Saving You Money For Life

The National Association of Insurance Commissioners, NAIC, recently released a study if Americans’ perceptions of disability insurance. The NAIC found that more than half-56 percent-of U.S. adults said they would be unable to meet expensed and pay all their bills if they became disabled and unable to work for a year or more.

International Communications Research found that consumers have a rosy and optimistic view of their future. Only 13 percent of respondents said it was somewhat or very likely that they would become disabled and unable to work. The U.S. Social Security Administration’s findings sharply counter that assessment-20 percent of the country’s work force will become disabled for a year or more before reaching the retirement age of 65.

The study found that just 44 percent of those surveyed had long-term disability insurance, which helps replace some lost income. Of that number 71 percent acknowledged that their long-term disability insurance was provided through their employer, which suggests that many of them would lose their coverage if they suffered a change in employment status.

Becoming disabled will impact people’s ability to earn a living and remain financially independent. With a better understanding of disability insurance, people are better equipped to protect themselves in the wake of a disabling event.

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Oklahoma State University announced 1 that more than $250 million in life insurance commitments had been made to the school. The funds, part of the “Gift of a Lifetime” program, will support the school’s athletic department. The monies have been earmarked for athletic scholarships, operations and facilities.

The college worked with alumni of various ages who qualified for $10 million in individual life insurance policies, agreeing to name the school’s athletics department (Cowboy Athletics) as beneficiary. Cowboy Athletics will pay the insurance premiums.

Alumnus T. Boone Pickens was credited with the idea. He said the program gives participants the opportunity to monetize good health. OSU’s athletic director, Mike Holder, sees the program as a key funding step in helping the university compete with other Big 12 schools. “This program is evidence of our loyal supporters’ willingness to embrace new ways to help their university,” he said.

Twenty-five alumni have qualified for the program so far. The program is a form of “testamentary giving,” in which the donor’s life insurance policy will be held by the university. School officials believe that this is the first time that a collegiate athletics department has used a life insurance program on such a large scale.

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U.S. District Judge George B. Daniels, of the Southern District of New York, recently approved a class action lawsuit settlement over Holocaust insurance claims involving Assicurazioni Generali S.p.A, an Italy-based insurer. The agreement contains a special extension of a claim deadline, anticipating opening of the Bad Arolsen archive in Germany. The archive, until recently used only by the Red Cross, will contain personal details on more than 17 million people who were forced by the Third Reich into salve labor and concentration camps.

Claims based on documents obtained from the archive must be submitted within six months of the archive’s opening and no later than August 31, 2008. The deadline for all other claims is March 31.

A statement from the law firm representing the plaintiffs, Kohn, Swift & Graf P.C., of Philadelphia, noted a limitation. If Generali has already compensated a person for her or his policy, that person is not eligible for further compensation under the settlement.

Generali has paid more than $130 million on about 5,500 claims made through the International Commission on Holocaust-Era Insurance Claims. According to the attorneys’ estimates, about 3,300 more people have made additional claims.

The company issued a statement that it views the settlement as “an important step in its longstanding commitment to bring fair closure to the Holocaust-era claims process.”

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The American Association for Long Term Care Insurance recently issued a report concerning financing options for people in their 50s. The study researched the percentage of long term care insurance applicants who qualify for money-saving preferred health discounts.

While most people understand the need for long-term care insurance an recognize that they’ll need it some day, they can wait too long to plan. People in good health can qualify for 10 or even 20 percent discounts per year. For a couple, that savings will double.

The report found that the percentage of applicants in their 50s who qualify for good health discounts varied from 42 to 58 percent. That number will drop to about 32 percent for people in their 60s. Just under 20 percent of long-term care insurance applicants in their 70s will qualify for the good health discount. Clearly, planning ahead-and purchasing long-term care insurance while you’re healthy-is important.

Once one long-term care insurance provider has turned you down for coverage, it may be more difficult to get coverage from other companies.

Buying long-term care insurance while you’re in your 50s can save you money, before an age-related devastating health incident. It will also provide you with peace of mind for you to enjoy your golden years worry-free.

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Every few days we get customers who ask about the advertisements they see where no exam is needed to obtain a term life insurance policy. Are they good policies? Inexpensive? Can I get a better deal? Why do I have to take an exam? These are all the questions we get from time to time.

Here’s the real deal: If you’re thinking about buying a term life insurance policy without taking an exam, think again. First, ask yourself why do you want to go this route? Inconvenience of taking an exam or afraid of getting stuck with a needle? Then ask yourself if you want to pay more or less for a life insurance policy? Finally, ask yourself if $250,000 would be enough to cover your entire family if you were to die (just think about how much you make and how much longer you’ll be working…I’m confident that most of you would get a total of more than $250,000.)

If the only reason why you don’t want to go through the traditional underwriting process is because you’re afraid of the exam, then let me put it into perspective for you. If you’re a healthy person, you could be paying double for one of those policies that don’t require an exam. Get a quote for yourself and then compare it to a traditionally underwritten quote.

If you have a few issues with your medical history, then this difference in cost may not be there for you. In that case, a group or no exam life insurance policy may be just fine for you.

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If recent crimes have made you consider renter’s insurance, you’re not alone. Once you’ve determined that renter’s insurance-which is available for apartments, houses and other residences-is a wise move to protect your personal property against fire, theft and vandalism, as well as your legal liability, how do you decide your coverage amount?

While you may not have expensive jewelry or rare coins, the average person owns more than $20,000 worth of belongings, most of which are not likely covered by a landlord’s policy. Even if you think you don’t own much, it’s a good bet that you own more than you’re aware. Think of the value of your clothes, your electronics, your music collection, kitchen equipment. The numbers add up quickly. How much are your belongings worth? Could you afford to buy it all back if someone stole from you, or if your residence was destroyed in a fire?

Another consideration is your liability. What would you do if you or someone at your residence causes damage or personal injury? It is possible that you could be held legally liable for damages. Talking to an insurance representative is a smart move to protect yourself and your belongings now and in the future.

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Life insurance is regulated state-by-state. In New York, the laws have always been a bit more tough. In fact, just a few years ago, pricing finally came down in that state, whereas previously people were paying twice as much in New York as in other states.

In the past, an existing life insurance policy could be replaced without consumers having enough time or opportunity to understand what they were giving up and what the new policy meant. So states began requiring that the insurance carrier being replaced be given notice and time to provide information so the old and new policies could be compared.

Regulation 60 requires two separate interactions with a customer before you can replace your current life insurance policy in the state of NY. In step one, the customer is must complete a Client Authorization form to allow the firm to collect information about the customer’s existing life insurance policy or annuity contract, so that the customer will be able to make a meaningful comparison. In step two, the customer must be provided with a Disclosure Statement setting forth information comparing the old and new life insurance policies or annuity contracts, including the primary reason(s) for recommending the new policy or contract and the reason(s) why the existing policy or contract can no longer meet the applicant’s objectives. The customer must sign and date an acknowledgement stating that the customer received and read the completed Disclosure Statement before signing the application for the new annuity contract or life insurance policy.

In most states, that just requires filling out a form, but no major delay, and the agent or insurer can arrange for new temporary coverage in the interim. But New York amended its Regulation 60 in November 1999, and now requires a 26-day waiting period before the application for new insurance can even be filled out, if it’s replacing an older policy. And agents are required to ask if it is.

The result is that a policyholder has to wait a month, even if the new policy would be cheaper and would carry a higher face value, and even if it’s one term policy replacing another. In my opinion, it’s absurd! Who is helped by the 26 day waiting period?

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