Year End Retirement Tips 2013

by Richard F. O’Boyle, Jr., LUTCF, MBA

As another year winds down – and another begins – it behooves us to take a look at our current retirement plans and make necessary adjustments.

Retirement Plan Contributions for 2013

You may have limited time to maximize your retirement plan contributions for the tax year 2013. Most people can stash money into traditional IRAs and Roth IRAs as late as April 15, 2014 (for tax year 2013), but some plans have to be filled before December 31, 2013.

The annual limit for traditional IRAs and Roth IRAs is $5,500 for 2013 ($6,500 if you are over age 50) – and must be deposited by April 15, 2014. Company-sponsored and Union/Non-Profit plans such as 401(k), 403(b) and 457 plans allow 2013 contributions up to $17,500 or $23,000 (age 50+).

If you have not yet maximized your 401(k) contribution for this current year, you may want to change your contribution percentage before the end of the year. You can increase the percentage of your salary that is contributed (and reduce your take-home pay). Contributions to deferred plans reduce your current taxable income.

Retirement Plan Contributions for 2014

The IRS has left retirement plan contributions for 2014 at the same levels as 2013. But the thresholds for qualifying for Roth IRAs is increasing slightly. If your adjusted gross income is less than $129,000 (for singles) or $191,000 (for married persons filing jointly) then you are eligible to contribute to a Roth IRA. Eligibility starts to phase out if you earn more than $114,000 (singles) and $181,000 (couples).

Year-End Tax Strategies

If you want to reduce your taxable income for 2013, you may consider paying off more expenses that you can deduct. For example, some people will prepay their real estate taxes, homeowner’s insurance premiums or make mortgage payments in advance that would normally be due in early 2014.

Deductions for Medical Expenses

For 2013 the amount of medical expenses required to reach the deductible threshold has increased for people under age 65.  You must have medical expenses greater than or equal to 10% of your adjusted gross income in order to be able to deduct them. People aged 65 and older only need expenses of 7.5% through 2017.

Health Insurance Individual Mandate

Beginning in 2014, individuals are required to carry health insurance either through their employer or individually. In order to set an individual plan in place for a January 1, 2014 effective date, people shopping on the government Insurance Marketplace (http://www.healthcare.gov) and for New Yorkers (http://www.nystateofhealth.com) must sign up for (and pay for) a plan by December 23, 2013. The actual mandate kicks in March 31, 2014.

Health Savings Account Contributions

If you have a high-deductible health insurance plan that includes a tax-preferred Health Savings Account, you can still maximize your contributions for 2013. The contribution limit for 2013 is $3,250 for individuals and $6,450 for families. The maximum takes into account both employer and employee contributions to the HAS. For those 55 and older the maximum is increased by $1,000.

Social Security and Medicare in 2014

The Social Security Administration will increase benefits by 1.5% in 2014. Medicare Part B premiums will remain at $104.90 per month, but high-income individuals will see the surcharge for Part B and Part D increase slightly.

 

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Homes at risk as flood insurance talks break down - Specialist Insurance Articles

Home insurers and the government have stepped back from crisis talks over cover for homes and businesses in flood risk areas.

Millions of properties are facing higher insurance premiums as negotiations have broken down.

Owen Paterson, the minister leading the government side of the talks, has announced no legislation is expected for about a year.

The row between insurers and the government is over a ‘statement if principles’ that ends in June 2013.

The statement basically states that if the government spends money on decent flood defences, home insurers will offer cover to homes owners and businesses in areas liable to flooding.

However, both sides have been arguing for months about new terms for continuing the agreement.

Meanwhile, the government’s chief scientist has warned extreme weather, including more rain and floods is here to stay as a result of pumping hothouse gases in to the atmosphere in previous decades.

Although hinting at legislation, the minister has given no indication at what the new law may say.

Home owners and businesses are left paying the price, as insurers have no cap on pricing under the agreement, which simply states they should offer cover to flood risk property.

The result is premiums could increase for all home and business insurance customers, while home and contents insurance for some properties could be too high to be affordable.

Insurers understand that this means some properties are unmortgageable because owners cannot afford buildings cover, which is typically a condition of a loan.

So it looks like while there may be a solution in the pipeline, the insurance industry and concerned homeowners will have to remain in limbo for a little longer.

For competitive flood risk insurance quotes from a leading independent broker get in touch with the specialist team at Quoteline Direct.

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5 good reasons to have adequate home insurance cover Read more: Insurance Blog UK - Specialist Insurance Articles

As a homeowner having adequate insurance in place should be high on the list of priorities, but unfortunately not everyone feels the same way. Last year a report found that almost 3.5 million UK homeowners don’t have sufficient cover – 1 in 10 had either buildings or contents insurance, not both, whilst almost 650,000 had no form of insurance whatsoever. This is something that needs to change, and in case you’re one of the few that don’t see the importance, here are five good reasons to have adequate home insurance cover at all times:

1. No insurance means you’re open to financial loss. You only need to think of how big the losses could be should your possessions be stolen, destroyed or damaged. And what about if the house itself suffered at the hands of a fire, flood or storm? Could you afford to cover the costs? Probably not, and that means not having any insurance is an expensive risk to take.

2. One or the other won’t cut it. You might think that buildings or contents cover will be sufficient, perhaps thinking it’ll be a good way to keep costs down, but in reality it could be a costly mistake. In a lot of scenarios you’ll need to make a claim for both – a flood could damage internal fixtures and electrics (buildings cover) as well as TVs and furniture (contents), so only having one or the other will leave you drastically out of pocket.

3. Thefts and burglaries are on the rise. That, in a nutshell, is why you need adequate contents cover.

4. The UK weather is becoming increasingly extreme. We’ve experienced unprecedented weather conditions over the last few years with storms and flooding being common, so you need to make sure you’re prepared for anything the good old British weather could throw at you.

5. Your mortgage requires it. The terms and conditions of most mortgages require you to have a suitable buildings policy in place, so at the very least, you need this level of cover. Make sure you’re getting a suitable amount too, and this applies to both buildings and contents – if you under-insure you won’t get a sufficient payout to cover the costs, and in the worst case scenario your policy could be null and void as you gave false information.

Ultimately, you need adequate home insurance cover because failing to do so means you’re putting your finances on the line. What if a storm destroyed your kitchen, your furniture and your possessions? What if your jewellery was stolen? What if a fire left you homeless? Without suitable cover you wouldn’t have any financial recompense, and of course, you could be violating the conditions of your mortgage too. It may seem like an unnecessary expense but it’s a small price to pay should you need it, so never underestimate the importance of adequate home insurance and you can have the peace of mind you need.

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Help! I Need Affordable Health Insurance ~ Top 10 Ways to Get Affordable Health Insurance With No Job or Little Money

Top 10 Ways to Get Affordable Health Insurance With No Job or Little Money

Affordable Health Care for You !!

The statistics are startling when it comes to the outrageous uninsured Americans and the numbers keep getting bigger. But what do you do when you don't have a job and can't get affordable individual or family health insurance from an employer? Or, what about all the families that have jobs but still cannot afford the health insurance offered by their employers and can't find an option for affordable health insurance?

There are low cost health insurance options out there that, in fact, many Americans have already implemented and are beating the rising battle against being uninsured. In addition, more individual and family health insurance options are being brought into the market as the rising number of uninsured Americans increases. This is great news for people who just don't know what to do when it comes to obtaining low cost and affordable health insurance. Below are the top 10 ways Americans are getting the affordable individual and family health insurance coverage they need.

1. COBRA: First, it is best to start with the Consolidated Omnibus Budget Reconciliation Act (COBRA). If you are not employed you may be eligible to continue your previous employers' health insurance through COBRA. This also applies to children going off to college... you also may be able to continue on your parent's health insurance coverage through COBRA. This is a very good option for people who may have lost their job and are still undergoing medical treatments. If you were to switch to another insurance plan, your current medical treatments may not qualify under the new health insurance plan. But.. WARNING! This will not be an affordable health insurance option. The premiums will be much higher and you may be able to better afford one of the below options first. It is best to gather all your available health insurance options and pick the best health insurance plan for you.

2. Workers' Compensation: Many people don't realize that they may be covered under their state's Workers' Compensation program. If you are being treated for any work related injury, your employer must offer you treatment under their Workers' Compensation program.

3. Medicaid: Don't automatically think that since you have a job you won't qualify for Medicaid. Medicaid will pay health care expenses for low-income families and individuals. Each state sets the eligibility requirements so qualifying for the program is state specific. If you are working and still don't have enough to buy affordable health insurance, it doesn't cost you a penny to see if you or your children qualify for Medicaid so it is always best to check Medicaid first before moving on to the next options. And, there is good news about Medicaid... more and more states are adding health care benefits for low-income families so if you don't qualify now, keep informed of your state's Medicaid and health insurance laws because you may qualify in the future.


4. Medicare: Most people know if they qualify for Medicare or not, but I need to add it to the list just to make sure it is not overlooked. Medicare is provided by the government and administered by the Social Security Administration. If you are sixty-five years old or older you would qualify for Medicare. You may also qualify if you are getting Social Security disability benefits.

5. State High Risk Health Insurance Pool: If you are turned down by individual health insurance companies because of pre-existing conditions, your state may have a high risk health insurance pool you can obtain health insurance from. It may not be an affordable health insurance choice, but it may be the only individual or family health insurance option available to you that will pay for your pre-existing conditions if you don't qualify for COBRA (see #1 of this list).

6. Individual and Family Health Insurance: This is where you just go to an insurance company and buy individual or family health insurance the same way you would by home or auto insurance. These plans work similar to what an employer would offer their employees but would be more expensive since you don't get the cheaper group rate and you would not have an employer contributing to some of the costs. Another drawback of individual and family health insurance plans is that there is usually a pre-existing conditions clause (they may not cover pre-existing conditions or may not cover them until after a certain period of time) and a medical exam. If you do want to choose an individual or family health insurance policy, remember the higher the deductible you choose the lower your premium will be, but the more you will pay out of pocket when you go to the doctor or hospital. Getting a high deductible "emergency" policy is a better way to maintain a low cost health insurance plan and keeping a Health Savings Account for smaller health issues will probably save you money in the long run.

7. Short Term Health Insurance Coverage: This is a great affordable health insurance option for someone in-between jobs or who knows they will be starting a job soon. Short-term health insurance coverage works the same as an individual health insurance policy (see #6 above), but you will only be covered for a specific amount of time which would keep your premiums down. This is also a good option for someone who needs time to examine their individual and family health insurance choices but still would like to be covered quickly to avoid any coverage gaps.

8. Group Insurance from Organization Memberships: This is often an overlooked source of affordable or low cost health insurance. Some people are members of specific organizations that offer health insurance coverage. For example, people who are members of The Sacramento State Alumni Association can obtain a variety of insurance choices. Although these organizations often do not help pay the health insurance premiums like an employer would, the rates would be lower because of the group discount. So, figure out what organizations you are a member of and see if they offer group health insurance. You could also research organizations that provide group health insurance and join those groups, or even ask current organizations you are a member with to offer group health insurance. They may just not realize they could offer a plan to their members.

9. Group Health Expenses Sharing Plan: This is not insurance but works similar to it. This is when a group of people pool their money together and pay each others' health expenses... they pretty much become their own insurance company. The contributions are pooled together and usually invested in order to accrue interest on the pooled funds. It works well when there are a lot of people who contribute and everyone is only using the money for major medical expenses. There are religious groups that use this model successfully. Medi-Share is a popular health expense sharing plan and has been around since 1993. If you are interested in this option make sure you choose a group that has been around for a long time and has a good track record.

10. Health Insurance Discount Cards: Again, this is also not an insurance plan but can be a good source for getting low cost health services. There are many companies who offer affordable health insurance discount cards and they work like this: You pay a small monthly fee for a membership card and when you go to the doctor or hospital you will get a discounted rate on your services. These are not for everyone and one thing you have to remember is that if you had a catastrophic health crisis the discount on these cards is not a lot, so you would still have an enormous amount of bills left to pay. But, on the other hand, some people do choose to go this route and at least are able to get a discount on their doctor bills. These cards should not be used in place of insurance and if you choose this option you should still be working towards getting health insurance in the future.

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Property Insurance Coverage Exclusions ~ 5 Basic Exclusions in Your Property Insurance Policy

5 Basic Exclusions in Your Property Insurance Policy

Property Insurance

Keeping your personal property safe is important. Property insurance coverage protects your property against many risks. But have you thought about the exclusions in your property insurance policy?

Every property insurance policy has exclusions. It is important to realize that exclusions can be different depending on your particular property insurance coverage and what type of property is being covered under your property insurance policy. There are a few common exclusions that are usually contained in all property insurance policies.

These property insurance exclusions are:

Losses Not Caused by an Accident: Since it is certain your carpet will get worn out, insurance will not cover worn carpets along with other things that are considered certain to happen and not a risk. Insurance is designed to cover risks and not something that is bound to happen over time such as wear and tear, rust, and mechanical breakdowns.

Things that are Controllable: In order for an insurance company to make money, they need responsible people to maintain their property. This exclusion is designed to encourage policyholders to take care of their property. Scratching and breaking objects can be examples of things that are controllable by the insured.

Extremely Hazardous Events: Some events are very hazardous that the insurance company would have to charge a much larger premium for the property insurance policy. These events, such as earthquakes, floods, and mudslides are usually not covered under a standard property insurance policy but can be added on if an insured would like the extra coverage.

Major Disaster Losses: Huge losses such as a loss from a war or a nuclear disaster are usually not covered. These types of losses are not covered because catastrophic losses could cause an insurance company to go bankrupt and also are generally rare.

Coverage Exists Elsewhere: If the property already has its own insurance policy then it would be excluded. An example would be a car. Cars are not covered under a homeowners policy since they are required to have their own car insurance policy.

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Pet Insurance Exclusions ~ pet insurance policy

Pet insurance is a popular choice now for many pet owners. Knowing what is covered in your pet insurance policy is important but knowing what is usually excluded is just as important.

Getting the Right Pet Insurance Policy

Taking the time to understand your particular pet insurance policy is key in getting the right policy for your pet. Companies are different in what they cover and exclude so make sure you get as much information as you can so you can get the most coverage available for your particular pet.

Pet Insurance Policies are Different: Know the Exclusions in Your Pet Insurance Policy

Below is a list of common pet insurance exclusions. Exclusions in pet insurance vary from one company to the next, so again make sure you understand your particular policy.

Common Pet Insurance Exclusions:

1. Pre-Existing Conditions: This most of us understand because it is common to see this as an exclusion in health insurance for humans. In pet insurance, a pre-existing condition is usually something that your pet has before the policy start date. This includes conditions that may not have been diagnosed yet so just because you have not taken your pet to the vet and know they have a condition does not guarantee that you will get covered for the condition.

2. Hereditary Conditions: This really depends on your policy if it is an exclusion or not. And, if hereditary conditions are covered they are usually covered at a lower level.

3. Congenital Conditions: Congenital conditions are not covered because they are considered pre-existing. These are congenital problems that a pet is born with. Some examples include patellar luxation, entropion, ectropion, liver shunt.

4. Fleas, Ticks, and Other Parasites: Some pet insurance policies may provide benefits for preventative medications against parasites but for the most part, getting rid of the parasites would not be covered.

5. Preventable Diseases and Chosen Procedures: Anything that a pet could get a vaccination for to prevent is generally not covered. Also, any procedures you would choose yourself to have done, such as tail docking, is considered an elective procedure and is usually excluded.

6. Teeth Cleaning: Dental care is provided if it is needed due to an injury or accident but general dental preventative care, such as teeth cleaning, is usually not a coverage in pet insurance.

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5 Steps to Filing Your Auto Insurance Claim

5 Steps to Filing Your Auto Insurance Claim

1. Evaluate whether or not you should file an insurance claim: Did you know that just when you call your insurance company with a question about possibly filing a claim it is often recorded on your insurance record? It is important to keep your insurance record clean and one way is deciding whether or not you should file a claim. It doesn’t matter if the accident is your fault or not, you should ask yourself first if you can pay for the damage. Simply put, if you can pay for it yourself without financial hardship, don’t file the claim.

2. Fill out your What to do After an Auto Accident Worksheet: This worksheet, which when you click on the title is provided for print-out, will help you keep track of the information you will need to file your auto insurance claim. It is important to get every detail of the accident documented and to try to find witnesses that would be willing to talk to your insurance company to back-up your story.

3. File the claim ASAP: You will want to file the claim as soon as possible with your insurance company. Even if it is not your fault, your insurance company will handle the claim process as your advocate.

4. Prepare for a possible call from the other insurance company: If there is a dispute between the two parties in the accident, you may get a call from the other driver’s insurance company asking for your version of what happened at the accident scene. If this happens make sure you document everything you say and the name of the customer service agent you talked too.

5. Finally, getting your car fixed: If you had body damage to your vehicle this is when you will finally get it fixed. After your claim is approved, you will likely get a call from your insurance company about sending an insurance adjuster out to assess the damage or asking you to send your car to a pre-approved shop to get it fixed.

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Healthcare Inflation Slowing Down, USA

Despite newly insured people being added to the system, American healthcare inflation is expected to fall to 6.5% in 2014, says a new report by the Health Research Institute, part of PricewaterhouseCoopers LLP.

Healthcare inflation in 2014 will drop even lower than this year "Defying historical patterns", the authors wrote.

Continued downward pressure is expected for the health sector, mainly because of aggressive and creative steps taken by employers, elements of the ACA and new locations and models for delivering care.

Healthcare organizations have had to adapt to a more modest growth rate after being squeezed on reimbursements and going through the ravages of a recession hangover This trend will continue well into next year as healthcare organizations seek out cheaper locations for providing care and taking on less costly personnel.

The recession was followed by stops and starts and then a "tepid" recovery. People's personal wealth has either slowed down in growth or declined; all this has had a dampening effect on the demand for healthcare. The authors wrote "As we reported a year ago, the sluggish recovery has created a 'new normal' in healthcare spending patterns".

As patients have to bear more of the costs for their medical bills, procedures are being questioned, delayed or even cancelled, as are imaging and elective services. It is early days yet to confirm whether ACOs (accountable care organizations) can deliver significant savings.

Healthcare spending will be slowed down further by the ACO system as hospitals strive to keep down expensive readmissions or face penalties, and employers continue using their new powers to influence employee behavior, and either discontinue or increase premiums, which in some cases might shoot up by 50%.

While preparing this report, the Health Research Institute interviewed industry executives, health policy experts and health plan actuaries. The authors also analyzed data from PricewaterhouseCoopers' 2013 Touchstone Survey, which included over 1,000 employers from 35 different industries.
Four factors slow down medical cost trend for next year (2014):

•    Health care continues moving from expensive locations, i.e. hospitals, to more reasonably priced retail clinics and mobile health. Patients appreciate the lower costs and convenience. In some cases, medical bills can be two-thirds lower when compared to traditional healthcare sites.

•    Major employers are contracting with large health systems for complicated and more expensive procedures, such as spinal fusion or heart surgery. Even when taking into account travel costs (some "high performance networks" may be far away), these big-name health systems work out a lot cheaper.

•    There is an estimated "waste" of 30% in the health system, which drives up costs. In December 2011, Dr. Donald M. Berwick, head of Medicare and Medicaid said that up to 30% of spending on health is waste with absolutely no benefit to patients. The federal government's new readmission penalties punish wasteful health care facilities. According to government figures, in 2012 hospital readmissions went down by almost 70,000. The numbers should be even more impressive next year, the authors added, as hospitals concentrate on discharge planning, compliance and continuum of care.

•    According to PwC's (PricewaterhouseCooper's) 2013 Touchstone survey, 17% of employers offer only a high deductible health plan to employees today. Another 44% are considering doing the same. When employees have to pay more for their healthcare, they tend to become more cost-conscious.
What will inflate medical cost trend in 2014?

•    The recent adoption of generic drugs helped slow down overall medical inflation. However, there are many new expensive complex biologics that will push inflation up. The authors wrote "Approvals of new biologics now outpace traditional therapies, and that pattern will continue in 2014 as research efforts target complex cases such as cancer."

•    Since 2009, health industry consolidation has risen by over 50%. The authors expect this trend to continue into next year, which will result in rising prices in some markets. The report quotes a recent study which found that hospital mergers can lead to price rises of up to 20.3%. In markets with one dominant system, these price hikes are generally more pronounced.

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The Importance Of Having Medical Or Health Insurance

You may be young and healthy now but you could be diagnosed with a serious illness tomorrow. What then? Perhaps you've planned and saved well for your retirement and children's education, but in one clean sweep the money disappears. Treating serious medical ailments burns holes in our savings- thus the need for medical insurance is the only way to deal with huge medical bills.
 




"Even if you have a general understanding of terms, they could be defined differently under different contacts"


Differentiating policies

Health-related insurance covers a variety of policies. A critical illness cover pays you a lump sum when you are diagnosed with any of the stated dreaded diseases. Disability income plans usually provide you with an income in the event that you are incapacitated.

A hospitalization benefit plan will entitle you to some cash for the duration of your stay in the hospital, aiming to deflect the extra costs that you incur while hospitalized. Personal accident plans have a certain measure of coverage for hospital bills relating to your accident, while long-term care plans may include an allowance if you require prolonged care out of the hospital.

However, if it's dealing with hospital bills its hospitalization and surgical (H&S) plan that you require. The H&S, as evidenced by its name, takes care of the costs of hospitalization and surgery.

When choosing an insurer, remember that there is no point in being insured for a large sum when you have to fork out cash first and you don't have the money.

What to do when buying a policy

Always make sure you read and understand the terms of a policy you purchase. Even if you do go through it, weaving through the various terms and attempting to compare benefits between policies can be difficult. Even if you have a general understanding of terms, they could be defined differently under different contacts.

To aid policyholders better, Health Insurance has directed a move towards standardization of terms used in policies. The life insurance and general insurance associations of Malaysia, LIAM and PIAM are drawing up a common underwriting guide, which will have common definition of contract wording and minimum standards, especially for terms like pre-existing illnesses, co-insurance and excess. Although some say that this will hinder free competition, standardization will reduce confusion among policyholders.

It is important for you to know what kind of policy you need or else it could fail to support you when you need it the most. It is recommended that an individual obtain 3 kinds of medical insurance:

a. hospitalization and surgical (H&S), which covers reimbursement for medical expenses

b. critical illness plan which provides a lump sum for replacement of lost income

c. disability income benefit for the duration of disability or until the age of 65 or 70

If you travel overseas frequently and your policy does not cover treatment there, it is important that you get a travel insurance policy that covers the higher costs of medical care. When comparing policies, it is always human nature to just look at the first line, which is usually coverage on room and board. But one has to note that that particular item may not necessarily comply with the rest of the policy.

The amount of insurance taken into consideration should not just be for room and board, but benefit amount for items such as surgical expenses, in-hospital expenses, and pre-hospitalization diagnosis, post-hospitalization treatment, major organ transplant, outpatient cancer treatment and outpatient kidney treatment. Every insurer may issue the same room and board amount, but have totally different amounts for all the other items.

On top of that, you would need to look out for areas such as:

   

•     definitions and limitations to payment of benefits

   

•     how a disability define

•     how soon after a claim can one claim again

•     special provisions (succeeding policy holder after the first policyholder dies to avoid the hassle of  declaring their health again)

•     does the policy have guaranteed renewability- to ensure protection is available throughout and premiums are maintain despite recent diagnosis of illness

What if you are already covered?

These days, many companies cover their employees under group medical insurance. Does this mean that you don't need a separate policy for yourself?

Note that one cannot make double claims with H&S policies- so make sure that your needs are covered. If it isn't, you can claim the balance from your other policy, depending on how the multiple insurers work things out.

Find out the cover provided by your employers and then you can proceed to top up the difference to improve your coverage. If the cover is sufficient, then there should be no reason to add on.

Depending on your own needs and wants, you may want to take on your own policy with a higher limit of benefits. (e.g. instead of a shared hospital room, you may choose to have a private room).

However, if you rely on your employer for your medical insurance needs, you will have to know that once you leave your place of employment, the coverage ceases. Therefore, you will need to make provisions before leaving the company by picking up a policy a year before you retiring or resigning as most policies have a one-year waiting period for certain illnesses.

Generally, it is wrong to think that picking up a policy later will cost you more. Generally the premiums you pay are related to the age band you fall into (e.g. 21-25 years, 26-30 years) and will increase as you grow older although rates for children can be higher than young adults. The premiums you pay will increase as you enter the age band, regardless whether you are renewing a policy or picking up a new one.

The definite good thing about picking up a policy when you are younger is that you are usually healthier. Age is a barrier, with most insurers limiting entry age at 60, with renewals up to 70 years. Once you are diagnosed with an illness or deemed high-risk, you may no longer be insurable. Most policies do not cover pre-existing conditions, or if there is a waiting period before they are covered. If the insurer does accept you, there may be exclusions and in some cases, pay more in terms of a load.

Making your decision

The only way of to keep healthcare costs down for the average person is preventive care by having regular medical check-ups and taking the proper medication early on.

Concerns rise as healthcare costs increase day by day. Better technology and new equipment and techniques translate into higher costs. Drug companies, seeking to recoup their high research and investment costs as well as make some profit for their shareholders, price their drugs accordingly.

Whether you are male or female, an athlete, white-collar worker or millionaire, healthcare is something we need to think about. Ensuring sufficient funds for medical costs is an essential part of financial planning.

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Tips On Buying The Right Motor Insurance Policy

IN the event of a minor road accident, the first thing drivers tend to do is to get out of their cars and start playing the 'blame game'. It doesn't matter if the accident was clearly caused by one party, everyone involved will insist that they are free of blame for fear of losing their no-claim-discount (NCD).

"Owners who enjoy tinkering with their car engines and modifying the power or performance need to disclose this information to the insurance company"

But there are more honest and less stressful ways of handling an accident, and the first thing to do is to be an informed driver. While it is not possible to diminish the damages to your vehicle once the accident has occurred, it is possible to curtail the damage to your finances. It all depends on the motor insurance policy that was purchased. Unfortunately, many drivers do not take the time to understand their policy or the related jargon such as "average clause" and "disclosure" until they are frantically trying to make a claim after an accident. Drivers should bear in mind that there are a number of details that should be taken into account when applying for a motor insurance policy. Firstly, as soon as a car is purchased the owner must buy an insurance cover. If a used car is purchased, the new owner needs to know that the cover of the previous owner is null and void. This is true even if legal ownership transfer has not yet occurred at the Road Transport Department (RTD). The insured value - or sum insured - depends on the market value of a vehicle. Under-insurance or over-insurance can occur when this value is not determined properly. If the sum insured is less than the market value (under-insurance) the owner will only be partially compensated. If the sum insured is higher (over-insurance) the insurance company will only pay out the market value. The average clause comes into play when a damaged car has been under-insured. The owner's insurance claim can sometimes be drastically reduced because the claim will be reduced proportionately to the amount that is uninsured. Owners who enjoy tinkering with their car engines and modifying the power or performance need to disclose this information to the insurance company. Failure to provide material facts about the car, including previous accidents, can result in the insurance company refusing any claims made. If this happens, the owner will be liable. There is a 'reward' for the driver who has somehow managed to maintain an accident-free car. This is known as the no-claim-discount (NCD). The premium for the insurance will be reduced if no claim is made against the policy during the preceding 12 months. NCD entitlements depend on the class of the vehicle and the number of years of continuous driving experience without any claims made against the policy.

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Why Canadians Need a Life Insurance

One of the most bandied about terms in the insurance industry is the ever mutable concept of "risk". Risk assessment is a core component of how insurance brokers determine coverage and premiums for their clients, understanding the client's history, expectations of coverage, and liabilities in providing an insurance package while still remaining profitable.

However on the consumer side of the insurance industry, risk has been transposed to mean an aversion or distrust of insurance. The most common phrases you'll hear when people decide not to purchase insurance is "Oh, it's not for me", "That will never happen to me", and the myopic "I'll think about when I'm older".

The late Andy Rooney said it best when he called death "... a distant rumor to the young."

The 2013 RBC Insurance Poll indicated a rather startling trend in Canadians today, particularly on fathers. It's estimated that up to 30% of Canadian fathers do not own any form of life insurance, and do not seek a quote on such. The reasons? 44% of the uninsured believe they have enough investments and other resources to provide for their family. While personal savings can go a long way in securing your family's future when you die, the same poll reported that two out of the five participants had no idea how much their families would actually need when they're gone.

Overall, it's estimated that one in three Canadians adults have no form of life insurance, and are less likely to seek a quote to find what life insurance can offer them. The greatest risk being adults 18-29 and seniors over the age of 59. The reality of the rationalization of the uninsured stems from two major beliefs: that insurance isn't worth the financial risk, or that this risk does not apply to them.

And understandably, with a population so grossly undereducated about insurance policies, life insurance has come be seen as akin to homeowner's, disability, or auto insurance: "Nice to have if it happens, but what if it doesn't happen?" Life insurance, in reality, is conversely risk-free. No one in the world proposes to live forever, so why has life insurance been seen as a risky decision? Interestingly, 22% of Canadians without life insurance have responded that they admit they should have a policy, yet don't evaluate their options or quote their costs.

Short-sighted planning is one cause, particularly among younger demographics. With a cultural presence and ethos increasingly centered in the "now", Canadians feel that planning for the future simply isn't worth the time, effort, and money. Life insurance through an employer is one solution, but this insurance isn't portable and won't protect you if you're laid off or terminated from your job. Furthermore, long-term planning for life insurance guarantees younger adults can obtain lower premiums and greater protection when they start a family or purchase a home. With a market saturated with product options, and ready access to life insurance quotes, this lack of initiative is to blame on the consumer. Life insurance companies want to sell, but consumers are hesitant to buy.

The other issue is simply knowledge, and this affects all demographics equally, though in different ways. Someone in poor health, a senior, or someone who's been spurned or denied by insurance companies in the past may not even realize the options available to them. No medical or guaranteed issue insurance may not always offer the grand cash benefit that everyone wants, but reasonable coverage can always be offered to help you settle your affairs and guarantee tax free benefits to your dependants and family. After all, seniors and those with medical issues are still a market demographic for insurance companies, and these companies are increasingly making efforts to be competitive in that environment.

Knowledge is priceless, and a pint of sweat can save a gallon of blood, so to speak. Your passing will always incur financial costs, your estate will always face taxes, your assets will always be distributed, and your family will always benefit from financial aid. Planning early, and planning smartly by researching your life insurance options, obtaining quotes, and researching the market can provide you with peace of mind, and protection for your family. Anything less is just risk taking behavior.

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My Claims Management Has Changed

In the last decade there have been many important changes in Insurance Claim Management that have improved predictability, the integration of data and added the convenience of mobility to increase processing speed. In fact, the industry has experienced far too many changes to attempt to enumerate them in a single post. Four of the most significant transformations include:

1. The optimization of processes achieved through integrated systems makes claims management more intelligent, predictive and proactive. Fragmented customer benefits, claims and transactional data are thankfully a thing of the past. The benefits of an integrated system are tangible. Loss predictability is more refined. Claim file information is entered once and shared in accordance with established rules, helping to eliminate the chance of duplication in data entry and thus reducing costs.

2. Enhanced customer service and reduced claims costs are not only possible but very achievable due to the upgraded ability to identify risks, which can lead to improved fact-based decision making and an increased business understanding of the risk of exposure and the value of case load capacity. This information can be used to improve processes, helping to achieve claim resolution more quickly by eliminating administrative delays and reducing errors. Quicker claims resolution and more accurate settlements can also lead to higher revenues as a result of positive brand equity.

3. More Information is available today than ever before. The explosion of Information available from web pages, social media, content repositories and document sharing file systems is remarkable. Clearly, there is a rapidly growing variety of digital content, including digitized voice, pictures, video, as well as adjuster notes, reports from investigators or first responders and even claim forms. Accessing this wealth of information, analyzing its relevance and integrating pertinent data into a single database has become much more sophisticated.

4. Mobile applications provide immediate accessibility to information as well as the ability to interact with collaborators on a wherever, whenever basis. Claims management is no longer restricted by time and geographic distance. Increasingly, insurance claim content is digital or existing content is almost immediately digitized including hard copy documents and telephone call reports from an insured with first notice of loss. Once the information is digitized, it flows to and from claims stakeholders' through web-enabled mobile communication devices achieving increased interaction speed and more intelligent collaboration.

Claims expenditure represents nearly 70% of premium for most insurers. Thus, one cannot overestimate the value of these four improvements to the claim management process. Increases in the use of available information, the integration of systems and new tools have enhanced our ability to communicate and collaborate with more speed and accuracy. The result is a streamlined claims management process that simultaneously improves the experience for claimants and the claims management professionals involved in deciding and resolving the loss events.

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