Question

1-Explain an upside down car loan. Is this good or bad?

2- A life insurance policy is different in one essential respect from other insurance policies. Explain. (Do not merely define life insurance. Also, the answer is not that the insurance is paid to someone else. You might have car insurance that pays someone else because of your accident

3- When must you receive your credit card bill as required by federal law?

Answer 1

1)Upside down car loan is when you owe more than your vehicle is worth, you are upside-down, or underwater, on your car loan. This doesn’t immediately spell trouble, but it can result in less financial flexibility and security. They owe more than the car is worth as soon as they sign the contract.

Definitely, it is bad, as you face two major risks: If you get into an accident, your insurance will generally cover the damage only up to the value of the car — not how much you owe — and, if your situation changes and you need to sell your car, you’ll do so at a loss. The difference between the car’s value and the loan amount is your negative equity.

2) There’s a definite comfort in knowing that even if your health takes an unexpected turn, you and your family have a financial safety net. When money’s tight, though, paying for both a life insurance policy and healthcare coverage each month can get tricky.

Each type of insurance, however, serves a completely different purpose and offers different coverage. Life insurance pays out a death benefit to your beneficiaries in the case of premature death. The purpose is that the death benefit is sufficient to replace future income lost, as well as cover expenses and obligations outstanding such as funeral costs, medical expenses, and other debts - or to fund college savings accounts or spousal retirement. This gives the family continuity of their finances so they do not struggle after death.

3)You must receive your credit card bill as required by federal law:

Statements must be mailed or delivered to a consumer at least 21 days before the due date. If you did not receive your statement, there is a federal law that protects you, but make sure you know and follow the rules.

If a due date falls on a holiday or weekend when payments are not received or accepted by mail, the creditor cannot count a payment late if it is received the next business day. Payments received by 5 p.m. must be credited the same day. If a card issuer accepts payments at branch locations, they must be credited the day they are received at the branch. If your credit card carries a grace period, your statement must be mailed or delivered to you at least 21 days before the due date. Floating due dates, or due dates that change from time to time, are no longer allowed.