FSO Financial E-News

FINANCIAL E-NEWS from Financial Services Online (http://www.fsonline.com)

January 1st, 1999 Edition

National Life of Vermont	Ascensus
LUTC

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FINANCIAL E-NEWS is designed to provide you with a synopsis of recent news that could impact you and/or your clients. Please note that FINANCIAL E-NEWS can be duplicated. In fact, we hope you will do so and provide copies to any of your colleagues whom you feel might be interested. If you would like them to receive their own free copy of the E-News, just send them to http://www.lutc.com/fso1/newsreg.html where they can register for free.

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Extra! Extra!

THE BEST CALLING CARD IN AMERICA - With VoiceNet, savings of up to 89% are within your reach. If you or your family use a calling card, join the 250,000 other card users who enjoy the benefits and savings available from VoiceNet. Check out the details at http://www.voicenetcard.com/2995017

Industry News

LIMRA TRENDS - Some future trends for the insurance industry, as predicted by LIMRA and its president, Richard Wecker: Mergers and acquisitions continue, more corporate leaders from other industries, increased regulation and consumerism, cost pressures lead to new distribution systems, retirement planning increases in importance, a single financial services industry and other scary things! On the positive side, companies are beginning to return to their "core competencies," and Wecker sees the return to selling life insurance as the top growth opportunity for companies.

NET INFLUENCE - Reflecting the growing influence of the Internet, Standard & Poor has added America Online to its S&P 500 index. Venator Group (formerly Woolworth Corp.) was bumped from the S&P 500 to make room for AOL.

FEDERAL REGULATOR? - A recent study by the American Council of Life Insurance (ACLI) touts the savings and competitive advantages of federal regulation of insurance. The study estimates that federal regulation could cost one third less than the combined costs of 50 state insurance departments. This is not likely to be very popular with the National Association of Insurance Commissioners (NAIC). Another scenario is joint federal/state regulation. For example, the Office of the Comptroller of the Currency and the Oklahoma Insurance Department have agreed to share information about complaints against banks selling insurance in Oklahoma, the first such deal between federal and state regulators.

UP, UP AND AWAY - According to Kiplinger, the nation's health care costs are certain to mushroom in coming years, jumping more than 100% to $2.1 TRILLION by 2007, when health spending will account for about 17% of gross domestic product, up from 12% now. Meanwhile, the Health Insurance Association of America is predicting that more than one out of every five non-elderly Americans will be uninsured by 2007 (more if there is an economic downturn or if health costs increase even faster than predicted). Scary picture!

BUYING INFLUENCE - A National Underwriter article reveals that the insurance industry spent $66 million lobbying Congress in 1997 (plus an additional $21 million in campaign contributions). This is second only to the pharmaceutical/health products industry, which spent over $74 million in lobbying and almost $8 million in campaign contributions. Might help explain in part why health costs are increasing.

AETNA AND THE AMA - The American Medical Association has had a "thorny" relationship with Aetna due to its managed care approach to medicine and things got worse recently. The AMA went to the Justice Department antitrust division with its opposition to Aetna's purchase of the Prudential's healthcare business, a purchase that would make Aetna the largest U.S. managed care provider. The AMA claims the deal would severely limit patient choice.

BIG MUTUAL PAINS - More cuts from all the big mutuals, which are struggling to improve profitability as they demutualize. Expect "the other shoe to drop" at Met, Pru and others soon.

VOTE DELAYED - Investment News reports that the International Association for Financial Planning and the Institute of Certified Financial Planners have postponed a scheduled vote on their proposed merger.

MEDICARE FRAUD - The Justice Department has joined a lawsuit alleging that Columbia/HCA Healthcare Corp., currently the largest U.S. health care provider, defrauded Medicare and other federal insurance programs by routinely filing false reimbursement claims.

National Life of Vermont	Ascensus
LUTC

By visiting our sponsors you will help ensure that Financial E-News keeps coming to your emailbox free of charge!

Marketing/Tax Update

OUR BEST WISHES FOR A VERY HAPPY, HEALTHY AND PROSPEROUS 1999! To get the new year off to a good start, here are some of the best sites we directed you to in 1998. You might want to check them again and/or bookmark them for future use.

Financial Planning Interactive: Great site for serious planners (http://www.fponline.com/news/index.shtml)
VoiceNet: Save up to 89% long distance calls (http://www.voicenetcard.com/2995017)
Wall Street Journal Interactive: Their estate planning sites: Nolo Press (http://www.nolo.com/ChunkEP/EP.index.html) Mark Welch's Estate Planning Site (http://www.ca-probate.com) Dennis Kennedy's Site (http://members.aol.com/dmk58/epl.html) National Association of Financial & Estate Planning (http://www.nafep.com)
Impaired Risk: List conditions that require a rating, print fact finders (http://www.ascensus.com/impaired.htm) o U.S. Consumer Gateway: Who has jurisdiction over a specific consumer problem (http://www.consumer.gov)
Clinton Opinion?: E-Mail your Representative and Senators. Senate: http://www.senate.gov/senator/membmail.html House: http://www.house.gov/writerep/
National Debt: "to the penny" (http://www.publicdebt.treas.gov/opd/opd.htm)
TimeValue: Extensive calculators and IRS extension forms (http://www.timevalue.com)
Executive Pay Watch: From the AFL/CIO (http://www.paywatch.org)
Moody's Investor Services: Insurance company financial strength, ratings, etc. (http://www.moodys.com/insurance)
Annuity Spreadsheet: Benefits, rates, etc. for the best annuities (http://www.ascensus.com/fsoannuity.htm)
LTC information: "Mr. Long-Term Care" (http://www.mrltc.com)
FBOExchange: Forum for life or health insurance questions (http://www.FBOexchange.com)
Roth to Riches: When and how to use the Roth IRA (http://www.rothira.com/bledsoebk.htm)
The Motley Fool: Consumer financial advice (http://www.fool.com)
Financial Services Journal Online: First, free financial e-zine with great articles (http://fsc.fsonline.com/fsj)
Chicken Soup for the Soul: Start every day feeling good! (http://www.soupserver.com)
"Five Wishes": User-friendly and free living will (http://www.agingwithdignity.org)
Vietnam Veterans Memorial: "The Virtual Wall" (http://www.thevirtualwall.org)
Recruit Profiler: Web-based recruiting tool from LIMRA (http://www.limra.com and click on the hyperlink)
Lifetime Planning Strategies: Publication from National Life of Vermont (http://www.nlv.com/national_life/html/chickensoup.htm)
LIFE: Life and Health Insurance Foundation for Education (http://www.life-line.org)
National Underwriter: Nice new site with archives (http://www.nuco.com)
Charitable Regs Site: From expert, Vaughn Henry (http://members.aol.com/crtrust/CRT.html)

FINANCIAL NET DIRECTOR - You can find all of the above and more at the Net Director. All the great financial sites on the Net bookmarked on one page! (http://fsc.fsonline.com/netdir.html)

MINIMUM INVESTMENTS - An article by Reuters points out one of the potential problems with individuals investing a portion of their Social Security contributions in mutual funds. Most funds require minimum investments of $1,000 to $3,000. According to Mutual Funds Magazine, there are fewer than 25 funds with initial investment minimums of $100 or less, most of which carry very high sales charges and few of which have strong performance records. Minimum initial investment requirements have reportedly also put a damper on mutual fund Education IRAs, which allow for a maximum $500 annual contribution.

CATASTROPHIC SITE - If you find yourself in the path of a tornado and need to know what to do, jump on the Net and check out Allstate's Catastrophe Information Center (http://www.allstate.com/catastrophe/default.asp). It really is a neat site with some helpful tips for you and your clients.

RUMOR MILL - Since 1965, the Department of Veterans Affairs has fought a rumor that it is paying dividends on SGLI and VGLI plans. Apparently the Internet is being used to rekindle the rumor. FYI...both plans are group insurance and will not pay dividends.

CE AT SEA - The International Association of Registered Financial Consultants (IARFC) is sponsoring its 8th annual "CE at Sea" event, a Mediterranean cruise/educational conference scheduled for May 5-17, 1999. An information packet is available by calling 800-666-1656.

OCTUPLETS - We don't know who is on the risk for this, but apparently an insurance company will pick up at least a $2 million tab for the octuplets born recently in Houston. These multiple births run a substantial risk of resulting in children with various disabilities, so the $2 million may be just the beginning. The concern among infertility doctors is that a "backlash" might cause insurance companies to reexamine the economics of covering fertility treatments.

PET CREDIT - Scientific evidence indicates that pet ownership has positive effects on health. Now if you are over age 65, a pet owner and apply for a life policy with Midland Life, you may get a better rating. Don't expect a big reduction, but pet ownership could make a one class rating difference!

Addendum

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