Every now and then a better way of doing things comes along!

Posted on November 5, 2020 by admin

There is a new strategy that a number of voices in the insurance industry are touting that just makes sense, and you may want to consider this? It is a better way to save for your Retirement!

Simply put, you overfund a permanent Variable or Indexed Universal Life Insurance policy. There are a number of reasons why this makes sense, and is a better way to save for your retirement.

  1. TAXES- Permanent life Insurance cash values get the same tax deferred treatment as the traditional government sponsored Retirement savings plans (IRA, 401K), but, when you retire you can withdraw all your premiums paid tax free, and then borrow against the cash value for additional retirement income. Since this is a loan it is not taxable, and the carrier should credit you back the same interest it is charging you for the loan, so in effect there is no cost for the loan. When you die, those loans will be deducted from the total amount of the policy and the balance is passed to your heirs Income tax free. If you have anything left in your Government Sponsored retirement plan when you die they are taxed as a Lump Sum Distribution to your heirs, which could incur significant taxes! And, your IRA withdrawals are taxed at ordinary income rates vs. the Tax Free income you enjoy from the Life insurance cash value!
  2. COSTS-While there is a cost to the Life insurance, if you die prematurely these costs are inconsequential compared to the Death benefit to your heirs. All of the overfunded contributions go directly into your separate account which invests in your chosen investment portfolio. They incur the same investment fees you would pay in your IRA/401K, but there is no 5% commission deducted up front for the contribution!
  3. LIMITS- Your Government sponsored retirement plans have limits on them (ie. IRAs are limited to $5000/$6000) but you can size the life Insurance so that the maximum contribution you want to make can be made to your tax deferred Separate Account.
  4. RETURNS- Your Separate account will receive the same returns you would get in those same investments in a retirement account, but a premature death will give your heirs a tremendous return on those contributions! If you have any family members who are financially depended on you this is something you need to have in place, to protect their financial futures. You are actually covering two concerns with this one product!
  5. CHOICES- Your choices will vary by carrier, but look for carriers that have Target Date funds, or Asset Allocation Funds which give you a more balanced return and will not be as volatile as investments in any one sector. Some carriers have a broad range of investment strategies which you can invest in varying percentages to give your portfolio broader diversification.

If you would like to see what this strategy could mean to you contact me at ctrowbridge@farmersagent.com, 650-876-9600

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5 Things Homeowners Need to Know to Prepare for 2020’s Flood Season | National Flood Services

Posted on June 11, 2020 by admin

Flood season is upon us. According to the National Oceanic and Atmospheric Administration, this flood season promises to be a wet one, with 23 states likely to face moderate to major flooding.

Although experts do not anticipate this year’s flooding to be as bad as 2019’s, they predict that 128 million Americans are still at risk of flooding and 1.2 million Americans are at risk for major flooding. These are your customers, and this is what they need to know about flood season 2020.

1. Homeowner’s insurance does not cover flood insurance

No, this is not new in 2020. But the reality is that many homeowners still don’t realize that a standard homeowner’s policy does not cover damage caused by flooding. The confusion may stem from the fact that these policies often cover certain types of water damage, such as that caused by burst pipes.

If you think many or most of your customers could benefit from some basic information about flood insurance, point them to our flood basics video series to help them understand why they’re at risk and how flood insurance can help.

2. More homeowners are at risk than they think

Many homeowners don’t think about their flood risk unless they live in a high-risk area, such as one prone to hurricanes. But flood risk exists everywhere – not just on the coasts, and 20 to 25 percent of claims paid by the National Flood Insurance Program (NFIP) are outside of “high-risk” areas. This year, one in three homeowners in the lower 48 are expected to be affected by flooding.

The Midwest is already off to a rough start. May brought flash flooding to businesses and residences around a surging Chicago River after the city saw two of the five wettest days on record. In Michigan, devastating dam failures brought on by historic rains forced thousands to evacuate.

3. Not every part of a building is insured the same way

Homes come in all shapes and sizes, and certain features may be ineligible for coverage or incur limits on coverage. For example, homes with basements can be tricky. The NFIP defines a basement as a “building with a floor that is below the natural ground level on all sides.”

Depending on the type of coverage a homeowner has, the structure or contents of a basement may not be covered. This includes below-grade apartments that may be considered basements and so have different coverage eligibility than units in the rest of the building.

4. FEMA has extended its flood insurance premium payment grace period

For homeowners who are covered by a flood insurance policy, FEMA has extended its payment grace period from 30 to 120 days. COVID-19 has disrupted many people’s finances, and this change makes it a bit easier for policyholders to maintain their coverage during a time of increased flood risk.

It’s important to note, however, that homeowners must become current on their premium payments to be eligible to have a claim paid.

If a homeowner does need to make a claim after a flood event during the pandemic, FEMA has issued guidance for remote claims adjusting so social distancing measures can still be observed.

5. 2020’s hurricane season will likely be worse than average

Colorado State University hurricane forecasters predict that 2020’s hurricane season, which begins June 1, will be worse than average. They are predicting there will be 16 tropical storms, that eight of them will become hurricanes, and that four of those will become major hurricanes (Category 3, 4, or 5).

For some perspective, an average season produces 12 tropical storms, half of which develop into hurricanes. Last year, there were 18 tropical storms. Six became hurricanes, three of them major.

Hurricanes cause loss, plain and simple. Dorian, a Category 5 that weakened to a Category 3 as it neared Florida in September 2019, caused an estimated $500 million to $1.6 billion in insured losses in the United States and an additional $2 billion in the Caribbean.

Homeowners Need Insurance to Prepare for the 2020 Flood Season

Only 15 percent of homeowners have a flood insurance policy! It’s true that there is typically a 30-day waiting period before flood insurance goes into effect after purchase, but flood and hurricane season is just getting started, so there’s plenty of time for homeowners to mitigate the risks to their property.

Additionally, FEMA allows some exceptions to that waiting period, such as for homeowners who purchase flood insurance as part of increasing, extending, or renewing their mortgage loans and those who increase their coverage when their current flood insurance is up for renewal.

Not sure how to start the flood insurance conversation with your customers? Take a look at our guide to selling flood insurance.

Contact me for a quote in California, 650-876-9600, ctrowbridge@farmersagent.com

Posted in Earthquakes Floods and other Natural Disasters, Homeowners Insurance, Life Insurance | Leave a comment

With the Wildfires, Insurance questions arise

Posted on November 17, 2018 by admin

The recent devastation caused by the Wildfires that are raging through California communities has caused concern with many Homeowners. The question staring many of them in the face is “Am I covered”. In a “normal” one off Home fire the answer would for many residents be “yes”. But these are not normal circumstances.

The most recent Wildfire in the Paradise, CA area has seen something like 9000 structures being lost. When you have that kind of large scale destruction you do not have enough Contractors to rebuild them all. So Contractors from out of state, or out of the area, have to be brought in to help those who have lost he homes. These Contractors have to stay in motels, eat every meal out, do their laundry in laundromats, and generally live on the road while they attend to business. Where many homeowners had sufficient coverage in a “normal” housefire loss situation, lets say @$300 per square foot (p.s.f.) of coverage, these Contractors, because they are living on the road, have a much higher cost to rebuild the homes, (In the Santa Rosa fires we experienced last year we saw quotes of $500-$800 p.s.f. for the same house covered for $300 p.s.f.). The Homeowner is looking at their Insurance Agent and saying “I thought I was covered”, and the Agent is saying ”Well, you would be in a normal situation, but this is anything but normal”. The Agent was doing their job, but if they had tried to sell the Homeowner the $500-$800 p.s.f. of coverage needed for this abnormal situation the Homeowner would have gone elsewhere.

The Homeowner has to make a decision.

  • If the Carrier will not provide the extra coverage they are left covering the added cost themselves
  • Taking the Cash. instead of reconstructing the home. and buying a property out of the area, and just sitting on or selling the land of their former home, or
  • Waiting until prices have come back to normal and then rebuilding, hoping that by that time they haven’t increased too much to replace their old home. They may have to rebuild smaller.

None of these are particularly attractive options.

Luckily, some Carriers are finding ways to provide their policyowners with added coverage. Farmers, my primary Carrier, is providing their policy holders with 100% of the Contents coverage without requiring the usual audit of contents that need to be replaced. Contents coverage is a percentage of the rated Dwelling amount, and usually more than enough (@60%) so this is additional coverage that can be used to make up for the insufficient Dwelling coverage in this abnormal situation.

I hope you have Farmers, or your carrier is going the extra mile to take care of you. If not, it will leave you with a bad taste about your insurance and that’s not what anyone wants. If you have questions, or there is anything my agency can do for you, please contact me: CTROWBRIDGE@FARMERSAGENT.COM, 650-FARMERS (327-6377) visit my Blog: Corrinblogsinsurance.com

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California Renters Need Earthquake Insurance Coverage Too

Posted on January 11, 2018 by admin

The latest “Earthquake Premium and Policy Count Data Call” from the California Department of Insurance (CDI) shows that in 2016, only about 5% of California renters with residential insurance also had earthquake insurance policies.

However, data from the CDI and the American Community Survey imply that only about one-third of renters carry residential insurance, so the actual percentage of renters with earthquake coverage is substantially lower than 5%. Bay Area cities have high numbers of renters, which means potentially hundreds of thousands would be left financially unprotected after a damaging earthquake strikes!

What Every California Renter Needs to Know About Earthquake Insurance

A low take-up among renters may be because you have misunderstandings about the value of earthquake insurance.

  • Because a landlord’s insurance won’t cover anything beyond the structure of the home, it’s important that you understand you need your own policy to protect your personal property.
  • In California, a renters insurance policy doesn’t cover earthquake damage, so a separate earthquake insurance policy is needed.
  • With a CEA renters earthquake insurance policy, you can choose Loss-of-Use coverage, which covers additional living expenses if you must live and eat elsewhere following a quake. And don’t forget this Loss of Use coverage through CEA has no deductible!
  • Government assistance, if available, is limited. The maximum FEMA grant available in 2017 was $33,300, but the average FEMA grant awarded after the 2014 Napa quake was just $2,670.
  • CEA policies for renters are very affordable—as low as $35 per year ($2.92 a month)—and premiums depend on the earthquake risk where a renter lives and the policy coverages, limits and deductibles you choose.

If you do not have this insurance you are basically Self insuring against this future reality! Your insurance is the basis of any sound financial plan: Protect what you have and build from there! Otherwise, one big setback and you are starting over, and who wants to do that if they do not have to?

For a FREE Quote please contact my office: 650-FARMERS (327-6377), or email me at ctrowbridge@farmersagent.com

(Copied form the CEA website)

Posted in Earthquakes Floods and other Natural Disasters | Leave a comment

“Permissive use” may come back to haunt you!

Posted on July 10, 2017 by admin

Your hanging out at your place and a Roommate asks if they can borrow your car to run an errand, or your Cousin is visiting from out of town and needs to drive downtown for a job interview, and you let them borrow the car! In both these cases you want to consider what the long term consequences might be to you , your wallet, and your relationship with your friend or cousin. Sure its the nice thing to do, but it might end up costing you and your friendship a lot!

Some carriers have what is called a “Named Driver” policy. That means only the Drivers named on the policy are covered. Anyone else driving that car has no coverage from your policy. If your policy does include “permissive use” they may be covered up to the policy limit, or they might be covered only to the state minimum, Because your coverage is primary in “Permissive use” cases, it is your policy which will pay for your car repairs if the driver is negligent. That means you might also be responsible for the deductible (if they can’t pay it) , and in some cases it could get rated up for the next three years (Insurance companies usually “rate up” policies that have claims on them)! This could get very expensive, and you weren’t even driving the car!

Before you throw someone your car keys make sure you have read the policy, and know what exposure you have if they get into an accident. A simple act of kindness and trust could be a very expensive lesson for you.

Posted in “Protecting your Family’s Financial Future”, Financial Affairs, Insurance Coverage | Leave a comment

Directors and Officers Liability Coverage!

Posted on June 1, 2016 by admin

Organization board members assume a level of responsibility when making tough, complex decisions that impact the company they represent. Held legally and financially responsible for the conduct of the institution, directors and officers do not always recognize the potentially devastating liability exposure that can place personal and institutional assets in jeopardy. Any organization, whether publicly traded, private or non-profit, has potential D&O exposure. The cost of legal defense when a director or officer faces a claim can be significant.

To make decisions without the threat of personal liability hanging over them Directors and Officers need to have D&O insurance in place to help protect them against significant defense and settlement costs. This coverage can be a Stand Alone policy or part of a packaged Business Insurance policy.

Private companies purchase an average of $50.7 Million in D&O Limits

The average settlement value of derivative shareholder action is $7.2 Million

18% of private companies have recently increased their D&O limits

Non Profits report the highest proportion of claims -61%

More than 1.5 Million non-profit organizations are registered in the US.

According to D&O Liability survey, 30% of respondents reported having a claim in the past 10 years

Lawsuits filed in 2013 by the FDIC claim $1.2 Billion in damages for the actions of directors and officers

In 2013, mergers and acquisitions (M&A) deals attracted an average of more than 5 lawsuits

In recent years, shareholders filed suit in more than 90% of M&A deals valued over $100 Million

94% of Merger & Acquisition deals were challenged by shareholders in 2013

From 2004-2013 derivative lawsuits made up 39% of all directors and officers liability claims

In recent years , shareholder derivative actions represent 17% of all securities litigation

According to the Bureau of Labor Statistics there are 2,303,200 top executives in the US and 261,500 top executives expected to enter the workforce by 2022

This is reprinted from InsuranceMarketing.com/Spring/Summer 2016 issue, For more information; contact Corrin Trowbridge 650-876-9600, ctrowbridge@farmersagent.com

Posted in Financial Affairs, Insurance Coverage, Interesting Stuff | Leave a comment

What is your “Exit Strategy”?

Posted on March 24, 2016 by admin

The phrase, “Exit Strategy” connotes the culmination of a job well done, and the beginning of a time to reap the rewards of your large effort! It may also increase one’s anxiety about what’s next, or what will life look like going forward?

“We don’t plan to fail, we fail to plan”! Having a plan for your “Exit Strategy” makes it a lot more secure, and inspires much greater confidence in the outcome. A very successful and proven tool to use in implementing an “Exit Strategy” is a Permanent Life Insurance Policy. Life insurance is not just a Death Benefit to your heirs! It can be used to:

  • Buy out inherited partners,
  • Compensate key employees,
  • Cover the expense of finding, attracting and hiring a replacement for the former key employee,
  • Continuing the long range development program jeopardized by the loss of a key employee,
  • Assure creditors and customers that the business will continue, and
  • If funded correctly, can provide tax free retirement income!

If you double bonus the premium payer the business can deduct the cost of that coverage as a business expense. You need to double bonus them so that one half will cover the taxes on that bonus, and the other half will pay the premium of the policy. But, by doing this the cost is covered by pre-tax money, that comes off the bottom line before you have to pay taxes.

If I can assist you in creating an “Exit Strategy”, please contact Corrin Trowbridge at ctrowbridge@farmersagent.com, or 650-876-9600

Posted in “Protecting your Family’s Financial Future”, Financial Affairs, Life Insurance | Leave a comment

Dealing with Grief and Financial Insecurity.

Posted on March 23, 2016 by admin

Ways to help prepare you and your family

At one time or another, we all must cope with a loss and its accompanying grief. There are many more obstacles you may face that can result in grieving, especially the loss of a loved one.

It’s not easy to cope after a loved one dies. Mourning is a natural process people experience as we try to deal with a loss. The outward expression of our loss is often grieving, which can be expressed physically, emotionally and psychologically.

“Time heals all wounds … “

While the passing of time can be a great healer, it can’t fix everything. Though a sense of grief is a typical response to a loss, there is no single way to deal with it, and people grieve in many different ways. While each person’s reaction to grief may differ, there are some things anyone can do to help in the grieving process:

  1. Allow yourself time to grieve, and understand it’s different for everyone
  2. Reach out to someone who understands your situation and is willing to listen
  3. Contact a certified counselor/therapist or support group to assist you

It can help to acknowledge grief and take steps to heal, and there are resources available to help people cope with a loss.

Finding help

You can find many grief support resources in your community. Start by asking someone at your local hospital, church/temple, funeral home, or community center. School counselors may also know of local resources.

The internet offers a wide range of resources on topics related to death, coping with change, and expressing feelings. Do a search using key words such as “kids and grief” or “families and mourning” for more information. Add the name of your city to find local grief counseling services in your area.

Social media can be a powerful tool to help you feel connected to your loved one and your network of support. You can also find many print and online books to help adults and children who are facing the grieving process. Ask a professional for the best current titles for your needs.

 How Life Insurance can help you cope with grief

Often, the level of a person’s grief correlates to their attachment to what is lost. If the loss involves a person who was also the source of income for the family, the loss may overwhelm a family’s finances, complicating an already stressful situation. To help you and your family during what can often be a turbulent time financially for a family, life insurance is available.

People are sometimes hesitant to even discuss life insurance, as it deals with the end of a person’s life. In fact, life insurance proceeds can provide comfort by allowing your family to grieve without worrying about the financial impact of your passing. Life insurance proceeds provide financial security by helping to cover final expenses and outstanding debts, helping to replace lost income, and helping your family hold on to their dreams.

As your survivors deal with your loss, they will be thankful that you had life insurance in place to help provide them with financial support after you are gone.

Call (650-FARMERS (327-6377)), OR Email (ctrowbridge@farmersagent.com) me for a quote?

Farmers New World Life Insurance Company, Farmers Friendly Voice, March 2016

Posted in Life Insurance | Leave a comment

Thinking of renting your house out for the Super Bowl? Think Again!

Posted on January 25, 2016 by admin

For those of us living in the Bay Area, who are anticipating a certain craziness that comes with being the Super Bowl Host community, the idea of renting our house out to visitors for the week of the Super Bowl could seem extremely opportunistic! Figures like $5,000-$6,000 dollars rent for your home over that week leave one imagining a fully paid vacation to Hawaii, while escaping the traffic, and tourist crowds that can be expected during that grand event.

But, are you aware that all the major “Admitted” Insurance carriers would exclude coverage for your homeowners if you rent it out to guests? That means you would be on the hook for any damages to your property caused by your guests, and if they caused damages to others (let’s say, you rented your house out and your Renters threw a party, and one of attendees hurt themselves), your Liability coverage would again not apply. You are putting yourself at risk of claims for Hundreds, Thousands, or potentially Millions of dollars!

Now, think about the typical market for that weekend…  Probably males, on a “Guys Weekend”, who will be doing some drinking, and whatever else they like to do on a “Guys Weekend”. Not a quiet family group looking to visit the Bay Area.  Even Airbnb’s insurance promises protection only for your property loss, and that is “actual cash value” protection-meaning depreciated coverage.  So, be aware of the risks you are assuming if you want to “cash in” on the Super Bowl. It could cost much more than it’s worth!

There are only a couple of “non-admitted” carriers who do offer Homeowners coverage for Short Term Rentals, but these are more expensive and require more paperwork. We do have access to that market so if you are interested give us a call, Trowbridge Insurance Agency 650-876-9600.

Posted in Homeowners Insurance | Leave a comment

Women Face More Risk In Retirement

Posted on October 23, 2015 by admin

It’s apparent that Americans, both women and men, have not saved enough money for retirement. Studies increasingly indicate that many baby boomers have no financial plan to protect themselves against outliving their assets, and the rising cost of health care. So, what makes women so much more vulnerable than men?

Longevity. It’s a phenomenon seen in every population. It seems women just live longer:—76.4 years for males and 81.2 years for females. When they reach 85, there are roughly six women to every four men. But whether that’s a bragging right depends on the quality of life the women experience in those additional years.

Health-care costs. Because of their longevity, women have a greater likelihood of spending money on a series of illnesses. Their rates for chronic conditions (ie. diabetes and high blood pressure) are similar to men, but women are twice as likely to suffer from headaches, joint, back or neck pain. One thing is moving in the right direction for women, though: the cost of insurance. Although it is still going up, beginning in 2014, an Obamacare provision prohibited insurance companies from charging higher rates based on gender or any pre-existing health conditions.

Caregiving. Women are not only caring for their children but also for parents, feeling it is their duty to do so. But, few plan for it. The costs associated with these roles were further exacerbated by the women’s inability to focus on more lucrative careers.

Income inequality. Men still out earn women by a large margin. Although women are becoming more educated and make up a larger portion of the country’s workforce, they consistently earn less than men, even when they have similar levels of education. Women face challenges because of maternity leave, their need to balance home and work and their limited ability to travel.

Education misconceptions. Over the past decade, we have seen dramatic increases in the education level of females.  Women now outnumber men in institutions of higher learning and graduate at higher levels than men. So it’s not that women lack the credentials necessary for advancement, but when a male and a female with the same credentials apply for the same job, the male counterpart is more often chosen over the female.

It’s not all doom and gloom, though, as the gap is shrinking every year. A recent study by ADP Research Institute found that women are more likely to save than men, and they’re saving a higher percentage of wages.

It takes a keen awareness of these vulnerabilities, some planning and a little discipline. Women can break through these barriers with the right planner, the right tools and the right attitude.

Edited and copied from Financial Adviser Magazine, 10/21/2015, Catherine M. Seeber, by Corrin Trowbridge, 650-876-9600, ctrowbridge@farmersagent.com, www.Trowbridgeins.com

 

Posted in Financial Affairs, Insurance Coverage, Interesting Stuff, Life Insurance | Leave a comment