Posted on Thu, Jul 29, 2010 @ 02:39 PM
Almost 70% of those over the age of 65 in America will use some sort of long term care during their lifetime.
With those sorts of odds, it makes sense to understand the basics of long term care insurance and the range of features to choose from.
First, long term care is defined as assistance given to those who have a chronic illness or disability that interferes with the ability to perform the Activities of Daily Living (ADL).
What are the ADLs?
-
- Bathing
- Toileting
- Eating
- Ambling
- Dressing
How does insurance fit in?
Long term care insurance is insurance that you purchase when you are healthy in order to cover the expenses associated with long term care in the future.
For most people, long term care provides a freedom to choose the care they receive. Unlike Medicare options, private insurance generally provides set daily limits without regard to where you receive care. This means you can get care at your chosen facility or with a caretaker at your home.
What do you need to consider?
First, of course, is the expense. Long term care, since you are likely to use it, simply costs more than other insurance.
If you have enough to cover eventual costs that range from $70,000 to $100,000 each year then you can self insure and avoid long term care insurance.
Premiums are likely to be in the $200 per month range for a healthy adult in their 50s.
The other important variables to consider in each policy are:
Exclusion period: The number of days or months you need to wait before the insurance starts.
The daily limits: Policies differ greatly on the amount that is allowed per day.
Lifetime limits: Many policies stipulate a maximum lifetime benefit to you. This is very important.
Inflation: Some policies account for the rising costs over time and guarantee that your daily limits increase each year to account for inflation.
Long term care is an important decision and one well worth discussing with your insurance and financial advisor.
All of us here at Hill & Hamilton wish you many healthy years to come.
Photo by robinsan
Posted on Thu, Jul 15, 2010 @ 03:16 PM
Nothing beats the new car smell when you sit in a brand new car.
But how do you know how safe your new car will be if you are ever in an accident?
It is simple: before you buy a new car, research the crash rating tests for that vehicle and check for some important safety features.
The easiest way to check for safety of a model of car is to go to the government-sponsored web site, www.safercar.gov
Here you will find the results of safety tests for every model of car sold in the US through a simple search.
How do they rate auto safety?
Three tests are conducted and models are rated from one to five stars for each test with five being the best.
- The first test is for a head-on collision with a fixed barrier at 35 mph. To get five stars, the auto needs to have less than a 10% chance of serious injury to front-seat passengers.
- The second test measures a side impact crash with another automobile traveling 38 mph. To receive five stars, there needs to be less than a 5% chance of serious injury for any passenger.
- The last test is a rollover test since more than 10,000 people die of rollover crashes each year. Again, to get a five-star rating, there needs to be less than a 10% chance that any passenger will suffer serious injury during a rollover.
Finally, at the same site, you can see descriptions of the latest safety equipment you may want for your vehicle such as electronic stability control and side impact airbags.
Remember that wearing a seat belt reduces your chances of serious injury by up to 75% if you are in an accident.
All of us here at Hill & Hamilton Insurance wish you safe driving.
Photo by chermida
Posted on Fri, Jul 02, 2010 @ 10:33 AM
Recently, we have been receiving numerous questions and concerns about the rising costs of health care and the impact it has on small business owners. Did you know there is a new tool available to small business owners designed to reduce health insurance costs for both employers and employees? The tool is the Health Savings Account, and it may be of benefit to you.
Here is a brief explanation and while there are several insurance terms here, we hope you're able to find a way to save your company money. The HSA has 2 components: a high deductible health insurance plan and an individual tax-exempt trust.
The High Deductible Health Insurance plan is straight forward. A qualified HDHP is a health plan that has certain requirements for individual coverage and for family coverage.
The trust account is designed to pay for routine medical expenses/and or provide savings for the future. Money put into the account can be used either during the year or accumulated in the account. Allowable medical expenses are defined by the IRS. There are several benefits with an HSA:
One of the most alluring aspects of an HSA account is that it can be used for health and medical expenses by employees, tax free.
Contributions "roll over" from year to year so if an employee doesn't use the money one year they can use it the following year.
Contributions are not included in the taxable income, making them completely tax free. Be aware that there are limits on how much an individual or a family can contribute each year.
The HSA is "owned" by the employee. If they leave they can take their HSA with them.
For employers the greatest asset is that contributions on the part of employers are also tax exempt and not considered within payroll taxes. HSA plans are not available to all employers and are best suited for small business owners.
If you're interested in learning more about a Health Savings Account for your employees check out the Department of the Treasury's website or give us a call.
Posted on Thu, Jun 24, 2010 @ 09:08 AM
No one wants to think about getting injured badly enough that we can't work anymore... It makes us cringe to think of the pain and the idle time we'd spend in our house if we were disabled.
BUT, it's very important to consider: what if it happened, and what if you weren't covered?
Disability insurance protects you and your family in case an injury causes you not to be able to work for a short or long period of time. Without it, you and your family could be left in a difficult situation.
So do you, like many in the workforce, believe you are already covered for disability by your employee protection plan? You may be correct but the truth is that usually, this is not the case...
Employers often offer short-term policies for up to 6 months as part of their group benefits plan. But these policies do nothing for you if you are truly incapacitated and cannot regain employment. There are some major things to look for in a disability policy:
Does it cover you if you can no longer work in your current job or does it only cover you if you can no longer do any job? The first type is more expensive but also much more valuable... The second type means that if you can still perform any job (consider fast food?) then the policy does not pay.
The second important part to these policies is the maximum amount that they will pay. They may cap the monthly benefit and they also may cap the number of years that they will pay. Neither are very helpful if you need long term income replacement due to a disability.
So, even though this is an unpleasant topic, we suggest that it is best to investigate your choices at least once a year during benefits renewal time.
That being said, all of us here at Hill & Hamilton wish you and your family continued financial and physical health as we move through 2010!
Posted on Thu, Jun 17, 2010 @ 09:55 AM
The decision to offer additional benefits to your staff can be a difficult choice. You want what is right for your employees, what is easiest for you to manage and what is most cost effective.
There are benefits with both 401(k) and IRA plans, and they can be more affordable (and beneficial) than you may think. There are tax deductible contributions, tax credits for starting the program, and the positive aspect of retaining and hiring of employees.
What is a 401(k)?
This is a form of profit sharing that requires a pre-tax contribution on the part of the employee. The 401(k) can also have a contribution on the part of the employer. The programs usually allow for a set amount to be contributed on the part of the employer, depending on the number of years an employee has been with the company.
This type of plan will allow for withdrawal or roll-over if the employee should leave the company, but there are often penalties or waiting periods associated with it.
This is an excellent option for companies with a large number of employees, although there can be a large amount of paperwork to maintain the accounts, including managing and preparing the filing of 5500 tax paperwork.
What is an IRA?
Short for Individual Retirement Account, this is a savings program that allows money to be set aside for retirement. There are two basic types of IRA programs, the SEP, or the Simplified Employee Pension Plan and the Simple IRA, the Savings Incentive Matching Plan for Employees. Both of these plans are best suited for smaller companies, as they are easier to maintain and easy to set up.
If you're a small business owner, this video might be of particular interest to you as you plan for your retirement and look for ways to minimize the amount you pay in taxes:
The SEP allows employers to set money aside for their employees retirement, while the Simple IRA allows for both employee and employer contribution to the retirement plan. Both plans allow more flexibility on the part of the employer and the employee, deciding from year to year how much to contribute. There is less paperwork to manage because of the tax-free until retirement status, although there will be paperwork and penalties for early withdrawals or rollovers.
If you would like more information regarding setting up a retirement plan for your employees, please feel free to contact our office.
Posted on Thu, Jun 10, 2010 @ 09:27 AM
Hill & Hamilton is proud to welcome the newest member to our team of insurance advisors... Tony Fink!
Tony brings a diverse background of experience and knowledge with him to his new position. He has successfully completed the required coursework and exams to earn his Ohio Property & Casualty Insurance License as well as his Ohio Life & Health Insurance License.
With more than 2 years of insurance experience in addition to his knowledge of other industries, specifically the retail industry, Tony is able to offer a unique perspective to his clients. His unwavering commitment to do what is best for his clients has helped him to quickly endear himself to those he serves.
Tony's primary focus at H&H will be serving the needs of those looking for property & casualty insurance. In addition, he will also help those that desire life insurance protection.
For Individuals & Families
Specifically, Tony handles auto, home, condo, renters, motorcycle, boat & umbrella insurance for individuals and families. He also can provide assistance with policies for anything from insuring your jewelry to your rental dwelling.
For Businesses
With access to Ohio's, as well as the nation's, strongest and most aggressive insurance companies, Tony helps business structure insurance programs that meet their exact expectations in areas of product, service and pricing.
If you'd like to reach Tony, just call our office at (937) 592-9076, toll free at (877) 592-9076 or e-mail him directly at tfink@hillandhamilton.com.
Feel free to spread the word about Tony's career change. We're excited to have him on our team and look forward to seeing him succeed with the help of you, our friends and valued clients!
Posted on Fri, Jun 04, 2010 @ 07:13 AM
There are common misconceptions with how a ticket can affect your insurance. Time and time again we hear from clients "yes I have a ticket but no points on my record so this won't affect my insurance, right?"
The answer is "it depends." Unless the ticket is overturned by a court, a conviction will very likely have an impact on your insurance. Depending on the type of conviction, the impact will vary.
If you have a minor ticket such as speeding, failure to stop, etc... you are at risk of losing certain discounts on your policy such as a "violation free discount." This can be as much as 15%. However more serious convictions can put your insurance at risk of being cancelled by the insurance company.
If you have more than one conviction, your insurance company may add a surcharge to your policy, in addition to removing any "violation free" discounts. From the perspective of law enforcement, points on your record are used to track the privilege of driving. If you exceed a certain number of points your license can be suspended or even revoked.
So while a ticket for a minor violation, such as speeding, may not negatively affect your insurance, there's no guarantee. It depends on a number of factors including other violations on your record, the records of other drivers included on your policy, and the company you're insured with, just to name a few.
The best advice is to use common sense. Keeping your record free of violations and accidents will go a long way in reducing your insurance premium.
Photo by Richard Faulder
Posted on Fri, May 21, 2010 @ 02:16 PM
Over the past few weeks, we received several emails asking two questions: "What is group life insurance?" and "Should I make this investment?"
As businesses continue competing to attract the best talent and rise to the top of their industry, many companies are beginning to offer group life insurance as part of a benefits package. Usually this is an optional coverage and many times it is not offered to employees until they have been with the company for a certain period of time. If you or someone you know has the option of buying group life insurance, hopefully this information helps...
Usually, group life insurance policies offer employees a variety of different options including group health, group life, and long or short-term disability. For the most part, these will be offered as additions to a current health insurance plan.
The benefit of a group life insurance policy is the low premium rates an employee receives because the insurance company is looking at the overall risk of the group, assuming some individuals may not stay with the company through retirement, while others may opt out of the policy.
Keep in mind that while a group life insurance policy may be an added extra policy, it is usually not enough insurance to keep an employee from needing their own individual life insurance. This is because most group policies will set a cap at somewhere between $10,000 and one year's salary.
Before signing on for group life insurance, you still need to be sure of what type of policy this is. In most cases, businesses offer term life insurance to their employees, with the insurance only good while the employee is working for the company. If it is part of a benefits package, you may be able to roll it into your own account after termination, but this isn't always the case. Remember that the company actually owns the policy, so you will have to deal with this factor much as you would for a 401(k) or an IRA plan.
If you have questions regarding the need for group life insurance for your staff, please feel free to contact our office.
Photo by Alex E. Proimos
Posted on Fri, May 14, 2010 @ 12:55 PM
So you're planning a summer vacation with the family and will be renting a car when you arrive at your destination airport. You've done your shopping and received the best deal you could find on a vehicle big enough to carry you and that mountain of luggage that your spouse knows would be lonesome if you left any of it at home.
The clerk at the rental counter offers you the Collision (or Loss) Damage Waiver and suddenly, you begin to question whether you really need this coverage or if you can get by without it? You're inclined to take your chances... and save your hard-earned money. If you have full coverage on your personal auto policy it is quite likely that your physical damage coverage extends to this rental vehicle. That's a chance people have taken for years - but recently, many people are no longer taking this chance!
One insurance industry group published a paper awhile back titled "The Top 10 Reasons to Purchase the Rental Car CDW/LDW". Some of their reasons included Administrative Expenses and Loss of Rents. Who would think the administrative costs would be that high and unless all of their vehicles were rented, you could argue their loss of rents claim.
While it's true that if your auto policy includes comprehensive and collision coverage, you will likely have coverage for any damage you cause to a rental vehicle - subject to your deductible of course. What most people don't realize is that their auto policy does not provide coverage in the following situations:
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Loss Valuation. The rental agreement holds you responsible for any diminution of value (if the market value of the vehicle is less because it has been in an accident), and
- Loss Payment. The rental company could potentially max out your credit card to cover the loss if you've had an accident with their vehicle. (This could cause you to cut your vacation short!)
For many, these are risks that aren't worth taking. If you fall into that category, plan to purchase the Collision (or Loss) Damage Waiver next time you're renting a car.
Photo by LFL16
Posted on Fri, May 07, 2010 @ 10:32 AM
The licensed advisors here at H&H just reviewed the latest figures from the US Equal Employment Opportunity Commission (EEOC), showing workplace discrimination complaints in the nation fell 2.2% in 2009. Of course, that’s good news. But, there's a downside: Employees and job applicants still filed a near-record 93,277 claims, costing employers $376 million.
It prompts us to inquire whether you've checked your “bias-o-meter recently.” That's shorthand for asking if you're doing everything you could and should be to avoid claims of prejudice against your business.
Under current law, it's illegal to discriminate against someone (applicant or employee) because of their race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information.
It's also unlawful to retaliate against a person because he or she complained or filed a charge about discrimination.
These things can be a tough call because even when you try to be unbiased, prejudice can sneak in. Or maybe someone thought you were discriminating when you weren't.
Predictions for 2010 aren’t much better... claims for wrongful termination, race discrimination and sexual harassment are expected to increase. According to a recent survey by Hartford Steam Boiler:
- A mere 1.2% of small businesses have Employment Practices Liability Insurance
- And yet, 67% worry about discrimination or other EPLI related lawsuits
- 60% underestimate the cost of a claim
- Record claims have been filed with the Equal Employment Opportunity Council in the last two years, and
- 2010 is predicted to be a record year for EPLI claims because of higher unemployment rates, lay-offs and a “trend toward employee-friendly” laws
Of course, seeking EEOC guidance can help you reduce the possibility of an employment related lawsuit but eliminating this risk of loss entirely is unlikely. For this reason, among many others, we’ve been seeing the number of businesses purchasing Employment Practices Liability Insurance increasing significantly over the past two years.
In these times of employment hardship it's more important than ever to demonstrate a non-discriminatory approach in the workplace. Keep in mind, we’re here to help if you feel your business may be in need of EPLI coverage.
Photo by nDevilTV