Long Term Care

As an independent health insurance broker and the founder of my website and blog for comparing health insurance providers I often get asked, “What type of health insurance do YOU have?” Of course, no one health insurance company or health insurance plan is right for everyone because everyone has different needs, lives in a different area, etc… but I can certainly feel comfortable telling people that I personally have a Health Savings Account (HSA) and I absolutely love it!

Here are 7 reasons why I love my HSA:

#1 All Contributions to my HSA are Tax Deductible

Every single dollar that I contribute into my HSA every year is deductible on the front of my personal 1040 tax return (up to certain annual limits imposed by the IRS – for 2010 the maximum deductible HSA contribution is $3,050 for singles and $6,150 for families with those age 55 or over getting an extra $1,000 allotted maximum contribution amount). This HSA contribution deduction is great because it is an “above the line” deduction meaning that it is deducted before arriving at your Adjusted Gross Income (AGI) number. To make this deduction even better there are absolutely no income phaseouts for the HSA contribution deduction so you could be Bill Gates or Warren Buffet and still take the full HSA contribution deduction. The more money you make the more attractive this deduction is to you.
#2 The Money in my HSA Grows Tax Free

All of the money in my Health Savings Account grows tax free as long as I use the money in the account for qualified medical expenses or wait until I am age 65 or older and use it for my retirement. Yes, you heard me right “Tax Free” not just “Tax Deferred” as you may be accustomed to hearing about with a 401K or other similar tax deferred account.
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#3 I Can Choose any Health Insurance Company I Want

Another reason I love my HSA is that the HSA itself is simply a savings account with some special paperwork so that it receives special treatment from the IRS. The HSA itself is NOT health insurance but is simply the second component of what is commonly thought of as a HSA health insurance plan with the first component being a high deductible health insurance plan (according to the IRS a high deductible health insurance plan is any health plan with a deductible of at least $1,200 for singles and $2,400 for families – so still pretty low minimums). What this means is that many different banks (health savings account providers) offer Health Savings Accounts and you can choose the bank that you prefer to set up your HSA and then buy your high deductible health insurance plan from any insurance company that you like. You can even purchase a plan from United Healthcare one year and then shop around in year two and switch to a potentially cheaper plan with Humana and then in year three switch to Blue Cross Blue Shield, etc. This ability to constantly comparison shop and not be tied to one particular insurance provider is a great benefit to an HSA (as your actual savings account component of the plan still stays with your original bank).
#4 I Pay Very Low Monthly Premiums

The higher the deductible is on your health insurance plan then the lower your monthly premium payments will be. Since a high deductible health insurance plan is a requirement for opening a Health Savings Account then one of the nice things about the plans is that the monthly premiums are comparatively very low! I would much rather save a large sum of money every month by paying less in premiums each month than paying extra for a very low deductible and co-pays.
#5 I Am Firmly In Control of My Health Care Dollars

The beautiful thing about an Health Savings Account as compared to a Flexible Spending Account is that while Flex Spending Accounts require you to use up the money in the account every year all of the money that you contribute to an HSA rolls over from year to year. In fact, as mentioned above, even if you don’t end up using the money in your HSA for medical expenses (a good thing!) then when you reach age 65 you can withdraw the money tax free for your retirement. Most HSA custodians will give you an option to place your HSA money into a savings account, investment account, etc. as the decision is up to you as to where you place your HSA account money.
#6 I Can Rest Easy

Admittedly some people simply sleep better at night knowing that they have a very low deductible and low co-pays for things like doctor’s visits and prescriptions and I understand that but I like to think of it like this – After your first year of contributing the maximum to your HSA then unless you use up all of the money with a large unforeseen medical bill then you will have enough money in your HSA for years two and on that even if you have to meet your deductible then as long as your HSA health insurance plan covers all expenses 100% once the deductible is met then you effectively have zero out of pocket costs because you already have the money in your HSA account! Sure, if you start an HSA tomorrow and you have only contributed a couple hundred dollars into the account so far and you get hit with a big medical bill then you will have to come out of pocket for your deductible amount but once you have maxed out your HSA contribution for a year or two then you are essentially home free with potentially no additional out of pocket costs even for large medical bills!
#7 HSA Setup is Very Easy

If you can open a savings account then you can open a Health Savings Account just as easily. If you can apply for a regular health insurance plan then you can apply for a high deductible health insurance plan just as easily. Almost every bank has HSA’s available and almost every health insurance company has high deductible health insurance plans available. Setting up an HSA is so easy that I probably took twice as long to write this article as it would take you to apply for both a Health Savings Account at your bank and a high deductible health insurance plan at your health insurance company.

What are you waiting for? What do YOU think about Health Savings Accounts!

For more on Insurance related topics follow me at http://ltcinsadvisors.com/

Copyright Freefrombroke.com

Federal COBRA Premium Subsidy Expired August 31, 2011
September 7th, 2011 by admin | No Comments | Filed in COBRA

On August 31, 2011, the COBRA continuation premium subsidy ended. Former employees who want to maintain their COBRA coverage during any remaining COBRA continuation coverage period will now be responsible for the full 100 percent of their premium payments.

The American Recovery and Reinvestment Act of 2009 signed into law on February 17, 2009 provided a government subsidy to COBRA participants. The government subsidy of 65% of the monthly COBRA premium amount (including the 2% administrative fee) for up to 15 months was available to any individual involuntarily terminated from employment between September 1, 2008 and March 31, 2010. Since that time, the COBRA subsidy has been extended to individuals involuntarily terminated through May 31, 2010. No congressional acts for extending the COBRA subsidy have been proposed. As a result, the last subsidy-eligible COBRA participants who were involuntarily terminated on May 31, 2010 will see their government subsidy ending on August 31, 2011.
Here are a few things you can do to stay covered while you make your transition to your next job:

Short term insurance: These kinds of plans allow you to choose between 1-12 months of coverage. You can extend it if you need to. They also offer different deductibles, which enable you to work with the price, the higher the deductible the cheaper the premium. A family of 4 living in and (parents in their middle 30′s and two children under 10) might pay $120-$556 in monthly premiums for a six month plan.

Individual health insurance: If you are not sure how long you need coverage or may need coverage for more than 12 months, you can purchase an individual health policy. These plans never expire and there is no contract so you can cancel them at any time.

To learn more about these issues and get more up to date info, please visit me at http://ltcinsadvisors.com/

Copyright Illinois Insurance News

Tip #1: Consumers are wise to investigate Long Term Care coverage. Those who do not want to rely on others to support them in the future should definitely look into Long Term Care Insurance today. Looking now can also add the flexibility of choosing the type of Long Term Care services to be received later.

Tip #2: Long Term Care Insurance is not necessarily for everyone. For example, if you are currently receiving Social Security or expect to have minimal or no retirement savings or retirement income, odds are that you will likely qualify for aid, such as Medicaid. Remember, however, there are certain disadvantages to this type aid. These disadvantages are discussed in Tip #7 below.

Tip #3: It is important to research all of the individual insurance companies, mainly to see whether or not they have a history of raising rates for Long Term Care coverage. It is also important to check with your state insurance department to learn how your state regulates rate increases.

Tip #4: Check with your financial adviser or accountant for guidance as to whether or not Long Term Care Insurance is appropriate for your specific financial situation. If LTCI is for you, allow us at LTCtree to shop around for the most appropriate coverage at the best price. We encourage you to request our quote package and then compare LTC insurance companies.

Tip #5: Make sure you understand what a Long Term Care Insurance policy covers and, just as important, what it does not cover. Ask lots of questions. Also, find out whether or not the Long Term Care insurance company you are interested in is reputable and licensed to sell insurance in your state.

Tip #6: Find out whether or not you qualify for a Long Term Care Insurance policy. Pre-existing conditions are considered to be conditions that you have before you apply for insurance coverage, and such conditions can and may be excluded from coverage. The fact is, the younger you are when you buy Long Term Care Insurance, the lower your premiums will be.

Tip #7: Do not rely on Medicare or Medicaid to cover your Long Term Care needs because Medicare usually only pays for a small percentage of nursing home costs. Medicaid pays only for institutional Long Term Care services, not home care, in most cases, and it only pays for nursing homes if you meet federal poverty guidelines. Worse, the choice of care facilities can be very limited, perhaps even in a far away city!

Tip #8: Keep in mind that tax breaks are available for qualified Long Term Care Insurance policy premiums. The benefit payments received under such policies are tax-free. To find out more about this, read What Makes Tax Qualified Long Term Care Insurance?

Tip #9: Unless you are requesting quotes, be careful about responding to LTC marketing. Do not divulge your personal, financial, or medical information over the phone unless you have solicited a call from a reputable company. Information such as your social security number, your health status, your Medicare status, or your private insurance coverage should remain private. Do not be fooled by mailings about Long Term Care Insurance that appear to be from an official government source.

Tip #10: Be skeptical about advertising suggesting that Medicare is associated with a Long Term Care policy. Medicare does not endorse or sell Long Term Care Insurance.

For more on Insurance related topics follow me at http://ltcinsadvisors.com/

Copyright Long Term Care Insurance

Thinking the unthinkable. Throughout our lives we prepare for many eventualities and possible scenarios: what if I lose my job, what if our house floods or is damaged by a storm, how will we pay for our children to attend college, etc. But, when it comes to the subject of long-term care, many find themselves faced with just that, thinking the unthinkable. Most of us have homeowner’s insurance to protect against damage. We open savings accounts to pay for our kids’ college tuition. If we get sick, our health insurance and/or Medicare/Medicaid is there for us. But, many Americans still have not taken the smart and logical step of preparing for our future long-term care needs by purchasing a Long Term Care Insurance policy. There are number of reasons for this including lack of awareness about the realities of long-term care, the difficulty in facing these issues and poor planning.

Long Term Care Insurance: What is it anyway?

Many people simply aren’t aware of either the need for Long Term Care Insurance or what long-term care is. Long-term care includes a suite of services that assist people with the activities of daily living. So, for example, while Alzheimer’s is a disease and is thus a medical condition that needs treatment that is covered by regular health insurance, the side effects, that the person can usually not be left alone or care for their day-to-day lives, are NOT covered by health insurance. Activities of Daily Living such as eating, bathing, getting in and out bed and other basics of life require long-term care services such as in-home health aides, nursing home stays, assisted-living facilities, adult day care or other long-term care service. To cover these costs, which are substantial, you need a Long Term Care Insurance policy.

Awareness about long-term care is growing

Several recent studies have concluded that, though it is growing, awareness about Long Term Care Insurance is still low. Many people falsely think that Medicare or their regular health insurance will pay the bill when the need for long-term care arises. This is not the case. Long-term care is by definition “non-medical” and thus is not covered by regular health insurance. Others, simply think that either they won’t need long-term care or that their children or other relative will care for them. Increasingly in today’s mobile, modern workforce, this is simply not something that most people can rely on. Children often move far away from their parents and have busier lives and are unable to take time off from work to care for their aging parents. In addition, the emotional burden of doing so can be great.

Planning is everything

Like any other kind of insurance, there is a chance you might not need it. But, the realities of the high cost of long-term care services mean that if you don’t plan, you will likely be unable to afford to pay for care out-of-pocket. The high costs of long-term care services can whither away even a modestly robust nest egg or life savings. With the average stay in a nursing home at 2.9 years, it adds up to an average cost of $237,153 per person or $474,306 for a married couple. And, those figures represent today’s averages. Inflation has driven and will continue to drive up the costs of medical care, and that trend will probably continue. So, planning ahead and purchasing a Long Term Care Insurance policy with inflation protection, protection against the rising costs of care, is a smart addition to any retirement plan.

You can begin today to protect yourself from possibly the greatest financial risk you are likely to encounter in your retirement years. With Long Term Care Insurance, most, if not all, costs can be covered, depending on the policy. Imagine how relaxed you would feel knowing that you planned ahead and are protected. We’ve helped thousands of Americans make sound decisions for their future, long-term care needs. We can help you as well. Simply fill out our request form, and we’ll be glad to talk you through the various plans and options. Thank you for reading today’s blog. We really appreciate it.

For more on Insurance related topics follow me at http://ltcinsadvisors.com/

Copyright Long Term Care Insurance

Not only does homeowners insurance typically cover the structure of your home, your homeowners policy may also protect your personal property, as well as structures not attached to your home (such as a shed), and additional expenses you may incur if you can’t stay in your house after you experience a covered loss.

Personal liability and medical expense coverage are also generally included in your homeowners insurance policy. Personal liability insurance will protect you if someone is injured on your premises or if you unintentionally injure someone on your property or even away from it. Medical expense coverage will pay for medical treatment when a visitor is injured on your property, regardless of who’s at fault. The cost of personal liability and medical expense coverages is minimal compared to the amount of they offer, too.

In addition to these two coverages, you can choose several optional coverages for even more protection. For example, if you own expensive jewelry, collectibles, or artwork, you can purchase a floater and have these items worked into your homeowners insurance policy. Without this, coverage for these items is limited. If you have a finished basement, make sure you have enough sewer and drain backup coverage to pay for replacing the walls, furnishings, and stored items in your basement.

Once you assess your situation and know what you want to cover, discuss your needs, expectations, and concerns with your insurance company. Review which coverages are included in a policy as well as any optional coverages that can be added. Together, you can decide how to best insure your home and valuables and walk away knowing you have the right amount of home insurance.

For more on Insurance related topics follow me at http://ltcinsadvisors.com/

Copyright Progressive.com

-What are common insurance questions among younger patrons?

• 1. Why do I have to get health insurance anyway?
• 2. What are the most common injuries and illnesses for someone my age?
• 3. I already have health coverage through my employer. Can I cancel it and sign up for another new health plan?
• 4. What if Essential Blue Young Adult doesn’t meet my needs?
• 5. How do I get insured?
• 6. How does health insurance work?
• These are all just some of the common questions asked by younger adults.

- Middle age/older patrons?

1. Why do you need health insurance?
2. How do you get health insurance?
3. Which type of health insurance is right for you?
4. What is consumer-directed coverage?
5. How does Medicare coverage work?
6. What other government programs are available?
7. Are there other types of health-related coverage?
8. What happens if you have a preexisting condition?
9. What happens if you have health insurance through your employer and you leave your job?

- What are a few key things everyone should know about their insurance plans in their 20′s?

1. You must know that buying life insurance in your 20s can get you a much more affordable rate. You are young and healthy which significantly reduces your premiums. As you get older, policies become a lot more expensive.
2. Shopping around on your own can also make purchasing an affordable life policy a lot easier. Go online and compare prices of various insurance companies to start getting an closer idea of what you will be paying.
3. There are different types of life insurance policies in the market. Term insurance is more cost effective while permanent insurance is expensive due to the cash value attached to it.  The best thing to do is to contact an experienced insurance professional who will help you select a life insurance plan policy that best suits your needs. An experience agents can help you buy a less expensive policy providing better coverage.
4. Whether you are dealing with an agent or a broker, make sure you check their credentials of the agent/broker and financial standing of the company they represent.
5. Adults in their 20s usually have college debts, car loans, etc.  Always choose the coverage that befits your financial circumstances. If you have a new family, you must definitely consider buying a suitable life insurance to protect your spouse and kids.
6. If you have a health condition that disqualifies you from purchasing regular life insurance plan, there are many specialty insurance products that cater to your needs. Get an insurance professional that can help you to shop for these types of policies.
7. The most important thing is that the amount of coverage matters.  According to insurance experts, you must get a life policy that covers five to seven times of your annual salary. Consult an insurance professional to assess your family obligations and financial situations before zeroing on an amount.
8. Honesty is essential while filling the insurance application. If you are hide health facts, then the company may decide to deny the claim to the beneficiaries.
9. Make sure to understand your policy throughout. There is a 30-day look-in period where you can cancel your policy and get the refund for the premium. Always be aware of the nitty-gritty things that are normally overlooked in a policy.
10. Make sure you ask the agent/broker questions such as reinstatement of the policy in case of a lapse for overdue premiums, effective date of the policy, etc.

For more on life insurance related topics, follow me at http://ltcinsadvisors.com/