June 23, 2008
FARMERS INSURANCE MINUTE
In today’s insurance minute, I will try to give you as much information as I can about importance of Life insurance that is very often undermined. In today’s world, Life insurance is important, if not THE MOST important insurance anyone should have since it is protecting the most important part of your life, YOUR FAMILY !
What do I need to know about Life Insurance?
Our life insurance information explains the nuances of life insurance. Find answers to the most common life insurance questions below.
1. How much Life insurance coverage should I purchase?
If you have a family, many experts suggest that you need an amount equal to 5 to 10 times your annual salary. However, many people own higher coverage to provide more income for their family.
2. How can Life insurance funds be used ?
Your life insurance funds can be used for a number of needs, including:
- Any needs after the time of death, such as final illness expenses, burial costs and estate taxes.
- Funds for a readjustment period, to finance a move, or to provide time for family members to find a job.
- Ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement.
3. What is the difference between term and permanent Life insurance?
Term life insurance provides you with coverage for a specific period of time. It pays a benefit only if you die during that term. Some term insurance policies can be renewed at the end of the period. Premium rates may increase at each renewal date. Because term insurance premiums are generally lower than permanent insurance premiums, you can usually afford a higher level of coverage. Term insurance is good for responsibilities that will diminish or end over time, for instance, mortgages or car loans.
Permanent insurance is designed to be a lifelong policy and is known by a variety of names. As long as you pay the necessary premiums, the death benefit will always be there. These policies are designed and priced for you to keep over a long period of time.
In addition, permanent life insurance policies can build cash value over time. This is money that can be borrowed against and, in some cases, withdrawn to help meet future goals. Please note that accessing your cash value may reduce the death benefit and increase the risk of lapse.
4. What’s the difference between standard and preferred rates ?
Most often preferred rates require you to be in excellent overall health. Specifically, that means you must:
- Be within strict limits on height, weight, cholesterol, and blood pressure
- Have no family history of any significant health impairments
- Not use tobacco in any form.
- Have no history of drug or alcohol abuse
- Not be engaged in any hazardous activities.
5. Do I have to take medical exam to qualify ?
In most cases, an exam is required. If so, we will pay the costs and have it done at a time and place convenient for you – often right in your home.
6. Will my policy ever be canceled for health reasons?
As long as you keep your premiums current, your policy will never be canceled because of a change in your health, and you will not be asked to provide evidence of good health in order to renew your policy each year. However, you have the right to cancel your policy at any time.
7. What happens if I become disabled ?
Many policies include an optional rider that provides a "waiver of premium" for total disability. In the event you become totally disabled (as described in the rider) for a certain period (typically six months or longer), then Farmers will pay your premium for you until you are no longer disabled.
8. Should I get coverage for my spouse and/or children ?
Coverage for both spouse and children can be a very good idea. The financial strain on a family after the loss of a spouse can be significant, even if the deceased wasn’t earning an income. Often the surviving spouse will want to take time off work or change jobs in order to spend more time with the children. Coverage for children is also available to cover final expenses. It can also guarantee insurability for the child’s future.
Next week, I will be going over different types of the Farmers Life insurance policies.
Your Farmers insurance agent
Jay Ristic
Farmer insurance specialist
916.549.6563
Filed under Blog by jay
INSURANCE MINUTE
In the next few weeks I will try to give you as much information as I can about importance of Life insurance that is very often undermined. In today’s world, Life insurance is one of the most, if not THE MOST important insurance anyone should have since it is protecting the most important part of your life, YOUR FAMILY !
The following topics will be examined :
1. What do I need to know about Life Insurance?
2. How can Life insurance funds be used ?
3. What is the difference between term and permanent Life insurance?
4. WhaWhat’s the difference between standard and preferred rates?
•
Do I have to take a medical exam to qualify?
•
Will my policy ever be canceled for health reasons?
•
What happens if I become disabled?
•
Should I get coverage for my spouse and/or children?
•
When I send in my application, should a check be included?
Filed under Blog by jay
June 16, 2008
Keeping you updated on the market! June 16, 2008
Keeping you updated on the market!
For the week of
June 16, 2008
MARKET RECAP
Last week, a leading gauge of U.S. home sales showed surprising strength. April pending home sales rose 6.3% from March to an 88.2 index in April, the highest level in six months, the National Association of Realtors reported.
More encouraging economic news was forthcoming from the retail sector, where sales rose twice as much as forecast in May, as Americans snapped up electronics, clothes and furniture, evidence that they aren’t hoarding their tax-rebate checks or using them just to buy gasoline. (Indeed, sales excluding gas increased 0.8%.)
Still, signs of economic weakness persist. Bank repossessions more than doubled and foreclosure filings rose 48% in May, according to RealtyTrac, which also reported that one in every 483 homeowners lost their house to foreclosure or received either a default warning or notice that their home would go up for sale at auction.
A surge in consumer prices was another sign of continued weakness. The consumer price index increased 0.6% in May, the most since November, after a 0.2% gain the prior month. The recent surge in oil and food prices has caused traders to bet that the Federal Reserve will increase interest rates as soon as September, following seven rate reductions in the past nine months.
Increasing inflation concerns also sent mortgage rates higher last week. The prime 30-year fixed-rate mortgage rose 26 basis points to 6.52%, while the prime 15-year fixed-rate mortgage rose 28 basis points to 6.12% and the 5/1 adjustable-rate mortgage rose 27 basis points to 6.07%, according to Bankrate.com’s weekly survey.
|
Economic |
Release |
Consensus |
Analysis |
|
Housing Market Index |
Mon. June 16, |
20 |
Important. The index has been building a base over the past month, suggesting the worst might be over for homebuilders. |
|
Housing Starts |
Tues. June 17, |
975,000 |
Important. New homes sales are stabilizing on heavy seller discounts. |
|
Producer Price Index |
Tues. June 17, |
All Goods: 1.2% (Increase) |
Very Important. Energy prices could ignite another round of inflation. |
|
Industrial Production |
Tues. June 17, |
0.1% |
Moderately Important. The expected decrease should have little impact on credit markets. |
|
State Street Investor Confidence Index |
Tues. June 17, |
82 |
Important. The recent rise in the index suggests investors are more willing to take risks. |
|
Mortgage Applications |
Wed. June 18, |
None |
Important. A 10% spike in applications means lower home prices are enticing buyers into the market. |
|
Leading Indicators |
Thurs. June 19, |
0.1% |
Moderately Important. The indicators aren’t expected to show any change in the current economic outlook. |
|
THANK GOODNESS FOR BOTTOM-FEEDERS A recent report by Lehman Brothers estimates that foreclosures will account for 30% of national home sales this year, as another 1.2 million foreclosed single-family homes enter the market. The large Wall Street firm estimates that foreclosed properties, which typically sell for about 20% less than other homes, will depress overall prices another 6%. The Lehman Brothers report is discouraging on first glance, but not so much on subsequent glances. The glut of foreclosures and sales discounts will be temporary, thanks in large part to a growing number of bottom-feeding investors. Financial news publications are featuring more stories of enterprising investors earning a living flipping foreclosed houses. These same outlets also note that more large institutions are entering the market. On that front, Blackstone Group recently raised $11 billion to make bulk purchases of residential distressed property. More investors are also sniffing around beat-up homebuilders’ and mortgage lenders’ stock. ESL Investments, a well-respected firm that controls $11.6 billion in investments, recently began picking up shares in some of the housing and mortgage sectors’ hardest-hit stocks, acquiring shares of Centex Corp., KB Home, CIT Group and PHH Corp. On the one hand, foreclosures are rising, but on the other hand more investors are snapping up distressed properties. The other hand is bringing stability to the market, which will in turn produce more buyers and higher prices. |
Filed under Blog by Elite Realty Services
June 9, 2008
Keeping you updated on the market! June 9th 2008
Keeping you updated on the market!
For the week of
June 9, 2008
|
MARKET RECAP What began as a week with credit and equity markets anticipating an economic rebound and a forthcoming rate increase ended in heightened concerns over a full-blown recession and the prospect of an interest-rate cut. Early in the week, the general mood was that the economy was stabilizing and that the Federal Reserve could be positioning itself to support an over-depreciated dollar. In a speech last Monday, Fed Chairman Ben Bernanke said that the Fed is “attentive” to the currency and will guard against a jump in inflation expectations. Markets interpreted his remarks to mean that the Fed was finished lowering rates. In fact, many market participants began betting that the next rate change would be an increase. But market sentiment did a 180 by week’s end. First came the news that people are losing their homes at the highest rate on record in the first quarter of 2008. About 2.5% of home mortgages are in foreclosure, while another 6.4% of home mortgages are delinquent, but not yet in foreclosure, according to the Mortgage Bankers Association. Aggregated, that means that almost 9% of mortgages nationally are in trouble. The good news, slight as it might be, is that the trouble does not appear to be caused by the widely anticipated "rate shocks” caused by resets. According to the American Securitization Forum, an industry trade group, a borrower with a typical-size subprime ARM could expect payments to increase about $70 a month if it reset now, compared with about $450 a month if it had reset in December. The second blow was delivered by the Labor Department, which reported that a greater-than-expected 49,000 jobs were lost in May, pushing the unemployment rate up to 5.5%, the highest it’s been since October 2004. A loss of jobs is one of the criteria used by the National Bureau of Economic Research to determine when recessions begin and end. |
|
Economic |
Release |
Consensus |
Analysis |
|
Pending Home Sales Index |
Mon. June 9, |
83 |
Important. This leading indicator is expected to hold steady despite recent signs of a deteriorating economy. |
|
International Trade |
Tues. June 10, |
$59.3 Billion |
Moderately Important. The deficit will show a slight increase because of higher energy prices. |
|
Mortgage Applications |
Wed. June 11, |
None |
Important. Purchase applications fell to a six-year low as more buyers wait for home prices to stabilize. |
|
Beige Book |
Wed. June 11, |
None |
Important. Markets expect to see heightened inflation concerns from the Federal Reserve. |
|
Retail Sales |
Thurs. June 12, |
0.4% |
Important. Though sales are expected to increase, most of the gain is likely due to higher food and energy prices. |
|
Import Prices |
Thurs. June 12, |
0.2% |
Important. Lower demand is keeping import prices in check. |
|
Business Inventories |
Thurs. June 12, |
0.4% |
Moderately Important. Slowing growth in inventories suggests slowing consumer demand. |
|
Consumer Price Index |
Fri. June 13, |
All Goods: 0.4% (Increase) |
Very Important. An unexpected increase in consumer prices could send interest rates higher. |
TO CUT OR NOT TO CUT?
A sluggish economy and a spike in foreclosures suggest an interest-rate cut is in order, but a weak currency and creeping inflation suggest a rate hike is in order (rate increases make a currency more attractive vis-à-vis other currencies). What is the Federal Reserve to do?
Clues will be forthcoming in the Fed’s Beige Book, to be released on Wednesday. It will likely prove that the Fed’s greater concern is inflation, but that could easily change if Friday’s consumer price index shows consumer prices rising at an intolerable rate.
Either way, borrowers can expect a spike in rate volatility. Gaming interest rates – an already difficult endeavor – will become that much more difficult in coming weeks. Bankrate.com’s survey showed that mortgage rates increased across the board through most of last week, but the survey was released before Friday’s employment report, which could just as easily drop rates this week.
So what’s the longer-term rate trend that’s likely to emerge? Unfortunately, it’s impossible to tell at this point because of the schizophrenia of recent economic data releases.
Filed under Elite News & Updates by Elite Realty Services
June 3, 2008
Keeping you updated on the market! June 2, 2008
Keeping you updated on the market!
For the week of
June 2, 2008
|
MARKET RECAP A funny thing happened on the road to recession: We got lost. The economy plowed ahead at an unexpected 0.9% pace in the first quarter of 2008, according to data released by the Commerce Department last week. The new reading on gross domestic product was an improvement from the initial growth estimate for the January-to-March quarter, raising hopes that the country can dodge a full-blown downturn. Continued economic growth is inspiring, particularly when considering that the fallout from the housing meltdown has been a huge drag on overall economic growth. But it’s a drag whose tension appears to be abating. Housing demand in many areas of the country is increasing. In California, homes sales increased 2.5% in April, following 30 consecutive monthly declines, the California Association of Realtors reported. Meanwhile, the National Association of Realtors reported that sales jumped 20% or more in April in hard-hit areas like Las Vegas, Fort Myers, Florida, and Riverside, California. A number of factors are at work here, none more important than lower prices luring buyers into the market. Foreclosure auctions are doing their part as well. Many banks holding repossessed properties are so eager to unload them that they are giving buyers discounts of as much as 40%, according to data gathered by Economy.com. Of course, bargain-basement prices will only last so long before the inventory is cleared and prices begin to rise. Stable mortgage prices could also entice buyers into the market. On that front, mortgage rates continue to trade within a relatively narrow band. Last week, the prime 30-year fixed-rate mortgage averaged 6.2%, the prime 15-year fixed-rate mortgage averaged 5.8%, the 5/1 adjustable-rate mortgage averaged 5.7%, and the 30-year fixed jumbo mortgage averaged 7.4%, according to Bankrate.com’s latest survey. |
|
Economic |
Release |
Consensus |
Analysis |
|
Construction Spending |
Mon. June 2, |
0.6% |
Important. Residential spending remains weak, but other areas are showing signs of strength. |
|
Factory Orders |
Tues. June 3, |
0.2% |
Moderately Important. Manufacturing continues to grow despite reduced consumer spending. |
|
Mortgage Applications |
Wed. June 4, |
None |
Important. Stricter underwriting guidelines continue to restrict activity. |
|
U.S. Productivity (Revised 1st Quarter 2008) |
Wed. June 4, |
2.6% |
Important. Previously reported gains are expected to show additional improvement. |
|
Employment Situation |
Fri. June 6, |
Unemployment: 5.1% |
Very Important. A better-than-expected employment report, though good for the economy, could send interest rates higher. |
|
Wholesale Trade |
Fri. June 6, |
0.6% |
Moderately Important. The expected increase is another sign the economy could avoid a full-blown recession. |
|
Consumer Credit |
Fri. June 6, |
$7.6 Billion |
Moderately Important. This volatile credit measure should have little impact on credit rates. |
|
AN APPETITE FOR RISKIER LOANS Lower home prices stimulating demand is good news, but cautious mortgage underwriting standards isn’t. We’ve probably moved too far to the cautious side on the latter, which is understandable given that commercial banks across the nation have had to recapitalize to the tune of $100 billion, due in large part to bets gone awry on subprime-mortgage investments. Unfortunately, overly-strict underwriting standards are preventing legitimate buyers from entering the market. Thankfully, the purse strings will eventually loosen. The key will be the return of non-agency sponsored mortgage-backed securities. When the private sector returns to the MBS market en mass, mortgage originators will be less subjugated to the decrees of Fannie Mae and Freddie Mac. That will mean more choice for borrowers and more lending opportunities for originators. The worst of the subprime mess is probably behind us and investors have shown an increased willingness to invest in banks and other lending institutions. It’s possible we could see the purse strings loosen as early as the fourth quarter. —————————————————————————————————————– |
Filed under Blog by Elite Realty Services
