Hybrid policies redfine life insurnce. Image: alancleaver_2000//Flickr/CC BY-SA

The nature of long-term care and life insurance policies has changed rapidly in these uncertain financial times.  Many consumers are reluctant to put up large amounts of money for future benefits, especially when those  benefits may never become necessary.  The insurance industry has countered this trend by offering combination products that blend long-term-care with traditional life insurance.

Long-term care option

Generally blended life insurance policies utilize universal life, in which a portion of the death benefit may be used early to help pay for long-term care should it become necessary.  These hybrid policies have been available for a while but have recently been gaining popularity.  A hybrid product, combining two products into one, sounds attractive to many consumers. If the long-term care never becomes necessary, the policy holder may still benefit from the life insurance.

Traditional policies in decline

Sales of the hybrid policies more than doubled in 2010, according to Gebworth Financial Inc.  By contrast, the sales of traditional long-term-care insurance has plummeted by nearly 25 percent over the last five years.

“Most people who buy hybrid insurance are not buying it because they want life insurance,” said John Ryan, a Colorado-based broker.  “They’re buying it because they need long-term-care insurance, and the sales pitch that you can get your money back no matter what is pretty compelling,”

Retired class growing rapidly

LeadingAge, a Washington-based lobbying group for retirement homes, claims that almost 69 percent of Americans turning 65 today will need long-term care at some point and that their numbers will likely double by 2040.

How hybrid policies work

There are many versions of hybrid insurance policies available, and the details vary greatly.  Generally, however, hybrid life insurance policies offer the consumer a cash-value life insurance policy and the option to use a portion of that policy for long-term care benefits. If the long-term care benefits are used, however, the value of the death benefits will be reduced.

Disadvantages

While a two-for-one product sounds attractive, there are many variables to consider.  Generally there is less wiggle room with a combined product. Hybrid products often don’t cover home care or adjustments for inflation. Often they are too specialized in what types of long-term care they will or will not cover.  It is impossible to predict future care needs, and often that is exactly what the insurance companies expect you to do.  While purchasing a hybrid product is cheaper than purchasing two different policies, it is also typically more expensive than buying a dedicated long-term care policy.

Be cautious and informed

As with any large investment, the consumer needs to be cautious and well-informed when shopping for these products.  Advice from an impartial financial adviser is always a good idea.

Sources

Daily Finance

ElderLawAnswers

Bloomberg

Surviving the loss of a spouse is never easy. Besides the obvious pain and loss felt, there is often an overwhelming amount of financial business to tend to. Unfortunately, credit card bills still needs to be paid, banking matters need to be appropriately handled, as do insurance matters. For those in an immediate cash crunch, a loan till payday or a cash advance may be arranged in order to gain a little breathing room. However, even with a short-term personal loan, it is very likely that other pressing financial matters will need attention, too.

Financial preparedness is empowering

While no one likes to think about being a surviving spouse, the sad reality is that people are placed in these situations every day. Knowing what to do ahead of time, however, can make a world of difference and can actually help ease some of the stress at that time. Therefore, everyone married or in a committed relationship owes it to themselves to know a few basic financial steps to recovery after the loss of a spouse or partner.

Here are a few financial tips that will help upon losing a spouse:

A New Banking Account

Open a bank account as a single person. Most people already have one, but if not, this is the time to open an individual checking and savings account for all future transactions.

Death Certificates

Request approximately fifteen certified copies of the departed person’s death certificate. The funeral home can help with this request or they can be obtained through the county office, which keeps a filing of marriage, birth and death certificates. These will be necessary in order to change deeds, names on bank accounts and other investments, and to collect any insurance monies.

Look for additional insurance policies

Call all of the credit card companies and banks that the departed held accounts with and inquire as to whether or not the person had any insurance policies with them. Often, companies offer insurance at a minimal cost and it is not uncommon for people to sign up for these on a whim. Loved ones are sometimes surprised to find out that their spouse had additional coverage through one of these means.

Contact credit card companies

If credit cards were held jointly, it is important to notify each credit card company of the spouse’s recent death. Be prepared that some companies will lower the credit limit on the card they offer, particularly in cases where the limit was based on the income of the deceased spouse.

Before paying credit card debt

If there is a balance remaining on credit cards that was created by the deceased spouse, it is best to speak to an executor or an attorney before paying these cards off. Often, debt matters are handled through what is called a probate court, which creates a schedule for paying remaining debts out of any monies that belong to the deceased person’s estate. There is no guarantee that matters will be handled this way, but as a precaution, it is best to speak to a professional first.

Update a will or trust

Keep in mind that the surviving spouse’s trust or will also may need to be changed. This is especially true if the living spouse intended to leave all of their assets to the spouse who has just departed. It is important to select a new beneficiary right away for things like life insurance policies, retirement plans and other investments.

When grieving, wealth education is empowering

Overall, the period of time immediately following the loss of a spouse is devastating. Amidst a sea of emotions, handling financial affairs can be a daunting task. This is a good time to lean on someone who is trustworthy and capable of helping with these matters. Always keep in mind that a personal loan or a cash advance is available to assist with immediate financial needs, which can make a world of difference when in the midst of such an upheaval. Finally, although the road ahead may seem difficult to navigate alone, it is not impossible. Although it is not the answer to every problem faced during a period of grief, a good financial education can empower a person to take the steps needed to begin rebuilding their future, once again.

Some consumers try to save emergency money by cutting back on insurance. Though it may be a seemingly logical way to bulk up savings, it is not always a good idea. The purpose of insurance is to protect you. It’s one of the few things you buy and hope you’ll never use. When disaster comes, it’s important to have insurance and have the right type and amount of coverage. Here are some tips on managing insurance.

Who needs insurance

The main purpose of insurance is to replace lost income or pay for needs your family will have if you are no longer around. It may be a morbid topic to consider your own demise, but with a family to protect it’s a necessary move. Some questions everyone, in particular a home’s breadwinner, should consider are:

• Do I need insurance?
• How much insurance do I need?
• What type of insurance should I get?

Taking a look at these questions is the best way to decide what your next move should be. Some people will find that after an assessment, they don’t need insurance. Owen Malcom, VP of Sanders Financial, said, “For someone young and single with no dependents, there is not a need for life insurance.” If, however, you have dependents or share a household, then insurance most likely is a necessity for your family to continue if you are out of the picture.

Finding the right insurance

The best way to find the right insurance is to shop around. The same way you would comparison shop for a car or a flat-screen TV, you should look at insurance. It is a good rule of thumb to talk to three insurance agents and explain your specific needs. If you feel pressured, rushed or guilted into buying more than you need, then leave. There are hundreds of reliable agents who will give you real-life and accurate estimates on what type and how much insurance you need.

When it comes to how much

The best way to figure out how much you need is to look at your situation. If you are the primary wage earner in the family then you have to replace your salary to accommodate your family’s needs if you are gone. You also may want to still have emergency money to provide for college education and mortgage payoffs. Also, it is a good idea to examine your tax situation. In the past, consumers held insurance policies so that estate taxes would not force the liquidation of their properties or assets. Talk with a tax professional to get a picture of what your tax situation would look like to your family if you were out of the picture.

How much insurance to get

When it comes to how much insurance needed, ask yourself “How much would my family need per year if I was not around?” Then figure out how much it would take to bring in that amount with a 5% interest hike every year. Be sure to consider extra family-specific financial goals. For example, if you want to pay off a $300,000 mortgage and still have $100,000 to pay for a child’s college education, it means you should have a policy with a face value of $1.4 million. It is important to set your goals and know what they are when calculating insurance need. Add up anything you want to have financial provisions for and allot for it in your life insurance estimate.

The future with insurance

Insurance is a great way to safeguard your family against financial disaster. If you know what your goals are, you can provide the emergency money needed for your family to pay off a house, maintain a family’s lifestyles, pay for college, provide for disabled loved ones and pay for any other after-care expenses. It’s important to look at your individual situation and find the right insurance product with the right amount of coverage.

Need emergency money? Apply HERE!

Don't let the stormy economy wash away your credit.

Payday loans could save you from the horrible economic environment that we currently live in. The economic crisis is affecting every single one of us, including many major businesses.

It was once thought impossible for high-end shops and even banks to get themselves into difficulty. However, this recent crisis has taken its toll on everybody in the economy. Even the large incumbent businesses are starting to feel the downturn that the economy is experiencing.

Credit Score

Your credit score is a very important number calculated by the credit scoring agencies. This number is calculated depending on the amount of credit you have available to you, the amount you have borrowed and most importantly your risk.

They determine risk by looking at how many times you have been late making payments or received default notices. It’s vital that you understand your credit score because it has a lot of implications for the whole of your life. If you want to live life to the fullest, it’s important that you maintain a good credit score.

Borrowing money

Thanks to the crisis, banks are much less likely to hand out money to people. That’s why it is so important to find a way to protect your payment history.

Credit scores are more important than they have ever been, and they are used for much more than borrowing money. Even if you’re not borrowing money, it’s still important that your credit score is good because it affects other aspects of your life.

Employment

Your credit score will also be used by employers to decide whether or not to employ you. With there being so few jobs around, it is vital that you cling onto your credit score with all your life.

That’s where payday loans come in, when you use one of these short term loans you will be able to make ends meet without incurring financial penalties.

Utilities

Your credit score will also be used to determine whether or not utility companies want to provide services to you. This is especially important if you are considering taking out a mobile phone contract.

Your credit score will always be used to determine your risk, which is why it’s so important. Short term loans can be a real help with this issue.

Insurance

When you take out insurance policies, the insurance company may use your credit score to assess your risk. This means that by using short term loans now you will be able to protect your credit score and pay less on your insurance in the future.

Easy

Using short term loans is really easy because you can apply online without having to visit any offices or hit the streets looking for money. They are also short term loans, which means you can repay them once you get paid so there’s no need to worry about interest rates. These loans are much easier to understand.

Applying

One of the nicest things about short term loans is that they are much easier to apply for than a normal personal loan. Because they are a shorter term, the costs are fixed, which makes budgeting for them much easier.

You can use a payday loan to save your credit history because they will prevent you from going overdrawn at your bank. Payday loans will give you the money that you need to survive without annoying your bank or adversely affecting your credit score.

Image courtesy of All American Auto Insurance

While this summer isn’t seeing the frighteningly high gas prices we were dealing with just a year ago, much of the country is unseasonably warm, and those who don’t feel like their air conditioning bills eating away their income are just as likely to be pinching pennies for other reasons. You may not be able to control the weather, but one thing you can control is how much you pay for auto insurance.

5 Ways to save money

Whether you’re shopping for a brand new policy or considering a change in companies when your renewal is due, here are five ways you can save money when shopping for auto insurance rates:

1. Have a Clean Driving Record. It may seem obvious, but if you haven’t racked up any tickets or been in any accidents in the past three-to-five years, you can save a significant amount of money on your auto insurance premium. As a renewal customer, you may be eligible for an automatic drop in rates as your clean driving record lengthens. As a new customer, you’ll qualify for lower rates from the start.
2. Consider a Higher Deductible. The size of your premium is inversely proportional to the size of your deductible. What that means, is that a higher deductible gives you a lower premium. How much lower? Well, increasing what you pay out of pocket from $200 to $500 could net you a 30% savings, and if you go all the way to $1,000, you could be shrinking that premium by more than 40%. Of course, you should never agree to a deductible that is more than you can comfortably pay should you file a claim.
3. Consider What You Drive. Many people don’t realize this, but what you drive absolutely impacts your insurance premiums. For example: if you have an older, paid for car, you may want to reduce or eliminate comprehensive and/or collision coverage. On the other hand, if you have a newer car that is still under a lease or loan agreement, you’ll need to have full coverage but you’ll likely be eligible for discounts if you have modern safety features like anti-lock brakes, a full complement of airbags, and an anti-theft device.
4. Bundle Your Home and Auto. If you look to one company to carry both your auto and homeowners insurance, you’ll save around five percent with most insurers – some offer even more. You can increase that savings if you also add a life insurance policy to the mix.
5. Discounts, Discounts, Discounts. The key to really saving money on insurance is to ask about discounts. Some of the most common include:
   • Low mileage – if you drive less than 14,000 (in some cases, 10,000) miles a year
   • Good grades – if you or your son or daughter is a full-time student under the age of twenty five, with a B-average or better, you can save up to 15%
   • Defensive driving – if you take a class, and it’s NOT to erase a ticket, you can get a discount of 5-10% that lasts up to three years (at which point you are usually free to take the class again).
   • Mature driver – If you are over fifty, you may qualify for a discount.
   • Hybrid cars – some insurers offer discounts for hybrids, to help offset the generally higher cost those cars incur.

And still more savings

While these are just a few of the ways you can save money while shopping for insurance rates, you should always shop early, and shop around. Some insurers offer a discount if you buy a new policy with them before your old policy is in danger of expiring, and all insurers have slightly different rates and discounts. Always make sure you ask questions, and always get your quote in writing.

Children’s Place kids clothing retailer has agreed to pay $12 million to settle a class-action lawsuit against the company. Reuters reports that the lawsuit accused “its officers of misrepresenting facts about operations that caused the company’s stock to artificially inflate.”

Though the company has agreed to pay the $12 million, it denies that it has committed any wrongdoing. Reuters reports:

The company said it denied all allegations made in the suit and decided to settle the suit to eliminate further litigation and related expenses.

The children’s clothing retailer said the cost of the settlement would be covered by insurance.

Wow, good thing they had that lawsuit insurance. I wish I had some kind of insurance to pay off all my personal loans.

More drama at Children’s Place

Apparently business at Children’s Place has been shaky for quite some time. The Wall Street Journal reports:

Since taking the reins of Children’s Place in 2007, Mr. Crovitz has been aggressively cutting costs to maintain profitability in a difficult retail environment. Selling, general and administrative expenses fell to 29% of sales in fiscal 2008 from 32% in fiscal 2007. For its most recent quarter, the retailer posted a profit of $23.5 million, up from $19.5 million a year earlier. The company’s shares have risen 17% since Mr. Dabah resigned in September 2007.

The WSJ also reports that Dabah resigned at the request of the previous board because he failed to report an increase in his wife’s stock.

Battle on the board

The Wall Street Journal on June 19 reported the details of the struggle going on between Dabah and Crovitz:

In the six-page letter, accompanied by a gold proxy card, Mr. Dabah criticized the current directors for the company’s recent sales performance, said he was concerned about the company’s failure to plan for the future and pointed to “the promising children’s footwear concept, which has largely been abandoned.” Mr. Dabah … has nominated three executives for positions on the board of the Secaucus, N.J., children’s apparel seller.

In an interview, Mr. Dabah said, “A company cannot be successful — especially a company like ours — just on cost cutting. We need vision, we need growth initiatives, we need to constantly be thinking about what’s next. And we have not seen the company articulate that.”

The company’s annual meeting was scheduled for July 31, but that date is a bit shaky now that the lawsuit settlement has been announced.

Get to know the Children’s Place

The Children’s Place has been a publicly traded company since 2007. However, the retailer has been selling children’s clothing since several years before that. The company also owned some Disney stores from 2004 to 2007. On March 26, 2008, Hoop Holdings/Hoop Retail Stores LLC and related subsidiaries of TCP that operated Children’s Place and Disney Store retail locations filed a voluntarily petition for relief under Chapter 11 Bankruptcy.

The Children’s Place stores are usually located in regional malls. The stores sell clothing for newborns through preteens, as well as accessories and a limited selection of toys and games. It doesn’t appear the lawsuit settlement will affect daily store operations.