Please refer to the chart below as a guideline for estimating your quote rating class. This chart represents a collective sample of underwriting guidelines and is not intended to be all-inclusive or a guarantee of coverage. Your final rating class will be determined through underwriting and all guidelines vary by company.
Preferred Plus
Preferred
Standard Plus
Standard
Medical History
See list below
Family History
No cardiovascular disease or cancer in either parent or siblings prior to age 60.
No death from cardiovascular disease or cancer in either parent or siblings prior to age 60.
Not more than one parent death from cardiovascular disease or cancer prior to age 60.
Not more than one parent death from cardiovascular disease or cancer prior to age 60.
Cholesterol / HDL Ratio
May not exceed 5.0
May not exceed 6.0
May not exceed 7.0
Levels above 7.0 may qualify
Cholesterol Level
May not exceed 220
May not exceed 240
May not exceed 260
Levels above 260 may qualify
Blood Pressure
No history of treatment. May not exceed 140/85.
Currently controlled. Current and historic readings over last two years may not exceed 145/88
Currently controlled. Current and historic readings over last two years may not exceed 150/92
Currently controlled. Current and historic readings over last two years may not exceed 150/92
Alcohol / Substance Abuse
No history.
No history in the past 10 years.
No history in the past 7 years.
No history in the past 7 years.
Driving History
No DUI, DWI or reckless driving in the past 5 years. No more than 1 moving violations in the last 3 years.
No DUI, DWI or reckless driving in the past 5 years. No more than 2 moving violations in the last 3 years.
No DUI, DWI or reckless driving in the past 3 years. No more than 3 moving violations in the last 3 years.
No DUI, DWI or reckless driving in the past 2 years. No more than 3 moving violations in the last 3 years.
Aviation
Commercial airline pilots may qualify. Not available for private pilots.
Commercial airline pilots may qualify. Private pilots may qaulify with an exclusion rider or extra premium.
Commercial airline pilots may qualify. Private pilots may qualify with an exclusion rider or extra premium.
Commercial airline pilots may qualify. Private pilots may qualify with an exclusion rider or extra premium.
Hazardous Avocation
Not available.
May be available with extra premium.
May be available with extra premium.
May be available with extra premium.
Residence and / or Citizenship
Must be a U.S. resident for the past 3 years. Must be a US citizen or have permanent Visa.
Must be a U.S. resident for the past 3 years. Must be a US citizen or have permanent Visa.
Must be a U.S. resident for the past 3 years. Must be a US citizen or have permanent Visa.
Must be a U.S. resident for the past 3 years. Must be a US citizen or have permanent Visa.
Military
No active duty.
May be on active duty.
May be on active duty.
May be on active duty.
Foreign Travel
No travel to countries under State Department Advisory. Varies by company.
No travel to countries under State Department Advisory. Varies by company.
No travel to countries under State Department Advisory. Varies by company.
No travel to countries under State Department Advisory. Varies by company.
Medical History
Condition
Preferred Plus
Preferred
Standard Plus
Standard
Alcohol / Drug Abuse Dependancy History
No
Yes
Yes
Yes
Anxiety
No
No
Yes
Yes
Arthritis (rheumatoid)
No
Yes
Yes
Yes
Asthma
No
Yes
Yes
Yes
Chronic Bronchitis
No
Yes
Yes
Yes
Cancer
No
No
No
Yes
Cardiovascular / Heart Disease
No
No
No
Yes
Cholesterol Treatment
No
Yes
Yes
Yes
Chronic Obstructive Pulmonary Disease
No
Yes
Yes
Yes
Crohn's Disease
No
No
No
Yes
Depression
No
No
Yes
Yes
Diabetes Type I *
No
No
No
No
Diabetes Type II
No
No
No
Yes
Emphysema
No
No
No
Yes
Epilepsy
No
No
Yes
Yes
Hypertension (High Blood Pressure)
No
Yes
Yes
Yes
Kidney / Liver Disease (chronic)
No
No
No
Yes
Melanoma
No
No
No
Yes
Multiple Sclerosis
No
No
No
Yes
Sleep Apnea
No
No
No
Yes
Stroke (including TIA)*
No
No
No
No
Ulcerative Colitis
No
No
No
Yes
Vascular Disease
No
No
No
Yes
* A substandard rating may be available for these medical conditions, depending on individual circumstances and insurance company guidelines. Please email or call 800-867-2404 for additional information or quotes.
Tuesday, October 27, 2009
Included Features vs. Available Options (Riders)
Many term life insurance policies include specific features with the policy that do not require additional premium. QuickQuote refers to these throughout the Web site as 'Included Features'.
An example of a common Included Feature is the Accelerated Death Benefit provision. This provision typically allows for the one-time acceleration or advance of up to 50% of the death benefit proceeds payable under the base insurance policy, not to exceed $250,000. An insured may become eligible for this benefit if diagnosed by a qualified physician as having 12 months or fewer to live. Specific requirements and limits vary by company.
Nearly all term life insurance policies in the marketplace offer optional benefits the policy owner can add to the policy for additional premium. These benefits are commonly called optional riders. QuickQuote refers to these throughout the Web site as 'Available Options'.
Examples of common Available Options are:
Accidental Death Benefit Rider: This benefit is optional with many policies today. It provides an additional death benefit when the insured's death is caused by an accident.
Children's Term Life Insurance Rider: An optional policy provision that provides a small amount of life insurance coverage on the lives of the primary insured's children. The amount of coverage varies by company and one rider typically covers all of the insured's eligible children.
Waiver of Premium Rider: An optional policy provision that provides for the continuation of life insurance coverage without further premium payments if the insured becomes totally disabled.
An example of a common Included Feature is the Accelerated Death Benefit provision. This provision typically allows for the one-time acceleration or advance of up to 50% of the death benefit proceeds payable under the base insurance policy, not to exceed $250,000. An insured may become eligible for this benefit if diagnosed by a qualified physician as having 12 months or fewer to live. Specific requirements and limits vary by company.
Nearly all term life insurance policies in the marketplace offer optional benefits the policy owner can add to the policy for additional premium. These benefits are commonly called optional riders. QuickQuote refers to these throughout the Web site as 'Available Options'.
Examples of common Available Options are:
Accidental Death Benefit Rider: This benefit is optional with many policies today. It provides an additional death benefit when the insured's death is caused by an accident.
Children's Term Life Insurance Rider: An optional policy provision that provides a small amount of life insurance coverage on the lives of the primary insured's children. The amount of coverage varies by company and one rider typically covers all of the insured's eligible children.
Waiver of Premium Rider: An optional policy provision that provides for the continuation of life insurance coverage without further premium payments if the insured becomes totally disabled.
Variable Universal Life Insurance:
Variable universal life insurance is similar to universal life insurance. It is a flexible premium, permanent life insurance policy that allows policy owners to have premium dollars allocated to a variety of investment options, including a fixed account. The policy allows for changes to the death benefit and policy premium. Variable universal life insurance may be a good option for people who want to combine life insurance with a higher potential for investment return at a higher risk.
Variable Life Insurance:
Variable life insurance provides death benefits and cash values that vary with the performance of a portfolio of underlying investment options. Policy owners can allocate a portion of premiums among a variety of investment options such as stocks, bonds and mutual funds. Fixed accounts with guaranteed interest rates are also an option. Variable life insurance may be a good option for people who are willing to assume investment risk in an effort to achieve greater returns. With variable life insurance, much of the investment risk is shifted from the insurance company to the policy owner. Good investment performance would provide the potential for higher cash values and death benefits. If the specified investments perform poorly, cash values and death benefits would drop accordingly.
Universal Life Insurance:
Universal life insurance is also referred to as adjustable life insurance. It allows policy owners to pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. Policy owners can also reduce or increase the death benefit of a universal life insurance policy more easily than with other types of permanent life insurance policies. Universal life insurance policies provide the certainty of a guaranteed minimum amount of death benefit, as long as premiums are sufficient to sustain that death benefit. Most universal life insurance policies will also provide a guaranteed rate of return on the policy's cash value. However, it is possible a policy will not accumulate cash value if the insurance company's administrative expenses increase, mortality assumptions are changed, investment portfolio does not perform as expected, or the policy premium payments are insufficient.
Whole Life Insurance:
Whole life insurance is also referred to as ordinary life. This the most common type of permanent life insurance. It provides the certainty of a guaranteed amount of death benefit and a guaranteed rate of return on cash values. The premium is also level and guaranteed to never increase. Some types of whole life insurance policies allow policy owners to participate in the financial prosperity of the insurance company by receiving dividends. Dividends can by used to grow the death benefit and/or the cash value of the policy.
Permanent Life Insurance
Permanent life insurance provides lifelong protection. As long as the premiums are paid, the policy will stay in force until a death benefit is paid. These policies are designed and priced to keep over a long period of time. They are generally recommended for people who believe they will have a lifelong need for life insurance coverage or for coverage that extends beyond the maximum allowed by term life insurance (currently 30 years).
Another characteristic of permanent life insurance is a feature known as cash value or cash-surrender value. In fact, permanent life insurance is often referred to as cash value life insurance because these types of policies can build cash value over time, as well as provide a death benefit to the beneficiaries.
Cash values, which accumulate on a tax-deferred basis just like assets in most retirement plans, can be used in the future for any nearly any purpose. Policy owners can borrow cash value for a down payment on a home, to help pay for their children's education or to provide income for retirement. When money is borrowed from a permanent life insurance policy, the policy's cash value is used as collateral and the borrowing rates tend to be relatively low. And unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions. The loan must ultimately be paid back with interest or the beneficiaries will receive a reduced death benefit and cash surrender value.
If the policy owner needs or wants to stop paying premiums, the cash value can be used to continue the current life insurance protection for a specified time, or to provide a lesser amount of protection for the remainder of the policy. If the policy owner decides to stop paying premiums and surrenders the policy, the guaranteed policy values will be paid to him/her.
There are several types of permanent life insurance policies available including whole life, universal life and variable life. Each offers its own set of options and features including fixed or variable premiums, fixed or variable death benefits and policy loan provisions among others.
Another characteristic of permanent life insurance is a feature known as cash value or cash-surrender value. In fact, permanent life insurance is often referred to as cash value life insurance because these types of policies can build cash value over time, as well as provide a death benefit to the beneficiaries.
Cash values, which accumulate on a tax-deferred basis just like assets in most retirement plans, can be used in the future for any nearly any purpose. Policy owners can borrow cash value for a down payment on a home, to help pay for their children's education or to provide income for retirement. When money is borrowed from a permanent life insurance policy, the policy's cash value is used as collateral and the borrowing rates tend to be relatively low. And unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions. The loan must ultimately be paid back with interest or the beneficiaries will receive a reduced death benefit and cash surrender value.
If the policy owner needs or wants to stop paying premiums, the cash value can be used to continue the current life insurance protection for a specified time, or to provide a lesser amount of protection for the remainder of the policy. If the policy owner decides to stop paying premiums and surrenders the policy, the guaranteed policy values will be paid to him/her.
There are several types of permanent life insurance policies available including whole life, universal life and variable life. Each offers its own set of options and features including fixed or variable premiums, fixed or variable death benefits and policy loan provisions among others.
Instant Issue Term Life Insurance:
This revolutionary product combines the advantages of traditional term life insurance such as affordable, guaranteed level-premium periods, with the speed and simplicity of the Internet. Policies are generally issued in as little as 15 minutes with no medical exams and no lengthy underwriting.
Qualified applicants can currently select coverage amounts from as low as $25,000 to $150,000 and coverage periods of 10, 15, or 20 years. A convenient online application allows the applicant to sign digitally through e-signature. There are no forms to fill out or mail. Once approved, the applicant is asked to set up an online account for payment processing and a policy is issued electronically.
Qualified applicants can currently select coverage amounts from as low as $25,000 to $150,000 and coverage periods of 10, 15, or 20 years. A convenient online application allows the applicant to sign digitally through e-signature. There are no forms to fill out or mail. Once approved, the applicant is asked to set up an online account for payment processing and a policy is issued electronically.
Return of Premium (ROP) Term Life Insurance:
Return of Premium (ROP) term life insurance is a relatively new product that combines the advantages of traditional term life insurance such as affordable, guaranteed level premium periods (10, 20 or 30 years), with a return of premium feature. At the end of the level premium period, 100% of the premiums paid will be returned to the policy owner (excluding substandard fees and any extra charges).
Of course, there is a price to be paid for this added benefit. The premiums for ROP policies are higher than premiums for standard term life policies. The insurance company will generally invest these additional premium dollars during the term of the policy, which allows them to return your premiums to you at the end of the term period.
One factor to consider is term life insurance rates have dropped considerably over the past decade, mostly because people are living longer. If you own a standard term life policy, there's really no harm done in dropping that policy in favor of a newer and cheaper term life policy. But if you own a ROP policy, dropping the policy before the full term has expired means that you will have paid a high price for your life insurance coverage and the premiums you've paid may only be partially refunded.
Of course, there is a price to be paid for this added benefit. The premiums for ROP policies are higher than premiums for standard term life policies. The insurance company will generally invest these additional premium dollars during the term of the policy, which allows them to return your premiums to you at the end of the term period.
One factor to consider is term life insurance rates have dropped considerably over the past decade, mostly because people are living longer. If you own a standard term life policy, there's really no harm done in dropping that policy in favor of a newer and cheaper term life policy. But if you own a ROP policy, dropping the policy before the full term has expired means that you will have paid a high price for your life insurance coverage and the premiums you've paid may only be partially refunded.
Level Premium Term Life Insurance:
Level premium term life insurance offers fully-guaranteed premium rates, which means the premiums on the policy are guaranteed to remain the same for the entire term period. Level premium term life insurance is a fully-underwritten product and is available in amounts as low as $50,000 up to $20 million or more, depending on the insurance company. It is the most common form of term life insurance.
Term Life Insurance
Term life insurance provides pure life insurance in its most inexpensive form. Term life insurance provides coverage for a set period of time (the policy term) and generally pays a death benefit only if the insured dies during the policy term. The policy term typically ranges from 1 to 30 years, with 20 years being the most common term.
One of the biggest advantages of term life insurance is its lower initial cost in comparison to permanent life insurance. Term life insurance policies have no cash value accounts, policy loan provisions or other features typically found in permanent life insurance policies. With term life policies, you're generally just paying for the death benefit, which is the lump sum payment your beneficiaries will receive if you die during the term of the policy. With most permanent life policies, your premiums help fund the death benefit and can accumulate cash value.
Term life insurance is often a good choice for people in their family-formation years, especially if they're on a tight budget. It allows an individual to buy high levels of coverage when the need for protection is often greatest. Term life insurance is also a good option for covering needs that will disappear in time. For instance, if paying for a child's education is an applicant's major financial goal, it would be wise for the applicant to purchase a term life insurance policy that will cover the period of time necessary to reach that goal.
One of the biggest advantages of term life insurance is its lower initial cost in comparison to permanent life insurance. Term life insurance policies have no cash value accounts, policy loan provisions or other features typically found in permanent life insurance policies. With term life policies, you're generally just paying for the death benefit, which is the lump sum payment your beneficiaries will receive if you die during the term of the policy. With most permanent life policies, your premiums help fund the death benefit and can accumulate cash value.
Term life insurance is often a good choice for people in their family-formation years, especially if they're on a tight budget. It allows an individual to buy high levels of coverage when the need for protection is often greatest. Term life insurance is also a good option for covering needs that will disappear in time. For instance, if paying for a child's education is an applicant's major financial goal, it would be wise for the applicant to purchase a term life insurance policy that will cover the period of time necessary to reach that goal.
Life Insurance Basics
One simple definition of life insurance states it is coverage placed on the life of an individual whereas an insurance company issues a policy and pays a stated death benefit in the event of the insured's death. Life insurance is intended to provide financial stability and support to the dependents and beneficiaries of the insured.
While the general concept of life insurance seems simple enough, there is nothing simple about the overwhelming number of policy options available in the marketplace today. Our discussion will focus on the two basic types of life insurance: term life insurance and permanent life insurance. We will also briefly describe the most common variations of each type of life insurance.
While the general concept of life insurance seems simple enough, there is nothing simple about the overwhelming number of policy options available in the marketplace today. Our discussion will focus on the two basic types of life insurance: term life insurance and permanent life insurance. We will also briefly describe the most common variations of each type of life insurance.
Ethical Life Insurance Companies
The Insurance Marketplace Standards Association (IMSA) is the life insurance industry's leading standards-setting organization. IMSA promotes high ethical standards in the sale and service of life insurance products (as well as annuity and long term care insurance). Many life insurance companies choose to join IMSA, and by doing so, agree to adopt and abide by IMSA's ethical code of conduct.
Not all life insurance companies are IMSA members, and this doesn't necessarily mean they are unethical. However, we believe it is important to recognize the following IMSA member companies that belong to the QuickQuote marketplace:
American General Life Insurance Company (AIG)
Garden State Life Insurance Company
Genworth Life Insurance Company
John Hancock Life Insurance Company
Liberty Life Life Insurance Company
Protective Life Insurance Company
Pruco Life Insurance Company (Prudential)
ReliaStar Life Insurance Company (ING)
Transamerica Financial Life Insurance Company (NY)
Transamerica Occidental Life Insurance Company
United States Life Insurance Company in the City of New York (AIG)
West Coast Life Insurance Company
We've always made it a priority at QuickQuote to provide products from A-rated or better life insurance companies. We believe doing so is in the best interest of our customers and helps us earn your trust and confidence. The above companies help us take that approach to a higher level with their commitment to quality business practices and consumer care.
Not all life insurance companies are IMSA members, and this doesn't necessarily mean they are unethical. However, we believe it is important to recognize the following IMSA member companies that belong to the QuickQuote marketplace:
American General Life Insurance Company (AIG)
Garden State Life Insurance Company
Genworth Life Insurance Company
John Hancock Life Insurance Company
Liberty Life Life Insurance Company
Protective Life Insurance Company
Pruco Life Insurance Company (Prudential)
ReliaStar Life Insurance Company (ING)
Transamerica Financial Life Insurance Company (NY)
Transamerica Occidental Life Insurance Company
United States Life Insurance Company in the City of New York (AIG)
West Coast Life Insurance Company
We've always made it a priority at QuickQuote to provide products from A-rated or better life insurance companies. We believe doing so is in the best interest of our customers and helps us earn your trust and confidence. The above companies help us take that approach to a higher level with their commitment to quality business practices and consumer care.
Insurance Need
Insurance companies require financial justification for the amount of coverage an applicant requests. Justification can come in many forms including, but not limited to, annual income, liabilities, net worth, potential estate taxes and business continuation needs. This is called establishing the insurance need and is done to prevent an over-insurance situation and protect the insurance company from fraudulent activities.
The most commonly used figure is the applicant's annual income. All companies have income multiple guidelines they use to evaluate the insurance need. If the applicant's request falls outside these guidelines, the company will turn to other financial information to help determine the need.
Below is one example of an insurance company's income multiple guidelines.
Age 20-24 25x earned income
Age 25-40 20x earned income
Age 41-50 15x earned income
Age 65+ 5x earned income
The most commonly used figure is the applicant's annual income. All companies have income multiple guidelines they use to evaluate the insurance need. If the applicant's request falls outside these guidelines, the company will turn to other financial information to help determine the need.
Below is one example of an insurance company's income multiple guidelines.
Age 20-24 25x earned income
Age 25-40 20x earned income
Age 41-50 15x earned income
Age 65+ 5x earned income
Life Insurance Underwriting Process
The Underwriting ProcessThe application process is generally referred to as underwriting. For the most part, these two terms are used interchangeably. In its broadest sense, underwriting involves the collection and analysis of applicant information and ultimately results in an underwriting decision and offer made by the insurance company. QuickQuote is unique in the Internet brokerage world in that we stay actively involved throughout the underwriting process. Our Case Management and Customer Service teams work with you and the insurance company to obtain outstanding requirements, facilitate exams, clarify answers, answer questions and much more. We keep you posted on the progress of your application and any important developments. Once an underwriting decision is made, we will contact you with the terms of the offer and work with you to place your policy in force.
Life Insurance In Tough Times
The National Bureau of Economic Research (NEBR) this week made the proclamation that the US economy is officially in the midst of a recession or as the White House calls it, an 'economic downturn.' And according to the NEBR, the current downturn has been in place for over a year now. Heck, the media could have told us that months ago. Oh yeah ... they did. In fact, it seems that's all the media have been reporting on for several months now; that and the election. Some call the current conditions the result of a self-fulfilling prophecy brought on by fear caused by the media. Others believe we have the bursting of the housing bubble to blame, while still others lay the blame on the Bush administration. There is surely no shortage of fingers pointing every which way on this issue.....
Life Insurance and Foreign Travel Update
It has been a while since we last blogged about this somewhat sensitive subject (sensitive to the life insurance industry anyway). In the meantime, the list of states that do not allow the use of foreign travel history or future plans to be used in determining the eligibility of a life insurance applicant has grown to a total of ten. The list now includes the following states:
California
Colorado
Connecticut
Florida
Georgia
Illinois
Massachusetts
New Jersey
Tennessee
Washington
These states do not allow life insurance companies to take adverse action based solely upon the proposed insured's past or future lawful travel. They do, however, allow life insurance companies to ask questions on their applications pertaining to such travel for the purpose of actuarial research. The lone exception is Florida, which does not allow any reference to foreign travel whatsoever on life insurance applications used in that state.
California
Colorado
Connecticut
Florida
Georgia
Illinois
Massachusetts
New Jersey
Tennessee
Washington
These states do not allow life insurance companies to take adverse action based solely upon the proposed insured's past or future lawful travel. They do, however, allow life insurance companies to ask questions on their applications pertaining to such travel for the purpose of actuarial research. The lone exception is Florida, which does not allow any reference to foreign travel whatsoever on life insurance applications used in that state.
Why does the insurance company want to know my financial information for life insurance
An applicant's financial information is among several factors used to determine the amount of insurance the company is able to issue to an applicant. This information is required by ALL insurance companies as they must justify the coverage amounts of all policies they issue.
Income multiples are one method of calculating coverage amounts, which is why annual income is required. Net worth helps insurance companies develop a picture of the family's overall financial position and potential loss in the event of the insured's death.
A common misconception among insurance consumers is they can purchase any amount of life insurance they desire, regardless of financial considerations. This simply is not the case. All insurance companies use financial information to determine allowable coverage amounts. This is done to control fraud and limit excessive insurance situations.
Income multiples are one method of calculating coverage amounts, which is why annual income is required. Net worth helps insurance companies develop a picture of the family's overall financial position and potential loss in the event of the insured's death.
A common misconception among insurance consumers is they can purchase any amount of life insurance they desire, regardless of financial considerations. This simply is not the case. All insurance companies use financial information to determine allowable coverage amounts. This is done to control fraud and limit excessive insurance situations.
How can I speed up the process of receiving my insurance policy
There are many ways you can control how fast a policy is completed, however there a other influences that determine the speed of the application process that you nor QuickQuote™ can control. The following is a list of the most important and beneficial tips to speeding up the process.
Complete the application request form accurately. This will allow you to receive the application quickly.
Complete your application packet promptly and accurately. This is the biggest delay in the process. If you can complete your application completely and return it within days you can cut weeks of the overall time.
For corrections, cross through the incorrect information, write in the correct information and initial next to the correction. Do not use white out.
Respond to us right away with any requests for missing or additional information.
Schedule your paramed exam as soon as you are contacted by Portamedic.
Complete the application request form accurately. This will allow you to receive the application quickly.
Complete your application packet promptly and accurately. This is the biggest delay in the process. If you can complete your application completely and return it within days you can cut weeks of the overall time.
For corrections, cross through the incorrect information, write in the correct information and initial next to the correction. Do not use white out.
Respond to us right away with any requests for missing or additional information.
Schedule your paramed exam as soon as you are contacted by Portamedic.
Euro hits 14-month highs versus dollar
The euro hit fresh 14-month highs against the dollar on Monday on signs that China may increase its holdings of the European currency, dealers said. The shared European unit soared to 1.5064 dollars in Asian trade, hitting its strongest level since August 11, 2008, before falling back. It stood at 1.5035 dollars later in London, up from 1.5007 dollars late Friday in New York. Against the Japanese currency on Monday, the dollar dipped to 91.76 yen from 92.07 yen late on Friday. Traders cited an opinion piece by a Chinese central bank official in China’s Financial News newspaper, arguing that Beijing should boost its holdings of euros and yen, as a factor behind the currency moves. “The Financial News, a paper linked to China’s central bank, printed a report from a Chinese researcher stating that China should increase its holdings of both euros and yen,” said Forex.com analyst Brian Dolan. “This report helped push the euro/dollar through fresh 14-month highs,” he said. “Inevitably, the report from China was eventually denied as a statement was released stating that the views in the report were the ‘fully personal’ views of the researcher.” China has invested a large part of its vast reserves in dollar assets, such as safe low-yielding US Treasury bonds, but Beijing has tried to diversify its investments to improve returns amid the global financial crisis.
European Central Bank (ECB) governing board member Christian Noyer declined to comment on the euro’s strength at a seminar in Singapore, easing market worries that eurozone officials may step up efforts to talk down the currency. The dollar has been weighed down recently by speculation that the United States may be slower than some other major economies to raise interest rates. Investors generally prefer the currencies of countries offering higher yields. “Investors are sceptical whether it will be realistic (for the US Federal Reserve) to end its zero interest rate policy amid current economic conditions,” said Chuo Mitsui Trust Bank strategist Yosuke Hosokawa. “The dollar will continue to be on the weak trend,” he said. The Fed has kept its key rate in a range of zero to 0.25 percent since last December to help the US economy recover from its worst recession in decades. The ECB has meanwhile frozen its key rate at a record low 1.0 percent since May in a bid to encourage lending by eurozone banks as recovery takes hold. In London on Monday, the euro was changing hands at 1.5035 dollars against 1.5007 dollars late on Friday, at 137.95 yen (138.16), 0.9207 pounds (0.9201) and 1.5132 Swiss francs (1.5138). The dollar stood at 91.76 yen (92.07) and 1.0065 Swiss francs (1.0090) The pound was at 1.6329 dollars (1.6310). On the London Bullion Market, the price of gold fell to 1,055.95 dollars an ounce from 1,061.75 dollars an ounce late on Friday
Millers asked to start cane crushing to save growers
Sugar price in Sindh has risen to an unprecedented level and caused rise in the prices of sweets and other food products made of sugar.It will be a good omen if millers adopt a positive policy this time and launch crushing for the good of the growers and the country, Sharmila said. The advisor said that the arrival of the new sugarcane crop would not only reduce sugar prices to a significant level but also bring down the commodity s price. She asked the mill administrations to extend cooperation with the government and adopt people-friendly policies for the progress of the country. The PPP government is also taking steps to provide lucrative incentives to the industrialists including millers, added Ms Farooqi. She expressed concern over the non-payment of dues to growers by the mill administrations and asked them to ensure immediate payment to them so that they could purchase fertilizer and make arrangements for sowing new crops. She said that the Sindh chief minister had earlier directed sugar mills to finalize arrangements to start the sugarcane crushing season from October 15, but no response to his directive was made. It will be good for sugar mills to start crushing voluntarily from November 01, she asserted. The advisor said, the PPP government is taking steps to introduce new varieties of sugarcane besides providing incentives to farmers. Over 2,500 tractors have been provided to growers to encourage them for raising crop production. The landless farmers including women have also been provided land free of cost by the PPP regime. The mills have never followed crushing season starting date in the past as required by the law and they are also seen committing this mistake this time too, which will be not good for them or the people of the country, she said.—PPI
Saturday, September 26, 2009
Guide to Mortgage Payment Protection
Becoming unemployed can cause many problems, not least the fact that there simply may not be any money to pay the bills. Most people will agree that their home is their most important material possession, yet if mortgage payments cannot be made, the security of a home can be taken away. Read our guide to learn everything you need to know about protecting your mortgage payments.
Friday, September 25, 2009
Dollar hits 7-1/2-month low vs yen
NEW YORK: The dollar fell to a 7-1/2-month low beneath the key 90-yen level on Friday after the G20 pledged to continue emergency stimulus spending until a recovery takes hold, suggesting US interest rates would remain very low. The yen also got a boost after an influential former Japan finance official told Dow Jones Newswires that authorities were not likely to try halting yen gains unless the dollar fell below 85 yen. The dollar fared better against sterling, which fell to multi month lows a day after Bank of England Governor Mervyn King said a weak pound would help exports and the UK economy. But the euro edged higher against the greenback, helped by encouraging data showing that US consumer sentiment hit its highest level this month since January 2008. Stocks and the euro have focused on the improvement we ve seen in consumer confidence, said Kathy Lien, director of FX research at GFT Forex in New York. Stocks and currencies such as the euro are seen as reliant on strong global growth and tend to rally on good economic news, while the dollar often gets a bid when data is weak. The dollar was last down 1.6 per cent at 89.85 yen after hitting 89.78 yen earlier, the lowest since February. The euro also fell 0.9 per cent to 132.49 yen. The euro rose 0.3 per cent to $1.4701, boosted after encouraging US consumer sentiment data and a separate report showing new homes sales edged up in the United States in August. The pound fell to $1.5917, its lowest since early June, before edging back to $1.5986, down 0.4 per cent. It sank against the yen, falling as low as around 144.30 yen, its weakest since mid-May.
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