Nordisk

Archive for June, 2011

When you are looking for insurance on the vehicle you drive, everyone accepts you could change to a different vehicle tomorrow. It’s the same with a rental home. People who do not own their own homes often move on a fairly regular basis. Put the other way around, many people feel able to change their insurers more or less at will. If one insurer hikes their premium rates, many shop around and find another insurer with lower rates. That’s the way the world works. But, when it comes to buying cover for your life, there’s a big change.

The first policy you are looking to buy may be for a fixed term, making it unlikely you will cancel. If you buy a whole life policy, this is an even more permanent commitment. Given the policy depends on you building up the cash value, you are not expecting to change insurers unless there’s a crisis that requires you to surrender or sell the policy. This means both sides of the proposed bargain are going to look more carefully at each other. You want to feel confident you are buying a policy with the right terms for your particular circumstances. You also want to be reasonably sure the company is financially sound and likely to be around to pay out in thirty or more years from now. On their side of the fence, they want to ensure you are not going to die tomorrow – that means a medical exam.

If all you want is a policy with a short term for a small amount of money, a young man will be waved through with only a nominal check on your health. But if you are older and/or you ask for a larger amount of cover, the checks will get more real. The first rule to understand is that you cannot rely on your regular doctor to provide a medical report. You will always either be seen by an employee of the potential insurer, or referred to an independent person with medical expertise. Depending on the level of protection demanded by the insurer, you may find the exam will come to you. Many life insurance companies operate with mobile testing facilities that will visit your office or home. This provides an opportunity for a detailed questionnaire on your medical history and a basic set of samples for testing. But the more comprehensive tests will always require you to go to a clinic or hospital where you can be put on a treadmill for measurement of your breathing capacity, heart performance, and so on.

Remember you will be subject to a standard range of tests to determine whether you are currently taking any drugs. This ensures your honesty in disclosing existing medical conditions and also looks at your lifestyle to confirm you are not currently taking anything illegal. If any problems are detected, you may be asked for further tests or time may be allowed for you to take remedial action, e.g. to quit smoking, eliminate street drugs or lose weight. Life insurance rates are based on your health as it is. A healthy young person will be offered a low rate. Anyone with lifestyle or health issues will either be offered a high rate (as a deterrent) or refused outright.

Every time you open your mouth, you define reality. Your reality attracts people or pushes them away. When you business network, you want to pull people to you. The way to do that is to help others define reality, too. By asking them questions.

Unfortunately, we are so spring-loaded, when we network, Boom – as soon as someone asks us a question, we start telling them everything we possibly can about our product – why it’s the best or why everyone wants it or why everyone should. That kind of reality must be overcome if you want to wake up and see the effect you have on people. You and only you can control if you attract or push people away.

You’ll have no shortage of questions to ask people if you know you are looking for a friend, not a customer. The friend you want to find is someone who defines a great reality. Someone who is up to something. Someone who knows what they want. You can’t attract someone like that without being someone like that. Then, when you find each other, you can teach each other how to be successful. You can encourage each other, too.

The other night my partner and I went out with our friend, Maurice. He said Albert Einstein defined genius as the way we handle the here and now. Wow. Double bonus. Not only do I like the way Maurice defines reality but I got corroboration and encouragement from dear old Uncle Albert, assuming he said that.

I am in love with loving the here and now. I love to think this is all an illusion, some quantum, mysterious, holographic dream. Remember that the next time someone defines reality in a negative way, and run. You’re looking for the unstoppably optimistic, the causelessly happy, the self-generated silly, the undeniably young at heart who never stop playing and having fun because they love to think and define reality for themselves.

If we were together networking, I’d ask you what you think about defining reality. I’d listen so I could see if I like the way you define reality, so I could choose whether or not to keep talking to you. Let’s face it, talking about our products is a waste of time if someone hasn’t asked us about them. We’re all connected. If you want to know about my products or services, you’ll call or write.

And that, my dear friend, is the new way to network, the new way to market, the new way to sell. No one’s a customer. We’re all providers. We all have something to sell. We all have competition marketing similar stuff. The only thing left to set us apart is how we, as individuals, define reality, how we converse and interact as friends, how we love our friends and how our friends love us because they love the way we define reality. Define a great reality and you will attract plenty of people who want what you have – wonderful people who create wonderful realities for you. Now stop and picture business networking with some of this in mind.

Incoming search terms:

• define business networking

The first wave of boomers is approaching retirement and, in a recent survey, almost half those born in the twenty years immediately after the end of World War II are worried they may not have enough money to be able to live through retirement comfortably. This is slightly surprising since more than half this age group have life cover. In fact, of all the generations, they have saved and invested more which, of course, partly explains the current worries. When the property bubble burst in 2008 and stock values fell so sharply, many people found their retirement investments seriously reduced. As a result, many boomers are now planning to delay their retirement as long as possible, hoping to rebuild their savings. The other factor in all this is the steady increase in life expectancy. When the boomers were planning their finances back in the 1960′s and 70′s, most expected to live through to around 70. Now the average expectancy is 79 years with women living on into their 80s. Indeed, with the improvement in medical care, the number of people dying fell by 36,000 in 2009. When you realize you may have to find the money to support yourself for another ten years, this puts a big strain on savings.

So are the boomers right to be worried? In practical terms, the answer is probably “yes”. It’s going to take many years for property values to recover. Without the security of positive housing equity to offer as collateral for a loan, this forces more people to use up their savings more quickly. If inflation rises, this will force a hike in interest rates. Although this is good for those with savings, it puts anyone still holding a mortgage under pressure. Any debts on credit cards also look bigger and take longer to repay. All this is manageable to long as there are no crises. But if there are hospital bills or any other large expenses, this can create real problems.

The best answer may be the market in life settlements. If you hold a policy with a cash value, you can sell the policy for more than the insurer will pay as surrender value. The way it works is simple. The individual or company buying the policy pays the premium installments and then collects the amount payable when you pass on. This is a good deal in three situations which may overlap: you need quick cash; your family circumstances have changed and there’s no one depending on you to leave a cash sum; or it’s become a strain to maintain the installment payments and you risk the policy lapsing if you stop paying.

Before you approach this market, you should get proper advice. If you are holding a life insurance policy worth at least $250,000, you may be able to get a good lump sum depending on the amount of the premiums and your current state of health. The usual advice is to hold on to the policies for as long as possible before offering them for sale. If you are at least 70, the life insurance policy will be worth more – fewer installments to pay during your remaining years.

Are you looking to save money on your automotive coverage? While finding the best policy is important, your driving record is just as important – if not more important! According to a new study, the number of traffic offenses on your record can mean the difference between a monthly premium that is manageable and one that is sky high.

For example, drivers who purchased a plan last year with one ticket on their record had a monthly premium that was 18% higher on average than drivers with no violations. With two violations, drivers paid 34% extra, and with three they had to pay more than 50% extra! If you are 65 or older, violations have a magnified effect – just two violations in this age range and you will see a 57% increase.

The analysis examined 32,000 single-driver, one-car insurance policies purchased in 2010. The study found that a number of factors associated with receiving a ticket affected insurance rates.

Types of Violations

The following are infractions that will affect your monthly premium:

• Speeding
• Driving under the influence (DUI)
• Careless driving
• Running red lights or stop signs
• Failure to yield
• Illegal passing
• Improper U-turn
• Failure to use a child restraint

Time is of the Essence

The raw number of offenses on your record doesn’t necessarily make a huge impact on your driving record; it depends on the time period between the offenses. For instance, if you’ve been caught breaking traffic laws twice in the last six months, your car insurance rates will likely go up significantly. However, if you have two offenses that are five years apart, your rates should not go up substantially.

The amount of time between offenses is critical to establishing patterns in driving quality and responsibility-rare infractions tend to be seen as exceptions to otherwise good behavior, while frequent infractions are linked to poor driving habits.

Consider Points Before Buying

Some good news is that you can ask to see how insurers calculate their rates before you purchase a policy. Ask to see their point tables or schedules so you can know exactly what they charge for different driving records. That way, you can make the best decision.

Keeping Your Premium Low

Of course, avoiding tickets and driving safely are the best ways to avoid the pitfalls of infraction-related rate hikes. But you can also do a few other things:

- Take a Defensive Driving Course
In many states, taking a defensive driving course will reduce or eliminate points from your license, and consequently reduce your car insurance premiums.

- Be Sure to Shop Around
The more options you find, the more likely you are to find the optimal policy for you.

- Raise Your Deductible
By raising the amount you are willing to pay out of pocket in an accident, you take on more responsibility for accident repairs and thus will reduce your monthly payments. Just make sure you have enough in savings to pay for the maximum should you need it.

- Look Online
The best way to get low prices fast is to shop for car insurance online.

When it comes to setting premium rates, the make and model of the vehicle you propose to drive is the most important factor after your own safety record as a driver. Some models attract thieves either because they are easy to steal or provide a thrill factor when driven at speed. But for everyday use, the way the model performs in crash tests is the real issue. Let’s take just two issues. If there’s plenty of metal between you and other drivers, you are less likely to be injured in an accident. So, for example, sport utility vehicles have size and weight on their side. Now that new electronic stability controls have been fitted to reduce the risk of roll-over, these are among the safest vehicles to drive. The only drawback is the gas-guzzler tag. With gas back up to around $4 a gallon, filling up the tank on an SUV means you have to be in good standing with your credit card providers.

So, if the cost of putting and keeping an SUV on the road is too high, what are the safest low-cost vehicles? The answer is provided by two bodies, working more or less together: the Insurance Institute for Highway Safety (IIHS) and the Highway Loss Data Institute (HLDI). The IIHS does the crash testing and general talking with the manufacturers about design to improve the safety of vehicles on the road. The HLDI analyzes all the available data from the insurance industry to put numbers on the human and economic losses that flow from traffic accidents. When you put the two sets of results together, you get a good picture of which vehicles to drive. When the IIHS first started, it preferred bigger vehicles. So long as the driver was wearing a seat belt, driving a truck or stable SUV was always going to give you the most protection. But now the tests have grown more open, measuring front, side and rear strength, as well as the risk of roll-over, small vehicles are outperforming the heavyweights. The top fuel economy cars are now safer than SUVs.

In part, this is due to their speed. You can often move out of the way of danger in a small car. The latest round of results show the Ford Focus, Honda Civic, Hyundai Elantra, Nissan Juke and Toyota Prius as the top safety picks. Note the Prius. The hybrid delivers an estimated 51 miles to the gallon on the highway. If you are going to buy secondhand, check the archives for the listing of makes and models by year. Small vehicles used to lack the safety equipment now supplied as standard. Designs change from one year to the next. So, for example, the Elantra has gone from being one of the worst vehicles to one of the best.

Before you buy, check the lists published on the IIHS site and then get auto insurance quotes to confirm the current premium rates. You are looking for the best balance between price on the road and insurance costs. The good thing about free auto insurance quotes is you can get premium rates for as many different makes and models as you can afford. This lets you make the best overall decision on safety and cost.

Most home sellers are very excited on closing day. They anticipate seeing a very large check, usually the largest check they will see for any type of possession or investment they have sold. But, come the following April 15th, their accountant will be asking whether there are any taxes that must be paid on the profit.

When the 1997 Tax Act passed, the home sale rules were completely changed. Many home sales that were not taxed under the old law may now be subject to tax. But many more people who might have paid taxes on the profits of their home sale under the old rules do not pay anything under the current law.

There are three tests to meet in order to have the profits from your home sale excluded from income taxes:

1. Use test: You must have lived in your home for any two years out of the last 5 years.

2. Ownership test: You must have used the house you sold as your principal residence for any 2 years out of the last 5 years.

3. Timing test: You must not have excluded gain from the sale of another home within the last 2 years.

If you meet all three tests, you can exclude from your taxes up to $250,000 of gain, if you are single, or up to $500,000 of gain, if you are married, filing jointly. If only 1 spouse meets the Ownership test, the full exclusion is allowed, as long as both spouses meet the Use test. Or if 1 spouse has done a tax-free sale within the last 2 years, the other spouse may sell and exclude $250,000 of gain. If 2 non-married persons own a house together and both live there, each can exclude up to $250,000 of gain. Even if you don’t meet the Use test because you did not live in the home for at least 2 years, you may still qualify for a partial exclusion. If you own a second (vacation) home, this tax law will not apply, because you will not meet the Ownership test.