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Get More Information Of Insurance Law

2009-04-23T06:05:00.000-07:00

In the absence of insurance, three possible individuals bear the burden of an economic loss; the individual suffering the loss; the individual causing the loss via negligence or unlawful conduct; or lastly, a particular party who has been allocated the burden by the legislature, such as employers under Workmen's Compensation statutes.

While types of insurance vary widely, their primary goal is to allocate the risks of a loss from the individual to a great number of people. Each individual pays a "premium" into a pool, from which losses are paid out. Regardless of whether the particular individual suffers the loss or not the premium is not returnable. Thus, when a building burns down, the loss is spread to the people contributing to the pool. In general, insurance companies are the safekeepers of the premiums. Because of its importance in maintaining economic stability, the government and the courts use a heavy hand in ensuring these companies are regulated and fair to the consumer.

Up until 1944, insurance was not considered "commerce" and not subject to federal regulation. But in United States v. South-Eastern Underwriters Association, the Supreme Court held that Congress could regulate insurance transactions that were truly interstate. Congress then enacted the McCarran-Ferguson Act (15 U.S.C. § 1011) which provided that the laws of the several states should control the insurance business, but that the Sherman Act, the Clayton Act, and the Federal Trade Commission Act were applicable to the insurance business to the extent that it wasunregulated by state law.

The McCarran-Ferguson Act, broadly speaking, gives states the power to regulate the insurance industry. While state insurance statutes override most federal laws, some portions of federal law (like federal tax laws) are always commanding. Therefore, when researching whether a particular law governs, a good rule of thumb is to ask whether the inquiry is related to the "business of insurance" (where state law governs), or whether it is related to peripherals of the industry (labor, tax law, securities - where federal law governs).

PurinaCare(R) Pet Health Insurance Now Helping Protect Dogs and Cats in California

2009-04-22T08:50:00.000-07:00

PurinaCare Insurance Services, Inc. today announced that pet owners in California can now help give their dogs and cats a lifetime of care with the introduction of PurinaCare, the first pet health insurance under the Purina brand. PurinaCare offers two easy-to-use, high quality and comprehensive plans that are designed to help dog and cat owners in California take advantage of the latest advances in veterinary medicine with less worry about the financial implications. PurinaCare is focused on easing the burden of increasing pet healthcare costs by providing quality coverage for pet owners, who according to a 2007 survey number approximately 71 million.(1)

The plans offered by PurinaCare meet two specific needs. The first plan option, PurinaCare® plus Preventive Care, covers eligible accidents and illnesses for your pet as well as routine expenses like annual exams, eligible vaccinations, flea and heartworm control, and dental scaling/polishing. The PurinaCare without Preventive Care plan insures your dog or cat against the unexpected. It covers treatment of eligible accidents and illness, including those arising from hereditary conditions, and helps you provide high-quality care for your pet should unexpected issues arise.

"For over 85 years, Purina has been a premier name associated with pet care," said David Goodnight, DVM, president and chief operating officer of PurinaCare Pet Insurance Services, Inc. "As pet owners ourselves, we know that dogs and cats are very much a part of your family. That's precisely why we created PurinaCare Pet Health Insurance to help pet owners provide better preventive care and also address unforeseen issues that may arise with their beloved dogs or cats."

PurinaCare Insurances Services, Inc., which is currently one of only two U.S. companies to have received the American Animal Hospital Association Seal of Acceptance for its high-deductible policies, provides an easy-to-navigate Web site (www.purinacare.com) designed for pet owners to compare plans, instantly receive policy quotes, and apply for coverage. The Web site also has a comprehensive Pet Health Library with articles and videos on various pet health issues. Pet owners can also call 1-877-8PURINA to learn more about the pet health insurance plans and receive a free, no-obligation quote. They also can complete an application for insurance online.

With either PurinaCare plan, pet owners can choose an annual deductible from various levels. There is only a 20-percent co-pay once the annual deductible has been met and PurinaCare pays the remaining 80% of eligible expenses. All of the plan inclusions and exclusions are clearly outlined in each policy. In addition, PurinaCare plans allow owners to visit their choice of any veterinarian licensed in the state in which service was provided, including veterinary specialists. PurinaCare directly reimburses clients for all covered claims.

While all dog and cat owners and their four-legged friends can benefit from PurinaCare pet health insurance, there are added benefits for insuring puppies and kittens early in their development. PurinaCare plus Preventive Care provides coverage for certain early-life veterinary procedures including vaccinations, spaying/neutering and micro-chipping. In addition, younger pets can be covered if an accident, illness or hereditary condition covered under the policy occurs unexpectedly. PurinaCare Pet Health Insurance coverage is available for puppies and kittens who are eight weeks of age or older. Like all insurance, there are some limitations and exclusions that apply based on the precise terms of the policy.

Industry Analysts Rate Aflac's Investor Relations Best in the Insurance/Life Category

2009-04-21T06:11:00.000-07:00

Aflac announced today that Institutional Investor has named the Georgia-based insurance company as the best in the Insurance/Life category for investor relations (IR). Aflac received the top selection among publicly traded U.S. companies, chosen by more than 1,000 industry analysts representing both the sell-side and the buy-side of investment professionals.

According to Institutional Investor, both the buy-side and sell-side agree that the quality and transparency of companies' financial reporting and disclosure are paramount, but there are differences too. Buy siders -- with whom IR professionals concentrate much of their efforts -- care most about the quality and depth of the answers to their inquiries, while sell-siders want increased access to senior management.

"This honor speaks directly to the philosophy, accessibility and leadership of Aflac management," Sr. Vice President of Investor Relations Kenneth S. Janke Jr. said. "Our reputation is built upon providing information with openness and transparency regardless of the audience or economic situation. I am proud of our team and thankful for the validation of our efforts from more than 1,000 industry analysts."

"Although companies may be tempted to withdraw from shareholders during tough times, the best IR teams in the U.S. are actively engaging with their investors," said Tom Buerkle, Institutional Investor's executive editor. "Now more than ever, shareholders are looking for clear, up-to-date information from corporate executives."

To determine the leading Business companies for investor relations in the U.S., Institutional Investor surveyed two distinct audiences: (1) Sell-side analysts, and 2) Buy-side analysts and portfolio managers. This year's rankings were based on the opinions of 417 sell-side analysts and 656 buy-side individuals. Individuals were asked to nominate up to four companies for each attribute used to evaluate the effectiveness of investor relations communications -- six for the buy-side and 15 for the sell-side. They were also asked to nominate companies with the most improved IR communications over the past year. All voting was conducted on an unprompted basis.

Indian Insurance Industry Forecast (2007-2009)

2009-04-16T06:33:00.000-07:00

“Indian Insurance Industry Forecast (2007-2009)”, provides extensive research and objective analysis of the growing insurance industry, its product quality, and services in India. This report helps to analyze the leading-edge opportunities critical to the success of the insurance Industry in India. Detailed data and analysis helps investors, financial service providers, and global banking players to navigate through the evolving insurance market in India.

Key Findings
- Taking into account the changing socio-economic demographics, rate of GDP growth, changing consumer behavior and occurrences of natural calamities at regular intervals, the Indian life insurance market is expected to reach the value of around Rs 1683 Billion in the year 2009. The market is expected to grow at a CAGR of more than 200% YOY from the year 2006.
- In 2006-07, pension premium contributed about 22.11% to total premium income of insurers. Interestingly, the figure in the first nine months to December 2005 was 25.22%.
- In the non-life segment, the established players control 65% of the market. So it is their monthly performance that determines how the market as a whole would perform.
- In Motor Insurance Business, Public sector covers almost 68% of the market value whereas the private sector just had 32% market share till September 2006.
- In Accident Insurance Business, private sector players have almost 53% market share with ICICI Lombard as the lead player. Public sector players constitute about 47% market value with New India as the leading player followed by United India.

Key Issues and Facts Analyzed

The research report also addresses the issues and facts that are critical to business success:
- What are the marketing strategies of the players in the insurance industry?
- How is the growth in Health and Group insurance are driving the Insurance sector in India?
- What are the opportunities for the players in this industry and what are the challenges to sustain the Insurance market in India?
- What will be the prospective areas of investments in the insurance industry in the near future?
- Which factors will lead to the growth of Life and Non-life insurance in India?

Key Products Analyzed
Key products like Life and Non-life insurance have been analyzed, supported by facts like revenue and market trends.

Key Players
This section provides an overview of some of the key players in this industry like Bajaj Allianz, ING Vysya, AMP Sanmar Assurance Limited, SBI Life, Tata AIG Life, HDFC Standard, ICICI Prudential Life Insurance, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra Old Mutual, Max New York Life, Met Life, Sahara Life, LIC, Royal Sundaram, Tata-AIG General, Reliance General, IFFCO-Tokio, ICICI-Lombard, HDFC Chubb, New India Assurance Company Limited, National Insurance Company Limited, United India Insurance Company Limited and Oriental Insurance Limited.

Research Methodology Used
Information Sources
Information has been sourced from various sources namely, Books, Newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to access to more than 3000 paid databases.

Find more information of Insurance Market

2009-04-15T06:20:00.000-07:00

The Internet was created to decimate information. It is the perfect place to find insurance information on a variety of insurance types.You can get a complete picture of the benefits offered and determine the value of those benefits. Insurance, being intangible in nature, requires a study of available information and an idea of what is desired for coverage. The more research you do the better idea you will have of what you want. As you know, we often want maximum benefits, but often can only afford what is truly needed. Insurance is defined as " a transfer of risk ”. The insurance companies are agreeing to accept your risk in return for a specified amount of funds. This is called the premium. The richer the benefits are, the greater the risk will be to the insurance company, so
the higher the premium.

This site is designed with you in mind. You are just like us, while doing research for a desired product or service, we want good information that will help us be informed and feel confident about our decisions. The insurance information on this site is the best we can find and we hope it properly serves your needs.

Do your research there's a lot of information here. Be sure to read the
plan outlines and descriptions, match up benefits and quotes and if the
company offering your desired plan is solid, you're set. We have also
worked hard to provide the best recommendations for insurance
providers and brokers. May they serve you well.

The Beneficiary’s Guide to Life Insurance

2009-04-14T06:02:00.000-07:00

If you become the beneficiary of a life insurance policy, you must file a claim to receive any money. This task could be as simple is contacting an insurance agent and filing some paperwork. But, if this is all you do, you may eventually discover that you have missed out on other benefits to which you are entitled. If you spend time finding hidden policies, you may uncover more money than you expected.

For instance, your spouse or family member may have owned one or more permanent (whole life) or term life insurance policies. The first place to look is in a safety deposit box, where unknown policies might lie with other important papers. Some of these policies often are found within credit card statements. Although most of these policies are not large, you may find enough to pay for that funeral or to pay off several bills. If you’re not sure if your spouse or family member owned a policy and your agent can’t find one, you can contact the American Council of Life Insurance (ACLI). Its members can do a free search for you.

If you feel your loved one carried a group policy through work, you might then look for a certificate of insurance as proof. Look for these certificates in your spouse’s or family member’s personal papers, files, and safety-deposit box, if you can access it. You also can check with your spouse’s or family member’s employer, bank, or credit agency, or study loan paperwork or purchase contracts. Read the following sections for a list of types of group policies your spouse or family member may have owned.

The types of policies you might seek include:

* Employer-based group life insurance
* Accidental death and dismemberment policy
* Travel accident insurance
* Mortgage life insurance
* Credit life insurance

When your spouse or a loved one has died, you should notify his or her life insurance company as soon as possible. Usually, you can call the insurance company’s policyholder services department directly, or if the life insurance policy was issued through an agent or an employer, you can ask them to notify the company for you to begin the claims process.

The steps to take to claim the insurance funds include:

* Filing a claim and signing a proof of death form (be sure to have several copies of a death certificate for this process).
* You may also need to fill out a Form W-9 (Request for Taxpayer Identification Number and Certification), which enables the insurance company to notify the Internal Revenue Service about any interest paid to you on the policy value.
* Wait for the company to process the claim, which could take mere days or several weeks.
* Receive the life insurance proceeds, which often are paid as lump-sum cash payments. If you elect to receive a lump-sum payment, you generally will not owe income tax on the life insurance proceeds that you receive as a beneficiary.
* Other settlement options are available. It is best to talk with your insurance agent now, before something happens to you, to make arrangements for other options. Talk with your spouse, your kids and your loved ones to make sure they are insured. If they are, then talk with them about making a will. Preparations such as these are not easy for some people to accomplish, but they make life easier for those who are left behind.

Find Health Insurance Information

2009-04-13T06:18:00.000-07:00

Find indian health insurance information. Stem cell banks will no longer throw the umbilical cord in the wastebasket after collecting the umbilical cord blood. The cord’s lifesaving cells—also known as mesenchymal stem cells (MSCs) in scientific parlance—will be extracted and cryogenically preserved in nitrogen for 15 to 20 years. Along with cord blood stem cells, cord tissue is expected to offer a new hope for those battling diseases like cancer, cardiac disorders, spinal cord injuries, stroke or diabetes.

Stem cell banking majors like Reliance Life Sciences and LifeCell International are now introducing cord tissue banking. The collection process is claimed to be non invasive, painless and usually devoid of infection. The complete service of cord blood stem cell and processing of cord tissue for harvesting stem cells comes at a cost of Rs 63,100 for the first year and annual storage fee of Rs 5,500 for the next 20 years. The overall cost could work out to Rs 1,17,500 for storing and processing of cord blood and cord tissue.

Earlier, after the collection of the umbilical cord blood for stem cell harvesting, the remaining solid cord tissue was discarded. However, extensive research has revealed that the cord tissue is a rich source of mesenchymal stem cells. These stem cells are superior to bone marrow MSCs as these cells are more robust. “With increasing awareness, there has been a lot of interest amongst young parents-to-be and cord blood banking as a concept is catching up in India,” says KV Subramaniam, president and CEO, Reliance Life Sciences.

According to Subramaniam, India is following in the footsteps of the United States, Canada, Singapore, China, Malaysia and the UK in providing cord blood and cord tissue banking services.

Currently, it is estimated that over 30 institutions and hospitals are engaged in stem cell work. The attraction for players in the developed world is India’s relative cost advantage. “For instance, LifeCell plans to charge about $2,500-3,000 for diabetes treatment and $10,000-14,000 for cancer. In the West, similar treatment for diabetes would cost about $8,000-10,000 and for cancer it could go up to $1,00,000, which means India has a huge potential to attract foreign patients,” says Hitesh Gajaria, executive-director, KPMG India.

IRDA to tighten norms on solvency margins

2009-04-11T05:20:00.000-07:00

Insurance Regulatory and Development Authority (IRDA) is tightening its fist for the insurance companies to ensure adequate solvency margins for the insurers.

Working on the 'early warning system' model, the regulator would warn the insurer if its solvency margins go below the stipulated 1.5 level or 1.5 times the business underwritten. It will ask the insurer to sell no further policy if the solvency margins touch 1. The insurnace regulator is also worried about increase in total operating expenses to the premium earned for the insurers.

"Expenses of the insurance companies are increasing. If they do not manage cost, it will have an impact on their solvency margins," said R Kannan, member (actuary) of IRDA.

Total operating expenses to premium earned has increased from 22% to 29% in last five years. "The ideal level should be around 25%," Kannan said. "In the last few years, acquisition cost of policies has also increased while yield has come down. This will have an effect on the net margin of the companies, which will in turn impact their solvency margins," he said. Earlier this year, the regulator directed all domestic life insurance companies to tighten their expense management to procure durable business. It also asked the insurers to submit details of expenses. Present at an interactive session at Merchants' Chamber of Commerce, Kannan said the Institute of Actuarial Society of India is coming out with a report on the norms for valuating life and non-life insurance companies.

World Lowest Price Car - Tata Nano

2009-04-10T06:08:00.000-07:00

The Tata group, India's largest industrial house, is all set for the commercial roll-out of the small-car that hit the global headlines last year, both after its unveiling at the Auto Show in New Delhi and then becoming the centrepiece of a political controversy over the location of its plant at Singur in West Bengal.

The $62.5 billion group finally had to shift its factory to Sanand in Gujarat after cascading politically-motivated protests over land acquisition from farmers raised questions over the company's ability to stick to its launch deadline, informally set for October 2008.

Showcasing its prototype last year, Tata Motors had announced that it will cost all of Rs.100,000 ($2,000) at factory gates - the lowest cost for any car so far. The group has said the booking process and specific details on the retail price will be announced Monday afternoon.

Tata Motors hope to start from the second week of April advance bookings for the 624-cc jellybean car, which has a snub nose, a sloping roof and just about room for five to squeeze in.

Company officials said arrangements were being made to accept bookings with the existing dealers of Tata Motors, at Westside apparel chain and Croma appliances stores promoted by the group, and select branches of the State Bank of India.

Touted as the next revolution in automobiles after the legendary Model T, The Nano will be available in three variants - standard, deluxe and luxury. The base model will have no air-conditioning.

The four-door, five-seat car has a small 33-bhp engine at the rear and is targeted at the strong Indian middle class population that aspires to trade its two-wheelers for a much safer vehicle at an affordable cost.

With a length of 3.1 metres, a width of 1.5 metres and a height of 1.6 metres, Nano also has adequate ground clearance and can effortlessly manoeuvre on busy roads in cities as well as in rural areas.

"Let me announce today that the dealer price for the car will be Rs.100,000 only," Ratan Tata, chairman of the group, had said last year, standing in front of the automobile he had promised to deliver four years ago, taking the project as a personal challenge.

Tata Motors ties up with five insurers for Nano

2009-04-10T05:59:00.000-07:00

Tata Motors has entered into agreements with five insurance companies to offer comprehensive insurance, under the ‘Tata Motors Insurance’ banner, for the Nano.

Companies including National Insurance Company, ICICI Lombard General Insurance, Royal Sundaram Alliance General Insurance, United India Insurance and HDFC Ergo General Insurance have signed agreements with Tata Motors for the Nano.

The rate is kept at 2.76 percent on the ex-showroom price of the car. In New Delhi, the insurance premiums will be Rs 3,468 (standard version), Rs 3,959 (CX), Rs 4,431 (LX).

LIC to expand overseas

2009-04-09T06:59:00.000-07:00

Life Insurance Corporation of India (LIC) said it is planning to enter Australia, New Zealand and South East Asia with an eye on the people of Indian origin as it aims to double its business from overseas Indians.

"We plan to enter into new overseas territories in the new fiscal. We are looking at countries like Australia, New Zealand and Thailand," LIC Managing Director D K Mehrotra said.

"Overseas operations contribute to three per cent of our total premium income now and we aim to make it to five per cent in the next three years," Mehrotra said.

Mehrotra, however, said that the decision to foray into these markets was still at the drawing-board level.

"Various options are being thought upon. This could be through setting up of own subsidiaries or forming joint ventures or just opening up of the representative offices by the company," Mehrotra said.

LIC has strong presence in the Middle East particularly in Bahrain, Dubai, Abu Dhabi, Dubai, Kuwait, Saudi Arabia and Oman. It has also presence in Nepal, Mauritius, UK, Sri Lanka and Kenya.

LIC had forged a tie-up with Qatar's Doha Bank last year.

Sector Wrap: Health insurance stocks mostly climb

2009-04-08T05:37:00.000-07:00

INDIANAPOLIS_Several health insurance stocks outperformed the broader market in trading Tuesday, a day after the federal government released Medicare Advantage rate data that points to a payment drop next year.

One insurer saw its shares rise more than 5 percent, and four others also saw gains in afternoon trading. Meanwhile, the Standard & Poor's 500 index fell more than 2 percent.

The Centers for Medicare & Medicaid Services released after the markets closed on Monday Medicare Advantage rate information for 2010. Insurance stocks dove in February after CMS released preliminary information.

But the government released on Monday final numbers that were "slightly more positive" than the initial information, Wachovia analyst Matt Perry said in a research note.

Still, he expects Medicare Advantage rates to fall 4 percent next year.

"Medicare remains viable, but at a lower margin in 2010," Perry wrote.

Medicare Advantage plans allow the elderly and disabled to receive benefits through private health insurers. They receive a government subsidy and generally offer more benefits than traditional Medicare. More than 10 million people are enrolled in them.

Payment rates for these plans vary by county and patient health, among many other factors.

BMO Capital Markets analyst Dave Shove said Tuesday's gains may reflect relief that Monday's rate information wasn't worse.

"I think it's just a relief thing," he said. "To have a whole group strong in a weak market makes it seem like more than just randomness."

Louisville, Ky.-based Humana Inc. has a sizable Medicare Advantage business, and its shares rose 4 percent, or $1.07, to $27.38. So does Minnetonka, Minn.-based UnitedHealth Group Inc., which saw its stock rise nearly 6 percent, or $1.25, to $23.18.

Other insurers with big Medicare Advantage businesses include Nashville, Tenn.-based HealthSpring Inc. and Tampa, Fla.-based WellCare Health Plans Inc. HealthSpring's shares fell 2 cents to $8.48, while WellCare's stock rose 3 percent, or 43 cents, to $13.19.

Tata AIG Life, SIB in pact

2009-02-06T05:56:00.000-08:00

Tata AIG Life Insurance Company and South Indian Bank have entered into a partnership to provide premium renewal collection services to Tata AIG Life's customers through 520 core banking solutions branches of the bank.

This partnership would provide Tata AIG Life's policy-holders the convenience of paying their renewal premiums by cheque or cash at the nearest branch of the bank, a press release issued here today stated.

This will especially be a convenience for rural customers, the release said.

Customers can make renewal premium payments by cheque or cash up to Rs 49,999 at the bank's branches.

Star Health plans to tie up with overseas companies

2009-02-03T05:36:00.000-08:00

In order to spruce up its growth further, India's first standalone health insurance company, Star Health and Allied Insurance Company Ltd, is in talks with a few insurance players in the overseas markets, particularly in the Middle East, Dubai and other countries in the Gulf apart from Maldives to serve their customers in India while they undergo treatment or on medical tourism visit.

"We are in talks with three to four players in these countries to serve their customers while they visit for any medical treatment or on medical tourism purposes. We hope to finalise the deals in the next three months," said V Jagannathan, chairman and managing director, Star Health.

Addressing a press conference here on the occasion of launching the first of its kind health magazine to its customers across the country, he said it was the kind of reinsurance their policies. The customers of those companies (whom the company is looking at a tie-up), who visit India for medical treatment will be taken care of by Star Health while the overseas companies will be the owners of the policies of them, he said. To a specific question, he said, "It is a better option for both of us." However, he refused to disclose the exact details.

According to him, the company has grown over 300% in the last two years and broken even with a marginal profit. "It is a remarkable achievement for a standalone health insurance company to grow and break even in just two-and-half years of its presence," he said. Star has grown from Rs 120 crore in the first full year of operations to Rs 487 crore as of January-end 2009 and expect to end the current fiscal with Rs 520 crore. "We are looking at Rs 650 crore business by March 2010," he added.

While the majority of the business comes from state government orders, he, however, said that the premium from both the retail and corporate sectors will grow in the years to come.

Indian Insurance Sector ready to tap Rural India

2009-01-28T05:53:00.000-08:00

Life insurance market in semi-urban and rural territories is expected to rise to US$ 20 Billion mark in the upcoming four years from the existing value of less than US$ five Billion. This is because more semi-urban and rural populace would opt insurance cover for a secure future, said Assocham. On the other hand, life insurance market in urban zones is expected to surge to US$ 15 Billion.

As per the paper, non-life insurance business in semi-urban and rural regions would reach to US$ 15 Billion by 2010 while the corresponding value for the urban area is US$ ten Billion.

Anil K Agarwal, President, Assocham, reported that a large segment of rural India is still untouched because of long distances, poor distribution and high return costs. The paper disclosed that the life insurance premium in India is just 1.8% of the GDP as against 5.2% in US and 8% in South Korea.

A Research Analyst at RNCOS, who has recently researched a report called "Indian Insurance Industry Forecast (2007-2009)", says that the progress in the semi-urban and rural areas would largely fuel the growth in insurance sector. The other factors that would boost the growth in this sector are improving economic scenario, increasing disposable incomes, and rising product demands.

The market research report also focuses on facts and issues critical for today's business environment:

- Global insurance industry scenario
- Indian insurance industry in global perspective
- Segment-wise information on public and private players of the industry
- Growth sectors and factors driving change
- Competitive environment and market leaders
- Key Challenges and Strategies

The report gives an in-depth analysis on the present and future scenario of the Indian Insurance Industry. It gives a detailed account of the Indian insurance market, with focus on the key players.

Schwab Unveils Real Life Retirement Services Product

2009-01-27T05:51:00.000-08:00

Charles Schwab & Co. has launched Real Life Retirement Services, to provide practical help for people making the transition to retirement.

A Schwab news release said the new approach to retirement education is designed to answer questions about issues such as whether workers can afford to retire, their retirement expenses, when they should begin Social Security benefits, and how best to generate income during retirement.

"We have a different point-of-view from other financial firms in how we approach retirement. For most people, retirement isn't about hang-gliding or hitting the golf course every day. People dream of balance - enjoying a comfortable lifestyle, covering health care costs, spending time with family and friends, and making sure they won't run out of money," said Mark Jamison, vice president, Charles Schwab, in the news release. "We chose to build a service that addresses real life challenges people are facing today, which typically don't involve a life sailing around the world."

The new program starts with a free consultation. To help deal with the in-retirement income needs, Schwab said it will help investors develop the proper portfolio with access to income funds, help find appropriate fixed income investments, and provide an annuity cost comparison tool and a "rollover concierge" to help the investor consolidate multiple accounts.

Insurance Information

2009-01-24T05:24:00.000-08:00

Health Insurance

Finding health insurance at affordable rates is difficult, especially for people with epilepsy, but it is available. Insurance companies generally believe that persons with epilepsy are likely to cost the company money by submitting large or frequent claims. The type and severity of seizures, and the seizure free period will probably be taken into account in determining whether to provide coverage to the individual. When applying for individual insurance plans, providing detailed information from one's doctor about one's specific situation can be helpful, particularly if the seizures are controlled.
Types of Coverage

There are many different types of insurance coverage/plans available including group benefit plans, HMOs, Medicare, Medicaid and individual insurance policies. The most effective, least restrictive and least expensive way to obtain health insurance is through your employer. If you are not employed or if your employer does not offer insurance, it is extremely important to "shop around" to obtain individual health insurance and to get the broadest coverage at the lowest rates. Companies can refuse to underwrite insurance policies for people with epilepsy. However, some companies will underwrite (approve) policies but will exclude coverage for epilepsy and related expenses or they may require the individual to pay a higher deductible. Since policy-writing practices vary so much among companies, rates and conditions differ significantly. It may be helpful to contact an insurance broker for guidance, as they are familiar with eligibility guidelines as well as the practices of insurance underwriters doing business in the state.
Federal Laws that Help

Strides have been made through federal legislation to help individuals obtain and maintain insurance coverage as well as to limit the evils of "pre-existing condition" clauses that affect so many people with epilepsy. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) limits the amount of time insurers can deny coverage for pre-existing conditions to twelve months provided the policy includes coverage for the condition. HIPAA also prohibits insurers from charging different premiums based on an individual's health status. However, as long as the discriminatory coverage is based on sound actuarial data, an insurer may deny coverage for particular conditions or treatment.

The Comprehensive Omnibus Benefits Reform Act of 1986 (COBRA), a second federal statute, can help people retain coverage when they have left a group health plan. Individuals, who are no longer eligible for group health coverage due to a qualifying event, can purchase COBRA coverage for up to 18 months (this may be extended in limited circumstances). COBRA and HIPPA can work together to: 1) maintain coverage while finding or starting a new job, and 2) limit pre-existing condition periods that may apply to a new insurance plan.
State Laws That Help

States have become increasingly active in restricting insurance discrimination, particularly for health care. Many states now have laws that can provide additional protection to individuals, but these laws vary significantly from state to state. Commonly, these laws prohibit discrimination in insurance on the basis of disability unless the discriminatory treatment is based on sound actuarial data. In addition, some states have passed various types of insurance reform laws which may make it easier for someone with a pre-existing condition to get insurance and/or which create a plan for those who cannot get insurance through the private market.
An ADA Remedy?

Refusing to provide coverage for certain conditions may also give rise to a claim under the Americans with Disabilities Act (ADA). Unfortunately, on the Federal level, courts disagree on whether the Americans with Disabilities Act (ADA) provides protection in regards to health insurance policies that provide different amounts of coverage for different disabilities. Under Titles I & II, employers and public entities (which includes states and their departments and agencies) that provide health insurance do not have to provide the same coverage for all conditions, so long as they offer the same policy to all employees. Under Title III, insurance companies are only required to provide equal access to policies, not equal coverage for all disabilities and conditions. Under all Titles, differential treatment is permitted so long as it is based on sound actuarial data. For additional information regarding ADA claims based on discriminatory insurance practices, contact an attorney or disability law center in your area.
Regulating the Insurance Industry

The state insurance commission regulates the insurance industry in your state. If you are denied insurance coverage due to your epilepsy, you may want to consult the Commission about whether the insurer's actions were legal under your state laws. The Commission can often assist with questions about state insurance regulations and an individual's rights in regard to insurance coverage. For your state's insurance commission information, contact our Information & Referral Department at (800) 332-1000.

When to get long-term-care insurance

2009-01-23T05:17:00.000-08:00

(Money Magazine) -- It's not alarmist to think that you'll need long-term care in your lifetime. Among Americans who reach their 65th birthday, 45% will have to pay for some kind of long-term-care services, according to the actuarial firm Milliman.

Yet the decision whether to buy a long-term-care insurance policy, which pays out for nursing-home and certain at-home care, is one of the toughest calls you'll ever have to make. Insurance could preserve your estate for your heirs and save incredible heartache. On the other hand, it's expensive and chances are you won't need it.

Unlike most stories you'll read in Money Magazne, this one won't give you a definitive answer. But we'll tell you what to consider as you weigh your comfort level with playing the odds.

Strictly by the numbers

There's no question that years in a nursing home can decimate your savings. The average facility now costs $213 a day, according to a MetLife survey; based on last year's 3% yearly price increase, by 2030 you can expect to pay $408 a day, or $148,967 a year. For a 2½-year average stay, the tab would be about $372,000.

The chances that you'll need that much care, however, are small. Only 9% of 65-year-olds can expect a lengthy nursing-home stay, according to Milliman (another 18% will need long-term assisted-living care).

But even a long-term stay could be a matter of months, not years. Suppose you're a healthy 58-year-old. You'd pay at least $1,000 a year for a policy with a $150 daily benefit that adjusts for inflation each year.

Invest that money instead and you'll end up with $65,330 at age 80 (assuming 8% annual returns). While that wouldn't even cover six months in a nursing home in 2030, it's money you can spend or leave to your heirs if you never need long-term care.

But wait...

What if a debilitating illness runs in your family? In that case, your odds of needing expensive long-term care increase. Or perhaps you want the peace of mind of knowing that a lengthy nursing-home stay wouldn't financially devastate your spouse or your kids.

Even if you feel that you're a candidate for this insurance, you have to confront the policies' expense. Don't buy unless you can afford a premium hike of 10% to 20% and can continue to make payments for 30 or so years.

A good rule of thumb: Spend no more than 7% of your income on premiums. And keep in mind that the average $1,000-a-year policy pays $150 a day, only 70% of the typical cost of care today.

If you want to avoid a shortfall - or if nursing- home costs are high in your area - you may need a more expensive policy. And if you can't pay at any point, you'll likely be left with no coverage at all. Then the money would really have been wasted.

Keep in mind

If you want to purchase long-term-care insurance, get the maximum flexibility you can afford. To keep your premium down, pick a 90-day elimination period (the long-term-care version of a deductible). But opt for 5% yearly "compounding" inflation, which costs more but will ensure that your coverage keeps up with price hikes. And keep saving - even if you have insurance, you'll wind up paying for a portion of your care.

What is auto insurance?

2009-01-21T05:02:00.000-08:00

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

Property coverage pays for damage to or theft of your car.

Liability coverage pays for your legal responsibility to others for bodily injury or property damage.

Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

Businesses urged to prepare for tighter insurance market

2009-01-20T04:21:00.000-08:00

NEW YORK, Jan. 6 /PRNewswire/ -- A lot of the more than 76 million baby boomers headed toward retirement are losing sleep at night because in most cases, they have not taken the time to plan for what's next in their lives, according to Joan Strewler-Carter and Stephen Carter, co-founders of the Life Options Institute, an organization dedicated to helping people plan for life after age 50.

If you're one of the millions of baby boomers beginning to think about retirement, here are some tips from the Life Options Institute:

1. Start your planning engines. Avoid the sudden and often drastic changes that retirement can bring by starting to plan for it at least 5-10 years in advance. Baby Boomers need to reevaluate goals or set some new ones periodically because life constantly changes.

2. Review your finances. Determine your post-retirement budget. Most people underestimate how much money they will need for retirement. Consider that less than one-quarter of workers age 55 and older--just 23%--have savings and investments totaling $250,000 or more, according to a study published by the Employee Benefit Research Institute. About 60% have less than $100,000.

3. Consider working a few more years. The average retirement age in the US is 63-but most people don't recognize the benefits from working even just two or three additional years. According to T. Rowe Price, a 62-year-old with $100,000 salary and a $500,000 nest egg will see his annual retirement income rise 6% for every additional year he remains in the workforce.

4. Think about an "encore career." With the recent economic downturn, more boomers are asking if it is time to reinvent themselves by pursuing dreams and turning their passion into "encore" careers. If you are going to have to or want to continue working, then pursue something that makes you happy--such as a career you left behind many years ago when you met that fork in the road of life.

5. Review your health insurance needs. Decide whether you should purchase additional coverage such as Medicare supplemental insurance.

6. Consider long-term care insurance. Since many boomers have already seen the enormous expenses tied to maintaining long-term care for their parents, now may be a good time for them to talk to their insurance agent about a policy of their own.

7. Set rules. Known as the "sandwich generation" because many boomers are caring for aging parents as well as their "boomerang" children who graduate from college and then move right back home, it is important to set rules. Start asking your kids for rent or set a schedule of home chores.

8. Let go of your former identity. Many boomers have tied what they do for a living to their identity as a person. Introduce yourself to a boomer and chances are he or she will include a job title in the first few seconds of conversation. According to outplacement experts Right Associates, one of the biggest hurdles for boomers in transition is to let go of the identity they are clinging to based on a former role.

9. Cultivate outside hobbies and interests. Studies show that acquiring new skills later in life helps ward off depression and may reduce the likelihood of dementia. Maybe it's time to take up painting, quilting, piano lessons, or volunteer work.

10. Exercise your mind and body. The importance of exercise in preserving your physical, cognitive and emotional well-being is well known. In fact, according to Dr. Gary Small in The Longevity Bible, recent research found that regular physical activity could add two or more years to an individual's life, not to mention enhancing the very quality of your life.