COUNTING DOWN THE BIG FOUR - #2 GEICO

JUST 15 MINUTES TO SAVE 15%

Logging in at #2 this year after taking over from Allstate, Geico is steadily putting pressure on the number one spot.  The ease of creating a policy online makes them a favorite of the younger generation and those who are not into face to face interaction. The Geico Gecko is a very familiar presence, keeping the brand relevant for over 15 years since its appearance in 1999.

Geico at a glance: 

• Established in 1936 by Leo and Lillian Goodwin.
• Columbia University business student, Warren Buffett, makes his first purchase of GEICO stock in 1951.
• New headquarters opens in 1959; Chevy Chase, MD.
• Passes the 1M policies-in-force (PIF) mark in 1961.
• Insurance premiums reach $150M; net earnings double to $13M, 1965-66
• Introduces 24/7/365 telephone customer service in 1980.
• Warren Buffett purchases outstanding GEICO stock in 1996, making GEICO a subsidiary of Berkshire Hathaway, Inc. 
• Today, GEICO's assets have reached $32B
• Parent company (Berkshire Hathaway) currently #4 on the Forbes Fortune 500; $182.15B
• Employs more than 30,000 associates; Maintains 14 major offices around the country. 

COUNTING DOWN THE BIG FOUR - #3 Allstate

THE ALLSTATE STAND

Topping the list at #3 (was #2 last year) is Allstate.  When I'm making sales calls, many of my potential clients tell me I sound like the "Allstate Man" (Dennis Haysbert) and actually mistake the company I work for that very reason.  Most folks recognize Haysbert as well as Dean Winters (The Mayhem Guy), but may not know much about the history of one of the more reputable insurance companies. 

Allstate at a glance: 

• Founded by General Robert E. Wood in 1931 (Sears, Roebuck, and Co). 
• Trained women to be insurance agents in 1942 (military leave for men). 
• Opened first claims office in 1952.
• Allstate Foundation started grants program to train driver's ed. instructors. 
• Neighborhood Office Agent Program launched in 1984. 
• Began publicly trading in 1993. 
• Currently #92 on the Forbes Fortune 500; $123.5B in total assets.
• 12,000 Agent offices in the US and Canada; 70,000 employees/staff.
• Allstate branding includes Encompass and Esurance. 

TERM VS. PERM - The Debate Goes On

People often cringe at the thought of not being around anymore, i.e. death.  What should be more scary is what happens to your spouse, children, and estate WHEN you don't come through the doors one day. There are many ways to take care of your loved ones from the grave. Life insurance is a great way to provide large sums of money without "on the cheap."  

The growing debate is whether to buy permanent (whole or universal) life insurance or temporary (term) insurance and invest the difference of the two.  Here's my two cents: 

The younger you are, the wiser it is to purchase permanent life insurance.  Those with young children should also purchase a policy for their child not for the death benefit (although you never know) but for the living benefit and financial growth.  That's another topic altogether.  

My suggestion is to have both types of life insurance, but to not "over-insure" yourself.  Think about it like this, would you want your loved ones to have to pay off a car and home if you owe on both when you expire?  

A 30 year term policy is a cheap way of covering both your home and auto(s) should you die unexpectedly.  If you own your  home outright, but have a loan on your vehicle, a 5 year term policy makes sense should anything happen to you during your loan period. 

Younger people who may actually take a moment to read this, you're getting older each day and the cost of insuring your life gets more and more expensive each year.  #thinkonthat

ASK THE RIGHT QUESTIONS TO MAKE THE BEST DECISION.

COMPARE BEFORE YOU SHOP, Part 4 ~ Renter's/Tenant's Insurance

Do Your Homework - RENTER'S/TENANT POLICIES

Ever stop to think just how much the stuff you've accumulated would actually cost to replace?  Go "shopping" around your apartment or rental home/condo one day and you would be surprised.  Ever stop to think about someone slipping and falling on your stairs or in your kitchen and you being sued?  What if you're cooking a fabulous meal for you and your significant other and the kitchen goes up in flames?  Do you have coverage if the neighbor (either upstairs or next door) causes a water leak that leads to your apartment being flooded and they have no renter's insurance?  

These scenarios are very real and could happen to anyone, yet could be avoided for merely pennies a day.  Most renter's insurance policies (depending on the amount of personal property you insure) run about $15-$25 per month and usually cover a minimum of $100,000 for your personal liability should you damage your rental unit due to negligence on your part.  Your liability coverage would also cover you should someone injure themselves at your residence and attempt to collect damages from you.  Most renter's insurance policies also provide you with some minimum coverages for jewelry, furs, computer items, silverware, etc. as well as basic medical expense coverage (usually $1,000) should you need it.  

Be sure you compare products and get the best possible liability coverage to protect your personal assets.

LIFE INSURANCE ON THE JOB: My two or three cents

IS YOUR FAMILY PROTECTED?

At least five to ten times per day, I have a conversation (albeit usually very brief) with someone regarding life insurance and the potential need their family would have in the event they suddenly don't make it home for dinner. 

I totally understand that most people cringe at the thought that one day they will no longer live and breathe as they currently do, but one thing is for certain we all get a "certain" amount of time here and that time can't be figured out by any algorithm I've ever been privy to.  

The name of the game is making sure your family can continue their same lifestyle should either of the main bread winners make an early, unexpected exit from this life.  Having life insurance at work is a GREAT start! You usually get a pretty good price (if not free) on the coverage and usually one to two times your yearly salary.  

Sounds like a sweet deal on the surface, but the moment you leave that position you no longer have coverage and if you stayed three to five years, you are now that much older when it comes time to rate you for your next life insurance plan. 

How do you combat this issue?  Make sure you have permanent life insurance outside of your employer and make sure you begin that coverage as early as you can to take advantage of the best possible monthly premiums.  Also, be sure you speak to an insurance agent about your options for coverage: term, whole, universal, term vs. whole, whole vs. universal, etc.