Baby Boomers are strongly considering the option of cashing in their life insurance policies to ensure they have money set aside for retirement, says a survey conducted by International Communications Research (ICR).
I just spoke to a 68 year old gentleman who was looking for a 30 year term life insurance policy. At his age, there arent any companies that would issue a term policy for 30 years, so we looked at a 20 year term policy with a $1,000,000 death benefit. If approved at Preferred Plus, the most favorable health class, his annual premium would be approximately $16,000 a year. The policy would take him to age 88, at which time it would be very difficult to secure a new policy.
I know, there really isnt a product know by this name. However, if it walks like a duck, etc., etc., it is a duck. A Universal Life Insurance policy with lapse-protection is a policy that lasts a lifetime (until age 121, in most cases). These policies wont typically accumulate cash-value, like a whole life policy or universal life policy (without the lapse protection). Even when the cash value dips to zero, something that would be cause for alarm in a standard universal life policy, the death benefit and premiums are still guaranteed (provided the premiums are paid in a timely fashion). Lets recap guaranteed level premiums, guaranteed death benefit, no cash value sounds like a term life insurance policy to me.
We quoted one of these policies for this gentleman and, if approved at the best health class, his premium would be $21,000 annually for a $1,000,000 death benefit. Would this make sense for this gentleman? If he could predict that he would die before age 88, the term policy would be the best choice, but being that he cant, it would make sense to me for him to go with the policy that will pay the death benefit, regardless of how long he lives.
It seems that Im not the only person with this idea. Several life insurance companies have ditched their term policies and replaced them with, you guessed it, guaranteed universal life policies with fixed-year guarantees 10, 20 and 30 years. So now these universal life insurance policies are looking exactly like the term policies they replaced. And, theres no downside to the consumer. These policies perform life a term policy and are even priced to be competitive with term policies from other companies.
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Brown & Brown, a US- based insurance and reinsurance products provider, has named Anthony Strianese as its regional president to help grow its overall operations in addition to continuing his existing regional operations.
Since 2007, Strianese worked as the company’s regional executive vice president and was responsible for its Wholesale Brokerage Division, including Decus Insurance Brokers, which began operations in London in 2008.Strianese was also responsible for some of the company’s public entity operations based in Georgia, Texas and Virginia in US and also founded Peachtree Special Risk Brokers, a subsidiary of Brown & Brown after joining the company in 2000.Brown & Brown president and CEO Powell Brown said Tony has been a major contributor for the success of Brown & Brown’s wholesale brokerage operations, and his promotion will contribute to continued growth of the organisation.
The state of Nebraska is making some waves with a proposed change to its auto insurance coverage laws. The new law that is being proposed is by State Senator Paul Schumacher. He wants to change the minimum amounts of liability coverage that drivers need to have.
Other states have tried similar measures in the past. They say that it helps to make drivers safer. Automobile accidents happen all the time, so having additional auto insurance coverage can be a real lifesaver.
Times are tough and many families are struggling. Some drivers have argued that by being required to have additional coverage that they will have to pay even more for their auto insurance coverage which is not fair at all.
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Political Calculations just hosted their fifth Cavalcade of Risk this week, with their trademark rating system for articles. Be sure to check it out. IronMan pointed out that blog carnivals have largely been surpassed by social media platforms when it comes to sharing interesting posts and getting exposure for new blogs and he gives COR founder Hank Stern of InsureBlog some well-deserved kudos for keeping the COR going strong for 148 editions.
That said, lets make sure that we utilize all those new social media resources to spread the Cavalcade of Risk around the web. We started blogging in 2006, back when the only people on Facebook were college students, and Twitter was just being launched. I
Being a safeguard is not as easy as some people think. Usually, the image of a safeguard is associated with Baywatch, and with a muscles young boy sitting around the beach all day long and talking with beautiful girls. However, this is not the case. A safeguard has important responsibilities, and the life of people on the beach depends on this person. In some cases, especially on some crowded beaches, the safeguard can’t watch hundreds of people at the same time, and the safeguard might make some mistakes. In this case, an insurance safeguard for professionals might make sure that all the potential sums are covered, and that the risks are paid by the insurance company. Full Post…
Federal securities regulators say a Texas-based life-settlement firm and three of its senior executives “systematically and materially underestimated the life expectancy estimates,” which in turn caused its shareholders to be “duped.”
The U.S. Securities and Exchange Commission (SEC) alleges that Life Partners Holdings and its Chairman and CEO Brian Pardo, President and General Counsel Scott Peden and Chief Financial Officer David Martin misled shareholders by failing to disclose a significant risk to Life Partners’ business, according to the SEC.
In court filings, the SEC alleges that the company based its estimates on life expectancy, on which the price of a life insurance policy to investors is based, on a Reno, Nev.-based doctors estimates. That doct
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