29Nov

How to Avoid the 7 Most Dangerous Long Term Care Insurance Traps

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Your chances of living longer have greatly increased. With that blessing comes new challenges such as how you will live and if you will be able to stay in your own home.

Long term care insurance, which aids you in caring for yourself during your old age, could be the most important decision you will make for the rest of your life.

Because of the complications in buying long term care insurance you need to be wary of the 7 most deadly traps that could rob you of your independence.

Trap #1: Not checking out the background of your

This is not or a homeowner policy that can be switched from company to company. You will be making a long investment in your future and you don’t want to waste money and time.

Just because you have an agent you like who handles your car insurance doesn’t mean he will be able to guide you through this complicated maze of potential policies. Getting the right agent who knows what he is doing and is honest is absolutely vital.

Only deal with those agents who have clean records. The best way to research them is with your state insurance regulator. You can also check with the American Association for Long-Term Care Insurance (aaltci.org)

Trap #2: Not researching the thoroughly

You want to make certain the insurance company has a low complaint ratio, and does not have a history of increasing the premiums on “classes” or “groups” of policyholders instead of individuals.

Verify the financial strength of the long term insurer. That’s important since you will be keeping this policy for many years. You don’t want to be faced with fickle finances later as your insurance company scrambles to raise premiums in order to stay in business.

Trap #3: Not Buying a Tax Qualified Policy

This is very important because you do not want your benefits considered to be income.

You also want to make sure you can deduct some or all of your benefits from your taxes. This is an important detail that can save you a lot of grief later.

Trap #4: Not knowing exactly what your coverage includes

Will your policy care for all of your needs, or just some of them? Do you know which ones, or are they hidden in the ?

For example, is it a nursing home only policy or will it cover your in-home care expenses such as daily living aids? Will you be able to stay in your own home because your policy pays people to help you with your meals, bathing, or other needs?

Trap #5: Not getting a policy that is inflation-proof

This may be your most important consideration since inflation grows expenses. Inflation is something we can count on, so we need to be adequately prepared for it, especially as we look down a road that could stretch for 20 years or more.

It is important to know if your policy gives you the right to add coverage at a later date, or if your coverage increases automatically.

Trap #6: Not being able to back out of a policy

Will you be able to conceal your policy within 30 days of purchase?

You should be able to back out it you change your mind or discover the policy is not in your best interest. Not only should your policy give you a way out if you are displeased, but you also want to receive a refund.

Trap #7: Not being able to keep a policy indefinitely

Can you keep your policy as long as you pay the premiums, or will the company be able to drop you?

Does your policy also include a non-forfeiture benefit which will continue to pay for your care even if you stop paying the premiums? That feature in not totally necessary and can increase your premiums costs, but it is still important to keep in mind.

Alice Stevens
http://www.articlesbase.com/finance-articles/how-to-avoid-the-7-most-dangerous-long-term-care-insurance-traps-400619.html

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26Nov

Why should my insurance premiums have to be so high when it’s others who are irresponsible?

Filed in Insurance Premiums 18 Comments

I have 5 Republican coworkers sit around eating Whoppers and Big Macs (with Diet Cokes, of course) every day and bitch about having to pay for insurance for others. Just wondering why I should have to pay because they’ve collectively had a dozen heart attacks before the age of 50.

Oh be nice, you old cow. When I try to explain healthy living or heath care to my retarded uncle-in-law, he turns red and starts flapping his hands about screaming, "liar liar!". He has touretts as well, BTW. Better to just do-the-right-thing and take care of him until he dies at an earlier than usual age.

edit: my Uncle has an answers account under the pseudoname "Mrs. C" or something. He loves to yall at people in the politics section.

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20Nov

I have Aetna health insurance through my employer. Are my insurance premiums that I pay tax deductible?

Filed in Insurance Premiums 8 Comments

IRS’ website is vague. I can’t figure out if I can really deduct the premiums that I pay for my . I’m not self employed.
Yes, my health is paid pre-tax in my paychecks.

what you pay for can be included in your medical deductions when you itemize
of course, the are limited to the excess of 7.5% of your AGI

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05Nov

Are health insurance premiums deductible in year paid?

Filed in Insurance Premiums 4 Comments

For the first time, I have to pay my retiree health in advance instead of in the month of coverage. I paid for Jan 09 and Feb 09 in Dec 08. I know that medical and dental expenses are deductible in the year paid, but what about insurance premiums. Is that Dec 08 payment deductible in my 08 taxes or my 09 taxes? I can’t find a clear answer in Schedule A instructions of Pub 502.

healthplans.my-age.net – here is my plan. As I remember they can provide such a service.

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30Oct

Which One Rules? Term Life Insurance Vs Whole Life Insurance

Filed in Insurance Premiums 7 Comments

What do you think is a better insurance? As per my point of view, these are two different policies serving different purposes. Term life and Whole life both have their own strong and weak points. So the question of comparison does not even arise. If you are living in India then this is most useful to choose right plan.

Referring history, all insurance was term insurance covering life only. But with time consumers started complaining about the benefits one should receive after paying the premium over 20-30 years. They felt it was injustice. Henceforth, life insurance started giving the option of .

Let us discuss the main features of Term Life Insurance and as described below.

Term Life Insurance:

  • It covers life only.

  • Premiums are paid only for the term period

  • The premiums are cheaper

  • Beneficiary is eligible to benefits only in case of death.

  • If the policy holder lives after the maturity term, there are no benefits.

  • It covers life only, has no additional benefits to it.

Whole Life Insurance:

  • It takes care of both life and investment.

  • Premiums are paid life long.

  • The premiums are expensive.

  • Beneficiary is eligible to benefits in case of death.

  • If the policy holder lives after maturity period, the policy holder receives both the maturity value plus cash value as applicable.

  • It has dual purpose, covers life and offers added benefits like cash value.

Which one is better according to you choosing?

From the above we can make out that both these policies are different and do not serve the same purpose. Term life insurance benefits people who generally have good health and follow healthy living. They can save on the large premium to be paid out and go for other better investment instruments. Whereas Whole life insurance benefits people who are already suffering from certain kind of disease and cover is necessary. It generally works for people who are wealthy enough to carry on paying huge premiums life long.

The combination of both term life insurance and whole life insurance is the best portfolio of life insurance one can possess.

But first and foremost, it is necessary to understand why you are purchasing life insurance. You will be more content when you figure out why you wish to buy the policy. Analyze your needs and its importance. Figure out what needs to be covered and who should receive the benefits, etc. Once you make a decision, start shopping for quotes from various sources like the local representatives, brokers and sites having online comparing tool. Compare the quotes received, the coverage level, other added values, offers, etc. they are offering. Choose the policy that fits your requirement in the at the most competitive price available.

And at PolicyBazaar, you can find the right insurance plan at most competitive rates. You also take special offers going on from time to time, for any type insurance help or enquiry you can call 0124 457 67 77 and also see website: http://www.policybazaar.com/life-insurance/life-insurance-india.aspx

Chavi Singal
http://www.articlesbase.com/insurance-articles/which-one-rules-term-life-insurance-vs-whole-life-insurance-724374.html

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20Oct

Is There Life Insurance for the Elderly?

Filed in Insurance Premiums 6 Comments

Is there life insurance for the elderly? The answer is yes, there is. But it can be advantageous to purchase this life insurance when you are young.

 

You see, when most people are young they don’t want to think about their own demise and death. They are very busy accumulating wealth, starting families, having good times, and feeling fully alive since they (probably) won’t die for decades to come yet. But, as tragic as this is, aging and dying are inevitable. The day will come when you are old, and your death is much closer. You might have developed health problems from the stresses and strains of living or from age-related causes. And the problem for you then will be that you could find it very difficult to get underwritten for life insurance.

 

Life insurance underwritable face amounts and premiums are very, very much based on age and health status at the time of application. The less the probability that you’re going to die any time in the near future, the lower your premiums and, in many cases, the more will be permitted to have. So, if you buy a with a face value of half a million dollars when you are 25 and going running and lifting kettlebells five days a week, you will pay a far, far less amount of premium than you will trying to buy that same amount when you’re 55, especially if you’ve also got health problems that have onset then. There’s also a chance that you won’t qualify for the half million face amount that you desire.

 

There’s another advantage here to buying young: if you choose a permanent policy like a Variable Universal Life plan, you can accumulate a of money on a tax-sheltered basis. Indeed, many financial planners are using VUL as a core part of their clients’ retirement planning these days because the tax advantages are just too great to pass up. Not only will your life insurance premiums be substantially lower, you will have far more time to put in money into the investment portion and let it accumulate into a fortune. Just as with the insurance itself, when it comes to investing, truly, time is money.

 

But let’s say you never did any of that, and your question of is there life insurance for the elderly is much more urgent and immediate in meaning. The answer is still “yes”, but you will have to take reduced benefits.

 

Different have different underwriting standards here, but essentially all of the important ones do have policies tailored to the elderly. They will put a cap on how old you are allowed to be to qualify, but this could be anywhere from 70 to 85 depending on the company. There will also be strict caps on how much face value you can qualify for–typically no more than $25,000 and often even less. And, these elderly life insurance policies are usually “guaranteed acceptance”, meaning there’s no medical exam to qualify. They may also restrict the pay-out so that, for instance, you start paying for the insurance now but they won’t pay a death benefit if you die within the next 24 or 36 months (they will refund all of your premiums and usually with interest, in place of the death benefit). You pay for all this however: the premiums on these policies are very expensive for what you get. But it is a way of making sure you have life insurance coverage.

 

So, the question “is there life insurance for the elderly?” should be asked when you’re young–not when you’re elderly.

Don Lewis
http://www.articlesbase.com/insurance-articles/is-there-life-insurance-for-the-elderly-723904.html

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18Oct

Is there a minimum amount that must be charged for auto insurance premiums?

Filed in Insurance Premiums 2 Comments

Some companies determine by actuaries, but is there by law a minimum that needs to be charged to policy holders? What risks or fines would a company face if its insurance premiums were a charged at too low an amount?

No, there is no minimum by law.

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11Oct

Heavy Drinking Can Increase Life Insurance Costs.

Filed in Insurance Premiums 11 Comments

Britons are drinking too much, shout the headlines. Out of those who live in Great Britain, two thirds say they drink to excess at least once a week and almost a quarter hurt themselves while they are intoxicated. This is according to a report by the Drink Aware Trust and the British Chiropractic Association.

But binge drinking is not just a health issue, but a financial one as well. It hits you not just in the pocket through the excess weekly spending on alcohol, but it can drive up the cost of your too.

Talk to the Association of British Insurers and they will tell you that in fact yes, years and years of heavy drinking will be taken into account when calculating your premiums on your . On the Life Insurance application form a questions asks about your alcohol and tobacco consumption. And as with all sorts of insurance products, the underwriting is done at the point of your application.

You might think you can get away with not declaring the fact that you have been drinking excessively for a certain period of time. After all, no one is really going to know when you die right? And of course, you plan to cut down your alcohol consumption in the years to come. Yet a spokesperson for the Association of British Insurers says that it is best to tell the truth. If you die, the medical experts can often tell from the post mortem examination if you are someone who has been drinking for a time frame that extends back before you made your life insurance application. They can refuse to pay out if you did not reveal the truth about your drinking at the time.

The spokesperson says: “The point here, as with any deliberate non disclosure, is there is a strong chance that if you do put down something that is not accurate on your application form and if you do have to claim on that policy, the may say that your policy was rendered invalid because you deliberately failed to disclose something.”

However, if you develop an alcohol problem after you have made an application for Life Insurance you are most certainly entitled to a policy payment. He adds: “Your death might be related to some sort of alcohol consumption issue, in which case the policy will pay out. It is only things that are such at the time that you apply that are taken into account.”

Most insurance firms ask you to disclose your average weekly consumption of alcohol, asking how many units of alcohol you consume each week. But this does depend on the individual company. Most look at the NHS guidelines with respect to deciding what is a normal and safe level of alcohol to consume and what is considered to be potentially dangerous. The firm will weight their premiums accordingly.

Direct Line insurance company charges a 30-year old who does not drink monthly Life Insurance premiums of £14.88. For someone who does drink the payment is £15.37. Over the years, this can make quite a difference.

A spokesperson for the ABI says alcohol consumption is one of a number of factors insurers will look at when they are establishing whether or not to take on an insurance risk and what the level of premiums for that person will be.

“From a public health perspective, there will be medical practitioners within who will have concerns about this issue,” he says. But he goes on to add: “The insurance companies must look at that factor dispassionately as they do with all of the other factors that they look at when they are calculating premiums.”

Michael Challiner
http://www.articlesbase.com/finance-articles/heavy-drinking-can-increase-life-insurance-costs-103984.html

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28Sep

Knowing The Pros And Cons Of Finding The Best Whole Life Insurance

Filed in Insurance Premiums 7 Comments

Once you have finally decided to take that big step and invest in your first life you are left with one more major decision: to choose to accept a whole life or a term life. Although both policies will give you and your family the benefit of owning , they are both totally different ways of obtaining coverage for your demise. Each and every year hundreds of unfortunate consumers are left in the dark when looking for their own policies, and we are looking to bring an end to that confusion.

The major benefits of the best whole life insurance, or permanent life insurance as it is known in some circles, can immediately begin even if you are still young. Much as its name implies, you are covered for your entire life if you decide to enroll in this kind of policy. With great flexibility, you can begin the policy at whatever age you wish – and provided you continue to pay the premiums, the policy will last until you die even if you live to be over one hundred. In contrast to this flexibility, term life insurance can only be purchased for a set period of years determined actuarially by your .

Secondly, permanent life insurance holds a major advantage over term life because of the diversity in policies you can purchase. The first these unique policies is the typical or traditional style of insurance in which the premium remains roughly the same as long as you pay on time year after year. Premiums from this type of policy start high, but do not increase by much the older you get. By keeping the premiums low, allow retirees on a fixed income to still keep the policies they held when they were younger.

With the second type of whole life insurance, universal form, you are allowed to change the payout and premium levels of your policy as the years go by. While a medical examination is required whenever you make these changes, you can use this type of insurance as a way to generate interest to help you pay for rising premiums if necessary.

Next we have variable life insurance. With this style of insurance, you are actually able to invest a small portion of your payout in bonds, the stock market, or just about whatever other moneymaking offer you see fit. Even though you could lose a portion of insurance by investing, the chance of increasing your payouts size without increasing premiums is a big draw for many people.

Finally, you can combine the advantages of the previous two types of policies in a variable-universal plan. This type of life insurance not only allows you to raise or lower your premiums and payouts through regular medical exams but also lets you invest part of the payout in different stocks or bonds. Without a doubt, if you want to maximize your best whole life insurance benefits, the variable-universal plan is a type of insurance that you should definitely consider.

Craig Thornburrow
http://www.articlesbase.com/non-fiction-articles/knowing-the-pros-and-cons-of-finding-the-best-whole-life-insurance-110681.html

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26Sep

How do we get insurance companies to reduce medical insurance premiums to employers?

Filed in Insurance Premiums 4 Comments

Let’s face it, here in the U.S. the medical for group health coverage is rising faster than inflation. As a result, a lot of companies are either reducing the levels of coverage in order to offset the cost of insurance, increasing the deductible, and or increasing the cost to the employees for the insurance premiums.

The problem is that have no incentive to reduce insurance premiums. They continue to get record profits and this issue is out of control.

How do we get the insurance companies to decrease insurance premiums to the rate of inflation, or better yet, start reducing the cost of premiums for a change?

As an and previous benefits coordinator, I cannot agree more with your concern. The cost of medical premiums are at an all time high. Even worse though, is individual coverage. Insurance companies, like BlueCross, have the right to exclude a pre-existing medical condition (rider) of an applicant. I cannot tell you how many times a day I hear people say, "if they aren’t going to cover my medical issue, what’s the point of having insurance?!". I fear it’s only a matter of time before insurance companies can place the same riders on employees covered under group plans. I don’t have an answer to your question that is realistic, but I definitely agree it’s time something is done to regulate the costs and coverages. The only conclusion that I have been able to come up with is social care, like Canada, but I don’t think we will see that anytime soon in the US – especially since, in my state, they are already reducing benefits and raising premiums given to low income children and to those who are unable to get coverage (decline due to serious medical conditions). I think the only thing we can do is to start pleading with our state governments to get involved. Insurance is regulated by each state individually, so you can image the multiple mountains set before us.

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