A recent survey by LIMRA International shows that one third of adults in the U.S. have no life insurance.  Those with coverage, the study also showed, have far less than most experts recommend for a secure financial future for their families.  For most consumers, buying life insurance can be a tough decision, and myths about life insurance can confuse and delay consumers from purchasing a policy, potentially forcing their families to make financial sacrifices.

One of the many benefits of life insurance is to help protect loved ones who depend on you financially.  To determine how much life insurance you need, assess your current and future financial obligations and the income that your loved ones count on to meet those needs.

Life Insurance provides more than a tax-free cash payout upon death; it also helps provide peace of mind that your loved ones will be covered.

Common myths about life insurance.

• Myth:  I am single.  Most single people don't have a pressing need for life insurance because no one depends on them financially.  However, there are exceptions -- for instance, if you're providing financial support for aging parents or siblings.

• Myth:  I don't work.  Stay-at-home parents often make significant financial contributions to a family's budget by providing such things as childcare, transportation and housekeeping services that could add up to tens of thousands of dollars a year.  Could a single surviving spouse afford to pay for these servies on his or her own?

• Myth:  Group life provides all the coverage I need.  Group life insurance is a great component of a life insurance program.  However, the coverage offered is not always enough to take care of your beneficiaries and usually offers limited coverage options.  Group policies are generally  non-transferable once you leave your current job.

• Myth:  A permanent policy is better than a term policy.  The kind of coverage that's right for you depends on yourunique circumstances and financial goals. 
  The term policy generally offers the greatest coverage for the lowest initial premium.  A permanent policy may work best ifyou anticipate a need for long-term protection.

 As always, my staff and I are always available to handle question regarding any of your insurance needs

As the landscape of insurance has been changing over the years, my clients have been understanding the advantage of using higher deductibles on their Homeowners Insurance. In the last several years the midwest has sustained hail storms and flooding that we had not seen in many years. As a result, Homeowners Insurance premiums have increased significantly. My clients have found a great advantage in raising the deductible to $1,000 or even higher. In this way, the small claims do not get filed, which also ultimately can result in claim surcharges and the loss of claim free discounts. The savings on the Homeowners Insurance can also be a few hundred dollars a year by raising the deductible by $500, from $500 to $1,000. It only makes sense, as in a few years you save the difference even if you do have a claim. Many of my clients have been insured with me for 25 and 30 years and never had a claim on their Homeowners Insurance. As always, call your agent on advice, and how your particular situation could be improved with the use of higher deductibles.

Recently one of my clients traded in a Honda Accord for a Honda Civic thinking they would save money. When I changed cars on the policy we realized the 6 month premium would go up $100 rather than go down. Some smaller cars are less expensive to purchase, but more expensive to insure because of average repair cost as well as the high percentage of claims we have that are attributed to that type of car. We are more likely to have more claims on a Honda Civic if the type of person that buys that type of car has a greater likliehood of having an accident....for example teen drivers. Hybrid cars are especially more expensive to insure because of repair costs involved on that type of vehicle. As always, check with your insurance agent for a price quote before purchasing a car.

Long Term care insurance is something people generally know about, and talk about.....but seem to not want to act on purchasing. Why is this? I imagine it makes someone think of their own mortality, and quite frankly that is not a pleasant topic for us. As an Insurance Agent, I have witnessed many cases time after time where the need for Life Insurance or Long Term care arises, and the family is without it. This is truly heartbreaking. 

I truly believe my clients want to be told about products that will help eliminate the tragedy and grief that arises without them, but first and foremost, I believe people have to know and understand exactly what the tragedy and grief involves, so they can be motivated to become educated on the subject, and understand the need.  

Everyone knows about skyrocketing Healthcare costs, and the fact that people are living longer. Baby Boomers are starting to age into their 60's and diseases such as Alzheimer's disease are on the rise. For every 1,000 americans over 65, 700 will need some form of Long Term Care. The  average LTC stay is 835 days at an average cost of $212 a day.

Medicare pays only a small portion for the first 100 days. LTC is also not only for the elderly, as 40% of claims are made by people between the ages of 18 and 64.

Medicaid will only pay for LTC costs if you have no assets, but it is not the type of care you would want for yourself or your family. You have no control over the facility you go to, or the quality of care you receive.

By 2010, it is projected that 13% of people over 65 will have some form of Alzheimer's. Without the financial resources or LTC insurance, the role of caregiving falls back on the family, often requiring people to take a leave of absence or quit their jobs in order to care for a family member. Alzheimer's patients require 24 hour care and supervision. This combined with sometimes violent and erratic behavior can make the role of being a caregiver emotionally, physically, and financially exhausting. If you know someone who has experienced this, you know what I am talking about.

The solution to eliminate these potential financial and emotional burdens is through Long Term Care Insurance. There are many reasons to buy it now, and not wait. The younger you are, the more affordable it is. If you buy it at a younger age, you also dodge the risk of a future condition that might make you uninsurable. You eliminate the risk of having to pay for care, and have peace of mind in knowing that you are not going to be a burden to your family.  

I myself purchased my Long Term Care insurance when I was 44, and got a rate I could not get today....not even close. Today, 10 years later I am next month making my last payment as I purchased a 10 pay policy that is paid in full in 10 years.

As an Insurance Agent for 31 years, I encourage you to act now, and not wait, as we never know what the future has in store. Please call me at 847-382-7580 or email me at PRutledge@Allstate.com and I will gladly send you information pertaining to this very important and often overlooked type of Insurance coverage.

It appears there is a new law with FHA financing that requires personal Condominium Insurance with Interior building property limits at a minimum of 20% of the purchase price of the Condo unit. This is of course also true with Townhomes that have a master policy and act under Condo Association guidelines. Now, while it only makes sense to have personal Condo Insurance of your own, the fact is that many people close and never buy it. That is because they are under the false premise that the Master Policy of the Association will cover everything they need. If you feel that way, next time you have a lightning strike blow out your Plasma TV, try putting in a claim on the master policy and see what they say. Also, many master policies only cover up to the Drywall, and leave you responsible for kitchen cabinets, flooring, all upgrades, and of course decorating and window treatments. The reason I know about the FHA rule is many Mortgage companies have been calling with refinancing or new purchases and requiring it as part of a certificate of insurance for the closing. 

Personal Condo Insurance can be as inexpensive as $150 a year, and often times you get a discount on your auto insurance as well. My Agency can provide quotes to anyone living in Illinois or Wisconsin. Just email me or call me at 847-382-7580. www.RutledgeGroupIl.com 

We all have seen the glut of vacant homes on the market, as this is just part of today's economy and the situation within the Real Estate industry. As a general rule, your homeowners insurance will continue to cover your home with the exception of vandalism coverage if the home is vacant and not occupied for 30 days or more. Also, frozen pipes are not covered if you try and save money by turning off the heat in the winter.

Many clients find a relative to live in the home while it is on the market and vacant. Even if you let them live there for free...at least you know the vandalism coverage still applies, and you have someone there making sure nothing goes wrong. This especially is true if you have moved out of state, and do not have someone regularly checking on the property.

As always, check with your own company and ask them how a home vacancy pertains to your homeowners insurance, as contracts do vary between insurance companies, and you should call your own insurance agent to make sure.   

Well...it is very possible that you are! As I write this early in the morning on the 4th of July, I reflect on the many Holiday celebrations that will be taking place this weekend. Of course in today's society, everyone wants to sue everyone else whenever they can, and for whatever they can. The bottom line is that liability is based on negligence, and that is some action you take or fail to take as a reasonably prudent individual that can cause harm to another person. For example, if you have a picnic, and watch a guest have 8 or 9 cocktails within a few hours, and then let them drive off without even mentioning that maybe they should take a cab, and they are involved in a fatal accident down the street.......then you probably have some responsibility for not acting in a reasonable and prudent manner. 

The good news is your property insurance coverage should carry liability coverage that would protect you from a possible lawsuit for this. Also carrying an Umbrella Liability policy is a prudent thing to do if you are concerned about protecting your assets from a possible lawsuit. These normally run just a few hundred dollars a year for 1 million dollars of liability protection. As always, you should check with your own insurance company to verify the exact extent of your coverage. Please keep in mind that also business activities where you charge a fee for admission to a party is an entirely different situation, and not covered on a Homeowners policy. 

Have a safe and Happy 4th of July 2009! 

Most of the major well known Insurance Companies allow for permissive use of your automobile. That simply means that anyone is covered driving your car as long as they have permission to use the car. This question often comes up because most insurance companies will print a line on the policy declarations stating the rating characteristics of the policy. It will say something like married male ages 25-49 or something similar, however this is just a statement of how the policy is rated, not a finite statement of who is covered driving the car. There are some companies that do exclude drivers, but these are typically the companies that are considered non -standard carriers. As always, you should always check with your insurance company and agent to find out exactly what your policy says, as there are companies that make exceptions to what normally applies. 

Many of my clients when asked tell me they feel they have adequate Life Insurance through their employer. In reality Life Insurance as a replacement of income should be several times your annual income, and most employer sponsored policies provide a flat amount of coverage...usually 1 or 2 times the annual pay amount. Often times it is just a flat amount of $25,000 and that is it! In todays economy, it becomes even more important to make sure both Husband and Wife in a young family have their own coverage. By that I mean a policy they own outside of employment. If your job ends, so does your Group sponsored Life Insurance. If the unfortunate happens and a death occurs, whether by accident or disease, for as little as $40 or $50 a month, depending on your age and medical history, you can provide your family with an instant estate of $250,000 or more to provide for your family in your absence. Things happen! Many clients tell me that in today's economy they cannot afford $40 a month. But can you really afford not to???? You probably find 1 thing that could be cut in the budget for $40 am month, but if the breadwinners paycheck went away one day next month...or next year....then what bills could your family pay without it? Please do some soul searching for the benefit of your family. 

As a tenant renting a home or apartment, Renters Insurance can become an extremely valuable form of protection. Most policies average $150 a year or less, depending the combination of coverage you desire. The most common misconception is that the Landlord will cover my possessions in the event of a fire, burglary....or whatever. Unfortunately many people find out too late that is not true, and stand to lose tens of thousands of dollars in possessions due to the lack of an insurance policy costing about $12.00 a month. Liability is also a key coverage included in these policies. You could trip someone with a shopping cart while out at the grocery store, and your renters liability insurance would cover you for injuries to others due to your negiigence. Also, if a claim occurs making your residence uninhabitable, renters insurance will cover your extra living expenses to live somewhere else temporarily while your place is being repaired. 

As always, call your insurance agent for an exact quote and recommendations on the coverage you need. My company also offers big discounts for tying in your auto insurance with your property insurance....so give us a try!