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9 Medicare Mistakes

Wed, 01 Sep 2021 22:58:39 GMT

9 Important Medicare Mistakes to Avoid

Medicare is complicated. This is the major criticism against it. Many Medicare mistakes occur on a regular basis. Avoiding these mistakes ensures that you’ll have far fewer challenges in getting the care you require.

If you haven’t enrolled in Medicare yet, you’ll be well ahead of the game by keeping these mistakes in mind. Prevention is the best medicine.

If you’re currently enrolled, you can save yourself a lot of money and grief by determining that you’re not committing any of these common mistakes.

Avoid these common Medicare mistakes:

1. Assuming that the best Part D Plan is the same as that of your spouse. Consider your prescription needs. They may not be the same as your spouse’s needs. Be sure to determine the coverage for the specific medications you take on a regular basis.

· Determine your out-of-pocket expenses separately for yourself and your spouse. Ensure that you’re both on the best plan for your individual situations.

2. Assuming you haven’t worked enough to qualify for Medicare. It’s only necessary to work for 40 quarters, or 10 years, in order to avoid paying the dreaded Part A premiums. Part A covers hospital expenses. Be certain that you don’t qualify instead of making assumptions.

3. Believing that open enrollment is the only time you can make a change. There are qualifying circumstances that will allow you to change your plan outside of the usual October 15 ^th through December 7 ^th window. Do your research to see if any apply to you.

4. Not realizing that you can sign up for Medicare when you turn 65:

· If you’re not receiving social security benefits, you’ll have to sign up for Medicare manually. It’s possible to sign up online.

· If you are receiving social security benefits, you’re automatically enrolled in Medicare.

5. Paying significantly more in premiums due to a slight increase in income. Earning more than $85,000 per year can increase your premiums significantly. If you’re close to the limit, it’s worthwhile to make a few adjustments to stay below the $85,000 ceiling.

6. Attempting to combine a health savings account and Medicare Part A. You can’t do both. You can continue contributing to your HSA after the age of 65, but you can’t enroll for Part A coverage. Determine which is more valuable for you.

7. Failing to get expert advice. Given how complicated Medicare can be, one of the worst things you can do is to trust the advice of a friend.

· Your unique financial and health situations are important factors to consider when making Medicare decisions. Your friend’s advice is influenced by his own situation. If you have questions, find a true expert.

8. Failing to sign up because you’re still employed. Depending on the quality of your employer’s insurance plan, it can be very advantageous to sign up for Medicare when you reach 65.

9. Assuming your healthcare providers will still be part of your Medicare Advantage plan. Advantage plans require that your hospital and healthcare providers be part of the plan. Otherwise, you’ll pay more in co-payments.

· You can even be denied full coverage for a medical emergency. Choose a plan that includes your doctor or find another doctor.

By avoiding these common Medicare mistakes, you can ensure that you have the most economical coverage for your situation. For financial benefits and your own peace of mind, take the time to examine your current coverage.

Choosing the Best Type of Life Insurance for You

Wed, 22 Apr 2020 22:56:39 GMT

Choosing the Best Type of Life Insurance for You

Life insurance is one of those things that most of us know we need, but we don’t really know what kind to get, how much we should get, when we should get it, or how long we should keep it. Fortunately, it’s not really that complicated. If you understand the options, many times the solution presents itself.

There are two principal types of life insurance:

1. Term life insurance provides a death benefit for a predetermined number of years. The term varies but is usually between 5 and 30 years. The premiums are fixed over the lifetime of the agreement. The premiums are calculated based on a variety of factors, but age and current health have the biggest influence. It all comes down to life expectancy.

• Obviously, a 10-year term policy for a 70-year old will be more expensive than the same policy for a 30-year old, all other things being equal. Similarly, two people of the same age and gender will pay different rates if one is obese and smokes.

• Term life insurance is the least expensive type of life insurance.

2. Whole (permanent) life insurance has a death benefit and combines it with an investment or savings account. But this policy covers you until your death; there is no set expiration date. The premiums are fixed or can vary, depending on the details of the policy.

• The premiums are dependent on your age, gender, health, medical history, and more, similar to a term-policy.

• Whole life isn’t the optimum choice for most folks. While it does accumulate a cash value through the investing/savings aspect, the premiums are several times more expensive that comparable term life insurance coverage. It isn’t the best tool for saving.

• Whole life insurance does allow the policyholder to borrow against the current cash value. But this diminishes the value of the policy until the money is paid back. Most financial experts consider whole life insurance to be a poor choice.

In between term and whole life insurance, there are several different styles, including universal life insurance, last-to-die and first-to-die policies that cover both spouses, and more. However, if you understand the concepts of term and whole life insurance, it will be easy to understand any other type of life insurance your insurance professional might recommend.

Consider your life circumstances:

1. Single and no dependents. Most people in this category do not need life insurance. One of the few exceptions might be if you’re parents are not financially well off; you might want to get a small policy to pay for your funeral / burial costs.

2. Recently married. Consider how your spouse would fare without you. If you don’t have children, you probably don’t need life insurance, yet. However, if your spouse is not well employed and likely to struggle long-term without your salary, it is worth considering.

3. Expecting a baby. Now is the time most responsible future parents will purchase life insurance if they are able to do so. Consider how much coverage it will take to cover your take home pay until your children are at least 18. You might want to consider the cost of college as well.

• Remember that life insurance payouts are not normally taxed. You don’t necessarily need to cover your entire salary, just the take home portion. This will allow your family to maintain the same standard of living. If you already have life insurance, you should revisit your amount of coverage anytime a new child is on the way.

4. Retired. Your term insurance has probably run out by now. Ideally, you would also have a healthy nest egg, your house paid off, and all your kids out of your hair, reducing your need for life insurance. Life insurance premiums at retirement age get very expensive, too.

• If you do decide to get permanent insurance, now might be the time to cancel it and get the cash value out of the policy. You probably don’t need the policy any longer anyway.

For financial security, you’ll most likely need some life insurance at some point in your life; however, very few people need it throughout their adulthood.

The easiest way to determine if you need it is to consider the financial impact your family would have endure if you were gone. You want to be able to eliminate that impact to the best of your ability.

Do you have all the insurance you need?

Tue, 12 Mar 2019 22:53:36 GMT

Do You Have All the Insurance You Need?

Part of your financial plan should include protecting your assets, including your possessions, as well as your income, loved ones and health-related financial concerns. Insurance isn't very exciting, and it can certainly be expensive. But when you need it, you’ll be glad you have it. Unfortunately, there’s no single policy that will give you all the coverage you need.

Take inventory of your insurance coverage. Do you have these 5 important policies?

Life Insurance

Life insurance protects those people who depend on you financially if you die unexpectedly. Consider the hardships on your loved ones if you should happen to die prematurely.

How do you determine how much life insurance you should get?

Consider these matters:

• Replacing your income. How much and for how long?

• Last illness expenses

• Funeral expenses

• Would you like to pay off certain debts, like your mortgage, so you don’t leave those behind for your loved ones?

No one likes to think about these things. However, if you deal with it now, it's something your family doesn't have to deal with later.

Health Insurance

Health insurance is expensive, but health care is expensive too, really expensive. A simple trip to the doctor can easily be several hundred dollars. A routine surgery that only results in being in the hospital for a couple of hours can be over $10,000.

Health insurance costs are a burden, but the cost of a genuine medical issue can be catastrophic.

If this isn't something you can get through your employer, be prepared to do some legwork to find a policy that’s right for you.

Long-Term Disability Insurance

This insurance replaces a portion of your lost income if you become unable to work. The cost depends on the amount of income that you wish to replace, your age, health, the length, and the limits of coverage. Policies will also differ regarding what they consider to be a “disability.”

This coverage can also be quite expensive. Hopefully, you can also get this through your employer. If not, sit down with your life or health insurance agent to go over the details of this important insurance.

Homeowners Insurance

If you still owe money on your home, your lender requires homeowners insurance. If you don't owe money on your home, you should still carry this type of financial protection. Consider how many thousands of dollars your house and the contents would cost to replace.

The price of homeowners insurance is quite small compared to the amount of coverage you're getting.

Besides covering the structure of the house and its contents, some policies will even cover putting you up in a hotel until your house is repaired. Any injuries that occur to friends and strangers are also covered under your house policy.

Consider what you need; there are a lot of options for benefits, limits, and price.

Automobile Insurance

Nearly all states require automobile insurance to varying degrees (New Hampshire is the exception). Everyone should have coverage, even if you drive a 1975 Chevy Nova that has been paid off for years. Even in that case, you’re still financially responsible for the damage you cause to other vehicles and property.

Without automobile insurance, you might face a lawsuit that could potentially cost you everything you own. Ensure you have all the coverage you need, not only for your own vehicle, but to cover your liability as well.

Conclusion

Insurance isn't exciting or sexy, but it's a necessity. When looking at new policies, shop around because prices and coverage can differ widely from one company to the next.

One tip to save some money: Get a policy with a higher deductible. The more you have to pay before the insurance kicks-in, the less that insurance coverage will cost you.

Do your homework and find an insurance professional you can trust. Don't just focus on what insurance costs you; think of what it will cost you if you don't have it.