Do Belong sensationalism in Personal Finance column
Just as our own mission to the LIFE Foundation, the work of a journalist personal finance should be to inform and educate people to help them make informed financial decisions. Yet in a recent article in SmartMoney (10 things life insurers do not tell you), journalist Jilian Mincer leads his readers to the conclusion that the life insurance industry is not to be trusted and may even be out enjoying yourself.
suggest that life insurers will not pay a claim when an insured dies is simply wrong. the life insurance companies pay billions of dollars in life insurance benefits each year. According to the ACLI, the life insurance beneficiaries received $ 59 billion in 09, which does not begin to take into account the amount of these same companies pay for pensions or disability insurance and beneficiaries the long-term care insurance. In fact, it's hard to find a better example of financial services companies that are well on their financial obligations, and looking for the best interests of their clients in the life insurance industry.
Life insurers are stable and regulated and in extremely rare scenario encountered problems, there are safeguards in place to ensure they will be able to keep their promises to policyholders. Pointing decades old, obscure situations only complicate the problem when there are stories everyday real people who benefit from policies and there are easy steps policyholders and beneficiaries can take to take responsibility to seek benefits they think they are due.
In addition, each time you hear one-size-fits-all financial advice, you know that you should not trust. Say "word is all it takes" only tell part of the story. the term life insurance is certainly a cost-effective way for many people to obtain life insurance, but there are situations where a professional qualified insurance would not advise either the only insurance product life into your financial portfolio. The parents of a disabled child who needs long-term care services for the rest of his life have a need for life insurance beyond 20 or 30 years, if they want to provide for that child after they are gone. Or what about the person who has a family history of heart disease and runs the risk of being diagnosed after their term insurance is exhausted? Permanent life insurance provides guaranteed insurability, not to mention the cash value that can be accessed no matter what life throws your way.
The latest figures from LIMRA show that nearly two-thirds of insured adults have some type of permanent life insurance. I doubt that many people so willingly let go of their money if they thought it was a bad deal. The truth of the matter is that people who purchased a permanent life insurance have taken the time to sit down with an insurance advisor they trust and assessed their individual needs and determined that it made sense.
Thirty percent of US households now have no life insurance and more than half (58 million) say they need more of the highest-ever level, according to LIMRA. This is not the time to be misperceptions that fuel which could discourage people from getting the financial protection they desperately need. It is simply unnecessary for a respected publication like SmartMoney have titles like "we're in bed with your boss" and "released does not mean that we will pay." Next time, leave the sensationalism and gossip columnists keep out of personal finance page.
Safeguarding the Caregiver With LTCI
For many families, this not only creates an emotional crisis but financial. Medical costs have led to about 50 percent of bankruptcy filings in the United States, according to Health Affairs Journal. As for long-term care, an estimated 75 percent of people 65 and older will eventually need long-term care, while women face a 50 percent greater chance than men to enter a retirement home after 65 years
Combine that with the increase in overall life expectancy for both sexes and statistics reflecting that women live longer than men in five years, and it is not surprising that the insurance long term care has grown from the baby-boomers, especially among female consumers. According to a new study published by the American Association for Long-Term Care Insurance, life insurance policies of sales with long term care benefits increased by 79 percent for large companies' insurance industry, with women responsible for 60 percent of these purchases.
long-term care insurance protects against financial risk posed by the possible need for long term care or in a nursing home or at home. It comes into play when, following a chronic illness or disability, a person needs long-term care for an extended period of time. While Medicare or Medicare will cover doctor and hospital bills, according to the chosen policy, the assurance of long-term care will pay for a wide range of services and procedures, ranging from man and middle guard. This has become increasingly important as the cost of care increases, with current figures putting average full-time at the nursing home at $ 69,000 to $ 78,000 per year, while eight-hour health care home can cost $ 43,000 to $ 70,000 per year.
And it's not just the elderly who need such coverage. Accident or a debilitating illness at any age can lead to a need for care, with estimates indicating that 40 percent of patients receiving long term care are under 65
For example, one of realLIFEstories is Barry Shore, a real estate executive who, at age 55, was diagnosed with Guillain-Barre syndrome. Fortunately, Shore and his wife had already bought both disability and long term care policies of insurance, which together have replaced more than half his previous income and provided funding for home care and therapies not covered by his medical insurance.
And for women who are on their own with no family member available to provide care after a health crisis, long-term care policies offer the peace of mind that their needs will satisfied with the standard of care they wish.
The LIFE Foundation recommends that consumers, men and women, ask several important questions when considering to purchase long term care insurance.
Where can I get long-term care coverage? Over 100 companies now offer coverage, usually available through groups (typically employers) and individuals.
What types of long term care policies? most are "costs" policy (the insured is reimbursed for actual expenses for services received up to a fixed amount per day, week or month), while some are "compensation" (pay to a fixed benefit amount regardless of what the insured passes). "Integrated policies" or policies with "common benefits" provide a total amount which can be used for different types of long term care services. life insurance policies with long-term care benefits will, in certain circumstances, pay a portion of the benefit of life insurance to the insured for long-term care services instead of the beneficiary death of the insured.
What will be the cost of the premium? This depends on many factors, including the age of the insured, the State, the level of benefits and the length of time until the start of benefits. LIFE recommends consulting a representative of a long-term care insurance, an insurance agent or financial advisor for specific cost and coverage information.
For more information on long-term care policies and downloadable Guide AHIP long term care insurance, click here.
Small business owners should answer questions today
If I asked you to ballpark the percentage of companies in the US which are small businesses, would you? 25%? 50%? Maybe 75%? The answer is surprising: It is 99.7%, according to the US Small Business Administration. And these companies employ over half of all private sector employees. Here are some additional statistics that may surprise you. Small businesses ...
• Pay 44 percent of private payrolls in the United States.
• generated 64 percent of net new jobs over the past 15 years.
• Create more than half of the nonfarm private gross gross domestic product (GDP).
• Hire 40 percent of high tech workers (such as scientists, engineers and computer programmers).
When you watch the news and read the newspaper, so much space is taken over large companies. But it is clear from these figures that small businesses are a valuable national resource and should be treated as such.
No company is immune to the vagaries of the economy and the forces beyond the owner's control. Life happens to people and businesses. So if you are a small business owner, you need to ask yourself these questions:
• What will happen to my business if I die
• What will happen to my business if I become disabled [?
• what will happen to my business when I retire?
• What will happen if certain key employees die or become permanently disabled?
• How can I ensure that my company will be able to overcome unexpected financial difficulties?
The answers to these questions are probably things like a purchase and sale agreement, overheads insurance company, the keyperson insurance and individual disability and life insurance. His formidable? It does not need to be. The videos on this small business planning page can help you with some of the important bases. Then, contact your agent or adviser to get help that is tailored to your specific needs. If you do not have an advisor, be sure to watch the video that gives you pointers on finding one that is right for you.
Life Insurance: Why do I need? What is he doing?
So why do you need life insurance?
What often comes to mind when you think life insurance is that you can use it to pay for final expenses. You've seen the ads: funeral expenses, funeral expenses and medical expenses can add up to a hefty amount. The last thing you want is for your family to assume this additional burden. Life insurance can be used to plan these final expenses. Permanent life insurance is available in various amounts, so you can choose a death benefit that meets your needs.
But there are other considerations to keep in mind. You can use life insurance ...
As mortgage protection. Whether you live by yourself, with a spouse or significant other, you may want to buy life insurance as a mortgage protection. Think about it: You do not want the person you live with being homeless if you die unexpectedly, do you? Life insurance can be used to repay a mortgage balance. Just select a term that matches the duration of your payment period of the mortgage. Some companies even offer decreasing term insurance, which means that the death benefit decreases as well as the balance of your mortgage.
For income replacement. You and your significant other may have planned for a future based on two incomes, but if one of you dies unexpectedly? Life insurance can be used to replace lost income so that the survivor can maintain the same standard of living.
To finance college. Yeah, I know. You have children, so that it only applies if you do or if you have grandchildren, you want to help. Have you seen tuition rates lately? Life insurance can help pay for a college education. If you die, the death benefit can be invested and grow potentially the amount needed when your children or grandchildren reach college age. If you have permanent policies, the cash value can be used to help fund tuition. Feel better knowing that you helped prepare for the future, even if you are not there to see it.
There are advantages also some additional provisions, if you do you can not be aware of.
protect inheritances. If the beneficiary of a life insurance policy is a person appointed and not your estate, the death benefit is exempt from probate.
Incontestability. After the policy is in force for two years, it becomes undeniable, which means that the policy can not be revoked, unless it was obtained fraudulently.
free from the claims of creditors. In many states, the cash values of life insurance policies are exempt from the claims of creditors if the policy is owned personally.
So, are you beginning to see the need for life insurance? You call your agent now, right? Do not put it off! Remember, the younger you are when you get the insurance, the higher the cost and the easier it is to get approved.
The 8-Pound ... Fierce Defender against life insurance?
At some point after birth * of our second child, my husband and I, like any good, responsible (even reluctant) adults, has decided to seek insurance extra life. You know, because as horrible as it is to contemplate, we are mature and grounded in reality enough to know that bad things happen. In addition, we look at a lot of movies, so we realized that it was essential to ensure that the other person would be expected if one of us was hit by a bus' runaway (thank you, Keanu) or train (Denzel) or something more suburban like a rogue lawn mower (STEVEN KING GAAAAH).
Anyway, when you apply for life insurance, you are sometimes given the choice of 1) a place to go for some checkups thingies, including blood tests, or 2) to have someone come to your house and do them. As I am not a fan of A) places or B) who do things, I opted for home testing.
Of course, I forgot the part where a "home testing" actually takes place, uh, in your home. Where are your kids. ... And all their things and disorder and other things. And your dog barking thinking set foot on the premises every person must be barking at the point of deafness.
The guy who showed up for my home testing was perhaps the crankiest person I've ever met. His mood did not improve once he realized that I had ... oh, horror, CHILDREN. Small. sticky. the Smartalecky who welcomed him at the door with shouts of "DAD!"
He was there to stick needles in ME and take blood from me and I basically spent the whole visit by trying to get comfortable with confidence that my children are not going to touch or sneeze on it or otherwise infect him. **
They, however, will beg in turn standing on the small scale that he had brought. And show that toy! And this toy! And look, here's Lightning McQueen and is a famous race car and Mater and also tractors!
"So, are you having children?" Asked he took my blood pressure.
"Um, we're not sure yet," I l I said worried, worried that he might take this answer and mark down on a form as a clear sign of mental instability, MUST bE COMMITTED pAS INSURED.
"Hrrmmph," he responded.
I do not expect everyone to love my children, of course. I mean, they are tacky. they are sometimes nothing more than walking germ containers.
I do not expect everyone to love my dog, either, which is why I closed his little 8 pounds yappy self in the bathroom when Mr. Bleeding happened. it is small and safe, but I've come to accept it STILL scares the crap out of non-dog people. I do not take personally or try to tell people that they are ridiculous because it is the size of a loaf of bread and equally fierce, so I tried to take child obvious terror of that guy in the same stride.
We were almost finished with all health business when suddenly ... DOG. One of the children had let her out of the bathroom and ooooooooohhhhh lawdy she was crazy. She came barreling into the room, nine kinds of hysteria to be denied the chance to defend my honor against this intruder, and ...
M .. Bleeding fell to his knees and began to speak in baby talk and had my dog in her arms in about 15 seconds flat. He said it is the cutest little thing he had seen all day schmoopsie Poopsie poo. Awww.
And that was that. I was later approved for our additional policy, which was good, because if I ever have to go through a home test again, I'm not sure the kids would enjoy being locked in the bathroom instead of dog.
* toddlerhood completely still qualifies for "at some point" criteria .
** LIES
Boomer women have to start planning-Now
We like to think that when we retire, we will have time to do all the activities that are on our "bucket list. "We are going to travel, spend time with friends and family, to explore new possibilities that will improve our lives and expand our sense of possibility. But to have retired from the life we desire, we need to start planning now. in his post, is 10 retirement magic number? Marvin H. Feldman, CLU, CHFC, RFC, president and CEO of the LIFE Foundation, highlights the results of a Lincoln Financial Group study identifies four behaviors that contribute to retirement success:
- Getting advice from a financial professional
- participating in a pension plan sponsored by the employer or the IRA
- Backup regularly and make additional contributions over the years, "energy saving"
- Have an investment strategy
Unfortunately, the opposite often occurs. There is little or no advance planning to retire in the form of higher savings and investment, and focus more on what we might call wishful planning, hoping the additional retirement income may come the sale of the principal residence (despite the recent uncertainty in the real -estate market) or an expected inheritance. The result? A retreat in danger, at a stage where earning capacity may be severely hampered, if not impossible.
Although there is no doubt that a financial planner can provide useful advice on this investment vehicle will better provide the "gold" for the "golden years" you must also engage in pre-retirement self-education: this calculation, you will need after retirement, income options investigation and initiate a plan that will give you the future you desire
[1945008dépensesderetraite] Calculation
According to Penn Mutual Worth for Women website, it takes about 80 percent of pre-retirement income to maintain a comfortable life, which equates to $ 60,000 for someone had been earning a pre-tax salary of $ 75,000. (You can use the calculators on the site to help.) While some work-related expenses can be reduced (business meals, clothing costs, transportation costs), other off-gos budgets may increase. Health care may cost more, while inflation may lead to higher costs for everything from fuel to food. By calculating what your post-working living expenses will be and what you should save now supplement your retirement income, you will be better prepared for the day when you cash your last paycheck.
pension
study financing options
Although the investment and retirement accounts are two ways to build a nest egg, there are additional options in the pre-retired section / retired life, one of which is a permanent life insurance policy. Although the main objective of the policy is to provide lifetime protection, it also accumulates a cash value on a tax-deferred basis, providing a source of funds that can be used for any purpose, including as retirement income.
Another strategy is to buy a life annuity. It is sort of DIY pension plan, you provide a specific lump sum to an insurance company and in return, they provide a guaranteed stream of regular payments for any period you have chosen. (The Insurance Information Institute has an informative section on annuities while immediate annuities, you can calculate your annuity payments.)
Finally, disability and ensuring long-term care can also help protect your retirement savings. The first provides an income if you are unable to work due to illness or injury (protecting your current savings for post-retirement use), while the second covers the cost of using health care home, an assisted living facility or a nursing home. LIFE Calculator disability insurance needs helps you assess the income you need to maintain your current standard of living if you become disabled, while the long-term care insurance section provides answers to questions about the assurance of long-term care.
Initiate your lifestyle retirement plan
Start by determining what stage of life of retirement you are, based on this breakdown provided by Boomertirement website.
- working Boomer: 10 years and counting to retirement
- Near the Boomer Retirement: Less than 10 years until retirement
- Restated baby Boomer: No more work
If you have reached the stage of retirement, it is not too late, said Boomertirement. You still need to live within your means, since your retirement could last 20 to 30 years. You also need to make plans now regarding the distribution of your assets to your heirs, to reduce the tax consequences. (More tips are available on Living Well in Retirement section on value for Women website.)
The bottom line is to be proactive rather than retirement planning reagent . Take action now and the years of your post-employment the best years of your life!
The Tsunami Silver
I read an article in the New York State Bar Association Journal by Robert Abrams who discussed our aging population and money from the tsunami. The article included some interesting and disturbing statistics. 
- In 2030, one in five Americans will be 65 or older.
- As we age, life expectancy increases. Individuals who are 65 years of age can project they will live into their late 70s or early 80s Some will live well into their 0s, and some will become centenarians.
- Millions of Americans have or will suffer from temporary and / or permanent mental disability.
- More than 5 million Americans have Alzheimer's disease, and that number is expected to increase significantly over the next three decades.
- millions of Americans do not have advance directives such as a power of attorney or health care proxy, or they have documents that are obsolete or have been executed incorrectly.
- because of the absence of advance directives and / or resources (money), many Americans become subject to costly guardianship proceedings and contested creating stress on family members who can not agree on health guidelines or asset allocation.
- millions of Americans have either failed to develop a succession plan and / or have an estate plan that is either incomplete and / or will not be implemented in accordance with their wishes because of the non- compliance and / or lack of familiarity with "the law." This requires the advice of a lawyer.
- families are the centerpiece of American life. Many older Americans have been married two or more times. Many have concerns about other family members, including adult children with special needs and their parents so their parents! How many of you reading this are or will be taking care of your aging parents?
This demographic explosion, the tsunami of money, can forever change the American way of life.
The article also revealed that when it comes to preparing for the elderly years, there are three kinds of people :. Geriatric Gamblers, procrastinators planning and Pragmatic Planners
geriatric Gamblers: are risk takers who choose not to plan for the elderly years, even if they know such inaction increases the likelihood that 'they and their families will needlessly suffer negative consequences when they meet one or more of the vagaries of life
Procrastinators .: planning they recognize the importance of planning, but they believe there is no reason to provide for older years today. Preparation for older years can wait until tomorrow, assuming, of course, there is a future. This may have adverse consequences
Pragmatic Planners :. Although they can not predict or control the future fully, they acknowledge that at least they can prepare for these questions, they are likely to face. The main objective of pragmatic planner is to minimize the strain on themselves and their family members when difficult challenges arise, such as the need for long term care.
Unfortunately, not enough of the Silver Tsunami are or will become proactive and pragmatic planners, but it is clear that the use of family, friends and government programs are not a good option, even if it is the default choice. Perhaps the time has come to take the lead and to reach out to your estate planner, lawyer care to seniors and financial advisor to create a comprehensive plan for you.
When did stuffing money under the mattress Become a pension plan?
This is what Linda Koco, Contributing Editor of AnnuityNews, wrote in the article annuities rival silver mattress, on the basis of Allianz study on the use of annuities for retirement savings. It found that the difficult economic situation is causing consumers to make difficult retirement savings choice between annuity and other pension plans, investments and money mattresses, according to the survey results.
When asked study participants to evaluate several factors related to the creation of a more secure retirement, 86 percent said "having a flow guaranteed income in retirement. " And nearly half (47 percent) of non-retired evaluated a guaranteed income stream as the top retirement need they have yet to learn to feel more secure
What they describe are the advantages of an annuity :. Guaranteed retirement income. However, only 8% said they have nonretirees annuities, according to the study.
The results of the survey confirmed that Americans want more guarantees in retirement, but simply do not know what to do to create financial security. The takeaway here is that more education is clearly needed about annuities.
additional numbers of Allianz study show a surprising retirement landscape.
- Only 18% have guarantees through a pension.
- Nearly 40% of non-retired Americans say they have no retirement or investment products of any kind.
- 30 percent of nonretirees say they have either reduced the amount they save for retirement or have stopped saving altogether.
- 26 percent say they still have no idea what they need to acquire in order to feel their retirement will be secure.
- 28 percent said, "I would be more heavily invested in annuities that I am now."
- 51 percent said the recent stock market volatility has now asked them if the retirement savings vehicles such as 401k, 403b or 457 plans are sufficient means to save for retirement.
The bottom line. If you want a safe, secure retirement a guaranteed income for life, use annuities in your planning
Dollars for Pennies Apiece
Compare the premium paid annually for the ultimate benefit to be received by the time you, your family or your business need most; when the policy pays the product it was designed.
Let me demonstrate what I mean. If you are a 45 year old healthy decisions $ 50,000 per year, you would probably qualify for 10 to 20 times your income in life insurance, and the basic rule is that you will need at least 10 times your income in life insurance. Suppose you buy $ 500,000 of new life insurance. How much does it cost?
A value of redemption permanent life insurance policy with a level premium paid up to 100 years would cost about $ 300 a month while a term life insurance policy would be less than 20 years $ 50 per month. Compare premiums paid to the nominal value of the ultimate death benefit policies to receive. The policy of permanent cash value costs less than a penny per year for each death benefit dollar. This means that you pay less than 1% of the face value of the policy year to give your family the ultimate benefit of $ 500,000; less than a penny per dollar by year. Now that is what I call dollars for pennies each.
Tips for saving money on your life insurance
Nobody likes to pay more money for life insurance as required. Everyone knows that life insurance gets more expensive as you get older, but there are strategies that can help you save money on your policy. Here are two tips that could help you save thousands of dollars over the life of your plan
1: .. Figure how the insurance company determines your age
The n 'there are two ways that the insurance companies are based on your age when you apply for life insurance. Your age will be determined either by using your actual age, ?? or use your nearest age. If they use your real age and you are under 44, then they will use age as a basis for your life insurance rates.
It is more common for companies use a process that is known as the closest age. This calculation is determined simply by seeing if you are close to your next birthday or your last. Using this method, if you turn 45 in three months, the insurance company will give you the rate for a 45-year-old, which are more expensive than those for age 44. As a result, you might be able to save money if you choose a life insurance company that chooses your real age if you have a birthday soon
2 :.
another strategy backdate your life insurance policy based on age. you can use to save money is to backdate ?? Register or age ?? on your life policy. Using the example above, if you turn 45 in three months, most companies would you rate as 45 years. However, did you know that you may be eligible at age 44 rates?
If you paid three-month return of premiums, which would make your nearest policy date of your last birthday, the insurance company will actually give your life for 44 years insurance rates ! This could result in substantial savings on the life of your policy because you are essentially paying for term life insurance rates of age who is a year younger.
For example, say that the cost of insurance for 44 years was $ 10, and the premium for 45 years was $ 1,300. You have the option to pay an additional three months premium, or $ 300, to save the premium to the previous year, saving $ 100 off your annual premium. It may not seem like much, but using this strategy would save you $ 100 per year for each year of a long-term plan of 30, you will end up saving $ 2,700 over the life of the policy.
You can save some money on your life insurance policy simply by implementing certain strategies based on age. They will not be options for everyone, but if they match your goals, the savings can be substantial. Be sure to check the information that the nonprofit LIFE Foundation is to choose the best type of life insurance for your situation.
William Rowan is the founder of eTermLifeInsurance.net, to a term of life oriented website consumer insurance education and comparison. His only goal is for consumers to find the best life insurance policy for their individual situation.