Is it Time for an Umbrella Policy?

Increasing the personal liability coverage limits on your auto and homeowners insurance as your income grows is a smart move. But there are limits to how much personal liability insurers will cover as a part of these asset-specific policies. That’s where an umbrella policy comes in.

This type of policy protects your current assets and your future income against financial claims for injury brought against the policyholder – and their family or household members. It isn’t a standalone policy; it provides excess coverage in addition to other existing policies, and only kicks in when the underlying policy limits are exhausted. Because of this, it can be more affordable than you think.

Umbrella policies can be flexible and can be written to include many types of coverage, which makes them uniquely useful for modern, active, online lives.

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A Disability Insurance Primer

Should you have disability insurance?

A sobering statistic from the Social Security Administration (SSA) might be helpful: the SSA reports that a 20-year-old has a more than one-in-four chance of becoming disabled before reaching retirement. Social Security Disability Insurance (SSDI) is part of the social security tax you pay each year that you work. But it is difficult to qualify for, and even the SSA describes the payouts as “modest.”

Many employers cover some amount of short-term disability, but longer periods or a permanent disability typically require additional coverage. If you are self-employed or a professional with specialized training or education, such as a doctor or lawyer, getting the right disability insurance in place should be a part of our overall risk management plan.

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GMB #144: The Long Term Care Insurance Landscape With Matt McCann

The need for long-term care has been steadily increasing over the last decade, primarily due to our aging demographics and retiring baby boomers. This week on Grow Money Business, our guest is one of the nation’s leading experts in long-term care insurance. Matt McCann, the managing editor at LTCNews.com, and Principal Owner/Long Term Care Planning Specialist at McCann Insurance Services, joins us to dive deep into the structure of long-term care insurance policies. Throughout the episode Grant and Matt discuss available options as well as some opportunities to reduce the costs associated with long-term care insurance.

 

 

Show Notes

[02:05] Matt’s Journey – Matt shares how his career started in radio and transitioned into insurance.

[05:28] The Need for Long-term Care – Matt explains how the changes in our population have increased the need for long-term care and how different states are responding to this situation.

[15:09] Insurance & Financial Planning – Matt shares his thoughts on the costs associated with long-term care and how those affect the financial strength and investments of a person.

[23:40] Regulations & Pricing – Grant and Matt discuss how the regulations related to long-term care insurance have been updated in recent years, as well as changes in pricing models that followed.

[30:57] Tax-free Exchanges – Matt explains the process of a tax-free exchange, which allows life insurance policyholders to get long-term care without actually writing a check.

[34:37] Insurance for Business – Matt shares some of the tax benefits business owners can get by arranging long-term care insurance for their employees.

[42:03] Family & Emotional Impact – Matt discusses how familial concerns can be solved by planning for long-term care insurance, as well as how insurance relates to retirement planning.

[45:52] Options for Long-term Care – Matt shares several options available for people who are in need of long-term care.

 

 

Resources

GMB Ep #140: Here’s Exactly What To Do With Your Old Life Insurance Policy

In our financial planning firm, we come across many people who are raising the question of whether or not their old insurance policies are worth maintaining. However, it is important to know that there are certain ramifications and complexities are associated with getting rid of an insurance policy. In this episode, Grant dives deep into important considerations related to choosing, maintaining, or terminating insurance policies.

 

 

Show Notes

[02:28] Purpose of Insurance – Grant discusses the purpose of insurance policies and how they create a safety net for you and your loved ones.

[05:50] Do You Really Need Insurance? – Grant explains how to determine whether you really need life insurance, given the nature of your existing insurance policies, your financial status, and income streams.

[09:08] Types of Insurance – Grant describes the two main types of life insurance and how to determine which is the right type of policy for you.

[13:00] Cost Breakdown – Grant explains the cost breakdown of insurance policies.

[17:01] What to do With a Permanent Policy – Grant shares some options for people who no longer need their permanent policy.

[28:33] The Right Option – Grant explains how he helps clients decide which option is best depending on their financial status and goals.

[31:59] Insurance Products That Actually Make Sense – Grant shares his take on some of the legitimate use cases for some common insurance products.

 

Resources

GMB Ep #138: How to Use Options as Portfolio Insurance

As we approach an era of economic uncertainty, many investors are becoming concerned about the value of their investments falling. This is where, if used carefully, options contracts can give investors the ability to safeguard their investment portfolios. In this week’s episode, Grant explains the pros and cons using options as portfolio insurance, as well as some major risks investors could face when using this investment strategy. 

 

 

Show Notes

[02:19] Introduction –  Grant discusses how investing in options can be used to reduce portfolio risk for some investors.

[06:57] Put Option – Grant gives a comprehensive overview of put options and the benefits and risks of investing in them.

[17:10] ETF – Grant explains how having option contracts on ETFs can be advantageous.

[20:25] SPY – Grant describes SPY ETFs and provides a hypothetical scenario on utilizing option contracts.

[24:30] Call Option – Grant shares the pros and cons of call options.

[31:20] Combining Strategies – Grant describes an investment option in which you can create revenue by selling call options against positions that you already hold in your portfolio.

[34:22] Be Mindful – Grant stresses the importance of limiting risk, and why you should proceed with caution if you’re considering this investment strategy.

 

Resources

Financial Fitness – Mid-Year 2022 Check-In

Summer will officially be here soon, but before kids get out of school and all the vacation planning you did begins to come to fruition, it can be a good idea to take stock of your financial picture and make updates where necessary. Below are a few things you should consider to keep your plan in shape. We’ve organized them by life stage, from having small kids to being closer to retirement. We’ve also included charitable giving, as that happens at every stage.

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Avoiding the Medicare Surcharge: What You Need to Know About IRMAA

Reaching Medicare eligibility solves one of the most expensive retirement problems for many retirees: healthcare. Once you’ve made the adjustment and selected all the various Parts and plans, the convenience and affordability of Medicare are one of the benefits of turning 65. However, Medicare is means-tested. If you make over a certain amount of income, surcharges on the Medicare Part B and Part B premiums kick in.

Making it a little more painful, it’s not a flat increase. The surcharges go up as incomes get higher and at the highest level can amount to hundreds of dollars a month in additional costs.

The key to avoiding or minimizing the surcharge is to control income levels. In early retirement, this may be reasonably easy to do. But if you’ve amassed a retirement nest egg in a traditional tax-deferred 401(k) or IRA account, once you hit 72 and required minimum distributions (RMDs) kick in, you can find yourself with a very hefty bill.

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GMB Ep #100: Reducing Small Business Health Insurance Costs With John Butler

 

Health insurance is an essential aspect in recruiting and retaining employees as well as sustaining productivity and employee happiness in a small business. In today’s episode, we have a distinguished guest, John Butler, joining us to take a deep dive into what business owners should know about health insurance. John is a national C-suite health benefits consultant, strategic coach, and the author of “Health Insurance Sucks,” the number one ranking book on Amazon in its category. Throughout this episode, John shares his insights on how businesses can reduce the cost of the health insurance they provide to their employees.  

 

 

Show Notes

[02:22] John’s background – John shares his journey and what inspired him to write the book “Health Insurance Sucks.” 

[05:25] Healthcare Costs – John explains his observations and findings on numerous methods to reduce healthcare costs. 

[07:05] PEO – John describes how small businesses can benefit from Professional Employer Organizations. 

[08:20] Custom Plan Solutions – With a comprehensive analysis, John points out how a custom health plan assures the highest quality service with a reasonable cost. 

[18:56] Insurance Companies and Brokers – John talks about the relationship between insurance companies and brokers, and shares his thoughts from the perspective of each party. 

[34:15] Federal Requirements – John explores the federal requirements and penalties related to employees’ health plans. 

[38:54] Health Sharing Programs – John emphasizes the significance of health sharing programs. 

[48:28] Current Social Context – The healthcare insurance industry consists of many complex layers. John shares his take on the healthcare plans in the current social context. 

 

 

Resources

Connect with John Butler: 

Website: jb-benefits.com/ 

LinkedIn: linkedin.com/in/jbbenefitsconsulting/ 

 

Mentioned in the Episode 

Health Insurance Sucks – The Moral Case for Better Business Healthcare: goodreads.com/book/show/58502517-health-insurance-sucks—the-moral-case-for-better-business-healthcare?from_search=true&from_srp=true&qid=KIWCNRWz38&rank=1 

GMB Ep #99: Maximizing Workplace Benefits With FSAs and HSAs

 

The open enrollment period for Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) is approaching. During the enrollment period, employees can enroll in or amend their contributions for the future year for FSAs and HSAs, which they can use to pay for their healthcare-related expenses. We dedicated today’s episode to taking a deep dive into several vital facts related to FSA, Dependent care FSA, HSA, and the numerous ways to maximize your workplace benefits under each of them. 

 

 

Show Notes

[04:37] Flexible Spending Account (FSA) – Grant explains what FSA means, how it works, and who can contribute.  

[07:55] Plan the Health Expenses – Why it is essential to forecast the health expenses to pay them on a tax-deferred basis through FSA versus paying out of pocket. 

[09:18] Spend the Fund at Pharmacy – Beneficial features of FSAs, such as the ability to spend the funds at a pharmacy, and why having this option is significant. 

[10:10] Dependent Care FSA – Grant explains the purpose of a Dependent Care FSA, its benefits, and several facts to keep in mind if you are considering using one. 

[15:30] HSA – How to contribute to and HSA and the fantastic tax benefits and investment opportunities that come along with it 

[19:12] Eligibility for HSA – Grant explains the eligibility requirements for HSAs, including having a High-Deductible Health Plan (HDHP). 

[26:00] Connection to the employer – Grant discusses the connection between your HSA and your employer, and why employees can take their balance with them when they’re switching employers. 

 

Resources

What Is a Flexible Spending Account (FSA)?
investopedia.com/terms/f/flexiblespendingaccount.asp 

 

What Is a Health Savings Account (HSA)?
investopedia.com/terms/h/hsa.asp 

GMB Ep #98: Everything You Need to Know About Medicare With Danielle Roberts

 

With the open enrollment period set to start on October 15th 2021, this is a great time to dive deep into the vital facts related to Medicare. In today’s episode, we have a distinguished guest, Danielle Roberts, joining us. Danielle is a co-owner of Boomer Benefits, a firm dedicated to helping senior citizens make confident decisions when enrolling into Medicare, as well as the author of the best-selling book “10 Costly Medicare Mistakes You Can’t Afford to Make”. Throughout this episode, Danielle shares her wisdom on all the crucial points you need to know if you intend to enroll in Medicare.

 

 

Show Notes

[02:25] Danielle’s Background – Danielle introduces herself and explains what they do at Boomer Benefits.

[04:00] Common Mistakes – Danielle shares some of the most common mistakes she sees people make when enrolling for Medicare, and what you can do to avoid them.

[08:01] Parts of Medicare – Parts A, B, C, and D of Medicare and the differences between them.

[10:49] Medigap Plan and Medicare Advantage Plan – Danielle broadly describes the role of Medicare Advantage policy and the Medigap plans while highlighting their differences.

[16:59] Most Suitable Plan for You – Though 34% of beneficiaries choose Medicare advantage plans, Danielle explains how to be mindful when making the best decision for you.

[21:47] Subsequent Changes to the Plan – Danielle’s suggestions on how beneficiaries can change their enrolled plans in subsequent years.

[26:48] Switching Between Medigap Policies – Possible ways to switch between different Medigap policies and the procedures you’ll need to follow.

[28:59] Eligibly Criteria for Medicare – Danielle outlines the eligibility criteria for enrolling in Medicare.

[32:23] Medicare Fund – The correlation between the reserves in the Medicare fund and the benefits Medicare offers.

[38:08] Single-payer System – Danielle shares her insights on the rising health care costs and the viability of a single-payer system.

[42:23] Pharmaceuticals and Drugs – Grant and Danielle discuss some of the current trends in the pharmaceuticals industry and the business interests that may affect Medicare.

[47:09] Boomer Benefits – Danielle talks about how Boomer Benefits helps people with Medicare basics, benefits, and coverage.

 

 

Resources

Connect with Danielle Roberts:

Website: boomerbenefits.com/

YouTube: youtube.com/c/BoomerBenefits

Facebook Page: facebook.com/BoomerBenefits

Facebook Group: facebook.com/groups/BoomerBenefits

LinkedIn: linkedin.com/in/daniellekunkle/

 

Mentioned in the episode:

10 Costly Medicare Mistakes You Can’t Afford to Make:

goodreads.com/book/show/55204934-10-costly-medicare-mistakes-you-can-t-afford-to-make?from_search=true&from_srp=true&qid=1Wia7eTzTY&rank=1

 

The United States Social Security Website: ssa.gov/

Official U.S. government site for Medicare: medicare.gov/