Life and Health

Social Security’s disability program is expected to become insolvent in less than a decade. If Congress fails to solve the issues leading to this problem, Social Security will run out of money, which means they won’t be able to pay full benefits. Due to economic difficulties, people of the baby boomer generation are applying for Social Security disability benefits. Unfortunately, many disabled workers of this generation held jobs that were eliminated due to economic decline. These individuals can’t find new jobs, so disability income is the only option they know is available.

The deluge of applications flooding the Social Security office has created a backlog. The program has already been in the red financially for several years. The new influx of applications has created a load that threatens to collapse the structure entirely. Unfortunately, nearly two-thirds of initial applications are rejected. This brings the need for a lengthy appeal process, which might consume up to two years. Of the nearly 14 million people who receive federal disability benefits, more than 4 million receive SSI, more than 7.5 million receive Social Security, and more than 1.5 million receive both types of benefits.

In an attempt to save Social Security from collapsing, Congress is targeting overpaid balances from the various programs. In addition, they’re implementing enhanced enforcement. A deficit-reduction package they allowed is expected to bring at least a $4 billion boost over the next decade for the Social Security budget. This amount will help to invest in programs used for identification of people who no longer meet the qualification criteria. Those who don’t meet the criteria won’t be able to receive benefits. This process aims to limit the sparse funds only to those who truly need them. Although not everyone abuses disability benefits, studies have shown that there are some individuals receiving aid who aren’t truly disabled.

If the plan works, it could save approximately $12 billion over the span of a decade. Funds will be distributed to the backlogged applicants who need disability income. In addition to this, there will be measures in place to prevent those who don’t need benefits from getting them. There have also been recommendations made to boost the benefits for the elderly and individuals who have a long-term disability. In addition to this, suggestions have been made to slow the benefit growth for high earners. Raising full and early retirement ages has also been suggested.

Although death is something that everyone must face eventually, most people are comfortable talking about it. However, it’s important to make plans to ensure that loved ones who are left behind will be taken care of. In the past, most people relied on Life insurance coverage from employers but neglected to buy their own coverage if they lost their jobs. When people lose their jobs, they lose coverage provided by their employers. Since so many people have lost their jobs in the past decade, the issue of adequate Life insurance has become even more important. In addition to this, many employers have eliminated or cut their Life insurance coverage to save money. Purchasing Life insurance earlier in life is important. As people age, the amount of money required for sufficient coverage increases.

There are several reasons why it’s important to have sufficient Life insurance. The main reason for purchasing this coverage is to ensure that spouses, children or other living relatives have the money they’ll need to survive on and pay for final expenses. Losing an entire income, whether it is the main or supporting income, can cause serious financial difficulties for the surviving spouse. If there are dependent children, they will also be affected. Leaving enough money to replace income will greatly reduce the stress of worrying about finances that surviving family members would otherwise experience. In addition to providing enough money to cover living expenses, it’s also helpful for individuals to ensure that there is enough money to pay for final disposition.

When deciding how much Life insurance coverage to buy, it’s also important to decide how the money will be distributed. Some people choose a lump sum, and some people choose monthly payments. Each person’s situation is unique, so it’s important to choose a plan that fits individual needs. Life insurance can also be used to give surviving children a good start in life. Parents can choose to leave enough money for their children to attend college. The costs of education are rising continually. Although Life coverage doesn’t have to cover 100% of education costs, any amount that contributes is less money that children or a surviving spouse have to pay toward the total bill.

Another option is to leave a lump sum of money to children entering adulthood. The sum might be paid toward student loan debt, a down payment for a property or for the cost of starting a business. Another choice people have for Life insurance is to leave enough to impact their community positively. Every person has values and views that are important to them. Using Life insurance funds as charitable gifts is a good way to leave behind a legacy that supports individual values. It’s often difficult to set aside such money while living. However, for a small investment amount, large sums of money can be distributed after death. The overall idea is that the importance of Life insurance is too crucial to neglect purchasing it. Life insurance benefits outweigh the costs substantially. Contact one of our agents to discuss what options are available to ensure that loved ones are protected.

For some people, the preventive care options provided by traditional health insurance plans are not a benefit they want or can afford. Instead, a health insurance policy that covers them only in the case of a catastrophic event, such as a car accident or emergency surgery, is much more appealing and affordable. For these people, catastrophic coverage (also called major medical) offers the perfect balance between reasonable coverage and cost

What is Catastrophic Coverage?
Catastrophic coverage is generally sought out by individuals who do not anticipate needing full health coverage benefits but who do want the security of coverage in the event of an unexpected, emergency need.

Catastrophic health insurance often has a high deductible and low monthly premium, making it ideal for adults in their 20s who are without group coverage and adults between the ages of 50 and 65 who are primarily concerned with financial losses associated with heart attacks, accidents, and other serious illnesses. They are generally healthy, take few or no prescription medications, and would rather pay out-of-pocket for the occasional office visit to save on their monthly insurance premiums.

Deductibles
Catastrophic plans typically cover only major hospital and medical expenses above a certain deductible. The insured is responsible for paying the entire deductible, together with follow up doctor visits and any prescription drugs. Deductibles typically start at $2,500 and can be much higher-the higher the deductible, the less expensive the monthly premiums. If your treatment costs do not exceed your deductible, the insurer will pay nothing.

Limits
Most catastrophic health plans have lifetime maximum benefits payments. Once the expenses of your treatments have reached the amount of your cap, the insurance company will not pay for additional medical expenses and the policy will be voided.

Considerations
Before you buy a catastrophic health plan, consider:

• How much of a deductible can you afford?
• How extensive do you want your coverage to be?
• Do you need prescription medicines?
• Can you afford to pay for your own doctor’s office visits?
• Do you have any pre-existing conditions?
• Do you get sick often?

If you are expecting Life insurance to fully provide for your family’s financial security, then you should think beyond the Group Life insurance that may be provided by your employer. A group policy might give you a false sense of security in believing you have adequate coverage.

Although some employers might offer several times your regular salary in Life insurance benefits, you owe it to yourself to ask if this is enough. How long would this amount last given your current expenses and debts? There is also the question of providing for your children, and their higher educational needs. It is important to make the time and effort to calculate how much is enough to cover your family’s financial needs should the unthinkable happen. This is especially important if you are the sole wage earner for the family.

As a general rule, people should have seven to ten times their annual salary in Life insurance, particularly younger people with families to raise. Younger people need to be aware that now is the optimum time to purchase Life insurance; as their policy will cost much less than if they wait a few years.

If you are starting a new job or thinking about switching jobs, there is vital information about group life insurance benefits that you need to consider.

If you leave a job, the downside of most group policies is that you cannot take the coverage with you; it may or may not be portable. Even if the coverage is portable, the insurer will normally require conversion of your term policy to a higher priced Whole Life policy. Certainly, it is preferable to accept the high priced conversion policy rather than having no coverage at all.

Advantages of Group Life policies:

• Employers provide policies, most often at no charge to you.
• Policies can be used as a supplement to an Individual Life policy.
• Most policies are guaranteed issue with no medical underwriting required.

Disadvantages of Group Life policies:

• Group Term Life insurance has no cash value and cannot be borrowed against.
• There is no flexibility or choice with regard to the terms of the policy.

When it comes to Life insurance, don’t leave your family in a precarious financial position. Take steps to make certain your coverage is more than a fraction of what is really needed.

As the cost of health care expenses have continued to increase, health insurance has simultaneously become an important element to prevent people with health issues from choosing between not seeking needed care and going bankrupt. Whether privately purchased or employer-sponsored, health insurance plans do play a vital role in keeping health care costs in America at a somewhat manageable level for most people. That said, a lot of Americans are still unknowingly paying more than necessary on their medical expenses.

Whatever end of the financial spectrum you’re on, you’re probably more than willing to take a few simple steps if it would result in reducing your health care spending. You can actually significantly cut your medical expenses just by becoming familiar with your personal practices and health insurance plan.

Pay attention to your health. Regular exercise isn’t just good for the mind and body, it’s also good for your finances. Living a healthy lifestyle is one of the best financial moves a health insurance consumer can make. Countless studies have shown that those with a healthy lifestyle, including staying active and eating healthy, live longer and spend only a fraction of what those with unhealthy lifestyles do in health care expenses. If you want to lower your medical expenses and visit your physician less frequently, then make sure you’re following an exercise plan approved by your physician and avoiding unhealthy habits like tobacco use or excessive alcohol consumption.

Always remember to follow your health care plan. One of the main causes of patients having to pay a medical bill out-of-pocket is from visiting a doctor or medical facility that isn’t part of their particular health plan’s provider network. Claims for out-of-network providers may be paid at a reduced amount or rejected entirely. To help you avoid such often unnecessary expenses, ask your insurer for a complete listing of the doctors and hospitals in your network. Whenever possible, choose a doctor within the network. You can also make a plan for emergencies that would help you avoid costly co-payments for hospital emergency room visits.

Always know and follow the rules pertinent to your particular policy and insurer. These rules can vary from policy to policy and insurer to insurer; don’t assume one policy will be the same as another. For example, some insurance policies, such as health maintenance organizations (HMOs), are structured to only provide coverage for specialist visits when your primary care physician refers you to the specialist. On the other hand, preferred provider organizations (PPOs) could provide partial reimbursement if you visit an out-of-network doctor, but you’ll still be responsible for a greater portion of the bill than when using a doctor in your network. The insurance lingo itself can also be fairly complex. Ask your insurance agent if you have any difficulty understanding the specifics of your coverage.

A good rule to remember for most any type of insurance policy is that a higher deductible generally results in lower premiums. A lot of people pay high premiums in an effort to keep their co-pays down even though they’ve rarely had a need to visit a hospital or specialist. Those in good health, that don’t have a history of frequent hospital or doctor visits, and that don’t expect either element to change may be spending more in premiums than they would ever save in lower co-pays. In this case, it may be better to consider accepting a higher deductible to save money on your monthly premiums.

Maintaining a health insurance plan is just a necessary evil with the cost of health care services today, but do ensure that it isn’t the only way you’re trying to control your health care expenses. Take every opportunity to trim the fat and control your health care expenses. You surely have better places to spend your money than on costly, bad health care habits that result in additional costs, unnecessary doctor and hospital trips, and high payments.

Individuals have more access to health information than they’ve ever had before. A simple Google search on a specific health topic can yield advice from hundreds of different sources. Although access to the information has improved with the inception of the internet age, the resulting concern is often the quality and reliability of the various information and contributors.

One recent survey discovered 60% of all adults have looked up online health information at least once. Meanwhile, another study reviewed multiple online health-related studies and concluded that online health information aimed at consumers is often biased, inaccurate, or otherwise flawed.

So why is it that so many health websites publish misleading and inaccurate information?

Some entities operating health-related sites have a hidden agenda behind the information they’re providing to the consumer. Drug companies often finance groups promoting awareness for previously unrecognized conditions to literally create consumer demand for their new, expensive drugs – a tactic known as disease mongering. For instance, according to Dartmouth Medical School researchers, restless leg syndrome didn’t become a diagnosed disease until a drug company first developed a drug to treat it. Furthermore, a recently published study in the American Journal of Public Health concluded that many health advocacy groups taking funding from drug companies fail to disclose this fact to consumers.

Other entities operating health-related websites might be providing misinformation because they choose to disregard scientific evidence that disputes or contradicts whatever health belief they’re promoting. For example, despite the exhaustive research that led to the U.S. Institute of Medicine’s 2004 finding that there’s not a relationship between autism and childhood vaccinations, many supposed health websites are still scaring parents into thinking autism can be caused by vaccinating their children against potentially deadly diseases. One can run into a similar situation with Morgellons disease. Despite the current scientific consensus that Morgellons isn’t some new, unexplained dermopathy, but rather a manifestation of delusional parasitosis, many health websites are still making claims that the etiology is a parasitic infection.

The Solution. It’s simply not practical or affordable for an individual to make a doctor appointment for every health question they come across. So the solution isn’t to not use the internet for health questions or information, but rather to use it selectively. Here are two tips:

1. Before trusting a health-related website’s information, ask yourself the following questions:
   • Is the information current?
   • Where did the information come from?
   • Who’s contributing and controlling the website’s content?
2. Only use websites that have been certified by a quality rating organization, such as the Health On the Net Foundation (HON), or that have been otherwise deemed trustworthy. HON’s search engine will only show results from websites providing objective information that’s consistent with sound scientific evidence, such as by the Healthfinder.gov website. The nonprofit website FamilyDoctor.org, which is supported by the American Academy of Family Physicians, is another reliable source of medical information for consumers.

The internet can help individuals become more informed about their health and more capable in making some decisions about their health care, such as if they should get screened for a particular cancer based on symptoms they may be experiencing or their medical history. However, one should never use the information on any health website, regardless of its reliability, to self-diagnose and/or self-treat.

Autonomy, freedom, flexibility – there are certainly perks to being a self-employed individual. However, there are also some disadvantageous, mainly not having a benefit plan provided. You’re essentially on your own when it comes to obtaining Life, Health, Disability, and other insurance benefits. As a self-employed individual, you’re placing your family at significant financial risk if you don’t own a Life insurance policy. Such a policy would not only provide your surviving family with a monetary benefit if something was to unexpectedly happen to you, but also provide coverage for your debts related to sole proprietorship.

Why Is It Important for Everyone to Have Life Insurance? Any credible financial expert will tell you that you need the protection of Life insurance whether you’re employed by yourself or any other entity. The need is even greater if you have a family or loved ones reliant upon your income. Most people will be able to earn a living and support their family’s needs and lifestyle as long as need be. However, unexpected deaths happen everyday. Without Life insurance, an unexpected death could leave your family in an insurmountable financial crisis.

Imagine for a moment the financial repercussions your family might face should you die without Life insurance and they lost the financial support of your income. Would they be able to pay for your burial, funeral, and medical bills; maintain their current lifestyle; meet financial obligations like mortgages, car loans, utilities, credit cards; be able to send children to college?

If questions like the above give you any reason to question your family’s financial security, then you need to have an effective Life insurance plan in place to ensure that your family’s financial needs and obligations will be provided for should you pass away.

Why Is It Vital for Self-Employed Individuals to Have Life Insurance? Everyone clearly needs Life insurance, but this need is especially important for the self-employed. One of the main reasons for this is that the law doesn’t distinguish between your business and personal assets. In other words, you’re legally financially responsible, whether that be with personal or business assets, for any and all debts related to your business.

Let’s say you’re the owner of a sole proprietorship and you die. The business will legally come to an end in the eyes of the law. The losses and/or debts related to your business, such as from business loans; federal, state, and local taxes; money due to vendors, contractors, suppliers, and employees; lease or mortgage payments; and so forth, are now the responsibility of your estate. The result – your surviving family could be forced to sell off your personal assets to pay the business-related financial obligations and debts, thereby leaving them with less, if any, money to provide for the family’s ongoing personal financial needs.

Such a scenario can be avoided by having a Life insurance plan that will adequately cover both your business-related debts and your family’s ongoing financial needs. Our financial professionals can help you to determine your Life insurance options and which would best fit your unique business and personal needs.

Consumers who are willing to accept the generic form of popular medication brands will soon have the benefit of saving hundreds or thousands of dollars. During the following two years, six of the 10 most popular drugs will lose their patents. This means that other companies are free to make the medications and sell them. By doing this, they could provide up to an 80% discount for buyers.

To illustrate an example, consider the drug Lipitor, which is a substance used to lower cholesterol. It has been one of the world’s top-selling drugs in previous years. Its patent expires in November. The drug’s generic equivalent is atorvastatin. Once the patent has expired, millions of people will be purchasing atorvastatin, which will provide a new way for generic drug manufacturers to increase their sales greatly.

Zyprexa, Enbrel and Plavix are also facing upcoming patent expiration. Zyprexa is an anti-psychotic drug that has been selling well for several years. However, the patent expires in October. Plavix, which is a blood thinner, has a patent that will expire in May, 2012. Enbrel is used to treat rheumatoid arthritis and psoriasis. Its record sales will end in October of 2012 when the patent expires.

One issue that has been debated during the past several years is whether generic drugs are as good as brand-name drugs. The Federal Drug Administration reports that generic drugs have the same quality, purity, strength and stability as popular brands. An upcoming publication in International Angiology will show that astorvastatin is just as effective as Lipitor. This article is based on official studies conducted to compare the two drugs.

There is one negative issue surrounding generic drugs, which is an uneven safety record. In 2008, the generic blood thinner called heparin was recalled by Baxter Healthcare. They found that the drug was contaminated. More than 80 people in the United State and Germany died after ingesting the tainted medication. Although it’s uncertain how many of these deaths were actually caused by the drug, the discovery was detrimental to the company and generic drug sales.

Several studies have shown that some generics don’t perform the same way brand-name drugs do. Researchers at Johns Hopkins University reported in April that there is about a 10% chance that switching from a brand to generic anti-epilepsy medication could alter the peak concentration of the drug reaching the body. This means that the cost isn’t the only difference between the two types of drugs. Due to rulings in June from the Supreme Court, consumers are no longer able to sue the creators of prescription drugs for any side effects or complications that aren’t indicated on the label. Switching to generics isn’t necessarily a bad idea. However, it’s important to be cautious when making the switch.

The National Coalition on Health Care reported that U.S. health care spending was more than $2.4 trillion in 2008. Although health care reform may or may not come to full fruition, current medical costs remain astoundingly high.

Aside from the few and far between people that somehow seem to be extraordinarily healthy, most of us have certainly felt a financial impact from continually rising medical expenses. After all, it only takes one trip to the local emergency room or one referral to a specialist to find yourself bombarded with costly medical bills. The good news is that you don’t have to wait on health care reform to save the day. There are several ways that you can proactively reduce the cost of your annual health care expenses and save yourself some serious money:

1. Trade in your name brand prescription for a generic equivalent. Generic drugs are usually accompanied by a lower co-pay, which could save you anywhere from $10 to $50 per prescription. Consult with your physician on your existing prescriptions, as well as any time you’re prescribed a new drug, to determine if he/she would be willing to prescribe a generic drug instead of the more costly name-brand drug. This won’t always be possible for each and every drug, but most common, older drugs will have a generic equivalent.

2. Select a primary care physician. The concept of urgent care centers has made them a quick, convenient, and economical alternative to primary care physicians. However, these entities usually don’t attend to routine medical needs and wellness. It’s also very difficult to develop any type of relationship with the staff since you’ll rarely see the same doctor each time. This is why it’s still very important to select a primary care physician with whom you’ll be able to build a relationship and trust. Likewise, you’re likely to save some money and time by your primary care physician knowing your medical history and being able to make more informed decisions when it comes to your health, diagnosis, and treatment.

3. Routinely review all medications you take. Your primary care physician should routinely ask you about each medication you’re prescribed. Be sure to address how long you’ve been taking each of your medications and their effectiveness and side effects. You and your doctor might decide to discontinue a medication you no longer need or that isn’t effective.

4. Don’t automatically get on the new drug bandwagon. You can’t watch an entire television program nowadays without seeing an ad for some new drug purporting itself as the latest miracle in medicine. Some might have a few advantages over their older counterparts, but the real question is if the new, often more expensive drug is worth the added expense. Make sure that you discuss with your physician the cost difference verses any added health benefit before switching to a new drug.

5. Only make an appointment with a specialist when it’s truly necessary. Your primary care physician can often handle a medical problem without you making a more costly visit to a doctor specializing in a particular branch of medicine, such as a dermatologist or rheumatologist. You might consider changing primary care physicians if they seem to refer you constantly to specialists for every medical ailment you come to them about.

6. Remember that emergency rooms are for emergencies only. If you don’t have an actual medical emergency, make an appointment with your primary care physician, go to your physician office’s after-hours clinic, or, as a last resort, use an urgent care center. For non-emergencies, all of the above options will be cheaper than a trip to the emergency room. Before an emergency arises, you should know what your emergency room co-pay is; the names, addresses, and phone numbers of all the hospitals included under your health care network; and what ambulance services your plan covers. Your insurance card should have a phone number for 24-hour emergency assistance that you can call if you’re unsure how to respond to an emergency.

7. Question the necessity of expensive testing. Sometimes medical tests are necessary, but other times they’re just another pointless and costly medical bill. Ask if the test is absolutely necessary before allowing your physician to schedule it.

8. Don’t go overboard with screening. Screening tests can indeed catch many diseases in their infancy stages. That said, too much of anything can be bad. Screening isn’t an infallible process, and if a false alarm does sound, you can be subjected to unnecessary treatments and their costs. Let your medical history and age guide your screening, not what test is popular month-to-month.

9. Don’t jump the gun. Some medical problems, such as a potential stroke or heart attack, require you to seek immediate medical attention. However, more often than not those minor aches and pains, stomach viruses, common colds, and so forth will subside without a visit to the doctor. Give your immune system and/or less costly over-the-counter medications a few days to work before you see the doctor.

10. Be healthy. A healthy lifestyle that includes a healthy weight, routine exercise, alcohol moderation, avoidance of tobacco, routine medical check-ups, and taking all medications as prescribed will help you lower your medical expenses and keep any existing chronic diseases under control.

From maternity leave, parenting and maternity classes, and readying the new baby’s room, expectant parents have a lot on their plate as they prepare for a new baby. The tasks you need to accomplish can be overwhelming, but you certainly don’t want to forget to protect your child’s future financial well-being. One area you’ll want to address is your Life insurance to determine if your current coverage will still meet the needs of your soon-to-be larger family. As you examine it, you’ll want to pay particularly close attention to the following three areas:

1. Type of Insurance. Although Life insurance policies come in various shapes and sizes, most fit under either Permanent Life insurance or Term Life insurance.

Term policies will provide you with protection for only a specified period of time and these policies don’t accumulate a cash value. Evaluate term policies to determine if they will still offer a sufficient coverage to protect your growing family. On the other hand, Permanent Life insurance policies can cover you for your entire life. They also accumulate a cash value that can be borrowed against for future expenses, such as your child’s college tuition. Do keep in mind that availability, options, and cost are greatly influenced by your health status and age. As a general rule, you’ll find the best Life insurance coverage and rate while you’re young and in good health.

2. Coverage. The addition of a child only exaggerates a couple’s desire and need to protect their family should the wage earner unexpectedly pass away. Do keep in mind that each parent, even if one isn’t earning a wage, should have a Life insurance policy. It’s a common misconception that a stay-at-home spouse doesn’t need to be insured because they aren’t financially contributing to the family. In reality, all the childcare, household chores, and so forth would still need to be done if the stay-at-home spouse were to pass away. These duties would become expenses that weren’t present when the spouse was alive. Having Life insurance on the stay-at-home spouse allows the surviving spouse to remain at his/her job and hire someone to perform the duties.

3. Beneficiaries. Should you pass away, the funds from your Life insurance policy become part of your estate if you don’t have designated beneficiaries. You want this money to be available immediately for the care of your child, not tied up in your estate. Therefore, it’s important for you to update your beneficiary designations soon after the adoption or birth of your child. Be sure to choose both a primary and contingent beneficiary.

In closing, insurance might not be as fun as baby shopping, but you can see how important it is to meet with your insurance agent and ensure that your Life insurance policy adequately meets your growing family’s needs and protects your child’s future financial well-being.