Ryan Ermey: If you’re considering adding a life insurance policy, you know that not all health insurance policies or types are the same.Jennifer Fitzgerald, executive director and co-founder of online insurance broker Policygenius.com, discusses the nuances in an interview about the main segment.
Ryan Ermey: In today’s show, Sandy talks about new rates that have increased since the pandemic, and degloted adjustments to the Dow Jones Industrial Average.Everything is ahead of this episode of Your Money’s Worth.Stay.
Ryan Ermey: Welcome to Your Money’s Worth.Je I’m Kiplinger’s deputy editor, Ryan Ermey, joined as through publisher Sandy Block.Sandy, how are you?
Sandy Block: I’m fine, Ryan. Are you ok?
Ryan Ermey: Not bad. I went back to Jersey this weekend, which is a pleasure.In the meantime, we’re talking about something a little less grandiose and it’s the charges.And we’ve noticed some trends in charges that are particularly similar to the pandemic.What are we talking about, Sandy?
Sandy Block: Well, the vital maxim that shook many other people, because interest rates are so low that many other people refinance their loans to save money.Fannie Mae and Freddie Mac recently announced that they would attach what they call an unfavorable 0.5% market commission to any loans refinanced through them.And first of all they said it would take effect on September 1.Now they say it will take effect on December 1, meaning that others have time to refinance before that date, but they necessarily cite more pandemic dangers by refinancing loans by pronunciating those rates.
Sandy Block: Once again, other people are refinancing to save money.These rates will mean they won’t save as much as they thought.And the Mortgage Bankers Association, which had a big challenge with those fees, said it would charge the average refinancing around $1,400 in fees, so it’s something you should be aware of.If you plan to refinance your mortgage, check how to schedule it, and that’s just one of several.
Sandy Block: Another that will annoy other people is that some schools are paying lab fees, tests and pandemic tests, and those fees can run anywhere…Ryan, you haven’t been to school that long, but you probably don’t forget the boring fees they added to your tuition, right?
Ryan Ermey: Oh honey. $ 50 library … built-in gift, which he had to decline.
Sandy Block: Or gym fees for the gym that were never used or others, or activity fees for students Well, it’s a pandemic tax and is going from about $50 to at least one school that charges more than $400 according to the semester to students who take students are already bored with the concept of moving to school , they are told to come home, so they won’t like those rates.
Sandy Block: The latest rates I should mention, and this is very explicit where you live, however some service industries that have reopened have an additional fee.We have an example of a hairdresser in Texas who added a $3 repair fee.in Florida, the rates are $10 more consistent with the scale in for non-public protective equipment.And then there’s a place to eat in Missouri that added a 5% increase, which cited the increase in pandemic-like food costs.
Sandy Block: So now we’re telling a story, and I think we’ll probably report it on the podcast at some point, about how other people save a lot more, basically because they don’t have a position to spend their money.When you start spending money, whether it’s refinancing, going back to school or fixing your hair, you have to be ready to pay a little more and you can thank the pandemic for that.
Ryan Ermey: Now, the last of those makes sense to me, if you pass and buy all those cleaning materials to keep the position sanitized for all your consumers or if, in fact, you are subject to the emerging food prices, what we talk about In this issue, when we talk about inflation, it makes sense for this position to be passed to the Array in a certain sense , we are all in the same boat and especially in a hairdresser, out there you go with the convenience that have kept everything clean, they will do everything in the right and socially distant way, in the safest way possible, so it is a payment that I am more or less satisfied to pay.fair enough.
Sandy Block: Oh, yes. I do.
Ryan Ermey: Because if I retract and threaten me, I mean, you can mean threatening your life without being too hyperbolic, but even having a great additional threat of being on campus, so I don’t know why I’m paying.additionally why I mean, is this a sandy case, where I could ask you to waive the fare?
Sandy Block: Well, I don’t know, but I think you should, I mean, I think it would be perfect …Often, again, I haven’t been to college for a while, but other people who have opposed other types of tuition fees have been exempted, so I’d like to increase it.In fact, I would have raised the factor if you didn’t go to school.
Ryan Ermey: Oh, yes.
Sandy Block: If you’re in one of the hybrid conditions where other people go to school and others stay at home, you may not have to pay a payment to be tracked and tested if you’re not there.in fact that would increase if you didn’t go to school and, unfortunately, some academics would have possibly paid those payments, gone to school and then sent them home as we’ve seen.but yes, especially if the payments are high, in fact, make a consultation about it at my school.
Ryan Ermey: Yes, because, like I said, GW where I went to school, I’ve been at school for a few years.I graduated in 2013, but the GW portion of the tuition that just joined is a $50 donation, he thinks, to the library.
Sandy Block: I love it. I like that.
Ryan Ermey: Well, it’s like, it’s not a gift if I don’t have to donate, thank you.So, if you didn’t need to pay, you had to call and say, “No, thank you.the gift you assumed I was making.” As if the tens of thousands of dollars in tuition that young people pay weren’t enough, they have to pay you all those fees.
Ryan Ermey: So, yes, I think, Sandy, the meeting with those rates as with all the fees you don’t need to pay is to call and ask if you can’t afford them, because you’ll never know if you don’t ask.
Sandy Block: That’s right.
Ryan Ermey: And it turns out that not only in universities, but when it comes to credit cards, when it comes to many other industries, they’re willing to you, if you ask.
Ryan Ermey: Do you even want life insurance? And if he does, what kind does he get and how much?The answers to those questions and more after the break.
Ryan Ermey: We’re back and we’re talking about life insurance policies in our specialty today.And we’re excited to welcome Jennifer Fitzgerald, co-founder and CEO of Policygenius.So, Jennifer, thank you so much for coming..
Jennifer Fitzgerald: Thank you for inviting me.
Ryan Ermey: Let’s start with the $ 64,000 question. Does everyone want life insurance? And if not, when do I deserve a policy?
Jennifer Fitzgerald: That’s a wonderful question and at all times we like to start with our customers.The short answer is that not everyone wants life insurance.The other people who want life insurance are, therefore, other people who have all kinds of monetary obligations that then, that includes if you have children, if you have a wife who depends on your source of income, if you have a loan and if other people live in that loan home, you will want life insurance to make sure that anyone keeps the finances of the bonds , has the source of replacement income to care for them.
Sandy Block: So, Jennifer, in Kiplinger, we have a tendency to like us …term life insurance, because it’s cheaper, less complicated.But as we know, there are also other types of insurance; There’s total life insurance.And I wonder if maybe you can see the difference and help other people perceive what’s smart for them.
Jennifer Fitzgerald: The recommendation is definitely so fair, that for most people who want life insurance, they just want an undeniable term life insurance policy. the total life, is that the term life insurance only has an express duration, so you can take out a term life insurance policy for 20 or 30 years; That is the term. Whereas a permanent life insurance policy, like a whole life insurance policy, will last your entire life as long as you continue to pay the policy premiums.
Jennifer Fitzgerald: And the explanation why term life insurance is recommended for other people who want life insurance is that at most other people don’t want it for the rest of their lives, right? As a general rule of thumb, you only want life insurance, as other people generally get term life insurance during retirement, because life insurance is a source of income replacement if they die prematurely or for for your kids to be successful at college age, because again, it’s a huge monetary legal responsibility for parents, or to adjust to the length of a mortgage, for example. That is why term life insurance is advised. And you are correct that it is very, very affordable and much more affordable for the same policy amount as a permanent life insurance policy.
Ryan Ermey: So what is the ground rule for determining how much policy you deserve to get? Because, apparently, I do not forget to read an article that we publish, that many other people end up underestimating the politics that they need.
Jennifer Fitzgerald: Yes, in fact, at most, other people who have life insurance don’t have enough, so we’ve noticed it in our visitor review as well.So a general rule about life insurance is that you have an amount that is 10 to 15 times your annual income, and you have it for an era that takes you to retirement age, right?So that’s the general rule and a smart position to start with.
Jennifer Fitzgerald: However, there are more confusing calculators, we have calculators, for example, that can take into account any existing life insurance, the number of young people you have, their age, so you can get more precision and accuracy in the calculation., however, the fundamental rule is 10 to 15 times your source of income and a term that will take you to retirement age.
Sandy Block: So, Jennifer, what kind of things are they going to influence the amount of your premiums?And let’s just communicate the term here, because life is a totally different problem.But if you’re looking for a transitive policy, what types of points will have an effect on the amount you’ll have to pay and how can you get the lowest cost imaginable?
Jennifer Fitzgerald: So, the most amount you’ll pay for life insurance is your age and health, because the charge depends on your death threat to the life insurance company.Then the younger you are, the healthier you’ll be.declining term life-to-life insurance rates.
Jennifer Fitzgerald: That said, even for older applicants or others with fitness issues, there are many life insurance companies.It’s a very competitive market. This means that in almost every case, there will be a life insurance company that can offer you a policy.
Jennifer Fitzgerald: So, to get the most productive rate, your most productive bet is to compare a full panel of life insurance companies, because life insurance companies will do the underwriting technique, that is, the threat assessment differently.In their 50s, for example, there will be life insurance companies that will be more cost competitive.Different life insurance companies can simply focus on more competitive costs for younger consumers.
Jennifer Fitzgerald: So, your bet is to work with an independent broker like Policygenius or a physical broker, who can navigate your profile with all life insurance companies.This is the way to make sure you get the price.
Ryan Ermey: And do I even buy if I have a policy at work?Because I think a lot of other people probably think it’s a bit like fitness insurance and say, “Oh, I get it through my job,” and that’s it’s still worth buying food, even if I already have a policy at work?
Jennifer Fitzgerald: It’s definitely worth buying groceries if you have a life insurance policy through paints, for several reasons: the first is that the maximum life insurance policies issued through an employer tend to be of a smaller amount.a paint life insurance policy is $50 or $100,000, making it a constant or income-based amount, and is about a maximum, twice your annual income.
Ryan Ermey: That’s right.
Jennifer Fitzgerald: So go back to our basic rule, you must have at least 10 to 15 times your annual income.You can see the deficit. So, the main explanation for why to buy is that your checkered life insurance policy probably won’t be enough to cover all of your monetary obligations and for your circle of relatives if you had to arrive early.
Jennifer Fitzgerald: The other explanation for which it’s worth buying food is that if you pay for life insurance through your employer, which means you don’t pay through the employer, you probably pay more than if you had it on the open market.This is because the organization’s life insurance takes into account the fact that there is a group of people, some younger, some older, so if you are in the younger aspect of this spectrum, your life insurance premiums actually subsidize some of the older group applicants.Therefore, if you pass out alone as a younger, healthier applicant, you’ll likely get higher life insurance rates with an individual policy compared to an organizational life insurance policy for which you pay premiums.
Sandy Block: So, Jennifer, when she buys term life insurance, she obviously hopes she never has to use it, but asks an insurance company to pay a giant sum if something terrible happens.How can you be sure that the insurance company with Which are you capable of politics?
Jennifer Fitzgerald: The most important thing to look for is monetary stability and monetary score.As a result, there are scoring agencies like AM Best that will assess the monetary fitness and stability of the life insurance company.Score A means it is a fair or safe life insurance company.Therefore, at this point, maximum life insurance companies that are authorized and allowed to factor policies do not have to worry about whether or not they will pay the claim.especially after the two-year challenge era for the life insurance policy.As long as there is a valid cause of death, they cannot dispute anything about the claim.
Jennifer Fitzgerald: So, what we like to say is that whenever you spend with the company that is well known and has a rating issued through one of the rating agencies, you don’t have to worry about: “Hey, will the application be paid if it’s a valid cause of death?”The only exception is suicide in the first two years of a policy, because it is obviously an opposite variety for which the life insurance company would not pay.
Ryan Ermey: In fact, a lot of other people think about it.If other people need to buy life insurance policies, why do they come to their site, to Policygenius?
Jennifer Fitzgerald: We have definitely opened the door to online life insurance shopping and comparisons between all primary insurance companies, so if you are looking for a term life insurance policy, we have the insurance companies of most productive lives on the market. We have a very smart way of entering your information, adding information on fitness, age, all the points that would calculate the premium. You can compare apples to apples, aspect by aspect, all those quotes from the life insurance company, so do all the paintings for you. In addition, we have exclusive life insurance products that you can only get through us.
Jennifer Fitzgerald: Earlier this year, we announced a new term life insurance policy component with Brighthouse Financial.Brighthouse is a giant indexed life insurance company A.This life insurance is one of the highest qualified and highest qualified life insurance for applicants.are instant resolutions then, a 15-minute conversation, an interview with one of our authorized agents, and we can give you instant resolution at a speed that does not take into account more points for instant resolution privilege.
Jennifer Fitzgerald: I noticed a massive increase in the number of Brighthouse life insurance consumers on our platform, because especially in this secretive situation, other people may feel nervous about having a medical exam, which does not require a medical exam. It’s an instant decision, if you qualify.
Ryan Ermey: Well, all the fantastic information, distribute and buy policies, make sure you get the most productive deal possible, and Policygenius is probably a wonderful position to get started.Jennifer, thank you so much for coming. We appreciate that.
Jennifer Fitzgerald: Thank you, Sandra and Ryan. Happy to be on.
Ryan Ermey: After the breakup, explain why a replacement at Apple caused a disorder in the Dow Jones Industrial Average.
Ryan Ermey: We’re back and we’re recording here on August 27th.The episode will be released on August 31, the day that several attractive things happen on the stock market…things I hoped to enlighten our listeners a little bit, Sandy.
Sandy Block: Lights up.
Ryan Ermey: Well, just before you got here, I mean, did you ever feel like a genuine forecaster when you covered something for Kiplinger?Because that’s what happened to me. I got an email from my editor who had Exxon Mobil on the subject line.And I thought, “Oh, no,” because listeners may not forget that I left Exxon Mobil (XOM) from Kiplinger Dividend 15, despite the fact that they’ve been paying dividends that have expanded since the beginning of time.But the news was that Exxon is also being eliminated from the Dow Jones Industrial Average.
Sandy Block: Kick on the sidewalk.
Ryan Ermey: And I felt mystical at the time.
Sandy Block: That’s it.
Ryan Ermey: I beat the S
Ryan Ermey: Salesforce (CRM), Amgen (AMGN) and Honeywell International (HON) will be indexed and therefore together with Exxon Mobil are Pfizer (PFE) and Raytheon Technologies (RTX).Now it’s attractive that Exxon is leaving, because he’s the oldest member of the Dow, and he’s been in the index since 1928.
Sandy Block: Oh, my God.
Ryan Ermey: Enough is enough, given that before the Great Depression, what caused the change? Well that’s another wonderful thing that happens in the same day market, and that’s because Apple (AAPL) will split the shares four to one on August 31st.
Sandy Block: Okay, interesting.
Ryan Ermey: So how do those things relate? Well, Apple is in the Dow and a 4 to 1 equity division is a big challenge for the constituents of the Dow, because unlike other indices, and we talked a little bit about that, I talked about the differences between the indices …But one of the things that makes the Dow original is that it’s price-weighted.Therefore, inventories with the highest inventory costs take up most of the index.And that’s because the Dow Jones is old and it was necessary to be able to calculate a way to do it.
Ryan Ermey: Today, maximum indices are weighted through market capitalization, which is the value of the percentages multiplied by the pending percentages.So basically, the bigger the company, the more weight it takes, but in this case, in the Dow Jones, it’s the highest company you want So, right now, Apple is a giant component of the Dow Jones, because its percentage value is very high.
Ryan Ermey: Now, with a four-to-1 department, the percentage value will be divided by four.The concept is that if you own an Apple percentage, you will now get four percentages for the one whose value is the blower.. The justification for this is regularly for more investors …you can exchange it.
Ryan Ermey: It’s going to have a big effect on the index, Apple will no longer have a disproportionate stake.It’s not going to be in the middle of the package anymore.For example, Dow Jones Indices says index adjustments were driven by Apple’s resolution of splitting its stocks, which will reduce the weight of indexes in the generation sector.to compensate for this reduction.
Ryan Ermey: The Dow aims to be the 30 most influential companies, right?They have secure restrictions on what they would possibly contain. If the costs are too high, they maintain it, because it will be a large part of the index, but they must be a representation of the US economy.But it’s not the first time And have the most influential companies.
Ryan Ermey: So, it’s clear that generation is a very, very big engine of the American economy in those days, so they sought generation allocation.Howard Silverblatt, I don’t know if you can call him a friend of the herd.He’s definitely a friend of mine.
Sandy Block: One of yours, yes.
Ryan Ermey: That’s one of my common sources.
Sandy Block: He’s your friend, man.
Ryan Ermey: I love this guy. We deserve to have it in the capsule, because it has a super-
Sandy Block: You have it in abbreviated numbering, Ryan.
Ryan Ermey: Maybe very well. It also has an amazing old-school Brooklyn accent…which would be wonderful to pay attention to in the pod, but says that, in general, Apple’s division alone will reduce the weight of the generation from 27.6% to 20.4%.Based on emissions, Apple will fall 3.36% waiting for its previous 12% split, increasing the weight of the other 29 numbers by 10%.
Ryan Ermey: In other words, Apple, despite being a $2 trillion company; a billion with a “T” those days, Sandy, it’s going to be in the middle of the package.This will be the 17th stake in the Dow.So that’s what forced the S indices
Ryan Ermey: So that’s what’s happening today, when we get out of the group.If you own the fund that follows the Dow Jones Industrial Average, things are going to be a little different.So if you own it and look for some Apple assignment, it’s time to review your asset allocation.Although few people, I don’t think, have funds from the Dow Jones Industrial Average.There’s some there.
Ryan Ermey: And if not, yes, I feel like other people were looking for an explanation as to why it was going to happen, that was definitely.People were predicting that the Dow Jones would be affected by the division.Let’s see how it behaves in terms of performance, but then you have it.
Ryan Ermey: What if we can all take a moment for me to leave Exxon Mobil?
Sandy Block: Yes, you did.
Ryan Ermey: Really, I feel like a pro.
Sandy Block: You are, but you give up your daily work, even …
Ryan Ermey: That’s correct, thank you.
Ryan Ermey: And that’s it for this episode of Your Money’s Worth.To display notes and other Kiplinger content on the topics we discussed on today’s screen, Kiplinger.com/podcast.You can stay connected to us on Twitter, Facebook or by emailing us at [email protected].
Ryan Ermey: And if you liked the show, write, check and subscribe to Your Money’s Worth wherever you get your podcasts.Thanks for listening.
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