The latest Ernst & Young Insurance index shows that life insurance confidence remained at the maximum level in the fourth quarter of 2007. This strong confidence was measured despite slower premium and investment income growth. Even so, despite the tapering off in growth, both categories of income remain nevertheless, strong.
This is the 18th quarterly survey conducted to measure confidence in the life insurance industry. Life insurance confidence leads that of the banking industry (96 points), and investment management confidence (98 index points).
Comments Tim Rutherford (Pictured right), insurance industry spokesperson at Ernst & Young; ‘The perception of an industry under siege has passed. Life insurers fared well in 2007, and we expect the reporting season for the year to be solid. The interim results for the half-year to June were already buoyant, and indications are that operations were generally in better shape in the second half of 2007 for most life insurers.’
Continues Tim Rutherford, ‘ Investment income remained strong in the fourth quarter. This is despite more volatile equity markets, and is reflective of strong investment income stemming from commercial and retail property rentals, higher interest income earnings, and other realisations on investments.’
‘However’, cautions Rutherford, ‘ Life insurers are not expecting the strong investment returns to hold into 2008. The outlook is that investment income will contract in the first quarter of the year, and although they have proved to be pessimistic about investment income earnings, it is most likely that investment income growth will at least taper sharply downwards in the quarters ahead.’
Also supporting higher confidence is:
* an improvement in lapse rates,
* continued improvements in efficiencies,
* a stemming in outflows from the life book, and
* improving risk profitability business.
Comments Tim Rutherford again, ‘ Operationally, the life insurers have been working at improving their processes and ways of conducting business. This has happened over a number of years, and is an ongoing exercise. I think we are starting to see the benefits from those projects paying off."
"Life insurers have not been alone as far as restructuring their businesses, but they probably felt the pressure more readily than most other industries. A few years back, they faced a contracting life book, squeezed profitability on the remaining business, and increasing costs of doing business.’
Continues Rutherford, ‘ It appears that the life book is at the very least not contracting any longer, with growth in inflows exceeding that of outflows for the last three quarters. Whilst it is too early to draw any definite conclusions, it appears that the life book is at least holding stable, after contracting considerably in 2003 and 2004, and more moderately into 2005 and 2006.’
Other findings include a fall in the lapse rate. The overall trend is one of improvement made in reducing lapse rates. Says Rutherford again, ‘ This is one of the areas where life insurers have placed a lot of emphasis on improving. In the past, rising premium income was often offset by sharply increasing lapse rates. Considerable effort has been made to ensure that a larger portion of new premium income was retained by reducing lapses post the sale.
Efficiencies have consistently improved over the last few years, despite higher employee numbers. Rutherford points out that it has been necessary to grow employee numbers to cope with higher capacity requirements.
However, he adds that unlike the banking and investment management sectors, employee growth trends at life insurers have been more erratic. This is most probably due to the aforementioned restructuring of business processes and operations that the industry has experienced.
Concludes Rutherford; ‘In line with the other financial services sectors, life insurance industry confidence remains high. In fact, life insurance confidence is the highest of all the financial services sectors. Life insurers are not as prone to interest rate increases and volatile equity markets as immediately as their banking and investment management peers, respectively are."
"However, slower consumer expenditure is likely to ultimately impact the retail side of their business, particularly in new market segments, where life insurers are playing more and more. For the moment, however, they are benefiting from business restructuring and process re-design. Despite slower profits and premium growth, both remain at high levels.‘
sourcehttp://www.itinews.co.za/companyview.aspx?cocategoryid=89&companyid=21727&itemid=05318001-1E07-416D-88AB-C624CBC66031
Sunday, January 27, 2008
Saturday, January 26, 2008
Credit Cards May Help With 'Life Events'
The two banks, along with some others, are more than happy to help defray some of the cost of your wedding, having a baby, moving, retiring, losing your job, or even a nasty divorce.
Yep, this is your chance to take advantage of one of these banks, just as they did when you were one hour late in making a credit card payment.Now before you ask my editors when they last had me take a drug test, what I am telling you is absolutely true.
But, before you even think about picking up the phone and signing up, you MUST DO EVERYTHING I TELL YOU. Banks and credit card companies that offer debt cancellation or debt deferment plans will make tons of money off you if you fail to dot one "i."
Now, once in a while I like to play with fire. If you don't have the stomach for it, just enjoy reading this column without taking any action. Live vicariously.
And before taking action, there are two musts. First you need to have, and be VERY familiar, with online banking to keep instantaneous track of your account and be able to make immediate payments. Second, you must READ EVERY WORD in the credit card company's offer. Yes, that includes all the fine print.
So far, these plans have pretty much flown under the public radar. They were originally geared mostly to provide a sort of insurance in case of death, disability, identity theft, and involuntary loss of your job.
My focus is on the more recent features. Neither Consumer Reports editor Charles Fields, nor Justin McHenry, research director of IndexCredit Cards.com, had heard of the "life event" features.
They both cautioned consumers not to take these plans for death and disability benefits because the cost tends to outweigh the benefit. And McHenry, while intrigued with my experience, warned that it's not for average consumers who aren't willing to keep close track of their finances.
To explain how it works, I will tell you my experience. About two weeks before my October wedding, while checking on the status of my Bank of America credit card, the service representative suggested I enroll in its Credit Protection Plus plan.
I asked why I should be interested, as I already have life insurance. She said the plan has many other features, including paying benefits if I get married. Those were the magic words.
So let me get this straight, I said. If I enroll in this plan tonight, and I get married in the next two weeks, Bank of America will make three of my minimum payments on my credit card? And all it costs me is a one-time fee of 95 cents for each $100 of my balance? Yes, she replied.
And, I asked, I can then cancel and not have to pay another fee. Yes, she replied. The fee, if I don't cancel, would then be tacked onto my bill each month, increasing my balance.
Since I was carrying a high-balance, low-interest introductory loan (the maximum the policy covers is $25,000), I quickly calculated that the bank would be paying me about $500 a month in return for less than $250 from me.
I told her to sign me up. I then checked with Chase, where I also have a sizable low-interest credit card loan (did I mention I like to play with fire?), and was told they have a similar, but less generous plan. Chase would waive up to five months of minimum payments, saving me substantial interest, in return for my taking out its plan at 89 cents per $100. Sign me up, I said.
After our wedding, I immediately notified both banks that I wanted to trigger the benefits. They both promised to send me a packet and told me I would have to get proof of marriage.
I mailed the applications and marriage certificates to both banks and waited, while my stomach turned a little as I wondered if I had done something stupid. It would not be the first time.
I consoled myself knowing I would at least get a column out of the experience. I had some doubts, though, that the bean counters in our Chicago headquarters would approve my expenses if I included the payments I had made to purchase the plans.
The first things to appear on my online bank statements were, of course, the charges from the two plans.
source:http://www.courant.com/business/hc-watchdog0127.artjan27,0,2336411.column
Yep, this is your chance to take advantage of one of these banks, just as they did when you were one hour late in making a credit card payment.Now before you ask my editors when they last had me take a drug test, what I am telling you is absolutely true.
But, before you even think about picking up the phone and signing up, you MUST DO EVERYTHING I TELL YOU. Banks and credit card companies that offer debt cancellation or debt deferment plans will make tons of money off you if you fail to dot one "i."
Now, once in a while I like to play with fire. If you don't have the stomach for it, just enjoy reading this column without taking any action. Live vicariously.
And before taking action, there are two musts. First you need to have, and be VERY familiar, with online banking to keep instantaneous track of your account and be able to make immediate payments. Second, you must READ EVERY WORD in the credit card company's offer. Yes, that includes all the fine print.
So far, these plans have pretty much flown under the public radar. They were originally geared mostly to provide a sort of insurance in case of death, disability, identity theft, and involuntary loss of your job.
My focus is on the more recent features. Neither Consumer Reports editor Charles Fields, nor Justin McHenry, research director of IndexCredit Cards.com, had heard of the "life event" features.
They both cautioned consumers not to take these plans for death and disability benefits because the cost tends to outweigh the benefit. And McHenry, while intrigued with my experience, warned that it's not for average consumers who aren't willing to keep close track of their finances.
To explain how it works, I will tell you my experience. About two weeks before my October wedding, while checking on the status of my Bank of America credit card, the service representative suggested I enroll in its Credit Protection Plus plan.
I asked why I should be interested, as I already have life insurance. She said the plan has many other features, including paying benefits if I get married. Those were the magic words.
So let me get this straight, I said. If I enroll in this plan tonight, and I get married in the next two weeks, Bank of America will make three of my minimum payments on my credit card? And all it costs me is a one-time fee of 95 cents for each $100 of my balance? Yes, she replied.
And, I asked, I can then cancel and not have to pay another fee. Yes, she replied. The fee, if I don't cancel, would then be tacked onto my bill each month, increasing my balance.
Since I was carrying a high-balance, low-interest introductory loan (the maximum the policy covers is $25,000), I quickly calculated that the bank would be paying me about $500 a month in return for less than $250 from me.
I told her to sign me up. I then checked with Chase, where I also have a sizable low-interest credit card loan (did I mention I like to play with fire?), and was told they have a similar, but less generous plan. Chase would waive up to five months of minimum payments, saving me substantial interest, in return for my taking out its plan at 89 cents per $100. Sign me up, I said.
After our wedding, I immediately notified both banks that I wanted to trigger the benefits. They both promised to send me a packet and told me I would have to get proof of marriage.
I mailed the applications and marriage certificates to both banks and waited, while my stomach turned a little as I wondered if I had done something stupid. It would not be the first time.
I consoled myself knowing I would at least get a column out of the experience. I had some doubts, though, that the bean counters in our Chicago headquarters would approve my expenses if I included the payments I had made to purchase the plans.
The first things to appear on my online bank statements were, of course, the charges from the two plans.
source:http://www.courant.com/business/hc-watchdog0127.artjan27,0,2336411.column
Tuesday, January 22, 2008
Life insurance most important policy for consumers
Prudential has conducted research that reveals people would sooner relinquish non-essential goods/services such as mobile phone contracts before surrendering their payment protection or life insurance policies.
Recent fears regarding the credit crunch and rising energy and foods costs has led to people looking for ways to cut back, especially given the new worries about the prospect of a recession in the US.
According to seven out of ten of those surveyed, the first thing to go would be television subscriptions, followed by mobile phone contracts.
Only one in ten would give up their life insurance policy due to a tighter personal budget.
Over a third of respondents cited life insurance as their most important policy.
The second most important policy, ranked highest by a fifth of people, was income protection.
Sammy Rubin, PruProtect’s chief executive officer, explained that as the credit crunch continues and financial turbulence ensues some people will want to reduce their outgoings and look for areas to cut back on.
source:http://www.insurancedaily.co.uk/2008/01/22/life-insurance-most-important-policy-for-consumers/
Recent fears regarding the credit crunch and rising energy and foods costs has led to people looking for ways to cut back, especially given the new worries about the prospect of a recession in the US.
According to seven out of ten of those surveyed, the first thing to go would be television subscriptions, followed by mobile phone contracts.
Only one in ten would give up their life insurance policy due to a tighter personal budget.
Over a third of respondents cited life insurance as their most important policy.
The second most important policy, ranked highest by a fifth of people, was income protection.
Sammy Rubin, PruProtect’s chief executive officer, explained that as the credit crunch continues and financial turbulence ensues some people will want to reduce their outgoings and look for areas to cut back on.
source:http://www.insurancedaily.co.uk/2008/01/22/life-insurance-most-important-policy-for-consumers/
Monday, January 14, 2008
The Convenience of the Online Life Insurance Quote
If you are the breadwinner in the family or not one thing that you should be thinking about is a life insurance policy. What would happen to your family if you were to leave this world? How would your family survive. You need to make this one of your main priorities. Today with the internet access if is quite easy to find a policy online that will meet all of your needs. Online life insurance quotes are right at your fingertips, so take advantage of the opportunity.
If you were to shop around for a life insurance agent to have he or she help you find what you need, you may get pressured into something that you don't really need or want. With online life insurance quotes, there is no pressure. Shop at your convenience, with no pressure and no underwriter pushing you into something that you don't want.
Get Your Quote Online
Before you start looking for your online insurance quote, you need to get your information in order and there are some things that you need to think about before starting. There are a lot of companies out there that will help you find what they think that you need. Now some of these companies are good at figuring out what you need, by the way that you answer there questions. But there are a lot of companies who will just about sell you anything, whether you need it or not.
Assess Your Current Situation
One of the first things that you need to do before going online looking for coverage is to make an assessment of your finances are what your present situation is. One thing that you must realize is, even though you know that you need to get your family some assurance for yourself, it does mean that you have the spare income to make the payments. For people who are on a tight budget, the best policy for you would probably be a term life insurance policy. What you don't want to do is to get some policy that the price of the premium is to high. You don't want the insurance bill to just pile up on your desk and you know that you can't afford the policy, even though you know you need it. Term life insurance is the cheapest policy around. But make sure that is the one for you. Read the other articles that I have explaining what the differences are.
Don't become miserable after you purchase the policy because the premium is to big. Make sure you evaluate you situation before starting. Consider this before you start your search for online life insurance quote. The purpose of the policy is to get coverage for your family after your death. Know how much money they are going to need to life the life that they currently live. Make sure that you know this information. Bills, mortgage, rent, etc. should all be added up to determine this amount. In fact this should be the basis when asking for a quote online. How much does my family need to live comfortably after I have left this world.
Source:http://ezinearticles.com/?The-Convenience-of-the-Online-Life-Insurance-Quote&id=836029
If you were to shop around for a life insurance agent to have he or she help you find what you need, you may get pressured into something that you don't really need or want. With online life insurance quotes, there is no pressure. Shop at your convenience, with no pressure and no underwriter pushing you into something that you don't want.
Get Your Quote Online
Before you start looking for your online insurance quote, you need to get your information in order and there are some things that you need to think about before starting. There are a lot of companies out there that will help you find what they think that you need. Now some of these companies are good at figuring out what you need, by the way that you answer there questions. But there are a lot of companies who will just about sell you anything, whether you need it or not.
Assess Your Current Situation
One of the first things that you need to do before going online looking for coverage is to make an assessment of your finances are what your present situation is. One thing that you must realize is, even though you know that you need to get your family some assurance for yourself, it does mean that you have the spare income to make the payments. For people who are on a tight budget, the best policy for you would probably be a term life insurance policy. What you don't want to do is to get some policy that the price of the premium is to high. You don't want the insurance bill to just pile up on your desk and you know that you can't afford the policy, even though you know you need it. Term life insurance is the cheapest policy around. But make sure that is the one for you. Read the other articles that I have explaining what the differences are.
Don't become miserable after you purchase the policy because the premium is to big. Make sure you evaluate you situation before starting. Consider this before you start your search for online life insurance quote. The purpose of the policy is to get coverage for your family after your death. Know how much money they are going to need to life the life that they currently live. Make sure that you know this information. Bills, mortgage, rent, etc. should all be added up to determine this amount. In fact this should be the basis when asking for a quote online. How much does my family need to live comfortably after I have left this world.
Source:http://ezinearticles.com/?The-Convenience-of-the-Online-Life-Insurance-Quote&id=836029
Thursday, January 10, 2008
Insurance rates yet to catch up with reform
Just 32 homeowner's insurance companies have lowered their premiums to the standard imposed by the Florida Legislature last spring.
A presentation made to the Senate Banking and Insurance Committee by the Florida Office of Insurance Regulation shows those rates apply to 17.6 percent of the market -- or about 717,706 homeowners' policies. Those rates were cut by an average of nearly 22 percent, but exclude several companies -- including State Farm, the state's second-largest insurer behind the state-run Citizens Property Insurance Corp.
The report said no rate increases have been approved.
However, 24 companies still have final rate cuts pending, 31 have been disapproved or received notice of intent to disapprove and five have withdrawn their requests.
Some of the rejected insurers plan to refile. Others asked for an administrative hearing.
The companies with pending filings insure nearly 46 percent of the market, or 1.89 million policies, and proposed an average rate decrease of 11.1 percent. The companies with rejected filings cover 32.5 percent of the market, or 1.33 million policies, and requested an average 12.8 percent increase.
source:http://www.bizjournals.com/tampabay/stories/2008/01/07/daily36.html
A presentation made to the Senate Banking and Insurance Committee by the Florida Office of Insurance Regulation shows those rates apply to 17.6 percent of the market -- or about 717,706 homeowners' policies. Those rates were cut by an average of nearly 22 percent, but exclude several companies -- including State Farm, the state's second-largest insurer behind the state-run Citizens Property Insurance Corp.
The report said no rate increases have been approved.
However, 24 companies still have final rate cuts pending, 31 have been disapproved or received notice of intent to disapprove and five have withdrawn their requests.
Some of the rejected insurers plan to refile. Others asked for an administrative hearing.
The companies with pending filings insure nearly 46 percent of the market, or 1.89 million policies, and proposed an average rate decrease of 11.1 percent. The companies with rejected filings cover 32.5 percent of the market, or 1.33 million policies, and requested an average 12.8 percent increase.
source:http://www.bizjournals.com/tampabay/stories/2008/01/07/daily36.html
New rules aim to cut rejected insurance claims
Fewer insurance claims will be turned down from now on, after the insurance industry signed up to new rules.
Trade body the Association of British Insurers (ABI) said people would benefit from a new industry commitment to pay out on protection policies even where medical information has not been disclosed, unless the claimant deliberately withheld it.
Thousands of claims on critical illness, income protection and life insurance policies are rejected every year because holders have failed to give relevant medical information.
The ABI said, from now on, in cases where such information has inadvertently not been provided, insurers would pay out a "fair sum, reflecting risk and premiums paid".
In a small number of exceptional cases, premiums will be refunded if the insurer decides it would not have taken on the policy had it known the full facts.
Stephen Haddrill, the ABI's director-general, said: "Customers want to know that their insurance claim will always be assessed fairly and paid without fuss.
"The industry wants customers to be able to take out insurance with confidence.
"Today, insurers have signed up to ensuring both of these happen; the number of protection claims that are turned down will fall."
The new rules follow improvements in application forms and communications with customers, designed to cut the number of claims rejected due to "non-disclosure".
source:http://uk.reuters.com/article/personalFinanceNews/idUKHIL96088820080110
Trade body the Association of British Insurers (ABI) said people would benefit from a new industry commitment to pay out on protection policies even where medical information has not been disclosed, unless the claimant deliberately withheld it.
Thousands of claims on critical illness, income protection and life insurance policies are rejected every year because holders have failed to give relevant medical information.
The ABI said, from now on, in cases where such information has inadvertently not been provided, insurers would pay out a "fair sum, reflecting risk and premiums paid".
In a small number of exceptional cases, premiums will be refunded if the insurer decides it would not have taken on the policy had it known the full facts.
Stephen Haddrill, the ABI's director-general, said: "Customers want to know that their insurance claim will always be assessed fairly and paid without fuss.
"The industry wants customers to be able to take out insurance with confidence.
"Today, insurers have signed up to ensuring both of these happen; the number of protection claims that are turned down will fall."
The new rules follow improvements in application forms and communications with customers, designed to cut the number of claims rejected due to "non-disclosure".
source:http://uk.reuters.com/article/personalFinanceNews/idUKHIL96088820080110
Sunday, January 6, 2008
Which insurance product should you buy?
The life insurance industry has come a long way since 2000, when private companies were allowed in. Today, there are over 500 products (over 3,000 with customisation options), and 16 companies to choose from. So how do you pick the one that suits you best?
Typically, your needs would be any or all of protection, wealth accumulation, wealth maintenance and retirement. A few basic products meet these needs.
Pure Term Insurance. In this, an amount is paid out in the event of the death of the insured within a specific term, say 20 years. This is the most basic and cheapest life insurance.
Endowment Insurance. In this, an amount is paid out in the event of the death of the insured within a specific term, say 20 years. If the insured survives the policy term, an amount is also paid to him.
Whole Life Insurance. This is similar to endowment, except that the term is whole life.
Riders. These are options that can be taken along with the product you buy and provide protection against additional contingencies such as disability or dreaded diseases for a nominal extra charge.
So, how can these products help you plan for your needs?
Protection needs include protection against death, disability, and dreaded diseases. Products that are suitable for this need are term or whole life insurance with riders like critical illness, waiver of premium (WOP) or accidental death benefit (ADB). Wealth accumulation needs include saving for children's education, marriage and/or getting them settled. It also includes saving for one's retirement. Suitable products in this category are endowment, money back and whole-life plans.
Wealth maintenance need arises when you have accumulated some money and want to protect and grow it in a tax-favoured manner. Short-pay endowments, pensions, single premium policies or dump-ins cater to such a need.
Retirement need arises when an individual reaches a stage in life when he does not anticipate future inflows, but has to provide for a regular inflow out of the funds he has accumulated, without any worry. You could consider single pay/short pay pensions or immediate annuities for this. A flexible unit-linked endowment, structured with regular partial withdrawals could also be suitable.
Once you understand your need and the suitable products on offer, you have to decide whether to buy a unit-linked or a traditional policy. Traditional plans would generally have guarantees over the long term and, hence, are unique among financial products. Instead of working with projections or illustrations, you would have assured cash flows in your financial plan. Unit-linked plans are also an effective mechanism to plan for your financial freedom as they give you the option to decide where you want to invest your moneyequity or debt. However, they usually do not have any significant guarantee.
So, once you have decided on the need, the product and the mechanism, ensure the following before you sign on the dotted line:
1. Understand clearly how the suggested product fits your need.
2. Understand which part of the amount is guaranteed and which is not. This is required to be illustrated as per the regulator.
3. Do not accept illustrations based on historical returns of a fund; they do not guarantee future returns. The regulator has prescribed that the illustrations be shown at 6 per cent and 10 per cent annual rate of return and though, in reality, the return could be much more than this, it is best to use these figures as guides for your financial plan.
A.R. Rahman is one of my favourite composers because he knows when to use Daler Mehndi and when to use Yesudas. He goes by the need of the song and hence the melody has longevity. So, don't buy a cover because your neighbour, whose needs are different from yours, has bought it. Buy only according to your own need.
Source:http://inhome.rediff.com/money/2008/jan/03insure.htm
Typically, your needs would be any or all of protection, wealth accumulation, wealth maintenance and retirement. A few basic products meet these needs.
Pure Term Insurance. In this, an amount is paid out in the event of the death of the insured within a specific term, say 20 years. This is the most basic and cheapest life insurance.
Endowment Insurance. In this, an amount is paid out in the event of the death of the insured within a specific term, say 20 years. If the insured survives the policy term, an amount is also paid to him.
Whole Life Insurance. This is similar to endowment, except that the term is whole life.
Riders. These are options that can be taken along with the product you buy and provide protection against additional contingencies such as disability or dreaded diseases for a nominal extra charge.
So, how can these products help you plan for your needs?
Protection needs include protection against death, disability, and dreaded diseases. Products that are suitable for this need are term or whole life insurance with riders like critical illness, waiver of premium (WOP) or accidental death benefit (ADB). Wealth accumulation needs include saving for children's education, marriage and/or getting them settled. It also includes saving for one's retirement. Suitable products in this category are endowment, money back and whole-life plans.
Wealth maintenance need arises when you have accumulated some money and want to protect and grow it in a tax-favoured manner. Short-pay endowments, pensions, single premium policies or dump-ins cater to such a need.
Retirement need arises when an individual reaches a stage in life when he does not anticipate future inflows, but has to provide for a regular inflow out of the funds he has accumulated, without any worry. You could consider single pay/short pay pensions or immediate annuities for this. A flexible unit-linked endowment, structured with regular partial withdrawals could also be suitable.
Once you understand your need and the suitable products on offer, you have to decide whether to buy a unit-linked or a traditional policy. Traditional plans would generally have guarantees over the long term and, hence, are unique among financial products. Instead of working with projections or illustrations, you would have assured cash flows in your financial plan. Unit-linked plans are also an effective mechanism to plan for your financial freedom as they give you the option to decide where you want to invest your moneyequity or debt. However, they usually do not have any significant guarantee.
So, once you have decided on the need, the product and the mechanism, ensure the following before you sign on the dotted line:
1. Understand clearly how the suggested product fits your need.
2. Understand which part of the amount is guaranteed and which is not. This is required to be illustrated as per the regulator.
3. Do not accept illustrations based on historical returns of a fund; they do not guarantee future returns. The regulator has prescribed that the illustrations be shown at 6 per cent and 10 per cent annual rate of return and though, in reality, the return could be much more than this, it is best to use these figures as guides for your financial plan.
A.R. Rahman is one of my favourite composers because he knows when to use Daler Mehndi and when to use Yesudas. He goes by the need of the song and hence the melody has longevity. So, don't buy a cover because your neighbour, whose needs are different from yours, has bought it. Buy only according to your own need.
Source:http://inhome.rediff.com/money/2008/jan/03insure.htm
Life Insurance’s Split Annuities
Life insurance is not only a protection for your loved ones but also an investment. Annuities provide you with the possibility to obtain a source of income from a life insurance special contract by paying an insurance premium or premiums. That way within a single insurance policy the insurer protects himself by getting a possible source of funds in the event problems arise and his or her loved ones in case he or she dies.
A good example of a life insurance annuity contract uses would be: the taker pays a premium of $20,000 and in return at a certain date starts receiving $300 each month until he or she dies, $2000 for 15 years or death benefits if the insured dies prior the term of the annuity ends. Annuities have two well differenced time periods: the first period where the insured pays the premium or premiums and the second one when the insurance company pays out the agreed amounts.
What Is An Annuity?
An annuity is an agreement by means of which you receive cash payments from the insurance company or tax-deferred retirement income apart from the insurance payment in case of death that your loved ones will receive. There are different types of annuities each one with its particularities. These contracts can adapt to your personal situation thanks to the aforementioned differences.
For instance, if you are interested in investing you will be purchasing tax-deferred annuities that will mature with time. But if you are close to the time on your life when you are thinking about retirement you may be interested in obtaining a regular and secure income and thus opt for immediate annuities rather than tax-deferred annuities. As you can see, annuities are quite flexible and cover many different situations. There are also college annuities, charitable annuities, and the ones we are interested in: split annuities.
What Is a SPLIT Annuity
Split annuities combine immediate annuities with deferred annuities. This combination provides a bit of the benefits of both types and thus is useful for those who are interested in investing but still want to secure their future with a source of regular income at the time of retirement. Therefore with a split annuity you get an immediate and regular stream of cash for a period of time chosen by you which is the payment of principal plus interests of a portion of the premium paid. The rest of the money grows by accumulating the interests till it eventually reaches the original amount.
Example Of a SPLIT Annuity
Here is an example of what a split annuity can provide to you. Let’s say you contribute with $200,000 to a split annuity that is divided evenly: 50% to each portion of the annuity. The half that is deferred will accumulate interests that add up to the principal every year. The other half starts providing you an immediate income that consists on the principal plus an interest rate. Let’s say the immediate part period equals 10 years, you will receive almost $1420 a month (minus taxes). When the period ends, the other half will be close to reaching the original amount of the split annuity and you could start again.
source:http://www.americanchronicle.com/articles/viewArticle.asp?articleID=47895
A good example of a life insurance annuity contract uses would be: the taker pays a premium of $20,000 and in return at a certain date starts receiving $300 each month until he or she dies, $2000 for 15 years or death benefits if the insured dies prior the term of the annuity ends. Annuities have two well differenced time periods: the first period where the insured pays the premium or premiums and the second one when the insurance company pays out the agreed amounts.
What Is An Annuity?
An annuity is an agreement by means of which you receive cash payments from the insurance company or tax-deferred retirement income apart from the insurance payment in case of death that your loved ones will receive. There are different types of annuities each one with its particularities. These contracts can adapt to your personal situation thanks to the aforementioned differences.
For instance, if you are interested in investing you will be purchasing tax-deferred annuities that will mature with time. But if you are close to the time on your life when you are thinking about retirement you may be interested in obtaining a regular and secure income and thus opt for immediate annuities rather than tax-deferred annuities. As you can see, annuities are quite flexible and cover many different situations. There are also college annuities, charitable annuities, and the ones we are interested in: split annuities.
What Is a SPLIT Annuity
Split annuities combine immediate annuities with deferred annuities. This combination provides a bit of the benefits of both types and thus is useful for those who are interested in investing but still want to secure their future with a source of regular income at the time of retirement. Therefore with a split annuity you get an immediate and regular stream of cash for a period of time chosen by you which is the payment of principal plus interests of a portion of the premium paid. The rest of the money grows by accumulating the interests till it eventually reaches the original amount.
Example Of a SPLIT Annuity
Here is an example of what a split annuity can provide to you. Let’s say you contribute with $200,000 to a split annuity that is divided evenly: 50% to each portion of the annuity. The half that is deferred will accumulate interests that add up to the principal every year. The other half starts providing you an immediate income that consists on the principal plus an interest rate. Let’s say the immediate part period equals 10 years, you will receive almost $1420 a month (minus taxes). When the period ends, the other half will be close to reaching the original amount of the split annuity and you could start again.
source:http://www.americanchronicle.com/articles/viewArticle.asp?articleID=47895
Friday, January 4, 2008
The Best Way To Find Low Cost Insurance Is Online
Low cost insurance can be found with a specialist website and they can get you several quotes so you are able to take your time and look over them. There are many different types of insurance suitable for all occasions from insuring your life against death and giving your loved ones financial security to making sure you would be able to continue paying your mortgage if you were to lose your job with mortgage insurance.
Whichever type of insurance cover you want to take there will be terms and conditions and even exclusions in the policy which could mean additional costs or reasons which could stop you from making a claim on the insurance cover. You have to be very careful when it comes to payment protection as there are many exclusions in a policy so it is essential you do go over the policy with a fine tooth comb.
A specialist will be able to search the whole of the insurance marketplace for the lowest quotes for the type of cover you wish to take so that you can be assured you have got the best deal but they will need some information from you.
For example if you want home contents insurance you will have to carefully work out how much cover you wish to take as the repayments for the cover will reflect this.
However you do not want to be under insured, you should count everything in your home including clothing, electrical equipment and any other item of value you would need to replace.
The ranges of insurance cover policies are huge, you can take out an insurance policy to give your family financial security if you were to die, insure your pet or your income with payment protection. Whichever type of cover you are looking for you can get cheap insurance by going with a specialist website for your quotes.
source:http://www.bestsyndication.com/?q=010308_free_online_insurance_quote.htm
Whichever type of insurance cover you want to take there will be terms and conditions and even exclusions in the policy which could mean additional costs or reasons which could stop you from making a claim on the insurance cover. You have to be very careful when it comes to payment protection as there are many exclusions in a policy so it is essential you do go over the policy with a fine tooth comb.
A specialist will be able to search the whole of the insurance marketplace for the lowest quotes for the type of cover you wish to take so that you can be assured you have got the best deal but they will need some information from you.
For example if you want home contents insurance you will have to carefully work out how much cover you wish to take as the repayments for the cover will reflect this.
However you do not want to be under insured, you should count everything in your home including clothing, electrical equipment and any other item of value you would need to replace.
The ranges of insurance cover policies are huge, you can take out an insurance policy to give your family financial security if you were to die, insure your pet or your income with payment protection. Whichever type of cover you are looking for you can get cheap insurance by going with a specialist website for your quotes.
source:http://www.bestsyndication.com/?q=010308_free_online_insurance_quote.htm
SBI looking for JV partner for non-life insurance biz
State Bank (Q, N,C,F)* of India is planning to enter into a joint venture for its proposed foray into non-life insurance segment, reports Economic Times.
The bank has already invited expression of interest for this.
The joint venture partner is expected to bring in non-life insurance experience in developed and developing markets, relevant knowledge of product development, risk management and other systems, technology and underwriting best practices.
The group is already present in life insurance in partnership with French firm Cardif SA.
SBI is having a total business of more than USD 178 billion and operates through around 14,000 branches. It also has subsidiaries in mutual fund and merchant banking in the country.
source:http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080104155403148&dir=2008/01/04&secID=livenews
The bank has already invited expression of interest for this.
The joint venture partner is expected to bring in non-life insurance experience in developed and developing markets, relevant knowledge of product development, risk management and other systems, technology and underwriting best practices.
The group is already present in life insurance in partnership with French firm Cardif SA.
SBI is having a total business of more than USD 178 billion and operates through around 14,000 branches. It also has subsidiaries in mutual fund and merchant banking in the country.
source:http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080104155403148&dir=2008/01/04&secID=livenews
Insurers prosper, but face New Year’s challenges
Giving back to the economy
According to the Vietnam Insurance Association, the insurance market grew very fast last year. The total non-life insurance premium in the January-September period increased 30% over the same period 2006 (VND8.35 trillion), the highest level in five years. The total life insurance premium in this period grew by 12% year on year (VND9.5 trillion), the highest in three years.
In 2007, insurers offered several new services, including high-quality health insurance, credit insurance, liability insurance for businesspeople, pension insurance, etc. Presently, there are 720 non-life and 130 life insurance products offered in Vietnam.
Local insurers also provide many more added value services to their clients, for example free-of-charge rescue service, free vehicle repair service, free treatment service at reputed hospitals, etc.
This year, many insurance companies increased their capital to expand operations into other fields of business, for example banking, securities and finance. They now have over VND15 trillion total. The Vietnam Insurance Group (Bao Viet) has the highest, VND6.8 trillion.
Firms have invested nearly VND40 trillion ($2.5 billion) into the economy, of which, nearly 90% was buying government bonds and depositing in banks.
International competition
Phung Dac Loc, General Secretary of the Vietnam Insurance Association, said local insurers will have favorable conditions to develop in 2008 but they will face their toughest challenge so far. As of January 1, 2008, under WTO commitments, foreign insurers are allowed to provide compulsory insurance services like liability insurance for vehicle owners, explosion and fire insurance, etc.
Another difficulty is they have to reassess management and business operations to meet new regulations. For example, non-life insurance companies must increase their legal capital to VND300 billion; VND600 billion for life-insurance firms. They also have to use managers who meet certain conditions in terms of experience, training, etc.
The opening of the insurance market to foreign firms will make competition fiercer, Loc emphasized.
He said local insurers have never paid much attention to training. Big companies have set up their own training centers to educate employees; they also periodically send their managers abroad for additional training. Moreover, they apply modern technologies and have fewer procedural necessities for compensation.
source:http://english.vietnamnet.vn/reports/2008/01/762566/
According to the Vietnam Insurance Association, the insurance market grew very fast last year. The total non-life insurance premium in the January-September period increased 30% over the same period 2006 (VND8.35 trillion), the highest level in five years. The total life insurance premium in this period grew by 12% year on year (VND9.5 trillion), the highest in three years.
In 2007, insurers offered several new services, including high-quality health insurance, credit insurance, liability insurance for businesspeople, pension insurance, etc. Presently, there are 720 non-life and 130 life insurance products offered in Vietnam.
Local insurers also provide many more added value services to their clients, for example free-of-charge rescue service, free vehicle repair service, free treatment service at reputed hospitals, etc.
This year, many insurance companies increased their capital to expand operations into other fields of business, for example banking, securities and finance. They now have over VND15 trillion total. The Vietnam Insurance Group (Bao Viet) has the highest, VND6.8 trillion.
Firms have invested nearly VND40 trillion ($2.5 billion) into the economy, of which, nearly 90% was buying government bonds and depositing in banks.
International competition
Phung Dac Loc, General Secretary of the Vietnam Insurance Association, said local insurers will have favorable conditions to develop in 2008 but they will face their toughest challenge so far. As of January 1, 2008, under WTO commitments, foreign insurers are allowed to provide compulsory insurance services like liability insurance for vehicle owners, explosion and fire insurance, etc.
Another difficulty is they have to reassess management and business operations to meet new regulations. For example, non-life insurance companies must increase their legal capital to VND300 billion; VND600 billion for life-insurance firms. They also have to use managers who meet certain conditions in terms of experience, training, etc.
The opening of the insurance market to foreign firms will make competition fiercer, Loc emphasized.
He said local insurers have never paid much attention to training. Big companies have set up their own training centers to educate employees; they also periodically send their managers abroad for additional training. Moreover, they apply modern technologies and have fewer procedural necessities for compensation.
source:http://english.vietnamnet.vn/reports/2008/01/762566/
Why buy disability insurance?
New York - If you don't have dependents, you probably don't need life insurance. The other side of that coin, however, is that if you do have dependents, you do need life insurance to protect them in case anything happens to you. But almost as important, you need disability insurance if you become ill or injured.
According to the Insurance Information Institute, 43% of all people now aged 40 will suffer some long-term disability by age 65. Insuring yourself against such an event guarantees a future income of about 60% of your salary at the time you take out the policy if you use an employer-subsidised plan, or up to 80% if you buy a costlier private disability income policy.
Here, with research from the Motley Fool, are some of the advantages of going with the private policy:
Tax break
If you become disabled, the benefits you receive will be tax-free, as long as you paid the insurance premiums with after-tax money. (Benefits from employer-paid policies are subject to income tax.)
Not tied to your job
The policy won't be tied to your current job. This is key for people with entrepreneurial ambitions, since finding affordable disability insurance once you become self-employed can be very difficult.
Specialist protection
If you are a highly skilled, highly paid specialist - say a surgeon or a NASA scientist - you would be wise to seek disability insurance that locks in your income level. This more expensive class of policies is called own-occupation coverage as opposed to the more common and less expensive any-occupation option.
No cancelatoin of policy
Be sure the policy cannot be canceled. This guarantees that policy premiums cannot be altered as long as you pay them on time. Avoid "guaranteed renewable" and "return of premium" policies because they don't lock in premium costs.
No limited benefit term
Don't buy an accident-only policy or a policy with a limited benefit term (five or 10 years are common). Such policies are cheaper, but they do not cover the whole of your working life (that is, until age 65).
Protection from inflation
If you can afford it, a cost-of-living rider will protect your future benefits from the inflation. You might also want to increase your protected income level as your career advances.
Waiting period
The waiting period, before payments kick in, is akin to a car-insurance deductible. The more emergency savings you have, the longer you can wait for disability income and the lower your premiums will be.
Keep your eyes open
Watch for clauses that exclude pre-existing medical conditions or risky hobbies.
Go independent
And remember: buying long-term disability insurance has so many potential pitfalls that if you do decide to use a private policy, be safe and work with an independent insurance agent.
source:http://www.fin24.co.za/articles/default/display_article.aspx?ArticleId=1518-1786_2246374
According to the Insurance Information Institute, 43% of all people now aged 40 will suffer some long-term disability by age 65. Insuring yourself against such an event guarantees a future income of about 60% of your salary at the time you take out the policy if you use an employer-subsidised plan, or up to 80% if you buy a costlier private disability income policy.
Here, with research from the Motley Fool, are some of the advantages of going with the private policy:
Tax break
If you become disabled, the benefits you receive will be tax-free, as long as you paid the insurance premiums with after-tax money. (Benefits from employer-paid policies are subject to income tax.)
Not tied to your job
The policy won't be tied to your current job. This is key for people with entrepreneurial ambitions, since finding affordable disability insurance once you become self-employed can be very difficult.
Specialist protection
If you are a highly skilled, highly paid specialist - say a surgeon or a NASA scientist - you would be wise to seek disability insurance that locks in your income level. This more expensive class of policies is called own-occupation coverage as opposed to the more common and less expensive any-occupation option.
No cancelatoin of policy
Be sure the policy cannot be canceled. This guarantees that policy premiums cannot be altered as long as you pay them on time. Avoid "guaranteed renewable" and "return of premium" policies because they don't lock in premium costs.
No limited benefit term
Don't buy an accident-only policy or a policy with a limited benefit term (five or 10 years are common). Such policies are cheaper, but they do not cover the whole of your working life (that is, until age 65).
Protection from inflation
If you can afford it, a cost-of-living rider will protect your future benefits from the inflation. You might also want to increase your protected income level as your career advances.
Waiting period
The waiting period, before payments kick in, is akin to a car-insurance deductible. The more emergency savings you have, the longer you can wait for disability income and the lower your premiums will be.
Keep your eyes open
Watch for clauses that exclude pre-existing medical conditions or risky hobbies.
Go independent
And remember: buying long-term disability insurance has so many potential pitfalls that if you do decide to use a private policy, be safe and work with an independent insurance agent.
source:http://www.fin24.co.za/articles/default/display_article.aspx?ArticleId=1518-1786_2246374
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