Life and Health

Searching for and evaluating private Health insurance, especially individual and family insurance coverage, has always been challenging. But a new Insurance Finder on HealthCare.gov just made the process a little easier. This new tool will help individuals find the Health insurance that is best suited to their individual needs. It was created under the Affordable Care Act to help consumers navigate the complicated insurance marketplace.

The new information can be found at http://finder.healthcare.gov/, and explains topics such as:

• COBRA Coverage
• Coverage for Young Adults Under Age 26
• Special Enrollment in Spouse’s Job-based Health Plan
• Health insurance Plans for Individuals and Families
• Special Options for Individual Health insurance
• Pre-Existing Condition Insurance Plan (PCIP)/High Risk Pool
• Finding Affordable Care

Furthermore, to help consumers make more informed choices, HealthCare.gov also includes, for each insurance product, two notable percentages that have never previously been available to the public

• The percentage of people who applied for coverage and were denied
• The percentage of applicants who were charged higher premiums due to their health status

The information provided on the website makes the insurance marketplace more transparent than ever before, so it is easier to evaluate the quality and cost of Health insurance plans. After reviewing the data, it is always important to speak with a professional, licensed insurance agent who can help you determine which plan best meets your medical and financial needs.

Most Americans pride themselves on being savvy bargain hunters. Online coupons, online discounts, and ease in Internet price comparison on everything from a hammer to a safari vacation has made it faster than ever for a consumer to hunt down bargains. However, there are some things that are more important and complicated than just getting the cheapest and fastest deal.

Life insurance is a perfect example. There’s an array of online Life insurance companies offering fast and free Life insurance quotes. Although there is an appeal in convenience and a supposed bargain, Life insurance isn’t a one-size-fits-all purchase. The “right” Life insurance involves much more than cost; much like a homebuyer doesn’t just consider cost when purchasing a property. If typing in home criteria and clicking the “buy now” tab on the cheapest home sounds unwise, then buying Life insurance this way should seem just as imprudent.

Of course, cost will be a consideration when purchasing Life insurance, but the consumer should also look at other elements:

Determine the Policy Value

“You get what you pay for” is an apt adage for Life insurance. What an online insurance company touts as a bargain policy is usually nothing more than a watered-down policy, as all Life insurance is priced based on the supplied benefits, offered features, and overall value. Many policies will appear to be similarly composed, but the most subtle variation can result in a significant cost, value, and benefit difference.

Determine What Your Individual Needs Are

There are three main types of Life insurance: Whole Life, Term, and Universal life. Each of these types is also available in dozens of unique policy variations. It might seem daunting to evaluate the benefits and features associated with each type of policy, but that is truly the only way to guarantee that you obtain the best policy for your specific need. Opting for the cheapest policy, regardless of whether it actually meets your need, can actually harm your long-term financial plan.

Most online Life insurance quotes involve a term Life insurance policy (coverage for a limited time for a fixed rate of payment.) The cheaper the policy is, the more it will be stripped of benefits, value, and features. The limited coverage and stripped benefit elements of online insurance may not be congruent with your unique insurance need or long-term financial plan.

Consulting with a Knowledgeable and Experienced Professional

Life insurance, when purchased correctly, can be a valuable asset. However, it is also a dedication of money, and you want to make sure that every dollar is going toward a product that is best for you and your beneficiaries. An insurance expert can help you analyze your insurance need, lay out the best applicable options, and tailor the product to accommodate current and future needs. Best of all, if you have a question or concern about Life insurance, you aren’t limited to an online “FAQ” page.

Using a Reputable Life insurance Company

Reputable Life insurance companies haven’t built their reputation by failing their customers, failing to disclose the terms and conditions of their products, or being lax with the personal information that a client has entrusted them to keep secure.

It is also important to make sure that the insurance company has the financial strength and longevity to meet the obligation of the Life insurance policies that they sell. Financial strength of the insurance provider is especially important if you are interested in a policy that is going to provide permanent Life insurance. Looking at the Life insurance rating for the company can give you a good idea of their financial strength.

When a parent dies, the emotional toll on the family is devastating, and when it happens to a stay-at-home parent, the repercussions of their death go far beyond the pain of grieving. Most employers offer Life insurance plans to wage-earning parents, but what if the parent’s job is within the home?

The emotional support provided by stay-at-home parents is immeasurable, but what can be measured is the value of the services they provide on a daily basis. Think about the overall worth of childcare, laundry, cooking, reliable transportation, grocery shopping, and keeping the house clean and organized. Childcare alone can cost around $10,000 a year at a local preschool or day-care center, with infant and toddler care being more expensive. Although stay-at-home parents might not earn a paycheck, their work around the house financially benefits the family, and their death could cause a serious financial crisis.

If a stay-at-home parent were to become ill or pass away, most families have some sort of support system in place to help get the kids to school or assist with household chores, but this help cannot last forever. By purchasing a Life insurance policy for stay-at-home parents, families can be relieved to know that their financial needs will be covered during times of loss and sorrow.

There’s no set guideline as to how much insurance a person should carry, but here’s a good rule of thumb. Take the number of years until your youngest child graduates college and multiply that by your current annual salary; your policy should be equal to or exceed this amount. As for stay-at-home parents, calculate their hidden salary by using the estimated value of all the services they normally provide. Most importantly, the policy should allow the family to maintain their current lifestyle if a parent should die.

Generally speaking, there are two types of Life insurance; Term and Permanent Life insurance policies. Term Life insurance is the more affordable of the two in the short run. The benefactor selects the length of the policy, usually in multiples of five years, and of course the face amount. Benefits are only paid out if the policyholder dies during the length of the policy’s term. Since renewing Term policies can be expensive, some individuals choose to convert their plans over to Permanent Life insurance coverage. Talk with your insurance representative about including a conversion privilege in your term policy, so you won’t have to jump through hoops if you ever decide to covert to Permanent Life insurance.

Permanent policies are different in that they cover individuals for their entire life. And with some policies there’s also a cash value component, which unlike long-term certificates of deposit, grows tax-deferred. Furthermore, policyholders are able to borrow against the cash value of their policy, for financing larger expenses. Permanent policies cannot be canceled by the insurance company, plus their benefits are usually guaranteed unless premium payments have been delinquent. The price of permanent policies remains permanent as well, meaning that families can expect to pay the same premium costs throughout the policy’s duration.

Whether families choose a term or permanent policy, work-at-home parents deserve the coverage of adequate life insurance. The financial benefits insurance provides can help families get through a very difficult time.

Net worth is an important barometer of financial success for many investors. Your net worth shows how leveraged you are, how you are progressing toward your financial goals and how effectively you are retaining the wealth that you accumulate over the years. But net worth is a number created from many different underlying investments and can offer an insincere indication of how strong your financial foundation is. Depending on the assets that comprise your net worth, you might actually be on insecure financial footing no matter how big the number looks.

Defining Net Worth

Your net worth is the difference between your assets and your liabilities. In an ideal situation, your assets will be greater than your liabilities and will result in a strong net worth. A strong net worth shows that you are not over-leveraged and can act as a barometer toward your achievement of retirement and other financial goals. A low net worth can indicate a dangerous debt situation, financial goals that are in danger of not being achieved, and a shaky financial foundation for your family.

Net worth matters because it is a resource that can be tapped into if you need cash. Whether you need it to sustain your lifestyle, make repairs to your home or car, or to take a trip, your net worth is money that you have in reserve and that you can access when you need it.

The Assets behind Your Worth

Many people have the majority of their net worth in cash and investments that are easy to sell (or liquefy) such as mutual funds and stocks. But when you have a net worth that is mostly made up of real estate or other illiquid investments then your net worth is not as accessible as it should be. In addition, because the value of investments like real estate can shift up and down easily it leaves your net worth at risk of losing value just when you need it the most.

If your goal is to create a conservative and liquid net worth then you might consider adding Life insurance and annuities to your financial plan. Life insurance policies have cash values that can be drawn or borrowed from when you need to access cash.

Likewise, annuities offer a great place for your cash to grow, but are also easily liquidated should you need to access your cash sooner than anticipated.* In addition, they can provide a guaranteed income when you retire, unlike other retirement vehicles.

Remember, your net worth is only of value if it’s accessible, indicative of financial progress, and backed by assets such as Life insurance policies and annuities which increase in value over time or offer certain guarantees. Otherwise, it’s nothing but a number offering a false sense of security that might help you sleep at night but won’t keep a roof over your head.

*Liquidated earnings are subject to ordinary income tax, may be subject to surrender charges and, if taken prior to age 59 1/2, may be subject to a 10% federal income tax penalty

Most of us don’t enjoy thinking about our own funeral. If you’re like many, the mere sight of a casket or urn is enough to send shivers down your spine. However, if you take some time to plan ahead, you could save your family tons of heartache and money down the road. According to a 2007 AARP survey, 34% of Americans over the age of 50 have done some pre-planning and 23% have pre-paid a portion or all of the funeral or burial expenses for themselves or someone else. That means a whopping 20 million people age 50 or older have already paid for at least some funeral expenses. Are you one of them?

Why pre-plan?

If you’ve ever planned a last-minute funeral, you know first-hand that it’s an extremely stressful event. Families planning an unexpected funeral often argue about what their loved one would have wanted. They are forced to make hasty decisions during an already painful time.

To top it off, these families also face the exorbitant price tag of their loved one’s funeral. These days, the traditional funeral and burial can cost up to $10,000 or more, depending on your location. Thanks to inflation, the cost of funerals continues to rise, year after year. That’s why pre-planning is so important. If you don’t want to leave your family with the financial and emotional burden of planning your funeral, you should consider pre-planning.

Pre-planning 101

If you’re ready to prearrange your funeral, simply contact the funeral home of your choice and ask about their pre-planning options. They might ask you to schedule an appointment with a pre-planning specialist. During your meeting, you can select the funeral merchandise and services you desire down to the smallest detail. The funeral home will record all of your wishes. When the time comes, all your family has to do is contact the funeral home, and they will put your plan into motion.

Funeral homes can help you set up a funeral pre-payment plan, as well. If you choose to pre-pay for your arrangements, many funeral directors will offer a price guarantee. That means you can lock in funeral or cremation services at today’s prices. Whether your funeral takes place three or 30 years from now, the price will not rise. This could save your family thousands of dollars in the long run. Once you have made your funeral prearrangements, you can elect to pay a portion or the entire bill before your death. Final expense insurance is one popular way to fund a prearranged funeral.

Final Expense Insurance

Also known as burial or funeral insurance, final expense insurance is a Life insurance policy with a low face value, usually between $5,000 and $50,000. You buy Final Expense insurance directly from an insurance company-not from the funeral home. You can name any beneficiary, typically a family member, who would make the claim and receive the money upon your death. That beneficiary would then be responsible for using the money to pay for your prearranged funeral services. If your benefit amount exceeds the cost of your funeral, the beneficiary gets to keep the difference. For example, if you have a final expense policy for $14,000 and your services and burial end up costing $10,000, your beneficiary would pay the bill and pocket the extra $4,000.

Endless advantages

Preplanning and prepaying for your funeral offers countless benefits, including the following:

• It ensures your family isn’t left with the stress of hastily planning a last-minute funeral.
• It guarantees that money will be available for your funeral service and your final wishes will be followed precisely.
• It removes financial burden from your loved ones.
• It allows you to lock in services and merchandise at today’s prices and avoid the rising costs of inflation.
• It guarantees your final arrangements will be handled even if you have no surviving family members left.

By deciding on the details and paying for your funeral now, you’ll gain peace of mind that your wishes will be followed to a tee. And perhaps more importantly, you’ll save your family a lot of stress, heartache and cash down the road.

As you approach retirement, it’s natural to worry about your retirement portfolio. It is also natural to become frightened during a recession, such as the ongoing downturn that started in 2008. During tough times, your entire strategy can suddenly become worthless. The supply of cash that you have carefully built over your working life is gone, vanished like so much dust. This is downright scary. What shall you do? Many individuals in this same situation end up taking part-time jobs in order to support themselves.

An immediate annuity can help you regain liquidity. Buying an annuity is like buying a monthly pension check. It is an insurance policy that pays you a lifelong income stream in exchange for a lump sum. There is no age limit for purchasing an immediate annuity; you can buy one at age 80 or 90 if you want. When the payments start is entirely up to you. Once you decide on a date, the payments are orderly and on time, appearing on that date every month for the rest of your life.

Consider several advantages to immediate annuities:

• Your insurance agent will be able to tell you what the monthly payment amount is based on your lump sum.
• The annuity is backed by the financial security and assets of an insurance company, so do your research before buying.
• This product affords you, the beneficiary, immediate peace of mind since the payments start when you choose. You can rest completely assured of a secure, stable long-term monthly income. You can even add an inflation rider to the policy so that your income will not get eaten by inflationary pressures.
• Since immediate annuities are different from stocks and bonds, there is no worry about volatility or market fluctuations. The value of the annuity remains constant. You have the protection of knowing that every month; the money will be deposited into your bank account.
• There are no fees of any kind to be paid – no management fees, no setup or administrative fees, and no annual fees.
• Favorable tax treatment – Only a small portion of income generated from an immediate annuity funded with after-tax dollars would be taxable. This is because part of every payment is considered a return of principal.

Is an immediate annuity right for you? That depends on your unique needs, of course. For those seeking to secure a future income stream, immediate annuities are a perfect way of achieving a guaranteed monthly income which will not fluctuate due to external forces. The peace of mind possible with having an income stream one cannot outlive should not be ignored.

Liquidated earnings are subject to ordinary income tax, may be subject to surrender charges and, if taken prior to age 59 1⁄2, may be subject to a 10% federal income tax penalty. Guarantees and payment of lifetime income are contingent on the claims paying ability of the issuing insurance company.

When you are considering Homeowners or Auto insurance, you probably count on your insurance agent to assist you in understanding the many options available. For instance, what deductible should you choose? Should you pay for emergency road service or not? Should your teenager have his or her own policy? How much coverage do you need? You value this relationship, but you are wondering if you might get a better deal on your Life insurance if you buy direct and cut out the middleman.

Although it is possible that you might attain a better price, it is also likely that you might not. More importantly, you might get what appears on the surface to be a better deal, but on closer examination is not as good as you originally thought.

If you call a Life insurance company and apply over the telephone for the Life insurance they quote you, you might be in for several surprises, either now or later.

First, cutting out your insurance professional does not always result in a lower Life insurance premium. It does, however, mean that you will have to depend on an 800 number and the person answering the phone. As with any telemarketing organization, there is often high turnover in these positions, so you might never develop a relationship you can rely on.

Second, you should be warned that all “comparable” policies are not created equal. Although insurance plans might appear the same on the surface, when you examine the details, there could be extensive differences. The period where the premium stays the same (for Term Life) might vary; the guaranteed and current interest rates might vary (for Universal Life); the investment options might not meet your needs (for Variable Life); and the interest/dividend crediting might not be what you think (for Whole Life). There are many riders, options, and other features that can make one plan more suited to your needs. Unless you know about these options and can tell the voice at the other end of the phone exactly what you need and want, you might end up with the wrong insurance policy altogether.

Third, your trusted insurance professional knows you and understands your needs. Someone you have never talked to before might not know about your disabled daughter, your planned pregnancy, or your need for spousal insurance. If they don’t know you, how will they know to ask about these things? An advisor who knows you and your family is in a much better position to make sure you obtain both the right type and right amount of Life insurance. They can also decrease the likelihood that you are surprised, after underwriting, with a much higher premium than you were originally quoted.

Fourth, you might have existing Life insurance that can be adapted to meet your current needs. This reduces or avoids underwriting and might save lots of money in new premiums.

Your financial situation is complex as well as ever-changing. Working with a professional who knows you and can meet with you face-to-face can help you avoid problems, and might help prevent costly mistakes when you are buying Life insurance.

For most people, death is not an easy subject. It is uncomfortable thinking about no longer being alive, not seeing one’s children grow up, leaving one’s family — perhaps a husband or wife, children, brothers and sisters, parents, and friends. Yet death is one common factor that binds the entire human family. We might not all be rich and famous, and in fact might be important only to our family and close friends; yet what happens to the rich and famous happens to the not-so-rich and obscure: Eventually we will all die.

It is easy for most people to put aside thoughts of dying as something that happens to other people; or if they think of it happening to them, only think of it as happening some time in the distant future. Maybe that will be your future, but maybe not. In the blink of an eye, you might go from apparently having years of life ahead to being killed in a car accident. Death is not something that happens only to old people, nor only to people after a long illness. No one is invincible.

Although it might be tempting to put off getting Life insurance until you are older, Life insurance is much less expensive when you are younger. Younger people are typically healthier, which usually translates into lower insurance rates. If you buy a Permanent Life insurance policy, the premium rate you sign up to pay at the beginning will stay the same for the life of the policy, even as you get older, and even if your health deteriorates. This is why it is important to get the policy when you are young — the rates are lowest then!

The question is not, “If I die … ” but rather becomes, “When I die … ” When it comes to your financial and familial responsibilities, how would you answer that? When you die, what will happen to your family? What will happen with your debts? Are they prepared to assume your financial responsibilities after your death? Or are you prepared to take care of them even after you die? You might not be able to save up enough money today or even in the near future for you to pay off all of your debts; however, you can buy enough insurance to pay off all your debts, in the event of your death, so that your family will not be burdened by it.

Although you as a person are irreplaceable, your income can be replaced with Life insurance. If yours is the main income in your family, this is vital. However, even if you don’t produce an income, but provide services in your family that would take money to replace (such as caring for young children), having Life insurance would still be wise. Having Life insurance to cover your debts and to take care of those you leave behind is the caring thing to do. Contact one of our qualified insurance professionals today to determine the type and amount of coverage that’s suitable to your unique circumstances.

We hear the stories every day. People dying suddenly from heart attacks or freak car accidents. That makes us think, what if that happened to me? Consider these 10 reasons for owning Life insurance:

1. Debts – What happens to your debts if you die right now? Existing bills, medical and funeral costs. It’s a debtor Mount Everest on which you strand your family without Life insurance. Who covers the expenses you have amassed already and those you leave behind?
2. Your family may lose their home – Will they face foreclosure? Be forced to sell? They’ve just lost you now they may lose their home, too. Who will be there to pay the mortgage when you can’t be?
3. Family lifestyle – Most couples in this day and age must both work to sustain their families. Think of the vacations and Christmas mornings your income provides.
4. Income for necessities – What about school for your children? Do you envision them going on to college? Who will pay when you’re gone?
5. Your spouse’s sleepless nights – They already have to deal with an empty bed. How many sleepless nights will there be for him/her? Life insurance assures peace of mind
6. The legalities – There may well be taxes and legal and probate costs to cover. Life insurance can leave tax-free money to your beneficiary to cover such expenses.
7. Quality care for your kids – What about the expenses that health insurance doesn’t cover? Will they go to the better doctors? Does your son depend upon asthma medication? Does your daughter need braces? Will they one day? If so, who pays for that without you?
8. Your extended family – With uncertain times, with retirement benefits vanishing, who will care for your parents as they are too old to care for themselves? Will you be there for them as they were there for you?
9. The Unexpected – A young mother killed in a car crash. Six months later, her husband dies of a heart attack. They left five minor children. You may think “my spouse will take care of them” but what if he/she can’t?
10. Pride – How do you want to be remembered? As someone who thought of his family enough to provide for them in your absence?

In closing, are you even eligible for Life insurance? At rates you can afford? As we age, our health issues become paramount. Tomorrow you will be older than you are today. Tomorrow is promised to no one. The time to think of Life insurance is today.

Almost everyone needs Disability insurance. Think about it. Your capacity to earn a living is crucial. Your income makes it possible to buy food, make mortgage payments, provide for your children, take a vacation, and countless other things. Many faithfully pay premiums for car, life, homeowner’s insurance, and perhaps even a pet’s medical insurance, but they neglect this extremely important protection, Disability insurance.

There are few things as disruptive to a family’s happiness as having a parent, or maybe both, lose his/her income due to accident or illness. When income is drastically reduced, it creates stress and unmet needs and expectations. It often creates feelings of guilt in a parent. Life is hard without a reliable source of income.

A LIFE Foundation study states that 70% of working Americans could not be without income for more than one month without serious financial difficulty. Surprisingly, the same study states that one of every four Americans couldn’t last a week if they were seriously injured and unable to work. Clearly, the answer to the question, “Does almost everyone need Disability insurance?” is a resounding “Yes!”

It is important for an individual, and especially important for a family, to have a financial plan. Disability insurance should be one of the foundation stones of everyone’s financial plan, because it protects such an important asset – your income.

Other statistics need to be considered. The Senate Finance Committee states that 70% of people between the ages of 35 and 65 will become disabled for three months or longer and that 90% of injuries will occur away from work.

After you make the decision to purchase Disability insurance, there are still important questions to be answered and decisions to be made. “How large a benefit do I need; how much will it cost to purchase a plan with that level of protection?” “Does my spouse need this kind of policy even if he/she doesn’t work or has a small income?” “How long is the waiting period before I start receiving checks?” “Does my employer offer a disability plan that I am not aware of?” “Will I need this kind of insurance after I reach age 65?” All these and many other questions need to be taken to a capable, experienced insurance agent who is a specialist in this type of insurance. This is an important decision with a great number of complicated considerations, such as, “Is the plan guaranteed to be renewable?”, “What is the maximum benefit period?”, and “Which occupation class does my job fall into?”

Once the decision is made and the policy is purchased and in effect, you can breathe a sigh of relief. You have done what is necessary to protect your happiness with Disability insurance. More importantly, you have protected your family by providing for them if your ability to work is interrupted.