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What Should You Know About Long-Term Care Insurance?

We are an aging population. Roughly 10,000 people will turn 65 today and 10,000 more will everyday for the next decade.

There have been many advances in medicine and technology. As a result, people will live longer than any generation before them. Therefore, in the not-to-distant future, more people will be in need of Long-Term Care than any other time in history.

Long-Term Care Insurance is designed to help pay for long-term medical and non-medical services. It helps individuals who have a physical illness, disability or cognitive impairment that affects their ability to do basic activities of daily living. For example, a policy can help cover any or all of the following type of services:

  • Nursing home coverage
  • Assisted living facility coverage
  • Adult day care center coverage
  • Personal care coverage

70% of people age 65 and older will need some form of Long-Term Care in the next few years.

There are several ways to protect yourself and your assets in the event you need Long-Term Care.

  • Traditional Long-Term Care policy works like many other forms of insurance. You pay an annual premium that will vary depending on the your health, length of benefits, and daily benefit amount.             
  • Hybrid Life Insurance Policies and Long-Term Care Annuities are growing in popularity. Many policyholders do not like “use it or lose it” aspect of the Traditional Policies.
  • Life Insurance / Long-Term Care Policy will pay for long-term care if you need it in your lifetime or pay a death benefit to your beneficiaries.
  • Long-Term Care Annuity offers a variety of investments from Fixed, Indexed, or Variable Annuities.  The investments grow tax-deferred and if used for Long-Term Care, the gains are tax-free.

As Long-Term Care Insurance grows in popularity, there are new types of policies coming into the market.  If you would like to see what type of policy works for you and your family, please feel free to contact our office with any questions or email us at ltc@gnadeinsurance.com, you can also visit http://longtermcare.gov/.

There is no one-size-fits-all approach to Long-Term Care. The important thing above all, is to have the conversation with your family.

 

6 Ways to Prepare for Open Enrollment

It is that time of the year again, Open Enrollment for health insurance.

For those who do not receive coverage through an employer or other programs like Medicare, this can be a stressful time. Trying to find the best health coverage for you and your family should not be a daunting task, so we have put together some helpful tips on how to better prepare for open enrollment.

  1. Take your time

    Looking at a long list of plans and comparing prices can be confusing and overwhelming. It is not one size fits all when it comes to health insurance so take your time looking through the plans and deciding which one fits you best.

  2. Do your research

    If you have certain doctors, hospitals or prescription plans you want covered under your new health plan, make sure to have those on hand when you go to pick coverage or to give to your agency so they can check for you. Some plans keep their name, but change their benefits, so beware. If you are happy with your coverage and just plan to keep the same plan, make sure to read over the benefits to make sure they have stayed the same.

  3. Gather all your info

    You will need to know your household income and current coverage information to renew or apply for new coverage. Determine how much you can afford each month for premium payments as well. [Read more…]

8 Myths About Life Insurance Debunked

To help break up some of the confusion about life insurance, we have put together a list of 8 life insurance myths to debunk and separate
facts from fiction.

  1. Myth: Life insurance is really expensive.

    According to the 2015 Insurance Barometer study conducted by Life Happens, 80% of consumers misjudge the cost of term life insurance. Respondents gave a median estimate of $400. Millennials put it at $600. The actual price is about $160 annually, which averages to about $13 a month.

  2. Myth: If you are a stay-at-home parent you don’t need it.

    If you’re a stay-at-home parent, life insurance is still important. You may not bring in an actual paycheck for the household, however you likely provide services that could cost tens of thousands of dollars to replace each year. These may include child care, daily transportation, home maintenance and cooking, to name a few. If you were to pass away, life insurance may help cover some of these costs.

  3. Myth: Only the breadwinner needs life insurance.

    Even if you don’t have the biggest paycheck in your household, your family still relies on your income for day-to-day operations. Unless your family would have that extra income to spare, you need insurance on both spouses.
    [Read more…]

5 Rules Every Landlord Should Live By

I’m pretty confident that if you asked anyone who has ever owned a rental property you would get an overwhelming response that it’s not as lucrative or easy as they thought it would be. In fact, owning a rental property can be a major pain, and end up costing you a ton of money!

I certainly don’t mean to be a “Debbie Downer”, and I know that if it’s done right it can be lucrative, but from an insurance agent’s perspective, I don’t see a lot of people doing it right.

So you’re probably thinking, “Well Chris, you are an insurance agent. What do you know about real estate or rental properties? Why should I take advice from you?”

I’m not a real estate agent, and I don’t own a rental property. However, several of my friends/family/clients/co-workers own rentals, and because I insure a bunch of their properties, I’ve had a first hand account of the process, and I’ve learned what to do, and what not to do.

[Read more…]

Will my credit rating change my insurance rates?

I was recently asked this question by one of our Gnade Insurance Group, Inc. clients, and thought I would share the answer here for our readers.

There are a lot of things that go into homeowners and auto insurance rates, one of them being credit. I’ve heard a lot of complaints from people who don’t like the fact that insurance companies use credit in their underwriting.

Some people have absolutely no idea that it’s used in the rate at all.

At the end of the day, there’s not much we can do about it though. Insurance companies have been using credit in their rates for decades, and that’s not likely to change.

By the way, insurance companies don’t pull your credit like a mortgage company or credit card company does. There is no negative impact on your credit as a result of an insurance company looking at it.

When I say “pull” what I mean is that the insurance company is doing what’s called a soft inquiry, which is not the same thing as having your credit pulled (hard inquiry).

When does credit play a role in insurance rates?
It’s important to understand that insurance companies don’t continuously check or monitor your credit. Usually, they only check it when you first get a quote and/or sign up with them in the very beginning.

This means that if your credit score increases (or decreases) your insurance company does not automatically know about it.

So, to my customers question of whether or not his increased credit score will lower his rates, the answer is not automatically.

What has to be done on our side as the agent is contact the carrier the insurance and ask them to do what’s commonly referred to as a “re-score”. This is when the insurance company can re-run the person’s credit (soft inquiry) to see if there is any positive bearing on the rate.

This isn’t something that the insurance company is going to let the agency do every single year, so it’s not worth even asking unless there has been a significant change in your credit score, and only you as the customer would know if that was the case.

If you’d like to get a better handle on your credit rating, it could be helpful to setup credit monitoring. We hope this was helpful! As always, leave us comment below if you have any questions.

Why Do My Auto Insurance Rates Keep Going Up Even Though My Car Keeps Getting Older?

Why do my auto insurance rates keep going up even though my car is getting older?  At Gnade Insurance Group, Inc., many of our clients ask this question so I would like to address it from a couple of angles.

First things first, even though it’s called car/auto insurance, it covers more than just your car. It should technically be called “auto-owners” insurance, similarly to how home insurance is actually called “home owners insurance”.

It’s important to understand that there are a lot of variables that go into insurance premiums, and with auto insurance, it’s no different.

The insurance company is much more concerned with you crashing into someone and causing them (or yourself) bodily harm, or death, than they are about your car. A car is a material possession which can be replaced.

A human life is not.

When is the last time you looked at your auto insurance policy?
If you look at it you’ll notice there are a lot of different coverages on your auto policy.

Bodily injury
Property damage
Un-insured motorist
Under-insured motorist
Medical Payments
Loss of Income
Funeral Expense
Loss of use
Rental Reimbursement

These are all things that you are covered for on your auto policy. How many of them have to do with your car?

None.

How many of them have a price next to them on your policy?

All of them.

Your car isn’t the only thing you’re being charged for on your policy
That’s because auto insurance covers far more important things than your car as mentioned above.

Let me re-phrase that: your car insurance rate isn’t just based on your car.

You’re not the only one…
It’s also important to understand that you are not the only person your insurance company insures. You are one fish in an ocean of other fish, sharks, and sea creatures, all who have different characteristics and risk profiles.

Insurance is all about spreading costs over a large number (risk pool) of people, which each person paying their fare share. That risk pool is constantly changing, and is impacted by a ton of different things, including the overall economic climate.

This means that you are sharing in the cost of millions of other people, many of whom may have poor loss history and/or credit.

That’s what insurance is though — sharing in the cost.

The next time your auto insurance rates go up, take a look at the big picture. Make sure you’re looking at ALL of the coverages, and corresponding rates.

Hope this helps!  If you would like to know more about Car Insurance be sure to visit our page dedicated to it.

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Gnade Insurance Group
219 N White St
Frankfort, Illinois 60423
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(815) 464-8800
info@gnadeinsurance.com
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