UFREETV.COM

                  UFREETV - FINANCIAL SECTION
                     INFORMATION TO HELP YOU MAKE CRITICAL FINANCIAL DECISIONS

                                                                          * * *

WHAT IS THE DIFFERENCE BETWEEN A REVERSE MORTGAGE AND A HOME EQUITY LOAN?
Difference Between a Reverse Mortgage and a Home Equity Loan
Generally a home equity loan, a second mortgage, or a home equity line of credit (HELOC) have strict requirements for income and creditworthiness. Also, with other traditional loans the homeowner must still make monthly payments to repay the loans. A reverse mortgage generally has no credit score requirements and instead of making monthly mortgage payments, the homeowner receives cash from the lender.

With a reverse mortgage the amount that can be borrowed is determined by an FHA formula that considers age, the current interest rate, and the appraised value of the home. Typically, the more valuable the home, the higher the loan amount will be, subject to lending limits.

A reverse mortgage gives over part of your homes equity to a lender and they in turn give you a monthly payment (reverse of a normal mortgage) but you need to either own the home completely or have a very low balance and it is only for people over the age of 62. You don't have to pay the money back the balance you received is simply given back to the bank when the home is sold or property rights transferred. A equity loan is basically a second mortgage on a home, the property is used as collateral the bank gives you a certain amount either as a lump sum or line of credit and you make regular monthly payments.

To summarize the key differences, with traditional loans the homeowner is still required to make monthly payments, but with a reverse mortgage the loan is typically not due as long as the homeowner lives in the home as their primary residence and continues to meet all loan obligations. With a reverse mortgage no monthly mortgage payments are required, however the homeowner is still responsible for property taxes, insurance, and maintenance.

A reverse mortgage is a form of equity release (or lifetime mortgage). It is a loan available to home owners of retirement age, enabling them to access a portion of their home's equity. The home owners can draw the mortgage principal in a lump sum, by receiving monthly payments over a specified term or over their (joint) lifetimes, as a revolving line of credit, or some combination thereof.

In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases by the amount of the principal included in the payment, and when the mortgage has been paid in full the property is released from the mortgage. In a reverse mortgage, the home owner is under no obligation to make payments, but is free to do so with no pre-payment penalties. The line of credit portion operates like a revolving credit line, so a payment in reduction of a line of credit increases the available credit by the same amount. Interest that accrues is added to the mortgage balance.

Title to the property remains in the name of the homeowners, to be disposed of as they wish, encumbered only by the amount owing under the mortgage.

If a property has increased in value after a reverse mortgage is taken out, it is possible to acquire a second (or third) reverse mortgage over the increased equity in the home in some areas. However most lenders do not like to take a second or third lien position behind a reverse mortgage because its balance increases with time. It is rare to find reverse mortgages with subordinate liens behind them as a result. A reverse mortgage may be refinanced if enough equity is present in the home, and in some cases may qualify for a streamline refinance if the interest rate is reduced.

A reverse mortgage line is often recorded at a higher dollar amount than the amount of money actually disbursed at the loan closing. This recorded lien is at times misunderstood by some borrowers as being the payoff amount of the mortgage. The recorded lien works in similar fashion to a home equity line of credit where the lien represents the maximum lending limit, but the payoff is calculated based on actual disbursements plus interest owing.

                                                                          * * *

WHAT YOU SHOULD KNOW ABOUT TAXES:
In the United States, a tax is imposed on income by the federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income.

Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels.

Taxable income is total income less allowable deductions. Income is broadly defined. Most business expenses are deductible. Individuals may also deduct a personal allowance (exemption) and certain personal expenses, including home mortgage interest, state taxes, contributions to charity, and some other items. Some deductions are subject to limits.

Capital gains are taxable, and capital losses reduce taxable income only to the extent of gains (plus, in certain cases, $3,000 or $1,500 of ordinary income). Individuals currently pay a lower rate of tax on capital gains and certain corporate dividends.

Taxpayers generally must self assess income tax by filing tax returns. Advance payments of tax are required in the form of withholding tax or estimated tax payments. Taxes are determined separately by each jurisdiction imposing tax. Due dates and other administrative procedures vary by jurisdiction. April 15 following the tax year is the last day for individuals to file tax returns for federal and many state and local returns. Tax as determined by the taxpayer may be adjusted by the taxing jurisdiction.

A tax is imposed on net taxable income in the United States by the federal, most state, and some local governments.[2] Income tax is imposed on individuals, corporations, estates, and trusts. The definition of net taxable income for most sub-federal jurisdictions mostly follows the federal definition.

The rate of tax at the federal level is graduated; that is, the tax rates of higher amounts of income are higher than on lower amounts. The lower rate on lower income was phased out at higher incomes prior to 2010.[clarification needed] Some states and localities impose an income tax at a graduated rate, and some at a flat rate on all taxable income. federal tax rates in 2009 varied from 10% to 35%.

From 2003 through 2011, individuals were eligible for a reduced rate of federal income tax on capital gains and qualifying dividends. The tax rate and some deductions are different for individuals depending on filing status. Married individuals may compute tax as a couple or separately. Single individuals may be eligible for reduced tax rates if they are head of a household in which they live with a dependent.

Taxable income: is defined in a comprehensive manner in the Internal Revenue Code and regulations[3] issued by the Department of Treasury and the Internal Revenue Service. Taxable income is gross income as adjusted minus tax deductions. Most states and localities follow this definition at least in part, though some make adjustments to determine income taxed in that jurisdiction. Taxable income for a company or business may not be the same as its book income.

Gross income: includes all income earned or received from whatever source. This includes salaries and wages, tips, pensions, fees earned for services, price of goods sold, other business income, gains on sale of other property, rents received, interest and dividends received, alimony received, proceeds from selling crops, and many other types of income. Some income, however, is exempt from income tax. This includes interest on municipal bonds.

Adjustments: (usually reductions) to gross income of individuals are made for alimony paid, contributions to many types of retirement or health savings plans, certain student loan interest, half of self-employment tax, and a few other items. The cost of goods sold in a business is a direct reduction of gross income.

Business deductions: Taxable income of all taxpayers is reduced by tax deductions for expenses related to their business. These include salaries, rent, and other business expenses paid or accrued, as well as allowances for depreciation. The deduction of expenses may result in a loss. Generally, such loss can reduce other taxable income, subject to some limits.

Personal deductions: Individuals are allowed several nonbusiness deductions. A flat amount per person is allowed as a deduction for personal exemptions. For 2012 this amount is $3,800. Taxpayers are allowed one such deduction for themselves and one for each person they support.

Standard deduction: In addition, individuals get a deduction from taxable income for certain personal expenses. Alternatively, the individual may claim a standard deduction. For 2012, the standard deduction is $5,950 for single individuals, $11,900 for a married couple, and $8,700 for a head of household.

Itemized deductions: Those who choose to claim actual itemized deductions may deduct the following, subject to many conditions and limitations:
Medical expenses in excess of 7.5% of adjusted gross income,
State, local, and foreign taxes,
Home mortgage interest,
Contributions to charities,
Losses on nonbusiness property due to casualty, and
Deductions for expenses incurred in the production of income in excess of 2% of adjusted gross income.
Capital gains: and qualified dividends may be taxed as part of taxable income. However, the tax is limited to a lower tax rate. Capital gains include gains on selling stocks and bonds, real estate, and other capital assets. The gain is the excess of the proceeds over the adjusted basis (cost less depreciation deductions allowed) of the property. This limit on tax also applies to dividends from U.S. corporations and many foreign corporations. There are limits on how much net capital loss may reduce other taxable income.

Tax credits: All taxpayers are allowed a tax credit for foreign taxes and for a percentage of certain types of business expenses. Individuals are also allowed credits related to education expenses, retirement savings, child care expenses, and a credit for each child. Each of the credits is subject to specific rules and limitations. Some credits are treated as refundable payments.

Alternative Minimum Tax: All taxpayers are also subject to the Alternative Minimum Tax if their income exceeds certain exclusion amounts. This tax applies only if it exceeds regular income tax, and is reduced by some credits.

Tax returns: Individuals must file income tax returns in each year their income exceeds the standard deduction plus one personal exemption, or if any tax is due. Other taxpayers must file income tax returns each year. These returns may be filed electronically. Generally, an individual's tax return covers the calendar year. Corporations may elect a different tax year. Most states and localities follow the federal tax year, and require separate returns.

Tax payment: Taxpayers must pay income tax due without waiting for an assessment. Many taxpayers are subject to withholding taxes when they receive income. To the extent withholding taxes do not cover all taxes due, all taxpayers must make estimated tax payments.

Tax penalties: Failing to make payments on time, or failing to file returns, can result in substantial penalties. Certain intentional failures may result in jail time.

Tax returns may be examined and adjusted by tax authorities. Taxpayers have rights to appeal any change to tax, and these rights vary by jurisdiction. Taxpayers may also go to court to contest tax changes. Tax authorities may not make changes after a certain period of time (generally 3 years).

                                                                          * * *

CREDIT CARD 101
The Credit card - You can use a credit card to buy things and pay for them over time. But remember, buying with credit is a loan - you have to pay the money back. And some issuers charge an annual fee for their cards. Some credit card issuers also provide “courtesy” checks to their customers. You can use these checks in place of your card, but they’re not a gift - they’re also a loan that you must pay back. And if you don’t pay your bill on time or in full when it’s due, you will owe a finance charge - the dollar amount you pay to use credit. The finance charge depends in part on your outstanding balance and the annual percentage rate (APR).

Charge card - If you use a charge card, you must pay the balance in full each time you get your statement.

Debit card - This card allows you to make purchases in real-time by accessing the money in your checking or savings account electronically.

The Fine Print
When applying for credit cards, it’s important to shop around. Fees, interest rates, finance charges, and benefits can vary greatly. And, in some cases, credit cards might seem like great deals until you read the fine print and disclosures. When you’re trying to find the credit card that’s right for you, look at the:

Annual percentage rate (APR) - The APR is a measure of the cost of credit, expressed as a yearly interest rate. It must be disclosed before your account can be activated, and it must appear on your account statements. The card issuer also must disclose the “periodic rate” - the rate applied to your outstanding balance to figure the finance charge for each billing period.

Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index’s performance, these plans are called “variable rate” programs. Rate changes raise or lower the finance charge on your account. If you’re considering a variable rate card, the issuer also must tell you that the rate may change and how the rate is determined.

Before you become obligated on the account, you also must receive information about any limits on how much and how often your rate may change.

Grace period - The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have 25 days from the statement date, provided you paid your previous balance in full by the due date. The statement date is on the bill.

The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away. If your card includes a grace period, the issuer must mail your bill at least 14 days before the due date so you’ll have enough time to pay.

Annual fees - Many issuers charge annual membership or participation fees.Some card issuers assess the fee in monthly installments.

Transaction fees and other charges - Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee if you use the card - or if you don't.

Customer service - Customer service is something most people don’t consider, or appreciate, until there’s a problem. Look for a 24-hour toll-free telephone number.

Unauthorized charges - If your card is used without your permission, you can be held responsible for up to $50 per card. If you report the loss before the card is used, you can’t be held responsible for any unauthorized charges. To minimize your liability, report the loss as soon as possible. Some issuers have 24-hour toll-free telephone numbers to accept emergency information. It’s a good idea to follow-up with a letter to the issuer - include your account number, the date you noticed your card missing, and the date you reported the loss.Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.

CREDIT REPORT FACTS:
Since the slightest financial mistake can affect how much credit you qualify for, and the interest rates you will have to pay on your loan, times like these should make you want to monitor your credit more closely. And there are a number of companies out there that offer this service. You can get your credit report from - Equifax®, Experian® and TransUnion®.

Here are some examples of the information credit monitoring services provide that you won’t get on a free credit report:
Making sense of reports. Each of the three major credit reporting agencies issue reports in different ways. They can be difficult to understand if you don't have a lot of experience reading credit reports. A monitoring service can help you synthesize that information in a way that's easy to read and decipher.

Access to all agencies in a single report. Not only do each of the major reporting agencies not compile reports in the same way, they also don't necessarily share data. So, while you might not have a blemish on one agency's report, one may appear in a report from a different agency. A credit monitoring service allows you access to reports based on data from all three agencies, so you can check them all for discrepancies. Because of the lack of formatting in the free credit reports, it can be difficult to impossible to compare and contrast the credit reports you receive from the different agencies.

Daily monitoring. Whenever you request a free report, the information you get back reflects your financial situation as it stands at the time of your request. So, where a one-time free credit report provides a snapshot in time of your credit history, credit monitoring gives you a more complete, moving picture. As you work toward improving your credit rating in order to make a major purchase, you can keep track of your progress and apply for financing when you feel most comfortable.

Alerts. In addition to giving you daily updates on your credit, you can and should pick a credit monitoring service that will alert you if certain changes are detected in your credit report. That way, if you become a victim of identity theft or other related fraud, you have the ability to deal with it immediately and keep your credit in good standing.

The bottom line is that by spending a few dollars to monitor your credit, you may end up saving yourself a significant amount of money in the long run because you'll be able to get a better interest rate on a mortgage or large loan. You also will have the added benefit of knowing when your credit has been compromised.

                                                                          * * *

DO YOU KNOW THE THREE C'S OF CREDIT EVALUATION?
CAPACITY
This refers to the amount of debt you can realistically pay given your income. Creditors look at how long you’ve been on your job, your income, and the likelihood that it will increase over time. They also look to see that you’re in a stable job or at least a stable industry. So when you fill out a credit application, make your job sound as stable and high-level as you honestly can. Are you a secretary, or are you an “executive assistant” or “office manager”? Present yourself in the best possible light, but don’t mislead or lie. Because employment history and income may not be included in your credit report, creditors may get that information from you, your records, and your employer.

Creditors do use your credit report to examine your existing credit relationships, such as credit cards, bank loans, and mortgages. They want to know your credit limits (you may be denied additional credit if you already have a lot of open credit lines), your current credit balances, how long you’ve had each account, and your payment history-whether you pay late or on time.

COLLATERAL
Creditors like to see that you have assets they can take if you don’t pay your debt. Owning a home or liquid assets such as a mutual fund may offer considerable comfort to a creditor reviewing an application. This is especially true if your credit report has negative notations in it, such as late payments. A credit report won’t tell a creditor what assets you own. Of course, if your mortgage payments are reported, the creditor will know that you own a home and how much you owe on the mortgage.

CHARACTER
Creditors develop a feeling of your financial character through objective factors that show stability. These include the length of your residency, the length of your employment, whether you rent or own your home (you’re more likely to stay put if you own), and whether you have checking and savings accounts. Credit reports will tell creditors how long you have maintained credit accounts and how long you have lived at your current address, and they may have employment information. Some specialty credit reporting agencies include information on whether you have bounced checks.

                                                                          * * *

UFREETV.COM™ encourages you to learn all the details of your financial contracts before signing any documents or making any decisions.

ESPN

AETNA HEALTH INSURANCE
A COMPANY PROFILE

Aetna, Inc. is one of the largest health insurance companies in the United States. It provides health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, disability and long term care and medical management capabilities. Aetna provides benefits through employers in all 50 states, with products and services targeted specifically to small, midsized and large multistate national employers. Aetna, Inc. is a publicly traded holding company that conducts its insurance operations through a fleet of more than 35 subsidiaries. Aetna traces its history to a company (Aetna Insurance Company) founded in 1850. The name was inspired by Mt. Etna, a volcano in Sicily which was active at the time. The name was intended to inspire respect for the company’s strength. The holding company structure was adopted in 1968. The current name, Aetna, Inc. was adopted in 1996 when Aetna Life and Casualty Company merged with U.S. Healthcare. The company serves primarily employer groups, individuals, college students, and part-time and hourly workers and Medicare beneficiaries in certain markets. It has over 26,000 employees.

Aetna has 3 business segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment consists of the medical, pharmacy benefits management, dental and vision plan offerings. Aetna’s medical plan offerings include point-of-service, health maintenance organizations, preferred provider organizations, indemnity plans, and health savings accounts. The Health Care segment also provides specialty products such as medical management and data analysis services, behavioral health plans, stop loss insurance, as well as products that provide access to its provider networks in select markets. The health plans have 15.4 million medical members, 13.5 million dental members, 10.2 million pharmacy members. Aetna’s Group Insurance segment offers life, disability, and long term care insurance products. The Group Insurance segment has 15.1 million members (one-third in risk plans, and two-thirds in non-risk plans). The Large Case Pension segment manages various retirement products, including pension and annuity products primarily for tax qualified pension and annuity products primarily for tax qualified pension plans. Aetna does not actively market Large Case Pensions products, but continues to manage the run-off of existing business.

The company has one of the most expansive nationwide networks of health care service providers, including primary care, specialist physicians and hospitals among health care insurance carriers. Aetna provides health insurance and related benefits to employer and plan sponsor customers in most states, ranging from large multi-state national accounts to middle-market and small-employer groups, as well as individual consumers in select geographical areas.

Aetna is striving to increase its membership by expanding small group product offerings, strengthening its middle market businesses and cross selling products and it has a strategy to increase its market presence in certain southwestern states.

Health Care products are sold through Aetna’s sales personnel, as well as through independent brokers, agents and consultants who assist in the production and servicing of business. For large plan sponsors, independent consultants and brokers are frequently involved in employer health plan selection decisions and sales.

Products offered by Group Insurance are available in 49 states (Group Insurance products are not offered in New Mexico) as well as the District of Columbia, Guam, Puerto Rico, the United States Virgin Islands and Canada. Depending on the product, Aetna markets to a range of customers from small employer groups to large, multi-site and/or multi-state employer programs. Group Insurance products and services are marketed primarily to employers for the benefit of employees and their dependents. Frequently, employers offer employees a choice of benefits, from which the employee makes his or her selection during a designated annual open enrollment period. Typically, employers pay all of the monthly premiums to Aetna and, through payroll deductions, obtain reimbursement from employees for a percentage, as determined by the employer, of the monthly premium. Some Group Insurance products are sold directly to employees of employer groups where the premiums are not subsidized by the employer group. In some cases, Aetna bills the covered individual directly. Group Insurance products are sold through Aetna’s sales personnel, as well as independent brokers and consultants who assist in the production and servicing of business. Sales representatives also sell to employers on a direct basis. For large plan sponsors, independent consultants and brokers are frequently involved in employer plan selection decisions and sales.

Aetna also offers online Dental Insurance. One of the things you should look at when considering an online dental insurance company is the information provided. When you visit the Aetna Dental site, you’ll see that there’s a great deal of information present, and it’s organized into categories that make it easy for you to find the information that’s relevant to you. The site is very clean and user-friendly, with tools for members organized on one side and informational links organized on the other. It’s a positive sign that so much information is offered on the Aetna Dental site.

Overall, Aetna Dental seems to be quite competitive in all aspects of their company. They offer a great deal of features to make it easier for you to manage your accounts and track claims. Their help and support is top-notch, and the information available on the site makes it easy for you to get all the answers and help you need. While it’s recommended that you research several companies before making a decision, Aetna seems to be a great company to go forward with.

UFREETV.COM

ESPN STREAM-1 STREAM-2