AccuQuote Blog

Annuities - A Good Investment Option for seniors

Mon, 25 Feb 2013 15:31:01 GMT

An annuity is a financial product that accepts payments (either a lump sum that accrues interest over time or payments in installments or premiums that will also accrue interest over time) and upon annuitization, will make a series of payments back to the individual, as a sort of income. An annuity is a tool that is meant to last. So even if annuities vary greatly in structure, they're meant to be long standing instruments that you should view as a long term investment. Annuities are good investment options for seniors because they are a supplemental income plan for retirement. They are low risk financial products as compared to other options for retirement. They also usually have guaranteed interest rates which seniors benefit from because this is again, a comforting low risk scenario. Even if the markets tank, they can expect to receive these returns.

How will you know if an annuity is a good investment option for you?

The answer differs from person to person. First, says the California Department of Insurance, look at your financial situation, then your health, then your overall goals. You may be looking at an annuity because you want to supplement your retirement incomes. Start by looking at what you have with you: how much SSI is you looking to get and if you are on a pension plan of any sort. How many people will this income cover? Some retired couples may have annuities and pension accounts set up for themselves. Others may require supporting a child or other family member. Then think about how much it will cost you. Can you actually afford the premium payments? Do you have the luxury to leave the money inside the annuity for several years at a time? Are you going to need money for expenses like hospital bills, long term care or assisted living needs? Even if you decide to steadfastly keep the money inside your annuity, what surrender charges would you be looking at in an emergency? Some annuities have benefits and allowances like partial withdrawals, which allow you take a small amount out of the annuity contract without being penalized. Since annuities can be a complicated affair, it makes sense to receive sound financial advice from a qualified person who can independently review your financial status and make recommendations that are appropriate for you.

When you're ready to seriously consider buying an annuity, remember these advantages:

Though the rate of growth is slower than other riskier investments, they can easily outperform a Certificate of Deposit's growth rate.
They can guarantee interest rates at 3-4% for as long as 5 years.
Annuities earn interest on a tax-deferred basis. So don’t pay taxes on any interest earned until its time for withdrawal. Fixed deferred annuities can offer competitive rates of interest as compared with other safe-money instruments.
If you choose a lifetime income annuity, you can earn a monthly income for the rest of your life, which you won't outlive. However, you can also elect to receive benefits for a certain number of years instead. Make sure to find out how survivor benefits will work out in the case of your annuity in case you pass away during the benefits period.

Baby boomers facing retirement are looking at a serious shortage of retirement contingency plans. For rich clientele, an annuity is a specialized product that can serve them well. For older couples facing retirement in the imminent future, an annuity may not allow enough accumulation time. If you are a young couple and want to invest your money in higher interest earning accounts, consider the amount of risk you're willing to offset your investment at. Make sure to read up on all necessary documents before an annuity purchase. Check the credit rating of the company you'll be buying from, to make sure your investment will be safe in the long term. Buy only from a company that has been rated A- or higher by AM Best ore the equivalent S&P rating. And remember to get quotes so that you can compare and rate annuities before buying.

This Valentine’s Day Express Your Love in a Different Way

Thu, 14 Feb 2013 16:16:02 GMT

Being in love...

Oh! those gushy feelings, where everything seems right with the world, and the ground has been taken from underneath your feet.

All of us, whether we're young and hipster, middle-aged and responsibility-burdened, happily retired after years of successful marriage, hey, even the old, curmudgeon, skeptics have been conditioned to the idea of love as a special feeling that doesn't happen too often. Most of these feelings have been fashioned by our society's view of a romantic, passionate kind of love that we've all had (or at least wished we've had) at some point or another. However, we celebrate love in many ways, through gestures big and small, occasions that mark a special day of love, and lifestyles that bring us together to continue loving each other-- in the form of families, communities and long-lasting relationships. We understand that love as a feeling is more than what just lovers share. Love can be an endearing, enriching experience shared between friends, family, and other loved ones around us without an erotic or romantic element in the relationship. Best friends who've stuck around through thick and thin, siblings who can't get along on the face of it but are fiercely loyal to each other, confidantes and mates who find each other's company in the oddest places, all of these relationships signify a kind of love that we is shared between us.

And Valentine's Day every February is just another excuse to celebrate and show the special ones in our lives what they mean to us. In my family, every Valentine's Day, my father would put a little card by our pillows while we were sleeping with a love message from him to all of us to say how much he cared. Every year it would be a different message (sometimes he would also fold in some bills we could spend), but for the longest time, Valentine's Day signified celebrating the love that a family shared. Even when we were teenagers and we started dating, we never forgot that this day was special for everyone, not just those struck by Cupid's arrow.

So here are two new ways to think about love this Valentine's Day:

1. Expand your perspective to include more than just romantic attachments in your notion of love

2. Express yourself to the people you care about in a way that they'll never forget

What if you could gift someone you love the protection of life insurance? While it may be entirely true that they won't need it, consider this: at least 56% of US households are not adequately protected by a life insurance policy. We're effectually looking at several homes that will have some sort of financial breakdown if their primary breadwinner were to die today. Are there loved ones around you who might be in the same position without any safety nets that their families can rely on? This can be a brother-in-law you feel a special connect to, or an aunt who you have a soft corner for and always wanted to do something special for. Even your own spouse and child can benefit from their own policies. Replacing a stay-at-home spouse can cost as much as $40,000 a year, and children can extend their life insurance coverage during adulthood even if they fall sick in such a way that deems them uninsurable for any new life insurance policies. A small life insurance policy that, at the very least, can take care of funeral bills and medical expenses can bring peace of mind to the people you love.

To borrow a Shakespeare quote, "Love sought is good, but given unsought is better." If you believe that your loved one has the need for life insurance, do a quick life insurance needs analysis and get free life insurance quotes to see how much it will cost you. And surprise them with a new and unique perspective on gifting! Since I work in life insurance, I know how important a policy can be to sorting out financial plans and stability for a family. You could help pay for their first month's premium, and show them why having life insurance coverage is the right thing to do. This could be a very unique gift for someone you love; so go ahead, and make their Valentine's Day!

The Dos and Don'ts of Buying Life Insurance

Thu, 31 Jan 2013 16:28:23 GMT

There are some things in life you ought to do your homework on. One of these things is life insurance. When you're ready to purchase a policy, make sure to look through this list of do’s and don'ts. With a framework in mind, you'll be better equipped to shop for the best bargains, ask your agent all the right questions and opt for modifications and customization in your policies that most people won't even know about!

Do’s:

· Do introspect on your need for life insurance. Quantify it in numbers if you can. If you have a family of four, how much will they need to support themselves without you? If you are not the primary breadwinner in the family, what minimal amount of coverage will be enough for your surviving family to pay off funeral costs, outstanding medical bills and other urgent expenses?

· Do choose what type of life insurance you'll need. Do you have the need for permanent death benefit? If not, an affordable term life insurance policy will be better suited to your needs.

· Do make a comparison chart of policies and quotes out there. Some large aggregator websites like AccuQuote offer free comparisons up to 5 carriers for a policy of your choice. When you're able to compare quotes and features in a policy, you're able to really choose what's right for you. Your best interest is served.

· Do consider getting your family members insured as well, even if it means adding them on riders on your own policy. Adding child and spouse riders to your policy won't add too much to your bill (in the case of most life insurance companies). Child riders can cost as little as a few cents a month!

· Do review your policy yearly. Not reviewing can mean losing hundreds of dollars in unnecessary premium payments, forgetting to update beneficiary lists, using a life insurance solution that no longer fits your needs and lapsing out on a policy provision. All these expensive mistakes can be avoided with a simple check every year.

· Do get quotes on life insurance every few years to see if an improvement in your health will reward you with a lower priced policy.

· Do inform your family of your policy and what they should do to file a claim in the event of your death. While we all avoid stark subjects of that nature, you are just displaying common sense when you choose to inform your loved ones about safety nets that you have put in place to protect them even when you're gone.

Don'ts:

· Don't blindly believe everything your agent says. Make sure they have been around long enough for you to trust their opinion and judgment.

· Don't buy whole life or permanent life insurance until you're absolutely certain that you can afford it! I know this is contrary to what many in the life insurance industry advocate, but at AccuQuote, we believe that buying term life insurance makes sense for many young, growing American families. You can be covered for so much more value per dollar with term life.

· Don't buy what someone else has recommended to you. While it is hard to believe, life insurance can and is not a one-size-fits-all solution. Use a life insurance needs calculator (plenty available online) to ascertain what is right for you).

· Don't opt for the monthly premium payment option if you can help it. You can save a lot by choosing to pay your premiums yearly.

· Don't forget that your policy can be modified with riders to cover additional aspects. This offers a customized solution to life insurance owners.

· Don't forget to read the fine print and ask a lot of questions. Are your premiums going to be affected because of a dangerous hobby you like pursuing? Is there accidental cover on your policy? Asking questions and clearing doubts as a responsible policy owner will reflect your attitude towards life.

This long list of do’s and don'ts is not meant to be preachy. Treat it as a welcome honest change to business as usual. Good luck on your search for the right life insurance; we hope you find exactly what you're looking for!

Resolve to Protect your Children this Year with Insurance

Fri, 25 Jan 2013 15:25:22 GMT

The start of a new year is a great time for many of us. It may have to do with the fact that we all like fresh starts. Or that we like taking stock of time gone by, reassessing our plans and charting forward a way ahead by planning for contingencies and working renewed toward successes. Or maybe we just need another good reason to stay up all night and have a good time. The New Year gives us all of that and more. This might sound clichéd but in the past couple years, I've actually found myself looking forward to the new year because it helps me with taking stock of where I've come so far and plan for the future. I've actually begun looking forward to New Year’s resolutions! I have begun warming up to the idea that planning things and getting prepared for them beforehand is not as boring as some people make it out to be. Every time I've tried it, it has been fun, scary, ambitiously egging on and curiously inspiring, but never boring. If you're true to yourself, you'll find that there are a lot of plans you've had for yourself that you've probably kept suppressed over the years. Reminiscing on the past can bring back memories long forgotten, good times you can attempt to recreate in the New Year, successes that you can hope to mimic again sometime soon. It can also be a frightening thing because of the failures it will throw light on. But taking the escape route and not allowing yourself catharsis on your failures can be disastrous. It means you'll never learn from your mistakes, and never know what to do to preempt them from happening again. Sometimes, thinking about the future is also a daunting process. Some of us have dreams and ambitions beyond our means, and we are afraid to let our dreams play out, fearing that we may be stuck in places we don't know how to get out of.

Writing for life insurance makes me wonder what interesting inclusion in a resolution list could I possibly make. Most people know by now that life insurance is a very necessary protection to have, at least for the primary breadwinner in the family. If you don't already know that, please stop whatever you're doing and consider taking up a life insurance policy to protect your breadwinner today. Too many families struggle with their loved ones going and don't know how to pick up the pieces and move on, especially financially, when something goes wrong. If you are married, you should consider also covering your spouse under some form of life insurance coverage.

But here's the clincher. We hope that you have room in your New Year’s resolution list for one more addition: Buy life insurance for your children. Many people think of it as a complete waste of time. This is not to increase the life insurance company's profit and ensure that your agent gets a rollicking start to his business this year. Camps are quite divided when it comes to purchasing life insurance for children. There are lots of people who believe that purchasing life insurance for a child is a huge waste of money. It makes sense on some levels. If the child is not earning, life insurance monies will offer no income replacement. It is overall just adding to expenses. But consider this:

· The average funeral bill these days is anywhere between $7,000 and $10,000. Even for a child. Do you have enough in savings to pay for a child's sudden funeral should something untoward happen? While we don't wish for it, planning for some sort of contingency still helps than bucking under the pressure of arranging so much money at the last minute.

· Medical bills left outstanding from sicknesses, emergency room charges and care costs. No one wants to think of them, but they are also additions to financial burdens that you can feel as a family, left behind after a child's funeral.

· Children can develop conditions later on in their adolescent years that will lead to them being denied on life insurance applications in the future. Covering your child under some protection now can ensure that they're protected in the future with most life insurance companies allowing extensions and conversions of child policies to permanent life insurance.

Make it your new year’s resolution to protect your children for their futures, their health and their ability to remain insured despite the onset of sickness or other life-threatening conditions. You can buy affordable term life insurance policies for primary breadwinners and add spouse and child riders for a nominal price. With such affordable solutions available, don't put this on the back burner for yet another year. Do the right thing; get your child protected today.

Why You Should Consider Long Term Care Insurance in 2013

Thu, 17 Jan 2013 19:55:30 GMT

This year, like every other year, is going to be a time of great change all around us. The Congress may have bestowed an extra life to coffers in state and federal governments around the country with an extension of deadlines so as to not reach a fiscal cliffs, but the truth of the matter remains. Our country is facing a real time threat to funds, resources and budgets and we can no more rest on guarantees that they will be around to protect us by the time we retire from our service years. We ought to be making wise choices that will stand us in good stead in the coming years, and take responsibility for our own futures. Especially if you already have the means to. So what's a good way to start doing that? By considering long term care insurance, it's advantages and what it would cost you to take care of your own health in the future on your terms.

So what is long terms care? Long term care is a large number of services in healthcare and related fields given to people with chronic illnesses or disabilities. It also includes care-giving activities like taking care of daily routines (bathing, eating, changing clothes, using the bathroom) if a person needs it. Long term care is given when the illness or condition persists over several years. According to research estimates, primary (and unofficial) caregivers in long term care usually tend to be family members and loved ones, who are not paid for what they do. Caregiving as a family member is oftentimes expected, especially in the case of families that are strapped for cash and do not have adequate insurance protection for long term care needs. But research has also proven that this kind of caregiving can be taxing on all, especially the caregivers and their immediate other dependants as well. If you have the opportunity to put affordable insurance in place early on while you can, you owe it to yourself and your kids to take care of things sooner rather than later.

Some people like thinking that they won't be around for too long, and therefore won't need long term care. That is not the case for most people; research has again proven that life expectancy has increased significantly and people are living longer these days. With this information, it won't be safe anymore to assume that you won't need some form of long term care. And long term care is not just needed when you're old and n your retirement years. Families with a history of chronic illnesses or conditions that have early onsets should watch out for signs and symptoms and buy umbrella long term coverage for their entire families to protect young children as well.

When people argue against the case for long term care, they often say that it's a waste of time because long term care never ends up being used. According to this US News article (http://www.usatoday.com/story/money/personalfinance/2012/11/12/long-term-care-insurance/1677385/), long term care insurance providers have changed their offering to include the customer's best interests a little more. Read an excerpt from the article that describes the new products below:

· Shared care products that allow a married couple to take out separate plans that are connected. If the first person passes away without using it, the benefit transfers to the spouse," Newman says.

· Hybrid products that are a life insurance policy that has a rider for long-term care insurance. Only a handful of companies offer it now, and it is being perfected, Udell says. But the hybrid provides a way to set up a pot of assets that can be used for long-term care. And if it is never needed for that, the family will receive a life insurance benefit.

· Long-term care partnership programs, which are offered in about 40 states. The advantage: Americans who have a state-approved, private long-term care insurance policy will be able to hold onto more of their assets if they later need to apply for Medicaid.

So if you're looking to make your own way out, create your own safety net and rely on your own means in your retirement years, seriously consider a long term care insurance policy. Look also at how much you can afford in monthly payments. You can shop for long term care insurance on an aggregator website to help save some money. And don't forget that your whole life insurance policy can also allow the addition of an LTC insurance rider. Ask your carrier about adding an LTC insurance rider on your whole life policy, which will allow you to use the cash value to pay for LTC costs instead of using it for death benefit.

5 Ways to Invest Wisely in 2013

Tue, 15 Jan 2013 15:18:18 GMT

The rules of the investing game have been quickly changing since the advent of online tools that allows greater opportunity and access for the regular investor. Here are 5 ways to invest wisely in 2013.

1. Make sure you have a stock portfolio. Stocks have consistently outperformed any other investment and have paid the highest returns. However, when you're investing in stocks, make sure that you are in it for the long haul. Investing in short runs can actually prove disastrous. Choose a company that has had consistent earnings over a long term period, because earning determine real returns over time. When investing in stocks, brace yourself for a rocky ride. In short term periods, stock falls are triggered by absolutely anything, which in turns triggers mass panic withdrawals. If you've decided that you want a piece of stock pie, make sure to get sound advice from a trustworthy reliable agent who can guide you on stock investments and ride out the storms, as plenty as they come.

2. Look for ways in which you can diversify your investments. There will be plenty of opportunity presented to you in the form of online trading sites that track real time share prices, portfolios, news and other free services. There will be greater reward in finicky markets for hatching your nest eggs in multiple nests because of how unpredictable return stories have been. Even with mutual funds, make sure your manager diversifies your portfolio. Remember that even when someone else is taking care of your finances because they have the knowledge and ability to, it's always good to ask many questions and educate yourself on what is happening with your money. It is, after all, your money.

3. Plan for retirement well in advance. Use tools easily available to you, like a 401(k). According to CNNMoney, "...A 401(k) represents a way to reduce your taxable income since contributions come out of your pay before taxes are withheld; many plans include a matching contribution from your employer; and the money you save benefits from tax-deferred growth, which lets your money compound more quickly than it would if it were taxed yearly." With these 3 benefits, if you have the opportunity to invest in a 401(k), don't wait... Do it! Usually, retirement funds are planned in such a way that taking money out of retirement accounts prematurely can be severely penalized in fees and cuts. Remember that when you commit to a retirement savings, you're going to have to do it for a long time to come, so don't expect immediate returns, flexibility in withdrawals and accessible monies. It's a good way to keep disciplined about savings towards your future.

4. Take a second look at ESOs, or Employee Stock Options. They are fast becoming the norm for rising companies, and are being offered to a larger employee group as used to be traditionally prevalent. Some ESOs have qualified tax gains, and can be confusing to understand. Speak to the appropriate department help for more insight on how you can exercise your stock options, and what the best options for you are. Discuss with colleagues and make a comparison chart outlining advantages and disadvantages. You can profit if you sell your stock options for more than the price you bought it at the time of exercise.

5. Include insurance in your investment plans. This means auto, home, business and life insurance. Insurance is not typically seen as an investment tool, but it is using your money to safeguard against future threats and liabilities. So while to some people it may seem like a drain in resources, it is a savings bank of its own guarding against risk. Some insurance instruments, like permanent life insurance, can actually function as a savings/investment vehicle. But don't buy permanent life unless you are certain you need permanent death benefit. Good old term life insurance with temporary death benefit and its affordable premiums should provide for your life insurance needs in spades for most regular customers.

We wish you all a very happy new year, and hope that this year rings in bells of prosperity and abundance for you and your loved ones!

Safety Tips for New Year's Eve

Mon, 24 Dec 2012 14:24:52 GMT

This New Year’s, make sure that you’re having a good time and still keeping safe. Here are some handy tips on how you can make sure that happens:

1. Make sure someone signs up to be the designated driver (DD) even before the celebrations begin. Don’t assume that someone is going to be the DD, because chances are, they’re going to be assuming the same thing about you!

2. If you can’t find a DD, stay where you are until you are sober enough to drive back, or keep a cab company’s number on speed dial. If cab companies are booked through the night, call a friend or relative you know you can count on (keep their number on speed dial as well) so they can drive you home in a worst case scenario

3. Moderate the amount of alcohol you will drink. While it may be alright to let go in the first day of the new year, don’t drink yourself stupid, i.e. don’t let the drink get you into dangerous or inappropriate situations that you are likely to regret later.

4. Don’t leave your drink unattended, especially if you are in a large party where there are many people in attendance. You will invite additional trouble in the form of substances slipped into it.

5. If you are hosting a party where young people who are below the drinking age will be in attendance (as many family parties will be), color code cups to make sure no mixing is happening. Keep an eye out for children fooling around and daring to get alcohol into their cups; having so many adults drinking around them will invite curiosity and mistakes.

6. Stop alcohol service a few hours before you plan your party to end to make sure no one’s leaving the house drunk. Remember to have non-alcohol options planned out for those guests who do not drink.

7. Make a note to yourself to be less boisterous if you can. New Year’s is a time for many to let their hair down, and people hate being the DD or party pooper (I know I do!). But give a friend you know who always volunteers to be DD a chance by stepping into his shoes so he can have a good time. Start the new year with a good deed!

8. If you have a pet (or can see a pet frightened and agitated) around at a house party, pay special attention to it. The same thing applies to little children (who must always be supervised and chaperoned if necessary). We can assume safely that they may not gel well with noise (like drunken brawls or fireworks) and crowds (inability to sit or sleep in silence) and will react to the inconveniences they will face. Designate a part of the house as a safe, silent zone where they can rest when tired. Many parents may forget that children are not open to staying up late to watch the clock strike twelve.

9. Always have company with you. Do not wander into strange areas alone and make sure to charge your phone well before stepping out for the night.

10. While fireworks are a big no-no, everyone knows that they do come out and make a sneaky appearance on New Year’s. Don’t invite trouble or suspicion from the law if you can help it. If fireworks are allowed in your state, practice safety precautions while using them.

This New Year’s, consider starting your financial plans and goals afresh with a life insurance policy. Term life insurance rates are still low and affordable, so make it a resolution to prepare for contingencies with a life insurance plan in place. If you need access to some quick quotes online, try an aggregator website like AccuQuote. Experienced agents will help you with queries that you may have, and you can take your time to make up your mind and compare policies and rates. And if we all survive the end of the Mayan calendar, have a very happy New Year; we hope it’s an exciting, fun and productive one for you all!

Annuities - Are They Beneficial for You?

Fri, 14 Dec 2012 15:25:29 GMT

Annuities are investment instruments becoming increasingly popular because of their low risk natures and guarantees for interest rates. An annuity has a fairly simple structure, but can become complicated to understand depending on the buyer. Defined simply, an annuity is bought from a life insurance company or other financial institution for a lump sum amount, which the company/institution will return to the buyer in the future in a series of payments. This allows the seller to make certain interest on the lump sum and the buyer to have a fail-safe option for future years (especially in periods like retirement).

They can be a greatly misunderstood product, especially because the term “annuity” itself has several different connotations in the financial market. Also, many annuities on the market today, (especially the more complex variants like variable and equity index) have complicated formulas that calculate payouts, additional fees that get lobbed on which are hard for the simple investor to understand, and are pushed by salesmen who make a killing on their commissions.

So, can annuities be beneficial to you? Yes they can. Provided you understand exactly how they work, ask all the right questions and buy from a trusted (and less pushy) seller. What are some benefits of purchasing annuities?

· They are low-risk instruments, which mean they are not subject to stock market fluctuations. Though the rate of growth is slower than other riskier investments, they can easily outperform the growth rate of a bank Certificate of Deposit.

· They can guarantee as much as 3-4% interest for as long as 5 years. In these harsh times, when savings accounts are barely yielding 0.5% (or even lesser), finding this attractive a deal can be hard. In fact in most cases, annuities are far better options than CDs, money market accounts or savings accounts.

· Annuities earn you interest on a tax-deferred basis. So don’t pay taxes on any interest you earn, until you are ready to withdraw. This is especially true in the case of the deferred annuity, which (fyi) can be converted into an immediate or lifetime income annuity. Fixed deferred annuities can offer very competitive rates of interest as compared with other safe-money instruments, says Byron Udell, CEO of AccuQuote.

· If you choose a lifetime income annuity, you can earn a monthly income for the rest of your live that you won’t outlive.

· Udell says that buying an annuity might be a good idea for couples approaching retirement years. If they already have accumulated savings, they can put the funds in a deferred annuity and let it grow until they are ready to retire, at which time they can “annuitize”, or combine the original sum with the accumulated interest and earn a lifetime income for one or both partners.

You should be cautious when going annuity shopping. Here are some drawbacks of annuities:

· Read all the fine print. If market value adjustments are going to result in a huge decrease in interest. Do your homework and check the credit ratings of the company you are buying from, and the track record/reputation of the agent selling you the annuity.

· Annuities are not backed by the FDIC. So when you’re buying one, make sure to choose an issuer that has great credit ratings and is financially stable, especially in uncertain times as these.

· When you get into a contract to purchase an annuity, you’re looking at a long term relationship. The typical life of an annuity averages about 7 years. If you’re looking for quick returns or may need the money sooner than 5 years, annuities are not the answer.

· If you are young and want to grow your money at lower risks but can’t predict if you’ll need the money for unforeseen expenses (a note of caution to young entrepreneurs or families with children), think twice before buying an annuity. Are there hefty surrender charges you’ll be looking at to pull the money out prematurely?

For a free annuity quote, check http://www.annuitysite.com/. And for more information on life insurance and related products, look up AccuQuote.com. Products like annuities and whole life insurance may just be the fluctuation-safe, risk-free answers you've been looking for!

Get Peace of Mind with Long Term Care Insurance

Wed, 12 Dec 2012 17:24:54 GMT

Long-term care (commonly abbreviated to LTC) is a large number of services in healthcare and related fields given to people with a chronic illness or disability to help with their needs, whether medical or just general care-giving in nature. It differs from short term care because it is usually given to people who are suffering from a chronic sickness or disabling condition for several years. If you've ever cared for (or seen a family member requiring LTC being cared for) especially during old age, you'll realize how important long term care insurance can be to a family's financial portfolio, especially when retirement years come closer. Because life expectancy is increasing as the medical and health advancements are being made, people are living longer, well past ages where supervision and some care are needed at the very least. From basic care like bathing and dressing to more complicated procedures like administering medications and rehabilitation exercises, long term care providers can cover all these functions.

In 2008, Medicaid and Medicare accounted for approximately 71% of national long-term care spending in the United States. Out-of-pocket spending (when spouses and children contribute so much through informal care given in their own homes when a nursing home/ assisted living facility can prove too expensive) accounted for 18% of national long-term care spending, private long-term care insurance accounted for 7%, and other organizations and agencies accounted for the remaining expenses. Moreover, 67% of all nursing home residents used Medicaid as their primary source of payment. For middle- to high-income families, Medicaid and Medicare may not be an appropriate fall back option. Investing in a robust long term care insurance policy can make all the difference between selling your home and assets to pay for long term care, and keeping it for your future generations in the family.

A good age to start thinking about long term care insurance is at the age of 55, just when retirement is around the corner and you have a good idea of how much your cumulated savings and investments amount to. Buying earlier than the age of 55 might be a waste of money because you may end up never using it and unnecessarily paying for extra years. When you’re buying long term care insurance, make sure to look at what is covered under the policy. Look at the MDB (Maximum Daily Benefit) allowed by each policy and guesstimate for how long someone your age with your health profile may need the coverage in a worst case scenario. If your family’s health history is fairly clean with no major complications, you can choose an average to low MDB for lower premium payments. If you have a certain assisted living facility in mind, check what kind of insurance they prefer taking.

There are some informal rules of thumb on the amount of LTC insurance one should buy. At the end of the day, it all comes down to what you need versus what you can afford. Some people say that if you have assets of less than $250K, you can't afford long term insurance payments and should not even consider buying it. Relying on Medicare and Medicaid will make more sense for someone like you. On the other hand, if you have assets in excess of $2M, you can afford to self insure. Everyone who will require LTC insurance falls in between these two extremes. Don’t forget that any incoming pension or social security amounting to over $2000 per month also disqualifies you for Medicaid.

Look also at how much you can afford in monthly payments. You can comparison shop for long term care insurance on an aggregator website to help save some money here, but LTC insurance costs are still much higher than most other insurances you'd purchase in your lifetime.

A handy option we like to remind some of our older life insurance clients is that sometimes, their whole life insurance policies will allow the addition of an LTC insurance rider. Ask your carrier about adding an LTC insurance rider on your whole life policy, which will allow you to tap into any accumulating cash value to pay for LTC costs instead of a traditional death benefit. If you are still young, you may be able to find good rates on life insurance quotes on a comparison life insurance aggregator website as well.

Making Sure Beneficiaries Get Life Insurance Money

Thu, 29 Nov 2012 14:46:29 GMT

If you've ever been witness to or have been involved in bitter battles over life insurance money, you'll know how important it is to make sure that the right beneficiaries get life insurance monies. It's not just bitter battles that make life insurance payouts ugly; sometimes, beneficiaries live for years as paupers, or struggle through times of financial hardships because they were not aware of life insurance help.

If you own a life insurance policy on yourself, this is one thing you just cannot miss. You’ve bought the policy to safeguard your loved ones’ interests when you’re gone, don’t slack on the most important part now—making sure that they get it when they need it! Some people think having too little in life insurance coverage is a crime, but it’s far worse when you paid all your life into a policy and didn’t do your due diligence in making sure they received it.

So how do you make sure life insurance money gets to the right beneficiary?

First, choose your beneficiaries wisely. If for some reason, you can’t make up your mind about how much to leave behind or you’re not sure if someone you’re designating will use the money well, do your research and check out all available options. Maybe there’s a way to keep the money in a trust fund until a young child grows older or goes to college, maybe you want to list contingency beneficiaries in case something happens to your primary ones. Talk to your agent if you have trouble making a decision, and think about how things might change for your beneficiaries ten years later. Have clear reasons for choosing beneficiaries; don’t choose someone who makes you sit on the fence when it comes to financial decisions.

Second, get into the habit of reviewing your policy yearly. You’ll be able to update your beneficiary list if major changes in your life have taken place, like the addition of children to a family or a divorce.

Third, keep this information confidential, but don’t hide it from your beneficiaries entirely. This is because life insurance companies expect beneficiaries to file for payouts on their own. Don’t expect the life insurance company to call your family and let them know they’re going to be expecting a windfall. Nip disputes in the bud by making your intentions clearly known. If you do not want your family members to know about the policy until you’re gone, let your beneficiaries know about lawyer and agent details if they need to, or keep a file where all of this is on record so they have access to it when needed.

Express your sentiments to your lawyer. Indicate in a will, but remember that updating your will doesn't count as updating your life insurance policy. You must update your beneficiary list as the two documents are independent of each other, and the life insurance policy takes precedence when it comes to official documentation that the life insurance provider will approve of.

A great way to ensure that your loved ones receive what's best for them without having them directly handle the money is to set up a trust. This works really well for those who have large insurance policies running into a million or higher in payouts, and don't want beneficiaries (especially if they are young or minors) to have access to all that money. In fact, minors are not given life insurance payouts; usually, parents designate a trustworthy elder who will be responsible for their safekeeping until they turn 18, after which the remainder of the money can be used by the child for college or other expenses.

Don’t leave loose ends untied and work unfinished when it comes to life insurance. A financial planning tool you can use and rely on in times of trouble, your life insurance policy can work for you if you remember to review yearly. This simple act can save you and your family plenty of grief and angst later on. And while you’re reviewing yearly, check out some inexpensive life insurance quotes online and compare your premiums. You could save by switching to another company if you look up quotes early and compare.

Choosing the Right Life Insurance Rider

Mon, 26 Nov 2012 15:11:23 GMT

“Life insurance is one of the most important purchases you’ll make to protect your family’s financial future,” says Byron Udell, founder and CEO of AccuQuote. “So naturally, there are some things you need to consider to make sure your family has enough coverage, like personalizing your coverage with life insurance riders.”

When policies are sold at AccuQuote, they usually have the option of having these three common insurance riders attached to them. These riders are a great supplement to coverage and can increase death benefit as well:

1. Accidental Death Benefit (ADB) – Many people buy an accidental death benefit policy on its own, but attaching it as a rider to a term life insurance policy can be more effective. It provides additional coverage, up to double the amount of the original death benefit. This rider is usually available for a few extra dollars per month of coverage, which some people don't mind paying for. Many people have found that the rider came in handy when covering large hospital bills,

2. Waiver of Premium – The great part about this rider is that it comes free, if you opt for it at the time of application. If the insured becomes disabled for more than six months (which qualifies as a long term disability), the life insurance company will waive the premium payment until they are fit enough to work again. This is a great way to keep the policy in force despite the disability, and if you have the option to add this rider on your life insurance policy for free, don't think twice! Sign up right away.

3. Accelerated Death Benefit – This rider has come in handy at crucial moments, when a critical illness threatens to destroy not just emotionally, but also financially, by eating up into savings and investments due to the large medical bills that are usually incurred on the onset of such illnesses. If you are diagnosed with a terminal illness while the life insurance policy is still in force, this rider gives you the option to collect all or part of the death benefit while you’re still alive.

There are several other riders that come in handy while purchasing life insurance policies. You can cover your spouse and child with riders as well, which serves as a handy accompaniment solution for the whole family. Many people opt for child and spouse riders through group insurance at work. While there's nothing wrong with that (and by all means, you should get some if it's offered as a benefit paid for by the company), remember that individually owned policies work in your favor because you get to keep them for the entire term even if you switch jobs (or get fired). Some companies allow group coverage to be converted to individually owned policies, but the process is arduous and expensive.

Term life insurance policies may also allow something called the "Return of Premium" or ROP rider, which allows you to get back premiums paid into the policy at the end of the term if you are still living. This is a great way to get back what can sometimes amount to several thousands of dollars paid in premiums if you didn't end up needing the death benefit. It may hike up your premiums up to 30% more than a plain vanilla term policy, but can be worth it if you are looking for a way to be covered under a large but affordable term life policy but don't want your premiums to go down the drain.

“Choosing the right life insurance rider is important if you want to make sure your family is covered in any situation,” says Udell. “Licensed life insurance agents, like the ones at AccuQuote, can educate you on all of the life insurance riders available and help you add the right one on to your existing coverage.” Choosing the right life insurance rider to customize, increase or better define your coverage is easy with help and advice from AccuQuote.

Giving Thanks for Life Insurance

Wed, 21 Nov 2012 18:18:30 GMT

Thanksgiving is one of my favorite holidays because it reminds me to be thankful even when I don't want to be. November typically ends up being a subdued month, when fall slowly gives way to a cold, bitter winter (especially if you live up here in the northeast). I start to panic thinking of all the things I haven't been able to accomplish through the year, and I give myself the ridiculous deadline of New Year's Eve to look back upon the current year so that I can feel good. Thanksgiving is perfectly poised right before any regret sets in, and by habit (and introspection), I am brought to a place where I force myself to sit down and be thankful for everything I have, and everything I need, and savor the moment for what it is.

We all know that Thanksgiving should not be made a ritualistic retreat marked with turkey, tofurkey or your choice of dinner table spreads to share. We all know that expressing thanks at Thanksgiving is not enough; making a habit of gratitude that translates itself into an attitude that you keep on at all times would be wonderful! But we all know that it's not easy. And so we allow ourselves to be reminded by a special day in a calendar that Thanksgiving is good for the heart, mind and soul.

Some of us will be thankful for our immediate needs that are provided for, like food, shelter, clothing, a steady source of income, and a healthy body. No matter where we may live in the developed world, we are now well aware of how some of these basic needs can be considered a privilege if you live in an impoverished nation.

Some of us will be thankful for abilities and rights given to us in the places in which we live, rights and abilities that are so easily and harshly denied to several millions around the world. I'm referring to freedom of expression and speech, the right to information, a protection from the nation-state in which you live. In the last few years, with the proliferation of mass media, we have been exposed to several instances of such denials, costing people their families and their lives.

Sometimes I like to think of advantages that set me apart and learn to be thankful for them. Knowledge, ability, personality factors and other strengths that make me an asset to the people I know. I also like to count on the novelties of possessions and experiences I have had and acknowledge how special they are to me. I count myself lucky to be able to access support networks, both emotional as well as knowledge-based, to help me out when I land myself in trouble. I also think myself lucky to live in times of great progress and change, and I try to engage myself in this change for my own good or the good of others. Of course, I also count times of hardships and failures as things to be thankful for. Without them as learning experiences, I would have had a lackluster life, one where things came easy and I never knew the real value of development that was achieved.

I’m not forgetting the extraordinary things to be thankful for, like my loved ones who I have come to rely on for many things. Their assuring and faithful presence in my life is an ever present source of encouragement and faith, and I hope all of you have the same too.

And because I work with life insurance, I'm going to be thankful for it too. If it wasn't for the idea that I could purchase a life insurance policy at affordable (sometimes, even throwaway) rates, I would be afraid of not being able to be around to provide for them if something happened to me. I would not know how to prepare for an uncertain future without the help of this valuable financial planning tool and I would certainly never know if my family would make it without me. And uncertainty and fear are the opposite of what one ought to feel every time Thanksgiving comes around.

This Thanksgiving, look up some life insurance quotes (if you don’t already have any in place) and set yourself up with some insurance. Give thanks for this opportunity to provide for your family even when you’re not around. And make the most of this Thursday’s reminder to be grateful, it only comes around once a year!

Hurricanes Underscore the Importance of Life Insurance

Tue, 13 Nov 2012 17:32:15 GMT

As climate patterns change around the world, extreme weather patterns are becoming the norm. The devastation that Hurricane Sandy left in its wake is still affecting several thousand families on the east coast, with the slowly setting winter and the snowfall it brings posing its own share of compounded problems. According to a recent study done by insurance firm Munich Re, the number of weather-related disasters in North America has quintupled over the last three decades.

While the states of New York, New Jersey and Philadelphia struggle with rehabilitation and damage control measures, the rest of the country is getting serious about what unexpected natural calamities can do to their communities and families. The clean-up effort is going to cost state and country exchequers heavily, with Governor Cuomo of New York pitching estimates of hurricane damage at $33 billion.

Wildly changing weather patterns and the adverse effects that they will have on the economy cannot be ignored any longer. Rescue and rebuilding efforts will take time, extensive volunteer efforts and precious tax-payer money. Several governing bodies and authorities responsible for disaster preparation (like the Long Island Power Authority and NYC Office of Emergency Management) have been criticized for ignoring forewarning and not building an appropriate response to flooding and hurricane-like events.

It's easy to look at large governing bodies and blame them for not managing and preparing for disaster on time. But what about us? Are we being responsible for our own actions and taking necessary and vital steps to ensure the safety and longevity of our homes, businesses and loved ones?

I'm talking about life insurance, a very fundamental "disaster management" instrument that can be put in place for personal emergencies. You may have heard others stress the importance of life insurance before but never taken it seriously, because you've never felt the need for it. A LIMRA study (LIMRA is the life insurance industry's research standard) indicates that 4 in every 10 persons in the United States has no life insurance coverage at all. Are you a part of more than 40% of this country when it comes to making your life insurance decisions? If you answer yes to one or more of these questions, you shouldn't be sitting on the fence when it comes to life insurance!

1. Do you have loved ones who rely on you financially? This can include spouses, children (including step, adopted and foster children), partners, aging parents and/or relatives or friends you are providing for.

2. Do you want to leave behind an inheritance, either for your children and grandchildren or to an organization or outfit whose causes you believe in? You may also want to leave behind money to a mentee or business associate whose talent and spirit you believe in, and who you believe deserves financial assistance.

3. Are you looking for a way to lighten the burden of funeral expenses that your family will have to bear? You may not be able to benefit from low prices that the young and healthy qualify for, but taking care of the expensive bill that a funeral or cremation will bring is important to you.

4. Do you have debts incurred through business purchases that will go bad (and affect someone else, such as a partner or co-signor) if something happened to you? Even if you don't have family or loved ones relying on your income, your need for life insurance to cover business losses is still very much present!

Life insurance is quite affordable if you buy smart, i.e. buy when you're young and healthy. For a young male in his thirties, the monthly premium can cost less than $40 a month. For term life insurance cover of a couple hundred thousand dollars, you can leave behind income replacement for a few years, money for kids' college or enough to cover the mortgage so your family has a roof over their heads.

Don't take chances with your future. Be prepared for the worst, not out of panic and fear but out of a sense of responsibility to your home and business. Talk to your insurance agent today, or look to an online insurance broker website like AccuQuote.com for free life insurance quotes to help you narrow down on a policy that suits your needs.