Soon we'll have a newwebsite that is launching for the newly formed Baldwin Insurance Associates.
Stay tuned!
Thursday, April 29, 2010
Tuesday, May 5, 2009
Disability Insurance Awareness Month
Folks, it's that time of year again. May is Disability Insurance Awareness Month. This is the most overlooked of all insurance coverages. Imagine the impact a 12 month disability would have on your family.
How would you pay your mortgage if you couldn't work for 18 months while you recovered from a stroke? Who would buy your groceries if an accident took away your ability to work for 9 months?
How would you pay your mortgage if you couldn't work for 18 months while you recovered from a stroke? Who would buy your groceries if an accident took away your ability to work for 9 months?
Friday, May 1, 2009
Money For Life
I'm reading an excellent book by Jeffrey Reeves titled Money For Life. I'll post a review after I'm done with it. You can check out Jeffrey's website at http://www.youbethebank.com/.
If you want a copy of the book let me know and I can get you one.
If you want a copy of the book let me know and I can get you one.
Monday, April 20, 2009
Some more information on Critical Illness Insurance.
The stats are staggering. 1 out of 2 men, and 1 out of 3 women will develop some sort of cancer. Every 29 seconds someone in the US is having a coronary event (American Heart Association 2006), Every 45 seconds some in the US is having a stroke.
If you suffer one of these illness, what do you think a tax-free lump sum of cash would do for you?
You'd be free to choose the providers you want to see. You'd be able to have your spouse by your side. You could pay your bills and not have to worry. You could take extra time from work to get back on your feet.
The stats are staggering. 1 out of 2 men, and 1 out of 3 women will develop some sort of cancer. Every 29 seconds someone in the US is having a coronary event (American Heart Association 2006), Every 45 seconds some in the US is having a stroke.
If you suffer one of these illness, what do you think a tax-free lump sum of cash would do for you?
You'd be free to choose the providers you want to see. You'd be able to have your spouse by your side. You could pay your bills and not have to worry. You could take extra time from work to get back on your feet.
Friday, April 17, 2009
Critical Illness Insurance, the new kid on the block
It sure seems like I know a lot of people that have been diagnosed with cancer. Family members, family friends, famous stars, professional athletes, it seems no one is immune. If there is any good news it is that many people are surviving after bouts with cancer.
But have you ever considered the financial costs associated with cancer? Sure you have health insurance to pay your hospital bills, maybe even disability insurance to pay your on going expenses. But what about the expenses you didn't have before cancer? Maybe there's a treatment out there that your health insurance won't pay for? What about long stays in hospitals far away from home? It is said over 65% of the cost of cancer treatment is not covered by health insurance.
What about strokes? Heart attacks? Motor neuron diseases? What about severe accidents that cause paralysis? Or severe burns? Blindness? Even deafness?
Modern medicine has saved people that thirty years ago would have died. We have helicopters and jets that can fly us to the best hospitals all over the country in a matter of hours. Even the invention of the seat belt has saved lives that would have been lost only a couple of decades ago.
We always read about survival stories. They are great. But what we don't often read about is the financial costs that can devastate people's finances.
The inventor of critical illness insurance wasn't an insurance executive, or an insurance agent, or an insurance actuary. No, critical illness insurance was invented by Dr. Marius Barnard who assisted his brother with the first heart transplant in 1968. He was saving lives only to find out his patients were succumbing to financial devastation. In many cases the financial stress of surviving a critical illness would end up killing the patient.
Think about someone that has survived invasive cancer or someone that has survived a stroke. Do you think a lump sum check for $100,000, or $50,000 or even $10,000 would have helped?
I'll write more about critical illness insurance as I think it is critical!
But have you ever considered the financial costs associated with cancer? Sure you have health insurance to pay your hospital bills, maybe even disability insurance to pay your on going expenses. But what about the expenses you didn't have before cancer? Maybe there's a treatment out there that your health insurance won't pay for? What about long stays in hospitals far away from home? It is said over 65% of the cost of cancer treatment is not covered by health insurance.
What about strokes? Heart attacks? Motor neuron diseases? What about severe accidents that cause paralysis? Or severe burns? Blindness? Even deafness?
Modern medicine has saved people that thirty years ago would have died. We have helicopters and jets that can fly us to the best hospitals all over the country in a matter of hours. Even the invention of the seat belt has saved lives that would have been lost only a couple of decades ago.
We always read about survival stories. They are great. But what we don't often read about is the financial costs that can devastate people's finances.
The inventor of critical illness insurance wasn't an insurance executive, or an insurance agent, or an insurance actuary. No, critical illness insurance was invented by Dr. Marius Barnard who assisted his brother with the first heart transplant in 1968. He was saving lives only to find out his patients were succumbing to financial devastation. In many cases the financial stress of surviving a critical illness would end up killing the patient.
Think about someone that has survived invasive cancer or someone that has survived a stroke. Do you think a lump sum check for $100,000, or $50,000 or even $10,000 would have helped?
I'll write more about critical illness insurance as I think it is critical!
Wednesday, April 15, 2009
More money savings tip when buying car insurance:
5. Don't buy your newly licensed teen driver a new car. Let them drive around a modest car that doesn't require physical damage coverage. Teen drivers are far more likely to get into a wreck than an adult driver. Their rates reflect that.
6. Have your insurance agent check the rates on the new car you are buying, before you buy it. Let's face it, we don't always think of the expenses of a new car when we're test driving it for the first time. When that new car smell hits you for the first time, sometimes all rational thought goes out the window. But if you don't want to be surprised when your bill comes for the new car's insurance, do a little leg work on the front end.
7. Discounts, discounts, discounts. Companies are offering discounts for all sorts of things now days. The more discounts you qualify for the less you will pay for insurance. Do you own a home? Do you have a clean record? Are you claims free? These are just a few of the discounts that might be avalible.
8. One way not to save money is to skimp on the important coverages. Your liability insurance is one of the two most important coverages on your car insurance policy. In an instant something terrible could happen and everything you've worked for could be gone if you don't have good insurance. Now I can't tell you how much liability insurance to buy I can only recommend you buy as much as your car insurance company will sell you. Most companies offer up to $500,000 of liability insurance but some are now going as high as $1,000,000 or higher. Buy it.
The other coverage I think is vital is uninsured/underinsured motorist coverage. Buy the same amount of coverage as you do for your liability insurance. Look, not everyone buys insurance. And many of the people that buy insurance only buy the state required limit of $25,000 of bodily injury insurance. How far will $25,000 worth of insurance take you if you are taken to intensive care for a few days following a car accident? After a couple of weeks of physical therapy do you think the $25,000 the other guy's insurance company pays you will pay your medical bills? What about your lost wages?
Thanks for reading!
5. Don't buy your newly licensed teen driver a new car. Let them drive around a modest car that doesn't require physical damage coverage. Teen drivers are far more likely to get into a wreck than an adult driver. Their rates reflect that.
6. Have your insurance agent check the rates on the new car you are buying, before you buy it. Let's face it, we don't always think of the expenses of a new car when we're test driving it for the first time. When that new car smell hits you for the first time, sometimes all rational thought goes out the window. But if you don't want to be surprised when your bill comes for the new car's insurance, do a little leg work on the front end.
7. Discounts, discounts, discounts. Companies are offering discounts for all sorts of things now days. The more discounts you qualify for the less you will pay for insurance. Do you own a home? Do you have a clean record? Are you claims free? These are just a few of the discounts that might be avalible.
8. One way not to save money is to skimp on the important coverages. Your liability insurance is one of the two most important coverages on your car insurance policy. In an instant something terrible could happen and everything you've worked for could be gone if you don't have good insurance. Now I can't tell you how much liability insurance to buy I can only recommend you buy as much as your car insurance company will sell you. Most companies offer up to $500,000 of liability insurance but some are now going as high as $1,000,000 or higher. Buy it.
The other coverage I think is vital is uninsured/underinsured motorist coverage. Buy the same amount of coverage as you do for your liability insurance. Look, not everyone buys insurance. And many of the people that buy insurance only buy the state required limit of $25,000 of bodily injury insurance. How far will $25,000 worth of insurance take you if you are taken to intensive care for a few days following a car accident? After a couple of weeks of physical therapy do you think the $25,000 the other guy's insurance company pays you will pay your medical bills? What about your lost wages?
Thanks for reading!
Tuesday, April 14, 2009
How to save money on Car Insurance:
Let's take a look at a couple of ways you can save money buying car insurance.
1. Keep your credit score high. Like it or not, insurance companies use credit scoring as one factor in the price of car insurance. Pay your bills on time. Pay your credit cards in full each month. Those are just a couple of ways to help your credit score.
2. Multi-policy discounts. Check to see if the company that insures your home can also insure your car. Many times you can save 15% to 20% by having both policies with one company.
3. Pay your car insurance in full every six months. Some companies offer a substantial discount if you pay for 6 months worth of insurance at a time. If you chose to get bills each month sign up for EFT as the billings fees are a lot less each month.
4. Use an independent agent. If you think you are getting the best deal from someone who sells insurance from one company, think again. Independent agents do the shopping for you.
I'll have more hints in the future.
Let's take a look at a couple of ways you can save money buying car insurance.
1. Keep your credit score high. Like it or not, insurance companies use credit scoring as one factor in the price of car insurance. Pay your bills on time. Pay your credit cards in full each month. Those are just a couple of ways to help your credit score.
2. Multi-policy discounts. Check to see if the company that insures your home can also insure your car. Many times you can save 15% to 20% by having both policies with one company.
3. Pay your car insurance in full every six months. Some companies offer a substantial discount if you pay for 6 months worth of insurance at a time. If you chose to get bills each month sign up for EFT as the billings fees are a lot less each month.
4. Use an independent agent. If you think you are getting the best deal from someone who sells insurance from one company, think again. Independent agents do the shopping for you.
I'll have more hints in the future.
Friday, December 7, 2007
Happy Holidays
I just wanted to wish everyone a Happy Holiday this time of year. I need to keep updating but I have been busy lately.
Monday, August 27, 2007
Why annuities????
Today (and for the next few posts) I thought I'd write about the reasons to buy an annuity.
So let's start this off with a post about safety. The nice thing about buying fixed-deferred annuities is the have no 'stock market' risk. Not only will get a return on your money, you are guaranteed to get a return of your money.
Even with a fixed-index annuity which pays you an interest rate the moves with the changes in the stock market, you are guaranteed not to lose money in the market.
Even with years to go before retirement, gen xers would be smart to put a portion of their money in vehicles that don't lose money.
Of course you always have the risk of insurance company defaulting but you use insurance companies to insure your home, your cars, even your life.
So let's start this off with a post about safety. The nice thing about buying fixed-deferred annuities is the have no 'stock market' risk. Not only will get a return on your money, you are guaranteed to get a return of your money.
Even with a fixed-index annuity which pays you an interest rate the moves with the changes in the stock market, you are guaranteed not to lose money in the market.
Even with years to go before retirement, gen xers would be smart to put a portion of their money in vehicles that don't lose money.
Of course you always have the risk of insurance company defaulting but you use insurance companies to insure your home, your cars, even your life.
Friday, August 17, 2007
Fixed-index annuities, more thoughts
I am not advocating for the elimination of the stock market in your retirement portfolio. Like I said, I own mutual funds and stocks. Of course you have to make the decision for yourself.
I am suggesting everyone, whether young or old, should take a look at indexed annuities. They don't replace stock market investing but I do think they compliment it very well.
FIA's are also not a short-term savings vehicle. They are designed to be held for a number of years. Some have surrender charges as long as 15 years or more.
I am suggesting everyone, whether young or old, should take a look at indexed annuities. They don't replace stock market investing but I do think they compliment it very well.
FIA's are also not a short-term savings vehicle. They are designed to be held for a number of years. Some have surrender charges as long as 15 years or more.
Thursday, August 16, 2007
An example of an FIA crediting method
Yesterday I started writing about one of my favorite retirement savings vehicles, the fixed-index annuity.
So how does an insurance company credit an FIA contract with interest?
One popular design is the annual point-to-point reset design. Let me explain how this works.
This annuity takes one measurement of the index on day one, and another measurement exactly one year later (though some take an average of everyday over the last month). The difference in the index value is calculated and a percentage of change is determined. As an example:
Assume on December 31 2007 the index in the contract has a value of 1000. Assume on December 31, 2008 the value of the index is 1100. The difference is 10 percentage points. Theoretically the insurance company would credit all those contract holder's that purchased their annuity on December 31 with a ten percent increase. But, if you remember from yesterday the annuity never gets the full growth of the index, only a portion.
Right now some of my favorite point-to-point contracts are utilizing what they call a participation rate to limit the gain of the contract.
Let's look at the example again and let's assume a 50% participation rate. The policy would credit a 5% gain (50% of 10%).
And on December 31, 2008 the new index value is 1100 and the next year's gain or loss will be measured against the 1100 value.
If you had purchased an annuity with $10,000 the value would now be $10,500. Of course if you were able to buy the index itself with your $10,000 it would now be worth $11,000.
Now let's take a look at what happens in a down year.
Assume on July 31, 2007 the index value is 1000 and on July 31, 2008 the value is 750. What interest rate does the annuity contract credit? 0%. While those that purchased the index directly had a 25% loss, the index annuity didn't lose anything. And as an added bonus, the new starting point is 750. So any gain or loss for the year 2008 will be measured against the 750 index value.
If the next year (July 31, 2008 to July 31, 2009) the index goes from 750 to 800 the index annuity with a 50% participation rate would credit about a 3.5% gain. If you had bought the index directly in on July 31, 2007 you'd still be down 20%.
With a $10,000 purchase, the index annuity value would be $10,350 while money that bought the index directly would be value at $8000.
And that is the reason I like index annuities so much. If I knew what the stock market was going to do each year, I wouldn't buy an indexed annuity, ever. If I knew the stock market was only going to go up, I'd buy as much of the index as I could afford, I might even be tempted to borrow some money to invest.
But that's not how the market works. Sometimes it goes up, and sometimes it goes down. Personally I do own some stocks and some mutual funds. But I also own a few indexed annuities. I like to have some money that I won't ever lose.
I hope the clears up a little confusion on fixed-indexed annuities. Of course there are bunch of different ways FIA's credit interest, this is just one of the options.
So how does an insurance company credit an FIA contract with interest?
One popular design is the annual point-to-point reset design. Let me explain how this works.
This annuity takes one measurement of the index on day one, and another measurement exactly one year later (though some take an average of everyday over the last month). The difference in the index value is calculated and a percentage of change is determined. As an example:
Assume on December 31 2007 the index in the contract has a value of 1000. Assume on December 31, 2008 the value of the index is 1100. The difference is 10 percentage points. Theoretically the insurance company would credit all those contract holder's that purchased their annuity on December 31 with a ten percent increase. But, if you remember from yesterday the annuity never gets the full growth of the index, only a portion.
Right now some of my favorite point-to-point contracts are utilizing what they call a participation rate to limit the gain of the contract.
Let's look at the example again and let's assume a 50% participation rate. The policy would credit a 5% gain (50% of 10%).
And on December 31, 2008 the new index value is 1100 and the next year's gain or loss will be measured against the 1100 value.
If you had purchased an annuity with $10,000 the value would now be $10,500. Of course if you were able to buy the index itself with your $10,000 it would now be worth $11,000.
Now let's take a look at what happens in a down year.
Assume on July 31, 2007 the index value is 1000 and on July 31, 2008 the value is 750. What interest rate does the annuity contract credit? 0%. While those that purchased the index directly had a 25% loss, the index annuity didn't lose anything. And as an added bonus, the new starting point is 750. So any gain or loss for the year 2008 will be measured against the 750 index value.
If the next year (July 31, 2008 to July 31, 2009) the index goes from 750 to 800 the index annuity with a 50% participation rate would credit about a 3.5% gain. If you had bought the index directly in on July 31, 2007 you'd still be down 20%.
With a $10,000 purchase, the index annuity value would be $10,350 while money that bought the index directly would be value at $8000.
And that is the reason I like index annuities so much. If I knew what the stock market was going to do each year, I wouldn't buy an indexed annuity, ever. If I knew the stock market was only going to go up, I'd buy as much of the index as I could afford, I might even be tempted to borrow some money to invest.
But that's not how the market works. Sometimes it goes up, and sometimes it goes down. Personally I do own some stocks and some mutual funds. But I also own a few indexed annuities. I like to have some money that I won't ever lose.
I hope the clears up a little confusion on fixed-indexed annuities. Of course there are bunch of different ways FIA's credit interest, this is just one of the options.
Wednesday, August 15, 2007
A great retirement planning tool!
Today I thought I'd mix it up and write about one of my favorite retirement savings products:
Fixed-Indexed Annuities (formerly called equity-indexed annuities)
Imagine sitting down at a blackjack table in Las Vegas with these rules:
You can never lose money when you lose a hand. You get to keep your bet. If you lose ten hands in a row, you still get to keep your original bet.
But it comes at price. The price is when you win, you only win a portion of the amount of the bet.
Would you like to play blackjack with those rules?
That's essentially the nuts and bolts of a fixed-indexed annuity.
What is a standard fixed (deferred) annuity?
A deferred-annuity is an insurance product that earns interest much like a certificate of deposit with one great exception; annuities earn interest tax-deferred. You don't actually pay taxes on your interest earnings until you withdraw the money.
Would you rather earn 5% interest in a taxable CD or in a tax-deferred annuity? That's not hard to figure out.
Now annuities are not short-term savings vehicles. They are to be held for retirement planning. Just to make sure you are using them for retirement the tax law states that if you take any money out of an annuity prior to age 59 1/2 you will incur a 10% tax penalty on the amount withdrawn.
But if you are saving money for retirement in a regular CD it would be a wise decision to look at annuities sold by insurance companies.
The truly amazing aspect of the FIA though is the fact you never lose interest. Now of course there are risks such as insurer default but you use insurance companies to insure your home and possessions, so it is no more of a risk than you have with your homeowners insurance.
Even if the stock market goes down, these FIA's guarantee you will earn some positive interest.
Now you will never earn as much interest as you would if you were invested directly in the S&P 500 for example but you can't lose money either if the index tanks.
I'm in my early 30's and a portion of my retirement program is in FIA's. In fact last year I earned over 6% in one contract and another contract earned 7%. Not too bad.
I love FIA's and I truly think everyone should take a good hard look at them.
If you would like more information, I can send you out a buyers guide to fixed annuities. Just drop me an e-mail at brad.j.baldwin@gmail.com.
Fixed-Indexed Annuities (formerly called equity-indexed annuities)
Imagine sitting down at a blackjack table in Las Vegas with these rules:
You can never lose money when you lose a hand. You get to keep your bet. If you lose ten hands in a row, you still get to keep your original bet.
But it comes at price. The price is when you win, you only win a portion of the amount of the bet.
Would you like to play blackjack with those rules?
That's essentially the nuts and bolts of a fixed-indexed annuity.
What is a standard fixed (deferred) annuity?
A deferred-annuity is an insurance product that earns interest much like a certificate of deposit with one great exception; annuities earn interest tax-deferred. You don't actually pay taxes on your interest earnings until you withdraw the money.
Would you rather earn 5% interest in a taxable CD or in a tax-deferred annuity? That's not hard to figure out.
Now annuities are not short-term savings vehicles. They are to be held for retirement planning. Just to make sure you are using them for retirement the tax law states that if you take any money out of an annuity prior to age 59 1/2 you will incur a 10% tax penalty on the amount withdrawn.
But if you are saving money for retirement in a regular CD it would be a wise decision to look at annuities sold by insurance companies.
Right now regular annuity rates and CD rates are very similar. And I would bet in the next couple of years, annuity rates will actually be higher than CD rates. Add in the tax deferral and it seems like a no-brainer to me.
So what is a fixed-index annuity?
Instead of declaring an interest rate at the start of the term like a bank declares a CD's interest rate, some annuities base their interest rate on the movement of the stock market. These are called fixed-indexed annuities (FIA's for short). Based on a formula declared within the annuity contract itself, FIA's use the movement of one (or more) of the major stock market indices to determine an interest rate.
Primarily the FIA's use the S&P 500 as the index although many now use the Dow Jones and some even use Lehman Brother bond index.
The truly amazing aspect of the FIA though is the fact you never lose interest. Now of course there are risks such as insurer default but you use insurance companies to insure your home and possessions, so it is no more of a risk than you have with your homeowners insurance.
Even if the stock market goes down, these FIA's guarantee you will earn some positive interest.
Now you will never earn as much interest as you would if you were invested directly in the S&P 500 for example but you can't lose money either if the index tanks.
I'm in my early 30's and a portion of my retirement program is in FIA's. In fact last year I earned over 6% in one contract and another contract earned 7%. Not too bad.
I love FIA's and I truly think everyone should take a good hard look at them.
If you would like more information, I can send you out a buyers guide to fixed annuities. Just drop me an e-mail at brad.j.baldwin@gmail.com.
Thursday, August 2, 2007
Summer heat...
It has been hot here. Seems like every week we see temperatures in the 100's. I will be posting again in the next few days. If there's a type of insurance you'd like a little information on, please drop me a line.
Wednesday, May 2, 2007
Disability Insurance Awareness Month, May 2007
This is the first annual Disability Insurance Awareness Month. You will probably see a bunch of ads for disability insurance month. Finally someone has listened. We absolutely need to raise the awareness for the need for disability income insurance.
Check out http://life-line.org for more information on disability income awareness month.
Also, check out this link if you want to learn the FACTS about disabling illnesses and injuries:
http://life-line.org/real-risk.html
Did you know nearly 48% of mortgage foreclosures are due to a disability? Only 4% are due to death. Also, only one house in about 1800 will ever burn down, and yet every homeowner I know has insurance in case of fire.
Another interesting statistic I came across today: There are about 170,000,000 life insurance policies in force in America today. But less than 6,000,000 indivudually-owned disability income policies. Knowing what you now know about mortgage foreclosures it's time to take a look at disability income.
Check out http://life-line.org for more information on disability income awareness month.
Also, check out this link if you want to learn the FACTS about disabling illnesses and injuries:
http://life-line.org/real-risk.html
Did you know nearly 48% of mortgage foreclosures are due to a disability? Only 4% are due to death. Also, only one house in about 1800 will ever burn down, and yet every homeowner I know has insurance in case of fire.
Another interesting statistic I came across today: There are about 170,000,000 life insurance policies in force in America today. But less than 6,000,000 indivudually-owned disability income policies. Knowing what you now know about mortgage foreclosures it's time to take a look at disability income.
Tuesday, May 1, 2007
Do you need another reason to buy whole life insurance on a child?
I forgot one of the best reasons to buy a participating-whole-life-insurance policy on a child:
The rates will never ever go up. The rate I pay today, will be the same rate my son pays when he is 65 on this policy. I can tell you the rate a 35 year old pays for a new policy for the amount of insurance I am buying on my son is a whole lot higher than the rate he will be paying when he is 35.
In fact he may he may be able to quit paying the premium long before he is 65 but that is a different topic for a different day.
The rates will never ever go up. The rate I pay today, will be the same rate my son pays when he is 65 on this policy. I can tell you the rate a 35 year old pays for a new policy for the amount of insurance I am buying on my son is a whole lot higher than the rate he will be paying when he is 35.
In fact he may he may be able to quit paying the premium long before he is 65 but that is a different topic for a different day.
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