Options are similar to futures, where two parties agree to a transaction at a future date for a set price. The difference is that futures are obligations to follow through on the transaction, whereas options are the right to participate in the transaction. In both cases, the goal is to generate short-term income. Option contract
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Medicaid Basics Medicaid and CHIP (the Children’s Health Insurance Program) exist to ensure health coverage for low-income Americans. CHIP is designed to cover children of families who have incomes too high to qualify for Medicaid but too low to afford private coverage. Many people think of Medicaid as being for younger Americans and Medicare for
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If you’ve decided to work from home and/or start a small business, and you’ve converted that spare bedroom into a home office, you may be wondering if your current homeowner’s insurance will automatically protect you in case your office equipment is stolen or destroyed. You may also want to know if you’ll be covered for
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Commodities are commercial goods that are considered interchangeable with other goods of the same kind and quality, and traded in that fashion. When most people think of commodities, they may think of traditional commodities such as wheat, cattle, heating oil or gold. Today, this definition can also include financial instruments such as currencies or indices,
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Futures are a type of financial contract where two parties agree to a future transaction at an agreed-upon price. That transaction could be in commodities, currencies, stock indexes or other goods. Futures contracts contain all the pertinent transaction details — quantity, specifications, price per unit and intended delivery method. However, many futures contracts do not
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Credit insurance is a form of insurance on a specific debt. It could be a home or car loan, a credit card balance, or any other form of debt. By purchasing credit insurance, you are guaranteeing that the debt will be at least partially paid under the condition the specific policy was written for (death,
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Lending institutions profit from helping businesses thrive. If you are concerned about your business simply surviving, or if there are indications of fundamental flaws in the business model, there may be too much risk for any outside investor to take on. Before you approach any financial institution for a business loan, there are several key
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An annuity is an insurance product and retirement planning tool that establishes a future income stream based on a current investment. Most annuities are sold through insurance companies, but some are supplied via direct sale from investment companies such as Vanguard and T. Rowe Price. You have two choices regarding the style of annuity: Deferred
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You may think you have all the insurance you could possibly need to cover your healthcare expenses, but are you certain about that? Do your policies cover every catastrophic life event that could befall you? Check your current insurance policies — you will be surprised to discover what is not covered! If that’s the case,
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If you own a small business or intend to buy or start one, you will probably be borrowing money at some point — and possibly more than once. You may need money for startup costs, expansion, cash-flow management, disaster recovery, or any number of uses requiring operating funds and/or capital investment. Unless you have a
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The National Fire Protection Association reports that there were 370,000 home fires that fire departments responded to in 2011, resulting in almost 14,000 injuries and 2,500 deaths, along with nearly $7 billion in direct damage. These NFPA statistics show that fires occur with sufficient frequency that it is a wise decision to carry fire insurance
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The Federal Deposit Insurance Corporation (FDIC) is a U.S. Government regulatory agency that has three primary purposes: Insure bank deposits of member banks; Assist with banking regulations; Deal with failing banks. Let’s look at each of these jobs in a little more detail. Deposit Insurance The FDIC does insure bank deposits in
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Investors have long valued Certificates of Deposits (CDs) as a low-risk savings tool. Most types of CDs are straightforward; the more you deposit and the longer the term, the higher the interest rate and return. In addition, many come with insurance from the FDIC. In today’s investment environment, historically low interest rates have made CDs
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Earthquake coverage can usually be added to a home or business policy and is not normally purchased as a separate policy. The standard homeowner’s policy has an exclusion for “Earth Movement”, which includes earthquakes, landslides, mudflows, sinkholes, and more. What is an earthquake? A sudden and violent shaking of the ground, sometimes causing great destruction,
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Supplemental insurance is an additional form of insurance that is designed to cover expenses that standard insurance available in your state may not include. This form of insurance often covers expenses for health care that other forms of insurance such as Medicare, Medicaid or a company healthcare policy may not cover. Standard health insurance policies
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Stock options were formerly considered best left to stock trading professionals. But these days, trading stock options is almost as easy as buying and selling shares of stocks or mutual funds. Stock options are even allowed in self-directed Individual Retirement Accounts (IRA’s). Even as options have become easier to access and trade, they may still
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In less than thirty seconds, a small fire can grow completely out of control and turn into a major fire that spreads throughout the house. Within minutes, your home can be filled with smoke. Preventing fires is the easiest way to avoid a potentially dangerous situation. While in the kitchen, follow these safety precautions: Unplug
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The National Flood Insurance Program is a government program run by the Federal Emergency Management Agency (FEMA). If your home or business is located within a 100-year flood zone as determined by FEMA, you will be required to purchase flood insurance to obtain a mortgage or business loan. Flood insurance must be purchased as a
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Scheduling Items on your Homeowners policy The term “Homeowners Insurance” is used for insurance policies that insure a person’s primary, owner-occupied residence. This can be a single family home, a multi-family (up to 4 apartments) home, an apartment or condominium. Each residence is insured through a different type of “homeowners” policy. Each policy covers personal
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CD or Savings Account: One, Both, or Neither? Finding an investment product that best meets your unique needs can be confusing and frustrating. There are so many out there, including mutual funds, money markets, stocks, bonds, and annuities, to name a few. Books have been written comparing and contrasting each one of these. This article
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