How do I pick a life insurance company?

March 6, 2021

The annuity business, like the insurance industry itself, is very competitive. There are hundreds of insurers and many different types of products available to you. Before buying an annuity, contact your state insurance department to see whether it offers an annuity buyers guide for your state.

There are four important things to consider:

Financial Solidity – Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.
State insurance department license to do business Make sure that the insurer you select is licensed to issue annuities in your state. Ask whether the specific type of annuity you are considering is available in your state.
Service Expect excellent customer service. Your insurance company representative should answer your questions promptly and provide useful information that addresses your concerns. This way, you can make a well-informed decision on the annuity that best meets your needs and objectives.
Choice of investments and riders Some insurers offer annuities with an array of investment choices and a large variety of riders. Compare these options. Some options may increase the price of the annuity. Decide on an annuity that best meets your needs.

Like it? Share it with your friends!

Art auction fetches $922 million for high-profile divorce settlement

More than three years after the high-profile divorce proceedings of New York real estate developer Harry Macklowe and his wife, Linda, their art collection has become the most expensive to ever sell at auction, raking in $922.2 million over the course of two different sales. An initial batch of 35 artworks went under the hammer last November, including pieces by Pablo Picasso, Andy Warhol, and Cy Twombly. A work by abstract painter Mark Rothko fetched $82.5 million while Jackson Pollock’s “Number 17, 1951” sold for over $61 million to set a new record for the artist’s work. On Monday evening, the final 30 works sold for a combined $246.1 million, with works by Jeff Koons, Gerhard Richter, Willem de Kooning, and Agnes Martin. Highlights included another untitled painting by Rothko, which sold for $48 million, and a self-portrait by Warhol that fetched $18.7 million. By the end of the night, it was a “white glove sale,” meaning every work had been sold. Cy Twombly’s untitled work from 2007 sold for almost $59 million in the first auction. Credit: Courtesy of Sotheby’s “It’s a collection that has never been moved (or) touched,” said Grégoire Billault, chairman of contemporary art for Sotheby’s, at a press event announcing the two-part auction last September. “Quite often, when we have collections for sale, a lot of it has been sold already, or some (works) are given to museums; others are given to members of the family.” The Macklowe collection soared past the previous record for the highest value of a single art collection — the Peggy and David Rockefeller Collection, which reached a total of $835.1 million at Christie’s in 2018. The Macklowes married in their early 20s in 1959 and had since accrued all of their significant assets together, including a $72 million apartment, a yacht, and multiple commercial properties, according to court documents. They started their art collection shortly after they married. In 2018, during their divorce proceedings, a New York State Supreme Court judge ordered the Macklowes to sell 65 artworks from their collection and split the profits, after the couple’s hired experts provided vastly different appraisals of what some of the artworks were worth. Valuations for Alberto Giacometti’s existential sculpture “La Nez,” for instance, varied by $30 million. The court decision set off a battle between auction houses Sotheby’s, Christie’s, and Phillips to bring the collection to market; the appointed art dealer, Michael Findlay, delayed the decision in 2020 due to the pandemic, according to Artnet. The Giacometti sculpture eventually sold for over $78 million, the second-highest price achieved in the first part of the auction. Elsewhere, Warhol’s “Nine Marilyns” — one of the Pop artist’s famed serial screen prints of Marilyn Monroe — had fetched over $47 million and a Picasso sculpture honoring French poet Apollinaire made over $26 million. At a virtual press event announcing the sale in September, Sotheby’s CEO Charles Stewart had called the Macklowe Collection “one of the most significant and museum-quality collections of modern and contemporary art ever to come to market.” And what he predicted came true. He added: “This sale will… make history as one of the defining moments in the art market.” Read more at cnn.com
>>Read more
How to save money on life insurance

Buying the wrong benefits for a low premium does not add up to savings There are ways to save money when buying life insurance, but they don’t always entail paying a lower premium immediately. As your top priority, look for a policy that meets your needs. Buying the wrong benefits for a low premium is a waste, not a saving. Beyond that, here are some ways to maximize your life insurance dollars. Before you buy Once you’ve determined what type of life insurance product to buy: Focus on financially sound companies. Dozens of companies sell life insurance. Limit yourself to companies with high ratings from two or more independent rating agencies. A low premium from a shaky company isn’t a good buy. See How do I choose a life insurance company? for more details. Shop around to get a sense of the premium you’re likely to pay. Quote services on the Internet may serve this purpose, or you can ask an agent or broker to get you a premium estimate. As part of this research, determine which rate class you’ll fit into. Most companies that sell individual life insurance have several different price classes—usually called “preferred (non-tobacco),” “standard (non-tobacco),” “preferred (tobacco),” and “standard (tobacco).” A small percentage of people have health conditions or histories that disqualify them for even “standard” rates. Many in this group will be offered insurance at “impaired risk” or “nonstandard” rates. Look into group insurance. Consider participating in your employer-sponsored life insurance program, even if you have to contribute to it financially. Employers often subsidize their group insurance costs, so it can be less expensive than individual life insurance. You might obtain coverage up to a certain level without providing evidence of good health, an advantage for some people. You’ll probably pay premiums through payroll deduction, which can be a nice convenience. However, make sure to compare group and individual rates, as depending on your age and health status, group insurance may or may not provide a savings. In comparing group to individual life insurance, remember that if you have over $50,000 of group life insurance, IRS tables determine how much it costs to provide the amount over $50,000 and charges you taxable income for that cost. Take care of yourself. Find out into which rate class you’ll be grouped and, if necessary, consider making some lifestyle changes—don’t smoke, maintain a healthy weight and exercise regularly—to qualify for a more favorable rate class. When you’re ready to buy Shop around to get a good rate. Life insurance is a very competitive business, and you’ll find differences of hundreds of dollars (for annual premiums) even among financially strong companies for essentially the same policy. Consider the net cost index. How can you compare two policies, one with premiums that start lower than the other but later are higher than the other? Or one with low premiums and a low cash value, the other with higher premiums and a higher cash value? Use a net cost index—a standard method for collapsing these variables into one number. The lower the number, the better, but ignore small differences (since the indexes are approximations based on assumptions, small differences might not signal true differences in values). The agent or broker with whom you’re dealing, or the company from which you’re considering buying a policy, will provide these index numbers. Be aware of premium discounts for particular amounts of insurance. Most companies offer rate discounts for specified insurance amounts. For example, you might actually pay a smaller premium for $250,000 of life insurance than for $200,000, or for $500,000 of life insurance than for $450,000, because a discount “kicks in” at the higher insurance amount. Beware of “fractional premiums”. Typically, you can pay your life insurance premium once a year, once every half-year, once a quarter, or once a month. Although paying quarterly or monthly might seem to be easier to fit into your budget, some companies levy high charges for paying premiums frequently. Others levy quite small charges to do this. If a company levies high charges for paying more frequently, try budgeting so that you can pay your premium only once or twice a year. If you’re buying a term policy, look for renewal guarantees. A renewal guarantee gives you the right to start a new term after the current one ends, paying a higher premium based on your current age, but without requiring you to undergo a new health exam or submit any other “evidence of insurability.” Without the guarantee, you’d have to shop for life insurance all over again, and if your health has deteriorated, you might have to pay much more or not get it at all.
>>Read more
What kids are telling us about their pandemic lives

As more children get to head back to in-person school after a year of virtual learning, they bring with them the lessons learned from a year of living under the threat of a once-in-a-century virus. Our kids have learned a lot during the pandemic. Many have gotten closer to their siblings and others fought more with them; they have loved spending more time with their parents at home and gotten sick of only having their families to talk to — just like adults. Some of these parents have cancer. Others are first responders or live with lupus or other health conditions. In quarantine, these children have worried about losing their parents to the pandemic. These kids have seen if their communities mask up and practice social distancing — and if those communities want to keep them safe — or not. “As a mom, I’ve seen firsthand how hard this past year can be for kids,” photographer Kate T. Parker told CNN. “My own two struggled, fought, learned and grew like so many others. It is hard to find an area of their lives unaffected by this pandemic. I was curious to hear from them, in their own words, exactly what they thought about life during quarantine. “Due to Covid-19, we’ve been forced to create smaller, safer worlds for ourselves. I was so thankful for this project to push out of our own bubble to safely see how other families and kids are experiencing this virus and the ensuing change of life,” she said. “Kids are overwhelmingly resilient. I remain in awe of their perspective and think Kaitlin really summed up the general response of the kids: ‘I learned a lot this last year,’ she told me. ‘Follow your dreams, and do it now. … Don’t wait, because you never know when you won’t have a chance.'” Here’s what several children told Parker about their lives during the pandemic. Kaitlin, 12: I have asthma. I’ve had it since I was a baby, so we had to be pretty strict in quarantine. It wasn’t all that bad, though. I learned how to skateboard and how to cook better. Also, because we had totally new routines, I formed a bond with people I might not have before Covid. I’ve gotten to know and make friends with people I might not have before this. I learned a lot this last year. Follow your dreams, and do it now. … Don’t wait, because you never know when you won’t have a chance. Abrianna, 13: When quarantine first started, I didn’t know what to do with myself. I was so busy before, running from school to dance practice to home. I realized I needed some hobbies. I started to learn how to do hair and make bracelets and put in extra work into my dance. And then two weeks turned into a month, and then we were out for the summer and now a year. I am actually happy to be virtual because my mom has lupus, and I don’t want to go to school then get sick, and then you pass that onto her and everybody else in the house. I did start to miss it some because it’s my last year before I graduate (from middle school), and I wanted to spend it there with my friends, but I’d rather be safe than sorry. Virtual is harder for sure, but I just focus on my work because if I do the work, I’ll have good grades, and it will make my parents proud. It can be lonely though, because sometimes, I’ll be honest, I don’t want to talk to my mom or I don’t want to talk to my dad. Sometimes I don’t even want to talk to my counselor at school. I’ve learned more this year about myself and about to not take things for granted — 2020 was a rough year, but I would rather say that it was a year that changed everything more than it was a bad year. Charlotte, 11: It was good and bad. The bad part was virtual school, which is really bad because it is annoying and boring. But the good part was I got to spend time with this little monkey (my sister). And I also learned how to finger knit and how to play soccer. So now my sister and I sit in bed together, listening to podcasts and finger knitting. I just wish everyone would wear masks and use hand sanitizer. Leela, 6: We moved to Atlanta in July, but before that we were in New Jersey. We had to stay in the house for five months straight and we couldn’t see my friends or my Nani or Grandpa. But, we did learn that we could slide down our front yard on cardboard boxes (in summer) and we made a fairy house in the basement. So, that was fun. Maddox, 7: Well, the pandemic has been hard for me. My dad is a doctor, so he couldn’t stay with us for three months at the beginning of the pandemic. It was just me and my brothers and my mom, he was trying to keep us all safe, especially me. I have leukemia, so we had to be really careful since I have to do chemo still. He’s back home now, which is good, and both my parents are now vaccinated. I also get to go to school in person, which is great. But, because of my cancer it’s not safe to go on the playground equipment. It’s hard when I see everyone having fun on the equipment. I have to stay on the ground. And just because I can’t go on the equipment, nobody plays tag with me. Like nobody ever tags me. But, my best friend Andrew is really nice to me. Yesterday I heard something on my mom’s phone, something that made me super happy. It said lots more people are getting the vaccine. I think that is good news. >>Read more
>>Read more
How to protect your home from water damage

Avoid soggy disasters with these tips Water damage is one of the most common and costliest disasters your home can experience, costing billions of dollars annually. Safeguard your most important asset against water damage with the right insurance coverage and the following practical advice. Water damage and insurance Different types of water damage are insured by different types of policies. Homeowners and renters insurance provides coverage for burst pipes, wind driven rain and damage resulting from ice dams on your roof. Generally speaking, water that comes from the top down—such as rainfall and burst sprinklers—is covered by a standard homeowners policy. Some policies cover sewer and drain backups, but many do not; however, you can purchase a sewer backup rider to your homeowners or renters coverage. Typically, water that comes from the bottom up—such as an overflowing river—is covered by a separate flood insurance policy, which can be purchased from the federal government’s National Flood Insurance Program (NFIP), and from some private insurers. If you live in a flood prone area, learn more about appropriate coverage. Properly maintaining a home is one of the best ways to prevent water damage from water disasters. Prevent basement water seepage Reseal your basement. Water in the basement is often caused by cracks in building foundations or floor slabs. If you notice water seepage after heavy rain when you’ve never had a problem, it may mean that your once-waterproof cement floors and basement walls have deteriorated. Painting vulnerable areas with water sealant can prevent seepage. Make sure water drains away from the building. Seepage is exacerbated by soil that has settled in a way to make water flow toward the building. After a storm, and especially if the ground is already saturated, rainwater that flows towards the building goes down the outside of the foundation wall potentially through any cracks. Install a backwater valve. Though less common than other causes of basement water, sewer backups are messy. Learn more about your sewer responsibilities and install and maintain a backwater valve, which allows sewage to go out, but not come back in. Maintain and understand your indoor plumbing systems Inspect appliance hoses and faucets. Make it a practice every year to check hoses leading to water heaters, dishwashers, washing machines and refrigerator icemakers. You may also want to invest in a water leak monitoring and shut-off system that can alert you to any leakage issues. Immediately replace any hoses that have cracks or leaks, and replace them all every five to seven years. Inspect showers and tubs. Check the seal and caulking around showers and tubs to make sure they are watertight and reseal if necessary. When away on vacation, shut off the water supply to the washing machine and never leave the house while the washer or dishwasher is running. Know the location of the main water shut-off valve in your home. A damaged hose or a burst pipe can send water racing into your home. Being able to locate and shut off the main water supply quickly will save stress, money and time. Install an emergency pressure release valve in your plumbing system. This will protect against the increased pressure caused by freezing pipes and can help prevent your pipes from bursting. Check plumbing and heating pipes. Look closely for cracks and leaks and have any necessary repairs made immediately. Repair and protect your home’s exterior Caulk and seal windows to guard against water seepage. Inspect your roof for missing, damaged and aging shingles and make necessary repairs. Check your downspouts. Remove debris that may have accumulated in downspouts and rain gutters. Position downspouts so that they direct water away from the house. Check sprinklers and irrigation systems to be sure they are not creating water damage to the walls and foundations of the house. Turn off and drain outside faucets to protect against frozen pipes. Install gutter guards to prevent gutter clogs and keep water flowing away from the house instead of accumulating on the roof. Protect your possessions Store off-season and other bulk belongings in waterproof bins, especially in areas where there are plumbing pipes or that are prone to dampness, such as basements and attics. Never store valuables or memorabilia where there is risk of destruction from water. Water and damp also brings with it the threat of mold damage. Keep belongings stored on shelving off the floor in basements. In case of water seepage or sewer backup, they’re less likely to get damaged. Keep an up-to-date home inventory. Having a comprehensive list of your possessions will save time, trouble and stress in case of loss from water damage.
>>Read more
How do I file a life insurance claim?

To begin the claims process: Get several copies of the death certificate. Call your insurance agent. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. (Don’t keep life insurance policies in your safe deposit box. In most states, safe deposit boxes are sealed temporarily upon the death of the owner, which can delay the settlement. ) If you don’t have an insurance agent, or don’t know who the deceased’s agent was, contact the company directly. Submit a certified copy of the death certificate from the funeral director with the policy claim. Once the claim is submitted, a settlement should be issued to you shortly. Once a life insurance claim is submitted, you must determine how the proceeds will be distributed. These are some of the options available: Lump sum—You receive the entire death benefit in a single amount. Specific income provision—The company pays you both principal and interest on a predetermined schedule. Life income option—You receive a guaranteed income for life. The amount of income depends on the death benefit, your gender and your age at the time of the insured’s death. Interest income option—The company holds the proceeds and pays you interest on them. The death benefit remains intact and goes to a secondary beneficiary upon your death.
>>Read more