Life and Health

This year’s open enrollment season for selecting workplace benefits comes just before major health care reforms under the Affordable Care Act (ACA) take effect. Because it’s never been more important to choose a health plan for you and your family, we offer these guidelines for enrollment:

• You’ll need to have health insurance or face a tax penalty. If your employer won’t offer coverage or the plan doesn’t meet minimum standards, you must buy coverage from an insurance company or through statewide insurance exchanges, which opened for enrollment on October 1 (in some cases, you might be eligible for a premium tax credit.).

• Compare benefits and insurance plan networks. Check out provider networks to make sure that they include your doctors and preferred hospital system, especially if you’re being treated for a serious or chronic condition. You’ll pay a lot more to see providers outside the network with a preferred provider organization (PPO) and will probably have to pay the full cost of services for out-of-network providers with a health maintenance organization (HMO).

• Remember that your employer does not have to offer coverage in 2014, and will not cover your spouse – because the ACA limits the definition of “dependents” to children.

• Pick the plan with the best value. Your costs include deductibles and co-insurance (the percentage the plan pays after you satisfy the deductible); copayments for doctor visits, urgent care and emergency room treatment; and your portion of the premium. Run scenarios to see how much each health plan would cost, and choose the one that meets your unique needs.

Our agency’s health insurance professionals stand ready to offer you their advice – just give us a call.

With people living longer and longer, these days, there’s a growing need for Long-Term Care (LTC) insurance. To help you choose the policy that’s best for you – and your pocketbook – industry experts offer these guidelines:

1. Buy now. The older you are, the more you’ll pay for LTC because you’re more likely to develop health problems as you age. What’s more, any medical condition might lead an insurance company to reject covering you.
2. Don’t count on Health insurance. For example, Medicare generally doesn’t cover long-term care, and Medicaid will pay for a nursing home stay only after you’ve gone through most of your assets.
3. Balance the length of the policy against the size of the daily benefit. With a “short and fat” policy, which provides a relatively large payout for a shorter period, you’ll enjoy higher payments at the risk of having your benefits run out. On the other hand, the “long and thin” option extends the coverage period while offering a smaller benefit.
4. Allow for cost inflation. With a Guaranteed Purchase Option (GPO) or future purchase option (FPO), you can increase your coverage every two to three years to reflect skyrocketing health care costs – without taking a physical or paying a higher premium because of new medical conditions or poorer health. You might also be able to buy policy “riders” that factor in simple and compound inflation.

Purchasing Long-Term Care insurance can pose a daunting challenge. Our agents stand ready to share their experience and expertise with you at any time.

Failing to tell the “whole truth” on your Life insurance application can cost your beneficiaries dearly.

The healthier you are, the less you’ll pay for Life coverage (especially for a Term policy). Applicants who smoke like a chimney or drink like a fish are statistically more likely to die young – which means that the insurance company will charge them a higher premium to cover the greater risk of death during the policy period. Other factors affecting premium rates include diseases such as cancer, and such health issues as diabetes or obesity that can contribute to a shortened lifespan.

When applying for a Life policy, it’s crucial to be totally honest about the state of your health. Fudging the truth can lead the insurance company to reject your application or, potentially, even cancel coverage.

You might think that stating on your application that you’ve never had cancer when you’re actually a survivor, or that you’re a non-smoker when you still smoke a pack a day, are nothing but “little white lies.” However, these misrepresentations won’t stand up when you take the physical exam that’s required for most Life policies.

In addition, many policies have “contestability clauses,” which means that the insurance company can decide not to pay the death benefit during the first two years of coverage if you’re proven to have lied on the application. For example, if a policyholder claimed to be a non-smoker, and then died of emphysema six months later, coverage could be cancelled if the insurer could show that smoking led to this condition – which means the policy beneficiaries wouldn’t get a dime!

A word to the wise!

You’re soon to be off on an exciting trip out of the country. Your plans are made, your flight is booked, your passport is current – and now all you can do is count down to the day of your flight. Before you pack your bags and board your plane, make sure that you have insurance to cover any unforeseen medical expenses while traveling.

Bear in mind that most Health policies provide only partial, or no, coverage outside the U.S. (Neither do Medicare and Medicaid). If an accident or medical emergency struck during your trip, you’d be left far from home – and uninsured. The solution: Travel Health Insurance, which can provide a number of benefits, including:

• Emergency medical treatment
• Hospitalization
• Coverage for pre-existing condition
• Prescription drugs
• Accidental death
• Hazardous sports coverage (optional)
• If necessary, medical evacuation back to the U.S. – this alone could cost $50,000

If you’re a frequent traveler, you can purchase multi-trip coverage (for up to a year) at a significant discount. People who plan to be abroad for an extended period might be able to buy a Major Medical policy that picks up the cost of prescription drugs and wellness programs.

As with most Health policies, Travel Health plans feature both in-and out-of-network coverage, deductibles, and co-payments.

You can choose from among a wide variety of plans, with differing options, and rates. For example, some policies also include such non-medical coverages as Trip Interruption and Travel Baggage.

We can advise you on selecting the Travel Health plan that’s best for you. Feel free to get in touch with us at any time.

Fifty might seem old – unless you plan on living past 100, it means that your life is more than half over. However, people at this age today are far younger than they used to be. Think about how your grandparents looked in their 50s and 60s and beyond compared to today’s grandparents.

Although growing older isn’t what it used to be, you might still think that people over 50, who tend to be less healthy than their younger counterparts, can’t afford to buy Life insurance. Not so.

Increased competition in today’s market means that insurance companies are seeking customers of all ages– and that rates are lower than ever. More and more insurers are designing and marketing policies to people 50 and older, which means that they have a far better chance of getting Life coverage.

To help protect your loved ones with Life insurance, at a cost you can afford, we’d recommend these guidelines to a healthy lifestyle:

1. Watch your weight. Having a normal Body Mass Index (generally less than 25) will improve your chances of living longer.
2. Deal with any health issues. For example, if you have a condition such as high cholesterol, get it under control, whether by medication or changing your diet.
3. Exercise regularly, for obvious reasons.
4. If you’re a smoker, kick the habit. Quitting will not only improve your health, but save you money – which you can invest in helping pay your premium.

Of course, these recommendations apply to Life insurance applicants at any age.

We’d be happy to help you find the policy that can best meet your needs – feel free to give us a call at any time.

You buy Life coverage to provide for your loved ones after your death. To make sure your beneficiaries receive what they’re owed, avoid these errors:

1. Lying on your application. Truth hurts, but it can hurt even more if you lie on a Life insurance application. Although it might be tempting to deny that you’re a smoker, or have been treated for a particular disease or medical condition, doing so could make your policy null and void.
2. Failing to make premium payments. Just because you miss a payment doesn’t mean your policy is dead. The insurance company will usually offer a 30 or 60-day grace period for payment, during which the policy will stay in effect.
3. Not telling loved ones about your policy. Although this doesn’t mean the insurer won’t pay the beneficiaries after your death, it will make things more difficult for them. Most companies check databases for policyholder deaths, but not always in a timely manner. If you don’t give your beneficiaries policy information, some states have locator programs to help them check. The American Council of Life Insurers (ACLI) website also provides tips for tracking policies.
4. Not naming other beneficiaries. If your primary beneficiary dies ahead of you, the secondary beneficiary will receive the death benefit. If he or she passes away before you, the proceeds will go to the final beneficiary. If both deaths precede yours, the benefit will go to your estate.
5. Suicide. In It’s a Wonderful Life, Jimmy Stewart thought (wrongly) that he was worth more dead than alive because his family could collect on his Life insurance. However, under the “suicide clause” in a Life policy, if a policyholder takes his or her own life during the first two years of coverage, the beneficiaries would receive only the premiums paid to that point.

The main reason that Americans go bankrupt is because of unpaid medical bills. Most of these people carried Health insurance, but didn’t have enough coverage. It’s your health, and as a consumer, your responsibility, to look out for yourself.

As of next January 1, the Patient Protection Affordable Care Act (PPACA) will require all adults to buy a Health policy or face a tax penalty, The penalty for not carrying insurance in 2014 will be the higher of $95 a year per person or up to 1% of annual income. Starting in 2016, this will rise to $695 per individual or 2.5% of annual income, whichever is higher. For families, the penalty will be capped at $285 in 2014, rising to $2,085 or 2.5% of household income in 2016.

The good news: as of October 1, 2013, online Health insurance marketplaces or “exchanges” in every state will open their virtual doors for business, selling coverage that will take effect on January 1. What’s more, individuals and families with incomes between 100% and 400% of the federal poverty level who buy through these exchanges will receive subsidies or tax credits on a sliding scale to help pay for premiums.

These marketplaces will offer a variety of Health coverages, and the tax credits or subsidies can help you afford a level of care that suits your needs.

Don’t wait to be told to buy insurance. Start looking at your options now! As an early adopter, you’ll be more likely to find a plan with a better rate, one that saves your wallet, and – should you ever need it – your health, as well!

For more information, please feel free to get in touch with our agency.

A Life insurance policy is one of the best gifts you can give your new child. If you die suddenly, the policy will become a wellspring of cash for your kid when he or she needs it most. However, Life insurance isn’t free. Check out these proven ways to get the best value for your premium dollar:

• Choose a Blended Whole Life policy. This type of coverage combines elements of Term and Whole Life insurance. Essentially, it’s priced like a Term policy, but offers the cash value of Whole Life. When you no longer need coverage, you can cash in the value of the policy and receive all your premiums back (as long you’ve held it long enough for the cash value to equal your total premium payments) or transfer it to your child.
• Raise deductibles on your other policies. Although this isn’t without risks, it might be worth increasing the deductibles on your Automobile and Homeowners policies and use the savings to buy more Life coverage.
• Adjust your withholding. Many people receive a refund check at tax time. Surprise – the IRS doesn’t like doling out these checks; it would prefer you to optimize your withholding. By using the IRS withholding calculator (www.irs.gov/Individuals/IRS-Withholding-Calculator), starting with your next pay period you can receive more money, which you can invest in additional Life insurance coverage.
• Refinance. If you have a home or car loan, consider refinancing it. If the principal on your loan is low enough, you can reduce your monthly principal and interest payment. Don’t roll your eyes. The difference might be substantial – several hundred dollars a month –more than enough to finance Life premium payments.

To learn more, just give us a call.

Inflation gnaws on everything, including your Long-Term Care (LTC) insurance benefit. However, more and more insurance companies are offering a Guaranteed Payout Option (GPO) – also known as a Future Purchase Option (FPO) – policy rider that can ease the bite.

Says American Association for Long Term Care Insurance (AALTCI) director Jesse Slome, “A GPO allows more people to buy coverage they can afford. You can lock in meeting the required good health qualifications ,along with the advantage of lower rates, plus you still have the ability to increase coverage in future years — an extremely attractive combination.”

Buying a GPO will add 2% to 3% to your annual LTC premium, depending on your age when you exercise the option. The daily benefit increases more rapidly in the early years of the policy – an advantage for those 70 or older, who are likely to need long-term care fairly soon; it will be less of a bargain for younger people unless they’re prone to illness.

A large number of insurance companies offer GPOs or FPOs. Some companies allow you to increase coverage every two or three years, while others won’t offer this option if you reject hiking coverage two or more times in a row.

Standard “simple inflation” and “compound inflation” LTC riders differ from GPOs because they increase the AAbenefit automatically. A simple inflation rider increases the original benefit by 5% a year, while a compound inflation rider would boost the benefit by 5% compounded annually.

For a complimentary review of which LTC inflation rider would be best for your situation, feel free to get in touch with the Health insurance specialists at our agency.

The self-employed tackle challenges that those employed by others rarely face: doing budgets, growing their business – and, of course, Health insurance.

The cost of individual Health coverage has skyrocketed during the past decade, with average monthly premiums growing more than 500%. What’s more, co-pays and deductibles keep going up, while covered services are shrinking.

However, there are options that can help the self-employed enjoy significant savings on Health insurance:

• The Consolidated Omnibus Budget Reconciliation Act (COBRA)
  COBRA is a federal law that guarantees workers who lose their jobs – and thus the Group Health benefits provided by their employers,- he opportunity to retain coverage on themselves and their families for up to 18 months, as long as they pay the policy premium (plus a surcharge of up to 2%). COBRA gives the self-employed a short-term ‘time cushion” during which they can make other health care choices.
• Online ProvidersThe Internet has given rise to a number of smaller, increasingly flexible, more price-conscious, and highly competitive companies that offer the self-employed a variety of options for affordable Health insurance.
• The Affordable Care Act (ACA)Everything that we know about Health insurance for the self-employed (as well as employees in small and medium -sized businesses) is in a state of flux as more provisions of the ACA take effect over the next few months. The government, in partnership with Health insurance providers, will offer a variety of options – and require every adult to carry some type of coverage, or face a tax penalty.

For more information on how to get the best value on your Health insurance, at an affordable price, feel free to get in touch with our agency at any time.