separating from your former spouse or partner, you probably don’t want to worry about changing your insurance coverage to suit your new status as a single parent. However, doing so might save you hundreds or thousands of dollars per year and ensure that you and your children enjoy the coverage that you deserve. Whether you’ve become a single parent as a result of a contentious divorce or the untimely death of your spouse, read on to learn more about finding insurance suited to your new living arrangement.

As a single parent, more than ever, their safety is your number one concern.

Beneficiary Changes

Your first priority should be changing your life insurance policy’s beneficiary designation. If you’re like most life insurance policyholders, you named your spouse as your policy’s primary beneficiary. Should you die suddenly, your still-living former spouse might receive an unexpected and undeserved windfall. If your spouse is deceased, his or her continued designation as the policy’s primary beneficiary could set up an awkward and contentious battle between your surviving relatives and the policy’s underwriter.

To avoid confusion, remove your spouse’s name from the policy at once and designate a new set of beneficiaries. Many single parents choose to name their teenage or adult children as collective beneficiaries. If you opt to name a minor child as your beneficiary, you’ll need to establish a trust to administer the policy’s death benefits until he or she reaches adulthood. Life insurance companies generally won’t transfer benefits directly to minor beneficiaries. If you fail to establish a trust, your child’s new guardian may receive the funds.

Alternatively, you could designate a surviving parent or trusted relative to fill the role. Remember to update your designations as circumstances change. If you choose to remarry, you may wish to name your new spouse as your policy’s beneficiary.

Health Insurance Considerations

You’ll need to make changes to your health insurance coverage as well. If you and your spouse received benefits through your employer, notify your provider that you no longer wish to include your spouse on your plan. This may save you hundreds of dollars per year. If you received benefits through your spouse’s plan, you may be entitled to a limited extension of benefits under the federal government’s COBRA program. Keep in mind that this may increase your out-of-pocket health insurance costs.

If you don’t currently have health insurance or aren’t eligible for COBRA benefits, consider shopping for a single-coverage health insurance plan. Most mainline insurance providers offer some form of single-coverage plan. While such coverage is typically more expensive than group coverage, some providers offer discount plans that cater to healthy adults. Be sure to solicit quotes from a wide range of providers before settling on a plan.

As a newly-single parent, you may be eligible for coverage under a federally-funded health insurance program. Your eligibility typically depends upon your income. If your annual income is at or near the federal poverty level, you and your children may qualify for Medicaid. In some states, your children may qualify for the program even if you’re not personally eligible.

Your children may also qualify for a kid-specific federal program known as SCHIP. Although each state maintains slightly different eligibility requirements for SCHIP coverage, the program tends to be more generous than Medicare. If your income is less than double the federal poverty wage, your kids may qualify. In some states, they may be able to receive SCHIP coverage until they turn 21.

If you and your spouse both have health insurance options available to you, you will need to decide how the kids are insured. Often this is decided in the divorce settlement, but if not, be sure to discuss, as paying twice for the same insurance is certainly a poor answer. Find the policy that most provides the right level of coverage for the children; then work out the payment situation.

New Living Situation

Depending on your situation, you may be changing residences. If you are on the homeowners policy, but will no longer be living at the residence, make sure to notify the insurance provider so that your name can be removed from the policy. Be sure to shop around for either a new homeowners or renters policy for your new housing. Keep in mind that many consumers bundle their auto and homeowners policies, so you may find yourself facing higher premiums for a standalone auto insurance policy than you would expect. Bundling that policy with your new homeowners or renters policy may offer you some compensatory savings.

Address your Auto Insurance Policy

As cars are divided between spouses, be sure to have your spouse’s name removed from your policy. Since they will no longer be driving the vehicle, their risk profile should no longer be reflected on the policy. Depending on your situation, this may result in either an increase or a decrease in the annual premium. Comparing auto insurance rates across insurance providers will help you identify the lowest cost policy available to you.

Bundle and other Discounts

Regardless of the specifics of your individual situation, becoming a single parent is an incredibly stressful occurrence. Make sure you aren’t adding to your stresses by exposing yourselves to unnecessary (uninsured) risks. Take advantage of bundled insurance packages offered by many insurers, ask about other discounts you might be eligible for and use this opportunity to compare policies to find the lowest cost policy that meets your needs.

A little empathy may go a long way.

While insurance adjusters follow certain protocols, they also enjoy some professional freedoms. If you’ve been involved in an auto accident or sustained damage to your home, you may be able to influence your adjuster’s decision-making processes and squeeze some extra cash out of your insurance provider. Read on for four tips on maximizing your insurance claim.

Be Friendly

Claims adjusting is not a glamorous profession. Whether you’ve been involved in a car accident or sustained interior damage to your home, the claims adjuster assigned to your case is likely to be overworked and underpaid. His or her job is to determine the value of the damages caused to your home, vehicle or person and persuade you to accept a payout in that amount. Under normal circumstances, this might involve a cursory visit and several curt follow-up phone calls.

If you can remove your adjuster from the daily grind for a few minutes, he or she may be willing to spend more time on your case. Be sure to offer your adjuster water or a soft drink when they arrive at your home and maintain an unfailingly polite veneer regardless of the circumstances surrounding the case. Remember his or her name and conduct any follow-up calls in the same professional manner.

Be Prompt

Claims adjusters may work on dozens of cases at once. At any given time, they’re at the mercy of multiple clients who can’t or won’t provide essential information about their claims. Set yourself apart from your fellow policyholders by being as forthcoming and prompt as possible. Answer each of your claims adjuster’s questions in full and provide him or her with all pertinent visual and written documentation about your claim. Such documentation could include photos of damage, police reports, repair invoices and medical bills.

Ask for a Second Look

If you have a classic car or antique structural elements in your home, your insurance adjuster may underestimate the size of the payout to which you’re entitled. Be sure to keep records that clearly state the value of the damaged items. It’s a good idea to get valuable older vehicles or antique rooms appraised from time to time. In fact, you’re legally entitled to a “second opinion” from an independent appraiser in the event that your adjuster refuses to recalculate his or her payout offer.

Use the “Fudge Factor” to Your Advantage

Claims department managers often pressure already-overworked insurance adjusters to reach settlements quickly. In fact, some adjusters may have a monthly quota of cases that they’re expected to settle. To speed this process along, most insurance companies give their claims adjusters some leeway to negotiate with claimants. For some auto insurance providers, this “fudge factor” can be $500 or more. At many providers of homeowner’s insurance, it can be even higher. Unless your claim is quite small, don’t accept your adjuster’s first offer.

The insurance payout that you deserve won’t get bigger on its own. Every insurance company has a fiduciary responsibility to its employees and shareholders to maximize its income and minimize its payouts. In practice, this means that your adjuster is unlikely to issue a fair payout offer when you first make your claim. If you want to maximize your claim, you’ll need to use every trick in the book.