Is Hospital Indemnity Insurance Worth It?

Hospital indemnity insurance is a type of health insurance that covers some costs associated with hospitalization and healthcare services. When combined with primary health insurance, it can significantly reduce the cost of hospital stays for most patients. Despite its potential benefits, many people are unsure if they truly need it. So, is hospital indemnity insurance worth it for everyone? Here’s a brief overview of what this type of coverage offers and how it works.

What Does Hospital Indemnity Insurance Cover?

Hospital indemnity insurance is a form of supplemental health insurance coverage. It generally pays out a fixed amount for each day you’re in the hospital, regardless of why you’re there. It also pays out fixed amounts for certain medical services such as surgery or an emergency room visit. Businesses often take out this type of policy to help cover their employees’ medical bills.

Like accident insurance and disability insurance, hospital indemnity insurance can fill in major gaps left by health insurance coverage. For example, most health insurance policies don’t cover the full cost of emergency room visits. Luckily, hospital indemnity insurance pays out a cash benefit directly to the policyholder. They can sometimes spend this benefit on just about anything they’d like.

Depending on the policy, cash benefits may pay for medical bills, transportation costs, lost wages, childcare during recovery, and other expenses associated with hospitalization. These benefits can also help with copays and deductibles associated with Medicare or others forms of health insurance. It’s important to note that hospital indemnity insurance rarely covers preexisting conditions, so make sure to read your policy carefully before signing up for coverage.

How Much Does It Cost?

The cost of hospital indemnity insurance depends on several factors such as age and gender, where you live, and the level of coverage. Generally, this type of policy is relatively inexpensive compared to traditional health insurance policies. Plus, it can add a great deal more protection than other supplemental plans like critical illness or accident insurance policies.

Do I Need Hospital Indemnity Insurance?

It’s easy to underestimate the cost of healthcare services. Believe it or not, the average 3-day hospital stay can cost as much as $30,000 without health insurance. Keep in mind that a majority of Americans don’t have enough savings to cover even a $1000 emergency expense.

If your health insurance policy comes with a high deductible, then consider the benefits of hospital indemnity insurance. It can provide valuable financial protection against medical bills that arise from an unexpected illness or injury.

If you’re already covered under an employer-sponsored plan or other forms of supplemental coverage, then you may not need to invest in this type of policy. However, if you don’t have health insurance, are on a tight budget, or could simply use some extra peace of mind, then this type of coverage may be beneficial for you.

Hospital indemnity insurance may be worth it if you have limited health insurance coverage or if you need an extra layer of protection against out-of-pocket medical costs. That said, if you already have a great health plan with comprehensive coverage and a low deductible, then adding this type of policy might not be necessary. The decision ultimately depends on your unique needs and financial situation.

Ask Us about Hospital Indemnity Insurance

Hospital stays can be expensive, especially when they’re extended unexpectedly. Whether hospital indemnity insurance is worth it for you will depend on your unique financial situation and existing healthcare coverage. If you have any questions about hospital indemnity insurance or your current healthcare policy, then please don’t hesitate to contact us for more information today.

When to Buy Life Insurance

Life insurance is a critical part of financial planning. It can provide peace of mind and financial protection for you and your family in the event of an unexpected death. When buying life insurance, there are several factors to consider including your age, health, and work environment. So, how do you know exactly when to buy life insurance? Let’s break down what you need to know before deciding.

Types of Life Insurance

The type of policy you choose often determines when you buy life insurance. For example, term policies cover a set length of time, typically from 10-30 years, and expire after that period ends. If you reach the end of the term with no claims, then the policy ends and doesn’t pay out a death benefit.

Term life insurance policies tend to be more affordable than permanent policies. Permanent life insurance policies last for the duration of one’s life but usually carry steeper premiums due to their higher death benefits. It’s important to know which type of policy works best for your needs so you can make an informed decision about when to buy life insurance.

Remember that some employers offer group coverage as part of their benefits package, which can help reduce costs. However, these policies only supply limited coverage and may not be enough depending on your unique needs. Furthermore, if someone decides to part with their employer, then they’re likely to lose their coverage. Make sure to plan ahead in case this happens to ensure you have enough coverage in place during any transition.

The Role Age Plays

Age is one of the most crucial factors in determining when to buy life insurance. Generally, the younger you are, the better. Not only is this likely to reduce your premiums, but buying life insurance while you’re young means that you’ll benefit from coverage much longer.

This also applies if and when you have young children. Having adequate coverage now will ensure that they’ll be taken care of financially even if something should happen to you down the line.

Your Health Matters, Too

Health plays a key role when buying life insurance. If your health is good or excellent, then you may be able to get lower premiums than someone suffering from a chronic illness. It’s important to note that pre-existing conditions can affect premiums, as well. When applying for coverage, it’s always best to disclose any pre-existing conditions that could affect your rate.

Life Insurance and Work Risk

Your work environment also matters when it comes to life insurance. For example, if you work in a high-risk field such as roofing or law enforcement, then it’s essential to have adequate coverage in case something happens on the job.

On the other hand, someone who works a desk job probably doesn’t need quite as much coverage. Their risk level is likely much lower than someone who works outside or with hazardous materials daily.

Ask Us When to Buy Life Insurance 

There are many critical factors involved in deciding when to buy life insurance. Your age, health, and work environment all play a major part. That said, it’s almost always better to purchase a policy sooner rather than later. Otherwise, you run the risk of not being able to get affordable coverage due to age or health issues down the line.

When buying life insurance, it pays to do your research early. That way, you can find the best policy for your needs at an affordable rate. If you’re in need of life insurance or simply have questions about how much coverage you need, then we hope you’ll reach out to get started today. Our friendly, local agents are always eager to answer your questions and walk you through your options.

What Is Accident Insurance?

We often get asked, “What is accident insurance?” Accident insurance is a type of supplemental policy that can help cover various expenses following an injury. These can include ambulance rides, emergency treatment, hospitalization, surgery, and even out-of-pocket expenses if you can’t work. Let’s take a closer look at how accident insurance works, some of its benefits, and why these policies matter.

How Does Accident Insurance Work?

Accident insurance works by filling in the gaps left by your health insurance coverage. For instance, if you’re in a car collision and need to be hospitalized, then your health insurance policy may only cover a portion of the costs. This is where accident insurance comes into the picture.

If you get hurt and need medical attention, then your first step is to file a claim with your insurance provider. You’ll need to provide documentation of the accident such as medical records or an official police report. If your insurer approves your claim, then they’ll pay benefits either directly to you or to your healthcare provider.

One thing to keep in mind is that some accident insurance policies come with a small deductible. This is the amount of money you must pay before your policy coverage applies. For example, if your deductible is $250 and you have $5,000 in medical bills from a covered accident, then you’ll only receive $4,750 after paying the deductible.

It’s also important to note that accident insurance isn’t the same as health insurance. While health insurance often covers some preventive care, doctor visits, and routine treatments, accident insurance may only cover expenses related to accidental injuries. That said, some policies do provide benefits for routine healthcare procedures. Regardless, having both health insurance and accident insurance will give you peace of mind no matter what happens to you.

What Are the Benefits of Accident Insurance?

Accident insurance is an affordable way to get added coverage for unexpected injuries. If you don’t have accident insurance during an incident, then you may have to pay all your medical bills yourself. This can be challenging if you’re unable to work due to your injuries.

These policies are especially beneficial for anyone with an active lifestyle. While accident insurance rarely covers hazardous hobbies like racing or skydiving, it generally covers most accidental cuts, burns, breaks, and concussions. Those with small children, a limited budget, or no life insurance may also find these policies to be appealing for the following reasons.

  • Zero copays
  • Peace of mind in the case of an accident
  • Affordable coverage with little to no deductible
  • Direct financial support for living expenses and costly medical bills
  • Various optional features including group plans and family or dependent coverage 

Why You Should Consider It

There are several reasons why you should consider accident insurance, even if you already have health insurance. First, most health insurance policies don’t completely cover all accidents. So, if you accidentally injure yourself, you could be responsible for thousands of dollars in medical bills.

Another reason to get accident insurance is that it can work with your health insurance policy. For example, if you have a high deductible health plan (HDHP), then accident insurance may cover your expenses until you meet your health insurance deductible.

Lastly, accidents can occur at any time, even when you’re careful and completely healthy. In fact, the CDC records millions of injury-related emergency room visits every year. No one knows when an accident will happen to them, but we all know they can be expensive. With accident insurance, you can rest assured knowing that you and your family are protected when you need it most.

Ask Us about Accident Insurance

It’s important to prepare for the unexpected these days. If you live an active lifestyle, have small children, or are simply looking for added security during an emergency, then ask us about the benefits of an accident insurance policy. Our friendly agents are always eager to answer your questions and give you the personalized support you deserve. Simply give us a call, send an email, or reach out online to find a local agent near you.

How to Plan for Retirement

It’s never too early to start planning for retirement. In fact, the sooner you start saving, the better off you’ll be overall. But what if you’re on a tight budget and don’t know where to begin? Does that mean you can forget about retirement planning altogether? Absolutely not! With a little bit of creativity and dedication, anyone can successfully learn how to plan for retirement.

Retirement Planning 

Retirement planning is a lifelong process that requires foresight, discipline, and a solid understanding of your personal finances. The goal of planning for retirement is to ensure that you have enough money saved to cover expenses during your golden years. Average adults in the United States can expect to retire in their mid-sixties and live well into their late seventies.

Learning how to plan for retirement has become increasingly important with many people living longer, healthier lives. While everyone’s financial situation is different, retirement planning almost always involves some form of saving and investing. Remember that a financial advisor can help you develop a personalized plan that meets your unique needs and goals. Here are some key things to consider when planning for retirement.

1. Start with a Savings Account

You may not have much spare cash to contribute to a 401(k) or IRA right now, but that doesn’t mean you can’t start saving for retirement. Open a separate savings account and make regular deposits into it. That way, when you do have a little extra, you can easily transfer it over to this account.

If you get a raise at work or come into some money, then try not to spend it all right away. Instead, put it straight into your savings account, or work with a financial advisor to set up a traditional or Roth IRA. They’ll take the guesswork out of saving and investing, giving you the peace of mind you deserve when learning how to plan for retirement.

2. Create a Budget

One of the best ways to save money is to create a budget and stick to it. Calculate your monthly expenses and look for places where you can easily cut back. Living within or below your means will give you an advantage when planning for retirement. Without a clear budget, it’s quite difficult to keep track of how much you’re truly spending each month.

There are all sorts of ways to save money if you’re creative and willing to make some sacrifices. For example, if you normally go out to eat at least 3 times per week, then challenge yourself to cook more meals at home. If you continue to pay for memberships that you rarely use, consider if they’re absolutely necessary, then cancel whatever you can.

3. Figure out How Much Income You’ll Need

It’s also important to estimate how much income you’ll need during retirement. Remember to include not only essential expenses like food, shelter, and healthcare, but also your discretionary spending for travel and entertainment. There are many free retirement calculators available online, but a trusted financial advisor will have many other helpful tools at their disposal.

4. Estimate Your Social Security Benefits

Social Security is a government aid program that provides benefits to retirees. Your personal benefit will depend on your work history and earnings record. You can easily estimate your Social Security benefit by creating a “my Social Security” account at ssa.gov. Keep in mind that Social Security is unlikely to cover more than 50% of your total retirement expenses.

Prepare to close the gap between Social Security benefits, what you have saved, and what more you’ll need for retirement. There are several options available to help with this process. These include delaying retirement, saving more money, investing in assets that generate income, and downsizing to a less expensive home. Also, consider partnering with a trusted financial advisor to streamline this process.

Ask Us How to Plan for Retirement

Planning for retirement may seem like a daunting task, but it’s important to start early and make sure you have a solid understanding of your personal finances. Working with a qualified professional can help you develop a retirement plan that fits your unique goals. If you still have questions about how to plan for retirement, then please don’t hesitate to reach out today. Our experienced financial advisors are always eager to provide the resources you need to retire with confidence.

What Is Term Life Insurance?

When taking out life insurance, one of the most common challenges buyers face is choosing the right policy. There are numerous kinds of policies available, including what is known as term life insurance. This type of policy is becoming increasingly popular, so it’s important to understand what it covers. Just what is term life insurance, and how does it differ from other life insurance policies? Here’s a brief overview of this popular policy type. 

Term Life Insurance 

This type of policy comes with a limited insurance window. Essentially, if you pass away during the timeframe set out in the policy (the term), then your dependents would be provided with a payout. This payout is only guaranteed if you pass within the term specified by your policy.  

Some providers refer to these policies as “pure life insurance,” but they’re one and the same in terms of functionality. They differ from standard whole-life policies in that they offer zero saving or investment opportunities. Instead, they simply guarantee a specific payout within a certain timeframe. 

The premiums attached to term life insurance policies depend on several factors. The policy provider will consider your age, health, lifestyle, and the average life expectancy of those in similar situations. Your individual level of coverage will typically start at around $100,000, and it can rise to as much as $1,000,000 or more. 

How Long Does Term Life Insurance Last? 

The rate and timeframe that you can choose will differ depending on the policy provider and your personal situation. However, the most common timeframes are anywhere from 10 to 30 years. Your current age, amount of personal debt, and number of dependents will ultimately influence your policy decision. 

What Happens if My Term Expires? 

Some people worry about their term life insurance expiring. The common concern is that they will no longer be protected if their policy runs out. While this concern is valid, it’s not the only choice. You may also choose to: 

  • Renew the insurance policy on similar terms as before, 
  • Convert the policy into a more permanent option on different terms, or 
  • Allow the life insurance policy to lapse in order to change providers. 

Regardless of your choice, having insurance is essential for your family’s long-term security. We highly recommend finding a new policy at once if you let your current term expire. Circumstances can change at a moment’s notice, and having a policy you trust will provide greater peace of mind in the event of any unexpected incident. 

Why Choose Term Life Insurance? 

The simplest reason is the price. These policies are typically the least expensive of all life insurance options. This is because they only supply a limited death benefit, and they feature no savings or critical illness benefits. 

Their limited nature means that premiums will be a fraction of what they might be for whole-life coverage. Most term policies expire before paying a death benefit, so insurers generally see them as safer bets, and they price them accordingly. In general, these policies are great options for anyone interested in affordable, short-term coverage. 

Young parents and growing families often benefit from term life insurance. Its guaranteed death benefit is often adequate to support children until they reach adulthood, and its low premiums make it more accessible than many other options. While they lack the benefits and the longevity of other policies, term life insurance can certainly provide protection when you need it most.  

We’re Here to Help 

We make choosing the best insurance policies simple. Our experienced agents are eager to sit down and discuss your unique needs together. If you’re interested in learning more about your life insurance options, then please feel free to contact us to find an agent today. 

Fixed Annuity Pros and Cons

There are countless options to consider when planning for retirement. IRAs, 401(k)s, pension plans, and Social Security may all factor into your long-term goals. Annuities have also become popular in recent years, and for good reason. They’re great tools for protecting investments and ensuring supplemental income during retirement. Let’s explore some of the major pros and cons of a fixed annuity. 

What Is a Fixed Annuity? 

Annuities come in various forms. Their rates are either fixed or variable, and they may also be classified as traditional, indexed, multi-year guaranteed, deferred income, or single premium immediate. However, all annuities share some common themes. Insurance companies generally contract these financial products to accumulate value from interest over time. 

Traditional fixed annuities are some of the simplest types of annuities available. They’re most popular among savers, not investors or speculators, and they’re designed to supply guaranteed retirement income throughout one’s remaining years. A fixed annuity is like a certificate of deposit (CD), but it’s provided by an insurance company rather than a bank or credit union. It’s also more flexible than a traditional CD. With a fixed annuity, the insurance company promises to pay out a fixed percentage of the principal investment each year or via a lump sum. 

Pros of a Fixed Annuity 

Retirement planning involves a great deal of cost-benefit analysis. With any investment, it’s essential to carefully consider your individual long-term goals before making any decision. Luckily, there are many benefits of a fixed annuity worth noting.

Principal Protection

Investing can be a risky business. However, a fixed annuity is one of the safest bets you can make. Highly rated insurance companies generally have no issue guaranteeing the security of your principal investment. They assume all risk, they follow strict regulations from governing state bodies, and the only way you’ll lose your investment is if they go bankrupt. That’s why it’s so important to only work with an A-rated (or better) insurance company with a proven record of satisfied clients.

Guaranteed Returns 

Many people are attracted to fixed annuities for the returns they deliver. They often provide greater peace of mind than many other retirement opportunities. Once a fixed annuity’s minimum conditions are met, the insurance company agrees to pay out a consistent amount for the rest of your life. Also, this fixed income isn’t subject to change due to stock markets swings or shifting interest rates.

Tax Deferral

Fixed annuities can also reduce opportunity cost associated with capital gains taxes. Because they’re tax-deferred, any funds placed into them grow tax-free until they’re withdrawn. When paired with a maximally funded IRA or 401(k), a fixed annuity can be a key part of any long-term, tax-free saving strategy. 

Cons of a Fixed Annuity 

A fixed annuity is a major investment, and it won’t be ideal for everyone. Inflation, liquidity, and retirement age are all crucial factors to consider in this regard. Plus, annuities can be intimidating, especially for those new to retirement planning. Here are a few disadvantages to keep in mind.

Illiquidity

Annuities are long-term assets, and they can be expensive. To receive their maximum benefits, you must lock up a sizeable principal investment for several years. This can significantly restrict liquidity throughout the contact’s entire lifetime. However, it’s often possible to withdraw some or most of a principal investment during the initial accumulation period (for a fee).

Hidden Fees

Some fixed annuities involve various hidden charges. Insurance companies may charge fees for commission, subaccounts, account riders, inflation protection, mortality and expense, or contract maintenance. Furthermore, most annuities carry some form of surrender or early withdrawal penalty. Some are also subject to market value adjustments (MVAs) according to changing interest rates.

Low Rates of Return

While a fixed annuity can guarantee a steady annual income, it’s unlikely to produce a significant return on investment. Typical fixed annuity rates range from about 3.5% to 4.6%, depending on the length of their surrender period. In some cases, annual inflation and the rising cost of consumer goods may outpace their returns. 

 

Ask Us about a Fixed Annuity 

Retirement planning doesn’t have to be stressful or intimidating. Our professional agents are always available to walk you through the process and answer any questions you may have. If you’d like to learn more about the pros and cons of a fixed annuity, we welcome you to contact us for more information today.