Life Insurance
Rising prescription costs
Rising Prescription Costs
As healthcare premiums are increasing you may have noticed rising prescription costs. In a study done by Consumer Reports in 2019, 12% of individuals said their prescriptions costs increased by more than $100 over the past year. One contributing factor is that there are no federal regulations that keep drug prices in check.
How are consumers able to offset rising prescription costs?
Ask your doctor for generic:
Most brand-name drugs have generics that can be up to 90 percent cheaper. They aren’t available for all prescription drugs, but it doesn’t hurt to ask your doctor or pharmacist.
Ask about over-the-counter options:
Some medications can be a combination of two inexpensive drugs that you can purchase without a prescription.
Use manufacturer discounts:
Many drugmakers offer some type of discount. For example, Janssen, which makes Xarelto, offers a discount that can drop the price down to $10.
These are not all the ways you can help reduce your prescription costs but are some of the most effective ways. As always if you have any questions regarding your healthcare costs please talk to one of our insurance agents.
Insurance Companies respond to Covid
Shield Insurance Blog | Covid |
There is a wealth of information in this article and too much to post, but please check it out as the Health Insurance Companies are listed A-Z and each one explains HOW they are responding to the Covid Crisis.
Insurance Companies response to Covid
The health and well-being of millions of Americans remain our highest priority. Health insurance providers are committed to helping prevent the spread of COVID-19. We are activating emergency plans to ensure that Americans have access to the prevention, testing, and treatment needed to handle the current situation.
Here are some ways health insurance providers are taking action:
Independent Agent: Dave Ramsey’s Number One Tip
“If you’re looking to save hundreds, even thousands, on your insurance costs, consider Dave’s number-one tip: Purchase your coverage through an independent insurance agent, which is an agent who represents several insurance companies instead of working for just one carrier.” – Dave Ramsey
Shield Insurance Agency is a 3rd Generation Agency providing all Independent Agents
In today’s economy we cut coupons, look for BOGO’s, and try to find the best insurance coverage for our buck. With insurance agents, there are two types – Captive and Independent.
A captive agent is one who works for one specific company and is able to provide one companies products.
From Dave
An independent agent is one who sells insurance products for several different companies but does not work for a specific company. So as we spend our time looking for ways to trim costs, one easy way to do that is to contact your local independent insurance agency and see how they can help.
How to access your life insurance policy’s cash value
The most important job of life insurance is to take care of those who count on you if something were to happen to you. While all life insurance provides a death benefit to fill this role, some types also build cash value.
What is cash value?
When you make a premium payment into a cash value life insurance policy, part of that money stays with the policy, earns a return, and accumulates over time. This is the cash value. It’s what you’d get if you surrendered the policy (less any surrender fees).
Some policies have a provision to pay out the cash value as part of the death benefit while others do not. Check your policy or check with your insurance agent to confirm which type you have.
Types of cash value life insurance
Permanent policies, including whole and universal life, offer lifelong coverage and have cash value. This cash value accumulates differently based on the type of policy.
- Whole life cash values are pre-defined and guaranteed. In exchange for guarantees, the cash value grows at a conservative rate.
- A fixed universal life (UL) credits the cash value with a rate determined by the insurance company based on market conditions. This rate can vary over time but won’t be less than a guaranteed minimum.
- Indexed UL earns a rate tied to a market index, like the S&P 500®, which offers greater upside potential than the above types. When the market performs poorly, the rate may be lower, but there’s no risk of market loss since you’re not actually invested in the market.
- Variable UL cash value accumulates based on the market performance of the mix of available investment options chosen by the policy owner. These policies can lose money.
6 ways to use your cash value
The cash value can be a useful financial tool and can be accessed in several ways — but make sure to ask your insurance agent for details to avoid any unintended consequences.
1. Pay policy premiums.
Another option to use cash value is to pay some or possibly all the premiums for your life insurance policy.
2. Take out a loan.
You can also take out a loan from your policy. The rate is usually lower than a bank loan — and you don’t have to qualify for the loan since it’s your money (good news for those with a weak credit history).
You don’t have to repay these loans, but interest will continue to accumulate. If the total outstanding loan balance including interest ever exceeds the cash value, the policy will lapse, ending your coverage. To avoid this situation, either pay the interest each year or keep an eye on the situation and take action when needed.
Any unpaid loan balances will reduce the death benefit when the insured person dies.
3. Make a withdrawal.
You can also withdraw some or all of your cash value — may be for an emergency expense or to get you through a tough time. Withdrawals can reduce the death benefit, though, so consult your agent before you pull the trigger. There are no taxes on a withdrawal as long as the amount is withdrawn is less than what you’ve paid in.
4. Supplement your retirement.
Cash-value life insurance can add to your retirement portfolio. Since it grows tax-deferred, it can accumulate faster, but it still may take a number of years, maybe 10 to 15, to become a significant asset.
Some policies also allow you to receive part or all of the death benefit early for terminal illness, long-term care, or chronic conditions, which can help protect your nest egg.
5. Surrender your policy completely.
If you no longer need the coverage, you can completely cancel or surrender your life insurance policy and receive the accumulated cash value, less any fees and outstanding loan balances.
Any money you receive that’s above what you paid into the policy will be taxed as ordinary income. So, if you paid in a total of $10,000 and you receive $12,500 after your surrender, you’ll be taxed on $2,500.
6. Sell your policy.
As an alternative to surrendering your life insurance policy, you may be able to sell it to a life insurance settlement company. The company will take over the payments and become the policy’s beneficiary.
Like a surrender, you’ll be taxed on amounts in excess of what you paid in premiums. You should still end up with more money than a surrender. However, the process can be time-consuming, and it may be hard to find an interested buyer.
With these many options, life insurance can not only protect your family, but it can also provide a flexible financial resource over the years.
A special thank you to Grange Life Insurance Company and Kansas City Life Insurance Company for contributing this article.
Life policies are offered by Kansas City Life Insurance Company, Kansas City, Mo., and are subject to underwriting approval.
Is Work Life Insurance Enough?
Is the life insurance you have at work enough? 3 ways to tell
If you work full-time, chances are you have some life insurance through your employer — 75% of full-time workers in the U.S. have access to life insurance as an employee benefit and 98% of those workers are covered.1 But is it all the life insurance coverage you need?
Many people mistakenly think it is, even though they could benefit from having their own life insurance outside of work.
Here are three things to consider:
1. Is it enough coverage?
If your employer offers life insurance and you signed up for it, at least you have some coverage. That’s better than no coverage. But it might not be enough to give your family the funds they need to make ends meet if the worst happens to you.
Research shows that one of every three families would be in financial trouble in less than one month if they lost a primary wage earner — and the percentage grows to 70% within six months.2
You can help your family avoid this hardship by making sure you have enough life insurance to replace your paycheck as long as needed (for example, until the kids leave home or the mortgage is paid off).
Your employer may limit the amount of group coverage available to you, leaving you short.
2. You can’t take Life Insurance with you.
Even if you can get enough coverage through your employer, that coverage may end before you want it to — and may end suddenly
Group life insurance is an employee benefit that usually ends when your employment ends. Even if you’re going to a new job immediately, you may not be eligible for benefits right away — if the new employer offers it at all. And, if you lose your job to a lay-off, downsizing, or firing — or if you retire — it might be a while before you can replace the coverage.
If your strategy is to buy individual life insurance later, keep in mind, that your health, driving record, and credit history must remain solid in order to qualify for it. Also, coverage generally costs more as you age.
3. No extra benefits or cash value.
Employer coverage is usually affordable and reliable. But it’s also usually pretty basic, meaning it doesn’t accumulate cash value over time or have any extra benefits under your control
- Cash value. An individual policy you buy from an insurance agent can last for life — usually up to age 100 or 120 — and, depending on the type of policy, can build up a cash value that you can borrow against or use to pay part of the cost of the policy. Employer group plans don’t offer these options.
- Extra benefits. These days, many individual life insurance policies offer additional benefits during the living years. These include features that provide part of the death benefit early if the insured person is diagnosed with a terminal illness or needs long-term care. Another feature can extend coverage to others in the family. These extra benefits may carry an additional cost, but that cost may still be lower than stand-alone coverage.
For these reasons, it might be wise to think of employer coverage as a supplement to your own individual policy, instead of relying on it as your only source of life insurance coverage. That puts you in the driver’s seat to choose the type and amount of coverage that’s right for you — and that can be customized to your needs.
1 – National Compensation Survey, Employee Benefits, Bureau of Labor Statistics, 2018
2 – Insurance Barometer Study, LIMRA, 2017
Independent Agents vs. Captive Agents
When you’re in the market for insurance, whether it’s home, auto or commercial insurance, you typically work with an agent who can help you find a policy that meets your needs. But most people don’t know that there are two different kinds of insurance agents—captive and independent agents.
So what is an independent insurance agent vs. a captive insurance agent? In short, captive insurance agents are contracted to work for one insurance company and can only sell that company’s policies. On the other hand, independent agents are contracted to work with a variety of insurance companies and can sell policies from multiple providers.
As a consumer, it’s important to understand the distinctions between captive and independent agents. Although they sound the same, some people may benefit from working with a captive agent and others with an independent agent. In this article, we’ll explain the key differences and help you decide which agent is best for you.
Captive Agents
Most of the major insurance companies, like State Farm, Allstate and Farmers, use captive agents to sell their insurance products. Their agents are only selling policies from that one insurer, so the agents are experts at knowing the different policies available, discounts and coverage add-ons for their one carrier.
Because of that, they can be helpful for people who are buying insurance for the first time or for people who aren’t sure how much coverage to purchase.
Client satisfaction is crucial for captive agents because they get a commission for every earned sale. However, their commission rate tends to be lower than for independent agents because they are also paid a salary from the insurance company and get financial assistance with costs like advertising and hiring.
Independent Agents
Independent agents partner with several insurance companies of their choosing to sell certain policies from each provider. For example, an independent agent might contract with Pioneer Insurance, Frankenmuth Insurance,and Citizens Insurance and sell any of their auto and home insurance policies.
Many consumers like working an independent insurance agent because an independent agent gives the customer more options. They aren’t locked into purchasing from a small number of plans that might be too expensive or not a great fit for their coverage needs. Those options help people shop around for plans before settling on one.
Which is better?
Generally speaking, there isn’t one better type of insurance agent. Whether you choose to work with a captive agent or an independent agent depends on you.
The main benefit of working with a captive agent is that they have extensive knowledge of their insurers products and policies, because they have one carrier. However, working with a captive agent tends to be more expensive, due to extra fees that the insurance company charges.
If you work with an independent agent, you’ll get more options, which also means a wider price range. But independent agents have in-depth knowledge about numerous carriers, where captives only need to learn one. Also, independent agents usually charge less because there isn’t one parent company to support.
If you’re concerned with keeping costs low, working with an independent agent will save you money. Keep in mind that you should already have a general idea of what you’re looking for before meeting with an agent.
Frequently asked questions
What type of insurance do independent agents and captive agents sell?
Both independent and captive agents can sell any kind of insurance they want. Some choose to sell every product that an insurer offers, while others specialize in a few areas, like home and life insurance.
Should I choose an independent agent or a captive agent?
There are a few main reasons why you would choose an independent vs. a captive agent. The first is cost—working with an independent agent will be cheaper than working with a captive agent. Secondly, independent agents can offer a wider variety of plans, so you have more choices and a wider price range to work from.
How to prepare your phone for an emergency
In case of an emergency, here is how to prepare your phone.
Today, our phones are rarely outside of our reach. This makes them one of the best tools we have to quickly respond to an emergency and increase the chances of a more positive outcome.
How prepared is your phone to handle an emergency?
In most emergencies, you would be the one to contact someone for help. So, it’s important to take a few minutes to research and save important emergency contact numbers on your phone so you can make the call immediately and get help faster.
Here are the main emergency phone numbers to prepare
- Your emergency contacts, such as a parent, spouse, or close friend
- Police, 911 in the United States for emergencies
- Poison Control Center
- State Highway Patrol
- Your nearest police and fire department (for non-emergencies)
You should also consider saving these important numbers to help you in an emergency:
- Your doctor, pediatrician, and/or veterinarian
- Your pharmacy
- Home health aides
- Your insurance company
- Your roadside assistance provider
- Your employer
- Your child’s school or caregiver
- A nearby relative or friend
- An out-of-town relative or friend
There are also some emergency situations, like a bad fall or car accident, where you might not be able to communicate with first responders. For this reason, it’s important to take these two steps:
- Add an emergency contact in your phones, such as a parent, spouse, or close friend who can come to your aid.
- If your phone locks, set up a lock screen message to communicate helpful information to first responders, like your emergency contact, blood type, allergies, and medications.
Depending on the type of phone you’re using, there are different ways to add a lock screen message.
iPhone users can use the Health app on their phones to add their basic personal information, important medical details, and emergency contact numbers within the Medical ID tab and make them accessible from their lock screen. Just make sure you select “Show When Locked” and test it out after you’ve finished setting it up.
Android users can set up their lock screen message by going into their Settings, Users & Accounts, and then Emergency Information. Enter your medical information and emergency contact. Then test it out by locking your phone, swiping up, and tapping “Emergency” to find the information you entered.
Additionally, Android lets you put any message you want on your locked screen. To do this, open your Settings, go to Security & Location, and next to the Screen Lock tab hit Settings. Then, tap Lock Screen Message. Here, you can enter your primary emergency contact or important medication information so that it always displays on your locked phone screen.
Because it’s difficult to predict when or where an emergency will happen, it is a smart idea to prepare your phone now so that you’re ready to handle any situation that comes your way in the future. Be safe out there!
This article is for informational and suggestion purposes only. To learn more about Shield Insurance Agency, business and life insurance, or auto insurance including Roadside Assistance, please call or text our office at 616-896-4600
References:
– Harvard Health Publishing, Harvard Medical School
– HuffPost, LIFE
Wallet Safety Check List
10 items to leave out of your wallet
It’s simple for thieves to turn plain, old regular crime into cybercrime – if you give them the right information. Leave these ten items out of your wallet.
Over time, it’s easy for your wallet or purse to become stuffed full of crucial information – receipts, PIN numbers, and social security cards – that thieves can use to access your online life with only a few clicks.
Keep only what you need in your wallet and purse and keep your online life secure. Use the infographic below to help determine what should be, and more importantly, what should not be in your wallet.
Wallet Safety Check List
- Social Security Cards
- Birth certificates
- Receipts
- Gift cards
- Extra credit cards
- Blank checks
- Passports
- Medicare cards
- Spare keys
- Pins and passwords
