Could you survive financially if you fell ill? - December - 2011 - Which? News

Could you survive financially if you fell ill? - December - 2011 - Which? News


New Unum app helps you work out protection needs
09 December 2011

An income protection insurance policy could help you survive financially if you're off work for a long period due to sickness or accident

Income protection provider Unum has launched a new app which enables users to calculate how long they'd be able to survive financially if they were unable to work due to illness or injury.
Nine out of 10 people don't have a back-up plan to support themselves if they lose their income due to illness or injury. Many will rely on credit cards, loans or support from family or friends and could benefit instead from buying an income protection insurance policy.
How the income calculator works
The online Facebook-based app uses average benefits and household expenses figures and asks for a few key personal facts and figures to provide a rough calculation of how long people would be able to stay afloat financially if they lost their income.
Which? protection expert Martyn Saville commented: 'This app really brings home just how quickly savings can be used up if you can't work for a sustained period of time. For example, if you have £3,000 in a savings account, pay rent or mortgage of £800 a month and have average household expenses each month, your money would last just one month, even after factoring in state benefits.
'In the current economic climate of rising prices and reducing state benefits, it's very difficult to build up a sufficient nest egg to see you through a prolonged period of illness or recuperation after an accident. Protection products such as short-term income protection and standard income protection policies could help see you through, avoiding the spectre of major debt.'
More on this...
Why don’t we take out income protection insurance? - Have your say with Which? Conversation
Understanding protection insurance - we explain the best ways to protect your life and income
Income protection - we review the best income protection products available in the UKRead more: http://www.which.co.uk/news/2011/12/could-you-survive-financially-if-you-fell-ill-273941/#ixzz1g6eOFXMr Consumer Champions Which? Under Creative Commons License: Attribution Non-Commercial
Thank you to : Which Works for You, some great information for anyone
http://www.which.co.uk/news

How do the Celebrity's Prepare?

Check out this blog by  US News Money, Alpha Consumer, about a new book out on Estate planning for the stars!
 Probate Wars of the Rich and Famous, by estate lawyer Russell Fishkind

Some tips:  Complicated family situations, guardians, not updating your estate, see it all from the Celebrities!

What does the summary say?

The lesson: “Plan, plan, plan,” he says.

Who would figure?

http://money.usnews.com/money/blogs/alpha-consumer/2011/12/06/6-celebrity-estate-planning-errorsand-tips

Cutting Life Insurance From Budget Is A Bad Idea

This is an American CBS Boston News article today.  Keep in mind it is US so there are different policies there than in Canada we have a different premium quoting website but interesting article or you can watch the news video on the link:

Cutting Life Insurance From Budget Is A Bad Idea

By Paula Ebben, WBZ-TV

October 10, 2011 2:25 PM

BOSTON (CBS) – Life insurance is something we should all have, but it often gets cut from the family budget when things get tight.

In fact, the number of families without a life insurance policy is at a 50-year low which can create a risky situation.

Many people question whether they really need to get a policy.

Financial advisor Ray Martin responds, “I think the way to think about it is, if I passed away, and my paycheck passed away, how would my family or the people who are dependent on me, and my paycheck, make it by every day?”

In a survey, 40-percent of households with children said they would have trouble paying their bills if the family’s primary breadwinner suddenly died.

Although life insurance can be confusing, there are a few basic guidelines for most people to follow.

The first challenge is to determine how much coverage to buy.

Martin said, “You want enough insurance to pay off all of your debts. That can be a mortgage, student loans, or car loans. Then you will also want an amount of money that can replicate your income.”

The policy should be large enough to cover future expenses, such as college tuition or retirement funds for a spouse.

Financial experts suggest you consider term insurance first.

Polices cover a set period of time, usually 10, 20, or 30 years. Term is the most affordable type of life insurance.

Martin explained, “If you are a male and you’re 35-40 years old, half a million term insurance policy, a 20-year term, can cost $400-$600 a year.”

Policy prices vary so it is wise to shop around for the best deals.

Sites like accuquote.com and insure.com can be very helpful. You can also ask an insurance agent to get quotes from several companies.

Keep in mind you will pay less if you are young and healthy.

Martin advises, “As soon as you are thinking about the topic, get on it and do it. Don’t wait because you are in a good health, because you’re life can change on a dime.”

Another type of life insurance is called whole.

It is considerably more expensive than term, but it is considered an investment because it builds equity.

The Rangers even have a PLAN B!

Newberry: Rangers' backup plans worked

• By Andy Newberry
• Times Record News
• Posted September 26, 2011 at midnight

In almost any walk of life, one of the most important things is Plan B.
The best-laid plans don't always work out perfectly. Sometimes you miss a turn and an alternate route is preferable to turning around.
When the Dallas Cowboys didn't call on draft day, we had to find another job. When my wife didn't land a rich movie star, I became a good Plan B.
Plan A may be better, but it's not often realistic.
The Texas Rangers on the surface had to have pitching ace Cliff Lee last winter. He pitched them past the Divisional round of the playoffs for the first time in their history. He helped them beat the hated Yankees.
There were no other aces available.
Plan A was obvious and all eyes were on Captain Cliff last winter. But Texas' money wasn't enough and he went to the Phillies. At least it wasn't to the Yankees.
My fear, drawn from many years of inept Texas management, was that Carl Pavano would be on the next plane to Arlington. Kind of like when Cy Young winners Randy Johnson and Roger Clemens didn't work out, the Rangers settled for Chan Ho Park.
That's Chan Ho as in Oh-No he's not pitching again tonight, is he?
But in the winter of 2010, Nolan Ryan and Jon Daniels had a real Plan B. They saw the pitching market beyond Lee wasn't worth marrying, at least on those terms.
They had also watched Michael Young play third base. And unlike most of their fans who wouldn't know the difference between Young and Brooks Robinson, the Rangers had also seen Adrian Beltre play third.
So Beltre as one of the top free agents available, although far from a bargain, was brought in to help the offense and the defense. Check and check.
Beltre should have been Plan A for somebody (yeah, that's you Anaheim). He is by any standard the best defender at the hot corner once again and he blasted his 30th home run on Sunday. He's also got 101 RBIs and a .293 average.
So much for the fact that he couldn't hit except in contact years! Sure, he was injured again, but the Rangers wisely kept Young and had enough depth to overcome it.
The new Plan A for the starting rotation was Neftali Feliz. The Rangers' young closer gave it a shot in spring training, but just doesn't have enough, sometimes any, reliable pitches.
So Plan B, or maybe C, was Alexi Ogando moving to the rotation. That looks like pure genius now.
Ogando went 13-8 with a 3.54 ERA and made 29 starts.
C.J. Wilson filled the role of ace, even if he's not quite Cliff Lee or Justin Verlander. But with guys like Ogando and Matt Harrison stepping up, the Rangers didn't have to have the richest ace pitcher as their depth paid off for them.
Panic was not part of the equation when Lee left for Philly. And it wasn't an option when Michael Young asked for a trade.
Ron Washington may not always come across as having the sense of urgency that fans in a football state want to see. But his famous "that's how baseball go" plays well in a clubhouse and keeps the panic button away.
It's the kind of confidence that allowed them to jump at the chance to bring in Mike Napoli for a reliever with closing experience.
Somehow, some way the Rangers would find a Plan B in the eighth inning. That help arrived in July.
Signing Lee might have been easier, but Ryan and Daniels won this AL West title with a perfectly executed Plan B.

© 2011 Times Record News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Thank you to Times Record News- The Rangers even have a Plan B!


http://www.timesrecordnews.com/news/2011/sep/26/rangers-plan-a-b-c-worked/

Are You Ready If Disaster Were To Suddenly Strike?

Reported by: KPSP Local 2 News

Email: news@kpsplocal2.com

Print Story

Published: 9/21 5:16 pm

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Updated: 9/21 6:19 pm

These are few things that should be in an emergency kit

How ready would you consider yourself if disaster were to strike right this moment?
Many of us don't have a backup plan in case a disaster strikes. In fact, during the blackout a couple weeks ago, even some agencies weren't fully prepared.
"It was very scary. Especially because I have a 5-year-old and a 9-month old and I wasn't prepared at all- no emergency kit or anything like that," said Eva Ibaora of Thermal.
That's why agencies such as local fire departments, the Red Cross, and experts from Loma Linda University came together at the Rummonds Community Center in Thermal Wednesday to talk about disaster preparedness. It was the first meeting of its kind for the city.
Experts say remote areas such as Thermal have to especially be ready in case of a disaster.
"We're trying to target this area because it is a low priority area. In case of disaster, we would probably be the last community to get any type of response out here," said Mike Castaneda, President of the Thermal Chamber of Commerce.
That's why instead of packing enough food and water for three days, people living in areas like Thermal should pack for about 7 to 10 days.
According to the Centers for Disease Control and Prevention, it takes just four easy steps to be ready for a disaster. So, to learn more on how you and your family can be prepared, click here.

Copyright 2011 Desert Television LLC All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Are You Ready If Disaster Were To Suddenly Strike?

Baa baa black sheep, are you in the will?

http://www.ctv.ca/generic/generated/static/business/article2172440.html

CTV.CA

Baa baa black sheep, are you in the will?

ROMA LUCIW - The Globe and Mail

It is the kind of estate-planning drama that regularly plays out in the office of lawyer Barry Fish: A mother has two grown children. The daughter is her “good child” while the son is insulting, uncaring and estranged.
Despite the son’s black-sheep status, the mother wants to make peace and won’t cut him out of her will. She agonizes, and eventually decides to leave 95 per cent of the estate to her “good” daughter, whom she makes executor, and the remaining 5 per cent to her “bad” son.
“The glitch is that the bad son, once he finds out that he has a piece of the action, drives the good daughter crazy,” says Mr. Fish, who has been practising estate law for 38 years in Thornhill, Ont.. “He demands a full accounting of the whole estate, challenges everything, and creates no end of difficulty for her.”
Mr. Fish says the mother would have been better off writing the son a cheque for $10,000 and leaving the estate to her daughter. The son “is not going to get far challenging that in court,” he says.
Estate planning is an emotionally charged process, but having a black sheep in the family makes it vastly more complicated.
With more money at stake, and a growing focus on proper estate planning, what was once only an issue for the well-off has extended to older Canadians of all financial backgrounds. A huge transfer of wealth is soon to occur in Canada, with one estimate projecting that baby boomers will inherit $1-trillion over the next 20 years.
“Think about 10 families you know, and there will most likely be at least one black-sheep child in one of these families,” says Mark Goodfield, a tax partner at Cunningham LLP in Toronto and author of the Blunt Bean Counter blog.
Some fall under the classic definition of black sheep – a son or daughter who has embraced values the parents don’t approve of. But for the purposes of estate planning, Mr. Goodfield says, there are other kinds: the person who is financially irresponsible; the drug or alcohol addict; the person who has a partner the parents strongly dislike.
“A black-sheep child can be one that just spends crazily so parents have to deal with them separately in their will,” he says.
When there’s a family business, a son or daughter who doesn’t work for it may be considered the odd one out.
There are a myriad of issues parents struggle with: Do they reward the “good” child with a bigger inheritance? Or do they leave more money to the “bad” child, since they will need it more? What if he or she is married to someone they don’t trust? Sometimes, the parents disagree between themselves.
Of course, there is no rule that parents have to include all or any of their children in their wills. In the case of estrangement, some parents choose to cut a child out completely.
(In that case, it is important to “bullet-proof” the will by officially verifying the parent’s medical capacity, Mr. Fish says. To avoid a challenge based on undue influence, the favoured child should not be present when the lawyer and parent are working on the will.)
“From what I have seen, people are emotional powder kegs,” Mr. Fish says.
In most situations, parents would like to be even-handed.
“As a starting point, most parents want to treat their children equally,” says Elaine Blades, director of fiduciary services at Scotia Private Client Group. “At the very least, they want to be fair. I tell clients that fair and equal are not always the same thing.”
The more marriages and children you throw into the picture, the more complicated it gets, she says.
One solution is to create a testamentary trust, which will ensure the black-sheep child will receive an inheritance once the parent dies. By placing specific conditions on the trust, parents can control how and when the money is spent.
“There are trusts that you can set up where the money can only be used to pay for education,” Ms. Blades says. “Or you can make sure that if the child files for bankruptcy, you will not end up paying the creditors.”
Sometimes parents choose to take into account that they have spent more on one child during their lifetime – as in the case of a professional student – and leave an unequal distribution at the time of death to make up for that.
Although parents have no obligation to treat their children equally, many feel guilty if they do not, says Ms. Blades. Some worry about the optics of giving one child their share outright while putting another’s in a trust.
One way around that is to put both children’s inheritance in a trust but place more stringent conditions on the black-sheep child’s access to the money.
“Parents don’t want to make it look like they love one child more than the other,” Ms. Blades says. “So this is a satisfying solution. At first glance the distribution looks equal, but the money in one child’s can in effect be a lot harder to get at.”
Some parents feel responsible for how their black-sheep child turned out. “There can be tremendous guilt from the parents. Sometimes they feel obliged to put something in the will saying why they included or excluded them,” Ms. Blades says.
Mr. Fish says parents can unknowingly create problems for the “good” child by favouring him or her in their will. “The biggest challenge is to create peace for the favoured child: to come away knowing you have made their position as free from conflict as possible.”
Making one child the trustee of the other’s inheritance, or the sole executor of the will, often ruins relations between brothers and sisters, he says.
“I have seen children beg their parents not to be harsh because they have to have a relationship with their sibling.”
One solution is for parents to “thin out” their estate, basically giving children some of their inheritance while still alive, Mr. Fish says.
Although minimizing the tax hit is a key consideration when estate planning, Mr. Fish cautions against emphasizing that alone. .
“Do not create a situation which is going to create turmoil for those who follow you by giving them a tax advantage,” he says. “The prevailing consideration should be how life will be for those you leave behind. I have seen people’s whole lives altered by a failure to address that.”

Roma Luciw is the web editor of the Globe Investor personal finance site and writes for the Home Cents blog.

Where there's a will, there's protection of your possessions

Please see this article in the Vancouver Sun in Aug 2011
Where there's a will, there's protection of your possessions