Walls and Castles

HAPPY ST. PATRICK’S DAY

2010-03-17T09:23:00.001-05:00

“There are only two kinds of people in the world,” an Irish saying goes. “The Irish and those who wish they were.”

But for today, that saying is a pot o’ blarney. This St. Patrick’s Day, we’ll all be Irish.

St. Patrick's Day was originally a Roman Catholic feast day for Ireland’s patron saint, celebrated only in Ireland since before the 1600s, to mourn the loss of the patron saint who died March 17, 451 AD. However, it evolved into a secular holiday in the 1700s, when Irish immigrants in the US held some of the first St. Patrick’s Day parades. More than a show of patriotism, the parades were an opportunity for Irish immigrants to make a political statement about their discontent with their low social status in America.

Today, St. Patrick’s Day is a transcontinental celebration of Irish culture, abounding with festive food and traditions. Have you ever wondered why we eat corned beef, wear green, and pinch our friends on St. Patrick’s Day? Read on to discover how three St. Patrick’s Day traditions came to be.

• Why green?

According to some accounts, blue was the first color associated with St. Patrick’s Day, but that started to change in the 17th century. Green is one of the colors in Ireland’s tri-color flag, and it has been used in the flags of several Irish revolutionary groups throughout history. Ireland is the “Emerald Isle,” so named for its lush green landscape. Green is also the color of spring, the shamrock, and the many eateries and breweries serving green beer. This year Chipotle is offering FREE Guac to anyone wearing green on St. Patrick's Day.

• Corned beef or bacon?

This St. Patrick’s Day, millions of people will sit down to an authentic Irish meal of corned beef and cabbage. Or so they think. In fact, only half of it is really Irish. Though cabbage has historically been a staple of the Irish diet (along with potatoes), it was traditionally eaten with Irish bacon, not corned beef. Irish immigrants in America could not afford the bacon, so they substituted it with corned beef, a cheaper alternative they picked up from Jewish immigrants.

• Pinch me, I’m Irish

Forgot to wear green on St. Patty’s Day? Don’t be surprised if you get pinched. No surprise, it’s an entirely American tradition that probably started in the early 1700s. St. Patrick’s revelers thought wearing green made one invisible to leprechauns, fairy creatures who would pinch anyone they could see (anyone not wearing green). People began pinching those who didn’t wear green as a reminder that leprechauns would sneak up and pinch green-abstainers.

Don’t forget your green!

Stop Paying Too Much for Homeowner's Insurance

2010-03-15T13:39:00.005-05:00

Homeowner’s insurance premiums can be expensive. While there are a number of premium price factors you can’t change, such as the size of your house and where it’s located, there are some ways you can lower your premium costs. In fact, according to the Insurance Information Institute, there are a number of ways you can go about reducing your homeowner’s insurance premiums.

Here are some of the top ways to save a few bucks and still have the homeowner’s insurance coverage you need:

Look around. There are plenty of companies out there that offer homeowners insurance. You can check the yellow pages, or ask friends and family for referrals. The key here is to be selective: only consider homeowners insurance companies that come recommended, or that have a solid record of good customer service and follow-through. Check the financial stability of the companies you are considering with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com) and consult consumer magazines. When you've narrowed the field to three insurers, get price quotes. Many companies sell cheap insurance, but is it good insurance?

Look for a multiple policy discount. Your auto insurer will usually offer a discount if you also purchase your homeowners insurance with them. In fact, you can save as much as 30 percent with some companies just by having more than one insurance product with that company.
Make changes to your home. Some insurance companies will offer you a discount on your homeowner’s insurance premiums if your home is more damage resistant. That can include things like storm shutters or a reinforced roof. Homes in areas that are prone to earthquakes may benefit from a retrofitting to make them more resistant. An older home may be eligible for a discount by updating the plumbing or electrical systems. Finally, many homes can get a discount based on home security features like smoke detectors, dead-bolt locks or burglar alarms.
Keep a good credit rating. Not all insurance companies consider your credit rating, and in some states this is becoming illegal. Still, a bad credit score can affect your premiums in some places.
Increase your deductible. One way to lower your premium cost, whether it’s for homeowners insurance or auto insurance, is to raise your deductible. The deductible is the out-of-pocket amount you need to pay when something bad happens before your homeowners insurance kicks in.

Consumers understand the value of LIFE

2010-02-16T15:17:00.001-06:00

The recent economic turmoil has affected most of us and many of us in profound ways. Recent surveys reveal an interesting result of the challenging economic times: Americans are showing more interest in life insurance. According to a survey released by the Life and Health Insurance Foundation for Education (LIFE), 56 percent of Americans say the economic downturn has made it more important to have life insurance, compared to just 9 percent who believe the need has diminished.

It may seem counter-intuitive but if you’ve experienced a recent job loss or salary reduction and are seeking ways to reduce your living expenses, you may have a greater need for life insurance. Remember: One important purpose of life insurance is to provide security for your family by replacing your income if something happens to you. So in difficult economic times, when jobs are harder to find and dependents may need even greater financial assistance, life insurance becomes more critical.

Tough times call for action
Today, most of us understand that life insurance is an essential part of securing our family’s financial security and well-being. Tough economic times call for consumers to take action and reexamine the amount and type of life insurance coverage they have. As your professional insurance agent I can offer information that may help you determine the amount of life insurance coverage that fits your individual needs.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040

Unable to sell, homeowners become landlords

2010-02-16T15:05:00.002-06:00

Are you having trouble selling your home in today’s real estate market and thinking about becoming a landlord? If so, you’re not alone. A growing number of homeowners who need to relocate for a job or other reason are renting their homes instead of selling them in the current market.
Keep in mind that when you become a landlord, your property becomes a place of business and its insurance requirements change. For example, you would need a landlord insurance policy to cover the property and protect you if anyone is hurt on or in the property in place of your homeowners policy.

Many choices
Landlord policies typically cover the building in case it’s damaged or destroyed by:

Fire
Explosion
Lightning
Windstorm*
Hail damage*

There are important optional coverages you may want to consider such as:

Replacement cost coverage on the home
Liability coverage
Coverage for theft
Coverage for vandalism
Loss of rent
Landlord personal liability coverage

Depending on your individual situation, you may consider some options especially important. For example, do you rely on the rental income to pay your living expenses? A landlord policy may include coverage to help compensate for lost rent if the building is uninhabitable because of covered damage such as fire or explosion.

Call me today: I can give you additional information and answer any questions you may have so that you have the coverage you want when you rent your property. 405-285-5555

*Coverage may not be available in all areas.

A Love Letter about LIFE Insurance

2010-02-02T19:29:00.000-06:00

A Love letter, you say? What has life insurance got to do with love? Well, quite a lot, it turns out. The bottom line is that you buy life insurance because you love people and want to protect them financially.

I may be biased because I work in the industry, but take a look at this letter from a parent to a son, and see if you don’t agree:

Dear J.P.:

Today is November 21, 1989, and possibly you are wondering what the date has to do with writing you this letter.

While you are only four months old at the present time, I hope that this is a date you will remember, because today we purchased for you a life insurance policy. It is one like we have and it will be for your use for the rest of your life.

J.P., the difference between financial success and failure is often determined by whether or not a person can discipline themselves in a consistent and conservative financial strategy. Life insurance is ideal in this respect because it has withstood the test of time both for family security and savings … it’s the greatest savings plan in the world because IT WORKS!

It may be that you will have to call upon the cash value of this policy many times during your lifetime and, at such time, we hope you will remember that we started this for your benefit.

This policy carries with it two features of particular significance. The first is an automatic purchase option, which will allow us to increase your coverage as you attain certain ages. The other feature is one that has been very meaningful to me in my financial life and it is called disability waiver of premium. This means that in the event you should ever become disabled, your financial plan will be self-completing for you and your family.

This policy is a special gift of love and affection from both your mother and me … and we suspect that it will be remembered long after all other gifts are forgotten.

May God’s blessings be with you always.

Love always,

Dad and Mom

As Valentine’s Day approaches, why not consider the gift of life insurance? It may be a policy like this one that was purchased—for a child or grandchild, or it may be a policy you buy for yourself with your loved one as the beneficiary. We express our love in many ways, and offering financial security is most certainly an important one. Please be sure to click here for a life insurance calculator, or better yet, call or email us personally to discuss your needs and design a policy specifically for you!

Protect your Dreams...

2010-01-27T13:43:00.002-06:00

So what is it that you want? You want security in knowing that the dreams you are building and living will not be shattered by an unexpected event.

That's exactly what an accident is. Dictionary.com defines an accident as:

an undesirable or unfortunate happening that occurs unintentionally and usually results in harm, injury, damage, or loss; casualty; mishap

So how are you protecting your dreams? When was the last time your Insurance Specialist sat down with you to review the coverages for your home, your autos, or your recreational vehicles? Are you sure that your homeowners policy will take care of you when you need it to? How about your auto insurance policies? Are they really designed to protect your dreams, or are they only in place to help you get your license plates renewed?

What about life insurance? If you didn't come home tomorrow, could your family continue in the same lifestyle; live in the same house, maintain the same schools, and will your kids still be able to pursue a college education?

If you haven't reviewed your policies or visited with your Insurance Specialist in the past 12 months, you really owe it to yourself and your loved ones to do so. Make it a priority, not an inconvenience.

Tony Melendez, english subtitles.

2010-01-19T18:18:00.001-06:00

What courage, what a story! This is so very true... The only things in life you can't accomplish are the ones that you ACCEPT defeat over!
Very encouraging video!

Now that the BLIZZARD is over... at least we hope!

2010-01-05T18:41:00.000-06:00

It is always good advise to prepare your car for winter weather by taking it in for a pre-winter check-up. However no one could have predicted our weather this year! Winter can be a grueling time for your car, especially if you live in an area with heavy snow storms or severe winter weather. And all those times you’ve driven through slush can take a toll on your car’s health.

Road salt, commonly found on city streets to make driving safer, can erode your car’s paint and cause damage to the bottom of your car if it’s not cleaned off properly. Your car’s engine also works harder during the winter, so if it’s not in the best of shape, you may run into a few problems.

So during winter weather, don’t be stranded on the road – be aware of any changes in your car’s performance and be on the lookout for any signs of car trouble. And if even if it’s a minor problem that you’ve had before, it’s better to be safe and bring your car to your local mechanic, or not driven at all.

Here are four warning signs that you should not ignore:

1. Your Brakes are Squealing
During the winter, your brakes are crucial to prevent skidding on slippery roads and noisy brakes can be an indication of a dangerous problem like worn out brake pads. Malfunctioning brakes can also cause you to skid on patches of ice. This is a very serious problem if not taking care of properly.

2. Your windshield washer fluid is running low
Clean windows are even more important during the winter, when your visibility is already reduced by snow and fog. If you see your fluids are running low, fill them up immediately with a de-icer. These products will not only clear your windows of ice and frost, they also help prevent re-freezing. Its best to allow your car some time to warm up before trying to spray immediately. Also, be sure to visually inspect the spray nozzles for ice build-up. If they are frozen over, they will not function when you may need it most.

3. Fuel-level Warning Light
If you’ve ever driven with your gas-tank warning light illuminated, you probably know that you can still go a few more miles before you absolutely have to fill your tank again. But during the winter, procrastinating can be extremely dangerous. You never know if or when you might be on the road for longer than expected, and you don’t want to be stranded in a cold car without any gas. And if that isn’t enough to get you to fill up your tank sooner, consider the hefty bill you’ll have to pay to have your car towed to a gas station, not to mention all the time wasted. Besides, most vehicles perform better on a full tank rather than a half empty one.

4. Weak or Old Batteries
Your car’s battery goes through a lot, especially during the winter. Because batteries tend to deteriorate more quickly during the winter, you should never drive on a low battery or you may ended up with a car that won’t start. And if your battery is in good condition, you should look out for corrosion which can appear as white, crusty residue around your battery post. There are several methods for cleaning your battery terminals. Just be sure not to touch it with bare hands or get it onto your clothing.

SAVE MONEY FOR CHRISTMAS

2009-12-21T13:45:00.005-06:00

Farmers has released its latest innovation in Auto insurance for OKLAHOMA today.

For residents of the Oklahoma City metro, including Edmond, Guthrie, Jones, Bethany, Midwest City, Moore, and Norman- its time to cut your costs on your auto insurance rates. You can really see significant savings when combining multiple autos as well as homeowners or life policies.

I have saved clients as much as $2000/year on their home and auto insurance costs this month! Isn't is your turn?

Give me a call today to see what I can do for you!
405-285-5555
Farmers Insurance
Wilson Insurance Agency
Steve Wilson- here to serve you!

Farmers to lead Tournament of Roses Parade on Jan. 1

2009-12-11T09:25:00.004-06:00

On Jan.1, 2010, millions of spectators from around the world will celebrate the New Year with the 121st Rose Parade — 2010: A Cut Above the Rest. Leading the floral floats, high-stepping equestrians and marching bands will be Farmers’ entry: a tall parade major in red and white uniform, playing a bugle.

Our theme this year, “Salute to the Bands,” has special significance. Agents, district mangers and employees throughout the United States have been helping several high school bands make it to Parade Day. The volunteers’ efforts come at a time when schools in nearly every state are looking for ways to cut costs, and music programs are often among the first things to go.

Help decorate the float

If you’re in the Southern California area, you can join in the fun and help us apply the finishing touches to our “Major.”

Learn more about the Tournament of Roses.

Did you know? The term float is derived from the first floats — decorated barges towed along canals with ropes held by parade marchers on the shore (source: Wikipedia).

Parade major awaits the big day

Artist applies finishing touches to parade major

Social Media Revolution

2009-10-13T09:41:00.003-05:00

This is such a "true-ism". I'm not sure that's even a word, but after watching this video I will check out Wikipedia to be sure.

The basis of this video, without having seen this video, is why I began my blog in the first place.

I want the entire world to know who I am, what I am about, and why I do what I do.

Top Five Things to Know Before Buying Auto Insurance

2009-09-18T09:44:00.002-05:00

Whether you've owned your vehicle for a while, or are thinking about buying a new one, one of the biggest considerations you have is how to go about buying auto insurance. Maybe you're wondering whether you even need it. Before accepting the first offer that comes along, or just calling the insurance company you're most familiar with, there are some things to take into account to ensure you get the best deal, and the best coverage.

1. You need it – If you're still making payments on your car, you must have insurance. Your lienholder will require it to ensure they are able to recoup any losses if your vehicle is damaged, totaled, or stolen. Most states also require a minimum amount of coverage. Even if your car is paid off, and you happen to live in a state that doesn't require any coverage, you need insurance. The small amount of money you would save by not paying a monthly premium is insignificant compared to what you would have to pay if you were at fault in an accident, or worse, if you were injured. Insurance provides protection and peace of mind.

2. Your lienholder may have certain requirements – If you're buying a new car, or thinking about switching insurers on a vehicle you're still paying for, find out if your lienholder has any requirements about the kind of auto insurance you need. Some banks will require a low deductible. They want to make sure you'll be able to pay it if you need to. This is also important to know because a lower deductible will in turn give you a higher premium. Check with your lienholder before calling any insurance companies.

3. There are several factors that determine your rates – Other than the deductible you choose, insurance companies determine your rates based on several factors such as your age, whether you've been in any accidents before, and your credit score, just to name a few. Look over these factors and know where you stand before you start asking for quotes.

4. Requesting a quote can affect your credit score – It's best to do as much research online as you can before you start requesting quotes from insurance companies. The first thing any insurance company will do before calculating a quote is check your credit. A high number of inquiries on your credit report can have a negative effect on your credit score, and it doesn't matter that they're a result of your attempt to comply with your state's auto insurance requirements. Do your homework, narrow your choices down to three or four companies, then request quotes to keep the number of credit inquiries low.

5. You can create your own discounts – Most insurance companies will offer their policyholders discounted rates for having more than one policy with them. This can be accomplished by insuring more than one vehicle, or by adding another type of policy, like homeowners insurance. Many companies will also offer discounts on auto insurance if your vehicle has anti-lock brakes, airbags, or an anti-theft device installed. Keeping all your policies with one company, and making sure your vehicle has as many of these options as possible can help you save money.

Total Plagiarism, or maybe not...

2009-08-20T10:16:00.004-05:00

It is not plagiarism, due to the fact that I am giving FULL CREDIT to the author. However, I did receive this article and thought it was a great read. It is very applicable to many people in America, and I felt it should be shared.

Michael Jackson's Estate: When Grandparents Get Custody
By Elaine Floyd, CFP
Aug. 17, 2009
Circumstances may compel grandparents to take custody of minor children, thrusting them into a planning situation they hadn't foreseen. The situation has become more common in recent years, and you should be prepared to guide your clients through all of their financial options.

After the unexpected death of Michael Jackson on June 25, his mother, Katherine, immediately stepped in and began caring for his children: Prince Michael Jr., 12; Paris Michael Katherine, 11; and Prince Michael II ("Blanket"), 7. On Aug. 3, Katherine Jackson was awarded permanent custody of the three children.
You can bet that Michael Jackson's 79-year-old mother never expected to become the primary caretaker of three preteen children at this age. Fortunately, she has the financial resources to both assure that their material needs are met and to hire people to help care for them. Some grandparents aren't so lucky. The untimely death or disability of a child's parents is one of those rare occurrences that grandparents seldom plan for. But there are 2.4 million grandparents caring for 6 million children in the United States, so it is possible that you know, or may come to know, a family in this situation. Following is what you should know about grandparents caring for grandchildren. You may choose to incorporate into your financial planning checkups the possibility of becoming a "grandfamily," as this type of unit is known, or you may simply tuck the information away for yourself in case you ever encounter the situation.
Legal issues
Without a formal legal relationship, grandparents may have a difficult time making the necessary decisions for the children, such as enrolling them in school or obtaining medical care. The most important first step a family can take—long before the need arises—is for the parents to specify who they want to care for the children should they become unable to do so. This paves the way for grandparents, if they are named by the parents, to step in and care for the children with minimal hassle.
Michael Jackson's last will and testament, executed in 2002, specified that in the event of his death, he wanted his mother to raise the children. Indeed, the traditional way to name a testamentary guardian is via a will, which should be drawn up by an attorney, signed by the parents, and witnessed by two "non-interested" persons. A statement by the parents as to why they have chosen a particular guardian will facilitate the judicial process that must occur when custody is legally transferred. Michael Jackson named Diana Ross as contingent guardian should Katherine die or become unable to care for the children while they are still minors—not a bad idea, given Katherine's advanced age.

After the triggering event—the death or incapacity of the parents—a court of law will determine if the custody arrangement is in the best interests of the child. The parents' wishes are usually—but not always—honored. In some cases, the children's preferences are taken into consideration. Among court documents at Katherine Jackson's custody hearing were declarations signed by the two oldest children stating their wishes for who would raise them; the judge did not disclose what they said, but presumably they consented to their grandmother serving as their guardian. States differ in their preferences for calling non-parent caregivers "custodians" or "guardians." In many states, "custody" relates to family or juvenile courts, while "guardianship" relates to probate court. Clients may also want to look into their state's standby guardianship laws. Standby guardianship allows some overlap in caregiving responsibility in cases where the parent is sick or dying; the parent retains control over guardianship while the standby guardian waits in the background and steps in when needed. Not all states have enacted standby guardianship laws, so you should encourage all parents and grandparents to see an attorney about the best way to transfer custody in case of the parents' death or disability. One advantage of standby guardianship is that it may be easier to have custody transferred following the triggering event, but laws differ by state on this. Regardless of which advance planning tool is used, upon the death or incapacity of the parents, the grandparents—if they have been named—should immediately contact an attorney about having their guardianship status judicially confirmed. Courts will generally not deny grandparents custody because of their age, as long as they are healthy.
Once permanent guardianship has been granted, the grandparents have the power and responsibility to make any decision for the child that the parents could have made, including medical, educational, and place of residence. And, of course, the grandparents should now execute a will or other document specifying who they want to take care of the children should they become unable to do so.
Financial issues
The expenses of raising a grandchild can throw a client's retirement plan completely out of whack. If the family is lucky, the parents will have left enough assets or life insurance to cover the child's expenses. If not, grandparents will need to review their financial plan and perhaps make some lifestyle changes.
Katherine Jackson is all set: she was awarded an allowance for herself and the three children from Michael Jackson's estate, estimated at around $500 million. (The actual amount of the allowance was not disclosed.)
The major expenses for a newly formed grandfamily are housing, education, and health care. Housing. In choosing the best place to live, grandparents will need to consider not only the size of the home but also the location. Someone—either the grandparents or the children—may be forced to move. In the Jackson kids' case, moving to the family compound was the natural thing to do and was the least disruptive for Katherine. But if grandparents live in a small home, or if they live far away from their grandchildren and do not want to disrupt the children's lives, they may have to move.
Education. If the children will be changing schools, the usual public-vs.-private decision will need to be made. And, of course, the grandparents will want to set up a college savings plan, if they haven't done so already.
Health care. One of the first things grandparents will need to do is put the children on their health insurance policy—if possible. If they can't (say they're on Medicare), or if it would be too expensive, they should look into state-supported health insurance through Medicaid or CHIP (Children's Health Insurance Program; some states call it SCHIP). Normally these programs are for very low-income families, but the requirements are different for grandparents raising grandchildren. Most states take into account only the child's income, not the grandparents'. (Five states—Colorado, Florida, Montana, Nevada, and Pennsylvania—do take the grandparents' income into account for CHIP if they are the legal guardians.)
Taking custody of minor children also gives grandparents access to certain resources. Grandparents who aren't used to having a child in the home will be pleased to learn about the Social Security and tax benefits that come with their little charges.
Social Security. Retirees who are receiving retirement benefits through Social Security may, if they are taking care of a grandchild under 18, receive children's benefits as well. The child's benefit is normally half the grandparent's Primary Insurance Amount (PIA). However, it is subject to the maximum family benefit, so if there are several children or a spouse receiving benefits off the worker's record, all of the ancillary benefits may be reduced proportionately.
Personal exemption. Each additional dependent comes with a personal exemption of $3,650 per person in 2009.
Child tax credit. Grandparents may be able to claim a $1,000 child tax credit for each qualifying child under 17. This credit is limited or eliminated if modified adjusted gross income (MAGI) exceeds $110,000 for couples filing jointly or $75,000 for single taxpayers.
Dependent care credit. If the grandparents work and pay child-care expenses, they may receive a tax credit for up to $3,000 for one dependent, or $6,000 for two or more dependents. This credit is a percentage of expenses paid, on a sliding scale depending on income.
Adoption credit. If the grandparents legally adopted the grandchildren, they may receive an adoption credit equal to actual expenses associated with the adoption up to $12,150 in 2009. If the child has special needs, the full $12,150 credit may be claimed without regard to actual expenses.
Education tax credits. All the usual education tax credits are available to grandparents who are paying for college expenses for dependent grandchildren.
Filing status. A single grandparent who takes a grandchild into her home may change her filing status from "single" to the much more favorable "head of household."
Grandparents who may be called to step in and care for their grandchildren need to be prepared for this eventuality, as remote as it may seem.

In addition to familiarizing themselves with the legal and financial matters, they should also consider the emotional issues their grandchildren would face if they lost their parents to death or incapacity. If grandparents ever needed an excuse to bond with their grandchildren, they might be reminded that frequent contact and fun activities will help strengthen family ties so that the
transfer of custody—if it ever needs to happen—will be easier on everyone.

Life Insurance- Term vs. Permanent... which is right for you?

2009-08-18T09:44:00.004-05:00

A Short Course in Insurance: Term vs. Permanent

When faced with the wide range of life insurance coverage available, you may wonder which type is best suited to your needs. As the years go by, it will be important to review and update your plans, as you will likely find that your coverage needs will evolve with your changing life goals. First and foremost, if you don't have life insurance, then you must begin somewhere- immediately!There are two basic types of coverage—permanent (sometimes referred to as cash value) and term life insurance. A closer look can illustrate the short- and long-term benefits that each provides.

Cash Value Life Insurance (Permanent)—Value for Your Dollar
Cash value life insurance not only helps provide financial security for surviving loved ones at the death of the insured, but it also maintains a cash value for the policyholder. Premium payments first pay the cost of the policy coverage itself. Then the insurance company, in order to build the cash values of the policy, invests the “leftover” dollars. Cash value insurance links protection with savings, as assets and earnings accumulate throughout the life of the policy, which the policyholder can access for any purpose.
Some cash value policies provide policyholders with annual dividends. These dividends are the result of higher investment returns and lower expenses than were originally predicted when premium amounts were set. Dividends can be used in many ways, including as a means of paying future premiums, and they can even be reinvested into the policy to generate additional cash values.
Premium amounts owed are contractually guaranteed and will not change as long as premiums are paid in accordance with the schedule set forth in the policy. Payments may continue for a predetermined period chosen by the policyholder, typically ranging anywhere from ten years after the date of purchase to the number of years until a person reaches age 100. The length of the payment period and the amount of coverage will affect the premium cost. Permanent life insurance protection is guaranteed. As long as premiums are paid, the insured is guaranteed coverage for life in accordance with the terms of the policy. Evidence of insurability will never be necessary as long as the original policy remains in force, and benefits will never decrease.
Another feature to consider is its value as a “creditor.” Funds may be borrowed against the cash value of the policy at a predetermined loan interest rate. Loan approval comes from the insurer, but it is generally granted. No repayment schedule is set beyond regular payment of interest on the loan, with outstanding loan balance deducted from the cash value and death benefit by the amount of the loan outstanding plus interest. These loans are generally tax free, and there are no restrictions on their use. However, keep in mind that withdrawals may be subject to surrender charges and could have a permanent effect on the cash value and death benefit.

Term Insurance—Pure Protection for Your Dollar
In a term insurance policy, there are three basics to consider: first, the period of protection is for a predetermined, specified term; second, policies do not accumulate cash values like permanent insurance; and third, premiums may initially be substantially lower than cash value premiums.
Nonrenewable, nonconvertible term insurance for one, five, or ten years may provide the most inexpensive protection available, and this option may be advantageous for those who want to be covered while their children are underage, to back a business loan, etc. Premiums will, however, increase over the period of protection. Term insurance is also available for longer durations (e.g., to age 80), but increasing premiums may result in higher overall costs than permanent insurance in the long term.
Term insurance may be ideal to help cover a specific need, such as an outstanding mortgage. These goals can be met by purchasing coverage for a specified period of time and at the lowest premium outlay. In fact, many companies offer decreasing term insurance in which the death benefit proceeds diminish over time (for instance, to cover a decreasing mortgage balance).

Which Product When? A thorough review of your insurance needs can help you choose the right policy for your individual situation. It is important to determine the short-term and/or long-term nature of your needs, your current cash position, and the coverage you can afford.

Term and Permanent Life Insurance Premium Costs--An Example
Consider a male, age 25, in excellent health, shopping for $250,000 in life coverage. A typical 30-year term policy—one whose premiums remain level for 30 years—would cost about $370 annually until the man attains age fifty-five. Then, the premiums jump significantly—to over $4,700 per year. When he reaches age 65, he will have spent $58,780—money gone forever— on a policy with no cash surrender value. Since there’s no equity, the insurance contract pays off only when he dies.
Compare that to a popular form of permanent insurance called universal life, with higher but level annual premiums of $1739, every year to age 100 or beyond. By his 65th birthday, the man’s total premium outlay of $69,560 ($1739 x 40) will have built equity (cash surrender value) of $157,000—$87,000 more than his premium investment. That’s real money the man can cash in, perhaps to supplement his retirement, borrow against, or leave alone to grow further. Permanent insurance has a living benefit—it can pay off before one dies.

How Much Auto Insurance Do You Need?

2009-08-17T09:27:00.002-05:00

One tried and true way to reduce your auto insurance premium is to hike the deductible on your collision coverage and skimp on your liability coverage. Sometimes this can make sense, but often it's not worth the extra risk. In this section I'll explain several of the coverages you're likely to be offered as you shop for insurance (some are mandatory). Then I'll help you figure out how much to carry of each type.
Bodily Injury Liability
This coverage, which is required in most states, compensates the driver of the other car and its passengers in the event you get into an accident. The main consideration here is protecting your assets against lawsuits that arise from auto accidents. "But I'm a careful driver," you say. It doesn't matter. You can get sued even if the accident is not your fault.
Bodily injury liability is sold in standard increments that designate both how much coverage you have per person in an accident, with an additional limit per accident. For example, if you buy bodily injury worth $100,000/$300,000, each of the people you injured could be compensated $100,000, but only up to $300,000 per accident.
How much coverage you need is a function of what assets you have to protect. If you make $30,000 a year and rent an apartment, $50,000/$100,000 should suffice. But if you make more than $75,000 a year, own a house worth $150,000 and have $40,000 in mutual funds, you should consider at least $100,000/$300,000 of coverage.
How much you'll pay to increase your bodily injury liability coverage depends on several factors, including your age, marital status and driving record. It also depends on where you live. In most circumstances the increase in coverage is minimal ($5 per month), however the costs of being underinsured is disasterous.
One more option: If you have substantial assets, buy $300,000 in bodily injury on your auto policy and $300,000 on the liability portion of your homeowners policy. Then spend another $150 to $300 for a $1 million umbrella policy, which covers you against all manner of liability claims. Should you want still more coverage, the cost for an additional $1 million in coverage is minimal: It's typically $75 to increase your coverage to $2 million, and then $50 for each million after that, according to the Insurance Information Institute.
Property Damage Liability
This coverage will pay for the repair and replacement of the other guy's car or property in the event of an accident. State-required minimums are as low as $5,000, but if you total somebody's Lexus, that won't begin to cover the damage.
You're better off with a minimum of $50,000 for each vehicle you own. And to be truly safe, you should have a total of $100,000 coverage.
Personal Injury Protection
This is one coverage you can consider optional, is just depends on your personal situation. PIP coverage pays for the medical and funeral costs associated with an accident for you and your family — regardless of whose fault it was. But if you already have separate health, life and disability policies, you can possibly forgo this one altogether. Check those policies first, but chances are those sort of expenses are already covered. Many hospitals and health insurance companies have denied claims related to auto injuries. They are forcing these to be paid by auto insurers and if you don't have the covereage, you are personally responsible for the costs.
Uninsured or Underinsured Motorist
This coverage pays for medical and funeral costs for you and your family in the event you get in an accident with either a hit-and-run driver or a driver who doesn't have enough auto insurance. These policies usually cover bike and pedestrian accidents, too. Given the prevalence of uninsured drivers nationally, this coverage is essential and will make up for anything your medical insurance doesn't cover.
Collision and Comprehensive
Collision reimburses you for the full cost of repairs or replacement of your car after an accident. Comprehensive covers you in the event your car falls victim to a natural disaster, vandalism or theft. With either coverage, the lower the deductible you choose, the more the policy will cost you. We recommend that you always choose the highest deductible you can afford ($1,000 is fine). After all, the purpose of insurance is to protect you against big losses, not to make you whole to the last dollar. If you have an older car, you might drop this coverage altogether.
Collision and comprehensive — which can account for 30% to 40% of your total premium — are cash-value coverages. That means if your car is damaged, the most you'll recoup is the Kelley Blue Book value, which declines precipitously as your car ages. Here's a good rule of thumb: If the cost of your collision and comprehensive is more than 10% of your car's Blue Book value, it probably makes sense to drop these coverages and save a tidy sum. With most cars, you should approach this limit as the car turns five years old. Understand, however, that if you eliminate the coverages, you'll have to foot the repair bill if you get in an accident that's your fault, or if the car is totalled or stolen.

Trading in a "clunker"?

2009-08-14T09:37:00.003-05:00

With the spawn of another "bailout" from our government, the "Cash for Clunkers" program was intended to provide economic incentives to U.S. residents to purchase a new, more fuel efficient vehicle when trading in a less fuel efficient vehicle. The program was designed to provide stimulus to the economy by boosting auto sales, while putting safer, cleaner and more fuel-efficient vehicles on the roadways.
Although the program officially started on July 1, 2009, the processing of claims did not begin until July 24. According to estimates of the Department of Transportation, the $1 billion appropriated for the system was exhausted by July 30, 2009, well before the anticipated end date of November 1, 2009, due to very high demand. Think about this... 6 days and we ran out of $1 Billion dollars? Government and industry estimates agree that around 250,000 vehicles were sold under the program in less than a week. In response, Congress approved an additional $2 billion for the program with the explicit support of the Obama Administration. On July 31, 2009 the House of Representatives approved the extra $2 billion to the program, and the Senate approved the extension on August 6, defeating all six ammendments presented. President Barack Obama signed the bill into law on August 7, and government officials expect that the additional funds will be exhausted by Labor Day.

So now you are asking, "what's this got to do with insurance?"

There are some stipulations with this program that you should be aware of before heading out to your local car dealership. In addition to gas mileage and other restrictions, the program requires that your trade-in vehicle be less than 25 years old and that it must be traded-in toward the purchase of a new qualifiying vehicle.

Also, your trade-in vehicle must have been continuously insured for one year prior to you trading it in.

Other stipulations of the program are:

Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
You don't need a voucher- dealers will apply a credit at purchase
The program requires the scrapping of your eligible trade-in vehicle, and the dealer must disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

If you are participating in this program and have decided to trade in your 1985 Merkur XR4Ti for a new 2010 Ford Fusion, you better make sure you trade in your old car insurance policy as well. Now that you have a shiny new car, you need to revisit your car insurance to make sure you have enough coverage to protect it.

Chances are when you insured your clunker, you dropped your collision coverage to save some money on your car insurance. Collision coverage is the part of your car insurance policy that will help pay for fixing damages to your car in the event of a collision. Many people drop this optional coverage when their cars' value gets low enough so that if they were to get into an accident, they would replace the car rather than fix it.

And your new car might not cost as much as you might think to insure it. Car insurance providers offer discounts for having a safe vehicle. Safety features that are standard today weren't around back in the 80s. Airbags became standard on passenger cars in 1998 with pickups, vans and SUVs being required to have airbags the following year. Some car insurance providers will give discounts if your car has airbags and anti-lock brakes.

Most car insurance providers will also offer discounts if your car has anti-theft devices installed. These devices range from your standard annoying audible alarm to having your VIN etched into your windows. There's a good chance that your older car from either 80's or early 90's didn't come with an audible alarm system. Even if your new car doesn't come with an alarm, you can install an aftermarket alarm and still be eligible for car insurance discounts.

If you are thinking about trading in your old car and taking advantage of the "Cash for Clunkers" program, you better hurry up. The program is scheduled to go until November 1, 2009 or until the funds are exhausted.

Let me begin by saying...

2009-08-13T10:29:00.009-05:00

Why Walls & Castles?

Many, many years ago, people worked hard to acquire larger and larger homes, until eventually some literally lived in castles.

History tells us many things about these times. What many of these castles had around them were a wall or a moat, and even both at times.

Why did they have a wall or a moat? It was to keep out the unwanted and to deter thieves.

What serves as a wall today is insurance...

A properly structured insurance program should allow everyone to have a wall that is of the right height for their particular castel. It should not be too big, nor too small.

Nor should it have holes in it. There are numerous things that we could compare as holes.

a major car wreck

a house fire

premature death

lengthly disability

long-term illness

a law suit

My goal as an agent is to provide information and education to families and help insure that they have the right size walls and without holes or blemishes to fully secure them from disaster.