Agency Newshttp://kofcleveland.org/news/en-US2012-05-28T16:27:30ZSquarespace Site Server v5.11.81 (http://www.squarespace.com/)Government’s long-term health care program is haltedhttp://kofcleveland.org/news/2012/2/1/governments-long-term-health-care-program-is-halted.htmlZach Caro2012-02-01T23:22:04ZSelf-employed doesn’t have to mean self-insuredhttp://kofcleveland.org/news/2012/2/1/self-employed-doesnt-have-to-mean-self-insured.htmlZach Caro2012-02-01T23:19:05ZIf you’re self-employed, in addition to your title of Sole Proprietor, Owner, CEO, Head Honcho or whatever you call yourself, you must add the title of Risk Manager. You’re responsible for protecting your business assets from unexpected damages, lawsuits, etc. If you’ve already insured your business against liability and physical damage, don’t step away from your Risk Manager role until you’ve also insured your income against illness or injury.Maintaining a business savings account specifically for contingencies is important, but that money should be for unexpected expenses or business interruptions, not for health-related loss of income. Why? Because if you can’t work due to an illness or injury, you may have substantial extra expenses to cover in addition to replacing your salary. For example, you may need to hire employees or subcontractors to serve your clients. You may need additional, customized equipment or modifications to your workspace to accommodate your recovery. The last thing you want to do is drain your savings to meet the daily needs of you and your family. That’s the role filled by disability insurance.Don’t assume you can’t afford itOne of the biggest mistakes you can make regarding disability insurance is to assume you can’t afford it or you won’t qualify. At least do some basic research and apply for coverage. Policies such as KofC’s Income Armor give you options that can help you fit this critical protection into your risk management budget.For example, here are two ways you can reduce your premium:
➊ Choose a two-year or five-year maximum benefit period.Depending on your age, the best option is probably a policy that pays benefits until you reach age 67. But a two-year or five-year maximum benefit period would cover many types of partial or total disabilities you might encounter in your working life.
➋ Choose a longer elimination period.An elimination period is the number of days a total disability must exist before benefits begin to accrue. Typical elimination periods are 30, 90, or 180 days. Choosing a longer elimination period lowers the policy’s premium. But be sure you have enough set aside in your business’s contingency fund to account for the longer gap.As your professional insurance agent, running a small business and the challenges of risk management are two of my specialties.
Talk to our agents about how to protect your business income, your retirement needs, and your family’s financial future. ✦
]]>Money to Live on vs. Money to Leave onhttp://kofcleveland.org/news/2012/2/1/money-to-live-on-vs-money-to-leave-on.htmlZach Caro2012-02-01T23:16:36ZIf you’re within 10 years or so of retiring and you’re looking for the best place to safely move some savings or a recent windfall, it’s understandable that you’d be leaning toward a basic retirement plan building block such as an annuity. Life insurance may not be on your radar screen, especially if your children are grown. But when you look carefully at the reason you’re bolstering your retirement funding now, you  may see an important role for permanent (or “whole”) life insurance.When you’re deciding where to put retirement money, ask yourself this basic question: Is this money to live on or to leave on? Let’s look at some paths you might take, depending on which of these two answers you give.
Answer:  to live on
If this is your answer, you see yourself withdrawing interest and/or principal from this pot of money after you retire, to pay for regular living expenses, travel, etc. In this case, a fixed-rate annuity that has a guaranteed minimum return might be a good idea. An annuity is an insurance contract that gives you an option no other retirement account provides: the ability to convert the account into monthly payments guaranteed for life or for a specified number of years. Fixed annuities such as those offered by KofC also give you the option of having payments to your spouse continue after you die. If you don’t choose the payments for-life option, you still have other options. It’s a secure, flexible option for retirement income.
Answer:  to leave on
Rather than funding your regular retirement expenses, you may be more concerned about making sure your spouse has sufficient retirement income should you die first. For example, you might want to use this money to offset a pension that does not continue payments to your spouse after your death.You may also wish to leave money to your heirs, such as your children and/or grandchildren. A life insurance plan can disperse those ”leave on” monies directly to those you choose without the necessity of going through the probate process.You may also want this money to help defray estate taxes, whether you or your spouse is the last to die. For protecting a surviving spouse’s income, or protecting your estate for your heirs, permanent life insurance may be a better option than an annuity (whether the annuity is inside or outside of an IRA).
If you’re in good enough health, you may be eligible for life insurance even up to age 80. This strategy may create a considerably higher return on your money than a retirement account. And depending on the type of policy you choose and how long you live, you may be able to borrow money from the guaranteed cash value or the cash value generated by dividends (dividends are not guaranteed).Your answer to this basic question, “Is this money to live on or to leave on?” may not be a simple one, and maybe a combination of products is the right solution. Let me help you work it out now. ✦
]]>Ethically Investedhttp://kofcleveland.org/news/2012/2/1/ethically-invested.htmlZach Caro2012-02-01T22:53:14Z
Insurance companies are among the largest investors in the worldwide economy. Investment income plays a crucial role in our ability to pay benefits to policy owners while keeping premiums competitive and running our business effectively. I want you to know that as our Order sets its investment strategy, we continually screen out organizations that are at odds with our Catholic values. Before investing in a company, we consider the guiding philosophy and ethical standards of the people who lead it. We also assess whether its employees are treated well, whether it’s a good neighbor in its community, and other, similar factors. As it turns out, this strategy is as sound financially as it is ethically. We’ve continued to grow throughout this economic crisis, and no insurer in North America is more highly rated than the Knights of Columbus. In short, your premium dollars work hard for you, for charities, and for many worthy companies.
]]>Supreme Knight Statement about S&P Recent Downgrade 8/8/11'http://kofcleveland.org/news/2011/8/17/supreme-knight-statement-about-sp-recent-downgrade-8811.htmlZach Caro2011-08-17T18:23:38Z

This Video and article first appeared on 8/11/11 at: http://www.kofc.org/un/en/news/releases/detail/sandp_action.html

The action taken by Standard and Poor's on Monday, August 8, does not reflect in any way on the business operations or performance of the Knights of Columbus.  S&P’s action – as their statement indicates – was caused by the downgrade of the rating of the United States in response to this country’s debt crisis. According to S&P’s statement on the methodology for their decision “the U.S. sovereign credit rating constrains the long-term ratings on these U.S. insurers.” S&P’s latest release cites the “very strong financial profiles” and “favorable business profiles” of the Knights of Columbus and other insurers affected by their rating revision. In addition, they cite the benefit the Knights of Columbus has from our “affinity relationships with our policyholders.”

Because of our sound and ethical business practices and investment strategies, the Knights of Columbus is stronger today relative to the industry than it was five years ago. Over the past five years, the life insurance industry as a whole has seen a 6.8 percent decrease in sales. But during that same time, Knights of Columbus life insurance sales have grown by 20.7 percent. Since the financial crisis began in 2008, we have improved both operational performance and the credit quality of our investments. We continue to have the highest rating possible from A.M. Best (A++) and the highest rating S&P is able to give to any insurance company based in the United States (AA+). In short, there continues to be no more highly rated insurer in the United States than the Knights of Columbus, and our members can continue to have the highest confidence in our performance as a company and in the safety of the money that they have entrusted to us.

]]>S&P Downgrades Five AAA-rated Insurers Heavily Invested In U.S. Debthttp://kofcleveland.org/news/2011/8/17/sp-downgrades-five-aaa-rated-insurers-heavily-invested-in-us.htmlZach Caro2011-08-17T18:01:17ZBy Matthew Sturdevant

  on August 8, 2011 10:34 AM |  | Comments (1) 

This article first appeared at: http://blogs.courant.com/connecticut_insurance/2011/08/five-aaarated-insurers-might-f.html

Five top-rated insurance companies that stack their investments heavily in U.S. debt were downgraded Monday by Standard & Poor's.

The insurers' reduced rating was tied to a downgrade of U.S. government debt on Friday, but it won't have a significant effect on the industry, according to a top insurance regulator.

Standard & Poor's put all AAA-rated insurers on credit watch in a July 15 notice, at the same time government debt was put on watch.

The companies include New Haven-based Knights of Columbus, New York Life Insurance Co., Northwestern Mutual Life Insurance Co., Teachers Insurance & Annuity Association of America (TIAA) and the United Services Automobile Association (USAA).

Knights of Columbus specializes in providing life insurance, annuities, long-term care coverage and disability insurance to Catholic families. Knights of Columbus has $80 billion in in-force life insurance, which is the face value of all existing policies.

"We're still one of the top rated insurers in the United States . . . we still have the absolute top rating from A.M. Best, and we have the top rating available in this environment to an insurer from S&P," said Knights of Columbus spokesman Andrew T. Walther.

"The rating is a rating if we were to issue debt," Walther said. "We don't issue debt. We don't intend to issue debt. We don't have any bonds out there."

]]>The Debt Crisis explained:http://kofcleveland.org/news/2011/8/17/the-debt-crisis-explained.htmlZach Caro2011-08-17T17:50:27Z

]]>What you don't know about long-term care may jeopardize your retirement.http://kofcleveland.org/news/2011/7/20/what-you-dont-know-about-long-term-care-may-jeopardize-your.htmlZach Caro2011-07-20T14:29:01ZChances are you've put something away for retirement. But the truth is that your savings may be at risk from something you've never considered: the unexpected need for long-term care. Consider the facts:

• Over 70% of those who live to retirement age will need long-term care at some time in their lives.¹

• Medicare has limited long-term coverage,² TRICARE does not cover long-term care,³ and Medicaid only offers support after your assets are spent down to state-required levels.

• Receiving care in a nursing facility can cost as much as $75,000 a year.4

• In-home care averages over $19 an hour, not including home modifications you may need.4 

1 U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov, September 2008. 

2 America’s Health Insurance Plans, “Guide to Long-Term Care Insurance,” 2004.

3 TRICARE, “Long Term Care.” TRICARE. June 2009.

4 The national average of Nursing Home and Home Care from John Hancock Cost of Care Survey, November 2008.

]]>Put away the rose colored glaseshttp://kofcleveland.org/news/2011/7/13/put-away-the-rose-colored-glases.htmlZach Caro2011-07-14T03:49:59Zby Thomas P. Smith Jr. (first apperered at KofC.org on 7/11/11)


Ah, the old rose-colored glasses. You know the ones I’m talking about. I don’t wear them all of the time, but I keep them handy. They are always around when I need them.

Every summer when the Dallas Cowboys go to training camp (that’s right — I’m a Cowboy fan … go ahead and have your fun), I pull out my rose colored glasses and all the flaws that other people see in my team disappear. When I wait until the very last minute to go to the store to buy something I desperately need, I pop on my rose-colored glasses and convince myself that there is no need to worry — they’ll have what I’m looking for, it will be on sale, and there will be no line at the checkout. Life is good with those rose-colored glasses!

Football teams and shopping sprees are trivial matters. A crooked view of life through my glasses on those topics doesn’t hurt me much. But sometimes those glasses are big trouble.

You know you need life insurance. I know: it’s not a glitzy purchase … it’s not something you show off to your friends … but you know you need it. If you have some, chances are pretty good — great actually — that you need more. And you know why you need it. It’s all about your family. It’s not about you. It’s about them.

So, assuming you know you need it, and I know you need it, why aren’t we getting together to arrange for it? Those glasses.

The glasses go on and we decide to wait until tomorrow, because after all, nothing bad can happen today. And when nothing bad happens today, those glasses go on much easier and fit much better tomorrow, because, after all, if nothing went wrong yesterday, what are the chances that something will go wrong tomorrow?

You’re feeling good, you’re looking good, you’re loving life, and you have so many other, more important things to do with your hard earned cash. The only time you really think about life insurance, really, is when we call you. And for a brief second when that call comes in, or when you’re reading this column, or when you see your agent, you say to yourself: you know, I really need to take care of that. But then the glasses come out, slide over that nose, and suddenly, tomorrow is a better option than today.

In the end, thinking that the Dallas Cowboys are going to go 16–0 and win the Super Bowl every year is foolish, but not dangerous. Thinking that you have an unlimited supply of tomorrows to make a decision on securing the future for your wife and children and grandchildren is both foolish and dangerous.

Put away the glasses (temporarily) and talk with your agent. We’ll make your life really rosy.

]]>Press Release from supreme:http://kofcleveland.org/news/2011/5/24/press-release-from-supreme.htmlZach Caro2011-05-24T15:33:58ZInsurance News fortune headlines press release
For immediate release:
May 24, 2011
Knights of Columbus Climbs 29 Spots
on Fortune’s List of Top Companies

(NEW HAVEN, Conn.) — The Knights of Columbus has moved up 29 places in Fortune’s annual ranking of America’s 1000 largest companies this year according to the recently released Fortune list.

Fortune’s 2011 list ranks the Knights of Columbus – a fraternal benefit society – at 900 in total revenues. It ranked 929 last year.

The organization also rose 21 spots on the list of most profitable companies, moving to 725 this year, up from 746 in 2010 on Fortune’s list.

Last month, the Knights surpassed $80 billion of life insurance in force – twice the amount of insurance in force slightly more than a decade ago, when CEO Carl Anderson took the helm. The organization also has more than $17 billion in assets under management.

“There is no more highly rated North American insurer than the Knights of Columbus. We have every confidence in our continued success because we have a fundamentally solid business model, which continues to serve us well,” said Supreme Knight Carl A. Anderson. “Despite the difficult economic conditions in the United States, the Knights of Columbus has maintained its strength, has enjoyed record years of growth, and has improved its standing relative to the insurance industry as a whole. We foresee similar success going forward.”

The Knights of Columbus has enjoyed record growth during the last several years – despite the weakness of the overall economy – and is one of only five life insurers that holds the top rating from both A.M. Best (A++) and Standard and Poor’s (AAA).

The Knights of Columbus was established in 1882 as a fraternal benefit society, with one of its primary aims to enable members to protect their families with life insurance. Today, the K of C has more than 1.8 million members in the United States, Canada, Mexico and Central America, the Caribbean, Philippines and Poland.

One of the most active charitable groups in the United States, Knights of Columbus members last year set records by providing nearly 69 million hours of charitable service and more than $151 million in donations to charitable causes. Cumulative figures show that, during the past decade, the K of C has donated more than $1.36 billion to charity, and provided nearly 640 million hours of volunteer service in support of charitable initiatives.

# # #
KNIGHTS OF COLUMBUS – ONE COLUMBUS PLAZA – NEW HAVEN, CT 06510
WWW.KOFC.ORG

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