Making good insurance decisions

We’ve moved!

Chris Haines — Wed, 22 Jun 2011 18:24:49 +0000

Or at least our blog has. The blog is now integrated into our main website, still using WordPress.

Direct to the blog: www.albionagencies.com/learning-center/blog

Please visit our updated website!

Cosigning student loans – do you need protection?

Chris Haines — Thu, 09 Jun 2011 20:35:14 +0000

I wish I could take credit for this, but this idea came up in a conversation between one of my staff members and a client…

Have you cosigned a student or other loan for one of your children, or do you plan to? Would you be stuck with a really large debt if something happened to your child?

The case we’re working on involves parents who are about to cosign student loans for their daughter that will likely come to over $150,000. They’ve decided to look into life insurance covering their daughter so that they will be able to pay the loans in full in the event of an untimely death.

There are other advantages too. The daughter will be able to continue the life insurance if she chooses to, even if she develops a medical condition later on. And because we are insuring an 18-year-old, the rates are very low.

If you are in a similar situation, then we should talk. Just give me a call at 589-4477.

We offer insurance products through Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001, and other companies.

Drop by www.albionagencies.com or get in touch with me or Mike Pilon for more information on retirement and life insurance solutions for you and your family.

Albion Agencies, Inc. is a licensed insurance agent/broker only in the State of New York.

The information in this post is general in nature, and geared toward insurance conditions in Western New York. As always, you should speak with an insurance adviser to determine your specific insurance needs.

Insurance that fits your life.

Chris Haines — Thu, 02 Jun 2011 14:05:48 +0000

Life insurance needs vary greatly from one family to another. To ensure that you have the right coverage, you should consider the amount of coverage, the type of life insurance, and the company that insures you.

How much coverage do you need? The amount of coverage you need depends on a number of factors specific to your family: number of dependents, other assets, mortgage and other debts, benefits through work, etc. We can help you determine the appropriate amount of coverage for you and your family.

What type of life insurance is appropriate? The two main types we offer are whole life insurance and term life insurance. Whole life provides coverage throughout your lifetime, and also builds cash value that can be used as a financial safety net. Term life allows you to purchase high limits at a low cost, but the coverage has no cash value and ends after the fixed term. We often recommend a blend: whole life for a permanent insurance base, and term life to provide higher limits while you have dependents

Which insurance company is best? For life insurance, you need a financially sound company that will be there decades after you take out your coverage. We are proud to represent Massachusetts Mutual Life Insurance Company (MassMutual), which we highly recommend to meet the long-term needs of our clients.

If you would like more information, just call us and ask for our free guide, “Guaranteed to fit your life.”

We offer insurance products through Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001, and other companies.

Drop by www.albionagencies.com or get in touch with me or Mike Pilon for more information on retirement and life insurance solutions for you and your family.

Albion Agencies, Inc. is a licensed insurance agent/broker only in the State of New York.

Conservative Savings… Or Lifetime Retirement Income?

Chris Haines — Wed, 25 May 2011 14:42:56 +0000

Provided by Albion Agencies, Inc., which represents Massachusetts Mutual Life Insurance Company (MassMutual) and other companies, courtesy of MassMutual

If you are approaching retirement, a key element of your retirement strategy may involve choosing the best way to secure a predictable source of retirement income; one that’s guaranteed to be there when you need it, for as long as you need it. As you explore ways to achieve your income goals, you may have considered a variety of conservative financial vehicles designed to protect your retirement nest egg, such as bank savings and money market accounts, certificates of deposit (CDs) or deferred fixed annuities.

Each of these investment vehicles is considered a conservative choice and each offers unique advantages. But only the deferred fixed annuity is specifically designed to provide guaranteed retirement income for your lifetime.*

All conservative accumulation products are not created equal

Let’s start with a few basics.

A deferred fixed annuity is conservative retirement vehicle that is designed to help you accumulate and protect your assets until you are ready to receive them as guaranteed income during retirement. Most deferred fixed annuities allow you to choose whether to receive guaranteed income for a specific period of time, or for your lifetime. Earnings accrue tax deferred until they are withdrawn, allowing your contract value to take full advantage of the impact of compounding interest. Once the annuity benefit is paid, the portion attributable to earnings is taxed.

Certificates of deposit are designed to be a savings vehicle, a conservative way to save and preserve assets when your investment horizon (the amount of time you expect assets to be invested) is relatively short. An example might be saving money for a down payment on a house. CDs typically are short-term vehicles and may not be as efficient at meeting long-term retirement needs. Although the interest from a CD can be used as income, it’s generally necessary to hold the CD until it reaches maturity before you can withdraw the funds without penalty. What’s more, any earned interest is taxable for the current year on an annual basis.

Insured vs. guaranteed – what’s the difference?

Both fixed annuities and CDs are considered low-risk financial vehicles because they guarantee a positive rate of return. However, these guarantees work in different ways:

• CDs are generally backed by banks and are insured for up to $250,000 for each depositor by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
• Fixed annuities are guaranteed by the issuing insurance companies, with no maximum. They are not FDIC insured. Be sure to ask your financial professional about an insurance company’s ratings and financial strength if you plan to purchase an annuity, because payment of lifetime income is contingent upon the claims-paying ability of the issuing company or companies.

What if you need some of your money before you retire?

Many fixed annuities allow the contract owner to withdraw a certain percentage of the contract value (typically up to 10% on an annual basis or accumulated interest) without incurring any surrender charges, although tax penalties may apply. Amounts withdrawn in excess of the specified percentage are often subject to surrender charges or adjustments. These charges generally decline each year and expire at the end of a specified number of years. If withdrawals are taken prior to age 59 ½, a 10% federal income tax penalty may apply. Although some CDs may include interest withdrawal provisions, investors generally must wait until the CD matures to avoid early withdrawal charges.

Ask a trusted financial professional

Remember, not every conservative savings vehicle is the same. Fixed annuities offer many of the same features that make other conservative products so popular. In addition, fixed annuities offer other unique advantages that may be beneficial to you. Your financial professional can help you to choose the vehicle that best meets your retirement income objectives and investment needs.

* Guarantees and payment of lifetime income are based on the claims paying ability of the issuing company.

Annuity products are issued by Massachusetts Mutual Life Insurance Company, Springfield, MA and its subsidiary, C.M. Life Insurance Company, Enfield, CT.

Drop by www.albionagencies.com or get in touch with me or Mike Pilon for more information on retirement and life insurance solutions for you and your family.

Albion Agencies, Inc. is a licensed insurance agent/broker only in the State of New York.

Retirement Success Driven By Series of Good Decisions

Chris Haines — Wed, 18 May 2011 13:52:02 +0000

Provided by Albion Agencies, Inc., which represents Massachusetts Mutual Life Insurance Company (MassMutual) and other companies, courtesy of MassMutual

What is the sign of a good decision?

It’s working with those who can help build your retirement plan – and confidence.

When planning for retirement, we all face similar questions. But each of our answers will be as unique as we are – based on where we are now and where we want to be later. Reaching those goals will require making a series of good decisions about what’s right for you in these key areas:

Income – How will you create income for life? How much of your income should you guarantee? What about inflation?

Liquidity – Will you have access to money as you need it?

Over the 20 to 30-plus years your retirement will span, no doubt there will be unexpected challenges – and opportunities – along the way. You’ll need assets readily available to handle the unexpected and still maintain your lifestyle.

Long Term Care – What will you do if you or a loved one can no longer live independently because of a chronic, long-term condition? Thanks to medical advances, people are living longer than ever in history. Plan now to help ensure your lifestyle isn’t jeopardized by long term care costs.

Legacy – What legacy will you leave?

For many, the thought of living well includes leaving behind a legacy of financial security. If this is important to you, you’ll also want to explore how to establish a sound estate plan. Fortunately, you don’t have to make these decisions on your own. Take the most important next step now: Contact your financial professional. The sooner you do, the more confidently you can look ahead towards a rewarding retirement.

Insurance products issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111, and its subsidiaries.

Drop by www.albionagencies.com or get in touch with me or Mike Pilon for more information on retirement and life insurance solutions for you and your family.

Albion Agencies, Inc. is a licensed insurance agent/broker only in the State of New York.

We have a new addition to the family!

Chris Haines — Tue, 10 May 2011 15:56:22 +0000

I am pleased to announce the addition of MassMutual Financial Group to our family of insurance companies.

We have been looking for years for a quality life insurance company to complement the auto, home, and business insurance carriers that we represent. The top life insurance companies have traditionally worked through exclusive sales representatives rather than independent agents.That’s changing, and we’ve taken advantage of the opportunity to add what we consider to be the leader in permanent life insurance and related financial products.

Through MassMutual, we will be offering financial services, specializing in family protection and retirement planning. MassMutual’s products include:

Whole-Life Insurance
Term Insurance
Long Term Care Insurance
Disability Insurance
Deferred Annuities
Immediate Annuities

More to follow on our new products and services…

Insurance products issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111, and its subsidiaries.

Drop by www.albionagencies.com or get in touch with me or Mike Pilon for more information on life insurance solutions for you and your family.

Life changes…has your insurance kept pace?

Chris Haines — Thu, 21 Apr 2011 19:20:42 +0000

Have you had any major life changes recently? If you answer “yes” to any of the following questions, it’s a good time to get together with your insurance agent to review your coverages and needs.

Have you recently married or divorced? If you’re merging or separating households, you’ll need to update your auto, homeowners and life insurance. Multiple cars in a household can mean added discounts.

Have you had a baby? This is an important time to review your life insurance coverages to plan for your dependents.

Have you switched jobs or experienced a significant salary change? This is a good time to review your life insurance needs. If you had life insurance through your previous employer, you may need to replace lost coverage.

Have you done extensive renovations on your home? If you’ve added or renovated a room, you risk being underinsured if you’ve not discussed those changes with your insurance agent.

Have you decided to buy a retirement or vacation home? Research the availability and cost of insurance before you commit. Waterfront property or a mountain retreat have risks associated that can make insurance costly and difficult to obtain.

Have you acquired any new valuables—jewelry, electronic equipment, fine art, antiques? A standard homeowners policy may limit coverage for these items. Consider supplementing your policy with a floater or endorsement.

Are you approaching retirement? You may get a lower rate on your auto insurance. It’s also time to see if your life insurance needs have decreased. If you haven’t considered long-term care insurance, you should see if it’s right for you.

Related links:

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

Your Home’s Value—When It Comes to Insurance

Chris Haines — Wed, 30 Mar 2011 13:36:43 +0000

We often hear questions such as, “Why would I want to insure my house for $240,000 if it’s only worth $120,000, according to my property taxes?” The reason is that when you buy homeowners insurance you’re not insuring the market value of your home. You’re protecting yourself against financial loss if catastrophe would occur. Would it cost more than $120,000 to rebuild your home from scratch? The answer is usually yes.

That’s why it’s important to insure your home at the level it would cost to replace it—not its market value. Although it might seem like you’d save money if you insured your home for its market value, you could end up worse financially if disaster hits.

It might seem strange to think about. People are inclined to think in terms of value—how much is your car worth? How much did you spend on that coat? But when it comes to insuring your home, the current market value isn’t necessarily the most important aspect. Keeping yourself protected from financial disaster is.

As an Erie Insurance agency, we help figure out what coverage is right for you, depending on certain variables including location and recent improvements you’ve made to your home.

ERIE^® insurance services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). Not all companies are licensed or operate in all states. Not all products are offered in all states. Go to erieinsurance.com for company licensure and territory information.

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

Have you looked into long-term care insurance?

Chris Haines — Wed, 23 Mar 2011 15:34:31 +0000

It’s never too early to get some information on long-term care insurance, either for you or your parents. If you are over age 50, you really need to take the time to check it out and see if it’s right for your situation.

There are several advantages to buying Long-Term Care Insurance as early as possible.

First, you get valuable coverage right away. A serious accident or debilitating illness can strike at any age. 40% of people who need long-term care are between the ages of 18 and 64.[1]

Second, you are more likely to qualify for preferred rates, and avoid the risk of developing a condition that would make you uninsurable later. Your premiums are based on your age and health when you apply.

Finally, you will save substantially. Not only will you get better rates when you are young and healthy, but your overall costs will be substantially lower too.

Even if you remain healthy, putting off buying coverage will typically result in a cost increase of 8-10% per year. There are two factors that cause the premium increase: your age at purchase and the higher benefit you need because nursing home costs are rising at about 5% per year. Once you buy coverage, your premiums are projected to remain unchanged, and your benefit rises automatically if you purchase coverage with inflation protection.

Have questions? We have a Free Guide to Long-Term Care Insurance in Western New York; just send me an email for your free copy (chris@albionagencies.net)

What is long-term care insurance?

Who pays for long-term care?

New York State Partnership for Long-Term Care

[1]America’s Health Insurance Plans, “A Guide to Long-Term Care Insurance,” 2004

What’s your “insurance score”?

Chris Haines — Thu, 10 Mar 2011 16:04:06 +0000

Just like your credit score affects your cost of borrowing, your insurance score affects your insurance costs.

Most insurance companies are now using insurance scores as a major factor in determining rates for auto and sometimes home insurance. The formulas, which vary by company, use information from your credit history to establish an insurance score for you. Based on this score, you are assigned to a tier or rating group. The overall effect can be huge, with those in the worst tiers paying 2, 3, or even 4 times the premium that those in the best tiers pay.

Insurance scores are different than credit scores. Insurance scores use only those factors from your credit history that show a direct correlation to future claim potential. These factors typically include payment history, number and age of accounts, and overall activity. Insurance scores generally do not consider income, assets, or total debt.

Related: Improving your insurance Score

For more information, drop by our website at www.albionagencies.com, or get in touch with me.