fbpx

Review Category : Insurance Tips

Do You Have Enough Life Insurance?

Here is the scenario.  Your husband is driving home that night on the local highway.  Out of nowhere a large truck sideswipes the car sending it reeling off the road.  After the car does a couple of flips and comes to a rest, emergency vehicles arrive on the scene only to realize that they are too late. Your husband is pronounced dead on arrival. As the chaos unveils, it is learned that the driver of the truck was heavily under the influence of alcohol at the time. He lost control of the truck driving at an excessive speed when he inadvertently hit your husband’s car sending him to an early death. As you learn more facts about the case, you decide that there is only one option.  That is to file a lawsuit against the trucking company. The big question then becomes . . . what amount do you sue for in court? Many times in the financial planning process ...

Read More →

Do I Need Pet Insurance?

A few years ago, my sister ran into a truly awful situation. She had to face the music that part her family might pass way. One of her cats was going in and out of the doctor’s office using every medical procedure possible to keep her cat alive. The bills piled up, and inevitably her cat died. I remember one year during open enrollment time that I saw a new benefit on the docket called Pet Insurance. I actually chuckled at first thinking was this some gimmick or trick for the insurance companies to make more money? Quite the contrary to my surprise as Americans spent $20 billion on veterinary bills in 2010 — an 8.5% increase from a year earlier and more than double the amount spent just a decade ago. (source: wsj.com) Owning a pet is a serious financial decision these days because beyond your pet’s regular care, you need to consider the best way to plan for ...

Read More →

Which Term Insurance Is Right For Me?

If you are in the market to buy life insurance, you need to remember that not all term insurance is created alike. Here are some key items to remember so you can make a smart money move. 1) Renewable Term – Most often this comes in the form of yearly renewable term which your premium starts out incredibly low and increases every year you get older.  Sometimes you can get this renewable term in a 5 year increment, but most often it is sold one year at a time. Depending on the company, you may not have prove your medical status yearly as long as you pay the premium. 2) Level Term – This is the most popular option today.  You can essentially get a fixed premium with a fixed death benefit for a fixed period of time. The premiums on these policies are level for the length of time you have the insurance policy, and generally cannot be cancelled ...

Read More →

Health Care Reform Details

I have been asked over the past few weeks on what the heath care reform will mean to you over the next number of years.  Here is a great chart put together by healthinsuranceproviders.com showing the details.  If you need a quote on health insurance, you can always go to oXYGen Financial Insurance Agency to get your FREE insurance quote. Related Insurance Articles – Life Insurance For My Children?, Do you need disability insurance?, Top 5 Insurance Policies To Avoid, Health Savings Account Limits For 2010, Be wary of “hypotheticals” in insurance policies! , Long Term Care Insurance . . How Does It Work? , Is a Health Savings Account the best medical plan option for you? oXYGen Financial, Inc. co-CEO Ted Jenkin  is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.  Unless sources are noted, the information is the opinion of the author. Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS® ...

Read More →

Life Insurance For My Children?

Someone asked me the other day, “Ted, is it morbid to ask you whether I should buy life insurance on my children?”   It was an interesting question, and one we often get from parents.   The American Council of Life Insurers says that only about 15% of the people under the age of 18 have life insurance.  An average policy for people under 18 is around $5,000 with the primary purpose to cover funeral expenses and burial costs.  There are varying schools of thought on this subject in the financial community, and here are some considerations to think about around this subject. Remember that you as the parent are the real wage earner and the person that needs to be insured the most.   It is not recommended to buy life insurance on your children until you are adequately insured.   Since children for the large part don’t earn wages, any additional cost will be an extraneous expense to your budget. On the ...

Read More →

Do you need disability insurance?

There are many types of insurance programs to manage these days. Yet, one of the programs most misunderstood by employees of companies and small business owners is the need for disability insurance. Since there are so many nuances of disability insurance, here are some key questions to ask yourself regarding your personal situation. What percentage of my income will you replace if I become disabled? At most employer programs it will be between 50% and 66%.  Will you cover commissions or bonuses on top of a base salary? In most cases, your employer will only cover your base salary. If you have a large bonus program or work commissions, you need to really review the fine print of your group policy.  What about 401(k) or other retirement contributions? Generally, this is not covered. The big question then is how will you continue to fund your retirement goals? Can the payout go up as my income goes up in the future? ...

Read More →

Top 5 Insurance Policies To Avoid

Doesn’t it seem like there is always an insurance decision to make? Whether it is from a new purchase you make, a decision at work, or someone calling you to buy something over the phone, insurance decisions are being made every other month in our financial plans. It is often confusing to figure out which insurance programs make sense, and which is just a waste of money. While hindsight is 20/20, here are five insurance policies you want to avoid in the future. Mortgage Insurance– When you buy a new home, you will typically get a mailer to buy an insurance policy that will completely pay off the mortgage upon your death. If you are reasonably healthy, buying a level term insurance policy through any of the major insurance companies will often be much cheaper than buying this type of insurance. Wedding Insurance- Isn’t there a big problem if you are buying insurance in the event your wedding doesn’t happen? ...

Read More →

Be wary of “hypotheticals” in insurance policies!

Many people consider buying into permanent insurance policies. Almost always, I see an illustration when people bring it to me with a hypothetical illustration. On some policies these projected illustrations carry a hypothetical rate of return of 10% to project where cash value accounts will be over the next 20 to 25 years. ...

Read More →