When considering life insurance it is important to consider the reason it is being purchased for. Life insurance is generally purchased for a lot of coverage and a very low premium. In most cases, this is a great idea for a family with young children. If the main money maker should die then this would be necessary in order to provide for the family. It will help to keep the family going while the children grow up.
There is also permanent life insurance that is much more expensive due to the fact that it will cover a person until they reach the age of 100. This is considered the whole of a persons life span. This type of coverage has a cash value that is readily available to the policy owner in the form of a loan should an emergency arise. Cash value policies like this are often used to maintain a premium level as people age.
Many startling statistic from the Goldsmith Insurance Agency shows one percent of all term life policies purchased ever result in a payout claim. This may sound very shocking and for this reason many consider these policies a total waste of money. That would of course depend entirely upon the persons perspective. It’s similar to someone who buys fire insurance yet never needs to use it, it’s there if you need it but few ever do.
If a permanent life insurance policy is kept in force it will result in a claim at some point in life. Many times these well planned life insurance policies also entail the purchase of both types of policy. One for when the family is young and in need should the main money earner die and the other for after the children have grown up and left home in order to cover those final expenses.
Finding Life Insurance For People Over 60
Amy, is life insurance over the 60 still a good idea? Can I even find decent options at my age?
I have seen this question and similar ones a lot. Life insurance can be important at any age, especially if you have people who depend upon you, or financial obligations that you have to meet. However, many people erroneously believe that as they grow older, life insurance is less important. In fact, even when you are over 60, having a good life insurance policy is still a sensible idea.
Your needs change as you age, and a policy that makes sense when you are in your 30s and have children may not be as well-suited to your needs as you approach retirement. It is a good idea to reevaluate your financial needs on a regular basis so that you can adjust your coverage as you see fit.
For example, when you are in your 30s, one of the primary purposes of a life insurance policy is to provide financial protection for your family should you pass on. You may need to make sure that your young children are provided for, or that your mortgage can be paid off without your income.
When you are in your 60s, on the other hand, your children are likely to be grown and living on their own. You may well have paid off your mortgage, or at least have so little left to pay off that doing so is not a concern. Instead, your main concern should be about providing for your spouse during retirement, or protecting your estate for your heirs.
Talking to an experienced financial adviser is often the best way to proceed when you are shopping for life insurance over the age of 60. Whether you have had life insurance in the past, or you are looking for it for the first time, the assistance of a good financial adviser can be a very great help to you.
Understanding Life Insurance for Diabetics
Obtaining life insurance for diabetics can be tough. Not only for consumers, but for many life insurance agents that don’t understand your risk.
Life insurance for diabetics will tend to be more than that with regards to non-diabetics, simply because it has been shown a person with diabetes certainly has a shorter lifespan than someone without diabetes. This doesn’t mean you can’t secure life insurance with diabetes, it just means you’re going to be paying more than someone without diabetes.
Don’t let this deter you from purchasing coverage. Your family needs the coverage just as badly as any other family. What would happen if you didn’t walk through the front door from work tomorrow because you thought life insurance for diabetics was too expensive?
Puts things in perspective, right?
To find the best life insurance policy for those with diabetes takes an experienced agent who specializes and understands how diabetes effects you and your life insurance rates. Simply using the wrong company can increase your premiums or even lead to a decline. Some life insurance companies don’t like people with diabetes – even some of the most recognized names in the industry.
A significant component within the price life coverage for diabetics policies for individuals with type 1 or type 2 diabetes is how much control they have of their diabtes. In the event you have a reduced A1C, good blood glucose levels, proceed a good lifestyle, and not any complications from diabetes, chances are you’ll secure very affordable rates.
In fact, if you’re over 50 years old, Standard rates are available and if you were diagnosed over 60 years old, some companies can offer Preferred rates if everything is under control and there are no underlying health issues.
They key is knowing if you can qualify for these rates. Your life insurance agent will be able to guide you through the process and if they can’t, then we recommend you find an agent that will.
The best thing you can do is search online for life insurance experts that specialize in high risk or helping those with diabetes. We all use the same published life insurance rates, so it doesn’t matter who you choose…you just need to make sure you use the right life insurance company.
Understanding Medicare Supplemental Insurance
Many people do not understand the ins and outs of Medicare and Medicare supplemental insurance. Medicare is available for people 65 and older who are eligible for Social Security, railroad retirement benefits, or are eligible under other conditions, such as under 65 and disabled.
Medicare comes in Parts A and B. Part A covers hospital care, skilled nursing facility care, nursing home care (under certain circumstances), hospice and home health services. Part B covers medically necessary services and preventive services such as an ambulance, some prescription drugs, partial hospitalization and so forth.While Medicare covers many things, there are different regulations depending on the state. There are also limitations, such as the length of time a person can stay in a hospital or nursing home, medical problems outside the United States, and so forth. That is why many people purchase additional Medicare supplements, also called Medigap, from a private insurance company.
There are ten Medicare supplemental insurance plans, lettered A, B, C, D, F, G, K, L, M and N. The premiums and benefits of each plan differ, depending on the coverage. When contemplating this extra coverage, it is essential that each plan be considered as the premium and benefits vary.
Supplemental insurance plans cover things such as:
• Hospitalization when regular Medicare ends
• Hospice care
• The patient’s portion of medical expenses (when required)
• First three pints of blood each year
In addition, depending on the plan chosen, the following is offered:
• Pays for nursing facility after Medicare coverage ends
• Pays excess doctor fees not covered by Medicare
• Additional coverage in various areas
• Covers medical care outside the United States
Supplemental insurance plans do not cover:
• Long Term Care
• Vision or Dental Care
• Hearing Aids
• Eye Glasses
• Private-duty nursing
• Prescription drugs (Medicare Part D covers this)
To obtain Supplemental Insurance (or Medigap):
• You must have Medicare Part A and Part B
• Pay a premium to a private insurance company
• Have one policy per person
• The insurance company must be licensed in your state.
Supplemental Medicare laws are reviewed each fall by the government and changes are often made. It is important to know the details of this important medical coverage in order to assure adequate health care protection.
Benefits of Term Life InsuranceAmy, My husband and I have started looking into life insurance options. Whole life insurance seems a little confusing and more expensive. Is term life insurance the better option? Sincerely, Concerned Parents
One of the big benefits of going with term life insurance is that the insurance premiums you have to pay are much lower than comparable whole life insurance policies. With a whole life insurance policy, you are paying for the death benefit as well as an investment component that grows a cash value. With a term policy, you only pay for the death benefit. That means that the monthly or annual premium is going to be much less overall. Given the choice of cheap life insurance versus more expensive insurance providing the same benefit, I will take the cheaper option.
Higher Death Benefits When You Need Them
For the majority of people, then need life insurance the most when they are young adults. Many people buy a home, get married, and have kids during this time of their lives. While they have a mortgage and other kinds of obligations, it is important to have a large life insurance benefit available to them. Most term life insurance policy last for 20 or 30 years. This is usually enough time to get their debt paid down, get their kids out of the house, and save up some money for retirement. Then if they die, it wouldn’t be as catastrophic for the other members of the family financially. With term life insurance, if you spend $30 a month, the death benefit that you get will be much higher than if you put $30 into whole life insurance. This provides more potential money for your loved ones if you were to pass away without having to spend any more on premiums.
Gives You Control Over Investments
Many people use whole life insurance products as a type of long-term investment strategy. The problem with this is that you do not have any control over the investments that the insurance company makes with your money. The returns are generally very low, and you could probably do a lot better on your own. With term life insurance, you just pay for the death benefit and then you can use the rest of the money that you would have spent on a whole policy to invest on your own. The returns will be much better, and you’ll have full control over the investments that you choose to put money into.
Overall, term life insurance is the way to go for most people who are looking to buy coverage.
The Best Funeral Insurance Policies
I decided to invest in a funeral insurance so my children could easily cover my funeral arrangements. I have been thinking about getting cremated and would really like having all my family get together. I am also worried about my children having to pay taxes on my estate so they can get their inheritance.
I spent a lot of time thinking of ways to make things easier for my children. They recently graduated from college and I know they have financial problems of their own. I want them to use their inheritance to cover their student loans and perhaps put a down payment on a nice house.
The best way to help out my children from a financial point of view was to invest in a funeral insurance. I did a lot of research on different insurance providers and selected one with a great reputation. I found a very affordable insurance provider but did not want to purchase a policy from this insurance provider because this company was created only a few years ago.
My children thought that my funeral insurance policy was unnecessary. I think they were uncomfortable with this topic but we sat down and had a long talk. We all felt better once we had this long talk. My children agreed that my policy would be very helpful. They know how to cash it and already have some plans on how to use the money.
My new insurance policy made me feel a lot better. I am more confident about the future and I do not worry as much about what my children will do once I am not there. I chose an excellent insurance provider and know I can trust them. Besides, my insurance policy is very affordable considering what is covers.
Is a Medicare Advantage Plan Right for Me?Amy, Is a Medicare Advantage Plan a better idea than Traditional Medicare combined with a Medicare supplement? Medicare Advantage seems to have a lot more options, but it is really confusing. Thanks, Concerned Almost Senior
Concerned Almost Senior,
Many people have questions and concerns regarding how their insurance benefits will change as they become old enough to qualify for Medicare. There are two different routes that people who are eligible for Medicare can take. They have the option of taking standard Medicare insurance or enrolling in a Medicare Advantage plan. Both plans are effective for certain circumstances. Making the decision to go with one plan or the other largely depends on a person’s individual situation concerning their medical care as well as their finances.
What Is Medicare Advantage?
Medicare Advantage is a program that pays private insurance companies a certain amount of money each month to cover medical expenses for those who are eligible for Medicare. Instead of utilizing the standard Medicare insurance plan individuals who enroll in Medicare Advantage pay for the majority of their medical expenses through a private insurance company. They are still eligible for and receiving Medicare benefits, but the process is different than receiving standard Medicare insurance.
Benefits Of Medicare Advantage
There are a number of benefits to enrolling in Medicare Advantage. One such benefit is the ability to keep the same insurance company while still receiving Medicare benefits. Individuals who have been with a particular insurance company for several years are often unwilling to leave that company when they become old enough to receive Medicare benefits. Enrolling in Medicare Advantage allows them to receive their benefits through a private insurance company.
Those who are eligible for Medicare benefits qualify for Medicare Advantage if they are able to find a private insurance company that will allow Medicare to pay a portion of the monthly premium. For the most part, those who are already established with a private insurance company have the option of enrolling in this program which allows them to continue receiving private insurance benefits that are supplemented by Medicare.
Medicare Advantage Versus Standard Medicare Insurance
Standard Medicare insurance typically pays for all necessary medical expenses for individuals who are old enough to receive Medicare or for those who have a disability. However, this sometimes forces patients to find a new physician that will accept Medicare. Medicare Advantage eliminates many of these hurdles because the benefits are paid directly to the private insurance company as part of the monthly premium. This eliminates the problem of having to find a medical facility that accepts Medicare. However, it also means that the patient may have to pay additional premiums and co-pays. They are responsible for co-pays just as they would be if they did not have Medicare insurance at all. Moreover, they are also responsible for any additional monthly premiums that is beyond the amount which is covered by Medicare.
Each individual must take into account their physical and financial health when deciding which type of Medicare program to enroll in. Both programs offer open enrollment so the decision should come down to carefully evaluating one’s needs and making the decision that provides the best health care at an affordable price.
It’s Time To Start A Budget
Personal financial security begins with a well planned out financial budget that you stick to. Any sensible person understands that you need to spend less than you earn. Overspending is often what leads to debt and even financial ruin for many people. Having a budget and sticking to it allows people to stay on track and reach their financial goals.
Your budget should be accurate and detailed, very detailed. The more detail you can put into your budget the easier it will be to stick to it. Do not just estimate utility bills like your electric or gas. Take a look at your bills over the past 12 months and calculate an average. Even better yet, contact your utility providers and see if they offer budgeting plans. Most will let you setup a plan where you pay the same amount every month, regardless of your usage. This allows you to easier plan for utilities in your budget.
Calculate what you spend a week on groceries, gas for your car, auto insurance, lunches if you eat out at work, and anything else you are spending money for on a regular basis. Often times making a list like this will help to illustrate places where you can cut back on some unneeded expenses. For example, do you really need that $4.00 coffee at Starbucks every morning? How much money would you save a week if you brewed a cup of coffee at home instead? How much would you save a month?
Now comes the hard part. How much money should you budget for entertainment or other purchases? This is going to be different for each person. Do you go to the movies a lot? Do you go out for happy hour each week? Are you a fan of live sporting events and attend them regularly? What about concerts or comedy shows? Maybe you have a hobby like golf that you need to set money aside for. The key thing is to make a realistic entertainment budget. If you make it too conservative, you will find yourself hampered to stay within your budget each week or each month. This is where most people then give up on the whole idea. If you set the entertainment budget too big, you are likely to spend up to that limit and not be saving as much money as you could be.
What I normally advise someone to do is set a fairly loose budget for entertainment. See how it is working for you. If you need to and feel that you could tighten it a little, you can always make that adjustment and save more. If you make an error the other way though and make it too tight, as I mentioned, you are more likely to give up on the whole idea of a budget and never go back to it.
Setting a budget should be your first step in setting up financial goals. It is hard to set financial goals when you do not have an idea of what your monthly savings is going to be. Get started today. Set a budget and stick to it.