In the current challenging credit market, concerns have been raised about the [...]]]> Obtaining life insurance is a necessary way to ensure that expenses are covered after the death of a loved one. This is certainly a benefit of any life insurance policy. Another benefit, not often considered, is the benefit to your estate plan.

Life Insurance Concerns

In the current challenging credit market, concerns have been raised about the solvency of life insurance companies and the chances of not receiving full policy benefits. This may be another barrier keeping both attorneys and clients from recommending life insurance as an estate planning tool.

There are several ways to evaluate the strength of an insurance company before investing in a policy. Generally, you will pay more in premiums to be insured by a stronger company. You and your estate planning lawyer may also evaluate a company’s economic capital. This involves doing research into whether analysts think the company has enough resources to meet their actual obligations. In addition, third parties like Moody’s and Standard & Poor evaluate life insurance companies and can provide useful information.

Advantages of Using Life Insurance

There are three types of life insurance: whole life, term life and variable life. Whole life does exactly as its name implies, covering you for your entire life as long as premiums are paid. Term life covers you for a specific period of time that is specified by the policy “term.” Variable life insurance has variable returns and a variable investment component because the policy holder, not the insurance company, determines where the appropriate portion of their premium is invested.

Regardless of the type of policy, life insurance benefits are paid directly to a beneficiary in full upon your death. Because of this, your beneficiary receives all assets immediately without having to go to probate court or pay taxes. Also, since the full policy amount is available upon death, life insurance is a good way to ensure a certain amount of money will be available at any time even if an unfortunate or sudden event should result in unexpected death.

For federal estate tax purposes, life insurance benefits are considered to be part of your estate. Fortunately, the beneficiary to a life insurance policy does not have to be a person. You can name an irrevocable trust as the beneficiary to your life insurance policy, in which case the money will pass directly into the trust and avoid all estate taxes.

Even facing an uncertain economic environment, life insurance can be a useful and effective aspect of your estate plan. Each type of life insurance policy contains differing levels of complexity and benefit, so it is important to consult with an estate planning lawyer when deciding which plan is best for you.

By Guest Writer: Bernard Krooks

The Medicare Advantage medical coverage is offered by [...]]]> For seniors who want supplement insurance, many private insurance companies offer Medicare Advantage plans with low premiums. Eligible seniors include those enrolled in Medicare Part B. Premiums are offered at lower rates because the federal government provides insurance companies subsidies to enroll seniors in the medicare supplement plans.

The Medicare Advantage medical coverage is offered by private insurance companies and is an alternative to Medicare. The following types of Medicare Advantage plans all offer medical and drug coverage together, making it simpler to purchase one policy instead of several separate policies.

1)Medicare health maintenance organizations are less expensive, but there are limitations about going outside of the network of doctors and hospitals for medical treatment.

2)Preferred-provider organizations, have a network of preferred doctors and hospitals within a state. They allow patients to see providers out of the network at increased copayments.

3) Private fee-for-service plans allows the most freedom by letting the patient see any doctor of choice that accepts the health insurance. If you already have a doctor, make sure they participate as a provider before deciding on this type of coverage.

Many Medicare Advantage plans also include vision and dental coverage and have lower copays than Medicare. Although the co-pays for more expensive services such as hospitilization and surgery tend to be higher. If seniors have had hospitalizations in the past, make sure to check out the limitations on hospital coverage with the Medicare Advantage plans.

It is important to understand all the restrictions for Medicare Advantage plans before choosing. Take the time to ask a reputable insurance agent about all the Medicare options available and compare them with other types of supplemental insurance to make an informed decision about your medical coverage.

By Guest Writer: Elliot Bigman

As an example: if you have a deductible set at $5000 and your visit to a hospital results in [...]]]> A major or catastrophic medical insurance plan, although being rather speculative, is fairly cheap but is also deductible. The money that you pay up from your own funds before the insurer meets the balance is the deductible.

As an example: if you have a deductible set at $5000 and your visit to a hospital results in a bill of $12, 000 your insurance provider will pay $7,000 only towards the bill and you meet the balance. On this type of cover, the larger your deductible is, the smaller the premium. By taking up this option, you will be gambling on not needing any major medical expense soon.

It would be a reasonable gamble. One survey that was conducted showed that in the US, 90% of the population has medical expenses less than $2000, and for 73%, their expenses were less than $500 per annum.

Two main groups favor the catastrophic health insurance: the young who are in their 20’s who feel their health is not at risk and elderly men between 50 and 65 who would be waiting on Medicare eligibility.

The catastrophic health insurance plan is designed to cover only against major hospital expenses rather than day-to-day medical expenses. It will not normally cover doctor’s visits, maternity care, or prescription drugs. The cover usually excludes mental health conditions, substance abuse and some pre-existing medical conditions.

This catastrophic health insurance plan can be bought as a group plan or on an individual basis. Of late, many organizations have started to encourage their employees to take up this type of cover. The highest lifetime limit can be as much as $3 million.

Rates do vary on age and the area in which you live. In some states the savings on premiums can be up to two-thirds. As an example: a female of 21 years, non-smoker, could have a monthly premium of only $30.

Before taking a decision to select this cover, get some professional advice from agents, insurance companies or both and compare quotes.

By Guest Writer: Jack Adams

The Medicare Advantage medical coverage is offered by [...]]]> For seniors who want supplement insurance, many private insurance companies offer Medicare Advantage plans with low premiums. Eligible seniors include those enrolled in Medicare Part B. Premiums are offered at lower rates because the federal government provides insurance companies subsidies to enroll seniors in the medicare supplement plans.

The Medicare Advantage medical coverage is offered by private insurance companies and is an alternative to Medicare. The following types of Medicare Advantage plans all offer medical and drug coverage together, making it simpler to purchase one policy instead of several separate policies.
1)Medicare health maintenance organizations are less expensive, but there are limitations about going outside of the network of doctors and hospitals for medical treatment.

2)Preferred-provider organizations, have a network of preferred doctors and hospitals within a state. They allow patients to see providers out of the network at increased copayments.

3) Private fee-for-service plans allows the most freedom by letting the patient see any doctor of choice that accepts the health insurance. If you already have a doctor, make sure they participate as a provider before deciding on this type of coverage.

Many Medicare Advantage plans also include vision and dental coverage and have lower copays than Medicare. Although the co-pays for more expensive services such as hospitilization and surgery tend to be higher. If seniors have had hospitalizations in the past, make sure to check out the limitations on hospital coverage with the Medicare Advantage plans.

It is important to understand all the restrictions for Medicare Advantage plans before choosing. Take the time to ask a reputable insurance agent about all the Medicare options available and compare them with other types of supplemental insurance to make an informed decision about your medical coverage.

By Guest Writer: Elliot Bigman