Life and Health

To stay afloat in today’s tough economy, millions of people are taking on more and more debt to pay for such items as home mortgages, car loans, college education, or credit cards.

If you died unexpectedly, leaving your debts unpaid, your family would be left owing thousands or tens of thousands of dollars — unless you’ve taken out Credit Life insurance. In this traumatic situation for your loved ones, the financial peace of mind that Credit Life coverage provides can be invaluable.

Here’s how it works: You take out insurance on your life, naming a creditor as the beneficiary (for convenience, the policy premium can be added to your loan payments). On your death, the creditor will receive the balance of the debt or the maximum coverage under the policy, whichever is less. This will protect your heirs by eliminating, or reducing, the burden of debt on your estate.

As with Term Life insurance policies, Credit Life can be written to pay the beneficiary (creditor) if you suffer a critical illness, job loss, or disability that leaves you unable to meet the debt.

To be eligible for coverage, you must be:

• Employed full time
• The only person on the loan
• Below a maximum age set by the insurance company

For more information on the invaluable “peace of mind” financial protection that Credit Life can offer, please get in touch with us.

The nation’s 76 million Baby Boomers (born between 1946 and 1964) need to prepare themselves for financial security in retirement — and that includes making wise decisions about their Health insurance needs. The National Association of Insurance Commissioners (NAIC) recommends that Boomers consider these options:

• Convert a Group Health plan. If you’re employed and have Group Health insurance through work, but expect to retire soon, find out if your company has a Group plan for retirees or if you can convert your plan to an individual policy.
• Choose a High-Deductible plan. Because these plans require high out-of-pocket payments — a minimum of $1,200 for an individual or $2,400 for a family — you should be in good health and be able to afford the expense. You can also pay for most appointments and prescriptions through a tax-advantaged Health Savings Account HSA) A high-deductible plan will provide coverage for major medical care such as surgery or disease treatment.
• Qualify for a Pre-Existing Insurance Condition Plan. Starting in 2014, the Affordable Care Act will prohibit Health insurers from denying coverage or charging you a higher premium because you have an illness or health condition. In the meantime, you might qualify for a Pre-existing Condition Insurance Plan (PCIP) if you have a pre-existing condition and have been uninsured for at least six months. These policies provide comprehensive coverage, including primary and specialty care, hospital care, prescription drugs, home health, and hospice care. Also, you won’t pay higher premiums due to your health condition.
• Consider Long-Term Care insurance. Some seven in 10 people (70%) age 65 or older will need long-term care services at some point in their lives, at an average cost of $80,000 a year, according to the NAIC. If you don’t have the financial resources to pay for nursing home care or suffer from a chronic condition or disability, consider buying Long-Term Care insurance (LTC). However, be aware that many insurance companies are limiting LTC benefits or dropping this coverage altogether.

Our Health insurance professionals would be happy to offer their advice — just give us a call.

The most recent figures from the National Center for Health Statistics show that 18.6 million American adults (that’s one in 12) suffers from asthma, If you’re one of them, buying Life insurance can be costly — depending on the severity of your condition and your reaction to treatment.

However, asthmatics with a good track record of controlling their symptoms can have a near normal life expectancy. So, if it’s been more than two or three years since your asthma led to an ER visit and your condition hasn’t caused you to miss work, you shouldn’t have much trouble getting Life coverage at or near a “standard” premium. Before you apply for coverage, it makes sense to:

• Have your physician monitor your condition at least twice a year.
• Follow the medications the physician prescribes.
• List these medications on your insurance application.
• Provide a comprehensive medical history for the application.
• If you’re a smoker, kick the habit!

We’d be happy to review your situation and recommend the coverage that’s best for you. Call us today for more information.

If you’re looking for a cost-effective way to help provide financial security for your loved ones after you pass on, Term Life insurance might well be your best bet. Here’s how it works: You take out a policy on your life for a fixed “term” or number of years. The other major type of Life coverage, Permanent or Whole Life, remains in force as long as the policyholder lives.

The amount of coverage or death benefit depends on your personal situation (age, marital status, and number of dependents) and financial circumstances (income, short-term debt, home mortgage, etc.). You should choose an amount that will replace your lost income and pay down debt for your survivors.

Before writing a Term Life policy, the insurance company will probably require you to pass a medical examination. The test results will affect your policy premium — such factors as smoking, obesity, and hypertension lead to higher rates. As a rule of thumb, the younger you are, the lower your annual rate.

If you have a health condition that keeps you from buying regular Term Life, you might prefer to buy “guaranteed issue” or “quick issue” coverage, which does not require a physical. However, in this case, the insurance company will protect itself against the increased risk of covering you by charging a higher premium and perhaps setting a yearly fee.

Term Life premiums either go up every year or can be set at a fixed rate (“level premium”).

The professionals at our agency will be happy to provide a review of your situation and recommend Term Life coverage tailored to your needs.

When choosing a Health insurance program, it’s all too easy to drown in an alphabet soup of acronyms — everything from ACOs (Accountable Care Organizations) to WHRN (Whole Health Resources Networks). However, the three most common types of managed health care plans are Health Maintenance Organizations (HMOs), Preferred Provider Plans (PPOs), and POS (Point of Service plans). Here’s an overview of how each type works, together with their advantages and disadvantages.

Health Maintenance Organizations. An HMO offers a “provider network” of health services professionals (physicians, nurses, therapists, etc.) and facilities (hospitals, clinics, medical offices, and so forth). A primary care physician (PCP) will act as a “gatekeeper” who will evaluate your health and recommend referrals to specialists, as needed.

As a rule, premiums and co-pays are relatively low, saving you money. On the downside, HMOs offer limited, if any, flexibility for services outside the plan. If your current physician isn’t in the HMO, you’ll have to pay for his or her services, or select another PCP who does participate in the plan. Also, if you use a provider outside the network, you’ll have to pay out of pocket.

Preferred Provider Organizations. Like HMOs, PPOs operate through a network of health care providers and institutions, and set relatively low co-payments for medical treatment. However, unlike HMOs, they’ll pick up the tab for many (although not all) medical services outside the network. What’s more, you can see specialists who participate in the network without going through your primary care physician.

Of course, you’ll pay a relatively high premium for enjoying this added flexibility. Also, if you get treatment outside the PPO, you’ll have to pick up a deductible or the difference between the charges of the plan provider and those of the out-of -network specialist.

Point of Service Plans. This option combines elements of HMOs and PPOs. A POS plan focuses on a primary care physician participating in the plan who monitors your health care at the “point of service” and recommend referrals either inside or outside the network. In the former case, the PPO will file a claim with your Health insurance company, which will pick up the tab for a high percentage of the charges; in the latter, you’ll have to do the paperwork yourself and your reimbursement will be far lower. If you see a specialist without going through your PCP, the insurer will pay even less.

As a rule of thumb, a POS offer more flexibility than an HMO and less than a PPO.

The Bottom Line. HMO, PPO, or POS — which will provide the best value for your health-care dollar? That depends on your needs and life situation. Our professionals stand ready to offer you their expert advice. Just give us a call.

It’s a fact: Americans are living longer and healthier lives than ever. However, good health doesn’t eliminate the need for health care. Too expensive you say? There are many ways to save dollars on Health Care insurance. For example:

• Take advantage of free educational programs offered by local hospitals, agencies, and educators. The more you know about health-related issues, the easier it is to make decisions.
• Establish a solid relationship with your primary care physician. This should improve the quality of your care because the doctor will recognize your unique medical needs. Although going to an emergency clinic for routine care might seem easier, you’ll pay more for the convenience.
• Select a higher deductible to reduce your policy premiums. Review the medical costs you’ve paid during the past couple of years, including insurance premiums, deductibles and co-pays, and other expenses not covered by insurance. Many people choose a lower deductible without examining their medical history — assuming that because their insurance will pay at the time of a claim, they’ll save money. However, this doesn’t hold true in all cases. In fact, you might benefit by selecting a higher deductible and paying smaller claims out of pocket.
• Make healthy lifestyle choices. Such basic decisions such as not smoking and exercising regularly will save you money, as well as making you healthier. Regular exercise can reduce high blood pressure.

The better your health, the less you’ll pay for Health insurance.

As of August 1, 2012, nearly 13 million Americans were scheduled to receive $1.1 billion in refunds from the nation’s Health insurance companies under the terms of the federal Affordable Care Act (ACA).

The legislation requires insurers that spend less than 80¢ of every $1.00 in premium on medical care (as opposed to overhead – salaries, administrative costs, etc. – and profits) to inform policyholders of the excess cost and rebate the difference to them. Congress created this “80-20” rule as an incentive for insurance companies to improve coverage and/or reduce rates.

According to the Department of Health & Human Services (HHS), most Americans with Health insurance have their policies through carriers that meet or exceed the 80-20 requirement. However, HSS estimates that more than one in three (38%) of those with individual (rather than employer-provided group) coverage are entitled to a rebate from their insurer. These refunds will average $151 on a nationwide basis, with state averages ranging from $651 (Mississippi) and $582 (Alabama) to zero in six states (Arkansas, Hawaii, Iowa, Maine, New Mexico, Rhode Island, and Vermont).

When you purchase or upgrade a Life policy, make sure that you’re aware of the coverage options that can help you get the best value for your money. Industry experts recommend that you consider these five add-ons:

1. Waiver of premium. If an incapacitating illness or disability puts you out of commission for an extended period, leaving you unable to cover policy premiums, the insurance company will pick up the payments (some companies might not offer this option, based on the policyholder’s age and health).
2. Accelerated death benefit. Allows policyholders suffering from a terminal condition to take out cash advances against the death benefits of their policy. This feature was first offered to ease the financial burden on AIDS victims of medical care and living expenses during their final days.
3. Long-Term Care rider. Similar to the accelerated death benefit, this option gives you the ability to apply part of the policy’s death benefit to cover the expenses of long-term care at home or in a nursing facility.
4. Guaranteed purchase. Offers Life policyholders in their mid-40s or younger the right to buy more coverage up to a set amount on a regular basis without passing a physical exam. This option can help younger breadwinners raise their policy’s death benefit to keep pace with growth in their income and the size of their family.
5. Spouse or child term rider. Allows you to extend coverage on your Term Life policy to your spouse or a dependent child younger than a specified age (usually 21 to 26). At this age, you can switch the policy to Permanent Life coverage with a face value up to five times that of the original – and with no need for a physical exam.

Bear in mind that these options will increase your premiums and might not be suited for you. Our specialists would be happy to analyze your situation and recommend the Life insurance program that can best meet your needs at a price you can afford. Just give us a call.

Nearly three times less than many people think.

A recent nationwide survey by LIMRA and the LIFE Foundation found that consumers pegged the average premium of a $200,000 20-year level Term Life policy for a healthy 30-year-old male at $400 – compared with the actual figure of $150! What’s more, young adult participants (who find it easier to get lower rates) overestimated the annual premium by nearly seven times.

Among the nearly one in three respondents who said they needed more Life insurance, almost half did not have a policy. Two of the reasons these people gave for not buying coverage was that a policy would be “too expensive” (83%) or that they preferred to spend their money on “other financial priorities” (85%).

Unfortunately, this misperception about cost might be deterring many people from enjoying the benefits that Life insurance provides. In reality, premiums for Term Life coverage have plummeted by nearly 50% during the past 10 years – offering great values to policyholders.

To take advantage of these opportunities, please feel free to get in touch with our Life insurance professionals.

One in two Americans will need long-term medical care during their lifetime – and this percentage will keep growing, thanks to advances in medicine that keep extending the average lifespan.

The more we age, the more help we need – which means a serious health problem (such as a serious fall, cognitive impairment or heart attack) can make us unable to support ourselves and dependent on others for health care. What’s more, this need is by no means limited to seniors: More than one in three people (37%) receiving long-term care services are younger than 65!

Long-Term Care insurance (LTC) can help pick up the tab for these often pricey services by covering expenses that your Health policy doesn’t include. It can also protect your family’s assets by removing the financial burden on your family and friends of paying for your care, or of caring for you themselves – responsibilities that you wouldn’t want them to assume. As a rule, LTC coverage will pay for care in your home, an adult day care or assisted living facility, or a nursing home. The policy benefits will kick in as soon as you require assistance.

Without LTC, you, or your family, would have to pay for these services – which can create a staggering financial burden that could last for years. It costs more than $70,000 a year to staying in a nursing home, a figure that’s projected to hit $190,600 by 2030. The average wage for home care aides comes to $32.50 an hour, an expense that can add up quickly because more and more people need 24-7 care.

Don’t count on other health care programs to foot the bill. Medicare, and almost all Health policies, will provide partial payment for long-term care – and only for 100 days or less. If you’re under the poverty line, such government programs as Medicaid will cover nursing home care.

LTC can provide an affordable alternative. Annual premiums usually range from $1,000 to $5,000, depending on the amount of coverage, and your gender, age, and physical condition. (People who have severe health problems might not qualify).

For a free review of your need for long-term care protection, please get in touch with us.