10 ways to lower your auto-insurance

Post by Mei Ling Lin

In the tough economy, people want to save money in any way that they can. One of expensive expense in the life, is the insurance include the life insurance, health insurance, home insurance and auto insurance. In those insurances, the home and auto-insurance is one that people need to pay all of the fees by themselves, unlike the life or health insurance that employers may help to pay part of the fees. Here have ten ways to help you to lower your auto-insurance.
1. Raise your deductibles, the more deductibles you have, the less premiums you going to pay. However, when you raise the deductible, then you need to be driver safer.
2. Compare quotes from different insurers, because each insurance company may have different rate of the auto-insurance customers.
3. Drive fewer miles, the less you drive, then less risk of collision and the less you file vehicle insurance claim.
4. Maintain good credit, if your credit score is lower, then you may view as the high-risk customers and need to pay the high-rate insurance
5. Stay a safe driver, mean to lower the risks of collision, then you need to avoid lane hogging, be aware of the conditions, don’t tailgate, prepare you journey, and stay clam.
6. Keep a clean driving record
7. Combine your auto and home insurance, you may get more discount on your rate if you use the same insurance company to insure your home and car.
8. Pick the right coverages, the more coverage you pick, the more premiums that you going to pay, but if you get the less coverage, and then you are taking the risk to pay more money out of your package if you have a claim or at-fault in a collision.
9. Choose your car carefully, because the model of car that you drive would affect you premiums
10. Take advantage of discounts, because discount can help you to lower your premiums

source #1 #2 #3

Bear market ups need for life insurance

copy and post by Mei Ling Lin

With the unprecedented generational bear market that has wreaked havoc on investors' portfolios, now is a good time to review your life insurance and determine if you have enough coverage.
Remember that you depend on the combination of your investment assets plus your life insurance to make sure your dependents are financially secure should you die prematurely.
How much life insurance do you need? Ask 10 professionals and you'll likely get 10 different answers. If you have people who are dependent on your income for their support, use the following three-step process as a "quick check" of your life insurance needs:

Step 1: If you are the sole income provider, multiply your annual income by 0.80. This results in reducing your income by 20 percent. The reason you do this is because there is one less spender in the household (you!). Note that if both you and your spouse work combine both incomes and multiply by 0.80.
Step 2: Divide your answer in Step 1 by the rate of return you would reasonably expect to earn on the life insurance proceeds once they are invested. Your answer here indicates how much money you will need in order to continue the necessary income stream to your surviving family.

Step 3: Subtract any savings or investments you already have from your answer in Step 2. This is the `ballpark' amount of life insurance you should own. Let's look at an example. Edward and Jean Anderson have two children. Edward earns $100,000 a year and Jean stays home to raise the children. The parents assume that they could earn 6 percent on investments; they have $45,000 in personal investments and $75,000 in their retirement plans.
First, multiply Edward's income times the "one less spender factor" to calculate the adjusted income need ($100,000 x 0.08 = $80,000).
Second, now divide the adjusted income need by your expected rate of return on investments ($80,000 x 0.6 = $1,333,333). This amount of money invested at 6 percent will provide the needed $80,000 per year for Jean and the children.

Finally, subtract the total of all current investments from the total capital needed ($1,333,333 - $120,000 = $1,213,333). If Jean was employed and planned to continue working after Edward's death, you would also subtract her income from your answer in step one.
You would also need to repeat this exercise for Jean to determine how much life insurance is needed on her life. For a non-working spouse, estimate the costs to replace that spouse's services such as nanny and housekeeper and multiply those costs times the number of years the services will be needed.

The answer you get by using this three-step process should only be used as a rule of thumb. Once you have the number, you should personalize the solution to your particular situation.
For example, you may want to increase the amount of insurance to help cover the costs of funding college expenses for your children. If your goal is to provide a lifetime income for your dependents, additional insurance will be needed to offset the ravages of inflation.

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House passes property insurance bill

Posted by YiLin Zhu
From The Associated Press

TALLAHASSEE, Fla. -- The Florida House has passed a bill that would increase insurance rates for more than 1 million property insurance policyholders.

The bill (HB 1495) limits the annual rate increases to an average of 10 percent for customers of the state-backed Citizens Property Insurance Corp.

The measure passed Friday on a 75-33 vote.

Without the legislation, Citizens' policyholders could see premiums increase more than 40 percent on Jan. 1. Instead, they'll pay the increase in smaller increments.

The Senate started debate on its version Friday, but didn't vote.

The goal of both bills is to reduce state's $20 billion exposure on the Florida Hurricane Catastrophe Fund while shoring up Citizens with actuarially sound policies.

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Things Your Homeowners Policy Doesn't Cover

copy and post by Mei Ling Lin

Although the homeowners policy is considered an all-risk policy and will cover you for most losses you incur, there are some exclusions or causes that it won’t cover.

Property Exclusions
Coverage A and B

Collapse – The collapse of your house is excluded unless the cause of loss is listed in the additional coverages section of your policy.

Freezing – Freezing of plumbing, heating, or air conditioning systems is excluded if the heat has not been maintained while the building is vacant, unoccupied, or under construction.

Flood – The most important thing to know is that your policy does NOT cover flood. You must purchase a separate policy to cover damage from a flood. Flood has been an excluded peril since 1968 when the government started the National Flood Insurance Program. Even if you don’t live in a designated flood zone, it is important to have flood insurance in the event of hurricanes or heavy rains. Also, premiums for flood insurance can be inexpensive depending upon your flood risk. You can purchase a flood policy through your homeowners insurer or find an agent through the flood program. Visit http://www.floodsmart.gov/ to learn how the National Flood Insurance Program defines a flood and learn how much your annual flood insurance premium can cost.

Foundations, Retaining Walls, and Nonbuilding Structures – Loss to these items (including fences, swimming pools, and docks) by freezing, thawing, pressure or weight of water or ice is not covered.

Dwelling under Construction – Theft from a dwelling under construction is excluded. Theft of material is also excluded until the dwelling is finished.

Vandalism and Malicious Mischief – This exclusion only applies if the building has been vacant for more than 30 consecutive days before the loss. (Vacant being empty and unfurnished and unoccupied being a furnished home where the residents are on vacation.)

Mold, Fungus or Wet Rot - Loss caused by Mold, Fungus or Wet Rot is not covered if caused by a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixture or equipment. Please review your individual policy carefully in order to comprehend exactly what is covered.

Risks of Direct Physical Loss Exclusion –The homeowners form insures your property against any loss as long as it isn’t excluded. This section lists some of the other specific causes that aren’t covered. Examples are: wear and tear, smog, birds, rodents, animals owned or kept by an insured, and settling.

Concurrent Causation Exclusions – This section deals with more than one event causing a loss. The policy details how losses are handled when one cause is covered and another isn’t.

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Life Insurance and Beneficiaries

Posted by: Dan Hughes

Life insurance policies are very difficult things to choose to get. For many people, life insurance policies are useless and are not necessary to have. However, if you are a person that does, in fact, need to write up a life insurance policy, there are several things that they need to consider, such as what type of policy. Should you get term or permanent? If you need permanent, then you need to consider among whole, universal, current assumption whole, and variable life insurance. Another thing, which is as important, if not more, to decide is who your beneficiary will be.

The beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured. It’s often easy to pick the “natural choice” as your beneficiary or beneficiaries, which includes your spouse or your children. However, these may not always be the best options. As with your spouse, there is a possibility of divorce, and, if you do not update your policy, then she and possibly a new spouse will reap the benefits. Similarly, with children, depending on the wording, it may be accidentally including or excluding certain people. Probably the safest choice for your beneficiary is your lawyer, if you have one, and draw up a list of how you want the money to be distributed. The lawyer will make sure that your money is handled the way you intended.

It’s always important to remember that the wording is the most important part in the policy. If it is not specific, then, as mentioned before, people may be included or excluded from the policy. By just stating children as beneficiaries, you may be leaving our grandchildren when you intended for them to get some money.

Source 1 Source 2 Source 3

Affordable Health Insurance for Young Adults

Posted by: Dan Hughes
Article by: Megan Johnson

Health insurance, if you're young, cash strapped, and healthy, may seem expensive and pointless. It's not. An ankle-twisting fall on a hiking trail, a broken arm in a friendly soccer game, bronchitis that turns into pneumonia—you're potentially talking thousands of dollars in medical expenses. See which of the following eight categories describes you, and check out the experts' recommendations. Our health insurance glossary will help with unfamiliar terms.

You're moving from high school into the workforce.

If your parents are covered through an employer, try to stay on their plan, says Kathleen Stoll, director of health policy at Families USA, a healthcare consumer advocacy group. It'll cost less than getting individual health insurance on your own because most employers pay a large part of the premium of a group plan. More than half the states require insurers to extend parental coverage to adult children below a certain age, typically 25 but as high as 30 in New Jersey. Your state insurance department or the National Conference of State Legislatures can fill you in.

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Health Insurance in Economy Crisis

post by Mei Ling Lin

In the economic recession, people may lose some things, such as their jobs, income, or health insurance. McKinley Health Center doctors said that, the amount of students without health insurance is increasing. The reasons why increase in students without health insurance are students want to reduce the expense and choose to option out of University’s student insurance plan, or student who were covered by their parent’s plan, but their parents’ job situation changed and lost the coverage. What can we do if we lose the health insurance in a short-term?

First, you can be proactive to minimize the effects of the economic crisis. Second, short-term health insurance is available in most states to span from 1 to 36 months, and its cost is about half of the amount of longer term policies. Third, you should develop a realistic budget, because the cost of health insurance is increase faster than your income. Fourth, you should consider the worst case, even you don’t like to think or never think it would happen, it is smart to consider the effects of the worst case in your health care planning. If you need to cut your health insurance costs, think about use shorter duration policy, increase out-of-pocket costs, or reduce maximum benefits.

source #1 #2 #3

Do I need to pay tax for my life insurance?

by YiLin Zhu on April. 17 2009

Whether life insurance is taxable are many people’s concerns. The basic answer for this question is “NO”, the government cannot tax life insurance. However, it is possible that you will get your insurance states that the policy could lead into a taxable event. So the possibility of paying for life insurance policy is a question that could conceivably be answered in a number of ways.

When funds are received at the end result as originally intended by the policy, when the owner is deceased - the beneficiary will receive the full value of the policy completely duty free. When funds are obtained in the fashion it is not deemed as profiting by the government and therefore the sum, no matter how large or small in not chargeable.

As long as your policy is kept 'live' and active, the cash growth of the procedure is not taxable either. Not all life insurance policies experience enough cash growth beyond the original purchased value for this to be too much of a concern, but for those that do - any growth in cash value experienced over the life of the policy is safe from assessment as long as the procedure remains in good standing.

Source #1; Source #2; Source #3.

New Report Details How to Create a Public Health Insurance Option as Part of Nation''s Health Reforms

Posted by YiLin Zhu

From NewsRx.com

With Congress preparing a sweeping overhaul to the nation's health care system, Jacob Hacker was the first today to outline details on how the nation can structure and implement a public health insurance option as part of the overall reforms (see also Medicare and Medicaid).

Hacker, who is the co-director of the U.C. Berkeley Center on Health, Economic and Family Security, joined Institute for America's Future co-director Roger Hickey at a news conference today to release a new report called "Healthy Competition." The report, co-sponsored by the Institute and Berkeley CHEFS, provides a comprehensive roadmap to create a public health insurance plan within the nation's health care system.

The plan gives people without workplace coverage access to an "exchange" with private and public plan options. The public plan mirrors Medicare's administrative infrastructure, but would be run separately from Medicare. The plan has its own risk pool and offers the same benefits and coverage terms nationwide.

At today's news conference, Hacker said offering a public health care plan option is the only feasible way to design a sustainable health care system and ensure everyone has access to the care they need. "

Without public plan choice, private health insurers will still be able to game the system to maximize their profits while failing to provide health security over the long run," said Hacker. "Providing a public health insurance option that competes fairly with private plans is critical to ensuring access, controlling costs and improving the quality of care for all Americans."Hickey said the new report details how a public insurance plan would work, who is eligible, and how it would function alongside Medicare and private plans.

"Many studies have shown that a well-structured public insurance option will save the nation trillions of dollars over a decade," said Hickey. "This report kicks off the debate about how a well-structured public insurance plan would work.

"Hacker's report argues for a public health insurance plan with price-setting authority. It lays out safeguards to ensure its bargaining power is used correctly. These include an efficiency-based payment system (an improved version of Medicare's), an expanded Medicare Payment Advisory Commission, a stakeholder advisory group that includes providers and automatic triggers for case reviews.

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AIG Nearing a Deal to Sell Car-Insurance Unit to Zurich

Copy and post by Mei Ling Lin

American International Group Inc. is negotiating to sell a car-insurance unit to a major rival, Zurich Financial Services AG, and a deal could be announced as soon as Thursday.
The price tag for 21st Century Insurance could fall within the $1.5 billion to $2 billion range, according to a person familiar with the matter. The deal has been discussed for some time, and the talks between the two firms were reported in February.
If the sale were completed at that price, it would be the biggest that AIG has been able to complete since announcing plans to sell off assets to help pay back the government, which bailed out the ailing insurer last year. As of April 8, AIG owed taxpayers $45 billion, part of an aid package of up to $173.3 billion.
AIG is also trying to sell off other units, including International Lease Finance Corp., its aircraft leasing business, for which a second round of bids are due late this month, according to a person familiar with the matter. But the strategy of selling off assets has been hurt by the difficult economic conditions, which has winnowed the pool of potential buyers for some of AIG's most prized assets.
A deal could also strengthen Zurich's hand in the U.S. car-insurance business. Zurich owns Farmers Group Inc., which manages the Farmers network of insurance exchanges. The exchanges serve more than 10 million households, making it one of the largest car- and home-insurance networks in the country.

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Umbrella Insurance

By: Dan Hughes

When people become adults and have to start taking responsibility for their own lives, much has to be taken into account. One of the hardest parts to be able to plan for, however, is the possibility of unexpected expenses. It’s not only a good idea to have cash or another form of liquid asset in order to cover for this, but it’s a great idea to have insurance, as well. And, one of the best and easiest ways to cover all your bases is having umbrella insurance.

Umbrella insurance refers to an insurance policy that protects the assets and future income of the policyholder above and beyond standard limits set on their primary policies. It provides coverage beyond the typical auto or home insurance and can include coverage for claims such as false arrest, libel, slander, and invasion of privacy.

With so many lawsuits being filed today, purchasing umbrella insurance is almost a must. According to Bobbie Sage of About.com, with an umbrella policy, one can add an additional 1-5 million in liability protection. The umbrella kicks in when the amount that the other policies cover has been depleted. Some might think that with this extra policy that adds so much more liability protection that it would cost an arm and a leg. However, for the protection that one receives, the additional cost is fairly inexpensive.

Source 1 Source 2 Source 3

The End of Private Health Insurance

Posted By: Dan Hughes

Article By: (Unknown)

Above every other health-care goal, Democrats this year want to institute a "public option" -- an insurance program financed by taxpayers, managed by government and open to everyone, much like Medicare. This new middle-class entitlement is the most important debate in Congress this year, because it really is the last stand for anything resembling private health insurance.

This public option will supposedly "compete" with private alternatives. As President Obama likes to put it, those who are happy with the insurance they have now can keep it -- and if they happen to prefer the government offering, well, gee whiz, that's the free market at work. The reality is far different. Not only will the new program become the default coverage for the uninsured, but Democrats intend to game the system to precipitate -- or if need be, coerce -- an exodus to government from private insurance. Soon enough, that will be the only "option" left.

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Something needs to know about Life Insurance

By YiLin Zhu on April-10 2009

It is never too early to start seeking for a good life insurance for yourself, because having a good life insurance will protect your future and life. And the following are some things that you may want to know about life insurance.

1. Keep your health in good shape: In life insurance, the better your health condition is, the cheaper rate you can get. So stay healthy not only good for yourself, but also good for your wallet.

2. Do more research before sign the contract: One of the greatest things about insurance is there are so many insurance companies out there and competing with each other. This gives consumers more option to select. Take your time to look over the premiums that each insurance company willing to offer you, and choose the best one for your condition.

3. Always read your coverage carefully: It is important to learn your insurance coverage carefully. Typically, you should review your insurance coverage at every beginning of the year or every end of the year. By doing so, you can always match your most latest update information with your insurance coverage to see whether the conditions still work best for you. For instance, if you get married or had a baby, or retired, you may want to switch to other insurance if the current one won’t work out as well as before.

Source #1; Source #2; Source #3

China Pacific Insurance 2008 Net Profit Slumps 81%

Posted by YiLin Zhu

From The Wall Street Journal

SHANGHAI (Dow Jones)--China Pacific Insurance (Group) Co. (601601.SH) said Friday its 2008 net profit tumbled 81% because of the slump in the domestic stock market and increased insurance payouts to cover natural disasters in China last year.

The company joins its local peers that have reported substantial declines in earnings after being hit hard in the past year by volatile capital markets and increased claims.

China Life Insurance Co., China's largest life insurer, last month reported a 45% drop in 2008 net profit, while Ping An Insurance (Group) Co. of China Ltd. Wednesday posted a 99% plunge in 2008 earnings, mainly due to an impairment charge of $3.3 billion on its stake in Fortis NV.
China Pacific Insurance, which is 17.3%-owned by private-equity firm Carlyle Group LP, said its net profit for the 12 months ended Dec. 31 dropped to CNY1.34 billion ($196 million) from CNY6.89 billion a year earlier.

The sharp downturn of China's stock market caused the insurer to record a fair value loss of CNY742 million for its traded financial assets last year. The company posted a fair value gain of CNY235 million in 2007.

Total investment income dropped 70% to CNY8.41 billion from CNY27.66 billion a year earlier.
The poor investment performance was partly offset by a 29% increase in premium income to CNY84.14 billion from CNY65.39 billion in the previous year.
Despite the dismal 2008 results, analysts said they believe that the worst time for China's insurers is over, thanks to a stabilizing stock market and China's CNY4 trillion economic boost plan.

"Though the global economic downturn has been exerting negative impact on China's economy, the country's insurance industry still has huge potential to grow," said China Pacific in its annual report. "China's economic stimulus package will boost fixed-assets investment across the country, which will generate enormous demand for insurance products and provide us with a broad arena to grow business," the insurer added.

Shares of China Pacific Insurance have jumped 16% in the past two weeks, outshining a 3% gain in the benchmark Shanghai Composite Index, on hopes that Shanghai will offer tax breaks to encourage people to buy pension products. China Pacific Insurance is the second-largest shareholder of Changjiang Pension Insurance Co., which was set up by the Shanghai Municipal Government in 2007 to manage the city's CNY15 billion pension fund.

"The Shanghai government is studying the (tax break) plan," said an official at the government-run pension fund.

"But the program is less likely to be launched this year because it involves different government bodies and it's difficult for all the parties to reach consensus on the matter in the short term," the person said, who declined to be named.

Shanghai-based Pacific Insurance is China's third-largest insurer by market share after China Life and Ping An. It ranks second in the country's property insurance industry by market share, after PICC Property & Casualty Co.

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Top 10 Car Insurance Savings Tips

copy and post by Mei Ling Lin

1. Make sure all your cars are on the same policy
Most insurance companies offer a “multi-vehicle discount” for customers who insure more than one car on the same policy.
2. Insure both your car and home with the same company
Again, this may qualify you for a discount called the “multi-line discount.” Most companies offer this savings as an incentive to get your home insurance business too.
3. Have an anti-theft device installed in your car
If you take measures to ensure your car is less likely to be stolen, then some insurance companies will offer an “anti-theft discount” if certain anti-theft devices are installed.
4. Ask about other discounts you might be able to get
Additional common discounts include the age, low mileage, occupational and auto club discounts, all of which could save you money if you qualify.
5. Increase your deductibles
The higher your deductibles, the lower your insurance premium — so raise them as much as you can. Keep it affordable though, because this is how much you’ll have to cover if you need to submit a claim.

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Steps To Choose A Right Auto Insurance Company

Post by Mei Ling Lin

You may know the steps or ways that can assist you to buy an automobile in a good price. Right now, you need to learn how to select a right insurance company to purchase your auto insurance. Because many insurance companies, which may promote well but have the worst services that you don’t know about. There have some steps that can help you to find a good insurer or agent.

1.Visit state’s department of insurance web site, because the State department of insurance would have name list of all insurance companies and their sell policies in the state.
2.Find out which insurers body shops recommend, because they know which company can provide the best service with low cost.
3.Check the J.D. Power Ratings
4.Consider insurers’ financial strength ratings
5.If you still confused, then consider working with an agent
6.Visit local agents’ offices, ask for a rate quote and gauge responses
7.Ask about “claims-free” discounts for time a policy is in force without a chargeable claim
8.Ask about a “multiline” discount if you buy more than one line of insurance
9.Ask about office hours and after-hours assistance
10.As k for company rating and financial information
11.Determine if the company has agents and claims offices in other states if you travel extensively
12.Ask friends and acquaintances about the company

source #1 #2 #3

Term Life Insurance

Posted By Ken Smith

Purchasing Health Insurance

By: Dan Hughes

For most people today, researching and buying health insurance is a very difficult and head spitting problem. It’s easy for the people who don’t need to go out searching for their own health insurance because their companies offer them coverage. However, especially in today’s economy, people have to go out looking for their own health insurance, and they have to do it without any help. For the most part, many people don’t really know what to look for and don’t know what questions to ask when they finally see somebody. According to some experts, there are five crucial questions that one should ask when purchasing health insurance.

1. How much are my premiums and will they change?

It is important to get the price of the premiums in writing and to find out how long you will be charged this particular rate. These quoted rates sometimes don’t last that long.

2. What are my deductibles and co-pays?

Always know what you’re paying for. Even if you meet your deductible, you most likely will still be responsible for a co-pay whenever you see the doctor.

3. Is the insurance company licensed in my state?

4. Am I buying a short-term or a long-term plan?

Be wary of short-term plans. When you go to reapply after a short-term policy, some companies will treat you as a brand new customer. This could be a problem for people who have conditions that overlap different policies.

5. Should I consider going with COBRA?

COBRA is a program that allows you to keep your employer’s insurance if you happen to be laid off or are working much less hours. However, you have to pay the whole premium, which may deter some people.

Always remember, though - if a policy sounds too good to be true, it most likely is.

Source 1 Source 2 Source 3

Investing in Life Insurance

By: Dan Hughes

Insurance Aid for the Newly Unemployed

copy and post by Mei Ling Lin

Individuals who lost their jobs in the last several months may be eligible for employer-sponsored health insurance coverage at greatly reduced rates.
The federal government will pay 65% of Cobra continuation coverage premiums as part of the American Recovery and Reinvestment Act of 2009, which was signed into law on Feb. 17. The coverage will apply to individuals who lost or lose their jobs between Sept. 1, 2008 and Dec. 31, 2009 and are eligible for continuing coverage under Cobra, a federal law called the Consolidated Omnibus Budget Reconciliation Act.
The new subsidy "makes Cobra much more affordable for a lot of people," says Scott Keyes, a senior health-care consultant at Watson Wyatt, a consulting firm. He expects participation could double or triple.
The new subsidy would last up to nine months for individuals who are not eligible for other insurance such as Medicare or a spouse's plan. It applies to employees, their spouses and any children who lost health coverage because of an involuntary termination.
Participants also can't earn more than $125,000 in the year they receive the subsidy if they are single or more than $250,000 for couples who file jointly.
Laid-off workers already can extend their job-related health coverage for up to 18 months under Cobra. The law applies to companies with 20 or more workers, which continue to offer a group health plan.
"I think this is aimed at helping people stay insured," says Amy Bergner, a principal at Mercer, a consulting firm in Washington.
She says employees who didn't elect Cobra coverage initially now have a second chance to sign up.
Individuals who lost their jobs before the law was signed on Feb. 17 should be notified by their former employer by April 18 that they are eligible for this benefit, even if they initially did not sign up for Cobra.
Until now, only a small percentage of individuals extended their insurance coverage through Cobra because of the high cost. Employers are allowed to charge former workers up to 102% of the cost of premiums. Individuals paid on average about $370 a month and families $1,000.
The subsidized coverage would lower premiums to about $130 a month for single coverage and $350 a month for a family, based on 2008 data from a survey by the Kaiser Family Foundation and the Health Research & Educational Trust.

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Some Big mistakes of Buying Term Life Insurance

By YiLin Zhu on Apr. 4 2009

Focus only on cost is the biggest mistake that most of people make when they buying their term life insurance. Of course, cost is an important factor to consider when we buy insurance. But a lot of people bought the term life insurance they really want, but also the ones they won’t afford to purchase. This may not be the right option.

Secondly, didn’t choose a right settlement options is also a big mistake you might make. There are many options to the term life insurance buyer regarding how the beneficiary will receive the policy proceeds. The most popular one is the lump sum payment, even though in many situations, this may not be the most appropriate solution. But keep in mind, you should always carefully review these settlement options with your agent.

Another big problem is not choosing the right agent. It is very important to choose a licensed agent that understands life insurance contracts and all of the options available within the contracts.

In addition, lack of conversion options also can be a big problem for the insurance buyers. An important option to have in your term life policy is the right to convert to a permanent life policy with the same company without submitting any additional evidence of insurability. This is important because need and wants change. The flexibility should be there to handle these changes.

Source #1; Source #2; Source #3;

Florida legislative measures would allow insurance rates to rise

Posted by YiLin Zhu
Written by Beatrice E. Garcia

Lawmakers have begun work on two major property insurance bills that aim to fix current problems in Florida's insurance market. One certain result: higher rates for homeowners, especially those covered by Citizens Property Insurance, the state-run insurer.

A bill in the state House of Representatives would allow rates to rise no more than an average 20 percent a year. A similar bill in the Senate, where debate will continue Monday, allows for increases of no more than 10 percent a year for any homeowner.

Gov. Charlie Crist, who championed insurance rate declines in the past two years, has acknowledged that rates need to rise. Some lawmakers are grudgingly moving in that direction as well. After two hours of discussion on more than a dozen changes and revisions, the House bill moved forward Friday with approval from the Insurance, Business and Financial Affairs committee. Among the amendments shot down quickly was one from Rep. Richard Steinberg, D-Miami Beach, which would have Citizens freeze rates for one more year. Citizens' rates have been frozen since the start of 2007.

Outside of South Florida, where Citizens has about half of its 1,066,304 policies, there is little sympathy for the insurer's policyholders. David Daniel, director of government relations for the Florida Chamber of Commerce, in urging the committee to pass the insurance bill, reminded the House committee that Citizens does not cover the majority of Florida homeowners.

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Term Life Insurance vs. Whole Life Insurance

By: Dan Hughes

There are two main forms of life insurance that people may have to choose between. These two types include term life insurance and whole life insurance, and, for the most part, people have no idea which type of life insurance is best for them.

With term life insurance, you are only covered for the life of the policy, while you are still paying the premiums, of course. Basically, this is the policy that makes the most sense for the majority of people out there, especially the couples that have kids. A life insurance policy is only intended to help the ones that have others dependent upon the life insurance holder. You do not want to continue paying premiums on your life insurance once your kids are no longer considered dependents.

With whole life insurance, on the other hand, the life insurance policy is designed to cover you for your entire life. It combines a term policy with an investment component, which could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against, which is why the premiums generally cost more than what term insurance would cost. As this “accumulation account” grows over time, the cost of your premiums may decrease over time.

Basically, what you need to ask yourself when looking for life insurance, is who you need to insure should anything happen. If you are generally healthy and have older kids, whether you may be single or not, whole life insurance probably is not the best way for you to go.

Source 1 Source 2 Source 3

Saving Money on Auto Insurance

By: Dan Hughes

Pros and Cons of Health Insurance Plans

Post by Mei Ling Lin

Most American people get their health insurance coverage from their employers. Some people may plan to buy the health insurance. However, how well do you understand each plan? Do you know the advantages or disadvantages of your insurance plan? The main types of health insurance plan that you can choose include:

Indemnity plans – are the original health insurance plan, but fewer and fewer people are buying them these days because of their high premiums.
Pros: You can choose your own physicians and hospitals.
Cons: You must pay a $500 to $1,000 deductible before your insurer will pay your claims. You need to pay the difference, if your doctor charges more than the insurer consider.

HMOs (Health Maintenance Organizations) – are the least expensive and the least flexible health plans.
Pros: Low cost, usually $5 to $10 and not much paperwork involved
Cons: You can only visit doctors within a prescribed network of doctors, and must choose an in-network primary care physician who oversees your medical services, and you must get a referral from him or her to see a specialist.

PPOs (Preferred Provider Organizations) – are more flexible and cost a little more than HMOs.
Pros: payment is $5 to $10 and may visit an in-network specialist without getting permission.
Cons: You need to pay the bill and submit it to the insurer for reimbursement, if you see a non-network doctor. In addition, you may pay the difference between the non-network physician's bill and the network physician's bill would be.

POSs (Point of Service plans) – are more flexible and cost slightly more than PPOs.
Pros: You can visit a non-network doctor with your primary care physician's approval and still receive coverage.
Cons: You must pick a primary care physician to oversee your services. If your primary care physician does not approve your visit to a non-network physician, you may have to submit the physician's bill and only receive partial payment.

source #1 #2 #3

Life Insurance Investments

Posted By Ken Smith

Going Abroad to Find Affordable Health Care

copy and post by Mei Ling Lin

WHEN Ben Schreiner, a 62-year-old retired Bank of America executive, found out last year he would need surgery for a double hernia, he started evaluating possible doctors and hospitals. But he didn’t look into the medical center in his hometown, Camden, S.C., or the bigger hospitals in nearby Columbia. Instead, his search led him to consider surgery in such far-flung places as Ireland, Thailand and Turkey.

Ultimately he decided on San José, Costa Rica, where just a week or so after the outpatient procedure and initial recovery, he and his wife were sightseeing throughout the country, then relaxing at a lush resort. He was home four weeks later, with no complications.
Mr. Schreiner is what’s known in the health care world as a “medical tourist.” No longer covered under his former employer’s insurance and too young to qualify for Medicare, Mr. Schreiner has a private health insurance policy with a steep $10,000 deductible. Not wanting to spend all of that on the $14,000 his operation would have cost stateside, he paid only $3,900 in hospital and doctor’s bills in Costa Rica.

“I didn’t have to fork over my entire deductible,” Mr. Schreiner said. “What’s more, they bent over backwards there to take care of me — no waiting, a friendly staff, everyone spoke English.”
At least 85,000 Americans choose to travel abroad for medical procedures each year, according to a recent report by the consulting firm McKinsey & Company. Treatment includes dental implants, hip and knee replacements, heart valve replacements and bypass surgery. The cost of surgery performed overseas can be as little as 20 percent of the price of the same procedure in the United States, according to a recent report by the American Medical Association.

Medical tourism is expected to expand quickly in the coming years because of rising health care costs in the United States, increasing availability of international facilities with United States accreditation, and the fact that insurers and employers are beginning to embrace the practice.
Blue Cross Blue Shield of South Carolina, for example, has started a subsidiary company, Companion Global Healthcare, to offer medical tourism services to individuals and businesses. Hannaford supermarkets in Maine recently added an international option for hip replacements to its health care plan.

Click to read more

Top three ways to save money on car insurance..

Written by: Stephanie King

In these hard economic conditions, everyone is looking for a way to save money. As much as we would like not to use our cars to save money on gas, realistically we need to. Since we must use our cars, why not save money doing it?? With multiple insurance companies out on the market, it is easy to compare prices and pick the right coverage for your pocket. Besides, comparing quotes there are other changes that can help you save money on your car insurance.
After choosing the right company with the lowest rate…here are some ways to lower your insurance costs:

1. Ask for higher deductibles. Even though it may seem hard to give up more money in the beginning, it can ultimately decrease your rates in the long run. These savings can be set aside in the case that you do need to make a claim for any reason.

2. Make sure your older cars insurance isn’t too much. Sometimes, it is easy to forget that a car loses values as time goes on. As the older car loses value, you might still be paying the same amount of insurance when you first bought the car even though it costs ten times less now.

3. Maintain good credit. As with many other companies, insurance companies are now making an emphasis on credit score. Making sure to pay bills on time and maintain a good credit score could ultimately save you money on your premium rates. Many companies use these scores to determine your insurance rate. Constantly checking you credit score for updates and changes,

could save you hundreds or even thousands.

Sources:

1. http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm

2. http://www.edmunds.com/reviews/list/top10/116958/article.html

3. http://frugalliving.about.com/od/affordabletransportation/tp/Auto_Insurance.htm

Unemployment = Cheaper Insurance

Posted by : Stephanie King

Written by: Liv Osby

More than one in 10 South Carolinians are now out of a job, often costing them their health insurance along with their livelihoods.

But changes to the federal COBRA program might make that health coverage more affordable.
The state’s unemployment rate hit 11 percent in February, up from 10. 3 percent in January, the State Employment Security Commission reported Friday. In Greenville County, it was 9.5 percent last month. The national rate was 8.1 percent.

COBRA, or the Consolidated Omnibus Budget Reconciliation Act of 1985, was intended to keep employees from losing their insurance along with their jobs. It allows people to keep their employer coverage for up to 18 months, so long as they pay the full premium.

But those COBRA payments are unaffordable now for most on unemployment. In South Carolina, for example, the average unemployment payment of $1,209 a month equals the average COBRA family premium, according to Families USA. That forces many to choose between home and food or health care.

For full article: click here

Some Tips for Saving money on your Life Insurance

By YiLin Zhu on Mar. 27 2009

In the depressed economy, is it possible still save money on your life insurance? The answer is yes! You can still save money by getting the insurance you need at a lower cost. Following are some tips for the things you may want to do in order to save money on your life insurance.

1) Buy term life insurance: Term life insurance is much less expensive than the permanent life insurance. Because the whole life insurance charge higher premiums for lifelong benefits.

2) Comparison companies: The competitive insurance industry brings a lot of benefits to the consumers. So before you purchase your insurance, make sure you got several quotes from different companies and get the lowest rates.

3) Get healthier: The insurance rate is based on several factors, such as age, gender and health condition. So if your body is in good shape, it actually going to save you money on the premium.

4) Pay premium on annually base: It’s cheaper to pay your insurance premium every year instead of quarterly or monthly.

5) Select your insurance coverage carefully: If you calculated that you need a large amount of coverage, it’s quite possible to win a discount from the insurance companies by asking them to do so. So never feel hesitate to ask.

Source #1; Source #2; Source #3;

Health Insurance for All Children

Posted by: YiLin Zhu

Written by: Sen. Tim Mathern

Providing health insurance for all of our children is not just a financial matter. It’s a moral one, too. As you read this, 14,000 children across North Dakota are going without health insurance. That means childhood illnesses will go untreated, potentially leading to more serious conditions down the road. It means there are a lot of worried mothers and fathers out there, wincing with every cough and earache and asking “what if?”

Currently, we have an opportunity to cure this problem. There is a bill before the Legislature that would raise the level for the State Children’s Health Insurance Program to 200 percent of the poverty level, or about $42,400 for a family of four. That would be a good start. We should also adopt a buy-in program to allow all families access to this program.

We know healthy children do better in school and in life. We also know such an investment will more than pay for itself in the long run by creating a healthier generation of North Dakotans.
Covering every child is clearly within our reach. Let’s do it.

Click here to read more

Car Insurance Fraud

Posted by: Connie Yee

In today’s changing economy, more Americans are returning or selling their luxury cars. But there are some individuals who are enforcing creative tricks to cheat the automobile insurance companies. In some instances, people are abandoning their cars in ditches and on the side of the highway. They then hope to collect insurance claims after reporting their car stolen. This phenomenon has been growing in the Great Lakes region, New Jersey, California and Las Vegas.

With high unemployment, individuals can no longer afford to pay their monthly car payments. In Las Vegas, detective Menzie reported that he has witness four cars burned or abandoned in 24 hours. This type of automobile insurance fraud case first started in 2007 when gas prices were high. During the following year, 2008, the number of automobile insurance claim increased by 6% nationally. In Ohio, the Columbus Division of Fire reported 255 automobile fires in 2009 alone. While some were legitimate fires, at least 26 of the 235 fires were considered arson. According to the Coalistion Against Insurance Fraud, they deemed this type of behavior as “vehicle give-up” which is when “car owners set their vehicles ablaze, sink them in lakes or rivers, leave them for passers-by to find or sell them to chop shops, or groups that sell overseas.”

References:
Hot Wheels
Car insurance fraud rises in bad economy
Signs of Stress, Fraud on Roadside

All You Need to Know About Dental Insurance

Posted By: Madeleine Brooks

Dental insurance is insurance dedicated to paying portions of one's dental care. It is important that when you are doing research in regards to purchasing dental insurance, you know what your dental insurance company covers and what that company doesn't cover.

There are three different types of dental coverage. The first type of dental coverage is called Preventative dental insurance which is are cleanings and the dentist examining your teeth. X-rays and also sealants can fall into the preventative category depending on your insurance provider. The second type of dental coverage is called "basic or restorative". Cavity fillings, extracting teeth and also root canals are under this type of dental coverage. Root canals are major procedures however most dental insurance companies cover root canals under the basic or restorative category of dental coverage. The last type of dental coverage is called "major". These types of procedures are painful and extremely costly. Some procedures include surgical extractions, dentures, implants, crowns and other painful procedures. Insurance companies don't cover comestic procedures such as teeth whitening.

Most to almost all dental insurance companies use a term called "usual, customary and reasonable" (UCR) fee guide. This allows dental insurance companies to choose prices for all procedures that are covered under their policies. However the dentist may charge a different price for the procedure that they are performing on the patient. For example, you visit your dentist and the visit cost $100 but the dental insurance company will only cover up to $80, you must come up with the difference of the $20. For the most part, dental insurance companies coordinate with the dentist to come up with an agreement for the prices they will allow their patients to pay. Dental insurance providers have a "yearly maximum" which means that in one fiscal year or calendar year, the dental insurance provider will pay up to a thousand dollar maximum that year.

So is dental insurance for you? You need to consult with your dentist and have a discussion about what your financial situation is and what is the best situation for you. As I said before, you should do research on dental insurance providers, know the different types of coverage (preventative, basic and major), know about a yearly maximum and what your insurance provider covers and doesn't.

References:
http://dentistry.about.com/od/generaldentistry/a/dentalinsurance_2.htm
http://dentistry.about.com/od/generaldentistry/a/dentalinsurance.htm
http://en.wikipedia.org/wiki/Dental_insurance

Life Insurance for Senior Citizens

By Michael Collins

Many people do not have life insurance. A substantial amount of the uninsured are senior citizens. Many seniors believe that they are too old to get life insurance, however it is common to see advertisements for life insurance policies that are reserved for seniors. Often, uninsured senior citizens desire life insurance in order to cover medical or funeral expenses once they die.

Typically, the older a person gets, the higher their life insurance premiums are. However, this is not necessarily the case with senior-specific life insurance. One website states that "Policies are general short term, and only pay a limited death benefit for the first two years. After two years, the full price of the insurance is payable to your beneficiary at the time of your death...Life insurance for seniors is available for as little as $15 a month. Usually, these inexpensive policies offer a low death benefit...Typical deferred life insurance policies offer as little as $5,000 coverage and go up to $100,000."1

In the past, many insurance companies would not provide life insurance for senior citizens. However, today, many states require that companies provide them coverage. Many life insurance policies for seniors have cash value so that they may be borrowed against or cashed in by the policyholder if they so choose.

References-
1- http://www.mozdex.com/life-insurance-for-seniors/
http://www.financialone.com/insurance/seniors
https://www.newretirement.com/Services/Life-Settlement.aspx

Reasons to buy travel insurance

By JieYing PengTravel insurance has become an essential item to pack for smart travelers whether it’s for your trip, possessions, luggage, or health. You trip could be ruined without the right kind of travel insurance. The purchasing of travel insurance has increased 10 percent after 9/11. . The top three reasons are: peace of mind, protection against the unexpected and concern over losing the financial investment in a trip.

Here are top reasons to buy travel insurance:

1. Your flight has been cancelled.
2. Your bag was lost with your insulin inside. You need help to locate your bag as soon as possible and have your emergency prescription filled. Who do you call?
3. Your first visit to Asia, and your passport and wallet are stolen. Where do you turn for emergency cash, and how will you get your passport replaced?
4. You're involved in an accident and adequate medical treatment is not available. You need medical evacuation.
5. You need to cancel your trip due to illness.
6. Your cruise line, airline or tour operator goes bankrupt. You need your non-refundable expenses covered and to get to your destination.
7. You have a medical emergency in a foreign country.
8. A terrorist incident occurs in the city where you’re planning to visit and you want to cancel your trip.
9. A hurricane forces you to evacuate your resort, hotel or cruise.


Resources:
http://www.travelguard.com/whybuy/whytravelguard.asp
http://today.msnbc.msn.com/id/17519580/
http://www.miamiherald.com/living/columnists/jane-woolridge/story/943611.html

Women pay more for Insurance than Men

By: Tsu-Han (Ina) Chang

Recent research has found that women are paying more for health insurance than men. Researchers have narrowed down the specific discrepancy to the fact that women are more meticulous when it comes to keeping up with health checkups. The coverage being compared is the same between men and women, essentially the same coverage but significantly different premiums. The research explained that women between the ages of 19 and 55 use more health care, especially in the childbearing years. Therefore, regardless of those women who chose not to have children they are penalized with a higher premium than that of men at the same age. The premiums differences are as much as 49% for a woman in Columbus, Ohio who is paying a monthly premium of $92.87, while a man with the same health and age background is only paying $62.30. During this current economic crisis where more unemployment is likely to occur; more individuals are looking for individual health coverage due to layoffs. However, once women reach the age of 55 there is a trend of a significant drop in monthly payments. Again, this pattern is attributed to the drop in likelihood of pregnancy past the age of 55. This issue of women paying higher premiums is becoming more prominent as members of Congress, such as Senator Max Baucus, Democrat of Montana are bringing up this issue in the media. In efforts to try and lower premiums try some of the following:
- Increase your deductible: The higher the deductible, the lower the monthly premium.
- Invest in a Health Savings Account (HSA). An HSA combines high deductible health insurance plans with a tax-favored savings account. Money in the savings account helps pay the deductible and money left in the account earns interest and rolls over from year to year.
- By Generic Prescription Drugs instead of brand named ones.
- Don’t make unnecessary trips to the emergency room as that is charted on your Medical records, which is used when your policy is being underwritten.
- Stop Smoking.
- However, if you are considering having a child, make sure you have insurance coverage for at least a year or two BEFORE you actually have children. By doing so you can make sure you are covered for pregnancy.

References:
1. http://blogs.wsj.com/health/2008/10/30/women-pay-more-than-men-for-health-insurance/
2. http://www.nytimes.com/2008/10/30/us/30insure.html
3. http://www.ladieswholaunch.com/magazine/women-pay-more-for-health-insurance-than-men/2750

Number of Purchasing Pet Insurance is increasing

Posted by SooYeon(Pia), Shin
Due to the current economy situation, experts anticipate that more pet owners would seek pet insurance. The North American Pet Health Insurance Association (NAPHIA) seeks “opportunity for pet insurance industry to protect and insure more pets.” Growing the pet insurance industry will lead more pet insurance providers, and which will lead to a wider range of pet insurance options as well. In general, there are two basic types of coverage for pets. One covers routine care like annual blood work and vaccines; and, the other covers major medical cares like surgeries and run about $235 a year.

Many people have pets. They love their pets as if the pets are their own children. Due to the fact that people wish to protect their adorable pets, the number of the pet owners' purchasing pet insurance is increasing. Also, veterinary bills have been increasing as well. Since many people are unprepared for such expense, pet insurance will be helpful. Progressive, now, has Pet Injury coverage to those people who have their own car insurance in Progressive. Pet Injury coverage will be effective to canine and feline four-legged animals. Therefore, if the car insurer gets in a car accident and pets are with them, then the pets will be also protected for their injury. Also, in the event of a loss like a car theft of fire will be covered as well.

http://www.prweb.com/releases/pet_insurance/pet_health_insurance/prweb2245164.htm

http://www.examiner.com/x-4792-Denver-RV-Travel-Examiner~y2009m3d24-Progressive-expands-its-pet-injury-coverage

http://www.nbcaugusta.com/news/business/41113922.html

What Do You Need to Know About Credit Card Insurance

By Chaoran Hu

Due to the event of unemployment, injury, disability or death, your credit card issuers may provide you with credit card insurance. It seems ridiculous. However, there are still some debates over this idea. Next, I would analyze the pros and cons to weigh whether it is worth it.

The concept of the credit card insurance remains the same as the other insurance: you pay a minimum monthly payment fee, normally based on the balance of your account. Supporters claim that it is a great idea that provides protection over our credit card once they get into hardship. Some argue that the insurance can only make the minimum payment of each month, and have a limited time frame, which is not worth it. However, when you suffer a critical illness or death, the insurance will cover the entire balance to reduce the pressure of your family.

Purchasing credit card insurance is a personal decision and really depends on your unique situation. Usually, however, the expense of credit card insurace outweighs the potential benefits, because most insurers pay only the minimum payment when a claim is made. A better alternative of credit card insurance is to set a side some amount of money for some emergency use, such illness and death. As always, being informed of options will assist your decision making. So take some time to sort these files and get organized.

References:

http://www.americanconsumernews.com/2009/03/should-you-purchase-credit-card-protection-insurance.html

http://www.cardratings.com/jan01new.html

http://www.creditcards.com/credit-card-news/credit-card-protection-insurance.php

How Any Family can Afford Quality Health Insurance

Posted by JieYing Peng



The economy is causing many Americans to reevaluate their budgets. Even though you are trying to cut back on your monthly expenses, there may be areas you have overlooked. One place you might consider examining is your health insurance plan.

“Your health insurance plan is the first place you should look if you want to save money long term," says eHealthInsurance.com executive Bruce Telkamp. “Check to see if you're paying for benefits you don't use or if you can afford a higher deductible. You can save a lot of money by shopping around for a health plan that better suits your needs and budget.”

For full article:
http://www.rocklintoday.com/news/templates/money_saving_tips.asp?articleid=7342&zoneid=80

Stressing Solvency

Posted By Michael Collins

WE CAN UNDERSTAND why talk of bank nationalization freaks out the stock market: The very notion is so, well, French. An increasing government stake in the banks dilutes the value of privately owned shares, and outright takeovers can wipe out creditors, too. Federal ownership and operation of large institutions, even temporarily, could lead to politicized lending -- if it doesn't simply overwhelm government's managerial capacity. True, the Federal Deposit Insurance Corp. takes over insolvent banks all the time. Rarely, however, has Washington contemplated taking over not just one large bank but possibly several, including giants such as Bank of America and Citigroup. The biggest previous FDIC takeover involved Continental Illinois, a bank less than a fifth the size of Citigroup, a quarter-century ago. The process lasted seven years. So we agree with Federal Reserve Chairman Ben S. Bernanke, who told the Senate Banking Committee on Tuesday: "I do not see any reason to destroy the franchise value or to create the huge legal uncertainties of trying to formally nationalize a bank when it just is not necessary."

The question, though, is whether nationalization, in some form, can be avoided. And the answer is: It depends. It depends on how deep the recession becomes, and on how well-equipped the banks are to survive it. Lately, the stock market has been beating up bank stocks, reflecting market mavens' pessimism on both counts. Soon, however, we may get a somewhat more objective take from the Obama administration, which yesterday rolled out its "stress test" of 19 big banks with more than $100 billion each in assets. It will assess solvency under alternative scenarios, a "baseline" forecast under which unemployment averages 8.8 percent in 2010 and an "adverse" one in which joblessness hits 10.3 percent next year. On the basis of the results, the Treasury Department would make additional capital injections, in the form of preferred shares that convert to common stock as needed.

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AIG's Rivals Blame Bailout for Tilting Insurance Game

Posted By Michael Collins

The federal bailout of insurance giant American International Group Inc., designed to help stabilize financial markets, is roiling another corner of the corporate world.

AIG's competitors claim the insurer's federal lifeline is unfairly tilting the commercial-insurance playing field. And they're pressing federal officials to crack down.

In a meeting March 4 at the St. Regis Hotel in Washington, some of AIG's biggest competitors complained directly to Federal Reserve Chairman Ben Bernanke, AIG's top government overseer. They urged him to prevent AIG from using the government rescue to win an advantage, particularly by cutting prices. Mr. Bernanke said he'd look into the complaints, according to people familiar with the meeting.

In the six months since the government stepped in, AIG at times has slashed insurance prices -- by more than 30% in some cases -- to fend off rivals and to keep or win contracts, according to public documents, insurance buyers, executives and others in the industry. This tack has helped AIG insure customers ranging from the U.S. Olympic Committee and an Arizona airport to an Illinois nursing home and a Florida town government.

State insurance regulators in New York and Pennsylvania are investigating, as is the Government Accountability Office, which issued a preliminary report at last week's congressional hearing on the AIG bailout. The GAO said insurance regulators, brokers and buyers say AIG "may be pricing somewhat more aggressively than in the past in order to retain business," but the pricing didn't appear "inadequate." The GAO said it hadn't "drawn any final conclusions."

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Inflation Is A Risky Road Out Of Crisis

Posted By: Tsu-Han (Ina) Chang

By: Oxford Analytica

Central banks must address impaired loans and promote liquidity to kick-start their economies.
As central banks head toward the lower limit of interest rate cuts, the search has begun for alternative or unconventional monetary policy instruments.

Several options remain:
Interest rate spreads. Owing to risk aversion and information asymmetries regarding bank balance sheets, the difference between policy base rates and three-month interbank rates rose in October to about 1.5 percentage points (pp) in the euro-area and U.K. Thanks to liquidity operations, the gap shrank in January below 0.5 pp in the euro-area and to about 0.8 pp in the U.K. Continued liquidity provisions on the interbank market is a policy option left to central banks to reduce risk premiums on interbank rates and eventually on retail rates. It will probably remain a key policy instrument in the coming months to ensure the smooth day-to-day refinancing of the financial sector.

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Ease the tuition squeeze

Posted by SooYeon(Pia), Shin

(Money Magazine) -- You've been waiting for this moment for nearly 18 years: Your baby is almost ready for college. Your finances, not so much. The market's protracted free fall means that your college fund is now worth just a fraction of what you need. Your home's value has no doubt dropped sharply too - no help there. The only thing that keeps going up, you guessed it, is college tuition. So it's goodbye, Dream School U., hello, Central State, right?

Wrong. While there's no denying times are tough, you have more options to help pay for that BA than you think. From targeting the right schools to taking advantage of new financial aid rules and tax breaks, you can get the price to a manageable level. These steps will ensure your kid ends up at a great school you can really afford.

1. Use your savings strategically
The typical 529 college savings plan of a high school junior or senior has dropped 12.5% in value over the past year. And if you didn't invest in an age-based portfolio that automatically shifted into safer investments as your child got older, your losses may be far worse. The big question before you: Should you try to hold off withdrawing money from the account to give your savings time to bounce back?

Unless you have another source of ready cash you can use to pay college bills - if you can squeeze more out of current income, say, or have other non-retirement savings you can tap - the answer is no. Since most of the money in your 529 is (or should be) in cash or other fixed-income investments by now, a big surge in stocks won't help you much.

2. Apply higher - and lower
With endowments down 25% to 30% in the past year, colleges have been slashing budgets, cutting everything from new construction to faculty. One program that top-tier schools haven't cut: the more generous aid packages they began offering families last year in response to congressional criticism over their use of endowments.

Tip: Make sure you fill out the federal application for financial aid, known as FAFSA, even if you think your income is too high for help - for many merit awards, it's the only way to qualify. And check the colleges' websites to see whether there are additional requirements for merit aid; some scholarships require a separate application that may have an early deadline.

3. Play it safer
Nowadays you need not only a Plan B, but also a Plan C and maybe a Plan D. So be sure your child applies to two or three safety schools that you know you can afford and he would be happy (or at least willing) to attend. Public colleges will probably be high on that list. But don't assume your state's flagship university is a sure-fire backup, since your teen isn't the only one seeking safety these days. Says Lisa Jacobson, CEO of Inspirica, a New York City college consulting service: "For the first time I'm seeing many upper-middle-class and wealthy parents encouraging their children to apply to their state schools - just in case."

4. Borrow smart
Face it: No matter how diligently you seek out scholarships or how savvy you are about the schools you target, chances are you're going to have to borrow money at some point to pay college bills.

5. Make tuition less taxing
Thanks again, Congress. The recently passed economic stimulus legislation included a welcome provision for tuition-paying parents: an expansion of the Hope Credit for educational expenses - now called the American Opportunity Tax Credit - to $2,500, from $1,500. It will be available for the 2009 and 2010 tax years.

6. Stop worrying (at least for now)
Your biggest concern may not be how to pay college bills now but how you'll pay if you get axed at work - a not unreasonable fear, given today's high and rising unemployment rate. But if your financial circumstances change dramatically during the year, many colleges will give you what amounts to a do-over on aid.

Click here to read more.