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What are your New Year Resolu-"tunes"?

You like that? It's word play, and very poor word play I might add.  But hey, we are not here to discuss my attempt at neology (that means creating a new word, but don't worry, I had to look up neology as well!) we are here to discuss Resolutions.  The point is that every year around this time, we all make a decision to change our lives and to add or subtract something that is good or bad... the dreaded New Year Resolution.  I scoured the interweb and found the top 10 New Year Resolutions and you know what?  They are BORING.  So, I offer you to you, my loyal readers (all three of you!) to post your New Year Resolutions here on our blog.  When I return on January 5th, 2008, I will compile all the suggestions into a poll and post it for voting by the public.  On the 12th of January I will post the results and the person who receives the most votes will win a $25.00 iTunes gift card courtesy of us at JLM Insurance Services.  That's it!  Pretty easy if you ask me, you don't have to even keep your resolution to win just follow these (3) steps below.

1) Subscribe to our blog... If you want to be removed the next day, hey we will oblige, but give us a shot and you might like what we have to say!

2)Keep it clean... we are a FAMILY business here, any posts that we deem unacceptable will be removed and you will be disqualified from the contest.  There are plenty of sites to get down and dirty on, and this is not one of them.

3)  Provide us with your (valid) email address by sending us a message (PSST, its over there <---) so we can get in touch with you if you win.  All emails are kept in strict confidence (hey we are in insurance, it's what we do!) and we will not sell or share your info in any way.

That's it!  Pretty easy, huh? 

Ok, maybe a few more things... you do not have to purchase anything to participate.  This poll is open to all residents of the US.  Vote as much as you want, but only one vote a day.  Tell your friends, family and enemy if you really want to win.  Heck, we might be in a giving mood and offer a second place prize of a $15 dollar iTunes gift card as well!

To get you motivated, here are the top 10 New Year Resolutions as found on the internet, in no particular order, boring or not!

1) Quit Smoking

2) Lose Weight

3) Quit Drinking

4) Go Back to School

5) Spend More Time with Your Family

6) Try Something New

7) Help Others

8) Take a Trip, Enjoy Life More

9) Get out of Debt

10) Find a Better Job

Good luck and we look forward to a New Year with all of you!

 

F.O.C.U.S. on your LIFE

Life insurance isn't fun to deal with, and definitely not easy to talk about, but the fact of the matter is that everyone needs something! Most financial advisers will tell you that you can never have enough life insurance, but what is that magic number? How exactly do you figure out when you are adequately insured, or you don't have enough to help your family with the burdens that are left behind when you are gone? We all have a different need because of our diversified lifestyles, but there is a way you can estimate how much insurance you need. I have spent the last few years developing a method that will help my clients individualize their insurance needs. Some clients grasp the life insurance concept better than others, and that is ok, but what about those that might not understand as easily, or better yet have questions that they don't even know they need to ask? The formula that I have presented to my clients is not a new idea, however it is an IMPROVED idea, and it allows you, the consumer, to follow a series of questions and make and educated decision on your own. I call this the F.O.C.U.S. Method.

F- Funeral or Final Expenses.

Funeral Expenses are usually the first expense to come around after the passing of yourself or a loved one. Usually, funerals happen suddenly and with little time to prepare, and with funerals in the U.S. averaging between $6,000-$10,000 per person, this can be a huge financial burden on those left to carry out such a daunting task. You may also hear of these expenses referred to as final expenses because they can cover more that just the funeral itself. Professional expenses, facility and staff expenses, Transportation services, caskets and burial plots, and even flowers can add up quickly and must be considered when planning on having these items covered.

O- Other Debts

Unfortunately, when a loved one passes, a person can't help but think of how they are going to get by. Not just the loss of the companionship, but also the loss of possible financial security. It is natural to run numbers in your head to try and figure out what is needed to make ends meet, but will you remember it all during such a traumatic experience? Mortgages, vehicle loans, credit cards, and other fiduciary responsibilities are still YOUR responsibility even though a change of financial status has taken place. Just because you have suffered a loss, does not mean that a lender will be sympathetic to your pain.

C- College for Children

We realize that not all of our clients have children or grandchildren that need to have college planned for them, but for those that do, this is an extremely overlooked expense. How many of you have student loans that either you are still paying on, or are helping your children out with? It is every parents dream to have their children go to college, and with the cost of tuition on a steady rise (Florida is tossing around the idea of a 15% increase in state tuitions per year for an undetermined amount of time) where will your current financial situation find you in the event that a loss of a family member takes away from savings, income, or tuition payments? The average four year private school tuition is $25,000 per year so typically you would calculate $25,000 for four years per child. With the census stating that the average children per household is over two, you can do the math to see what amount you need.

U- Unforeseen Expenses

Just what it means unforeseen. You have planned for the funeral, called your mortgage company and even sold the extra vehicle. what happens six months later when the hospital wants their money as well? A lot of times people are hospitalized before they pass and that bill can add up quickly. Even with good major medical insurance, the average cost per day in a hospital can be well over $3,000 per day. Would you deny a treatment to your spouse or child, that could save their life, just because the insurance company says that treatment is not covered? Well guess what? most hospitals won't either, but they will want to get paid for such treatment. Were you out of work while all of this was taking place? Do you have any deductibles or co-insurance? These items add up and are most often overlooked. The best way to prepare is to guess, but better to guess on the high side than not have enough in the end.

S- Salary/Income

Salary/Income would be important for your spouse so that they could maintain the same lifestyle they were accustomed to. The best way to calculate your projected needs are to take all debt listed above aside and determine how much additional money would be needed to live on an annual basis. Once you have determined that annual amount (again, minus ALL expenses since we took care of them above) you should multiply that amount by five or ten years depending on the ages of your children. If you don't have any children, or near/past retirement age, you would want to estimate the number years based on the average life expectancy of 77 years. Let me give you an example below.

To give you an example:

F- Funeral expense $10,000

O- Mortgage- $150,000 Loans- $40,000 other debt- $10,000 total $200,000

C- College for two children $25,000 x 4 x 2= $200,000

U- Unforeseen Expenses $15,000

S- Salary $25,000 x 5= $125,000

TOTAL MONIES NEEDED $550,000

Now you would subtract any life insurance you already have in place, it is estimated that in the U.S. the average life insurance policy is for $100,000. As you can see if you subtract $100,000 from $550,000 that leaves a deficit of $450,000 in monies needed. The numbers that I used are not unrealistic numbers as I took the average funeral cost, mortgage cost, college cost, and salary (remember this is salary needed to live after all debts are gone, not what you currently make. Average US salary is almost $51k) This could put any average two income working family, with two cars and a home andtwo kids on their way to college family out on the streets in a blink of an eye.

There is one thing to buy enough life insurance but another to be insurance poor. What most people don't realize is that insurance, when properly planned for, can be very cost effective. The average cost of a $500,000, 20 year term policy for my clients is $65.00 per month! That is $2.17 per day for a lifetime of peace of mind.

We want you to F.O.C.U.S. on your life, educate yourself and others. Your loved one's will thank you for it! For a free no obligation quote, please visit us at www.jlminsuranceservices.com. If we cannot help you, we will help you get in touch with an agent in your area that can! Any and all questions and comment will be appreciated.

Can Disability Insurance Protect Your Way of Life?

Disability insurance was created to insure you for a disabling sickness or injury, these plans will provide an individual the ability to continue their standard of living should something tragic happen. You may read about diability insurance in the newspaper, or a flyer from our agency and really not think of it as something that might actually happen to you, but it is all to frequent of a trend.  Should you be involved in a major life altering event, Disability insurance replaces part of your income, tax free, in order to assist the sick or injured worker during a period when he or she cannot perform regular job functions. These benefits can help safeguard your standard of living in the event your regular paycheck stops because you can't work. Disability income insurance is one of the most important ways to protect your family and assets and is an important type of coverage for working-age people to consider. Depending on your occupation: your amount of insurance could differ greatly from your friends and family or neighbors.  The more dangerous your job, the higher the premiums and limitations. Benefits usually begin after 30, 60, 90, or 180 days of disability depending on the plan and premium you choose...  the longer the waiting period before benefits begin or shortening the benefit period, the lower the monthly, quarterly or annual premiums will be. The best option for most people is the "own-occupation disability plan" which pays benefits even if the disabled worker can do some other tasks.  The other kind of plan available is the  "any-occupation disability policy" where the benefits are not provided unless you or your employees are totally unable to work. The amount of coverage usually can't be more than 2/3 of your current earnings, but for must people the paid benefits from an insurance claim are tax free so even 2/3 of your income is better than no income at all. Although most people realize the importance of long term disability insurance, they simply do not understand what to look for in insurance policies. If you are unsure about what type of policy you should choose or to see if disability insurance is right for you, it is best to consult a trusted professional who can analyze whether or not purchasing disability insurance would be a wise decision.

Holiday Cheer or Bah, Humbug?

Taboo talk - Insurance and the big "C"

Cancer Insurance has become popular primarily due to the devastating nature of the disease on families, the huge medical costs involved in treatment and the increasing rates of both incidents of the disease and survival rates with proper treatment. These policies should only be bought to supplement existing health plans. A cancer insurance policy pays benefits when you are diagnosed with cancer and it is renewable for life and is available to individuals and families. These policies will lessen the financial strain by providing you with immediate benefit, but be advised, they often do not cover secondary or cancer-related illnesses and injury such as infection, diabetes or pneumonia. A cancer policy should not be considered a substitute for major medical coverage, as many people may assume, and is available to people who up until the start date of the policy, have not been diagnosed with any cancer ailment. However, if you do have major medical insurance, cancer insurance benefits may be used for covering transportation costs, living expenses and childcare. Cancer insurance policies may be purchased individually or, in some cases, through your employer's benefits program.

Regardless of your families history of cancer you are still most likely eligible for cancer insurance. Furthermore, your entire family can be covered by a cancer policy for pennies a day. If cancer strikes you or your family, a cancer insurance policy can help provide the protection you need to face you future with confidence. We believe you must be educated and do your research prior to making a cancer insurance purchase and we are here to help. If you are considering supplemental cancer insurance, you need to shop around to find the best coverage for your needs. Also, it is essential that you speak with a licensed representative who can answer questions you may have about the different cancer insurance policies available. Our completely FREE service not only includes cancer insurance quotes, but we also: help complete your application, expedite your application through the insurance company and forward your policy to you.

Local Agents Provide Better Customer Service than Call Centers

According to a JD Power & Associates 2008 Insurance Customer Contact Survey; insurance customers who deal with a local agent as apposed to a large call center are more satisfied with the service provided.  In return this brings policy retention and loyalty to the agency. Why is service better with a local agent?  To state the obvious, they are local. They live and work in the same area you do. You can call or stop by as apposed to calling and waiting on hold.  In most agencies you have a dedicated agent that you do business with.  At call centers you talk to a different person every time you call and most of the time they are in a different state.  The agent, in most cases, will call the insurance company for you. Most agencies represent a number of different companies and can offer the best plans for your needs.  With a call center you are dealing with that insurer only. It doesn't surprise me that people are more satisfied with a local agent.  I am a local agent myself and there is a certain amount of pride you carry when it is your business you are running.  I want to make my clients happy and have them continue to come back to me and to refer people my way.  I want to provide the best service and I do!

Balanced Politics or Universal Healthcare?

With the election coming to an end, it raises new questions about what will happen to the US within the upcoming months. My major concern you ask? Universal Healthcare. To quote president elect Barack Obama, "The Time Has Come for Universal Health Care" (http://obama.senate.gov/speech/070125-the_time_has_co/). Now, it is no secret that I am not a fan of Obama but that is a story for another day. But what I am is a wife, mother, small business, home and car owner, a tax payer, a church goer, gun owner and all around good American. That means I want what is best for my country, my family and my future. But is universal healthcare really the answer? All the talk about putting a universal healthcare plan in place has me left me with a lot of questions and even less answers. Here is my take on things. Some people believe that this is what we need due to the rising cost of insurance and the amount of people who are uninsured. I do admit that the cost of insurance, at times, is unaffordable and the amount of people who are uninsured is only rising due to the loss of jobs, increased living expenses and businesses no longer providing coverage to their employees just to save a dime. There are over 40 million Americans without healthcare. That is an astonishing number don't you think? So it sounds nice to have a healthcare plan paid for and administered by the government, doesn't it? But, think of the things that could go wrong? When I think "free" health insurance is it really ever free? Taxes will be increased or other budgets cut to cover the cost of the proposed plan. If your taxes go up and other government spending is reduced, does that really save you that much money? It is also likely that there will be more restrictions put in place by the government. You could lose your freedom to choose what coverages, what providers and what prescriptions are available for you and your family. There is a chance that a universal healthcare plan could discourage people from pursuing a career as a medical provider and more than likely put smaller practices out of business, not to mention the thousands of jobs that will be lost in the insurance industry. I could be one of those lost jobs. As an independent insurance agent, I contemplate everyday whether I will have a job in my current field in the next 10 years. The entire insurance industry could be unnecessary to have with a universal plan. All health insurance companies, including insurance agencies like mine, would go out of business, therefore, there will be more people added to the unemployment rate that is at an all-time high! Our economy doesn't need a universal healthcare plan; we need to focus on the other issues at hand... We need to create jobs, not take more away. This is just my opinion and it can be taken for what it is... an opinion. I welcome any and all discussions because I for one know I don't have the answer, just my two cents.