Life and Health

Staying active can help you live longer. Plus, hobbies are fun. The hobbies you choose could impact your life insurance rates, though, especially if you enjoy certain high-risk activities that include high fatality rates and thus pose a greater risk to insurance companies.

1. Hang Gliding

In 2011, pilot error and equipment malfunction contributed to at least seven hang gliding fatalities. Additionally, safety experts report that one in 116,000 of all hang gliding flights could result in accidents.

2. Civilian Pilot

Congratulations on earning your pilot’s license. Unfortunately, hundreds of non-commercial aviation accidents occur annually, and 378 pilots died in 2010 from pilot error, equipment malfunction and bad weather.

3. Mountain Climbing

Grab your gear to scale high peaks, but expect to pay more for life insurance, too. The American Alpine Club reports that an average of 25 mountain climbers die each year from equipment malfunctions, bad weather, falling rocks or faulty equipment, and many more suffer from injuries while enjoying this risky sport.

4. Sky Diving

Three million people sky dive each year, according to the U.S. Parachuting Association. While 21 divers or one in 142,000 jumpers died in 2010 from equipment malfunctions, midair mistakes and loss of consciousness also cause accidents during this dangerous sport.

5. Recreational Boating

Alcohol, bad weather conditions or captain error contributed to the 736 recreational boating fatalities in 2009. That same year, 4,370 accidents caused property damage of roughly $36 million, according to the Coast Guard.

6. Motorcycle Riding

They’re fun to ride, but intoxicated drivers, excessive speed and failure to wear a helmet contributed to 4,462 motorcycle deaths in 2009.

Hobbies help you blow off steam and have fun, but your high-risk hobbies could cause your life insurance premiums to rise. Discuss policy specifics with your insurance agent. Remember to also ask about additional ways you can enjoy your favorite sports while maintaining affordable life insurance coverage. Then get ready to have fun and stay safe!

Does your mom nurture, care and love you through thick and thin? Show her how much you care by giving her a life insurance policy for Mother’s Day.

Life insurance is not the first gift that comes to mind when you want to honor your mm, but it’s a practical gift that won’t die like a floral bouquet, and it gives her something she can really use, unlike yet another nightgown. Life insurance also gives your precious mom peace of mind since the policy funds can be used to pay for her funeral expenses and any outstanding bills. Consider this affordable investment as you decide how to honor your mom and repay her a little bit for all the investments she made in you over the years.

How Much Will it Cost?

The cost of life insurance policies varies from person to person. You can’t put a price on your mom’s peace of mind, but do consider several factors that typically affect the cost of life insurance. These factors include:

Health: A healthy adult will pay lower life insurance premiums. The same principle applies to non-smokers. Some companies require a medical exam to determine the insured health conditions, but others do not.

Gender: Policies for women typically cost less than policies for men. That’s because women tend to outlive men by five or more years, which makes them less of a risk and thus cheaper to insure.

Coverage Needs: Higher coverage amounts mean higher premiums. So if your mom is the primary income earner in her household, you’ll want to purchase a life insurance policy with higher coverage.

Age: Older premium holders will often pay more for their life insurance policy.

Risk: People who work or engage in a high-risk or dangerous occupation or hobby will pay more for life insurance.

Check with your insurance agent to discuss the life insurance policy options for your mom. Then choose a policy that’s right for her needs. While it’s an unconventional Mother’s Day gift, it’s one way you can honor your mother today and for years to come.

As you file your 2014 tax return this month, consider your health insurance premiums. They’re an essential part of your budget, and it makes sense to deduct them if you can.

Employer-Provided Premiums

You can’t deduct health insurance premiums taken from your paycheck before taxes were deducted. However, you can deduct premiums you paid with after-tax money. See Schedule A of Form 1040 for details.

Medicare Premiums

Medicare premiums are considered deductible medical expenses in certain cases. Parts B, C and D premiums are deductible on Schedule A of your tax return. Part A is only deductible on Schedule A if you paid for it yourself and did not get it through Social Security.

Self-Employed Health Insurance Premiums

The health insurance premiums you pay as a sole proprietor, partnership partner or shareholder in a Sub S Corporation are deductible if the insurance is for your benefit, purchased in your name and under your business. Use the Self-Employed Health Insurance Deduction Worksheet to calculate your deduction, and list this expense on page 1 of Form 1040 as an adjustment to income. Premiums for your spouse and dependents and dental, vision and prescription coverage may also be deductible.

Utilize Schedule A

Even if you can’t deduct your health insurance premiums on your tax return, you might be able to utilize Schedule A. It itemizes your medical expenses which you can then deduct if they total more than 10 percent of your adjusted gross income. For example, your AGI is $50,000. Ten percent would be $5,000. If your itemized medical expenses total $7,000,  you can deduct $2,000. You won’t be able to deduct anything if your medical expenses total less than $5,000.

See IRS Publication 502 for a complete list of medical expenses you can deduct on Schedule A. A short list includes doctor visit copays, prescription medications, medically necessary equipment, dental treatments and vision exams.

Because deducting health insurance premiums can be complicated, see your human resources manager or accountant for more details. Then consider using these tips to prepare for tax season next year.

Caring for a child with special needs is expensive. From doctor visits to therapy appointments, you rely on your health insurance to cover life-saving and life changing treatments. What do you do, though, if the insurance company denies a claim?

Call the Insurance Company

Maybe someone accidentally typed in a wrong code or the doctor’s office didn’t submit the claim in a timely manner. A simple phone call to the insurance company could set the record straight.

Follow the Appeals Procedure

Your insurance company has an appeals procedure that might help you. Be sure to document every phone call including the names and phone numbers of the customer service reps to whom you speak, the calls’ dates and times and what you discuss.

Submit Written Treatment Notes and Invoices

Written words hold more weight than verbal words. Ask the doctor or therapist to focus on how the procedure, treatment or equipment is medically necessary.

Document Your Child’s Needs

You don’t want to spend time educating the insurance company, but that’s sometimes exactly what needs to happen, especially if your child has a rare disability. Track your child’s daily activities, needs and limitations as you detail your child’s specific condition and influence the insurance company to pay the claim.

Consider Paying Out-of-Pocket

Rather than fight a denied claim that’s for a service your child needs, pay for it yourself. You won’t want to take this measure, though, if an ongoing service continues to get denied. In that case, contact a lawyer.

Contact a Lawyer

When all else fails and your child needs ongoing services or the denial of a claim threatens your child’s life, contact a lawyer. He or she can take action that protects your child’s health and quality of life. Choose a lawyer with specialized knowledge of special needs to maximize your chances of winning the case.

Your precious child with special needs can receive the medical treatment, therapy, medication and equipment he or she needs. When claims are denied, follow these steps. Ask your insurance agent for additional tips, too, as you fight for your child.

Planning for the future is a smart financial move. As you prepare for retirement, remember to make funeral preparations. Since the average funeral costs over $7,000, you’ll want to save enough cash or pre-pay this inevitable expense. You could also purchase life insurance that covers your funeral costs.

Term Life Policies

Is a term life insurance policy part of your employee benefits or did you purchase a policy on your own? It only covers you for a set number of years. If you die before the term ends, the policy could be used to pay for your funeral. However, that’s not the case if the policy expires before you die. Relying on a term life policy to pay for your funeral is a risky move.

Whole Life Policies

A whole life insurance policy remains in effect for the duration of your life. As long as you pay the premiums, this type of life insurance doesn’t expire, end or mature until your death. Your beneficiary can use a whole life insurance policy to pay for your funeral. Also, if you purchase a whole life policy as a young person, it grows in cash value. Use that cash to pre-pay for your funeral today rather than wait until inflation raises the costs.

Talk to Your Beneficiary

Since the life insurance beneficiary decides how to spend the policy’s proceeds, talk with him or her before your death. Discuss your funeral wishes to ensure your life insurance funds are used for the funeral you want.

Pre-Plan Your Funeral

Despite your best intentions, your life insurance policy could be held in limbo for weeks, months or years. Consider pre-planning your funeral. Figure out if you can assign a portion of your life insurance policy to the funeral home to cover final expenses. Then discuss specific details about the service and interment and lock in today’s rates as you save money and relieve the burden on your survivors.

Life insurance certainly can pay for your funeral expenses. Just make sure you purchase an adequate policy today before you need it.

Most people agree that young parents need life insurance as they provide financially for their family. What about older adults and grandparents? In certain cases, life insurance is a good investment for you at any age.

Do you Have Dependents?

Did you wait until your 40s to have kids? Are you raising grandchildren? Do you care for aging parents? Your dependents need your income, and that fact makes life insurance a wise investment. The policy will provide your dependents with cash to pay bills, cover living expenses and receive the care they need.

Can you Afford a Funeral?

The National Funeral Directors Association reports that the average funeral cost $7,045 in 2012. You might have enough money saved to cover that cost, but consider purchasing life insurance. It pays for your funeral expenses, leaving your assets to provide for your survivors.

How Many Assets do you Own?

Your home, vehicle and investments count as assets. If you own them outright and they add up to a significant value, your estate executor can use those assets to cover taxes, medical bills, funeral costs and other expenses you may incur at the end of your life. However, if you don’t own adequate assets, life insurance covers the gap and ensures your final expenses are paid, which lessens the financial burden for your survivors.

Can you Afford to Pay Higher Premiums?

Life insurance premium costs typically depend on the amount of coverage, type of policy and age or health of the insured. That means you will probably pay more for a policy if you’re over 50. Numerous options are available for every budget, though, so talk to your insurance agent and choose a policy with affordable premiums.

Life insurance policies do cover dependent care and funeral costs, but they’re also useful for other purposes. They can pay for your grandchild’s education, support a charity or help your children retire early. Consider these factors as you talk with an insurance agent about purchasing life insurance as an older adult.

*Height and weight

*Blood pressure

*Pulse

*Urine

*Blood

*ECG/EKG (if needed)

*24 hours before: Avoid strenuous exercise.

*12 hours before: Avoid alcohol, high-cholesterol foods including eggs, fried foods and red meat, decongestants and pain medication like aspirin, ibuprofen or acetaminophen.

*8 hours before: Avoid caffeinated beverages, and fast from all foods if necessary.

*1 hour before: Begin drinking plenty of water for the urine sample.

1. Cover funeral expenses. The average funeral cost $7,045 in 2012, according to the National Funeral Directors Association. Reduce your survivors’ financial strain with life insurance funds that cover this necessary expense.

2. Replace income. Because your survivors depend on your income for basic living expenses, they’re at risk of losing their home, vehicle and other assets after your death. Your life insurance policy can provide your survivors with financial stability.

3. Repay debt. Student loans, credit cards, vehicles, mortgages and other debts can burden  your survivors. Purchase life insurance, and the policy can repay debt and reduce the financial strain your survivors feel.

4. Pay estate taxes. After your death, your survivors will owe estate taxes on any assets you own. Instead of affecting their budget, they can use your life insurance funds to pay this expense.

5. Save for the future. Fund your children’s college education, help your partner start a business or support your parents’ retirement. Your life insurance policy can fund these and other future plans.