By James Lunders, West Des Moines Insurance Agent

Although the number of crash-related fatalities for children has steadily decreased since 1975, motor vehicle crashes remains one of the leading causes of death for children¹.  The National Highway Traffic Safety Administration (NHTSA) revealed that, on average, 6 children under the age of 15 years were killed and 721 were injured in crashes everyday in 2002².  Sadly, most of these deaths could have been prevented.  Half of all children under age 15 killed in crashes were completely unrestrained².  Although all 50 states currently have some form of child restraint laws, parents and drivers need to make sure children are appropriately restrained every car ride.  Here are some tips to help keep kids safe in vehicles:            

• All children 12 and under should ride in the back seat of the vehicle appropriately restrained³            
• Make sure children are appropriately restrained according to current best practices.  NHTSA recommends the following guidelines⁴:
  • Infants: Birth until at least 20 pounds AND at least 1 year old should ride rear-facing in an infant or convertible seat
  • Toddlers: Over at least 20 pounds AND over at least 1 year old; up to 40 pounds should ride forward-facing in a convertible or combination seat
  • Young children: Over 40 pounds; Up to at least age 8, unless 4’9” should ride in a belt-positioning booster seat with a lap and should seat belt
  • Older children: Over 8 years old or 4’9” should use a lap and shoulder seat belt

• All child safety seats should be used and installed according to the manufacturer’s instructions, as well as the vehicle owner’s manual instructions
• Never place a rear-facing infant seat in front of an airbagBe a good role model…always wear your seat belt.  For adults, seat belts in combination with air bags provide the best protection against injury and death in crashes.  

¹Insurance Institute For Highway Safety

²National Highway Traffic Safety Administration

³AmericanAcademy of Pediatrics

4Current as of May 2003

January 24th, 2008

By  James Lunders

Insurance Agent
So your 1040 is filed and you are now anxiously waiting for your refund. What do you plan on doing with it? Go on that long-awaited cruise, get a new set of golf clubs or buy that wide-screen TV you’ve had your eye on? There are so many ways you could spend your refund, but there may be better alternatives to consider.
According to the Internal Revenue
Service, over 75 percent of American taxpayers received a federal tax refund, with the average around $2,500. It’s what you do with your refund now that may create a better financial future for you and your family later on.
Instead of spending your refund this year, consider funding an Individual
Retirement Arrangement (IRA), setting up a college savings fund for a child, or paying down credit card debt. These options will help to improve your financial situation.
First on your list of priorities should be paying down any high-interest credit card debts you have incurred. By paying only the minimum each month, you may be paying just the interest (or less) on the debt and little or nothing towards the principal. Paying down the debt can free up additional money for other important financial needs.
If debt is not a problem, your tax refund could provide you an excellent opportunity to fund an existing IRA or establish a new one. For the 2007 tax year, you can contribute up to $4,000 to an IRA. If you are 50 years or older by December 31, 2007, you can add an
additional $1000 to the account. Making a tax-deductible contribution to a Traditional IRA is an option if you are not participating in an employer-sponsored retirement plan or, if you are participating, your Adjusted Gross Income falls within eligibility guidelines.
A Roth IRA may be a more appropriate choice, depending on your eligibility. Contributions to a Roth IRA are not tax deductible. However, qualified distributions are received free from federal income tax.
Your refund could also be used to fund a Coverdell Education Savings Account
(ESA) or 529 Plan for your child. Contributions are not deductible, but withdrawals to pay qualified educational expenses are free from federal income tax.
One thing to remember after you’ve decided the fate of this year’s refund: the check you received is not a windfall but the return of an interest-free loan you provided the government.
Regardless of the pleasure you may get from receiving a large check each tax year, adjusting the amount withheld by Uncle Sam to reduce the amount of future refunds may be an appropriate course. You may not get a refund in April, but there may be more in each paycheck to contribute to a Coverdell ESA, 529 plan, IRA or to pay down debt throughout the year.
Take some time to consider your options before making the down payment on that cabin cruiser. The earlier you start saving for your future, the more you may have during your retirement.
If you have questions about these options and others, you owe it to yourself to contact a financial services professional that you know and trust. Your financial future may depend on it.

January 31st, 2008 A question I face a lot is with regard to child safety seats. The problems usually come in the form of confusion. People don’t know how to get the seat placed correctly in the car, don’t know what size seat to use and don’t know if the seat they are using is of good quality. The government is stepping in and in the article listed below from the AP you can see that the safety ratings are getting easier to understand.

James Lunders, Insurance Agent

By KEN THOMAS
ASSOCIATED PRESS

WASHINGTON — Parents who struggle to install their child safety seats or fasten their toddlers in the backseat chairs are getting new guidance from the government.

The Transportation Department said Wednesday it was revamping a consumer ratings system for child safety seats to help parents and caregivers make the best choice.

The new approach is to use a five-star rating system, based on the seats’ ability to secure a child and the ease with which the seats are installed. It also is to consider the seats’ labeling and instructions.

“We believe that the new star system will help simplify one of parents’ most important decisions: choosing the best safety seat that will protect their children,” Transportation Secretary Mary Peters said at an Arlington, Va., fire station.

Many parents can attest to the frustration found in securing a car seat or making sure their child is strapped in. The National Highway Traffic Safety Administration said seven in 10 child safety seats are either the wrong size or misused, reducing their ability to protect kids in a crash.

NHTSA estimates that child restraint systems reduce fatal injuries by 71% for infants and 54% for toddlers in cars and by nearly 60% for infants and toddlers in SUVs, pickups and vans.

By James Lunders, Agent

There are so many “rainy days” that people can experience — a sick child, a broken-down car, a late mortgage payment.
But what about a lawsuit?
These days more and more lawsuits are being filed — not just against big corporations, but also against people like you and me. Litigation can be expensive when you add up lawyer’s fees and settlements or jury awards. If you have assets, such as cars or a home, you should consider a personal liability umbrella policy.
What is an umbrella?
A personal liability umbrella policy is designed to give you extra liability protection. It can include coverage for various situations such as false arrest, false imprisonment, wrongful detention, libel, slander, defamation of character or invasion of privacy.
This policy can be beneficial, especially if you are ever sued because of an accidental injury to someone else or damage to their property.
For example, if a visitor tripped and fell down your stairs, your homeowners insurance would cover his or her doctor bills.
But if the person went a step further and decided to sue you; would your homeowners policy provide enough coverage? If a jury awarded damages that exceeded your coverage limits, you could be in jeopardy of losing your home or other assets. This is where the umbrella could help you out by giving you extra protection. A personal liability umbrella can also be applied to your auto coverage.
Why an umbrella?
A personal liability umbrella policy can give you a lot of coverage — about $1 million worth — for a small premium.
It can protect your assets when you need it the most and can bring you piece of mind knowing that you have it around.
To see if this is a policy that can be beneficial to you, talk to your insurance agent.

When you are trying to choose just the right gift for your grandchildren, you can have a tough time sifting through the newest trends and fads. Last week it was this pop star, next week it may be a new cartoon character. On top of that, you don’t want to get something that won’t last 10 minutes out of the package.
One gift that will last for many years is a life insurance policy. There are many reasons why it can be an excellent gift for your grandchild .
· Affordability – The younger the child’s age, the lower the premiums.
· Protection – Illness or injury may affect a child’s ability to purchase life insurance coverage later in life. Coverage purchased now will continue to provide protection, even if a child’s health changes, provided premiums are paid as required by the policy.
· Financial Security – Life insurance can be the foundation for a strong financial plan. The child may be able to borrow against the accumulated cash value (with interest charged) to pay for future expenses. While loans decrease death benefits and cash surrender values, the proceeds can be used for important expenses such as a college education or the purchase of a home.
Giving a gift of life insurance to your grandchild can be one of the most significant things you do during your lifetime. He or she may not understand at the time how important the gift is, but should grow to appreciate it in the future.
Take the guesswork out of your gift shopping. Life insurance is a gift that will last a lifetime.

By James Lunders, Agent

By James Lunders, agent

April 15 has long been considered a date to avoid. Visions of tax men coming for your money are common in many advertisements on television and in print.
Wouldn’t it be nice if you could do something to lower your federal income tax burden instead of mailing a big check on April 15? With a traditional Individual Retirement Arrangement (IRA), you may be able to do just that.
A contribution of the 2007 maximum of $4,000 prior to April 15, 2008 could reduce your taxable income, making your federal tax burden less for the year. If you were 50 or older by the end of 2007, you can add a $1000 catch-up contribution to potentially reduce the tax burden even more.

If you already have a traditional IRA, plan to make a contribution prior to the April 15 deadline. If not, talk to a financial professional as soon as possible to start one.
There are restrictions governing who may contribute to a traditional IRA. If you don’t qualify, consider a Roth IRA. You won’t get the federal tax advantages now, but qualified withdrawals can be made free of federal income tax during your retirement years.
Either way, having a plan for retirement is important. You owe it to yourself to make the best plan as soon as possible.

By James Lunders, Agent

Every day people ask themselves, “How much homeowner’s insurance do I need?” The answer varies, depending on each person’s situation. Usually you should insure your home for its whole value, the actual building and all of its contents.
In order to find out exactly how much your home is worth, you should have it appraised. You can have an appraiser, builder or insurance agent give you an estimate on its value. However, if you ever remodel or add on to your home, its value will increase, and you will then need to purchase more coverage.
For any valuable possessions you have, you can purchase extended coverage, to ensure those items are covered as well. The best thing to do is take a room-by-room inventory of your valuables then keep this list somewhere outside the home, for example, a safe-deposit box.
To determine if valuable possessions, such as TVs, stereos or computers are covered, or if you have any other questions about homeowner’s insurance, contact your insurance agent.

Costly Misconceptions:
Most People Mistakenly Believe Long-Term Care is Covered

By James Lunders

Have you failed to get insurance for long term care in a nursing home because you think you already have coverage? If so, you’re like a lot of other people, according to a Roper survey of Americans 45 years of age and over, recently released by the American Society on Aging (ASA).
That misconception can become costly when you consider long-term care in a nursing home currently averages $56,000i a year, according to the US Government, and is expected to quadruple by 2030ii. People could easily find their assets depleted, their choices limited and their independence gone if they need long-term care but have made no plans to pay for it.
And chances are good they will need long-term care. Statistics released by the Health Insurance Association of America say that after age 65, Americans have more than a 70 percent chance of needing some form of long-term care, whether it’s an aide coming to their home, a stay in an assisted care facility or an extended stay in a nursing home.iii Younger people may also need long-term care if they’ve had a stroke, for example, or been in an accident.
“This survey confirms that Americans need to wake-up to the realities of long-term care,” said Jim Emerman, senior vice president of the ASA. “All it takes is a phone call to a financial services professional to find out the truth behind the misconceptions so many have about long-term care.”
Some of the common misconceptions uncovered in the Roper studyiv are these:
• Forty-two percent were not aware
Medicare only covers long-term care expenses for a short time, and only after someone is released from the hospital.
• Thirty percent were not aware
Medicaid coverage for long-term care is only available after someone’s financial resources are exhausted.
• Almost half (46 percent) are under the impression their health insurance will automatically cover long-term care.
It’s dangerous to assume you’re covered for long-term care. When the need for a nursing home stay or other long-term care arises, you may discover you’re not covered and have waited too long to buy insurance. Long-term care insurance is an important part of a financial plan. I urge people to speak with a financial services professional about their need for long-term care insurance now, before it’s too late to get coverage

i Estimates from: Health Care Financing Administration, Office of the Actuary, National Health Statistics Group. As presented in, “Nursing Homes.” AARP Public Policy Institute Fact Sheet. February 2001: pg. 3.
ii Can Aging Baby Boomers Avoid the Nursing Home? Long-term Care Insurance for Aging in Place.” American Council of Life Insurers. March 2000: pg. 15.
iii Lewin Group estimates based on the Brookings-ICF Long-term Care Financing Model, 1992. As cited in, “Long-term Care: Knowing the Risk, Paying the Price.” Health Insurance Association of America (HIAA). 1997: pg. 12. The level of coverage provided by long-term care insurance depends on the type of policy you purchase. Some types of care received may not be covered by long-term care insurance.
iv Study conducted by Roper ASW, August 2002.

By James Lunders

The dream of owning a business becomes a reality for thousands of people each year.
For many of these would-be captains of industry, that means starting the operation on a small scale. However, your enterprise may be in jeopardy if you don’t have business insurance.
You need business insurance because most beginning entrepreneurs don’t have the financial resources to handle adversity if it should come. Adversity can happen in many ways: fire can destroy your inventory, a power outage could cause your goods to spoil or a customer could be injured accidentally while visiting your location.
Business insurance can protect you from these hazards and others by providing many or all of the coverages listed below:
· Accidental direct physical loss coverage for business personal property,
· Broader off-premises property coverage,
· Loss of income coverage and
· Extra expense coverage.
This list above is just a sample of what’s available. You should contact your agent to see what coverages are right for your business.
Many entrepreneurs start their businesses on shoestring budgets and try to cut corners by keeping expenses at a minimum. But when you consider what you get, business insurance becomes a tool you can’t afford to work without it.

This site is being developed daily and should be up to speed by the end of February, 2008.

Thank you for visiting.

James