Life Insurance

The primary purpose of life insurance is to provide risk cover that offers financial protection to a policyholders dependents in the event of the policyholders death. One needs to have enough life insurance so that his or her family can continue with their current lifestyle even if the breadwinner passes away.

.

Dying beyond your means

Untimely events, such as the passing away of a loved one, often catch families unaware. Yet the vast majority of people continue to spend more on travel insurance, while ignoring the greater risk to family wealth and security posed by a lack of basic life insurance cover. So what are the often ignored areas of complacency, and badly misconceived ideas of false security?

Extended lives and uninsurability issues. Protection policies are assessed on risk. Underwriters calculate insurance premiums based on mortality guides taking account of age, sex, health and lifestyle. Therefore, smokers pay more than abstainers; males pay more than females and the elderly more than the young. It pays to start your life insurance early, even if you are single, because premium rates will be cheaper when you are younger.

Next Step - SQUEEZED: Rising costs can hurt people on a fixed income

Q. My parents are in their late 60s, in good health and retired. My father worked for state government; my mother worked as a church secretary part-time. I have two siblings who live in other states and who visit every six months or so.

My folks never confided in any of us about their finances until just recently, when they asked me to come over to visit. I was shocked to learn they were having problems making ends meet. Because of rising living costs, health insurance, gasoline, etc, when large payments became due - such as car and homeowner's insurance, property taxes, life insurance premiums, etc. - they have been taking cash advances on their credit cards to pay these amounts. And, because they were making minimum payments each month, their credit-card debt now exceeds $40,000.

NTSB: Cause Of July 2004 CFIT Accident Remains A Mystery

Undetermined. That's the Probable Cause ruling from the National Transportation Safety Board regarding a suspicious July 2004 controlled-flight-into-terrain crash of a Piper Navajo in the eastern Adirondacks of upstate New York.

The Connecticut Post reports investigators also found the magazine from a .380-caliber pistol at the impact site, with two rounds missing.

Madeline Sullivan, 89; insurance benefits expert

HOLBROOK -- Madeline F. (Hanney) Sullivan, a longtime Holbrook resident who spent her career helping state employees and retirees with insurance matters, died March 23 at Oak Hill Nursing and Rehabilitation Center in Middleborough. She was 89.

Mrs. Sullivan felt strongly about helping others, her daughter said. She went to work in 1954 for the state's Group Insurance Commission in Boston, where she helped state employees settle health and life insurance issues.

HealthMarkets Announces Newest Advisory Panel Members

NORTH RICHLAND HILLS, Texas--(BUSINESS WIRE)--April 2, 2007--HealthMarkets announced today the appointment of two new members to the Company's Regulatory Advisory Panel. Joining the panel are Susan Stead, a former Ohio Department of Insurance Assistant Director who has served in key roles at the National Association of Insurance Commissioners, and former Texas Insurance Commissioner Jose Montemayor. Stead will serve as the panel's chairwoman. HealthMarkets is a leading provider of affordable health and life insurance to the self-employed, individuals and small businesses through its subsidiaries, The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company. Stead and Montemayor join current advisory panel members Tommy Thompson, former Secretary of the U.S.

Sentenced for Health Insurance Claims Fraud

TRENTON: (Thur. 4.5) Joseph Venziano, 66, of Wildwood was sentenced today for health insurance claims fraud, according to state Attorney General Stuart Rabner. In a joint release from Rabner and Criminal Justice Director Gregory A. Paw, it was announced that Insurance Fraud Prosecutor Greta Gooden Brown, Venziano was sentenced to five years probation by Superior Court Judge Raymond Batten in Court House. He was also ordered to pay $9,393 in restitution to Aetna Life Insurance Company. Venziano was sentenced pursuant to his guilty plea to third-degree theft by deception, a charged contained in a Cape May County grand jury indictment returned in November 2006. At his guilty plea hearing on Feb. 1 before Batten, Venziano admitted that, between Oct. 19, 2002 and Dec.

Less-expensive term insurance the way to go

Dear Bruce: I read your column every week, and I am impressed by your knowledge. That is why I would like to get your feedback on universal life insurance.

I met with representatives from a financial institution, and they were pitching this type of insurance policy for $600 a month. The $500,000 policy has investment options, I can withdraw money without getting taxed until my death and my family gets the insurance money plus whatever value on the investments (tax-free).

I am 46 years old -- is this a good investment for me? Or should I get a term-life policy for $500,000 with premiums of $50 a month, and invest the $550 ($600 minus $50) in my 401(k) or annuities?

I was thinking of refinancing my current fixed-loan mortgage to an interest-only loan and withdrawing some cash to buy another house.

Japan's regulator punishes non-life insurers

TOKYO, March 14 (Reuters) - Japan's financial regulator on Wednesday punished 10 non-life insurance firms and slapped several with orders to temporarily halt some operations, after they failed to pay medical insurance claims worth nearly $9.5 million.

They are also prevented from applying for the approval of some new products during the three months to June 14, the FSA said.

Governor, Lawmakers Question Agency's Deal With Insurance Company

DES MOINES, Iowa -- Gov. Chet Culver and lawmakers are asking questions about a settlement between state regulators and an insurance company that includes a $750,000 fine -- but no reasons for the penalty.

County revisiting partner perks

Nearly two years after an effort to extend health benefits to unmarried partners failed on a party-line vote, Salt Lake County Councilwoman Jenny Wilson is resurrecting the idea.
But this time, instead of focusing solely on health benefits for domestic partners, Wilson wants to broaden the program to "adult designees" such as siblings, long-term roommates and parents of county employees. The Salt Lake County Council is scheduled to discuss the plan Tuesday.
"This seems like a win-win," Wilson said. "I really believe that anything local governments can do to provide health insurance through government pools and by getting other family members and other people involved is a good thing."
Council Chairman Mark Crockett, a Republican, cast the deciding vote against a July 2005 plan that would have given domestic partners and their children the same benefits granted families of married employees, including health, dental and life insurance, extended funeral leave and sick leave to care for a dependent.

Bill Brosius Underpaid teachers? You decide

Throwing money at education does not improve results. I showed that two weeks ago. The local situation?

Government has a virtual education monopoly (only 12 percent of students attend private schools or are home schooled - an insignificant influence on public schools); there is little opportunity for competition in pay scales. Most jobs are in markets where worker and employer can shop among many choices. Not so with teachers.

One measure is comparison among professions, while accounting for all factors, giving each fair value. Each benefit, such as employer-paid Social Security, has value to the employee. Other benefits are 401k and pension contributions, unemployment insurance, workman's compensation, life insurance, continuing education expense, and teacher's health insurance (medical, dental, eye, drugs and preventive), which is about the best anywhere, costing the employer $8,863.

Insurance set to pass through detariffing

MUMBAI: Dalip Verma, MD, Tata AIG General Insurance is one of the longest serving chief executives (CEOs) of non-life insurance companies. Verma was earlier with AIG — the joint venture's foreign partner. After seven years with the Indian company, he is now slated to take on wider responsibilities. In an interview with ET, Mr Verma speaks of how the industry will now undergo a structural shift because of detariffing. What has been the impact of detariffing? The price reduction is an absolute reality. Premium on motor `own damage' cover is down 20%, while there are instances of rates coming down by as much as 60% in fire and engineering businesses. We had expected that growth would come down 18-20%, but were very pleasantly surprised to see the 22% growth. Some of this could be because many corporates had timed their purchase to take place after detariffing.

AM Best Affirms Ratings of Members of the American Family ...

OLDWICK, N.J.--(BUSINESS WIRE)--March 13, 2007--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and downgraded the issuer credit ratings (ICR) to "a" from "a+" for the American Family Insurance Group (AMFAM), which is led by American Family Mutual Insurance Company and its three reinsured subsidiaries. Additionally, A.M. Best has affirmed the FSR of A (Excellent) and the ICR of "a" of American Family Life Insurance Company (AFLIC). Concurrently, A.M. Best has affirmed the debt rating of AMB-1 for the commercial paper program of American Family Financial Services, Inc. (AFFSI). All companies are domiciled in Madison, WI. The outlook for all ratings is stable. The ratings of AMFAM are based on its strong risk-adjusted capitalization, conservative investment portfolio and well-established regional market presence as a leading personal lines insurer in the Midwest.

Are twenty-somethings valuing their lives enough?

Men aged between 35 and 42 are the most typical applicants for life insurance policies, according to a new study of life insurance enquiries by insurance comparison website, Insurancewide.com.

The research looked at 4,000 customers' online requests over the last 9 months.

Up to the age of 28, equal numbers of both women and men look for a policy. However, from age 28 onwards, between 65% and 70% of enquiries are from men. Additionally, as many as 40% of applicants are now going online to seek critical illness cover to protect their income against illness.

“Perhaps surprisingly for thirty-somethings, by far more men than women are applying for life insurance cover," says James Harrison, chief executive of Insurancewide.com. "In the forties and fifties age brackets, men are also by far the most likely to apply."

“It's encouraging to see that people in their late twenties are investing in their future but we would urge people to start buying policies at an earlier age if they have debts, a mortgage and dependants or are self employed.

Aflac Incorporated at Raymond James Institutional Investors ...

STEVEN SCHWARTZ, LIFE INSURANCE ANALYST, RAYMOND JAMES: Good morning, and welcome to the annual Raymond James Investor Conference. For those of you I have not met in the past, my name is Steven Schwartz, and I am the life insurance analyst for Raymond James. This morning, starting off the life insurance presentations for the conference in its normal 8:00 role will be Aflac. And today, we have with us representing Investor Relations Robin Mullins, and then we have Kriss Cloninger. Kriss is CFO and President of Aflac, Inc. I don't even know what to say anymore. It's been five or six years that we've been introducing Aflac here. It is a stupendous company that truly owns this space. I was trying to think of something to say this morning, and the one thing that really came to me was that this is a company that really controls its part of the insurance industry.

Sainsbury’s announces 50% discount on life insurance premiums

Sainsbury's Bank has announced that it is offering a 50% discount on life insurance premiums for the first three months, provided the policy is purchased before 23rd April 2007. This discount is available on the telephone and online.

Life insurance premiums through Sainsbury's Bankare amongst the most competitive available and start from as little as £5 a month.

Claire Moyles, Life Insurance Manager, Sainsbury's Bank said: “Life insurance can help provide great peace of mind in the knowledge that your dependants could receive a cash lump sum if you were to die. Quality cover does not have to be expensive and right now you can save an extra 50% for the first three months if you apply for a policy with us."

You can get a quote or further information by visiting sainsburysbank.co.uk.