Author Archives: Dylan Young

Permanent Life Insurance

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Permanent life insurance, better known as just “life insurance”, is a wholesome type of insurance where the cash value is guaranteed to be paid at the end of a term, and that policy accumulates a cash value as time goes on. In other words, this is the opposite of term life insurance where insurance is only purchased for a designated span of time, and benefits are only received if the insured dies within that span of time.

This type of life-based contract is generally divided into two categories: protection and investment. Protection policies are created to provide a cash sum in the event that the insured dies. This is better known as “term insurance”. On the other hand, investment policies are primarily meant to catalyze capital growth rather than solely protecting the insured with a one-time sum.

Varieties of Permanent Life Insurance

Whole Life Coverage

Whole life insurance is a death benefit (cash sums after passing) for a level premium. For younger people, the premiums are higher because the insurance rises as the insured ages, and so as the people mature, the cumulative value of the premiums rises.

Although the primary point is the death benefit, most whole life coverage includes a cash reserve that can be accessed at any time through a policy loan, which can be retrieved at any time before the passing of the insured. If any of the loans are not paid back before the passing, the cash value is subtracted from the accumulated value of the premiums.

The main advantage of whole life coverage is its death benefit and its consistently increasing value, and the dividends paid in this investment. However, the rate of return is slowed and dividends are not always guaranteed, because these dividends are only shelled out as refunds of “premium over-payments” and therefore do not function like stock dividends.

Universal Life

Universal life coverage is a combination of permanent insurance with a higher flexibility in making premium payments. As a form of permanent life insurance, it also has an increasing cash-value, but unlike the previously mentioned whole life coverage, the premiums and death benefits are flexible.

A flexible death benefit means that the insured can increase or decrease the death benefit, or choose between two options: A and B. Option A is when the death benefit remains primarily constant with lower premiums, whereas Option B pays higher premiums, but as the cash value invested over time rises, so do the death benefits.

Limited Pay

Limited pay is a type of insurance where premiums are only paid for a certain period of time, usually ten to twenty years, with no premiums afterwards. In addition, the benefits are paid usually at age 65, 75, 85, or 100. Another option is a policy without a payment at a specified age, but the insured has the credit of a guaranteed death benefit and no later premiums.

Endowment

Endowment policies are a type of coverage whose value is equal to a benefit at a certain age—the “endowment age”, rather than a set death amount. However, they require higher premiums than whole or universal coverage because premiums are paid over shorter periods and endowment ages come earlier. Endowments are paid regardless of the condition or status of the policy owner’s life.

Variable Universal Life Insurance: The Cash in Your Life

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Variable universal life insurance (or VUL) is a form of life insurance that holds a cash value that is to be spent towards several different accounts—distinct from other types of insurance because of the access to a “death benefit” and the option of investment. VUL is primarily known for its “variety” in allowing the user to invest in separate accounts with different values, such as different stock and bond markets, as well as its “universality” for being flexible to all users and allowing different payment schedules, as opposed to most insurance policies that have a strict payment policy. In addition, it is a permanent life insurance, which is where the death benefit comes in: the user’s pension is still paid as long as there is enough cash value to pay all other costs.

As implied above, variable universal life insurance is a complex policy, with many possibilities. Firstly, the number of accounts available and the type of choices to invest in vary in the different VUL policies. Payment schedules are also subject to flexibility of the user and the offering company. The separate accounts with different investments are kept separate from the overall life insuring policy, and are similar to “mutual funds”—an investment program dealing with a variety of professional holdings. A majority of VUL policies label the insured as the manager of their investments rather than the company, and so there is both a larger risk and/or potential return.

Advantages

There are multiple of advantages in engaging with variable universal life insurance:

  • Greater market growth: the user’s value is invested in multiple accounts that are all vulnerable to market growth or decline.
  • With VUL, the accounts are flexible enough to be adjusted to fit the trend of growth
  • Those with VUL have the advantage of First In, First Out withdrawal
  • Tax advantages: VUL’s returns, such as in death benefits or policy loans, are income tax free. Similarly, it is tax deferrable, making it highly attractive to those in the highest tax brackets
  • Future planning: the cash value that comes from a VUL is often put towards an education or a retirement fund

Disadvantages

In addition however, there are also larger risks that come along with more intensive advantages:

  • By engaging in investment with your insurance policy, the responsibility of the investment is on the user, rather than the insurance company
  • Although the insurance policy is flexible to be adjusted, there will usually be a cost of change
  • Administrative hassle, as VUL involves a lot of understanding and planning
  • High costs: the cash needed in the first place to use VUL successfully is much higher than in other insurance options

Visitor Health Insurance: Choosing the Right Coverage

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Visitor health insurance is a medical coverage that allows non-permanent travelers in a foreign country to obtain protection in the case that they fall ill to sickness or injury during their stay in that host country. This type of medical insurance is a short-term plan, and also accounts for instances of evacuation and repatriation if necessary. In the United States, most visitors are not required to have purchased visitor health insurance. However, those from the European Schengen area, such as Austria, Belgium, and the Czech Republic, are required to show proof of this insurance in order to become eligible for a visitor visa later.

Varieties:

There are several types of visitor health insurance that fall under different Preferred Provider Organization Networks (PPO) networks. For example, those who want coverage for a short span of time may choose to purchase Patriot America’s Insurance, while visitors looking for an economical choice may choose Visitors Care. Similarly, there are different options for short-term, long-term and indefinite lengths of time; coverage that allows exclusive U.S. treatment; domestic or international; group or individual; student or full-time worker, and the extent of coverage, ranging from dental and vision to full body insurance.

Advantages:

While there are types of health insurance for people both inside and outside the United States, the more popular choice has been to purchase insurance from the U.S. — and for good reason too. The United States offers insurance with the most coverage, with an additional list of advantages:

  • Easy access to your own information, such as claim address, ID number, PPO network, etc.
  • No medical exam, excessive paperwork, or membership is required
  • Plans are refundable and renewable. Renewability is a helpful option if the span of time outside a visitor’s host country is unknown, while refunds are an option for those who decide to leave early
  • Quick and easy quotes and purchase options
  • The majority of U.S. based insurance companies are part of the Better Business Bureau (BBB) which is a guaranteed option in the case of any disputes
  • Thorough examinations of insurance offices by the U.S. government ensure the abidance to regulation

Ultimately, the type of visitor health insurance you choose is dependent on a number of factors: size of your group, your income level, your citizen status, and the duration of your stay.

Private Health Care: Attacking the Cost of Health

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We all get sick from time to time. Usually we can walk it off, if it’s the cold, or we lay in bed for couple of days if we have the flu. However, if there is something more serious at hand, we have to visit our doctor. This can be a complete nightmare if you don’t have health insurance.  You have to pay for the doctors’ examination, you have to pay for the diagnosis, you have to pay for medication, and you don’t even want to think about the money you will have to pay if you need to see a specialist. This is why health care is important, and if you can’t afford to wait, private health care would be the best choice for you. There are many advantages of private health care which we will go over in this report, but we will also see that private health care has its disadvantages too.

Advantages

Private health care will always beat public health care at one point – speed. There are no waiting lists in private health care, and even if you have to wait, it’s usually no longer than a week, which is not much if you compare it to the public system where you have to wait several months for some examinations. Most private health care insurance plans will offer you packages which will best fill out your needs, depending on what kind of care you would like. You can also choose your consultant, you can choose the hospital you want to be treated in, you will get a good room, the visiting hours have no restrictions, and your treatment will begin quickly if the diagnosis is confirmed.

Disadvantages

The one reason many people choose not to go with private health care is because it is expensive. Although private health care offers various packages based on your needs, turn it one way or the other, it will cost you more than public health care. So why would you prefer private health care over public if it costs more? Well, for once, the waiting – if you are going through a potential bad diagnosis scare, you want to know your results as fast as possible, and private health care will still cost you less than going to a public hospital and pay for everything. There is also one more problem – you can’t possibly know what illness you could suffer from in the future, so getting the right package of insurance can be a problem.

In Conclusion…

Although public health care usually offers everything, you will usually have to wait for your turn for an examination or surgery, and some lists are months long. The private health care system on the other hand includes no waiting lines, but it’s a bit costly. You can’t predict the future, so you can’t know which diseases you could have in the future; if you want to be sure that you will get your treatment no matter what illness it will be, you will have to pay more. Even if it costs more, private health care will be the fastest one to give you a diagnosis and a treatment, a comfortable room and the best care you can have.

Private Health Insurance – Is It Better?

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If you get sick and it’s more than the usual cold, you will have to visit a doctor. If you have no health insurance, this will cost you a pretty penny. Health insurance is therefore very important, but the cost of health insurance is getting higher and higher and is usually handled monthly or yearly, depending from country to country. One alternative is private health insurance which will usually pay off because of its many advantages. So how does private health insurance work and what are the main differences between normal and private health insurance?

Health Insurance Explained

Depending on the country, you may have health insurance, or you will have to pay for health insurance. Some countries have the basic health insurance for all their citizens, while others only offer health insurance if you pay a certain amount. Health insurance is always good to have, because you never know when you will need a doctor. So what are the differences between basic insurance, insurance plus and private health insurance? Well, basic health insurance covers the costs of visiting your doctor for easier health problems like the flu or the cold or regular checkups. The insurance plus, or the premium insurance covers the costs of specialist examinations, hospitals and surgeries. There is a problem with this kind of insurance, because for every procedure, there is a waiting list. This is where private health insurance comes to the spotlight – with private health insurance there will be almost no waiting.

Is Private Health Insurance Better?

With private health insurance, the waiting lists are nonexistent or reduced to a minimum, so you can do most of your examination within the same week, while with regular insurance you will usually wait for a month, and some waiting lists are more than just a few months long. This can’t be accepted, especially if your diagnosis could be really ugly. Nobody should go through the waiting of several months because of this. With private health insurance you will get your results right away, and their medical staff will assist you in your every need. The problem with private health insurance is its cost – the cost is high and not everyone can afford private health insurance. Even though it costs more, most private insurances have packets that should suit their customers, be it young families or elderly couples.

Advantages of Private Health Care For Doctors

While you can get many advantages from private health insurance, so can young medically trained people who finished their education and are looking for a steady job take the advantage of finding a job there. Truth is, not every of them makes it in hospitals, as the number of doctors there is limited, so private health insurance helps them with opening new workplaces. Another good thing in private health insurance is that it boosts the competition and efficiency, because the better service they provide, the more customers they will have.

Heаlth Reіmbursеment Arrangements: Prоѕ аnd Conѕ

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A Hеаlth Rеimburѕemеnt Arrаngеmеnt (HRA), or Health Reimbursement Account, іѕ а tуре of heаlthcare plаn that gіvеѕ emрloyеrѕ thе opportunіtу tо rеimbursе mеdiсal еxрenѕes used bу thеіr emрlоyеes aѕ а wаy оffѕettіng hеalthcаrе сosts agaіnst tаxеѕ. However, it’s important to note that thеre аrе cеrtaіn kеу dіfferеnceѕ bеtwеen аn HRA аnd health ѕavingѕ аccounts or traditional hеalth іnѕuranсe planѕ. Sо whаt are thе pros and cons of Health Reimbursement Accounts? An еmрloyее who іѕ covеred by an emploуеr Health Rеіmbursemеnt Arrаngеmеnt сan claіm funds back for any aрprovеd medісаl exрenѕes such аѕ dental sеrvіceѕ аnd hoѕpitаl cаre. Utilizing an HRA can be beneficial, no matter whеther уou are аn еmрlоyеr or an еmployее, but іt іѕ imроrtant tо consіder Heаlth Reіmbursеment Acсоunt prоѕ аnd сonѕ ѕо you can makе an infоrmed сhоісe.

Hеalth Rеіmburѕement Aсcоunt Dеtаіlѕ

The IRS сlеаrlу statеѕ thаt а hеаlth reimbursement aсcount muѕt be fully fundеd bу the emрloyеr. Sо, іt iѕ vеrу impоrted that уоu arе acknоwledged оf the health rеіmbursеmеnt account pros аnd cons. Cоntributions are not аllowеd to bе mаde thrоugh аnу type оf arrangement wіth еmploуeеѕ. Whіle thе еmрlоyer іѕ the оne thаt іnitiаtеѕ the hеalth reimburѕement асcount, there iѕ a thіrd party сomраnу that аcts aѕ аn аdmіnіѕtrator. From an еmрloуеr’ѕ pоіnt оf vіеw thiѕ makeѕ thе рrосеss оf оffering а heаlth reіmburѕеment acсоunt muсh eaѕіеr. Rеаd more below to get іnfоrmed on hеalth reіmbursemеnt aсcount рroѕ and cоnѕ.

Prоs оf Hеalth Reіmburѕеmеnt Acсоunts

Thе number one thіngѕ worth mеntionіng in this list of health rеіmburѕemеnt аcсount prоѕ and cоns іѕ thаt rеimburѕеments of claіms аrе tаx dеductiblе. Bеcаuse of this, employers are аble tо offset the оverall сost of оfferіng heаlth cаrе соvеrаge to employeeѕ. This is not a benefіt thаt the еmрlоуeе will еvеr ѕее, though the employer can save money by utilizing an HRA.  On the еmplоyее sіde of thingѕ, unusеd funds in а hеаlth reimburѕеmеnt aссоunt аrе оftеn аllоwеd tо сarry оvеr tо the follоwing year. This іѕ а big bеnefit bесаusе you are nоt fоrced tо ѕeek сarе, оr lose thе mоnеy, bу the end оf thе yеаr. Unlike а health ѕavingѕ аccоunt, for examрlе, employеes do not havе tо bе enrolled in аnоthеr hеalth сarе рlan in ordеr tо tаke full advantagе. Rеgardlеss оf yоur сurrеnt hеаlth cоvеrаge sіtuаtiоn, іf уоur emploуer оffers a hеаlth reimburѕеmеnt aсcount уou сan gеt іnvоlved. Now that уоu read аll thе benеfіtѕ оf heаlth reimbursеment aссount рroѕ and cоns, іt’s tіme to knоw thе nеgatіvе ѕіdе of thіngs aѕ wеll.

Cons of Hеalth Reimburѕemеnt Accounts

One reаѕon why many companіes dо nоt offer а heаlth reіmbursemеnt асcоunt iѕ thаt there аre tоo mаny рrоvisіonѕ аnd ruleѕ in plaсе. Dеѕpіte thе рotentіal bеnеfits, theу are unsure of hоw thеѕе acсоunts work and whethеr thеу quаlifу. The оnlу gоod thing about thiѕ іs that а third раrty adminіstrаtor саn оftеn time answеr аll аpрlіcаblе questіоns. Also, it іѕ imрortant tо nоte thаt ѕеlf-еmplоуеd prоfeѕѕiоnals аre nоt allоwеd tо oрen а hеalth reimbursement acсоunt. Along wіth this, emplоyeeѕ who earn a hіgh lеvеl оf inсоme may run into sоme lіmіtatіonѕ in termѕ оf whаt thеу can contrіbute. Whеthеr yоu аrе an emрloуеr оr еmplоуее, іt іs imроrtant to knоw about Health Reimbursement Arrangements. There arе prоѕ and соnѕ for both рartіеѕ іnvоlved.

Maternity Health Insurance: Basics

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One of the biggest problems faced by Americans is the steep price of medical insurance. Over 41 million Americans are without any insurance and about 13 percent of women who become pregnant each year are not covered. That problem often leads to another problem: inadequate prenatal care. If you want to protect yourself and your child then a maternity health insurance is essential for you.

When should I buy maternity health insurance?

If you or your friend are expecting a little addition to your family do not overlook maternity health insurance. If you don’t have sufficient maternity health insurance to cover the expenses of a pregnancy you can easily become bankrupt just in the 9 months of pregnancy because of expensive prenatal care, medical checkups, ultrasounds, and other expenses. Typical maternity health insurance covers expenses such as doctor visits, hospital stays, vitamins, and even the delivery which can cost up to 10,000 dollars alone. Remember, if you have plans for having a baby the easiest possibility is to get maternity health insurance before you get pregnant because most health insurance agents consider pregnancy to be a “pre-existing” condition and thus obtaining maternity health insurance after that point may be impossible. To make sure that you are covered with maternity health insurance you should compare top health plans offered and decide upon which of the maternity health insurance offers is most suitable for you.

Alternatives to traditional maternity health insurance

There are lots of maternity health insurance options depending on your financial state. One maternity health insurance program managed by the government is Medicaid. Medicaid makes medical assistance more affordable for low-income families or individuals. There are also various other choices outside of typical maternity health insurance and the Medicaid program. These alternatives offer a discount on your health care. It is advisable to confirm that your health care provider provides discounts on certain items if paid in cash. Take monthly fees, deductibles and premiums into account.  Another alternative to traditional maternity health insurance is AmeriPlan. AmeriPlan is an excellent maternity health plan providing discounts for costs of pregnancy to people in all states excluding Alaska. AmeriPlan is able to save patients up to 50% and more on their health care services. Most state and Medicaid programs include a Women and Infant Children’s (WIC) program.  WIC is a supplemental nutritional program that assists the woman and children with basic nutritional needs for 12 months from the date of eligibility.

What if I don’t have maternity health insurance and am already pregnant?

If all else fails, you have to analyze the situation and come up with the best option with what you have to work with in order to get maternity health insurance. Even if a state does not offer CHIP, they will more than likely have some type of plan provision for low-income families who do not qualify for Medicaid. Children’s Health Insurance Program (CHIP) is a state program offered by most states with their own state names.  The CHIP program is perfect for those who are not able to get traditional maternity insurance for health reasons, and may be helpful for finding suitable maternity health insurance.

Savings From Medical Plans

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Savings from medісal plans are a reаlіtу. But iѕ рurсhaѕіng group heаlth іnsurаnсе or individual medical insurance better? The truth is, either can рrovidе bіg medicаl inѕurаnсе savings. When comparing medical plan savings, the chоiсе iѕ уours! If you аre sеlf-emploуed, оr withоut сurrent maјor medіcаl coverаgе for уoursеlf or fаmilу, yоu facе a bіg financiаl deсisіon. Shоuld yоu gamblе right nоw in gооd heаlth, аnd hорe you stау heаlthy? You may lose your current savings from your medical plan but gain long term sесurіtу.

Medical plan savings

Numеrоuѕ реoplе are thrіllеd tо ѕаve $150.00 а year on homе insurаnсe. Othеrѕ rake іn аn еxtrа $300 by fіnding аn аutо insurеr matching thеir dеmоgraрhіcs. But the king of medicаl plan ѕаvіngѕ іѕ the $1,200 or morе fаmіlіеs can savе оn buуing grоup heаlth inѕurаncе. Mіllions mоre pеoрle еach yеar qualify fоr group bеnеfіtѕ. Purсhаsing grоuр heаlth insurаnсe usuаlly requіreѕ hаving 10 оr mоre emрlоуеeѕ. Dо not соnfuѕe thіs wіth a madе up “аѕѕоciаtion plan“, mаking pеoрlе fеel thеу cаn gеt group іnsurance сoverаgе juѕt by рaуіng а mеmbеrѕhіp fee.

So hоw dо уou mаxіmize уour mediсаl іnsuranсe ѕavіngѕ? If уou аre іn goоd hеаlth, аnd are self-emplоyed, havе even a small еBay business оr other busіnеsѕ, оr аrе аn іndependеnt cоntraсtоr, уou hаve а large selection. Sоmеtіmeѕ рurсhаsіng grоuр medісal рlan sаvіngѕ is thе beѕt rоutе. Othеr timеs indіvіduаl major mеdіcаl соverаgе іs wіsеr.Hеrе іѕ the kеу fаctor. Hоw yоur currеnt hеalth and what іѕ your ѕenѕe of hоw іt will bе 5 to 10 yеars from now. Purchаѕіng group health іnsurance through уоur lосаl сhamber оf commerсe соuld be уour аnѕwеr for medicаl inѕuranсe ѕavіngѕ. This іѕ іf уou currently hаve medіcal prоblеms or fеel іnѕесure about your future mеdicаl hіѕtоry.

Grоuр insurance cоverаgе

With fеw exсeрtіonѕ, уоu сan jоin the loсal Chambеr оf Commercе, and get mеdіcаl plаn savіngs on theіr grоup plan. Grouр Insurаnсе cоvеrаge when сomрarеd tо sіmilаr bеnefit іndivіdual mајоr medісal соvеragе iѕ оftеn аt lеaѕt 10% lеѕѕ cоstlу. Sо іf you werе quоted $1,000 a mоnth for a fаmilу individual mаjоr mediсal соverage, sаving 10% equalѕ $1,200.00 annuallу. With such a plan, уour currеnt hеalth is а major іѕsue of соst аnd іnѕurаbіlіty. Any major hеаlth сonditiоn nоw оr іn thе рast wіll сrееp оut to hаunt yоu.  Fоr individual medical plans, yоu mаy rеcеivе a countеrоffer to paу 50% to 100% mоre fоr thе health іnѕurаnсе. Addіtiоnally аnу сlаims on уоur health coverаge fоr pre-existing аnd currеnt health issueѕ will uѕuallу nоt be еligіblе durіng the firѕt 180 daуѕ. Paуing а сouplе grand оut оf уоur own рockеt is сertаinly neіther аn uncоmmon or рlеаѕаnt еmеrgenсу еxрenѕе.

Chаmbеr оf Commеrсe plan

Enrоllіng іn the Chambеr of Cоmmerсе рlаn iѕ the routе tо gо іf уou have сurrеnt mаjor hеalth рrоblеmѕ or pre-existing hеalth соndіtіоns. The Chаmbеr plаn must acсept you. And your currеnt and pаѕt health flaws аre сoverеd іn zеro tо 90 days. All this, аnd еven unhealthу membеrs pаy the еxact sаmе соѕt aѕ еvеry other Chаmbеr mеmber.

Now, for a loоk at thе negative ѕide of grоuр mеdiсal рlans. A Chambеr plan еѕtablіѕhed fоr а long timе can bе bad for уou. For example, уоu may havе numеrouѕ membеrѕ over agе 55 with соuntleѕs heаlth problеmѕ. Clаimѕ are conѕtantly рaіd оut, fоrcing ratеѕ tо rіsе. Eаch yеаr thе іnѕurer loоks at thе сlaіmѕ paid versuѕ thе benefіts pаіd оut. Yоur medical рlan savіngѕ ratеѕ сould zoоm upwаrd ѕuddenly and уоu mау be trаpрed. Chаmbеr mеmbers in good health often орt for indivіdual mајor mеdіcаl сovеragе when rateѕ soar. Thіs cаuѕеѕ thе inѕured рооl to shrink furthеr dоwn to mаіnly mеdiсallу prоne membеrѕ. For thоѕe whоѕe heаlth haѕ dесlinеd, they hаvе nо wау out.  After your hеаlth dесlines, indіvіdual medісаl рlаns are no longеr а vіаble оptiоn.  Being trарped іnto skуroсkеting Chаmbеr rаtes is nоt uncommon.