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Soon after Mr. Ecker took the helm of the Metropolitan Life Insurance Company, Leroy A. Lincoln, at the age of 49, was made Vice President. He had come into the company in 1918, and in little more than a decade had demonstrated his capacity to handle a variety of complicated administrative problems.

He had a broad and intimate knowledge of the entire insurance business, having previously served as Counsel to the New York State Insurance Department. He brought to his duties not only a keen analytical mind but also a warm sympathy for the men in the field, and special enthusiasm for the social service program of the organization. When, in March 1936, Mr. Ecker became Chairman of the Board of Directors, Mr. Lincoln succeeded to the Presidency, continuing the policies of his predecessor in office.

Frederick H. Ecker became president of the company at a period which then looked to many like a “Golden Era.” All business was at a high peak, and the Metropolitan shared in the general prosperity. Toward the close of this period many people seriously believed that a new order of living had arrived in America and that prosperity, along with low cost life insurance, was to go on forever.

One measure of this buoyant state was the rise in prices of common stocks, particularly those dealt in on Exchanges. Under such promising conditions, it is not surprising that common stocks were seriously urged as suitable investments even for life insurance companies; and one or two companies not subject to the restrictions of the New York Law purchased sizable blocks of well selected common stocks for their portfolios.

It was at this juncture, in September 1929, that President Ecker, in an address before the National Association of Life Underwriters at Washington, analyzed the proposal that life insurance funds be put into common stocks, and took a firm position against such “investments” by the life insurance companies. There were some who challenged his position; but not long after Mr. Ecker’s address had been published and put into circulation there came, in October 1929, the first of the Stock Exchange crashes. His judgment as to the dangers of common stock investments for life insurance companies was vindicated almost overnight.

The full import of this disaster was little understood at the moment. It was not for weeks and months that the country came to understand that its entire economy had suffered a shock which could not be overcome for years. As the first overturns in the Stock Exchange deepened into a well defined national depression, the life insurance companies shared the difficulties of the times with other financial institutions.

Large numbers of people lost their savings on the Exchanges. Many banks closed their doors, foreclosures increased rapidly, and employment began to drop sharply. As a consequence, many people borrowed on their policies, whether it was individual health insurance or life insurance to obtain the cash which they could find through no other source. This situation was further complicated by moratoria on policy loans and surrenders enforced in a majority of the States-limitations which were not sought by the Metropolitan.

The company continued to make all payments where no restrictions existed, and met every obligation as soon as the curbs were lifted. During the decade from 1930 to 1939 the Metropolitan paid out well in excess of $5,000,000,000 to life insurance policies or beneficiaries. These payments saved from the ignominy of public relief many thousands of individuals who had set up their own protective plans through insurance during more prosperous years. Contemporary with the efforts of the Federal Government to afford relief to the destitute members of the population, they certainly lightened the public burden.

Sarah Martin is a freelance marketing writer specializing in the history of business, finance, individual health insurance, and life insurance. For more information on life insurance policies or for no medical exam life insurance, please visit http://www.equote.com.

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Any person who works in the United States receives a unique Social Security number. This number is then required to do all sorts of transactions, from getting a bank account to getting a mortgage. New employers ask for the number, and it is an important part of getting a credit card.

Getting your social security number is a critical goal for identity thieves. They want it because it is one of the keys that unlock their ability to get credit cards and other debt instruments in your name.

So, everyone seems to know that the number is a secret which should be guarded, but how much do people actually know about it, and what is the right way to file a complaint against a business which is potentially compromising your identity.

The social security number system started in the mid-1930s as a way for the government to track the beneficiaries of its new social security retirement system. everyone was assigned a number. That number was the key to knowing how much the person had paid into the system, and it unlocked the payments paid to that person in retirement.

Ironically, the legislation that created the social security number specifically said that it would not become a national identification code. More recently, that sentiment has become laughable. Social security numbers are essentially national identification numbers within the United States.

There are a number of resources Americans can use to obtain information about their social security number.

First, they can check their credit reports frequently, to determine whether anyone is using their number. This can be done easily and for free once per year using the government’s Annual Credit Report system.

Second, they can contact the US Government. The Social Security Administration offers a statement which contains the person’s contributions to the system as well as the expected benefit at retirement.

Finally, several independent websites exist with more detailed information for a given social security number. One example is Social Security Numerology (http://www.socialsecuritynumerology.com”).

Tyler Stanford provides research and consulting services for numerous industries, including identity protection. He has consulted for SocialSecurityNumerology.com.

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As we began the New Year, many of us made resolutions and vowed to get our financial houses in order. Unfortunately many of us broke that resolution long before the first credit card bill arrived. Rather than feel guilty consider these steps to get you started in the right direction – regardless of what time of the year.

1. Build your Emergency Fund:
Not just the pot of gold that you were considering for a new car or vacation, a fund for real emergencies. Your emergency fund should include at least three to six months worth of living expenses. These funds should only be tapped for healthcare emergencies, times of unplanned unemployment and other events of this magnitude.

As you develop your emergency fund, keep enough money in your bank account or money market account to cover three or more months expenses and than ask your Financial Advisor or your banker to help you set up a series of short term CDs to form a ladder with the rest. Laddering funds will allow you to earn more interest on the money that you may need to get your hands on in hurry. At the same time, it helps to make sure that you don’t get your hands on it all at once for non-emergency purposes.

2. Use credit wisely:
Avoid purchasing items on credit whenever possible. If you must carry debt, look for the lowest rates that you can find. Shop out your loans and credit cards for better deals. Ask your creditors for better rates. If you make all your payments on time and are in good standing with them, most likely they will lower your rates. If not, consider moving elsewhere. Be sure to review your credit report at least annually and watch for identity theft as well.

3. Budget money wisely and do not overspend:
Take the time to sit down and set a budget or a spending plan. Live within your means and don’t try to keep up with the Joneses. We are all guilty of it from time to time, but unless we win the lottery we may want to let the Jones get ahead just a bit so that we are not struggling in retirement. You may be surprised to know that there are a lot of doctors and executives out there who are making well over $500,000 per year who are in debt up to their eyeballs and giving the term “living paycheck to paycheck” a whole new meaning.

Be careful not to overspend when it comes to your investments either:
Some firms are offering free trading if you “simply pay the bid ask spread” or have large sums of money in an account. Other firms are offering low priced stock trades while charging outrageously high margin rates or other fees. Investigate these offers closely and make sure that your free lunch is really free. Some times you can save a few dollars on a commission and spend thousands on a wide spread or other fees. Most importantly, do not try to save a commission by trading online or buying no load funds if you really don’t know what you are doing and are likely to risk your hard earned money.

4. Be prepared:
Make sure that you are properly insured. Not just for your car or home (if renting, be sure to pick up rental insurance) but also for your life, health, disability and if appropriate, long term care. Check your coverage on insurance polices, update beneficiaries on your life insurance and make sure that you have an updated will.

5. Learn as much as you can about investing:
According to a Lusaardi and Mitchell study cited in Money Magazine, individuals who understood simple calculations such as compound interest or percentages had higher net worth than those who did not. The internet offers a great deal of help to arm you with information about investing. But don’t be too proud to get help if you still need it or to get a second opinion to see how you are doing.

6. Set realistic goals:
Don’t start with pie in the sky ideas. Set short, medium and long term goals that you can stick to. A short term goal may include building up that emergency fund that you swore you were going to start or perhaps saving for a house. A medium term goal may include paying for your children’s education and a long term goal may include planning for retirement. Set aside time to plan for each of these and be sure to monitor your progress along the way.

7. Know your Benefits:
Learn what you are entitled to or if you will be entitled to any benefits. Does your employer offer a pension plan? Are you eligible for social security? Are you eligible for a spouse’s benefits in the event of death or divorce? Be sure to review your benefits from time to time as they may have changed. Some employers have significantly reduced or even dropped their pension plans all together.

8. Invest with Discipline:
In a recent “Retirement Reality Check” survey, conducted by the Allstate Insurance Company, 40 percent of respondents admitted that they are not even saving seriously for retirement. Overall, 38 percent of respondents said that they expected their retirement to be “financially difficult.” Start saving early and often to help avoid this situation.

Estimate your retirement needs. Fund your 401(k) retirement plan to the maximum or start an IRA (or alternative retirement plan) if you are eligible. Invest automatically via your employer, through payroll deduction or through your financial institution and have money drawn automatically every month before you have a chance to spend it. Pay yourself first. Treat your savings like a bill and pay yourself every month. Make careful decisions between stocks, bonds, mutual funds and other investments. Pick quality investments, stick with them and rebalance when your allocations are no longer in sync with your plan.

Get started. Don’t wait until tomorrow or until you get a raise or until after the holidays. Take action today.

The topics covered in this article are for discussion and information purposes only. Clients should take special care in understanding all of the risks involved prior to investing. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Place Trade Financial, Inc. does not provide legal or tax advice. Please consult your own tax and/or legal advisor prior to investing. This article contains links to other web sites. Place Trade Financial, Inc. is not responsible for the privacy practices or the content of such web sites. Please contact Place Trade Financial at 1-800-50-PLACE or visit http://www.placetrade.com for further information. Place Trade Financial, Inc. is a registered broker dealer. Member FINRA, SIPC.

Sarah M. Place, MBA is the President and CEO of Place Trade Financial, Inc., Member FINRA, SIPC. She has over eighteen years experience in the financial services industry. She has vast experience working with stocks, bonds, mutual funds, 401(k)s and other investment vehicles. She is a member of the National Association for Business Economics (NABE) and the Finance Roundtable, serves as a member of the North Carolina Council on Economic Education (NCCEE) Board of Directors as well as several other boards and committees that are dear to her heart.

She has presented topics including economic issues, investments and retirement planning to numerous groups over the years including the Tufts University Alumni Association and the Cary Jaycees. She is a contributing writer for several publications including Balance Magazine, the Carolina Newswire, the NC Journal for Women, NC Career Networking Magazine and Women in the Triangle.

If you would like to receive a free subscription to our monthly newsletter please visit http://placetrade.com/abt-newsletter.htm

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With advances in medicine and technology, mortality tables have been changed dramatically in recent years. At the bottom line, we live longer. For some of us, this is much longer than they expected. If 20 years ago a 65 years old retiree thought he’ll live till the age of 83 or so, now days he more likely to reach the age of 87.

In some cases these senior citizens need more supplemental cash in order to maintain their standard of living. Since they do not want to liquidate any tangible assets they have.

Today, few financial tools can help these senior by leveraging their insurability.

In this article I’ll spread information about two ways seniors can tap into cash that in most cases they did not know they have.

The first method is Life Settlement or Senior Settlement where an old life insurance policy is being sold on the secondary market and leaves the insured with lump sum of cash. However, no insurance coverage is now protecting the senior. In order to qualify for a life settlement, the insured must posses a policy that is out of contestability and has a death benefit of minimum $250,000. However, some providers will buy a policy that is less than $250,000 , some other criteria has to do with the insured age (65 and above) ,life expectancy (2-12 years) , premium on the policy (less than 5% of death benefit) and cash surrender value not to be more than 30% of the death benefit.

If all parameters fit the buyer’s criteria, an average of 20% of the face value will be paid to the insured as a life settlement less any commission paid to the agent (Broker) who handles the case. Results may vary from case to case.

The second method is Life Insurance Premium Finance. Each and every one of us have hidden asset called insurability. Our insurability allows people to obtain life insurance up to their net worth which all we have minus what we owe. For example a 77 male who’s house worth $1,200,000 and has a vacation home that worth $500,000 plus some stock and pension may have a net worth of $2,000,000 to $2,500,000. What it means is that that person has insurability of $2,500,000 assume no life insurance is in force.

Using the premium program will allow the insured to obtain a loan to finance the premium on the policy. The insured will assign the policy as collateral for the loan plus a personal guarantee equal to 25% of the loan. After the loan is mature (usually 2-5 years)

The insured will have to decide what to do. At that point the insured will have few options:

The first is to pay the loan plus interest and assume full responsibility for future premium. 2nd option will be to renew the loan for another period and to assign more personal guarantee. 3rd option will be to sell the policy on the secondary market as a life settlement.

If choosing the life settlement option, the following numbers should be considered:

$2,500,000 life insurance policy on a 77 years old male will generate an annual premium of around $125,000 plus interest and fees.

After 2 years the total loan can reach the amount of $300,000. With a settlement offer of 20% of the face value the amount will be $500,000.

After paying the loan, the insured will remain with $200,000. Based on the deal structure the insured may have to pay a commission of up to $60,000 to the agent/broker who brokered the deal.

With the Premium Finance Program, if insured passes away during the loan period, the processed will cover the loan and the rest will go to the beneficiaries

In conclusion, senior citizen have some options when it comes to generating cash using their insurability via channels like carrier approved premium finance program and life settlement program, all designed to help them use their life insurance policy and their life insurance insurability.

Boaz Arbel is the General Manager at Arbel Life, LLC, a New York based company that specializes in the high net worth senior market. To obtain further Information about Life insurance Premium Finance, Life Settlement and to read additional articles about these subjects please visit the website: http://arbellife.com

You may also read all publications at http://1800pf.blogspot.com

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