After you are approved for a life insurance policy, you have a big decision: naming a beneficiary. It’s not as simple as it appears to be. Consider these types of beneficiaries as told by New York Life Insurance Co.

* First, second and third beneficiaries: It’s wise to name two or three others in addition to the first beneficiary. If one passes on before you do, the second, then the third beneficiary gets the benefit without any further action on your part.

* Irrevocable beneficiary. Irrevocable designations are often used in divorce settlements. They forbid anyone but the designated beneficiary to surrender the policy, take out loans on it, or assign new beneficiaries.

* Per stirpes: This is a way of dividing the benefit among family branches. If the beneficiary dies, for example, the benefit goes to his or her children.

* Collateral assignments: When the insurance is used to secure a loan, the assignment gives the creditor the right to claim cash value, dividends, and death benefit should the loan go into default. Any excess benefit is paid to the surviving beneficiaries.

* Beneficiary for value. This designation guarantees that the death benefit will be used to pay for services rendered by a specific business or creditor, such as a funeral home. The benefit covers the exact cost of the service, or services, provided. Once this settlement is made, the remaining benefit will be paid to the surviving beneficiaries.

Beneficiary designations are important during the claims process. They provide specific legal instructions that can help to make sure the policy owner’s final wishes are fulfilled as quickly and as easily as possible.

For all the attention credit scores get, they are generally misunderstood by consumers.
First, they are not a factor in everyday life. The credit score matters only when you take out a loan, such as for a car, a house, education or new credit card.

Here’s how a score is calculated:
35 percent: Your financial history, whether you paid on time and if not, how late you were and how often.
30 percent: How much you owe on each account and how much of your  credit limit you have used.
15 percent: Your credit history, how long you had each account.
10 percent: Types of credit, such as home loans, car loans, and credit cards. Secured loans are best.
10 percent: New credit, how many new accounts or credit checks you have had by present or prospective lenders. A credit check knocks about 15 points off your credit score.
Some points to remember
* A credit score doesn’t reflect your whole financial picture. You might have a lot of savings, assets and investments, but they don’t count. How much you owe and whether you pay on time is all that counts on your credit score.
* It doesn’t matter if you carry a balance on a credit card. The total you owe and whether you pay on time are what count.
* The FICO score is the most widely used score, but it isn’t necessarily the one you might see advertised. There are three credit bureaus: Equifax, Experian and TransUnion, all of which sell their own scores.
* A history of late payments is wiped off your credit score after seven years.
* Good credit lasts at least 10 years, even if the loans are paid off.
* You will probably never have a score of 800 or more, but the high 700s is the best credit area to be in.
* If your score is in the 600s or low 700s, you should try to raise it by paying on time and reducing the amount of debt you have in relation to the amount of credit available to you.

Many options are available

Annuities offer several benefits over traditional retirement savings. The interest rate, for example, is usually higher than with many other investments.

Some annuities pay as much as 9 percent in the first year. Others offer more than 5 percent the first year. The interest grows tax-deferred until you choose to withdraw the money.

A traditional annuity guarantees that you will have an income stream for life. People often put a portion of their life savings into this type of product to ensure that they won’t run out of money, no matter how long they live.

There are many types of annuities. Some are created for a fixed period of time, such as for 10 years. There is no limit to the amount you can put into an annuity. IRA and 401(K) limits do not apply, and there is no minimum required distribution at age 70 1/2, according to the Internal Revenue Service.

Some annuities combine life insurance and an income stream. In the case of a 10-year annuity, for example, one-tenth of the annuity amount can be withdrawn each year. In the event of your death, generally the total investment plus all acquired interest is paid to your beneficiaries if no withdrawals have been made. Or the balance remaining after your withdrawals, plus interest, will be paid.

With that same annuity, any amount of money could be withdrawn if you have an unexpected expense, such as a loved one’s funeral, but no reason for the withdrawal needs to be given.

In the case of the 10-year time frame, if the entire annuity is surrendered up to five years into the contract, the investment will not be worth much more than when you made it. If you wait until 10 years, you will see a large profit.

Annuities that mature in a certain time frame, provide a good way to have secure savings, life insurance, and money to pass on to your children all at the same time.

Many annuities pay interest according to a fixed agreement, but some are based on the stock market values.

If you never thought about sharing the road with a deer, you could be in for a very unpleasant surprise.

The Insurance Institute for Highway Safety reports that deer populations are growing. Because their natural habitat is being displaced in many areas by urban housing, they can often be seen in what you may think is an unlikely area.

To avoid costly and possibly fatal deer collisions, watch for them whenever you approach a wooded area, even if it’s close to town or even in a town.

Posted deer-crossing signs should always signal you to reduce your speed.

Remember that when you see one deer, another deer or a group could be close behind. If one runs safely in front of your car, be prepared for another.

At night, drive with high-beam headlights whenever possible to illuminate the side of the road. Watch for light reflection in a deer’s eyes. Be prepared to stop when you see it.

If a collision is inevitable, brake but don’t swerve to avoid it. Your risk of injury is much greater if you hit oncoming traffic or crash into a tree.

Walk-talk danger

Walking along the street while talking on a cellphone is dangerous and not just because you bump into people. One study by Ohio State University showed that 48 percent of cellphone users crossed the street in front of approaching cars.

The study showed that cellphone talkers of all ages were unable to be aware of their surroundings at the same time.

In order to get started, a good rumor has to have two things going for it. It has to be on an important subject, and it has to be vague so it can be changed around to make it more interesting.
Gordon W. Allport and Leo Postman, authors of The Psychology of Rumor, classify four main types:

1. The wedge driver. These are divisive rumors which set people at odds with one another or against the organization or the government.

2. The pipe dreams. Rumors that falsely report wonderful things are pipe dreams. When you hear stories about cars powered by water, that the government will give everyone a lot of money, that vacation time will double, forget it. It’s a pipe dream.

3. The bogeys. These are fearful rumors. Someone “heard” there is a big depression coming, that the company will be sold to a competitor, that your job is going to be eliminated. These rumors are bogeys.

4. The homestretchers. Anticipatory rumors predict that soon something surprising is going to happen. They say goals will be reached far ahead of time, profits will be huge or losses will be huge, and itís all going to be announced very soon.

5. The mysterious source. Other rumors ruin reputations by calling upon the word of mysterious “good friends” who know a spicy (and false) or sordid story “for a fact.”

Watch out for the symptoms of gossip. Don’t listen to it. And don’t repeat it.