Growing older – we hate to admit it:

I recently received an email from a high school classmate of mine, “Liz”, who now lives in

It was a Sunday. Both my daughters were gone for the weekend and I had the house all to myself. Quiet around my place is rare, so I plopped on the couch and thumbed through the yearbook while listening to classic 60’s music (I wanted the right mood). I laughed to myself while turning the pages. Good grief, those bee hive hairdos and thick makeup the girls wore. The guys had short haircuts. Even the cool ones looked like nerds. All the glasses back then were these thick plastic horn-rimmed things that came in 2 colors – black or black. There were my old teachers – Mrs. Plock from junior English, Mr. Swearingen from sophomore Biology. For half an hour I was 17 again and the memories came flooding back.

I have two confessions to make (keep this between us). First, I sometimes browse my high school’s alumni website and look to see how many of my classmates from 1968 are deceased. I know, I know… it’s morbid and I shouldn’t do it. It’s just so darn tempting to find out how many have passed away (the tally is up to 49 so far). My theory is if I’m the last one left, then I win. Second, I’m terrified of going to any reunion. I backed out of going to my 30^th reunion at the last minute because I kept hearing stories like how one guy died when his trailer caught fire, another had lung cancer, and the school heartthrob is now 300 lbs and walks around with an oxygen tank. I’m in denial. I don’t want to know what’s going on with my high school classmates. I don’t want them to grow up. In my mind, I selfishly want them to stay 17 forever; young and full of optimism about their dreams.

Everybody needs a “Family Continuity” plan:

So what has any of this got to do with life insurance? Everything. I talk to people from all age groups across the country every day. I ask each person the same health-related questions. I meet young couples that just had their first baby and want term insurance as part of their family financial portfolio. On the other hand, I meet the 50-60 year olds from my generation that are shocked into reality when their neighbor or relative dies and it finally dawns on them they have no family protection if they pass away because they kept putting it off all these years.

After hundreds of phone conversations, I can predict with relative certainty; if a client is 55 or older, they’re taking prescription medications – usually for diabetes, high blood pressure, and cholesterol. And guess what? Most of them are in denial. They insist their diabetes is temporary: “Oh, I’m only taking these meds until I can control my weight with diet and exercise.” Or, “My doctor says I’m ‘fully recovered’ from my quadruple by-pass surgery and I’ve got the energy of a 30 year-old.” Uh-huh. Drop and give me 20 push-ups. I’ll call the paramedics when you’re done.

On the weekend of my 55^th birthday in 2005 I had a stroke and spent a week in the hospital. 5 days and $30,000 later I also learned I’m a diabetic. Luckily, the stroke was a minor one and left me with only a slight neuropathy on my left side that I’ll have the rest of my life (I can’t feel or distinguish hot or cold). That’s all the warning I needed to make some drastic changes/improvements in my lifestyle. I exercise regularly now and completely altered my diet.

I also took out term life insurance. It occurred to me if I suddenly die, my family would be left with some serious financial burdens that could easily be avoided with a few simple arrangements. Here’s my logic. When disaster strikes; most corporations have a “Disaster Recovery” or “Business Continuity” plan to keep operations going. Sometimes, business executives are in denial too. Companies that aren’t prepared, go out of business. So why shouldn’t you and I have a “Family Continuity” plan if tragedy strikes us? Since my stroke 3 years ago, I wake up every day asking myself one question: “What kind of legacy will I leave my children?” What would your answer be?

If you haven’t filed your taxes already, April 14 is right around the corner. There are many tax deductions you can take and for the first time you can claim your mortgage insurance premiums on home loans that closed in 2007.

The tax deduction was first approved by Congress in late 2006 and applied to loans with mortgage insurance that closed in 2007. In an important move to further assist borrowers, Congress voted in December of last year to extend the mortgage insurance tax deduction through 2010. Extension of the tax deduction for mortgage insurance premiums was part of the Mortgage Forgiveness Debt Relief Act of 2007.

The deduction allows households with an adjusted gross income of $100,000 or less to deduct the full cost of their government or private mortgage insurance premiums on their federal tax returns. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction. For more information about the new deduction visit www.privatemi.com.

Annuities are one of the most popular investment products available today. One reason annuities are attractive is that they can help build more value over time. By providing potential growth that is tax deferred, an annuity’s investment earnings can accumulate and compound untouched by federal, state, or local income taxes until you begin making withdrawals, which is usually after retirement.

Features of annuities include:

1. You can make a single contribution or a series of payments over time.
2. You can contribute any amount, regardless of your income level or sources of income.
3. When you begin making withdrawals, you can choose from different payout methods, including a fixed amount for life for you and/or your spouse, or payments to your beneficiaries or heirs.
4. Payout methods include insurance features, which guarantee payment to your designated beneficiaries if you die before withdrawals begin. In most cases this payment does not have to pass through probate.

How can you maximize the value of an annuity? Here are 6 simple steps:

1. Taking advantage of low fees.
2. Choosing an annuity that offers a variety of investment options.
3. Dollar cost averaging could potentially boost long-term returns.
4. Increasing the potential return on aggressive investments.
5. Enjoying the benefits of diversification.
6. Using annuities to pass money along to heirs quickly.

New York Life Insurance Company today announced it has launched a site for women consumers, www.newyorklife.com/womenandfinance that provides easy access to detailed information and organizational tools for helping meet financial goals. The site focuses on the top concerns for women including planning for retirement, creating financial protection for their families, saving for their children’s education, and dealing with life’s major financial challenges.

I’ve only been an Account Executive at AccuQuote for two months and I already feel like I’ve heard it all. The most interesting part of this job so far is definitely the different people I talk to every day all across the country. Sometimes you have to step back and think about how amazing it is compared to only a few years ago. Used to be you went down the street and around the corner to get life insurance from the local agency in your neighborhood – or your buddy’s brother-in-law had a friend whose uncle had an ex-military friend who sold life insurance (this always turns out to be a guy drenched in Aqua Velva, wearing a plaid polyester jacket, who pins you to a corner at dinner parties and wants to know about your “”liquid”" assets – yes, this actually happened to me). It was too much of a hassle to do competitive shopping in those days. The Internet (and visionaries like Byron Udell) changed that. Overnight, people from all walks of life suddenly had choices they never imagined possible. That’s what makes my job so unique. One minute I’m on the phone with a high profile investor from Boca Raton; the next moment I’m talking to a newly married housewife in Phoenix who’s holding her 1 year old on her lap while we discuss her husband’s health and habits. Rich, poor, old and young they all have one thing in common – life insurance.

This is very interesting. According to a study by Harvard University researchers, people are living longer. However, people that do not have an education higher than high school do not share this trend.

As America’s health care continues to improve, life expectancy is prolonged. But increased longevity does come at a price. Most all of us will need assistance with simple daily tasks like bathing, dressing, and housekeeping. But serious ailments that require professional help are expensive.

Long-term care policies are becoming increasingly attractive ways to manage the unforeseen expenses of our elder years. The younger you are when you buy, the less you pay. But do consider paying extra for the “inflation factor.” Although it may eventually double your policy’s annual cost, it will boost your benefits as well.

Activities of daily living, or ADLs, determine an individual’s ability to care for themselves. Benefits only begin after you meet the policy’s defined requirements for ADL assistance. However, most policies do not start paying until the end of an elimination period, which can be a set number of days on the calendar or the number of days you’ve actually been receiving care. (So if your home health aid visits once a week, benefits would kick in after 30 days or 30 weeks, depending on the policy.)

How you receive your money also varies. Let’s say your daily benefit is $300. With a reimbursement policy, the insurer pays you or your service providers. If they charged $250, the insurer uses the extra $50 to extend the life of your benefits. With an indemnity policy, you get $300 for each day you have a receipt for services, no matter the cost. Finally, a cash policy pays $300 per day, no receipts required.

Very few people actually need lifetime benefits – the average stay in a nursing home is only 2.5 years. And if the policy seems too good to be true, get a second opinion from a certified financial planner or an elder-law attorney.

H.R. 5633, which would amend the Fair Credit Reporting Act to prohibit the use of consumer information in connection with some personal lines of insurance, could lead to premium increases for many consumers.

Insurers’ use of credit scoring to price insurance policies makes pricing more accurate and results in many consumers paying less for their automobile and homeowners’ insurance policies, as numerous studies over the past decade have confirmed time and again. A study released by the Federal Trade Commission (FTC) in July reaffirmed the strong connection between credit information and loss risks and the soundness of using credit scoring to determine rates.

“Credit scoring is a highly accurate underwriting and rating tool,” said David A. Sampson, PCI’s president and CEO. “Using this information allows for more accurate pricing and saves many consumers money on their automobile and homeowners’ insurance policies. Consumers expect to pay a fair price for their insurance that matches their individual risk. Insurers simply want to use the most accurate, statistically valid tools available to achieve that goal. Credit information has proven to be one of the most accurate methods of predicting losses.”

The FTC report’s findings are consistent with earlier studies. Its major conclusions are as follows:

• Insurance scores are effective predictors of risk under automobile policies. They are predictive of the number of claims consumers file and the total cost of those claims. The use of scores is, therefore, likely to make the price of insurance better match the risk of loss posed by the consumer. Thus, on average, higher-risk consumers will pay higher premiums and lower-risk consumers will pay lower premiums.
• Use of credit-based insurance scores may result in benefits for consumers. For example, scores permit insurance companies to evaluate risk with greater accuracy, which may make them more willing to offer insurance to higher-risk consumers for whom they would otherwise not be able to determine an appropriate premium. Since scores also may make the process of granting and pricing insurance quicker and cheaper, cost savings may be passed on to consumers in the form of lower premiums.
• Credit-based insurance scores appear to have little effect as a “proxy” for membership in racial and ethnic groups in decisions related to insurance. The relationship between scores and claims risk remains strong when controls for race, ethnicity, and neighborhood income are included in statistical models of risk.

What do you think?

We were surprised to learn that most Americans would rather hit the gym or do their taxes than review their health-care policies. A new telephone survey conducted for eHealth, Inc. cites the reason as too much insurance jargon. Ok, so we’re understandably a little biased, but that just goes to show how important it is for companies to reach out to consumers with an open ear towards criticism.

Sam Gibbs, Senior Vice President of eHealth, notes that confusion prevents consumers “from selecting the health plan best suited to their individual needs…. As costs increase and responsibility for coverage shifts to the individual, these terms are becoming increasingly relevant to consumers’ daily lives and their well-being.”

So we’d like to take a moment and share some helpful hints and tips with you – the consumer, the person left to determine whether the expensive policy you keep paying for is actually the right fit for your needs.

The easiest way to decipher any unfamiliar wording in a document is to look it up. Start by reading your policy with a pencil or highlighter in hand. See something you’re not sure about? Underline it or highlight it, and keep right on reading. Go over the whole document in this manner.

Next, sit down at your computer and type in every confusing word or phrase in your favorite search engine. Then, in the margin next to the word in question, write down the definition. Do this for everything you’ve highlighted. When you’re finished, you should be able to decipher the whole thing just by referring to your written notes in the margin. However, if you still have questions, make an appointment with your insurance agent or Human Resources manager to go over any truly baffling sections.

Don’t think you have time to read your policy in one sitting? A friend once revealed that he keeps boring documents and owner’s manuals in his bathroom. That way, if he wants something to read and there’s nothing else around, he’s sure to pick it up. Just avoid the temptation to use your policy in lieu of toilet paper and you’ll be fine.

As the April 15 tax deadline looms, you should not overlook the deductions allowed for long term care insurance.

According to the Internal Revenue Code, the 2008 deductible amounts can be as high as –