by onlinefinancialnewsletters | Dec 9, 2015 | Personal Protection
Benjamin Franklin, famous founding father of the United States, once wrote, “In this world nothing can be said to be certain, except death and taxes.” Unfortunately, despite its certainty, far too many Americans fail to prepare for their eventual demise—and they leave their families to pay the price. In fact, according to the Life Insurance and Market Research Association (LIMRA), while 85 percent of consumers agree that they need life insurance, only 62 percent have actually purchased a policy.
Permanent life insurance is a category that encompasses whole life, universal life, index-universal life, variable life and variable-universal life policies. While each type of policies differs in its details, all provide a death benefit plus cash savings. This makes permanent life insurance an attractive investment for many consumers. Of course, there are a few things you should consider before you join them.
- Permanent life insurance may be more coverage than you actually need.
If you’re single, childless, or have grown children and have paid your mortgage in full, you might be better off with a less expensive term life insurance policy. It will provide you with a death benefit for a set number of years at a much lower premium. However, if you have a family or carry a lot of debt—including a mortgage—the higher cost of permanent life insurance can be worth it, providing your loved ones with a death benefit plus the cash value of the policy.
- If you want to grow your investment, permanent life insurance may not be your best option.
If you want the greatest return on your investment, some advisors suggest buying a less expensive term life insurance policy and putting the difference into other investment vehicles. For example, a $1 million permanent life insurance policy might cost $13,900 a year while a $1 million 20-year term life insurance policy costs $750. If you invested the $13,000 difference the first year at 5 percent and let it grow for 20 years, you’d have $34,492.87. Do that every year and you’d have significantly more.
- Permanent life insurance can be a good investment in the right situation.
Your heirs won’t pay taxes on the cash value of your permanent life insurance policy until after your death. This means permanent life insurance can be a useful investment for individuals with high earnings who have maxed out their other tax-deferred savings options. Additionally, permanent life insurance can be useful for older individuals who don’t have much in the way of savings but want to leave a monetary inheritance to their loved ones.
Whether you prefer whole life insurance (with a fixed premium), universal life insurance (with adjustable premiums) or variable life insurance (allowing you to choose how the cash value is invested), talk to your insurance professional about protecting your family from the inevitable today.
by onlinefinancialnewsletters | Nov 23, 2015 | Personal Protection
Every insurance policy has a section popularly known as “the fine print,” though its actual title is “Exclusions.” Exclusions are provisions in an insurance policy describing losses that the policy will not cover. For example, a homeowner’s policy does not cover losses caused by the use of cars, and a business auto policy does not cover injuries caused by a bulldozer on a construction site. While it may appear at first glance that the insurance company includes these provisions to get out of paying claims, the reasons are more complex and less insidious than that. There are very sensible reasons why no insurance policy covers everything.
First, not every person or business has the same exposures to loss. Most homeowners do not own a dump truck used in a business; the owner of the dump truck might not have employees to insure for jobsite injuries; the employer with a dozen employees might not own the building it occupies. Imagine if there were one insurance policy that covered all of these exposures — it would be hundreds of pages long and very complex. Therefore, over time insurance companies have developed different policies for different exposures — auto, home, business liability, and so on. The homeowner’s policy excludes losses that the auto policy should cover, personal policies exclude losses that business policies should cover, and vice versa.
Related to this are the issues of cost and choice. Standard insurance policies contain coverages that apply to large groups of households and businesses, but they do not cover every possibility. Those with additional needs have coverage options to choose from. For example, homeowner’s policies do not cover damage caused by water backing up from an overflowing sump or drain, but households that have basements with sumps or drains have the option of buying this coverage. Households without a basement do not have to buy it. This affords the buyer choices but does not force coverage on those who do not need or want it.
Furthermore, exclusions reduce the cost of the insurance policy. Every coverage comes with an associated cost — the company must factor in the costs of potential claims, expenses and profit for that coverage.
The more coverages a policy provides, the higher its premium will be. Without exclusions, people and businesses would be forced to pay for coverages they do not need. Exclusions help keep the premium affordable.
Finally, certain types of losses are uninsurable. Insurance companies cannot accurately predict when certain types of losses will happen, and the potential loss amounts are too large for them to absorb. For example, almost all policies exclude losses suffered as the result of a war or a nuclear accident. These events would cause massive losses beyond the abilities of insurance companies to pay. Other losses are not insurable as a matter of common sense. Because the purpose of insurance is to pay for losses from accidents, it will not cover most losses that a person intentionally causes.
Because every household or business’s circumstances are different, standard policies might not provide all the coverage necessary for proper protection. Properties in flood-prone areas, businesses that have a lot of contracts with other businesses, and individuals who post to online message boards may all lack important coverage. Consultation with a professional insurance agent will help determine whether more coverage is needed, whether it is available, and how much it will cost. The time to find out the availability and cost of coverage is before the loss occurs.
by onlinefinancialnewsletters | Nov 9, 2015 | Personal Protection
Once upon a time, large desktop computers were the golden standard of computing and portable devices were the exception. Today, almost the complete reverse is true. Laptop computers have grown more powerful and less expensive. Where college students considered typewriters to be mandatory equipment a generation ago, most today would not dream of attending college without a laptop. Businesspeople employ a variety of devices, including laptops, PDAs, tablets, and smart phones. Electronic book readers, led by the success of the Amazon Kindle, are becoming more popular. These devices are convenient, easy to carry, easy to use for information, entertainment, and communication, and very trendy. They are, however, also very susceptible to theft or damage, and their replacement costs can be substantial.
Any machine that runs on computer circuitry is vulnerable to certain perils. Most people who have owned such devices are familiar with the instinctually sick feeling they get when they accidentally drop one of these devices. Circuit boards are delicate components, subject to cracking if handled roughly. Moisture is also no friend to computerized gadgets. Drop one in water or spill a drink on it, and you will find yourself shopping for a replacement. Power surges, which can happen when electricity recycles after an outage, can instantly ruin a computer or electronic device. What’s more, popular electronic devices are perpetual targets for thieves.
When something happens to your laptop, will your homeowner’s insurance help pay for a new one? If you have a standard policy form, maybe not. The standard policy covers personal property of all types for a specific list of causes of loss. The list includes things like fire, lightning, explosion, windstorm and theft, but it does not list the other common causes of loss to computers. If someone steals a laptop from a dorm room, the policy will provide coverage. If the student drops it and cracks the screen, however, there is no coverage. However, additional coverage is available for purchase to protect against these common but disastrous events.
Anyone who owns computer devices should consider buying special computer coverage. This policy reverses common coverage for computers.
Rather than listing those causes of loss the policy covers, it lists those that it does not cover. If a cause of loss is not on the list, the policy provides coverage. This expanded coverage applies to computer hardware, software, operating systems or networks, and other parts, equipment or systems designed solely for use with them. For example, in addition to covering laptop and desktop computers, it covers printers, scanners, modems, wireless routers, and similar devices.
The coverage does not pay for losses caused by things like temperature extremes, humidity, wear and tear, mechanical breakdown, corrosion, damage caused by household pets, and others. However, the four common causes of loss to computers (breakage from dropping, damage from spilled liquids, power surges, and theft) are not on the list. Therefore, the coverage pays for damage caused by all of these. For example, the policy will pay for repair or replacement of a scanner that someone steps on, but it will not pay for repairs to a laptop that simply fails to turn on one day.
Because computer equipment is so common now in households, homeowners and renters should discuss their coverage with an insurance agent. For a relatively small cost, homeowners, renters, and students can insure their increasingly important but delicate belongings against thefts and those accidents most likely to damage them.
by wendem | Oct 26, 2015 | Personal Protection
As the old saying goes, your home is your castle. Unfortunately, few are equipped with drawbridges, motes and guards—historically effective features designed to prevent unwanted parties from entering. Every year thieves gain access to millions of residences as a result, subjecting the owners to property damage, the loss of belongings and, sometimes, even violence.
The Statistics
According to the Federal Bureau of Investigation (FBI), there were 2,103,787 burglaries in the U.S. in 2012, 74.5 percent of which occurred in homes. While this represents a 3.7 percent decrease in total break-ins when compared to 2011, the number indicates there is still a need for homeowners to take steps to protect their residences, families and personal property.
Door Frame Fortification
Both deadbolts and alarm systems are popular tools you can use to reduce your home’s chances of burglary. However, neither will actually stop a criminal from entering your residence or causing hundreds of dollars of damage to your exterior door. In many cases, all it takes is a strong kick to a standard door to bust through the lock and deadbolt. In mere moments, a thief can gain access and flee with your valuables—all before the security service or local law enforcement can respond.
Fortunately, there is an easy—and inexpensive—way for homeowners and renters to make an attempted door kick-in burglary or invasion less successful. Reinforcing your exterior door frames with a product like Door Devil, Rebar Door Security Device or EZ Armor will make it much more difficult for criminals to kick their way into your home. Because going unnoticed is necessary for a successful burglary, most will be reluctant to make the amount of noise required to force their way through a fortified door.
You can install most door frame fortification devices in 30 minutes, and retail prices starting at $59 make them affordable for families on any budget.
Other Suggestions
Of course, no single security product is 100 percent guaranteed to keep criminals out of your residence. The more tools you use to add layers of protection, the safer your family and belongings will be. Experts suggest considering the following when implementing a home security plan.
- Install battery operated automatic light timers throughout your home. Use them to create the illusion of occupancy when you’re away on vacation or out for the evening.
- Never leave doors or windows unlocked. Do not store a key to your home in an outdoor location where it may be easily found.
- In addition to a door frame reinforcement kit, install door locks with an ANSI grade 1 rating and deadbolt locks with at least 1-inch long horizontal bolts.
- Replace soft, wooden exterior doors with solid core or metal doors. This includes the door leading from your garage into your home.
- Reinforce windows or glass panels within or near exterior doors with invisible security film. This will make it more difficult for a burglar to break the glass and reach through to unlock the door. This also works for ground floor windows and sliding doors.
- Place a metal or wooden rod in the track on your sliding patio door to prevent it from opening more than a few inches.
Everyone wants their home to be safe and secure for their family. Implementing these suggestions should help. If you’d like to learn more about protecting your belongings with homeowners or renters insurance, contact your insurance agent.
by onlinefinancialnewsletters | Oct 9, 2015 | Personal Protection
The phone rings. You answer—but no one responds. Before you can hit disconnect, a recorded message begins to play. It informs you that you’ve won a free vacation, have been chosen to test a product, are eligible for a reduction in your credit card interest rate, owe money to the IRS, are in trouble with local law enforcement, or need to call your bank or lender due to a change in your account. But none of these statements are true—they’re just fabrications used as bait in new rip-off scams criminals have hatched to steal your personal or financial information.
Though the Do-Not-Call Implementation Act of 2003 made robocalls illegal in 2004—the FCC regulations prohibit telemarketers from calling a cell phone number with an automatic dialer under any circumstance—the practice is still rampant. And because the numbers these calls come from are usually spoofed—meaning they are fakes or have been stolen from a legitimate organization—they’re difficult for authorities to track.
Fortunately, there are several things you—as a consumer—can do to protect yourself from robocall scams as well as reduce the number of unsolicited marketing calls you receive on your cell phone and landline.
- Register your phone numbers with the National Do Not Call Registry. Once you’ve listed your number, legitimate telemarketers must remove you from their call lists. Exceptions include companies with which you have an existing business relationship, businesses that have received written authorization from you, political organizations, charities and telephone surveys.
- Disconnect as soon as you receive a robocall. The recording may give you the option to press a key to opt out or for transfer to a representative. You may also be given a number to call. Do not do this. If you press a key, the number is logged as working—and the quantity of robocalls you receive will increase. If you call a number given in the recorded message, any individual with whom you speak is likely to be a criminal phishing for your information.
- Block the numbers that robocall you. If you’re being harassed on a landline, you’ll have to call your phone service provider. However, it’s easy to block numbers on most new cell phones—usually by reviewing the call log, selecting the number, and choosing “add to reject list.” This won’t eliminate all calls—scam robocallers change spoofed numbers frequently—but it should offer some relief.
- If you’re unsure about the caller, Google it. Enter any phone number into the Google search bar and—if it has been used for scam robocalls—you’re likely to find that information within the search results. Free websites such as com provide reverse number look-up and allow users to post comments regarding the robocalls associated with any given phone number.
- File a complaint with the FTC. As mentioned previously, most robocall caller ID numbers are spoofed. However, reporting them to the FTC can eventually help to track down violators. You can do this for free when you visit gov/complaint or call 888-382-1222. You can also stay up-to-date on recent robocall and email scams reported to the FTC at http://www.consumer.ftc.gov/scam-alerts.
by onlinefinancialnewsletters | Sep 22, 2015 | Personal Protection
Can’t live without your cell phone? You’re not alone. According to Pew Research Center, 90 percent of adults in the U.S. own one. Forty-four percent admit to sleeping with it to avoid missing calls and text messages. But as addicted to our devices as we might be, many of us are not taking adequate security measures to protect ourselves while using one.
With the speed of access that a smart phone gives us, come a bevy of security risks. Consider: Fifty-eight percent of adult cell phone owners have smartphones and use them to access the Internet, send and receive emails, download apps, get directions, listen to music, engage with social media and more. Some of these activities expose them to criminals with nefarious intentions such as the theft of personal or financial information. In fact, a recent report from Norton, an antivirus and security software company, found that one in three smartphone users had already experienced some form of cybercrime. That number is only expected to rise.
Keeping your mobile phone secure—and protecting the valuable information within it—actually isn’t difficult. Experts suggest the following to maintain safety while still making the most of your smartphone productivity.
Add a password. If you haven’t password protected your smartphone, you’re basically giftwrapping easy access to your personal information for anyone who picks it up. According to Norton, 25 percent of smartphone users have had their phone lost or stolen. The minimal time it takes to enter a password each time you want to use the device is well worth the added protection.
Install a protective app. According to Symantec, thirty-six percent of malicious mobile activity was designed to steal data in 2014, compared with 17 percent in 2013. If malware infects your smartphone, it can steal your financial information—especially if you regularly use your device to make purchases or bank online. You can find free smartphone security apps from companies such as Norton in the Google Play and Apple App stores.
Turn off automatic connections. Some smartphones have settings that allow for automatic connection to available Wi-Fi networks. Disable this option and you’ll prevent your device from connecting and transmitting data without your knowledge. Fraudulent Wi-Fi networks are increasingly prevalent. Criminals typically set up a free network with a name similar to an establishment such as a coffee shop. Then they wait for patrons to connect to the network so they can collect their information.
Be a smart shopper. Shopping on your phone is certainly convenient. However, experts urge consumers to use caution when making online purchases away from home. Never enter private information, like bank account or credit card numbers, unless you’re certain the network and website is secure. Set your home Wi-Fi network up with a password and only make purchases from websites with urls that start with “https” rather than “http.”
Remember, a smartphone is basically a computer. There’s no reason not to protect it just as you protect your home PC. And if you’d like to explore how identity theft insurance can protect you from losses in the event of a cybercrime, contact your insurance professional.
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