Manage Finances for a New Year

The new year brings a sense of renewal and with it the urge to take a fresh look at ourselves–inside and out. A new year will also bring with it a new tax season, a time to gather paperwork and review the past year, an ideal time to think about finances.

An annual review of your finances is a necessity at this time of year, not just for tax purposes, but because finances are dynamic; needs and goals change, new savings, investment, and insurance products become available, family incomes increase, children are born, others are off to college, estates increase, jobs change.

Regular annual reviews provide a much–needed opportunity to be certain your past financial decisions are still moving you in the direction of your goals — and if not, to change them as soon as possible.

This year, as you resolve to make positive changes, work on improving your financial situation. Start by gathering and organizing your paperwork: life insurance policies and beneficiary designations, year–end statements from your retirement and investment plans, disability and long term care insurance policies, last year's tax return, your spending records, and other financial documents.

Next, plan to meet with your insurance agent, financial services representative, tax advisor, and/or your legal advisor to discuss the past year as well as your plans and goals for the coming year.

Here are some suggestions for preparing for these meetings in advance:

1. List any changes in your work and/or personal life that took place in the last 12 months.
2. List any changes in your work and/or personal life that will take place in the next 12 months.
3. Review your life insurance plans carefully.
4. Review the performance of your retirement plan savings and investments.
5. Consider the impact taxes will have on your retirement savings and income goals.
6. If you own a business, review all your insurance and retirement programs.
7. Finally, be sure to find out about new policies, plans, and products that are available.

Unusually Severe Weather Events Challenged Insurers In 2008

NEW YORK, December 22, 2008 — Preoccupied with the economic downturn and the U.S. presidential election, many Americans were unaware of the severe hurricanes and frequent tornadoes that caused billions of dollars in insured losses nationwide this year, according to the Insurance Information Institute (I.I.I.).

Property/casualty insurers paid $24.9 billion to policyholders for losses incurred through the first nine months of 2008, ISO’s Property Claims Service found.

There were 16 named storms this Atlantic hurricane season, making 2008 the year with the fourth-highest number of named storms since such records started being kept in 1944. Nine of the named storms became hurricanes, three of which made landfall in the U.S.: Dolly (Texas, in July); Gustav (Louisiana, in September); and Ike (Texas, also in September). The three U.S. hurricanes combined produced more than $11 billion of the $24.9 billion in insured losses for the year between January and September 2008.

The National Oceanic and Atmospheric Administration (NOAA) said that this is the tenth hurricane season in the past 14 years to produce above-normal storm activity in the Atlantic Ocean.

Hurricane Ike was the year’s most costly natural disaster, with an estimated $10.6 billion in insured losses, making it the fifth-most expensive (in 2008 dollars) hurricane and the seventh costliest insurance event in U.S. history, the I.I.I. reported.

Disaster losses along the coast are likely to escalate in the coming years, in part because of huge increases in development. It is predicted that catastrophe losses will double every decade or so due to growing residential and commercial density and the cost of rebuilding expensive properties.

Moreover, this year has been one of the deadliest U.S. tornado seasons in more than a decade. The average annual number of tornado-related deaths nationally for the 10 years, 1997-2006, was 62. Yet more than 120 people have died to date in U.S. tornadoes in 2008. About 1,000 tornadoes occur annually but at least 1,600 tornadoes struck the U.S. through the first nine months of the year, according to NOAA’s National Weather Service. The number of tornadoes in 2008 may rival the record set in 2004, when more than 1,800 twisters were reported.

“Strong winds can adversely impact those who live far from the coastline so there is always a need for homeowners to reassess their insurance coverage and strengthen their properties,” said Michael Barry, vice president, Media Relations for the I.I.I. “Just because a part of the country is deemed as being at low risk of natural disasters does not mean there is no risk at all.”

Significant wildfires and extensive flooding also took place in 2008, and they pose challenges which are different from those generated by hurricanes and tornadoes. California saw about 1,900 square miles destroyed in 2008 due to one of its driest springs on record that caused more than 2,000 wildfires during the summer months.

Nationwide, the wildfire problem is a growing one for homeowners and property insurers because residential populations have increased dramatically in wildfire prone areas known as wild land urban interfaces (WUI). Most WUI’s are situated in the western states.

“Climate studies suggest warmer and drier weather is extending the length of the wildfire season, leaving forests that are clogged with dead and dying trees even more vulnerable to fire,” Barry explained.

Meanwhile, states along the Mississippi River had the exact opposite problem, with heavy rains in the spring and summer causing the river to overflow and subsequent flooding in states such as Iowa and Missouri.

Less than 20 percent of all Americans have a flood insurance policy even though 73 percent of those surveyed nationally this year by the I.I.I. said they are aware that a standard homeowners insurance policy will not cover them for flood-related losses.

“Insured catastrophe losses in 2008 exceeded all cat losses incurred in 2006 and 2007 combined," said Barry. “Large-scale weather events have widespread repercussions that last long after the media attention fades. When disaster strikes, however, insurers fulfill their role as the nation’s economic first-responders, and this year was no exception.”

Facts and figures about hurricanes are available at: Facts and Statistics: Hurricanes. For a detailed background paper on catastrophes and insurance issues, see Issues Updates: Catastrophes.

For more information about insurance, go to the I.I.I. Web site.

Life Insurance Basics

Before we dive in, it might help to start with a basic definition of life insurance. Simply put, life insurance is a way to help restore or maintain your family’s financial security after you pass away. There are many types of life insurance policies, and choosing the one that’s right for you will depend on the ifs in your life and your personal circumstances.

Solutions for the "ifs" in Life
If I marry my true love! If it’s a girl! If I buy my dream house! Ifs like these are what life is all about—which is why we’ve compiled a few of the most common ifs, and how you can plan for them.

Types of Life Insurance
The differences between Term Life Insurance and the various types of Permanent Life Insurance—Whole Life Insurance, Universal Life Insurance and Variable Universal Life Insurance—are easier to understand than you might think. Which one is right for you depends on the ifs in your life.

Canada Life Assurance

Corporate Profile

Founded in 1847, The Canada Life Assurance Company was Canada’s first domestic life insurance company. Today, Canada Life provides insurance and wealth management products and services in Canada and internationally, primarily in the United Kingdom, Isle of Man, Ireland and Germany.

Our products and services

Headquartered in Toronto, Canada Life offers a wide range of insurance and wealth management products and services for individuals, families and business owners from coast to coast. Canada Life’s savings and investments, retirement income, life, disability and critical illness insurance products are available from independent brokers who are licensed representatives of Canada Life.

Canada Life is also a leading provider of creditor insurance, helping to protect the financial obligations of individuals with mortgages, loans, credit cards, lines of credit or leases through leading financial institutions, automobile dealerships and other lending institutions.

A leading employer

People are key to Canada Life’s success. Our staff enjoy challenging and rewarding work and opportunities to develop their skills.

In the community

The founding principles and theme of Imagine Canada—Give, Volunteer, Engage—echo the principles of our national Key to Giving™ program. We work hard to live up to our commitment to build Stronger Communities Together™.

if you want visit the official site is http://www.canadalife.com/

Life Insurance

It's never too late or too early to
think about protecting your family's financial future.

Life insurance is protection against financial loss resulting from death. It is an insurance company's promise to pay your beneficiary a specific amount of money when you die in exchange for timely payment of premiums.

Why do I need life insurance?

Although you may not think about it, your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death. Here are some reasons people buy life insurance.

The death benefit may be used:

• To replace income the family would need to maintain their standard of living after the death of a wage earner.
• To pay off a mortgage loan and other personal and business debts or to create a rent fund.
• To create a fund for children's education.
• To pay final expenses, such as funeral costs and taxes.
• To create a family emergency fund or a fund for a family member with special needs.

How much life insurance do I need?

The State Farm Life Insurance Needs Calculator provides a quick way to get an estimate of the cash needs you may have at death. Cash needs that exceed your available assets can be covered by life insurance.