Birmingham's Protective Life enters coinsurance deal
Published: Saturday, October 23, 2010, 1:21 PM Updated: Saturday, October 23, 2010, 4:13 PM
Protective Life Corp. has entered into a $310 million agreement with Liberty Life Insurance Co. under which the Birmingham-based insurer will co-insure all of Liberty's life and health business.
The deal, expected to close in the first quarter of 2011, is anticipated to boost Protective's earnings per diluted share 22 cents to 26 cents in 2011 and 34 cents to 38 cents per share in 2012, the company said in a prepared statement.
The deal will close in conjunction with Athene Holding's acquisition of Liberty Life from an affiliate of Royal Bank of Canada.
John D. Johns, Protective CEO, said the coinsurance deal and the acquisition of United Investors Life Insurance Co. from Liberty National Life Insurance Co., announced last month, collectively will increase Protective's life insurance reserves by 18 percent.
"Protective has a proven track record of successfully acquiring companies and blocks of business, and this transaction demonstrates once again our industry-leading capabilities in this strategically important area of our business," Johns said in a prepared statement.
Monday, October 25, 2010
Birmingham's Protective Life enters coinsurance deal
Co-op insurance arm on the block
Co-op insurance arm on the block
By Daily Mail Reporter
Last updated at 10:30 PM on 24th October 2010
The Co-operative Group, the world’s largest consumer-owned business, is planning the sale of its �18billion life insurance subsidiary, according to reports.
Deutsche Bank is said to have been given the task of sounding out potential buyers for all, or parts, of the business, which provides cover to almost 3million customers in Britain.
Legal & General, Resolution, Royal London and Aviva have all been informed what’s on offer at the Coop’s life insurance arm, which has �18billion of assets and offers products including investment funds, pensions and protection insurance such as health cover.
Strategic review: Neville Richardson, Co-op boss, has also merged the firm's travel arm with holiday business Thomas Cook
The proposed sale is believed to be part of a strategic review by Co-op boss Neville Richardson.
It follows the merger of its financial services arm with Britannia Building Society in January 2009. That boosted the Co-op’s branch network, and the society wants to sell more products through its bank premi ses rather than through a direct sales force.
More...
The Co-op recently hit the headlines by merging its travel arm with holiday firm Thomas Cook, a move which is likely to result in job losses and generate savings of around �35million.
Brit Insurance, sponsor of the England cricket team, is set to be bought by Apollo and CVC Capital Partners in a deal worth �850million, or 1045p a share.
The private equity firms have agreed to honour a 30p a share dividend payment to shareholders and to pay an extra 25p a share depending on the group’s profits performance.
Apollo’s initial approach was made in June. It made three offers for Brit over the summer before the insurer agreed to open its books for due diligence.
UK-based CVC’s surprise inclusion in a partnership with Apollo of the US came after it became clear Apollo would struggle to finance a deal on its own.
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Friday, October 22, 2010
» Husband Cancels Life Insurance, Wife Divorces Husband
Divorcing someone just because they cancel their life insurance policy? Is that a reasonable thing to do?
The idea stunned me when I first read the e-mail. I figured there had to be more to the story, and there probably was. But as I read Melinda’s e-mail, I realized that when her husband canceled that life insurance policy, it was the final straw.
For her husband Jim, it was just a financial decision. He had recently suffered a downturn in his business and cut the insurance as a measure to trim the red ink. But Melinda thought other expenses should have been cut in order to get out of debt.
And Jim’s unilateral move put Melinda in real financial danger. Besides that, it was a breach of trust. When they got married, they agreed that they would make all major financial decisions together. And that’s how they approached their financial life – until Jim put the kabosh on his life insurance policy.
Melinda was counting on that insurance. She realized that the proceeds of that policy were the only safety net she had in case her husband died.
Now that he’s cancelled it, if he does die, Melinda will wind up out in the cold… Literally.
What could Jim and Melinda have done differently to avoid this trouble?
The most obvious thing would have been for Jim to talk with Melinda before he cancelled the policy. He probably just did it because he felt trapped and didn’t discuss it because he was ashamed of not making as much money as he had in the past.
But it doesn’t stop there. I believe that Melinda bears some responsibility.
Could she have seen this coming? Did she suggest ways to save money? Did she look for cheaper life insurance? Was she involved in her husband’s business? Significant business downturns rarely happen over night. Did she ever ask how things were going? Did she pay attention? When she saw things going downhill, did she talk about the idea of 2nd job (for Jim or for herself)? Did she discuss the personal budget situation with him? Since the life insurance was so important, should she have been on top of making sure the premiums were paid?
I’m not trying to blame this on Melinda, and I’m not trying to create a new “Days of Our Lives” soap opera. I’m trying to determine if something can be learned from Jim and Melinda.
When you encounter financial challenges as a couple, it’s easy to point the finger. But it’s rarely helpful. In fact, if you’re really looking for a silver lining in an otherwise dark cloud, find how you contributed to a problem.
Even if your spouse is 99% at fault, consider your 1% – at least at first. By doing so, you accomplish a number of very important things.
First, by examining your own behavior, you have a real chance at doing better next time. I don’t know about you but I have no control over my spouse. I have a lot more control over my own actions.
Second, by admitting your own responsibility, your spouse will be more willing to admit their own failures.
Let’s say your husband comes home and announces he just signed up for a new credit card because they offered 5000 bonus miles. After you review the paperwork, you find that the credit card was a bad deal. Now you want to close the account because the annual fees are ridiculous.
At first, it’s hard to see how you had any part in your husband’s thoughtless behavior.
But upon closer inspection, you understand there are things you could have done differently. You could have gotten yourself involved in the search for a good credit card, for example.
When things go wrong, this exercise is super important. It gives you your best shot at improving your finances and your relationship. It’s also the best way to stay out of divorce court.
I know this is really a tall order – especially when your partner did something colossally dumb. I certainly don’t take advantage of this idea as often as I should.
How about you? When you have found yourself in a similar situation… Have you examined your own part? What was the result?
How do I put life insurance on my childs father?
I’m wanting to put life insurance on my son’s father. He is my beneficiary and I just feel that it is necessary for us to have this! Ive been searching the internet and I cant seem to find what I’m looking for. Does anyone have a suggestion on which company I should use or how I need to go about this… I got my insurance through my job so I really don’t know how to go about getting life insurance on someone else!
10 months ago
mbrcatz 4:44 pm on October 21, 2010 Permalink
You can’t buy real insurance on the internet – there’s going to have to be an application, paramedical exam, etc.
You should contact a local, independent agent who can get you multiple quotes in your area, who is licensed in your state.
Also, I wouldn’t rely on that insurance through your employer, if you’re looking to provide for your child – it’s under the employer’s control, and they can cancel it at any time. Not to mention, once you LEAVE that job, it’s gone.
The Nonn 4:44 pm on October 21, 2010 Permalink
If your son’s father works full time then his company may have life insurance available to him. Have you checked this? I’m certainly not the last word in insurance, but I wonder if you’d be able to purchase insurance on another person. It just seems like you’d have to have him take out the policy.
WilliamM 4:44 pm on October 21, 2010 Permalink
The father would have to be present for any swab test or questions. Are you going to pay the premium or is he? Doesn’t matter, just something you should work out together. There are plenty of life insurance companies out there and surfing the internet will only bog you down with the overwhelming abundance or companies. I assume you have either auto or home insurance, or both. I hope you have an agent for those policies. Go to him/her. This really is not a difficult task to accomplish if both parties are in agreement and can be present at the same time. Find someone you trust if you don’t trust you agent now, and start the questioning process. Life insurance is by far the most important insurance one can get, far more important than auto or home. There are so many life insurance plans out there that you will probably easily find one that fits your needs and is affordable if the agent knows what they are doing. If you happen to live in TX, I would be more than happy to steer you in the right direction utilizing my connections.
Relax, this is not a daunting task. Good luck and peace to you and your son.Caveat Emptor 4:44 pm on October 21, 2010 Permalink
You cannot do so without his permission and cooperation.
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The Hartford Lowers the Cost of Life Insurance for Many Older Americans with ...
SIMSBURY, Conn., Oct 21, 2010 (BUSINESS WIRE) -- The Hartford is lowering the cost of life insurance for many older Americans who have been successfully treated for coronary heart disease. According to Dr. Robert Pokorski, The Hartford's chief medical strategist, the changes have been adopted because recent medical studies show that older individuals with coronary heart disease often have the same life expectancy as healthy individuals of the same age.
Dr. Pokorski estimates that more than half of the nearly 200,000 Americans over the age of 70 who will have bypass surgery or angioplasty this year will qualify for the company's new lower rates. The new rates are for men and women who are 71-85 years old, are in otherwise good health, and have no history of cancer, diabetes, or other serious medical conditions.
Under the new guidelines, a 71-year-old man purchasing a universal life policy will save at least $2,500 on the annual premium for a $250,000 policy and $5,000 on a $500,000 policy. The amount of insurance that can be purchased is subject only to limitations that apply to all applicants of the same age. In other words, women and men between the ages of 71-85 who have successfully undergone bypass surgery at least six months ago -- and are otherwise in good health -- are eligible for standard rates at the company maximums, as long as they qualify financially.
Longer survival after heart surgery is one example of the broader trend of increasing life expectancy in the United States, both in people who have health problems and those who don't. According to Dr. Pokorski, "Life expectancy continues to increase, especially for people who follow sound medical advice, such as treatment for elevated blood pressure and cholesterol, regular exercise, and a well-balanced diet. Longevity is also increasing in older people who are successfully treated for heart disease. We believe that many of these people are highly insurable, and at the same rates The Hartford offers to people with no health problems."
The Hartford was the first insurer in the nation to offer standard rates on life insurance to women recovering from early stage breast cancer and men who have been successfully treated for localized prostate cancer. The company also recently instituted sweeping changes in the way it assesses the health and longevity of life insurance applicants that says that it believes the changes will reduce the cost of premiums for a quarter of all new policyholders.
According to Brian D. Murphy, executive vice president of the company's Individual Life Insurance Division, the new underwriting approach, "uses the latest medical knowledge and test procedures to create a holistic view of each applicant." He also said it "gives us the ability to create a more accurate risk assessment of the individual and, in most cases, makes it easier and less expensive for clients to purchase the life insurance they want."
About The Hartford
Celebrating 200 years of helping its customers achieve what's ahead, The Hartford /quotes/comstock/13*!hig/quotes/nls/hig (HIG 24.20, +0.46, +1.94%) is an insurance and wealth management company. Through its unique focus on customer needs, the company serves businesses and consumers by providing the products and solutions they need to protect their assets and income from risks and manage their wealth and retirement needs. A Fortune 100 company, The Hartford is recognized widely for its service expertise and as one of the world's most ethical companies. More information on the company and its financial performance is available at www.thehartford.com.
Over 750,000 Americans currently trust their life insurance needs to The Hartford's life subsidiaries, in part because they are getting more than the promise of a death benefit. They are entrusting their financial protection to a company that prides itself on integrity.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries, including the life insurance issuing companies of Hartford Life Insurance Company (New York) and Hartford Life and Annuity Insurance Company (outside New York), Simsbury, CT. The mailing address for both issuers is P.O. Box 2999, Hartford, CT 06104-2999.
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2007 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
HIG -- WLIF -- 102136 10/21
SOURCE: The Hartford Financial Services Group, Inc.
The Hartford Robert DeMallie, 860-843-5215 Robert.DeMallie@hartfordlife.com or Timothy Benedict, 860-843-5150 Timothy.Benedict@hartfordlife.comCopyright Business Wire 2010
Staying Healthy and Making Smarter Lifestyle Choices Can Lower Life Insurance ...
See more news releases in: Banking & Financial Services, Insurance, Health Care & Hospitals, Surveys, Polls and Research
Staying Healthy and Making Smarter Lifestyle Choices Can Lower Life Insurance Premiums
EL DORADO HILLS, Calif., Oct. 21 /PRNewswire/ -- Americans have hit a 50-year low for buying life insurance, and the main reasons are that many people think they can't afford it or can't qualify because of their health.
But Gary Lardy, a respected insurance expert, says many people actually can afford life insurance, and they can even lower their insurance costs with simple changes that will also make them healthier.
"They don't need a total lifestyle change," said Lardy, CEO of IntelliQuote (www.intelliquote.com), a leading online life insurance agency. "There are little things people can do to improve or maintain their health. These changes may also result in lower insurance premiums, making their life insurance coverage more affordable."
One example: schedule regular visits with your primary care doctor. If your doctor finds you have a treatable condition, for instance, high blood pressure, he or she may be able to prescribe medication to control it. Once your doctor sees your blood pressure levels are down, your life insurance company can use those new, improved levels to refigure premium costs.
Lardy cites a study from LIMRA, a financial services think-tank, that shows only 44 percent of American households have individual life insurance, and he worries people are neglecting both their financial security and their health.
"So many people think their health issues, or even their unhealthy habits, automatically disqualify them from getting life insurance," Lardy said. "That's just not true, and it can result in many families being dangerously unprotected. Even if they don't qualify for the most affordable rates initially, it's best to purchase a policy to ensure coverage; if they take steps to improve their health, they can request a no-cost policy review that could lower their future life insurance premium."
Another more obvious change that can improve both health and life insurance rates is to quit tobacco use. Quitting smoking, chewing tobacco or using other nicotine products for just one year could result in lower insurance rates. On the other end, even something as simple as taking regular walks can improve health by lowering blood pressure and taking off a few extra pounds—and lower life insurance costs as well.
Lardy also urges people living with cancer or with a family history of medical conditions to speak with a life insurance agent. "Some carriers provide life insurance policies for 'health-impaired individuals,'" said Lardy. "It's important to reach out to your agent to find the policy that is right for you."
"This isn't just about life insurance, it's about people living longer, healthier lives," Lardy said. "And we want people to know that as they get healthier, they might also find it more affordable to protect their families with life insurance, too."
ABOUT INTELLIQUOTE
A leading online life insurance agency since 1997, IntelliQuote provides customers simplified, private access to compare, shop and buy life insurance, including term life insurance. IntelliQuote offers clients a wide selection of competitive products from A-rated carriers, supported by licensed agents. This simplified approach makes buying a policy easy and straightforward while providing a savings of up to 70 percent per policy. IntelliQuote is a member of the LIFE Foundation and is committed to ongoing consumer education. For information on how to estimate how much coverage an individual might need, visit www.intelliquote.com. For more information, contact www.intelliquote.com, or 888.883.6855.
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Gary Lardy
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=95233
SOURCE IntelliQuote
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Top 4 Stocks In The Life Insurance Industry With The Highest Dividend Yield ...
Below are the top life insurance stocks on the NYSE and the NASDAQ in terms of dividend yield.
Sun Life Financial Incorporated (NYSE: SLF) has a dividend yield of 5.10%. SLF's shares closed at $26.96 yesterday.
Aviva Plc (NYSE: AV) has a dividend yield of 4.80%. AV's shares closed at $12.80 yesterday.
Manulife Series Fund Inc (NYSE: MFC) has a dividend yield of 4.00%. MFC's shares closed at $12.71 yesterday.
American National Insurance Co (NASDAQ: ANAT) has a dividend yield of 4.00%. ANAT's shares closed at $78.48 yesterday.
AIG Raises $17.9 Billion, Prices AIA IPO at Top: Sources
HONG KONG (Reuters) - AIA, the Asian life insurance arm of American International Group Inc , raised $17.9 billion by pricing its Hong Kong IPO at the top of an indicated range, sources said, due to heavy demand for one of Asia's best known industry brands.
The pricing of the IPO, set to be the world's third biggest, puts an end to an AIG saga. Its bid to sell AIA started roughly two years ago and has included two auction attempts and two floatation efforts.
AIG will use the IPO proceeds to pay back part of the U.S. bail out it received during the 2008 financial crisis -- a rescue package that ballooned to a whopping $182.3 billion.
The IPO will value AIA at $30.5 billion at the top end, with AIG holding a 41.6 percent stake that will drop to 33 percent if the green-shoe option is exercised in full.
The offering by AIA, which operates in 15 markets in Asia, comes amid a boom in Asian IPOs, with offerings zipping through stock exchanges throughout the region.
"It's more or less fully valued after the shares were sold at the top end," said Francis Lun, general manager with Fulbright Securities. "Still one could expect a 5 percent upside on debut."
WIDE APPEAL
AIA sold 5.86 billion secondary shares at HK$19.68 each, sources with direct knowledge of the matter told Reuters.
The sources declined to be identified as AIG was yet to make the decision public. An AIA spokeswoman was not available for an immediate comment.
AIA also exercised the upsize option to sell an additional 1.17 billion secondary shares, due to strong demand from investors, the sources said.
AIA's unique position as the only listed life insurer with a wide foot print in the rapidly growing Asia-Pacific region is a big draw for investors, fund managers said.
Unlike many other foreign insurers, AIA has 100 percent ownership of its entities in China, Indonesia, Malaysia, Thailand and Vietnam. AIA has more than 300,000 agents in Asia.
Bucks from beyond changed her life
Thursday, October 21, 2010
Many unaware of life insurance benefits, study finds
Many unaware of life insurance benefits, study finds
Posted on Tue, October 19, 2010Life insurance can provide a number of benefits to policyholders and loved ones. However, the Penn Mutual Life Insurance Company's Worth Survey for Women shows that a large percentage of people may not be aware of all its offerings.
For example, in addition to death benefits, certain life insurance plans can offer income during retirement. The survey found that only 39 percent of women and 50 percent of men knew a policy had such potential. Additionally, the study found that the median individual life insurance coverage for women is half that of men.
Penn Mutual Life Insurance Company director of women's marketing Tracy Marrocco says it's important for women to become more educated on life insurance.
"Women need to not only recognize the value of life insurance, but to take action in purchasing a policy that is right for their needs, so they can take advantage of all of the living benefits that permanent life insurance offers, as well as the death benefits," says Marrocco.
There are a number of ways consumers can educate themselves on life insurance. Furthermore, it may be a good idea for people to discuss options with an agent to pick a plan that best meets a person's individual needs and goals.
Feedback or questions? Email the editor here.
Nippon Life to increase yen fixed-rate assets in H2
Bupa insurance operation snapped up by Resolution
The acquisition, which is being funded by Resolution's subsidiary Friends Provident from surplus capital held within its life operating businesses, will give the firm a 10 per cent share of UK's group risk market.
Trevor Matthews, chief executive of Friends Provident, said: "It’s a sweet deal. Bupa has a very strong name in the group protection market so we're very pleased to add that to our business, and strengthen our group risk business product range and improve the profitability of our individual protection business."
The takeover is still subject to FSA approval, but is expected to be granted within the next three months.
The Bupa brand name will be used for the first six months, but the business will be relaunched under the new name of Friends Life in 2011.
Current chief executive Steve Payne will continue to run Bupa Health Assurance for a year, before bosses decide how to proceed further with his employment.
It is also expected that the group risk operation will form the base of the new Friends Life, while bosses will look at individual risk policies from across the firm to whittle down the best offerings.
The firm is not planning any redundancies among the 300 staff in Manchester and Bristol, although Mr Matthews said that, in the long-term, there may be job losses but this might be avoided by not replacing employees who leave or retire.
Lorreine Kennedy, head of care fee planning of St Albans–based CareMatters, welcomed the deal. She said: "My own experience with Friends Provident is that its systems are easy to use and it offers competitive rates, although it does have strict underwriting, with two recent applications loaded that were then accepted at normal rates by another company. Customers are so used to bank mergers and name changes that the transition will go by almost unnoticed.
"Bupa recently sold its care homes, further demonstrating its ongoing commitment to the healthcare market. It is remarkably good at healthcare."
The news follows Resolution's takeovers of Axa's UK life insurance arm earlier this year and last year's purchase of Friends Provident. Mr Matthews said the firm has not ruled out any more mergers in the near future.
He said: "We're keeping our eyes open for good deals as we continue on the journey to create a bigger and better business."
Mark Loydall, director of Leicestershire-based IFA Cambourne Financial Planning, said: "This announcement was a big surprise and completely unexpected. It is still early days in Resolution's takeover of Axa so it is difficult to know how that is going. To take over another provider so soon could prove challenging. Let us hope that customer service does not suffer."
Wednesday, October 20, 2010
Getting life insurance for my grandparents?
My grandparents are in their seventies – early eighties. Financially, they are having a tough time and do not have life insurance.
As their grand-daughter, I would like to establish a policy that will be just enough to cover their final expenses. They live in the state of Missouri and I live in Minnesota.
Would I be able to get a policy for them?
What types of policy should I look at –term or whole life?
What are your recommendations for insurance companies?
mbrcatz 11:49 am on October 19, 2010 Permalink
Companies like Globe Life or Mutual of Omaha will issue a life insurance policy on a "guaranteed issue" basis, up until the age of 76.
After 76, you can still buy life insurance – but you won’t get odds. You’ll be making one lump sum payment, probably the death benefit plus 10%.
Additionally, there is no payout, unless they live a full two years after the policy is purchased.
There is no "term" life insurance, when you’re in your 80’s – because you WON’T outlive the term.
My recommendation is to not waste your money on insurance. You’d have to get their permission, also, which is another can of worms. Just start socking away $250 (what those two policies would have cost you) each month into the bank account, and whoever dies first, you have the money to pay for their funeral. And if it’s MORE than a couple of years, you’ll have the money to pay for both funerals.
Which is REALLY your reminder – if YOU want life insurance, buy it now.
Smiling 11:49 am on October 19, 2010 Permalink
If they are over 80 it will be difficult to get any kind of life insurance. If the guaranteed enrollments through AARP and Colonial Life end at 80.
Since you are solely looking for final expenses/funeral coverage, a better option would be to go through the pre-paid funeral program at the mortuary/cemetery where they will reside. Make sure that multiple people know the specifics of this plan. The mortuary companies often get 1 for the price of 2. There is no one besides the deceased who knows of the plan, so when the time comes the survivors end up re-purchasing the funeral costs.
Caveat Emptor 11:49 am on October 19, 2010 Permalink
First, you could only do so with their concurrence. Second, you will probably find such insurance very expensive – if available at all. Life insurance is not "for your grandparents" – it is for the beneficiary(ies), so what exactly is the need here?
Zarg222 11:49 am on October 19, 2010 Permalink
they may be almost impossible to get life insurance for and it is going to be very expensive if you are able to get it – the premiums over a few years may wind up costing you as much as their "final expenses" would be – just start saving money and egt other family members to chip in – or just worry about it when the time comes
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Life Insurance Used in Estate Planning - Family Trusts NZ New Zealand
Life insurance is no longer solely used for funeral expenses today. It has evolved through the years to become a product that is used for multiple purposes. These could range from covering burial costs, compensating for a loss of income, as a means to pay off mortgage and other debts, to provide for children's education, as a donation to charity and as a crucial part of estate planning.
Estate planning is an essential means to preserving and transferring your assets. By reducing the possibility of any future legal issues, proper estate planning can also increase the amount of wealth left behind for your beneficiaries. Estate planning is a must for anyone with assets that need to be transferred after you die and is no longer just the prerogative of the wealthy. In such cases, life insurance along with wills, trusts and the Power of Attorney can be the most effective way to handle your estate after your death.
Life insurance can often constitute a large part of a person's estate. Since any estate whether large or small demands funds for the payment of taxes, administration costs and any other debts of the deceased, life insurance can be used to offset these expenses. If you plan ahead, your insurance could cover the costs of settling your estate including any taxes, fees, or debts you may have incurred over the years.
Life insurance can also help you divide and distribute your estate equally. If you have more than one heir or beneficiary, the proceeds from your life insurance could be used to balance the distribution of inheritance.
There are many cases when estates are composed of property that is not liquid such as art or jewelry that your dependents might not want to sell in order to pay off any debts or expenses. Once you die, the death benefits paid out are generally tax-free. This creates a ready supply of liquid cash for your family and dependents to use to fund estate taxes and other expenses without touching your other assets and sources of income. In comparison to the small amount you pay for your monthly premiums, life insurance is a cost-effective way of funding estate expenses.
In case you wish to leave something towards your favorite charity after you die, life insurance can help. Since gifts to charities using life insurance are generally estate tax-deductible, this process is made simpler.
With a sound financial plan, you can minimize the tax burden on your family with the help of an adequate life insurance policy. Your family will be left with enough access to funds to meet their needs and that all members of your family are equally taken care of after you die.
There are of course many more ways in which life insurance can be used in estate planning. For this you would need to speak to a qualified professional who will help you determine which planning techniques are appropriate for your situation. Also remember that estate planning is not something that you forget about once its done. Just as your life situation can change over the years, tax laws can be altered, and your needs may be different from when you made your original plan. Most professionals and financial experts recommend that you conduct an annual review of your estate plan and make the necessary changes in your life insurance policy, if needed.
Underwriting Life Insurance Coverage With Regard To Diabetics ...
Life insurance coverage Businesses differ of their “underwriting philosophy” in relation to diabetes. Offering life assurance for diabetes patients can be dangerous when the underwriters will not be a master. Underwriters in the insurance providers which have been smooth throughout underwriting diabetes be able to examine these aspects along with see whether the corporation need these being a chance. Moderately governed diabetic issues instances might typically merit any “rating” or a rise inside top quality, and not necesarily the declination for coverage. In case your client using diabetic issues that wants life insurance seriously isn’t manipulated, there are possibilities - it’s going to simply price all of them more for insurance!
Diabetic person Life assurance can be had regardless how intense the particular diabetic issues problem is. If the offered covered features effectively governed diabetic issues and past complying in what a doctor reccomends, then the pace regarding insurance coverage will naturally echo which. The greater your control, the higher the incidence. Clients along with properly managed all forms of diabetes have a very excellent opportunity in finding a reduce price at a frequent insurance plan carrier as well as would likely qualify for an insurance plan which is entirely underwritten. When, at the some other extreme, your customer features really poor handle in the diabetes mellitus, the rate will probably be increased and your client will need to go with a life insurance of which warranties acclaim. This kind of term life insurance is known as “guaranteed matter life insurance”.
Confirmed concern term life insurance regarding diabetics is a lot more pricey when compared with standard “fully underwritten” life insurance coverage and it is merely distributed as “whole life insurance”. Renters insurance might be helpful, though, since it develops income value as well as is supposed to handle your customer for his or her “whole life” instead of a “term” stretch of time. An additional supply associated with confirmed matter is that the premiums compensated to the coverage would be compensated on the beneficiary As well as 10% attention in the event the covered by insurance drops dead from the initial 3 years on the policy’s beginning. After that three or more year period of time, the particular guaranteed matter policy would certainly shell out the entire death profit to the named beneficiary.
Totally Underwritten plans consider the client’s total healthcare information under consideration. The actual doctor’s documents tend to be bought, bloodstream is driven, the urine taste is used, along with a complete testing is done to guage the client. When the insurance provider determines in order to insure that consumer, it really is following the company’s underwriters go through the case. If the client is actually fully underwritten and also goes by via underwriting, then they would have a lot more alternatives than simply life insurance coverage with regards to those who could require confirmed matter complete life insurance. Phrase insurance coverage, Widespread Life insurance, Survivorship Universal Life insurance coverage, and normal Whole life will be offered to these types of job seekers which are fully underwritten.
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The Penn Mutual Life Insurance Company Worth® Survey: Men and Women Share ...
Horsham, PA (Vocus) October 18, 2010
The Penn Mutual Life Insurance Company today announced that according to its second annual Worth® Survey for Women, women and men share many of the same financial goals and dreams. However, women report feeling more overwhelmed, less confident and less in control when it comes to financial planning and retirement. And, in spite of their sizable numbers and success in the workplace, women continue to undervalue who they are and the contribution they make to home and family. This diminished sense of self-worth is reflected in the amount of life insurance coverage they have. Women have about half the coverage that men do, with the median individual coverage amount for women being $96,000 as compared to $189,000 for men.
Among those surveyed, more women than men said it was important to protect their families' well-being and way of life (69 percent of women compared with 60 percent of men); however, more women report being behind when it comes to guaranteeing their family is protected in the event something should happen to them (78 percent of women vs. 69 percent of men).
The disparity in life insurance coverage between men and women is particularly concerning because women are more likely than men to regard as important many of the benefits that life insurance, particularly permanent life insurance, can offer. However, fewer women than men acknowledge that life insurance is a viable source of these benefits. For example, 79 percent of women and 70 percent of men said a steady stream of income during retirement is important; only 39 percent of women vs. 50 percent of men reported being aware that life insurance could provide it. Similarly, 70 percent women and 64 percent men felt it was important to have access to quick cash in the event they need it, yet only 41 of women and 49 percent of men were aware that permanent cash value life insurance could provide it.
When it comes to retirement, fewer women than men report feeling confident (17 percent of women vs. 28 percent of men), organized (11 percent vs. 19 percent) and in control (15 percent vs. 22 percent). Not surprisingly, women are more likely to feel overwhelmed than men (22 percent vs. 14 percent) and are more likely to believe their standard of living during retirement will be lower than today (44 percent vs. 34 percent).
"Despite all the advances women have made in the workplace, it is disheartening to learn that women still feel behind when it comes to planning for retirement or other financial goals-and they're literally missing out on many important benefits by under-valuing themselves," said Tracy Marrocco, Director of Women's Marketing for The Penn Mutual Life Insurance Company. "We at Penn Mutual encourage women to first value their worth and take the necessary steps to assure a bright future for themselves and their families through the complete value of life insurance. Women need to not only recognize the value of life insurance, but to take action in purchasing a policy that is right for their needs, so they can take advantage of all of the living benefits that permanent life insurance offers, as well as the death benefits."
Life Insurance Complicated By Minority Health Concerns
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MICHEL MARTIN, host:
Now, most people know that certain groups are predisposed to certain health conditions or are likely to experience them in greater numbers. African-American and Latino adults are more likely to have high blood pressure than whites, for example. Native Americans, Latinos and African-Americans are more likely to suffer from diabetes and so on.
That's not news to America's life insurance companies. They are watching for preexisting conditions. But unlike companies affected by the new health care reform law, life insurance companies are not required to provide coverage to people with preexisting medical conditions. And that's why we've turned to one of our personal finance gurus, Louis Barajas. We want to talk about why preexisting medical conditions could make it challenging for many people to get life insurance and what they can do about it. And he's with us now. Thanks so much for joining us once again.
Mr. LOUIS BARAJAS (Financial Adviser): Thank you, Michel.
MARTIN: So, first of all, just, who needs life insurance?
Mr. BARAJAS: Well, you know, not everyone needs life insurance. People who are earning an income and they have dependents and those dependents, you know, rely on that income. They're the only ones that need insurance. And unfortunately, sometimes insurance is sold to people that don't need it.
MARTIN: Okay, like, so for example, you're just out of college, you don't have kids. Your parents are fine. You're not supporting them. You probably don't need life insurance.
Mr. BARAJAS: You probably don't need life insurance also. Children don't need life insurance. Also, sometimes young couples, professional couples who earn great incomes together may not need life insurance. But, you know
MARTIN: But once you start having people who depend upon your income, that's when you start to need to think about that.
Mr. BARAJAS: Absolutely. That's the purpose of life insurance. And you transfer that risk over to the life insurance company.
MARTIN: Now, there are two different kinds of life insurance, as I understand it. One is whole life and one is term. What's the difference?
Mr. BARAJAS: Well, term is just plain vanilla insurance. And if you die, you get the dollar amount that you purchased. Cash value or whole life is an investment feature with term insurance and it's really expensive. And most people really can't afford it. So term is the way to go for most families.
Unfortunately, though, in the African-American and Latino communities, only about 36 percent of these households have life insurance, as compared to the general market where I think it's over 54 percent of the general market has life insurance policies.
MARTIN: Tell me about the role of preexisting medical conditions. And is that a factor in people not being able to get insurance or get insurance that they can afford?
Mr. BARAJAS: Absolutely. For example, underwriters - and when people say underwriters, it's just a person working at an insurance company who's making a decision on your policy. What they're doing is they're looking at your age. They're looking at your medical history. They're looking at your family medical history. They're also looking at your lifestyle and your occupation. If you work in a hazardous occupation, they'll take a look at your, you know, what kind of risk is the insurance company willing to take on you? And then they're setting the premiums based on all these factors that I just talked about.
MARTIN: Are there particular, well, I'll just use the word scams, that you feel are more likely to be directed at people of color?
Mr. BARAJAS: Unfortunately there are scams. And let me tell you why. The business of financial planning or the insurance companies, when they're working in lower socioeconomic areas, when they sell term insurance to people, they don't make any money. There's very little commission in that. And so if these companies are going to survive in these areas, what they're trying to do is convince the purchaser of life insurance to buy these cash value life insurance policies that really are very, very expensive.
And the agents are selling them things that they don't need, and so they're paying much, much more. And when they're sitting there and they're having a conversation with a salesperson, the salesperson is selling the other person based on emotion. So people become impulsive and buy these really high priced insurance policies. And after about a year or two they can't afford them. And they have no life insurance and people end up just as poor as can be because they didn't do the right thing.
MARTIN: Are there other cultural factors or superstitions that sometimes play into this that you wouldn't mind telling us about?
Mr. BARAJAS: There are. Yeah, absolutely. Let me share with you one that I think is kind of funny. It plays officially for the Hispanic community. It's more of the machismo role. A lot of men do not buy life insurance because they think that, and I'll use the term (foreign language spoken), meaning that if they die, the one who's going to benefit is the new boyfriend that their wife will have.
MARTIN: They really say that? I'm not going to buy insurance because if I die I don't want the boyfriend to get it.
Mr. BARAJAS: Absolutely. And, again, we call it (foreign language spoken). And it's part of that ego, that machismo thing that we see in the Hispanic communities. And the African-American communities, it's just kind of hard to talk about death. There are these thoughts that sometimes people will always tell you, well, I'm never going to die. You know, as long as I understand that every statistic that I've seen is, you know, a hundred percent of all of us are going to die, and
MARTIN: Well, I've heard of the argument, you're borrowing trouble. That the idea by naming it, you're somehow bringing it on.
Mr. BARAJAS: Absolutely. And the same thing is when you're talking about death or even estate planning, they're thinking, I don't want to do it because if I do it, then I'm going to die soon. Well, we're all going to die, it's just we don't know when. And the problem is that if we have young children, again, young families that we have to take care of them, it's important that we think about life insurance.
And, also, if you do have some kind of medical condition, there are companies that will actually take you if you've got high cholesterol, high blood pressure and you're under doctor's care.
MARTIN: Well, talk to me a little bit more about that. If you do have a preexisting medical condition, what can you do?
Mr. BARAJAS: Well, first of all, you can actually go on the Internet and do research for life insurance policies and you can do one application and you can have a whole bunch of companies take a look at it and some will deny you, some will accept you, some will accept you at a higher rate. That's the first thing. The second thing, if you really cannot qualify for life insurance because you've got cancer or something and they're not going to give you life insurance, but you still can get life insurance.
You can get it through your group plan at work, because they're not going to deny you as long as you have a group plan. And a lot of people don't ever look at membership associations. For example, if you are a member of AARP, you can get a small policy, but at least you'll qualify for a policy, even if you do have a preexisting condition.
MARTIN: One more thing I wanted to ask you about, if you're a single head of household and your main concern is to take care of your children but they are minors, what do you do?
Mr. BARAJAS: That's the number one mistake I see. If anybody's listening to us and they've named their children, who are minors, as the beneficiaries on their life insurance policies, they need to change that immediately. What they want to do is they either want to create a trust or you want to name someone that you actually trust as the beneficiary.
For example, it could be a parent, it could be a sister that you know that will take the proceeds of the life insurance company and actually use them to raise your children. But, you know, don't be afraid of this. I've been around long enough to actually tell you that I've seen people pass away with life insurance policies and it's made a world of a difference in their lives.
I've also seen people pass away with no life insurance. It's created the most amount of struggle and kind of a survival mindset in the lives of the families. And life insurance is just so inexpensive these days that it's available for everybody's situation.
MARTIN: Louis Barajas is one of our regular contributors on matters of personal finance. And he joined us from Costa Mesa, California. Louis, thanks so much for joining us again.
Mr. BARAJAS: Thank you, Michel.
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Tuesday, October 19, 2010
Life insurance market in UK now stable, according to report
Is it wise to change life insurance company after paying more than ...
My mom has bought a life insurance policy more than 10 years ago from company xyz. and now my cousin is an agent of life insurance company abc, so she wants my mom to cancel her original policy and move to the company she represent. Is this a wise thing to do?
Barry auh2o 1:06 pm on October 18, 2010 Permalink
It is a very dumb thing to do. The new policy will carry a much higher premium than the old policy.
Also., there will be a new contestable period, during which fhe company can simply void the policy if they find out information that wasn’t on the application.
This is called " trwisting, " that is, enticing a customer to drop an old policy in favor of a new policy. It is unethical, and in many cases, illegal.
What will your mother gain? Abvsolutely nothing. What will your cousin gain? A new policy commission.It sounds like your cousin found a promisingm nbew career in selling life insurance, but after a new agent goes through cousins, aunts, uncles, etc, those eads suddenly become awfully hard to come by.
This is a dumb thing to do. I urge her, just say NO!
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