Life and Health

Disability coverage replaces lost wages for people who are unable to work. In recent years, Disability insurance was the industry’s biggest eyesore. Due to suspicious payouts for claims of stress and nerves, companies that sold this coverage suffered major losses during the 1990s.

After suspicion rose for these claims, an investigation by insurance commissioners in several different states began. The investigation showed that some of the nation’s largest insurers delayed and blocked legitimate benefits payments. In addition to this, the insurers committed various other trust breaches. A series of lawsuits led to the end of many companies selling individual policies. Insurers that remained in the business had to raise their rates for new buyers and restrict underwriting rules, which made it much more difficult to obtain adequate coverage.

Disability insurance is regaining its reputation now. This means that it is easier today to find a policy than it has been in many years, which is the top reason why it is a good time to buy. Another reason why it is a good time to buy a policy is that insurers are showing more flexibility about who can obtain coverage. For example, if a person who is diagnosed with depression but it is controlled by medication, they may not be rejected now. In the past, those who started new businesses were not eligible for coverage for up to one or two years after the start of their business venture. Many insurers today take new business owners immediately if they can show proof of five years of successful employment with a business prior to beginning their own venture. In addition to this, they require that people stay in the same industry and show proof of business contracts for the immediate future.

How Much Is Needed? To determine how much Disability coverage is needed or whether it is best to add existing coverage, add monthly living expenses together. It is important to determine how much money is needed for living expenses if disability becomes a reality. Keep in mind that transportation costs may be lower or higher depending on whether a car is owned or not. Subtract any benefits from a workplace plan. Since workplace benefits end at about 60% of pretax income, employer group benefits are not nearly enough to live on. Although it is not possible to replace every dollar of current income, it is possible to find a policy that allows a disabled person to live comfortably. Discuss the different available policies with our agents to learn more about their details. Keep in mind that premiums vary with gender, age and occupation.

Choosing a Policy. The most comprehensive policy choices are own-occupation policies that offer benefits if members are unable to perform the substantial and material duties of their own occupations. This means that they receive benefits even if they can do other types of work. For example, a construction worker who becomes disabled would receive benefits even if he or she could perform office duties for lower pay. It is ideal for skilled professionals who are unable to perform the work they were trained to do but are physically able obtain lower-paying jobs that are related to their industry. Some policies have a modified version of own-occupation policies. To understand the differences, discuss them with our agents.

Coverage That Stays Current. One of the disadvantages of paying for any amount that is less than full coverage is receiving a smaller amount each month if disability becomes a reality. Many disabled people regret not paying for full coverage because their income provides more flexibility with complete coverage. In addition to lost salary, there are retirement shortfalls to consider. These are the most overlooked aspect of such policies. One of the best solutions for this problem is purchasing a rider for the policy, which makes retirement savings contributions up to 401(k) maximums for the duration of the disability. To learn how much these policies will add each year, discuss personal details and options with our agents.

The Council for Disability Awareness began conducting annual reviews of United States disability claims in 2005. In 2011, the CDA reviewed quantitative and qualitative data gathered during a survey conducted in 2010 and used the results to compose a report. The purpose of the report is to identify trends in disability claims and use these trends for evaluation of the U.S. system.

Findings of the Survey. According to the CDA’s survey, insurance companies with CDA memberships made approximately $8.3 million in long-term disability payments during 2010, which represents an increase of 1% from 2009. Fifty-six percent of the companies participating in the survey reported an increase in claims since 2009, mainly because of the recession.

Companies participating in the survey reported that 0.6% fewer employers were offering Disability insurance programs to employees during 2010. They also reported that the number of people insured decreased by 0.8% as a result of job loss, decreased participation in plans, and a lower number of employers offering plans to workers.

The 2010 CDA survey also showed that insurance companies with membership in the CDA were remitting disability payments to 587,000 disabled individuals in the U.S. This number is 0.3% higher than the result from the 2009 survey. In 2010, more than 95% of the long-term disability claims made were not work-related. Seventy-two percent of the individuals receiving long-term disability payments also qualified for SSDI during 2010.

Reasons for Disability Claims. The CDA report also seeks to determine the main causes for long-term disability claims. According to the report, conditions of the connective tissue and musculoskeletal system were the leading causes for newly approved disability claims in 2010 and accounted for 30% of new disability claims. Cancer is the second most frequent reason for new claims, though its overall incidence decreased in 2010.

The number of new disability claims caused by complications from childbirth and pregnancy decreased in 2010. There were also fewer claims resulting from injuries during this year. However, new claims caused by parasitic diseases, infections, and disabling mental disorders increased in 2010.

Despite the overall increase in long-term disability claims, the majority of companies participating in the survey stated that the incidence of new claims was better than expected for 2010, given the uncertainty of the economic climate. However, disability claims are lasting longer than they had in previous years. Most companies believe that this is due to the severity of the recession and the high unemployment rate in the U.S. Approximately 50% of companies participating in the survey expect a slight increase in new claims next year, while the other 50% expect no change.

SSDI Data and Trends. Approximately 152 million U.S. workers were covered under the SSDI program in 2010, which represents a slight increase from 2009. More male workers were covered than female workers. 8.2 million individuals were receiving benefits in 2010, and disabled individuals received a total of $115 billion from the Social Security Administration during the year. The total number of disabled workers is growing steadily with musculoskeletal disorders as the most common cause for claims. For the first time ever, more than 1 million new SSDI awards were made during 2010.

Long-Term Trends in SSDI. Ten percent more workers were covered under SSDI in 2010 than in 2000. The amount of female workers covered has grown more rapidly than the population of covered males, and the average age of covered workers has increased. In the past decade, new applications for SSDI have more than doubled, and the number of approved workers has increased by 63%.

The overall disability rate is increasing for both genders, but it is increasing faster for women than men. New awards for connective tissue and musculoskeletal disorders are increasing, while the incidence of new awards for circulatory diseases is decreasing. Injuries, which are typically believed to be a predominant cause of disability, account for only 5% of new SSDI awards.

Everyone needs Life insurance, but not everyone has a good understanding of this important type of insurance. Two of the most frequently asked questions that insurance professionals get from people are:

#1: Why do I need Life insurance? Although it might seem oversimplified, the answer is: Everyone needs Life insurance.

If you are wealthy, Life insurance proceeds will pay taxes, final expenses, outstanding bills (such as mortgages, car loans, credit cards, etc.) so that your family gets the full value of everything you have spent a lifetime working to accumulate.

Conversely, if you are not independently wealthy, then Life insurance is the only vehicle that will “create” an instant estate upon your death that can be passed on to your loved ones. What might have been denied to you during your life time through no fault of your own, despite hard work and effort, you can attain at death with a Life insurance policy!

There is nothing else in the financial world that can do for you and your family what a Life insurance policy can do, guaranteed, whether you die tomorrow or 50 years from now.

When a loved one or close family friend passes away, there are certain things that need to be done right away in order to be sure that the beneficiary gets the proceeds from the insurance. Begin by carefully checking the person’s files and telephone book for names and contact information of their insurance agent(s). Get in touch with every insurance agent and company with which they had a policy, even if you are not sure it is in force. Speak with their employer’s HR department, both current and previous to determine if there are any insurance benefits in effect. Check the mail for up to a year after the passing for notices from insurance companies about premiums due, etc. Look over the past several years of tax returns for any references to interest received or interest paid from or to a Life insurance company. These steps will help you to determine whether you have covered all the possibilities. If you need help locating a Life insurance company, check with the state insurance department or A.M. Best Co. Be sure to get several copies of the death certificate since you will need this to file a claim with each company.

#2: How do my beneficiaries (spouse, children) receive the proceeds? Don’t make the critical error of assuming that your beneficiaries will automatically receive your estate!

To start with, most states have very specific guidelines regarding how an estate will be probated if you die without a will. Your spouse/children may not automatically get everything you own. In fact, the state will create a plan for the distribution of your estate if you don’t have a will. If this occurs, the distribution probably will not be what you had envisioned!

Some people believe, “I don’t really have a lot of money, so I don’t need a will to take care of things.” Incorrect! Estate planning is often thought of as something only rich people need. Of course, the larger the estate the more complex the will needed to handle the distribution, but even a modest estate requires a will to be sure your assets go where you want them to go. And, do not think a simple one page “boiler plate” document will suffice. These wills can often create more problems than they solve. Even a minor error or oversight can negate everything.

Remember, you are not going to be there to make your wishes heard; the only voice you will have is the one in your will or trust, so do not gamble. It is just too important an issue to take chances. Speak with one of our insurance agents to make sure your final wishes are documented in full.

For years, small business owners, the self-employed, and people who don’t get their health insurance from their employers have faced a dilemma: For quality health insurance premiums to be affordable, you need to set a fairly high deductible. On the other hand, any money you save is generally taxed. Which makes it that much more difficult to cover your deductible. That’s where health savings accounts come in.

The Health Savings Account, or HSA, lets you defer taxes on any money you contribute, in order to cover out-of-pocket medical expenses. The catch: To contribute, you have to buy a special kind of policy called a High-Deductible Health Plan, or HDHP.

High-Deductible Health Plans Explained. HDHPs are major medical policies with higher deductibles than one normally finds in other plans. Premiums low by restricting coverage to major medical events. The risk of less costly procedures or minor medical events is retained by the consumer, not the insurance company.

For policies covering only yourself, your annual deductible must be at least $1,200, as of 2012. The maximum annual deductible and other out-of-pocket expenses cannot be more than $6,050. For family coverage, the limits are $2,400 and $12,100.

HSA and HDHP Eligibility. To enroll in an HSA/HDHP, you must not be enrolled in Medicare, nor have coverage under any other health plan. Additionally, no one else must be claiming you as a dependent on their tax returns. The IRS considers you eligible for an HSA all year long if you were eligible on December 1st of the previous year. However, a special “testing period” may apply if there are any changes in your eligibility status.

HSA Contribution Limits and Taxation. As of 2012, the most you can contribute to an HSA is $3,100, and the limit for families is $6,250. Those aged 55 or over can contribute an additional $1,000 per year. Currently, the base contribution limits are indexed to inflation, but not the 55+ catch-up contribution limit. If you contribute too much, you will be liable for a 6% excise tax on the overage.

Contributions are tax deductible, and all growth in an HSA is tax-deferred. If you withdraw the money to pay for a bona fide medical expense, the amount withdrawn is tax free. However, any withdraws you make to pay non-qualified expenses, or for any other reason other than medical expenses, is taxable as ordinary income, and subject to a 10% penalty.

Preventive Care. Some plans will waive your deductible for preventative care. Examples include tests, checkups, mammograms and some diagnostic procedures.

Who Should Consider a HSA/HDHP?

HSA/HDHPs tend to work best for those who are in reasonably good health, with no reason to believe they will incur ongoing medical expenses.

• You are a small-business owner, sole proprietor or independent contractor.
• You don’t get coverage from a workplace plan.
• You and your family are in generally good health and don’t require routine, ongoing medical treatment.
• You have enough income to contribute each year.
• You are in a higher tax bracket. You want to keep premiums low.
• You can afford to absorb the risk of a $3,100 or $6,250 medical expense, should something happen to your family.

HSA/HDHP’s may not be for you if you will have trouble coming up with the deductible, or if you will wind up delaying needed health care because of the higher deductible.

Claiming the Deduction

To claim a deduction for a health savings account contribution, fill out an IRS form 8889, Health Savings Accounts, and submit it to the IRS along with your personal income tax return. You must use a Form 1040 or, if you are a non-resident of the United States, a 1040NR to claim the deduction; you cannot claim the deduction if you file using a Form 1040-EZ or a 1040A.

For complete information on health savings accounts, see IRS Publication 969. Contribution deadlines for HSAs work similarly to those for IRAs: You have until April 15, 2012 to make your 2011 contributions (however, the caps for 2011 are lower – $3,050 for singles and $6,150 for families.) Similarly, you have until April 15, 2013 to make your contributions for 2012, and so on.

The two types of Disability insurance policies are Long-Term Disability and Short-Term Disability. Long-Term Disability insurance policies have waiting periods lasting at least several weeks, which might ultimately last up to several months. Their maximum benefit periods range between a few years and the remaining lifetime of an insured individual. Short-Term Disability insurance policies have waiting periods between zero and 14 days. The maximum benefit periods for short-term policies do not exceed two years.

There are two protection features of Disability policies, which are important to understand. The non-cancelable feature of a policy means that the insurance company cannot cancel it aside from the condition of unpaid premiums. This means that individuals holding these policies have the right to renew them each year without worry of reduced benefits or premium increases if premiums are paid. The second feature to consider is guaranteed renewal. Guaranteed renewal gives individuals the choice to renew a policy without giving up the same benefits. In addition to this, the company will not cancel the policy. Although the insurer reserves the right to increase premiums, the insurance company must also increase premiums of all other policyholders in the same class.

Although traditional Disability policies are commonly chosen, other options do exist. When considering the purchase of a policy, there are several options:

Coordination of Benefits. Other benefits individuals receive for disability affect the amount of benefits received from the insurance company. Policies list a target amount, which individuals receive from a combination payment that encompasses all of the policies. This means that the policy makes up the difference that is not paid by other policies.

Additional Purchase Options. This benefit gives individuals flexibility in planning. In this provision, the insurance company offers individuals the right to purchase additional coverage in the future.

Partial or Residual Disability Rider. If returning to work is desired, this feature is beneficial. It allows people who are still partially disabled to go back to work on a part-time basis, collect a portion of a previous salary and enjoy partial disability payments.

Cost of Living Adjustment. This adjustment is commonly referred to as a COLA. In consideration of the Consumer Price Index and the average cost of living, the COLA increases disability benefits. However, individuals who choose this adjustment will also pay a higher premium.

Waiver of Premium Provision. This provision means that individuals who are insured and have been disabled for more than 90 days are not required to make premium payments toward the policy.

Return of Premium. In this provision, the insurance company is required to issue a refund for part of the premium if claims are not made for a specific time period, which is named in the policy.

Many Americans do not have adequate Life insurance coverage. The number of people going without sufficient insurance is high enough that it has gained the attention of researchers. The number of Americans who don’t have Life insurance is more than 90 million. Researchers believe that this number is related to the lack of jobs. One interesting fact is that almost 80% of Americans only have group Life insurance policies offered by their employers. If these individuals lose their jobs, they also lose their Life insurance coverage. The solution to this problem is to decide what individual Life insurance needs are and fill them.

Women who earn more than $100,000 annually are less likely than men to use group or individual insurance. Although women tend to have longer lifespans than men, statistics show that the majority of them don’t have enough individual coverage. However, this doesn’t apply to all men and women. These statistics came from research and represent majority percentages rather than the entire population. Another factor that isn’t always considered in purchasing Life insurance is the cost of replacing the child care activities of full-time mothers. The costs of driving, housekeeping, child care, food and other details of caring for children must be considered.

Since Americans are living longer than they were in the past, the premiums of Life insurance policies have dropped. The reason for this is because longevity improvement yields lowered mortality costs. However, there is a more difficult aspect of this equation, which involves the earnings on investment portfolios of insurance companies. Life insurers are regulated heavily, so they must meet reserve requirements. The reserves of life insurers are usually placed in interest-bearing investments that are very conservative. As a result of this and other issues, the insurance premiums for long-term care have risen significantly.

There are several professionals who predict similar trends in the future for life insurers. This is because very little is yielded from their conservative reserve assets. This is another good reason why it’s important to solve Life insurance deficiencies as quickly as possible. Life insurance isn’t used only as an income replacement to provide for heirs. It’s also useful in helping to reduce estate taxation, as a tax-favored supplemental benefit to the most valuable employees and to fund the succession of a business. The best way to identify what changes must be made is to contact one of our agents.

There is very little that can’t be done online these days. From buying clothing and food, to attending college, to connecting with friends (and even finding a soul mate), almost anything can be done online. But old habits die hard, and some businesses haven’t yet cut the apron strings of time consuming, wasteful paperwork. A perfect example: Insurance applications. Virtually every aspect of obtaining, updating , and even terminating insurance, can be done online. However, companies across the globe are either unaware of this convenience, or are simply too comfortable with the routine of paperwork they have become accustomed to over the years. Employers want the easiest, most streamlined and efficient process possible when it comes to this otherwise lackluster aspect of doing business — but they don’t always know how to get it.

Especially in smaller companies where the employees and management are all relatively familiar with one another, the intimacy of Health insurance application questions can be embarrassing for employees. Medical history is very private, and if an employee doesn’t want her boss to know about a particular pre-existing condition, she has little choice but to withhold it from the application — unless the applications are done online. Online applications equal privacy for employees. Privacy alone is worth it to most businesses, but the benefits don’t stop there.

The ease of online Health insurance applications is paramount. Just think about the old fashioned way of doing things. Management calls a meeting, passes out large quantities of paperwork, explains the application process, and asks for questions. While holding their applications in hand, employees begin to ponder each and every question. Their eyes scan the pages; medications, pre-existing conditions, other insurances, doctors, alcohol use? Questions start being shouted across the room — the employees’ voices rising into a great cacophony that will only subside hours later, when the Health insurance meeting finally ends because everyone realizes it’s after 5:00. Then comes the “turning in” portion of the Health insurance process. Management announces that applications are due no later than Wednesday. On Wednesday afternoon, four employees still haven’t turned in their applications. Josh lost his. Amanda’s is “almost done.” This process is never fun, and far from easy.

Now consider a slightly different scenario involving the online application process. Management calls a meeting. “Hello everyone. We will be changing to a new insurance company. They have an easy, streamlined application process, and their web site will answer any questions you might have about the new policy. The applications are completely confidential, and you can do them at home, on your own time. Just make sure to have them completed by the end of the week or you will be without insurance. The applications are processed immediately, so you should have your new cards by next week. ” While employees are at home, doing their applications in the privacy of their bedroom or den, questions will still arise — just as they did in scenario No. 1. The difference? They will be on a website hosted by the most useful resource available for their questions: The insurance carrier. They are much more likely to browse the site, looking for answers to their questions. A few employees will still make their way into managements’ offices, but they will be fewer and farther between. The “turn in” process will be eliminated. The applications will be processed with lightning speed. The environment, and the employer’s wallet, will be thankful for the reduction in paperwork. Not to mention, Health insurance isn’t a once and done thing. Employees will get married or divorced and will need to update their applications. Babies will be born. Options will be added. Virtually all of these changes can be updated — by the employee — online.

Online applications provide privacy for employees, speed and ease for everyone involved, and a more cost effective, environmentally-friendly process. Most carriers now offer this option, and the rest are not far off. By utilizing an online application process, employers will make their own lives easier while simultaneously winning the favor of their staff.

Self-employed individuals who work from home usually don’t think about purchasing Disability insurance. However, the few individuals who do consider it receive positive feedback about the idea from an insurance agent. Those who have researched this type of coverage usually find that policies are expensive. In addition to this, not all Disability insurance companies are willing to work with self-employed individuals. Many policies aren’t enough to replace regular income. There are a few important things to know in order to get the coverage needed at a good price.

How Much Insurance Is Needed? The purpose of Disability insurance is to replace regular income for a long period of time. The disability might last a few years. However, disability income might be needed until retirement age. Although disability policies for self-employed individuals rarely replace gross income, they can replace a considerable portion of it. To get a better idea of how much to aim for in a policy, consider how much is paid each year in taxes. That amount should be deducted from gross revenue and expenses. It’s best to find a policy that allows this amount of compensation. If there are licenses or other business expenses that must be paid to keep current in the event of a disability, it’s best to add a Business Operating Expenses policy to the LTD coverage. BOE policies are limited, so it’s important to speak with an agent to understand exactly what they cover.

How Much Coverage Costs. Disability coverage can be costly. In most cases, a good policy’s monthly premium is slightly more than 10% of gross monthly income. Keep in mind that smaller premiums mean less coverage. There are ways to save a little money without skimping on coverage. First, consider buying a policy for a set number of years instead of the full term between current and retirement age. Another way to lower costs is to extend the benefit waiting period. Settling for a smaller payout is another option. The most optimal option is to buy into a group policy. Individuals who belong to a professional organization should contact an agent or the organization to see if there are group policies offered. Agents might also know of other resources available to some individuals.

How Qualification Is Determined. Since a LTD policy replaces income, it’s important to prove income. To do this, copies of tax returns from the past five years are often required. Insurance agents might also make a home visit to analyze a work area. Their goal is to ensure that individuals are truly earning a living the way they say they are. If agents suspect that work performed at home is part-time or irregular, there may be issues with qualification. Obtaining the proper licenses for the type of work chosen is very beneficial. For example, an accountant should have the proper licenses for practicing accounting and running a business. Keeping the working area properly separated from the living area of the home also helps. Freelance workers and other independent workers who don’t have licenses face the biggest qualification challenges. Written contracts, proof of a steady income and tax returns are the best tools for such individuals to prove qualification.

The Most Important Policy Details. Be sure to ask an agent if the policy replaces income from all types of work or a only current profession. Some policies are set up to encourage workers who lose the ability to do one task to do another similar task. However, some policies pay disability benefits to a worker who can’t do their specific job anymore even if they qualify for a different type of job. This usually becomes an issue if the alternate job choice pays significantly less than the current position. If the disability policy pays more than an alternate form of work would, it’s best to keep the policy. Most policies have a waiting period between 60 and 90 days. Some waiting periods restart if an insured individual attempts to work during that time. Be sure to understand the terms of the policy thoroughly. Contact one of our agents with any questions.

Most people view Life insurance as merely a death benefit for their dependent children or surviving spouse. However, Life insurance, specifically a type called Second-To-Die or Survivorship insurance, can additionally be a very effective asset preservation tool for estates of all sizes.

This type of Life insurance covers two individuals (most often spouses) through a single Life insurance policy. The premium for Survivorship insurance is usually much less expensive than other Individual Life insurance policy options and the policy respects martial estate tax deductions that defer estate taxes until both insured spouses are deceased. The benefit will not be paid out until both individuals on the policy are deceased.

Survivorship Life insurance can be very beneficial in a number of estate transfer circumstances. Here are five scenarios where survivorships might be considered:

Avoiding Taxation Eating Away at Retirement Account Assets. Many are surprised to learn that the 401 (k), IRA, or other retirement account that they’re planning on leaving to their children, grandchildren, or other loved ones can be cut in half by the time all the applicable taxes are applied to the money. In order to avoid tapping into this money to pay these taxes, you may buy a survivorship policy equal to the estimated taxes on your retirement account assets. This way the survivorship policy negates the tax burden.

Ensuring Charitable Contributions Are Dollar-For-Dollar. Just as with retirement accounts, you may use a survivorship policy to ensure that your charitable donations to qualified non-profit organizations are received dollar-for-dollar upon your death. In the meantime, if you name the non-profit organization as the owner and beneficiary of the policy, then you’ll be able to deduct the survivorship policy premiums from your annual taxes.

Keeping Non-Liquid Assets Intact. You might have assets that aren’t liquid, such as a family business or real estate, and that your beneficiaries don’t want to sell to pay the estate taxes. The benefit from a survivorship policy can be used to pay the estate taxes and keep your non-liquid assets intact. The survivorship policy can also be useful in cases where you have multiple children or grandchildren, some of whom might not be interested in ownership of the involved real estate or business. Those interested in the asset(s) can use their portion of the Life insurance benefit to buyout the other involved parties.

Gaining Insurance for a Spouse with Poor Health. Your spouse might have been told he/she is uninsurable due to a poor health condition. A survivorship policy can generally be obtained so long as the other spouse is in relatively good health.

Caring for Children with Special Needs. Ensuring that your child with special needs is cared for after you and your spouse die is a daunting process to say the least. A survivorship policy is one cost-effective way that you can ensure your special needs child has a large death benefit to provide for their care once you and your spouse are deceased. This is usually done aside a special needs trust to ensure that the funds are properly managed and to retain the child’s ability to receive government funds like SSI.

In closing, for the survivorship policy to have the desired impact, it must be excluded from the estate of the insured parties. If you and your spouse have separate estates, then it must be excluded from both. Neither spouse can have ownership rights on the policy. You might choose to assign the rights of the policy to an adult child, setup a trust, or such. It’s best to consult with your estate lawyer to ensure the structure is congruent with your estate planning needs and goals.

Despite America having one of the best health care systems in the world, medical mistakes are still a reality. Medication-related errors are among the most frequently occurring preventable medical mistakes. A report by the Institute of Medicine of the National Academies found that at least 1.5 million individuals are harmed each year as a result of medication errors in hospitals, long-term care facilities, or outpatient settings. Another study by the Agency for Health Research and Quality estimates that adverse drug reactions result in over 770,000 deaths and injuries per year and cost each hospital involved around $5.6 million dollars.

To say the least, the medication error statistics are shocking and disturbing for patients and consumers. However, there are some very simple things that you can do to help prevent finding yourself in a medication error situation. Play it safe with your medications by following these safety steps:

1. Keep a detailed list of all the medications you take. Write down the name and dosage of each medication you take, including vitamins, minerals, herbal supplements, over-the-counter (OTC) medications, and prescription medications. This list should be brought with you each time you go to a doctor, pharmacy, or hospital. You might keep the list in your purse or wallet so that you don’t forget to bring it. If you don’t make a list, at least collect all of your medications and bring them with you.

2. Always tell your doctor and pharmacist about your drug allergies. Even if you have a long-standing relationship with your doctor and pharmacist, don’t forget to mention your known drug allergies when you’re prescribed a new medication. Also, check that new prescriptions are safe to use with all the medications you’re already taking.

3. Check your prescriptions for errors. Make sure that you’ve received the correct medication and strength each time you pick up new and refill prescriptions. Additionally, note if the refill’s packaging or the pill’s shape, size, or coloring has changed. Patients are often the first to notice a medication error. Do point out anything that seems amiss to your pharmacist before you take the medication.

4. Ask questions. You should take the time to ask your doctor and pharmacist questions about any new medication. You might want to take notes on what the doctor and pharmacist tell you about your medications, or bring someone else with you to help you keep track of the information. In any event, make sure to ask for clarification on any medical terminology that you don’t fully understand. If you can’t get clear answers on the medication, you aren’t comfortable with your provider, or he/she doesn’t take time to listen and address your concerns and questions, then it might be time to seek a different provider.

5. Know how to use the medication. Some medications come with specific instruction on how it should be taken – such as, with meals, with or without a particular fluid, avoiding the sun, not driving, not consuming alcohol, and so forth. Some medications must also be measured or taken multiple times per day. It might cause you to get the wrong dosage or lead to health issues if you don’t follow the instructions. If you have any doubt about how you should take, store, or use a medication, then you should always ask your pharmacist and doctor to clarify the instructions.

6. Know the side effects. The list of potential side effects that accompanies a new prescription more often than not gets a brief glance and then hits the trashcan. The side effects of a drug can range from bothersome irritations to life threatening medical emergencies and drug allergies. So, it’s vital that you know what the potential side effects are for all the medications you take by reading the list of side effects enclosed in your medication’s packaging -and- by asking your doctor and pharmacist what you might expect while taking the medication. Remember to stop taking the medication immediately and contact your health care provider if you develop signs of a drug allergy or serious side effect.

Considering that medication errors can have life and death consequences, these six simple safety steps shouldn’t be too difficult to follow.