Issue link: https://www.epageflip.net/i/666544
AcoupleofweeksagoI received a message from one of my readers that sent a chill down my spine. DEAR MARY: I recently switched my life insur- ance policy from term to whole life. Now I am not sure I made the right choice. Which one is bet- ter? I am in my early 60s. — Aline With so little to go on, I had to read between the lines and I came up with a few thoughts. This reader had a term life insurance policy, and someone — I am going to assume it was an insurance salesman — advised her to switch. I do not believe this was her idea. I am convinced that she he had no idea what she was doing. Whoever advised her did not edu- cate her so she could make her own informed deci- sion, one that she would not doubt as soon as she'd written the check. I responded privately to the reader, and have not heard back. In the mean- time, I have compiled this list of things that every- one, regardless of age, needs to know about life insurance. Number 1: All policies fall into one of two cate- gories. Term insurance is pure life insurance cover- age. If you die with this policy in place, it pays out the face value to your ben- eficiary. Whole life policies (there are dozens of varia- tions) combine an invest- ment product with pure term insurance, and this combination builds cash value. Number 2: Insurance is sold, not bought. Insur- ance agents sell the vast majority of life insurance policies because the life insurance industry has a vested interest in push- ing high-commission (and high-profit) whole life pol- icies. There are no insur- ance stores to shop at. In my opinion, insurance agents walk a thin line be- cause they wear two hats: teacher and salesperson. This creates a conflict of interest. The way to beat this is to never actually purchase insurance from the same person who ad- vises you on the type of in- surance you should have. Educate yourself first, and then contact an insurance company. Number 3: Whole life insurance is expensive. Policies that include an in- vestment component cost much more than term pol- icies. As a result, many people who buy a whole life policy often can't af- ford an adequate face value, leaving them under- insured. Number 4: Whole life policies are built on as- sumptions. The returns quoted by the agent are guesses, not reality. Most companies guess on the high side to attract more buyers. Number 5: Keep your in- vestments and insurance completely separate. There are better places to invest that don't come with the very high commissions of whole life policies. Number 6: Buy enough term coverage to fulfill your needs. Life insurance is no place to skimp, espe- cially with rates at historic lows. A good rule of thumb is a policy that's 8 to 10 times the gross annual income of the primary breadwinner in the family, and 5 to 8 times the sec- ondary earner's gross in- come. Number 7: Match the terms of the policy to your needs. You want the policy to last as long as it takes for your dependents to leave the nest or for your retirement income to kick in. Number 8: Buy when you're healthy. Older peo- ple and those not in the best of health pay much higher rates for life in- surance. Buy as early as you can, but don't buy un- til you have dependents — these are people who would become financially destitute without the sup- port from your income. Number 9: Tell the truth. There's no sense in exaggerating facts on your application to get a lower rate. Insurance compa- nies always investigate be- fore paying. You will not get away with fudging the facts. Number 10: Shop on- line. Buying life insur- ance has never been eas- ier, thanks to the Internet. Once you know the type of insurance you want and the amount you need, you can get tons of quotes on- line and avoid pushy sales- people. Just know exactly what you want and how much you need before you ask for quotes. Then stick to your guns. Youcanemail Mary at mary@ everydaycheapskate.com. EVERYDAYCHEAPSKATE Lifeinsurance:thingstoknow Mary Hunt PHOTOCOURTESYOFKIMROWE Theannualroundupsofcattleandtheprocessofbrandingcalvescontinuedover the weekend at Bradshaw Cattle Company on the west side of Red Bluff. Here, cowboys rope a calf in preparation for giving it shots and branding. LIVESTOCK CALVES BRANDED Five students from the Shasta College's Horticul- ture Department competed in the National Collegiate Landscape Competition held at Mississippi State University in Starkville Mississippi on March 16-19. Shasta College's team did very well with two second place wins in two different events. The three person team of Ben Lemos, Nathan Frisch and John Rocha took sec- ond place in the Landscape Plant Installation event out of 60 teams competing. In the Plant Problem Diagnosis contest Micah Chavez took home second place only trailing behind a Colorado State Univer- sity student by three and a half points. This is an International competition for two- and four-year college students from the United States and Canada. There were 63 colleges and universities attend- ing with more than 680 students competing in 28 different horticulture and landscape industry related events. Shasta College has been attending this event for more than 25 years. Stu- dents work all year to get ready for this contest earn- ing the money to travel to the contest by selling plants at colleges fall and spring plant sales and working with team members to pre- pare for each of their con- tests outside of their regu- lar class load. For more information about the contest, visit https://www.landscapep- rofessionals.org/collegiate- landscape-competition/col- legiate-landscape-competi- tion/press.aspx. SHASTA COLLEGE Ho rt ic ul tu re d ep art me nt places in national competition The Ronald S. Knight Memorial Scholarship Committee is pleased to announce the availabil- ity of four scholarships in the amount of $2,000 per scholarship for the 2016 academic year. The successful appli- cants must meet the fol- lowing criteria: Gradua- tion from a high school within the boundaries of the Tehama County Cat- tlemen's Association; full time (12 units or more) enrollment in an accred- ited junior college, four- year college or university beginning fall 2016; pursu- ing a major in an agricul- tural or ag-related course of study with the intention of earning a bachelor's or advanced degree. Selection will be based upon demonstration of scholastic achievement, community activities and work experience. The com- mittee is looking for well rounded applicants. To apply, send the se- lection committee a letter with the following infor- mation: When and where you graduated or expect to graduate from high school; your most current high school transcripts, and for college students high school and current college transcripts; where you plan to enroll; pro- posed major and career plans; a brief resume and cover letter about yourself and how this scholarship will help you meet your career goals; information about how to contact you and a recent photo for pub- licity. There is no formal ap- plication form, however, all seven areas must be in- cluded for the applicant to be considered. Applicants are encouraged to include up to three letters of rec- ommendation. It is the desire of the committee to find a recip- ient who shows a combina- tion of great promise and a desire to work in Northern California following grad- uation. Selection of the schol- arship recipient will be completed by early May. All applicants will be in- formed of the committee decision. Award recogni- tion for high school se- niors will be given at the high school awards cer- emony in June, and at the Cattlemen's Annual Winter Dinner in Janu- ary. The first $1,000 will be awarded after the scholar provides the committee adequate proof of enroll- ment with a minimum of 12 units of study leading to an agricultural degree. The award of the second $1,000 will occur after the individual provides the committee adequate proof of completing the first semester with a 2.5 minimum grade point av- erage. The selection commit- tee is comprised of five members including the President of the Tehama County Cattlemen's As- sociation, the Director of Cooperative Extension and three members of the Te- hama County Cattlemen's Association. Applications must be postmarked no later than 5 p.m. Friday, April 22. Please mail completed application to: Ronald S. Knight Scholarship, c/o Richard Buchner, 1754 Walnut St., Red Bluff, 96080. The community lost a leader with the sud- den death of Ron Knight on May 19, 2000. Ron started his UC Coopera- tive Extension career in Solano County in 1957. He moved to Tulare County as 4-H Youth Advisor in 1964 and was appointed county Director and Live- stock Advisor for Tehama County in 1972. Ron held that position until retire- ment in 1991. His 34 year career resulted in signifi- cant achievements for live- stock producers. Following retirement from the University of California, Ron was ac- tive in livestock and com- munity organizations. Ron was treasurer for the Tehama County Cat- tlemen's Association, and treasurer for the Tehama District Junior Livestock Committee. He was a Te- hama County Farm Bu- reau Director and a mem- ber of the Red bluff Bull and Gelding Sale Com- mittee. In 1984, the Tehama County Cattlemen's As- sociation recognized Ron for his livestock work with their Man of the Year award. The Tehama District Fair- ground 4-H building was recently renamed the Ron Knight Youth Ag Center. In memory of Ron Knight, the Te- hama County Cattle- men's Association initi- ated a scholarships in the amount of $2,000. SCHOLARSHIP Ron Knight Scholarship seeking applicants PLEASE RECYCLE THIS NEWSPAPER. LIFESTYLES » redbluffdailynews.com Thursday, April 14, 2016 » MORE ATFACEBOOK.COM/RBDAILYNEWS AND TWITTER.COM/REDBLUFFNEWS A4