During a life you, your family and your property are exposed to various risks. Illnesses, traumas, fires, hurricanes, thefts – “the Name it a legion…” The best way to secure, the family and the property – insurance.

You have decided to buy an insurance policy. One of the first questions: “What insurance company to choose?” We shall try to help you.

The companies are subdivided into 2 groups:
• LIFE insurance companies, which sell life insurance, annuities and pensions products.
• NON-LIFE, General, or Property/Casualty insurance companies, which sell other types of insurance.

The main reason for the distinction between the two types of company is that life, annuity, and pension business is very long-term in nature coverage for life insurance or a pension can cover risks over many decades.

NON-LIFE insurance companies can be further divided into these sub categories:
• Standard Lines
• Excess Lines.

In the USA, Standard Line insurance companies are “main stream” insurers. These are the companies that typically insure autos, homes or businesses. They use pattern or “cookie-cutter” policies without variation from one person to the next. They usually have lower premiums than excess lines and can sell directly to individuals. They are regulated by state laws that can restrict the amount they can charge for insurance policies.

Excess Line insurance companies (aka Excess and Surplus) typically insure risks not covered by the standard lines market. They are broadly referred as being all insurance placed with non-admitted insurers. Non-admitted insurers are not licensed in the states where the risks are located. These companies have more flexibility and can react faster than standard insurance companies because they are not required to file rates and forms as the “admitted” carriers do. However, they still have substantial regulatory requirements placed upon them. State laws generally require insurance placed with surplus line agents and brokers not to be available through standard licensed insurers.

Insurance companies are generally classified as either mutual or stock companies. Mutual companies are owned by the policyholders, while stockholders (who may or may not own policies) own stock insurance companies.

Are available also Reinsurance companies and Captive insurance companies.

Reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce their risks and protect themselves from very large losses.

Captive insurance companies may be defined as limited-purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups.

Legally, the insurance companies can be divided into 9 categories:

1. Domestic.  This type of insurance company is incorporated and formed under the laws of the state in which it is domiciled.
2. Foreign.  This type of insurance company is also domestic company as it is domiciled in one state but it is licensed to do business in another state.
3. Alien.  This type of insurance company is often confused with a Foreign insurance company.
4. Authorized (Admitted) and Unauthorized (Unadmitted).  Upon applying for approval to do business in a state, the insurance company receives a certification of authority from the state Insurance Department (Division).
5. Stock Company.  As the name implies, a stock company is an insurance company that is owned by the shareholders.
6. Mutual Company.  This type of company is owned by the people and/or businesses the company insures.
7. Reciprocal (Assessment) Company.  Nonincorporated associations of individuals or business, called subscribers, engage in cooperative insurance programs.
8. Fraternal Benefit Society.  This type of social organization has bylaws allowing it to sell insurance to its members.
9. Lloyd’s Insurer.  It is a number of people organized into syndicates or groups for the purpose of underwriting risks. Lloyd’s operate on many of the same principles as a stock exchange.

Insurance companies are rated by various agencies such as A. M. Best. The ratings include the company’s financial strength, which measures its ability to pay claims.

The list of the largest insurance companies which are presented in the American market of insurance services, it is possible to see here: http://www.insuus.com/listcomp.htm.

Andrew Andreeff
http://www.articlesbase.com/insurance-articles/insurance-companies-of-the-usa-1162264.html

The current economic crisis is making everyone think about how to protect their money and the financial security of their family. Here are 45 tips to protect your money during and after an economic crisis. These tips have been taken from Surviving the Debt Crisis.

1. If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.
2. Decide whether you might be better off making extra mortgage payments or putting that money into investments.
3. Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.
4. If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.
5. Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.
6. If you plan to studying in college, compare the college saving plans to find those which give you the best options.
7. Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.
8. Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.
9. Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.
10. Supermarket coupons can be a great help, provided you know the right way of using them.
11. Do not run after high returns without considering that ‘A great reward may have a greater risk’.
12. Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.
13. Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.
14. Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.
15. Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.
16. Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.
17. Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.
18. When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.
19. Investing the same amount regularly is said to be the best way of using dollar cost averaging.
20. Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.
21. Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.
22. Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.
23. If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.
24. Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.
25. Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.
26. The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.
27. You can invest globally, not just in the U.S.A. exchanges.
28. Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.
29. When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.
30. Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.
31. Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.
32. When you sell a home, go to a qualified realtor and get referrals from people you trust.
33. Do not buy real estate investments with borrowed funds.
34. Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.
35. Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.
36. If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.
37. If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.
38. Money handling processes have changed, so do not stick to how your parents handled their money.
39. While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.
40. While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.
41. Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.
42. Instead of saving for your children’s college costs, consider starting to save for your own retirement first.
43. Investing in a QTIP trust might be a good way of protecting your kids and spouse.
44. Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.
45. Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

Craig Maugham
http://www.articlesbase.com/wealth-building-articles/45-tips-to-protecting-your-money-during-after-an-economic-crisis-701108.html

I read a little about the woman who was 80 and had lots of money and her broker wanted to sell her annuities. Many people said that was not a good idea.
My mom is 82 and has absolutely no money in the bank. Her income was from a building she was part owner of that was leased as a resturant. The business went belly up and the building was sold. It is in escrow as I type. She will get about half a mil when all is said and done in January.
She is talking to a broker that wants her to put all of it into some kind of annuoity that pays 9 per cent. He is tall and friendly as his qualifications. I have never met him but I just picked up the prospectus package when I last visited.
It is through Jackson National Life and it is a variable annuity.
I will meet with this guy sometime next month but have no facts to counter his proposals.
Someone have some thoughts on this situation?

An annuity is a good way for older individuals to receive income because the payments can be taxed less if set up properly AND provide with lifetime payments with the balance passing to heirs (you I’m guessing) very easily without going through probate. HOWEVER, for someone in their 80’s, a fixed annuity would be much safer and less volatile. Jackson National is a good company, but have her guy talk to you about fixed annuities, which have more guarantees and safety for older individuals

Why do some people dislike insurance annuities? Are they considered a rip off? I have heard opinions not to buy but no real reasons. Help me , please

Annuities are a valid product, that meets the financial goals of a few people – a very few people.

Most people will do better in mutual funds.

Annuities aren’t a ripoff, but they make a TON of money for the agent and company, and a very SMALL rate of return for the purchaser.

Would it be best to take a lump sum payment or take it over a long term for a lotto player that is in his 30s?

Lump sum— and always eat dessert first.
Life is unpredictable.

The equation would be:

Present Value = 50,000 / (1.06)^1 + 50,000 / (1.06)^2 + … + 50,000 / (1.06)^20

The answer is $573,496.06

Like the subject says, I want to know if a recently discharged bankruptcy will hurt my chances of buying an annuity. Do they normally do credit checks?

The short answer is no. If you have money to put into an annuity, then the insurance company will take it. There are no questions like that on the application and no credit checks either.

Like the subject says, I want to know if a recently discharged bankruptcy will hurt my chances of buying an annuity. Do they normally do credit checks?

The short answer is no. If you have money to put into an annuity, then the insurance company will take it. There are no questions like that on the application and no credit checks either.

Like the subject says, I want to know if a recently discharged bankruptcy will hurt my chances of buying an annuity. Do they normally do credit checks?

The short answer is no. If you have money to put into an annuity, then the insurance company will take it. There are no questions like that on the application and no credit checks either.

Like the subject says, I want to know if a recently discharged bankruptcy will hurt my chances of buying an annuity. Do they normally do credit checks?

The short answer is no. If you have money to put into an annuity, then the insurance company will take it. There are no questions like that on the application and no credit checks either.