Estate Planning: It's Not Just For The Wealthy

Estate planning: Why it’s important

Many people believe that estate planning is just for the wealthy. This is not the case — if you have assets of any kind you have an estate. And if you have an estate you need to have a plan to preserve it and transfer it upon your death.
What a plan can do

• Keep assets in family — An estate plan can provide liquidity to pay any debts, taxes or expenses you leave behind, so your loved ones aren’t forced to sell assets to raise cash.
• Control how assets are divided — Your estate consists of everything you own — homes, insurance policies, retirement accounts, investments, bank accounts, cars, collectibles and other personal property. Regardless of your intentions, without proper planning state laws can potentially dictate what happens to those assets.
• Avoid probate — Certain estate strategies can help to avoid a long, expensive probate process that can cause complications, conflicts and loss of privacy for surviving family members.

Future healthcare decisions; advance directives

• Living will — As part of the planning process, it’s important to make decisions about future healthcare. A living will is a legal document that a person uses to make known his or her wishes regarding life-prolonging medical treatments. It’s important because it informs your healthcare providers and your family about your desires for medical treatment in the event that you are unable to speak for yourself.
• Durable financial power of attorney — A financial power of attorney allows you to name someone to take care of your finances when you aren’t able to. If you make your power of attorney “durable” it will continue to be valid even if you become incapacitated.  The named individual, your agent, will have control of your finances so it’s essential that you name someone you trust completely.

More information
For more information, you can visit www.irs.gov, refer to Publication 950 — Introduction to Estate and Gift Taxes; consult with your tax and legal professionals. And let’s get together — I can work with you to consider options that may help you meet your estate needs and other financial goals.
Marianne Hobbs Insurance Agency 602.547.1970 
http://www.farmersagent.com/mhobbs

Tips For Home Buyers

If you're in the market for a new home this spring, here are some valuable tips for home buyers.  Buying a house? Don’t forget to consider insurance Many experts believe the housing market is getting ready to rebound — I hope they’re right! If you’re thinking about buying a home, don’t forget to consider insurance. Would-be buyers often get pre-approved for mortgages, research school districts, and look at numerous houses before finding the “perfect” home for them. Often however, they don’t consider the insurance implications of buying a specific house. Insurance is not a one-time expense. If you have a mortgage it’s likely you will pay for insurance for the life of the mortgage, so keep insurance issues at the forefront of home-buying decisions. Do some investigation The following factors will typically impact the price and perhaps the availability of insurance for the home: Quality and location of the fire department Proximity to the coastline or floodplain and risk of flooding History of earthquakes Age of the home Condition of the roof Whether or not the home is well-built and up to code Swimming pool or other special features Before you make an offer Get a CLUE — It’s important to learn about prior claims on the house — not that a prior claim is necessarily a barrier to securing insurance. In fact, sometimes it may be good news — for example, the roof was damaged by a wind storm and replaced with a new one. Ask the current owner for a copy of the insurance loss history report, such as a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report from ChoicePoint, or an A-PLUS report from ISO, a source of information about property/casualty insurance. A record of insurance claims on the house can provide answers to two important questions: Have there been any past problems in the home? If damage occurred, was it properly repaired? Note: If the home has been claim free for 5 years there will not be a loss history report on the home. Get the house inspected — The inspector should: Check the general condition of the home. Look for water damage, termites and other types of infestation. Check the electrical system, water heater and septic tank, if there is one. Show you where potential problems might develop. Make certain that past problems have been properly repaired. Suggest upgrades or replacements that may be needed. Call me, sooner rather than later Don’t wait until the last minute to think about insurance. Call me to learn about different coverage options so you can be sure you know what you want and have an idea of the cost. Happy house hunting! http://www.farmersagent.com/mhobbs Marianne Hobbs Insurance Agency 602.547.1970

April Showers Bring...Lots of Auto Accident?

April showers bring ... too many auto accidents? Maybe it's because we don't really understand how fundamentally the rain affects the road and in turn, the way we and others drive which may lead to more accidents. In any event, I would prefer that April showers bring May flowers. Here's an article that may help you reduce your risk when driving in bad weather. Rain, rain, go away Driving is safer on a sunny day Rain causes thousands of highway accidents each year largely caused by drivers who don’t realize that fair- and foul-weather driving are fundamentally different. It’s important to understand exactly how rain can cause an auto accident so that you can help minimize your risk when driving in bad weather. Two types of drivers In bad weather conditions there are two types of drivers who can increase the risk to others as well as themselves: excessively timid drivers and reckless drivers. Excessively timid — This driver may overestimate the danger of weather conditions and drive at unnecessarily slow speeds causing the traffic to back up. This can increase the risk of rear-end collisions and cause other drivers to take inappropriate risks as they try to overtake the slower driver. Reckless drivers — Reckless drivers often ignore the risks posed by bad weather and may continue to drive at full highway speed despite reduced visibility or flooded roads.  Even with four-wheel drive (4WD), vehicles can skid, and when they do their high speed makes it much more difficult to stop. Car accident prevention tips: First and foremost: slow down! It takes longer to stop or adjust in wet weather. Keep your eyes on the vehicle in front of you. Stay toward the middle lanes — water tends to pool in the outside lanes. Increase your following distance. Drive in the tracks of a car ahead of you. Don’t follow large trucks or busses too closely — the spray created by their large tires reduces your visibility. Don’t brake suddenly. Correctly defog your windows. Turn your headlights on even in light rain, fog or overcast conditions. They help you see the road and other drivers see you. Don’t turn on your flashers; they are for emergencies only and may confuse other drivers. Never drive beyond the limits of visibility. Never drive through moving water and avoid standing water. Rain, rain, go away … but until it does, it’s a good idea to slow down and allow extra time to get to your destination. It’s also a good idea to call me so you can be sure you have the coverage you want to help protect yourself, your family and your vehicle. Contact us: Marianne Hobbs Insurance Agency             602.547.1970       http://www.farmersagent.com/mhobbs

The Money Machine In Your Home

How would you like to have a money machine in your home? This machine would be placed prominently in your living room, next to your television set, maybe sharing the same electrical outlet. It might look like a casino slot machine, with wheels and clatter and bells. And it would produce real money for you, day after day, week after week, month after month, year after year, just as steady as you please. When you need money, you simply go to your money machine and scoop up the number of new bank notes you need for all your household and personal requirements. In a year’s time, how much money would such a machine produce for you?

But there is a catch to it: You cannot build a safe box around it, nor can you hire guards to protect it from theft. And suppose it breaks down? Repair might be possible, but suppose spare parts are not available. No, your machine must just stand there producing money for you, and you would surely hope it would stay in good working order for a very long time. Certainly you would come to depend on it.

So, the key question is this: if you had such a wondrous money producing machine in your home, and, knowing you could not safeguard it from theft or mechanical breakdown, for how much money would you insure it?

You certainly would insure it, wouldn’t you? Consider that this machine might well produce money for you for many years, maybe 50 or more. If it was producing, say $50,000 per year for you, in 20 years, it could be the source of as much as a million, probably much more.

Fact of the matter is, you DO in fact have such a money machine in your home. Maybe it’s you that others depend on. Maybe it’s someone else that you and your family depend on to provide all or a good portion of the income you live on. Unlike the money machine in this story, this real person cannot stay in relative security at home. No, he or she must go out into the world everyday to brave the elements and workplace. Anything can happen. Those ambulances you see running around out there have real bodies in them.

I first heard the story of the money machine in 1972, when I was learning the basics of life insurance. I’ve always thought that “life insurance” is an unfortunate name for it. A much more accurate, (and better sounding), title for it is “income assurance.” No one can insure that life will go on, but it makes great sense that probably the greatest asset a person has-being able to use talents and intelligence and be paid for doing so-needs assurance, more so than insuring buildings against fire, autos against accident, and jewelry against theft.

It is human nature to presume that the inevitable final event in every life won’t happen for 100 years. So, we put it off, because it makes us uneasy to think that maybe, just maybe, our story will end sooner rather than later…that somehow, maybe, by golly, I’ll think about it another time; call me next year. Maybe then I’ll tempt fate and actually book an appointment with an experienced, knowledgeable income assurance agent, maybe one with the letters C.L.U. after his/her name, which mean Chartered Life Underwriter, and signify areal pro at what he/she does.

Contact me to look at Life Insurance options for you and your family:

Marianne Hobbs Insurance Agency 602.672.9000

http://www.farmersagent.com/mhobbs

Article by Thomas Bottaro ChFC, http://www.eco-wizzard.com/the-money-machine-in-your-home/

Life insurance can help fill the gap

Did you ever think that life insurance could be a valuable tool during your working years as well as after? Interestingly, life insurance can be a useful tool for many individuals and families who are approaching retirement as well as for those who are already retired.
Most of us buy life insurance to replace the loss of income that would occur should we die or to create an estate for our loved ones (click here see accompanying Did You Know article), but there are many other reasons:

• You have an aging parent or disabled relative who depends on you for support
• You have a large estate and expect to owe estate taxes
• You own a business and have a partner
• You have a substantial joint financial obligation, such as a personal loan for which another person would be legally responsible after your death

Life insurance and retirement
Many retired couples depend on Social Security and pension income to survive. When one spouse dies, those payments may be reduced — survivor benefits are often much lower than retiree benefits — while many of the ongoing expenses remain for the survivor. You can help protect your surviving spouse from this reduction in income with life insurance. The death benefit can replace your missing income so a personal loss does not become a financial one as well.

CALL ME: MARIANNE HOBBS INSURANCE AGENCY 602.547.1970 OR
http://www.farmersagent.com/mhobbs I can help you analyze your individual situation so you can determine your life insurance requirements and decide whether your coverage is appropriate for your needs and your family.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040.
Products and features may not be available in all states and may vary by state.

Going from the rat race To your home space As corporate downsizing and rightsizing continue and the Internet makes telecommuting ever more productive, an increasing number of entrepreneurs are discovering the benefits of running businesses out of their homes. If you are looking to be your own boss, set your own hours and not worry about getting laid off, a home-based business may be the right decision for you … but make sure you and your valuable property are covered. If you operate a retail business or office from your home, your homeowners and personal auto insurance typically will not give you the coverage that you want. However, a home business insurance policy may help insure you, your property and your income while you grow your business and beyond. Coverage for your home business The coverage under most home business insurance policies is similar to that of most small business insurance policies. Property Coverage - Includes coverage for losses to your building and premises, business personal property and contents. Liability - Covers damages to your business for losses to third parties from: Bodily Injury — people injured on your premises or by a product you manufacture or sell. Personal Injury — violations of privacy, false imprisonment, wrongful eviction, etc. Advertising Injury — for losses due to alleged slander, libel, or copyright infringement by you or your employees. Many of us are re-evaluating our lifestyles and operating a home-based business may provide a new opportunity. Call me — I can give you information you need to help select coverage that you want. Forward this to someone you know — I can show them coverage that may fit their home-based business needs too. Contact Me: Marianne Hobbs Insurance Agency 602.547.1970 or http://www.farmersagent.com/mhobbs

To Buy Or To Lease?

To Buy or Lease? If you’re interested in a new car, the question typically arises: Should I lease or buy? As is often the case, it depends on your individual situation. Many people equate leasing with renting but it may be more useful to consider leasing as financing the use of a vehicle whereas buying with a loan finances the purchase of a vehicle. Your lifestyle, your priorities As you think about whether to lease or buy a new vehicle, it’s important to make financial comparisons but it’s also important to consider your lifestyle, your objectives and personal priorities — what’s important to you. If you … Enjoy driving a new car every three or four years; want lower monthly payments; want a car that is always under warranty; don’t want to trade or sell used cars; don’t care about building equity in your vehicle; have a predictable lifestyle and drive an average number of miles per year1; properly maintain your cars and are willing to pay more over the long haul to get these benefits, then you may want to consider leasing. On the other hand, if you … Value long-term cost savings over lower monthly payments; enjoy owning your vehicle and would like to pay it off and be payment-free for a while; don’t mind the unexpected cost of repairs after the warranty has expired; like to customize your vehicle; drive more than the average number of miles per year and don’t mind higher monthly payments, then you may want to consider buying your vehicle. Caveat: Lack of flexibility Some consider the inflexibility of the lease agreement a significant drawback of leasing. If you want or need to terminate your agreement before maturity, you will likely pay a significant penalty for early termination. In many cases, the penalty may equal the remainder of payments due under the agreement. So before you enter into a lease make sure your lifestyle and ability-to-pay are predictable and stable. Contact me:Marianne Hobbs Insurance Agency 602.547.1970 OR http://www.farmersagent.com/mhobbs Visit http://www.smartmoney.com/calculator/autos/buy-or-lease-a-car-1302833645461 for more information about leasing. When you decide which option you feel is appropriate for your situation, call me. We can sit down and review your coverage and options so you can be sure you have the insurance you want to go with your new ride. 1According to SmartMoney, the average American driver puts about 12,000 miles per year on his or her car. (http://www.smartmoney.com/calculator/autos/buy-or-lease-a-car-1302833645461) The Case for Leasing Allows you to get a new car frequently Provides short-term affordability Results in fewer repair bills Avoids upside-down loans The Case against Leasing You don’t own the vehicle Penalties for early lease termination Additional charges for excessive mileage and any damage to the vehicle Must buy or return car at end of lease

Snowmobile the safe way

The U.S. Consumer Product Safety Commission estimates that approximately 10 people die while riding snowmobiles each year and about 13,400 receive emergency medical treatment from snowmobile injuries each year.¹
Are you getting ready to go snowmobiling? If you are, remember these safety tips:

• Slow down — Speed is a contributing factor in many fatal snowmobiling accidents. Be sure you have enough time to react should you need to change speed or direction quickly and drive defensively particularly after sunset. In poor weather conditions, reduce speed below the posted limit when necessary.
• Be sure you have a first-aid kit — In addition to typical items such as bandages, flashlight and cotton gauze, be sure to include a knife, compass, map and means of communication such as a cell phone or CB radio.
• Avoid traveling across lakes, streams and rivers — It’s very difficult to accurately judge ice coverage or depth of frozen waters, and snow cover can act as a blanket that prevents safe ice from forming.
• Dress for the weather — Layer clothing and wear a durable waterproof outer shell and footwear. Wear a helmet, eye protection and other safety gear. Wear reflective clothing at night.
• Stay on marked trails — Ride single file, keep to the right and pass on the left only when the trail is clear. Keep an eye out for fences, tree stumps and obstacles that may be concealed by snow. And, of course, stay off private property.
• Never travel alone — Snowmobile accidents may result in personal injury so try to have someone ride along with you so you can help each other in case of accident or breakdown. If you must travel alone, tell someone your destination, planned route, and when you expect to return.
• Know the rules of the road — Learn the applicable snowmobile traffic laws and regulations for the state and area where you’ll be traveling. They serve to keep you and others on the trails safe. 
• Never drink while driving your snowmobile — Drinking and driving can be a deadly combination. Practice zero-tolerance!
• Be sure the snowmobile is in good operating condition — Conduct a safety check before each ride. Double check gas levels, brake lines, and lights before heading out. Also, carry a small toolkit with you for emergency repairs.

How safe is snowmobiling? Only as safe as the person operating the snowmobile. That’s why it’s important that you know how to operate it safely and that you always exercise good judgment. And make sure you have the insurance you want for your snowmobile.
CONTACT ME: MARIANNE HOBBS INSURANCE AGENCY 602.547.1970 or
http://www.farmersagent.com/mhobbs

¹Source: http://www.cpsc.gov/cpscpub/pubs/541.htm

Term or Permanent Insurance?

It’s all about net cost

Term or permanent insurance? That seems to be an age-old question that many of us still ask when considering the purchase of life insurance. And the answer is most often: It depends on your individual situation.

Did you know … Term life insurance often has the lowest initial premium, but for longer-term needs may actually cost more than permanent insurance such as Whole life or Universal life insurance? And, only about 4 percent to 5 percent of term policies result in death claims because the great majority of term policies aren’t in force when death occurs¹.


Your situation
Your life insurance needs depend on a number of factors, such as whether you’re married, the size of your family, the nature of your financial obligations, your current and potential future earnings, and your goals. Let’s get together — I can work with you so that you can analyze your individual situation to help you determine your life insurance requirements.


Contact me: Marianne Hobbs Insurance Agency 602.547.1970 OR http://www.farmersagent.com/mhobbs


¹Source: Essentials of Life Insurance Products, Stevick, 2008, p.4.28

Products and features may not be available in all states and may vary by state.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040

Prepare Today For Your Family's Tomorrow

Perhaps you’re not in perfect health; maybe you’ve been turned down for life insurance before. Yet you want to plan ahead to take care of your obligations — you don’t want to burden your family, the ones you care most about. You may think you’re stuck without options but we may be able to help.

Now, you may qualify for up to $20,000 of permanent whole life insurance¹ with no medical exam — only 3 health questions. Here is some information you may want to consider:

• You don’t have to be in perfect health — If you’re age 80 or younger and still living independently you may qualify.
• Your policy builds cash value — You may be able to borrow against your policy to cover unexpected expenses.
• Your rate will never increase — Regardless of your age or health, your premium will never go up.

With the average cost of a funeral now more than $8,000², this coverage can help you provide for these types of expenses and is an easy way to help you prepare for tomorrow. You've always planned ahead to take care of your obligations — that's why you have insurance. Call me to learn more so you can be sure you have the life insurance you want.
Contact Me: Marianne Hobbs Insurance Agency 602.547.1970 OR http://www.farmersagent.com/mhobbs




¹Farmers Graded Death Benefit Whole Life Insurance Product. Limited Death Benefit during first two policy years. Policy form numbers ICC11-2011-123, 2011-123 series.

²National Funeral Directors Association, General Price List Survey, National Average 2010.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040.
Products and features may not be available in all states and may vary by state.

Are You An Accidental Landlord?

Attention, homeowners turned landlords: Have you recently decided to rent your home instead of selling it in the current market? If so, you are now a landlord, and when you become a landlord your property becomes a place of business. There is a policy specifically for landlords. 

A growing number of homeowners are becoming landlords by default rather than design. Many who are relocating for a job or other reasons are having trouble selling their homes. Others who are relocating would prefer to wait until the market values increase before selling. And many people who own second homes are choosing to rent them to generate additional income. In any event, you may find yourself becoming an “accidental landlord.”
Keep in mind that when it’s rented, your property changes character — it becomes a place of business. It is no longer your primary or secondary residence, and there is a different type of insurance policy for your status as a landlord. A landlord insurance policy normally covers the property — both the building and the landlord’s personal property.


Many choices
Landlord policies typically cover the building in case it’s damaged or destroyed by:

• Fire
• Explosion
• Lightning
• Windstorm*
• Hail damage*

There are other important coverages that are typically part of a landlord package policy but which can be added to a property only landlord policy for an additional premium:

• Coverage for vandalism
• Loss of rents
• Landlord Personal Liability Coverage

Depending on your individual situation, you may consider some options especially important. For example, do you rely on rental income to pay your living expenses? If so, a landlord policy may include coverage to help compensate for lost rent if the building is uninhabitable because of covered damage such as fire or explosion. Personal liability coverage often can be added to a landlord policy that covers property only. You may want liability coverage in case you are sued because someone is hurt on or in the rental property.


Call me
I can give you additional information and answer any questions you may have so that you have the coverage you want when you rent out your property.


Marianne Hobbs Insurance Agency 602.547.1970 OR http://www.farmersagent.com/mhobbs

*Coverage may not be available in all areas and can vary among states.

It’s Your Stuff

“What are the odds?”
“My landlord has insurance.”
“I can’t afford renters insurance.”
Question: What if everything you own in your apartment or rental home was stolen or destroyed? Normally, your landlord’s insurance doesn’t cover your personal property. Would you have the thousands of dollars it could cost to replace all of your belongings? If your answer is no, you may want to consider renters insurance. Standard coverage typically includes:
Coverage for your possessions

• Based on the property you own, you choose the amount of coverage you want.
• Your personal property is covered anywhere in the world.
• Coverage is on a named-peril basis, which means that only losses resulting from causes listed in the policy are covered (subject to exclusions).
• For an additional premium, replacement cost coverage for your personal property may be available to pay for the cost of repairing or replacing lost or damaged items without deducting for their depreciation.

Additional Living Expenses

• Covers additional living expenses if a covered loss makes your living quarters uninhabitable.
• Coverage is based on a percentage of the amount of insurance you choose for your personal property, and covers the necessary increase in living expenses (hotel, meals, laundry, etc.) to maintain your normal standard of living for the shortest time needed to repair or replace the living quarters, or for you to permanently relocate, but only up to a stated period of time, often 12 months.

Liability coverage — If your guest or visitor is injured, or their property damaged because of an accident at your residence, you could be sued:

• At our expense, we will select an attorney to defend you from any covered claim or lawsuit.
• We pay for the covered damages from a covered claim or lawsuit if you’re legally liable for someone else’s bodily injury or property damage.

Medical Payments to Others (sometimes called Guest Medical)

• Pays for necessary medical expenses for people (other than residents of your household) accidentally injured at your residence, or accidentally injured elsewhere due to your activities or due to your pet, regardless of liability up to coverage limit stated in policy.

Call me for more information. Learn how you can pay a little to cover a lot with renters insurance from Farmers — and how you may be able to save money with Farmers’ auto/home discount.
Contact Me: Marianne Hobbs Insurance Agency 602.547.1970 OR http://www.farmersagent.com/mhobbs