Reasons Why You Need Life Insurance
Life insurance is a type of insurance policy that pays out if you die during the term of the policy. Traditionally, there were many different types of life insurance policies as well as various levels of coverage. However, over time these distinctions have blurred and almost every life insurance company offers just one basic type.
Today, with more people having access to health care than ever before (due in part to the Affordable Care Act), there is less need for life insurance in some cases because many insurers will pay out money directly to the patient's medical providers if they die. However, for most people it still makes sense to buy an inexpensive policy and offset both their funeral expenses and final expenses.
In this article, we'll be looking at four main reasons why you need to have life insurance as part of your overall financial plan.
1. Burial Costs and Final Expenses
The average funeral costs around $7,000 but can cost much more depending on the location and how much the items in the casket cost. That's a lot of money to just drop out of your bank account or come up with out of nowhere when it's needed most. With a life insurance policy, you can cover these costs ahead of time or name someone (such as your spouse) the beneficiary so that they can use the money however they see fit.
Some funeral homes will not let you put your policy in their name directly; they want to be paid directly for their services. Ask around and find out which companies will accept payment via the life insurance policy.
2. Paying Off Debts
If you die with debts, your loved ones will have to pay them off without your income and chances are that the combination of all the debts may very well exceed what they can afford to pay off without you. Before getting a life insurance policy, make sure that you either pay off all of your debts or that any remaining debts are set up where if something happens to you, there is no penalty to your beneficiaries or family members for paying it off early.
3. Estate Taxes
If you have a lot of property, cash, savings and other assets such as jewelry or artwork, then there will be a tax bill that is determined when the accountants go through all of your items after passing away. You don't want your loved ones to have to pay this bill off.
With a life insurance policy already in place for them, they can use the money to pay off this tax bill and not have to worry about it costing their inheritance. With this benefit also comes the ability to set up a trust for any minor children that are left behind so that you can protect their inheritance in case something happens to them before they reach adulthood.
4. Protection for Your Family Members in the Event of Your Death
If you have children, you want to make sure that they are taken care of when your time comes. No matter how well they do financially, some people could have a hard or even impossible time just getting by on their own. While no one can predict when you will die, you don't want to leave behind an inheritance where your parents are struggling and wonder what they will do next. You can ensure that this never happens with a life insurance policy.
There are other types of insurance along with life insurance that you should have as well. Auto insurance, health insurance, homeowners or renters insurance and umbrella insurance are some of the most popular ones to consider and each one has its own benefits. While these other types of policies will vary in cost based on a number of factors, your life insurance policy should be relatively inexpensive and can be added to your monthly budget with no hardship at all.
If you'd like more information about life insurance, please fill out the form below or call (800) 639-0179.
Coverage for Seniors - Medicare Supplements, Long-Term Care & More
Medicare Part D helps cover prescription drug costs. But that's not all the program does. Read more to learn what it covers, and how to best use it.
By Alison Storm and Tamara Eberlein Posted Sept 09 2014
There are many reasons why you should get Medicare. It is the most common source of health insurance coverage after retirement for Americans over the age 65. Medicare Part A covers hospital stays and skilled nursing care at home if needed after a hospital stay. Medicare Part B covers doctor visits, medical procedures and tests. And, depending on your insurance plan, Medicare Part D covers prescription drug costs.
As a retiree or soon-to-be retiree, you've probably heard of these terms. But what else is Medicare? In this article we cover the basics – things to know about Medicare before you retire.
What Is Medicare?
Medicare is a health insurance program that covers member's copayments, deductibles and coinsurance (coverage for amounts over a certain percentage) on some covered services and supplies provided by approved providers under its plan.
Medicare Part A
Medicare Part A is hospital insurance and it's sometimes referred to as "hospitalization." This program primarily covers inpatient hospital stays including rehabilitation services, hospice care, home health services and skilled nursing facility care.
Most people will not be required to make monthly premium payments for Part A because they or their spouse paid enough Medicare payroll tax during their careers. If you don't want Part A coverage – or you don't qualify for premium-free Part A – you can opt out by paying a monthly premium that is taken out of your Social Security check.
With Medicare Part B, there are two parts to the program: the deductible and coinsurance.
Conclusion
The deductible for Medicare Part B is $166. This amount is the member's responsibility in 2015 before the plan kicks in to cover doctor visits and outpatient services. After the deductible has been met, Medicare Part B covers from 80-100 percent of the remaining eligible expenses. In 2015, Medicare Part B premiums are around $104 a month but they can vary based on your income and other factors.
Medicare Part D is prescription drug insurance that covers certain classes of medications approved by the U.S. Food and Drug Administration (FDA). These include drugs that treat high blood pressure, depression, osteoporosis, diabetes and epilepsy among other conditions.