Please pass along to friends and family.  You can contact any of the staff at Susman Insurance Agency if you are interested.  Thanks again!

Residential Options

Although assisted living/residential care facilities originated in private organization-based homes, today, the emergence of chain companies allows clients to choose a facility from a range of locations while being offered a consistent level of service. These facilities offer prospective residents the choice of buying or renting apartments or villas, with extra options of reserving guest suites and seasonal rentals. In addition, clients may select the type and size of accommodation—some offer spacious layouts that may include two bedrooms, two bathrooms, living room, dining room, den, and deck.

Diverse Services

Apart from the individualized choice of residence, assisted living/residential care communities are focusing on independence and freedom by offering a diverse roster of activities and services. Residents are encouraged to remain physically active through swimming, yoga, and other fitness classes, and they are also offered a range of educational programs that may include courses in computers, investing, nutrition, or bird watching. Entertainment is often provided on-site with movies, concerts, and even concierge services.

In terms of health care, many facilities offer assistance with daily activities, as required, in order to enhance independence as much as possible. The resident can choose the level of care that he or she may need, with the option of adding more services. An increasing number of institutions embrace the concept of “aging in place,” providing additional medical services as the client ages and requires. As an example, basic help with medications and dressing are common services; however, if the client discovers he or she needs more skilled and personalized attention due to a medical condition, he or she may have the option of moving to the nursing wing of the residence. Some facilities even offer medical and check-in services through “at home” assisted living/residential care.

Today’s seniors are more active and healthier than ever before. As our population ages, the need and desire for more personalized services will increase. Changes in assisted living/residential care facilities that promote an active and independent lifestyle are a positive indicator of the future of senior health care.

Copies of Choosing An Assisted Living Facility is one of a series of Since You Care guides for caregivers produced by the MetLife Mature Market Institute in cooperation with the National Alliance for Caregiving. Single copies are available free to the public.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

To gain a perspective on personal debt, it is useful to distinguish between healthy and unhealthy debt. Healthy debt refers to borrowing in order to purchase assets that are likely to appreciate in value, such as a home or business. Healthy debt is especially worthwhile to assume if you are able to itemize certain repayments (e.g., home mortgage interest) on your tax return and, as a result, qualify for certain tax deductions.

Unhealthy debt, on the other hand, refers to borrowing in order to purchase consumables or assets that are likely to depreciate in value, such as a vacation or an automobile. Unhealthy debt has taken an even more negative turn since the government stopped allowing tax deductions for most consumer debts, such as personal loans and credit cards.

Debt Management Basics

For most people, managing debt effectively is a learned skill. The following pointers may help you get your debt under control:

Categorize debts. To gain control of personal debt, you might start by developing an overall picture of your current debt situation. Debts should be categorized as healthy or unhealthy. Then, they should be scheduled according to whether they are short-term (e.g., credit cards), intermediate-term (e.g., auto loans), or long-term (e.g., mortgages and home equity lines of credit). The interest rate for each type of debt should be noted.

Pay off the “right” debt first. It usually makes the most sense to pay off high interest rate debt first, especially if the interest is not tax deductible (e.g., credit cards). Ideally, you should have enough in savings to pay off short-term debt, if needed. Because credit cards are typically used to purchase consumables, rather than assets that appreciate, they can easily tempt consumers to live beyond their means. Thus, it is best to develop the habit of paying off this type of debt on a monthly basis.

Avoid the minimum payment trap. Interest that accumulates by stretching out payments can make even a “bargain” costly in the long run. To understand the impact of making only minimum monthly payments, you may want to ask your credit card company how long it would take to pay off your current balance at that rate, and how much total interest you will ultimately pay. This information prompts many individuals to adopt a “pay-as-they-go” strategy.

Curb impulse spending. If you are prone to impulse spending, you may find it best to avoid shopping when you don’t have a specific purpose in mind. Or, you could try to delay impulse purchases for 24 hours. Once you have had a chance to “sleep on it,” you may discover the impulse has passed.

Benefits in Good Times and Bad

If you are like many people, spending may not be based solely on financial considerations. Emotional factors may sometimes cause confusion between what you think you need, and what you actually do need. Still, the reality of living in the twenty-first century may leave you with little choice but to amass at least some debt. However, with discipline and planned spending, you can most likely manage your debt and live within your means.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties. This article does not support the promotion and marketing of any particular product. You should seek advice based on your particular circumstances from an independent tax advisor.

MetLife [New England Financial] representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for such guidance.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Thinking the Unthinkable

Have you ever contemplated how long the combined resources of you and your spouse might last if you were suddenly out of work due to a disability? What long-term impact would exhausting your savings during a disability have on your ability to provide for your family and even yourself during your retirement years? If those resources provide less than your monthly expenses, including taxes and regular savings, or if exhausting them would significantly impact your ability to provide for yourself and your family on a long-term basis, you may need disability income insurance. Whether you need an individually owned policy depends on the extent of your liquid assets, your spouse’s income, and other potential sources of disability income, such as employer-sponsored group disability insurance, Social Security, and veterans or union benefits.

Depending on your income and the risk level of your occupation, the maximum coverage you can buy will generally replace 45% to 75% of your pre-disability earnings. The higher your income, the lower the percentage of replacement benefit may be. Typically, premiums will depend on your age, your health, the risk level of your occupation, and the type of coverage.

Examine Policy Provisions

To make sure your disability income insurance offers the protection that you and your family need, your policy should include the following:

• A definition of total disability that is consistent with the risk of your occupation. You may also want to look for a policy that pays some benefits in the event you are not totally disabled, but you suffer a “loss of income” due to a disability. Often these provisions are called partial or residual disability provisions.

• A non-cancelable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).

• Benefits that are payable for the maximum amount of time for which you are eligible based on your occupation and health. Most often, you can find policies that provide benefit eligibility for two years, five years, or all the way until you reach age 65, or even payments beyond 65 for the rest of your life.

• A waiting period that is consistent with your overall financial resources. The waiting period is the amount of time you must be disabled before becoming eligible for disability benefits. The longer the waiting period you choose, the lower the premium on your policy will be. Typically, you may purchase coverage that provides eligibility for benefits after 30 days of disability or for as long as after two years of disability.

Act Now

Now is the time to investigate the relative benefits and costs of disability income insurance to determine how much you need to spend to attain adequate protection. In addition, it is important to review the particular details and provisions of the policy you are considering with a qualified professional to help ensure your financial needs will be met.

Copyright ã 2010 Liberty Publishing, Inc. All rights reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

The Latest Figures

The Social Security Administration (SSA, 2010) estimates that three in ten of today’s 20-year-olds will suffer a disability before reaching age 67.¹ In another sobering statistic, the SSA reports that 69% of the private sector workforce has no long-term disability insurance.² Essentially, seven out of ten workers would have to rely on their own personal savings, limited state-run insurance, and Social Security for replacement income in the event they could not work because of a disability. In 2009, the estimated average monthly Social Security benefit for all disabled workers was $1,006.³ Over the course of a year, that totals approximately $12,072, and for many workers and their families, that is significantly less than their annual expenses.

Men vs. Women

Throughout history, men have generally earned more than women. The SSA reports (2010) that as of the year 2007, the average salary for women was 78% of the average for men.⁴ This disparity affects women in two ways. Because disability benefits are based on earnings, the benefits for disabled male workers are typically higher than those of disabled female workers. However, the spousal benefit for widows is generally higher than that of widowers for the same reason—the median income of men is higher than that of women. These demographic trends are important to consider for families planning their financial security.

Supplemental Income Sources

In addition to Social Security and personal savings, there are additional options for workers and their families. Personal disability income insurance is a viable option for workers looking to manage the risk of losing their income. It offers coverage beyond workers compensation, which is state-run insurance that replaces a percentage of an employee’s income only for injuries that occur on the job or illnesses that are work-related.

Disability income insurance policies vary, but here are some key questions to ask:

• Are you covered for both accidents and illness?

• Does the policy define disability as the inability to perform your own job or any gainful employment?

• How long must you wait before benefits begin?

• How long will benefits last?

• Does the policy offer cost-of-living adjustments?

• Are benefits available for total and/or partial disability?

• What percentage of income will the policy replace?

Disability income insurance policies contain, exclusions, limitations, reductions of benefits and terms for keeping them in force.  Speak with your representative for costs and complete details.

If you lack insurance against disability, or are underinsured, you are possibly exposing yourself to serious financial risk. Avoid becoming another statistic—plan your future today.

¹The Social Security Administration, “Social Security Protection If You Become Disabled,”

www.ssa.gov/dibplan/index.htm.

²The Social Security Administration, “Social Security Basic Facts,” www.ssa.gov/pressoffice/basicfact.htm.

³The Social Security Administration, “2009 Social Security Changes,” www.ssa.gov/pressoffice/factsheets/colafacts2009.htm.

⁴The Social Security Administration, “Social Security Is Important to Women,” www.ssa.gov/pressoffice/factsheets/women.htm.

Copyright ã 2010 Liberty Publishing, Inc. All rights reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Your answers to the following questions may help you assess whether your loved one can continue to live independently or whether immediate intervention is needed.

Independent Living Test¹

Medications

• Are prescriptions not being refilled, resulting in failure to take medication when scheduled?

• Has taking medication become difficult due to poor memory or confusion? Evidence may include problems taking pills on time, different pills mixed together in a pillbox, or an oversupply or undersupply of pills.

• Have conditions previously under control become acute because medication is not being taken correctly?

Food and Groceries

• Based on past food habits, are the cupboards frequently empty or being filled with unusual foods?

• Is the food in the refrigerator often spoiled or kept long beyond the “use by” date?

Daily Business

• Is the mail being picked up and opened regularly, or does it remain uncollected and/or unopened?

• Are credit cards or checkbooks being misused or not balanced as well as in the past?

Social Contact

• Has the amount of social contact changed dramatically, so that there are few public outings or limited social visits with close friends?

• Has the ability to drive deteriorated? Is there a fear of driving or a recent history of multiple minor accidents that is leading to isolation?

Living Habits

• Has there been a change in dress or appearance or a decline in personal hygiene that is not related to physical disability? Is dress appropriate for the weather?

• Have housekeeping habits changed so that a normally neat and orderly home is now cluttered and not cleaned regularly?

• Are pets that were normally well cared for suddenly not being fed or cared for as they had been in the past?

Solicitations

• Is there a sudden increase in ordering unnecessary items through mail or televised advertisements?

Calls to Family Members or Health Care Providers

• Has there been a marked increase in panic calls to family or medical providers without apparent need?

• Have unnecessary calls been made to 911?

According to the American Association of Homes and Services for the Aging (AAHSA), among people age 65 today, 69% will need some form of long-term care, and by 2020, 12 million older Americans will require long-term health care.² Consider protecting yourself and your loved ones with the security that Long-Term Care Insurance coverage can provide.

¹Source: Long- Term Care Partners, LLC

²Source: American Association of Homes and Services for the Aging, “Aging Services: The Facts,” www.aahsa.org (accessed February 2010).

Long-term care insurance issued by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166.

Like most long-term care insurance policies, MetLife policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. I’ll be glad to provide you with costs and complete details.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

1) Invest in your future. Ongoing technological changes in various fields may require continuing education. You may wish to make ongoing career education a priority to enhance your skills and increase your professional potential. The more varied and flexible your skills, the more attractive you may be to prospective employers.

2) Open an emergency savings account. The uncertainty of the workplace may mean that your professional life will be interrupted by career changes. If you need to return to school full-time to change career paths, you may face periods of time without stable income. Creating an emergency fund to cover several months’ worth of living expenses can help you manage work-related transitions. This savings fund can also be used for opportunities, such as starting your own business.

3) Save early and continuously for retirement. Saving for your retirement is your responsibility—so apply discipline and diligence to this ongoing objective. You cannot necessarily depend on the government to provide future Social Security benefits. With employer-sponsored 401(k) plans, the responsibility of saving rests on your shoulders. Although you may be years away from retirement, the key is to make time and compound interest your allies.

4) Let retirement funds accumulate. If you change jobs early or often in your working years, consider rolling over your account into an Individual Retirement Account (IRA) or new company retirement plan. It may be tempting to cash in the account, especially if you have accumulated only a small amount, but doing so would make it immediately taxable and you may also incur an early withdrawal penalty. Perhaps a greater concern, however, is that you may be unable to make up for time already spent to accrue these savings.

5) Use credit wisely. Credit card companies frequently target young adults with the lure of “easy money.” While credit cards offer convenience (it’s virtually impossible to conduct some transactions, such as reserving airline tickets, without one), they also have the potential to create debt problems. Because payments can be stretched far into the future, overspending on credit can create an illusion of wealth. Paying off the full balance each month is the best way to control your use of credit.

Plan Now for the Future

Remember, the funds you accumulate during your working years may be your primary source of retirement income. Although inflation may threaten your nest egg, a little discipline and common sense over time may help you better manage your current and future financial affairs.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this brochure is not intended to (and cannot) be used by anyone to avoid IRS penalties.You should seek advice based on your particular circumstances from an independent tax advisor.

MetLife and its representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for such guidance.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Analyze your cash flow. When your income is greater than your expenses, the excess is called a positive cash flow. When your expenses exceed your income, the shortfall is termed a negative cash flow. A positive cash flow means that you may have funds you can set aside as savings. A negative cash flow can indicate that it may be a good idea to reorganize your budget to minimize any unnecessary expenses.

Develop a program for special goals. For every financial and retirement goal you establish, identify a projected cost, a time horizon (how long it will take to reach the goal), and a funding method (such as through savings, liquidating assets, or taking a loan). Consider your goals in terms of a “hierarchy of importance.” The bottom—or “foundation” tier—should include emergency funds to cover at least three months’ worth of living expenses. The middle tier should include such essentials as your children’s education. On the top tier, place the “nice-to-haves,” such as a new car, home renovation, or vacation.

Boost your retirement savings. Employer-sponsored pensions and Social Security may not provide sufficient income to maintain your existing lifestyle when you retire. Thus, it is essential to identify your retirement needs and plan a disciplined savings program for the future. Maximize your contributions to retirement accounts, and if possible, make “catch-up” contributions.

Taxpayers, who are 50 years old, or older, are allowed to make additional contributions to their retirement plans. Traditional Individual Retirement Account (IRA) and eligible Roth IRA holders can save an extra $1,000 a year in 2010. Those with eligible 401(k), 403(b), or 457 plans can save an additional $5,500 in 2010.

Minimize income taxes. Why give Uncle Sam any more of your money than is necessary? It is in your interest to take advantage of all income tax deductions to which you are entitled. Consider exploring any possible ways of reducing your income taxes. For instance, under appropriate circumstances, losses or expenses from prior years may be carried over to the next tax year. A qualified tax professional can help you implement a tax strategy that meets your needs.

Beat inflation. Your income and retirement savings must keep pace with inflation in order to maintain your buying power. This means that if the inflation rate is currently 3%, you need to achieve at least a 3% annual increase in income just to break even. If your long-term savings plan fails to keep pace with inflation, you may be unable to maintain your current standard of living.

Manage unexpected risks. As you undoubtedly know, life can sometimes throw you a “curve ball.” Without warning, a disability or untimely death can cause financial hardship for your family. Adequate insurance is an important foundation for your financial program—it offers the protection you need to help cover potential risks and liabilities.

Consult a financial professional. In today’s complex financial world, everyone needs help in making informed decisions. A qualified financial professional can help ensure that your financial affairs are consistent with your current needs and long-term goals.

Reviews can help bring focus to your overall financial picture. In the future, you will have the opportunity to alter your programs due to changing goals and circumstances. By faithfully tracking your progress, you will be in a better position to build financial security and realize the retirement of your dreams.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this article is not intended to—and cannot—be used by anyone to avoid IRS penalties. This article supports the promotion and marketing of insurance and/or other financial products and services. You should seek advice based on your particular circumstances from an independent tax advisor.

MetLife, its affiliates, agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Income Limits—Paying to Work?

The first factor you must consider is your age and the so-called Social Security “giveback.” If you are age 62 or older, under the full retirement age (65–67 depending on your birth year), and receiving reduced Social Security benefits, you must “give back” $1 for every $2 earned above $14,160 in 2010. If you attain full retirement age in 2010, your benefits will be reduced by $1 for each $3 earned over $37,680. Upon attainment of full retirement age, you may earn as much as you like and Social Security benefits are not reduced.

How Much Is Taxable?

A second factor affecting your Social Security benefits is the potential income taxation of those benefits. Let’s assume you are working and you also receive a check from the Social Security Administration (SSA) each month. You must first determine how much, if any, of your benefit is included in your gross taxable income. The first step in estimating this is to add up the following items: your wages, taxable pensions, interest, dividends, and other taxable income; all tax-exempt interest; any exclusions from income; your net earnings (net income less net losses) from self-employment; and half of your Social Security benefits.

This total is then compared to a first-tier threshold of $25,000 for a single taxpayer or a married taxpayer who is filing separately and lived apart from his or her spouse for the entire year, or $32,000 for a married taxpayer filing jointly. For a married taxpayer filing separately, who lived with his or her spouse for any period during the year, the first-tier threshold is $0.

For the sake of illustration, suppose your total applicable earnings are $27,000, and you are married and filing jointly. Since the total does not exceed the applicable threshold amount of $32,000, then no portion of your Social Security benefit is taxable. However, if the total exceeds the applicable threshold amount, a further, more complicated, calculation must be performed to determine the amount of your benefits that are taxable. You can refer to IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for more information, or consult your financial or tax professional.

As you can see, performing these calculations is no simple task. Thus, it is important for anyone who is thinking about taking Social Security benefits while still working to understand the potential tax consequences and to plan accordingly. As with all tax planning matters, it is wise to consult a tax professional to help ensure your planning decisions are consistent with your overall goals.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.

MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.

Copyright ã 2010 Liberty Publishing, Inc. All rights reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

To Roth or Not to Roth

In order to decide whether the Roth 401(k) option has a place in your retirement plan, it is important to weigh the advantages and disadvantages of both types of 401(k)s. With a traditional 401(k), you make contributions on a pre-tax basis, which lowers your current taxable income, and earnings are tax-deferred. However, your retirement distributions will be subject to ordinary income tax. With a Roth 401(k), your contributions are not tax deductible, but earnings and distributions are tax free, provided you have held the account for at least five years and are at least 59½ years old. Is it better to pay taxes on your retirement funds now or later? The best choice for you depends on your current tax situation and your long-term financial goals.

It is important to keep in mind that the 401(k) annual deferral limits—$16,500 for taxpayers under the age of 50 and $22,000 for those over age 50 in 2010—apply to all 401(k) contributions, regardless of whether they are made on a pre-tax or after-tax basis. If you contribute to a Roth 401(k), you may have to reduce or discontinue your contributions to your employer’s conventional 401(k) plan to avoid exceeding these limits. However, you may contribute to both types of 401(k) plans.

Also, matching contributions made by employers must be invested in a traditional 401(k), not a Roth account. So, even if you make contributions exclusively to a Roth 401(k) account, you will still owe tax in retirement on withdrawals from funds contributed on a pre-tax basis by your employer.

What about the Roth IRA?

The Roth 401(k) is only available through an employer-sponsored plan, whereas the Roth IRA is available to all taxpayers (with income limitations). How do the two Roth options compare? First, you can save more money in a Roth 401(k) than in a Roth IRA. The 2010 annual contribution limits for IRAs of all kinds are set at $5,000 for taxpayers under the age of 50 and $6,000 for older workers. The Roth 401(k) is subject to the more generous elective salary deferral limits that apply to conventional 401(k)s—$16,500 or $22,000 for those over age 50 in 2010.

Furthermore, the Roth IRA is subject to adjusted gross income (AGI) limits; only those with AGIs below $120,000 for single filers and $177,000 for joint filers are eligible to contribute after-tax dollars to a Roth IRA in 2010. These income limits do not apply to Roth 401(k)s.

In addition, contributions to a Roth 401(k) can be made through payroll deductions, which puts retirement saving on autopilot. To participate, an employee who is currently contributing to a traditional 401(k) plan could, for example, opt to have his or her contributions diverted to a Roth version of the same plan. Unlike the Roth IRA, however, you will be required to begin taking distributions from a Roth 401(k) after the age of 70½.

If a Roth 401(k) makes sense for you, ask your company’s benefits administrator if the feature is available for your retirement plan. If it is not already in place, expressing interest in the Roth feature may increase the likelihood that your company will adopt the option.

Neither MetLife nor its representatives offer tax or legal advice. You should consult your own advisors with respect to such matters.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties. This article supports the promotion and marketing of retirement plans. You should seek advice based on your particular circumstances from an independent tax advisor.

Copyright © 2011 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

· Choose Your Causes. Good causes abound and regularly demand our attention. Choose a limited number of organizations that concentrate on areas that are important to you, and then research what kind of help they need.

· Budget Your Gifts. When planning your annual budget, include charitable gifts. Spreading your donations over the year can both lessen the impact on your finances and increase the total you may be able to give.

· Plan Your Volunteer Career. Volunteering can be a personally rewarding experience, especially when you can see the fruits of your labor. Carefully determine the time you have available to ensure your best efforts for your cause, and avoid overloading yourself.

· Review Your Plans. Just as you review your annual financial budget, you should review your annual time/value budget. Revise your volunteer commitments to include those where the rewards have been the greatest for both you and your cause.

· Consider a Testamentary Gift. If you are fortunate enough to be in a position to increase the amount you donate, or you are concerned about the future of the organizations you support, consider making a Testamentary gift.

What Is a Testamentary Gift?

Quite simply, a testamentary gift is a promise of funds to be made available from your estate upon your death, typically through your estate. However, using your estate as a conduit can lead to a reduction in your intended gift if any of the following are experienced:

· A decrease in the fair-market value of your assets before your death;

· Unforeseen estate expenses that must be made from your assets; and,

· The elimination of your gift if your will is contested.

You may be able to protect your gift from estate problems through the establishment of a trust; however, the legal and administrative costs associated with doing so may also have an adverse impact on your gift.

Guaranteed Protection for Your Charitable Gift

Your intentions—and your gift—can be protected against many of the factors above through the use of life insurance. The potential leverage of life insurance may result in a larger gift than you had hoped.

In addition, the simplicity of doing so and the satisfaction you will gain will add to the rewards of giving. The policy can be purchased with funds that you contribute to the charity, and as such, they are tax deductible as a charitable gift. The policy can be owned by the charity and removed from your estate, thus protecting your gift from the taxation, creditors, or legal contest to which your estate may be subject. As owner of the policy, the charity can decide whether they want to use your gift to pay the premiums or let the policy lapse. As beneficiary, the charity will receive the proceeds of the policy at your death. Depending on the type of policy purchased and the charity’s willingness to use your contributions to maintain the policy, these proceeds may be guaranteed and may even increase over time. Depending on the performance of the policy and other factors, the proceeds may exceed the amount you would have otherwise given outright during your lifetime or upon your death.

Imagine What You Could Do

Your gift through life insurance could allow you to give far more than you ever thought possible. It could help guarantee funding for your chosen organization and help ensure the continuance of its good works. It could mean that your best intentions become reality. The satisfaction that comes from knowing you have done the most you could will be your final, and well-deserved, reward.

All insurance guarantees are based on the financial strength and claims paying ability of the issuing insurance company.

Neither MetLife nor its representatives offer tax or legal advice. You should consult you own advisors before making any decisions.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties. This article does not support the promotion and marketing of this life insurance. You should seek advice based on your particular circumstances from an independent tax advisor.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

It is estimated that during a school year the average college or university student will spend approximately $4,000 for books, supplies, transportation, and personal expenses (Trends in College Pricing—2009, The College Board). However, there is often room for economizing. The first place to look is at food and telephone calls. Difficulty may occur in controlling these expenses, especially if pizza is ordered regularly at 2 am and long-distance friends are simply a phone call away.

While many students may assume it costs less to live off campus than in a dorm, they may be in for a surprise. In college towns with a high demand for off-campus housing, accommodations within walking distance of the campus may tend to be expensive. Some landlords require a one-year lease—a period longer than the school year—thus, subleasing privileges should be included as part of an “economical” lease. However, off-campus students can save money by sharing housing and doing their own cooking.

Money Smarts 101

The following may serve as important steps toward helping your student understand college finances:

1. Before your student leaves for college, sit down and have an open discussion of expectations—both your child’s and yours.

2. Consider providing a lump sum each semester, making it clear how long the money must last.

3. Explain when checks or money transfers can be expected, the amounts that will be received, and any rules concerning the use of funds.

Since most students rely on savings and checking accounts—regardless of whether they include parental funds, their own, or a combination of both—it is important for them to understand how these accounts work. The ability to balance an account accurately and make needed corrections is especially critical.

Many undergraduates may keep most of their funds in hometown financial institutions. However, managing financial affairs long-distance can be difficult. Verifying an account balance quickly with an out-of-state bank can be both costly and time-consuming. So, it may be a good idea to keep a smaller account on campus.

While some parents may fear a credit card can give a student who has difficulty managing his or her affairs too much of a cushion, others find a credit card can provide a useful backup, especially in an emergency or for certain expenses. For instance, it can help with car rentals, plane fares, and railroad tickets. In addition, trying to get money to college students in different locations can be frustrating, and it is often impossible for anyone to cash personal checks away from home.

Making the Grade

Ideally, college students should take full charge of a semester’s spending. Life becomes much easier for parents when college-age children can manage their own finances, and the students will learn valuable life skills in the process.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0510104870(exp0511)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Price Equals Value

When the bidding reaches $90, you and one other bidder are still in the game. So, what is the likely outcome? If the bidding goes to $100, you will either get the lamp or drop out of the game. In this case, the amount of cash you have left equals the value you assigned to the lamp and effectively limits the amount you can pay. Assuming you are alone and cannot borrow some money from a friend, what you are willing and able to pay is controlled by how much money you have in your pocket. In this example, we might say the price of the lamp equals its value.

Expanding Value

Let’s now modify the scenario slightly and see how the outcome might change. Instead of it being late in the auction, this is one of the early items to go on the block, and it will be the first item on which you will bid. You have $500 in your pocket, the total amount you have allotted for the entire auction. The bidding has reached $90. What should you do? What are you likely to do?

Since you originally placed a value of $100 on the lamp, you should be prepared to drop out if a $100 bid does not secure the lamp. However, unlike the first scenario, in which you only had $100 left, you have a full pocket. Depending on how much you want the lamp, it is possible that you would exceed your initial limit and continue bidding, particularly if you thought that a bid slightly over $100 might be successful. What’s the big deal about going over a little? After all, you may not even be successful on some other items of interest.

Although in this case it’s probably not a “big deal,” you have expanded your definition of value. What was originally a $100 value has been expanded to, perhaps, a $110 value. Notice how easy it is to lose one’s sense of value and have something that you want become something that you feel you need.

The “Value” of Increased Buying Power

Okay, now let’s change the scene once more. This time, in addition to cash, the auction house will accept payment by credit card. What can happen to your sense of value when your buying power has been increased?

It appears that people may be less quality conscious in their buying behavior, may not negotiate as skillfully, and may pay more when buying by credit card than when making an identical purchase by cash. If the bidding were to surpass $100, it is quite likely that you would be willing to pay far more than your original assessment of what the lamp was worth.

This possibility suggests that “hard money” and “plastic money” carry different meanings. Hard money (i.e., actual dollars in your pocket or checking account) tends to be perceived as finite—when you run out of dollars, you’ve exhausted your buying power until you obtain more dollars. On the other hand, credit cards can expand your buying power up to the credit limit of the account.

The alluring aspect of being able to buy on credit can become transformed into an expanded sense of value. In the process, it is easy to lose track of the relationship between price and value, and to pay more than we know an object is worth. It is this changed sense of value that is, perhaps, the most concerning aspect of credit card purchases. We simply lose our sense of what a good deal is all about, and we become less smart about our shopping.

Buying on credit can be a great convenience, and it can make sense when we are temporarily short of cash. However, when buying on credit becomes our standard way of doing business, it can have some highly undesirable consequences. One way to guard against credit card abuse is to ask two questions when making a credit card purchase. First, would I still purchase the item if I were paying cash? Second, would I pay the same price if paying by cash?

By keeping the focus on value, you can better distinguish between things you would like to get and things you absolutely must have. Making this distinction can help you avoid the major pitfalls of buying on credit—overpaying on individual items and spending beyond your means.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0410100933(exp0411)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Today, there are more plans available that offer flexible payment schedules. Students applying for a federal student loan now can choose a graduated repayment plan that will allow you to make smaller payments upon graduating and larger payments at a later time when you may be earning more money in the working world.

Students also have the choice of an income-contingent repayment plan. This plan calls for them to pay a fixed percentage of your postgraduate income toward their student loans. This percentage could be approximately 5% to 10% of anything above the poverty level of a single person, which is $10,830 according to the Department of Health and Human Services (2009).

A third choice is an extended repayment plan that can lower monthly payments an estimated 20% to 30% and allow graduates to stretch out their loan payment schedules from 10 to 15, or even 20, years.

Consolidation Offers Flexibility

There is also good news for students who are already debt-laden. Under the Student Loan Reform Act of 1993, existing loans can be consolidated with a direct loan from the government. This plan offers a more flexible repayment schedule while interest rates remain the same.

To be eligible for this plan, student loan recipients need to ask their original lenders for an “income sensitive” repayment option. This plan adjusts the monthly payments for the loan’s capital, but not the interest, to annual income. If the original lender will not agree to this option, they may then be eligible for a direct loan from the government.

Two advantages of a direct government loan are as follows: First, the monthly installment payments of principal and interest are contingent upon income. Because the payments are withdrawn from wages, there will be less paperwork to muddle through. Second, as wages increase, the percentage withdrawn from pay will also rise, allowing the loan to be paid off more quickly and with less accrued interest expense.

For students who need to borrow for the current school year, direct loans (and the income-adjusted repayment plan) are also available if they’re attending one of the schools participating in this plan. Parents may also be able to take out a direct loan for as much as the entire cost of their children’s college education.

For information or inquiries regarding federal student aid programs, contact the Federal Student Aid Information Center at 800-433-3243, or check them out online at www.studentaid.ed.gov.

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as specific tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, it is not guaranteed. Please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice. The client must rely upon his or her own professional advisor before making decisions with respect to these matters.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0610113593[exp0611][All States][DC]

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

A Closer Look

At the present time, nearly all states have passed some form of law dealing with the requirements for living wills or health care proxies. While a health care proxy allows you to appoint someone to make decisions on your behalf, a living will generally allows you to specify the particular types of treatment you would like to have provided or withheld. Each state has its own set of requirements.

A living will is a medical directive—written in advance—that sets forth your preference for treatment in the event you become unable to direct care. The document may be drafted to include when the directive should be initiated and who has the decision-making responsibility to withdraw or withhold treatment. In addition to allowing respect for your wishes, the living will can help alleviate feelings of guilt or uncertainty experienced by those faced with the responsibility of making important decisions for loved ones.

The Patient Self-Determination Act

A far-reaching federal law, known as the Patient Self-Determination Act, requires all health care providers that receive Medicare and Medicaid to inform everyone over age 18 of their right to determine how they want to deal with this issue and to ask whether they want to fill out a living will. If you have received information on this subject, it’s no coincidence, since the law also requires increased emphasis on community outreach and education.

This law impacts virtually every hospital, nursing home, and health maintenance organization (HMO) throughout the country. It is important to note that the law does not mandate that health care providers require their patients have a living will. Instead, it stipulates that health care providers must provide written information about the patient’s rights to make decisions about medical treatment, including the right to make an advance determination about life-sustaining medical treatment, and record whether the patient has done so.

At the present time, it appears most of these organizations have determined this question can most appropriately be handled when a patient is admitted. Therefore, the next time you are admitted to a hospital—even for something as minor as having a mole removed—don’t be surprised if you are given information about these rights and are asked to fill out a form that asks whether you currently have a living will or wish to have one.

The living will is a legal document, and each state has its own specific requirements. A qualified legal professional can help you understand the benefits of a living will and what has to be done to assure its validity.

Before implementing any strategy discussed herein, you should consult with your own financial, tax, and/or legal advisors to determine its applicability in light of your own situation.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0410101704(exp0411)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Inheritance Comes with a Price

Typically, the size of your assets dictates the amount of estate tax planning necessary in your personal situation. Under current law, the estate tax is repealed in 2010. However, this does not eliminate the need for planning because the repeal is in effect for one year only. According to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the estate tax will be reinstated in 2011, with an applicable exclusion amount of $1,000,000 per individual and a maximum tax rate of 55%.

If you are married, a properly drafted and executed will and inter vivos (living) trust for you and your spouse—coupled with proper asset ownership—could help you pass the first $2,000,000 (in 2011) of your estate to your heirs free of federal estate taxes. However, estates exceeding this amount (or $1,000,000 for single individuals) may incur federal estate taxes. For this reason, the ILIT has become a popular technique to help provide liquidity for estate taxes and to ensure the maximum amount of your assets are passed to your family in full.

Opportunity Knocks

When properly implemented, the proceeds of an ILIT will not be included in your estate. They will be payable to the ILIT’s beneficiaries (generally, children and grandchildren) without being diminished by estate taxes.

An ILIT can purchase a life insurance policy on your (the donor’s) life, with the policy premiums funded by annual gifts you make to the ILIT. If properly structured and administered, your annual gift tax exclusion ($13,000 annually per donee and $26,000 for gifts made by husband and wife) can be used to make gifts to the ILIT.

In more advanced uses, an ILIT can be a useful strategy to help ensure continuity in a closely held business. For instance, passing a family-owned business of substantial value to heirs may be hampered if the heirs are required to produce the funds (in cash) to pay the associated large estate taxes. These taxes, in some instances, may require a forced sale of the business in order to raise the necessary cash to pay them. However, an ILIT can purchase/own a life insurance policy on the owner, with the death benefit providing the cash needed to help meet estate tax obligations and keep the business in the family.

Securing Your Future

Estate planning is an ongoing process that requires a personal commitment and the assistance of an experienced estate planning attorney in order to help ensure your desired intentions are fulfilled. Although an ILIT can be an integral part of your overall plan, it is important to understand that effective estate planning strategies are usually the result of the coordinated efforts of your insurance, legal, and tax professionals.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification:

The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties. This article supports the promotion and marketing of life insurance. You should seek advice based on your particular circumstances from an independent tax advisor.

Neither MetLife nor any of its affiliates, employees or representatives provides tax or legal advice. Please consult with your tax advisor or attorney regarding your personal situation.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0910133905(exp1211)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

You can freely assign your life insurance policy unless some limitation is specified in your contract (your insurance company can furnish the required assignment forms). Through an assignment, you can transfer your rights to all, or a portion, of the policy proceeds to an assignee. The extent to which these rights are transferable depends on the assignment provisions in the policy, the intention of the parties as expressed in the assignment form, and the actual circumstances of the assignment.

In general, no interest deduction is allowed when the indebtedness is used to purchase or carry a life insurance contract. However, there is an exception that will allow the interest deduction as long as the indebtedness is incurred in connection with a trade or business.

Types of Assignments

There are two types of conventional insurance policy assignments:

1. An absolute assignment is normally intended to give the assignee every right in the policy that you possessed prior to the assignment. When the transaction is completed, you have no further financial interest in the policy.

The terminology of absolute assignments differs from contract to contract. In essence, it states that you transfer all rights, title, and interest in the policy to the assignee. Some insurance companies use an “ownership clause” to accomplish this transfer.

2. A collateral assignment is a more limited type of transfer. It is a security arrangement to protect the assignee (lender) by using the policy as security for repayment. After the indebtedness is repaid, the assignee releases his or her interest in the policy.

In other words, the assignee will revert to you the rights transferred by the assignment. Under the usual procedure, if the collateral assignment is still in force at your death, the assignee informs the insurance company of the remaining indebtedness including interest and receives that amount in a lump sum. Any excess proceeds are then payable to your named beneficiary in accordance with the beneficiary designation in your policy.

To fully protect the assignee, notice must be given to the life insurance company that the assignment has been made. If a company with no notice of assignment makes payment of the proceeds to another assignee or to a named beneficiary, the insurance company cannot be made to pay a second time.

Policy Provisions

Some typical policy provisions concerning assignments may include the following:

1. The assignment will not be binding until the original, or a duplicate thereof, is filed at the insurance company’s home office.

2. The insurance company assumes no obligation as to the effect, sufficiency, or validity of the assignment.

3. The assignment is subject to any indebtedness to the insurance company on the policy.

Thus, it is important to ensure that an assignment is made properly, regardless of whether it is absolute or collateral.

*Although loans generally are not taxable, there may be tax consequences if the policy lapses or is surrendered (even as part of a 1035 exchange) with a loan or assignment outstanding. The taxable income from the surrender, 1035 exchange, or lapse of the policy may exceed the cash proceeds received from it. If the policy is a modified endowment contract (MEC), pre-death distributions from the policy, including loans and assignments, are taxed on an income-first basis, and there may also be a 10% federal income tax penalty for distributions prior to age 59½.

Pursuant to IRS Circular 230, we are providing you with the following notification: The information contained in/on this article, illustration is not intended to (and cannot) be used by anyone to avoid IRS penalties. This [document, brochure, article, illustration, flyer, website] supports the promotion and marketing of life insurance. You should seek advice based on your particular circumstances from an independent tax advisor.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0910132110(exp1211)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Recently, as they contemplated retirement, Brenda and Jake reevaluated their insurance needs and were surprised to discover their insurance coverage is inadequate. How could this be? The answer, in a word, is inflation.

Because inflation affects purchasing power, it may also affect life insurance needs. For couples like Brenda and Jake, inflation means that life insurance coverage that was adequate years ago may now be insufficient. With this in mind, consider three of the more common uses for life insurance proceeds that may be affected by inflation:

Paying Off Your Mortgage. If you have recently purchased a new home or upgraded a home you already own, you may need to consider increasing your life insurance to help cover your mortgage payments. Insurance proceeds may be used to help pay off the mortgage in the event of the insured’s death.

Funding Future College Expenses. Compared to the previous year, the average annual cost of tuition, fees, room, and board for the 2008–09 academic year increased by over 5.5% at both private and public four-year colleges (The College Board, 2009). To be prepared, be sure to factor inflation into your college savings strategies. In addition, have a contingency plan in the form of adequate life insurance to help cover college expenses in the event of an untimely death. Review your strategy periodically, and consider increasing your coverage to reflect the anticipated future cost of higher education.

Maintaining Your Standard of Living. Over time, the costs associated with the normal expenses of everyday life, as well as the special pleasures most people look forward to in retirement—traveling, visiting children and grandchildren, and engaging in favorite hobbies and leisure time activities—are affected by inflation. As a result, the lifestyle you hope to enjoy in retirement could be affected, too. Your life insurance coverage, based on yesterday’s needs and the current cost of goods and services, may be potentially shortchanging the future standard of living of your loved ones. Factoring inflation into your life insurance program can help your loved ones maintain their lifestyle upon your death. In addition, if the policy allows, you can make withdrawals to fund your retirement years. However, any loans and withdrawals will decrease the amount of life insurance proceeds, and interest will be charged if the loan is not paid back before the insured dies.

Future Projections

Determining current life insurance needs is one thing, but figuring out how much coverage you’ll need in the future requires you to pay careful attention to inflation and how it can affect your family’s lifestyle. Regular reviews of your insurance coverage can make a great deal of sense. Plan to set aside time at least once each year to help ensure that your life insurance program is keeping up with inflation.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0910132069(exp1011)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Eligibility Rules
Small group employers must meet the following guidelines to be eligible for this federal income tax credit¹. The requirements are a combination of three factors related to the business – size of their company, percentage of health care coverage they provide, and total wages paid.

• Firm size. First, there are restrictions on the number of employees that an employer may have. A qualifying employer must have less than the equivalent of 25 full-time workers when totaling all individuals’ hours of employment. When all part-time and full-time hours of employment are combined and divided by a full time 40 hour week, and if the number of employees needed to cover the total hours is less than 25 employees, the employer will qualify for the credit.
• Provide health care coverage. Secondly, the employer must confirm that they cover at least 50 percent of the cost of health care coverage for their employees. To determine this, the firm size equivalent number determined above must be used. Next, the employer must know the cost they pay to cover a single full time employee’s insurance premium. The employer must then make the following calculation:
  • Equivalent firm size multiplied by (X) the cost paid for an individual premium and divided by (/) two.  
  • The above calculation is the percentage of health care coverage that the employer must cover in order to qualify for the credit. Therefore, they do not have to pay full coverage for each employee. They could reach the required premium with some full coverage and some partial coverage of employees.
• Total Wages Paid. Finally, there are wage restrictions on the qualifications.
  • Employers with 10 or fewer Full Time Equivalent (FTE) employees, paying annual average wages of $25,000 or less will receive the maximum credit of 35 percent.
  • Employers with greater than 10 and fewer than 25 Full Time Equivalent (FTE) employees, paying annual average wages of less than $50,000 will also receive the minimum credit of 35 percent of premiums paid.
  • All tax-exempt organizations that meet either of the above criteria can only claim the minimum credit of 25 percent of premiums paid.

As the IRS states: “The credit is completely phased out for employers that have 25 or more FTEs or that pay average wages of $50,000 or more per year. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, employers that use part-time workers may qualify even if they employ more than 25 individuals.²”

• Amount of credit and years available.

As stated by the IRS: “Small businesses can claim the credit for 2010 though 2013 and for any two years after that. For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations. Beginning in 2014, the maximum tax credit will increase to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible tax-exempt organizations.²”

• More information. Please visit the FAQ section on the IRS website as there are several examples listed and helpful questions and answers pertaining to different circumstances.

Claiming the Credit

• Small employers, whether businesses or tax-exempt organizations, will use the new Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the small business health care tax credit.
• For-profit small businesses will include the amount of the credit as part of the general business credit on their income tax returns.
• Tax-exempt organizations will include the amount of the credit on Line 44f of revised Form 990-T, Exempt Organization Business Income Tax Return. Form 990-T has been revised for the 2011 filing season to enable eligible tax-exempt organizations, even those that owe no tax on unrelated business income, to claim the small business health care tax credit.

For your interest: In an Analysis of the Small Business Health Insurance Tax Credit and Effects on Coverage conducted by the Committee on Small Business Democrats U.S. House of Representatives, a document was created showing the Impact of Health Care Tax Credit, by State. Please take a look at this document, as it pertains to the small group market in each individual state.

In order to make this information easier to communicate to your clients, BenefitMall has provided a client letter explaining the details above – Small Business Tax Credit. Please feel free to add your personal contact information to better utilize this component with your clients.

For further details on this opportunity for your valued customers, please visit the IRS website. Here the IRS provides form 8941 filing instructions, an informational video as well as a useful FAQ. Also, for further assistance with specific questions which cannot be answered in the information or links provided above, please click here for a state-by-state IRS Taxpayer Assistance guide.

The needs analysis approach incorporates an evaluation of your family’s most important financial obligations and goals. This leads to planning insurance coverage to help address mortgage debt, college expenses, and future family income, as well as to provide liquidity for meeting future estate tax liabilities.

Mortgage Debt

The first point worthy of consideration is whether your life insurance proceeds will be sufficient to help pay the remaining mortgage on your home. If you are carrying a large mortgage, you may need a sizable amount. If you own a second home, that mortgage should also be factored into the formula.

College Expenses

Many people want life insurance proceeds large enough to help cover their children’s college expenses, and possibly, graduate school. The amount needed can be roughly calculated by matching the ages of your children against projected college costs adjusted for inflation. This calculation should be revised periodically as your children get closer to college age, and it may be a good idea to be as conservative as possible when estimating long-term savings goals.

Continuing Income for Your Family

The amount of income you will need to help provide for your surviving spouse and dependents will vary greatly according to your age, health, retirement plan benefits, Social Security benefits, other assets, and your spouse’s earning power. Many surviving spouses may already be employed or will find employment, but your spouse’s income, alone, may not be sufficient enough to cover the monthly expenses of your family’s current lifestyle. Providing a supplemental income fund can help your family maintain its standard of living.

Estate Taxes

Life insurance has long been recognized as an effective method for establishing liquidity at death to pay estate taxes and maximize asset transfers to future generations. However, this use of life insurance requires qualified legal expertise to help ensure the proper results.

Existing Resources

If your current assets and retirement plan death benefits are sufficient to cover your financial needs and obligations, you may not need additional life insurance for these purposes. However, if they are inadequate, the difference between your total assets and your total needs may be funded with life insurance.

There are many factors to consider when completing a needs analysis. In addition to the areas already mentioned, some other questions you might want to address include the following:

1. How much will Social Security provide and for how long?

2. How do you “inflation-proof” your family income, so the real purchasing power of those dollars does not decrease?

3. What is the earning potential of your surviving spouse?

4. How often should you review your needs analysis?

5. How can you use life insurance to help provide retirement income?

6. How do you structure your estate to reduce the impact of estate taxes?

7. Which assets are liquid and which would not be reduced by a forced sale?

8. Which assets would you want your family to retain because of sentiment or future growth possibilities?

As you develop an insurance strategy, remember to analyze your existing policies. Calculate the additional coverage you may need based on your family’s financial obligations and any other resources, such as retirement benefits and savings. Remember, having the proper life insurance coverage can play a major role in any family’s financial protection.

MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0410101464(exp0411)(All States)(DC)

This article appears courtesy of Karl Susman.  Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast.  You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Asset allocation is the process of attempting to decrease financial risk by investing monies in different asset categories. To effectively diversify, consider investing in at least three different asset classes. The major asset categories include stocks, bonds, and cash (saving and checking accounts, certificates of deposit, money market accounts, and Treasury securities). Mutual funds often represent a combination of asset categories, but they may consist of just one asset category, such as a bond fund.

Overall, asset allocation may help reduce investment risk while achieving potentially higher returns. That’s because different categories of investments react differently to changes in the economy. For example, while stock values might be plummeting, bond values may be rising or remaining level. With a well-diversified portfolio, you can ultimately come to own many asset categories, thus potentially reducing the impact market volatility may have on your total investments.

Creating Your Own Ensemble

Before deciding where to invest, you should review your personal financial goals and ask yourself the following questions:

• What are my goals for my money?

• How can I keep inflation from eroding my purchasing power?

• How much risk am I willing to take with my money?

• Will I be comfortable holding investments with daily price fluctuations?

Many investors use asset allocation as the foundation of their portfolios. However, it is essential to realize that this strategy does not eliminate risk or guarantee a profitable investment return.

To reduce risk, your financial portfolio should reflect your own personal financial goals and investment style. Among other factors, your age, income, expenses, family responsibilities, and risk tolerance can influence how you should build your portfolio.

Arranging a Masterpiece

One of the biggest challenges facing the average investor is deciding how to allocate personal savings or retirement assets. Naturally, most individuals hope to create an investment portfolio that is consistent with their personal objectives and risk tolerance level. However, the lure of potentially high rates of return can easily skew an investor’s objectivity, resulting in unrealistic expectations and unnecessary exposure to risk. Thus, it is important to adhere to a diversified investment strategy that conforms with your short- and long-range goals. With a little bit of patience, your future may bring music to your ears.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

L0410102864(exp0511)(All States)(DC)

This article appears courtesy of Karl Susman.  Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast.  You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Many people assume that because death benefit proceeds from a life insurance policy are generally not considered taxable income to the beneficiary, a life insurance policy is out of the reach of the Internal Revenue Service (IRS). However, when the policy’s death benefits are added to the appreciated value of your home and savings, it may come as a shock to find that the value of your estate may exceed the applicable exclusion amount.

Taxpayers should be aware that, under current law, Federal estate taxes are repealed in 2010. However, according to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), estate taxes will be reinstated in 2001, with an applicable exclusion amount of $1 million and a top tax rate of 55%. Congress may retroactively change the rules before the end of 2010, reinstating the estate tax at the same or new levels.

Although the unlimited marital deduction allows spouses to transfer assets to each other without assessment of estate taxes, non-spousal heirs face the possibility of seeing a life insurance policy inflate an estate’s value past the scheduled exemption amount in the year of death.

One Strategy: A Credit-Shelter Trust

One way to protect life insurance policy proceeds from estate taxation is to use a type of bypass trust known as a credit-shelter trust. This trust can be established during life, even if left unfunded, or at death through a will.

For estate conservation purposes, a trust could be set up to maximize each spouse’s applicable exclusion amount, perhaps sheltering more assets from estate taxation than may be possible through use of just the unlimited marital deduction. At the death of one spouse, an amount equal to his or her applicable exclusion amount could pass to a trust to benefit the surviving spouse but intentionally designed not to qualify for the marital deduction, with the remainder of the assets passing outright to the spouse. Then, at the death of the surviving spouse, assets in the credit-shelter trust could be paid to the couple’s children—without being subject to Federal estate tax. Any assets outside the trust upon the surviving spouse’s death, and therefore potentially subject to estate tax, could be further sheltered by the second spouse’s applicable exclusion amount for that year.

Another Approach: An ILIT

Especially when children are intended to receive the proceeds of a life insurance policy and the owner wants to exempt the policy from the estate’s total worth, an irrevocable life insurance trust (ILIT) is another approach. In this case, the trust is the owner and the beneficiary of the policy. Keep in mind, however, the term “irrevocable” means beneficiaries may not be changed and loans for the benefit of the insured may not be paid out from the policy once it is put into the trust. Putting a hefty life insurance policy into such a trust could help beneficiaries finance the purchase of a family business or pay estate taxes. However, funding an ILIT may result in gift taxes due.

Park Your Policy in the Right Spot

A trust, depending on the type, can help reduce or defer taxes on high-value assets such as life insurance. More broadly, a trust can be the means to help ensure the policy’s benefits go directly to the intended beneficiary. With the flexibility of trusts, however, comes complexity. It is always best to consult with an estate attorney who is experienced in tax matters before proceeding.

MetLife, nor its affiliates, their agents, and representatives, may not give legal or tax advice. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

The needs analysis approach incorporates an evaluation of your family’s most important financial obligations and goals. This leads to planning insurance coverage to help address mortgage debt, college expenses, and future family income, as well as to provide liquidity for meeting future estate tax liabilities.

Mortgage Debt

The first point worthy of consideration is whether your life insurance proceeds will be sufficient to help pay the remaining mortgage on your home. If you are carrying a large mortgage, you may need a sizable amount. If you own a second home, that mortgage should also be factored into the formula.

College Expenses

Many people want life insurance proceeds large enough to help cover their children’s college expenses, and possibly, graduate school. The amount needed can be roughly calculated by matching the ages of your children against projected college costs adjusted for inflation. This calculation should be revised periodically as your children get closer to college age, and it may be a good idea to be as conservative as possible when estimating long-term savings goals.

Continuing Income for Your Family

The amount of income you will need to help provide for your surviving spouse and dependents will vary greatly according to your age, health, retirement plan benefits, Social Security benefits, other assets, and your spouse’s earning power. Many surviving spouses may already be employed or will find employment, but your spouse’s income, alone, may not be sufficient enough to cover the monthly expenses of your family’s current lifestyle. Providing a supplemental income fund can help your family maintain its standard of living.

Estate Taxes

Life insurance has long been recognized as an effective method for establishing liquidity at death to pay estate taxes and maximize asset transfers to future generations. However, this use of life insurance requires qualified legal expertise to help ensure the proper results.

Existing Resources

If your current assets and retirement plan death benefits are sufficient to cover your financial needs and obligations, you may not need additional life insurance for these purposes. However, if they are inadequate, the difference between your total assets and your total needs may be funded with life insurance.

There are many factors to consider when completing a needs analysis. In addition to the areas already mentioned, some other questions you might want to address include the following:

1. How much will Social Security provide and for how long?

2. How do you “inflation-proof” your family income, so the real purchasing power of those dollars does not decrease?

3. What is the earning potential of your surviving spouse?

4. How often should you review your needs analysis?

5. How can you use life insurance to help provide retirement income?

6. How do you structure your estate to reduce the impact of estate taxes?

7. Which assets are liquid and which would not be reduced by a forced sale?

8. Which assets would you want your family to retain because of sentiment or future growth possibilities?

As you develop an insurance strategy, remember to analyze your existing policies. Calculate the additional coverage you may need based on your family’s financial obligations and any other resources, such as retirement benefits and savings. Remember, having the proper life insurance coverage can play a major role in any family’s financial protection.

This article appears courtesy of Karl Susman.  Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast.  You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.

Copyright © 2011 Liberty Publishing, Inc. All Rights Reserved.

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Insurance, in all its varied forms, is quite simply a method for handling risk. In order to plan an effective insurance program, you need to consider the risks to which you and your family are exposed and how financial loss could affect you. For each risk exposure, the key elements to consider are the severity and frequency of loss.

All Risks Are Not Created Equal

Insurance is oftentimes required in certain situations: For example, some states require a driver to obtain auto insurance in order to receive or maintain a license, and some lending institutions will not approve a mortgage application if the potential owner does not also purchase homeowner’s insurance. In these situations, while a base level of coverage may be required, you, as the insured, still may have choices as to the amounts and levels of coverage purchased, according to your specific risk needs.

Some risks may be so negligible that you may decide to accept more responsibility for any potential loss. In insurance language, you “self-insure” for risks you choose to accept. For example, it is rarely cost-effective to carry a large amount of collision coverage on a ten-year-old automobile. Since collision coverage generally pays actual cash value, and since a ten-year-old car may have little current fair market value (FMV), it is common to self-insure a larger portion of collision coverage in such cases. In making this choice, you assume more responsibility for any accidental damage to the vehicle that you might cause.

In contrast, in other situations, the risk is so large (or the cost of self-insurance so great) that the best strategy is to try to avoid the risk entirely. You practice risk avoidance in daily life when you invoke the phrase “not worth the risk” to describe your decision not to participate in some events. In addition to required coverages, you may oftentimes customize insurance to protect against certain extras according to your needs. For example, it may be wise to purchase a policy rider for your homeowners policy if you own an antique art collection that is worth more than the value of more standard coverage.

Sometimes, for instance, risk can be reduced by taking extra measures to control the potential conditions that may lead to loss. Installing an automobile anti-theft device or a home security system may reduce the chances of burglary to your car or home.

Risk Transfer and Risk Sharing

Buying insurance is the process of transferring risk you cannot afford, or choose not to accept. Since you may be unable to afford to rebuild your home and replace all its contents in the event of fire, you may choose to transfer that risk to an insurer by purchasing the appropriate amount of homeowners insurance. However, even in situations of risk transfer, it is quite common to share some of the risk. For example, the deductible on an automobile or homeowners insurance policy is a form of risk sharing—you accept responsibility for a small portion of the risk while transferring the bulk of the risk to the insurer.

Taking a closer look at the different types of risks that are faced on a daily basis can help you answer questions such as the following: What is my risk level and how much of that risk can I afford to shoulder? What types of insurance, in addition to required coverage, might I need? And, how much coverage should I purchase? The fundamental rationale behind all forms of insurance is to determine what risks can be transferred on a cost-effective basis.

This article appears courtesy of Karl Susman.  Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast.  You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Copyright © 2011 Liberty Publishing, Inc. All Rights Reserved.

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In the past, with traditional defined benefit plans, the plan participant was promised a retirement benefit, but he or she had no vested retirement account balance. However, with the shift toward defined contribution plans, vesting for employee contributions is immediate, and vesting for employer contributions builds quickly. Consequently, as more Americans participate in 401(k) plans and other defined contribution retirement plans, dividing vested retirement plan assets in divorce situations has created complex financial issues.

Protect Yourself with a QDRO

A qualified domestic relations order (QDRO) is a judgment or order that involves child support, alimony, or property rights pertaining to a spouse, former spouse, child, or other dependent. A QDRO can be used to establish one spouse’s right to part or all of the other spouse’s retirement plan(s)—and to ensure that the recipient spouse pays the tax.

To be protected through a QDRO, it must specify the following:

o The name and address of the plan participant and the “alternate payee” (typically, the participant’s spouse).

o The name and account number of each retirement account involved.

o The percentage (or dollar amount) of each plan that is to be paid to the alternate payee.

o The period of time or the number of payments covered by the QDRO.

The QDRO must be a part of the divorce decree or a court-approved property settlement document. The decree should also specify that a QDRO is being established under Section 414(p) of the Internal Revenue Code (IRC) and the particular state’s domestic relations laws. Intent to establish a QDRO is insufficient; it must be spelled out in the divorce papers.

Getting divorced can be “taxing” enough, but it need not be made more difficult by mishandling the division of assets in a retirement plan. And, although this particular decision does appear to provide room for straying from the precise wording of the statute, applying the proper language in a divorce decree may help ease some of the inevitable complications that can arise, facilitating a smoother transition for all involved. Qualified legal advice should be obtained to help ensure that any desired planning actions are worded and structured properly.

This article appears courtesy of [Reps full name]. [Reps first name] is a Registered Representative offering securities through MetLife Securities, Inc.(MSI) (member FINRA/SIPC), New York, NY 10166. Insurance and annuities offered through Metropolitan Life Insurance Company (MLIC), New York, NY 10166. MSI and MLIC are MetLife companies. [He/She] focuses on meeting the individual insurance and financial services needs of people [in/from] [name occupation/profession/business/or lifestyle market]. You can reach [rep first name] at the office at [registered branch office address and phone number, including area code]. MetLife does not provide tax or legal advice.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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This article appears courtesy of Karl Susman. Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

CFS® certification requires mastery of portfolio construction, risk measurement, manager
selection, monitoring, income strategies, retirement accounts, titling, taxation and the
psychological aspects of finance. According to IBF, “The vast majority of investors and advisors
do not know how to properly select a mutual fund, understand what criteria are important, asset
category correlation or what historical statistical information is a good predictor and what is a
poor indicator of what is likely to happen in the future.”
The student must pass three comprehensive exams and a written case study as well as adhere to
the IBF Code of Ethics and IBF Standards of Practice as well as fulfill annual continuing
education requirements. The CFS® program, since 1988, is designed for brokers and advisors
who have clients that either own or are considering investing in mutual funds or exchange-traded
funds.

ABOUT THE INSTITUTE OF BUSINESS & FINANCE – Founded in 1988, IBF is a nonprofit
provider of financial education and designations to members of the financial services
industry. IBF is the fourth oldest provider of financial certification marks in the United States. In
1988, IBF launched its first certification program, CFS® (Certified Fund Specialist®). Today IBF
offers four additional financial designation programs: CAS® (Certified Annuity Specialist®),
CES™ (Certified Estate Planning Specialist™), CIS™ (Certified Income Specialist™) and CTS™
(Certified Tax Specialist™).

· Diagnosis codes and treatment codes (and their descriptions) on explanation of benefit forms, which raises privacy concerns

· Group-specific language requirements, which put additional responsibilities on customers 

For details on our current implementation efforts, please review the fact sheet that outlines our implementation efforts for both parts of the appeals provision: (1) adverse benefit determinations and (2) appeals process.

New fact sheets outline market reforms in 2014

In 2014, some of the most significant requirements of the health care reform law will take effect. In addition to the availability of exchanges, 2014 will bring changes to health insurance markets, product designs and employer responsibilities. 

We’ve developed a new fact sheet that outline key changes coming in 2014, including:

· Exchanges

· Health plan product framework

· Additional product requirements

· Free choice vouchers

· Rating requirements (small group only)

· Combined risk pool (small group only)

The information in the fact sheet is based on the provisions in the health care reform law. Many of the details about 2014 market reforms will need to be clarified by regulations.

Several common themes emerged during the meetings:

• Timelines
  • Both the public and private sector policy experts appear to be genuinely concerned about addressing PPACA’s quick timelines for implementation. Beyond the politics, there appears to be an apolitical sentiment that we need to move more slowly. However, the regulators would need additional legislative or regulatory guidance to change the major timelines that were established through PPACA statutory requirements.  
• Exchanges¹
  • Most states are busy sorting out the governance structure of the public exchanges and beginning to identify some of the key exchange operational elements in 2011.
  • PPACA authorizes a variety of options related to how the exchange models can be configured ranging from the Massachusetts’ “active purchaser” model to Utah’s “all comers” approach.  
  • The Small Business Health Options Program (SHOP) exchange concept appears to be a legislative after-thought and more details need to be sorted out.
  • The same rating rules should be implemented both inside and outside each public exchange to help avoid adverse selection.
  • Tracking eligibility for individuals and families overtime is going to be a challenge and might generate privacy concerns.
  • Policymakers were very interested in learning more about how private exchanges, such as BenefitMall, have been successful.
• Benefits
  • The definition of the essential benefit package(s) offered through the exchanges will have a profound impact on PPACA’s ultimate success.
  • Existing and future federal/state mandated benefits will likely be unaffordable.
  • After the BenefitMall meetings, regulators appear to have a greater understanding of the wide range of current benefit offerings (which supports the premise that one size does not fit all.)
• Funding
  • Many of PPACA’s original cost estimates were not accurate.
  • Significant cost and implementation challenges lie ahead – both at the state and federal levels.
  • The threat of de-funding PPACA and the ongoing budget battles are having a chilling effect on some regulatory activities.
• Understanding the Market
  • There appears to be a greater appreciation of how PPACA could help and hurt the private sector.
  • More attention needs to be devoted to the impact of PPACA’s insurance market reforms.  
  • Regulators are interested in learning more about local market purchasing trends from experts like BenefitMall.
• Supporting the Consumer²
  • Meeting participants appear to recognize that inexperienced Navigators (a concept embedded in PPACA) should not replace the role of a licensed broker.

o A greater awareness of the backend support services is more apparent, including the need for a broker’s services to help consumers answer health questions.

Current PPACA activities in the pipeline include:

• On Thursday, Representatives Mike Rogers and John Barrow introduced legislation to exempt broker compensation from the medical loss ratio calculations.
• A myriad of funding and defunding measures continue to wind their way through the halls of Congress.
• Health care providers continue to wait for the Centers for Medicare and Medicaid Services (CMS) to publish regulations governing accountable care organizations (ACOs).
• The Institute of Medicine is currently studying how PPACA’s Essential Benefit packages should be designed.³
• State activity continues to heat up with almost 500 bills recently introduced in the majority states which reference PPACA’s state-based exchanges.⁴
• The five court cases challenging PPACA’s individual mandate will likely be appealed to the U.S. Supreme Court.⁵
• With Republicans beginning to announce their intention to run for President, the 2012 campaign season will begin shortly – which will provide an opportunity to re-evaluate PPACA’s insurance market pre-suppositions and legislative policy goals.
• Congress is still addressing the repeal of the 1099 reporting requirements.⁶
• With 42 out of 100 Senators firmly opposed to the nomination of Don Berwick as CMS Administrator, President Obama will likely need to consider new candidates since 60 senators must vote for the nomination.

Interestingly, this week HHS Chief Sibelius again signaled more flexibility in how the states can implement PPACA. However, Republicans continue to complain that they are not seeing enough follow-up to these promises.⁷

1. BenefitMall’s Issue Brief on Exchanges at https://www.benefitmall.com/PORTAL/Portals/0/BenefitMall Brief.pdf

2. Unfortunately, many policy experts still believe that offering an online web portal will be enough to empower employers and individuals to make a health insurance purchasing decision.  This is just not the case.

3. http://www.iom.edu/Activities/HealthServices/EssentialHealthBenefits.aspx

4. Based upon Westlaw search run on March 17, 2011 (Search Terms “Patient Protection and Affordable Care Act” and “Exchanges” used in the same bill).

5. http://www.healthcareexchange.com/blog/michael-gomes/eleventh-circuit-court-appeals-hear-vinson-case-declared-ppaca-unconstitutional

6. https://www.benefitmall.com/PORTAL/Portals/0/Legislative Alert/20101029LegislativeAlert.pdf

http://www.politico.com/news/stories/0311/51269.html

It is estimated that during a school year the average college or university student will spend approximately $4,000 for books, supplies, transportation, and personal expenses (Trends in College Pricing—2009, The College Board). However, there is often room for economizing. The first place to look is at food and telephone calls. Difficulty may occur in controlling these expenses, especially if pizza is ordered regularly at 2 am and long-distance friends are simply a phone call away.

While many students may assume it costs less to live off campus than in a dorm, they may be in for a surprise. In college towns with a high demand for off-campus housing, accommodations within walking distance of the campus may tend to be expensive. Some landlords require a one-year lease—a period longer than the school year—thus, subleasing privileges should be included as part of an “economical” lease. However, off-campus students can save money by sharing housing and doing their own cooking.

Money Smarts 101

The following may serve as important steps toward helping your student understand college finances:

1. Before your student leaves for college, sit down and have an open discussion of expectations—both your child’s and yours.

2. Consider providing a lump sum each semester, making it clear how long the money must last.

3. Explain when checks or money transfers can be expected, the amounts that will be received, and any rules concerning the use of funds.

Since most students rely on savings and checking accounts—regardless of whether they include parental funds, their own, or a combination of both—it is important for them to understand how these accounts work. The ability to balance an account accurately and make needed corrections is especially critical.

Many undergraduates may keep most of their funds in hometown financial institutions. However, managing financial affairs long-distance can be difficult. Verifying an account balance quickly with an out-of-state bank can be both costly and time-consuming. So, it may be a good idea to keep a smaller account on campus.

While some parents may fear a credit card can give a student who has difficulty managing his or her affairs too much of a cushion, others find a credit card can provide a useful backup, especially in an emergency or for certain expenses. For instance, it can help with car rentals, plane fares, and railroad tickets. In addition, trying to get money to college students in different locations can be frustrating, and it is often impossible for anyone to cash personal checks away from home.

Making the Grade

Ideally, college students should take full charge of a semester’s spending. Life becomes much easier for parents when college-age children can manage their own finances, and the students will learn valuable life skills in the process.

This article appears courtesy of Karl Susman.  Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast.  You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Copyright © 2011 Liberty Publishing, Inc. All Rights Reserved.

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Unfortunately, economic forecasting, like forecasting the weather, is far from an exact science. Even professional economists may strongly disagree on the direction of the economy at any given point in time, based on differing interpretations of conflicting economic indicators. Although many factors are important in assessing the economy, this discussion will focus on two key points that can help you get a better feeling for where our economy currently stands and in what direction it may be headed in the near future.

How Much Longer?

Economic forecasters are always searching for storm clouds that might signal an economic downturn. Since consumer spending has historically accounted for about two-thirds of the economy, many observers have looked to “pocketbook” issues in search of primary clues as to which way the economy may be heading.

While consumers don’t usually cut back first and cause a recession, buying more on credit translates into greater monthly payments, and at some point, consumers can do only what their incomes will allow. With personal debt historically on the increase, keeping an eye on consumer debt levels is particularly important because of the sheer weight of total consumer spending in our economy. However, it may be wise to eventually concentrate your attention on current federal decisions that set the foundation for our overall economic climate.

The Role of the Federal Reserve Bank (The Fed)

Even the casual observer of business news knows that “Fed watching” is a serious activity in the financial and business sectors. You may be wondering, however, why the Fed is so important.

While consumers can affect the economy by acting according to their own perceptions and pocketbook pressures, federal policy decisions, such as fiscal and monetary measures, can also move the economy. Fiscal policy, enacted by Congress in the form of tax and/or spending legislation, is the by-product of the political process and the prevailing political climate. In contrast, monetary policy is the purview of the Fed, whose role is to evaluate all of the forces acting on the economy (individual, market, and governmental) and to take the action it believes will keep the economy on an even keel.

The Fed can manipulate the money supply in hopes of obtaining a desired effect over time. However, the Fed’s most effective short-range policy decisions with which to manipulate the economy involve short-term interest rates. Consequently, the Fed can realistically have only one target—inflation. If the Fed perceives that prevailing forces will increase inflation, it will attempt to slow the economy by raising short-term interest rates (the assumption being that increases in the cost of borrowing money are likely to dampen both personal and business spending behavior). Conversely, if the Fed perceives the economy has slowed too much, it will attempt to stimulate growth by lowering short-term interest rates (the assumption being that lowering the cost of borrowing will stimulate personal and business spending).

In carrying out this balancing act, a very cautious Fed walks a fine line. If it doesn’t tighten the reins soon enough (by raising interest rates), it runs the risk of inflation getting out of control. If it fails to loosen soon enough (by lowering interest rates), it can plunge the economy into recession. Indeed, one might argue that the primary goal of the Fed is to keep inflation low enough so that it is not a factor in business decisions.

Up, Down, or Sideways?

By looking at your own spending outlook and debt burden (and that of your friends, relatives, and business associates), you may gain some insight into the short-term future of the economy. While by no means the complete story, it does represent a large chapter since it is the one over which individuals can exercise the greatest control. When combined with a little judicious Fed watching (e.g., several interest rate moves in the same direction may be an indication that the Fed is on a mission), you may have a fairly good basis for making sound decisions with regard to your own financial future.

This article appears courtesy of Karl Susman.  Karl Susman is a representative of the New England Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast.  You can reach Karl at the office at (424) 785-4337. New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116

MetLife does not provide legal or tax advice. Before implementing any strategy discussed herein, you should consult with your own financial, tax, and/or legal advisors to determine its applicability in light of your own situation.

Copyright © 2011 Liberty Publishing, Inc. All Rights Reserved.

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Linda Blair showing off their Susman Insurance Agency golf balls! We didn’t even know they golfed?

Small employer can be either 50 and fewer or 100 and fewer.  Beginning in 2016, the definitions in the federal health care reform law will apply:

Small employers are those who had, on average, 1-100 employees in the preceding calendar year and at least one employee on the first day of the plan year. (Note that this means sole proprietors could be considered part of the small group market.)

Large employers are those who had, on average, 101 or more employees in the preceding calendar year and at least one employee on the first day of the plan year.

These definitions are based on full-time equivalent calculation that accounts for both full-time and part-time employees. Full-time seasonal employees who work fewer than 120 days during the year are excluded.  On the surface, the inclusion of group size definitions in the federal health care reform law appears to bring more uniformity to health insurance markets. However, the definitions aren’t applied consistently throughout the law. For example, the medical loss ratio provision of the health care reform law amended the Public Health Service Act – but it didn’t change the existing, conflicting group size definitions in the Public Health Service Act.  In addition, some provisions that set different thresholds consider only full-time employees in the calculation rather than full-time equivalents.

Thanks to our friends at Anthem Blue Cross for this helpful information!

HHS was concerned that the original grandfathered language would yield the unintended consequence of forcing employers to offer the same level of benefits to all of their employees thus causing premiums to rise substantially. Ultimately, HHS realized that allowing employers some flexibility in this regard would help some Americans retain their current coverage and, perhaps, their jobs.

This is huge, but not because of what it does for employers or their employees. My guess is that the amendment will affect maybe 1% of consumers. What is significant, what we can’t lose sight of, is that this is clear evidence that HHS and the Administration are willing to listen to and act on employers’, consumers’, insurers’ and other stakeholders’ concerns and ideas on how to make healthcare reform more workable and successful for Americans.

The Patient Protection and Affordable Care Act (PPACA) consists of over 2,700 pages. When all is said and done, between additional legislation and lots of regulations, the bill page volume could easily grow to over 200,000 over the next 10 years. We have all known for some time that many of the details in this massive legislation would have to be filled in as time passes. Early indicators like the one above as well as regulations postponing the W-2 requirement for one year, giving carriers a little more flexibility on children-only policies and granting waivers to some employers enabling them to continue using mini-med plans should give us renewed hope that our healthcare system can be reformed in a positive way. The result of the November 2nd elections reinforce my belief in this regard.

I heard from one industry leader that PPACA is very likely to cause wild gyrations in the healthcare delivery system over the next decade. There are likely to be lots of “ups” and “downs” in our journey. For me, I choose to believe that these recent “ups” are positive signs that once we’ve reached our destination, we’ll discover that Americans are benefiting from a vastly improved system and that the agent remains at their side just as they have been so every step of the way.

Thanks for this article from our friends at Warner Pacific!

In this issue of the "Insurance Reporter," we focus on protecting yourself and your loved ones from burglary and crime. How can you feel empowered instead of frightened? How do you improve security at your home? Are guns in your household really the way to go? Read these stories and more to get some of the facts you need to make safety improvements in your life.

We appreciate your continued business and look forward to serving you.
Regards,
Karl D. Susman

Personal Protection From Crime

Safety Expert Shares Tips To Feel Empowered Instead Of Frightened
At some point in your life, you may run the risk of being a victim of crime.
Instead of feeling frightened, however, safety expert Tom Patire says you can feel empowered if you know how to protect yourself.
Patire’s newest book, "Personal Protection Handbook," is full of tips for protecting yourself and your family. When he wrote this book, he went right to the source, talking to people who were serving time. They all told him, "We didn’t choose the victims, they chose themselves."
Patire tells The Early Show co-anchor Rene Syler, "The bad guy is standing in the wings looking around and sees the person on the cell phone looking at the ground or the air and they become an easy mark. Most people will park their car real quick and rush to the store and forget where they parked their car and wander loosely around out there and who comes? The bad guy."

More

How to Protect Your Home From Burglars

Get Tips on Making Your House Safer When Thieves Come to Call
Ridgewood, N.J., schoolteacher Noreen Clark was sure her home was safe from an intruder invasion. The daughter of a retired police officer thought a security system she had installed when she purchased her home last December would prevent burglary.
She also changed all the locks, and if that didn’t work, there was always her golden retriever Jack.
"I feel very secure here. I feel that, on a scale of one to 10, I’m close to a nine or a 10," Clark said.
She was so confident that she agreed to let "Good Morning America’s" safety and security expert Bill Stanton come out and audit her home.

More

Nowadays, Crime Prevention and Technology Are Often Interwoven
It didn’t take long for video images of the crash of the US Airways plane in the Hudson River to be available everywhere. The crash was recorded by a security camera, one of the most prevalent uses of technology in crime prevention. Moreover, a recent article in Parade magazine stated that Las Vegas was the best place in the country to have a heart attack, with a 67 percent survival rate. The remarkable rate was attributed to the vast amount of human and electronic security present in Las Vegas casinos and on Las Vegas streets. The Parade article also stated that the survival rate in Chicago, where there are no casinos, is just 2 percent. Technology has changed our world.

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Identity Theft
According to the U.S. Postal Service, there were almost ten million incidents of identity theft in the United States in 2004 at a cost of $5 billion to consumers.
Victims report spending 30 hours, on average, cleaning up after an identity crime at an average cost of $500.
It’s in the newspapers every day and on the news every night. People worry that someone will run up charges on their credit card or fleece their bank account while their back is turned. There is reason to worry. All a thief needs is your Social Security number to commit identity theft. This crime is relatively easy to commit, but investigating and prosecuting it is complex and time-consuming. But once you know the facts and some preventive measures you can take, you can win the fight against identity theft!

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Lethal Weapons In The Home

Picture this. It’s late at night and you hear a noise at the back door or a window inside your home. You get up to investigate and find an intruder breaking into your home. What would you do?
The first answer is to call the police, but in the time it takes for them to arrive, a criminal may harm you or your family. Chances are the home invader will be armed with a knife or a gun, so the job of defender may be left entirely up to you.
Owning A Gun

While it’s always wise to do everything you can to safeguard your home from a break in, if a criminal is intent on getting into your house, chances are they will. This frightening concept causes home owners all over the country to purchase firearms and keep them easily accessible. Simply having the gun can make people feel safer, but if you own one it is vital to learn how to properly handle, maintain and fire the weapon.
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Have an iPhone?  iPad?  iPod Touch?  Chances are you just may, and if you do you should check out the new FREE application from CSE Insurance. 

When involved in a car accident, only about a million things go through your mind.   Who was at fault, who was driving the other car, damage to yourself or your car, the other people, the other car, where you are, what time it is and on and on.  CSE knows this and is offering this great little application to help you out.   With just a few clicks you are prompted for information you should be getting including the names of driver’s involved, witnesses, photos of the cars, the location of the accident, details and observations and the like.  You can even call the Police or a tow truck right from within the application.  Some additional functions include finding a local CSE Insurance Company independent insurance agent, like Susman Insurance Agency and requesting insurance quotes and proposals.  Nice job, CSE!

· Require co-pays or co-insurance for preventive services.

· Cap lifetime benefits. (Caps of $1 million to $2 million are now common.)

· Cancel or rescind a policy, except in cases of fraud.

· Refuse to cover pre-existing conditions in children.

In addition, parents in many health plans can keep their young-adult children covered until the age of 26, unless the child gets a job that offers health coverage.

The scope and timing of the changes, however, depends on the type of plan. Some of these changes don’t take effect until Jan. 1, 2011. Other plans are grandfathered, and exempt from the changes. For up-to-date information on the new reforms, go to www.insurance.wa.gov and click on the health reform icon.

“For national reform to succeed, it will be up to the states to make it work, and California is moving forward on reforms that will provide affordable and quality health care insurance,” Schwarzenegger said in a statement.

The two bills, SB900 and AB1602 are said to promote competition in the health insurance marketplace, according to Assembly speaker John Perez of Los Angeles.

Edwin Garcia, a spokesman for Kaiser Permanente, called the exchange “a promising and important part of health care reform” that would make coverage more affordable for millions of low- and middle-income Californians and small business owners. Kaiser insures about 6.5 million people in the state, Garcia said.

The exchange is said to be active by 2014.

Thanks to all of you, I reached my goal and am able to participate in the walk, and help to fight MS. Tomorrow I will be walking 20 miles, the next 20 another 20 miles and then Sunday the final 10 miles. I will be posting updates on my progress on Twitter and Facebook, and a daily update on Westside Gadget Guy.

Thanks again!

Karl Susman

We have reviewed the rules regarding the provisions of the Patient Protection and Affordability Care Act (PPACA) limiting the application of pre-existing condition exclusions for children under 19. Unfortunately, there remains a great deal of uncertainty as to how the rules will be implemented and what the impacts might be on participating insurers. 

While some carriers may continue to offer child-only policies, other carriers have dealt with this lack of clarity by choosing to discontinue new business sales of their child-only policies.  Some have cited the lack of an effective mandate for individuals to obtain coverage, as well as ongoing market uncertainty.  Unfortunately,  this has created an unlevel competitive environment.  As a result, Anthem has decided to suspend the sale of child-only policies indefinitely, beginning  September 17, 2010.

We will continue to monitor the situation and provide additional details on any changes to our process and policies as they become available.

Please Note: This decision has no impact on any existing child-only policies.  In addition, we will continue to accept children on family policies as long as the primary subscriber is 19 or older.

Why is Anthem suspending the sale of new child-only policies?

Anthem is committed to offering a broad range of products and services that meet customer needs in the changing health insurance market, and to implementing the new health care reform legislation in a way that benefits our customers and members.

We have reviewed the rules regarding the provisions of the Patient Protection and Affordability Care Act (PPACA) limiting the application of pre-existing condition exclusions for children under 19. Unfortunately, there remains a great deal of uncertainty as to how the rules will be implemented and what the impacts might be on participating insurers. 

While some carriers may continue to offer child-only policies, other carriers have dealt with this lack of clarity by choosing to discontinue new business sales of their child-only policies.  Some have cited the lack of an effective mandate for individuals to obtain coverage, as well as ongoing market uncertainty.  Unfortunately,  this has created an unlevel competitive environment.  As a result, Anthem has decided to suspend the sale of child-only policies indefinitely, beginning  September 17, 2010.

When will Anthem stop selling these polices?

Due to ongoing uncertainty, Anthem  has made the decision to suspend the sale of child-only policies and policies where the primary subscriber is under 19 years of age, for effective dates of 9/23 or later. Quoting capability for child-only policies will begin being removed on September 17, 2010.

Will Anthem’s family plans be offered to children 18 and under?

Anthem will continue to offer family policies that have dependent coverage to subscribers who are 19 years of age or older. 

Will Anthem participate in an "open-enrollment period" for child only plans? 

No, Anthem has made the decision to suspend the sale of child-only policies and policies where the primary subscriber is under 19 years of age, for effective dates of 9/23 or later.

Will this impact all states in which Anthem’s affiliated health plans are currently providing Individual Child-only plans?

The suspension of child-only plans will apply to all states unless a particular state requires the offering of child-only policies.  Based on state specific requirements, we will continue to offer Child-only plans in Maine and New York, and in open enrollment periods in Ohio and Virginia. Child-only plans will also be offered in those states requiring such policies for conversion and HIPAA eligible individuals.  Existing policyholders will not be impacted by this action and they may continue in their current coverage.

By popular request, you can now get the Susman Insurance Agency Application in the Apple App Store!  Now for the iPhone, iPod Touch and all iOS devices!  Features include updated Video Podcast, archieve of previous Video and Audio Podcasts, easy agency contact and more!

Los Angeles County Sheriff’s Department officials said the group disappeared Saturday and left behind evidence that they were awaiting the rapture or some catastrophic event.

“They left behind a significant amount of personal belonging and written notes,” sheriff’s spokesman Steve Whitmore told members of the media.

Sheriff’s Cpt. Mike Parker said the husbands of two of the missing adults from the group was asked to keep a purse, and inside it found identification, personal papers and letters suggesting the group was awaiting the end of the world.

Parker says the group’s leader, Reyna Chicas of Palmdale, is among the missing.

“It is an offshoot of a religious group, but not affiliated with anybody,” Whitmore said. “It’s a group of religious beliefs in and of itself.”

Whitmore said it does not look like they’re planning a trip.

The children, six boys and two girls, rage in age from 3 to 17.

The Associated Press contributed to this report.

You think you know it all? You think, hey, I’ve lived in California all my life, and I’m still here. I must know what I’m doing. Think again. Take the Quake Quiz and see just how much you need to learn. You can also follow the Great California Shake Out on Twitter and Facebook.

Plan, and prepare. We’re all in this together.

Karl Susman

Fighting Infection

Concern over the threat of infection often increases in the fall as the weather begins to change and school sessions begin. This month we pass along research findings, articles and tips to help keep you informed and your kids healthy. The best way to fight infection is to be aware of preventive measures and, whenever possible, get all available immunizations for yourself and your children.

Whooping Cough Outbreak: Immunize for Protection
Currently, California is reporting a state-wide epidemic of pertussis, or whooping cough. Whooping cough is very contagious and can cause serious illness, especially in infants too young to be fully vaccinated. Take action to make sure your infants and young children get their recommended five shots on time. Adolescent and adult vaccination is also important, since the immunity from the vaccine or the illness itself can wear off over time. The Tdap booster is recommended for pre-teens at age 11-12; women of childbearing age, before, during, or immediately after pregnancy; adults age 65 and older; and adults who will be around infants.

Superbugs
MRSA, commonly known as "staph," is a common bacteria that can cause serious infection, especially if you are ill or if your immune system is weak. Learn more about MRSA, including causes and symptoms.

Invasion of the Microorganisms
Infections are inevitable. Some are more serious than others, but you can reduce your risk by building up a strong immune system. Learn some preventive measures, along with holistic suggestions for healthier living.

The information in this newsletter is not intended to be a substitute for professional medical advice. Please consult your healthcare provider with any concerns you may have.  Thanks to Blue Shield for this helpful information!

State Facts: Are You Legally Liable for Your Dog?

According to the Centers for Disease Control and Prevention, more than 4.7 million people are bitten by dogs annually, resulting in an estimated 800,000 injuries that require medical attention. With over 50 percent of the bites occurring on the dog owner’s property, the issue is a major source of concern for insurers.

Over the years, many states have passed laws with stiff penalties for owners of dogs that cause serious injuries or deaths. In about one-third of states, owners are “strictly liable” for their dogs’ behavior, while in the rest of the country they are liable only if they knew or should have known their dogs had a propensity to bite (known as the “one free bite” principle).

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Pet Insurance: Companies Growl At Certain Dog Breeds

Rottweilers, Akitas, Dobermans — some are more likely to bite, but fans of those breeds say insurers are breed profiling

Those doe-eyed, tail-wagging pooches waiting for new homes may be as loyal as any dog lover could want. But anyone planning to adopt or purchase a dog should beware: Fido or Fifi could be a killer when it comes to homeowner liability insurance.

Based on the dog-bite claims they see, insurers feel that some breeds are a poor risk. It’s a trend that began about 10 years ago, at around the same time as statistics were released showing that pit bulls, Rottweilers and German shepherds were responsible for more than half the dog bite fatalities in the U.S. over a 19-year period. Despite opposition from consumers, many insurance companies still maintain a will-not-cover breed blacklist. The list varies from company to company, according to Loraine Lacey, president of Independent Insurance Agents and Brokers of Orange County, depending on each company’s experience.

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Dog Bite Liability

Most dogs are friendly, loving members of the family, but even normally docile dogs may bite when they are frightened or when protecting their puppies, owners or food.

According to the Centers for Disease Control and Prevention (CDC), more than 4.7 million people are bitten by dogs annually, resulting in an estimated 800,000 injuries that require medical attention. More than 50 percent of dog bites occur on the dog owner’s property, and they account for one-third of all homeowners insurance liability claims.
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Allergies To Pets

Learn to live with your pet in harmony, even if you’re allergic to them

The benefits of having a pet usually outweigh the drawbacks of pet allergies for many people. You’d be surprised to know how many people, with non-life-threatening allergies, live with pets despite having allergies to them!

It’s not you, it’s me

Any and all cats and dogs may cause reactions for people who are allergic to animals. Cats tend to cause more reactions than dogs for allergic people, although some people are more sensitive to dogs than cats. Contrary to popular belief, there are no “non-allergenic” breeds of dogs or cats; even hairless breeds may cause symptoms.

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Quick Links

American Humane: Protecting Animals

Adoption & Pet Care

What Kind of Pet is Right for You?

As part of the health care reform law, health insurance companies must remove lifetime and annual dollar limits on covered services (in network and out of network) that the U.S. Department of Health and Human Services (HHS) considers “essential health benefits.” This change goes into effect September 23, 2010, although certain annual limits can be removed in phases over the next four years.

HHS has not given us the final definition of “essential health benefits” yet, but based on the information and examples it has released, as well as our own research of current state and federal mandates, we have come up with a list of approximately 26 services we believe will be affected. There may be variations in certain states. The services still may be subject to copays and other cost shares.

This provision of the health care reform law also restricts annual or lifetime dollar limits at the plan level except transitional annual dollar limits as defined in the legislation.

A waiver program will be available for certain types of plans like mini-med and limited benefit plans so they can retain annual plan limits. We are waiting for more information on this program from HHS.

Administrative services only (ASO) plans also are required to comply with the health care reform law lifetime and annual limits provision for plan years that start on or after September 23, 2010. We will provide guidance to ASO clients, but the final decision on how they choose to comply is theirs.

We all love our pets.  Ok, if we have pets, we love them.  Ok, most of the time.   What do you thin about Pet Insurance?  Should we offer it? Leave a comment here and let us know if we should get you the best deals on insurance for your pet too!

- Karl

Lots of stories on Friday the 13th.   I like to try to stay a bit more on the level headed side, and not think much about it.  However, here are a few tips to try to keep you safe today, on Friday, the 13th day of August, 2010.

1. Eat Healthy
2. Exercise
3. Look both ways before crossing the street
4. Take a minute to stop and smell the roses
5. Count your blessings

Ok, you got me.  These are good things to do any day of the week, or month or year!  Have a great Friday!

- Karl

PS – I’ve never seen one of these movies!

Karl Susman, owner

Susman Insurance Agency

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What Are The Principal Types Of Life Insurance?

There are two major types of life insurance-term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life.

Life insurance products for groups are different from life insurance sold to individuals. The information below focuses on life insurance sold to individuals.

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How Should I Choose What Type Of Life Insurance To Buy?

You should consider term life insurance if:

You should consider permanent life insurance if:

With the unemployment rate topping 8.5 percent, and with more layoffs and job cuts still expected, many households are forced to create a strict budget, even as their debts continue to rise. People are definitely more worried than ever about their financial well-being, and, if they are also worried about the financial well-being of their family, they should invest in whole life insurance; a life insurance policy that pays their loved ones after their untimely death, with some added benefits.

Even if you are retired or feel strongly that your income stream is safe, you might want to consider in these times of volatile stock and bond markets some stable long-term savings options found in many insurance plans. Here’s why:

A whole life policy can act as a buffer against estate taxes and probate costs and provides a death benefit along with a living cash benefit-a unique feature. In addition, a whole life policy allows someone at the time of retirement to remain insured while spending the other assets they’ve accumulated or pursuing a more aggressive investment strategy for those assets.

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Do I Need Separate Rental Car Insurance?

Properly insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes-either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.

Before renting a car, the I.I.I. suggests that you make two phone calls-one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.

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Should You Pay For Rent-a-Car Insurance?

Ever feel pressured to pay for insurance when you rent a car? Experts say you may already be covered by your existing insurance policy or major credit card. You might already be covered, experts say, so do your homework

Q: Does it make sense to purchase insurance when I rent a car, or am I already covered?

A: With so many options at the car rental counter, it may be tempting to buy whatever insurance protection is available to safeguard your trip. But many travelers don’t realize they’re more than likely duplicating coverage they already have. Not only does a driver’s insurance policy protect against theft or damages to a rental vehicle, but often so does a major credit card used to pay the rental fee.

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Car Rental Travel Tip Video

Should You Say Yes To Rental Car Insurance? It Depends

Frequent business traveler James Smith says he’s saved “tons of money” during the past 30 years declining car rental companies’ optional insurance coverage. But, he acknowledges, it could have come in handy at times.

Smith, an economist in Asheville, N.C., has paid $1,100 for damages to three rental cars in the past five years. Last year, a valet damaged his rental car in Maui, and his parked rental car was scraped in Buford, Ga. In 2002, he backed a car into a rock in Ireland.

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Quick Links

Europe for Visitors: Rental Car Insurance

Do you really need car rental insurance?