Great referrals & testimonials

Hello all. I got this testimonial a short time ago and I was literally in tears. It feels so good to be able to assist others.

Our very own Katherine, Wichmann-Zacharias recently helped my pregnant daughter and her husband. She was having issues with her COBRA and so I referred her to Katherine who I had met through EWomen Network. I remembered her describing her extensive experience with COBRA insurance. Well, in this particular case she wasn't able to get them a policy at this time but did refer her to where she could access just what she needed. This was huge for this little family waiting on their first little baby that they have tried for 2 1/2 years to conceive. To help with lowering the financial burden for them is huge for their piece of mind. I will continue to recommend Katherine to others as she really does have their welfare in mind.
Thank you Katherine!
Sincerely,
Carrie Tomseth
CardMailbox.com

Check out www.eWomenNetwork.com. It's been the best networking group and referral source for me.
Please remember to give people referrals and thank them for their help if they do a good job for you. Have a great dry weekend!

When Seniors Don't Understand Reverse Mortgages

KNOW: Some vendors of reverse mortgages bundle their transactions with fees, commissions and conditions that older Americans often do not understand. Enticed by the lure of easy money, a growing number of seniors wind up losing their homes and all the equity in them, according to a special report in Consumer Reports.

DO: Trusted advisors alert their clients to the danger of doing business with high-pressure salesmen peddling reverse mortgages who extract outrageous fees. Partner with a reputable reverse-mortgage vendor to refer your clients to.

Story From: www.generationaladvisor.com

Cobra subsidy expiring soon

COBRA/CalCOBRA Subsidy Expiration
A 65% Federal subsidy was provided in 2009 to those who continued their employer-sponsored coverage. Without this subsidy, individuals could see their monthly payments increase more than 240% (from $374 to $1,068 on average), making continuing coverage very expensive. Contact me for free assistance on getting your own individual or family plan.

10 Tips on How to Prepare for Retirement

10 Tips on How to Prepare for Retirement

By THE ASSOCIATED PRESS

The average American spends 20 years in retirement -- and far too little time preparing for it financially.

Here are some basic tips on retirement planning, as compiled by the U.S. Department of Labor:

1. KNOW YOUR RETIREMENT NEEDS. Experts estimate you'll need about 70 percent of your pre-retirement income -- lower earners, 90 percent or more -- to maintain your standard of living when you stop working. Calculate what you'll need. Check the Labor Department guide to savings fitness on its Web site at http://www.dol.gov/ebsa/pdf/savingsfitness.pdf.

2. FIND OUT ABOUT YOUR SOCIAL SECURITY BENEFITS. Social Security pays the average retiree about 40 percent of pre-retirement earnings. Call the Social Security Administration at 1-800-772-1213 for a free Social Security statement and find out more about your benefits at www.socialsecurity.gov.

3. LEARN ABOUT YOUR EMPLOYER'S PENSION OR PROFIT-SHARING PLAN. If your employer offers a plan, check to see what your benefit is worth. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse's plan.

4. CONTRIBUTE TO A TAX-SHELTERED SAVINGS PLAN. If your employer offers a tax-sheltered savings plan such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more and automatic deductions make it easy.

5. ASK YOUR EMPLOYER TO START A PLAN. If your employer doesn't offer a retirement plan, suggest that it start one.

6. PUT YOUR MONEY INTO AN INDIVIDUAL RETIREMENT ACCOUNT. You can put up to $5,000 a year into an Individual Retirement Account (IRA) and gain tax advantages. If you're over 50, you put an extra $1,000 into your account in what's known as a catch-up contribution.

7. DON'T TOUCH YOUR SAVINGS. Don't dip into your retirement savings. You'll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer's retirement plan.

8. START NOW, SET GOALS, AND STICK TO THEM. Make retirement savings a high priority. The sooner you start saving, the more time your money has to grow. Devise a plan, stick to it, and set goals for yourself.

9. CONSIDER BASIC INVESTMENT PRINCIPLES. How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.

10. ASK QUESTIONS. Talk to your employer, your bank, your union or a financial adviser to get more information about retirement planning. Get practical advice and act now.

Make Sure Your Health Insurance Plan is Grandfathered

Hello all. Well, this a.m. I was in a very interesting Anthem Blue Cross meeting. Please make sure that the health insurance plan you are currently enrolled in is one that will be grandfathered for 2013. It seems that will be one of the parts of the new reform that will occur. When the new reform happens in 2013, some plans will be grandfathered, the ones with Anthem specifically. They will still be in "the game". Many insurance companies are expected to leave the market once the govt plan is put in place. The government plans will of course be much more expensive than the private plans we have today. If you do decide to move to a government run plan you will NOT be able to move back to a private plan if you so choose so please be careful and keep an eye on this reform as it happens these next few years. Thanks! Have a wonderful day!

Shakti Rising

Hello all. I am so excited! I am volunteering my time as a teacher at a great non-profit organization in downtown San Diego. I will be teaching a Women & Money I class at Shakti Rising in San Diego this next year.
Come to understand your relationship with money and the choices you make while learning the practical skills of creating a budget and living within your means. This class will assist you on the path of sustainability and financial abundance.
Join us for an experience of true financial well-being.
When: Fall: 10/21/09 - 11/11/09
Winter: 1/20/10 - 2/10/10
Spring: 4/21/10 - 5/12/10
Times: Wednesdays 4:00pm - 5:00pm
Cost: $60.00 to Shakti Rising for a great cause and you will be giving back and you WILL learn something too!
www.shaktirising.org

Avoiding Financial Ruin with Disability Insurance

You likely already have life insurance to protect your family against the financial adversity they could face after your unexpected death. And you've probably insured your home, cars, and other personal possessions against the financial loss that can result from fire, theft, or damage. But what have you done to protect yourself and your family against an injury or sickness that affects your ability to work? Do you have disability insurance?

The reality of how long you and your spouse could stay afloat if one of you were to lose your income due to a disability is sobering. On one income you may no longer have the ability to pay your mortgage, car payments, and other bills. If you are without disability insurance, tapping into home equity, retirement savings or credit cards can offer a temporary solution with damaging long-term consequences. Disability insurance offers an affordable method to maintaining your lifestyle without creating additional debt for your family.

There are many different ways to obtain disability insurance. You may have group coverage at work, through unions or membership groups and, depending on the nature and cause of your disability, you may also qualify for workers' compensation, Social Security, and veterans' benefits. Without the benefit of group insurance, individual coverage is a must.

There are many different types of disability insurance contracts and several definitions of disability. Consider whether you contract includes:

A favorable definition of total disability that is consistent with the risk of your occupation and, at a minimum, ensures the payment of benefits in the event you suffer a "loss of income."
A non-cancelable, guaranteed renewable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).
Benefits that are payable until age 65 or later.
A waiting period consistent with your overall financial plan. The longer you wait to receive benefits after your disability, the lower your premium. You can purchase coverage that provides benefits on the 31st day of disability or up to two years later. Whichever option you choose, make sure you can handle the financial exposure.

Covering Your Bases with Life Insurance

The 21st century brought more than a new millennium to experience. Over the last two decades, inflation has continually outpaced wages and income and this trend shows no sign of slowing. This inverse relationship between wages and costs means that you need more dollars each year to purchase the same items as you did the previous year. Financial and estate plans are not impervious to the pressures of inflation. Here are three aspects of your financial plan that you should consider adjusting:

1) Spousal income replacement

With the advent of telecommuting, dual income households seem to be taking over the landscape. For some, higher levels of household income have permitted better lifestyles. For others, two incomes barely get the bills paid. If your budget and lifestyle are dependent on two incomes, you should review your life insurance coverage and make sure that both wage earners are insured. You, your spouse, and your family may be in financial jeopardy if your insurance plan has not been recently updated.

2) Purchasing a new home and taking out a mortgage

Today, many homes are purchased with the help of a substantial mortgage. If you or your spouse suffered an untimely death, would your current life insurance be enough to pay off the balance of your mortgage? It's important to make sure your life insurance policy's death benefit provides the necessary funds to accomplish your goals--protecting your family's lifestyle.

3) College education costs

If you have college education plans for your children, you may be concerned about the rising costs of higher education. In 1977, the annual cost at Harvard University was $7,060. Thirty years later, you would have to pay $32,556-an increase of more than 350 percent (Figures from Forbes, Nov. 1, 1977, compared to the Harvard Admissions Office, 2008-2009 academic year). Putting money aside for your child's education requires a long-term financial commitment and a disciplined approach to saving. However, it also requires a contingency plan in the event of an untimely death. For this reason, you may want to include all or part of the projected education costs in your insurance plan.

Life insurance planning doesn't end with these three scenarios. In fact, you may have additional goals you want to hedge against in the event you or your spouse suffers an untimely death. Adjust your life insurance coverage for inflation to ensure your wishes will be fulfilled in the future.

Take a Holistic Approach to Personal Finances

In July 2008, State Farm Life Insurance Company announced the results of its first ever Fiscally Fit Cities Report, whose findings indicated that less then 50 percent of American households are making provisions to secure their financial future. The report measured citizens in 50 metropolitan areas in terms of investments, quality of life and life insurance coverage. Twenty-seven criteria were analyzed that demonstrate what Americans are doing to maintain their finances.

The researchers discovered that citizens in the cities deemed most financially fit were creating strategies to protect their assets with short-and long-term investments. However, what was missing was a holistic approach to personal financial planning, including owning enough life insurance coverage to keep their families afloat after the sudden death of a wage earner.

Surprisingly, researchers found that citizens in areas with high household incomes were not saving enough nor protecting assets adequately, as you would expect. In fact, people in wealthier areas spend more on real estate and are less disciplined in saving money and purchasing life insurance to protect their family.

Ultimately, the data revealed two concerns: Americans aren’t looking at their finances as a complete package, and they don’t understand the importance of life insurance.

As a rule of thumb, most people require seven to 10 times their annual income in life insurance benefits if their family is to maintain a comparable standard of living at their death. The other issue is not insuring all of the family members who need coverage. Many families believe the primary wage earner should be the insured; however, they fail to realize that a stay-at-home spouse or a second wage earner also needs life insurance.

In addition to examining your life insurance needs, consider these simple steps to plan for tomorrow:

* Take care of yourself – Good health leads to a longer, fuller life and more options for generating income later in life. Good health can also help control costs, particularly for insurance policies.
* Stay balanced – While it's tempting to spend when you are doing well, without proper planning you may need to lower your standard of living later in life. It's smarter – and less disappointing – to live conservatively and prepare for the unexpected.
* Start early – You're never too young to reduce debt and live within your means, invest wisely, protect your assets through life insurance, and enjoy a healthy lifestyle.

September is Life Insurance Awareness Month

A recent survey indicates that 68 million Americans have no life insurance and those with coverage have far less than most experts recommend ensuring a secure financial future for their families. In fact, ownership of life insurance has been declining for decades and the impact is being felt in very human terms today. When a loved one dies without adequate life insurance coverage, surviving family members often face very difficult financial consequences like having to work additional jobs or longer hours, borrow money from friends and family, move to smaller, less expensive housing, or put plans for a child’s education on hold.
With so many Americans in a financially vulnerable situation today, the life insurance industry has created a month-long public awareness campaign aimed at encouraging the public to take stock of their life insurance needs. Life Insurance Awareness Month (LIAM) is an industry-wide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education (LIFE). Each year, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups. All share the same objective: to end the unnecessary financial suffering that so often occurs when a loved one dies.
Please Email or call me (619) 208-7717 if you would like a free review of your life insurance. thewic@sbcglobal.net

Disproving Disability Income Myths

A long-term disability can have a devastating impact on a family's finances. When you become sick or injured and cannot work, not only could you lose your income-you could lose all of your savings, investments and other assets as well. Without a steady income, you'd eventually have to tap into these assets to pay for your costly medical bills, your mortgage, utilities and other daily expenses.

Luckily, disability income (DI) can offer your family much-needed financial protection in this scenario. But if you're young and healthy or if your spouse also works, you probably assume you have no need disability income. You couldn't be more wrong.

Here are five of the most common disability income myths disproved:

Myth #1: I'm too young to buy DI insurance.

You would be surprised to learn how many young adults suffer from a long-term disability. According to the Social Security Administration, nearly 3 in 10 of today's 20-year-olds will become disabled before they reach the age of 67. On top of that, you are five times more likely to become injured during your working years than you are to die before the age of 65, according to a study by Great-West Life.

In other words, you are never too young to suffer from a long-term disability-which means you're never too young to purchase disability income insurance.

Myth #2: I don't need DI because I'm healthy as a horse.

As we all know, good health can come and go like a flash of lightning. Even people who eat well, exercise and take great care of themselves can suffer from a stroke, cancer, a neurological disorder or an unexpected accident.

Myth #3: Only people with high-risk jobs need DI coverage.

Far too many people are under the impression that disability income is most often paid out to blue-collar workers who are injured in a workplace accident or professionals who are disabled in a car accident. Therefore, people who work from home or at a computer desk in a comfy office assume they don't need DI coverage.

The truth is that non-work-related accidents or jobsite injuries are not the primary causes for worker disabilities. Most workers are disabled by a chronic disease, such as cancer or musculoskeletal problems-conditions that can strike anyone, anywhere, any time.*

Myth #4: If I were disabled, my spouse's income would cover us.

If your spouse works, you may assume his or her income would be enough to pay the bills for a few months if you were sick or disabled. If your spouse doesn't work, you may think he or she could find a job if something happened to you.

However, don't you think if you were diagnosed with a disease or seriously injured, your spouse would rather be caring for you than running out to find a job or working overtime to pay the bills? Typically, if a family has DI insurance, both the injured worker and the spouse end up living off of the insurance benefit-even if the spouse was working previously.

Myth #5: I don't need DI insurance because I'm covered through my company's group policy.

Although many workers receive disability coverage through their company, it may not be enough. Most group DI insurance contracts will cover only a percentage of your salary (usually about 50-60%) and the benefits are usually fully taxable. Would your family really be able to live off of just 60% of your salary, especially considering that you may be facing some lofty medical bills? Probably not.

Most financial experts recommend that you go ahead and take advantage of your company's group coverage if they offer it, but also buy individual coverage to fill in the salary gaps.


As you can see, everyone stands to benefit from long-term disability coverage. Without coverage, an unexpected disability could end up crushing your family's finances.

Security No Matter What Life Throws Your Way

We live in an age of insecurity. No one wants to lose what they have worked so hard for. It's important to include life insurance among your financial options. Life insurance may be an old-fashioned way to protect yourself and your family, but it is still one of the best products you can buy.

No other financial instrument will do what life insurance can do. The moment your life insurance policy goes into force, the full death benefit to your beneficiary is guaranteed, from day 1 and for as long as you continue to keep the policy in force by paying the premiums. Financial planners call this aspect of life insurance "creating an immediate estate."

Life insurance can seem complicated. There are more products than just term and permanent life insurance. Term and permanent life insurance have many riders and variations that can be added to suit your family's needs.

This is to your advantage. It means greater flexibility and many options. Therefore, a life insurance protection plan can be designed to fit the individual needs of your family.

Various types of policies can serve to protect the family's economic future. Insurers have adapted their products to augment savings and investment programs.

It's important to protect your lifestyle and well-being too. Disability income protection coverage can replace earned income (up to the amount purchased) in the event of serious illness or injury that prevents you from working.

A trained life insurance agent can help you choose from among all the specialized products. Be sure your agent represents a financially strong company. One way to check on a company is through the ratings of such independent evaluators as Moody's Investors Services, Standard & Poor's, A. M. Best, and Duff & Phelps.

The Importance of Life Insurance for Young Families

In the event of the early death of a spouse it is important to consider the financial needs of surviving family members. It is unthinkable that the surviving family members would be forced to liquidate personal assets or lose their home simply to make ends meet. It is essential in the present economy to protect our families from this type of financial hardship.

Recently a study found that as much as 75% of people who died between the ages of 30 and 55 left their spouses without adequate life insurance coverage.1

Choosing the Right Coverage

It is important to be well informed when choosing what coverage is best for you and your family. Two types to consider are permanent life insurance and term life insurance. Whether you decide on one type or the other will be based on your specific needs.

Permanent life insurance provides lifetime coverage so long as the premiums are paid when due and also includes the added benefit of accumulating cash value in the policy.

Term life insurance or "temporary" life insurance provides coverage for a specific or designated period of time.

To fully understand your insurance needs you must outline not only the present financial needs of the family but also those projected in the future. Financial obligations such as mortgage payments and other recurring debt payments are key to calculating the right amount of coverage needed. Future factors may include college tuition for your children and retirement plans for your spouse. These factors should be combined with your present source of income and that of your spouse, if any, to determine the right amount to purchase.2

Be Prepared

Since we are unable to predict the future and often life can change in an instant it is essential to plan ahead. It is important to follow these unexpected changes with the evaluation of your life insurance coverage. Such steps will ensure that your family remains financially secure.


1) National Association of Insurance and Financial Advisors (NAIFA) 2004
2) The cost and availability of life insurance depend on such factors as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely there may be surrender charges and income tax implications

Good Today, Even Better Tomorrow

From: LFG.com

Preparing for the potential need for long-term care makes sense, especially if you can help protect your existing assets at the same time. Your loved ones may also appreciate your preparations.

Lincoln MoneyGuard Reserve provides guaranteed benefits you can tap into to reimburse qualified long-term care costs, helping to protect assets you've set aside for retirement. It offers a simple solution that makes sense for today and for tomorrow.

Paid with a single premium, Lincoln MoneyGuard Reserve provides multiple benefit options to cover an individual's needs. It includes a money-back guarantee, minimum death benefit and long-term care benefit guarantees.

Lincoln MoneyGuardReserve:

* Helps you pay for long-term care if you need it
* Provides an income tax-free death benefit if you don't
* Offered with a money back guarantee*
* A way to help protect your retirement income from the risk of long-term care expenses

Health Savings Accounts - Questions and Answers

Health Savings Accounts - Questions and Answers

A Health Savings Account (HSA) is an alternative to traditional health insurance that offers consumers a different way to pay for their health care. HSAs enable you to pay for current and future health expenses on a tax-free basis, while an attached high-deductible insurance policy protects you against catastrophic expenses.

Here are answers to some common questions concerning HSAs:

Can anyone open an HSA?

To be eligible for an HSA, you must be under 65 years old, and covered by a qualified high-deductible health policy (QHDHP).You are ineligible if covered by another health insurance policy (except coverages such as cancer, dental, disability, long-term care or vision insurance) that isn't a qualified high-deductible plan.

Where can I open an HSA?

Accounts can be established with banks, credit unions, insurance companies and other approved companies. Your employer may also set up a plan for its employees as well.

What is a QHDHP?

To qualify the policy must meet current IRS requirements. For 2009 the requirements are as follows:

* The deductible must be at least $1,150 for individuals or $2,300 for families.
* The annual out-of-pocket expenses cannot be greater than $5,800 for an individual or $11,600 for a family.
These figures include the deductible and any co-insurance, but not the premiums.

How much can I contribute to an HSA?

Limits are updated annually by the IRS. For 2009, the contribution limits are $3,000 for singles and $5,950 for families. However, if you are 55 or older, you can contribute an extra $1,000.

What happens to unused funds at the end of the year?

The unused balance in an HSA automatically rolls over year after year. You won’t lose your money if you don’t spend it within the year.

How do I receive the tax benefits?

If you have an HSA through your employer, you may be able to make pre-tax payroll contributions. Otherwise, your contributions will be deductible when you file your taxes, even if you don't itemize. Also, you are eligible to make a full contribution regardless of income unlike IRAs.

What is a qualified medical expense?

Qualified medical expenses are defined in IRS Publication 502, Medical and Dental Expenses (available at www.irs.gov).

Can my HSA be used to pay for a family member's medical care?

Yes, you may withdraw funds to pay for the qualified medical expenses of yourself, your spouse or a dependent without tax penalty. This is one of the great advantages of HSAs.

Can I pay health insurance premiums with an HSA?

You can only use your HSA to pay health insurance premiums if you are collecting unemployment benefits or you have COBRA continuation coverage through a former employer.

Can I use the money for non-medical expenses?

Yes, but you'll be hit with a 10% penalty plus income tax on the amount of your distribution. However, after age 65 the 10% penalty is waived on non-qualified distributions which enables your HSA to effectively serve as a retirement supplement.

I have an HSA but no longer have HDHP coverage. Can I still use the HSA?

Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.

With an HSA can I still contribute to an IRA?

Absolutely, your HSA contributions won't affect your ability to contribute to an IRA in any way.

Conseco Worksite Critical Illness

Conseco Worksite Critical Illness offers lump-sum benefits for today’s most common critical illnesses, including cancer, cardiovascular disease and major organ transplants. The product is available in three simple plan designs: cancer-only coverage, a critical illness without cancer coverage, and a critical illness with cancer coverage.

Conseco Worksite Critical Illness offers benefit amounts up to $75,000 (in $5,000 increments,) and guaranteed issue for coverage up to $20,000. Benefits are paid for diagnoses in three Health Diagnosis Categories (HDCs): heart attack, stroke; end-stage renal failure, major organ transplant and loss of sight; and cancer. The coverage pays first diagnosis and recurrence benefits in each HDC. A return-of-premium or cash-value rider is available in certain states, and guaranteed issue is available for employer groups that meet minimum participation levels.

Consumers Need Access to Affordable Health Care Options

Congress is considering a play or pay mandate for employers (Cover 60% of cost or pay $750 per employee) and limiting their access to professional assistance by licensed insurance agents. Help your lawmakers understand your concerns and the critical role of the agent.

Contact your Members of Congress. It always has a greater impact if you use your own words when providing your input to members of Congress. So please take a few minutes and "personalize" the sample letter.
http://www.congress.org/congressorg/officials/congress/

How Will Your Beneficiaries Receive Your Death Benefit?

Everyone knows that the purpose of buying life insurance is to provide a benefit to your survivors. But how do the people you name as beneficiary of your life insurance policy actually receive the funds? For some people who buy life insurance, the thought of a $250,000 check going directly to their loved ones is comforting. For others, it is a nightmare.

The first thing to remember is that you cannot control how the death benefit is paid out unless you make a trust your beneficiary. If you've named individual family members as the beneficiaries of your life insurance policy rather than a trust, then the beneficiaries will determine how they receive the death benefit. If you've chosen multiple beneficiaries, they will each be entitled to choose their own payout option.

Your beneficiaries will have many different options to receive their funds. The payout options should be outlined in your policy and, since this is part of your family's future planning, it is important to take some time to discuss with them the benefits and drawbacks of each payout option. Here are some of the most common options:

1. Lump Sum: A lump sum death benefit works much as you would expect. Once the death claim has been evaluated and approved, a lump sum payment goes out to your beneficiary. If you chose only one beneficiary, that person will receive the entire benefit. If you've chosen multiple beneficiaries, each will receive a check in the amount of the portion for which they are entitled.

2. Interest Income Only: Your beneficiaries may choose to leave the lump sum death benefit with the insurance company and instead only receive a monthly payment of interest that is earned by the lump sum at either a fixed or variable rate. When choosing the interest income option, your beneficiaries will be asked to name a beneficiary to receive the invested funds in the event that they pass away.

3. Life Income: Death benefit proceeds can be treated as an annuity and the life income payout option is one example of this. With the life income method of payout, your beneficiary is guaranteed a certain income for life. When choosing this option, it will be important for your beneficiaries to remember that when they die-even if it's after just one payment-the remaining proceeds will be forfeited. However, if they live long enough they could outlive the death benefit proceeds and still receive monthly payments.

4. Life with Period Certain: Life with period certain works like life income payouts, except that the monthly payouts will be smaller because the insurance company guarantees a certain number of payments-even if the beneficiary dies. In the event of the beneficiary's death, the remaining payments from the period certain will be paid to whomever the original beneficiary chose as their beneficiary.

Five Rings Financial

Recently I partnered with Five Rings Financial. I think it's a great move for me and my clients. I can offer my clients more products and great services. Five Rings Financial is an Independent Marketing Organization representing many of the world's largest Financial Services Companies and dedicated to serving the financial needs of individuals, families and businesses from all walks of life. Although a national company in one of the world's most vital industries, our thousands of local independent associates and managers offer hometown value, service and education to each client, providing them the opportunity to achieve one of their most desired goals: financial independence. Every month we offer local Money 101 educational dinners as well as a series for women called Wine, Women, & Wealth. Wine, Women, & Wealth is always held at the Wine Spot in Carlsbad, CA. The Money 101 seminars are held in San Marcos, CA and Torrance, CA. Please follow me on Twitter (www.twitter.com/thewic) or Facebook to see the invitations to these monthly complimentary educational events. I would love to have you attend! I look forward to waking up each day and assisting my clients with their financial needs. As a Financial Representative with Five Rings Financial, I get to assist clients with saving money on their health insurance,life insurance and auto insurance and at the same time assist them with saving for their future. Five Rings Financial, Creating Opportunties, Income, Security & Wealth. KSWZ Insurance Services, I don't sell products, I build relationships.

Return of Premium Rider Makes Life Insurance Buying Easier

Since term life insurance policies accrue no cash value, most policyholders see no return on their investment unless they pass away during the policy’s term and a death benefit is paid out to their beneficiaries. This is true of any insurance policy—if your home never burns to the ground or your car accident history is squeaky clean, you’ll never see one dollar from your homeowners’ or car insurance.

Wouldn’t it be nice if your term insurance policy could act like a piggy bank for you—storing your premiums up for a full refund should you outlive the policy? Believe it or not, with the right rider added to your policy, it can. Unlike other types of insurance, many term life policies offer a return of premium (ROP) rider that guarantees a return of the premiums paid if you outlive the policy.

When a ROP rider is added to your policy, your premiums will increase. When determining whether the ROP rider is in your best interests, you must consider whether the funds paid for the rider would be better invested elsewhere.

As an example consider a ten-year term life insurance policy with a premium of $600 per year. If the ROP rider adds an additional $300 per year, you will pay $900 per year or a total of $9,000 over the life of the policy. At the end of that ten-year term, you will receive the entire $9,000 back from the insurance company.

Otherwise, without the ROP rider, you’d have an extra $300 per year to invest—but you would need to earn greater than 16% per year to accumulate $9,000 after ten years. In addition, refunds received under the ROP rider are tax-free, while you’ll pay income taxes on interest earned in your savings account.

There are certain conditions you must meet to receive the return of premium guaranteed by the rider. If you forget to make a premium payment or allow your policy to lapse, you may no longer be eligible for the full premium payout of your policy, so it is important to keep the policy in force or you will be wasting the extra premium dollars you send to the insurance company.

Building a Financial Safety Net for Life Emergencies

If you faced a life crisis, would your finances survive the turmoil? Unfortunately, most people are not prepared for the financial trauma a life emergency can create.

Take Tom and Sue Smith for example. Tom, the owner of a deli, was diagnosed with cancer shortly after his 64th birthday. Three months later, he was dead. Sadly, Sue didn't have much time to grieve over the loss of her husband-she was too busy scrambling to find the money to save his business from bankruptcy. Sue struggled to keep the business running for another year until she was finally able to sell the deli.

Each year, millions of Americans have their lives turned upside down by ill-fated events-whether it's the death of a spouse, an illness in the family, job loss, divorce or disability. Unfortunately, many of these people suffer even more because the crisis puts their finances in such a precarious position. They struggle to pay their mortgage and the bills and they often end up draining their retirement accounts.

The shocking statistics

In today's tumultuous economy, countless families are facing diminishing home equity and the threat of a job loss, and soon-to-be retirees are watching their nest eggs dwindle. However, most people are simply not prepared financially for a life crisis-at least according to a new survey sponsored by AARP Financial. This survey of adults ages 40 through 79 examines how well people prepare for life emergencies-and the results are eye-opening.

Two out of every five participants say they would be scrambling for cash if they were blindsided by an emergency. Among those who have had life crises, 40 percent say they were not prepared financially. Out of those who have lost a job at some point, only 12 percent say they were ready for the change, and 44 percent were angry at themselves for not being better prepared. And the odds of facing an emergency are surprisingly high-57 percent of those surveyed have been through at least one life crisis.

Considering the stats, we will all most likely face a life crisis at some point-which means you simply cannot afford to be unprepared. So, how do you get financially ready for these kinds of emergencies? Here are five preparation tips:

Tip #1: Expect the worst and hope for the best

No one enjoys thinking about the possibility of becoming sick or losing their job or spouse. But if you want to be prepared, you have to expect the worst and hope for the best. Some financial experts say a good way to plan for a life crisis is to figure out how you would live off just half of your current income. While that may be a frightening thought, it may become necessary if the heat of a crisis.

Tip #2: Start saving

The best way to prepare for a financial crisis is to build a safety net-in the form of an emergency fund. Without an emergency fund, many people end up dipping into their retirement accounts during a life crisis. Before long, their nest egg has disappeared.

The amount of money you should have in your emergency fund depends on your unique situation. Most financial experts say you should keep between three and six months worth of living expenses in your fund. Set realistic goals and start small. Even if you put just $10 to $30 aside each week, you'll slowly build up a suitable emergency fund.

Tip #3: Purchase disability insurance

According to AARP Financial's survey, 84 percent of people under 60 have life insurance, but only two-thirds have disability coverage. Seeing as major illness or disability is the number two most common cause for financial hardship, you are taking a huge risk if you don't have disability insurance.

Although you may have disability insurance through your employer, be sure to read the fine print. It may not be enough to cover your expenses if you were to become sick or disabled-which means you may need to purchase supplemental insurance.

Tip #4: Manage your finances together

If just one spouse makes all the money and all the money decisions, this can lead to problems. Many financial experts recommend that married couples take equal part in managing the finances-especially if one spouse is the primary breadwinner. Not only will this allow you to budget and invest wisely, but it will also teach you to not fight about money.

Plus, if you end up getting a divorce, you'll already be accustomed to sharing money decisions-which means you'll have the skills you need to compromise and avoid unnecessary drama.

Tip #5: Act quickly

Most life crises come without warning. That means you should be prepared to take action at a moment's notice. Most people tend to freeze up when they face an emergency. However, experts say that you'll be more likely to survive a crisis if you take action as soon as possible.

When you're in the trenches of financial distress, you can't worry too much about what tomorrow will bring-this will just paralyze you with fear. Try to live in the present and make the wisest financial decisions you can today. Take things one day at a time, and remember that this too shall pass.


Above all else, don't be afraid to ask for help. Most people who have faced financial crises say their family and friends helped them through it and offered them the most valuable advice. Remember, you are not alone in this-whether you turn to a sister, a cousin or a trusted financial advisor, be sure to ask someone for guidance.

Term Life Insurance

Term life insurance is perhaps the most basic form of life insurance. It usually provides affordable protection, often with a guaranteed premium, for some period of time. If the insured should die while the policy is in force, the face amount is paid to the named beneficiary. At the end of the premium guarantee period, the insured can renew the coverage at a higher premium. The premium for term life insurance is initially lower than a comparable permanent insurance policy; however, it can increase at each renewal. This initial lower premium usually makes term insurance an ideal choice for individuals with a temporary need for life insurance protection.

Survivorship Life Insurance Can Protect Assets for the Next Generation

Life insurance can serve a number of purposes in addition to providing a death benefit for a dependent spouse or children. Some policies, especially a specific type known as survivorship or second-to-die insurance, can also be an effective asset preservation technique for estates of various sizes.

Survivorship insurance is a single life insurance policy that covers two individuals, generally husband and wife. These policies compliment the marital estate tax deduction, which defers estate taxes until both spouses pass on. The survivorship policy does not pay out until the second spouse dies. The premiums are relatively low when compared to purchasing individual life insurance policies.

There are numerous estate transfer scenarios in which applying survivorship insurance is extremely advantageous, including:

Preserving Qualified Plan Money

If you are hoping to pass on untapped IRA or 401(k) retirement accounts to the next generation, you will be disappointed to learn those hard-earned assets could be reduced by as much as fifty percent once all taxes are applied. By purchasing a survivorship policy of a value equal to the estimated taxes, the policy, rather than your qualified plan accounts, can fulfill the tax burden. This same approach can be used for other assets of your estate that are subject to hefty taxes.

Charitable Contributions

The same approach can be used for transferring assets to a charity upon your passing. This ensures that the qualified not-for-profit organization will receive your donation dollar-for-dollar. You can deduct the cost of life insurance premiums from your taxes if you name the charity as both beneficiary and owner of the policy.

Non-liquid Assets

A survivorship policy is also well suited for assets that are not liquid and which the heirs will not want to sell in order to fund the estate taxes. This approach is commonly applied to real estate and family businesses. In cases where not all of the children are interested in running or being invested in the family business, a child could use their share of the survivorship insurance benefit to purchase their siblings' share of the business.

Caring for Special Needs Children

When a family has a child with special needs, the child will likely need financial support their entire life. Who will pay for that individual's care once both parents have passed on? A survivorship policy can provide a large death benefit at a discounted cost. The policy can be structured in conjunction with a special needs trust to ensure that funds will be properly managed and to preserve other government funds that the child may be qualified to receive.

Insurance for a Spouse in Poor Health

A survivorship policy can be a solution for a spouse who is in relatively poor health and cannot obtain a life insurance policy on their own. As long as one spouse is in good health, they generally can obtain a joint survivorship life insurance policy.

To achieve the desired estate planning intent of the survivorship policy, the insurance benefits need to be excluded from the couple's estate. You should consult with an estate-planning lawyer to structure the estate so that neither spouse has ownership rights to the policy. There are several options, including setting up a trust or assigning the rights of the policy to another individual such as an adult child of the insured.

You Never Out Grow Your Need for Life Insurance

The insurance rating company, A.M. Best & Co, reported that less than half of all American households have any life insurance other than that provided by an employer. Why have so many Americans turned their backs on life insurance? There are several answers to that question.

With all of the media focus on living longer and preparing for retirement, Americans have shifted their concentration toward saving for retirement by putting their money into tax-favored accounts. Life insurance companies have been marketing the investment aspects of policies rather than death benefits in spite of the fact that most consider life insurance a poor investment choice. Class-action lawsuits against insurance companies alleging product misrepresentation have also contributed to life insurance earning a bad reputation.

The chief reason to buy life insurance is the protection it provides through the death benefit. The proceeds your beneficiaries receive can replace the income they lost as a result of your death and provide for future needs, such as paying for a child’s education. Investing in the stock market is not a substitute for life insurance. For one, life insurance guarantees a return for the money you pay in premiums. Even under the best market conditions, you are never guaranteed a return on the money you invest in stocks or mutual funds. In fact, most brokers advise that you invest only money you can afford to lose. Even if you do manage to assemble a stock portfolio that provides a reasonable rate of return, that return must accumulate over time in order to grow large enough to cover your family’s long-term needs. The problem arises if you die before amassing the amount needed. With life insurance, the death benefit is available whenever you die.

The other issue with leaning on a stock portfolio to cover long-term financial needs is that portfolio values never remain constant. As market conditions change, so does the value of your stock portfolio. If the market happens to be in a down cycle when you die, asset values will be reduced at the time your family needs them the most. If they have to sell assets, not only will they fail to net as much money as you would have hoped, they will also have to pay taxes on any capital gains. With life insurance, they can receive death benefits tax-free and with proper planning, they will avoid paying estate taxes on the money as well.

Talk with your insurance agent to determine how much insurance you need to best protect your family’s finances in the event of your death. And never overlook the death benefit value of life insurance.

Financial Planning Challenges for Double-State Dwellers

Are you a double-state dweller? In other words, do you live up north in the summer and head south with the “snowbirds” each winter? Do you have an out-of-state vacation home where you stay each summer? If you own property in two different states, you could face some complicated financial issues. Fortunately, a skilled financial advisor can help you resolve these problems with some careful planning.

If you call two different states your home, here are a few potential challenges you could encounter:

Permanent residency confusion

If you own a vacation home in another state, you probably consider one state your “home,” and the other state just a place you like to visit. However, the governments of those two states may look at it differently. Depending on whether or not these states deem you a resident, you could pay a hefty price.

For example, let’s say you live in Michigan, but you head south to Florida to live in your vacation house for a couple of months each winter. First of all, because you own property in more than one state, your estate could be subject to probate in both Florida and Connecticut. Additionally, there could be severe income tax issues. While Michigan has relatively high income tax, Florida has no state income tax at all.

First and foremost, you need to determine whether you are considered a resident of both states. Generally, if you spend more than 183 days in a state, that state is more likely to see you as a permanent resident. However, this is just a simple rule of thumb. When it comes to financial planning, things can get much more complicated.

If you want to more strongly establish your permanent residency, you should register to vote there, keep your driver’s license and car registration in your main state and set up your financial accounts with banks and brokerages in your home state. You should also hold onto any financial records that document your residency and keep receipts that show where you are living during a certain time of year.

Probate problems

If you own property in more than one state, your estate could be subject to probate in both states. This means your heirs could be heavily taxed after you die, and they may not receive as big of an inheritance as you had hoped.

To help resolve probate issues, many financial experts say you should place any property you own in a second “nonresident” state, such as a vacation home or condo, into a revocable trust. This ensures the property will be passed onto your beneficiaries free of probate.

Health insurance complications

People who own property in two states should also take a close look at their health insurance coverage. Generally, health care plans cover only a specific geographic area. Therefore, if you split your time between Maine and North Carolina, you may need to purchase two health care policies to make sure you are covered in both states.

Alternatively, you could switch to a different type of health care policy. For example, if you have an HMO (health maintenance organization), your insurance likely won't cover medical costs if you visit a doctor outside of your network. However, if you switch to a PPO (preferred provider organization), your health insurance will cover at least a portion of the costs if you go out-of-network.

Homeowner's insurance issues

You should also review your homeowner's insurance coverage if you spend considerable time in another state. Your coverage may change if you leave your home unoccupied for a long amount of time. Additionally, if you’re renting a home or condo in another state, you will need to purchase renter’s insurance to protect your personal items inside the home.

If you split your time between two states, you could face these financial issues and many others. You may want to meet with a financial professional who can help you plan carefully and overcome these types of challenges.

Anthem Care Comparison Now Covers Entire State

All Anthem Blue Cross group members in California now have access to Anthem Care Comparison, our ground-breaking online tool that launched in 2008 to select geographic areas in the state. Care Comparison provides total estimated costs associated with all aspects of nearly 40 specific medical procedures performed at local area hospitals and medical facilities.

Tackling Three Major Money Challenges in a Slow Economy

Our current economic environment is a little scary—and depending on your unique situation, it may seem downright terrifying. Unfortunately, these tumultuous times have driven many consumers into a frenzied panic, but it’s important to stay calm and keep sight of your overall financial goals.

With the proper planning, it is possible to save for your financial goals even in today’s harsh economy. Here’s some advice when it comes to saving up for three of the most daunting money challenges:

Buying your dream home

If you’re looking to save up for and buy a home, you have your homework cut out for you. First and foremost, you need to take a close look at your current finances. Do you earn enough to pay a mortgage payment? How much can you afford to spend? Will buying a home detract from your other financial goals, like saving for retirement or your child’s college education?

Experts say you should spend no more than 28% of your gross income on home costs, including your mortgage, property taxes and homeowner's insurance. If the expenses of buying and owning a home add up to more than 28% of your annual earnings, the time may not be right for you.

If you’re currently carrying around a hefty load of debt, you should focus on paying that down before you buy a home. Your total debt expenditures, including credit card debt, student loans, car loans and home debts should add up to no more than 36% of your gross income.

Before you even start home shopping, order a credit report. Most lenders require a credit score of at least 720 before they’ll offer you a loan on even the cheapest mortgages.

If your credit score is high enough to qualify you for a mortgage, the next step is choosing the right mortgage. While adjustable-rate mortgages (ARMs) typically include lower payments than fixed-rate mortgages, fixed-rate mortgages offer the peace of mind of an unchanging mortgage payment. While your monthly mortgage amount can change with an ARM, it will always remain the same with a fixed-rate mortgage. Plus, in recent months, fixed-rate mortgages have become more affordable. Therefore, experts are strongly encouraging homebuyers to go with a lower risk fixed-rate mortgage.

Saving for college

College costs are sky-rocketing, and the price tag increases almost every year. While a select few receive scholarships to pay their way, most students end up taking out student loans, which eventually have to be repaid. If you don’t want your child to be stuck paying back loans for years to come, it’s up to you save up for the hefty price of tuition.

You'll want to consider a Coverdell and/or a 529 college savings plan. Earnings in these plans grow tax-free, and withdrawals are not taxed as long as they are used for legitimate education expenses. You can put as much as $2,000 into a Coverdell each year, but you can contribute far more to 529 plans—sometimes up to $300,000 per person.

If you can’t save enough to cover the college tab in full, you may want to explore government loans. These loans are typically cheaper and offer fixed interest rates. However, every unique family’s situation is different. Talk with a financial professional about the most effective way to save up for your child’s higher education.

Building a nest egg

When it comes to planning for retirement, it’s never too early to start saving. Far too many consumers wait until a year or two before retirement before they come up with a retirement plan. According to the 2007 Retirement Confidence Survey, only 60% of workers say they are currently saving for retirement. Unfortunately, those who wait are often the people who outlive their money.

If you want to ensure a comfortable retirement, you need to start saving right away. Diversification is key—if you put all your eggs into one basket, and that basket takes a fall, your retirement savings could be gone in a blink of an eye. Experts say you should have no more than 5% of your net worth in any one position.

If your employer offers a 401(k) or another employer-sponsored retirement plan, by all means take advantage of it. If you put a certain amount into these funds, employers will generally match you contributions.

If you don’t have a retirement plan at work, open an individual retirement account (IRA). In 2009, you can contribute as much as $5,000 to a traditional or Roth IRA and up too $6,000 if you’re 50 or older.

Of course, every person will have unique financial needs after retirement. Meet with a financial advisor to come up with a winning retirement game plan. A professional can help you set realistic retirement goals, recommend the best investments and keep you on track.

HSAs Add Flexibility to Your Health Care Dollars

Health savings accounts (HSAs) provide a tax-advantaged way to save for and pay for your and your family's health care expenses. With an HSA, you set funds aside to pay for health care expenses that are not covered by your health care plan. You receive a tax deduction for amounts you contribute to the HSA, and amounts you withdraw to pay for qualified health care expenses are also free of tax. HSA account funds are invested, giving the HSA growth potential beyond the amount of the contributions you make. Amounts remaining in an HSA at the end of the year carry forward for use in subsequent years.

In order to be eligible to open an HSA, you need to be covered by a high deductible health plan (HDHP) and, generally, have no other health plan. The HDHP can be the coverage you have through your employer, or a policy that you've obtained on your own. An HDHP is defined as a plan with a minimum deductible of $1,100 for individual coverage/$2,200 for family coverage, and annual out-of-pocket maximums of $5,600 individual/$11,200 family (these amounts are for 2008 and are indexed annually for inflation). The plan can include coverage for preventive care that is not subject to the deductible, and still qualify as an HDHP.

Starting in 2007, your maximum annual HSA contribution is based on the IRS limit for your type of coverage, rather than your HDHP's deductible. For 2008, the max contribution for self only coverage is $2,900 and $5,800 for family coverage. Before 2007, the contribution could not exceed the deductible of your HDHP. Unlike many other tax breaks, the HSA contribution maximum does not phase out for individuals at higher income levels.

Because the premium cost for an HDHP will be less than that for a plan with a lower deductible, you can use the amount you save on your health plan premium to contribute to an HSA. Then, you can make additional contributions, if desired, up to the maximum amounts described above. Individuals who are age 55 or older are permitted to make extra "catch-up" contributions (until they enroll in Medicare).

What can you use your HSA for? HSAs were created to pay for health care expenses, and so long as a withdrawal is used for a medical care expense, it will be free of tax. "Medical care" is defined by Sec. 213 of the IRS Tax Code, and includes the types of health care services and supplies that you would expect: physician and hospital services, lab tests, prescription drugs, dental and vision expenses, and the like. A handy guideline as to what is considered a medical care expense is IRS Publication 502. An HSA cannot be used to pay the premium for the HDHP (unless you are on COBRA, or are receiving unemployment benefits).

The philosophy behind HSAs urges individuals to take more charge of, and to be more responsible for, how their health care dollars are spent. For example, instead of paying hefty premiums for extensive health care coverage you may not want or need, you buy a lower cost health plan with a higher deductible. This HDHP still will protect you from the cost of catastrophic health care expenses. However, because it does not provide first-dollar coverage for most care, you face decisions similar to those you make in other purchasing situations: Do I really need these services? If so, am I getting value and quality for the price I pay? In other words, for non-emergency situations, the HSA encourages you to shop around before spending your health care dollars.

If you think an HSA might be right for your situation, your insurance agent or broker can help you get started in setting one up. Many insurance companies sell HSAs that are packaged with an HDHP, and also provide the investment management of the HSA funds. However, any HDHP can be used, so long as it meets the qualification requirements set by law. HSAs also may be established through banks and other financial institutions.

UnitedHealthCare Responds to Swine Flu Concerns

Hello all. I just got this email from UnitedHealthCare and wanted to share it with all of you.
As you may have heard, this past weekend, the United States declared a public health emergency in response to the recent reports of swine flu. UnitedHealthcare wanted to immediately update you on swine flu, offer you and your clients' resources for additional information and let you know what we are doing to address the situation.
What is Swine Flu?Swine influenza, or "swine flu", is a highly contagious acute respiratory disease generally found in pigs, caused by one of several swine influenza A viruses. Although humans do not normally get the disease, the current strain of the virus is contagious, and human infections can occur, according to the World Health Organization (WHO).
Why Has a Public Health Emergency Been Declared?The U.S. public health emergency declaration allows the federal government to free up additional resources to help address this situation, much like it recently did during the public health emergency declarations for the recent flooding in Minnesota and North Dakota.
What Are The Symptoms of Swine Flu?Swine flu symptoms are very similar to seasonal influenza and generally include fever, fatigue, lack of appetite and coughing, although some people also develop a runny nose, sore throat, vomiting or diarrhea, according to the Centers for Disease Control and Prevention (CDC). Individuals should use reasonable precautions if they suspect they may have been in contact with swine flu and contact their primary physician for specific advice. UnitedHealthcare fully insured members can also contact Care24®, a 24-hour toll-free telephone line staffed by registered nurses.
What is UnitedHealthcare Doing to Address this Situation?We are tracking and responding to developments surrounding this situation. We have strong partnerships in the public and private sector, including the CDC, local and state health agencies. We are prepared to fully leverage all available resources, including more than 10,000 in-house clinical experts to address this situation, if needed. We want to assure you, your clients and members that we will judiciously consider all information and are fully prepared to meet your clients' service needs if this situation escalates.
More InformationFor the most up-to-date information, frequently asked questions and more, please refer to the CDC or WHO Web sites:
www.cdc.gov/swineflu/http://www.who.int/en/
We will continue to keep you, your clients and members updated as new information is made available. Please visit UnitedeServices.com or UnitedHealthcare.com for the most up-to-date information.

Ten Tips for Shrinking Your Medical Bills

Word on the street is that health care reform is on the way, but medical costs are still phenomenally high at the moment. Health care spending in the U.S. reached a whopping $2.4 trillion in 2008, according to the National Coalition on Health Care.
Unless you and your family members all happen to be incredibly healthy folks, you’ve probably felt the financial impact of ever-rising medical expenses. These days, all it takes is one trip to the emergency room or a visit to a medical specialist—and suddenly your mailbox is flooded with medical bills.
Fortunately, there are a few ways you can cut down on your annual health care costs. Here are ten medical bill slashing tips that could save you a boatload of money:
Find a primary care physician: In this day and age, many patients simply stop by the local urgent care center when they aren’t feeling well. These centers are fast, convenient and affordable. While going to a primary physician may seem passé, it’s still important to develop a relationship with a doctor you know and trust. Because a primary care physician takes time to get to know you and your medical history, they are more likely to diagnose you correctly and make well-educated decisions about your overall health—which could save you time and money in the long run.
Save on prescriptions: Ask your doctor to prescribe you generic drugs instead of costly brand-name drugs whenever possible. Most health insurance companies charge lower co-pays for generic drugs. You could reduce your prescription costs by $10 to $40 per medication.
Avoid the emergency room: Don’t go to the emergency room unless you actually have a medical emergency. Find out if your physician or pediatrician provides after-hours services or ask if they can recommend an urgent care center. This could save you a trip to the hospital and a great deal of money. Figure out which hospitals are in your health care network and keep the address and phone number on hand. Study your plan’s rules about ambulance services and emergency room co-pays. If an emergency does arise and you’re not sure what to do, call the 24-hour emergency help line number located on the back of your insurance card.
Cut back on specialist visits: Go to your primary care physician before you make an appointment with a specialist. Your regular doctor may be able to help you with your medical problem without a costly visit to a specialist.
Stay healthy: If you quit smoking, keep your weight at a healthy level, exercise regularly, take prescribed medications and get regular check-ups, you’ll save untold amounts money in the long-run on health care expenses. Plus, healthy lifestyle changes can help you keep chronic diseases under control, which means you won’t have to pay as much for costly treatments and prescriptions.
Review your meds: Discuss your regular medications with your primary care doctor every so often. Talk about how long you’ve been taking the prescription, whether it’s working or not and what negative side effects it may have. You and your doctor may decide you no longer need the medication.
Question expensive testing: If your doctor says you need to get an MRI, a CT scan or another costly test, ask if the test is absolutely necessary. Sometimes these tests lead to nothing more than hefty medical bills.
Don’t fall for the drug hype: Every time you turn on the TV there’s a flashy new ad for the latest “miracle” drug. Don’t get caught up in the hype. While some of these newly released drugs may have a few advantages over their older counterparts, the new meds are often much more expensive. Talk to your primary care physician about whether it’s worth it to make the switch—more often than not, it’s not worth the price you’ll pay.
Don’t go crazy with screening tests: Some screening tests are important because they can catch a disease in the earliest stages. However, you can easily get carried away with screening tests. Oftentimes, these tests lead to false alarms and unnecessary treatments. Try to stick with just the screening tests your doctor recommends based on your medical history.
Give it some time: Obviously some medical problems require immediate treatment. For example, if you think you’re suffering from a stroke or heart attack, get medical attention immediately. On the other hand, if you’re just feeling a little under the weather or having minor aches or pains in your joints, you probably shouldn’t rush to the doctor. Oftentimes, if you give yourself a week or so, the discomfort will go away. If you have a cold or a stomach virus, your body will fight it off naturally. Give yourself some time and see if your body can handle it without the help of medication. However, if these symptoms persist for a week or longer, you may want to see your doctor.

Rwanda Basket Co.

Before I leave this earth I want to do something to make a difference in the world. By being a Rwanda Basket Company Sales Consultant I am not only changing the lives of Rwanda's poor with every basket I sell, but I am showing the world that I care about women and children in need.With every basket I sell I am putting life-changing income into the hands of impoverished women and their children in Rwanda. I am truly making a difference! Our children learn by what they see -- As a sales consultant I am teaching my family and friends to care for those less fortunate than themselves as they watch me work to benefit Rwanda's impoverished women and children. I am joining a caring community of consultants that are growing and learning together about making a difference in the world.

Great article on marketing!

Mrs. Fields Cookies Gives Top 5 Marketing Tips for Cookie Franchises

Personal Disability Quotient

I’d like to introduce you to a new number that’s getting a lot of attention these days. It’s called your PDQ, or Personal Disability Quotient. And it represents your chance of having an illness or injury that could force you to miss work for an extended period of time.

It's an important number for you to know because so much depends on your ability to earn an income, from paying your mortgage to saving for retirement and your children’s education.

As your financial advisor, I recommend finding out your PDQ. It only takes a minute, and it can really help you get a better grasp of how much is at stake should you ever face a disability or extended illness. You can calculate your PDQ at http://www.whatsmypdq.org.

Katherine Wichmann Zacharias
www.kswz.biz
Follow me on www.twitter.com/TheWic

Universal Life Definition

Life Insurance which combines the low-cost protection of term insurance with a savings component that is invested in a tax-deferred account, the cash value of which may be available for a loan to the policyholder. Universal life was created to provide more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy. Additionally, the inner workings of the investment process are openly displayed to the holder, whereas details of whole life investments tend to be quite scarce. Premiums, which are variable, are broken down by the insurance company into insurance and savings. Therefore, the holder can adjust the proportions of the policy based on external conditions. If the savings are earning a poor return, they can be used to pay the premiums instead of injecting more money. If the holder remains insurable, more of the premium can be applied to insurance, increasing the death benefit. Unlike with whole life, the cash value investments grow at a variable rate that is adjusted monthly. There is usually a minimum rate of return. These changes to the interest scheme allow the holder to take advantage of rising interest rates. The danger is that falling interest rates may cause premiums to increase and even cause the policy to lapse if interest can no longer pay a portion of the insurance costs.

Three Things Everyone Should Know About Life Insurance

As any financial advisor worth his or her salt will tell you, if you have loved ones who depend on your income, a life insurance policy is a must-have. If you were to die, an effective life insurance plan will ensure that all your family’s financial needs will be covered—from the monthly mortgage and utility bills to your child’s college education. Without life insurance, your family could find themselves in dire straits if something happened to you.
Unfortunately, this advice often falls on deaf ears. In 2008, 68 million Americans still did not have any life insurance, according to the Life and Health Insurance Foundation for Education. On top of that, most people who do have life insurance don’t have enough coverage to fully support their family.
If you do not own any life insurance or have minimal coverage, here are three things you might want to consider:
1. Everyone needs life insurance.
Many people mistakenly assume they have no need for life insurance because their children are grown and no longer require financial support. What these people don’t realize is that life insurance coverage can be used for much more than supporting their loved ones.
For example, the payout from your life insurance policy could be used to cover your final expenses, including medical bills, estate taxes and funeral expenses. Without life insurance coverage, your family will be expected to foot these bills. Considering that the average funeral costs $10,000 or more, do you want to leave this heavy financial burden on your loved ones’ shoulders?
You can also designate life insurance proceeds to help fund a grandchild’s college education or even donate them to your favorite charitable organization.
2. Three times your income may not be enough.
Some people say the best way to determine the amount of life insurance coverage you need is to simply multiply your annual income by three. However, this amount may not be enough. What if your spouse who is unable to work lives many more years after you die? Three years worth of income will not be nearly enough to support your spouse for another eight, ten or even 20 years.
This is why many professionals say the “three times your income” method is not always a good rule of thumb. Because each family faces a unique set of circumstances and needs, you should consider factors other than annual income. Figuring out the right amount life insurance requires a comprehensive evaluation of your financial goals, debts, investments, lifestyle and habits.
3. You’re never too old to buy life insurance.
Many seniors believe they are too old to worry about life insurance because they no longer have loved ones relying on their income. But once again, a life insurance policy can help cover your final expenses after you die so your family is not left with the bill.

Before you discount life insurance, it’s important to know all the facts. These valuable insurance policies can protect your family’s financial well-being, pay off your final expenses and even fund a loved one’s home purchase or college education.
Of course, whether or not you qualify and how much you will pay for life insurance depends on your age, health and the type of insurance you want to purchase. If you are considering buying life insurance, you may want to meet with a financial advisor or insurance agent, who can help you determine how much and what kind of life insurance you need.
One thing is certain: everyone should consider purchasing life insurance. After all, your family’s happiness could depend on it.

Return of Premium Term Life Policies Worth Exploring

To the relief of many consumers, not really satisfied with either of the two types of traditional life insurance, insurance companies have started offering a third option. Called Return of Premium (ROP) Term, this new product combines features of term insurance and permanent insurance. The feature that gets buyers really excited about ROP Term is that at the end of the policy's term, if you're still alive, you get all your premiums back! That's right. Every cent you paid for the policy will be returned to you.
For many people, deciding between the two types of traditional life insurance has been an agonizing choice: Term or Permanent Cash Value? Term or Permanent Cash Value? The question can go round and round in one's head like the hamster on the proverbial exercise wheel.
The premiums are less for Term, but there's no return on the investment unless you die during the 10 or 20 or 30 years that is the policy's term and your survivors collect the death benefit. With today's long life expectancies, it's likely that you probably won't die before the policy expires. You want to protect your dependents, but you may hate the thought of all those premiums paid and nothing to show for them if you live, which is what you reasonably expect to do.
On the other hand, you can build cash value with the savings component of a Permanent Cash Value policy -- whether whole, universal, or variable. Plus the guaranteed renewable feature is attractive, since you don't know what your health may be years from now. But Permanent Cash Value insurance typically costs two or three times as much in premiums compared to premiums for the same death benefit with Term. Should you spend that much more on life insurance for the cash value and permanent features? Can you afford to spend that much more? It's a hard call for many.
What a relief to have this third choice of ROP Term, an elegant solution that splits the problem up the middle. It's like Term Life Insurance in that the policy is effective, as long as you pay your premiums, for a specified period of time, usually up to 30 years. But it adds a cash value feature with the guarantee from the insurer: If you pay your premiums and you live, we'll give you your money back.
On a typical 20-year Level Term Life Insurance policy the ROP feature could cost from 25 to 50 percent more a year than a standard Term policy of the same period. The additional premium, which the insurer invests, provides the cash for the returned premiums. It's like buying traditional term and investing an extra sum that will grow at a steady pace without risk. It's not "free" insurance, but to the majority of people who -- if they buy the coverage while still relatively young and consequently will most likely still be still living at the end of the policy's term -- it sure feels like it is.
The biggest determinant of the extra charge for a Return of Premium feature is the length of time until you get the premiums back. A 30-year policy is less costly than a shorter one because there is more time for the additional funds to grow. A 35-year-old male in good health might pay $970 annually for a 30-year, $500,000 Return of Premium policy. That's $295, or 44 percent, more than regular term from the same insurer. A 20-year policy might cost $1,175, or more than three times the cost of regular term. A 15-year policy, at $1,645, is almost six times the cost of traditional term.
Is the investment component of the ROP Term policy a good investment? By counting the extra premiums paid as the amount invested and the overall premiums paid back as the investment payoff, these policies pay annual returns of 2.5 to 9 percent--the longer the policy's life and the smaller the extra premium, the better the return. And for many people, there's an additional return in tax savings. If you invested the extra premium yourself, the net gain could be taxable. Putting that amount into an insurance policy makes the total payback a refund of the premiums you paid, and thus not taxable.
You reap the big benefits from ROP Term if you keep the policy for the full term. However, you can surrender the policy during the term and get back a portion of the premium. Premiums are returned on a sliding scale that builds up to 100 percent at the end of the term. So if you take out a 20-year policy and cancel at year 15, you can expect to get back about 50 percent of your money. It's unlikely you'll get any return of premium if you surrender the policy within the first five years. That's because insurers only start making a profit on your policy if you stick around more than five years.
What if you bought a car, made the car payments, and then, when you'd finished paying for the car, you got all your car payments back? Who doesn't think that's a pretty swell idea? The new ROP Term Policy takes features from both Term and Permanent Life Insurance and rolls them into one very attractive alternative - just like getting all your car payments back when you finish paying for the car.

Life Insurance As An Asset

Life Insurance as an Asset

Life Insurance is a very important and effective part of your overall financial plan. It allows you to leverage your assets and provides the opportunity to transfer wealth to your beneficiaries "while reducing your concerns as to the performance of your other assets."
The current market conditions provide an excellent opportunity to buy life insurance. Many of you have suffered losses in the recent market fluctuations. It will take years for you to recoup what you have lost. Therefore, why not "insure" those losses? We can do this using Life Insurance. Regardless, I can give you a way to make it through this temporary drop and not affect what you had hoped to have for the benefit of your families.
Allow me to illustrate how Life Insurance can be used as an asset and protector. I provide a spreadsheet for each of you showing what can be done on your behalf. You need an advisor who can help you feel more comfortable about your current financial situation. I can be that advisor!
To get more info. or a customized spreadsheet, call or email today!!

These tough times in the market....

Hello all. I have been assisting a lot of people lately who lost money in the market. Permanent Life insurance, not term, and fixed annuities are the only tax favored financial vehicles out there that didn't lose money in the last few years and won't in the future. They are the only ones with lifetime guarantees right now as well. If you hear of someone in that situation please let me know. I would be happy to give them so free info. I don't know if you know too, I offer my clients, friends, as well as any referrals, free annual financial reviews. Thank you all for your support. Have a nice day.

5 Common Mistakes People Make When Buying Life Insurance

When most consumers think about buying life insurance these days, they immediately think term insurance is the best option. This is not always the case.
Term life insurance, which covers you for a specified amount of time, such as 10, 20 or 30 years, is almost always cheaper, at least in the short-term, than other forms of permanent insurance. The reason: Term insurance only pays out when you die (that is if you die while the policy is in force), while permanent insurance offers coverage for your entire life provided premiums are paid when due and may also include a cash value component.
As with every important purchase, it's crucial that you understand just what you're buying when you shop for term life insurance. Even an inexpensive policy, if not designed to meet your particular financial needs, can result in money down the drain.
The following are five of the most common mistakes consumers make when buying life insurance.
1. Selecting term insurance solely because it's cheap. Shopping for life insurance by just comparing premiums is asking for trouble. You should compare company ratings to determine financial strength and policy features, such as convertibility options. While the policy's premium is certainly a factor, ensuring that your policy matches your financial goals is more important.
2. Not understanding that term insurance is temporary. That's why it's called "term" insurance -- because you buy it for a set period of time, most commonly 20 years. This is fine for a temporary need, such as insuring yourself until your mortgage is paid off or funding your children's college expenses in the event of your premature death.
A 20-year level-term insurance policy you bought when you were 30 would expire when you're only 50. At that point, you still might need to carry insurance, but your age and health conditions might make it impossible or very expensive to do so. At least, if your policy has a convertibility option you can get coverage, it just might be down right unaffordable.
3. Buying from a less-than-stable insurance company. Don't be afraid to ask about an insurance company's ratings. You can also look for an insurer's Standard & Poor's, Moody's or A.M. Best ratings on the Internet.
There are many insurance carriers with high financial ratings (A+ or better) so you shouldn't have to buy insurance from a lower rated company. But, keep in mind that ratings can and will change, so ratings alone shouldn't be your only consideration.
4. Buying insurance coverage based on a set formula. You may have heard that a good rule of thumb is to buy life insurance coverage equal to 10 times your annual salary or 10 times your beneficiary's annual financial need. The idea is that if your surviving beneficiary invests the life insurance proceeds in the stock market (getting an average 10 percent annual return), they'll have a steady income stream and never need to tap the investment principal.
While this formula isn't a bad place to start, everyone has different needs, so don't assume that 10 times your salary is what you need to carry in life insurance. The best advice here is to sit down with a knowledgeable agent that will take the time to learn about your needs.
5. Failing to regularly review your policy. Is your former spouse still the beneficiary of your life insurance policy? Did you buy term insurance to cover you while you pay off your mortgage? If you refinanced during the latest rate drop and restarted the clock on your loan, you might also need to update your insurance term. Life definitely has a way of throwing changes your way. Just make sure your life insurance changes along with you.
Bottom line - don't forget to do your homework. Whatever your life insurance needs may be, we can help you investigate the best options for you to help protect your family's financial future.

How Much Life Insurance Do I Need?

How much life insurance you need depends on what you need the insurance to do. As a general rule, the more dependents you have and the longer their dependency is expected to last, the more life insurance you need. But even people with no dependents need some life insurance. Let's look at several typical situations.
People with minor children: The younger your children are, the longer they will depend on your income. Therefore, more insurance will be needed to replace the income you would have provided, should you die while they are still young. If both parents earn income, then both should have life insurance, with insurance amounts proportionate to the amounts they contribute to the family's income. If one parent stays at home with the children, there should be enough insurance to cover the cost of purchasing services, such as childcare and housekeeping, provided by this parent. Should the family budget be insufficient to purchase policies to cover both parents, most insurance experts recommend first insuring the life of the parent who earns more.
Couples with no children or other dependents: These individuals have no need for substantial life insurance if each could live comfortably without the other's income. Each should have enough life insurance to provide for burial expenses, to pay off their outstanding debts including any uninsured medical expenses, and perhaps to leave some money to charities, institutions, or valued family members and friends. If, however, you have a spouse or domestic partner who would experience hardship without the income you provide, you may need insurance to help him or her pay the bills once you are gone.
Single People Without Dependents: This group needs life insurance for burial expenses—which can easily reach $10,000—and for paying off their outstanding debts. Some may want to use life insurance as well to leave contributions to favorite charities or institutions. A young person may also want to buy life insurance so as to lock in a lower premium rate while he or she is healthy.
People who have dependents other than minor children: Some people have parents or family members with disabilities who count on their income. Their life insurance planning should be similar to that of parents with minor children—that is, based upon careful calculation of the amount of income their loved ones would need to continue living comfortably.
As a general guide to how much life insurance to buy, there is an old rule that suggests buying five, six, or seven times your annual salary. But a much more reliable estimate can be made by calculating actual living expenses and the shortfall that would occur should the family no longer have your income.
Here are some of the calculations to include: What is the amount of annual income that your survivors would need to live comfortably? This number includes mortgage or rent, insurance, real estate taxes, home repairs, improvements, furniture, appliances, and all other items bought for the home, as well as utilities and home and property maintenance. It also includes the annual cost of food and sundries, clothing, car payments and other transportation expenses, child and other dependent care, medical care, recreation and travel, and gifts.
Once you have these annual costs calculated, subtract from that figure other sources of income that would be available in the event of your death. For many, this includes Social Security survivor's benefits. You can obtain an accurate estimate by contacting the Social Security Administration. Since the actual amount would depend on your age at death, your earnings and the ages of your children, you may, instead, use the following rough estimates as a guide: $4,000 per year if you have one child under 16, or $5,000 for two or more children under 16. Other sources of income include earnings of your spouse or other household members, pensions, investment income, etc.
Then determine the shortfall between annual expenses and income from other sources. Ideally, the insurance benefit will generate after-tax annual investment proceeds sufficient to cover the annual income shortfall without touching the principle. This can be determined by dividing the shortfall by 4%, 5%, or 6%, depending on how conservative you want to be. It is reasonable to expect an annual return of 6%, but more conservative to account for inflation and interest rate risk by using one of the lower numbers.
Next, you need to determine one-time expenses that will be incurred upon your death. These include funeral costs, any likely unpaid medical expenses, costs of estate administration and estate taxes, debts that your survivors may need to pay off at the time of your death, future education expenses for each child, and any other likely expenses, such as the cost for a surviving parent to go back to school to increase his or her earning power. Add this amount to the amount of insurance proceeds needed that you already calculated to get an estimate of the total death benefit needed.
It's impossible in an article of this length to go through in detail all the calculations that can be necessary to cover each individual's situation. The above is only a general guideline as to the type of analysis that will help most people get an accurate reading on the question of how much life insurance to buy. Your insurance agent can help you refine this analysis to more accurately reflect your own situation.