Cheap Insurance News

Green Vehicles equals Cheap Car Insurance

2008-05-12T18:24:00.000-07:00

Drivers who are interested in ethical issues may be interested to know that a greener vehicle could also offer financial benefits, according to the British Insurance Brokers' Association Biba.

Technical and corporate affairs executive at the group Graeme Trudgill explained that road tax and car insurance can be reduced by driving an environmentally-friendlier car such as the Toyota Prius.

Mr Trudgill said: "People are looking, especially at the moment with the credit crunch, at what the most affordable methods of transport are." As well as taking steps such as choosing an ethical bank account, consumers can save money and the planet with a green car.

Research by Articlesbase showed that insurance can cost an extra £50 for a non-green car and can also be more expensive to repair than a less eco-friendly model. However, Mr Trudgill added that those looking for cheap car insurance should also know that other factors such as age, experience, the type and value of the vehicle will also be taken into account.

600,000 to quit health insurance in Australia?

2008-05-12T17:55:00.000-07:00

By Nick Miller and Leo Shanahan
May 13, 2008
TheAge.com.au

MORE than 600,000 Victorians may quit private health cover, putting more pressure on public hospitals, if the state returns to the participation rate that existed before the Medicare surcharge was introduced.The Federal Government was under fire yesterday for its decision to lift the income threshold at which the surcharge applied, from $50,000 to $100,000 for singles.

The private health insurance industry accused Prime Minister Kevin Rudd of reneging on a promise made days before the federal election to maintain the surcharge. Mr Rudd had used weasel words to hide his true intentions, Australia Health Insurance Association chief executive Michael Armitage said. He said lifting the surcharge threshold was differ- ent to maintaining it in most people's eyes.

Dr Armitage estimated that even after a $600 million budget injection into surgery waiting lists, public hospitals would be $43 million a year worse off. Premiums would increase for those who stuck with private insurance, he said. Others predicted little immediate extra load on the public health system, because those likely to lead the charge out of insurance would be young, healthy professionals.

But AMA president Rosanna Capolingua said it could be a signal to Australians that they could drop their private health insurance or not buy it in the first place.

It would lead to longer waits for elective surgery and other treatment."Those people who genuinely cannot afford (hospital cover) will actually be pushed further down elective surgery waiting lists," she said.

At the end of last year 2.26 million Victorians had hospital cover. In 1997, when the 1% surcharge was introduced, 31% of Victorians had hospital cover. With the introduction of lifetime health cover in 2000 it increased to 42%.

If Victoria returned to the pre-surcharge level, more than 600,000 people would leave private insurance.Canberra's Centre for Policy Development, health economist Ian McAuley, predicted little immediate impact from the change, apart from on insurers' hip pockets. "You will get young people dropping out, the ones who take out cheap policies that are pretty much pure profit for the insurers," Mr McAuley said.

The young did not get sick too often and tended to use public hospitals anyway because they had cheap policies with big excesses, he said.A spokesman for Mr Rudd's office said a promise not to lift the surcharge threshold had not been made.

There is No Such Thing as Divorce Insurance - Why Financial Ignorance is Far From Bliss

2007-09-21T14:35:00.000-07:00

September 21, 2007
By Meredith H. Kaiser

When I sold life insurance, I fantasized about shaking the shoulders of women who responded to a financial question with, “Oh, I don’t know any of that stuff. My husband makes the money. I just spend it.”

Outwardly, I remained professional and found restrained ways to encourage them to wake up to the danger of their situation.

What I wanted to say was this. “Why on earth do you give your power away like that?”

Often, these were the same women who ridiculed their husbands for being cheap, selfish and disrespectful towards women.

Let’s pause for a teachable moment. Um. There may be a link here. This is probably what you signed up for.

If when you were dating, your partner was secretive, patronizing, and controlling when it came to money, you had two choices:

1. Run

or

2. Put your entire financial life in his hands by quitting work, having multiple children with him and turning a blind eye toward all of your life-long dreams, talents, and career opportunities.

I continue to be amazed by the numbers of otherwise intelligent women who turn their brains off and go skipping happily - in an overpriced puffy wedding dress — toward door number two.

Even when a spouse is kind and trustworthy, once a woman hands over her financial life to him, inequity is the inevitable result.

In her book, The Feminine Mistake, Leslie Bennetts makes an air tight case for why women should remain in control of their financial lives, no matter what other choices they make. She points to women who use marriage and motherhood as an excuse to abdicate responsibility for their own financial well-being. It doesn’t mean that being a stay at home mom is not a positive option from some women. But intentional ignorance of your financial situation is not a smart choice for anyone.

Both partners can and should participate fully in the family finances. Also, you should remain connected to your chosen career field since stay at home parenting is a temporary position. Kids eventually grow up and have their own lives, you should too. For instance, maintain memberships in professional associations and fulfill continuing education requirements for professional certifications. Nurture professional contacts and relationships. In short, remain employable. Because at any minute you may need to jump with both feet back into the work force in the event of the death, disability or departure of a spouse.

Yes, there is life insurance and disability insurance – both of which I highly recommend. But there is no divorce insurance. And, in the case of divorce, how will you pay the bills – including attorney fees — while you do battle with the person who knows more about your assets (or lack of them) than you do?

If you ignore reality, not only are you deciding to be completely dependent for your current food, shelter, clothing etc., you are also sacrificing accumulation of assets for your retirement. Yes, your contribution of childcare and support of your spouse’s career may do wonders for the “family financial picture” of today, but Ms. Bennetts compares this to pouring millions of dollars worth of renovations into house that you don’t own. Your name is not on the deed. Or it maybe it is, if your spouse set it up that way, but do you know for sure?

Find out where you stand financially. Educate yourself. This should be a team effort between you and your spouse. You may be surprised how grateful he is to share the burden. It is the single best decision you can make because financial ignorance is far from bliss.
http://www.savingadvice.com/blog/2007/09/21/101783_there-is-no-such-thing-as-divorce-insurance-why-financial-ignorance-is-far-from-bliss.html

Life insurance cos putting money in equities?

2007-09-21T14:31:00.000-07:00

Source : Moneycontrol.com
The rising equity market has attracted the fancy of life insurance companies. Life insurance companies are inching their way to becoming the largest institutional investors.

Rs 150,000 crore. That’s what 16 Life insurance companies have invested in capital markets till March this year. LIC the largest life insurer contributed about 75% of this investment which comes to about Rs1, 24,000 crores. LIC has already invested Rs 17,000 crore in equities as against Rs 24,000 crore last year. Private insurers too are not lagging behind. Over the last one year, their equity portfolio has swelled immensely.

"About 2 years back we had one third of our total investments into equity today its about two thirds. Of the total money coming in about 80% is going into equity,” says Puneet Nanda, Exec VP & CIO, ICICI Prudential Life Insurance

ICICI Prudential Life Insurance doubled its equity exposure from Rs 5,900 crores last August to Rs 12,200 crores in August this year. Equity exposure of Bajaj Allianz too has more than doubled from Rs 2,150 crores last August to Rs 5,850 crores this year. SBI Life Insurance has trebled its equity investments from Rs 633 crores in August 2006 to Rs 2,600 crores in 2007.

Insurers say the increased equity exposure is driven by ULIPs, which now constitute upto 80% of their total portfolio. And with equity markets on the roll, insurers feel their equity exposure will only grow with time.

http://www.moneycontrol.com/india/news/insurance/life-insurance-cos-putting-moneyequities/20/50/304140

Study finds 89.6 million lacked health insurance

2007-09-21T14:25:00.000-07:00

One-third of people in the U.S. under 65 went without coverage for some or all of the last two years, reports an advocacy group.
By Jordy Yager, Los Angeles Times Staff Writer
September 21, 2007

http://www.latimes.com/news/printedition/asection/la-na-uninsured21sep21,1,1634196.story?coll=la-news-a_section

WASHINGTON -- -- More than one-third of the people in the United States under the age of 65 had no health insurance for some or all of 2006 and 2007, according to a study released Thursday by Families USA, an advocacy group for the uninsured.

The 89.6 million individuals identifying themselves as lacking insurance for at least a month, according to the advocacy group, was almost double the number of uninsured reported by the Census Bureau for 2006.

"It's simply unacceptable that for lack of basic health coverage, nearly 90 million Americans had to live in fear of illness and injury in the last two years," said Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, which oversees national healthcare programs.

California had the largest number of individuals uninsured during some or all of that two-year period -- 13 million, or nearly 41% of state residents younger than 65. Texas was second, with 9.3 million. Americans older than 65 are eligible for Medicare and were not considered in the Families USA study.

More than 70% of those without insurance in part or all of 2006 and 2007 were employed full time, the report said.

Half lacked insurance for nine months or more.

"This is a story of working people, working families. This is not a story of people looking for a handout," said Ron Pollack, executive director of Families USA. "These are people who simply can't afford to pay for health coverage with their modest paychecks."

Since Families USA's first study, covering the years 1999 and 2000, the number of periodically uninsured individuals has risen by 17 million. The most significant factor in the that increase is the rising cost of insurance, Pollack said.

According to the most recent census data, about 47 million people said they were uninsured in 2006. That figure comes from the Census Bureau's Current Population Survey, which is conducted yearly. Among other things, it asks people if they have been uninsured in the previous calendar year.

But that survey does not give an accurate assessment of the uninsured, Pollack said, because it can exclude people who may have been uninsured for less than the whole year.

The Families USA report considered data from both the Current Population Survey and the Census Bureau's Survey of Income and Program Participation, which included people who said they were uninsured for just part of a year. The report projected through 2007.

"This is not a contradiction, but a fuller picture of Census Bureau data," Pollack said at a news conference.

jordy.yager@latimes.com

The Dark Side of Hillary Clinton's Health Care Plan

2007-09-21T14:22:00.000-07:00

The public face of Hillary Clinton's new health care plan is sunny, filled with choices for consumers and bright with promises for better health care for all. But a close examination of the proposal alongside other initiatives of Sen. Clinton in the past few years reveals a dark side she wants to hide from public view until after the election is over.

By Dick Morris and Eileen McGann
http://www.foxnews.com/story/0,2933,297493,00.html

In her program, she speaks of how health care is the right of every "American" — but she has a rather expansive definition of "American." In 2005, Hillary co-sponsored legislation in the United States Senate to offer free health insurance, under the State Child Health Insurance Program (SCHIP) to the children of illegal immigrants who have lived in the United States for five years. So, those who have dodged the immigration cops for five years successfully would be rewarded not only with legal status and a path to citizenship, but with immediate free health care for their children.

Indeed, when Democrats and liberals speak of the 50,000,000 uninsured Americans, more than one fifth of those are illegal immigrants. Thus, about one in five of the beneficiaries of her program for universal health insurance are illegal aliens. (Illegal immigrants are a disproportionately large segment of the uninsured population because legal immigrants and citizens who live in poverty are eligible for Medicaid, but illegal immigrants are not.)

Would Americans like to reward those whose only connection to our country is that they flouted our laws to come here with free health insurance for themselves and their children? Doubtless Hillary knows the answer is no, so she is determined to hide that aspect of her plan from the public.

Hillary speaks of the importance of stopping health insurance companies from raising premiums on those who are sick. But she does not mention the inevitable flip side of her proposal — to raise premiums on those who are well. On the one hand, she would cover all those with chronic conditions with low cost health insurance and, on the other, would stop insurance companies from "cherry picking" healthy and young people for their insurance plans. The net effect would be a major increase in health insurance premiums for the vast majority of Americans.

In effect, her plan would turn "insurance" into "subsidy." The concept of insurance is that one pays a relatively low premium to guard against catastrophic expenses that are outside of our ability to meet financially. But Hillary's program would really be nothing more than a cash transfer from the healthy to the sick, not an insurance program at all.

Hillary says that her program would provide "universal" coverage for all. In order to achieve universality, one must make the program compulsory. The bulk of the uninsured do not want to have to pay for insurance. They are healthy and don't want the added burden of health insurance. That is why about half of those who are eligible for free or low cost insurance under the State Child Health Insurance Program have not signed up. Their parents don't want to.

So Hillary's program, as she freely admits, would require health insurance as a pre-condition of employment. Not having health insurance would be a violation just as driving a car without automobile insurance is illegal. The resulting coercion would force millions to pay for coverage they do not want and feel they don't need. But to pay for her national program, Hillary needs everyone to be covered so she can use their revenues to subsidize the coverage of those who are ill.

But the main defect of Hillary's program is that it leaves out any attempt at cost control. With health care absorbing 16 percent of our economy, Bill Clinton's warnings of economic disaster if its share of our national income passed 12 percent back in 1993 sound almost quaint today. Cost control is a vital part of any plan for universal coverage. Indeed, without it, extending coverage just offers a blank check to patients and providers which would drive even higher the share of our economy that goes to health care.

It was Hillary herself who explained this concept to Dick in 1993. The reality has not changed. Hillary will be forced to control costs as the implicit and vital element of any health care reform. This control of costs belies her contention that she would leave the health care system untouched except to extend coverage to those who now lack it. Because she would need to limit utilization and lower costs, she would be forced to ration health care and to impose government mandated and controlled managed care on all Americans.

For the first time, the word "no" would come into our system. Do you need open heart surgery? Are you a poor risk because of smoking or diabetes or age? No longer would the bureaucrat at the other end of the phone say "we won't pay for it" or "you don't need it" or "we can't fit you in at our facility." The answer would simply be no — even if you pay for it yourself, you may not have one. It is this type of coercion that drives Canadians over the border to the U.S. in search of medical options denied them at home under their socialized medical structure. Now it would operate on both sides of the border.

Finally, Hillary seeks to finance the system by ending tax breaks for the wealthy, by which she means any household with $250,000 or more in income. Never mind that she has spent that money several times over. But why use income taxes to finance her system? Why not do what Democrats and Republicans are now pushing in Congress — to finance it by raising cigarette taxes? That way we get a double impact: higher tobacco prices cut smoking, particularly among teenagers, and reduce health costs and the revenues pay for her expansion of the system. The current Congress is passing legislation to raise cigarette taxes 61 cents per pack to pay for a $35 billion expansion of the State Child Health Insurance Program. Why not raise them $2 per pack to raise the $110 billion Hillary says her health care proposal will need?

In selling her program, Hillary seems to imply that she was under the hypnotic control of her advisers (presumably Ira Magaziner) in 1993 when she designed her previous health care reform. Now she says she is in charge. "I'm the decision maker now," she told The New York Times. "I have a plan that is 100 percent my plan." But what was the 1993 initiative but her plan, concocted in secret and foisted in toto on a Congress which wouldn't pass it?

Now she says she would not "have approached [health care reform] in the same way" as she did in 1993. Now she will be informed by "a greater dose of humility and empathy and understanding of what it takes to get things done in our political system."

That and a determination to conceal the true implications of her proposal until after she is elected.

Dick Morris served as Bill Clinton's political consultant for 20 years, guiding him to a successful reelection in 1996. He is the author of New York Times bestsellers Because He Could, Rewriting History (both with Eileen McGann), Off with Their Heads, and Behind the Oval Office, and the Washington Post bestseller Power Plays.

Copyright Eileen McGann and Dick Morris 2006. To obtain free copies of all of the columns and newsletters by Dick Morris and Eileen McGann for non-commercial use, please sign up at www.dickmorris.com.

Insurance program faces veto from Bush

2007-09-21T14:16:00.000-07:00

WASHINGTON — President Bush on Thursday repeated his threat to veto an expansion of the State Children's Health Insurance Program (SCHIP), calling Congress' proposals a "step toward federalization of health care."

Congressional lawmakers have called for substantial funding increases for SCHIP by raising taxes on various tobacco products. SCHIP is set to expire at the end of the month, and Congress is expected to vote on reauthorization next week.

Negotiators have said a compromise bill from the chambers will be closer to the Senate version, which includes a funding increase of $35 billion over five years, while the president has proposed a $5 billion increase.

Senate approves FDA fee programs

Congress sent President Bush legislation Thursday giving the Food and Drug Administration (FDA) new powers to ensure the safety of prescription drugs.

The Senate passed the FDA bill by voice vote Thursday, a day after the House approved it. Bush is expected to sign it.

The bill would renew for five years two programs to collect fees from drug and medical-device manufacturers to defray the FDA's expense in reviewing products seeking agency approval. The bill also would beef up the agency's powers to police drug safety.

Agriculture secretary Mike Johanns resigns

President Bush announced the resignation Thursday of Agriculture Secretary Mike Johanns and offered support for his anticipated campaign for a Senate seat from Nebraska.

"If it's Mike's decision and Nebraska's choice, he would make an outstanding member of the United States Senate," Bush said. Deputy Agriculture Secretary Charles Conner took over as acting secretary.

Several state officials said Johanns, a former Republican governor of Nebraska, is expected to seek the Senate seat being vacated at the end of next year by Republican Sen. Chuck Hagel.

Group asks Guiliani to drop Rep. King

A leading Islamic civil-rights group called on Rudy Giuliani on Thursday to drop Rep. Peter King from his presidential campaign after King called for greater scrutiny of U.S. mosques. Giuliani rejected the idea and stood by his friend of 41 years.

The Council on American-Islamic Relations said Giuliani should drop King over his "extremist and Islamophobic views and comments."

King, R-N.Y., said this week that there are "too many mosques in this country, there's too many people who are sympathetic to radical Islam."

Seattle Times news services

Copyright © 2007 The Seattle Times Company

Norwich Union increasing home insurance premiums

2007-08-06T01:03:00.000-07:00

by Kay Murchie
Norwich Union has announced that it is to increase its home insurance premiums by an average of 10%, from mid-August. Norwich Union, which forms part of the Aviva group, is the UK’s largest household insurer, covering around 1 in 5 homes in the UK.

The company highlighted that the increase is not related to the recent floods and the timing is coincidental. It anticipates the bill for the floods to be in the region of £340 million but commented that it is too soon to verify whether premiums will increase as a consequence of the flood claims.

Norwich Union added that the 10% rise in domestic insurance premiums is related to a number of issues, one being the increased levels of home improvement work.

In addition, the company said that households in flood risk areas can expect to see higher home insurance premiums than those in non-flood risk areas.

Lloyds TSB has denied reports that it is also increasing domestic insurance premiums by 10%, again saying that it is too early to establish the effect of the floods on premiums.
http://www.financemarkets.co.uk/2007/08/06/norwich-union-increasing-home-insurance-premiums/

Insurance company office robbed

2007-07-30T21:30:00.000-07:00

PENBROOK
Insurance company office robbed
Tuesday, July 31, 2007

Penbrook Police are investigating the armed robbery yesterday afternoon of an insurance company office in the 2600 block of Walnut Street.

Employees of the Dale Wagner Insurance Co. reported that a light-skinned man wearing a white shirt and blue pants entered their office shortly before 2:30 p.m., displayed a handgun and demanded money.

No one was reported injured. It was not disclosed how much money, if any, was taken.

Paxtang, Susquehanna Twp. and county officers searched the area, including several homes, but located no suspect.

Police ask anyone with information about the robbery to call Penbrook police at 558-6900 or the Dauphin County Crime Stoppers at 800-262-3080.

Crime Stoppers is offering up to $2,000 for information leading to arrest and conviction.

Multiple Pet Owners With VPI Pet Insurance Represent 17% of All Policyholders

2007-07-30T21:27:00.000-07:00

BREA, Calif., July 30 /PRNewswire/ -- American families are going to the dogs -- and cats and maybe iguanas or rabbits. In a recent review of policyholder data, Veterinary Pet Insurance (VPI), the nation's oldest and largest provider of pet health insurance, found that a surprising number of VPI policyholders have gone pet happy, with 17 percent -- nearly 80,000 -- insuring two or more pets.

"Multiple pet owners have experienced, more than most, the joys and costs of owning a pet," said Dr. Carol McConnell, vice president and chief veterinary officer for VPI. "VPI Pet Insurance policies are a smart way to ensure that the joy is multiplied and not the medical costs."

VPI encourages policyholders to enroll each of their pets by offering multiple pet discounts. Policyholders with two to three pets receive a 5 percent discount on each pet's base medical plan, and those with four or more pets receive a 10 percent discount on each pet's base medical plan.

Several of VPI's multiple pet policyholders take advantage of the fact that VPI is the only major pet insurance provider in the United States with plans for avian and exotic pets, which they own in addition to the traditional dog or cat. Some of the atypical household pets covered by VPI Pet Insurance policies include hedgehogs, gerbils, ducks, chameleons, goats, boa constrictors, toucans, geckos, chinchillas, pot belly pigs, and anacondas.

Mark and Sandra Milroy of El Cajon, Calif., are proud multiple pet owners, with 11 birds, two dogs, a guinea pig, a tortoise and a turtle -- all insured by VPI. Mark Milroy, who grew up on a farm, wanted his daughters to learn to be responsible for animals.

"Obviously, we use our insurance a lot," said Mark Milroy. "We believe in taking care of our animals and, sometimes, the only way to accomplish this is with outside assistance. If you have your animals insured, you know they are going to be taken care of. You know they are going to receive that third-party help when they need it."

Some people, like the Milroys, choose to care for multiple pets. Others come upon them more by chance -- or accident. Joyce Varela, a VPI policyholder from Lancaster, Calif., tried to keep her three imported French mastiffs from breeding, but when they escaped from the house one day, it was only a few months until she had a litter of 10 puppies. Varela, who worked in a veterinary clinic for 10 years, knew the potential health care costs of raising 13 dogs and wasted no time purchasing insurance for all of them.

"If you have the animals, you have to be responsible for them," said Varela. "One veterinary bill can cost thousands of dollars, but when you have insurance, you have no excuse not to take your dogs to the doctor."

Anthony Parsons, a policyholder in Minneapolis, did not hesitate when a friend asked him to adopt three cats rescued from Hurricane Katrina, even though he already had five cats and two dogs.

"You kind of get a surprised look from some people, like, 'Really? Eight cats?'" said Parsons. "My wife and I both had many pets over our lifetime. Having pets and having them insured was never a question. We've lost pets before to illness, and we just want the peace of mind that if anything happened outside of our financial means, we'd be able to take care of it."

About Veterinary Pet Insurance

Veterinary Pet Insurance Co./DVM Insurance Agency is the nation's oldest and largest pet health insurance company. Providing pet owners with peace of mind since 1982, the company is committed to being the trusted choice of America's pet lovers and an advocate of pet health education. VPI Pet Insurance plans cover dogs, cats, birds and exotic pets for multiple medical problems and conditions relating to accidents, illnesses and injuries. Optional Pet WellCare Protection(SM) for routine care is also available.

Medical plans are available in all 50 states and the District of Columbia. More than 1,600 companies nationwide offer VPI Pet Insurance as an employee benefit. Policies are underwritten by Veterinary Pet Insurance Company in California and in all other states by National Casualty Company, an A+15 rated company in Madison, Wisconsin. For more information about VPI Pet Insurance, call 800-USA-PETS (800-872-7387) or visit petinsurance.com.
Website: http://www.petinsurance.com/

RLI Named a Top Performing Insurance Company for 17th Straight Year

2007-07-30T14:04:00.000-07:00

PEORIA, Ill., July 30 /PRNewswire-FirstCall/ -- RLI Corp. -- For the 17th consecutive year, RLI has been named to the Ward's 50 list of the insurance industry's top performing companies. RLI is one of only five property and casualty insurers to have been recognized for excellence among 2,700 property and casualty insurers every year since the list's inception.

"We're proud of this recognition. Being included on the Ward's 50 list every year since it began is a testament to the talented employees of RLI as well as our solid focus and underwriting discipline," said RLI President & CEO Jonathan E. Michael. "The factors behind the recognition -- safety, consistency and performance over a five-year period -- demonstrate that RLI is committed to serving the needs of our customers, business partners and shareholders for the long term."

Ward Group, a Cincinnati-based consulting firm specializing in the insurance industry, publishes the analysis in Ward's Results, an insurance industry financial reference series. For a complete listing of all companies in the Ward 50, visit http://www.wardinc.com.

RLI, a specialty insurance company, offers a diversified portfolio of property and casualty coverages and surety bonds serving "niche" or underserved markets. RLI operates in all 50 states from 25 office locations. The company's talented associates have delivered underwriting profits in 26 of the last 30 years, including the last 11. RLI's insurance subsidiaries -- RLI Insurance Company, Mt. Hawley Insurance Company and RLI Indemnity Company -- are rated A+ "Superior" by A.M. Best Company and A+ "Strong" by Standard & Poor's.

For additional information, contact Treasurer John Robison at (309) 693-5846 or at john_robison@rlicorp.com or visit our website at http://www.rlicorp.com.

Farmers Insurance Expanding in Ohio

2007-07-30T14:00:00.000-07:00

By TERRY KINNEY Associated Press Writer
© 2007 The Associated Press

CINCINNATI — The Farmers Insurance Group is investing $40 million to recruit 600 new agents in Ohio, more than doubling its presence in one of the nation's most lucrative insurance markets.

The nation's No. 3 property and casualty insurer, part of global giant Zurich Financial Services, ranks only 10th in Ohio. The recruitment and training effort will span over five years. The company also plans to blitz Ohio with an ad campaign.

"We see Ohio as a gigantic insurance market for us," Stan Bergstrom, senior marketing manager for Los Angeles-based Farmers, said Monday. "Ohio is one of the most competitive states in the country, and we look at it as an extremely good market with a very good business climate to work in."

So do most insurers.

Ohio has more companies writing private passenger car insurance than every state but Illinois, and more homeowner insurance writers than every state but Illinois and Pennsylvania, said Mary Bonelli, spokeswoman for the Ohio Insurance Institute, a trade association with offices in Columbus.

"That's because Ohio has a very stable regulatory environment that promotes competition among insurers," Bonelli said. "That helps keep premiums affordable. We've actually had reductions in the cost of auto insurance in 2005 and 2006, and also reductions in the average premium for homeowners."

Ohio has more than 84,000 resident licensed insurance agents, and nearly 150,000 nonresident licensed agents, Bonelli said. The Farmers group expects most of its new agents to operate their own offices.

Mary Jo Hudson, director of the Ohio Department of Insurance, welcomed the concept of Farmers' training centers in Independence, near Cleveland, and Mason, near Cincinnati.

"Assuring agents are well trained promotes better protection for Ohio's consumers," Hudson said. "And, as always, competition in the Ohio market benefits Ohio Consumers."

Farmers and its affiliated companies have a nearly 6 percent market share nationwide. Their share is half that in Ohio, where industry leader State Farm, based in Bloomington, Ill., is No. 1, and Nationwide, based in Columbus, and Progressive, of Mayfield Village, are second and third.

"We decided we needed to make a major foray into Ohio and go all out," Bergstrom said. "We're making a major competitive play here."

Most candidates who are accepted for Farmers' training program would attend 90 days of classes, during which they would not be paid, and then receive continuing education for about two years when they join the company sales staff, Bergstrom said.

"These centers offer superior training opportunities for men and women looking to own a small business with tremendous growth potential," said Gary Gibson, manager of the center that opened Friday in Mason.

The northern Ohio center opened in April and has processed about 175 candidates.

"This is a tremendous investment in Ohio," said Scott Stice, senior vice president of field operations for the Farmers group. "We are making a strong and lasting commitment to growing our business and providing career opportunities for hundreds of people in Ohio."

Michigan Insurance Agency, Szura Insurance Services Opens Benefits Department

2007-07-30T04:19:00.000-07:00

[USPRwire, Mon Jul 30 2007] Szura Insurance Services announces the opening of a Benefits Department, the latest addition to the agency's broad range of personal and commercial insurance services. The Benefits Department is managed by Neil Schwartz, who's been assisting both individuals and businesses with their insurance needs for over 20 years.

"Neil's expertise and knowledge in the benefits industry is a tremendous advantage to this newly formed department," said Matt Szura, president of Szura Insurance Services. The downtown Rochester full service agency has provided commercial, personal and bonding plans for Southeast Michigan for nearly 40 years. "A Chartered Life Underwriter and a Chartered Financial Consultant, Neil is another example of Szura's extensively experienced staff," added Szura. The agency just launched an enhanced Web site, www.szuraagency.com, featuring instant quotes and multiple insurance company comparisons. The informative and detailed new site provides a simple, convenient, and easy-to-navigate insurance shopping experience.

As manager of the Benefits Department, Neil provides employee, group and individual benefits including detailed consultations on health, dental, long-term disability, vision and life insurance. He joined Szura Insurance in 1988. Neil is an economics graduate from the University of Michigan.

About Szura Insurance Services
Szura Insurance Services has been providing expert commercial and individual insurance in Southeast Michigan since 1969. We design insurance plans around the distinct characteristics of every business owner or individual we work with to incorporate focused customized solutions for their insurance needs. Szura Insurance Services provides a full array of individual, commercial, and surety bond plans. Please visit www.szuraagency.com or call (248) 651-4487.

Selling off life insurance policies to raise money grows in popularity; some wonder who's buying

2007-07-30T04:15:00.000-07:00

Who's cashing in your chips?

Selling off life insurance policies to raise money grows in popularity; some wonder who's buying

BY PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Monday, July 30th 2007
Someone out there wants to place a bet on when you're going to die - and they're willing to hand you a chunk of cash now, while you're still alive.

This fast-growing business allows seniors to raise quick cash by selling their life insurance policies.

Years ago, seniors who didn't need life insurance anymore or could no longer afford the premiums didn't have many options. They could either let the policy lapse or collect the cash value, often a meager sum.

Now, a growing number of people older than 65 are entering into deals called life settlements where they sell off their life insurance to a third party for more than its cash value, but less than the death benefit.

"It's an asset that seniors never realized they had," said Doug Head, executive director of the Life Insurance Settlement Association.

There is a creepy catch: The sooner you die, the better it is for whomever bought your policy. That's because the new holder can stop paying premiums and collect the death benefit.

As if that weren't unsettling enough - for now there are no known cases of murder associated with life settlements, according to state insurance officials - consider that the buyer of your policy will know who you are and will have access to your medical records. The lower your life expectancy, the more the buyer will be willing to pay for your policy.

Morbid or not, life settlements - an outgrowth of the viatical business of the 1980s, in which the terminally ill cashed in their policies - are catching on fast.

An estimated $12.5 billion worth of the deals are expected this year, more than 12 times the 2001 figure, according to the Life Insurance Settlement Association. And it's become a big business on Wall Street, where policies are bundled and sold to finance giants such as AIG, Wells Fargo and Goldman Sachs.

Seniors who sell their policies are using the cash to buy long-term care insurance, pay medical bills and buy more life insurance at a lower price. "It's become a method to increase retirement assets," said Jim Hiles, a certified financial planner at CBIZ Wealth Management in Manhattan.

Ernesto Knopfler, a 74-year-old from Borough Park, Brooklyn, who has six adult children and countless grandchildren, recently sold his $350,000 policy and pocketed $175,000.

"I decided I want to give to my children," he explained.

Knopfler, the owner of men's clothing wholesaler and retailer Kesser Clothing in Borough Park, bought his policy in 1985 and had been paying $3,600 in annual premiums. But they were about to escalate because of his age, said his broker, Al Weinberger of Triple A Settlements in Brooklyn.

To be sure, selling a life insurance policy doesn't make sense for everybody. Anyone considering a life settlement should research it thoroughly.

"You have to understand that you are losing a valuable asset," said Glenn Daily, a fee-only life insurance consultant on the Upper East Side who runs a Web site called Whatsmypolicyworth.com. "Once you do it, it's irreversible."

Before selling a life insurance policy, consider alternatives such as borrowing against the cash value of your policy.

Life settlements are not regulated in New York, leaving the door open for unscrupulous dealers. Brokers and agents do not have to disclose their commissions. Using an independent lawyer to review the details may be a smart choice.

Be aware that agents and brokers have a financial interest in your doing the deal.

Seniors will often hear about life settlements from their life insurance agents and use the money to buy another policy from the same agent. The agent gets paid a commission on both ends. Commissions can be very high, as much as 30% of what the buyer is paying for your policy.

Make sure you are getting the best possible price for your policy. Your broker should conduct an auction with multiple bidders.

Understand the tax implications of selling your policy. If you make a profit, you will have to pay taxes. If you keep your policy, in most cases the death benefits aren't taxable.

Beware of anyone offering to lend you money so you can buy a policy with the understanding that they will buy it from you later on. Insurance law prohibits anyone from buying insurance on a stranger's life.

"There are legitimate uses for life settlements," said Jeff Angelo, chief examiner of the life bureau of the state Insurance Department. "But since it is unregulated, people should be very vigilant and know who they are dealing with."

How To Choose The Right Life Insurance Policy

2007-07-30T04:12:00.000-07:00

Life insurance – what is it & how does it work?

Life insurance is the simplest, most popular and cost effective way to financially protect any dependants in the event of your death. While it won’t help those left behind to get over their loss, the benefit of a lump sum, in most cases tax-free, will guarantee your family aren't deprived of funds during an already stressful time.

With the cost of life insurance at an all time low, now is the perfect time to arrange cover. For those in good health, a policy that was taken out six years ago can be replaced today for significantly less, despite the fact that being older, one is in theory at greater risk. The industry over-reaction to the threat of AIDS initially caused premiums to rocket skywards, but when the expected epidemic failed to materialise, costs fell rapidly from the mid 1990s onwards.

Life insurance premiums vary from person to person, with factors such as age, gender, current and previous health, lifestyle, term required, occupation and smoker status all having an influence. Risk is assessed with the use of what’s known in the industry as ‘mortality tables’ to determine the premium for a particular individual, to which a 'loading' may be added which takes further account of other factors relating to medical history and lifestyle.
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Whole of life versus term life insurance

Life insurance can be split into two main types, known as ‘whole of life insurance’ and ‘term life insurance’. In essence, as the name suggests, whole of life insurance provides cover for the lifetime of the policyholder, whereas term life insurance provides cover for the duration of an agreed period in time. For all policies it’s crucial to ensure that premium payments are kept up to date to keep cover in place.

Whole of life insurance

Whole of life insurance tends to be the more expensive option, though often has the advantage of being more flexible. It can fulfil many purposes including personal protection, family protection and inheritance tax planning, and can be combined with a term life insurance policy to cover specific debts as required.

Typically, policyholders' contributions are invested and life insurance benefits are 'purchased' using the investment fund. The fund’s performance, along with other factors, has a significant effect on the level of future benefits. As the policyholder’s age increases the cost of the insurance increases, thus reducing the sum in the investment pot. The investment element varies from insurer to insurer; some are more generous payers than others, making the expert advice of an insurance broker or independent financial adviser invaluable in choosing such a policy. Some plans require contribution until the policyholder’s death, some for a set period of time, and some up until a certain age is reached, with additional options available to cover specific illnesses or disability. The common factor throughout is that cover is maintained for the life of the policyholder, making whole of life insurance a very popular way to leave dependants a nest egg.

One great benefit of whole of life insurance is that the guarantee of a payout on the policyholder’s death, at whatever point in time that may be, removes much of the guesswork involved in other types of life insurance. As long as premiums are maintained, cover is assured. Although the more expensive option, it’s important to note that premiums are lower than those one would pay in later life by repeatedly renewing term life policies.

Term life insurance

A simpler option, term life insurance offers basic cover for a set number of years, usually at low cost. A term life insurance policy requires a regular premium payment and pays out a lump sum on the policyholder's death providing this occurs within the term of the policy. Death outside of the term to which the policy applies won’t result in a payout, meaning the loss of any investment made, making it particularly important to be sure that cover is adequate and the term is appropriate.

Some policies can be extended to provide critical illness cover; full disclosure of all medical conditions, existing and historic, is vital when arranging this to avoid a denial of payment just when it’s needed most. It’s also imperative to be certain exactly which conditions the policy covers, as insurance companies are notoriously specific as to the illnesses they’ll pay out for!

Term life insurance cover can be further categorised into these types:

Flat-rate (or level) cover - offers a set amount of cover for the policy term, fixed from the outset.

Decreasing (or mortgage protection insurance) cover - cover decreases over the term of the policy, often inline with a diminishing mortgage debt.

Family income benefit – pays out a regular income rather than a lump sum during the policy term.
Increasing term assurance - premiums and benefits increase each year, usually in line with inflation, allowing the protection of a lifestyle.

Convertible term assurance – gives the option to convert to a whole of life policy without giving new information about your health.

How much cover do I need?

It’s important to correctly identify your dependants’ financial needs to establish just how much life insurance cover to arrange. A general rule is to choose a policy providing at least ten times your salary, but more may be appropriate, with the amount varying depending on how you intend it to be used. Basically you decide how much you want your dependants to receive in the event of your death, and your premiums will be determined accordingly.

Don’t overlook factors like:

• Mortgage repayments
• Replacing the primary earner's salary
• Replacing childcare
• Education expenses
• Outstanding debts
• Support for a business partner

What do I need to look out for?

Before signing anything, look carefully at the terms and conditions of your proposed life insurance policy giving particular attention to any regulations pertaining to payouts. Some policies may not, for example, pay out if death is caused by participation in certain dangerous sports or activities.

In the case of index-linked policies which allow for economic change, it’s important to establish whether the policy is linked automatically or whether there’s the need to opt-in to linkage each year; failure to do so could result in being locked out of future linking.

Though life insurance payouts are usually tax-free, there are circumstances where taxes will apply. A life insurance policy can be placed ‘in trust’ to protect revenue and provide payment more quickly, though this is a complex issue which needs professional advice for clarity before proceeding.

A joint-life policy is a popular and often less expensive option for couples which covers the two of them simultaneously, with options for payout on a first-death or last-survivor basis.

How much will it cost?

The cost of each different policy offered by a life insurance company varies widely, and depends on a number of factors: the type of policy, the length of the policy term, the size of the death benefit, the flexibility of the policy, number of people covered by the policy and so on.
The only certainty is that the longer you delay getting life insurance, the more expensive the premiums will be!

By: Clare Mactaggart

Clare Mactaggart writes for Bellwood Prestbury International, FSA regulated UK providers of life insurance and cover for all business, personal and expatriate needs.

Term Life Insurance Rates - The More You Know The More You Save

2007-07-30T04:10:00.000-07:00

If you’re in the market for a term life insurance policy, here are a few money saving tips to help you keep the premiums down.

1. Buy when you are young healthy: Life insurance rates, although they contain fees, and a myriad of expenses, are primarily based upon the statistical chances of a person dying in a given year. Insurance companies use their own experience plus the statistical information collected by the government.

The statistics are used to calculate the yearly ‘cost of death’ for each $1,000 of life insurance benefit. As people grow older, the chances of dying increase. At first the increase is slow up until middle age, and then the chance of death increases more rapidly. As the chance of death rise, so do the premiums.

2. Quit smoking: Smokers’ premiums are nearly three times as expensive as non-smokers. Staying away from cigarettes a week or two before your company physical won’t do. Urine tests will detect traces of nicotine (yep, this means chewing tobacco too). Most companies require you to be smoke free for a minimum of one year. Some companies require two years.

3. Lose weight: Companies don’t charge by the pound, but you may be charged more if your weight exceeds a certain level.

4. Buy direct: The internet has made it easy to shop around for life insurance policies directly. By eliminating the middle person, you save on salespersons commissions which are built into the policy premium.

5. Healthy people don’t need ‘guaranteed issue’ policies: People with medical conditions may want to purchase guaranteed issue policies. These policies do not require a medical exam and tend to have higher premiums. The company is taking more of a risk because they don’t know your true medical condition. However, if you are healthy, take the exam. It will prove that you are a good risk and your rates will be lower.

By: Jessica Farrell

Pennsylvania Insurance Department Offers Important Tips to Vacation Travelers

2007-07-30T04:07:00.000-07:00

HARRISBURG, Pa., July 25 /PRNewswire-USNewswire/ -- The Pennsylvania Insurance Department today reminded consumers who are planning vacations to consider if purchasing travel insurance will help to protect their investment and peace of mind.

"Buying travel insurance can protect you from the loss of non-refundable travel costs, including airfare, hotel and tour expenses," said Cindy Fillman, director of Insurance's Office of Consumer Liaison. "With a host of companies offering various types of protections, consumers can avoid costly trip cancellations due to everything from severe weather and illness or personal emergency, to bankruptcy of the travel agency or cruise line."

The newest edition of Consumer News You Can Use newsletter highlights travel and car rental insurance and discusses various coverage options for consumers.

"Some insurance companies offer bundled packages of trip insurance that cover anything from identity theft to delayed or lost baggage," Fillman said. "Many consumers are unpleasantly surprised by the cost of replacing the contents of just a single piece of luggage.

"Just like any other type of policy, travel insurance should be reviewed thoroughly -- not all policies are the same," she said. "Also, be sure you are purchasing travel insurance and not cancellation waivers, which may be helpful but are not insurance policies. Since waivers are not regulated by the department, we cannot offer consumers protection from problems that may arise."

Renting a vehicle is another aspect of vacation planning that requires forethought. Many consumers are unsure whether their existing auto insurance policy will cover them while operating a rental vehicle.

"By doing your homework ahead of time, you will not feel pressured into making a snap decision at the rental counter that ends up costing as much for insurance as it does to rent the car," Fillman said.

Vacationers can also check with their credit card companies, as some firms offer free rental car collision insurance and some provide automatic travel insurance coverage if a traveler uses their card to pay for the trip.

To download a copy of Consumer News You Can Use or find more information, visit the department's Web site at www.insurance.state.pa.us

Source: Pennsylvania Department of Insurance

Indian insurance cos` Saudi Arabia foray

2007-07-30T04:05:00.000-07:00

Dubai, July 30: Two Indian insurance companies -- Life Insurance Corporation of India (LIC) and New India Assurance have entered into a contract with Saudi Arabia`s al Hokair Group to make their services available in the kingdom.

Saudi India Company for Cooperative Insurance (SICCI), formed out of the venture, has recently issued an initial public offering (IPO) for 40 per cent of the shares and raised SR 40 million as per Saudi regulations that require new insurance companies to offer 40 per cent of the shares to locals before starting operations.

LIC along with its subsidiary, LIC International, holds a 20.4 per cent stake in SICCI, while New India Assurance has a 10.6 per cent stake in the company and the Al Hokair Group holds a 29 per cent stake.

"The Saudi India company for cooperative insurance is a composite insurance company that will sell both life and non-life products. The IPO was very well received. The matter is now with the Ministry of Commerce of Saudi Arabia and by July or August end we hope to get the license as it is now only a procedural formality," a senior LIC official said.

In November last year, LIC (International) BSC (C), Bahrain - a subsidiary of Life Insurance Corporation of India in Bahrain - got the permission to sell insurance policies to the public in Bahrain from the Central Bank of Bahrain.

LIC started its Bahrain operations in 1989. LIC (International), Bahrain operates in Bahrain, Saudi Arabia, Oman, Qatar, UAE and Kuwait, and has permission to sell insurance only to Non-Resident Indians.

Bureau Report
(Zee News)

Should Medical Students Consider Disability Insurance?

2007-07-30T04:04:00.000-07:00

Written by george2007
Monday, 30 July 2007

Last year the Association of American Medical Colleges (AAMC) said that schools should require disability insurance for all medical students and provide access to policies. Medical students are particularly vulnerable to the financial hardships that may result from a disability. Disability insurance protects students from possible fiscal disaster and is also a prudent investment. Purchasing a policy while still in medical school presents tremendous advantages that can save students money after graduation, while protecting their financial future and providing the peace of mind necessary to focus on the demands of a career in medicine.

Most medical students do not generate income while in school, but instead accumulate debt at staggering rates. In 2005, medical school graduates who took out loans started their residencies with an average debt of $100,000, a figure that does not include undergraduate debt. Only the expected future income from a career in medicine makes such exorbitant debt palatable; however, a student that suffers a disability may never realize that income. According to the 1994 Statistical Abstract of the United States, in the course of a year, 1 in 10 people between the ages of 25 and 64 will suffer a disability. When comparing that ratio to the odds of being victim of a house fire (1 in 122); injured in an automobile accident (1 in 160); or even of death (1 in 117), the value and protection offered by disability insurance is clear.

A student who suffers a disability and is unable to complete their education will be saddled with student loan debt and may not be able to work in any field depending on the disability and its severity. Repayment of student loans combined with medical expenses and lack of income due to disability can destroy a financial future. Even a student that is able to continue medical school could face the burden of simultaneously repaying loans and paying tuition.

Aside from the obvious advantages disability insurance offers by minimizing the risk riding behind a medical student’s debt, there are other long-term advantages to purchasing a policy as a student instead of as a physician. A student purchasing a policy will likely get a lower rate than a physician. According to doctordisability.com, three factors determine disability insurance rates: age at the time of purchase, occupation, and health status. These factors tend to favor a student. Not only are students younger, but generally the health status of younger people is better than that of older people. Obtaining insurance at a younger age may also protect the policyholder from the difficulties of securing a policy later in life when other health issues may affect insurability.

A disability insurance policy also adapts to meet the changing needs of the insured. A Future Increase Option (FIO) Rider allows the policyholder optional future increases in coverage without providing evidence of medical insurability. The ability to increase coverage regardless of current health status is attractive to any policyholder, but the FIO Rider is also ideal for a student who wants to increase coverage upon graduation and the expectation of significant income. A policy purchased by a student before they take their first class in medical school can be flexible enough to last a career.

The protection, flexibility, and benefits the insured has by purchasing a disability insurance policy as a student are reflected by the stance that medical schools take. Dartmouth Medical School and the University of North Carolina School of Medicine mandate that all students have disability insurance. While in some states it is illegal to require students to have a disability insurance policy, most medical schools at least recommend that all their students have it. In 2006, the University of Washington School of Medicine was ranked by U.S. News and World Report as one of only three schools in the top 10 for both research and primary care. Their office of student affairs and services says it is “advisable” to have disability insurance in light of the cost of education and risks associated with practicing medicine. The school offers its students a plan, but in general, group plans come with limitations and restrictions.

The Liaison Committee on Medical Education (LCME) is the sole accrediting authority for medical education programs leading to the M.D. degree in the United States. Accreditation standard MS-28 states, “all students must have access to disability insurance.” Simply allowing access to disability insurance—a minimal requirement placed on accredited medical schools—or even recommending it, is not enough to save students from the risks of not protecting their future income. In light of the monetary investment that students make to medical schools, it should be the responsibility of each school to promote and educate its students about the benefits, value, and importance of disability insurance.

For more information, visit Resident Disability Insurance

Article Source: http://www.answer-site.com

MORE COMPANIES ARE OFFERING A PERK FOR POOCHES: PET HEALTH INSURANCE

2007-07-30T04:02:00.000-07:00

New York Post
DOG DAYS
MORE COMPANIES ARE OFFERING A PERK FOR POOCHES: PET HEALTH INSURANCE
WHEN EVERY DAY IS TAKE YOUR DOG TO WORK DAY
By MICHAEL KANE

July 30, 2007-- The next time you're waiting for your burrito at Chipotle, deciding whether you're in the mood for corn salsa or tomatillo, consider for a moment the breadth and flexibility of your health insurance. OK, too boring? Well, then at least consider that if you're self-employed - like many young freelancers and contract workers in the city - you may have less health insurance than the manager behing the counter's cat and dog.

The same goes for Sparky or Rex or Snowball and all the pets belonging to the guy helping you find a pipe wrench at Home Depot, or the operator calling from AT&T with a reminder to pay your phone bill. Their pets may well have more extensive coverage for unexpected illnesses or accidents than you - a bipedal, taxpaying human being.

Ina growing trend on the workplace front, driven by a tight labor market that's forced companies to expand perks packages to stay competitive, corporations are reaching out to employees through very cuddly means - their furry friends at home. It's the new corporate take on the old "pet the dog" trick employed for years by politicians, screenwriters and new neighbors alike to generate a spirit of goodwill.

Yes, that's your boss getting all "whoo-za-good-boy?" with your mutt at home.

“For some people, their pet is their life. They’re another family member,” says Bernadette Kenny, chief career officer at Addeco Group, a staffing giant with 800 offices nationwide. “So if you want to be the employer of choice, you need a range of ways of responding to your staff needs.”

A 2006 survey by the Society of Human Resource Management shows the number of firms offering pet health care has nearly doubled over the past three years, rising from 3 percent to 5 percent, with another 1 percent saying they planned to offer it. Major companies now offering pet insurance include HSBC Bank, Viacom, Ford and Google.

“Companies are looking for ways to positively impact their employees’ lives,” says Laura Bennett of Embrace Pet Insurance. “It’s very little cost to companies, yet the employees who have pets at home really appreciate it.”

While insurance is the most widespread pet perk, some companies have instituted others as well. In Britain, some firms allow workers to take time off to care for an ailing pet, or grieve for a deceased one. That’s uncommon here, but some companies help arrange and/or pay for pet care for workers who travel for business; others offer concierge services that do everything from find pet groomers to research veterinarians. Last month the concierge service Balance Works, which serves numerous corporate clients, fielded 140 pet-related requests, says marketing director Emily Mancini.

“Pets are right up there with children,” she says.

Morale booster

To clarify, pet insurance is a voluntary benefit usually offered as an a la carte insurance option through benefits programs. The employees make the payments themselves, so the only expense to the employer is fairly negligible administrative costs.

“It’s attractive from the employer’s standpoint because it boosts morale but it doesn’t cost much,” says Andrea Arden, columnist at New York Dog magazine.

Chipotle is the exception. The Denver-based burrito giant goes one step further, subsidizing $10 per month for each employee’s pet, up to three. That offer extends to corporate staffers and store managers, though not to line workers.

“We’ve got a lot of young employees with no spouses or kids,” says Ann Dowell, Chipotle’s executive director of human resources. “So for the sake of workplace morale, why not help cover their pet family?”

Typically, a company’s role is merely to bridge the gap between employees and the providers - handling the paperwork, making it easy with direct paycheck deductions and most importantly, negotiating a discounted group rate.

The industry’s top provider, Veterinary Pet Insurance, offers various plans that cost workers between $25 and $35 a month, and cover medical treatments for accidents or certain illnesses anywhere from a maximum $2,500 on the low end up to $4,500. There’s typically a 10 percent deductible.

Pet insurance isn’t so much about paying for routine care, though most providers do include such “wellness” options. It’s more about treating serious ailments like hip dysplasia in retrievers or epilepsy in border collies. And, of course, it’s for peace of mind in case the sound of screeching tires outside ends in a dog’s yelp.

How much do you really need pet insurance? It depends on how much you’re willing to spend to keep your cat or dog alive instead of going to live upstate with a “farm family.”

“It’s for those pet owners who go that extra mile, knowing if something catastrophic happened tomorrow, they’d have some third-party assistance,” says Brian Iannessa at Veterinary Pet Insurance, which also extends coverage to birds.

“That’s true with seniors, sure. But we’re finding it’s also true with young people in big cities like New York. Single people turn to their pets for companionship every day. Even working couples who don’t have children often treat dogs and cats like substitute children.”

Heather Williams of Huntington, L.I., whose 3-year-old boxer Pancake is 90-percent covered through husband Rich’s benefits plan at Computer Associates, says she’s many a horror story about sky-high vet bills.

“I don’t understand why people don’t have insurance,” says Williams, who volunteers at a local shelter. “Bills can go into the thousands, so why not start spreading out the cost so you don’t have to take out another mortgage?”

Over a cat or dog’s normal lifespan, an insurance policy at about $30 a month could run up to about $6,000, a lot to sock away for the worst. But before dismissing pet insurance as just another racket to prey upon the fears of overly attached pet owners, it’s worth noting that veterinary health care has come a long way since Timmy first asked Lassie, “What is it, boy?”

Previously unidentified and fatal ailments now are detected through MRIs and CT scans on animals, and surgical procedures like kidney transplants are not uncommon. So, for those willing to drop thousands to save their four-legged buddy’s life, insurance payments may be preferable to potential debt.

Many who’ve taken advantage of corporate pet insurance are glad they did.

John Dunn, vice president of pet services at Petco, has lifetime coverage up to $36,000 for his two French bulldog puppies, Luigi and Sophie. It’s a good thing, too - last year, Sophie fell off the bed and fractured one of her little forelegs, requiring a specialist to surgically implant a pin and costing $2,000. Months later, Luigi came down with ingrown eyelashes that needed laser surgery, at a cost of $1,800. In each case Dunn’s deductible was just $500.

And Ginny Townsend, a district manager at Petco for 18 years, was enjoying a relaxing Christmas Eve two years ago when her 6-year-old golden retriever Baxter began acting lethargic. He’d eaten a small plastic shopping bag and piece of a tennis shoe, and they were blocking his intestine. After 3 ½ hours of surgery and four days of veterinary patient in-care, Baxter went home with a $3,000 bill.

“I wouldn’t care if it was $10,000,” says Townsend. “But I’m very thankful I had insurance. And it’s not something I would’ve have even known about if it hadn’t been offered at work.”

Showdown looms over kids' health insurance

2007-07-30T04:00:00.000-07:00

Monday, July 30, 2007
By Tony Pugh, McClatchy Newspapers

WASHINGTON -- The Democratic-controlled Congress this week will move one step closer to a showdown with President Bush over the future of children's health insurance.

The House and the Senate are expected to vote on bills to expand the State Children's Health Insurance Program, or SCHIP. The 10-year-old program covers children whose families earn too much to qualify for Medicaid, but not enough to afford private health insurance.

Mr. Bush and many Republican leaders oppose the proposed expansions, claiming they cast too wide a net and would be a step toward "government-run health care."

Speaking to a crowd in Cleveland earlier this month, Mr. Bush said the expanded programs would prompt families that can afford private health insurance to opt instead for government-funded coverage.

"I strongly object to the government providing incentives for people to leave private medicine. ... "I think it's wrong and I think it's a mistake. And therefore, I will resist Congress' attempt to federalize medicine."

Mr. Bush has threatened to veto the bipartisan Senate proposal, which would increase the program's funding by $35 billion over five years. The House bill, crafted solely by Democrats, calls for a $50 billion increase over the same period.

The SCHIP program now costs $5 billion a year, or $25 billion over five years. An additional $2.8 billion a year, $14 billion over five years, is needed just to maintain current service levels, according to the bipartisan Congressional Budget Office.

Mr. Bush wants to expand the program by $1 billion a year, about 36 percent of what the CBO says is needed to preserve current services.

The president's opposition to expanding the program is an ideological line in the sand against growing calls for universal health care. But that position could prove tricky for Republicans who don't want to be tagged as opposing health care for children on the eve of an election year.

HIGHER PENSIONS AND LOWER INSURANCE INSTALLMENTS IN BULGARIA STARTING OCTOBER 2007

2007-07-30T03:53:00.001-07:00

Mon 30 Jul 2007
sofiaecho.com

Pensions in Bulgaria are to increase by 10 per cent from October 1 2007.

The increase resulted from the budget surplus, the Cabinet said after a meeting on July 29 2007.

Budget 2008’s macro-economic framework was confirmed, Focus news agency said. According to the framework, incomes should rise by six per cent while inflation will be 3.7 per cent.

The flat tax rate will be 10 per cent in 2008, Focus said.

No risk of financial instability was foreseen before the end of 2007, the Cabinet said.

Finance Minister Plamen Oresharski said that insurance instalments would drop by three per cent. This was because employers were declaring inaccurate insurance statements to avoid tax.

Is There Discount Term Life Insurance Out There?

2007-07-30T03:52:00.000-07:00

First of all, we’ve all heard of life insurance. Many of us even have it. But what is term life insurance? The meaning of term life insurance is in its name—it covers its policyholders for a certain amount of time—a certain term.

It costs much less (except for the very elderly) than whole life insurance and can be covered in two types of premiums—level-term and annual renewable. The premiums of level-term stay the same throughout the duration of the policy and can usually be purchased in terms up to 30 years; however, annual renewable premiums increase as the policyholder gets older.

Although term life insurance is already less expensive than whole life insurance, there are ways to find discount term life insurance. We all want to save as much money as we can while getting the best coverage possible, right? As when searching for any insurance, the best way to find discount term life insurance is to research several different life insurance providers.

However, you don’t want to simply find a seemingly decent term life insurance provider, search for a policy that’s cheap in price, and sign up. If you do, you could end up with a policy that doesn’t actually suit you at all (that is, if you even qualify for it) and spending much more than you would have if you had searched around for a bit longer.

When shopping for discount term life insurance, look for reputable, financially stable life insurance companies that have well-trained, objective, unbiased insurance agents. These unbiased agents will take your information—your needs and the needs of your family members—research your options, and present the best discount term life insurance to you—not them. You can find information about an insurance agency online or directly from the agency, but you’re more likely to get a reliable review from someone who has used, or is currently using, their services.

By: Jessica Farrell
bestsyndication.com

Get Cheap Car Insurance - Make Getting Quotes Really Easy

2007-07-30T03:47:00.000-07:00

When it comes to getting cheap insurance rates, one of the most important tools you have is information. You need to be knowledgeable about the steps you can take to help ensure that you are eligible for the lowest cheap car insurance rates possible. In addition, you need to know how to locate the companies that offer cheap car insurance and compare available rates.

Everybody wants cheap car insurance, but, alas, the rates are up to the insurer. There are many variables that insurers use in determining your rate, some of which you have influence over and some that you don’t. Age, for example, is one cheap car insurance factor that you’ll just have to wait out. However, young or old, you can do things to make you more eligible for the better cheap car insurance rates.

Naturally, the most obvious is to be careful in your driving, avoiding accidents and traffic tickets. Perhaps not so obvious is to avoid making insurance claims if possible. Sometimes, it is cheaper to just pay for less expensive damage than it is to make a claim, when you factor in how that claim will affect your insurance rates in the future.

Other ways to make yourself more likely to receive cheap car insurance rates include use of devices that help to prevent vehicle theft and to recover it if it is stolen, where you live, as areas with a higher crime rate often result in slightly higher rate quotes, and your choice of car. A more conservative vehicle is more likely to have cheap car insurance than is a sports car.

Also important to getting cheap car insurance is knowing where to look. With the advent of the Internet, you have the opportunity to get quotes and compare prices all over the nation. Using that opportunity can greatly increase your chances of finding the cheap car insurance rates you want.

Information is a valuable tool in getting cheap car insurance. The successful consumer knows where to find cheap car insurance and know what variables can affect rates, adjusting what can be fixed and waiting out the rest. Collecting the right information and acting upon it can help you, too, to enjoy Naturally, the most obvious is to be careful in your driving, avoiding accidents and traffic tickets. Perhaps not so obvious is to avoid making insurance claims if possible. Sometimes, it is cheaper to just pay for less expensive damage than it is to make a claim, when you factor in how that claim will affect your insurance rates in the future.

Other ways to make yourself more likely to receive cheap car insurance rates include use of devices that help to prevent vehicle theft and to recover it if it is stolen, where you live, as areas with a higher crime rate often result in slightly higher rate quotes, and your choice of car. A more conservative vehicle is more likely to have cheap car insurance than is a sports car.

Also important to getting Naturally, the most obvious is to be careful in your driving, avoiding accidents and traffic tickets. Perhaps not so obvious is to avoid making insurance claims if possible. Sometimes, it is cheaper to just pay for less expensive damage than it is to make a claim, when you factor in how that claim will affect your insurance rates in the future.

Other ways to make yourself more likely to receive cheap car insurance rates include use of devices that help to prevent vehicle theft and to recover it if it is stolen, where you live, as areas with a higher crime rate often result in slightly higher rate quotes, and your choice of car. A more conservative vehicle is more likely to have cheap car insurance than is a sports car.

Also important to getting cheap car insurance is knowing where to look. With the advent of the Internet, you have the opportunity to get quotes and compare prices all over the nation. Using that opportunity can greatly increase your chances of finding the cheap Naturally, the most obvious is to be careful in your driving, avoiding accidents and traffic tickets. Perhaps not so obvious is to avoid making insurance claims if possible. Sometimes, it is cheaper to just pay for less expensive damage than it is to make a claim, when you factor in how that claim will affect your insurance rates in the future.

Other ways to make yourself more likely to receive cheap car insurance rates include use of devices that help to prevent vehicle theft and to recover it if it is stolen, where you live, as areas with a higher crime rate often result in slightly higher rate quotes, and your choice of car. A more conservative vehicle is more likely to have cheap car insurance than is a sports car.

Also important to getting cheap car insurance is knowing where to look. With the advent of the Internet, you have the opportunity to get quotes and compare prices all over the nation. Using that opportunity can greatly increase your chances of finding the cheap car insurance rates you want.

Information is a valuable tool in getting cheap car insurance. The successful consumer knows where to find cheap car insurance and know what variables can affect rates, adjusting what can be fixed and waiting out the rest. Collecting the right information and acting upon it can help you, too, to enjoy cheap car insurance.

By: Gavin Bloom you want.

Information is a valuable tool in getting cheap car insurance. The successful consumer knows where to find cheap car insurance and know what variables can affect rates, adjusting what can be fixed and waiting out the rest. Collecting the right information and acting upon it can help you, too, to enjoy cheap car insurance.

By: Gavin Bloom is knowing where to look. With the advent of the Internet, you have the opportunity to get quotes and compare prices all over the nation. Using that opportunity can greatly increase your chances of finding the cheap car insurance rates you want.

Information is a valuable tool in getting cheap car insurance. The successful consumer knows where to find cheap car insurance and know what variables can affect rates, adjusting what can be fixed and waiting out the rest. Collecting the right information and acting upon it can help you, too, to enjoy cheap car insurance.

By: Gavin Bloom
bestsyndication.com

Allstate Boat Insurance

2007-07-27T01:00:00.000-07:00

Link: Allstate Boat Insurance

Today, several million more boaters are sharing our coastal waters, lakes and rivers: over 12.5 million registered U.S. boaters in 2000, an increase of 14% in just 10 years,1 not to mention more than 4.5 million unregistered boaters who use our waterways each year.2
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Can you be sure all boaters on the water today are as safety conscious as you? And could you afford out-of-pocket expenses of $4,500 or more? That’s just the average cost for a boating accident.3 Now is the time to give serious consideration to protecting yourself, your passengers and your property in case you’re ever involved in a boating accident.
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Find calm water ahead when you select boat insurance from Allstate. You can choose from a variety of coverage* options for yourself and your passengers, your boat, trailer, or equipment. You’ll even find coverage* for your personal watercraft (PWC).
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And, if you complete a qualifying boating education course that's sponsored by an approved organization such as the U.S. Coast Guard Auxiliary, United States Power Squadrons® - or a local state course approved by the National Association of State Boating Law Administrators (NASBLA) and recognized by the U.S. Coast Guard -you can become eligible for a boating education discount* from Allstate.

What About Discounts and Savings?
Find out if You Can Save Money with Allstate
Allstate has several boat insurance discounts* available for customers. Depending on what type of boat you own, policy type, coverages purchased and the state in which the policy is written, you may be eligible for one or more of the Allstate boat insurance discounts below. The following is a summary of the boat insurance discounts offered in a majority of states. Please read the Note* that follows this list regarding the availability, qualifications and amounts of these discounts.

* New Boat Discount:

A discount of up to 40 percent may apply to Physical Damage Coverage* for your boat, if the boat is less than 11 years old. The newer the boat, the greater the discount. The age of the boat is determined by its model year.*

* Boat and Auto Discount:

Available to any Allstate boat insurance policyholder who also has their private passenger automobile insurance written with Allstate Insurance Company. Both the boat policy and the auto policy must be written in the same state. Specifically, the discount applies to the boat Liability, Medical and Physical Damage Coverages* and includes a discount of up to 15 percent.

* Boating Education Discount:

Available on Liability, Medical and Physical Damage Coverages* if you complete a qualifying boating education course that's sponsored by an approved organization such as the U.S. Coast Guard Auxiliary, United States Power Squadrons® – or a local state course approved by the National Association of State Boating Law Administrators (NASBLA) and recognized by the U.S. Coast Guard. Up to a 25 percent discount may apply.

* Protective Device Discount:

Available for Physical Damage Coverage* if your boat has one or more of the required protective devices aboard (such as an automatic fire extinguisher system, burglar alarm, ship to shore radio, depth finder, or self bailing system, etc.). Up to a 15 percent discount may apply.

* Primary Operator Experience Discount:

Available if the primary operator has three or more years of boating experience. Up to a 5 percent discount may apply.

* Diesel Engine Discount:

Available for Physical Damage Coverage* if your boat is operated by a diesel engine. Up to a 5 percent discount may apply.

Visit: AllState!

GEICO Boat Insurance: Your Boat Coverage Explained

2007-07-27T00:54:00.000-07:00

GEICO Boat Insurance: Your Boat Coverage Explained Your Boat Coverage Explained
Out on your boat, you leave your cares behind. You don't want to worry about what would happen if your boat was involved in an accident. Boat insurance protects you against accidents, vandalism, and insures you against liability. That means smooth sailing!

What does boat insurance cover? Insurance needs differ depending on the type of boat or watercraft you own. Your policy will explain in detail what is covered and what is specifically excluded. But these coverages generally apply:

Protection From Physical Damage, Perils, and Liability

Most policies cover physical damage to the hull, sails, machinery, furniture, and most other equipment that is normally used on board. Most perils are covered including vandalism, malicious mischief, and even damage that results from latent defects of workmanship.

You are also insured against liability losses. You are covered for damage to another boat or dock, and for bodily injury or death to another person as a result of your negligent operation or ownership of the boat.

In the event that you, your guests or family are injured while on board, the policy provides payment for incidental medical expenses. The coverage also applies if someone is injured boarding or getting off your boat.

Under most policies, the boat trailer is covered against physical loss or damage from any external cause.

The policy coverage provides compensation liability for injury to persons employed by you who may work on your boat, but are not crew members. Mechanics, carpenters, painters, and cleaners are included in this category. To be covered under this policy, they cannot be employed by your boatyard, and the federal Longshore and Harbor Workers' Compensation Act must apply to them.

You may purchase optional coverages as well, such as protection against damage caused by an uninsured boater, coverage for your personal property, and coverage for your fishing equipment.

California Low Cost Auto Insurance Program Expanded to Nine Counties

2007-07-27T00:45:00.000-07:00

California Insurance Commissioner Steve Poizner announced his determination to expand the state's Low Cost Auto Insurance Program to Solano, Marin, Santa Cruz, Madera, Napa, Yolo, Mendocino, Kings and Lake counties. The program is expected to go into effect in early September, once rates are set in each of the newly added counties.

Commissioner Poizner's announcement follows a series of community town hall meetings in each of the counties to examine the need for the program.

"Many drivers simply cannot afford insurance, but uninsured drivers put all travelers at risk," Poizner said. "The expansion of this program in nine additional counties will better enable Californians to comply with the law and protect all motorists from potential losses."

The low cost auto insurance program provides eligible low-income good drivers with auto liability coverage for under $400 a year and as little as under $300 a year in many counties.

The program began in 1999 as a pilot in Los Angeles and San Francisco. A new law, SB 20, authorized the Commissioner to launch the program throughout the state upon his determination of need in each county. Beginning in April 2006, the department began expanding the program statewide. The program is now available in Los Angeles, San Francisco, Alameda, Fresno, Orange, Riverside, San Bernardino, San Diego, Contra Costa, Imperial, Kern, Sacramento, San Joaquin, San Mateo, Santa Clara, Stanislaus, Merced, Monterey, Santa Barbara, Sonoma, Tulare, and Ventura Counties. With the inclusion of latest nine counties, the program will be available in 31 California counties. Since its inception, more than 33,000 policies have been issued.

To be eligible for the program, an applicant must be a "good driver" - no more than one at-fault property damage only accident, or one point for a moving violation in the past three years; and no at-fault accident involving bodily injury or death in the past three years; and no felony or misdemeanor conviction for a violation of the Vehicle Code.

Additionally, family income cannot exceed 250 percent of the federal poverty level ($25,525 for a single person, $34,225 for two persons and $51,625 for a family of four). The value of an insured vehicle must not exceed $20,000.

Source: CDI

Higher auto insurance fees may be down the road

2007-07-27T00:42:00.000-07:00

A court ruling lets stand added charges for those who pay in installments.
By Marc Lifsher, Times Staff Writer
June 29, 2007

Consumer advocates warned Thursday that a legal victory by the Automobile Club of Southern California could spur other insurers to charge customers steep fees for paying their bills in installments.

The issue, the subject of several lawsuits, has prompted a bill in the state Legislature and has come under scrutiny from the California Department of Insurance.

Critics say the installment fees are sometimes not fully disclosed to policyholders until they get a first bill. The Auto Club charges the highest installment fees, an amount that could increase the cost of a $2,000 annual premium by more than $100.

The Auto Club's fees run as high as 18% of a policyholder's unpaid balance. State Farm Mutual Auto Insurance Co., Farmers Insurance Group and other major insurers charge more modest, flat fees. USAA, the state's ninth-largest auto insurer, collects no fees from policyholders who pay in installments.

On Wednesday, the Auto Club prevailed in a challenge to its installment fee plan when the California Supreme Court refused a plaintiffs' petition to review an appeals court decision.

The 4th District Court of Appeals ruled in March that the Auto Club's installment fees represented "the time value of money" and were not premiums subject to regulation by the Department of Insurance. Rather, the fees compensated the insurer for income it would have received if the customer had paid a lump sum and the insurer had been able to use or invest that money.

Attorney Lauren Willis, who teaches consumer law at Loyola Law School in Los Angeles, said the Auto Club decision could send installment payment fees "spiraling out of control," much as an array of unregulated fees has raised the cost of using credit cards in recent years.

Consumers can have difficulty comparison-shopping and "finding out what the real price is going to be" when insurers tack fees onto the basic premium, Willis added.

The Auto Club, the state's fourth-largest auto insurer, says it has been forthright with its 1 million customers when it comes to explaining installment fees. The club has the right to collect the full premium from a customer at the start of the policy, and if someone chooses to spread out payments, there's an additional fee, said Alice Bisno, the club's vice president of government affairs.

Two other major insurers, Farmers and State Farm, could decide to switch to the Auto Club percentage-fee system if they lose pending lawsuits challenging the legality of their current system of charging flat fees for each installment payment, said Timothy Blood, who represents policyholder plaintiffs in both cases.

Harvey Rosenfield of the Foundation for Taxpayer and Consumer Rights in Santa Monica said, "I predict that we'll see abuse crop up everywhere."

Rosenfield said he now was looking to California Insurance Commissioner Steve Poizner to use his regulatory powers to crack down on insurers, if he deems their installment payments excessively high.

"Eighteen percent appears to me to be excessive," said Gary Cohen, the commissioner's general counsel. Cohen suggests that his department still has the authority to limit installment fees when it approves insurance companies' rate proposals. That position is likely to be challenged in court by insurers, now that the Supreme Court has declined to review the Auto Club case.

Meanwhile, the insurance industry is backing a bill that would render the ongoing lawsuits moot and perhaps prevent insurers from losing millions of dollars in legal judgments.

Trade groups representing most major insurers want legislators to pass a measure specifying that installment fees are not premiums and, therefore, not subject to state regulation. The bill won easy passage from the Senate Banking, Finance and Insurance Committee. However, it stalled in the Rules Committee after opposition arose from consumer groups and trial attorneys.

But the bill's author, Sen. Mark Ridley-Thomas (D-Los Angeles), says his measure is intended to ensure that people who buy expensive insurance policies can continue to pay on installment plans. He said he also wanted to clarify the "inconsistency and uncertainty" surrounding the legality of installment payments and protect insurers from lawsuits.

The issue was at the center of a series of lawsuits filed against insurers in 2004 by San Diego firm Lerach Coughlin alleging that the companies violated state law by not including the cost of installment payments in premiums quoted to customers.

The suits also contend that insurers double-charge their customers by folding the cost of administering an installment program into rates approved by the Department of Insurance; then, they add a second fee on policyholder bills for performing that same service.

In a San Diego case now under appeal, a state trial court judge ordered Farmers to pay $115 million in damages.

Insurance companies should be limited to charging nominal fees for people who pay their bills in installments, said Amy Bach, executive director of United Policyholders, a San Francisco consumer group.

"People have to buy this product," Bach said. "If they can't afford to pay in a lump sum, insurance companies shouldn't get to charge whatever usurious installment payment they want just because they have people over a barrel."
Source: latimes.com

Cheap Insurance Secrets

2007-07-22T17:39:00.000-07:00

Can you find cheap insurance? Yes. You can not only spend less on all types of insurance, but you can get more of the coverages you need for less. Here are a few insider secrets to help you out.

Cheap Life Insurance
- Purchase multiple policies. Instead of buying one large policy, save money by buying two, or even three, and staggering the terms. Have one run until the kids are out of the house, for example, and the other until your retirement fund kicks in.

- Investigate the company. Visit www.naic.org/cis, the National Association of Insurance Commissioners site. It has links to check out companies, including their financial condition, and the complaints filed against them.

- Ask about rebates. Some states allow agents to rebate a portion of their commission to you. Check online or by phone. You don't have to be from the state to buy insurance there.

Cheap Auto Insurance

Get several quotes, of course. You probably know that having as high a deductible as you can afford will also reduce the rate. Here are some money-saving tips you may not have known.

- Get the legal minimum for liability coverage if you have few or no assets. Many companies try to sell their "company-recommended minimums" on liability, and even pass them off as the legal minimums. Just get the legal minimums. If you have no assets, you're not a target for a lawsuit.

- Once a year, review your policies. Have a policy review and get new quotes every year or so. If the ticket you had is past the three year mark (or whatever the company thinks is important) they will drop the rate, but not automatically, so ask.

- Remove your kids from your policy. If your kids are at a college that's more than 100 miles away, you can have them taken off the insurance policy and save a lot of money. You can't let them drive the car when they come home to visit though.

Other Cheap Insurance Secrets

- Health insurance tip: Find a group to join. If you don't have health insurance through your employer, join a group that enables you to get a better policy rate. A fraternal organization or the chamber of commerce sometimes have arranged for group policies.

- Home owners insurance tip: Consider higher deductibles. Insurance is for disasters, not small stuff. Plan to pay the first $1000 someday when something happens. In the meantime you'll save money every year on your policy.

- Credit life insurance tip: Just say no. These policies pay the balance of your auto, home or other loan if you die. If you feel you need it, regular life insurance for the same amount is much cheaper.

Whatever type of insurance you are buying, be sure to get several quotes. Ask questions about every part of the policy, and don't pay for things you don't need. Ask about any special discounts you might be eligible for. Asking many questions and really understanding the policy is the key to getting cheap insurance.

By: Steve Gillman
July 20, 2007
Steve Gillman has been hunting down obscure knowledge and useful secrets for years. Learn more and get a free gift at: The Secret Information Site (www.TheSecretInformationSite.com)

Increasing accidents may cap Allstate's car insurance profits

2007-07-22T17:33:00.000-07:00

Bloomberg News
July 20, 2007

If Allstate Corp.'s experience is any guide, profits from car insurance may have peaked.

Allstate, the largest publicly traded car and home insurer in the U.S., said this week that the rate of accident claims in its biggest auto unit rose for the second straight quarter, contributing to only the fifth quarterly decline in the company's underwriting profit in five years. Until this year, the accident rate hadn't risen since 2001.

The easy upside is now gone, said Richard Sbaschnig, an analyst at New York-based Oppenheimer & Co., who has a neutral rating on Allstate's stock. As an investor, I would be more cautious toward the auto insurance sector.

Fewer accidents helped triple the industry's profit margins from 2003 to 2006, allowing companies such as Allstate, Progressive Corp. and Geico Corp. to compete on price, according to Bob Hartwig, president of the Insurance Information Institute. At Northbrook, Illinois-based Allstate, underwriting earnings from the main auto unit more than doubled to $2.5 billion in that period as revenue from premiums rose 10 percent.

This isn't going to be a great business to be in over the next year or so, said Cliff Gallant, an analyst at Keefe, Bruyette & Woods Inc. in New York who rates Allstate and Progressive market perform. If insurers keep lowering their prices and get caught off guard by the increased frequency of claims, then we're going to have a severe decline in profitability.

Allstate stock fell $1.45, or 2.4 percent, to $59.11 in New York Stock Exchange composite trading yesterday after second- quarter results missed analysts' estimates by 4 cents a share.

The company is the second-worst performer in the Standard & Poor's 500 Insurance Index, followed by Progressive, its next biggest rival in car insurance. Progressive's second-quarter profit fell 29 percent on higher claim costs and lower premiums. It didn't disclose its accident rate.

Second-quarter property damage frequency, a measure of accident claims per car, rose 1.8 percent at Allstate's main auto unit. It was the second year-over-year increase since the fourth quarter of 2001. The first quarter rate rose 4.1 percent.

Thomas Wilson, Allstate's chief executive officer, said the advance doesn't signify a major change of direction in the collision trend. The company expects this year's frequency rate to be about the same as in 2006 or slightly up, he said in an interview yesterday. Prices will remain pretty flat into next year, he said.

This is just in the normal range, he said. We have it priced into our business and we are earning a very attractive return in our auto business.

Car insurance is more important after Allstate scaled back its homeowners' business following $5.67 billion in claims from the record 2005 hurricane season. The company's pretax underwriting profit fell 30 percent to $845 million in the second quarter, reflecting a 4.2 percent slide in auto to $589 million.

Allstate blamed lingering storm obligations and higher reinsurance costs for most of the decline, though the higher car accident rate, combined with an increase in the cost of each crash, contributed to the squeeze. Had their been no catastrophe costs in either quarter, Allstate said it still would have spent 1.9 cents more per premium dollar this year because of bigger and more frequent claims in both auto and home units.

Among Allstate's competitors, Berkshire Hathaway Inc.'s Geico unit, Travelers Cos., Safeco Corp., GMAC Insurance, United Services Automobile Association, and Liberty Mutual Group had more accident claims in the first quarter. The latest numbers from Allstate, the only one to report second-quarter results so far, raise concerns that the deviation stems from more than the winter weather that hurt several of them in the first quarter.

Unless the claims costs really start to improve from here, which doesn't seem likely, profitability for auto insurance probably peaked a year or so ago, said Brian Meredith, an analyst at UBS AG in Stamford, Connecticut. He rates the stock reduce2.

If there's a reason to be skeptical that the trend is reversing, it's State Farm Mutual Automobile Insurance Co., the only competitor bigger than Allstate. The Bloomington, Illinois- based company, owned by its policyholders, experienced falling accident rates in the first and second quarter, though the pace of decline slowed, said spokesman Dick Luedke. State Farm doesn't report quarterly earnings.

The trend would be easier to predict were there a definitive cause for fewer accidents. Insurers have suggested it's due to safer cars, an aging population and rising gas prices, though most said they really didn't know.

The industry spent 95.1 cents of every premium dollar on claims and expenses last year, down from 98.4 cents in 2003, according to Oldwick, New Jersey-based A.M. Best Co. The profit margins would have been even wider had companies including Geico and Progressive not increased their advertising budgets.

Every company I'm aware of has taken reductions, lowered their rates, done what they could to become more competitive and increase their market share, said Bill Breslin, senior vice president of claims at San Antonio, Texas-based USAA, the seventh-largest car insurer. The future doesn't look as promising as the last couple years have been.

Copyright © 2007, Chicago Tribune

Is It Worth It: Rental Car Insurance

2007-07-22T17:30:00.000-07:00

Syracuse (WSYR-TV) - It's a common question asked at the car rental counter; do you want you to buy insurance for the car? It's an added expense, but it could come in handy.

When you walk up to the rental car counter there will be many choices to make. Before you go, you should know the answer to this; do you want to buy the company's insurance plan?

Not everyone should say yes.

First, consider the cost, it's about $25. That’s $9 per day for the rental car itself.

It costs $12 to $13 for liability coverage of other property or personal injury, and $3.50 for medical and personal effects of the driver.

We asked insurance agent Karen Persse of Allstate to answer, Is it Worth It?

She says, “The best thing to do is to discuss with your agent to see what kind of coverage you have on your policy. Obviously, you'll have liability because that's mandatory in New York State. So it will transfer to the rental company. The kicker is do you have collision or comprehensive on your vehicle?”

If you have full coverage, our insurance expert says that 70% of her clients do, then a rental car would be completely covered in case of an accident. The coverage and liability would be the same as the policy for your own car.

The other smaller percentage of car owners do not have full coverage on their own cars because either the car is older or it doesn't have any loans on it anymore. Therefore, those are the people who should say yes to the rental car company's insurance plan.

If you have full coverage, buying the plan would mean you'd be double covered. If you don't, then spending the $25 per day would cover all damages in case of an accident.

Some credit card companies offer insurance plans when you pay with plastic for the rental car. Each company varies with their coverage, so the best advice is to call the 800 number of the company and ask for the coverage policy in writing.

Copyright 2007 CLEAR CHANNEL COMMUNICATIONS

Factors that affect car insurance rates

2007-07-22T17:24:00.000-07:00

Toronto Star, Canada
Jul 22, 2007
Ellen Roseman

What determines the rate you pay for car insurance?

In last week's column, I looked at the impact of where you live. If you're in a more populated area with more vehicles on the road, your chances of getting into an accident are higher – and your chances of losing your car to theft are higher, too.

Besides your postal code, here are other factors that car insurance companies can take into account when setting your rate.

The car you drive: Insurance companies rate makes and models of vehicles according to their actual claims experience. They look at the likelihood your car will be stolen or involved in an accident and how much it will cost to repair. You can find details for 1993 to 2005 models in an online booklet, How Cars Measure Up, at the Insurance Bureau of Canada's website, www.ibc.ca.

Your driving record: This includes at-fault accidents, the length of time you've been licensed to drive, whether you've taken a driver's training course that the insurer recognizes, and driving convictions, such as speeding and impaired or careless driving.

How much you drive: The more time you spend on the road, the higher your chances of getting into an accident. If you live close to work, you probably will have a lower premium than someone who lives far from work or who needs to use his or her vehicle for business. You can reduce rates by using public transit, but you should tell your insurer if you drive to a subway, bus or train station.

Your age and gender: Mature drivers generally pay less than younger drivers. At 25 years old, drivers usually can see a decrease in their insurance premiums. Also, young male drivers generally pay more than young female drivers.

This may sound discriminatory. However, car insurance companies must have their rates approved by the Financial Services Commission of Ontario, an arm's length agency of the provincial government.

"Companies have to provide us with actuarial data that supports any of the rates they're charging," says Rowena McDougall, a spokeswoman for the commission.

Here's a list of factors that car insurance companies can't take into account when deciding how much you will pay:

Your employment history.

Your credit history or credit score.

Your gross or net worth and level of indebtedness.

A bankruptcy or history of bankruptcy.

Whether or not you own a credit card.

How long you've lived in your residence.

Whether or not you own a home.

Whether your vehicle is owned or leased.

Whether there was a period of time when you had no car insurance coverage.

To save money on car insurance, you can increase your deductibles (the out-of-pocket amount you pay on collision and comprehensive claims). You can install a theft deterrent system – but check with your insurance company to find out what systems qualify.

Ask your insurance company, agent or broker about any discounts that may apply to you. Can you save money if you insure more than one vehicle or if you buy your home insurance from the company?

What if you have been with the company for a certain number of years without an at-fault accident? What if you're retired? What if your teenaged driver has good marks in school? It never hurts to ask, since each company applies discounts differently.

You can reach Ellen Roseman by writing Business c/o Toronto Star, 1 Yonge St., Toronto M5E 1E6; by phone at 416-945-8687; by fax at 416-865-3630; or at eroseman@thestar.ca by email

Choosing the insurance policy that’s right for you

2007-07-19T02:33:00.000-07:00

Deciding to buy a life insurance policy is one of the most selfless things that you can do for your family. It’s also one of the most difficult choices to make—literally and emotionally. With the different varieties of life insurance policies out there, which one is right for you?

“There’s a lack of public understanding and knowledge of what ‘savings’ and ‘protection’ and ‘investment’ are. We keep telling ourselves that everything is going to be alright, but the key to real security is preparation,” says Peter Coyiuto, president of First Guarantee Life Assurance Co. Inc. (First Life).

“Life insurance is a caring gift: it’s a very personal way of making sure that your loved ones will be safe even without you. First Life exists to provide meaningful and responsive financial products and services to our policyholders, based on an uncompromising commitment to place their needs first,” Coyiuto explains. This overriding commitment to personalized service has given rise to products and services that are tailored to suit a person’s individual needs.

Temporary or permanent?
Depending on some basic factors, such as your age, income, number of dependents, and overall health, your first decision might be whether you want to take out a permanent or temporary insurance plan. A temporary or “term” life insurance plan is cheaper than other types of insurance but doesn’t have maturity benefits nor cash values. On the other hand, permanent life insurance plans are bit more expensive but offer family protection income, retirement income, and guaranteed savings in the long run.

Term plans are suitable for people who feel that their need for protection is only temporary. Take for example a married couple with an outstanding mortgage or loan from a financial institution: they might want to have a term insurance plan to help cover their debt in case anything happens to either of them. Once the debt is paid off after a few years, they can easily terminate the plan with no worries. But there are also provisions to either renew the plan or convert it into a permanent plan for more benefits.

There are several kinds of permanent life insurance plans: whole life, limited pay life and endowment. Whichever kind you choose, your beneficiaries are guaranteed to receive a death benefit when you pass away. These plans also have a maturity period, after which you get a maturity benefit—usually on the policy anniversary nearest your 99th birthday.

The many faces of permanent life insurance
A whole life plan requires premium payments throughout the lifetime of the insured, while a limited pay life plan charges premiums for just a limited number of years after which the policy is fully paid up.

Endowment plans are good option for people who want to save up for future projects or for retirement. Because endowment plans have earlier maturity dates, the proceeds are usually paid as maturity benefits rather than death benefits. The protection period can be based on age or a specified number of years. For example, First Life’s First Cash Builder 60 plan when the policy holder reaches the age of 60, whereas its First Peso Builder 20 plan matures after 20 years regardless of how old you were when you signed up for it.

Participating in the company’s surplus
As in any business, one’s monetary contributions to a life insurance company (in the form of premiums) go toward maintaining and growing the company. Sometimes, if the insurance company is doing very well, it has “divisible surplus” which can be shared among holders of participating insurance plans.

A policyowner’s proportionate share in the divisible surplus of a life insurance company is called the policy dividend. The company declares the rate of dividends at the end of each year. But because dividends depend on the profitability of the company’s operations, they are not always guaranteed. Dividends may be received in cash or can be reinvested into your insurance policy—to help pay for your premiums, for example, or to buy additional insurance.

First Life’s 1st Star Series are examples of participating plans that share in the company’s surplus by way of annual reported dividends. Spurred by popular demand for stable investments, the company even offers Dollar Builder plans that are similarly structured to their regular offerings but are sold in US dollars.

Making the right choice
Deciding what kind of life insurance is right for you is a choice that you have to discuss closely with your life insurance agent. These agents are specially trained to listen closely to you about any concerns that you think should be addressed, and don’t be afraid to ask about anything that you don’t understand.

But ultimately, it’s the initial decisions to buy life insurance that matters most. Whatever kind of life insurance policy you choose, the most important thing is that you have taken that first crucial step towards ensuring your loved ones’ futures. “It’s that first step that really counts,” says Coyiuto.

Term Life Insurance Definition

2007-07-19T02:31:00.000-07:00

Term Life insurance has been with us for a long time. It is the least expensive of all the life insurance policies. Term life insurance is life insurance that provides protection for the named insured over a stated period of time. That is what differentiates it from other forms of life insurance. Term insurance has no equity or cash value accumulation and so it is primarily purchased for the security provided by the death benefit. There are three basic forms of term life insurance.

1. Decreasing Term – This policy is most commonly associated with mortgage protection insurance. The face amount decreases over a stated period of time. A thirty year mortgage for a homeowner is appropriately insured by a thirty year decreasing term policy for the same mortgage amount. The mortgage balance and the term policy decrease at about the same rate and so the homeowner can be assured that his home will be paid for whether he or she lives or dies.

2. Level Term – Level term insurance also provides protection for a specific time period. The face amount remains level throughout the stated period. This policy is often purchased for short term debt or intermediate term debt. You can purchase 5, 10, 15 and 20 year term policies from most insurance companies.

3. Annual Renewable – This form of term insurance is the least recognized of all term policies. It provides a level amount of insurance but the premium increases each year at the policy renewal date. The premiums can be very low at first but can escalate into very high premiums as the insured gets older.

All of these term life insurance policies have there advantages but the common denominators that give term life insurance its definition remains the same. The policy is always for a stated period of time and there is no equity or cash value accumulations. Those two features define term life insurance.

By: Greg Haehl
(best syndication)

CONSUMER REPORTS: Pet insurance

2007-07-19T02:29:00.000-07:00

KUSA - Keeping our pets happy and healthy is big business.

Last year we spent over $9 billion on vet care and $230 million just on pet health insurance. More and more businesses are offering pet insurance, but is it a good deal?

You can get lots of information online. Most sites give you price quotes instantly. You have to look closely to see what policies cover and more importantly, what's not covered. Accidents, for example, are covered in basic policies, so incidents like the recent tainted pet food would likely be covered. Most pet insurance policies won't cover pre-existing conditions or hereditary or congenital problems and will limit coverage for older pets. Most basic policies do not cover annual shots and checkups. You have to pay extra. If you are getting a policy just for that, it is probably not worth it.

When your pet needs surgery, that's when the money can really add up. Visits for dogs are about $450, for cats $360, according to the American Pet Product Manufacturers Association.

Consumer Reports says if your pet is older and likely to need extra treatment, a policy might be worth it, but only if the premium will not exceed average surgical costs. Otherwise, you are better off putting the money into an interest-bearing account to handle your pet's medical bills.

Another way to save money is to ask your veterinarian if there is a hospital that offers wellness packages, which have discounted prices on things such as vaccinations and spay/neuters.

Consumer Reports has no commercial relationship with any advertiser or sponsor appearing on this Web site.

(Copyright © 2003-2007 Consumers Union of U.S., Inc.)

Allstate Insurance Discount Not Available In Hawaii

2007-07-19T02:27:00.000-07:00

Insurance Commissioner Asks Company To Amend Changes

HONOLULU -- Hawaii motorists are not able to take part in a discount plan that Allstate Insurance is offering across the country.

A man from the Big Island told KITV that he was upset he could not take advantage of a "safe driver bonus" being offered by Allstate Insurance in about 40 other states. It is being featured in national commercials.

In fine print on the screen it says: "not available in every state." Hawaii is one of the states where drivers cannot get the discount of up to 5 percent on premiums.

Allstate applied for rate changes in Hawaii in January. Insurance Commissioner J.P. Schmidt has not approved the changes.

"Part of the problem is it may save some people money and it may be more expensive for others," Schmidt said.

Schmidt said that while drivers without accidents or moving violations in the previous six months would save 5 percent off their premiums under Allstate's proposal, drivers with recent accidents or speeding tickets could see rate hikes of anywhere from 6 percent to 13 percent. That is something the company does not mention in its commercials.

"For other people, they are raising the rates and we want to make sure that the rise in rates is also justified," Schmidt said.

Allstate is Hawaii's fifth largest auto insurance carrier, covering a little more than 59,000 cars statewide at the end of last year.

"Allstate has agreed to revise the program to some degree in order for it to be properly justified. So, I think we are close to an approval," Schmidt said.

While car insurance companies can charge higher rates for people who have had bad driving records in Hawaii, they have to justify any hikes. However, state law prohibits companies from using age, credit history or gender to determine car insurance rates in Hawaii.

A spokesman for Allstate Insurance said the company is "very eager" to offer its new plan in Hawaii, and is making sure the product meets all Hawaii laws and regulations.

Copyright 2007 by TheHawaiiChannel.com All rights reserved.

Invalid Car Insurance for 1 in 10 Motorists

2007-07-19T02:23:00.000-07:00

I was amazed to hear that 6% of people have given incorrect information when taking out a new car insurance policy. This is a staggering 1 in 10 of us, whilst a further 5% in and effort to save money have lied about where they are their vehicle on an evening.

There are drivers who have not declared their speeding, drink driving convictions and also bans which they have received, they total 3%.

I can appreciate wanting to keep the cost of car insurance to a minimum but is it really worth it.

Also there is nothing more confusing when applying for car insurance on my first policy I didn’t have a clue and was confused at the different types of insurance. Take for instance social and domestic pleasure does this mean you can drive to work or do you have to include commuting on your insurance? Apparently you do, and this is something that needs explaining when taking out a policy!

There are of course people who have made a genuine mistake, which I must say is easy to do especially when applying online or adding other drivers to the policy. 16% of people have admitting not understanding the questions when asked and a third of people have made a genuine mistake.

At present the average policy costs around £400.00, whilst the average claim is in the region of £1600.00.

Please remember that if any of the details which you have passed to your insurance company are incorrect, then your insurers are not liable to pay out on a claim, which would leave the motorist responsible for any claims made.

'Lock up to avoid car insurance claims'

2007-07-19T02:22:00.000-07:00

Motorists with older vehicles were today warned they are more likely to have to make a car insurance claim if they fail to take simple security measures.

The advice came after a surge in vehicle related crime in the Basildon and Thurrock areas saw 67 cars stolen in the past fortnight, reports the Echo.

Acting inspector Danny Parsons said Essex police would be stepping up patrols in a bid to deter the thieves, but added that car owners could help by ensuring they lock their vehicles.

He added: "If people have older vehicles, without hi-tech security devices, items like crook locks are still worth using. It's not rocket science to figure out that a car with a crook lock is less likely to be taken."

The news comes just days after it was revealed that there has been a surge in car insurance claims resulting from vehicles being broken into for their satellite navigation systems.

Three in four motor insurance customers could save on their cover with Kwik-Fit Insurance, according to research conducted last year.

ADNFCR-8000150-ID-18212251-ADNFCR© Adfero Ltd

Car Insurance Rates Continue to Decline in 2007, Reports Insurance.com

2007-07-19T02:19:00.000-07:00

The company’s "2007 Mid-Year Auto Insurance Pricing Report" shows a national decline in annual premiums of 1% or approximately $20 so far in 2007.

Cleveland, OH (PRWEB) July 17, 2007 - Insurance.com, the largest online auto insurance agency in the United States, reports that car insurance rates continue to decrease depending on geographical location. The company’s "2007 Mid-Year Auto Insurance Pricing Report" shows a national decline in annual premiums of 1% or approximately $20 so far in 2007.

Based upon data drawn from the lowest average car insurance rates viewed by almost 700,000 consumers in the first half of 2007, the Mid-Year Report gives interesting insights into state-specific pricing trends, as well as the general trends of insurance premiums.

“So far in 2007, we have seen a 1% decrease in car insurance rates from 2006,” says David Roush, CEO of Insurance.com. “The national average premium in 2006 was $1,916, in 2007 that average has dropped to $1,896 – a modest decline but a nice reprieve considering the rising cost of gas.”

"Prices still vary considerably on a case-by-case basis, so it's essential to compare rates before making a purchase. Insurance.com makes it easy for consumers to compare rates and buy the policy that's right for them, either online or over the phone with knowledgeable licensed agents."

To read Insurance.com's 2007 Mid-Year Auto Pricing Report, click here or visit http://www.insurance.com/quotes/Article.aspx/artid/542 to find out more.

About Insurance.com’s 2007 Mid-Year Auto Insurance Pricing Report
Insurance.com’s Auto Insurance Pricing Report highlights the lowest average car insurance rates viewed by almost 700,000 car insurance consumers on the Insurance.com platform in the first half of 2007*. The information comes from actual auto insurance quotes consumers received from over a dozen of the nation’s leading auto insurance companies who participate on Insurance.com’s comparative auto insurance platform.

*Disclaimer
While the Insurance.com’s 2007 Mid-Year Auto Insurance Pricing Report is a broad indicator of pricing activity in the personal auto insurance marketplace on a per household basis, it is not a comprehensive index as it reflects only the pricing activity of carriers that have participated in the Insurance.com auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, Massachusetts) and the aggregate profile of consumers who shop using the Insurance.com platform.

About Insurance.com
Insurance.com, based in Solon, Ohio, is owned and operated by Insurance.com, Inc, a ComparisonMarket Company. Insurance.com enables consumers to instantly compare and buy competitive auto insurance quotes directly from more than a dozen leading insurance companies. When ready to purchase, users have the option of completing the transaction online or talking directly to an unbiased licensed agent. Other products include life, health and home insurance as well as travel, dental and pet health insurance. Insurance.com also operates 4insurance.com.

In addition to Insurance.com, the company provides private labeled auto insurance solutions to financial institutions, affinity groups and online marketplaces to offer their customers real choice and savings opportunities on auto insurance rates.

LINKS:
http://www.insurance.com/quotes/Article.aspx/artid/542
http://www.insurance.com/quotes/auto.aspx

CONTACT:
Marc Zeitlin
Insurance.com
858-481-7160
mzeitlin @ insurance.com

Finance puts integrated car insurance plan on hold

2007-07-19T02:17:00.000-07:00

THE government is holding off a plan to introduce an integrated insurance system for motor vehicles, aimed at reducing the number of fake policies, after an industry association threatened to go to court to stop the program.

Finance Secretary Margarito Teves told reporters yesterday that the finance and transportation departments had agreed instead to put temporary safeguards in place.

“We are working on an interim solution right now,” Teves said. “There will be a status quo.”

The government earlier sought to have the compulsory third-party liability insurance integrated into the Land Transportation Office’s computerized system to reduce the number of fake policies.

Under this plan, the Government Service Insurance System would take over the P3-billion motor vehicle insurance business.

But insurance companies represented by the Philippine Insurers and Reinsurers Association threatened to go to court to stop the plan, saying it would displace about 94 private insurance companies and their 12,000 licensed agents.

An association spokesman said the government’s plan violated the Insurance Code and the Constitution, as only one entity would monopolize the business.

Under a temporary system being worked out, the Land Transportation Office will verify the authenticity of the third-party liability policies.

In Malacañang, Executive Secretary Eduardo Ermita said small insurance companies had lobbied against the government plan to integrate the third-party liability policies.

“They are small insurance companies... we hope they will not be eliminated because there are so many people who will lose their jobs,” he said. Lawrence Agcaoili and Fel V. Maragay

News : Car Insurance Industry May Not Be Ready For Patrick Plan

2007-07-19T02:10:00.000-07:00

BOSTON (AP) -- Massachusetts Attorney General Martha Coakley says the state's auto insurance industry may not be ready for increased competition.

Insurance Commissioner Nonnie Burnes on Monday announced a proposal to transition the state to "managed competition."

She says the plan would continue to give the state strong regulatory control to protect consumers from excessive rates.

But Coakley says she has concerns about whether the market is prepared for rates to be set by competitive pricing.

The AG says her office wants to ensure consumers are protected.

But Governor Patrick is supporting the plan.

He says the goal of bringing increased competition strikes a fine balance between the free market and government control.

Massachusetts in the only state where state regulators, not the market, set car insurance rates.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

Very Cheap Car Insurance - It Exists But You Have To Know What To Ask For

2007-07-19T02:04:00.000-07:00

When someone tells you that they have very cheap car insurance then you need to be cautious. What kind of insurance profile does that individual have that would give them the benefit of very cheap car insurance? People will often complain about their car insurance rates to a friend or neighbor and too often that neighbor or friend will claim that their insurance is much cheaper.

That may be true for a number of reasons. We don’t all drive the same cars. We don’t have the same driving records. We have different ages of drivers. There are a whole lot of variables in the criteria that make up the car insurance rate.

Credit Reports – Most of the insurance companies use credit as part of the equation when setting rates. Some people do not understand the relationship. Actuaries have come up with the statistics that prove credit to be a significant rating factor. There is a stability factor and relationship to accident frequency that coincides with the credit history.

Vehicle Types – This can be kind of tricky. Some newer vehicles actually have better rates than the older vehicles because of all the safety features. Some vehicles have high theft rates. Make sure that you get the vehicle identification number of any new vehicle purchase and give it to your insurance company to obtain your new rate.

Rating Territory – You are stuck with this one unless you move to another geographical area.

Driver Info – The driving records and ages of your drivers will play a significant part in your rate.

Discounts – There are several ways to discount your car insurance. Purchase the home policy with the auto policy to get a multi-policy discount. Good student and drivers training discounts are available to young drivers with some companies. Retirement discounts and discounts for taking a mature driving course are available for senior citizens.

The cheaper rate is really up to you. Do your home work and ask your insurance company a lot of questions.

By: Greg Haehl
(Best Syndication)

Term Life Insurance With No Exam

2007-07-19T02:01:00.001-07:00

Everyone wants a painless and easy approach when it comes to purchasing life insurance. That can actually be a reality if you know what to look for when shopping for life insurance. The painless part has every thing to do with the cost. Term life insurance is by far the least expensive of all forms of life insurance. Easy has everything to do with making a life insurance purchase that is simple and time saving.

That points to purchasing insurance that requires no medical exam. These are called the non-medical limits by most insurance companies. That’s the good news. The bad news is that the non-medical limits get very restrictive as you get older. Life insurance companies need examinations to underwrite policies as we get older.

If painless and easy is your goal then it behooves you to shop for the largest face amount of life insurance that you can purchase without a physical exam. The medical insurance bureau is used by almost all life insurance companies to investigate the medical background of all of its applicants.

The MIB may have medical information on an applicant that may eventually require a medical examination or a rejection of the application. Do not seek a non-medical insurance policy to hide a pre-existing condition. A future claim may be denied because of misrepresentation on the application.

Try the marketplace and research the non-medical limits. If you are in good health and have no pre-existing condition then a life insurance purchase without an exam is a definite time saver and will make life easy for you and the insurance company.

Make sure that you divulge all of your medical history on the application as well as your primary care physician. Annual physical exams and regular medical check ups are viewed as a positive by life insurance underwriters. There you have it. You have enough information to implement a painless and easy strategy for your next term life insurance purchase.

By: Greg Haehl

Try the marketplace and research the non-medical limits. If you are in good health and have no pre-existing condition then a life insurance purchase without an exam is a definite time saver and will make life easy for you and the insurance company. Make sure that you divulge all of your medical history on the application as well as your primary care physician. Annual physical exams and regular medical check ups are viewed as a positive by life insurance underwriters. There you have it. You have enough information to implement a painless and easy strategy for your next term life insurance purchase.

No Load Term Life Insurance

2007-07-19T01:57:00.000-07:00

Have you ever heard the term load and no load in the financial service industry? The loading of an insurance product usually always involves the agent’s commission and the company’s expenses. Some policies have what they call front end loads and back end loads. These loads are normally associated with permanent insurance policies.

The cost of doing business is all wrapped up in the loading of a policy. No load term life insurance is probably the least expensive form of life insurance in the market. You often wonder what makes one company so much cheaper than the other and it usually has to do with the type of goods and services provided.

Those goods and services are what make up the loading aspect of the life insurance policy. The no load term life insurance policy usually indicates that you are primarily purchasing direct from the insurance company and with little or no professional advice or opinion.

The life insurance professional is still very important to a great number of people. Buying life insurance direct from a company without an agent may be less expensive but it also may leave you wanting when it comes to professional counseling and service.

Term life insurance is very simple and so the purchase of term life insurance may be something that you can handle on your own without a professional. These are individual choices and preferences that each of us must decide upon before we buy life insurance.

Term life insurance is inexpensive to begin with and so researching the market place for a no load product may or may not have a major affect on the premium. Ask about loading when you shop for term life insurance. You may be surprised at what you learn about the insurance companies and how they come up with their rates. It will also help you when you inevitably begin to shop for permanent life insurance.

By: Greg Haehl
(Best Syndication)

Life Insurance From FNB Now Available Online

2007-07-19T01:55:00.000-07:00

FNB's long term insurance products have already been welcomed by South Africans as the only life assurance policies that pay back policy holders while they are still alive. And now quotes for those FNB life insurance policies are available online at Finance In Motion.

(PRWEB) July 18, 2007 -- Life insurance policies from FNB have already proved extremely popular since they were introduced in February 2006. The main reason is that these innovative long term insurance products give policy holders money back while they are still with us, in essence rewarding them for staying alive.

Now, there is another compelling reason to add to the list: prospective life assurance purchasers can get an FNB life insurance quote online within 60 seconds thanks to Finance In Motion (http://www.fim.co.za).

FIM is a South African financial advisor for Long and Short term insurance and site visitors can get a quick FNB E-Quote from them for the FNB Aspire product without the hassle of filling out endless forms or having to deal with any pushy brokers.

FIM is certainly taking South African insurance into the 2.0 Internet world as it gives clients the ability to apply for everything from bridging finance to basic coverage for cars.

Personal finance mavens gravitated towards the FNB life assurance products when they were released because the Living Bonus option and the Living Future Benefit option were both appealing and definitely catered to a need in the Long Term insurance market. Policy holders could now get their premiums back thanks to hybrid benefits.

The Living Bonus rewards policy holders who do not expire, paying back 10% of the premiums every three years. This money is also tax-free. The Living Future Benefit pays back the whole insured amount if the policy holder is still alive at the end of the insured term, either 10 or 20 years.

Instead of seeing life insurance as a grudge purchase FNB clients can now truly view it as an investment vehicle. And with the advent of online financial advisors such as Finance In Motion anyone can now get into that vehicle and drive away to a better financial future, all within minutes.

Life Insurance Settlements Help Seniors Get Much Needed Cash Out of Unneeded Policies

2007-07-19T01:52:00.000-07:00

Detailed information about Life Insurance Settlements for seniors is now found on the NewRetirement.com website. Life Insurance Settlements are a recent innovation that let seniors take life insurance policies and turn them into cash. Life settlement brokers can offer more value than the insurance providers, which only offer a cash surrender value.

San Francisco, California (PRWEB) July 18, 2007 -- Today NewRetirement.com, an education and advocacy website for retirement planning, launched a new series of articles introducing life insurance settlements. Life insurance settlements allow seniors to sell unwanted life insurance policies for cash. Retirees can capture more value by using the life settlement than they would by simply turning their policy over to their insurance provider for its stated cash surrender value -- often three to five times the cash value. In fact, most often either the insured lets the life insurance policies lapse or the beneficiaries simply never collect the benefits.

Most visitors to NewRetirement.com are seniors who are looking for ways to improve their financial well-being in retirement. Using a life settlement is a relatively new option for retirees to improve their financial status. Seniors nearing seventy or older who own a life insurance policy that they no longer need are the best candidates for this product. Generally speaking, eligibility is dependent upon age and health of the individual and the face value of life insurance policy they hold. NewRetirement's article "Assessing Eligibility" details all the factors used by policy buyers to evaluate eligibility. Individuals should contact a reputable life settlement broker to determine if they are eligible for a life insurance settlement.

To help protect seniors from unscrupulous brokers, NewRetirement.com's life settlement section includes a 9-point checklist to use when evaluating a life settlement broker. In addition, at the visitors' request, NewRetirement.com can also put them in contact with qualified pre-screened brokers that will generate quotes from competing buyers. The competition helps maximize the return on the policy for the insured. The senior life settlements section is rounded out with one article providing information that describes when to use or avoid life settlements and another outlining what to expect in the application process.

The NewRetirement website covers a variety of other retirement financial services and products: reverse mortgages, mortgage refinancing, debt consolidation, annuities, relocation, financial advisors, supplemental health care insurance and long term care insurance.

NewRetirement.com also offers a proprietary data analysis engine, presented in the form of a retirement calculator. This free retirement calculator interactively responds to visitors' input with customized presentation of financial planning options matched to their specific situation. A user can save their data to continue working at another time, or return to update it once their situation has changed. For example, they can calculate how much longer their retirement income might last after securing a reverse mortgage.

About NewRetirement LLC. NewRetirement LLC was founded in 2004. NewRetirement's management team has experience and education from several nationally known organizations. Among these companies are: Charles Schwab, JP Morgan, Embark.com, Wells Fargo, E-Trade, The Princeton Review, BusinessWire, AllAdvantage.com, Insurance.com, Viant Consulting, Williams Sonoma, Seer Technologies (IBM/First Boston), and US Web, among many others. The team includes graduates from: Stanford's Graduate School of Business Administration, the University of Michigan's Graduate School of Business Administration, Boston University, Haverford College, Carnegie Mellon and several others.

NewRetirement.com's corporate headquarters is located at 100 Pine St, Suite 2250, San Francisco, California 94105. Paul Lowrey, Director of Marketing, can be reached at 415-738-2435. Email inquires email should be sent via the site's Contact Us page. The website URL is www.newretirement.com.

Term life insurance - Definition

2007-07-16T15:01:00.000-07:00

Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

Term life insurance provides coverage for a limited period of time, the relevant term. After that period, the insured can drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium dollars if no claims are filed. As an example auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by say an earthquake or fire. Whether or not these event will occur is uncertain, and if the policy holder discontinues coverage because they have sold the car or home the insurance company will not refund the premium. This is a pure risk protection.

Usage

Because term insurance is a pure death benefit, its primary use is generally to provide for covering financial responsibilities of the insured. Such responsibilities may include but are not limited to consumer debt, dependent care, college education for dependents, funeral costs, and mortgages.

Annual renewable term

The simplest form of term life insurance is for a term of one year. The death benefit would be paid by the insurance company if the insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term. The premium paid is then based on the expected probability of the insured dying in that one year.

Since the likelihood of dying in the next year is low for anyone that the insurer would accept for the coverage, purchase of only one year of coverage is rare.

One of the main challenges experienced with some of these policies is requiring proof of insurability to renew. For instance the insured could acquire a terminal illness within the term, but not actually die until after the term expires. Because of the terminal illness, the purchaser would likely be uninsurable after the expiration of the initial term, and would be unable to renew the policy or purchase a new one.

This issue is frequently overcome by a feature in some policies called guaranteed reinsurability included on some programs, that allows the insured to renew without proof of insurability.

A version of term insurance which is commonly purchased is annual renewable term (ART). In this form, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years. This period varies from 10 to 30 years, or occasionally until age 95. As the insured ages, the premiums increase with each renewal period, eventually becoming financially unviable as the rates for a policy would eventually exceed the cost of a permanent policy. In this form the premium is slightly higher than for a single year's coverage, but the chances of the benefit being paid are much higher.

Level Term Life Insurance

Much more common than annual renewable term insurance is guaranteed level premium term life insurance where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.

In this form, the premium paid each year is the same, and is based on the summed cost of each year's annual renewable term rates, with a time value of money adjustment made by the insurer. Thus, the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.

Most level term programs include a renewal option and allow the insured to renew for a maximum guaranteed rate if the insured period needs to be extended. This clause is typically only invoked if the health of the insured deteriorates significantly during the term.

Payout Likelihood and Cost Difference

Both term insurance and permanent insurance use the exact same mortality tables for calculating the cost of insurance, and a death benefit which is income tax free, as long as the policy is in force and premiums are current; however, the premiums are substantially different.

The reason the costs are substantially different is that term programs may expire without paying out, while permanent programs must always pay out eventually. Insurance industry studies show that it is very unlikely that the death benefit will ever be paid on a term insurance policy.[citation needed] One study placed the percentage as low as 1% of policies paying a benefit. The low payout likelihood allows term insurance to be relatively inexpensive. The low payout percentage is a combination of there being a low likelihood (in the aggregate) of a random, healthy person dying within a short period of time. Because of the low likelihood of an insurer having to pay a death benefit, term insurance seems better when considered in terms of coverage per premium dollar basis - by a factor of up to 10
(Wikipedia)

Lincoln Financial Launches Two Term Life Insurance Products - Quick Facts [LNC]

2007-07-16T14:53:00.000-07:00

7/11/2007 2:57:13 PM Lincoln Financial Group (LNC) said it recently launched two term life insurance products in its robust Unified Product Portfolio, Lincoln LifeElements and Lincoln LifeStratos, expanding the company's term coverage across multiple markets.

Lincoln LifeElements and Lincoln LifeStratos, which are issued by the two life insurance companies of Lincoln Financial Group -- The Lincoln National Life Insurance Company and Lincoln Life & Annuity Company of New York, are designed to adapt to clients' changing life stage needs. Both products offer flexibility and client choice, along with death benefit protection.

Lincoln LifeElements is designed to serve the market space between highly affluent and middle income individuals with an emphasis on professional families and small business owners. It is a term insurance policy with guaranteed level premiums for 10, 15, 20, or 30 years, with a minimum face amount of $100,000. The Lincoln LifeStratos product is geared for the highly affluent market and will feature the same differentiated service that Lincoln's distribution partners already enjoy with the company's permanent product portfolios. Lincoln LifeStratos Level Term is for those seeking a death benefit of $5 million or greater. The policy features guaranteed level premiums for client's choice of 10, 15, 20, or 30 years.

Cheap Term Life Insurance

2007-07-16T02:18:00.000-07:00

Should you buy cheap term life insurance? It's an often-asked question to which there is a cheap and simple answer. If you have a mortgage or you have a partner, family or dependants that could suffer financial hardship as a result of your death then cheap term life insurance is a must!

Cheap term life insurance, otherwise known simply as life insurance or term life is a cheap life insurance policy that pays out a lump sum upon your death. The premiums are very cheap and term life insurance policies are very easy to obtain. There are two basic types of term life insurance available from insurers - cheap decreasing term life insurance and cheap level term life insurance.

Cheap decreasing term life insurance

Cheap decreasing term life insurance is very cheap. For only a few pounds each month a cheap decreasing term life insurance policy will pay the balance of your mortgage should you die before it reaches full term. This type of term policy is called decreasing term life insurance because the sum insured decreases in line with your outstanding mortgage balance. The cheap premium remains the same for the life of the policy, making it an exceptionally cheap way to secure life insurance. A cheap decreasing term life insurance policy ONLY pays out a lump sum to clear your mortgage. This type of cheap term life insurance does not make any other provision for the loved ones you leave behind.

Cheap level term life insurance

Level term life insurance policies are not as cheap as decreasing term life insurance, although these types of term policies overall are still cheap, having only slightly higher premiums attached to them. The reason for the premium not being as cheap is that level term policies pay off your mortgage AND leave a lump sum to your partner, family and/or dependants. The sum insured through a cheap level term life insurance policy remains the same through the life of the policy, as does the cheap premium.

A cheap level term life insurance is recommended to run in tandem with your mortgage. However, a cheap level term life insurance policy can run differently from the term of your mortgage. For instance, you could take out a 10-year level term life insurance policy that is separate from any other cheap premium life policy covering your mortgage. The premiums on the 10-year insurance policy will not be as cheap because the term is short, but it will provide you with additional life insurance cover in the unfortunate event of your death.

By: Gary Tallon (Best Syndication)

Cheap Home Owner Insurance - Self Insure And Save Money

2007-07-16T02:12:00.000-07:00

The whole concept of insurance revolves around protecting the assets of an individual from financial loss due to an unpredictable event. The reason that we purchase insurance is to protect ourselves from financial disasters. We rely upon the insurance company to take on the risk in exchange for the premiums that we pay. The average consumer spends very little time thinking about insurance purchases. The insurance professional is expected to do most of the thinking for us and advise us on what is best.

There is a simple principle that can be applied to almost all of your property and casualty insurance purchases that will save you premium dollars. Self insuring is that principle. The smart insurance shopper eventually grasps the concept of self insurance. The whole idea around self insurance is using deductible options and eliminating unnecessary coverage.

The days of the $100 Collision deductible on auto insurance is fading fast and it should. The higher deductible saves you in premium dollars. That is what we call self insuring. When you change your deductible from $100 to $500 you are taking on the risk for the first $500 of physical damage. You can do the same on the homeowner’s policy. You will lower your premium and still be covered for any major loss.

You will save a ton of money in the long run. You don’t have enough claims over a lifetime to warrant having a low deductible. You are paying the insurance company money for services they may never perform. You will save thousands of dollars by keeping your deductibles $500 or higher.

There are a lot of optional coverage’s in auto and homeowners insurance that you may want to eliminate to save money. Most states have tort options. Tort is your right to sue. Full tort verses limited tort can sometimes be a difference of 20% in your auto insurance premium. Rental reimbursement and towing benefits are added onto auto insurance all the time. You may want to self insure for these and save premium dollars as well.

The insurance purchase can be easier and more affordable if you can grasp the mindset of self insuring. Your agent will welcome your thinking on this because most agents think self insurance is best for their customers.

By: Greg Haehl(Best Syndication)