Life Insurance

Final Expense Insurance

If you’re getting older or if you suffer from a terminal illness, you may be thinking of how you can help your family cover expenses in the event of your death. With all the new procedures and good medical techniques that are common now, people are living to be much older than they did just a few decades ago. This does not mean that it is not important for those who are over sixty to have good insurance coverage; it means that it is time to get serious about it if there is not a policy yet in place.

The following are some reasons why final expense insurance for the elderly is so important:

· Covers Final Expenses – As the title of the insurance describes, this insurance covers all final expenses so that families are not left to scramble to get the funds together. The policy pays the person who is listed as a beneficiary who then takes care of the final arrangements. There is no need to put your loved ones in financial straits when it is so easy to apply for and be approved for final expense insurance.

· Pay for What You Want – The elderly may have very distinct wishes as to their final resting place and what they want for their arrangements. When final expense insurance is purchased, the final arrangements can be set at that time and the insured can have their funeral home set as the beneficiary so that the loved ones do not have to do anything. This allows the deceased wished to be carried out in the way that they want and they have the security of knowing that they are taken care of even in death. The amount of the policy can be set to cover these costs including any expenses that may have increased during the life of the policy holder.

· Convenient and Easy to Pay Off – Those elderly people who opt for this type of insurance can pay a small monthly fee to make sure that their policy stays in place. Even those on a fixed income can afford this type of insurance. Most insurance companies can automatically deduct the cost of it from the insured’s bank account so that they do not even have to remember to make the payments each month.

It is just sound planning to have final expense insurance. Those who are elderly should consider this insurance but it is not limited to those over sixty. Anyone who wants to make sure that their arrangements are carried out the way that they want them to, should have this insurance in place.

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Life Insurance

Is Life Insurance worth it?

Let’s start with life insurance. Why? I believe that life insurance is the most important type of insurance one can have. Let’s take a look at today’s funeral costs. It costs almost $7,000.00 for the average funeral in 2013. Now Social Security will only pay $255.00 at most.

I know it is uncomfortable to talk about death but consider this: Do you want your loved ones to carry the burden of your final expenses? How do you think that loved one will feel if they have to put the charges on a credit card and after your funeral have to see the charges from the funeral home? If you can get life insurance I strongly recommend it. For a little money each month you can protect your loved ones from this heavy burden.

The other reason why you should get life insurance is how do you expect your loved one to carry on with the lifestyle they have become accustomed to when you are around? Do you own a home will your loved ones be able to keep and live in that home or will they have to sell it? These are the two most important reasons for getting life insurance. Now if you are like me one of those unfortunate people who can’t get insurance because of your health I would like to suggest getting a mutual fund.

Why you ask? With the mutual fund you can name a beneficiary and put the money away and maybe have a little extra for your loved one to invest and to take care of themselves. What about any children? You need to make provisions for your children as well. These are just some of the reasons you should have life insurance It is not to take care of the dead but who you leave behind. So when you look at your spouse and children even if you have no children just remember you have family that loves you and wouldn’t you want to leave them with pleasant memories?

The pain of losing a family member is hard enough don’t compound it by burdening your loved ones with your final expenses. While we’re at it Let me explain you want life insurance not accidental death and dismemberment. I know I have had family members who made that mistake only to regret it later on.

Nate Akers
Insurance Expert
Licensed Insurance Agent

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Health Insurance

What if you still cannot afford health insurance in 2014??

Most of the significant provisions of the new healthcare reform law take effect in 2014. By that year, there will be a federal exchange market–as well as individual markets in many states. These exchanges will be open to individuals and small businesses, some of which will be subsidized.

Said markets will be heavily regulated, in order to ensure that they follow new consumer protections guidelines. In addition, people with pre-existing conditions will have more options than existing high-risk pools or costly guaranteed issue health insurance plans.

Despite these changes, some are still worried that insurance will remain beyond their reach. If the cost of a health plan is still prohibitive financially, will a person be responsible for paying the penalty levied as part of the individual mandate?

Fortunately, that will not be the case. There are some exceptions, specifically included to avoid such a situation:

  • You can apply for a financial hardship exception from the penalties, if you lost your job or had your hours cut.
  • You are not subject to the mandate if your annual income is so low that you are not required to file a tax return.
  • You will also not be penalized if the least expensive health insurance plan available on the exchange is still more than eight percent of your annual income.
  • You will still be eligible to get subsidies to buy affordable health insurance on the exchanges even if your employer offers health insurance. If the employer’s plan costs more than 9.3 percent of your income (and you earn under 400 percent of the federal poverty level).
  • The mandate penalties will be adjusted with the cost of living; if there is a deflationary economy, the amount will go down from the projected 2016 levels: the greater of $695 and $2,085 for individuals and families, respectively–or 2.5 percent of household income.

Nate Akers
Insurance Expert
Licensed Insurance Agent

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Health Insurance

Changing Healthcare 2014

Starting January 1, 2014, four of the biggest changes in the reform legislation are set to be implemented. This is when the “rubber will meet the road” and it all goes from theory into practice. Whether or not this is a big success or another financial burden on our national debt, only time will tell. But, what’s important now is to understand what is expected of you and/or your business and which decisions are best for you.

The 4 biggest changes are:

• Individual Mandate- The PPACA requires all American citizens and legal residents to purchase qualified health insurance coverage. If not, then you will pay a minimum fine of $95 up to 1% of your household income. The fines increase in 2016 to $695 per person or 2.5% of income up to $2085.

• Guaranteed Coverage- Coverage cannot be declined due to pre-existing conditions. For persons who have been unable to get coverage on the individual market due to pre-existing health conditions, they will now be able to get the same coverage and price as a healthy person the same age (smokers are charged additional).

• Health Insurance Marketplace (Exchange)- For individuals and small businesses, the Federal government and some states will provide an Exchange to access health insurance in addition to the traditional method of an insurance agent/broker. In fact, some insurance agents/brokers will provide plans both inside and outside the Federal or State Exchange. The two important points are 1.) an individual can only qualify for a subsidy and 2.) a small business can only qualify for the small business tax credit through a Federal or State Exchange. The Enrollment for the Exchanges opens October 1st this year.

• Pay or Play Rule- For businesses with 50 (FTE/Full-Time Equivalent) employees or more, an affordable “minimum essential coverage” health plan must be provided to their employees or pay a fine. If a business does not provide qualified coverage, the penalty will be the lesser of ($2000 times the # of F/T employees minus 30) or ($3000 times the # of F/T employees that obtain a subsidy for coverage through the Exchange). This penalty is determined on a monthly basis so will pay 1/12 those amounts times the # of months they are not in compliance.

These are the biggest, but far from the only, changes that are coming in 2014. How will you be affected? Do you know the best approach to take? For some, you may not see much difference. For those individual and businesses who want answers to your questions, my suggestion is to speak with an agent/broker that will be providing coverage both inside and outside the Exchange to compare your options and help you make the best decision.

Nate Akers
Insurance Expert
Licensed Insurance Agent

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