The Insurance Insider

Many of us have believed that having smoke detectors in the home will save us and our children should a fire occur. The video below provides shocking evidence that standard smoke detectors may be ineffective in waking children as they sleep…

Having smoke detectors that integrate parents voices telling their children that there is a fire in the house seems to be more effective. Of course, I recommend smoke detectors and a family escape plan for every residence. However, it appears we all should reexamine which types of detectors are most effective.

Individuals with chronic health conditions may mistakenly assume that they cannot obtain life insurance coverage. I’m here to tell you that coverage may be available, if you know where to look.

I’m referring to Graded Death Benefit policies available from life insurance companies.  Stated simply, such policies pay an increasing death benefit each year you’re insured with the company.  Let’s assume you apply for a $10,000 benefit policy. If death occurs in Year 1 when the policy is issued, the company will only return premiums paid. In Year 2, the  policy pays 50% of the death benefit, or $5,000.  The full death benefit ($10,000) is paid in Year 3 and every year thereafter. 

In Indiana we have little trouble providing life insurance coverage for our clients with chronic illnesses, depending on how they answer one health question on the application.

Here’s the question:

“Are you currently confined to a hospital or hospice, or have you been told by a medical practitioner that you have a terminal illness?”

If the answer to that question is “No,” the application will most likely be approved.

Consider the opportunity for individuals with illnesses or diagnoses such as lupus, diabetes, HIV positive, mental or nervous disorders, alcoholism, drug abuse, non-terminal cancer, stroke, or heart disease: although they may not qualify for life insurance in the preferred market, coverage is probably available.

For more information about life insurance for chronic illnesses in Indiana, please visit our website.

Gas prices seem to be on the decline following the hefty increases we experienced last summer.  And yet with all things cyclical, we can expect price hikes to appear at some point in the future. Don’t fall prey to some of the latest consumption reducing gimmicks, some of which are questionable at best, while others border on “scams.”

(NewsUSA) - With reports of dwindling oil reserves and volatile gas prices, the average motorist is looking for ways to save at the pump.

But Jeff Stokes, vice president of World Energy Solutions (symbol WEGY), an energy services company based in St. Petersburg, Fla., warns motorists not to fall prey to gas-saving scams that seem to crop up when gas prices peak.

“While some emerging technologies do look very promising, high gas prices always seem to bring out some less-than-reputable firms with the latest gas saving gadget,” Stokes said.

Automotive experts are warning consumers to be wary of these and other claims for enhancing fuel performance:

* Some products and procedures are patently fraudulent, such as magnets that are supposed to be placed on the fuel lines.

* Others claim to be the result of some “secret” technology suddenly available after years of suppression by carmakers.

* Some actually work, but minimally so. Fuel additives promise better mileage by removing buildup and deposits but so do the detergents already blended in gasoline.

* Still others actually decrease miles per gallon. “Vortex generators” promise to mix the fuel and air in such a way that it burns better, but the added turbulence causes incomplete burning and lower mileage.

At present there are no magic bullets. Sensible driving habits and regular vehicle maintenance are everyday ways to improve gas mileage.

Meanwhile, vehicle manufacturers and legitimate aftermarket companies are working on improving old technologies or developing entirely new ones.

Carmakers are introducing continuously variable transmissions and engines that use all cylinders under acceleration but step down to fewer cylinders during highway speeds.

And some companies are working on technologies that will stand between today’s gasoline engines and the hydrogen-powered cars of the future. World Energy Solutions, for example, is developing a hydrogen-oxygen system that could have both industrial and automotive applications. Currently in the prototype stage, the technology uses water to create hydrogen-oxygen gas that is then injected into the car’s combustion systems along with gasoline to enhance mileage.

For more information on this and other energy-saving approaches from World Energy Solutions, visit http://www.wesinc.net/.

There are some proven steps you can take to actually reduce fuel consumption: make sure your tires are inflated to the proper PSI, avoid excessive idling, and open those windows rather than run the air conditioner on hot summer days.

You may have heard that drivers under the age of 25 are unable to rent a car.  We’re beginning to see a change in this trend, although it does come at a cost:

(NewsUSA) - Based on the commonly held belief that people in their early 20s are more prone to risky behavior while driving, many car rental companies have restricted renting cars to people under the age of 25 for years.

But with increased competition in the car rental market forcing companies to re-evaluate many long-held assumptions, some car rental companies are relaxing their rules to allow drivers under 25 years old to rent vehicles.

Unfortunately, to many young drivers, this comes at a cost.

During a four-day vacation with three friends to Miami, Eugene Minkin, 23, rented a vehicle from Alamo Rent A Car. Minkin was informed of a $30-per-person, per-day fee that he had to pay due to the fact that he and his passengers were all under 25. In addition, he had to purchase insurance and pay the usual four-day rental rate. The total for the rental came to over $650.

Despite the high cost, Minkin felt fortunate to be able to rent a car, where in recent years such transactions would not have been possible.

However, for some companies, renting vehicles to drivers under 25 is not a new development. For instance, at most of its rental branches, Rent-A-Wreck has welcomed young drivers for years.

“By the early ’90s most of our locations were renting to drivers under 25 years of age,” said Jason Manelli, director of public relations for Rent-A-Wreck. “We now consider ourselves to be the experts on rentals to younger drivers, with many of our locations even renting to drivers 18 to 21 years old.”

Typically, drivers under the age of 25 who are renting a vehicle from Rent-A-Wreck must have automotive insurance coverage, a credit card in their name and must make arrangements to rent a vehicle several days in advance so references and insurance coverage can be verified.

Some Rent-A-Wreck locations even run credit reports on young drivers and look at their driving records. These extra considerations help to weed out the drivers who have earned their 20- to 24-year-old counterparts a bad reputation in the rental car industry, allowing responsible young drivers to get behind the wheel of a rental car.

To learn more about Rent-A-Wreck, visit www.rentawreck.com.

Evidence suggests that homeschool students exhibit levels of maturity and responsibility exceeding peers of the same age. Unfortunately, the insurance industry has lagged behind others in addressing the unique qualities of homeschoolers. 

I’m speculating here, but I believe this is due to the variations in state law and reporting requirements for homeschooling.  It may be difficult for companies to identify the cream of the crop of this group. Some states require third party verification of a student’s progress or parents must first obtain a teaching certificate before they may homeschool their children.  Unlike most other states, Indiana is perhaps the most condusive to empowering parents to educate their own children and the least restrictive in its requirements.

My industry’s approach tends to be ”one-size-fits-all.” If a company cannot identify a factor that can be applied to all markets (i.e.,. every state in which they do business), they won’t bother.

It is encouraging to see a change in this trend.  Family-friendly, regional companies like Indiana Farmers Mutual are thinking outside the box and now reward qualifying homeschool students with the same 10% good student discount their peers in public and private school can receive.

This is one of many benefits of insuring with a regional insurance company like Indiana Farmers.  Since they only do business in Indiana, they are able to address the specific needs of this market.  They are not constrained by the one-size-fits-all standard that many national insurance companies face.

Kudos to you Indiana Farmers.  It is refreshing to see such industry leadership coming from an company in Indiana.

(Full disclosure: My insurance agency has represented Indiana Farmers Mutual since 1990 and my wife and I homeschool our four children.)