Car Insurance Help

Posted by: Allison Franklin

Car insurance is required by most every state as it is so important and can protect so many in the event of an accident. Today, there are so many companies and so many different plans that it is easy to get confused. It is important to know the basics, which is why I am going to discuss some common mistakes that people make when it comes to buying car insurance. First of all, many people believe that insuring the car is enough. However, this is not the case as all passengers need to be insured as well. If an insured driver and an uninsured passenger get in an accident, the driver will be insured and the passenger will not. It is important to list the people you usually drive with on your insurance policy. Secondly, it is important to watch the deductibles that go along with the insurance policy. Some insurance policies will have very low deductibles, but high premiums. Some policies will have high deductibles, and low premiums. Neither case is bad; it just depends on the individual’s financial situation and overall driving risk. If the person is a careful driver and is at a low risk for an accident, than the low premiums and high deductible might be their best option. It is also important to shop around and look at all of the different insurance carriers around. It is important that people are always looking around and not just at the times when their policy expires as policies are always changing and being updated. Seeing new policies can help people save money as they can find a new policy that is better suited for them.

Sources:

1) http://www.chicagotribune.com/business/sns-ap-insurance-mistakes-glance,0,3417596.story

2)http://en.wikipedia.org/wiki/Car_insurance

3) http://www.iii.org/individuals/auto/

Home Warranty

Posted by: Stephen Mills; Group1a

Most homeowners have never used a home warranty. In fact, some have never even heard of these policies, which are designed to cover the kinds of mechanical breakdowns that regular home insurance doesn't: clogged pipes, furnace failures, appliances that go on the blink.

The popularity of these policies, though, seems to be on the rise, especially as home sales slow and buyers need additional inducements to make an offer.

These home warranties, which are designed to cover existing or "pre-owned" homes, are different from the builder's warranties that typically come with a new house. In California, the policies are ubiquitous: Nine out of 10 existing homes in the Golden State are sold with a one-year warranty, according to the Home Warranty Association of California, compared with estimates of less than one in five nationally. Warranties in California are typically purchased by home sellers or their real estate agents to avoid lawsuits if something breaks in the first year. The policies also can give peace of mind to buyers who otherwise

Written By Liz Pulliam Weston

Full Article

Cell phone laws can lower your car insurance

Posted by: Jen Lynch

By News Channel 5

Everyone knows that traffic tickets can lead to higher auto insurance rates. But did you know that driving while talking on a cell phone is now a ticketable offense in many states? Taking the time to understand new cell phone laws can help you save money on your car insurance in 2009.

If you're ticketed for cell phone use while driving, chances are your car insurance rates will increase. If you're tagged for another violation along with it, like speeding, your driving record could catch a double whammy. Too many tickets on your driving record will increase your car insurance rates and may result in your auto insurance company non-renewing your policy.

Click here to read more

Standard Homeowners Insurance

posted by Jenny Sutton



A standard homeowners insurance policy includes four essential types of coverage. They include:
1.) Coverage for the structure of your home.
2.) Coverage for your personal belongings.
3.) Liability protection.
4.) Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.

1. The Structure of your House:
This part of your policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear. When purchasing coverage for the structure of your home, it is important to buy enough to rebuild your home.

2. Your Personal Belongings:
Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. Most companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of insurance on the structure of your home, you would have between $50,000 to $70,000 worth of coverage for your belongings. The best way to determine if this is enough coverage is to conduct a home inventory.

3. Liability protection:
Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins your neighbor’s expensive rug, you are covered. However, if they destroy your rug, you are not covered.

4. Additional living expenses:
This pays the additional costs of living away from home if you can't live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt. Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20% of the insurance on your house. You can increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time.

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The worst kind of wake-up call

Posted by Pin-Yu Liao

You don't need to be in the path of a Category 5 hurricane to put yourself on alert. Do a homeowners insurance audit annually -- actually, how about right now?
Grab your policy from the back of that drawer. Now's the time to find any coverage gaps -- not after disaster unfolds.

Home grown?
Have you made improvements to your home -- added a deck lately or sunk a living room? If you've kept mum to save on premiums, that dream master bath won't be covered. Check your policy's limits on any new stuff (electronics, appliances, furniture, jewelry), and ask about riders if you're over the caps.
Also, make sure your policy pays the full replacement cost, not actual cash value (ACV). If something is damaged or stolen, ACV covers only the depreciated value -- what it was worth when it was lost.

Click to read.

Children's Health Insurance

By Pin-Yu Liao

President Obama signed the bill that the expenditure of 32.8 billion will sponsor the children’s health insurance programs to assist uninsured 4 million kids starting next week. President Obama asserted regarding the health insurance plan, "a down payment on my commitment to ensure that every American has access to quality, affordable health care." Lawmakers generated their bill expenditure by increasing the federal tobacco tax. However, some argue that the rising cost of federal tax will make life harder for the poor. The program targets the families who can’t afford to buy private insurance and the rich people who encounter difficulties to apply for Medicaid. All the Democratic lawmakers on the Senate Finance Committee voted for the bill
The progress has been made that there are more than 7 million children who are covered with this program in the year 2008. There are many Republicans who did not support the plan, while the Democrats were advocates. Republican Senator Charles Grassley of Iowa disapproved the idea of covering the children of legal immigrants who only stay in the U.S less than 5 years through Medicaid and SCHIP. The contract that the legal immigrants can’t benefit from the national welfare for the first five years in the country has been made.

Sources:
http://www.foxnews.com/wires/2009Jan30/0,4670,ChildrenapossHealth,00.html
http://www.usatoday.com/news/washington/2009-02-04-house-children-health_N.htm
http://www.boston.com/news/nation/washington/articles/2009/01/16/childrens_health_insurance_bill_advances/

5 Musts When Buying Term Insurance

By Shu Zheng
(Newsday)Here is what you need to know when shopping for term life insurance online:

1. Types of comparison sites. Comparison sites break down into two broad categories: those that will give you an instant quote online and those that take your information and pass it along to brokers who then contact you. Most are lead-generation sites for brokers.

When you begin entering information on a site, however, you often cannot readily tell which type of site it is until you get to the end. That's when you either get a price quote or get a message that a broker will contact you.

Examples of instant quote sites include AccuQuote.com, Insure.com, SelectQuote.com, EFinancial.com and IntelliQuote.com. "A lot of people are shopping on price nowadays," said Amy Danise, editor of Insure.com.

Click to read more

8 Things You Should Know About Auto Insurance

Posted by: Yi Xin Jin (Lily)

How Knowing More Can Help You
Trying to understand auto insurance can be as tricky and confusing as trying to untie the Gordian knot. (We hear the knotty Gordian problem can be solved with a sword.) However, some "insider" knowledge can help you understand your options and what you can do to save money and get the most out of your auto insurance.

1) Some of the most helpful coverages are the cheapest.Auto insurance may be expensive, but if you're already spending a lot, shouldn't you get a lot? Optional coverages such as gap coverage, roadside assistance, rental reimbursement, uninsured/underinsured motorist coverage, and comprehensive coverage can provide a lot of protection for a little price increase. Comprehensive coverage is usually the most expensive of these coverages, but is still usually about half the price of collision coverage and a third the price of liability coverage.

click to read more.

Small Car Safety Improves

by Peter Valdes-Dapena
posted by: Thomas Gillick

In the latest round of Insurance Institute crash tests, none of the small cars they tested earned top marks, but some still did well.

In its latest round of small-car crash-tests, the Insurance Institute for Highway Safety ran eight models through a battery of trials.

They were plowed into a barrier and smashed from the side by a 3,300 pound sled, and a front seat from each model was separately hit to see how well it would protect occupants in the event of a rear-end hit in city driving.

Click to read more

Disruptive Innovation, Applied to Health Care

Posted by Lauren Cappelli

By JANET RAE-DUPREE
Published: January 31, 2009

THE health care system in America is on life support. It costs too much and saps economic vitality, achieves far too little return on investment and isn’t distributed equitably. As the Obama administration tries to diagnose and treat what ails the system, however, reformers shouldn’t be worried only about how to pay for it.

Instead, the country needs to innovate its way toward a new health care business model — one that reduces costs yet improves both quality and accessibility.

Two main causes of the system’s ills are century-old business models, for the general hospital and the physician’s practice, both of which are based on treating illness, not promoting wellness. Hospitals and doctors are paid by insurers and the government for the health care equivalent of piecework: hospitals profit from full beds and doctors profit from repeat visits. There is no financial incentive to keep patients healthy.

“The business models were all created decades ago, and acute disease drove those costs at the time,” says Steve Wunker, a senior partner at the consulting firm Innosight. “Most businesses in this industry are looking at their business model as entirely immutable. They’re looking for innovative offerings that fit this frozen model.”

Advances in technology and medical research are making it possible to envision an entirely new health care system that provides more individualized care without necessarily increasing costs, some health care experts say.

For full article click here

Life Insurance and the Elderly

Posted by: Allison Franklin

Who's cashing in on life insurance policies aimed at elderly?
Minnesota considers a ban on 'stranger- originated' policies sold to the elderly.
By MIKE KASZUBA, Star Tribune
Last update: February 9, 2009 - 12:03 AM

In a State Capitol hearing room crowded with lawyers and lobbyists, the focus at one point turned to -- of all people -- CNN icon Larry King.
The debate: Does a lack of state regulation leave Minnesotans prey to the kind of elaborate life insurance scheme that King says he fell for several years ago?
Some of the state's largest insurance companies are pushing to have so-called stranger-originated life insurance, or STOLI, outlawed in Minnesota. A ban on the arrangements, which a leading state senator called nothing short of "perverse," won approval last week from a Senate committee.
In typical STOLI transactions, speculators persuade the elderly -- especially those with limited life expectancies -- to take out life insurance policies, commonly offering large cash payouts in exchange for having the speculators named as the policy's beneficiary, usually after two years.

To read the full article click here

Six Car Insurance Mistakes to Avoid

- By Kevin Yu

If increasing numbers of drivers on the road are uninsured as the industry expects, those of us with insurance should take a good look at our coverage to be sure we're adequately protected in case of an accident.

Here are six common car insurance mistakes to avoid:
1. Driving without uninsured motorist coverage.
2. Carrying too much/too little uninsured motorist insurance.
3. Failing to consider insurance costs when car shopping.
4. Insuring your home and car separately.
5. Buying insurance with the lowest deductibles.
6. Never evaluating coverage.

Click Here to Read More

Expanded Children's Health Insurance Program Saves Money

Posted by Kaitlin Lanier

Before the dust had settled over reauthorization of the Children’s Health Insurance Program, some Republicans in Congress were grousing about messiness in its passage. But surely providing healthcare coverage to millions more uninsured children constitutes progress worth making.

The measure that President Barack Obama signed into law Wednesday had more in it than a version that President Bush had vetoed twice despite the bipartisan compromise that produced it. But the additions certainly weren’t enough to turn good legislation into bad law.

In fact, the law includes some key provisions that Republicans had insisted on.

More important, it’s a good-government investment that will improve kids’ health and save taxpayers money in the long run by encouraging timely and preventive medical care and less reliance on expensive emergency services.

Click here to read more.

Buying Car Insurance

by Shu Zheng

If you are a person with a bad driving skill, it may be the right thing for you to have – auto insurance. When it comes to buying car insurance, there are some factors influencing your rate. Such factors include your age, gender, record of prior claims, year of vehicle, and coverage type. The following will help you determine how much car insurance you need to carry and how to save money on the coverage.

Step 1: Keep in mind the amount of money you want to save for insurance.

Step 2: Figure out how much coverage do you need. General recommendation for liability limits are $50,000 bodily injury liability for one person injured in an accident, $100,000 for all people injured, and $25,000 property damaged liability. However, you available assets and driving habits may also need to be taken for consideration.

Step 3: Review your driving record and current insurance policy.

Step 4: Go to some online insurance quote sites, input your information and get a list of comparative quote.

Step 5: Research insurance companies, record and compare quotes.

Step 6: Phone contact those companies that you couldn’t search online for quote, and confirm price.

Step 7: Look for discount. Some of the discounts you might qualify for include low-risk occupation, professional organizations, combined coverage, discount for safety features, more risk assumed by driver, and discounts for senior citizens. Make sure you get all the discounts you qualify for.

Step 8: Choose the right company. You can visit your state’s department of insurance or get in touch with local body shops, and make sure to check out the financial strength ratings for an insurance company.

Step 9: Verify if the policy contains the coverage you want. Two clauses you should pay attention are retain your right to sue and avoid aftermarket parts requirement.

Step 10: Cancel coverage with your existing insurance company.

Sources:
http://ezinearticles.com/?Top-10-Factors-Affecting-Your-Auto-Insurance-Premiums&id=363878
http://www.edmunds.com/advice/insurance/articles/44858/article.html
http://www.edmunds.com/advice/insurance/articles/89618/article.html

Economy forcing more to drive uninsured

By Jen Lynch

The economic downturn has left most wallets feeling lighter. People are cutting back on expenses they feel aren't 'necessary', and many are beginning to let their car insurance lapse because the premiums are simply too high. But motor vehicle accidents happen every day, and many times it's not even your fault. The percentage of uninsured motorists is expected to rise from 13.8 in 2007 to 16.1 in 2010, based on current unemployment rates. Choosing to go uninsured on the highway is a very dangerous gamble, especially if you're having financial problems.

According to the Insurance Research Council, one in six drivers in the U.S. do not have auto insurance. In 2007, the five states with the highest uninsured driver estimates were New Mexico (29 percent), Mississippi (28 percent), Alabama (26 percent), Oklahoma (24 percent), and Florida (23 percent). The higher the percentage means that if you get into an accident, there is a stronger chance that it will be with an uninsured driver. This means that you would receive no coverage for injuries except for what your own insurance covers.

Ten states have a 'no pay, no play legislation', where uninsured drivers can only collect for property damage and medical expenses, but courts will not allow them to collect non-economic damages, such as pain and suffering, which usually increases the claim considerably. Although some states do not require uninsured motorist coverage, it seems like a good time to look into getting it in your policy, especially with more and more people driving uninsured.

How do you protect yourself from the increase in uninsured drivers?

- Include uninsured motorist (UM) coverage in your policy. 

- Look into your home state's accident and insurance policies and legislation. Find out if you're covered when it's not your fault!

- Your UM coverage should take care of medical expenses if you or your passengers are injured in an accident with an uninsured driver.

- To avoid becoming an uninsured driver, call your insurance company and find out if there are any available discounts, or look into increasing your deductible.

Full Articles

The Number of Uninsured Drivers Rises During Tough Economy

Uninsured Drivers Expected To Increase In Bad Economy
Uninsured drivers increase in downturn

Injury Board Article

Bad credit? Insurers will make you pay

Copied and posted by Pin-Yu Liao

By now you know that you need to keep tabs on your credit history to make a good impression on lenders, landlords and employers. But did you know that your home and auto insurers are also looking?
In most states they're allowed to use your credit information to formulate premiums - and in June the U.S. Supreme Court decided that your carrier doesn't need to tell you if your credit has caused you to pay more.

In concurrent cases against Geico and Safeco, the Justices unanimously agreed that the companies were not wrong in charging certain poor-credit customers more without notifying them.

Click here to read.

Health Coverage for Natural Disasters

By Pin-Yu Liao

With the hurricane occurrences such as Katrina and Andrew, the insurance rate has been rising, and there has been less coverage available in the natural disaster region. When there was more demand for the insurance premiums on home, and insurers were unwilling to establish coverage in the risky area, resulting in less supply, the insurance prices inevitably increased. If the insurers endured the heavy burden, the insurers would share the cost with their consumers.
Michael Paisan, principle at Legg Mason Wood Walker asserted that reinsurers would increase the rate by 25-30 percent to the property-casualty companies. The issue remained since there was questions of the affordability of the prices for consumers and insurance companies cost to rescue the disasters.
The Insurance Information Institute investigated that in the year of 2007, the average homeowner's policy in the U.S. was $868, increased up to 46%, compared to its standard in 2002. Rising home values, higher repair costs and disaster losses contributed to the boost of the insurance premiums. The coastal areas are considered risky. As a result, the mid-US had prices reductions as opposed to the residents on the coastal areas.
In the beginning of 2007, Florida homeowners anticipated to save insurance cost based on a plan conceived by lawmakers. The plan included a rate cut of 40 percent to resist the rising cost that affected people spending. Republican Sen. Jeff Atwater, who came up with the bipartisan plan, said he was convinced that Citizens customers in disaster-prone areas of the state would experience 15-20 percent rate reduction. However, there should be a balance between the expenses of consumers and adequate cash flows for the insurance companies.

http://money.cnn.com/2005/10/26/pf/insurance/hurricanes_rates/index.htm?postversion=2005102608
http://www.usatoday.com/money/industries/insurance/2007-04-20-mym-insurance-usat_N.htm
http://www.cbsnews.com/stories/2007/01/22/national/main2381698.shtml

Cutting Health Insurance Costs

By: Thomas Gillick

Health insurance is very important to own but can also be very costly. Health insurance costs are estimated to rise about 8% this year and even possibly more in the future. But there is hope to fight these rising costs. One approach is to further your education in health care. By learning the basics you can care or prevent illnesses from becoming severe and having the consequence of complications. Other ways is having your company keep an eye out for those more vulnerable to health risks. This includes those who are overweight and/or smoke. Also by taking prevention measures such as taking a flu shot, you can avoid future ailments. The other way to avoid high health insurance costs is by taking generic drugs instead of brand name drugs. Brand name drugs may look more attractive but generic drugs work just as well and saves. This could help cut medicine cost as much as 50%. Some generics can save 80% on cost. Another option is to open a health savings account. These accounts can be tax deductible when combined with a high-deductible insurance policy. These suggestions can help reduce health insurance costs both for you as the employee and you as the employer.

Sources:

Yahoo Finance Article
Yahoo Finance: Simple Steps Article

Kiplinger Article

Rising Unemployment Insurance Claims

Posted by Yi-Xin Jin (Lily)


The financial crisis and recession has caused unemployment rate to rise significantly over the past year. Many companies are laying off workers, filing for bankruptcy, or going out of business, which made an already very tight job market even more competitive. With unemployment reaching a new peak every month, insurers are raising the premiums on unemployment insurance and tightening the eligibility requirement. The rise in insurance premium is mainly cause by the significant increase in claims. Many insurance companies are tightening its eligibility criteria by increasing its initial unemployment exclusion period to protect themselves from clients that are at risk of redundancy. For individuals whose employment sector is experiencing a large amount of job losses, because there’s too much risk involved these individuals are not accepted by some insurers. This past Thursday, the U.S. Labor Department announced that the continuing unemployment claims rise to a record 4.78 million Americans, which is the highest continuing claims level since record keeping for the statistic began in 1967. Insurance advisers suggest that when individuals are facing a rising premium, they should think carefully before deciding on cancelling their cover. Especially for individuals whose health has deteriorated since they took out their insurance, they will have a higher chance of being declined to a new cover in the future.

Sources:
1. http://www.ft.com/cms/s/2/1d9acff6-ef0d-11dd-bbb5-0000779fd2ac.html 2. http://bstocksdev.weblogsinc.com/2009/01/29/u-s-continuing-unemployment-claims-rise-to-record-4-78-million/

Alternate forms of Insurance

Posted By: Stephen Mills, Group 1A

When asked about ‘Insurance’ it is common for most people to immediately think of car insurance, health insurance, life insurance…etc. but what about insuring your family’s immediate needs in case of emergency? While most people are covered if they get in a car accident or have a health emergency, not many consider the fact that losing their job or income is just as big of an emergency that needs to be taken into consideration.

According to several different sources the following procedures should be incorporated into peoples lives to give them financial insurance if the worst-case scenario occurs and they lose their income. For instance one of the most basic recommendations to help people save money is to keep a minimum balance of five hundred dollars in their checking account. This is recommended to insure that checks don’t bounce. In many cases a check will bounce by small amounts of money from a minor oversight by the person writing the check. By keeping a buffer of five hundred dollars in your checking account it will prevent the bank from charging you for over drafting or bouncing a check which in the long run could save you a lot of money.

Another rule of thumb recommended by almost every source I stumbled across was to keep a minimum of the equivalent of three months expenses as an “Emergency Fund” that is only to be used in case of emergency. By doing this you are protecting yourself and your family incase you lose your income unexpectedly. This emergency money will give you a buffer if you lose your job so that you can have some time to find a new job without losing all your assets. Not to mention it will help with unexpected medical expected if any should occur.

Sources:

Why you need $500 in the Bank.
Why I'm saving up $15,000 this year.
Emergency Money.

The State Of America's Health Care Is Poor According To American College Of Physicians

- By Kevin Yu

According to Jeffrey Harris, president of the American College of Physicians (ACP), he believes that the state of America’s health care is poor because there are too many uninsured and underinsured people. As a foreign student coming from Taiwan, I was surprised to hear this news. The reason why I was so surprised is that I considered America is one of the well-developed countries and health care should not be an issue.

Harris suggests that there has to have policies that expand primary care workforce capacity and the implementation has to start immediately. He stated, “Given the fact that it takes a minimum of seven years to train a primary care physician, the U.S. cannot afford to delay implementation of policies to attract more new physicians to primary care and to sustain those already in practice.”

After reading the news, I started to wonder if I know anything about health insurance within the U.S. Since I am not familiar with the American culture, I just learned that there are three main types of coverage that I can choose from: H.M.O.s, P.P.O.s (Preferred Provider Organization and Point of Service), and the newer option called an H.D.H.P. (High-Deductible Health Plan) paired with a savings account.

H.M.O.S. provides comprehensive coverage at a low cost to the consumer.

P.P.O.S. is some what similar to H.M.O but more flexible and has lower overall out-of-pocket costs than a fee for service plan.

H.D.H.P. offers the option to sign up for a high deductible health plan that is linked to a health savings account or health reimbursement account.

Sources:

1. http://www.nytimes.com/2009/02/03/your-money/health-insurance/primerhealth.html?_r=1&scp=2&sq=Health%20Insurance&st=cse

2. http://www.medicalnewstoday.com/articles/137680.php

3. http://www.medicalnewstoday.com/articles/137600.php

College Graduates: Do You Have Health Insurance?

By Kaitlin Lanier

For juniors and seniors (especially seniors), graduation continues to loom closer and closer. Although most students don’t really want to view it as a reality, it definitely is one. Not only is graduation a concern, but so is a student’s health insurance situation. Students that are insured on family or college health plans will most likely find themselves without health insurance once they receive their diploma. With the country deep in recession, finding a job that provides health insurance is not as easy as it has been. Therefore, as college students move toward graduation, they must keep in mind a few things concerning their health insurance needs.

In a health insurance plan, the deductible is the amount that must be paid by the insured before the insurance kicks in. Typically, a higher deductible means a lower monthly payment. Although a high deductible can mean a high bill if the student is injured, it is fairly easy to borrow money to help. Therefore, if a student is searching for a low monthly payment, a high deductible insurance plan would be ideal. There are also short-term health plans, which are designed to provide coverage for a short period of time. They would satisfy students that need coverage for a year or so until a job is secured. Also, make sure to fully research health plans. Different states have different regulations and offerings that each student should be aware of. Most importantly of all, consider all options before going without health insurance. Issues that require health insurance have a tendency to happen when they are least expected. Don’t be caught by surprise.

Sources:
Health Insurance for College Grads by Thomas M. Anderson
Health Insurance Tips for Recent College Graduates by eHealthInsurance
Insurance Alternatives for College Grads by Matt Egan

Putting a Price Tag on Your Life

By Lauren Cappelli

Putting a price tag on different things seems like a pretty easy task, but what is it like putting one on your life? Purchasing life insurance is like putting a price tag on your life. There are many factors that a person must take into account when coming up with the final amount. This is often a difficult task due to the fact that you are planning for your death; however it is a crucial part to your personal financial planning.

Some of the most important things to consider when formulating the amount of a life insurance plan are your number of dependents, marital status, your earning potential as well as your spouses, and whether or not you and your spouse are employed. The number of dependents is generally the most important factor. You want to make sure they are taken care of and protected if you pass away. This could also include a spouse who is unemployed who depends on your income.

What happens if you are single? This question often comes up and many people are under the assumption that they don’t need life insurance. If a single person leads a simple life and doesn’t have a mortgage then a policy may be unnecessary. However, if you do have a mortgage or parents that may need to be dependent on you in the future a life insurance policy is a good idea.
Nobody can plan their lives and know when they are going to die. However, you have the ability to plan to provide for your loved ones if something unexpected did happen. Life insurance should be an important part of your personal financial plans.

Sources:

http://articles.moneycentral.msn.com/Insurance/InsureYourLife/HowToAssessYourLifeInsuranceNeeds.aspx

http://www.nytimes.com/2006/09/23/business/23insurance.html?pagewanted=2&_r=1

Health Insurance Concerns

By: Allison Franklin

With the economy going under the way it is, people are facing more trouble than just losing their jobs. Since people are losing their jobs, they are losing their health insurance coverage that goes along with it. Health insurance can be very expensive on its own, which is why some people are choosing to go without it. This can be dangerous as a health emergency can strike at any moment and these individuals will be unable to pay for the expensive medical care. Based on the 2007 Census, the number of people covered by health insurance in 2007 was 253.4 million. This number was relatively close to the 2006 number. However, the difference comes when the statistics for private vs. public health insurance are looked at. In 2006, the number of people covered by public government insurance was 80.3 million, this increased to 83.0 million in 2007. This increase proves that people are losing their health coverage and are forced to go on the government sponsored plans. The most well known example of a government sponsored insurance plan is Medicaid. These plans are less expensive than the public plans, but the coverage is not nearly as good. Also, to qualify for these plans people have to be considered in poverty. Where does this leave the average middle class family who is left without health insurance? It is a good option for people as it is better than nothing in the case of an emergency, but people should be able to be protected with quality health insurance.

Sources:

1) http://sentinelsource.com/articles/2009/02/02/news/local/free/id_341458.txt

2)http://www.census.gov/prod/2008pubs/p60-235.pdf

3) http://www.help4adhd.org/en/systems/insurance/public

Health insurance may get easier after layoffs

Posted By: Jen Lynch

Associated Press

By Calvin Woodward

It will get vastly cheaper for most people to keep health insurance after losing a job if the government's stimulus plan becomes law. Some nickel and dime cuts in health coverage for the poor will be reversed, too. Geek jobs in medicine will grow.

The billions to be poured into health care from the economic stimulus package will do little if anything about the chronic conditions behind the nation's stubbornly large ranks of uninsured.

Under a dramatic, temporary expansion of COBRA, the law that lets the unemployed keep health insurance from their old job for up to 18 months if they pay for it in full, costs would drop by about two-thirds for a year.

Moreover, people who lose a job they've had for 10 years could stay on COBRA at their expense all the way to age 65, when Medicare takes over, if they don't get another job with insurance first. People 55 and over could do the same without meeting the 10-year requirement.

Full Article here

Most Expensive States for Insuring a Home

Posted by: Thomas Gillick

by Matt Woolsey
Wednesday, August 20, 2008

Parts of coastal Texas and Mexico were treated to 15 inches of rain courtesy of Hurricane Dolly, a Category 2 storm that made landfall last month. Its 100 mile-per-hour winds made it the most powerful U.S. storm since Wilma, a Category 5 storm in 2005.

But compared with what's expected through the end of the year, Dolly looks like a light drizzle. The National Oceanic and Atmospheric Administration recently announced that it expected three to six major hurricanes of Category 3 strength or higher before the end of the year. This will no doubt have homeowners in the Gulf Coast states of Texas, Louisiana, Mississippi and Florida checking their insurance plans.

Click to read more

Approval of Health Insurance for Unemployed

By Shu Zheng
-National News

The American Recovery and Reinvestment Act authorizes approximately $544 billion in new spending and $275 billion in tax cuts. The purpose of this legislation is to stimulate the economy by preserving and creating jobs, helping the unemployed and uninsured, and assisting states with budget relief measures. The U.S. House of Representatives has just approved measures to expand access to affordable health care coverage for workers who become jobless because of the recession. It is estimated that this package will help 8.2 million people keep their health care coverage.

It is expected and predicted that millions of Americans will lose their jobs because of the recession. With these job losses they and their families will then become uninsured. This bill will enable states (through Medicaid programs) to provide immediate assistance to families like this while they search for new jobs. Other federal funding will be earmarked for hospitals, doctors, clinics, and pharmacies to enable them to meet their payroll requirements and continue to employ the staff necessary to care for the people who have lost their jobs.

Often these unemployed families are enduring economic crisis and any health condition may be enough to push them to bankruptcy. If middle-class Americans experience job and wage cuts and a loss of health insurance they may not be able to keep up with monthly expenses like mortgages and college tuitions. This bill will enable funding for families in dire need and will also enable coverage for everyone while in the process of the pursuit of comprehensive health reform.

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Dental Insurance vs. Dental Plan

Posted by Jenny Sutton

Relief Seen for Jobless and States in Health Care Plan

- By Kevin Yu

The stimulus bill working its way through Congress is not just a package of spending increases and tax cuts intended to jolt the nation out of recession. For Democrats, it is also a tool for rewriting the social contract with the poor, the uninsured and the unemployed, in ways they have long yearned to do.

With little notice and no public hearings, House Democrats would create a temporary new entitlement allowing workers getting unemployment checks to qualify for Medicaid, the health program for low-income people. Spouses and children could also receive benefits, no matter how much money the family had.

In addition, the stimulus package would offer a hefty subsidy to help laid-off workers retain the same health plans they had from their former employers.

Altogether, the economic recovery bill would speed $127 billion over the next two and a half years to individuals and states for health care alone, a fact that has Republicans fuming that the stimulus package is a back door to universal health coverage.

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How to buy your own health coverage

Posted By Lauren Cappelli

By Bankrate.com
As companies cut expenses and more entrepreneurs strike out on their own, the individual health insurance market is growing.

"There's been a precipitous drop in the number of businesses offering coverage," says Sam Gibbs, the senior vice president of eHealthInsurance, an online insurance broker. (Compare policies and get quotes on MSN Money.)

These days, the same people who traded company pension plans for self-managed 401(k)s are being asked to take on one more chore that used to be handled by human resources: shopping, selecting and purchasing health coverage. And it can be daunting.

Plowing through the process Rob Snow put it off for more than a year. When he left a successful online company at age 39 to start Snow Portfolio Management in Bethesda, Md., he took advantage of COBRA, or the Consolidated Omnibus Budget Reconciliation Act, which allowed him to remain on his old company's group plan as long as he paid the premiums. But that privilege extends only for 18 months. And he was nearing the end of it. (For more, see "Know your COBRA rights.")

So, one weekend, Snow sat down at his computer and searched for "health insurance" -- and got a million hits. "I probably spent an entire day scrolling through those," he says. "I got worn out. I probably didn't do anything for three weeks."

But Snow eventually went back to the computer and zeroed in on a few sites that allowed him to get quotes or compare policies.

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Should Insurance Companies Use Credit History for Rates?

Posted by Kaitlin Lanier

If you're in an accident or get a speeding ticket, your car insurance may go up. But did you know - whether you've paid your bills on time can also raise your rates? In Kansas, your insurance company can use your credit history to determine how much you'll pay.

P.J. and Ralph Stoneberger found that out the hard way. The Enterprise, Kansas, couple insures their home, a rental house, a farm and some vehicles. They were shocked with their total insurance bill jumped nearly $2000. Their insurance company recently started using their credit history to determine rates.

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How Risky is Life Insurance?

Posted by Allison Franklin

The Risks of Life Insurance

Anxiety About Industry Complicates Consumer Choices

By David S. Hilzenrath and Nancy TrejosWashington Post Staff Writers Sunday, February 1, 2009; Page F01

It was a head-spinning week for anyone with a life insurance policy.
First, the industry lobby argued that some insurers are in such dire shape that they need immediate relief from requirements meant to keep them solvent. Then, when regulators denied the relief, the industry lobby was quick to issue a more soothing message: Don't worry, there is plenty of money to pay claims.

The mixed messages may have left you hoping you never need life insurance. But if you already have a policy or need to buy one to protect your spouse and children, how nervous should you be?

The hard truth is . . . it's hard to know.

But we do know this: there's a safety net that could protect you if your insurer fails. However, there are limits to the benefits it covers, and the safety net has distinct vulnerabilities of its own.
If this doesn't comfort you, beware that dumping your policy could have serious consequences. For example, depending on your age and health, you might have trouble replacing it, or you could end up paying much more for a new policy.

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Former AIG Vice President Sentenced to Four Years in Prison

Posted by Yi-Xin Jin (Lily)

WASHINGTON, Jan. 27 /PRNewswire-USNewswire/ -- The former vice president of reinsurance of American International Group Inc. (AIG), was sentenced today to four years in prison for his role in a fraudulent scheme to manipulate AIG's financial statements, the Department of Justice announced.

Christian M. Milton, 61, of Wynnewood, Pa., who served as vice president of reinsurance at AIG from approximately 1982 to March 2005, was convicted by a federal jury on Feb. 25, 2008, on charges of conspiracy, securities fraud, false statements to the U.S. Securities and Exchange Commission (SEC) and mail fraud. In addition to the prison term, Milton was sentenced by U.S. District Judge Christopher F. Droney to two years of supervised release following his release from prison and a $200,000 fine. Milton was ordered to surrender himself to federal authorities in 60 days.

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Why Insurers Need Not Fear Recession

Posted By: Stephen Mills; Group 1A

On the New Year’s Eve just passed, 1,147 vehicles were torched on the streets of France, almost a third more than the year before. Brits too, are more partial to burning cars in times of economic strife, according to Andrew Torrance, head of British operations at Allianz, an insurer. There was an alarming rise in fires during both of the past two slowdowns (see chart). Arson is just one of the behavioural changes that drive up claims against insurance companies when economic growth stalls. Other types of crime rise. People and companies become more litigious. Firms offering credit protection are exposed to bankruptcies. At the same time, demand falls. For property insurers, say, there are fewer new factories and houses to insure. And life insurers struggle to sell policies when people are penny-pinching.

This combination of higher claims and lower new business written would appear to be toxic for underwriters. But as you might expect from the insurance industry, it is a lot more complicated than that, because recessions also tend to depress some types of claims. People drive less, reducing the number of motor accidents. The industries that often shrink most in a recession—construction and manufacturing—are among the most dangerous for workers. That means fewer payouts for insurers that have written protection against injuries. And for commercial and industrial property, though damage to premises rises, the cost of finding alternative facilities is lower.

Moreover, says Robert Hartwig, of the Insurance Information Institute, an American trade body, most existing non-life policies are nondiscretionary. In developed countries if you want to drive a car, employ a worker, or buy a house with a mortgage, you usually need insurance. At the same time, the credit crisis has eaten into insurance firms’ capital—although the industry has managed its assets better than the banks have. Less surplus capital should improve underwriting discipline, pushing up rates. By most accounts this process has begun.

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Children's health legislation expected to pass

By Jen Lynch

The Senate is expected to pass legislation tomorrow, reauthorizing the State Children's Health Insurance Program (SCHIP), previously vetoed by President Bush. 

The program currently only covers 7 million children who are on or close to the poverty line, and it expires on March 31 this year. President Obama promised to obtain coverage for all children in the country, and the passing of SCHIP will begin this process. The new bill will give coverage to an additional 4 million children who are not eligible for Medicaid, and it will cost approximately $32 billion over the next 4 1/2 years.

Republicans tried to fight the legislation, stating their disagreement with several aspects concerning immigrants and taxpayers. Democrats want to drop the 5-year waiting period for insurance that illegal immigrants must currently undergo, which is clearly not aligned with conservative values. Republicans argue against the method of funding for the program, which will be paid for by increasing the cigarette tax by 61 cents a pack ($0.39 to $1). They also believe that middle-income families who are making enough to afford private insurance, will simply choose SCHIP instead, further burdening taxpayers for possible expanding coverage in the future and increasing dependence on the government. However, these suggested alternatives were immediately rejected, this one by a 65-32 vote. 

Those against SCHIP believe that we need to choose between fixing the economy or fixing the healthcare system, but many believe that by fixing healthcare, the economy will also improve. Sure the costs of implementing a new process and system will be high at first, but universal health care will help balance medical costs and allow our government to control costs and eventually lower overall health care spending.  Plus, children who are currently unable to receive necessary medical attention, will now be able to stay healthy, therefore substantially lowering the chance of additional health issues in the future. We need to make sure all of our children are healthy now, so that as their generation ages, the need for expensive medications or aid from the government will decrease.  

Sources for this post:

Washington Post Article

Reuters Article

New England Journal of Medicine Article

Health Insurance for your dog?

By Jen Lynch

The Associated Press

NEW YORK — It’s a common remark for those devoted to their pooches: “I spend more on my dog’s health care than I do on my own!”

Dog owners can expect to pay a few hundred dollars a year for routine veterinary care, but a serious illness could send the bills soaring into the thousands.

One way to protect yourself is to buy pet health insurance.

It’s still not that common. Fewer than 1 percent of pets are insured in the U.S., according to Petplan USA — one of just 13 plans available in the U.S.

Most people don’t start looking for pet insurance until they face a big vet bill, said Michael Hemstreet, who runs Pet Insurance Review, a Web site for comparative shopping.

“But not one of the companies will cover a pre-existing condition,” he said. “It’s like if I don’t have car insurance and get in an accident, and then try to apply for auto insurance.”

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AIG Executive Sentenced to Prison

By Shu Zheng

A former vice president at American International Group Inc. was sentenced to four years in prison for defrauding shareholders, avoiding a possible life term.

Christian Milton, 61, was convicted Feb. 25 with four former executives of General Reinsurance Corp. of using a sham transaction in 2000 to help AIG improve its balance sheet. The judge could have given Milton a life sentence after ruling that the fraud cost AIG shareholders as much as $597 million.

Milton asked U.S. District Judge Christopher Droney for a “minimal” term, citing his good work in the community. Droney said that while life in prison would be too severe, the sentence must deter other executives, and that Milton’s conduct showed a “stark lack of honesty and respect” for investors.

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by Jane Mills and David Voreacos (Bloomberg)

A Relief in Health Care

By Shu Zheng

The stimulus plan that is working through Congress is not only a package of tax cut, but also a tool for rewriting the social contract with the poor, the uninsured, and the unemployed. The government plans to create a temporary new entitlement allowing workers getting unemployment checks to qualify for Medicaid, the health program for low-income people. In addition, the government would offer a subsidy to help laid-off workers retain the same health plans they had from their former employers. The economic recovery bill, as known, would expedite $127 billion over the next two and a half years to individuals and states for health care alone. It seems like a tremendous health assistant for the public, and it is undoubted that this plan will boost the economy for a short period of time, but it won’t eventually solve the problems that exist in the pool of health insurance.

The stimulus program is designated to assist the laid-offs and low-income population, however, the uprising costs of health cares and medications will eventually bring us to a deeper concern. Due to the downfall of sale affected by the current economy, small business owners have now been struggling to keep on paying high insurance premiums for themselves and their employees. As the economy turns worse, the proportion of small businesses that do not offer health insurance to workers has now increased significantly from 74% in 2007 to 85%. According to recent news, health insurance premiums will most likely double by 2016, and the average costs of employer-paid health insurance will jump from $11,381 to $24,291 in the future seven years. Facing the skyrocketing insurance prices, small business owners are looking to see what else they can cut in order to keep their businesses going. And often, they cut the costly health insurance.

So looking back on the stimulus package, even it seems to be a great relief for the public, especially the jobless, the rising costs of health care and medication will eventually come in the way. Providing the jobless population with insurance coverage will result in a positive outcome, however, in the long run, more actions are required in order to boost the insurance market.

Sources:

1. http://yourbiz.msnbc.msn.com/archive/2009/01/28/1763261.aspx

2. http://www.washingtonpost.com/wp-dyn/content/article/2009/01/28/AR2009012801750.html

3. http://www.nytimes.com/2009/01/28/us/28health.html?pagewanted=1&_r=1&ref=business

Is your money safe?

By Jenny Sutton


In current economic crisis, many people wonder if their money is safe in failing banks. Fortunately, the Federal Deposit Insurance Corporation (FDIC) insures banks throughout the United States. More importantly, it is crucial to know what exactly is insured and the limits to the FDIC.
With quick research, an investor can discover that their checking deposits, NOW accounts, savings accounts, and time deposits are all covered up to $250,000 in insured banks. Looking more closely, money invested in stocks, bonds, life insurance, mutual funds, annuities and more are not accounted for under the FDIC. This may be deceiving since they are bought through an insured bank, yet they are still risky endeavors. Furthermore, if a joint account exists, the FDIC insures up to $500,000 ($250,000) for each of the accountholders.
To relate the current crisis with the past, we can look back to find the origination of the FDIC. President Franklin Roosevelt called for this deposit insurance in response to the bank panic in 1933. With the creation of the FDIC, as well as other government regulation, the panic soon was resolved and the economy got back on its feet. The question is, can we handle today’s crisis in a similar way?

Sources
http://safemoneyplaces.com/fdic.htm
http://www.fdic.gov/deposit/Deposits/insured/basics.html
The U.S. Banking Panic of 1933 and Federal Deposit Insurance by Julio J. Rotemberg and Sabina M. Ciminero. Harvard Business School.

FDIC limits

Posted by Jenny Sutton

Government Affects Financial Crisis

Posted By Chaoran Hu

Government plays an important role in the financial structure and economy. All the government acts will more or less affect the economy. However, in a 60 minutes interview of Barack Obama. When asked about the financial crisis problem, he argued that the problems were caused by the deregulations. Actually, Government is also a victim of the economy recession.As Bloomberg recently updated, after the Federal Deposit Insurance Corp announced that they will mange the so-called bad bank plan so that the Obama administration is likely to set up as it tried to break the back of the credit crisis. Meanwhile, the U.S. stocks gained, since this act boost the confidence of the government. The Standard & Poor's 500 Stock Index rose 2.2 percent to 864.25 as of 11:48 am in New York. CitiGroup Inc. which has fallen 47 percent this year climbed 18 percent.Since government contributes to the economy changes, it now has to take lead of the economy; the only one who can rescue the economy recession is the government. The government will assist to boost the economy for the next couple of years.

Sources: U.S. Treasuries Drift Lower Ahead of FOMC Statement http://www.economicnews.ca/cepnews/wire/article/220579

Obama Says Not a ‘Moment to Spare’ on Stimulus Plan

http://www.nytimes.com/2009/01/29/us/politics/29obama.html?hp

Recession Affecting Auto Insurance Decisions

By Kaitlin Lanier

With the economic downfall, drivers are illegally deserting their car insurance, putting themselves and other drivers in danger. As the jobless list increases, people are dropping their insurance or looking for discount auto insurance, in order to save money. As a result, drivers that are insured will end up paying more, with the costs of the uninsured drivers being distributed among the insured. If an uninsured driver hits an insured operator, the victim may need to sue to recover damages, causing more trouble and a longer process for the insured. All of this could mean 3 million more uninsured drivers on the road in 2010 than in 2005, based on U.S. Department of Transportation data.

In order to combat against these uninsured drivers, you can make sure you have extra coverage that compensates you if you are hit by an uninsured motorist. Also, setting your own liability insurance amount to be equal with your assets will help determine the limit of your uninsured motorist coverage. Some states are required drivers to carry uninsured motorist coverage, but it is recommended if your state does not, although it may increase your premium. Uninsured drivers are dangerous and could lead to potential disasters. Therefore, it is ideal to take the necessary steps to protect yourself against such careless drivers.

Sources:

Crash Course: More drivers are going without insurance in down economy, Jan. 4, 2009. Cheapest Car Insurance, Jan. 26, 2009. http://cheapest-cars-insurance.blogspot.com/2009/01/crash-course-more-drivers-are-going.html

More Drivers Going Without Insurance, Jan. 19, 2009. CarInsurance.com, Jan. 23, 2009. http://www.carinsurance.com/news/content4211.aspx

Recession Affecting Auto Insurance Premiums, Dec. 10, 2008. iBankCoin.com, Jan. 26, 2009. http://www.ibankcoin.com/peanut_gallery/index.php/2008/12/10/recession-affecting-auto-insurance-premiums/

Insurers to be next credit crunch victims

Posted by Yi Xin Jin (Lily)

The life insurance industry is one of the biggest victims of the credit crisis. The future of the industry is at a crossroad. Given what’s happened to AIG, the world’s largest insurance company, many people are reluctant to buy insurance today. One of the main reasons behind this issue is because people lost their confident in the insurers. Individuals are unsure of “where will the industry end up? How much potential exists in the traditional segments, traditional products, and traditional distribution channels? Will they fade away or simply fragment the market further? What's on the horizon for substitutes?” (SRI Consulting) These uncertainties derived mainly from the life insurer’s exposure to the extremely volatile and risky financial markets. In the past, approximately 15 to 20 percent of most insurance companies’ revenue derives from investments. The huge downturn in the stock market and heavy losses in asset backed securities has had a severe impact on insurance companies.

In response to the crisis of confidence among investors, central banks around the world has announced a series of actions that will provide more liquidity and effective set of instruments to stabilize conditions in both strained markets and troubled institutions. Most economically developed countries haven’t seen a crisis like this since the great depression. However, today’s crisis is nothing new but a inherent result of the captialist system. Josh Lees, a writer for Socialist Magazine writes in his article “Understanding Marxism: why capitalism is a system of crisis” that “Economic crisis is a recurring feature of capitalism. Every economic boom ends in a slump, every "golden age" crumbles into recession.” Even though, capitalism has brought wealth and opportunities for many but in the past the system has also created periods of crisis. Many economists believe that there’s no long term detriment from our current crisis; instead there can be an opportunity for change in our markets.

Sources:

1. http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=455452&in_page_id=3

2. http://www.sa.org.au/index.php?option=com_content&task=view&id=1629&Itemid=106

3. http://www.sric-bi.com/CFD/FOLI.shtml

Do Life Insurers Need Resuscitation?

Posted by Yi Xin Jin (Lily)


Needham, Mass. — Has the financial crisis in the United States has claimed yet another victim? According to a new report, "Guilt by Association or Real Trouble? Outlook for US Life Insurer's Profitability and Spending" from TowerGroup, U.S. life insurers—among the largest institutional shareholders in the world—have written off major investments in struggling financial firms. As a result, the life insurance industry is facing a number of challenges to profitability in the wake of the financial crisis, and needs to look to initiatives that will prevail though 2009 as the industry recovers.

The report's author, Rachel Alt-Simmons, research director, insurance for the Needham, Mass.-based firm, says that, in general, the highly capitalized life insurance industry in the United States has largely been thought to be immune to the credit crisis. But like many other financial institutions, the interconnectedness of banks, asset managers, brokerage firms and other insurers is proving to have a much greater impact than previously anticipated.


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Facing up to the costs of long-term care

Posted by Pin-yu Liao

Some insurance decisions are easy. Take life insurance. You know you need it to replace the income your spouse and kids would lose if you died. Insurers don't have much leeway to dispute claims for death benefits because "deceased" is a pretty definite condition.
After you decide how much to buy, you can compare various term policies, see which are the cheapest and most practical, and buy the least expensive one that fits your needs.

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