We provide in-depth information and resources about important and significant insurance reform and changes.
Regardless of whether you love your job or wish you’d had another, most people dream of retiring one day. It used to be that if you put in the time and paid your dues, and your taxes, anyone would be able to achieve the status, with Social Security and company pensions footing the bill. But as the world economy changes, and the prospects of such funds dissipates, many are starting to wonder if they will ever be able to retire, and if they do, where will their money come from? Tom Hegna, author of foxbusiness.com article, “Should Annuities Provide Your Retirement Paycheck?” tackles this growing concern and offers insight about the popular investment.
There are many expenses that creep up during retirement. Not only will you be responsible for your living necessities, but you’ll also need some cash for recreational activities. After all, you’ve got a lot more time on your hands. A lifetime income annuity allows you to collect a paycheck every month, for a predetermined time period by paying a lump sum upfront. If you opt for the lifetime payment option, you’re significantly decreasing the risk of outliving your savings, which is a huge concern for most retirees. The volatility of the market has affected many who recently retired, or who expected to retire soon. Unfortunately, that dream was lost for some. Annuities, unlike other investment options, are not as affected by market swings, and therefore provide more stability. As always though, when making a financial plan for the future, it’s encouraged to seek advice from a trusted financial advisor. Contract terms for annuities are typically complex, and having an expert walk you through the process is recommended.
The rising cost of health insurance has been in the news quite a bit lately, and a recent report has exposed just how much Americans are paying for coverage. According to Milliman, a consultant firm that works with companies on employee benefits, the average family of four who is enlisted in health insurance through the workplace pays approximately $20,728 annually for coverage, as reported in the Huffington Post article, “Health Care Costs to Exceed a Record $20,000 Per Year For Families with Insurance, Study Says.” The study found that the cost of premiums for a preferred provider organization plan, a very common option, is around $5,114. With out-of-pocket costs, such as co-payments and prescription drugs, reaching $3,470, a family of four pays approximately $8,584 a year for health insurance. The remainder of the bill, approximately $12,144, is picked up by the employer. It’s no wonder nearly 50 million Americans went without health insurance in 2010, as families and employers struggle to be able to afford it.
The cost of health care continues to rise, forcing many employers to either pass the bill down to their workers, or to eliminate benefits all together. Despite all of the additional spending, measures of health care quality show a decrease in satisfaction. The rate of cost increase from 2011-2012 was approximately 7%, which is less than in previous years, leading some to believe Obama’s health care reform is driving costs down. However, this minor milestone is hard to focus on with the overall cost setting a new record high. It has been estimated that spending on physician services will reach about $6,647 and hospital stays will rise to $6,531, making these two components the most expensive of a family’s annual health care expenses. The future of health care costs in America is still very vague, but everyone can agree that something’s got to give.
There are obviously several differences between men and women, but many don’t realize that cost of auto insurance is one of them. According to the cbsnews.com story, “How men can beat gender bias in car insurance,” by Kathy Kristof, men spend an average of $15,000 more than women on car insurance over a lifetime. The difference between costs is largest before the age of 21, decreases significantly once that milestone is reached, and continues to decrease as middle age is approached. It’s not until much later in life that the disparity grows once again. Why the difference in rates, many ask. The simple truth is that men tend to drive more aggressively and happen to get into more accidents.
There isn’t much anyone can do about the gender rating that occurs when writing an auto insurance policy, but there are six simple strategies that can help men keep their rates down.
I recently read an interesting article from Kiplinger, titled, “Group Versus Individual Life Insurance Policies.” It grabbed my attention as I recall debating this topic recently with my spouse as we decided to add more coverage to our existing policy. According to the author, Kimberly Lankford, comparing policy rates is always the place to start, as an individual plan may be cheaper if you’re in good health and relatively young. Answering few medical questions is very common when qualifying for group coverage, but you don’t need to have a medical exam or provide quite as much detail as with an individual policy. This allows some with minor medical conditions to afford life insurance at a lesser rate through a group plan. Insurers however, typically assume that the people in the group are not the healthiest, leading them to charge more for everyone. Individual rates are often the lowest for people in great physical health, taking height, weight, cholesterol level and other factors into consideration.
Another major difference between group and individual life insurance policies is the number of years the rates are in effect. Several group policies set premiums by age, often in 5 year increments. So if you purchase the policy at age 36, your rate will likely increase at age 40, then again at 45, 50, and so on. Typically, however, when you purchase an individual policy, you can lock in the premium for up to 30 years. And with rates at a 50 year low, an individual life insurance policy is often the best route for those in good health. Again, it is always wise to explore all available options and discuss them with a trusted financial advisor before making any important investment decision.
There is a lot of money exchanged in the health care world, making it not at all surprising that there are plenty of criminals looking to get their hands on it. Fraudulent claims have become a serious issue, which is why several local and federal officials met recently to discuss how to prevent Medicare fraud against seniors near Framingham, Massachusetts. The dominant topic of conversation was the importance of awareness amongst the population, according to the MetroWest Daily News article, “Leaders: Public is best defense against health care fraud.” Barbara Anthony, undersecretary for the state Office of Consumer Affairs and Business Regulation pointed out that many people intensely look over their credit card bill, but don’t do the same for their medical bills. Anthony urges everyone to pick up the phone and let authorities know if something looks odd.
Many criminals are successful in their endeavors by duping seniors into giving them their Medicare numbers and then using them to file false claims. Supervisory special agent for the FBI’s Boston Bureau, Neil Power, claims that home health care services are responsible for the most fraudulent cases. He also stated that as much as 10% of the total spent on health care has the potential to be fraudulent, which is why it’s so important to put a stop to the common practice. There are federally funded patrols, which mostly follow up on tips from consumers or health industry sources, located in every state. They consist predominantly of volunteers, who often spend a great deal of time helping seniors understand their Medicare bills better to search for signs of fraud. Without effort from the general population, it will remain difficult to combat the growing Medicare fraud problem.
Stumble Upon
Del.icio.us
Buzz