Insurance,
properly utilized, is nothing more than a pool of money to reimburse
those that have a misfortune befall them. The others simply get the emotional
protection for a loss that never occurs. In essence,
therefore, you hope to never use it.
EFM
Click to Buy it now!
Sample
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LIFE INSURANCE AND ANNUITY EXPERT
FOR LITIGATION
Irrevocable
Life Insurance Trusts and Trustee Fiduciary Duty
John Hancock
ILIT Policy Analysis This is the real life analysis that is
referenced above.
"I have asked Errold Moody to provide a brief example of what he has
actually found on behalf of a client who engaged his services to review
the insurance contracts which funded the client’s estate plan.
You will be amazed. In my 30 years in the business, I have never seen
an authoritative, objective, prudent expert speak so clearly on the use
of insurance. What Errold can do is unique in the industry."
Steven Winks
*
How much
is too much to pay for life insurance?
This page, as others, is continually
growing and will probably contain more objective material on the pros
and CONS of insurance then you may see anyplace else.
I have taught most of the
continuing education courses in California for insurance agents. And I
have a Master of Science in Financial Planning and am one of about 33
individuals licensed in the state as a Life and Disability Insurance
Analyst who is allowed to charge a fee for advice. And the
only CFP who ever passed the exam. Of all the issues I have ever
tackled, insurance is clearly the most difficult. That's primarily due
to the fact that, unlike mutual funds and the services like Morningstar
and Value Line, there is no independent company that rates the
different policies (remember Best, S&P, etc. rate the financial
condition, not the policies themselves.) So it has
been a never ending process of continuing education to enlighten myself
as to what is going on.
After considerable analysis, I believe
that insurance should be bought as insurance, investments as
investments. Blending them together can work, but you tend to lose
benefits of both. That said however, cash value insurance for some
business purposes can be an acceptable element for planning
purposes. But you still have to look at the cheap (non
investment) policies first.
The following commentary will, for the
most part, refer to individual and family purposes. As with everything
I write, never do anything based solely on the material. Laws may have
changed, I may have made a mistake, or there are new perspectives on
the issues. Make sure you
DO YOUR HOMEWORK!
"There are worse things in life than death. Have you ever spent an evening with an insurance
salesman?”
Woody Allen
The list below includes all
articles and specific links in alphabetical order with accompanying
description. The listings in the column to the right are separate
sections for articles and links
THE 2002
CONSUMER'S GUIDE TO CHEAP, GUARANTEED PERMANENT LIFE INSURANCE:
Confused about the various types of whole, universal and variable life
policies that are almost indecipherable? And where there are no
guarantees? Insurance should be bought for insurance- any investment
elements ratchet up the costs and restrict policy uses later on. And
you are also at the mercy of lower interest rates and higher company
expenses and mortality rates in the future- perhaps 40 to 50 years
later. The purchase of insurance should be to limit risk- not to
increase it. So here is a straight forward article on the use of
permanent insurance that could solve many personal and business
needs at a reduced cost that is also GUARANTEED to age 130.
403(b)
LINK All sorts of info on 403(b)'s including upcoming legislation
ACCELERATED
DEATH BENEFIT LINK: There were 39.9 million individual policies or
group certificates that included an accelerated death benefit (ADB) as
of December 31, 1997, compared with 18.1 million in 1994.
ACTUARY
LINK 1: Huge database and articles on life, health, mortality,
morbidity and more.
ACTUARY
LINK 2: Includes many well researched articles from the
American Academy of Actuaries on subjects such as social security, long
term care, pensions, Medicare, etc.
AM BEST
RATING LINK: AM Best has been a leader in the independent
ratings of insurance companies. There are others of course and they are
also referenced in the material below- S&P, Moody's and Duffs and
Phelps for example. I would first look to a Best rating and then add in
one of the other resources to corroborate.
AMERICANS WITH
DISABILITIES ACT LINK
ANNUITIES:
This is a full text on annuities that cover tax deferral, ultimate
taxation, fixed and variable policies, ratings, surrender charges,
bailout options, fees, payout and lots more.
ANNUITY AND INSURANCE
CREDITOR PROTECTION LINK: Extensive article on protection
available on a state by state basis. Very comprehensive. Click "By
Topic", then "Trusts and Estates and Wealth Preservation " and finally
"Creditor Protection for Life Insurance and Annuities. Worth the
hassle
ANNUITY
NEGATIVES: This definitive article addresses several negative
issues with the use of annuities: dismal return during payouts- even
lower for some races, lack of access to principal, insurance scams,
etc. etc. It will radically alter the thinking of annuities as either
safe investments or for use during retirement. THIS IS A MAJOR ARTICLE
ON THE VALUE OF ANNUITY PAYOUTS. IF IT DOESN'T NECESSARILY RELATE TO YOUR
AGE AND ACTIVITIES, IT MIGHT VERY WELL APPLY TO YOUR PARENTS OR
GRANDPARENTS WHO WILL UNDOUBTEDLY BE OFFERED AN ANNUITY SOMETIME IN THE
LIVES. READ IT!!
APPLICABLE FEDERAL RATES
LINK: You must use an interest rate in the calculation of
annuities, reversionary interests, life estates, etc.- but you can't
use just anything. You are subject to the movement of rates in the
economy and as stated by an AFR- Applicable Federal Rate for the month
of use (slight variations.)
ADVISERS: A
critical article about the selection of a life insurance adviser.
Almost all people do this wrong and select agents with little
experience or education or those with literally no experience or
education- worse yet, don't even have an interest in doing the analysis
correctly.
AUTO INSURANCE
LINK 1: This site
at the Insurance Information Institute provides extensive info on a
variety of insurance topics
AUTOMOBILE STATE
MINIMUM LIABILITY LINK: Each state has different requirements when
it comes to auto insurance. In some places, you can't register a car
without showing proof of liability insurance. Other states use a kind
of honor system that doesn't require proof from drivers until they have
accidents or tickets on their records. Or run over your pet hampster-
things like that.
BONUS
INTEREST: Have you been offered a policy that pays extra interest
up front? Any good? You may be surprised.
BUSINESS INSURANCE
LINK: Home business, business interruption, insuring the
life of a key employee, professional liability insurance, commercial
auto insurance policy and much more.
CALIFORNIA
BROKER LINK: I have subscribed to this magazine for
years. Every so often I include articles as indicated above. But they
include lots of material on dental, vision and much more. Definitely
worthwhile.
CALIFORNIA
EARTHQUAKE INSURANCE LINK: The rates are region-specific and
reflect coverage for homeowners (including mobile home owners),
apartment or house tenants, and condo owners.
CHARTBOOK
ON WORK AND DISABILITY LINK: U.S. info 1998. Great statistics
CLAIMS
LINK: Lots of info including Blood-Alcohol Calculator,
Betterment/Depreciation Calculator, Building Repair Cost Calculator,
Coverage Analyzer/Business Torts, Coverage Analyzer/Personal Injury,
Floor Area Calculator and more
COBRA: Simple
chart showing Cobra coverages
COBRA LINK 1: If
you are terminated from employment, you may continue health coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985.
Federal law does impose certain obligations on many employers to
continue to provide health care coverage in the event of a change of
employment or job status.
COBRA LINK 2: This
provides basic info as well as addresses and telephone numbers of each
state since "many states have adopted their own "mini-COBRA" laws that
often grant broader rights in determining eligibility."
COMMERCIAL
UMBRELLA LIABILITY POLICY LINK: A pdf sample policy
CROSS
PURCHASE BUY SELL AGREEMENT LINK: Lincoln Benefit
CRUMMEY
POWER: Applicable primarily to those using an irrevocable life
insurance trust. Shows some of the basics of getting present value
gifts to a trustee.
DEFERRED ANNUITY
QUOTE LINK: This is a Berkshire Hathaway site but the reason I
picked it was that it will actually show you the yield you will get on
the annuity. You need this and a financial calculator to do the same
thing with other annuities to see if you are getting a good deal.
DEFERRED
COMPENSATION LINK
DEMUTUALIZATION LINK
Demutualization is the process of converting a mutual insurance company
to a stock company. Mutual insurers are abandoning their mutual status
to go public or "demutualize". This requires approval from
policyholders. Management and directors say reorganization is necessary
to enable the company to grow, gain greater access to capital and to
attract the best qualified employees.
DENTAL INSURANCE SURVEY LINK: A
professional survey from California Broker. This goes to their front
page where you will find a direct link.
DISABILITY: Simple table to determine
how much you need.
DISABILITY
CLAIMS LINK: A lengthy pdf professional article on claims
procedures internationally.
DISABILITY
INFORMATION AND PRODUCT LINK: Huge source or info on all sorts of
disability issues- medicines, lifts, clothing, ramps and much much
more. Highly recommended.
DISABILITY
GLOSSARY LINK : Another good effort by Insure.com. Believe
me, disability insurance is tough
DISABILITY INSURANCE:
Concise article by William Brownlie
DISABILITY
INSURANCE LINK: The basics of long term disability insurance
DISABILITY
LINK 1 : This site by the Health Insurance Association
of America provides many consumer guides to long term care, health
insurance, medicare, and has a very good article on disability
insurance for the consumer.
DISABILITY
LINK 2: site from the government. The Web portal provides Americans
with disabilities - and their families, employers and service providers
- with one-stop access to information and programs that facilitate
their day-to-day living.
DISABILITY
INSURANCE CALCULATOR LINK: Met LIfe
DISABILITY
PLANNING - ( MetLife) "more than half of full-time employees have
not done any specific planning for their financial security and
protection in the event of a disability." Sounds like a need waiting to
be filled.
DISABILITY
INSURANCE QUESTIONS LINK: Basic questions answered by
attorneys.
DISABILITY
RESOURCES LINK: The Family Village is a a global community
that integrates information, resources, and communication opportunities
on the Internet for persons with cognitive and other disabilities, for
their families, and for those that provide them services and support.
It includes informational resources on specific diagnoses,
communication connections, adaptive products and technology,adaptive
recreational activities, education, worship, health issues,
disability-related media and literature, and much, much more!
DISABILITY STATISTICS
LINK: The Chartbook on Work and Disability 1998, is an
exceptional reference on work and disability in the United States
population, created for use by both nontechnical and technical
audiences. The book is a resource for agencies, employers,
organizations, policymakers, researchers and others concerned with the
relationship between disability and work
DISABILITY
STATISTICS LINK 2: Good charts for small business owners.
DISABILITY
STATISTICS and ARTICLES: What are the odds of becoming disabled,
getting better, recent changes in policy coverage and lots more. As
with most other commentary, this is continually updated.
DOL LINK: Department
of Labor state map for job placement and referrals, unemployment
insurance, disability insurance, employment and training, labor market
information, payroll taxes
EARTHQUAKE
INSURANCE: Commentary on what you should look for and how it works.
EARTHQUAKE INSURANCE LINK: The
EQE International's HomeRisk website is where California homeowners can
obtain an online earthquake risk assessment. The assessments
provide an EQE Seismic Risk Rating- low, average, high risk- for an
individual structure and represents a measure of "earthquake fitness"
for that building type at the shaking intensity expected on the soil
mapped at that site, and at the specific distance of the site from the
known active faults in the vicinity.
ENTITY
PURCHASE BUY SELL AGREEMENT LINK
EQUITY INDEXED
ANNUITIES: Commentary, charts, pictures of my cat
EIA INDEX CREDIT
METHOD RATING SERVICE LINK Great!!!!!!!
EQUITY
INDEX ANNUITY LINK: These have limited applicability, but the site
provides a lot of info on what is going on in the industry.
EXCHANGING
LIFE INSURANCE POLICIES LINK: These are the warnings
for switching variable policies. However, it is valid for most
exchanges of insurance policies.
EXECUTIVE
BONUS ARRANGEMENTS LINK
FEDERAL
EMERGENCY MANAGEMENT AGENCY LINK: FEMA has some good material on
disaster preparation, mitigation, up to date info on hurricanes and a
lot more.
FINANCE, INSURANCE, and
REAL ESTATE
LINKS: The finance department of Louisiana State University
has provided an exceptional list of links to all sorts of investment
areas. Good Stuff
FITCH
INSURANCE RATINGS LINK: Similar to S&P, Moody's
FLOOD INSURANCE: Many
people mistakenly think that a homeowner's policy covers for flood
damage. WRONG! Lots of other comments including approximate policy
premiums.
FLOOD INSURANCE LINK: Good
overview on many aspects of flood insurance.
GUARANTEED
LIFE INSURANCE California Broker
HEALTH
INSURANCE GLOSSARY: Very extensive
HEALTH PLAN BENEFITS
LINK: Use this comprehensive guide to find your rights to specific
coverages. Plus, see your rights regarding guaranteed-issue plans,
pre-existing medical conditions, and external grievance review panels.
HOMEOWNER'S CLAIMS
LINK: Good consumer's info on Where To Begin, What To Look
Out For, When To Settle and How To Protect Your Rights
HOMEOWNERS
INSURANCE: Basic commentary on what to look for including the
different HO policies.
HOMEOWNERS INSURANCE
LINK 1: This site
at the Insurance Information Institute provides the 15 questions that
homeowners ask claims adjusters regarding the standard homeowners
policy coverage. Starts with auto insurance and contains many other
subjects as well.
HOMEOWNER'S
INSURANCE LINK 2: A consumer's guide by the State of Wisconsin
Office of the Commissioner of Insurance. Very extensive and worth the
review.
HOMEOWNERS
INSURANCE LINK 3: from National Underwriter
HOMEOWNERS
INSURANCE ENDORSEMENTS LINK: from National Underwriter
HOW
MUCH LIFE INSURANCE: Almost all agents use pre programed computer
programs to show you how much insurance you need. But I have actually
found some software programs to be in error and others using completely
erroneous economic factors. Further, few agents have ever been taught
how to determine the numbers manually- and it probably wouldn't make
that much difference anyway since they MUST be able to use a financial
calculator (HP12C) to do the present value
calculations. You should NEVER use an life insurance agent, stock
broker, financial planner, attorney, etc. for any aspect of finances
unless they have complete proficiency with a financial calculator. Now
that I got that off my chest, take a look a how you actually determine
the amount of insurance you may need.
IMMEDIATE ANNUITY
QUOTE LINK - This is a Berkshire Hathaway site but the reason I
picked it was that it will actually show you the yield you will get on
the annuity. You need this and a financial calculator to do the same
thing with other annuities to see if you are getting a good deal.
IMPAIRED
ANNUITIES: I'm not wild about annuities for many reasons, but if
you are not in the best of health and still want to use one, you should
look at these. They use a shorter actuarial lifetime.
IMPAIRED
RISK: If you have a past medical history, can you still get
insurance? Yes and here are some comments.
IMPAIRED
RISK INSURANCE LINK: You can get insurance almost regardless of
your condition- though it costs a lot more (obviously). This commercial
site gives some good information on what may be covered and how. Just
one thing first- if you are an impaired risk, DO NOT go around to
standard carriers hoping to get "lucky" with them They almost
universally will decline the policy- and that raises a red flag to
subsequent insurers. Or if you try and shop it with a bunch of rated
insurers. There aren't that many reinsurers and they don't like getting
jerked around with someone looking for the "best rates". They might
simply decline. Pay attention here if you need insurance and have a
medical condition such as diabetes, depression, high carbohydrate
level, etc. Get an agent and company experienced in rated policies and
use them exclusively. (See Impaired Risk above)
INDEX ANNUITIES: Life
insurance/annuity companies try to find every way to make a sale. Fixed
annuities are conservative but don't earn much. Pure variable annuities
take a lot more risk. So the companies came up with an annuity that is
coupled with the S&P 500 index. Any good? Probably not. Read this
article and decide for yourself what you need to ask.
INTERNATIONAL
CENTER FOR DISABILITY LINK
INSURANCE LINK: Lots of
valid material from Insurance Advisor. Mostly for those in the business.
INSURANCE LINKS: An
extensive collection of national and international links covering all
types of insurance matters including securitization, health,
property and casualty, demutualization, etc.
INSURANCE
ADJUSTER LINK: When you have a major property loss, you may need
help in filing a claim. Independent public insurance adjusters work for
you to "help you with preparation of inventories, estimates and other
factual proofs of loss". Give this serious consideration.
INSURANCE
ARTICLES AND COMMENTARY: Miscellaneous review of various insurance
issues in the news.
INSURANCE COMPANY
CLAIMS NUMBERS LINK: Another valuable resource from
Insure.com and very beneficial when you or a loved one has a claim.
INSURANCE COMPANY
PHONE NUMBERS LINK: Literally all the companies in the U.S.
Huge list
INSURANCE
CONTINUING EDUCATION LINK: This is a private site that sells
continuing education courses for each state. But the reason it is a
link is that you can put in any of the 50 states and find what the
individual state continuing education requirements are. You may never
use it, but the links at this site are for my benefit to readily refer
back to issues I find important.
INSURANCE DIRECTORY LINK: This
is a large site that has a lot of paid company listings. But it also
has links to organizations- like actuaries- where you can get to some
very detailed studies.
INSURANCE
FIDUCIARY DUTY LINK: By Glen Daily
INSURANCE
FRAUD LINK: An independent, nonprofit organization of
consumers, government agencies, and insurers dedicated to combating all
forms of insurance fraud through public information and advocacy.
INSURANCE
GLOSSARY LINK 1: Good extensive definitions on many areas of
insurance. Best I have seen so far
INSURANCE
GLOSSARY LINK 2: Covers Annuity Terms, Auto Insurance, General
Insurance, Health Insurance, Legal Terms, Liability, Life Insurance,
Property Insurance and Workers Compensation
INSURANCE GLOSSARY
LINK 3: From Tony Steuer
INSURANCE
GLOSSARY LINK 4: Definitions for (gasp!) insurance
INSURANCE
GLOSSARY LINK 5: Very extensive
INSURANCE
GLOSSARIES LINK 6: Many glossaries
INSURANCE
GLOSSARY LINK 7: From the Berkshire Company
INSURANCE
GLOSSARY LINK by Barry Flagg
INSURANCE
GRIPE LINK: They gather complaint information from you based upon
your responses to our questions, and then prepare a "free" letter which
you review. If the letter is acceptable to you, you can mail it to the
insurance department within your state.
INSURANCE
IN A TRUST: Trust owned life insurance will create a
significant fiduciary exposure and liability for the unknowledgeable
trustee. How are they doing so far?
INSURANCE LAW
LINK: Federal statutes regarding crop and flood damage, new
insurance cases, state statutes and much more.
INSURANCE
MEDICINE LINK: From MIB Inc and includes issues on aging,
health and more. Highly recommended.
INSURANCE NEWS NETWORK LINK: Good
general comments, links to other sites including those offering quotes
on the Internet. But be careful of marketing claims by any company no
matter where you hear about them- the Internet, newspaper ads, mail,
agents, your mama. Even with no load products or those without
commissions, most people still end up buying insurance that cost far
too much compared to what they should have bought. Let's be careful out
there.
INSURANCE OVERVIEW LINK: Concise
article covering many elements of insurance- insurable interest,
claims, bad faith, homeowners and renters insurance. Looks like a good
primer.
INSURANCE POLICY LINK: An
In-Depth Analysis of One Participating Whole Life Insurance Policy by
Rich Franzen. Interesting. Take a look
INSURANCE
PREMIUM QUOTE LINK: While this is just a California
Department of Insurance site, it is great. Put in the data for long
term care, auto, homeowners, title, Medicare and Workers Comp and get
quotes from the major companies. You still have to contact them
directly for personalized numbers, but it may be a great time saver
overall- even for people not in CA.
INSURANCE PROBLEMS LINK: State
by state issues consumers should be aware of.
INSURANCE
RATINGS LINK1: Direct link to ratings by S&P
and Duff and Phelps on the largest insurers in the U.S. But do not be
misled. Simply because it is big is no guarantee of good policies or
competent agents. Look at what has happened to Prudential,
Metropolitan, New York Life. You need to do a lot more homework than
just check ratings, but this is a start.
INSURANCE RATINGS LINK 2: This
is the site for Moody's insurance ratings. The ratings are provided
under different requirements than S&P and Duff and Phelps.
INSURANCE REGULATORS
MAP LINK: Just click on your individual state to get the info you
need.
INSURANCE
SUITS AND SETTLEMENTS LINK:
INTERNATIONAL
INSURANCE LINK: Facts on literally every country; rankings,
profiles, etc. Very extensive
KEY
PERSON LIFE INSURANCE LINK/
LIFE
EXPECTANCY: If you are 45, how long do you have to live? How about
age 65 or 75 or even 85. You must know these numbers in order to do
estate, insurance/annuities or retirement planning.
LIFE
EXPECTANCY LINK The above site requires printing out a form and
does not provide an on line answer- though it is very descriptive. This
site is not as definitive but allows you to plug in answers and get a
result. You should try it.
LIFE
INSURANCE ADVISER LINK: A fee site that provides insurance analysis
LIFE
INSURANCE CALCULATOR LINK 1
LIFE
INSURANCE CALCULATOR 2 Met Life- Covers some items I don't
necessarily agree with, but it's free. And no one will call.
LIFE EXPECTANCY
CALCULATOR LINK
LIFE INSURANCE
DUE DILIGENCE LINK: By JJ McNab
LIFE INSURANCE
ESTIMATOR LINK : I don't like the simplistic 5 or 7 times income
since they don't reflect the individual needs. This estimator is not
prefect but is better than most.
LIFE INSURANCE
GLOSSARY LINK: From the Insurance Adviser.
LIFE
INSURANCE POLICY LOCATOR LINK: : An invaluable service. The
Medical Insurance Board has a Policy Locator that can maximize your
opportunity to discover life insurance benefits you may not have
realized existed.
The decedent's name is
searched against a Policy Locator database of over 110 million records
representing inquiries submitted on individually underwritten life
insurance applications processed during the last nine years.
LIFE
INSURANCE WORKSHEET LINK: From Weiss- Not perfect since it
does not incorporate PV. But it's better than most
LIFE SETTLEMENTS
LITIGATION: This
report took over a year and addresses an egregious wrong by a highly
marketed CFP.
MANAGED CARE
QUESTIONNAIRE: Kate Kincaid is the Editor in Chief for California
Broker magazine. Beyond that, and most importantly, is the fact that
she is an excellent and knowledgeable writer on complicated issues.
This questionnaire is must reading.
MEDICAL EXAM LINK: Why
life insurance companies request one and what goes on in the
underwriting stages.
MEDICAL
INFORMATION BUREAU: Want to know why an insurance company may find
out your fibs on a policy submission? Because prior illnesses end up on
the MIB computer.
MEDICAL INSURANCE BOARD
LINK: The MIB's traditional role within the insurance
industry is to operate a confidential interchange of information
that is significant to health or longevity as an alert to detect and
deter fraud.
MEDICAL SAVINGS
ACCOUNT LINK: An extensive review with questions and answers about
the viability of MSA accounts. Essentially, you buy a LOW premium HIGH
deductible health policy PRE tax. If you don't use the premiums that
year, they can grow for retirement.
MEDICARE
HMO LINK: This site can help answer questions about managed care,
selection of a Medicare HMO along with individual state regulations and
more. I would certainly recommend this to anyone retiring who has
questions about whether to join and HMO or to take Medicare and use a
Medigap policy.
MEDICARE
SUPPLEMENTAL QUOTE LINK: The site allows you to get quotes in any
state on any type plan. You still have to do some more homework but it
is an excellent place to start.
MEDIGAP
PLANS: Only 10 (essentially) are allowed to be sold throughout the
U.S. This article will help explain some differences and give
additional insight to some problems.
MEC- MODIFIED
ENDOWMENT CONTRACTS VERSUS ANNUITIES: Real life example where an
annuity is a very bad purchase.
MOLD
LINK: One of the more important issues about which the insurance
industry is concerned involves toxic mold and how it relates to both
personal and commercial lines insurance policies. Some analysts are
making the analogy that mold could be the next asbestos.
MONTE CARLO
AND VARIABLE LIFE LINK
NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS LINK: This
organization provides a critical and objective overview to the
insurance industry and is responsible for many changes in laws,
financial reporting. Not a link for many consumer issues, it still is
an excellent resource for what is going on in the industry.
NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS ON LINE FRAUD REPORTING LINK:.
Recent allegations concerning inappropriate insurance broker activity,
has created an increased awareness for state insurance departments to
enhance their collection of information from consumers, insurance
producers and employees of insurers concerning alleged violations of
insurance laws and regulations. From this page, you can report
suspected fraud.
NEW AND PROPOSED
REGULATIONS:The industry has been under intense scrutiny and many
states and organizations have suggested or are currently implementing
changes. You'll see a lot more of this coupled with more agents leaving
the business.
PENSION
MAXIMIZATION: This has been pushed to corporate retirees to take a
single life annuity and buy insurance to offset what would have been
paid on a joint life annuity. Form allows you to figure it out. But I'd
still be very careful and ask a lot of questions. Caution advised since
spouse could lose other benefits. Don't do this (or most anything else
I may comment upon) without getting second opinion.
PREFERRED OR
STANDARD: Many insurance policies are submitted quoting you as a
preferred rating (usually the best of health providing the lowest
rates). Then, after review, the contract comes back with a standard
(lower) rating and much higher premiums. Look at this to see how your
health might stack up to an underwriter and help you avoid surprises.
Recognize, however, that each company has its own unique underwriting
standards.
PREMIUM
FINANCING: Michael Gallop
PROPERTY INSURANCE:
Code upgrades, use of Public Adjuster, more
PROPERTY AND CASUALTY
GLOSSARY LINK: An extensive and comprehensive explanation from
alienated premises exclusion to valet parking services
PROPERTY/CASUALTY
INFORMATION LINK: This goes to the Insurance Services Office (ISO)
which provides some excellent statistical data on the risks of property
and casualty losses. It also provides links to just about all the other
major insurance sites so I suggest you take a look if you are reviewing
your risks and thinking of buying a policy.
PUBLIC
ADJUSTER LINK: When you need help with a property insurance claim,
an independent adjuster may provide the help you need.
RENTERS
INSURANCE LINK: Basic info from the Ohio Insurance Department
RISK
MANAGEMENT/INSURANCE SEARCH LINK
SALARY
CONTINUATION PLAN LINK:
SECOND
TO DIE INSURANCE: This has been pushed a lot EVERYWHERE as the way
to pay estate taxes. I don't necessarily agree since it tends to
represent bad estate planning. So look at these examples and judge for
yourself.
SMALL BUSINESS
INSURANCE LINK: A site for selecting the right insurance for a
small business.
SPLIT
DOLLAR LINK
SPLIT AND
REVERSE SPLIT DOLLAR INSURANCE: Used a lot for business purposes.
General comments
STATE
GUARANTY LAWS LINK: Also see
http://www.fsdfinancial.com/State%20Guarantee%20Associations.htm (My
software does not like the code.)
STATE HEALTH BENEFITS
LINK: Identifies specific coverages and rights regarding
guaranteed-issue plans, pre-existing medical conditions, and external
grievance review panels. More
STATE
HEALTH INSURANCE ASSISTANCE PROGRAMS LINK:
STATE
INSURANCE LINK: Direct link to all sorts of statistical insurance
info on any state. You will also be able to get to any state's own WEB
page
STATE INSURANCE
INTEREST LAWS LINK:
STATE INSURANCE
REGULATORS LINK:
STATE
WORKERS COMP LINK: Simply by clicking your individual state, you
can get state specific info. Was looking into this most recently- hence
the link. Saves a lot of time in research by using this.
SUPPLEMENTAL
RETIREMENT INCOME LINK
SURVIVOR
OPTIONS: Payouts options for survivors and, from my standpoint,
normally not advisable. But look for yourself.
TSA MAXIMUM EXCLUSION
ALLOWANCE LINK: Teachers and other non profit organizations
under Section 403(b) and 501(c)3 are allowed to use pretax money and
invest in tax sheltered annuities (fixed or variable). There is a
special formula to determine how much they can put away. Unfortunately
all the annuity companies seemed to come up with different numbers.
Anyway, this is an online computerized form that "might" be correct.
TAX TREATMENT OF
INSURANCE and PREMIUMS: Short table showing when premiums may
be deductible. And what happens when you die and the insurance is paid
to others. YOU'LL BE SURPRISED!
TERM
INSURANCE SURVEY LINK A professional survey from California Broker.
This goes to their front page where you will find a direct link.
TRUST
OWNED LIFE INSURANCE LINK: Fiduciary pitfalls- good article.
between 70% and 95% of ILIT policies have no servicing agent, 83.5% of
professional ILIT trustees have no guidelines or procedures for
handling trust policies, and 71% of nonprofessional trustees have not
even reviewed their policies within the last five years.
TRUST
OWNED LIFE INSURANCE, IS IT AN ACCIDENT WAITING TO HAPPEN: Great
article by Mark Teitelbaum on the breach of fiduciary duty in the
review of life insurance.
UNDERWRITER LINK: Commentary
and articles on the underwriting of certain risks including breast
cancer, depression, Parkinson's, colon cancer, etc.
UNDERWRITING LINK: Extensive
database of professional articles on many insurance subjects.
UNIFIED
RATES FOR ESTATE AND GIFT TAX: Generally, if you leave more than
$1,000,000 when you die, anything above that starts getting taxed at
41%. This clearly makes the case for proper estate planning
VARIABLE ANNUITY ABUSES
LINK: prepared for the North American Securities Administrators
Association by JJ McNab
VARIABLE ANNUITY
LINK: The SEC's description and commentary. Needs more but it is
an acceptable start.
VARIABLE
ANNUITIES VERSUS VARIABLE LIFE VERSUS MUTUAL FUND INDEXING: Do you
understand how each of these will work considering basis, taxation,
risk, fees? Bet you don't and here are some examples to put them into
perspective. Shows why some variable policies might not work. Actually,
now that the lower capital gains tax has been implemented, very few
people should buy variable life. And ask yourself this if you do buy
one. Will your beneficiaries ever see the full amount of the insurance
upon your death. NOPE! If you don't understand why, you got a LOT of
homework to do.
VIATICAL
COMMENTARY: . Here is a AAUL Bulletin by four attorneys that might
put the sophistication, taxation, fraudulent offerings, etc. into
a more intensive perspective. Don't buy these by yourself- or certainly
let your father/mother/grandparents get involved without outside
scrutiny. Also includes some updated statistics.
VIATICAL GLOSSARY LINK:
VIATICAL
INFORMATION LINK: A non profit organization provides insight.
VIATICAL
QUESTION LINK: The Consumer Reports commentary
VIATICAL
SETTLEMENT LINK : This site by viatical author Gloria Wolk
provides some good insight to the various settlements along with
the risks and warnings for people that do not do their homework.
This is an involved area during the end of life that requires careful
review before utilization.
VIATICAL
STATE REGULATION LINK: Viatical sales of life insurance
policies for the terminally ill (and otherwise in certain cases) has
led to tremendous abuses. Here is a list showing whether or not a state
is regulating such sales. Many don't and you are therefore put at
extensive risk. Even for those states that supposedly have rules, I'd
still suggest hiring outside help to analyze.
WORKERS COMP LINK 1:
Good general description of workers comp from Insure.com
WORKERS COMPENSATION LINK 2:
Includes a listing on all 50 states with statutes, forms, procedures
and more.
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