Do you think the real estate market has hit rock bottom?  According to website Zillow.com, a majority of American’s think a bottom it has.

Here are some facts from Zillow’s Q1 Homeowner Confidence survey:

• A majority, or 60 percent, believe their home lost value during the past 12 months
• In reality, 80 percent of homes across the country lost value during the past 12 months
• Additionally, 18 percent believe their home gained value in the past 12 months
• 22 percent believe its value remained the same
• And, most homeowners — 74 percent — believe their home will not decline in value in the coming six months

What do you think?

The national unemployment rate is at 8.5 percent and families are struggling to pay for their health insurance coverage. However, according to the National Association of Insurance Commissioners (NAIC), there are still ways for people to remain protected.

They suggest the following options for newly unemployed people:

• Consider joining your spouse’s plan if you’re married
• Consider COBRA
• Research eligibility for government-sponsored plans
• Purchase a private plan
• Join a state-sponsored risk pool

We don’t sell health insurance, only discount term life insurance, but we do have a trusted partner that can help.

I found this interesting. Intuit recently held a Town Hall meeting that was moderated by personal finance expert and author Farnoosh Torabi.  Thirty participants shared their stories about how the recession has affected their lives and the steps they are taking to save and make money. They also received tips and advice from Intuit and Torabi.

As a result of the Town Hall, Torabi and Intuit recommended seven ways to save money:

1. Make just five phone calls. They recommended that you call your credit card company; your insurance company, cell phone company, college and utilities company to find out about lower rates, deals and incentives.  With regards to discount term life insurance – I know first hand that many people can save simply by going online and comparing their existing policy with current ones available.

1. Save six months’ cash for emergency and then spend wisely. This is self explanatory.

1. Be open to bartering.  Torabi and Intuit say that if you have a valuable skill, check to see if others, such as your hair stylist or plumber, will trade your skilled labor in exchange for theirs.

1. Join the freelance economy. They recommend checking out sites like Elance.com or Odesk.com.

1. Look beyond your regular bank. They suggest checking out online banks or credit unions for higher returns. You can compare rates at BankingMyWay.com or Bankrate.com.

1. Free money is free money, keep investing in your 401(k).

1. Go generic. These days, generics are a great value and are typically the same formulas as higher-priced brands. The FDA says that generic drugs have the exact same exact ingredients and effects as brand name versions. From groceries to prescriptions, it’s money in your pocket.

When it comes to buying life insurance, we realize you have many choices.  That’s why we’re continually looking for ways to improve our service. By doing so, we can sustain our role as leader in the industry.

If you’re already our customer, we hope you’ll take a moment to tell us what we can do as a company to better serve you. Your feedback will help us understand what types of services we can offer you in the future.

If you haven’t purchased from us, we hope you’ll take a moment to tell us what we can do to increase the likelihood of you buying life insurance from us, especially during this economy? Your feedback will help us understand what other potential customers, like you, want.

We look forward to receiving your great thoughts and ideas!

A lot of financial advisors tend to say that one of the biggest problems with term life insurance is its high commission and recommend low-load or no load policies.  They often say that you can cut this cost by buying a “low-load” policy directly from the insurance company or from a financial adviser. And that with a low-load policy, insurance premium payments typically are lower, and your cash value, or the savings account portion of the policy, often grows in value significantly faster.

But that’s not always the case.  And as with all types of life insurance policies, low load and no load life insurance policies have both pros and cons.

Low-load funds such as Ameritus or USAA are sold by agents that are non-commissioned based.  Many financial planners recommend consumers try these places out because there is thought to be “no pressure” selling tactics.  However the real story is that these agents only sell their products and obviously have a vested interest in selling it.  Most of the time, these products are not the best product for that particular individual.  And typically, these policies are more expensive.

My last minute thoughts – make sure you’re educated. Shop around for price. And before buying any type of insurance policy, always evaluate the financial strength of the company you’re considering. In addition, examine the quality of service and whether you are obtaining all the features and services you need.

Life insurance premiums depend on a number of factors and increase with age as well as poor health. This is why it’s always a good idea to find a life insurance policy that can be renewed regardless of any. changes in health.

The renewability of a term life insurance policy is indeed one of the most important factors of your policy. But not all renewable life insurance policies are created equal.  For instance, some “renewable” require a medical exam. If a health issue surface later, you may not be able to renew.  Be sure to look for a policy that is renewable without a medical exam.

In addition to renewability, also consider the policy term length, the convertibility of the term life policy as well as make sure the policy has guaranteed level premiums.

If you’re not familiar with life settlements or viaticals this is a great story from the Washington Post to read.  But here’s the gist: there are companies out there called Life settlement companies that offer life insurance policyholders to buy their policies.   Types of life insurance that these investors are interested in include both term life and permanent.  Usually, the policyholder is offered more money than they could get by surrendering policies.

The problem I have with these is that this is a highly unregulated industry and these types of transactions could lead to homicide because the transactions give investors a vested interest in the insured’s death. Read the article and you’ll see that finally, someone gets what I’ve been talking about for years….the creepiness factor in the life settlement industry.

What are your thoughts?

A few weeks ago, I told you that life insurance rates were on the rise. In fact, Transamerica, Prudential and ING raised rates.  Well, last week, we were just informed that West Coast Life is also raising rates. If you are shopping for term life insurance, it bears repeating:  Now is the time to buy.

President Barack Obama has proposed raising money to pay for his health-care overhaul by imposing $58 billion in new taxes on securities dealers, life insurance policies and Americans with valuable estates.

Basically the provisions would modify the tax rules when policyholders sell their coverage in a life settlement or viatical, and would reduce a deduction that life insurers claim when they manage assets in separate accounts. Another provision would further restrict tax benefits associated with corporate-owned life insurance.

What are your thoughts on this?  Do you think these provisions Obama has proposed are fair?

May 15, 2009

Term Life Insurance Rates Increase

Description:

For years, we’ve been hearing that term life insurance rates have been decreasing.  In fact, they are currently the lowest they’ve been in history. But is all that changing?  If so, why?  Byron Udell, a life insurance and annuity industry expert, discusses the latest term life insurance rate war.

Size: 2.72 MB

Length: 2:58

Click here to download

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