This is the third part in a short series about insurance basics. In the first part, I explained how insurance works. In the second, I shared some general tips about how to save on insurance of all types. Today’s article offers info about auto insurance.
You’ve had car insurance since you were old enough to drive, but how much do you really know about it? At its heart, your policy probably contains a few basic types of coverage.
Liability Insurance
In most states, you at least need to have liability insurance, which covers the cost of any damage you do to other people or things with your car. (But note that liability insurance doesn’t cover injuries to you or other people on your policy; for that, you need PIP insurance, which I’ll cover in a moment.)
Insurance companies like to quote liability coverage as a series of three numbers, like 50/200/25. If that’s Greek to you, here’s a break-down:
The first number is how much, in thousands of dollars, the policy will pay for each person (besides you) injured in an accident ($50,000 in this example).
The second number is the total that the policy covers for each accident ($200,000 here).
And the last number tells how much property damage will be reimbursed ($25,000 in this case).
But there’s more to auto insurance than just liability coverage.
Tip: Many experts recommend that you carry automobile liability insurance coverage equal to your net worth — the total value of everything you own. This can be expensive to do on individual policies. Instead, it may be more cost effective to buy an umbrella policy, which gives you extra liability coverage above what your home and auto policies provide. I don’t know much about umbrella policies, but I’m actually hoping to learn more about them. If you’d like, I can share what I learn.
Collision and Comprehensive Insurance
As you can probably guess, collision insurance covers damage to your car when it hits (or gets hit by) another vehicle or object. But because collisions aren’t the only way for your car to get banged up, comprehensive insurance covers damage from events other than collisions: floods, fire, theft, alien invasion, and so on.
Collision and comprehensive coverage make more sense for newer vehicles, and are generally required if you’re still making payments on your car. They’re less necessary — and may actually be a waste of money! — on older cars. So, if you’re still driving around that 1970 AMC Gremlin, ditch the collision and comprehensive.
Personal Injury Protection (PIP) Insurance
PIP insurance is sometimes called “no-fault” insurance and is required in certain states. It covers medical costs (and possibly lost wages) if you’re injured in an accident. Your policy may also cover passengers and pedestrians.
Uninsured Motorist Insurance
No surprise here: Uninsured motorist insurance covers you and your passengers if you’re in an accident caused by a driver who doesn’t have insurance. It also covers hit-and-run accidents.
How to Save on Car Insurance
Every year, you spend hundreds — maybe even thousands — on car insurance, and chances are, you’re paying too much. The August 2008 issue of Consumer Reports estimated that the average family could save $65 per month by shopping around for car insurance.
Last week, I gave some general tips to save on insurance of all types. Here are some other ways to lower your costs on car insurance:
Ditch towing coverage. Towing — or “emergency roadside service”, as it’s sometimes called — is an easy cost to self-insure. (You likely pay $10 to $30 a year for towing insurance, and one tow costs about $100, which you can save quickly by not paying for towing insurance.) Sometimes your car will break down, but if it’s well maintained, that won’t happen often. Also note that if you’re in an accident, towing is usually covered under collision insurance — but check your policy to be sure.
Plan ahead. Compare auto insurance quotes before you buy your next car. Insurance costs are based on how likely a car is to be stolen, damaged, or to inflict damage, and how badly occupants tend to be hurt in accidents. Repair and replacement costs are also factors. Many insurance companies list cars with lower insurance costs on their websites.
Watch your credit. Most insurance companies now look at parts of your credit report to determine your premiums. This sucks, I know, but parts of your credit history have been found to correlate to what the company has to pay out. They can’t adjust your rates on your current car if you pay on time and in full, but anytime you add a new vehicle, its premiums can be affected by your credit.
Don’t pay monthly. Insurance companies charge a few bucks each month for monthly billing. To avoid that fee, pay every six months or even once a year, if possible. If you have to pay monthly, use your insurance company’s autopay program, which costs less because they don’t have to send you a paper bill.
Though it’ll always cost more to insure a new Corvette than a used Corolla, one of the best ways to keep costs low is to maintain a clean driving record. Insurance companies charge you based on how likely you are to file a claim — and accidents are the biggest source of claims.
Some insurance companies offer discounts for taking safe-driving courses. Others give low-mileage discounts — the less you’re on the road, the less likely you are to be in an accident. Be sure to ask about all the discounts you qualify for!
Note: Much of this material was drawn from the “Death and Taxes” chapter of my book, Your Money: The Missing Manual, which was published earlier this year by O’Reilly Media. You can download a sample chapter here. Image by Incase Designs.
Filing for bankruptcy is a tactic often used to erase large amounts of debt, but nondischargeable debts can prevent that clean slate.
Certain kinds of debt, including child support, student loans, and some tax bills, typically survive a bankruptcy filing.
Some 403,000 Americans filed for bankruptcy in the 12-month period ending March 31, 2023. For one reason or another they found themselves in debt situations complex enough to seek bankruptcy as a means of relief.
Though on the surface bankruptcy may appear to produce an opportunity for a fresh start, nondischargeable debts prevent it from being a true end-all solution.
What Does Nondischargeable Debt Include?
Nondischargeable debts can include home mortgages, certain taxes, child support, and student loans, and can vary based on the chapter of bankruptcy filed.
A debt may also be considered nondischargeable if a creditor formally objects to a discharge in court and wins.
When a debt is discharged through bankruptcy, the debtor is relieved of any legal obligation to pay it back, and the creditor is prevented from taking any further action to collect that debt. This includes contacting the debtor or filing a lawsuit.
Personal loans, credit card debt, and medical bills are types of debt generally considered dischargeable.
Nondischargeable debt, on the other hand, does not dissolve in a bankruptcy filing. The debtor remains liable for payment even after the filing is complete. These are types of debt that Congress has deemed unforgivable due to public policy.
Recommended: Understanding Bankruptcy: Is it Ever the Right Option?
Types of Nondischargeable Debt
Nineteen categories of nondischargeable debt apply for Chapters 7, 11, and 12 of the Bankruptcy Code. (A more limited list of exceptions applies to cases under Chapter 13.)
Except in unique circumstances, if a debt falls under one of these categories, it is not considered dischargeable.
1. Debt incurred from U.S. taxes or a customs duty.
2. Debt for money, property, or services obtained fraudulently or under false pretenses.
3. Any debt excluded from bankruptcy filing paperwork (unless the missing creditor received prior notice and had ample time to respond to the filing).
4. Debt acquired due to fraud, larceny, or embezzlement while working as a fiduciary.
5. Debt contracted for a domestic support obligation, including child support and alimony.
6. Debt from intentionally harming another person or their property.
7. Tax debt as a result of a fine, penalty or forfeiture that is, at minimum, 3 years old.
8. Student loan debt (unless not discharging the debt would impose an “undue hardship”).
9. Debt incurred due to the death or injury of someone caused by the debtor while operating a vehicle, vessel, or aircraft while intoxicated.
10. Any debts that were or could have been listed in a prior bankruptcy filing, and the debtor waived or was denied a discharge.
11. Debt obtained by committing fraud or misappropriating funds while acting as a fiduciary at a bank or credit union.
12. Debt incurred for the malicious or reckless failure of a debtor to fulfill any commitment to a federal depository.
13. Debts for any orders of restitution.
14. Debt incurred by penalty in relation to U.S. taxes.
15. Any debt to a spouse, former spouse, or child that is incurred through a separation or divorce.
16. Debts incurred due to condominium ownership or homeowners association fees.
17. Legal fees imposed on a prisoner by a court for costs and expenses related to a filing.
18. Debts owed to a pension, profit-sharing, stock bonus, or another retirement plan, as well as any loans taken from an individual retirement annuity.
19. Debt obtained for violating federal or state securities laws, common law, or deceit and manipulation in connection with the purchase or sale of any security.
How Will Nondischargeable Debt Affect Me?
Nondischargeable debt is just like any other debt in the sense that it must be paid off on time to avoid negative consequences.
If a debt is left unpaid for too long, the creditor may sell the debt to a collection agency, which then may result in any number of the following repercussions:
• Significantly lowering a credit score
• Flagging a borrower as “high risk” to future lenders
• Decreasing the odds of approval for future credit offerings
• Increasing high-interest rate offers with less favorable terms
• Adding negative remarks to your credit history
• Activating a lien against a property or asset
• Prompting creditors to pursue legal action
• Enacting wage or asset garnishment
How Can I Resolve Nondischargeable Debts?
Making plans to resolve any outstanding debts as soon as possible is key to managing a credit history and salvaging future credit opportunities. Here are a few strategies to consider for paying off debts.
Stop Using Credit
The first step toward debt resolution is to stop collecting it.
The average American consumer has 3.84 credit cards, and the average balance is $5,910 in 2022, according to data from Experian.
Making a point not to purchase anything that can’t be bought with cash outright can help curb unnecessary expenses. This includes larger purchases that may require financing. Leaving credit cards at home and removing their information from online payment systems can also help remove the temptation of using them.
Create a Budget
According to a 2022 Debt.com survey, 85% of Americans said making a budget helped them get out of or stay out of debt.
A monthly plan including income and expenses can help reveal where extra money might be coming in and where you can cut back on unnecessary spending. A plan will provide a holistic view of spending habits, allowing for larger decisions to be made about how to change habits in order to fit new, debt-focused priorities.
Cutting back on expenses and carefully tracking spending can help reveal extra dollars and cents needed to pay down debts.
Start a Part-Time Job
When paying down debt is a top priority, taking on another job or picking up additional hours at your current one can be extremely helpful.
An extra check here and there can provide funds to make additional payments on debts, helping to dissolve them more quickly. Consider options such as working weekends at a local coffee shop, picking up a temporary gig in food delivery, or freelancing for additional income.
Recommended: 19 Jobs That Pay Daily
Consolidate Debt
Applying for a personal loan is a strategy for managing several debts simultaneously. Though it may seem counterintuitive to take on another loan, a personal loan can be used to pay off multiple existing lines of credit, such as credit cards, and consolidate them into one loan with a single monthly payment and, possibly, a lower interest rate.
In addition to comparing rates, it’s important to make sure you understand how a new loan could benefit you in the long run. For instance, if your monthly payment is lower because the loan term is longer, it might not be a good strategy, because it means you may be making more interest payments and therefore paying more over the life of the loan.
However, a debt consolidation loan could help streamline payments and ease the anxiety that comes with being responsible for managing numerous lines of credit.
The Takeaway
Nondischargeable debts require more than bankruptcy to be resolved, and without proper management, they could worsen your current financial situation. Like any other debt, nondischargeable debt must be paid off on time in order to avoid negative repercussions. Creating a plan to handle outstanding debts as soon as possible is a smart choice.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Highlights
The Panic of 1907 was a major U.S. financial crisis in the fall of 1907.
It exposed deep weaknesses in the U.S. financial system and raised concerns about bankers’ economic influence.
In its aftermath, Congress created the Federal Reserve Bank of the United States, the linchpin of the modern financial system.
In 1907, cars are unreliable luxury goods, electricity is still rare outside urban areas, and penicillin won’t be discovered for another 20 years. The world is a totally different place.
Yet 1907 turns out to be a critical year in the development of the modern American financial system. That fall, financial speculators set off a period of gut-wrenching stock market volatility that spurred numerous bank runs and failures that ruined many investors and countless ordinary folks.
But it would have been far worse had financier and industrialist J.P. Morgan and richest American John D. Rockefeller not come to the rescue.
What Was the Panic of 1907?
The Panic of 1907 was a major American financial crisis that occurred in the fall of 1907. Also known as the Bankers’ Panic or Knickerbocker Panic, it nearly ruined the New York Stock Exchange. In its aftermath, Congress created the Federal Reserve Bank of the United States.
The crisis began as a result of financial speculation on the New York Stock Exchange but quickly spread throughout the United States. Many banks failed as a direct result of the panic, wiping out thousands of savers and investors, and nearly drove New York City into municipal bankruptcy.
The crisis ended only after a coordinated effort by private financiers and U.S. Treasury officials to pump tens of millions of dollars into the teetering financial system.
The Panic of 1907 was the last major financial panic to occur before the creation of the Federal Reserve system in 1913. Afterward, Congress investigated the causes of the crisis and recommended that a national bank be created to prevent similar panics in the future.
What Caused the Panic of 1907?
The immediate cause of the Panic of 1907 was a failed scheme by financial speculators to buy up a huge number of shares in a company called United Copper. However, at the time, the U.S. financial system had some underlying weaknesses that increased the risk that such a scheme would cause severe turmoil in financial markets.
Seasonal decline in bank reserves. In the early 1900s, many banks’ reserves were closely tied to the agricultural calendar. Banks typically had less cash on hand after the fall harvest, leaving them more vulnerable to bank runs.
San Francisco’s rebuilding effort. A devastating earthquake leveled much of San Francisco in 1906, and a capital-intensive rebuilding effort was in full swing by late 1907. New York banks were providing much of the financing, further depleting their reserves.
Ongoing economic recession in the U.S. The Panic of 1907 began in October 1907, by which time the U.S. economy had been in recession for months. Financial institutions and smaller investors were already stretched, laying the groundwork for a panic.
Widespread weakness at New York’s trust companies. Trust companies were a vital source of short-term loans for stock market investors. But they had much smaller cash reserves than banks and were even more vulnerable to runs and failures.
A failed attempt to corner United Copper’s stock. F. Augustus Heinze, a financier and part-owner of United Copper Company, joined forces with his brother Otto and his associate Charles Morse to buy as much United Copper stock as possible. The idea was to drive the price up and then sell the shares at a massive profit. The scheme failed, ruining the Heinzes and weakening several financial institutions associated with them.
Crisis of confidence in trust companies. As worry spread through New York’s investor community, customers began to pull cash from a trust company run by an associate of the Heinzes and a fellow speculator named Charles W. Morse. This led to a full-blown run that quickly spread to other trust companies.
Liquidity crisis on the New York Stock Exchange. As the panic grew, trust companies dramatically slowed lending to investors in an effort to preserve capital. Traditional banks followed suit. Stock prices fell sharply and concerns grew about the viability of the New York Stock Exchange, or NYSE — the country’s most important financial exchange.
Within a matter of days, a seemingly isolated financial maneuver had consumed New York City’s financial industry, and about a dozen banks and trust companies in the city had already failed.
But what happens in New York’s financial industry doesn’t always stay in New York’s financial industry. Financial panic spread outward and numerous hinterland banks experienced runs of their own. A broader economic crisis loomed, demanding intervention at the highest levels of government and industry.
What Happened During the Panic of 1907?
The Panic of 1907 began as an isolated, ill-advised exercise in financial speculation and morphed into a widespread crisis of confidence in the American financial system.
Key Participants
Countless individuals and hundreds of financial institutions directly or indirectly participated in the Panic of 1907, but the number of central players was relatively small. They included individual financiers, financial institutions, and top-ranking U.S. government officials.
Financier F. Augustus Heinze and brother Otto Heinze. The Heinze brothers’ failed attempt to corner shares in United Copper set the panic in motion. It also bankrupted them and essentially ran them out of the banking industry.
Financier Charles W. Morse. A close associate of the Heinzes and fellow financial speculator, Morse was also ruined in the panic. His association with Knickerbocker Trust Company president Charles T. Barney sparked the first of many runs on New York trust companies.
Financier Charles T. Barney. Knickerbocker Trust Company was the third-largest trust company in New York before the panic. Though Barney refused to fund the United Copper scheme, his close ties to Morse proved too much for investors, which drained Knickerbocker’s cash reserves and forced it to suspend operations for five months.
Financier and industrialist J.P. Morgan. Reprising his role from the Panic of 1893, J.P. Morgan organized a group of bankers, industrialists, and U.S. government officials to stabilize the financial system as the crisis grew.
Industrialist John D. Rockefeller. Then the richest person in the United States, Rockefeller personally deposited $10 million in National City Bank (Citibank’s predecessor institution) at Morgan’s urging. The gesture temporarily increased investor confidence but wasn’t enough to resolve the crisis.
U.S. Treasury Secretary George B. Cortelyou. Cortelyou worked closely with Morgan on a bailout for Trust Company of America, the failure of which would have deepened the crisis. Cortelyou ultimately deposited more than $25 million in U.S. government funds in several key New York banks and trust companies.
NYSE President Ransom Thomas. As credit dried up and trading volumes plummeted at his institution, Thomas approached Morgan’s group for a bailout. Morgan and several other prominent bankers put up nearly $35 million to keep the exchange afloat.
New York City Mayor George McClellan. The market panic deepened New York City’s existing financial woes. Facing a looming loan payment deadline, McClellan asked Morgan for a $20 million loan. He obliged, averting municipal bankruptcy.
Industrialist Elbert Gary. Gary, Morgan, and other U.S. Steel co-founders organized U.S. Steel’s purchase of TC&I, a distressed industrial company. That helped avert bankruptcy at a major New York brokerage firm that borrowed against TC&I’s near-worthless shares.
U.S. President Theodore Roosevelt. The TC&I deal needed Roosevelt’s blessing to go through. Forced to choose between compromising his anti-monopoly principles and worsening an already dire financial panic, Roosevelt went with the less-bad option.
Key Events & Impact
The Panic of 1907 lasted from Oct. 16 to Nov. 2. It began with the Heinzes’ failed effort to corner United Copper and ended with the forced merger of U.S. Steel and TC&I.
The Heinzes wash out. Otto Heinze started buying up United Copper shares on Monday, Oct. 14, and continued into the next day. But he underestimated the number of shares outstanding and ran out of money. The scheme unraveled on Oct. 16, with the stock dropping by more than 80%.
Concerns grow around Heinze- and Morse-affiliated institutions. Augustus Heinze and Charles Morse sat on the boards of more than two dozen financial institutions. One Heinze-controlled bank failed on Oct. 17 and several others experienced runs on Oct. 17 and 18.
Run on Knickerbocker Trust Company. Spooked by Knickerbocker president Charles Barney’s connection to the United Copper scheme, customers started pulling funds on Friday, Oct. 18. The run deepened the following Monday. By Tuesday, Oct. 22, Knickerbocker had suspended operations. It remained closed until March 1908.
Trust Company of America bailout. The Knickerbocker run spread to other New York trust companies, most notably the Trust Company of America. On the evening of Oct. 22, a group of bankers and government officials led by J.P. Morgan raised $8 million to keep it afloat.
New York Stock Exchange bailout. As panic grew, trust companies stopped providing the short-term loans that kept NYSE traders solvent — and the NYSE itself operational. Facing an unprecedented suspension of operations, the NYSE asked for and received about $25 million on Thursday, Oct. 24, and another $9 million on Oct. 25.
New York bank bailouts. By Oct. 24, more than a dozen New York banks and trust companies had failed. That evening, Treasury Secretary Cortelyou committed $25 million in U.S. government funds to shore up several others. John D. Rockefeller deposited $10 million in National City Bank.
Public relations blitz to restore confidence. Anticipating further panic when markets opened on Monday, Oct. 28, Morgan, Cortelyou, and others talked to every reporter they could over the weekend. They explained the steps they’d taken to avert the crisis and what more they’d be willing to do if need be.
New York Clearing House provides short-term credit. Also over the weekend, New York Clearing House — a critical player in the city’s financial markets — announced it would provide up to $100 million in credit for banks and trust companies. This stemmed cash outflows and calmed financial markets.
New York City municipal bailout. With a $20 million municipal loan repayment coming due on Nov. 1, Mayor McClellan reached out to Morgan in secret to ask for a bailout. Fearing renewed market panic if word got out, Morgan quietly bought city bonds worth $30 million.
Moore & Schley bailout and trust company crisis resolution. The market turmoil put intense pressure on the finances of brokerage firm Moore & Schley, which had borrowed heavily against nearly worthless TC&I stock. In marathon overnight negotiations on Nov. 2 and 3, Morgan brokered a grand bargain to bail out Moore & Schley and several trust companies that remained at risk of failure.
U.S. Steel-TC&I merger. The Moore & Schley bailout required U.S. Steel to purchase TC&I at a favorable price. Under normal circumstances, the merger would have violated antitrust law, but Morgan and high-ranking government officials persuaded President Roosevelt to approve it anyway.
The “panic” part of the Panic of 1907 peaked on Oct. 24 and 25. Although the early interventions led by Morgan and Cortelyou kept things from totally spiraling out of control, the real turning point was New York Clearing House’s massive credit extension over the weekend of the 25th. That gave Morgan and friends breathing room to shore up New York City’s finances and stabilize the troubled trust companies.
Response & Interventions
The Panic of 1907 unfolded over the course of about three weeks. A lot happened during that time, and the main participants in the response probably experienced it as a sleep-deprived blur of action and reaction.
In hindsight, the panic had several distinct phases. Each generated a specific response from the financiers, industrialists, and government officials who’d taken it upon themselves to limit the damage.
Initial fallout from the United Copper scheme. This phase preceded the full-blown panic. It consisted of largely unsuccessful efforts by bank owners and executives, most notably at Knickerbocker Trust Company, to quell runs on their own institutions.
Morgan-Cortelyou alliance. Morgan and Cortelyou got involved on Oct. 22, once it became clear that the trust companies couldn’t manage the crisis on their own. They collectively raised nearly $50 million to keep the industry afloat.
NYSE bailout. The NYSE got the single biggest bailout — nearly $35 million — because it was the single most important institution at risk of failure. Its collapse would have had devastating consequences for the U.S. financial system and economy.
Restoring confidence in the U.S. banking system. This was the most public phase of the crisis management effort. Morgan, Cortelyou, and his associates blitzed the press, assuring Americans that their money was safe in the bank. New York Clearing House’s massive credit line was critical to this effort as well.
New York City municipal bailout. Though they arose independently, New York City’s financial woes deepened during the Panic of 1907, and Morgan felt obligated to step in. He judged that the crisis would reignite if the city declared bankruptcy at such a sensitive time.
Grand bargain. This was the Panic of 1907’s final act. Both Morgan’s group of capitalists and the decidedly progressive Roosevelt administration agreed that all outstanding threats to the financial system had to be resolved as quickly as possible.
How the Panic of 1907 Affected the Future Economy
Though it’s barely remembered today, the Panic of 1907 had a deep and durable impact on the American financial system and economy. Its influence rivaled two much better-known financial panics: the Crash of 1929, which sparked the Great Depression, and the Great Financial Crisis of the late 2000s.
Establishment of the Federal Reserve System
The most significant outcome of the Panic of 1907 was the establishment of the Federal Reserve system.
Unlike other industrialized nations in Europe and Asia, the United States had been without a central bank since the 1830s. That mattered because other countries’ central banks could extend credit to private banks as needed to shore up cash reserves and maintain liquidity. They could do this not only during extraordinary financial crises but in response to costly disasters like an earthquake in San Francisco — or even in response to seasonal forces like the capital-intensive fall harvest.
Though many politicians and economists saw the lack of a U.S. central bank as a major economic vulnerability, key players in the financial industry were opposed to the idea of a government-run creditor of last resort. Resistance to the idea continued despite periodic financial panics in the 19th and early 20th centuries.
The Panic of 1907 was a turning point in part because it was the second time in less than 15 years that a single individual — J.P. Morgan — led a broad bailout of the American financial system. The idea that one man held such sway over the economy made even the most committed capitalists nervous.
So in May 1908, Congress established the National Monetary Commission to study the question of whether the U.S. should have a central bank. The commission reported its findings in 1911 — in short, arguing that the U.S. needed a central bank — and Congress created the Federal Reserve system two years later.
Antitrust Backlash
The Panic of 1907 sparked an intense political backlash against individual plutocrats like J.P. Morgan and the concept of concentrated wealth and influence in general.
The U.S. House of Representatives’ Committee on Banking and Currency established a select committee to examine the “money trust” — the financial institutions controlled or influenced by Morgan and his associates.
Known as the Pujo Committee, it investigated questionable allegations that Morgan engineered the crisis to profit from the merger of U.S. Steel and TC&I while weakening the power of the trust companies. There was a fair bit of spectacle involved, and people close to Morgan blamed lawmakers’ aggressive questioning for hastening his death shortly after his testimony.
But the Pujo Committee’s final report was a comprehensive (if somewhat exaggerated) accounting of the U.S. economy’s vulnerabilities. Among other revelations, it found that Morgan had ownership in or influence over more than 100 companies worth more than $22 billion, a shocking sum at the time.
The Pujo Committee’s findings further increased support for a federal income tax, which was already on its way to being enacted via constitutional amendment. That officially happened in 1913. The following year saw the passage of the Clayton Antitrust Act, which strengthened existing antitrust laws and — in a clear swipe at Morgan — prohibited people from serving as directors for competing companies under certain conditions.
Final Word
It’s tempting to dismiss the Panic of 1907 as a relic of a bygone era, like the telegraph or whale-oil lamps. It’s also tempting to downplay it in light of much more recent economic crises, like the financial crisis of the late 2000s or the brief but severe COVID-19 recession in 2020.
But the Panic of 1907 remains relevant today.
For starters, it was the final financial crisis before the U.S. government set up the Federal Reserve system in the hopes of averting future crises. New York Clearing House’s broad credit guarantees, which headed off further panic, inspired the Federal Reserve system’s discount lending window for troubled banks.
The Panic of 1907 was also an important inflection point for the American financial industry after the excesses of the Gilded Age, as the industry’s leaders realized the limits of self-regulation and gained newfound appreciation for (limited) government intervention.
That said, the reforms instituted in the wake of the Panic of 1907 couldn’t prevent the Great Depression or the late-2000s financial crisis. Those crises prompted their own reforms. Unfortunately, so will future financial panics.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
What’s the first sign that a movie is going to be bad? I’ll go first. When you can tell that the trailer used all its best footage. Sometimes you can just tell, and it never fails to prove true. After someone asked for other examples in an online film forum, here is what moviegoers had to say.
1. Multiple Comedy Trailers Highlighting the Same Joke
When you have seen multiple trailers for the same comedy movie, and they are all centered around the same joke or laughing point, that’s when you know something is up. One individual pointed out, “That’s usually the only joke in the movie.”
2. The Remake of a Previously Successful Movie
If a film or film franchise was already successful, what reason do you have to try to make a reboot? Many agreed, “Feels like it’s just a safe money-grab. It would be cool if movies that didn’t do so hot get reworked into good movie remakes, but I guess that’s too much of a risk for studios to bother with.”
3. Visual Effects and Celebrity Presence
When the only focal point of the film is the significant celebrity presence or the overwhelming reliance on visual effects to captivate the audience, get yourself out of there; it’s going to be a stinker, my friend.
4. Death by Exposition
Exposition in a film can be a helpful tool to move along plot points, highlight character traits, or even just illuminate specific details. What is not helpful is when there is a character giving an exposition to a fellow character who should already know what’s going on.
5. Multiple Writers, Lack of a Clear Idea
We have all seen movie credits that list multiple writers without realizing the correlation to the incoherent plot of the story. It doesn’t always happen, but when there are more than two or three writers, the film can lack coherency. It’s like “the too many cooks in the kitchen mentality.”
6. It’s the Best Movie of the Year, in Late March
It’s a clear sign that the movie has a good chance of flopping when advertised as the “Best Movie of the Year” or “The #1 Movie of the Year.” How can a studio declare something so daring at such an early stage in the year? It’s insane.
7. Someone Is Shrugging on the Ad Poster
Several people shared, “I like to imagine that when they take the photo shoot for the movie posters and promotional material, the lead actor/actress just shrugs like ‘I don’t know what I’m doing here or why I took this gig, but a paycheck’s a paycheck I guess.”
8. Production Took How Long?
Several filmaholics noted the film Chaos Walking. “It changed screenwriter, director, and production company so many times over ten years. It was sold on it being a Charlie Kauffman movie starring Daisy Ridley and Tom Holland. But, unfortunately, Kauffman left in 2013; Ridley and Holland filmed it over years due to so many reshoots and failed screenings.”
9. Snack Refill Without Pausing the Movie
For us, adamant movie viewers, a great perk to home movie viewing is the ability to pause, rewind, etc., as we please. When you have to get up within the first five to ten minutes of the movie and don’t feel the need to pause it, you know this movie isn’t going to be too good.
10. The Trailer Can’t Hide the Terrible Acting
When a well-edited trailer can’t hide how terrible the dialogue of a film is, there’s no hope for the movie at all. You have to remember that the trailer is what visually draws the moviegoer in. If the studio can’t manage to put their best foot forward at the most crucial time, you can’t expect much for the rest of the movie.
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Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
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These 7 Celebrities are Genuinely Good People
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
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Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
If you have ever applied for life insurance, then you know that there are several important criteria that you need to keep in mind.
One of these is the amount of insurance protection that you will need to have. This is because you will want to ensure that those whom you care about will have enough in benefits to pay certain debts or have enough funds in order to pay their ongoing living expenses to go on and not have to drastically alter their lifestyle.
But there is also another extremely important factor that you must also include in your purchase decision. This is the actual company in which you purchase the coverage through.
This is because you will want to make sure that the insurance carrier is strong and stable financially and that it is known for paying out its claims to its policyholders. One such insurer that has fit into this mold for many years is SBLI Life Insurance Company.
The History of SBLI Life Insurance Company
SBLI has been known for many years as being “The No Nonsense Life Insurance Company.” This insurer has been in the business of providing coverage to its customers for nearly 110 years. The company’s founder, Louis D. Brandeis, started the insurance carrier during one of the worst stock market crashes in United States history, as well as at a time when the insurance industry in the U.S. was thought to be corrupt and very expensive.
Because of this, Brandeis – who was an advocate for trustworthy and affordable life insurance for the American working family – decided to start the company. He did so by working to pass Chapter 561 of the Acts of 1907 – and act that essentially allowed savings banks that were incorporated under Massachusetts laws to establish departments to issue annuities and life insurance. Today, the company’s headquarters are still located in Woburn, Massachusetts.
Throughout the years, the company grew quite a bit – and by 1930, it already had $100 million of life insurance in force. By 1964, it had reached the mark of $1 billion of life insurance in force. Just 34 years later, in 1998, it was at $20 billion in force, and by 2003, the company had surpassed the $50 billion mark. As of 2012, SBLI had more than $125 billion of life insurance in force.
SBLI Life Insurance Company Review
SBLI is known for being a strong contender in the insurance industry. It is also extremely involved in the communities that it serves. It contributes and/or is a sponsor of numerous charitable organizations, including the:
American Heart Association (AHA)
Massachusetts General Hospital Home Base Program
Boston Marathon Jimmy Fund Walk
New England Center and Home for Veterans
The Massachusetts Affordable Housing Alliance (MAHA)
The Rodman Ride for Kids
Woburn Memorial High School
The New England Center for Children
The company has also earned endorsements from organizations such as the:
Massachusetts Bankers Association
AAA Southern New England
AAA Merrimack Valley
For those who are interested in a policy, or who are current policyholders and who need assistance, the company’s customer services representatives are easy to get in touch with. They can be reached via toll-free phone line during business hours. There is also an email form or a fax that can be sent into the company. Business hours are between the hours of 8:00 a.m. and 9:00 p.m. Eastern time Monday through Friday.
Financial Strength and BBB Grade of SBLI Life Insurance Company
Over the years, SBLI Life Insurance Company has consistently earned high ratings from the insurer ratings agencies. This shows the company’s ongoing financial strength and stability. These ratings include the following:
A+ (Superior) from A.M. Best
A- from Standard & Poor’s
Good from Weiss Ratings
Since 2007, SBLI Life Insurance Company (The Savings Bank Life Insurance Company of Massachusetts) has been an accredited member of the Better Business Bureau (BBB). It has received a grade of A+ from the BBB, on an overall grading scale of A+ to F.
Throughout the past three years, SBLI has closed two complaints through the Better Business Bureau, and no complaints over the past 12 months. Of these two complaints, one centered on issues with the company’s products/services, and one had to do with billing/collections.
Life Insurance Products Offered Through SBLI
SBLI offers many different types of life insurance products so that customers can essentially customize coverage to fit their specific needs, as well as to provide what is needed throughout every stage of a customer’s life. This also helps to provide coverage, no matter what a person’s budget.
Life insurance products that are offered through SBLI Life Insurance Company include the following:
Term Life Insurance Coverage
Term life insurance coverage, provides death benefit protection only, without any cash value or investment build up. Because of this “basic” approach, term life insurance can be quite affordable – primarily if the applicant is younger and in good health.
This type of coverage is oftentimes referred to as “temporary” life insurance. This is because it is purchased for specific amounts of time such as ten years, 20 years, or 30 years. With that in mind, it will be important to have a good idea of how long you will need coverage if this is the type of life insurance policy that you choose.
SBLI offers three different types of term life insurance protection. These are:
Guaranteed Level Premium Term Life Insurance
With the Guaranteed Level Premium Term Life Insurance coverage, premiums are guaranteed to remain the same throughout the entire period of the policy. This particular plan will cover the insured until he or she reaches age 85. Once the guaranteed level premium period has ended, the premium will go up each year until the insured reaches age 85.
The level premium periods that can be chosen include durations of 10 years, 15 years, 20 years, 25 years, and 30 years, and coverage amounts can range between $100,000 to $30 million for those who are under age 70. For those who are age 70 and over, coverage may go up to $10 million.
Yearly Renewable Term Life Insurance
With Yearly Renewable Term Life Insurance, the policy will renew each year. This means that the premium that is paid by the insured will be determined based upon his or her current age. This type of coverage can be extremely affordable in the beginning years, and then increase as the insured gets older. This particular policy will automatically renew every year until the insured turns age 90. There is no medical exam that is required each year to provide proof of insurability. Between the ages of 75 and 90, the amount of the insurance will decrease each year.
Up until the time that the insured reaches age 70, he or she will be allowed to convert the term insurance coverage over into a permanent life insurance policy. This can also be done without the need for a medical exam to prove insurability.
One Year Non-Renewable Term Insurance
An individual may also choose to purchase a one-year non-renewable term life insurance policy. This life insurance coverage will stay in force for only one year. Coverage amounts on this plan can range between $100,000 and $10 million, and applicants age ranges can be between 18 and 90.
Permanent Life Insurance Coverage
SBLI Life Insurance also offers permanent life insurance coverage. With this type of life insurance, there is death benefit protection, as well as a cash value component. The funds that are in the cash value portion of the policy are allowed to grow on a tax-deferred basis. This means that no tax is due on the growth unless or until the policyholder withdraws them.
Permanent policies that are offered via SBLI include:
Continuous Payment Whole Life
The Continuous Payment Whole Life insurance option covers an insured for his or her entire lifetime. This means that the death benefit is guaranteed, and the policy will remain in force – provided that the premium is paid. The cash value will also continue to build up. This particular policy has a maturity age of 121 years old.
Single Premium Payment Whole Life
The single premium payment whole life insurance policy will also remain in force for the entire lifetime of the insured. This policy, however, only required one lump sum premium in order for the policy to be considered paid up.
Because of this, the cash value will get a “jump start” and it will continue to grow at a guaranteed rate of interest over time. The cash can be borrowed or withdrawn for any reason that the policyholder wishes.
Limited Payment Whole Life Insurance
The limited payment whole life insurance policy will also cover the insured for their whole lifetime. With this policy, the premium payments are only for a limited period. In this case, the options are for ten years, 15 years, 20 years, or until the insured is age 65. This policy also has a maturity age of 65 years old.
Other Coverage Products That Are Offered
In addition to life insurance, there are other products that are offered through SBLI Life Insurance Company. These can help the company’s customers to build and / or to protect their wealth. Some of these products include the following:
Annuities
An annuity is essentially an insurance contract that is between an individual and an insurance company. These financial vehicles can offer a guaranteed income for the remainder of a person’s lifetime. This can help to alleviate the worry of outliving your retirement income – which is a major concern of many people today.
There are several different types of annuities. SBLI offers the:
Single Premium Immediate Annuity@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:250px!important;max-height:250px!important
Optimizer MVA Series Annuity
Both of them are great options for supplementing your retirement income. There are a few different advantages to these annuities that you should take note of if you’re looking for a way to invest your money.
With their SBLI Single Premium Immediate Annuity is the best option for anyone that is looking to get payouts immediately. As you can probably guess from the name, you’ll only make one single payment, and then you start getting checks from the annuity.
With the SBLI Optimizer MVA Series on the other hand, it’s not an immediate payout. You’ll make an investment, which will then start building tax-deferred interest with payouts that will start on a date that you’ll pick. With this annuity, you’ll be able to make some withdrawals without the penalties if you’re ever diagnosed with a terminal illness.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:250px!important;max-height:250px!important
Elder Care Insurance
Because so many people are living so much longer today, long-term care has become a big concern as well. Unfortunately, that care can be very expensive. Therefore, many people are concerned about depleting their savings – primarily because Medicare does not typically pay for most kinds of long-term care needs.
SBLI offers SBLI Legacy Protection to help manage all of the necessary aspects of long-term care and estate planning – including legal overview, financial guidance, and nursing care management expertise.
How to Get the Best Premium Quotes on Life Insurance Coverage
When you are seeking the best premium quotes on life insurance coverage – either through SBLI Life Insurance Company or any insurance carrier – it is typically best to work with an independent agency or brokerage that has access to numerous different life insurance companies. That is because you will be better able to compare and contrast many different policies, benefits, and premium quotes, and then to determine which will be the best for you and your needs. This is not only true for when seeking the best life insurance policy, but when seeking other forms of covers as well, such as the best auto insurance companies and policies.
If you are ready to move forward with the purchase of a life insurance policy, then we can help. We work with many of the top life insurers in the industry today, and we can assist you with obtaining all of the pertinent details that you will require. All you have to do is fill out the form on this page, or you can jump over here and let Policy Genius guide you.
We understand that when it comes to life insurance coverage, there are a lot of options to choose from – even if you have been turned down in the past. But it sometimes takes having an ally on your side to help you narrow down what will be the best choices for you and your specific requirements. We will help to get you where you want to go. So, contact us today – we’re here to help.
High above the Las Vegas Strip, solar panels blanketed the roof of Mandalay Bay Convention Center — 26,000 of them, rippling across an area larger than 20 football fields.
From this vantage point, the sun-dappled Mandalay Bay and Delano hotels dominated the horizon, emerging like comically large golden scepters from the glittering black panels.Snow-tipped mountains rose to the west.
It was a cold winter morning in the Mojave Desert. But there was plenty of sunlight to supply the solar array.
“This is really an ideal location,” said Michael Gulich, vice president of sustainability at MGM Resorts International.
The same goes for the rest of Las Vegas and its sprawling suburbs.
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Sin City already has more solar panels per person than any major U.S. metropolis outside Hawaii, according to one analysis. And the city is bursting with single-family homes, warehouses and parking lots untouched by solar.
L.A. Times energy reporter Sammy Roth heads to the Las Vegas Valley, where giant solar fields are beginning to carpet the desert. But what is the environmental cost? (Video by Jessica Q. Chen, Maggie Beidelman / Los Angeles Times)
There’s enormous opportunity to lower household utility bills and cut climate pollution — without damaging wildlife habitat or disrupting treasured landscapes.
But that hasn’t stopped corporations from making plans to carpet the desert surrounding Las Vegas with dozens of giant solar fields — some of them designed to supply power to California. The Biden administration has fueled that growth, taking steps to encourage solar and wind energy development across vast stretches of public lands in Nevada and other Western states.
Those energy generators could imperil rare plants and slow-footed tortoises already threatened by rising temperatures.
They could also lessen the death and suffering from the worsening heat waves, fires, droughts and storms of the climate crisis.
Researchers have found there’s not nearly enough space on rooftops to supply all U.S. electricity — especially as more people drive electric cars. Even an analysis funded by rooftop solar advocates and installers found that the most cost-effective route to phasing out fossil fuels involves six times more power from big solar and wind farms than from smaller local solar systems.
But the exact balance has yet to be determined. And Nevada is ground zero for figuring it out.
The outcome could be determined, in part, by billionaire investor Warren Buffett.
The so-called Oracle of Omaha owns NV Energy, the monopoly utility that supplies electricity to most Nevadans. NV Energy and its investor-owned utility brethren across the country can earn huge amounts of money paving over public lands with solar and wind farms and building long-distance transmission lines to cities.
But by regulatory design, those companies don’t profit off rooftop solar. And in many cases, they’ve fought to limit rooftop solar — which can reduce the need for large-scale infrastructure and result in lower returns for investors.
Mike Troncoso remembers the exact date of Nevada’s rooftop solar reckoning.
It was Dec. 23, 2015, and he was working for SolarCity. The rooftop installer abruptly ceased operations in the Silver State after NV Energy helped persuade officials to slash a program that pays solar customers for energy they send to the power grid.
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“I was out in the field working, and we got a call: ‘Stop everything you’re doing, don’t finish the project, come to the warehouse,’” Troncoso said. “It was right before Christmas, and they said, ‘Hey, guys, unfortunately we’re getting shut down.’”
After a public outcry, Nevada lawmakers partly reversed the reductions to rooftop solar incentives. Since then, NV Energy and the rooftop solar industry have maintained an uneasy political ceasefire. Installations now exceed pre-2015 levels.
Today, Troncoso is Nevada branch manager for Sunrun, the nation’s largest rooftop solar installer. The company has enough work in the state to support a dozen crews, each named for a different casino. On a chilly winter morning before sunrise, they prepared for the day ahead — laying out steel rails, hooking up microinverters and loading panels onto powder-blue trucks.
But even if Sunrun’s business continues to grow, it won’t eliminate the need for large solar farms in the desert.
Some habitat destruction is unavoidable — at least if we want to break our fossil fuel addiction. The key questions are: How many big solar farms are needed, and where should they be built? Can they be engineered to coexist with animals and plants?
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And if not, should Americans be willing to sacrifice a few endangered species in the name of tackling climate change?
To answer those questions, Los Angeles Times journalists spent a week in southern Nevada, touring solar construction sites, hiking up sand dunes and off-roading through the Mojave. We spoke with NV Energy executives, conservation activists battling Buffett’s company and desert rats who don’t want to see their favorite off-highway vehicle trails cut off by solar farms.
Odds are, no one will get everything they want.
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The tortoise in the coal mine
Biologist Bre Moyle easily spotted the small yellow flag affixed to a scraggly creosote bush — one of many hardy plants sprouting from the caliche soil, surrounded by rows of gleaming steel trusses that would soon hoist solar panels toward the sky.
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Moyle leaned down for a closer look, gently pulling aside branches to reveal a football-sized hole in the ground. It was the entrance to a desert tortoise burrow — one of thousands catalogued by her employer, Primergy Solar, during construction of one of the nation’s largest solar farms on public lands outside Las Vegas.
“I wouldn’t stand on this side of it,” Moyle advised us. “If you walk back there, you could collapse it, potentially.”
I’d seen plenty of solar construction sites in my decade reporting on energy. But none like this.
Instead of tearing out every cactus and other plant and leveling the land flat — the “blade and grade” method — Primergy had left much of the native vegetation in place and installed trusses of different heights to match the ground’s natural contours. The company had temporarily relocated more than 1,600 plants to an on-site nursery, with plans to put them back later.
The Oakland-based developer also went to great lengths to safeguard desert tortoises — an iconic reptile protected under the federal Endangered Species Act, and the biggest environmental roadblock to building solar in the Mojave.
Desert tortoises are sensitive to global warming, residential sprawl and other human encroachment on their habitat. The U.S. Fish and Wildlife Service has estimated tortoise populations fell by more than one-third between 2004 and 2014.
Scientists consider much of the Primergy site high-quality tortoise habitat. It also straddles a connectivity corridor that could help the reptiles seek safer haven as hotter weather and more extreme droughts make their current homes increasingly unlivable.
Before Primergy started building, the company scoured the site and removed 167 tortoises, with plans to let them return and live among the solar panels once the heavy lifting is over. Two-thirds of the project site will be repopulated with tortoises.
Workers removed more tortoises during construction. As of January, the company knew of just two tortoises killed — one that may have been hit by a car, and another that may have been entombed in its burrow by roadwork, then eaten by a kit fox.
Primergy Vice President Thomas Regenhard acknowledged the company can’t build solar here without doing any harm to the ecosystem — or spurring opposition from conservation activists. But as he watched union construction workers lift panels onto trusses, he said Primergy is “making the best of the worst-case situation” for solar opponents.
“What we’re trying to do is make it the least impactful on the environment and natural resources,” he said. “What we’re also doing is we’re sharing that knowledge, so that these projects can be built in a better way moving forward.”
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The company isn’t saving tortoises out of the goodness of its profit-seeking heart.
The U.S. Bureau of Land Management conditioned its approval of the solar farm, called Gemini, on a long list of environmental protection measures — and only after some bureau staffers seemingly contemplated rejecting the project entirely.
Documents obtained under the Freedom of Information Act by the conservation group Defenders of Wildlife show the bureau’s Las Vegas field office drafted several versions of a “record of decision” that would have denied the permit application for Gemini. The drafts listed several objections, including harm to desert tortoises, loss of space for off-road vehicle drivers and disturbance of the Old Spanish National Historic Trail, which runs through the project site.
Separately, Primergy reached a legal settlement with conservationists — who challenged the project’s federal approval in court — in which the company agreed to additional steps to protect tortoises and a plant known as the three-corner milkvetch.
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The company estimates just 2.5% of the project site will be permanently disturbed — far less than the 33% allowed by Primergy’s federal permit. Regenhard is hopeful the lessons learned here will inform future solar development on public lands.
“This is something new. So we’re refining a lot of the processes,” he said. “We’re not perfect. We’re still learning.”
By the time construction wraps this fall, 1.8 million panels will cover nearly 4,000 football fields’ worth of land, just off the 15 Freeway. They’ll be able to produce 690 megawatts of power — as much as 115,000 typical home solar systems. And they’ll be paired with batteries, to store energy and help NV Energy customers keep running their air conditioners after sundown.
Unlike many solar fields, Gemini is close to the population it will serve — just a few dozen miles from the Strip. And the affected landscape is far from visually stunning, with none of the red-rock majesty found at nearby Valley of Fire State Park.
But desert tortoises don’t care if a place looks cool to humans. They care if it’s good tortoise habitat.
Moyle, Primergy’s environmental services manager, pointed to a small black structure at the bottom of a fence along the site’s edge — a shade shelter for tortoises. Workers installed them every 800 feet, so that if any relocated reptiles try to return to the solar farm too early, they don’t die pacing along the fence in the heat.
“They have a really, really good sense of direction,” Moyle said. “They know where their homes are. They want to come back.”
Primergy will study what happens when tortoises do come back. Will they benefit from the shade of the solar panels? Or will they struggle to survive on the industrialized landscape?
And looming over those uncertainties, a more existential query: With global warming beginning to devastate human and animal life around the world, should we really be slowing or stopping solar development to save a single type of reptile?
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Moyle was ready with an answer: Tortoises are a keystone species. If they’re doing well, it’s a good sign of a healthy ecosystem in which other desert creatures — such as burrowing owls, kit foxes and American badgers — are positioned to thrive, too.
And as the COVID-19 pandemic has demonstrated, human survival is inextricably linked with a healthy natural world.
“We take one thing out, we don’t know what sort of disastrous effect it’s going to have on everything else,” Moyle said.
We do, however, know the consequences of relying on fossil fuels: entire towns burning to the ground, Lake Mead three-quarters empty, elderly Americans baking to death in their overheated homes. With worse to come.
The shifting sands of time
A few miles south, another solar project was rising in the desert. This one looked different.
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A fleet of bulldozers, scrapers, excavators and graders was nearly done flattening the land — a beige moonscape devoid of cacti and creosote. The solar panel support trusses were all the same height, forming an eerily rigid silver sea.
When I asked Carl Glass — construction manager for DEPCOM Power, the contractor building this project for Buffett’s NV Energy — why workers couldn’t leave vegetation in place like at Gemini, he offered a simple answer: drainage. Allowing the land to retain its natural contours, he said, would make it difficult to move stormwater off the site during summer monsoons.
Safety was another consideration, said Dani Strain, NV Energy’s senior manager for the project. Blading and grading the land meant workers wouldn’t have to carry solar panels and equipment across ground studded with tripping hazards.
“It’s nicer for the environment not to do it,” Strain said. “But it creates other problems. You can’t have everything.”
This kind of solar project has typified development in the Mojave Desert.
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And it helps explain why the Center for Biological Diversity’s Patrick Donnelly has fought so hard to limit that development.
The morning after touring the solar construction sites, we joined Donnelly for a hike up Big Dune, a giant pile of sand covering five square miles and towering 500 feet above the desert floor, 90 miles northwest of Las Vegas. The sun was just beginning its ascent over the Mojave, bathing the sand in a smooth umber glow beneath pockets of wispy cloud.
On weekends, Donnelly said, the dune can be overrun by thousands of off-road vehicles. But on this day, it was quiet.
Energy companies have proposed more than a dozen solar farms on public lands surrounding Big Dune — some with overlapping footprints. Donnelly doesn’t oppose all of them. But he thinks federal agencies should limit solar to the least ecologically sensitive parts of Nevada, instead of letting companies pitch projects almost anywhere they choose.
“Developers are looking at this as low-hanging fruit,” he said. “The idea is, this is where California can build all of its solar.”
We trekked slowly up the dune, our bodies casting long shadows in the early morning light. When we took a breather and looked back down, a trail of footprints marked our path. Donnelly assured us a windy day would wipe them away.
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“This is why I live here, man,” he said. “It’s the most beautiful place on Earth, in my mind.”
Donnelly broke his back in a rock-climbing accident, so he used a walking stick to scale the dune. He lives not far from here, at the edge of Death Valley National Park, and works as the nonprofit Center for Biological Diversity’s Great Basin director.
As we resumed our journey, the wind blowing hard, I asked Donnelly to rank the top human threats to the Mojave. He was quick to answer: The climate crisis was No. 1, followed by housing sprawl, solar development and off-road vehicles.
“There’s no good solar project in the desert. But there’s less bad,” he said. “And we’re at a point now where we have to settle for less bad, because the alternatives are more bad: more coal, more gas, climate apocalypse.”
That hasn’t stopped Donnelly and his colleagues from fighting renewable energy projects they fear would wipe out entire species — even little-known plants and animals with tiny ranges, such as Tiehm’s buckwheat and the Dixie Valley toad.
“I’m not a religious guy,” Donnelly said. “But all God’s creatures great and small.”
After a steep stretch of sand, we stopped along a ridge with sweeping views. To our west were the Funeral Mountains, across the California state line in Death Valley National Park — and far beyond them Mt. Whitney, its snow-covered facade just barely visible. To our east was Highway 95, cutting across the Amargosa Valley en route from Las Vegas to Reno.
It’s along this highway that so many developers want to build.
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“We would be in a sea of solar right now,” Donnelly said.
Having heard plenty of rural residents say they don’t want to look at such a sea, I asked Donnelly if this was a bad spot for solar because it would ruin the glorious views. He told me he never makes that argument, “because honestly, views aren’t really the primary concern at this moment. The primary concern is stopping the biodiversity crisis and the climate crisis.”
“There are certain places where we shouldn’t put solar because it’s a wild and undisturbed landscape,” he said.
As far as he’s concerned, though, the Amargosa Valley isn’t one of those landscapes, what with Highway 95 running through it. The same goes for Dry Lake Valley, where NV Energy’s solar construction site is already surrounded by energy infrastructure.
What Donnelly would like to see is better planning.
He pointed to California, where state and federal officials spent eight years crafting a desert conservation plan that allows solar and wind farms across a few hundred thousand acres while setting aside millions more for protection. He thinks a similar process is crucial in Nevada, where four-fifths of the land area is owned by the federal government — more than any other state.
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If Donnelly had his way, regulators would put the kibosh on solar farms immediately adjacent to Big Dune. He’s worried they could alter the movement of sand across the desert floor, affecting several rare beetles that call the dune home.
But if the feds want to allow solar projects along the highway to the south, near the Area 51 Alien Center?
“Might not be the end the world,” Donnelly said.
He shot me a grin.
“You know, one thing I like to do …”
Without warning, he took off racing down the dune, carried by momentum and love for the desert. He laughed as he reached a natural stopping point, calling for us to join him. His voice sounded free and full of possibility.
Some solar panels on the horizon wouldn’t have changed that.
Shout it from the rooftops
Laura Cunningham and Kevin Emmerich were a match made in Mojave Desert heaven.
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Cunningham was a wildlife biologist, Emmerich a park ranger when they met nearly 30 years ago at Death Valley. She studied tortoises for government agencies and later a private contractor. He worked with bighorn sheep and gave interpretive talks. They got married, bought property along the Amargosa River and started their own conservation group, Basin and Range Watch.
And they’ve been fighting solar development ever since.
That’s how we ended up in the back of their SUV, pulling open a rickety cattle gate off Highway 95 and driving past wild burros on a dirt road through Nevada’s Bullfrog Hills, 100 miles northwest of Las Vegas.
They had told us Sarcobatus Flat was stunning, but I was still surprised by how stunning. I got my first look as we crested a ridge. The gently sloping valley spilled down toward Death Valley National Park, whose snowy mountain peaks towered over a landscape dotted with thousands of Joshua trees.
“Everything we’re looking at is proposed for solar development,” Cunningham said.
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Most environmentalists agree we need at least some large solar farms. Cunningham and Emmerich are different. They’re at the vanguard of a harder-core desert protection movement that sees all large-scale solar farms on public lands as bad news.
Why had so many companies converged on Sarcobatus Flat?
The main answer is transmission. NV Energy is seeking federal approval to build the 358-mile Greenlink West electric line, which would carry thousands of megawatts of renewable power between Reno and Las Vegas along the Highway 95 corridor.
The dirt road curved around a small hill, and suddenly we found ourselves on the valley floor, surrounded by Joshua trees. Some looked healthy; others had bark that had been chewed by rodents seeking water, a sign of drought stress. Scientists estimate the Joshua tree’s western subspecies could lose 90% of its range as the world gets hotter and droughts get more intense.
But asked whether climate change or solar posed a bigger threat to Sarcobatus Flat, Cunningham didn’t hesitate.
“Oh, solar development hands down,” she said.
Nearly 20 years ago, she said, she helped relocate desert tortoises to make way for a test track in California. One of them tried to return home, walking 20 miles before hitting a fence. It paced back and forth and eventually died of heat exhaustion.
Solar farms, she said, pose a similar threat to tortoises. And at Sarcobatus Flat, they would cover a high-elevation area that could otherwise serve as a climate refuge for Joshua trees, giving them a relatively cool place to reproduce as the planet heats up.
“It makes no sense to me that we’re going to bulldoze them down and throw them into trash piles. It’s just crazy,” she said.
In Cunningham and Emmerich’s view, every sun-baked parking lot in L.A. and Vegas and Phoenix should have a solar canopy, every warehouse and single-family home a solar roof. It’s a common argument among desert defenders: Why sacrifice sensitive ecosystems when there’s an easy alternative for fighting climate change? Especially when rooftop solar can reduce strain on an overtaxed electric grid and — when paired with batteries — help people keep their lights on during blackouts?
The answer isn’t especially satisfying to conservationists.
For all the virtues of rooftop solar, it’s an expensive way to generate clean power — and keeping energy costs low is crucial to ensure that lower-income families can afford electric cars, another key climate solution. A recent report from investment bank Lazard pegged the cost of rooftop solar at 11.7 cents per kilowatt-hour on the low end, compared with 2.4 cents for utility solar.
Even when factoring in pricey long-distance electric lines, utility-scale solar is typically cheaper, several experts told me.
“It’s three to six times more expensive to put solar on your roof than to put it in a large-scale project,” said Jesse Jenkins, an energy systems researcher at Princeton University. “There may be some added value to having solar in the Los Angeles Basin instead of the middle of the Mojave Desert. But is it 300% to 600% more value? Probably not. It’s probably not even close.”
There’s a practical challenge, too.
The National Renewable Energy Laboratory has estimated U.S. rooftops could generate 1,432 terawatt-hours of electricity per year — just 13% of the power America will need to replace most of its coal, oil and gas, according to research led by Jenkins.
Add in parking lots and other areas within cities, and urban solar systems might conceivably supply one-quarter or even one-third of U.S. power, several experts told The Times — in an unlikely scenario where they’re installed in every suitable spot.
Energy researcher Chris Clack’s consulting firm has found that dramatic growth in rooftop and other small-scale solar installations could reduce the costs of slashing climate pollution by half a trillion dollars. But even Clack said rooftops alone won’t cut it.
“Realistically, 80% is going to end up being utility grid no matter what,” he said.
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All those industrial renewable energy projects will have to go somewhere.
Sarcobatus Flat may not be the answer. Federal officials classified all three solar proposals there as “low priority,” citing their proximity to Death Valley and potential harm to tortoise habitat. One developer withdrew its application last year.
Before leaving the area, Cunningham pointed to a wooden marker, one of at least half a dozen stretching out in a line. I walked over to take a closer look and discovered it was a mining claim for lithium — a main ingredient in electric-car batteries.
If solar development didn’t upend this valley, lithium extraction might.
On the beaten track
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The four-wheeler jerked violently as Erica Muxlow pressed her foot to the gas, sending us flying down a rough dirt road with no end in sight but the distant mountains. Five-point safety straps were the only things stopping us from flying out of our seats, the vehicle leaping through the air as we reached speeds of 40 mph, then 50 mph, the wind whipping our faces.
It was like riding Disneyland’s Matterhorn Bobsleds — just without the Yeti.
Ahead of us, Muxlow’s neighbor Jimmy Lewis led the way on an electric blue motorcycle, kicking up a stream of sand. He wanted us to see thousands of acres of public lands outside his adopted hometown of Pahrump, in Nevada’s Nye County, that could soon be blocked by solar projects — cutting off access to off-highway vehicle enthusiasts such as himself.
“You could build an apartment complex or a shopping mall here, and it would be the same thing to me,” he said.
To progressive-minded Angelenos or San Franciscans, preserving large chunks of public land for gas-guzzling, environmentally destructive dirt bikes might sound like a terrible reason not to build solar farms that would lessen the climate crisis.
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But here’s the reality: Rural Westerners such as Lewis will play a key role in determining how much clean energy gets built.
Not long before our Nevada trip, Nye County placed a six-month pause on new renewable energy projects, citing local concerns about loss of off-road vehicle trails. Similar fears have stymied development across the U.S., with rural residents attacking solar and wind farms as industrial intrusions on their way of life — and local governments throwing up roadblocks.
For Lewis, the conflict is deeply personal.
He moved here from Southern California more than a decade ago, trading life by the beach for a five-acre plot where he runs an off-roading school and test-drives motorcycles for manufacturers. His warehouse was packed with dozens of dirt bikes.
“This is my life. Motorcycles, motorcycles, motorcycles,” he said, laughing.
Lewis has worked to stir up opposition to three local solar farm proposals. So far, his efforts have been in vain.
One project is already under construction. Peering through a fence, we saw row after row of trusses, waiting for their photovoltaic panels. It’s called Yellow Pine, and it’s being built by Florida-based NextEra Energy to supply power to California.
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Lewis learned about Yellow Pine when he was riding one of his favorite trails and was surprised to find it cut off. He compared the experience to riding the best roller-coaster at a theme park, only to have it grind to a halt three-quarters of the way through.
“I don’t want my playground taken away from me,” he said.
“Me neither!” a voice called out from behind us.
We turned and were greeted by Shannon Salter, an activist who had previously spent nine months camping near the Yellow Pine site to protest the habitat destruction. She and Lewis had never met, but they quickly realized they had common cause.
“It’s the opposite of green!” Salter said.
“On my roof, not my backyard,” Lewis agreed.
Never mind that conservationists have long decried the ecological damage from desert off-roading. Salter and Lewis both cared about these lands. Neither wanted to see the solar industry lay claim to them. They talked about staying in touch.
It’s easy to imagine similar alliances forming across the West, the clean energy transition bringing together environmentalists and rural residents in a battle to defend their lifestyles, their landscapes and animals that can’t fight for themselves.
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It’s also easy to imagine major cities that badly need lots of solar and wind power — Los Angeles, Las Vegas, Phoenix — brushing off those complaints as insignificant compared with the climate emergency, or as fueled by right-wing misinformation.
But many of concerns raised by critics are legitimate. And their voices are only getting louder.
As night fell over the Mojave, Lewis shared his idea that any city buying electricity from a desert solar farm should be required to install a certain amount of rooftop solar back home first — on government buildings, at least. It only seemed fair.
“Some people see the desert as just a wasteland,” Lewis said. “I think it’s beautiful.”
The view from Black Mountain
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So how do we build enough renewable energy to replace fossil fuels without destroying too many ecosystems, or stoking too much political opposition from rural towns, or moving too slowly to save the planet?
Few people could do more to ease those tensions than Buffett.
Our conversation kept returning to the legendary investor as we hiked Black Mountain, just outside Vegas, on our last morning in the Silver State. We were joined by Jaina Moan, director of external affairs for the Nature Conservancy’s Nevada chapter. She had promised a view of massive solar fields from the peak — but only after a 3.5-mile trek with 2,000 feet of elevation gain.
“It’ll be a little StairMaster at the end,” she warned us.
The homes and hotels and casinos of the Las Vegas Valley retreated behind us as we climbed, looking ever smaller and more insignificant against the vast open desert. It was an illusion that will prove increasingly difficult to maintain as Sin City and its suburbs continue their march into the Mojave. Nevada politicians from both parties are pushing for legislation that would let federal officials auction off additional public lands for residential and commercial development.
Vegas and other Western cities could limit the need for more suburbs — and sprawling solar farms — by growing smarter, Moan said. Urban areas could embrace density, to help people drive fewer miles and reduce the demand for new power supplies to fuel electric vehicles. They could invest in electric buses and trains — and use less water, which would save a lot of energy.
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“As our spaces become more crowded, we’re going to have to come up with more creative ideas,” Moan said.
That’s where Buffett could make things easier.
The billionaire’s Berkshire Hathaway company owns electric utilities that serve millions of people, from California to Nevada to Illinois. Those utilities, Moan said, could buck the industry trend of urging policymakers to reduce financial incentives for rooftop solar and instead encourage the technology — along with other small-scale clean energy solutions, such as local microgrids.
That would limit the need for big solar farms — at least somewhat.
Berkshire and other energy giants could also build solar on lands already altered by humans, such as abandoned mines, toxic Superfund sites, reservoirs, landfills, agricultural areas, highway corridors and canals that carry water to farms and cities.
The costs are typically higher than building on undisturbed public lands. And in many cases there are technical challenges yet to be resolved. But those kinds of “creative solutions” could at least lessen the loss of biodiversity, Moan said.
“There’s money to be made there, and there’s good to be done,” she said.
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It’s hard to know what Buffett thinks. A Berkshire spokesperson declined my request to interview him.
Tony Sanchez, NV Energy’s executive vice president for business development and external relations, was more forthcoming.
“The problem for us with rooftop solar,” he said, is that it’s “not controlled at all by us.” As a result, NV Energy can’t decide when and how rooftop solar power is used — and can’t rely on that power to help balance supply and demand on the grid.
Over time, Sanchez predicted, a lot more rooftop solar will get built. But he couldn’t say how much.
Rooftop solar faces a similarly uncertain future in California, where state officials voted last year to slash incentive payments, calling them an unfair subsidy. Industry leaders have warned of a dramatic decline in installations.
As we neared the top of Black Mountain, the solar farms on the other side came into view. They stretched across the Eldorado Valley far below — black rectangles that could help save life on Earth while also destroying bits and pieces of it.
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Moan believes the key to balancing clean energy and conservation is “go slow to go fast.” Government agencies, she said, should work with conservation activists, small-town residents and Native American tribes to study and map out the best places for clean energy, then reward companies that agree to build in those areas with faster approvals. Solar and wind development would slow down in the short term but speed up in the long run, with quicker environmental reviews and less risk of lawsuits.
It’s a tantalizing concept — but I confessed to Moan that I worried it would backfire.
What if the sparring factions couldn’t agree on the best spots to build solar and wind farms, and instead wasted years arguing? Or what if they did manage to hammer out some compromises, only for a handful of unhappy people or groups to take them to court, gumming up the works? Couldn’t “go slow to go fast” end up becoming “go slow to go slow”?
In other words, should we really bet our collective future on human beings working together, rather than fighting?
Moan was sympathetic to my fears. She also didn’t see another way forward.
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“We really need to think holistically about saving everything,” she said.
The sad truth is, not everything can be saved. Not if we want to keep the world livable for people and animals alike.
Some beloved landscapes will be left unrecognizable. Some families will be stuck paying high energy bills to monopoly utilities, even as some utility investors make less money. Some tortoises will probably die, pacing along fences in the heat.
The alternative is worse.
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Life insurance provides financial protection to individuals and their loved ones in the event of unexpected circumstances. One key aspect to consider when choosing a life insurance policy is whether it generates immediate cash value. In this article, we will explore different types of life insurance policies and discuss which ones offer the benefit of immediate cash value.
Life insurance policies are critical financial planning tools designed to provide financial security for policyholders’ beneficiaries upon their demise. They work by offering a lump-sum payment, known as a death benefit, to beneficiaries after the insured person’s death.
But some life insurance policies offer an additional feature – the accumulation of cash value over time.
This is a unique feature that allows the policyholder to access a portion of the insurance money during their lifetime. This article will delve further into the types of life insurance policies that generate immediate cash value.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-medrectangle-3-0-asloadedmax-width:300px!important;max-height:250px!important
Table of Contents
Decoding Cash Value in Life Insurance
The cash value in a life insurance policy is a savings component that grows over time. This feature is inherent in permanent life insurance policies, unlike term life insurance policies that only provide coverage for a predetermined period.
When a policyholder pays premiums towards a permanent life insurance policy, a portion of these payments contributes towards building the cash value.
This cash value grows over time and can be accessed by the policyholder during their lifetime, offering an extra layer of financial security.
Understanding Different Life Insurance Policies
The life insurance market is diverse, offering several types of policies. Some of the main types include term life insurance, whole life insurance, and universal life insurance. Each of these has its unique features, advantages, and suitability for different individuals.
Term Life Insurance
As highlighted by CNBC, term life insurance is designed to offer coverage for a specific period, typically 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a death benefit to the beneficiaries.
But according to financial experts like Dave Ramsey, it could be the best option for most people because it’s simple and affordable. It’s like an umbrella for a rainy day, shielding your loved ones financially if you pass away during the policy term.
However, term life insurance does not provide any cash value component. It’s often chosen for its affordability and simplicity, focusing solely on providing financial protection in the event of the policyholder’s death during the policy term.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Whole Life Insurance
Whole life insurance, as the name suggests, offers coverage for the insured person’s entire lifetime, as long as the premiums are paid. Unlike term life insurance, it combines a death benefit with a cash value component.
A portion of the premiums paid contributes to this cash value, which grows over time. Importantly, this growth is at a guaranteed rate, offering predictability and security for the policyholder. According to The Motley Fool, this type of insurance is often more expensive than term life insurance due to this cash value component and the lifetime coverage it provides.
Universal Life Insurance
Universal life insurance is another type of permanent life insurance policy that combines a death benefit with a cash value component. However, it differentiates itself with its flexibility in premium payments and death benefits. The cash value component in universal life insurance grows based on prevailing market interest rates. @media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
Policyholders can adjust the premium amount and death benefit within certain limits, providing them with a degree of control over the policy’s costs and benefits.
Among the various life insurance policy options, it’s the whole life insurance and universal life insurance policies that generate immediate cash value. From the moment these policies are enforced, the cash value starts growing, offering policyholders access to a part of their insurance payout during their lifetime.
Whole Life Insurance and Cash Value
With whole life insurance policies, the cash value grows at a guaranteed rate, offering a predictable savings growth mechanism. The cash value in whole life insurance is built from the premiums paid by the policyholder. This cash value can be borrowed against, offering a valuable source of funds when needed. Alternatively, the policyholder can choose to surrender the policy and receive the accumulated cash value.
Universal Life Insurance and Cash Value
Universal life insurance is a form of permanent life insurance policy that combines the death benefit of term insurance with a cash value component. This type of policy is known for its flexibility, as it allows policyholders to adjust the premium payments and death benefit within certain limits. This flexibility can be instrumental in managing life’s financial uncertainties.
The cash value in universal life insurance grows based on prevailing market interest rates, offering the potential for significant growth during periods of high interest rates. It’s important to note that while this offers an opportunity for financial gain, it can also present challenges. In periods of low-interest rates, the cash value growth can slow down, potentially affecting the policy’s overall value.
Policyholders can access the cash value in a universal life insurance policy through withdrawals or policy loans. This can offer valuable financial flexibility in times of need.
A Word of Caution on Universal Life Insurance
While universal life insurance offers flexibility and potential cash value growth, it’s not without risks. According to the New York Department of Financial Services, policyholders must be cautious about the fluctuating costs and benefits of these policies.
Interest rates can fluctuate, and when they’re low, the cash value of a universal life insurance policy may not grow as expected. This could mean that the policyholder has to pay higher premiums to keep the policy active, especially if the policy costs are being paid from accumulated cash value.
Policyholders should regularly review their universal life insurance policies. If the policy’s cash value is depleting faster than expected, or if the policy costs are increasing, it might be necessary to adjust the premiums or the death benefit to keep the policy in force.
Beware of UL Insurance
Universal life insurance policies also often have complex cost structures, with various fees and charges that can affect the cash value and the death benefit. It’s important to understand these costs and to consider them when deciding on a universal life insurance policy.
Factors Influencing Cash Value Growth
@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-leader-1-0-asloadedmax-width:336px!important;max-height:280px!importantThe growth of cash value in a life insurance policy is subject to several factors. These can vary greatly from policy to policy, and understanding them can help policyholders make an informed decision. The following are some critical factors:
Premium Payments
The amount of premium paid and the frequency of the payments directly impact the growth of the cash value. Regular and timely premium payments can accelerate the accumulation of cash value over time.
Policy Expenses
Insurance policies come with various expenses, such as administrative fees, mortality charges, etc. These charges are typically deducted from the premium payments before the remaining amount is allocated to the cash value component, thus potentially affecting its growth rate.
Interest Rates
The interest rate at which the cash value grows plays a significant role in its accumulation. A higher interest rate leads to a quicker accumulation of cash value, while a lower rate may slow it down. This is particularly relevant for universal life insurance policies where the interest rate is tied to the prevailing market rates.
Opting for a life insurance policy with immediate cash value can offer several benefits:
Financial Flexibility: The cash value in these policies can be accessed during the policyholder’s lifetime, providing financial flexibility for various needs such as emergencies, education expenses, or retirement planning.
Asset Accumulation: The cash value component of the policy acts as an asset that can grow over time. It can serve as a source of additional funds or supplement retirement income.
Borrowing Options: Policyholders can borrow against the cash value of their life insurance policy. This can be a convenient source of funds without the need for a separate loan application or credit check.
Tax Advantages: The growth of cash value in a life insurance policy is typically tax-deferred. This means that policyholders can enjoy the growth without immediate tax obligations until they withdraw or surrender the policy.
Considerations When Choosing a Policy
When selecting a life insurance policy with immediate cash value, it’s important to consider the following factors:
Financial Goals: Determine your financial goals and how the policy aligns with them. Consider whether you prioritize cash value growth, death benefit coverage, or a combination of both.
Premium Affordability: Evaluate your budget and ensure that the premium payments are affordable in the long run. Remember that missing premium payments can impact the cash value growth and policy coverage.
Long-Term Planning: Assess your long-term financial plans and how the policy fits into them. Consider factors such as retirement, education expenses, and other financial milestones.
As Life Happens points out, life insurance is valuable at any age. It’s not just for when you’re in your golden years and start worrying about leaving a financial safety net for your loved ones. With policies that offer immediate cash value, you’re getting both protection and a financial resource you can access during your lifetime.
Remember that gem of a piece of advice from Dave Ramsey? He says, “Term life insurance is bought, while whole life insurance is sold.”
This simply means that term life insurance, with its lower cost and straightforward benefits, is generally the go-to choice for most people. But the whole life insurance policies, with their additional features, are actively promoted by insurance companies.
Keep in mind that in the wild world of insurance, there’s no right or wrong choice, only what works best for you. It’s like trying to choose between a coffee and a milkshake – they both have their perks, but it ultimately depends on your taste (or in this case, your financial goals).
Are you someone who wants protection with the added benefit of cash value growth, or do you prefer a no-frills approach with just coverage? Can you consistently afford the premium payments to reap the full benefits? How does a policy fit into your long-term plan, considering things like retirement, education expenses, or other financial milestones?
Term Life Insurance
Cash Value Policy (Whole/Universal Life)
PROS
Cost
Generally cheaper
More expensive, but part of premium builds cash value
Simplicity
More straightforward as it provides only a death benefit
More complex due to the cash value component
Duration
Fixed term (usually 10, 20, or 30 years)
Provides coverage for the entire lifetime of the policyholder
Financial Flexibility
No cash value or loan option
Offers a cash value component that can be borrowed against
Investment
No investment component
Can be viewed as an investment due to cash value growth
CONS
Cost
No cash value or return of premium if the term expires before death
Higher premiums due to the cash value feature
Duration
Coverage ends if the term expires before death
Might be unnecessary if coverage is not needed for entire life
Complexity
Doesn’t require much management
Requires active management due to the cash value component
Risk
No risk as it only provides death benefit
The cash value growth might be slower than other investments
Flexibility
No option to borrow against the policy
Policyholders can borrow against the cash value, but this can reduce the death benefit
Choosing a life insurance policy with immediate cash value can provide both protection and financial flexibility. Whole life insurance and universal life insurance policies are two types that offer this benefit. Understanding the factors that influence cash value growth and considering personal financial goals are crucial when making a decision. By selecting the right policy, individuals can secure their loved ones’ future while also building a valuable asset.
No one said life was fair—which becomes even more poignant when it comes to losing a beloved celebrity. Many of our favorites are remembered not only for their entertainment abilities, but for their big personalities and their heart. From the controversial rapper who changed an entire genre to the movie star with millions of adoring fans, these 15 celebrity deaths shook the world and caused us all to collectively weep in grief. Here is a look back at some of the most impactful recent losses in entertainment that still linger today.
1. Robin Williams
One user posted, “Robin Williams. I loved that man.”
A second user replied, “I’m still pretty torn up about him and Steve Irwin.”
Another commenter added, “Happy to find both of these at the top. Certainly, my choices RIP.”
One Redditor also commented, “I think they were gonna do a movie together, and all the gods were like, nope, the mortals can’t have such entertainment. Seriously, though, a movie with Mr. Williams, Mr. Irwin, and Mr. Farley. Beautiful people, those guys.”
2. Alan Rickman
One Redditor also posted, “Alan Rickman.”
Another commenter replied, “My first movie introduction to him was the Sheriff of Nottingham in Robin Hood, Prince of Thieves, and I still threaten to take someone’s heart out with a spoon. [God] rest his soul…”
One commenter quoted, “’But why a spoon, cousin?’”
Another Redditor replied, “’Because it’s dull. It’ll hurt more, you TW*T.’”
3. Grant Imahara
“Grant Imahara,” one user commented.
Another user responded, “His death was so random and unexpected that I genuinely didn’t believe he died. For a couple days after it happened, I was silently convinced it was an internet prank. Watching the videos of Adam Savage touring his workshop was really hard too.”
One Redditor replied, “Aneurysm is a silent killer, even perfectly healthy people can get it suddenly, sometimes during the night. It’s terrifying. You just go to sleep and never wake up again, because of the faulty vein in your brain.”
4. Steve Irwin
One user commented, “I’m Australian and was in class when I found out that Steve Irwin passed over. It was physically upsetting. I was really distressed all day. I don’t remember feeling that shock since Princess Diana.”
A second user replied, “Steve Irwin is the first celebrity death that I remember happening. Sometimes I wonder what he’d be up to if he was still alive today.”
Another added, “I imagine that, if he had survived the stingray attack, he’d be back swimming with a school of stingrays in the next show. To show that there is nothing to fear and that the stingray that hit him didn’t really mean to do it. Then he would explain how they defend themselves, and he’d also kiss a ray at the very end of the show and call it his ‘little mate’ before releasing it.”
A user also shared, “I remember that Animal Planet had his family and friends over to announce it. It completely destroyed me, it was like my favorite uncle had died. I was so upset that my parents couldn’t get me to school for days. The saddest, most frustrating part of it all is that you know, we all know, anyone that had 15 minutes to hear him talk knows… If he had had a chance to say some last words, they would’ve most likely been, ‘It was my fault, please don’t blame, hate, or hurt the animal.’ He taught me to see beauty in all living things, even creatures our primal instinct rejects. My tribute to him is trying to spread his message that all life is precious and should be respected, admired, and protected, not feared or destroyed.”
5. Anthony Bourdain
One user posted, “Anthony Bourdain. I miss his snarky attitude.”
Another commenter replied, “I think it hit me because, as a pessimistic and generally melancholy sorta person.. I saw within him a kindred spirit with similar tastes and hobbies, etc… Seeing someone who kind of has an idealized version of a life I’d want and that they couldn’t handle and make it out of here so to speak… it kind of dampens the morale a bit when it comes to your own chances of finding peace and happiness.”
“This is a perfect summary if you ask me. His snarky attitude, his love for food and other cultures, and meeting people. And indeed his somewhat melancholic personality… That’s me. That’s about as perfect as a match can be on paper. And I get it. That’s what hit me even harder. Sometimes, I really do get it. And I agree,” added one user.
Another user replied, “It’s hard rewatching all his stuff now. Some of the things that he said really made me sit up and think to myself that we all missed the signs and taught me to listen to people more carefully.”
6. Chester Bennington
One user shared, “Chester Bennington.”
Another user replied, “’When my time comes, forget the wrong that I’ve done, help me leave behind some reasons to be missed.’”
One user commented, “I bawled my eyes out and had to pull over and park my car when “Leave Out All The Rest ” played off my Spotify playlist in 2019. It took on a whole new meaning for 2 reasons:
“I had recently moved to Florida after a really bad divorce, so I lost my entire support base of family and friends from my home state with that move. I’m South Asian, and the stigma of divorce and all of that stupid stuff that our community has, weighed heavily on me because of what my parents were experiencing from people in their lives. The shame was getting to me, I was just driving around waiting for my flight back to my home state. I booked my flight the night before Christmas, because I felt too ashamed to show my face to my family. Somehow I gathered the strength to purchase those tickets and come back to Michigan for a while. This song reminded me of how small this feeling was, that I had nothing to be ashamed of anymore, and that I also needed to leave those parts alone, so to speak.
“It was like a friend of mine gave me a ton of wisdom, love, and support. Then reality sank in, he was gone for good. I took out what I thought were all of the Linkin Park songs from my playlists a few days after he passed because I couldn’t help but feel extremely sad when I would hear them (all the songs are back on my playlists now). But back in 2019, his death was still relatively fresh in my mind, and I thought I took out all of the band’s songs. I missed this one, and I swear, it helped me so much.
“Wherever you are, Chester, I hope you have peace and tranquility. My only regret is not being able to help you, but I will continue to be compassionate and helpful towards others in life the way I have been. Thank you for helping me along with so many others, whether you know it or not man.”
One user also added, “That moment in the memorial concert when they play Numb without the vocals, but have a spotlight on an empty microphone wreathed in flowers kills me every time. That the crowd picked up on it right away and sang the whole song too…”
7. Mr. Rogers
One user posted, “It was pouring rain that morning and I’d stopped to grab breakfast before a looming nightmare commute to work. Right as I was about to pull the key out of the ignition, I heard them say on the radio that he’d passed and just sat there in my car, sobbing.
“I met him in 1983 when he came to my elementary school with the Purple Panda and for a 4 year-old, it was like meeting Jesus. I was so overcome I just blurted out, ‘You’re my best friend!’ and he smiled and said, ‘I’m so glad that we’re friends.’ We didn’t deserve Fred Rogers.”
A second user commented, “My parents were mildly abusive. It was only because of Mr Rogers that I knew something was wrong in my household. The amount of love he shared with people on the other side of the TV was awe inspiring. I think if someone tried to do that today they’d come off as insincere or [trying too] hard.”
Another user shared, “I think he’s the celebrity the world needs most right now. Though I think he’d be so disappointed in all of us to see how we treat each other. I still remember where I was when I heard he’d passed away. My high school band was at Disney World. I can’t remember what park we were at that day but there was a bust there of Mr. Rogers that was already covered in flowers when we got there that morning and people of all ages were stopping there to pay their respects even though it was raining. It just showed how truly beloved he was that so many generations felt like they’d lost a friend when he passed.”
8. Heath Ledger
One Redditor posted, “In 8th grade English class we read Taming of the Shrew and then the teacher let us watch 10 Things I Hate About You to show us how his works still impact writing today. So I had JUST discovered Heath and had a massive crush on him when he passed away less than a year later. It was the first celebrity death that really impacted me.”
Another user also shared, “Still makes me so sad. I thought he was an amazing actor. He just seemed to exude joy.”
“More than exuding joy, he was a remarkable actor. There is a scene in A Knight’s Tale in which he and his cohorts are looking towards the camera as someone is telling them some news. Heath Ledger’s face passes from subtle emotion to emotion. You could read his entire thought process as he absorbed the news. The other actors’ faces were just one look of surprise at the news. I so regret we didn’t get to see Heath Ledger continue to develop because he had a rare gift.” one user replied.
9. Chris Cornell
One Redditor also shared, “Chris Cornell. So talented; gone too soon and died so tragically.”
Another user replied, “I saw him and Chester Bennington in 2007 together. Hell of a show. They’re the reason I never hesitate to say yes to a concert now.”
One commenter added, “Yeah, I’ll forever regret never seeing Linkin park in concert. They were my favorite band as a teenager, and I had one opportunity to see them live when I was in high school and skipped it because I was sure I’d have another chance. Nope. Damn.”
10. Chadwick Boseman
One Redditor shared, “Chadwick Boseman R.I.P. Black Panther.”
Another user commented, “He was such a humble, thoughtful, and selfless dude. I remember watching 21 Bridges and Black Panther and wishing I was as bad-ass and self-less as his characters were. Knowing he was battling cancer while working on several of his movies blew me away, he knew how important Black Panther was to people and continued to train and study every day while battling cancer. Not to mention visiting children battling cancer and hoping to make their day a little happier and a little easier. He continues to motivate me every day to be a more selfless and stronger person and remind me not to waste my life worrying about what others think of us and just doing what you know is right. He’s one of the few people I look up to and strive to be [like. Rest] in peace Chadwick.”
One Redditor added, “A friend of mine went to middle school with him. She had just moved to a new town, after her parents split up, and was having a really rough time; she says that he was one of the only people at that time who was genuinely nice to her. Chadwick Boseman was organically, truly good and that’s a rarity, these days.”
11. Sir Terry Pratchett
One user commented, “Sir Terry Pratchett. He and his works both made the world a better, more interesting place.”
A second user replied, “Terry Pratchett is the reason I evolved from a scared and nerdy introvert kid to the sociable ‘nerd whisperer’. He instilled in me the idea that the filters you use shape your reality, because the actual one is absurd, bizzare, weird, sad and funny, on every scale and step. It is up to us, how we perceive and handle it. Thanks and GNU, Sir Terry Pratchett.”
Another commenter added, “Terry Pratchett is and always will be my favourite author. He could make me laugh and cry in the same sentence. Even now years later when I reread his books I find references or subtleties I missed the last time. He died towards the end of my pregnancy with my youngest. It was a horrible, very traumatic pregnancy and very dark time for me. His death made it worse, especially as his books always brought comfort. It has been several years since then and I still cannot bring myself to read the last book as I am still not ready for it to be over.”
12. Anton Yelchin
“Anton Yelchin,” one user shared.
A second Redditor replied, “Dude had cystic fibrosis. And that isn’t even what killed him.”
Another user added, “He was in my extended friends group…grew up as besties with my buddy’s kid. I used to see him at pool parties and stuff, and he had seen one of my bands, so we would chat about that. Super nice guy with a ton of amazing stories…and then one day, it was just like: ‘Oh my god. Did you hear about Anton???’ Totally f*cked.”
Another user added, “I hope y’all check in on his mom. Last time I was regularly in Hollywood she was still going to his grave for hours every day. Very sad.” Another user added, “He’s my go to for this question. Poor guy had the whole world in front of him. He was in great movies (hell even his voice work in Trollhunters was great) , and the way he went is just so random and awful. Not to say other deaths aren’t tragic, but I think his was more so when compared to the natural death of someone 99 years old, or a drug-related death of someone or someone taking their own life.”
13. Carrie Fisher
One user ended, “We never deserved Carrie Fisher.”
Another Redditor commented, “Followed immediately by Debbie Reynolds 🙁 I felt so bad for Billie Lourd.”
One user replied, “I met her at a Comic-Con right before she died. She was still so beautiful, funny and classy. I was heartbroken when I heard she died.”
14. David Bowie
One user posted, “David Bowie.”
Another replied, “That would be my pick. Knowing he made his last album, released it, and then died 3 days later. It was beyond spooky, but also really cool and creative.”
One Redditor added, “The music videos he created for that album were eerily beautiful.”
Another commented, “My nan bought on the day he died she was on the way back home to listen to it turned on the radio and it announced he had died. She still has the album unopened; she just couldn’t bring herself to do it.”
15. Jim Henson
A user shared, “Jim Henson, too early and such a source of joy to so many.” Another user commented, “Yes. Every time I go to Hollywood Studios at Walt Disney World I have to go to the Muppets 3D movie, it was the last thing he did as Kermit. It makes me sad that he died before the paperwork with Disney was complete and because of that a lot of the plans for the muppets at that park never happened. Watch his funeral on PBS, it’s one of the best celebrations of a human’s life you can see.”
Do you agree with the list above? Share your comments below!
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While Minnesota life did not make the Good Financial Cents® top 10 life insurance companies it did get an honorable mention and we have had great success working with this company.
Table of Contents
The History of Minnesota Life Insurance Company
Since 1880, Securian Financial Group has been the holding company and parent of Minnesota Life Insurance Company and Securian Life – as well as their affiliates. This financial powerhouse specializes in working with employers to offer financial, retirement, and insurance plans to their employees.
And, for more than 80 years, Minnesota Life Insurance Company has provided businesses with customized solutions to their employee benefit needs, as well as with expertise in administering large public and private employer plans to small and medium sized municipal employers. This insurer also offers individual insurance options.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-medrectangle-3-0-asloadedmax-width:300px!important;max-height:250px!important
This insurance company insures more state plans than any other group insurer. It also counts 20 percent of the Fortune 100 companies as its clients. Also, it is proud to offer industry leading technology, such as the first mobile optimized website for group insurance transactions.
Minnesota Life Insurance Company Review
The unique brand of service that is provided by Minnesota Life Insurance Company has established the company as a valued partner and a premier provider in the group insurance coverage arena. Just some of the quality and exceptional service that Minnesota Life Insurance is known for includes the following:
100 percent of the insurer’s new clients recommend its implementation services;
The company pays out 99 percent of death claims within ten calendar days of receiving proof;
The insurer offers technological solutions to ease its policyholders’ administrative load;
The average tenure of the company’s staff is 12 years.
Its parent company, Securian, is also considered to be strong and stable. Securian has nearly 15 million customers, and more than 5,000 associates and representatives in its headquarters in St. Paul, Minnesota, as well as in sales offices around the country. Also, the company has more than $1 trillion of insurance in force, and in just the year 2014 alone, it paid out more than $4 billion in benefits to its customers.
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The Financial Strength and Ratings of Minnesota Life
The parent company of Minnesota Life Insurance Company, Securian, has been provided with extremely high ratings from the insurer ratings agencies. These include:
A+ (Superior) from A.M. Best. This is the 2nd highest of a possible 16 total ratings.
AA (Very Strong) from Fitch. This is the 3rd highest of a possible 19 total ratings.
Aa3 (Excellent) from Moody’s Investors Service. This is the 4th highest of a possible 21 total ratings.
A+ (Strong) from Standard & Poor’s. This is the 5th highest of a possible 23 total ratings.
Life Insurance Products Offered
Minnesota Life Insurance Company offers both term and cash value life insurance policies. Life insurance policies are individual and group in nature.
For the group plans that are offered, regardless of whether these are offered as basic or as voluntary plans, group life insurance products are considered to be the mainstay of most employee benefits programs – and Minnesota Life Insurance Company provides them all.
Group life insurance products that are offered through Minnesota Life include the following:@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Group Term Life Insurance Coverage – Group term life insurance coverage offers life insurance protection for a set period of time. This type of life insurance will pay out a benefit only if the insured passes away during the term that the coverage is in force. With term life insurance, there is no cash value build up.
Group Universal Life Insurance Coverage – A group universal life insurance plan will combine the protection of life insurance coverage along with the option to build up savings with cash value. This cash value account will earn a fixed rate of interest.
Variable Group Universal Life Insurance Coverage – A variable group universal life insurance plan will offer a death benefit, and will provide the option to invest in a variety of different investments, and will also make allocations to a guaranteed account. With a variable group universal life insurance policy, the investment “sub-accounts,” there can be some both potential risks and rates of return so that employees may “customize” their investments to meet their specific financial goals. These investments can fluctuate, and when they are redeemed, they may be worth more or less than the amount that was initially invested by the employee. These plans may be designed to include a guaranteed account that offers a fixed rate of return that is guaranteed never to fall below three percent. The guarantees for the guaranteed account are based only on the financial strength and claims-paying ability of Minnesota Life Insurance Company, which are important. However, this has no bearing on the performance of the individual investment options.
Accidental Death and Dismemberment Insurance – Accidental death and dismemberment, or AD&D, coverage provides a benefit if the insured attains bodily injuries that result in death or dismemberment as a result of an accident.
Business Travel Accident Insurance – Business Travel Accident, or BTA, insurance will provide a lump sum benefit if the insured dies or is injured due to a covered accident while he or she is traveling for business.
Critical Illness insurance – If an insured is diagnosed with a condition that is covered in a critical illness insurance policy, then the lump sum benefit may be used in any way that the insured chooses. These may include making mortgage payments, paying for child care, or paying for any out-of-pocket medical costs.
Accident insurance – The accident insurance that is provided by Minnesota Life Insurance Company will offer a payout to use in any way that the insured wishes that can cover deductibles, out-of-pocket medical expenses, or even everyday living expenses.
Other Coverage Products Offered by Minnesota Life Insurance Company
In addition to term and permanent life insurance coverage, and the accidental death and dismemberment (AD&D) insurance protection, accident insurance, and critical illness insurance to both large employers and to executive groups across the nation, this insurer also partners with Zurich International Life in order to provide group life insurance coverage for global employees.
Individual annuities are also offered by Minnesota Life Insurance Company. These can help individuals to ensure that they will have an income for the remainder of their lives, by paying out a guaranteed income stream on a regular basis, regardless of how long the person lives. Also, retirement plans are also offered through Minnesota Life Insurance Company.
They have an IncomeToday! Annuity, which is an immediate income annuity (as you can probably guess from the name). With these annuities, you pay one lump sum and then you’ll start receiving paychecks immediately. If you’re getting close to retirement, you might be worried about having enough money, but that’s where these annuities come in.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
Aside from the immediate paycheck, there are several other annuity options that you can choose. One popular is a fixed indexed deferred annuity. These are annuities that are based on the performance of the markets. That means that these annuities are going to give you guaranteed income, but there is a chance that they could earn you much more.
Another type of annuity that you can choose to supplement your retirement income is variable deferred annuities. When you invest in a variable deferred annuity, there are several options for investing your money. The investment options of the annuity can reflect your risk tolerance and you can change the investments as you get closer to retirement.
Through the parent company of Minnesota Life Insurance Company, Securian, there are many additional insurance and financial products that are offered, too. These include retirement plans, investments, and executive benefits. Because employers are this company’s key market, Securian works with groups in identifying the right plan types for their needs – from profit sharing and 401(k)s to defined benefit and cash balance plans.
The 401(k) plan design options are based primarily on employer goals, as well as the budget and demographics of the particular employer. Investment options can be selected from more than 5,800 unique investment options, and investment allocation portfolios are based on age or risk tolerance. Profit sharing and matching contribution components are also available.
While few employers offer defined benefit plans today, Securian helps companies to differentiate themselves and offer their employees the security of knowing that they’ll have an income for life with a pension income. Regardless of how the investments in the plan perform, the participants in this type of plan will be able to still receive a set amount of retirement income.
Cash balance plans are also available through Securian. These types of plans can help an employer to essentially bridge the gap between a traditional defined benefit plan and a defined contribution plan such as a 401(k). The qualified plan products that are offered by Securian are done so via a group variable annuity contract that is issued by Minnesota Life Insurance Company. While the company (Securian) works with employers of all sizes, it specializes in plans that have assets up to approximately $200 million.
Principal received an honorable mention on the list of Good Financial Cents Best Life Insurance Companies.
They are very solid financially and are a great option if they have the best rates when you run your quotes.
The History of Principal Life Insurance Company
The Principal Financial Group – also known as The Principal – was founded in 1879. This global investment management leader has been offering individuals and companies financial and insurance solutions for more than 135 years.
Since its founding, the company has grown considerably – today having more than 14,800 employees worldwide – of which roughly 10,000 are in the United States alone. The Principal is a stock company, and it trades on the New York Stock Exchange under the ticker symbol PFG.
Principal Life Insurance Company Review
Although it is known worldwide, the Principal is bound by one common purpose, and that is to provide its customers with the financial tools, resources, and information that they require to live the best lives that they can.
The Principal offers insurance, investment products, and retirement plans to both individuals and businesses. This large insurer currently has more than 19 million customers around the globe in 18 countries, and it holds more than $547 billion of assets under management. Its products and services are provided by a diverse network of companies and advisors.
This carrier has been noted as one of the World’s Most Ethical Companies, as well as One of America’s Best Employers, and the #3 Greenest CRE Company. It has also attained some additional accolades, including:
#1 Provider of Defined Benefit Retirement Plans
#1 Record Keeper of Employee Stock Ownership Plans
#1 Provider of Nonqualified Deferred Compensation plans
The Principal provides a great deal of information about its products and services on its website. Customers can also reach a customer service representative if they need help or if they have a question or a concern. A representative can easily be reached via a toll-free phone line, as well as via email.
Financial Strength and Ratings of Principal Life Insurance Company
The Principal has an excellent reputation as far as paying out it claims to its insurance policyholders.
Because of this, it has been provided with very high ratings from the insurer rating agencies.
These include the following:
A+ (Superior) from A.M. Best
AA- (Very Strong) from Fitch
A1 (Good) from Moody’s Investors Service
A+ (Strong) from Standard & Poor’s
Life Insurance Products Offered by Principal Life Insurance Company
Principal Life Insurance Company offers both term and permanent life insurance solutions. This can help its customers to better plan for their specific coverage needs when planning for the protection that they require – regardless of the stage of life that they are in.
Term Life Insurance Coverage through The Principal
With term life insurance, pure death benefit only coverage is provided, without any cash value or investment build up included in the policy. Because of that, term life insurance can often be more affordable than permanent coverage – primarily if the applicant is young and in good health. This can allow for the purchase of a larger amount of protection at an affordable premium price.
Term life insurance is often thought of as being “temporary” life insurance protection. This is because it is purchased for certain periods of time – or “terms” – of coverage such as for ten years, 15 years, 20 years, 25 years, or even for 30 years. However, when the term of coverage expires, it is necessary for the insured to purchase a new policy, at their then-current age and health condition, if they want to remain insured. However, in some cases, a term life insurance policy may offer a conversion feature whereby the insured may convert his or her policy over to a permanent form of life insurance. The Principal offers this feature on many of its term life insurance policies – and the insured will not need to provide additional evidence of insurability.
Permanent Life Insurance Coverage Through the Principal
Permanent life insurance coverage provides death benefit coverage, and it also has a cash value component as a part of the policy. The death benefit in a permanent policy will last for the remainder of the policy holder’s life. So, unlike a term policy, there is no time limit. As long as the premium is paid, the policy will remain in force.
The cash value in a permanent life insurance policy is allowed to grow on a tax-deferred basis. What this means is that there is no tax that will be due on the growth of the funds within the cash value until the time that the funds are withdrawn.
The Principal offers three key types of permanent life insurance policies. These include the following:
Universal Life Insurance Coverage
With universal life insurance coverage, there is death benefit protection, as well as cash value build up. A universal life insurance policy is flexible regarding the premium payments, as well as its death benefit protection. It can also provide flexibility concerning when the policyholder pays the premium (within certain guidelines).
With this type of life insurance policy, the cash value can accumulate based upon a floating rate of interest – yet it will have a minimum rate guarantee. In some cases, these policies may also include a secondary interest rate guarantee for even more security.
Variable Universal Life Insurance Coverage
Variable universal life insurance coverage also offers a death benefit, along with a cash component. However, the cash component policyholder be more aggressive by choosing from a variety of different market linked investments. This can allow funds to grow a great deal more, based on market performance. It can also, however, mean that there is more risk involved. With that in mind, it is important to be aware of risk tolerance before moving forward with a variable insurance product.
As with other types of permanent life insurance, a variable universal life insurance policy will also allow the policy to obtain the benefit of tax-deferred growth within the cash component. In addition, the policy holder will be allowed to either borrow or to withdraw the funds that are in the cash component for whatever need he or she has if they choose to do so.
Also, with this type of policy, the policyholder is allowed to convert the cash value to an annuity for income that he or she cannot outlive. This can help to alleviate the worry in retirement about running out of income – a fear that is held by many retirees today due in large part to our longer life expectancies.
Survivorship Life Insurance Coverage
A survivorship life insurance policy will cover two lives rather than just one. This can be less costly than purchasing two separate life insurance policies. The survivorship plans that are offered by The Principal will pay at the death of the second insured individual. These policies are frequently used for estate planning purposes to leverage various tax deductions.
Other Coverage Products Offered
In addition to life insurance, the Principal Life Insurance Company also offers other types of insurance coverage products. These include the following:
Disability Income Protection
A disability income insurance policy from The Principal can help an individual to protect their financial health from the loss of his or her income due to an injury or an illness.
While many people may think that their most valuable asset is their home or their retirement plan, it is their ability to earn an income. This is because, without the ability to earn, most other assets would be impossible to obtain or to keep.
It is estimated that one in four people who enter the workforce today will become disabled before the time that they retire. Therefore, protecting their income with a disability income policy can be a way to ensure that living expenses will still be paid over time.
With Principal, you can get a plan with as much as $20,000 in monthly benefits. One unique factor is you don’t have to be totally disabled to receive the benefits.
You can choose elimination periods as short as 30 days and benefit periods as long as 5 years. The plan is guaranteed renewable and non-cancelable, which means you don’t have to worry about losing protection.
Principal has a handful of benefits they include with their disability plan at no cost to the policyholder. One unique advantage of Principal’s plan is the death benefit, which will pay out a lump sum if the policyholder passes away while claiming the plan.
They also include a waiver of premium rider, a benefits update rider, future benefit increase rider, and several more benefits.
They also sell several additional riders you can add. They have four options to choose from:
Because of the rates and the benefits of the policy, Principal is one of the most popular options for disability coverage.
Retirement Savings Protection
In addition to just becoming disabled and not being able to earn an income, contributing to a retirement savings plan can also stop if a person is unable to work. Therefore, with retirement savings protection, contributions into retirement savings can continue while a person is not able to work because of a disabling illness or injury. With The Principal’s retirement savings protection, policy holders can insure “what could be” from “what if.”
Annuities from Principal Life
Buying an annuity is an excellent way for you to supplement your retirement income. If you’re shopping for annuities, it’s important that you find the perfect company for you. On top of all of the insurance products, Principal Life also has several types of annuities that they sell. They have four different types that you can invest your money in, depending on what your investment risk is. The four types are:
With a fixed annuity, you can choose how your money grows and select from a couple of different benefits. These annuities allow you to choose from a quick death benefit, emergency access, and IRS minimum distribution notification.There are two separate types of income annuities that are slightly different. Principal has Immediate Income Annuities and Deferred Income Annuities. The Immediate Income Annuities are designed for those that are looking to start getting income in retirement in the next 12 months. As you can probably guess, Deferred Income Annuities are for those that are looking for guaranteed income in the next 13 months or longer.
The next time is the indexed annuity. These annuities are going to give you investment safety, but without sacrificing the potential for more growth. The rates are linked to one or more equity-based indices.
Variable annuities allow you to save for retirement by getting growth that is based on market performance with different kinds of payout options. They have flexibility withdrawal options with tired surrender charges. They also offer some living benefit riders that can protect you from any risk of the market crashing and give you some additional benefits before you start taking withdrawals. A unique benefit that Principal offers with their variable annuities is the Deferred Income Rider, which lets you transfer money from your accumulated value to create more income payments, without having to pay any additional fees.