Tuesday, March 20, 2018
Monday, March 19, 2018
Five Things You Must Do Following A Motorcycle Accident
Crashing sucks and never more so than when riding a motorcycle. The risk of bodily injury from even a minor accident is far greater than when involved in a similar situation while piloting an automobile.
Protecting yourself begins with proper training and continues with riding practice and acquiring experience. Great advances have been made in the materials and manufacturing of motorcycle apparel regarding both protection and comfort. But none of these are a 100% safeguard against having an accident. If you’re involved in a motorcycle accident (or come upon the scene of one), knowing how to react is the next step in protecting yourself, your passenger and your motorcycle from further harm.
Hopefully this is a list you’ll never have to use.
Remain Calm
Unless you’re cognizant of some impending danger, do not move. Lay there, then – beginning with your toes and finishing with your skull – take a mental inventory of your body parts. Evaluate each for pain and movement. Try to remember that you may be experiencing shock and that adrenalin masks pain, both of which may cloud judgment of your physical condition. Once satisfied you’re uninjured, then begin moving and/or removing riding apparel.
The scene of an accident is inevitably chaotic. If you become anxious, calm yourself by taking deep breaths. Compose yourself because anxiety is infectious and arousing others only complicates matters. You also need a clear head to effectively assess the situation.
Assess the Situation
If you’re carrying a passenger, check on their condition, then check on the condition of others involved in the accident. Instruct everyone to perform the same mental inventory of body parts you did. If necessary, dial 911 and immediately request emergency services. Survey the scene for other present dangers such as fire, leaking hazardous fluids, oncoming traffic, etc. Take any necessary precautions to secure the safety of anyone present. Once you’re satisfied that everyone’s safe and any further dangers have been contained, call the police and report the accident.
Record Details
Use your smartphone to notate details of the accident and take photos/videos, or write notes if pen and paper are available but no smartphone.
Things to record:
1. Date, time, location, weather and road conditions of the accident
2. Your account of the accident including a diagram
3. Injuries and damages
4. Make, model and license plate of any vehicle involved
5. Names, phone numbers and insurance information of all people involved. Be certain to include the names and numbers of willful witnesses.
Things to photo/video:
1. Skid marks
2. Street signs
3. Visual obstructions
4. Road abnormalities
5. Property damage
Contact Insurance Company
Contact your insurance agent as soon as possible. Provide them with all the information you procured and be proactive in assisting them with acquiring any further information. They are there to protect you after the accident, so assist where and when you can to help expedite the process.
Maintain Records
Create a folder, or some other central location, for keeping all your notes and photos of the accident, as well as contact information for everyone including witnesses and police officers. Procure a copy of the police report. Make new notes including names, dates and times of phone conversations with insurance agents or law enforcement officials. Print copies of email exchanges, etc. Save all receipts of costs incurred related to the accident including towing, storage and rental car costs. These records will help support your case if there are any complications.
Read More: http://www.motorcycle.com/insurance/five-things-you-must-do-following-a-motorcycle-accident.html
from Best Insurance Quote https://www.bestinsurancequote.io/five-things-must-following-motorcycle-accident/
Sunday, March 18, 2018
Motorcycle Insurance For Beginners
We were all beginners once, right? Whether it be motorcycles, soccer, ballet, etc., the unknown pitfalls of any new venture can cause excitement and joy or, more often than not, leave you scrambling in a fit of confusion. So let’s take a look at tips for helping new motorcyclists navigate their way through the tricky insurance web of deceit! Motorcycle insurance for beginners, take one.
So you fancy yourself a biker?
Congratulations! Welcome to the fold, brother! So, let’s chat about motorcycles. Have you decided which motorcycle to purchase yet? Are you a new rider, or have you been roosting the other kids at the track since you were knee-high to a Cholla cactus?
These things matter, not only regarding how your general experience will go, but also to your insurance company. Well, actually, the fact that you have been a professional racer since you were 12, does not matter. Sorry. If you’re under 25, and it’s your first bike, you will likely be teetering at the high end of insurance premiums, but there are ways to mitigate your insurance costs.
What kind of motorcycle will you be riding?
First of all, your motorcycle choice makes a huge difference. Are you looking at that shiny new Panigale V4 that Ducati just released onto the scene? Bad choice in terms of insurance. In fact, that might be the costliest choice to a fresh motorcyclist, not to mention being a bad idea for plenty of other reasons. Instead, consider motorcycles that aren’t labeled as sportbikes by most insurance providers. I still chuckle to myself now and then when I think back to registering my first street bike, a 2001 Triumph Speed Triple, and found the insurance to be incredibly affordable because it wasn’t considered a sportbike, although it had more power and performance than some.
The type of motorcycle, engine displacement, price, and year, among other factors, will affect your premiums, keep that in mind.
What can I do to lower my premium?
I thought you’d never ask. Besides carefully choosing your preference of iron steed, you can take a motorcycle safety class. Completing motorcycle safety training, whether it be a beginner course or an experienced rider course, can save you money on your premiums. Planning to stick with the same insurance provider as your automotive policy? Most companies offer group discounts for bundling vehicles as well.
Some things you can’t change
Unfortunately, your age and location will factor in and those are things that you cannot change. So, consider some of these general best practices so you just don’t need to use your insurance: Use a motorcycle lock of some sort. I used a caliper lock for a few years and a massive chain lock at one point as well to help deter opportunistic thieves. Other things that will help you from needing to contact your insurance provider are as easy as being extremely careful and vigilant at intersections of every type and practicing your emergency maneuvering skills in a safe area until it is all muscle memory. Check out our man Brent’s practice tips here.
Be sure you and your motorcycle are covered
The most important point regarding insurance is to make sure you understand your coverage. The worst possible feeling is paying your premium month in and month out only to find out after an accident that you’re not fully covered or that your deductible is as much as that used motorcycle that you bought. Let me define a few insurance terms that can leave the uninformed or first-time insurance buyer, in a state of confusion:
Deductible: Is the amount you must pay to your insurance company before they begin paying for the rest. If you bought a $1,500 motorcycle, you don’t want a $2,000 deductible.
Liability: Liability insurance covers you in the event of an accident in which you were at fault. This is generally the state minimum.
Collision: Collision pays to repair your motorcycle in the event of an accident, regardless who is at fault.
Comprehensive: Comprehensive coverage pays for damage to your motorcycle that is not the result of an accident such as theft, vandalism, or natural disaster. Of note, comprehensive coverage will pay the market value. So, say your bike is stolen, market value of the motorcycle is $6000 but you owe the bank $8,000 on your loan, comprehensive will only pay you the market value of $6,000. This is where…
Gap Insurance: …Gap insurance comes into play. Gap insurance covers the difference between what you owe to the bank or finance company on your bike, and what your insurance company will pay out as the market value or your motorcycle.
Uninsured/Underinsured Coverage: Uninsured/Underinsured coverage covers you in the event that an at-fault driver hits you and they can’t pay for the resulting damage whether it be motorcycle damage, bodily injury, or pain and suffering.
Read More: http://www.motorcycle.com/features/motorcycle-insurance-for-beginners.html
from Best Insurance Quote https://www.bestinsurancequote.io/motorcycle-insurance-beginners/
Friday, March 16, 2018
How to get cash for your life insurance policy
Dear Savvy Senior,
I have a life insurance policy that I’ve been paying on for years that I really don’t need any longer. I’ve been thinking about letting it lapse, but I’ve heard that I can actually sell it for a nice payout. What can you tell me about this?
– Interested In Selling
Dear Interested,
Selling a life insurance policy, even a term life policy that you don’t want or need any longer – a transaction known as a “life settlement” – has become a popular option among retirees in recent years that could use some extra cash. Here’s how it works.
A life settlement is the sale of an existing life insurance policy to a third party company for cash. Life settlements are typically best suited for people over age 65 who own a policy with a face value of $100,000 or more or someone younger who has experienced a significant change in health.
Historically, if an owner of a life insurance policy decided they no longer needed it, they would either let the policy lapse or turn it in for a meager cash surrender value. But now, with the life settlement option, you can actually sell your policy for more than the cash surrender value would be, but less than its net death benefit.
Once you sell it, the life settlement company then becomes the new owner of the policy, pays the future premiums and collects the death benefit.
How much money you can expect to get with a life settlement will depend on your age, health and life expectancy, the type of insurance policy, the premium costs and the cash value of your policy. You may be able to receive four to eight times more than the policy cash surrender value.
If you’re interested in a life settlement here are some things you should know:
Shop around: Because payout can vary, to ensure you get the best price for your policy get quotes from several companies. Also, find out what broker and transaction fees you’ll be required to pay. Coventry, the nation’s first and largest provider of life settlements, offers some of the highest cash payouts for life insurance policies. To get started, visit CoventryDirect.com or call 888-858-9344. To search for other providers or brokers, the Life Insurance Settlement Association provides a directory at LISA.org.
Be prudent: Life settlements are regulated in most states. Find out from your state insurance commissioner (see NAIC.org for contact information) if the life settlement company you’re interested in is properly licensed.
Protect your privacy: When you sell your life insurance policy, you will have to sign a waiver authorizing the release of medical and other personal information so that the buyer can determine how much to offer for your policy. Before accepting any offer, make sure that the company has procedures in place to protect the confidentiality of your information.
Understand the tax implications: The Tax Cuts and Jobs Act recently updated the tax treatment of a life settlement to be treated the same as the surrender of a policy back to the insurance company. This can be complicated, so be sure to consult a tax advisor.
from Best Insurance Quote https://www.bestinsurancequote.io/get-cash-life-insurance-policy/
If you work at home and don’t have this insurance, you could be at risk
There are several types of policies, depending on the nature of your work and who visits.
When Regina Mohr started her home-based business, Caliber Meetings and Events, she knew she needed insurance. “Luckily I have good relationships with all my clients,” Mohr said, “but if something were to happen, I don’t have a huge company to fall back on and a huge pocketbook.”
Being a meeting planner does not sound very risky, but Mohr points out she could be held liable if a drunk conventioneer were to damage a venue or if somebody were to trip overequipment that had been left out and get hurt. For situations like that, she knew she needed liability insurance, but she was not sure if she needed other kinds of insurance as well.
Fortunately, Mohr’s insurance agent, Mark Ahart of Ahart, Frinzi and Smith Insurance in Alexandria, Virginia, asked her a series of questions. Did she have employees? No. Did she meet with clients in her home? No. And so on.
Why was he so adamant about determining the correct insurance needs of her home-based business? “There have been cases where homeowners insurance carriers have denied liability claims because it was a business claim rather than a homeowner’s claim,” he explained. That could leave you hanging out to dry and paying big bucks out of your own pocket. “It’s huge peace of mind, knowing that I am covered, if something should happen,” said Mohr, “especially given how litigious people are these days.”
from Best Insurance Quote https://www.bestinsurancequote.io/work-home-dont-insurance-risk/
Thursday, March 15, 2018
U.S. Insurance Companies Underwrite Fossil Fuels, Deny Homeowners
U.S. insurance companies are trying to have it both ways on climate change, underwriting and investing in fossil fuel companies but raising premiums or denying coverage to homeowners impacted by increased floods and wildfires, Jacques Leslie wrote in an Op-Ed for The Los Angeles Times Tuesday.
Leslie pointed to a December 2017 study by California’s Department of Insurance which showed that instances in which insurance companies refused to renew coverage to homeowners in fire-prone counties increased by about 15 percent between 2015 and 2016.
“Insurers are increasingly using computer models to assess the risk of fires for individual homes and deciding that homes in some areas face too high a risk,” Insurance Commissioner Dave Jones said in a press releaseabout the study.
Jones recommended legislation that would ensure Californians living in high-fire-risk areas could continue to insure their homes.
Meanwhile, a 2014 Ceres study found that the investment portfolios of the 40 largest U.S. insurance companies contained a higher proportion of oil and gas bonds than average, Leslie wrote.
The attitude of U.S. insurance companies is particularly striking because, internationally, insurers are waking up to the real risks posed by fossil fuels.
An insurance scorecard published in November 2017 by Unfriend Coal, which Leslie cited, found that 15 insurance companies are divesting $20 billion from coal companies and declining to underwrite coal projects.
“The shift of insurers away from coal is now gathering momentum and may be approaching a tipping point,” the scorecard’s executive summary said.
However, that shift hasn’t reached the U.S. “So far, no American insurer has taken meaningful action on coal and climate change, and even industry giants such as Berkshire Hathaway, AIG and Liberty Mutual have remained completely silent about the catastrophic climate risks affecting their clients,” the summary continued.
Leslie suggested the U.S. insurance industry could pay financially for its selective denial about fossil-fuel risks. If climate-related lawsuits against fossil fuel companies, such as the suit brought by Oakland and San Francisco against Chevron, ConocoPhillips, ExxonMobil, BP and Royal Dutch Shell, succeed, then insurers might have to pay up on behalf of their clients.
The choices of insurance companies are important, because they have the power to stop new or existing fossil fuel projects by denying coverage.
Read More: https://www.ecowatch.com/insurance-companies-climate-change-2547518560.html
from Best Insurance Quote https://www.bestinsurancequote.io/u-s-insurance-companies-underwrite-fossil-fuels-deny-homeowners/
Wednesday, March 14, 2018
4 Best Bets to Invest in Top-Ranked Life Insurance Industry
The insurance industry seems well-poised for growth on the back of favorable operating conditions. Life insurers largely benefit from an improving rate environment owing to sensitivity to interest rates.
The Fed kept its promise of three interest rate hikes in 2017 and announced three more in 2018 as well as two in 2019. These moves reflect President Trump’s bias for higher interest rates and the central bank’s confidence in improving U.S. economy.
Though the rate is improving, it is still low and the magnitude is not enough to considerably benefit insurers. The life insurers have lowered exposure to interest-sensitive product lines and shifted to riskier asset like equities only to fetch in more returns from the policyholders’ claims. Nonetheless, improving investment income raises optimism in the stocks.
Gradual increase in interest rate will tend to lower hedging costs and coupled with control over underwriting expenses might further margin expansion.
Life insurers have redesigned and re-priced products, which should help write higher premiums.
Improving GDP (Fed predicts GDP to grow at 2.5% in 2018 and at 23.1% in 2019) and lowered unemployment rate (Fed expects it to decline to 3.9% both in 2018 and in 2019) among others indicate more disposable income with people opting for more insurance coverages.
On a positive note, the Life Insurance industry is ranked at #26, representing the top 11% of the Zacks Industry Ranks , having scaled by a notch from last week. This upswing was likely as there were three positive estimate revisions and none negative.
With respective to price performance, the industry has underperformed the S&P 500 index’s 18.6% rally in a year, registering 7% gain quarter to date. Nonetheless, the industry is undervalued at present.
Looking at its price-to-book ratio – the best multiple for valuing life insurers because of fluctuations in quarterly earnings – the industry has a trailing 12-month P/B ratio of 2.13, lower than the S&P 500’s 3.84. It is also trading near the low end of 1-year traded range of 2.10-2.40.
This seems the right time to invest in life insurance industry given its strong fundamentals, a favorable macro backdrop and undervaluation.
Assured Picks
It might be a daunting task to pick the right stocks for greater investment returns. Here comes our handy Zacks Stock Screener to help identify the best bets.
We shortlisted four stocks backed by a bullish Zacks Rank, a solid Value Score and northbound estimates in the past 60 days. Shares of these companies have also outperformed the industry in a year.
Primerica, Inc . PRI distributes financial products to middle-income households in the United States as well as Canada. The stock sports a Zacks Rank #1 (Strong Buy) and has a favorable Value Score of B. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 19.3% upward and moved 21.9% north for 2019 over the last 60 days.
Primerica also outpaced expectations in three of the last four quarters and has an expected long-term earnings growth rate of 10%. Shares gained 24.2%, outperforming the industry’s increase of 7% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here .
Reinsurance Group of America, Inc. RGA engages in reinsurance business. The stock carries a Zacks Rank #2 and has an impressive Value Score of A. The Zacks Consensus Estimate for 2018 bottom line has moved up 10.9% and 10.3% north for the metric in 2019 over the last 60 days.
Reinsurance Group exceeded estimates in two of the last four quarters and has an 11% expected long-term earnings growth rate. Shares gained 25.5%, outperforming the industry’s increase in a year.
Sun Life Financial Inc. SLF provides protection and wealth products and services to individuals, businesses and institutions worldwide. The stock carries a Zacks Rank of 2 (Buy) and has a solid Value Score of A. The Zacks Consensus Estimate for 2018 has been raised 6.4% and moved 8.2% north for 2019 over the last 60 days.
Sun Life surpassed estimates in two of the last four quarters and has an expected long-term earnings growth rate of 7%. Shares gained 20.6%, outperforming the industry’s increase in a year.
American Equity Investment Life Holding Co. AEL develops and sells fixed index and fixed rate annuity products in the United States. The company is a Zacks #2 Ranked player, carrying a Value Score of A. The consensus mark for both 2018 and 2019 has been increased 11.5% over the last 60 days. American Equity Investment also outshined expectations in the trailing four quarters.Shares gained 20.6%, outperforming the industry’s increase in a year.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Read More: https://www.nasdaq.com/article/4-best-bets-to-invest-in-top-ranked-life-insurance-industry-cm932853
from Best Insurance Quote https://www.bestinsurancequote.io/4-best-bets-invest-top-ranked-life-insurance-industry/
Tuesday, March 13, 2018
Using Life Insurance For Retirement Purposes
David Kleinhandler , Forbes Councils
When people hear the words “life insurance,” they immediately turn away from even discussing the matter. But what they may not understand is that it’s an asset — there to provide a stream of cash to help fund retirement tax-free and to pay for long-term care if you become ill.
The one fear we all have when getting close to retirement, even with all our planning, is whether we’ll have enough to last us through it. When doing your planning for retirement, you need to accept the reality that you could be retired for a long time and, if married, your savings may need to last for two lives — not just one.
Shutterstock
As you prepare for retirement, the money you are saving should be considered “safe money,” or funds you put away in secure conservative investments that will protect you from stock market volatility. What if you could invest and put the risk on the carrier and have downside protection? There are certain rules that will allow you to maximize the cash accumulation in your policy by following the 7702 guidelines, essentially funding to the maximum allowed under these guidelines. It’s basically creating a safe harbor without creating any penalties. Only an astute life insurance professional would know how to position these types of features correctly.
As you are contemplating retirement, it’s a common exercise to simplify your life by eliminating some of the things you no longer need. For example, you can eliminate monthly commuting costs and stop making contributions to the company 401(k) plan. If your kids are all grown and you’re on the verge of becoming an empty-nester, take a look at your home expenses and begin to think about a less expensive alternative. You may even consider canceling some or all of your life insurance policies. This is where you need to stop and realize exactly how the policies you currently own may have some value in your retirement.
As the nest begins to empty out, the need for life insurance begins to diminish. When you originally purchased your policy, you were probably looking at it as an income replacement tool to protect your family in case something happened to you and your income was lost. But, it is unrealistic to think that you may not still need that protection in retirement. Many retirees decide to re-enter the workforce for a variety of different reasons: to keep busy, for social interaction and to supplement their incomes. If that supplemental income is important to your retirement, your policy can continue to provide the same protection to your spouse during this period.
Your policy can also replace any income derived from your pension benefits, which may be either significantly reduced or eliminated entirely upon your death. The same holds true for social security benefits. When you pass away, your surviving spouse will only continue to receive the highest of the two benefits. The lower one will cease to exist.
In addition to income replacement, there are several other ways those policies you purchased can be beneficial to your retirement:
• Tax-Deferred Growth: If you purchased a permanent insurance product (whole life), then you’ve been building up cash for the entire time you’ve had it, and it has been growing on a tax-deferred basis. The dividends earned are considered a return of the premiums you’ve paid and are only taxable if the dividends exceed the premiums paid. You will not be required to pay any taxes until the policy is surrendered.
Read More: https://www.forbes.com/sites/forbesfinancecouncil/2018/03/06/using-life-insurance-for-retirement-purposes/#7663861c57f0
from Best Insurance Quote https://www.bestinsurancequote.io/using-life-insurance-retirement-purposes/
Monday, March 12, 2018
Sunday, March 11, 2018
The life insurance retirees don’t need
When one is retired, cash flow matters. For many people, life insurance premiums can be a large budget item, and over a 25-year retirement, can be an enormous outlay. I work mainly for retirees and like to make sure these long-term trends are needed and working in their favor.
Life insurance is definitely needed during many different points in life. Planning for the possibility of a breadwinner’s death, replacing income, paying off the mortgage, setting up children’s college funds, and providing liquidity to pay estate taxes are all excellent reasons to have life insurance.
However, those needs come and go. The mortgage gets paid off. One spouse retires. Children are grown and educated. Or most recently, there may be a need to reduce your life insurance coverage, because the likelihood of paying estate tax has been significantly reduced by the new tax package.
Do you just cancel the life insurance when that happens? Not without careful consideration, but consideration there must be. Often people do keep coverage that is no longer insuring any risks or serving a clear purpose. The premiums get paid out of habit, momentum or who knows why. Should you keep paying the premiums? Maybe not.
Many life insurance policies were purchased for paying an estate tax that is often no longer needed. I remember from when I started as an advisor that the federal estate tax exemption was $1,200,000 for a couple, and it is now above $22 million. That means you generally need to have an estate of more than $22 million to owe federal estate tax, with some basic planning.
While the estate tax exemption could be reduced in the future, as it has bounced around a bit over the last 25 years, it seems politically probable to not have the estate tax affect middle America, even upper-middle America. So, you may not need that insurance coverage any longer and may still be paying for it.
It could be worse than that. The policy may have been purchased with a projected interest rate that is triple or quadruple the interest rate actually earned, and it will likely implode in the future – end up being canceled before you die. After paying all those premiums?! Yes, it could run out of cash value and be cancelled.
We are still in what has been at least a decade-long period of extremely low interest rates, and the cash values required to be in your policy to pay or subsidize your future premiums may not be quite the cash value the original agent was hoping. That means you should be paying attention to your cash value life insurance policies if you want them to continue. Internal annual insurance costs go up exponentially in your 60s and 70s.
What should I do? Canceling a poorly performing (declining value/imploding policy) or no-longer-needed life insurance policy can have a significant tax cost. There are options on handling the cash value without taxation, or it may be best just to take the cash value. Evaluate your policies and ask someone who is not selling you anything.
An insurance agent can make a substantial sale replacing your imploding policy with a new one, and admittedly that may be the right move. But first, you might talk directly to your insurance company and ask them if your policy might likely continue at current interest rates. Ask them how your policy is doing. “Is the policy going to give the results I want with reasonable assumptions?” is a fair question.
Consider whether you just want to keep the policy so your family receives the extra dollars at your death. Are the premiums affecting your lifestyle? Most importantly, do you really have a need for the insurance? Be sure to consider all options and obtain all relevant information before taking any actions that could potentially affect your retirement.
Read More: http://www.capegazette.com/article/life-insurance-retirees-don%E2%80%99t-need/151855
from Best Insurance Quote https://www.bestinsurancequote.io/life-insurance-retirees-dont-need/
Saturday, March 10, 2018
Simply Money: What kind of life insurance do you need?
Tyler from Oakley: My wife and I have a 6-month old daughter. What type of life insurance should we be getting?
Answer: Life insurance is there to protect your family financially in case you were to pass away; it does that by protecting your stream of income. When selecting the right life insurance policy for you and your family, there are a few things you want to consider.
You first want to determine how much your family would need annually to support their lifestyle. You also want to factor in any debts that will need to be paid off, such as the mortgage or education for your daughter. Once you’ve determined the correct amount, you have two general options: permanent life insurance and term life insurance.
Term life insurance is suitable for most families if there’s a need for protection. With term insurance, you select a certain period of time you would like to protect. The most common policies are for 10, 20, and 30 years. So, for instance, if you think your daughter will be out of house, her education will be paid for, and the mortgage will be paid off in 20 years, you might opt for a 20-year policy.
Permanent life insurance, also sometimes called ‘whole life,’ is more expensive and covers your entire lifespan. It can also be more complicated. This type of policy is most appropriate if you have a child with special needs, a large estate, or business needs.
As a word of caution: this type of life insurance is sometimes sold as an ‘investment.’ However, the extra premium you pay for permanent insurance should never be considered an investment. You’re essentially betting that you’ll die sooner than the insurance company actuaries think you will. They have carefully calculated the time value of your excess payments (net of their profit and commissions paid) and return that at death with a little interest added on.
There’s also an option called ‘self-insuring.’ As the name implies, this is when you have enough in savings to cover your family and their expenses, so no insurance policy is needed.
The Simply Money Point is that if you’re looking for a more affordable option, term life insurance may be the way to go. However, since everyone’s situation is different, Simply Money Advisors recommends working with a trusted financial planner (preferably a Certified Financial Planner
). A personalized financial plan can help determine the best type of insurance – and the amount – to meet your family’s needs.
Anthony and Becky from Western Hills: Should tax reform change how we think about saving for retirement?
Answer: As of right now, the Tax Cuts & Jobs Act doesn’t have too much of a direct impact on your retirement savings accounts. But there are a few considerations to keep in mind as you plan for retirement.
First, there’s a good chance your take-home pay is now a little higher since this new law lowers tax rates. Use this to your advantage and save that money. Even better, save the money in a Roth IRA if you’re eligible (or Roth 401(k)) – you pay taxes on the contributions now, but you’ll get tax-free growth. This essentially ‘locks in’ your tax rate at these lower tax rates.
Second, there’s been a big change to what’s called a Roth IRA ‘recharacterization.’ Under the new law, recharacterization will no longer be allowed. Here’s what that means: As explained above, with a Roth IRA, you contribute after-tax dollars, meaning when you take a distribution at age 59 ½, you don’t have to pay taxes on your earnings (assuming you’ve also held the account for at least five years).
In the past, some retirees would convert their traditional IRA assets (and its pre-tax money) into a Roth IRA account at the beginning of each year and pay the taxes on that conversion. However, if the market didn’t do well, or an increase in income bumped them into a higher tax bracket, they could decide to recharacterize that money – essentially, undo the conversion.
Now, if you do a Roth conversion, you must be 100% sure that’s the direction you would like to go and it makes sense for your financial goals and objectives. There are no longer any chances for do-overs.
The Simply Money Point is that no one fully knows the direction tax laws will take in years to come, so it’s important to save what you can now and take advantage of tax-favored accounts, such as a Roth IRA or Roth 401(k). Work with a trusted financial planner to strategically plan as much as possible.
Read More: https://www.cincinnati.com/story/money/2018/03/08/simply-money-what-kind-life-insurance-do-you-need/407712002/
from Best Insurance Quote https://www.bestinsurancequote.io/simply-money-kind-life-insurance-need/
Thursday, February 22, 2018
Will a DUI Affect Car Insurance in Wisconsin
For a car insurance quote: https://www.bestinsurancequote.io
from Best Insurance Quote https://www.bestinsurancequote.io/will-dui-affect-car-insurance-wisconsin/
Tuesday, February 20, 2018
Flooding not covered under your regular homeowners insurance
he combination of melting snow and heavy rainfall will bring Michigan’s already swollen river levels up — which means that flooding is possible. A flood watch is in effect for all of West Michigan through Wednesday.
To be covered from flood damage, property owners must purchase a policy from the National Flood Insurance Program (NFIP). Regular homeowners insurance won’t cut it.
“People may think they don’t need flood insurance, but considering that even just an inch of water can require a property owner to replace carpet, drywall, floor boards, moldings, doors and other belongings, it may be a coverage that they want to purchase from the federal government program,” said Lori Conarton, communications director for the Insurance Alliance of Michigan.
Flooding can occur in any season in Michigan, and NFIP estimates that 90-percent of all natural disasters involve flooding. Small amounts of water can cause tremendous damage.
Property owners should also be aware that coverage for water back up in basements — such as drain and sewer back up — is excluded from the flood insurance policy. That is optional coverage through most insurance companies. Coverage and limits vary by company, so check with your agent or company about specifics. Some insurers include full coverage for sump pump failure while others specify items that are covered.
Vehicles damaged in floods are covered by the comprehensive portion of your auto policy. Comprehensive coverage is optional in Michigan, so you should check with your insurance agent to make sure your covered.
Read More: http://www.wzzm13.com/news/local/michigan/flooding-not-covered-under-your-regular-homeowners-insurance/520592237
from Best Insurance Quote https://www.bestinsurancequote.io/flooding-not-covered-regular-homeowners-insurance/
Monday, February 19, 2018
In eastern Wisconsin, we’re using fewer health-care services and still paying more
People who get health insurance through their employer are going to doctors and hospitals less, but they and their employers still are spending more money on health care.
The reason: Prices keep going up.
From 2012 through 2016, health care spending for commercial insurance plans increased by an estimated 17.3% per person in eastern Wisconsin, compared with 15% nationally, according to an analysis of insurance claims by the Health Care Cost Institute.
from Best Insurance Quote https://www.bestinsurancequote.io/eastern-wisconsin-using-fewer-health-care-services-still-paying/
Car insurance rates hit all-time high – study
National car insurance premiums are at an all-time high, shooting up 20% since 2011, according to insurance search engine The Zebra.
The Zebra released the findings in its annual State of Auto Insurance Report. The report showed extreme pricing volatility in recent years and raised questions about how the industry is reacting to changes in weather, driver behavior, legislation and technology.
“Insurance companies leverage thousands of data points to determine car insurance rates – things like your age, driving record, and even your credit score,” said Adam Lyons, founder and executive chairman of The Zebra. “Today, we’re also seeing extraordinary forces like overnight tech innovation and devastating natural disasters impact rates.”
The report examined more than 52 million auto insurance rates across all US zip codes. Among its key findings:
- Car insurance rates in the US are higher than they’ve ever been. The national average annual premium is $1,427 – a 20% hike from 2011. Some cities have an average annual premium of more than $6,000.
- The most expensive state for car insurance was Michigan, followed by Louisiana and Kentucky.
- The most expensive city for car insurance was Detroit, followed by New Orleans and Hialeah, Fla.
- Care insurance rates have shown significant volatility. In some states they’ve increased more than 60% since 2011, while others have seen increases as little as 1%. Ten states actually had net decreases, some by up to 20%.
- Rate changes from one year to the next were as high as 9% nationally and up to 45% in some states.
Read More: https://www.insurancebusinessmag.com/us/news/breaking-news/car-insurance-rates-hit-alltime-high–study-92566.aspx
from Best Insurance Quote https://www.bestinsurancequote.io/car-insurance-rates-hit-time-high-study/
Thursday, February 15, 2018
Wednesday, February 14, 2018
How To Buy Life Insurance (And Live To Tell About It)
Bob MacDonald , Forbes Councils
Are you considering or being pressured to buy life insurance? Join the crowd. Life insurance is one of the most ubiquitous financial products to ever be sold. While life insurance can be a valuable tool in any financial plan, knowing if you even need it — along with the right amount and type to buy — can be challenging. There are questions such as: How do I know if I need life insurance? If so, how much life insurance do I need? What type of policy should I buy? How do I know if I am getting the best value and price for the life insurance I buy?
Purchasing life insurance is often tedious, intimidating and complicated, but it does not have to be that way. The insurance companies may offer multiple confusing policies and throw around a lot of jargon that sounds like a foreign language, but in reality, the concepts are simple. Once you understand the true basics of life insurance, your decision can be straightforward and result in the best buy for you.
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What you should know about life insurance:
The purpose of life insurance (and, really, its only value) is to offset the economic cost of dying. If you have a spouse or young children who would be faced with financial hardship in the event of your death, life insurance proceeds can solve that problem. If you are a key person or partner in a business, life insurance can help to stabilize the business in the event of your death.
If insurance companies try to convince you that a life insurance policy is anything other than a way to replace your income or long-term economic value to a family or business in the event of your death, they are doing so for their benefit, not yours. Life insurance is not an investment — it is not a way to make money or an effective tax hedge.
There is an uncomplicated way to decide if you even need life insurance. Ask yourself: If I die, will anyone I care about suffer an economic adversity that I want to prevent? If the answer is no, then you don’t need life insurance. If, however, you want to protect others from the potential economic cost of your death, the right type of life insurance is the best way to accomplish that objective.
If you need life insurance, what type should you buy?
Life insurance companies have more confusing policy options than a Chinese restaurant. But when it comes down to it, all insurance companies pine to sell you some form of what they call “whole life” or “permanent insurance.” (Both are subtle marketing terms used to suggest you should buy and keep paying premiums on the policy for your whole life.) This type of policy has been the backbone, best selling and most profitable product of the life insurance industry for years. So-called “whole life” may have been a reasonable option in the 20th century when the consumer had few other financial options, but that is not the case today.
Read More: https://www.forbes.com/sites/forbesfinancecouncil/2018/02/05/how-to-buy-life-insurance-and-live-to-tell-about-it/#2eb704b073a1
from Best Insurance Quote https://www.bestinsurancequote.io/buy-life-insurance-live-tell/
Tuesday, February 13, 2018
Life insurance can be a bargain not to miss
Getting married, buying a house and having kids are all good reasons to purchase life insurance. But if other financial priorities keep getting in the way, there’s an economic consideration if you’re a Millennial (no matter how much you hate being called one): Getting life insurance now is probably a lot cheaper and easier than you think.
Most people, but especially young people, overestimate the cost of life insurance, a study found, and a large portion of people in their 20s and 30s mistakenly think they can’t qualify. That’s according to the 2017 Insurance Barometer Study by Life Happens, a nonprofit supported by insurers and brokerages, and LIMRA, a global life insurance research and consulting group.
Do you need life insurance?
To decide if you need life insurance, ask this question: “Would someone be financially worse off if you died tomorrow?” says Rachel Podnos, a certified financial planner with Wealth Care LLC in Washington, D.C. If anyone depends on your income or would be stuck paying your debts, then the answer is yes.
Getting married, having children and buying a home are common triggers for buying life insurance.
You might also think about getting life insurance if you have private student loans. While federal student loans are discharged when the borrower dies, rules vary by lender for private student loans. Parents who cosigned private loans would be on the hook for the debt if you die and the lender required payment.
from Best Insurance Quote https://www.bestinsurancequote.io/life-insurance-can-be-a-bargain-not-to-miss/
Monday, February 12, 2018
Giving New Life To Life Insurance
Life insurance companies are under pressure. Their traditional business model is stagnating. Since 2014, premiums for US life insurers have fallen at an average annual rate of 4%, the industry’s return on equity has been flat and persistently low interest rates continue to depress returns (see Figure 1).
Insurers have been slow to adjust to these new realities. Despite their efforts to trim expenses, many are still suffering from bloated costs. Operating expense ratios, which measure noncommission operating expenses as a percentage of direct revenue, have deteriorated at leading US life insurers for the past five years.
Distribution costs have grown at an average annual rate of 5% since 2010. Life insurers rely on agents for more than 90% of their policy sales. All told, agent commissions and distribution expenses account for about 60% of a typical insurer’s operating expenses, and a lack of growth in agent productivity has contributed to a rise in overall costs (see Figure 2).
Life insurers have tried for years to contain costs, but they have little to show for it. By stinting on investments in operational improvements, they may have actually hindered their ability to do things more effectively. Meanwhile, costs in areas such as oversight and compliance have continued to creep up.
To make matters worse, life insurers aren’t pleasing their customers. The average Net Promoter Score® for US life insurers is 4.5%, according to Bain & Company’s survey of insurance customers in 20 countries (see Customer Behavior and Loyalty in Insurance: Global Edition 2017). Life insurers rely on a sales-led, agent-based approach to marketing, resulting in limited knowledge of their customers. Their customers, in turn, can display minimal connections, or loyalty, to the brand.
One way insurers are trying to address these problems is by expanding their use of digital channels and data analytics. But they are late to the party. Life insurers are saddled with cumbersome and costly processes and legacy systems, and they have long underinvested in IT. In 2016, insurers spent 3.2% of their annual revenue on IT, less than half the 6.8% spent by banks. Some 70% of life insurance executives surveyed by Willis Towers Watson believe they lag behind other financial services sectors in the adoption of digital technologies.
When it comes to technology, insurers are running to catch up with their customers. They’re also trying to fend off challenges from insurtech upstarts that aren’t encumbered by outmoded systems. Insurance customers, particularly those under the age of 35, are increasingly turning to mobile apps to research policies, get advice and buy products.
Leading insurers have begun to realize that digital is only a piece of the solution. To meet the challenges of the marketplace they need nothing less than a total transformation of the way they do business. Their tardiness in digital is symptomatic of a larger problem. They are steeped in organizational cultures that have been slow to embrace change.
Life insurance is rooted in actuarial science. All insurers have to calculate and manage risk; that’s an essential part of what they do. But this risk-containment ethos can permeate the entire company, resulting in overly cautious and internally focused organizations. Insurance executives surveyed by Bain & Company give their companies relatively low grades for creating an environment that sets high expectations, holds people accountable and rewards innovation (see Figure 3).
Start with a bold vision
Leading life insurers recognize that organizational and cultural issues are at the heart of their lingering cost problems, distribution challenges and uneven customer experiences. They know that lasting transformation will be possible only if they overcome inertia and fundamentally change behavior. These companies approach transformation as a multipronged process:
- They begin by laying out a bold vision to shake up the organization and the way it operates. Many set an ambitious goal to cut costs by as much as 25% within two to three years. They plan to use the savings to invest in the technologies and talent that will enhance the customer experience, lift productivity and improve profit margins.
- Once they have articulated their goals, companies construct an operating modelthat instills accountability, weeds out underperformers and rewards initiative. They create new, customer-facing positions and fill them with high achievers. They reorganize their go-to-market capabilities around customer segments instead of functions. They also overhaul their technology operations—shifting centralized resources closer to actual business owners.
- As their new operating framework takes shape, insurers begin to attack their legacy cost base in earnest. They use technology to simplify and streamline entrenched processes, from sales to underwriting to fulfillment. They take a hard look at customer transactions that require multiple handoffs from department to department, including some that may still feature handwritten and printed forms that are transported from place to place in manila folders.
One company’s transformation experience
For one leading life insurer, the first step in the transformation process was to candidly assess its position. It faced slowing top-line growth, stagnant productivity, a major technology deficit—and a lack of progress in areas it had already established as priorities, including digitalization and the customer experience.
The company was encumbered with legacy technology, and it didn’t set clear performance expectations for employees. That resulted in limited accountability for underachievers and insufficient incentives for those who excelled.
The company began its transformation by laying down a marker. It aimed to increase earnings by about 40% in five years. The company knew that it wouldn’t be able to meet its earnings targets from the projected growth in its core market. It would have to cut operating costs by 20%. Achieving these ambitious objectives would require something more than business as usual, something more radical and long-lasting than the incremental approaches that emanated from the standard annual budgeting process.
The company defined a set of guiding principles that were critical to ensuring that the transformation aligned with its long-term goals:
- put the customer first (easier said than done);
- reduce complexity throughout the organization;
- accelerate digitalization and automation;
- stop doing activities that no longer add value, and invest in those that do; and
- make tough decisions and hold people accountable for performance.
These principles gave the leadership team license to think broadly as it transformed the business.
The company then set about building an organization that would focus on serving the customer and would encourage agility and innovation. It shifted from a model that was organized around functions, such as underwriting, marketing and sales, to a structure based on business units that focused on major customer segments, including retail and corporate. It moved the IT development staff from the corporate level into the business units—fostering much closer collaboration on technology. The central IT group, meanwhile, narrowed its focus to infrastructure management, software development standards, and tools and training.
The company conducted a broad review of its talent and developed a robust performance management system. It raised productivity expectations and enriched its talent pool with internal transfers and external hires. The company successfully managed this process, so that by the end, close to 40% of roles were filled with new talent—both internally and externally sourced.
As the company tackled its operating model, it also accelerated changes in marketing and distribution. Over the years, complexity and inefficiency had crept into the distribution system, with overlapping sales organizations supporting multiple brands and channels. The company followed a traditional sales-led model, where agents bore the primary responsibility for interacting with customers. The company, which had a large sales management organization, was expending significant resources to recruit, train and support these agents.
When the company conducted a zero-based review of the outlays to agents, it found that its support model no longer aligned with the agents’ needs. Agents wanted more sales and technical training, as well as technology, to help them become more productive in an increasingly digital world. Having a state-of-the art customer relationship management (CRM) system meant more to the agents than attending company-sponsored sales conferences in exotic locales.
Read More: http://www.bain.com/publications/articles/how-to-breathe-new-life-into-life-insurance.aspx
from Best Insurance Quote https://www.bestinsurancequote.io/giving-new-life-life-insurance/
Sunday, February 11, 2018
The Golden Rules Of Buying Indexed Universal Life Insurance
Getting an indexed
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universal life insurance policy tailored for you can be a daunting task. Why? Because universal life insurance was designed to be flexible, which means there a lot of options to consider. In fact, if you took some time to shop online, you’d likely end up empty-handed.
To help you get a handle on the topic, I reached out to Tom Murphy, President of Murphy Financial services, who specializes in indexed universal life insurance.
Below are four golden rules to remember when considering indexed universal life insurance.
Rule #1: Shop your broker, not your companies.
This is where the internet can get you in trouble. There are tons of calculators and companies to be found on search engines that will try to persuade you to make a hasty decision, typically by pitching the cheapest rate. The most important item to remember about IULs, however, is that one size does not fit all.
“The fortunate thing for consumers is they have many strong options when shopping for permanent life insurance such as an IUL. The unfortunate thing is they have many options,” says Murphy.
I wholeheartedly agree with Tom. This is why it’s more important to shop your independent agent versus trying to shop all the companies on your own. Find an independent agent who specializes in indexed universal life insurance, not just term or whole life, and let them shop for the best options that meet your specific goals.
Having a strong independent agent can have a drastic impact on the quality of your policy.
Read More: https://www.forbes.com/sites/forbesfinancecouncil/2018/01/29/the-golden-rules-of-buying-indexed-universal-life-insurance/#28f743c180b9
from Best Insurance Quote https://www.bestinsurancequote.io/golden-rules-buying-indexed-universal-life-insurance/