Here's A Gift For You! And it could save you hundreds of dollars!

Dear Valued Customers:
If you went to the doctor, you'd want the truth, wouldn't you? Even if the truth wasn't "preffy". After all, if something was wrong, knowing about it is the only way to make it better. As you know, we offer a thorough VIP INSURANCE AUDIT & ANALYSIS for our most valued customer. Over the last several months, I've discovered a most disturbing thing. Many of our clients have what I call "bad" insurance. We don't sell that insurance. But, sometimes our customers buy it from other sources. You, of course, are one of our valued customers. I've prepared a special article called
To Valued Customers of FSC Insurance Agency: 11 "Bad" Kinds of Insurance-and Why We Don't Sell Them.
As an insurance industry "insider", nothing makes me happier than to reveal the secrets I've learned working inside the industry.
You may not need insurance services right now, but I'm sure you'll find out some interesting and useful information from this report.
Sincerely
Frank S.Cody
President

P.S. Remember, we offer our most valued clients a thorough VIP INSURANCE AUDIT & ANALYSIS. If you haven't had one performed in the last 12 months, you may have serious gaps in your insurance. I don't want to see you suffer an unnecessary loss in your family's finances. Be sure to ask us about that as well.

What Kind of Insurance May Be A “Bad Deal”
HERE ARE 11 WORTH SKIPPING!

Click the titles below to jump to section:
PRIVATE MORTGAGE INSURANCE l SERVICE CONTRACTS l SEPARATE POLICIES VS. RIDERS l FLIGHT INSURANCE l CREDIT INSURANCE l SHORT TERM, CASH VALUE LIFE INSURANCE l LIFE INSURANCE FOR CHILDREN l MORTGAGE INSURANCE l DISABILITY INSURANCE l CANCER INSURANCE l SHORT TERM MEDICAL COVERAGE

PRIVATE MORTGAGE INSURANCE:
This is something that hits about a quarter of all home buyers. When you buy a house, the mortgage company wants to make sure it won't be hurt too badly if you skip town without paying off the loan. Unless you can put down at least 20% of the home's value, you may have to get PMI. (Private Mortgage Insurance). The policy benefits no one but the lender, and it can be so expensive that a years worth of premiums can add up to a 13th mortgage payment. Once you have at least 20% equity in your home, get the bank to drop the policy. It's easier said than done, since the bank will likely make you pay to have the house appraised to prove that you have enough equity. The appraisal can run as much as $300 or even more. TOP

SERVICE CONTRACTS:
These "extended warranties" are usually worth skipping. A service contract is simply a promise to perform or pay for certain repairs or services. Service contracts ofien duplicate what's provided in a standard warranty you get with a car or an appliance. Read your regular warranty careflilly. Then compare it to the service contract. Sometimes, you can purchase service contracts later, when the original warranty expires. TOP

SEPARATE POLICIES VS. RIDERS:
Buying separate policies to cover things like boats or RV's may not be your best choice. While some policies provide added liability coverage and other features, check to see if supplemental coverage is already available through your existing homeowner's policy. The major reason is cost. Think of it as buying in bulk when you add a rider to an existing policy. It costs less than purchasing a whole new policy. TOP

FLIGHT INSURANCE:
This coverage is pretty cheap. Tele-trip Co., is a subsidiary of Mutual of Omaha. They sell $500,000 of coverage for $16.65, and you can get $100,000 worth of coverage for a measly $3.75. It's a nice way to impress your mate, but a bad bet. According to some statisticians, you could fly a major airline every day for 26,000 years before you would be involved in a plane crash. Even then, the odds are in your favor that you would survive the crash. This is a big money maker for the insurance company. American Express offers cardholders $1,000,000 in coverage for just $14.00. If every passenger who flew a commercial flight in 1995 paid $14.00 for a 1 Million dollar flight insurance policy, and the insurance company paid 1 Million dollars for every person that died in a plane crash that year, the insurance company would have still made 7.4 billion dollars! Anyway, you may already have flight insurance if you pay for your plane ticket with a credit card. Some credit card companies give you $100,000 in coverage just for charging your ticket on their card. Be sure to check with your credit card company the next time you purchase a plane ticket. TOP

CREDIT INSURANCE:
This insurance is often pushed on consumers. The most important thing to remember about credit insurance is that a lender cannot make you buy it. While there are many variations (including credit life insurance, credit health or disability insurance and credit unemployment insurance), they all do the same thing. They pay the lender if you can't. So, why would you want to pass on credit insurance? Well, for one reason, you might have enough life insurance, disability insurance, or assets to cover your debts. Besides, you might be able to buy a term life policy for less and the payout would be higher. If a 30 year old Oregon woman in good health takes out one 5 year, 5,000 loan, credit insurance would cost $112.50. The cost of the credit insurance is added to the amount of the loan. If this same woman already had a $50,000 term life insurance policy, and tacked on an additional $5,000 to cover the loan, it would add less than $15.00 to what she already pays for the life insurance policy over the 5 year loan period. Even if she buys a new life policy, it would cost her about $500 for a 5 year policy of at least $50,000 coverage (that is usually the minimum coverage available). Remember, the credit insurance policy would only pay the lender whatever is owed. Credit insurance is also a big money maker for insurance companies. In Louisiana, for example, insurers and lenders keep 79 cents of every dollar that consumers pay in premiums. Even in the states (such as Maine and New York), the insurance companies keep about 40 cents of ever dollar.TOP

SHORT TERM, CASH VALUE LIFE INSURANCE:
If you don't hold on to them long enough, cash value life insurance policies are a waste of money. Cash value life insurance is designed to offer both death benefits (the money paid to your heirs when you die) and a return on investment. While your survivors will still get the death benefit, these policies lose money in big chunks in the first few years. According to a recent study by the Consumer Federation of America, it takes 5 years before one of these policies shows a positive return. And even then, that return is extremely small. Even after 10 years, the average return is only about 20%. All this is due to broker's commissions and other fees paid in the beginning of the policy's life. If you are looking for life insurance coverage for a short period of time, term life is your best bet. The premiums are much lower, and your heirs will still get the death benefit. TOP

LIFE INSURANCE FOR CHILDREN:
This insurance offers a big death benefit, but kids don't have debts or dependents. If you're thinking that a cash value kid's life insurance policy would be a good way to save money for his or her college education, you could do better elsewhere. TOP

MORTGAGE INSURANCE:
It's more expensive than it's worth. Besides, you could do better with another policy - one that you might already have. These policies are designed to make your mortgage payments if you die or become disabled. If you are worrying about burdening your heirs with mortgage payments, you are better off buying straight life insurance. Adding on to your existing life insurance policy is less expensive than mortgage life insurance.TOP

DISABILITY INSURANCE:
If it's provided by your employer - it also offers better coverage than mortgage disability insurance. TOP

CANCER INSURANCE:
In 1994, about 10 million Americans were covered by a "disease specific" insurance policy for cancer, heart disease or stroke. But, if you look closely at what you get, you'll realize that there is a better way - health insurance. Some cancer insurance policies promise to reflind your premiums every 10 years if you've had no cancer. Not a bad deal - if you are the insurance company. A study done by the Federal General Accounting Office in 1994 found that the largest companies selling plans - that cover only hospital stays or disease like cancer - paid out as little as 35% of the premiums that they took in. Some states set payout targets of 75% or more for other policies. While $400 a year may not seem like too much to spend for peace of mind, it's the narrow coverage provided by cancer insurance that makes it a bad deal. They'll cover you if you get cancer, but some policies won't pay for cancer treatments until several years after you have purchased the policy. Others require confirmation of the cancer by a pathologist, which sometimes is impractical or even impossible. And skin cancer, the most common form of cancer, is often excluded. TOP

SHORT TERM MEDICAL COVERAGE:
Don't bother. Often, this coverage is offered to those who leave one job for another. (Here is where you find out how much your employer's been kicking in for your insurance coverage). Under federal law, your old insurance policy can "follow you" for a limited amount of time, but you have to pay the whole premium. You can delay paying the premiums until you actually need the coverage. (You will, however, have to pay the premiums for the previous months, too.) If you are healthy, you might be able to get away without paying at all. TOP

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