Official QuickQuote Blog http://www.quickquote.com/blog/ QuickQuote Insurance Blog: All things insurance all the time. en Copyright 2009, QuickQuote Financial Inc Mon, 03 Jul 2006 17:00:00 GMT Mon, 27 Apr 2009 24:20:00 GMT webmaster@quickquote.com webmaster@quickquote.com Term Life Insurance Premiums Increasing The current economic downturn and tight credit markets are causing problems for most financial services companies, and life insurance companies are no exception. Most life insurance companies have seen profits fall dramatically due to market conditions. As a result, capital costs have increased and rating agencies have downgraded many life insurers. This acidic combination has caused regulators to increase the reserve requirements of the industry as a whole.

"This perfect storm has left life insurance companies with few options, and many are choosing to raise premiums in an effort to stem losses and meet additional requirements mandated by regulators," stated Tim Bain, President and CEO of QuickQuote Financial, an Internet-based term life insurance broker (www.quickquote.com). "None of these companies wants to become the next AIG, so they are forced to take these measures."

QuickQuote has seen premium increases from Banner Life, American General Life, Lincoln National Life, ReliaStar Life (ING), West Coast Life and Prudential in just the first four months of 2009. These rate increases have been on average of about four percent. Many life insurance companies have also increased policy fees during this same period.

While term life insurance still offers the best value in the market for pure protection, it appears rates may continue this slow increase for the foreseeable future.

"Although the trend is currently upward, we certainly don't expect to see the significant decreases of the past ten years or so erased entirely," said Bain. "However, now may be a better time than ever to lock in a low rate on a term life insurance policy because we simply do not know when rates will begin to fall once again."

]]> Mon, 27 Apr 2009 13:16:24 GMT Term Life Insurance For Young Americans
18 percent of the young Americans surveyed said their personal financial fitness was "toned and fit", while 55 percent claimed it to be "a little flabby" and 27 percent "seriously out of shape."

From a life insurance perspective, term life insurance is arguably the most financially responsible type of coverage for most young Americans in this age group. The low premiums combined with guaranteed rates and the option to convert to a permanent product at some point in the future, make term life insurance a wise choice for this age group.

In addition, simplified issue term life insurance is often a perfect fit for young, relatively healthy consumers who want affordable coverage without enduring the process of paper applications, paramedical exams and underwriting reviews. Quotes are easily obtained on our website;  however, we recommend discussing options with one of our licensed representatives who may be able to offer additional quotes not found on the website.]]> Tue, 07 Apr 2009 13:16:24 GMT Prudential Insurance Company Releases New LTC Product Prudential Insurance Company of America recently introduced a new long term care insurance product called Prudential LTC Evolution. This new product is designed to simplify the process of choosing coverage options for consumers.

Consumers are only required to select a lifetime coverage maximum amount ranging from $100,000 to $1,000,000. All other benefit amounts are pre-set in the policy. The policy is currently offered in a limited number of states.

Prudential Insurance Company of America is a subsidiary of Prudential Financial, Inc., as is Pruco Life Insurance Company.

]]> Fri, 06 Mar 2009 13:16:24 GMT AIG Seeks Offers for Life Insurance Unit Reuters is reporting today American International Group (AIG) is seeking bids in an effort to sell its American Life Insurance Company (ALICO) unit. MetLife has made a preliminary offer of approximately $11.2 billion. ALICO has life insurance operations in more than 50 countries.

A deal for the sale of the life insurance unit is expected to help AIG repay part of the multi-billion loan the company received from the federal government last year.

It's important to note that American Life Insurance Company is an entirely different company from American General Life Insurance Company, a QuickQuote marketplace partner. American General Life is AIG's domestic life insurance unit and remains a very highly rated life insurance company.

Credits:  Reuters

]]> Wed, 25 Feb 2009 13:16:24 GMT The Stimulus Act and Health Insurance President Barack Obama signed into law the American Recovery and Reinvestment Act (The Stimulus Act) on Tuesday, February 17, 2009. The Act amounts to the largest economic stimulus package in the history of the United States.

The Act addresses very little in the way of insurance. Health insurance is addressed by the Act as it includes a provision for government subsidies for COBRA coverage. COBRA refers to a law that allows some terminated employees to remain on their former employers' health insurance plan for a period up to 18 months (up to 36 months for some dependents). Employees must pay the premiums for the coverage out of their own pockets. Anyone that has been on COBRA can tell you this is not often a desirable option, as the premiums can be quite expensive. However, if a person has pre-existing conditions or cannot otherwise qualify for individual health insurance, COBRA may be the only option, undesirable or not.

The Stimulus Act provides for subsidies of up to 65% of terminated employees' COBRA premiums for a period of nine months. The total price tag to the American taxpayer .... an estimated $25 billion.

]]> Thu, 19 Feb 2009 13:16:24 GMT Life Insurance and Foreign Travel Update It has been a while since we last blogged about this somewhat sensitive subject (sensitive to the life insurance industry anyway). In the meantime, the list of states that do not allow the use of foreign travel history or future plans to be used in determining the eligibility of a life insurance applicant has grown to a total of ten. The list now includes the following states:

  • California
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Illinois
  • Massachusetts
  • New Jersey
  • Tennessee
  • Washington

These states do not allow life insurance companies to take adverse action based solely upon the proposed insured's past or future lawful travel. They do, however, allow life insurance companies to ask questions on their applications pertaining to such travel for the purpose of actuarial research. The lone exception is Florida, which does not allow any reference to foreign travel whatsoever on life insurance applications used in that state.

]]> Fri, 06 Feb 2009 13:16:24 GMT John Hancock Life Insurance Company Recognized John Hancock Life Insurance Company recently qualified for inclusion in the Insurance Marketplace Standards Association (IMSA). IMSA is the leading independent standards-setting and compliance solutions organization for the life insurance marketplace (can you please repeat that in English?).

"John Hancock is proud to attain national ethics recognition from IMSA," said Jim Gallagher, global compliance chief for John Hancock. "Our vision is to be the most professional life insurance company in the world."

John Hancock Life Insurance Company is a Manulife Financial Corporation company, and is also a partner company in the QuickQuote term life insurance marketplace. 


Credits:  Insurance Broadcasting

]]> Tue, 03 Feb 2009 13:16:24 GMT Genworth Financial Recognized for Outstanding Service DALBAR, the nation's leading financial services market research and consulting firm, recently recognized Genworth Financial, Inc. for outstanding service in its 2008 Service Awards. DALBAR recognized Genworth Financial for delivering industry-leading service to its customers.

Genworth Financial Life Insurance Company is a Genworth Financial company, and is also a partner company in the QuickQuote term life insurance marketplace.

]]> Mon, 02 Feb 2009 13:16:24 GMT Newly Added Life Insurance Companies in New York
ING offers term life insurance and return of premium (ROP) term life insurance through ReliaStar Life Insurance Company of New York. Check out our company fact page in the Life Insurance Resource Center.

Prudential Financial offers offers term life insurance and return of premium (ROP) term life insurance through Pruco Life Insurance Company of New Jersey (yes, the name says New Jersey but coverage is for New York residents ... go figure). Check out our company fact page in the Life Insurance Resource Center.

Both companies are A+ rated by AM Best Company and offer very competitive pricing on term life insurance. ReliaStar even offers its electronic signature process in New York!
]]> Wed, 28 Jan 2009 13:16:24 GMT Genworth Life Insurance Company News Genworth Financial, parent company of Genworth Life Insurance Company, recently released its Genworth Financial Investments Overview for the 3rd quarter of 2008. The overview provides detailed information regarding Genworth's investment portfolio for consumers. The overview also lists all of Genworth's current ratings from the four major rating agencies:  A.M. Best, Standard & Poor's, Moody's and Fitch.

Genworth Life Insurance Company remains a very highly rated insurance company and solid partner in the QuickQuote marketplace.

And for more exciting news ... Genworth Life Insurance Company recently announced the coming of an e-Signature life insurance application process in the first quarter of this year! As we mentioned in a previous blog about ING ReliaStar Life Insurance Company's new e-Signature process, this is a tremendous enhancement to the applicaton process for our customers. We are excited about this highly anticipated process and will certainly let our readers know about it as soon as it becomes available. 

]]> Fri, 09 Jan 2009 13:16:24 GMT Electronic Signature for Life Insurance is Finally Here!
Nearly eight and a half years later, electronic signature remains the 'holy grail' of the online life insurance industry. Direct Marketing companies such as QuickQuote and it peers, have asked repeatedly over the past several years for life insurance companies to provide a process allowing the use of electronic signature technology for term life insurance applications.

And now those efforts have finally paid off as ReliaStar Life Insurance Company has recently released its e-Signature process for term life insurance applications! We have been using this process with select customers for one month now and are ready to proclaim it the greatest thing since sliced bread (or does the iPhone already own that distinction?). Nonetheless, the process is amazingly simple and offers customers the following benefits:
  • Elimination of application mailing time
  • No need to physically sign and send back application forms
  • Reduced processing times
  • Quicker policy approval and delivery

You can view quotes for ReliaStar Life Insurance Company and our other fine partner companies here. Our licensed Account Managers are also available to answer any questions you have regarding the e-Signature process or the life insurance application process in general.

Happy Holidays!

]]> Tue, 23 Dec 2009 13:16:24 GMT Better Business Bureau Recognizes QuickQuote here.

Please allow us to enjoy this brief moment of shameless self-promotion! And contact one of our licensed representatives if you'd like to experience the world-class customer service we have provided daily to customers since 1995.]]> Fri, 19 Dec 2009 13:16:24 GMT Federal Reserve Cuts Interest Rate
The federal funds rate is an overnight bank lending rate that affects rates on various types of loans such as variable-rate mortgages and credit card rates, among others. The rate may also impact rates on various investment and insurance products offered by life insurance companies.
]]> Tue, 16 Dec 2009 13:16:24 GMT A.M. Best Affirms Prudential's A+ Rating Prudential Financial today announced A.M. Best, an industry leading rating agency, has affirmed the company's financial strength rating of A+ (Superior). The rating also applies to Pruco Life Insurance Company, the company that underwrites the Prudential term life insurance policies offered through QuickQuote.

Please click here to read the bulletin released by Prudential.

]]> Thu, 11 Dec 2009 13:16:24 GMT Life Insurance in Tough Times The National Bureau of Economic Research (NEBR) this week made the proclamation that the US economy is officially in the midst of a recession or as the White House calls it, an 'economic downturn.' And according to the NEBR, the current downturn has been in place for over a year now. Heck, the media could have told us that months ago. Oh yeah ... they did. In fact, it seems that's all the media have been reporting on for several months now; that and the election. Some call the current conditions the result of a self-fulfilling prophecy brought on by fear caused by the media. Others believe we have the bursting of the housing bubble to blame, while still others lay the blame on the Bush administration. There is surely no shortage of fingers pointing every which way on this issue.

Regardless, there is little doubt these are tough economic times. And many Americans are feeling the pain. According to the most recent data released by the US Bureau of Labor Statistics, the number of unemployed Americans has increased by 2.8 million in the last twelve months and the unemployment rate has risen by 1.7 percentage points.

Yet despite these alarming numbers, we continue to see more people purchasing term life insurance. A recent survey of Americans by LIMRA International indicated only 21 percent of those in need of life insurance are considering delaying the purchase for economic reasons. A mere 5 percent of respondents plan to cancel or reduce their life insurance coverage. And perhaps the most interesting result to come out of the study is that 6 percent of respondents plan to purchase more life insurance coverage.

A deeper look at that last statement actually makes a lot of sense. What's important to remember about life insurance is one of its main purposes is to replace the income lost when the insured dies prematurely. In difficult economic times when unemployment is high and good jobs are hard to find, replacing that lost income becomes even more critical. For example, imagine you are the primary breadwinner in your family and you die unexpectedly and uninsured. Your spouse would be left to find a higher paying job to replace your lost income. That would be challenging enough in a strong economic environment, let alone the current one.

So while the case for keeping life insurance coverage in place is a strong one, we are not so naive that we can overlook the importance of basic human needs such as food, shelter, etc. Obviously those needs are first and foremost. If you are planning to delay your purchase of life insurance coverage or cancel existing coverage for economic reasons, you may want to consider simply reducing the coverage amount and/or term of your new or existing policy. You may be surprised at how inexpensive term life coverage can be in small amounts. And a small amount of life insurance coverage is better than none at all.



Credits: www.bls.gov, LIMRA International

]]> Wed, 03 Dec 2009 13:16:24 GMT Genworth Life Insurance Company FAQ's The expanding credit crisis our economy currently faces continues to stress nearly all industries. We've written several blogs recently about the crisis and the effects on specific life insurance companies and the industry as a whole. An emerging trend we've recently witnessed within the industry is life insurance companies producing materials aimed at educating consumers on the current financial positions of those companies, as well as answer common questions posed by customers.

Genworth Life Insurance Company today released this FAQ guide for consumer use. It addresses common concerns such as "Is my policy safe?" and "Is the company solvent?"

Please take a look at the guide and, as always, please contact one of our licensed representatives with any questions about Genworth Life or any other life insurance company.

]]> Wed, 19 Nov 2009 13:16:24 GMT Life Insurance Companies Apply for CPP Funds
Life insurance companies that have indicated potential participation in the program include Hartford Financial, Lincoln National, Genworth Financial and Principal Financial Group, as well as countless banks and other financial institutions.

The program has already shown the unexpected benefit of positioning strong companies as acquirers of their weaker competitors. Some have used CPP funds solely for this purpose. Others are using the funds to pad their capital accounts.

Either way, it is becoming evident that a company's use of the program is not necessarily an indicator of financial weakness. And thus, we should be careful to not rush to judgment on the life insurance companies with plans to participate in the program. Most remain excellent choices for life insurance coverage.]]> Tue, 18 Nov 2009 13:16:24 GMT Life Insurance Consumer Protection In light of the economic climate our country is currently in and with all the recent negative news surrounding financial companies, it is normal for consumers to be wary of doing business with these companies and with financial products in general. When it comes to life insurance companies and term life insurance specifically, it has also become quite common for consumers to contact QuickQuote looking for answers and reassurance.

Until the recent troubles experienced by AIG, the life insurance industry seemed insulated from the financial meltdown we have experienced. However, the AIG situation has taught us many important lessons. Perhaps the most important one our industry has learned is that a strong financial position does not in and of itself isolate a life insurance company from the negative impact of its parent company's actions. A life insurance company's name is quickly and easily associated with that of its parent company, in both good time and bad.
 
Case in point: American General Life Insurance Company, a subsidiary of AIG. American General is one of the strongest life insurance companies in America. The company has excellent management, solid financials and a reputation as a leading issuer of term life insurance among other financial products. However, the company has had to deal with the fallout of its parent company in ways most of us cannot imagine. Whether that is fair or not is open to debate. Many believe you have to take the bad with the good, and the company has taken its share of both over the years for its affiliation with AIG.

But let's get back to the focus of this blog ... life insurance consumer protection in times of financial crisis. We always advise our customers to consider only A-rated or better companies for their term life coverage. That by itself is not enough, however. What about after the purchase? What happens if American General or any other life insurance company 'goes under.'

Well, let's start by saying that is highly unlikely to happen. First and foremost, insurance is one of the most highly regulated industries in the nation. Insurance is regulated at the state level, and individual states impose reserve requirements on all life insurance companies. Those reserves are in the form of cash, and they offer the first layer of protection for your policy.

Second, if an A-rated life insurance company found itself in dire financial straits to the point of ceasing operations, the company would most likely look to either merge or sell itself to another life insurance company or financial organization. When this happens, the policies of the acquired company are typically assumed by the new owner which offers another layer of protection.

Finally, in the worst case scenario game, let's assume a life insurance company does fail and defaults on its policies. In this case, the individual states would step in once again and provide protection for those policies in the form of the State Guaranty Association. Funds from the association are used to pay the claims of insolvent insurance companies. Each state offers its own amount of coverage for life insurance policies. These range in amounts from a percentage of the coverage amount in some states to a high of $500k in others, with the most common amount being $300k. We will provide a chart in a related article on this topic soon and will update this blog to include the article link.

Please be sure to check with your state department of insurance to determine the amount of protection your state offers under this program. Our licensed representatives are also available to answer your questions about this program as well as specific life insurance company related questions.

We'll have more tomorrow on the importance of term life insurance in tough economic times.

]]> Tue, 11 Nov 2009 13:16:24 GMT Obama's Plans and Your Health Insurance So, we hear there was some kind of election that occurred this week?

Unless you live on another planet (and can access the Earth's Internet and read English) you know Barack Obama is now the President-Elect of the United States. We did some research to see how his stance on health care might affect your health insurance.

Obama has clearly indicated his primary health care related goal is to see to it that every child in America has health insurance. His plan includes providing tax credits to low income families with no access to health insurance through their employers. These families would in turn be required to purchase health insurance for their children through a newly established insurance exchange.

Obama would also propose tax credits for small businesses that provide health insurance. Existing children's health insurance programs and Medicaid would also be expanded.

Of course, health care reform has always been a significant challenge for any administration. It will be interesting to see if the chosen one is capable of overcoming the many obstacles that stand in the way.

Credits: barackobama.com, cnn.com ]]> Thu, 06 Nov 2009 13:16:24 GMT Financial Institutions Take Cover Under the TARP The Troubled Asset Relief Program (TARP) is the U.S. Government's $700 billion financial rescue plan that was recently signed into law by President Bush. Reuters has reported that as many as 1,800 financial institutions could soon apply for government funds. $250 billion has already been allocated, and of that amount, $125 billion will go to nine of the nation's largest banks with another $33 billion going to regional banks.

These financial institutions are all publicly held companies. It is still unclear whether TARP funds will be made available to privately held companies and life insruance companies. If so, it is reasonable to expect some life insurance companies will take advantage of the government funding, although not to the extent of the funds borrowed by AIG.

Credits: Reuters.com

]]> Wed, 05 Nov 2009 13:16:24 GMT Vote for QuickQuote! Get quotes on life insurance today or call one of our licensed representatives for assistance.

Regardless of your political affiliation, we strongly encourage all of our visitors to get out today and vote for somebody ... anybody! The freedom to exercise this most important right as U.S. citizens is what makes our country so great. This is a freedom not to be taken for granted, as it is also a freedom not enjoyed by billions of people throughout the world.

Regardless of the outcome of this election, let's all hope for unity and progress for all Americans.]]> Tue, 04 Nov 2009 13:16:24 GMT Female vs. Male Term Life Insurance Premiums Term life insurance premiums are lower for females than for males. While this probably comes as no surprise to many, we do periodically get questions from consumers about this. The simple answer is because of increased mortality in males. In other words, women live longer.

According to data from the U.S. Census Bureau, the projected life expectancy of a female born in 2010 is 81.4 years, while that of a male is 75.6. Although the gap has narrowed over the past twenty years or so, this still represents a difference of nearly five years.

The following chart represents the premium difference by gender for a typical 10-yr term life insurance policy with a $750,000 coverage amount.


 Age

Female 

Male 

 25 

$192.50 

$207.50 

 35

$200.00 

 $215.00

 45

 $432.50

 $440.00

 55

 $955.00

 $1,305.00

 65

 $2,017.50

 $3,602.50


While the difference in premium is rather small at younger ages (e.g. about 7 percent at age 25), it is significantly higher at older ages. For example, the difference at age 65 is a staggering 80 percent!]]> Mon, 03 Nov 2009 13:16:24 GMT Florida Modifies Foreign Travel Guideline for Life Insurance The use of applicants' foreign travel history and future plans in the underwriting of life insurance policies in Florida is an area we have blogged about in the past (here and here). As a refresher, the Florida Legislature passed the Freedom to Travel Act in 2006 and subsequently, The Financial Services Commission finalized Rule 690-125.003 in November of 2007.

The Florida law allows life insurance companies to only utilize foreign travel information in the underwriting of life insurance applications if the company can demonstrate travelers to a specific destination constitute an actuarially supportable class. However, at the recent request of one life insurance company, The Florida Office of Insurance Regulation has issued an order granting a variance for travel to Iraq and Afghanistan based on the "increased risk of death."

So this basically means Florida residents can expect to once again answer questions regarding their foreign travel plans on their life insurance applications. The order is set to expire in February of 2010.

]]> Fri, 31 Oct 2009 13:16:24 GMT End of Daylight Saving May Be Good For Your Heart Daylight Saving Time ends this Sunday, November 2nd. Of course, we turn our clocks back one hour early Sunday morning, resulting in an extra hour of sleep and an extended weekend (with the exception of Arizona and Hawaii).

It is well documented that the number of reported heart attacks peaks on Mondays. Researchers believe this is due to an increase in blood pressure experienced on Mondays in particular, as workers face a return to work. Factors such as a weekend of boozing, playing couch potato and work-related stressors are very likely causes of an increase in blood pressure in some individuals at the beginning of the week.

However, Swedish researchers recently discovered the number of reported heart attacks is actually lower on the Monday following the end of Daylight Saving Time. They found the rate to be approximately 5 percent lower than a typical Monday. The researchers obviously believe the correlation is due to the extra hour of sleep we gain by 'falling back' one hour. Conversely, the rate was 5 percent higher on the Monday following the end of Standard Time, or when we turn the clocks ahead one hour in the spring.

With blood pressure being one important factor in the underwriting of term life insurance, applicants with hypertension may want to consider this information and avoid completing their paramed exams early on Mondays. At the very least, pay close attention to your sleep patterns in the days leading up to your exam.

Credits: Seattle Post-Intelligencer

]]> Thu, 30 Oct 2009 13:16:24 GMT Fed Reduces Key Interest Rate to All-Time Low The Federal Reserve today cut its key fed funds rate by one-half a percentage point to 1.0 percent. That is the lowest the fed funds rate has ever been, matching the level last seen in June of 2004.

The Fed acknowledged the current economic downturn in its closely watched statement noting, "The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures."

In other words, consumers are not spending money according to normal spending patterns. With Election Day less than one week away, many economists believe we are getting close to the bottom of this cycle. The hope is the economy will see an upturn in activity with the election behind us and the holiday season on the horizon.

The federal funds rate is an overnight bank lending rate that affects rates on various types of loans such as variable-rate mortgages and credit card rates, among others. The rate may also impact rates on various investment and insurance products offered by life insurance companies.

]]> Wed, 29 Oct 2009 13:16:24 GMT