Life Insurance For Empty Nesters

January 27, 2021 16:01 newlambertagency

Many people buy life insurance so that their children have a financially secure future. It offers peace of mind that no matter what, your children won’t have to struggle in absence of your presence.

But about when children leave their nest and parents become empty nesters? Does it still make sense to keep your life insurance coverage when your children aren’t dependent on you?

Granted now you’ll have fewer financial obligations, but that does not mean you don’t require the financial security that insurance provides.

Let’s take a look at why life insurance for empty nesters is important:

Support a surviving spouse

When an earning life partner passes away, the surviving spouse can be left with a lot of financial obligations without any means to meet those debts. The benefits from the life insurance can help your surviving spouse pay off the mortgage and any other large debts, as well as cover any funeral expenses. This not only takes off some financial burden from your spouse but also helps them plan the next move without any pressure.

Support for adult children

Just because you’re children have moved out doesn’t mean they won’t require financial help from you. It’s increasingly common these days to see adult children move back home, relying on their parents for at least a portion of their financial support. In such a situation, life insurance for empty nesters seems like the saving grace that’s got your back. It can be a critical part of your family’s overall financial plan, helping to ensure that their needs are always met.

Provide bequests to heirs

Many people want to leave something for their heir so that they can be financially independent and are not struggling to find their way. If you’re one of those who want to bequeath money or assets to your children or grandchildren, life insurance is the way to go. With the economy forcing the young generation to work twice as hard, your financial support could prove to be extremely beneficial.

Back-up retirement income

When one spouse passes away, the other might see a drastic reduction in pension or Social Security payments and in some cases, may even lose that relied-upon income completely.  Whether a surviving spouse gets pension payments depends entirely on how those benefits were set up in the first place, and all too often those payments stop coming when the spouse who had the pension dies. With the support of permanent life insurance, retirement can be maintained for the surviving spouse so that they don’t face a sudden budget crisis.

Also,

  • Permanent life insurance provides coverage and peace of mind that can’t be outlived.
  • Some policies allow for flexible premiums and death benefits.
  • Policies have a cash value that accumulates over time with the potential to borrow from the cash value.
  • Death benefits are generally tax-free to named beneficiaries in most cases.

These are just a few reasons why having life insurance is important even after kids have flown the nest. If you’re convinced and are looking for ways to enhance your financial security then consult an agent or agency that can help you guide with further steps.

Why You Should Prioritize Saving for Retirement Care

January 25, 2021 17:18 newlambertagency

As per a report from National Institute on Retirement Security, about two out of three 21- to 32-year-olds haven’t started retirement savings.

Why is that so?

For one thing, the approach and attitude towards retirement have completely changed. The young working generation doesn’t believe in waiting for decades to live the “good life” or put a pin on their dreams for a day that may or may not come.

There’s nothing wrong with this approach. But there is a basic miscalculation in decision-making with not starting as early as possible when it comes to planning for your financial future.

That’s because the earlier you start, the easier it is.

Although retirement care is the last thing in this generation’s mind, just taking an initiative could prove to be extremely beneficial in the long run.

Here’s why:

  • The longer money works, the better the potential returns.
  • Retirement savings offer a chance to reduce taxes.
  • A nest egg increases options beyond retirement.

Here’s how you can prepare for retirement care:

Increase your knowledge

Whether you’re planning to pay for retirement care with your personal savings or via government assistance, you must be aware of the potential costs and the various effective ways to pay for your retirement care. For instance, Medicare doesn’t pay for on-going long-term care, but Medicaid pays for some of the healthcare costs depending on your eligibility.

Develop a plan

The ideal thing to do for your retirement is to plan how much money you need to save as early as possible. You must have a realistic plan that’ll help you save money without taking anything away from your present living situation. Considering retirement options can be overwhelming so seeking help from a financial planner can help ease that burden.

Communicate your references

The smarter way to prepare for retirement care is before you or a loved one becomes ill, requiring urgent care. If you think you might become a caregiver in the future, you should start learning about subjects such as Medicare, living wills, and powers of attorney. It’s also best to communicate your preferences to your family members – about how you would like to receive care or what kind of retirement care would you prefer.

And saving early for retirement will not only help you with retirement savings but also developing an early habit of not spending 100% of your paycheck, you’ll be better positioned to save for other goals like:

  • Building your own business.
  • Buying your place.
  • Going on the trip of a lifetime.

The bottom line is the younger you start saving and investing, the less you have to work to have a financially secure future.

How Do Life Insurance Death Benefits Pay Out?

January 22, 2021 12:22 newlambertagency

When someone close to you dies, a lot of things go through your mind. Apart from the grief caused to you, you need to make several arrangements. At such a time, the life insurance death benefit is the last thing on your mind.

Many find themselves unsure of how to proceed further to get the death benefit. That’s why it’s important to have an idea of how life insurance works, and how it pays out when someone passes away. This can relieve some of the pressure during your grief.

Let’s take a look at how things work and the kind of issues you may expect:

Filing a claim

The thing about life insurance death benefits is that they’re not paid out automatically from a life insurance policy – that would have been made things easier.

To get the benefit, the beneficiary must first file a claim with the life insurance company. This may be done online or it may require a paper claims filing, depending on the insurance company’s policies.

Being the beneficiary of someone’s life insurance policy, you may be required to provide a copy of the policy along with the claims form. You must also submit a certified copy of the death certificate – it can be obtained through the county or municipality or through the hospital or nursing home in which the insured died.

Many companies take claims submitted through their website. You can also call or write to the insuring company to find out what all is needed.

When benefits are paid

Most companies pay out life insurance death benefits within 30 to 60 days of the date of the claim. Many states allow insurers 30 days to review the claim, after which they can pay it out, deny it, or ask for additional information. If a company denies your claim, it generally provides a reason why.

Most insurance companies are motivated to make the payment as soon as possible to avoid steep interest charges for delaying payment of claims.

Payout delays

As with any process, there could be a delay in payment due to various reasons. One such reason is the one- to two-year contestability clause. Most policies contain this clause, which allows the carrier to investigate the original application to ensure fraud was not committed.

As long as the insurance company cannot prove the insured lied on the application, the benefit will normally be paid. Most policies also contain a suicide clause that allows the company to deny benefits if the insured commits suicide during the first two years of the policy.

Life insurance death benefits may also be delayed in case of homicide as the claims representative may communicate with the detective assigned to the case to rule out the beneficiary as a suspect.

Delays may also arise if:

  1. The insured died during am illegal activity such as DUI.
  2. The insured lied on the application.
  3. The insured omitted health issues or risky hobbies/activities like skydiving.

These are the basic thing to know about the death benefit payout. Hope this puts your mind at ease.

Medicare Part C – Medicare Advantage Plan

January 13, 2021 13:08 newlambertagency

Medicare part C is part of the 4 basic Medicare. Also known as Medicare Advantage Plan (like an HMO or PPO), Part C is an alternative way to get your Original Medicare coverage.

While Medicare Part C covers the same benefits as Medicare Part A including Inpatient care in a hospital, it also includes home health care.

There are 4 types of Medicare Advantage Plans:

  • Health Maintenance Organization plans (HMOs)
  • Preferred Provider Organization plans (PPOs)
  • Special Needs Plans (SNPs)
  • Private Fee-for-Service plans (PFFS)

Some plans under Medicare Part C require you to see in-network providers to qualify for coverage while others might let you see out-of-network providers with less coverage. It’s always better to choose in-network doctors if you decide to enroll in this plan.

The Benefits

With exception of hospice care, Part C includes your Part A and Part B benefits. Many Medicare Advantage plans offer additional coverage beyond Original Medicare. Some of those benefits might include:

  • Routine dental care
  • Routine vision services
  • Routine hearing services
  • Wellness programs called SilverSneakers
  • Prescription medications

Besides the aforementioned benefits, Part C also offers additional benefits today, such as over-the-counter medications, transportation to and from doctor appointments, and adult day-care services.

The Cost

Part C plans may have different costs – some plans charge a monthly premium before enrollment, while they can also have an annual deductible, which is an amount you pay out of pocket before your coverage starts.

There are also plans with $0 premiums and $0 deductibles.

Medical services may require you to pay a copay (a set amount you pay at every visit) or coinsurance (percentage of the total bill)

It is important to compare plans in your service area carefully since costs and coverage can be different from plan to plan. This step will ensure you get all the coverage you need at a cost that fits with your monthly budget.

Enrolling in Medicare Part C

Enrollment in a Medicare Part C plan can be done at different times of the year. First is the Initial Enrollment Period (IEP). This is the period when you first become eligible for Medicare. This enrollment period begins three months before the month you turn 65.

The second opportunity to enroll is during the Fall Open Enrollment Period (OEP), which runs from October 15 to December 7 each year. During the Fall OEP, you can switch from Original Medicare to a Medicare Advantage plan. You can also change from one Medicare Advantage plan to another.

The third time is from January 1 to March 31, during which, you can switch from one Medicare Advantage plan to another. However, you cannot change from Original Medicare to a Medicare Advantage plan during this enrollment period.

Obamacare – Pro, Cons, Benefits, and Penalties

January 5, 2021 17:41 newlambertagency

You must be familiar with Obamacare by now. But have you wondered how it works or is it beneficial?

If you have, then this blog post is for you. Let’s just dive into it.

What is Obamacare?

Obamacare is an alternative term for the Patient Protection and Affordable Care Act (ACA) of 2010. As the name implies, it was signed into law by then-President Barack Obama to make healthcare more affordable.

Earlier, insurance companies could exclude people with pre-existing conditions. As a result, the people with the greatest health expenses sometimes had to go without insurance or settle for a policy that did not cover a pre-existing condition.

Obamacare has made it possible for people with pre-existing conditions to afford preventive care which in turn has reduced hospital visits and slowed down the rise of health care costs.

How does it work?

When you enroll in a health insurance plan, you typically pay a monthly premium to keep that plan. Obamacare includes subsidies to help lower-income individuals cover the cost of their plans. These subsidies, also known as tax credits, are still in effect in 2021.

Obamacare also provided payments to insurance companies to keep their deductibles low. Although the Trump administration has cut those payments, the law requires companies to continue to keep the deductibles low.

Let’s look at some Obamacare pros and cons

Pros

Apart from affordable healthcare and coverage for pre-existing conditions, Obamacare has the following pros.

  1. Affordable – As already mentioned, Obamacare has made health insurance very affordable allowing more people to get covered. Also, under the ACA, you can’t be denied coverage because of a pre-existing health problem.
  2. There’s no pre-set limit – Earlier insurance companies used to set certain limits on the amount of money they would spend on an individual consumer. Insurance companies can no longer maintain a pre-set dollar limit on the coverage they provide their customers.
  3. More screenings are covered – The ACA covers many screenings and preventive services that usually have low copays or deductibles.
  4. Prescription drugs cost less – Obamacare aims to make prescription drugs more affordable. The number of prescription and generic drugs covered by the ACA is growing every year.

Cons

  1. Higher premiums – Since insurance companies now provide a wider range of benefits and cover people with pre-existing conditions. This has caused premiums to rise for a lot of people who already had health insurance.
  2. Penalty – The main goal of Obamacare is to have everyone under an insurance plan all year round, If you’re uninsured and don’t obtain an exemption, you must pay a modest fine
  3. Higher Taxes – To help pay for the ACA, several new taxes were proposed. This has caused people with higher incomes to pay more tax.
  4. Signing up can be tricky – The ACA website has had a lot of technical problems when it was first launched. This made it difficult for people to enroll and led to delays and lower-than-expected signups.

Obamacare witnesses change almost every year. Just keep a lookout for all the changes and make a sound decision regarding your health insurance coverage.