Fixed Annuity VS Variable Annuity

What is a fixed annuity?
A fixed annuity combines two of the most important features of a sound retirement plan -- security and predictability -- with the wealth-building power of tax-deferred compounding.

Some of the important features of a fixed annuity are:

• Tax-deferred compounding of your interest earnings

• Virtually no limit to the amount you can apply toward your purchase payment

• Access to your funds should you need them

• Competitive yields

What is a variable annuity?
A variable annuity allows you to maximize the growth opportunities of stocks, bonds and other securities by deferring any taxation of your potential gains. With a variable annuity, the insurance company offers you a range of portfolios, called sub accounts, which may vary from conservative to aggressive in their investment management style. Often there is also a fixed account option. The fixed account is part of the insurance company's general account. The sub accounts allow you to allocate your investment dollars among an array of portfolios that invest in U.S. and international stocks, bonds and other securities to help you create a portfolio that closely matches your tolerance for risk vs. reward.

What is an annuity?

An annuity is an interest-bearing contract between you and an insurance company in which your money accumulates and compounds, free of current income tax. This tax deferral feature can make annuities an ideal choice for retirement savings. Because you pay no taxes on your accumulated earnings until you actually take money out, your money can grow as much as 30% to 40% faster in an annuity than in a taxable investment earning the same rate of return. There are essentially three types of annuities: fixed, variable and immediate.

What Are Your Chances For Long-term Income Loss?

Unfortunately anyone can get sick or have an accident. Life is unpredictable, but it does allow preparedness. Today now more than ever, lives are saved from premature death caused by accidents or sickness. This causes an increase number of survivors that live on, but with impairments or limitations that mean they can't perform the major duties of their own occupation. In short, they lose their current income, but not their life.

What is disability income protection insurance?

How long do you think you would be able to maintain your present living standards without any income? For just about everyone who works for a living, a sudden loss of income would mean financial stress, and even financial disaster.

Disability income protection is designed to replace the income lost as a result of disability from illness or accident by protecting your earnings and your earning potential - perhaps your most valuable asset.

Home Insurance Q&A

What does homeowners insurance cover?
Homeowners insurance provides protection for your home, personal property such as furniture, clothing, appliances as well as personal liability. It protects you from a variety of events: a fire, explosions, lightning, vandalism, burglary, storms, and more.

What's the right amount of insurance for my home?
Your coverage should match the value of your home. Homeowners insurance can not cover the land your home is on, only the structure. That means that the insurance amount could be less than the purchase price or loan amount.

What is replacement coverage?
Replacement coverage is in the event of a loss, the insurance company will pay what it costs to replace the property at the current market prices.

Does my homeowners insurance cover my personal property?
It will also cover the personal property you own as well as the structure. Your clothing, furniture, appliances, and other belongings will usually be insured up to a maximum amount.

What about special items such as artwork, jewelry, etc.?
A homeowners insurance policy will frequently limit coverage on some special items artwork, jewelry, coin collections, etc. Homeowners who need additional coverage for these types of items may purchase additional coverage.

What about flood insurance?
If your property is officially designated as being in a special flood hazard area, you must obtain flood insurance. While the federal government provides most flood protection, you are responsible for applying and obtaining this coverage. It's important to know that flood insurance is not included in a standard homeowners policy. Even if your home is not in a special flood hazard area, you may wish to consider whether you need flood insurance.

Auto Insurance Q&A

Why must I list all household members, when they do not drive my car?

Household residents that do not need to be included are non-family household residents who do not drive the vehicle.



What is your definition of an accident?

Accidents include at fault, not at fault, reported and unreported collisions that you as the driver were involved in. Not at fault occurrences where your parked vehicle was damaged in a collision are also considered accidents.



What do I do if I have an auto accident?

When you are in an accident. There are 4 steps to take: First, notify the police. Second, exchange information with the other driver(s) involved in the accident. Third, contact your insurance company as soon as you possibly can. Fourth, do all of the required steps your insurance company asks you to do. For more information about filing a car insurance claim, see our auto resources section.



How can I lower my car insurance premium?

There are a number of things you can do to lower your car insurance. They include, shopping around, asking for discounts on your current policy, holding multiple insurance policies with the same carrier, and raising your deductible. If you would like to get competitive quotes on your auto insurance use our auto insurance quote page.

Won't my current health plan cover my long term care, if needed?

No, in most cases it does not. Health plans may cover some of the skilled medical services you may need when you cannot care for yourself after an illness or injury, but usually for a limited period and only as long as you are showing improvement. Health plans typically don't cover ongoing chronic care.

What is long term care?

Long term care is the kind of care that you would need to help you perform daily activities if you had an ongoing illness or disability. It also includes the kind of care you would need if you had a severe cognitive illness like Alzheimer's disease or severe dementia. It is help with all the day to day things that could become difficult to do without assistance, such as eating, bathing, dressing, toileting, etc. This type of care isn't provided in a hospital they only provide acute care. It is chronic care that you might need for the rest of your life.

What are out-of-pocket expenses?

Out-of-pocket expenses include your annual deductible, coinsurance amounts, and any expense deemed not to be "reasonable and customary".

What kind of Life Insurance should I buy?

Probably term, maybe some permanent. There are three factors to consider when purchasing life insurance: the amount purchased, the length of time needed for the coverage and affordability. The most important factor is the amount purchased. You should have the maximum coverage that is needed for protection. If you have less than is needed, when you die, whoever you are trying to protect will suffer a hardship.

How much Insurance should I have?

A simple formula that works is between 5 and 10 times your income. If you can afford 10 times, in our opinion, that is what you should have. If it is needed to protect your business, key person, or buy/sell agreements, then your accountant should be able to tell you.

Why do I need Life Insurance?

• If you are a wage earner and someone depends on you, life insurance is a vehicle to protect the financial well being of that individual.

• During your lifetime you have certain financial goals. Life insurance is a way to achieve those goals for those you leave behind.

• If you are in debt, life insurance is used to protect the person you are indebted to.

• If you are a key person in a company, your loss could mean a real financial loss to that company. Life insurance insures that potential loss.

• If you are a partner in a business, if you were to die, life insurance allows the partner to buy your share of the business from your heirs.

• Life insurance could help pay estate taxes.

• If you have a favorite charity, life insurance can help you give to that charity after you are gone.

Do the included services match my needs ?

What doctors, hospitals, and other medical providers are part of the plan?

Are there enough of the kinds of doctors I want to see?

Where will I go for care? Are these places near where I work or live?

Do I need to get permission before I see a medical specialist?

Are there any limits to how much I must pay in case of a major illness?

Is the prescription medication which I need covered by the plan?

Does the plan cover the expenses of delivering a baby?

How affordable is the cost of health care?

How much will it cost me on a monthly basis?

Should I try to insure just major medical expenses or most of my medical expenses?

Can I afford a policy that at least covers my children?

Are there deductibles I must pay before the insurance begins to help cover my costs?

After I have met the deductible, what part of my costs are paid by the plan?

If I use doctors outside a plan's network,how much more will I pay to get care?

How often do I visit the doctor and how much do I have to pay at each visit?

Tips for selling your home

Set your price carefully

Too high and buyers may not consider it, too low and you're selling yourself short. Realtors often give a free home market analysis if you ask. This gives you an idea of how your home compares financially with similar, recently sold homes in your area. The analysis may also include how much you might expect to earn after closing.

Don't do major remodeling

Don't break the bank preparing your home for sale. Pricey items such as a new roof may be big hits with buyers, but rarely does the buying price end up covering the payout for such costly home improvements. When possible, stick with the simpler (and less expensive) options rather than major remodeling.

Make a good first impression

Curb appeal is important. Keep your lawn and other landscaping neatly trimmed, weeded and watered. Check the exterior of your home for signs of wear and damage, such as peeling paint, foundation cracks or loose shingles, and fix what is needed. Clean the outside of the house, including windows. Many people suggest giving the front door a fresh coat of paint for that warm, welcome feeling. In addition, adding a few flowers in the spring and summer, or keeping the walks cleared of leaves and snow in the fall and winter can be inviting to potential buyers.

Clean!

The obvious seller's commandment: thou shalt clean. Remove all clutter from every room, including closets. Organize your basement and attic. Have a garage sale with all the stuff you don't want to move to your next home! Wipe down and paint walls and trim if necessary. Many people advocate repainting with a neutral color palette to appeal to a wider range of potential buyers. Clean all windows, light fixtures and ceiling fans. Bathrooms should always be squeaky clean. Inspect and make any necessary repairs to the plumbing, heating, cooling and electrical systems. Highlight the bath and kitchen by selecting some attractive new towels, curtains or cabinetry knobs.

And keep it clean

Maintain the new and improved interior and exterior of your home until you successfully sell. It's hard, but it's necessary. A professional cleaning service may be able to help maintain the new clean look with occasional visits.

Light it up

When showing your house, provide plenty of light and make your home a warm, welcoming place. Open the curtains to let in the sunshine. In the event of an evening showing, make sure you have ample lighting available in all areas. Fresh cut flowers make a nice addition, and a pleasantly scented house is very inviting.

Go away

Many realtors and potential buyers would prefer that the seller not be present during a showing, to avoid limiting the buyers' conversation or making them uncomfortable. Children and pets should also be absent or out of the buyers' way during a showing, if at all possible.

Understanding the Value of Your Home

How to determine your homeowner's insurance coverageYour home may be the biggest investment you'll ever make. So if you're serious about protecting that investment, here is some important information to consider when determining the coverage amount for your home.

Make sure that your home is insured for at least 100% of its estimated replacement cost.

To determine your amount of homeowners insurance coverage:

• Get an estimate of the replacement cost of your home, and
• Select the coverage amount that best fits your needs.

We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Determining your home’s estimated replacement cost is important because this will ultimately determine which policy options are available to you. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it’s important to have enough coverage to account for unforeseen circumstances.

Understand the difference between market value and replacement cost for insurance purposes

Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to repair or replace the entire home.

Replacement cost IS NOT:

• The market value of the home.
• The home’s purchase price or the cost of the land.
• The outstanding amount of any mortgage loan.

When buying a new home, be sure to obtain a replacement cost estimate

Before you purchase a new home, make sure that you determine the appropriate amount of coverage needed. Here’s how:

• Ask if a replacement cost estimate is available when you have the home appraised.
• Or, consult with your local builder association or a reputable builder for an estimate.
• You can also check with your State Farm® agent to help you with this process.

Be aware of any architectural details or unique building materials that may affect your estimated replacement cost, such as:

• Upgraded bathrooms or kitchens (including cabinets).
• Finished or partially finished basement.
• Additional rooms or living space.
• Custom molding or arched windows.
• Other unique features..

A contractor or appraiser can help estimate your home’s replacement cost

Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost of your home. Estimates from these sources should reflect your home’s features, like those mentioned above. If you are unable to obtain a detailed estimate from these sources, your State Farm agent can discuss other options for estimating the replacement cost of your home.

Review your policy annually to make sure that your coverage meets your needs

Have you recently remodeled or improved your home?

When you upgrade or improve your home, you may increase your home's estimated replacement cost. Your State Farm agent will then help you adjust your policy to meet your coverage needs. As part of your policy's provisions, you have 90 days to notify us of any remodeling or additions to your home that increases its value by $5,000 or more.

Has the rate of inflation risen since your last appraisal?

State Farm provides coverage that automatically adjusts each year in an effort to compensate for increases in construction costs in your area. However, certain conditions such as severe weather can increase the demand for labor and materials, and raise costs beyond normal inflation. It is important to update your coverage amount each year to keep up with the changing economy.

What influences the building costs in your area?

Market conditions in your area may impact the amount it will cost to rebuild your home if you experience a loss. Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials. Keeping up with the current market conditions in your area, and changing your coverage amount accordingly, will help you maintain coverage at least equal to 100% of the estimated replacement cost coverage for your home.

Keeping Your Boat Afloat

Protecting your boat

Part of being safe is having adequate insurance for your boat and your passengers. While your homeowners policy provides basic protection, for most boat owners, it is not enough.

See our website or contact a State Farm agent for more information on boat insurance. An agent will help you determine the amount of coverage you need.

State Farm may offer a premium discount to boaters who have successfully completed a boating safety course.

The Coast Guard Auxiliary, U.S. Power Squadrons® and/or your local boating officials often conduct safety courses where you can learn more about local laws and regulations, boat handling, navigation and other topics.

Results of Recent SUV Crash Tests

Best Performer: Subaru Forester.

Acceptable Ratings:

• Jeep Wrangler
• Suzuki Grand Vitara
• Suzuki Vitara
• Chevrolet Tracker

Marginal Ratings:

• Kia Sportage
• Honda CR-V
• Jeep Cherokee
• Toyota RAV4

Worst Performer: Isuzu Amigo.

The Institute's crashworthiness evaluations are based primarily on results from the frontal offset crash test.

Each vehicle's overall evaluation is based on three aspects of performance:

1. Occupant compartment intrusion
2. Injury risk measures from a dummy positioned in the driver seat
3. Analysis of slow-motion film to assess how well the restraint system controlled dummy movement during the test.

In addition, the Institute's evaluations reflect the adequacy of front-seat head restraint designs and bumper performance in four crash tests at 5 mph.

These don't affect overall crashworthiness evaluations but are considered when establishing the rankings within each class of vehicles the Institute tests.

The Institute's crashworthiness evaluations don't address the propensity of small utility vehicles to roll over.

As a group, these vehicles historically have much higher fatal single vehicle crash rates than other kinds of passenger vehicles, largely because of very high involvement in rollovers.

However, most of the vehicles the Institute tested are relatively new designs, so no information is available to address this issue for these particular small utility vehicles.

Institute and government crash tests complement each other

The federal government has been testing new passenger vehicles in 35 mph crash tests since 1978.

This New Car Assessment Program has been a major contributor to crashworthiness improvements - in particular, improved restraint systems in new passenger vehicles.

The same 40 mph offset crash test is used to evaluate new cars by the European Union in cooperation with motor clubs and by an Australian consortium of state governments and motor clubs.

Which cars are stolen the most? II

According to the Insurance Institute for Highway Safety and the Highway Loss Data Institute, the 2003-05 model Cadillac Escalade EXT and Cadillac Escalade 4dr have theft claim rates seven to eight times the average for all cars.

Highest Theft Claim Frequencies, 2003-05 Model Passenger Vehicles:

• Cadillac Escalade EXT 4dr 4WD
• Cadillac Escalade 4dr
• GMC Savana 1500 cargo
• Dodge Ram 1500 quad

Which newer cars are stolen the least?

Lowest Theft Claim Frequencies, 2003-05 Model Passenger Vehicles:

• Ford Taurus
• Pontiac Vibe 4WD
• Buick LeSabre
• Buick Park Avenue 4dr

How can you protect myself from vehicle theft?

According to the National Insurance Crime Bureau (NICB), a vehicle is stolen every 26 seconds in the United States.

Learn to reduce your risks.

Secure your vehicle:

• Lock your garage at home.
• Park in well-lit areas.
• Roll your windows up completely and when parked.
• Always lock your vehicle.
• Consider installing a vehicle alarm or other theft protection device.
• Never leave your vehicle unattended while the engine is running.

Secure your property:

• Always hide valuables
• Never hide a second key in or on your car

Park securely

When parking on a street, turn your wheels toward the curb and set the emergency brake.

When parking in a driveway or parking lot follow these rules:

• If front-wheel drive, pull in forward and set your emergency brake.
• If rear-wheel drive, back into the space and set the emergency brake.

When buying a new vehicle consider looking for:

• A factory immobilizer (computer chip in the key)
• A locking steering wheel
• Other anti-theft devices such as an alarm

Always report any suspected theft activity
to your local police and the NICB at 1-800 tel-NICB.

Preparing Your Teen to Drive

The purpose of this article is not to give you the "Rules of the Road" or statistics about auto accidents.

It does give you some common sense things to consider as you help prepare your teenager for driving. These topics include:

• Putting Things in Perspective
• Setting a Good Example
• Being Involved
• Talking Facts
• Setting Some Ground Rules

Financial Strength Ratings

How does State Farm Rate financially?

State Farm Mutual Automobile Insurance Company has received high ratings for financial strength and claims paying ability from four independent rating agencies.

A.M. Best's A++ This is the highest rating possible due to superior financial condition and operation performance FitchRatings AA+ This rating is based on research on insurance and insurance-related companies worldwide. Moody's Aa1 This rating is based on financial strength. Companies receiving this rating offer excellent financial security. Standard & Poor's AA This very high rating is based on strong claims paying ability. Weiss B+ This rating is based on the quarterly evaluations of this independent firm.

Here is some useful information about marriage and your Auto Insurance

• Auto Insurance rates typically drop for men under age 25 when they marry.
• You may be able to both save money and simplify if you can consolidate all insurance policies in the household.
• You may qualify for substantial discounts including:
• Multicar Discount - for multiple vehicles in the household
• Multiline Discount - for having other insurance with State Farm

Getting ready to move?

Research your new area

One of the first priorities when moving to a new area will be to find out about your new town. Check out the local newspapers, community, and chamber of commerce web sites. You can also contact a local State Farm agent.

Review your insurance needs

You may need to make some changes to your insurance. The following will help.

• Find an agent in your area. The agent can assist with transferring your insurance or finding you a new policy that meets your needs.
• Look for possible discounts in your new area.
• Get a quote.

Review your financial needs

Not all financial institutions are located throughout the country. You may need to:

• Open a new account
• Apply for a new credit card
• Apply for a loan

How will attending college affect my Auto Insurance?

College students are generally covered under their parents' auto insurance policy, if the student's primary address is the parent's house.

The specifics vary by state, so you may want to discuss them with a State Farm insurance agent.

Take advantage of insurance discounts. For example, you may qualify for a Good Student Discount if that applies in your area.

New teenage driver at home?

Let State Farm help:

1.) Add a driver to your auto policy. You can:

• Call your agent or
• Log in to your account on statefarm.com

If you do not have a customer ID, please register now

2.) If you are not adding a vehicle, the new driver usually needs to be rated as a primary driver on one of the family vehicles.

3.) Your insurance rates will typically increase when a new driver is added to a policy.

4.) Talk with your teenager about safe driving, as well as how traffic violations will affect your rates.

5.) If you are buying a new vehicle, you may want to consider which vehicles get the lowest rates.

6.) Consider getting a Personal Liability Umbrella Policy (PLUP).

If you or your teenage driver accidentally injures someone or damages their property, you could be sued.

Even though your underlying policies may provide substantial liability limits, it is not uncommon today for juries to award damages that exceed those limits. Coverage amounts are written in increments of $1 million and supplement your present policies to provide additional personal liability protection.

Most Frequently Stolen Cars

The NICB has compiled a list of the 10 vehicles most frequently reported stolen in the U.S. in 2006.

1. 1995 Honda Civic 2. 1991 Honda Accord 3. 1989 Toyota Camry 4. 1997 Ford F150 Series 5. 2005 Dodge Ram Pickup

6. 1994 Chevrolet Full Size C/K 1500 Pickup 7. 1994 Nissan Sentra 8. 1994 Dodge Caravan 9. 1994 Saturn SL 10. 1990 Acura Integra

Car Insurance Coverage and Deductible Options

What is a deductible?

A deductible is the part of a covered loss that you have agreed to pay with your own money.

If you file a claim against your insurance, you will pay only the amount of the deductible. State Farm® will pay the rest - up to your coverage limit.

When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim.

Typically, higher deductibles mean lower premiums.

Who does my auto insurance policy cover?

An Auto Insurance policy typically covers:

• You and your spouse
• Relatives who live in your home
• Other licensed drivers who have permission to drive your insured vehicle.

Types of auto insurance coverage

An Auto Insurance policy generally consists of several kinds of coverages.

Because all 50 states have different laws when it comes to Auto Insurance, the following coverage descriptions are simply general information. They are not statements of contract.

To learn more about auto insurance in your state, contact your State Farm agent.

Most Common Coverages:

Liability

Auto liability coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.

Auto liability coverage falls into two categories:

1. Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
2. Property Damage Liability -- which covers damaged property, and may include loss of use.

Liability coverage also pays legal defense and court costs.

State laws usually dictate the minimum amounts of insurance required, but higher amounts are available.

Personal Injury Protection (PIP)

This coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident.

It may also pay for:

• Rehabilitation
• Lost earnings
• Replacement of services (For example, child care if a parent is disabled.)
• Funeral expenses

Medical Payments

This coverage is available in most states. It pays medical and funeral expenses for covered persons when those expenses are related to an auto accident.

Collision

This coverage helps pay for damage to a covered vehicle caused by:

• Collision with another vehicle
• Collision with an object
• A vehicle rollover

A deductible is required.

Comprehensive

This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.

Examples of this type of damage or loss include:

• Fire
• Wind
• Hail
• Flood
• Vandalism
• Theft
• Hitting an animal

A deductible may apply.

Uninsured Motorist

This coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance

In some states this coverage may also pay for property damage.

This coverage varies by state and depends upon policy provisions.

Underinsured Motorist

This coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.

Application of this coverage varies by state and depends upon policy provisions.

Rental Reimbursement

This coverage pays for renting a car when your auto is disabled due to an auto accident.

Daily allowances or limits vary by state or policy provisions.

Emergency Road Service

This coverage pays for having your auto towed due to a breakdown.

Towing limits vary by state or policy provisions.

This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements.

Auto Insurance Discounts

Are you eligible for an insurance discount?

State Farm auto policies offer a variety of discounts that include:

• Multiple Vehicle
• Multiple Line
• New Vehicle Safety
• Accident Free
• Anti-Theft Device
• Defensive Driving
• Good Driving
• Good Student
• Driver Training

Availability of discounts varies by state or province.

What affects the price of Auto Insurance?

The cost of automobile insurance varies by insurance company and by:

What you buy

• How many coverages you buy
• The deductibles

What kind of car you drive

If you are buying or selling a car, you will need to re-evaluate your auto insurance needs.

Generally, the more expensive the car, the more you pay.

Where you drive

Generally, due to higher rates of vandalism, theft, and accidents, urban drivers pay more for insurance than those in small towns or rural areas.

How much you drive

People who use their car for business and long-distance commuting normally pay more than those who drive less.

Your age, sex and marital status

Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.

Your driving record

Drivers who cause accidents generally must pay more than those who are accident-free for several years.

Your credit history

Studies have shown that credit history is a powerful predictor of future auto insurance losses. Many insurance companies consider certain credit characteristics in addition to many other factors when determining an individual's rate.

What can I do to save money on my auto insurance?

If you're shopping for a car, consider how your choice will affect premiums.

Some insurers increase premiums for cars more susceptible to damage or occupant injury, and lower rates for those that fare better than the norm.

Ask about discounts for good students, insuring more than one vehicle, accident-free driving, and others.

Consider joining a car or van pool, or finding other transportation to work. If you reduce your driving mileage enough, you may lower your premiums.

Drive carefully.

How much Car Insurance do I need?

Consider the following three questions with the help of your agent:

1) How high should my liability coverage limits be?

No one can predict exactly how much you would have to pay if you were to cause an accident.

Ask yourself how you would pay for any damages exceeding your coverage limits.

The higher your liability coverage limits are, the more likely your policy will be able to pay all of the damages.

2) How high or low should my collision and comprehensive deductibles be?

Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs.

Ask yourself how much you would be willing and able to pay on short notice in order to save on your premium.

3) Should I carry collision and comprehensive coverage?

You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed.

Once you have paid off your car, and its value decreases, you might consider dropping these coverages to save money on premiums.

Consider, though, whether the savings would be enough to offset the risk of having to pay the entire cost of repairing or replacing the vehicle.

Insurance Skill Course Overview

You have heard the old adage, “All dressed up but no place to go.” Theequivalent of it for financial advisors is, “Fully credentialed but no one to see.”Even if you are the most qualified advisor with the best products and services,if you do not have prospective clients to see, you will starve. Prospecting is tofinancial advisors as blood is to the human body. It is arguably the lifeblood ofyour practice; the better you can do it, the greater the likelihood of achievingyour goals.

You have heard the old adage, “All dressed up but no place to go.” Theequivalent of it for financial advisors is, “Fully credentialed but no one to see.”Even if you are the most qualified advisor with the best products and services,if you do not have prospective clients to see, you will starve. Prospecting is tofinancial advisors as blood is to the human body. It is arguably the lifeblood ofyour practice; the better you can do it, the greater the likelihood of achievingyour goals.

As critical as prospecting is to a financial advising practice, many advisorsstruggle to do it well. Consequently, this book is devoted to unleashing theprospecting machine within you.

Chapter 1 explains the context of prospecting within the overall selling/planning process. Then it looks at the psychology of prospecting from theadvisor’s point of view. It also examines the psychology of the buying processfrom the prospect’s point of view, discussing some of its effects on prospecting.This discussion provides the foundation for the principles that follow.

The rest of the book explains the prospecting process and the marketingactivities required to prospect effectively and efficiently. Target marketing—what it is and how to do it—is the focus of chapter 2. Chapters 3 and 4 discussvarious prospecting techniques and preapproach methods, which often overlap.

Chapter 5 leads you through the process of approaching prospects to setappointments. In addition, it addresses the task of qualifying prospects. Goalsetting and time management are discussed in chapter 6. Chapter 7 examineshow service is tied into prospecting. The text closes with a discussion ofpractice management and ethics.