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Marvin Said:

Change of Cap for Equity-indexed Universal Life (EIUL)?

We Answered:

1) insurance companies are generally risk averse. In order to beat index returns, I'd imagine there would be significant risk an insurer is not willing to take. At least any insurer I'd want to do business with. Liquidity is a concern, especially with the volatility in the markets not completely diminished. There was a push towards holding higher risk-based capital and the companies would likely not risk money for unsure things at this moment.

2) I wouldn't be so sure about the cap reductions in the near term. It depends on the market fluctuations and other considerations. I don't know if there was a question in point 2.

3a. It would depend on the company, there is no blanket answer for the whole industry. I'm not familiar with Western Reserve Life. I don't think many whole life policies (at least policies considered whole life) have any kind of variable element to them. That sounds like Variable universal life or some other kind of product. Whole life I see is strictly pay your premium(s) and your cash values accrue at a certain rate and that's the end of the story.

3b. Some of the EIA problems stemmed from the accusation that companies issuing EIAs were preying on the elderly and charging unreasonable fees for the products the buyers didn't understand. Variable annuities got creamed in general with the recent market decline and EIAs have guarantees which were probably not favorable for the writers of them. Like your guaranteed minimum return of 2% when the stock markets drop 30%. Another consideration is the prevalence of other benefits. It seems rare that a policy is sold plainly anymore and there are usually things like guaranteed minimum accumulation benefits, or income benefits or death benefits that act as buffers against certain uncertain future events. Most of the above options go into the money as the market declines, so there may be some of that happening.

Clifton Said:

How to afford dorm life on financial aid?

We Answered:

Spalmer is right. Not all 4 year Universities cost the same. You need to comparative shop and find out which is the cheapest in your state. Often times schools in smaller communities are much less expensive because of the lower cost of living. Look for a regional university rather than a Comprehensive one and it will be HALF what you are probably looking at. (These are the ones that sound like South-Eastern or North-Western or Eastern "College" as opposed to the University of X State).

As a dependent student your parents can take out PLUS loans to assist you. But if you don't have that support, you are going to have to find a regional university that is less than the federal loan limits you have. Dependent freshman can borrow up to 5500 a year in federal Stafford loans, Sophomores 6,500 a year, Jr's and srs 7,500 a year.

After you do your two years at a community college, you can borrow 7,500 a year. This could be enough for a regional university tuition fees AND housing.... save some cash, earn a few scholarships with that awesome GPA you have worked so hard to get and you'll be ready to transfer before you know it.

Ben Said:

Does my old insurance company have the right to bill me AFTER my policy expires?

We Answered:

I understand your frustration, but you should be upset with your agent moreso than with the company. If you knew that you wanted the policy to cancel at renewal, and you notified your agent of this, the agent should either have submitted the cancellation request on your behalf or should have notified you that you needed to provide a written notice of intent to cancel. The company was not properly notified, so they extended coverage until May and now feel entitled to the money.

Get the Certificate of Insurance from your new company, give it to your old agent and tell him/her to fix it because he wronged you.

You are right to be upset, but be upset with the agent. He's (she's) the liason between you and the company and should have properly notified you of any necessary steps to set up your policy to cancel upon renewal.

I'm an agent, and I still blame the agent for this mess.

Edit:

To answer your additional questions:

What's the worst that can happen: They send you to collections and blemish your credit.

Your new coverage started March 14th, so if you faxed that in your old company would most likely charge you for premium from March 1st to March 14th. They would do this because they wouldn't want to retroactively assign you a gap in coverage. If they got prior notice of the cancellation (which thanks to your agent, they didn't get) then they wouldn't care if you cancelled and had no coverage. But they won't want to go back in time and give you a gap because you know you didn't have a claim.

It is their business because you're asking them not to charge you for coverage they technically provided you with. Trust me, I empathize with you, but if you don't want them to charge you for coverage through May, make your old agent fix the mess by taking the blame or give them the evidence that you got new insurance.

They never got notice that you wanted to cancel your policy, so they covered your home until May before cancelling you for nonpayment. If you'd had a fire, they would have covered you. You do owe them this money unless you can get them to agree to retroactively cancel the policy to an earlier date.

Make the agent admit his mistake, and tell the insurance company it was his fault, that you told him you wanted to policy to cancel at renewal. Maybe they'll just let the whole thing go. Otherwise, jump through their hoops or get sent to collections. Sorry.

Patsy Said:

How do Republicans intend to health insure all Americans?

We Answered:

The Republicans have no plan to insure those $30 million people! They have ideas that they THINK will reduce that number, but they have NO PLAN to insure all of those people! Allowing competition over state lines??? That's going to insure people? Reducing insurance premiums is supposed to insure people who are unemployed or can't afford insurance? Dream on!

Melinda Said:

Why don't we have UNIVERSAL HEALTH CARE?

We Answered:

We came the closest we ever did a few months ago, when the public-option was in the bill.

It was dropped in the foolhardy aim at getting bipartisan support from the Republicans.

But this bill is getting us just a bit closer. It's opening up the debate for healthcare, and more & more people are learning about how the structure works, and the flaws in the system.

I think the winds are blowing in the right direction, Americans are eventually going to pick up on the fact that their system exists for the benefit of a few at the top, at the expense of everyone else.

Healthcare should not be for-profit.

It should be a right.

Join the 21st Century America!

Armando Said:

Looking for Catastrophic Health Insurance provider in Florida?

We Answered:

Dixie, any online place is pretty much going to harvest your personal information, to sell as a lead. So you're wasting time going there.

Your friend needs to call a local independent agent, who can do this over the phone, without selling her personal information to 25 other agents who will call her and haunt her.

She can find a local agent at www.iiaa.org

Catastrophic, pretty much just means regular health insurance with a very high deductible. For a personal recommendation, to a Florida agent, email me.