Useful Insurance Information

The Insurance Information Institute and the National Association of Insurance Commissioners, are two good general sources for discovering information about insurance. Other good sources are the American Council of Life Insurers, and your state insurance department.

Here are some good things to keep in mind when you are contemplating the purchase of life insurance.

June 4, 2008

At the same time that America is getting prepared to deal with upcoming tornadoes, floods, hurricanes, and wildfires that some to go along with the spring and summer, it is reported that as many as half of U.S. consumers are insufficiently prepared, with regard to having ample insurance coverage, so as to deal with the potential losses. This is the result of research by the National Association of Insurance Commissioners (NAIC).

A life settlement is only a good deal for those who have no beneficiaries or estate needs of any kind. If you take into account both family and charitable aspirations, this is a very small market. If an old man has heirs that he wants to benefit, or any other estate needs, then life settlements are not a suitable strategy. Instead, the old man should whatever he can to keep the policy going, just like the investors would do if they got it.

A quick glance at the pocket guide to Actuarial Tables & Life Expectancies shows that an old man is supposed to die, on average, within five years. So, you go to the old man and say, "Hey, I'm willing to buy your life insurance policy from you for $500,000 paid immediately."

From the old policy-holder’s viewpoint, he is getting a great deal. Since he cannot afford to keep making payments to keep his policy going, in his mind the value of the policy has dropped to zero. And here someone comes along and offers him $500,000 hard cash for it!

In this situation there is a loser, and a big loser too. It is the old man’s kids. Had he kept the policy alive, his kids would have been big winners at his death - just like the buyers of the policy will be, and even more so since unlike the investors the kids will not have to pay income tax when the policy pays off.

There is always a person who will figure out how to make money out of anything, including someone else’s misfortune or even death. Death, of course, has a close connection to life insurance and life insurance is problematic in it’s own way - you have to die before you can collect it.

Here is an email that I received this morning. The main thing that’s wrong with it is that my junk-mail filter didn’t weed it out and consign it to the trash-box as it arrived, but there is such smart software about these days that everything is possible.

A recent study that was carried out by the National Highway Traffic Safety Association (NHTSA), regarding alcohol and driving reports that alcohol-related motor vehicle crashes will kill someone every 31 minutes. Every two minutes someone while experience a non-fatal injury. The use of drugs such as marijuana and cocaine, are a part of around 18% of motor vehicle driver deaths. How does this affect you? How can you avoid them?

Misconceived Ideas Regarding Alcohol

1. Purchase your homeowners and auto coverage from the same insurer

1. Be sure to request a higher deductible