When you go into business with other people, it’s important to stop and think about what might happen in the event that you or one of your partners passes away. It’s one thing to start and run a small business with a particular person that you know and trust, but it’s another matter entirely to find yourself owning and operating a business with one of your partner’s heirs in the event of his or her death. However, if one of your partners dies and you haven’t done proper succession planning (a legally binding agreement about what will happen with his or her stock shares), that’s exactly the situation you’ll face.

That’s why it’s so important to have solid, sound buy-sell agreements in place as soon as you take on a business partner. When you go into business, you’ll want to draft a legally binding document that specifies exactly what the partners can and cannot do with their stock. If the partners agree that stock should not be assigned to heirs, the agreement will stipulate that the corporation will buy back outstanding shares in the event of an owner’s death.

Of course, it’s important to have a guaranteed source of funding, so you won’t have any problem buying back your partner’s stock from the estate should the agreement need to be enacted. That’s why business partners and life insurance for business owners go hand in hand. It’s important to take out a key person insurance policy on each of your company’s partners. With proper life insurance in place, there will be no worries about how to enact the buy-sell agreement should the need arise.

Key Person Insurance

When you go into business with partners, you and your co-investors are very dependent on each other — in terms of both finance and a shared workload. Whether your company is just starting or you’ve been in business for years, it’s important to make sound decisions about business partners and life insurance. When you take out key person life insurance policies on each partner, the company will receive a lump sum life insurance payment in the event that one of the covered individuals dies.

Original article: Succession Planning for your Business

©2013 LifeInsure.com. All Rights Reserved.

Another report, written by a group at Tufts University in Massachusetts, alleged similar results – that most choices from small restaurants contain more than 2,000 calories, which is the daily caloric intake encouraged by the U.S. government to maintain a healthy body weight. By analyzing 157 menu choices in the Boston area, the Tufts researchers concluded that the average person would receive a day's worth of calories in a single sitting if they selected any of the options tested. Similar findings were noted in the Toronto area in terms of calories.

Salt levels were also very high in the majority of restaurant meals in both Boston and Toronto, accounting for an average of 151 percent of a person's suggested daily intake. Interestingly, local or small-chain establishments generally served meals with more salts and calories than nationally branded restaurants, the twin studies found.

"In all of the meal categories there are huge ranges in calories, sodium and fats," Mary Scourboutakos, the lead author of the Toronto study, said in a statement. "You really don't know [how to avoid these higher levels] unless there is calories labeling or sodium labeling. There is no way to predict which meals are going to be the worst."

Folks who are actively trying to avoid unhealthy food should scrutinize their choices at restaurants, as excessive salt and calories can lead to obesity, a condition which is a serious risk factor for a number of chronic diseases. However, it's always helpful to be prepared for the future, which includes a life insurance policy that can protect your loved ones financially should you pass away. To learn more, visit InstantQuoteLifeInsurance.com today and fill out an online life insurance application. 

Original article: Most restaurant meals contain more salt, fats than previously thought

©2013 LifeInsure.com. All Rights Reserved.

What I’m talking about here is the salary a mother should receive…if she were actually getting paid for being a Mom and taking care of the home.  From a life insurance perspective, the jobs Mom does around the home would need to be done if she were to pass away, so the surviving spouse would have to hire a person or people to wear all the hats Mom wore.  The proceeds from a life insurance policy would go toward paying the person(s) who do those jobs.

So what is a Mom worth?  According to the 2013 survey done by Salary.com, the average salary for a stay-at-home Mom, based on the her “jobs” and hours worked (94 hours on average), should be $113,586.  Mom’s who work outside the home would be earning $67,436 annually for her in-home work (an average of 58 hours)…on top of the salary she’s earning outside the home.  Either way, Mom is working an average of two full-time  jobs.

Salary.com has put together a Mom’s Salary Wizard to calculate Mom’s salary and create a “Mom Paycheck” for Mother’s Day.  I’d say, based on these statistics, that it would be a great idea to show your appreciation to your mother and/or wife this Mother’s Day.  As you can see – she clearly deserves it.

You also might want to look into getting some life insurance quotes for your wife on this website and tell her, while she can never be replaced, if something should happen to her, the family would be able to maintain the lifestyle she works so hard to create.

Happy Mother’s Day to all your beautiful Mothers everywhere.

Original article: Mother’s Day Question – What’s a Mother Worth?

©2013 LifeInsure.com. All Rights Reserved.

What I do want to address, however, is how to prevent this from happening.  The first way is to designate your beneficiary wisely.  The purpose of a well-drafted beneficiary designation for a life insurance policy is to provide information that will allow both:

• A clear identification of the beneficiaries; and; 
• Fulfillment of your intent with respect to how the death benefit will be paid.

And to make sure your beneficiaries won’t suffer the fate of the unclaimed benefits mentioned  above, a clear, concise designation allows the insurance company to pay the claim settlement quicker than a designation that leaves room for interpretation.

It’s important that the beneficiary designation coordinate with your overall estate plan. Keep in mind that beneficiary designations usually supersede instructions in a Will as to how the benefit is to be distributed.

Bear in mind that major life changes might occur, such as the birth of a child, a divorce, the death of a beneficiary that could affect your original intent. This is why it is important to review beneficiary designations regularly with your agent/broker, hopefully in an annual policy review, and make sure they are still appropriate.

Remember the following tips for naming beneficiaries:

• Include both the name and identifying information of the beneficiary, such as their relationship, last four digits of their social security number, date of birth and address. Some states require that the life insurance companies also ask for this information when making changes to the beneficiaries. There is a great deal of scrutiny insurance companies are facing for their ability to “find” beneficiaries of life insurance policies.
• When naming multiple beneficiaries and their shares are unequal, use percentages or fractions. Do not use dollar amounts.
• Children may be named individually or a part of a class. For example, “All children of the insured living at the time of the insured’s death, equally or to the survivors.” Make sure the designation allows for adopted children or stepchildren, if appropriate.
• When naming a trust, provide the full name of the trust, the date the trust was enacted, including month, day and year and the name of the current trustee(s). A full copy of the trust document will be requested at the time of the change.

So, name your beneficiaries wisely to ensure that life insurance  policy you purchase will serve the purpose you intended – to pay a benefit to those you leave behind.

Original article: Name your Beneficiary Wisely

©2013 LifeInsure.com. All Rights Reserved.

Perhaps that’s a topic for another post, but his comments definitely got my attention enough to look into how the public felt, in general, about insurance salespeople.  I immediately found a survey done by the Gallup Organization on how people rate the honesty of various professions, including insurance salespeople.  As I have always taken pride in my honest approach with clients, I must say the response to my profession surprised me.

 As you can see on the chart below, the poll results showed that insurance salespeople didn’t fare very well:

Well, at least we’re trusted more than Senators and HMO managers.  But less than lawyers?  How can that be?  Nobody is trusted less than lawyers – okay, maybe car salespeople and members of congress, but not life insurance salespeople.  How can this be?  Bankers are rated higher?  Don’t people remember the debacle in 2009?  I know AIG was partially responsible for the start of the Great Recession, but the Banks were the real bad guys in that story.  How can people trust them more than insurance salespeople?

All kidding aside, I think the insurance industry is suffering from an image problem.  I think the industry, specifically the life insurance companies needs to work hard to improve its image.  First, it must set very high standards of ethics for its salespeople and institute and enforce penalties to those who don’t adhere.  I have to take an Ethics course every two years to renew my licenses, but is that really enough?

The states’ insurance commissioners have a rough time of enforcing product suitability standards, but most instances of enforcement I have seen have been related to sales of insurance products to senior citizens.  I think all agents/brokers should be tested regularly on the suitability of all the products they sell (i.e., who is the right/wrong client for those products?).  I have spoken to too many prospective clients who have been sold the wrong type of policy for their specific needs.  This often happens when insurance companies and marketing organizations push certain product with higher commissions or other rewards (such as trips), wile often disregarding the needs of the client.

I love what I do for a living because I get the opportunity to help people in so many ways.  Yet, if I’m at a social gathering and tell someone what I do for a living, I see a lot of glassed-over eyes and excuses to leave the conversation.  The Gallup Poll above explains why that happens.

Most folks I have met who do what I do for a living seem to be honest and ethical people.  As is usually the case, a few bad apples have ruined the reputations of the majority.  It is the majority’s mission, should they choose to accept it, to clean up  our image, which was sullied by the few.  I accept the challenge and know that other like-minded insurance salespeople will follow suit.

Then, maybe I can tell someone what I do for a living without them heading for the hills.

Original article: Life Insurance Salespeople and Trust

©2013 LifeInsure.com. All Rights Reserved.

Survey respondents were asked to estimate the cost of a $250,000 20 year term policy for a healthy 30-year old man.  The actual cost is about $150 annually, but the average estimate was about $400.  Younger adults overestimate the cost by about seven times.

According to the 2012 Insurance Barometer Study, while nearly a third of the respondents believed they needed more life insurance coverage (including about 50% that had no coverage), one of the reasons most frequently (83%) given for not making the purchase was the fact that it is just too expensive.  The number one reason (85%) given for not purchasing it was they had other priorities.

Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation said, “If someone offered to sell you a gallon of milk for $10.00, you would likely choose to spend your grocery budget on other necessities, knowing that the actual cost is closer to $3.50.  If people think that something is too pricey, they often won’t give it a second thought.  The fact is, the cost for basic term life insurance has fallen by about 50 percent over the past 10 years and has never been more affordable.  Owning life insurance is fundamental to a family’s financial security…”  He went on to urge the life insurance industry to do more to educate people about the true cost of protecting their loved ones.

Fast Forward to 2013

In this year’s study, a majority of respondents (85%) agree that most people need life insurance and 65% say they personally need it.  33% think they could use more coverage.  The study asked the respondents what the likelihood was of them purchasing life insurance in the next year and nearly half (45%) said there was some likelihood of them purchasing a policy within the next year.

“Life insurance has never been as inexpensive or easy to buy – especially with the anticipated growth of online and nontraditional purchasing channels – yet millions of consumers continue to put off the decision.”

If you are one of those considering a purchase of life insurance this year, check out the life insurance rates offered by highly-rated life insurance companies.

Original article: Do you Think Life Insurance Costs too Much?

©2013 LifeInsure.com. All Rights Reserved.

Unfortunately, even though same-sex marriage has been legalized in a number of states, this has no bearing on a couple’s ability to be fully financially intertwined in the way married, heterosexual couples are. Regulations pertaining to Social Security and taxes are managed at the level of the Federal Government, which means that until the Supreme Court rules same-sex marriage as constitutional, same-sex couples are stuck trying to find loopholes for the basic economic structures that married, heterosexual couples have come to depend on. Nevertheless, there are a few things that same-sex couples can do to ensure that their assets remain with their partners.

First, couples should make sure that their partner is listed as the primary beneficiary on any and all financial accounts. This means that all of these accounts will automatically pass to the surviving partner if one person dies. If an individual does not name a beneficiary, the state determines who receives the assets.

Second, when considering retirement options, same sex couples should analyze the options available in order to maximize either payouts or to find ways to provide a partner with as much of your earnings as possible.

When setting up a retirement plan with an employer, the best thing to do is to have a steady stream of retirement income. Another retirement option is to use a Roth IRA, instead of a traditional IRA, which is taxed differently during retirement and after its owner dies. As long as a partner is named as the primary beneficiary on a Roth IRA, Roth 401(k) or Roth 403(b), the money can go to a partner as tax-free earnings.

Finally, life insurance is another way to work around discriminatory Social Security policies. This is one of the best ways to make sure that a partner will have some assets upon the other’s death and it is a way to make up for the fact that partners in a same-sex couple will not receive spousal death benefits. Additionally, life insurance comes through as a tax-free income to the surviving partner. It is a good idea for same-sex couples to take out a larger policy in order to compensate for lost spousal benefits and tax breaks that heterosexual couples receive. Additionally, upon the death of a spouse, the surviving partner in a same-sex relationship may have more taxes and expenses to manage than a heterosexual person in a comparable situation.

Although it is extremely unfortunate and unfair that same-sex couples don’t receive the same financial benefits of heterosexual relationships, it is important to remain aware of the financial issues and be prepared for the worst so that a partner does not have to deal with not only the death of a spouse, but also a mountain of bills and a decreased standard of living. Hopefully soon, couples will receive all the same benefits that heterosexual couples do, but until that day comes, couples can use these techniques to make the best of a bad situation.

Angie Picardo is a writer at Nerdwallet, where you can find advice on financial topics from health insurance benefits to predicting to travel tips from our blog TravelNerd.com. 

Original article: How Life Insurance Can Benefit Same-Sex Couples

©2013 LifeInsure.com. All Rights Reserved.

The article covered the 2013 Insurance Barometer Study, which was conducted by two industry organizations, LIMRA and the LIFE Foundation.  The study is based on a consumer survey which reflects consumers’ attitudes about life insurance, their buying preferences and perceptions about the life insurance industry.   Also, for the first time, consumers were asked about their interest in purchasing life insurance from non-traditional distribution channels, such as warehouse club store, like Costco and Sam’s Club or superstores like Target or Wal-Mart.

While the percentage of people willing to buy life insurance from one of these outlets is rather small  (7%), their reasons for their willingness seems to represent a general misunderstanding as to what the life insurance purchase process typically entails.  The reasons given for their willingness were:  ”reasonable cost” (63%), “simple process” (44%), “convenient” (43%) and “no pressure to buy” (42%).

In looking at these answers, other than “reasonable cost,” it appears that the answers could have been given for the question, “would you consider purchasing life insurance online?”  I would like to address each one of these points:

• Reasonable cost:  While stores like Costco might be able to save you money on toilet paper or baked beans, the price of a particular life insurance policy is the same, no matter who you purchase it from.  The rates are set with each State’s insurance commissioner and are not subject to negotiation.  Even if they could be changed, I don’t think the insurance companies would risk offending their traditional distribution channels to do so.
• Simple process:  An application must be completed and, in most cases, a medical exam needs to be done.  Many online life insurance brokers, such as LifeInsure.com, have streamlined their processes to make the process as convenient as possible.  Applications can be completed on some companies’ websites or via email and/or phone.
• Convenient:  The big box stores would not be able to offer the convenience of  completing the process in the comfort (and privacy) of one’s home.  Compare that to waiting in line at Costco or Wal-Mart.  I rest my case.
• No pressure to buy:  You won’t find less pressure than dealing with online brokers, such as this one or InstantQuoteLifeInsurance.com.  On these sites, and a few others, you can get quotes for multiple policies without ever submitting your contact information.  If you can’t be contacted, how can you be pressured?  Only when you decide to purchase one of the quoted policies will you need to submit your contact information.

In LIMRA’s survey, I noticed that there weren’t any answers that indicated the respondents would purchase a policy in one of these outlets because of the choices of companies offered.  I understand that MetLife has been selling policies directly to consumers at Wal-Mart, which is great for MetLife, but if the consumer could have purchased a less expensive policy from another life insurance company, they weren’t notified of that at the time of sale.  On most reputable life insurance websites, the consumer can choose a policy from multiple highly-rated companies.

So, while I can recommend purchasing your bulk household items at one of these outlets, when it comes to purchasing a life insurance policy, do so online or through a local independent agent, if you prefer a face-to-face meeting.

Original article: Toilet Paper, Baked Beans and Life Insurance

©2013 LifeInsure.com. All Rights Reserved.

When I got to work this morning, I decided to do a little research on Google to see if this “untruth” was duplicated by other companies.  Not only was this statement used by several companies, but I found other statements that were also misrepresentations.  Not knowing the intentions of those writing these fictitious statements, I will give them the benefit of the doubt and suggest that they are either misinformed or not editing what others might have written.

Here are some of the offending statements, starting with the one I heard on the radio:

• Save up to 70% on Life Insurance.
  This is one I see on a lot of websites, in this exact language.  I believe this one has been around since the beginning of term life insurance sales on the Internet and was actually true at the time.  Term life insurance rates dropped significantly between the mid-90′s and the early part of the following decade so, yes, you are saving 70% from 1995 prices.  However, someone reading (or hearing this statement might be misled into believing that this company’s rates are 70% lower than most recent prices or those of other companies.   There are few variations of this one, including:
  
   
• Call now and save up to 70% on your term life policy compared to the same coverage from other carriers.
  Because of the competitive nature of the business,  when you compare term life insurance quotes online, you will find that there is only a slight difference in price for the same coverage from different carriers.  You would be hard-pressed to find a quote that was 70% less than most others presented.
   
• On average, you’ll save over 25% on your life insurance.
  Seriously?  25% from what?  Compared to other websites or brokers, from the same coverage from other carriers, as suggested above?
   
• Save up to 75% when you buy online term life insurance
  Wow, this is even better than 70%.  It also suggests that buying term life insurance online will save you money, I’m assuming from the cost of buying from a bricks and mortar establishment.   The truth is, while buying online might be more convenient, it is not less expensive than buying it from your local agent who represents many insurance companies.
   
• Save up to 80% when you compare.
  A variation on the same theme, but misleading nonetheless.  I would have to ask, “80% from what?”  How much would I save if I didn’t compare?
   
• Apply online and save hundreds.
  Depending on the cost, this could be 25%, 70% or 80%.  I think I’ll take my chances and go with the 80% savings, since that seems better.    However, I don’t have to compare to get these savings.  What’s a life insurance buyer to do?

Here are a few more of my favorites: 

• We only quote guaranteed rates from highly rated insurance companies.
  I can cut this one some slack, as they probably mean that they only quote premiums that are guaranteed for the length of the term period.  However, to an uninformed eye, it appears that the quoted rates are guaranteed, which is not possible.  Quotes are estimates, at best, and might differ from the rates the insurance company presents upon the completion of underwriting.
   
• Barring complicating factors, the final premium should be the same as your quote.
  This is quite a bold statement, as it stops just short of guaranteed rates.  Again, quotes are an estimate and statements like this are an exaggeration of the truth.

• Historically low term life insurance rates or Rates are at an all-time low.
   As I mentioned earlier, while these statements might have been true at one time, they are now false statements.  Rates for term life insurance have been slowly increasing over the past few years, due to regulations requiring life insurance companies to reserve more capital for each policy they sell.  As a result, companies have either increased premiums  or, stopped selling some policies (as in the case of some 30 year term policies). 

I have not mentioned the names of companies making these statements, as I don’t believe most of them are intentionally trying to mislead the public.  However, I hope some of them read this post and recognize one of the blurbs above as their own and, consequently clean up the language that does mislead.

Original article: Life Insurance Advertisements – Truth or Fiction?

©2013 LifeInsure.com. All Rights Reserved.

As a life insurance broker, I am aware that premiums for life insurance for men are more expensive than for women.  I am also aware that women live longer than men.  However, these facts presented by United Health indicate that  we. as men, are more responsible for this discrepancy than I had thought:

• FACT:  In the U.S., men live, on average, about seven years less than women.  Part of this life span difference is due to the fact that men are 24 percent less likely than women to have visited a doctor within the pas year, and are 22 percent more likely to have neglected their cholesterol tests.
  “My past experience in the emergency room taught me that there’s a tendency for men to deny their symptoms,” says Dr. Arthur Puff, a board-certified emergency room physician and a medical director at  United Healthcare, and an expert on men’t health issues and treatment.  ”It’s common for men to ignore things – what you might call the John Wayne syndrome.  After a certain point, many men believe that a doctor won’t help them, and they grow comfortable with living in denial.”
• FACT:  Men are half as likely to go to the doctor for preventive care as women.
  Preventing disease and detecting health issues at an early stage are important to living a healthy life.  A preventive health visit can help you establish the baseline for your current health, and help identify any health issues before they become more serious.  Working with your doctor can help you determine the preventive care services that may be right for you.  For men especially, establishing a preventive health game plan may help you take the steps to maintain and improve your health, as well as help you on your path to reaching your health and wellness goals.
• FACT:  Among men, heart disease, cancer, stroke and diabetes account for nearly 60 percent of all deaths.  Men are also 28 percent more likely than women to be hospitalized for congestive heart failure, 32 percent more likely to be hospitalized for disability and twice as likely to have a leg or foot amputated due to complications related to diabetes.
  Men who have avoided going to the doctor for most of their life often say they aren’t certain where to start the process.  It turns out it’s easier than you think.  ”Have a conversation with your doctor, and make sure to discuss screening for the five most important areas:  your blood pressure, weight and cholesterol, as well as your risk of diabetes and cancer,” says Puff.  you can get most screenings, such as blood pressure readings, done right in your doctor’s office.  For screening tests without immediate results, ask when you will see the results so you can talk with your doctor about the steps you can take to help reach your health and wellness goals.

I’m not a physician, but I can tell you as a life insurance broker, that if you follow some of this advice, you might very well see lower life insurance rates.

Original article: Men’s Health – Time to Man up

©2013 LifeInsure.com. All Rights Reserved.