Reverse Mortgage Proceeds Likely to Decrease October 1

/PRNewswire/ -- Seniors should be informed that the budget proposals working their way through both the House and Senate, as currently drafted, bring a 150 percent increase in annual FHA (Federal Housing Authority) insurance premiums, as well as reductions in available proceeds on FHA-insured HECM (Home Equity Conversion Mortgage) reverse mortgage loans.

"Now is a good time for seniors to take advantage of low rates on reverse mortgages and get the maximum return on the product before the new fiscal year starts this fall," said Jeff Lewis, Chairman of Generation Mortgage Company.

According to Lewis, starting October 1st, both bills will change the HECM value proposition if approved in their current form. "With the upcoming Senate vote, seniors have limited time to take advantage of the current pricing on reverse mortgages," commented Lewis. "Reverse mortgages provide financial independence to thousands of seniors struggling to sustain their retirement. A majority of our borrowers use reverse mortgages to pay off existing traditional mortgages, and free up much-needed income."

In early July, the Transportation Housing and Urban Development, and Related Agencies Appropriations Subcommittee met and provided $150 million in funding for the Federal Housing Administration's reverse mortgage program. The bill passed the full House Appropriations Committee late last month and went to the House of Representatives two weeks ago. In the house, the appropriation was lowered to $140 million, and later passed by a vote of 251 to 167. It is not yet clear when the bill is headed to the Senate.

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Survey Finds Economic Downturn Has Had a Major Negative Impact on Americans' Ability to Pay for Long-Term Care Services

/PRNewswire/ -- With significant losses to their savings and investments, and economists warning of a prolonged recession, many Americans are feeling uncertain about their retirement security and their ability to pay for long-term care services. According to a new survey by the nonprofit LIFE Foundation, 64 percent of Americans age 45 and older say that the recent economic downturn has had a major negative impact on their ability to pay for long-term care services should they become unable to take care of themselves for an extended period of time. Considering that 70 percent of Americans who reach age 65 will need such care at some point in their lives, according to the U.S. Department of Health and Human Services, these findings show how financially vulnerable many people are without a long-term care plan.

Released to coincide with Long-Term Care Awareness Month in November, the LIFE survey found that most adults recognize the reality of needing long-term care services:

-- Sixty-one percent say they are concerned that they will be responsible
in the future for providing either financial assistance or personal
care to a loved one who needs long-term care services.
-- More than half of all adults (58%) think it is likely they will need
long-term care services at some point in their lives.


While adult Americans recognize the risk, few of them, according to Deb Newman, CLU, ChFC, LTCP, president of Newman Long Term Care and spokesperson for LIFE, own long-term care insurance to guard against this risk.

"On average, the cost for long-term care services is roughly $70,000 a year. In today's tough economic environment, most people have far less money available to pay for these services, and it's likely they will need them," says Newman. "Long-term care insurance guarantees that you will always have the financial means to afford the kind of care you'll need and prefer."

Since shopping for a long-term care insurance policy can be complicated, LIFE recommends people meet with a qualified insurance professional who can walk through their options and help them find a plan that meets their specific needs and budget.

LIFE reviews five things people may not know about long-term care insurance and encourages all Americans to make November, Long-Term Care Awareness Month, the time to assess their needs.

You can Share the Care -- If you're reluctant to purchase a policy for yourself, consider one that would cover you and your spouse if either of you ever needed it. Many long-term care policies offer the option of a shared benefits rider, which enables you and your significant other to draw from one policy up to a specified benefit limit.

State Partnership Programs Can Mean Big Savings -- Many states have created Long-Term Care Insurance Partnership Programs to provide incentives to encourage residents to purchase policies. When you purchase a policy through these programs, your state guarantees that if you use up the policy's benefits, you'll be able to qualify for Medicaid without first having to deplete all of your assets. Since these programs vary from state to state, check with your state insurance department to learn more about the program in your area.

Home Care is an Option -- One of the biggest misconceptions people have is that long-term care insurance will only cover care provided in a nursing home or assisted living facility. The reality is that today, most policies offer the buyer the option to receive care in a range of different settings. In fact, the option to receive care at home is now included in virtually all policies sold today. Recently, Unum, a leading insurer in the group long-term care market, reported that nearly 70 percent of its customers use their long term care benefits for care that occurs in the home. So make sure to choose a policy that will pay for care where you want it delivered.

You May Want Coverage before Saying "I Do" -- With more people getting married or remarrying at older ages, including long-term care insurance in prenuptial agreements or alimony packages is becoming more common. If you and your spouse-to-be both purchase a policy, you can guarantee that each of your assets and lifestyles will be protected should either of you need care in the future.

For Most, It's Not Too Late to Purchase Coverage -- Experts recommend that people should begin thinking about their long-term care insurance options in their 40s, when they're young and healthy and have the best chance of locking in a preferred premium rate for coverage. However, if you are over the age of 60, it's not too late. Today, many insurance companies are selling policies to people who are in good health into their 80s.

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Synovus Invests in FDIC Liquidity Guarantee Program

(BUSINESS WIRE)--Synovus (NYSE: SNV), the Columbus, Georgia-based financial services company, will participate in the Federal Deposit Insurance Corporation’s (FDIC) Temporary Liquidity Guarantee Program beyond the initial 30-day program offered by all banks in conjunction with the FDIC. This FDIC program allows Synovus to offer 100% deposit protection for non-interest bearing deposit transaction accounts regardless of dollar amount at FDIC-insured institutions. Non-interest bearing deposit transaction accounts are usually payment-processing accounts, such as payroll accounts used by businesses, which frequently exceed the current maximum limit of $250,000. The Liquidity Guarantee Program can be voluntarily offered by banks to customers through the end of 2009. There is no cost to customers to receive the additional FDIC insurance.

“The benefit for our customers is that there is no limit on FDIC insurance coverage for their deposits in these types of accounts at any Synovus bank,” said Richard Anthony, Chairman and CEO of Synovus. “We understand the desire customers have during this difficult economic climate to be guaranteed they will always have access to their money.”

Additionally, Synovus’ Shared CD and Money Market accounts offer customers the unique opportunity to access up to $8 million in FDIC insurance by spreading deposits across its 32 separately-chartered banks.

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GMAC Insurance Reduces Rates in Georgia

PRNewswire/ -- GMAC Insurance today announced it is reducing its auto insurance rates in Georgia, effective immediately. Many drivers in the Peach State can expect to save an average of around seven percent when purchasing GMAC Insurance coverage from one of more than 400 Georgia-based independent agencies.

With fuel prices surging, these rate decreases will help customers manage their transportation costs. What's more, Georgia customers can potentially achieve even greater savings through discounts for paying a policy in full at the time of purchase rather than through monthly installments, in addition to GMAC Insurance's exclusive GM Retiree and GM Dealership employee discounts.

"We are committed to providing new and existing customers with outstanding service at affordable prices," said Scott Murphy, vice president of product and pricing, GMAC Insurance. "In addition to the new lower prices, we'll continue to offer the same benefits, such as our outstanding SmartServices, including SmartValet, SmartInspect and the SmartParts Promise, and our 24/7 claim reporting service and emergency expense allowance."

The GMAC Insurance rate reduction is a statewide average that will affect individual customers differently. Overall premium changes for individual motorists will vary depending on factors such as the coverages they carry, the discounts for which they qualify, where they live, the kind of vehicle insured, who drives it and how much it is driven.

BB&T Relocates Insurance Office to New Facility in Fayetteville

BB&T has relocated an insurance center to 350 Brandywine Blvd., Suite 200, Fayetteville. The office was previously located at 8455 Hwy. 85, Suite 100, Riverdale.

BB&T Reese Insurance, which is part of BB&T Insurance Services, is a full-service insurance center has been offering auto, home, life and business insurance to the community and regionally since 1974.

“We are excited to bring our products and services – and more importantly – the BB&T way of doing business to Fayetteville,” said Agency Manager Gary Laggis. “Our approach is to provide highly attentive, customized service for each client and their unique needs”

BB&T Reese Insurance will hold a ribbon-cutting for the new location on May 29.

BB&T Insurance Services is a wholly owned subsidiary of Branch Banking and Trust Company Founded in 1922. It operates 85 agencies in North Carolina, Virginia, Georgia, South Carolina, Maryland, West Virginia, Tennessee, Florida and Kentucky.

With $136.4 billion in assets, Winston-Salem, N.C.-based BB&T Corporation (NYSE: BBT) is the nation’s 14th largest financial holding company. It operates nearly 1,500 financial centers in 11 states and Washington, D.C. More information about the company is available at BBT.com.

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