October 4, 2010

Letter to the Editor
The Wall Street Journal
1211 Avenue of the Americas
New York, NY, 10036

The Complete Picture

Shift to Wealthier Clientele Puts Life Insurers in a Bind (Oct. 4, 2010) It is true, wealthier Americans spend more on life insurance than middle-income Americans – they generally need more coverage and therefore pay higher premiums. Many experts recommend buying enough life insurance to cover six times salary so the family can meet its financial obligations if the primary wage-earner dies. Clearly – larger policies will be bought more often by more affluent households.

But this doesn’t provide the complete picture. When LIMRA releases its sales results, we always give two metrics: premium and policy count. The reason we share both is because each is very important to get a complete picture of the life insurance market.
Let’s take a look at what happens when you look at policy count.

The majority of existing permanent policies are owned by middle-market consumers. The affluent (household income of $100,000 or more) own just 27 percent of existing permanent life insurance policies while 73 percent of the existing permanent policies are helping average Americans. Those earning $25,000 to $99,000 comprise 55 percent of the population, but own almost 60 percent of existing permanent policies.

If you look at new sales by policy count, consumers earning under $100,000 represent 72 percent of newly purchased permanent life insurance policies. So by this measure, it is truly middle America who are buying permanent and benefiting from it.

Recent LIMRA research found that 30 percent of U.S. households do not own any form of life insurance—a 50-year low. We also know that 75 percent of households have less than a month’s savings. What will these families do if their primary wage-earner died unexpectedly?

This is not the time to make buying life insurance less attractive. Collectively, we should be finding more ways to encourage consumers to get the coverage they need.

Finally, as researchers we know that it is critical to look at all the data before making conclusions. We encourage others to do the same.



Robert A Kerzner,
President and CEO of LIMRA, LOMA and LL Global
Windsor, Connecticut

Precious cargo on board

If you have children, you know how important it is that they're secured when you're driving with them. But did you know incorrect usage of a car seat is common — and that even a minor mistake in usage can cause serious injury?1 Here are some tips that may help you use your child's car seat correctly:

Never put an infant in the front seat of a vehicle with a passenger air bag — even if you think it’s been disabled.
Route harness straps in lower slots at or below shoulder level.
Keep harness straps snug and fasten the clip at armpit level.
Make sure the straps lie flat and aren’t twisted.
Dress your baby in clothes that allow the straps to go between the legs. Adjust the straps to allow for the thickness of your child’s clothes. Don’t use bulky clothes that could increase slack.
To keep your newborn from slouching, pad the sides of the seat and between the child’s legs with rolled up diapers or blankets.
When in the car, put the car seat carrying handle down.
For the best neck protection, infants should ride in the backseat facing the rear of the vehicle until at least 1 year of age and 20 pounds. Then they can ride in forward-facing child car seats (still in the backseat). Recline the rear-facing seat to a 45-degree angle. If your child’s head flops forward, the seat may not be reclined enough. Tilt the seat back until it is level by wedging firm padding, such as a rolled towel, under the front of the base of the seat.

To keep the car seat from being thrown forward in a crash, all new seats are required to be equipped with top tether straps — a belt that’s attached to the car seat and bolted to the window ledge or the floor of the car. Tether kits are also available for most older car seats — check with the manufacturer.

For more information about infant or toddler car seats, go to the Web site of the Insurance Institute for Highway Safety. Also check out the National SafeKids Campaign which offers a free Child Car Seat Locator. Enter your child’s age and weight, and you can view a list of recommended car seats.

Is your child ready for a regular seat belt?
Children should be in an appropriate car seat or booster seat until they’re about 8 years old, unless they are already 4 feet and 9 inches or taller.2 After that, they should be properly seated with a lap and shoulder belt. Children age 12 and under should remain in the rear seat. All passengers should wear lap AND shoulder belts at all times. Laws can vary by state and municipality. See the IIHS List of State Laws for Vehicle Restraints or the Inventive Parent Car Seat Laws page.

Secure your precious cargo
Motor vehicle crashes are the number one killer of children from ages 1 to 14 and many of these deaths involve children that are unrestrained.3 Many are also avoidable with the proper use of the proper car seat. Give me a call: I can give you more information so that you can secure your precious cargo and enjoy your travels.

1Source: http://www.iii.org/Articles/Child-Safety-Seats.html
2Source: http://www.car-safety.org/faq.html#Q3
3Source: http://www.car-safety.org/faq.html#Q1

Seeking CUSTOMER SERVICE REPRESENTATIVE (CSR) - SPANISH SPEAKING

Customer Service Representatives work for Farmers agents as customer service and/or administrative professionals. Responsibilities typically include office management, customer policy support (in-office and telephone), and sales support activities. Some inside sales.

By obtaining the proper licensing, customer service reps may also sell insurance products within the agent’s office. If you are bilingual, you may also qualify for other financial incentives.

Requirements:

Minimum qualifications, usually preferred by a district manager include:

• Excellent written and oral communication skills - Must be Bi Lingual (Spanish)
• Customer service oriented
• Good computer skills and proficient with Word, Excel and PowerPoint
• Excellent organizational skills
• Highly motivated entrepreneur
• High School Diploma
• Good credit history (Insurance license a plus)

Location: E TC Jester and N Loop 610 (77018) - Must be within your commuting radius
Compensation: Hourly plus commission/bonus

Do you have an umbrella?

Ah, the joys of home. So many comforts — and so many risks. The dog, the teenage driver, the pool, the house parties, the monster tree that overhangs your neighbor's yard — any of these could be the stuff from which lawsuits arise. And many homeowners and auto insurance policies may not offer enough coverage for major personal-liability claims. What would you do if you accidentally caused damage or injuries which went beyond the coverage limits of your homeowners or auto insurance? What would you do if you found yourself on the wrong end of a multi-million dollar lawsuit? Naturally, most people don't expect the unthinkable to happen — but sometimes it does.

Caveat: Don’t assume that your homeowners insurance provides adequate coverage in the event you’re sued for your negligence which results in injury or damages.

The Personal Liability policy
Umbrella policies, as they are also known, supplement the liability coverage you already have which is provided by your underlying homeowners and auto insurance, and provide an extra layer of coverage up to the limits you purchase. Of equal importance, an Umbrella policy extends liability coverage to encompass certain coverage gaps left by exclusions on the basic underlying policies.

You may want to consider purchasing a Personal Umbrella policy if any of the following apply:

Your total assets exceed your underlying liability limits.
You have assets over $1 million, including property and vehicles.
You have the potential to have assets over $1 million in the future.
You earn or have the potential to earn significant income.
You are financially responsible for a young or inexperienced driver.
You frequently carpool young children.
You own or operate an aircraft or boat.
You own a swimming pool, trampoline or dog.
You own waterfront property, a farm or ranch.
You employ one or more people in your home.
You want to make sure your current assets and future earnings are protected.

Life is uncertain: Plan for it
You probably work very hard for the things you own — don’t forget to protect them. You never know when the unexpected can ruin not just your day but also your well-laid financial plans for the future. Make sure you’re prepared — don’t forget your umbrella. Call me for more information.

Hispanic Heritage Month Celebrated

Farmers Agent David Lorms donated Lesson Plans and educational DVDs to Oak Forest Elementary School, Black Middle School and Lu Lu Stevens Elementary School to help celebrate and learn more about Hispanic Heritage Month, running through October 19th. Pictured with Lorms is Lu Lu Stevens Principal, Lucy Anderson.

National Flood Insurance Program extension approved

WASHINGTON—The House of Representatives Thursday on a voice vote gave final approval to legislation to extend the National Flood Insurance Program for one year through Sept. 30, 2011.
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The Senate approved the measure, S. 3814, this week.

Without congressional action, the NFIP, which has been temporarily extended several times during the past year, would have expired Sept. 30.

“A long-term extension of the NFIP has been the goal of the insurance industry all year, and we’re pleased that it now heads to the president for his signature,” an American Insurance Assn. spokesman in Washington said in statement.

President Barack Obama is expected to sign the measure shortly.

I'm single. Do I need life insurance?

Question: I'm single. Do I need life insurance?
Answer: It depends


Single people often think they don't need life insurance and they're often right. But there are many factors to consider beyond marital status when deciding whether you want life insurance. Answer the following questions and see where you stand:

Do you have any dependents? If you have children, or provide support for a parent or grandparent, your death could create a serious financial hardship for these dependents. Life insurance can help provide a continued stream of income for your loved ones if you die prematurely.
Do you have a mortgage or loans held jointly with a cosigner? If so, your death would leave the cosigner responsible for the entire debt. You might want to consider purchasing life insurance to help cover these debts in the event of your death. If you have other personal debts, your creditors can make a claim for payment against any assets in your estate.
Are you at risk for any serious medical conditions? For example, if your family medical history includes certain genetic conditions, such as diabetes or certain types of cancer, you may want to consider purchasing life insurance while you’re young and healthy. Should you develop such a condition, purchasing life insurance later could be difficult, or even impossible.
If you died tomorrow, who would pay for your final expenses? For many families, even a relatively simple funeral can create a major financial burden. Life insurance can help offset these expenses.

Give me a call. We can discuss your individual situation so that you can decide if life insurance is appropriate for you. And if you feel it’s not necessary at this time, we can review your other insurance policies so you can be sure you have the coverage you want.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island