Money Management

Pet insurers aren’t required to cover pre-existing conditions the same way human insurers are. Read on to learn more. 

Changes to human health insurance coverage have made it so insurance companies generally cannot deny policies to people with pre-existing conditions, nor can they deny payments for covered treatment. But pet insurance hasn’t quite caught up to human health insurance in that regard.

For the most part, if your pet has a pre-existing condition, that condition will not be covered by your pet insurance policy. But that doesn’t mean your pet won’t qualify for coverage at all.

It’s not a total deal-breaker

Pet insurance companies are not required to pay to treat pre-existing conditions. If you adopt a dog with a known heart condition, for example, and it flares up after you buy your insurance, your policy generally will not pay for medications or surgeries needed to address that issue. But that doesn’t mean having a heart condition will render your dog ineligible for coverage.

In that case, what will generally happen is that your dog’s heart condition will be noted on your policy and excluded from coverage. But let’s say your dog develops another issue later on that’s completely unrelated to their heart condition, like a kidney stone. In that case, your pet insurance policy might very well pick up the tab for kidney stone treatment or surgery, since that wasn’t a pre-existing condition at the time you put your policy in place.

Of course, you may be wondering how your pet insurance company will know about pre-existing conditions if you don’t disclose them. The answer is that they’ll likely request a copy of your pet’s medical records to confirm you’re telling the truth. So if your pet has a pre-existing condition, don’t lie about it.

You need savings if your pet has known health issues

It’s important to have money in your savings account as a pet owner in case you end up needing to pay for medical care. But it’s especially important to have a pet emergency fund if your pet has a pre-existing condition you know your insurance policy won’t cover.

If you’re not sure how much money to set aside for pet care emergencies, one thing you can do is ask your vet what costs you might be on the hook for should your pet’s condition flare up or require treatment. Or, do your own research.

As an example, large breed dogs can suffer from hip dysplasia. Your pet insurance company may not pay for treatment of that if it’s noted as a pre-existing condition for your dog. But the cost to fix the issue via surgery can average $3,500 to $7,000. Ouch. So in that situation, what you’d possibly want to do is aim to save up $7,000 in case that’s a procedure your dog ends up needing.

Remember, too, that while pet insurance might cover treatment for a condition that’s not pre-existing, it may not cover your expenses entirely. So either way, it’s a good idea to maintain a decent level of savings for pet care — even if your pet has no pre-existing conditions at all when you put your insurance policy in place.

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Term life insurance won’t last forever. Read on to see what happens once that term comes to an end. 

There’s a reason so many people are advised to buy term life insurance rather than whole life insurance. Whole life insurance, which covers you indefinitely, can be far more expensive, so much so that you might struggle to keep up with your premiums and risk having your coverage lapse.

Term life insurance tends to be far more affordable, but it will run out on you after a period of time. And once that happens, not only will you not have any coverage, but you also won’t be entitled to any sort of payday from your policy.

An option with benefits and drawbacks

You can commonly save a lot of money on life insurance by opting for a term life policy. But unlike whole life insurance, term life insurance does not accumulate a cash value.

So let’s say you buy a $500,000, 20-year term life insurance and you don’t pass away during the 20-year period your coverage is in place. Despite having paid premiums for two decades, you and your loved ones won’t see a dime once that policy expires.

What to do once your term life insurance runs out

If your term life insurance policy runs out on you and you feel you need continued coverage, you’ll generally have to apply for a new term life policy. And in that case, you should expect to pay higher premiums for the same amount of coverage, since you’re applying at a much older age than when you first applied.

That said, you may not need a new insurance policy once your term life coverage runs out. Let’s say you bought a 20-year term life insurance policy when your kids were young to protect your family in case something happened to you while they were still minors. If, at this point, your kids are in their 20s and working, and your spouse is still working as well, you may not have a need for life insurance any longer. And in that case, you might as well save your money.

If you decide to get a new term life insurance policy, you may also be able to buy less coverage. For example, maybe you bought a $500,000 policy when your kids were young. At this point, a $100,000 policy may suffice.

You may also decide that you want to convert your term life insurance policy to whole or permanent life insurance so you don’t have to worry about your coverage running out on you again. Policygenius says many term life policies offer this option, and the benefit is that you won’t have to undergo another medical exam.

However, permanent life insurance tends to be five to 15 times more expensive than life term insurance. So you’ll need to think about whether you can afford those premiums. In fact, you may decide it makes more sense to just pump more money into your savings account than pay for another life insurance policy once your term life coverage runs out.

All told, term life insurance doesn’t last forever — hence its name. You won’t get money out of a term life policy if you don’t pass away during your coverage period. However, staying alive is something to be grateful for, so don’t be too upset if your term life coverage doesn’t result in a payday.

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A mortgage is just the start of the monthly costs you’ll have to deal with as a homeowner. Take a look at a few key reasons to look beyond your home loan. 

When you decide if you can buy a home or not, you must consider the big picture. Obviously, you’ll want to be sure you can afford your monthly mortgage payments. But your principal and interest are not the only expenses to consider.

In fact, it’s vital to look beyond your mortgage costs and consider a host of other expenses including property taxes, insurance, HOA fees, utility costs, and ongoing maintenance and repair costs.

Here’s why thinking about all of these expenses is so important when you decide if a home you’re interested in buying is within your budget.

1. Your mortgage payment is just the start of the costs you’ll incur

While taking on a new mortgage payment is a big financial commitment and it’s natural to focus on this big expense, you can’t forget to think about other new costs you’ll face, as those can sometimes add up to be as much or more than your mortgage.

The median property tax bill in the U.S. comes in at around $2,971 annually, but is much higher in some states than others. In New Jersey, for example, the median real estate tax paid is a whopping $8,928. The mean annual spending on home maintenance also comes in at $2,335 while the average cost of home insurance offering $300,000 dwelling coverage is about $1,899 per year.

You need to take all of these costs into account because you’ll have to pay them — they aren’t optional and the consequences of not covering them could be dire. You’ll also potentially have several other new expenses, like higher utilities, lawn-care costs, gutter cleaning, and more depending on exactly what your new home requires.

2. You could face ongoing financial struggles if you have unplanned expenses

If you focus only on your mortgage payment and are taken by surprise when it comes to other home ownership costs, this could be a constant source of financial stress for you. Unplanned maintenance and repair expenses, or even higher utility costs you didn’t consider, could mean you’re forced to make other big cuts in your budget that leave you feeling deprived.

Other financial goals could suffer, too, like saving for retirement. If you’re unable to invest enough for your future, your decision not to consider all housing costs could keep making life harder for you for decades to come.

3. Some of the other costs of homeownership will stay with you for life

Finally, while your mortgage will eventually be paid off, some of these other costs of homeownership — like home maintenance, HOA fees, and property taxes — are going to be with you for the entire time you live in the house.

If these costs are high, this could present a big financial burden — especially when you eventually retire and have to decide whether to move or keep paying high property taxes, home maintenance expenses, or HOA fees on your fixed income after paychecks stop coming.

By making sure you do take these other expenses into account, though, you can ensure your house is affordable both now and in the future so you won’t end up regretting your purchase.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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With the rise of public transportation, biking, and coworking spaces, it’s now easier than ever to get by without owning a vehicle in these cities. Learn more. 

Being a car owner is not a requirement for living in a city. In fact, many people choose to live in cities without a car due to the high costs of parking, gas, and maintenance. With car prices at their peak, car loans have become increasingly unaffordable. Fortunately, there are cities across the world that offer great public transportation options, bike-share programs, and walkability. Whether you’re looking to save money or reduce your carbon footprint, here are the best cities to live in without a car.

Top cities to live without a car

CoWorking Cafe conducted a thorough analysis of 331 cities in the U.S., examining various factors related to public transportation and the number of citizens who utilize modes of travel such as cycling, walking, public transportation or taxicabs, and motorcycles.

It also analyzed the density of the train and biking infrastructure for each city, as well as the average cost pertaining to adult fare, among other key metrics. Here are the top seven cities:

1. Boston, Massachusetts

Boston has consistently ranked as the top city in the nation for living without a car. With excellent public transportation and high walkability, it’s easy for residents to move around the city. Over 28% of Boston’s population uses public transit, which is the third-largest share among the 331 cities analyzed.

The city has a high density of stations, with most residents living near a bus, metro, or train stop. Additionally, the low number of breakdowns and mechanical failures among public transit vehicles makes Boston’s transportation system reliable and convenient.

2. Newark, New Jersey

Newark’s excellent public transportation system is a popular alternative to commuting by car due to its status as a major transportation hub and the highest station density, with almost 10 stations per square mile.

Newark has one of the busiest airports in the nation with seamless connections to New York City. Although one-fifth of the population utilizes metros, buses, and trains, it may be surprising to learn that a significant portion of residents still rely on other methods of transportation.

3. New York City, New York

Almost half of New Yorkers use some sort of means of public transportation to commute within and around the city — the highest share among 331 U.S. cities. New York City is ranked third in terms of station density with more than two of them available per square mile and a whopping 16,000 total number of stops.

However, one setback that residents face is the relatively high price of public transportation, with an average adult fare of $4.36, which is the fourth highest among all the cities analyzed.

4. Washington, D.C.

Washington, D.C. ranks fifth in the nation for public transportation usage at 27%. Additionally, the city is among the top 10 with a large population that uses walking or biking as their primary mode of transportation.

The working population also benefits from the city’s high density of coworking spaces, with more than 12 per 100,000 residents. Plus, the government institutions in Washington, D.C. are recognized for their widely adopted remote work policies.

5. San Francisco, California

Commuting within San Francisco is hassle free whether by bus, train, bike, or foot. The city ranks fourth in the United States for the extensive use of public transportation methods, with almost 28% of its population utilizing its complex infrastructure.

Additionally, San Francisco takes fifth place in taxi and motorcycle usage, with almost 4% of the population relying on them. For those who prefer cycling, the city has the highest bike lane density in the nation.

6. Philadelphia, Pennsylvania

With a reliable public transportation infrastructure, Philadelphia has earned the sixth spot in the list of top best places to live without a personal car. This is reflected by the high number of residents (more than 24% of the total population) who choose it for their daily commutes.

The city’s rank has a high density of bus, metro, and train stations, placing it fourth in the country in this category with more than two stations per square mile.

7. Seattle, Washington

Seattle residents have a favorable alternative to driving: public transportation, which boasts nearly two stations per square mile. This frequent transportation option enables commuters to move efficiently and reach their destination with ease.

Additionally, Seattle’s expansive park system may account for the city’s high number of pedestrians who opt to walk to work.

Living in a city without a car can be liberating, environmentally-friendly, and save you money. If you’re considering going car free or just want to make a change for the better, these cities offer a wide range of alternative travel options. Ultimately, living without a car doesn’t have to mean missing out on life opportunities — it can actually help you uncover new ones!

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My emergency money is in a high-yield savings account so it is accessible if I need it — but not too accessible. Find out more. 

Maintaining an emergency fund is important to me. I don’t want to put surprise expenses on a credit card if something unexpected happens. To ensure I don’t find myself in that position, I have an emergency fund with six months of living expenses.

My emergency fund is not in my regular checking account. Instead, I keep the money in a high-yield savings account. There are three reasons why I have made that choice.

My money is safe

The most important reason why I keep my money in a high-yield savings account is because I can count on the money to be safe. My account balance is well below the FDIC-insured limit of $250,000 since I am only keeping the money I need in there for emergencies. This means there is essentially no risk of loss, since if the bank fails, I’d still get my money back.

If I were to invest my money, I’d risk losing some of it if my investments performed poorly. I might also be reluctant to take out my money during a stock market downturn, as I wouldn’t want to “sell low” when the prices of my investments were down. Unfortunately, a downturn might be the exact time I would need the money if the economy went south and my income and investments both took a hit.

I can’t take a chance on not having all the money I saved for emergencies, or not being able to access it, so the money stays in my high-yield savings account where it’s ready in case something goes wrong.

My money is accessible — but not too accessible

I want to keep my emergency money in a savings account where I can access it — but I don’t want the funds to be too accessible so I’d be tempted to use them for expenses that weren’t truly an emergency.

By keeping my emergency savings in a high-yield savings account that is separate from the bank where I have my checking account, I have to jump through some added hoops to get ahold of my emergency money. It only takes a little extra work — namely, signing into my account and transferring the funds over — but these extra steps are enough to give me time to make sure I’m really thinking through whether the expense is a true emergency.

I can earn a little bit of interest on my emergency funds

Finally, I keep my money in a high-yield savings account because I figure I may as well earn as much interest as I can on the thousands of dollars I have sitting in the account. My account is currently paying me about 4% APY, which means for each $1,000 I have in the account, I earn about $40 in interest a year. That’s not a lot of money, but it’s not nothing — and it’s better than leaving the money in a traditional savings account that would pay much less.

For all of these reasons, I believe a high-yield savings account is the best place for emergency money. Anyone who isn’t sure where their emergency fund should be may want to research their savings account options to find one that meets their needs.

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Today’s 4.3% I bond is a better investment than last year’s 9.6%. Read on to learn why. 

Are you thinking about investing in I bonds, but have heard that their rates have dropped from 9.6% to 4.3%? While this may seem like a huge drop, investors who buy I bonds today will do better in the long run. Here’s why.

How do I bonds work?

I bonds are 30-year savings bonds issued by the U.S. Department of Treasury. With I bonds, you earn interest based on a combination of a fixed rate and an inflation rate calculated twice a year. The fixed interest rate remains constant, while the variable rate changes to match the current inflation rate.

Both the fixed rate and variable rate are updated each May 1 and Nov. 1. Once you purchase an I bond, the fixed rate you received never changes. The variable rate, however, changes every six months based on the Consumer Price Index (CPI), which is the most widely used measure of inflation.

These bonds can only be purchased through the Treasury Direct website. Unlike other bonds, you can’t buy or sell I bonds through a typical brokerage firm. Purchase prices start at $25, and you can buy in any amount above that up to $10,000 per person, per year.

You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than five years, you lose the last three months of interest.

What are the benefits of I bonds?

I bonds offer a unique way to protect the purchasing power of your money against inflation. This means your investment will maintain its purchasing power over time. They are also backed by the U.S. government, ensuring that they’re a low-risk investment.

I bonds are guaranteed to never lose value, which makes them an ideal alternative to stocks or riskier assets. They can also be purchased in small amounts, starting at $25, which makes them accessible to virtually anyone.

I bonds earn interest for up to 30 years, and the interest is exempt from state and local taxes. The interest for federal income taxes are tax-deferred until the bond is redeemed.

Why today’s 4.3% I bond is better than last year’s 9.6%

But why is the 4.3% I bond a better investment choice than last year’s 9.6% bond? The answer lies in the fixed interest rate. While the 9.6% bond may seem attractive at first glance, it has a 0% fixed interest rate, which means that buyers will only earn interest based on inflation rates.

As of May 1, the fixed rate on I bonds was set at 0.9%, reaching its highest level in 15 years. This is an increase when compared to the preceding Nov. 1, 2022 reset, which was 0.4% and 0%, from May 2020 to October 2022.

With the current variable interest rate at 3.4%, those who purchased an I bond at 9.6% last year will see a significant drop in returns. However, buying an I bond today guarantees a 0.9% fixed rate on top of the 3.4%, resulting in a 4.3% return for the next six months.

Those who bought the 9.6% will only be getting the variable interest for the next 29 years. However, those who purchase an I bond today are guaranteed to always get a yield that is 0.9% higher than those who bought a year ago.

Investing in I bonds can be a smart way to earn extra income while protecting your money against inflation. The current fixed rate of 0.9% is the highest in the past 15 years, and it makes investing in these bonds a much better option than last year’s I bonds with a fixed rate of 0.0%. Make sure to stay informed about the current fixed rates on I bonds to make the best investment decision. When comparing bonds, don’t just compare the interest rates — it’s essential to know how bonds work and find one that best fits your needs.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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