Despite the fact that most American families have less to fall back on financially than when the economic downturn began, about 35 million U.S. households neither own their own life-insurance policies nor are covered under employer-sponsored plans, according to a study by LIMRA, an insurance industry research firm.

The Trends in Life Insurance Ownership study, conducted every six years by LIMRA, found that only 44 percent of U.S. households presently have individual life insurance. While the need to protect their families against the devastating threat of financial disaster is increasing, the number of U.S. households that have no life insurance whatsoever is growing. Today, 30 percent of households (35 million) have no life insurance coverage, compared to 22 percent of households in 2004. Among households with children under age 18, which arguably have the greatest need for life insurance, 11 million have no coverage.

“With so many families continuing to struggle financially, there has never been a more critical time for people to own an adequate amount of life insurance,” said Marvin H. Feldman, CLU, ChFC, president and CEO of the LIFE Foundation. “This study shows that Americans place great value on the need for protection and half of all families recognize that they need more life insurance than they have, and that’s good news. Now they need to take the next step, and get the coverage they lack before it’s too late.”

Families Don’t Know Where to Turn for Help

About one in four middle-market households admit they don’t know how to obtain or reach their financial goals, including buying life insurance. One of the biggest obstacles is lack of information. Almost eight in 10 U.S. households currently do not have a personal life insurance agent or broker to turn to and most of them say they never did.

Younger generations say they are interested in gathering information about life insurance online and at their place of work. To connect with up-to-the-minute information on life insurance policies and options, compare life insurance rates, or get answers to frequently asked questions  visit the Life Insurance Learning Center at Efinancial.com.

It’s time to hit the school books again for America’s youth. Only this September, there’s a tougher economics lesson on the chalk board: How to manage the tighter budgets of today’s chilly financial climate. Between pens and notebooks, backpacks and electronics and back-to-school clothing, the average family is expected to spend $606 per student this year according to the National Retail Federation. That’s a higher number compared to last year’s average of $549, even though the economic indicators have flat-lined.

This year’s economics homework  is all about supply and demand. So here’s your Answer Guide for how to supply your students with the gear they’ll need and demand more for every dollar.

The Three R’s of Cyber-Coupons: Reductions, Rollbacks and Rebates

To leverage more buying power from national brand names, this year’s coupons are cut out to save you “scholar dollars.”  No actual scissors are necessary for these cost-cutters. Just print and go!

Savings.com offers discounts across the (vulletin) board. Start your savings at their Back-to-School page link.

Educationalwarehouse.com is where the teachers shop for its learning tools and games—everything from puzzles and puppets to software and stickers. Classroomdirect.com has great prices on over 10,000 products and a clearance corner offering even deeper discounts.

RetailMeNot combines one of the Web’s top destinations for  “coupon codes” you can when checking out, to a community of savvy shoppers to advise you on tips and greater deal info from other sites. You also can have the week’s most-popular coupons e-mailed to you. We link direct to the back-to-school section.

CouponWinner.com has nearly 20,000 coupons from about 9,000 retailers. The site’s Coupon Scout tool lets you compare coupons from up to five retailers. Click on a category, such as women’s apparel, and the Coupon Scout tool will compare your savings.

A life insurance policy can be of enormous help in the event a loved one dies. But what if you can’t find the life insurance policy, or don’t know any details about it – not even what company the insurance was with?

A special Policy Locator Service, created by the Medical Information Bureau or MIB for short, may be your best resource. MIB’s fraud detection services are used by most life insurance companies to help underwrite insurance applications. The MIB Policy Locator Service taps into the data base of the MIB Retail Division to  scour 170 million records and investigate whether the deceased had applied for a life insurance policy at any time after December of 1996.

It’s not difficult to lose track of life insurance coverage for a loved one. Policyholders may fail to inform beneficiaries of the policy’s existence because they subject is too unpleasant to to discuss. On other occasions, survivors are aware that a policy existed but don’t know the name of the insurance company. Depending on the life of the policy, an Insurance company may have changed its name or been acaquired out by by another company, deepening the mystery even further.

The detective work can be all- important. While insurance companies would like to pay out what is rightfully due, the responsibility to claim benefits lies with the beneficiaries. If you suspect that a life insurance policy may have been applied for since after December 1996, MIB may be able to help.

Insurance Locator Services –  Born in the Aftermath of 9/11

Where did the idea for a Life Insurance Locator Service come about? It was the aftermath of the Sept. 11 attacks that led to its creation  since many policyholders kept their life insurance policy information at work. When insurance information was destroyed in the World Trade Center bombing. MIB came to the rescue by helping survivors locate missing life insurance information and get the benefits they were due – all for free. Two years later MIB commercialized the service and began charging $75 for a search.

Here are some guidelines to keep in mind if you consider doing a missing insurance policy search.

• MIB only has information on individually underwritten life insurance, not group insurance. This means insurance through one’s employer will not be recorded.

• If the policy was applied for prior to December 1996 or the person died prior to that date, it will not be contained in the database.

• Persons eligible to submit a search request are the representative of the decedent’s estate (executor or administrator) or the surviving spouse. If there is no estate representative or surviving spouse, then a child of the decedent may submit a search request.

Here’s how to order a Missing Policy Report. Share and Enjoy:

]]> http://www.efinancialblog.com/life-insurance-mia-service-helps-locate-missing-life-insurance-policy/feed/ 5 http://www.efinancialblog.com/top-10-insurance-myths-slide-show/ http://www.efinancialblog.com/top-10-insurance-myths-slide-show/#comments Tue, 27 Jul 2010 22:34:32 +0000 Efin Advisor http://www.efinancialblog.com/?p=1739
Call them rumors, fables or simply strangely-brewed factoids, it’s confounding how the plain facts about life insurance have fostered a mythology of misinformation. Today, the Internet has brought crystal clarity and straight-laced information to the subject of life insurance with resources like the Efinancial E-Learning Center and Life insurance Frequently Asked Questions. But not [...]]]>

Call them rumors, fables or simply strangely-brewed factoids, it’s confounding how the plain facts about life insurance have fostered a mythology of misinformation. Today, the Internet has brought crystal clarity and straight-laced information to the subject of life insurance with resources like the Efinancial E-Learning Center and Life insurance Frequently Asked Questions. But not so very long ago, the soapy pitches that characterized life insurance sales were a hatchery for goose eggs like the Top 10 Insurance Myths that appear below.

Investopedia, a Forbes company, has produced a slide show of these myths with a capsule debunking of each, and a few useful links. A real hit-or-myth proposition

Myth No.1: I Don’t Need Coverage, I’m Single With No Dependents
What’s that? You’ll have no debts, medical or funeral bills? Are you sure?

Myth No.2: I Only Need Coverage Equal to Twice My Salary
See above, then add mortgage and family.

Myth No.3: My Term Life Insurance at Work Is Sufficient
Not for everyone. Did you include estate taxes, spouse and children?

Myth No.4: The Cost of My Premiums Will Be Deductible
Not unless the policyholder is self-employed and the coverage is used to insure the business.

Myth No.5: I Absolutely Must Have Life Insurance at Any Cost
Probably true, but without debt or dependents, not always.

Myth No.6: I Should ALWAYS Buy Term and Invest the Difference
If you know you must be covered in later years, permanent coverage may be a better idea.

Myth No.7: Variable Life Is Better Than Straight Universal Life
Market performance and account fees can debunk this myth.

Myth No.8: Only Breadwinners Need Life Coverage
If the deceased is a  homemaker, the costs of daycare and household management are substantial to say the least.

Myth No.9: I Should Always Purchase the Return-of-Premium Rider
A cash-flow analysis will reveal the truth, or falsity, of this myth.

Myth No. 10: I’m Better Off Just Investing My Money
In a word…Hogwash!

A well-known “social media” analyst expects insurance companies to soon decide “You are what you Tweet!” then reward or penalize your online behavior with appropriate insurance rates and terms!

The research report on Social Media by the Altimeter Group predicts that insurance companies may use social data (in the not-too-distant future) to enhance their customer database. Just as today’s companies use previous purchasing behavior, demographics, psychographics and other studies, the researchers expect companies to take advantage of the social data that customers are providing to the public, in order to make better decisions.

Rewarding good drivers with lower rates is nothing new according to the researchers. Just look at Allstate’s advertising campaign. Insurance and healthcare companies want safe and healthy customers.

Social media is simply the most modern way that people are choosing to go public with their hobbies and lifestyles. Case in point: A Canadian woman who claimed medical disability, but was soon denied after the employer and insurance company discovered Facebook pictures of her on a beach.

Are You What You Tweet or Post to Facebook?

Here are three ways companies could influence rates based on social data according to Altimeter Group findings…

1. Monitor activities: Some insurance company could monitor what members are saying, then offer suggestions on wellness, activities, and being healthy. Overtime, they can develop intelligence and eventually predictive models based upon members published information and their overall well being. With that kind of data you can expect companies to “quickly be able to size up new members based upon their existing social behaviors online in order to influence the packages and rates they’ll offer.”

2. Penalize ill-behavior: Insurance companies could monitor customers, and those that participate in a negative way online could be penalized. Example: Checking into bars four times a week consistently when it’s not your job could yield a 10% increase. Anyone who earned the “Crunked” badge (going to four places in one night, referring to binge drinking) could receive a 10% increase in fees (unless of course, you’re the Budweiser delivery person). Or, anyone posting pictures of them skydiving or any picture while driving on the freeway from the drivers seat, would yield an increase in car insurance.

3. Reward members with pro-wellness activity: Rather than punish bad behavior, insurance companies could incentivize members to participate in pro-health programs. For example, members that regularlly publish their stats to Nike Plus, a system that connects Nike Shoes, iPods, and the internet to track running stats, could benefit from a decrease in health rates. Or, people that frequently check into healthier food alternatives like Trader Joes or Whole Foods, rather than a fast food place, may have a decrease in insurance rates for the family.

Social Insurance Rates’ Could Also Be Fraught with Challenges

Altimeter Group Web strategist Jeremiah Owyang points out that “Social Insurance Rates” are all about tradeoffs, to get a benefit, you have to give up something, here’s the risks as I see them. The data may not be accurate, information might be gamed or spoofed, there could be a chilling effect on members who clam up to evade the stick.

The conclusion? Possible opt-in programs for “Social Insurance Rates.”

Owyang expects health and insurance companies to offer an opt-in method for existing wellness programs to be extended to tools like online education courses, participating in wellness programs with peers (like Nike Plus) or allowing members to submit location based checkins to the gym, healthy eating, and other pro-health activities. “We should expect that a forward-thinking insurance or wellness company offers an online incentive based program to encourage members to connect to each other, become more educated, and live a healthy lifestyle.”

The Internet has been described as the greatest library of information the world has ever known, greater than the Great Library of Alexandria in Egypt or the U.S. Library of Congress. The only problem is the way the Internet is set up. All the volumes of information aren’t organized on book shelves where we can easily find them.  They’re scattered all across the Web!

That is why search engines like Google, Yahoo, Ask, Wolfram Alpha and now Bing have become the “Table of Contents” for the Internet and the first stop for many Web surfers on the way to their “information destination.” Newcomer Bing has even decided to change its self-image from a Search Engine to a “Decision Engine.” Did you know that Bing’s new Entertainment “portal” lets you preview over 5 million songs and lyrics one time for free, plus more than 1500 TV shows and nearly 100 casual games that can be played online, without registration?

Where would we be today without search engines? Probably back in that Internet library buried in an avalanche of information without a a way of excavating it all.

When it comes to life insurance, Efinancial is the closest thing yet to an insurance search engine for finding the best rates and coverages by “querying” America’s top insurance companies and giving you back the most accurate “search results.” Depending on your parameters, Efinancial will apply its search savvy to :companies such as Transamerica Life Insurance Company, HSBC Insurance, MetLife, BannerLife, RBC Insurance, Genworth Financial, West Coast Life Insurance Company, ING, and Fidelity Life among others.

The advantages of a search engine, just like Efinancial’s search, is a huge savings in time. You find exactly what you need, quickly and efficiently, and without any pressure from  third parties who want you to sell you a “favorite” product.

To start your search for a better financial future with Efinancial security behind you, you simply enter your age, height, weight and zip code into the Efinancial “search engine.” Then let Efinancial data miners put their technology to work for you and your family!

In just a few clicks, you’ll find exactly what you’re looking for!

We all have a lot of stress in our lives right now, and we at Efinancial try and give you some ways to alleviate that stress (whether it’s with tools like our free insurance quote generator or through personal financial advice).  One way of relieving stress is through laughter, so we thought that these stories and quotes from insurance claims may give you the necessary laugh to lift up your day

-A car owner asked to be compensated for whiplash, headaches and backaches even though he was sitting in a bar when his car was hit.

-A driver caught speeding actually put in a claim for a new watch. He insisted that if he had a new watch then he wouldn’t have been late and wouldn’t have to speed.

-One man tried to make a claim for the ink in his expensive pen after he filled out notes from an accident.

-A man got in a second auto accident in a one week period.  The cause:  he was waving to the person who he got in an accident with earlier in the week.

- Quote: “I knew the dog was possessive about the car but I would not have asked her to drive it if I had thought there was any risk.”

- Report: “Windshield broken. Cause unknown. Probably Voodoo.”

- Report: “The accident occurred when I was attempting to bring my car out of a skid by steering it into the other vehicle.”

Mobile banking is poised to become the next express lane for fast and easy financial transactions, with the nearest on-ramp as close by as your cell phone. Forecasters predict that by 2015, 50% or more of US mobile users will be moving money over the airwaves from their handheld devices. How will it affect you?

Mobile banking is already offering a dramatic new level of convenience, the ability to check account balances, pay bills and transfer funds from the same device you carry along everywhere. The ultimate success of “mobile money” will hinge on several factors, including a not very steep learning curve, technical system compatibility and security concerns among them.

Consumers aged 18 to 25 are currently the biggest users of mobile banking services in the U.S. But mobile banking is also looming large on the global stage. The countries of Africa are some of the earliest adoptees of mobile money, in some cases where people have never had a bank account.

Moving money by cellphone is proving to be a godsend for rural families and migrant workers who can pay bills and transfer funds without the need to travel to financial institutions. In the country of Kenya, mobile money has reportedly boosted the incomes of rural households by 5 to 30 per cent.

Brian Richardson, co-founder and managing director of WIZZIT, a South African bank, recounted, ““Five years ago, when we launched, the big banks were not convinced that mobile banking would ever work,” said “In fact they said it wouldn’t work – they said nobody would make a payment on a cellphone when they had a perfectly good PC in front of them. Their mindset was really focused on their existing bank customers.”

After WIZZIT pioneered the technology, the banks caved in and created their own mobile banking services, which now have about five million customers in South Africa alone.

American taxpayers have learned to dislike the phrase “Too big to fail” almost as much as they have disliked bailing out any institution who fell into the extra large, oversized category.

So now that the debate over financial reform has finally begun in Washington, the new question is: “Can a bank regulation bill be ‘Too big to pass.”