When you’re a 30-something with a spouse and children, it’s easy to switch on your tunnel vision and focus only on what’s in front of you. But what about the unpredictable events that could derail your family’s future?
It’s important to find a way to replace your income, which is exactly the purpose of carrying life insurance. Still, fewer than half of Americans actually have private life insurance coverage not from an employer, according to the insurance research and consulting firm LIMRA.
About 70 percent of consumers blame living expenses for keeping them from purchasing any or more life insurance coverage, LIMRA says. But that’s a problematic way of thinking, says Steven Weisbart, senior vice president and chief economist for the trade group Insurance Information Institute.
“You would want to protect (your income) a little better than just hoping nothing bad happens,” Weisbart says.
Some other reasons people dismiss the need for life insurance include “I’m busy now — I’ll get to it later,” “It’s too complicated” and “I don’t know anyone who died at my age,” says Glenn Daily, a fee-only insurance adviser in New York City.
People find it difficult to think about their own mortality, says Jack Dolan, a spokesman for the American Council of Life Insurers, a trade group.
“When you’re in your 30s, you think you’re invincible,” he says. “People don’t think that (death) can happen to them.”
But, as we all are aware, life is uncertain and we don’t know when we’ll pass away. This underscores the need for breadwinners in their 30s with a family to carry life insurance, he adds. “It helps manage life’s risks.”
Not as expensive as you think
Dolan says life insurance is part of the foundation of financial security, along with a bank account and rainy-day fund.
“(Life insurance) is something that any responsible individual should consider in order to protect their loved ones,” Dolan says.
People tend to overestimate the cost of life insurance coverage. According to data from LIMRA, consumers believe life insurance costs nearly three times its actual price tag.
“Most of them probably have never actually priced it,” Weisbart says.
For the 30-somethings who say there isn’t room in the family budget for life insurance, Dolan has a question for you: “How can you not afford it?”
“How will your family afford things if they don’t have the financial resources that they need?” he asks.
Less than $50 a month
If you’re a 30-something parent and are wondering which type of life insurance policy would be best for your family, consider..
Health-insurance rates in Washington’s individual market would increase an average of 22 percent next year based on filings under review by state officials — sparking a new round of partisan finger-pointing.
The increases are almost twice the 13.5 percent increase insurers proposed this past year for 2017. Consumer options also would decrease next year for the 300,000 Washingtonians who buy their health coverage in the marketplace for individuals.
This year 13 insurers offered 154 plans in Washington’s individual market and nine companies sold plans inside the state exchange created under the Affordable Care Act (ACA), also known as Obamacare.
Next year 11 insurers would offer 71 plans with just seven companies selling inside the exchange. No insurers plan to offer individual market coverage in rural Klickitat County, although that may change.
The Medicare low-income subsidy, also known as the Medicare Extra Help program, is a government program that helps pay for Medicare Part D prescription drug costs. It provides extra help to pay for the monthly premiums, annual deductibles, and co-payments related to Medicare Part D. If you have limited income, you may qualify for this program which can grant an estimated savings of $4,000 per year.
Am I eligible for the Medicare Extra Help program?
You may be eligible for the low-income subsidy available under Medicare Part D if the following apply:
How do I apply for the Extra Help?Many people are eligible for the Extra Help and do not realize it. Therefore, it does not hurt to fill out the application to see if you are eligible. To apply for the Medicare low-income subsidy, you must fill out the “Application for Extra Help with Medicare Prescription Drug Plan Costs” (SSA-1020) form with Social Security. You can apply and submit this form in the following ways:
After you submit your application for Medicare Extra Help, Social Security will review it and mail you a notification if you are eligible.
You probably don't like to think about the idea that your health may decline to the point that you'll need help with day-to-day activities. But it's important to face the facts: According to the U.S. Department of Health and Human Services, a person turning 65 today has almost a 70% chance of needing long-term care services at some point in his lifetime.
What is long-term care?Long-term care, also called custodial care, refers to professional help with "activities of daily living" (ADL), as medical providers call them. These activities include:
• Using the toilet
• Transferring (to or from a bed or chair)
• Caring for incontinence
Typically a person will qualify for long-term care when their doctor or health provider certifies that they're unable to perform at least two of the ADLs from this list.
How will I pay for long-term care?If you live long enough, you'll likely need some form of long-term care. While you may be able to get some free help from a relative, it's possible that no one will be available or able to provide the level of care that you end up needing.
Unfortunately, Medicare does not cover the cost of most long-term care services because they aren't technically medical services. Medicare will pay for skilled nursing services, but it will only cover a maximum of 100 days in a nursing home, and it won't pay at all for home aide services (when a person comes to your house to help you with ADLs and other basic activities). Medicaid will cover such services, but not until you've exhausted all other resources and are essentially broke.
If you have money set aside in a health savings account (HSA), you can use those funds to pay for long-term care. Another option is self-insuring – that is, setting money aside in a dedicated investment account with the intention of using those funds 25 or 30 years in the future when you need long-term care. However, it can be difficult to fund such an account to the level you may require. According to Genworth Financial's annual Cost of Care Survey, the median monthly cost for a home health aide in 2016 was $3,861, and a semiprivate room in a nursing home cost $6,844 a month. What's more, you might need those funds before the 25 to 30 years of growth are complete.
How about long-term care insurance?Long-term care insurance reimburses its policyholders a set daily amount for services that help you with your ADLs. Some policies are idiosyncratic when it comes to the services they cover, so read the fine print carefully before you sign. Most policies require medical underwriting, which means that if you're already in bad health or currently receiving long-term care, you probably won't qualify for a new policy.
Long-term care insurance premiums are notoriously high. You can expect to pay several thousand dollars a year in premiums, and the rates rise steeply if you wait until you're 65 or older to buy a policy. Paying long-term care insurance premiums from an HSA is allowed and will at least give you a small tax break on the money.
Some companies offer hybrid life/long-term care insurance policies, which often have fixed premiums. This can save you from a sudden, steep rise in premium costs as you age. These hybrid policies will also pay out part of the long-term care coverage as a death bonus if you end up not needing to use it, which means you'll get something back for your money.
So should I buy long-term care insurance?Unless you're sure you have another way of paying for these services, consider getting a long-term care or hybrid life insurance policy. The best time to start looking is in your 50s, because you can lock in much lower premiums at that point than if you wait until you're older (but check the policy carefully to see what their practice is for raising rates over time). When pricing out policies, keep in mind that you don't need to buy an enormous policy to cover every possible expense; should you end up in a nursing home (typically the most expensive form of long-term care), your Social Security benefits and retirement savings will take care of at least part of the cost.
What's more, if you're in a nursing home you'll likely have much lower day-to-day expenses, since you won't be spending your own money on things like food, and basic medical care. Check your Social Security statement and the status of your retirement accounts and factor those funds in when deciding how much long-term care coverage you'll need. And remember that like most insurance policies, a long-term care policy gives you one benefit right away: peace of mind.
by Wendy Connick | Mar 8, 2017
Author: Wendy Connick
Source: USA TODAY
Retrieved from: www.usatoday.com
Its that time of year to see how your Insurance tax credits are doing. Click back into the Wahealthplanfinder: https://www.wahealthplanfinder.org to see if there are any changes.
Some great news for Clark County WA. Molina Marketplace is here for individual insurance and they are partnered with The Vancouver Clinic.
To check out their plans they offer go to Molina Click here. Don't hesistate to contact us right away with questions. Remember our services are always free to you!
The Annual Election Period (AEP) is an annual open enrollment period for Medicare Advantage and Medicare prescription drug coverage that takes place from October 15 to December 7 every year. During AEP, you may: Switch from Original Medicare to a Medicare Advantage plan.
To Help out I will be at Walmart at two locations. Battle Ground and Vancouver on 104th off Millplain.
Here is My schedule:
TUESDAY: BG 9-1 & VAN 2-6
WED: BG 9-1 & VAN 2-6
THURSDAY: VAN 9-1
FRIDAY: VAN 9-1
SATURDAY: BG 9-1
"Just stop by and say Hi"
Your Medicare card is proof of your Medicare insurance. If your Medicare card was lost, stolen, or destroyed, you can ask for a replacement by using your online my Social Security account.
If don’t already have an account, you can create one online. Go to Sign In or Create an Account.
Once you are logged in to your account, select the "Replacement Documents" tab. Then select “Mail my replacement Medicare Card.”
Your Medicare card will arrive in the mail in about 30 days at the address on file with Social Security.
If you can’t or prefer not to use the online service:
InsureKidsNow.gov: A Brief Overview of Features VideoWatch this short video to learn about the new features of InsureKidsNow.gov, one of the key Connecting Kids to Coverage National Campaign tools for partners and stakeholders to turn to for Medicaid and CHIP outreach and enrollment information, ideas and materials.