YOUR PROTECTION FROM THE RAIN
"Always save for a rainy day" is what I was taught. Is today your rainy day? Let us show you how to weather the strom! This article will show how to be prepared in your finances, having a living will, a healthcare power of attorney, life insurance, renter's insurance, homewoners insurance, the proper auto insurance, health insurance, legal protection, disability insurance a disaster plan, and a plan of action.
Discover what Prestige Professional Management can do for you.
LIVING WILL-A living will is a legal document that a person uses to make known his or her wishes regarding life prolonging medical treatments. It can also be referred to as an advance directive, health care directive, or a physician's directive. A living will should not be confused with a living trust, which is a mechanism for holding and distributing a person's assets to avoid probate. It is important to have a living will as it informs your health care providers and your family about your desires for medical treatment in the event you are not able to speak for yourself.
The requirements for a living will vary by state so you may want to have a lawyer prepare your living will. Many lawyers who practice in the area of estate planning include a living will and a health care power of attorney in their package of estate planning documents. If you need to write or update a will or trust, you can take care of your living will at the same time.
Generally, a living will describes certain life prolonging treatments. You, the declarant, indicate which treatments you do or do not want applied to you in the event you either suffer from a terminal illness or are in a permanent vegetative state. A living will does not become effective unless you are incapacitated; until then you'll be able to say what treatments you do or don't want. They usually require a certification by your doctor and another doctor that you are either suffering from a terminal illness or permanently unconscious before they become effective as well. This means that if you suffer a heart attack, for example, but otherwise do not have any terminal illness and are not permanently unconscious, a living will does not have any effect. You would still be resuscitated, even if you had a living will indicating that you don't want life prolonging procedures. A living will is only used when your ultimate recovery is hopeless.
For situations where you are incapacitated and therefore not able to speak for yourself, but your health is not so dire that your living will becomes effective, you should have a health care power of attorney or health care proxy. A health care power of attorney is a legal document that gives someone else the authority to make health care decisions for you in the event you are incapacitated. The person you designate to make health care decisions on your behalf is supposed to consider what you would want, so be sure to talk with them about it. It may be a difficult conversation, but you're asking someone to take on a great burden for you - letting him or her know what you want lessens that burden.
None of these documents will do you any good if no one knows about them. You have to talk with your doctor and the person you designate as your health care proxy. Discuss with your doctor what kinds of end of life medical treatments you want. He or she can help you by answering any questions you have about certain treatments. Once you've decided what it is you do or don't want, make your wishes known to your doctor and your family.
HEALTH CARE POWER OF ATTORNEY- durable power of attorney for healthcare -- A document in which you name someone who has the authority to make medical decisions for you if you are unable to make those decisions yourself.
LIFE INSURANCE- The Truth About Life Insurance
Myth: Cash value life insurance, like whole life, will help me retire wealthy.
Truth: Cash value life insurance is one of the worst financial products available.
Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is an insurance product that packages insurance and savings together. Do not invest money in life insurance; the returns are HORRIBLE. Your insurance person will show you wonderful projections, but none of these policies perform as projected. Example of Cash Value
If a 30-year-old man has $100 per month to spend on life insurance and shops the top 5 cash value companies, he will find he can purchase an average of $125,000 in insurance for his family. The pitch is to get a policy that will build up savings for retirement, which is what a cash value policy does. However, if this same guy purchases 20-year-level term insurance with coverage of $125,000, the cost will be only $7 per month, not $100.
WOW! If he goes with the cash value option, the other $93 per month should be in savings, right? Well, not really; you see, there are expenses.
Expenses? How much?
All of the $93 per month disappears in commissions and expenses for the first 3 years. After that, the return will average 2.6% per year for whole life, 4.2% for universal life, and 7.4% for the new-and-improved variable life policy that includes mutual funds, according to Consumer Federation of America, Kiplinger's Personal Finance, and Fortune magazines. The same mutual funds outside of the policy average 12%.
The Hidden Catch
Worse yet, with whole life and universal life, the savings you finally build up after being ripped off for years don't go to your family upon your death. The only benefit paid to your family is the face value of the policy, the $125,000 in our example.
The truth is that you would be better off to get the $7 term policy and and put the extra $93 in a cookie jar! At least after 3 years you would have $3,000, and when you died your family would get your savings.
A Better Plan
If you follow my Total Money Makeover plan, you will begin investing well. Then, when you are 57 years old and the kids are grown and gone, the house is paid for, and you have $700,000 in mutual funds, you'll become self-insured. That means when your 20-year term is up, you shouldn't need life insurance at all - because with no kids to feed, no house payment, and $700,000, your spouse will just have to suffer through if you die without insurance.
Don't do cash value insurance! Buy term and invest the difference!
RENTERS INSURANCE- If you're a renter, you can benefit from purchasing a renter's insurance policy.
Many renters mistakenly believe they don't need insurance because their landlord's policy will cover any loss they suffer. But your landlord's policy won't cover you for damage to your furniture, electronics, and other items you keep in your apartment. It also won't protect you against liability if someone gets injured.
Renter's insurance does all this and more -- and for a price that's probably much more affordable than you think. Get the facts about renter's insurance.
HOMEOWNERS INSURANCE- Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
PROPER AUTO INSURANCE- Low Cost Auto Insurance or Proper Liability Coverage?
Don't sacrifice having the proper liability coverage to get low cost auto insurance. Find out what liability coverages are available in an auto insurance policy. This way when you get your next free insurance quote you are well informed.
The amount of insurance you will need will always be determined to late, once you have an accident. To try to understand how to protect yourself, you first need to know what your liability insurance will cover. It is always broken up in two parts bodily injury and property damage liability.
Bodily Injury liability includes the injury that are suffered due to on automobile accidents.
1. Initial aid
2. Doctor bills due to the accident
3. Money for lost wages
4. Funeral expenses
5. Lawyer Fees
Property damage liability makes the damage that is cause due to an automobile accident.
1. Structural damage to homes, storefronts, etc.
2. Money to fix or replace other non-moving objects
3. Automobile damage or total loss compensation
So now the question is what limits of coverage do I need? Each state has there own minimum guidelines. Usually around $15,000/$30,000 $15,000 but that will vary by state. When you look at the coverage's I just wrote down you might be thinking there are three numbers there not two I don't understand. Bodily injury liability coverage comes in two forms either split limit coverage which is shown above or single limit coverage.
Split Limit coverage: Limits are split into two for bodily injury coverage and then there is a separate coverage for property damage. If you take the example from above $15,000/$30,000 coverage, the $15,000 represents the total amount of bodily injury coverage that will be paid out to any one person during an accident. The $30,000 represents the total amount of bodily injury coverage that will be paid out for the entire accident. If you had a single limit of coverage it would include a maximum to be paid out but no individual maximum and it could be divided however needed.
Property Damage coverage is always the last number which is represented by $15,000 in the example above.
What is right amount of liability coverage? The most common amount of coverage is a split limit of $100,000/$300,000 bodily injury with a property damage coverage equal to $50,000. People that take out lower limit are really exposing themselves to financial disaster if they can't afford to pay the difference when an accident occurs. For example, say you have $15,000/$30,000 bodily injury coverage and $15,000 property damage coverage. You get into an accident that is your fault with two vehicles a five year Honda Accord and two year old Chrysler 300. There are three people in the Honda and one person in the Chrysler. All have minor injury but are brought to the hospital and the person driving the Chrysler stays overnight for observation. Their bills will run over your $30,000 maximum for Bodily injury and the person driving the Chrysler will have individual hospital cost of more than $15,000. What does that mean? Once your coverage is used up you will be responsible for the rest. With hospital cost as expensive as they are that could mean a very costly bill to you. This doesn't even take into account the amount of property damage that needs to be paid out. Since you hit two cars the damage for both comes out at $19,000. That is another $4,000 out of your pocket. The worst part of the whole thing was you thought you had full coverage and that it didn't matter what happened. Full coverage only means that you have liability coverage, comprehensive and collision coverage but your limits on liability are the most important. Make sure they are set properly.
100,000/300,000/50,000 is the most common amount of liability coverage within today. The cost to the consumer to go from state minimums to 100,000/300,000/50,000 of even more coverage isn't that much more expensive. It just makes sense to me to pay a little more now for more coverage. Rather then thousands more later. I was found at fault in an accident and caused, because I didn't have coverage to pay for all the expenses I caused to to the accident.
HEALTH INSURANCE- CPS Health Insurance Definition
The Census Bureau broadly classifies health insurance coverage as either Private (non-government) coverage or Government-sponsored coverage.
Private Health Insurance
Private health insurance is coverage by a health plan provided through an employer or union or purchased by an individual from a private health insurance company.
Employment-based health insurance is coverage offered through one’s own employment or a relative’s. It may be offered by an employer or by a union.
Own Employment-based plans
Own employment-based health insurance is coverage offered through one’s own employment and only the policyholder is covered by the plan.
Direct-purchase health insurance is coverage though a plan purchased by an individual from a private company.
Government Health Insurance
Government health insurance includes plans funded by governments as the federal, state, or local level. The major categories of government health insurance are medicare, medicaid, the State Children’s Health Insurance Program (SCHIP), military health care, state plans, and the Indian Health Service.
Medicare is the Federal program which helps pay health care costs for people 65 and older and for certain people under 65 with long-term disabilities.
Medicaid is a program administered at the state level, which provides medical assistance to the needy. Families with dependent children, the aged, blind, and disabled who are in financial need are eligible for Medicaid. It may be known by different names in different states.
SCHIP, the State Children’s Health Insurance Program, is a program administered at the state level, providing health care to low-income children whose parents do not qualify for Medicaid. SCHIP may be known by different names in different states.
Military health care
Military health care includes TRICARE/CHAMPUS (Civilian Health and Medical Program of the Uniformed Services) and CHAMPVA (Civilian Health and Medical Program of the Department of Veterans Affairs), as well as care provided by the Department of Veterans Affairs (VA).
TRICARE or CHAMPUS is a military health care program for active duty and retired members of the uniformed services, their families, and survivors.
CHAMPVA is a medical program through which the Department of Veterans Affairs helps pay the cost of medical services for eligible veterans, veteran's dependents, and survivors of veterans.
The Department of Veterans Affairs provides medical assistance to eligible veterans of the Armed Forces.
Some states have their own health insurance programs for low-income uninsured individuals. These health plans may be known by different names in different states.
Indian Health Service*
Indian Health Service (IHS) is a health care program through which the Department of Health and Human Services provides medical assistance to eligible American Indians at IHS facilities. In addition, the IHS helps pay the cost of selected health care services provided at non-IHS facilities.
*After consulting with health insurance experts, the Census Bureau modified the definition of the population without health insurance in the Supplement to the March 1998 Current Population Survey, which collected data about coverage in 1997. Previously, people with no coverage other than access to the Indian Health Service were counted as part of the insured population. Subsequently, the Census Bureau has counted these people as uninsured. The effect of this change on the overall estimates of health insurance coverage was negligible
LEGAL PROTECTION- Have you ever or do you plan to:
• creat or revise a will?
• purchased a home?
• had an income tax question?
• paid a bill you knew was unfair?
• needed advice on property laws?
• had a property in dispute?
• purchased a defective product & been ignored by the manufacturer?
• received a traffic ticket you thought was unjustified?
• been a defendant in a civil lawsuit?
• been involved in a separation or divorce?
• worried about being audited by the IRS?
• wanted advice on a credit matter?
Now is the time to “level the playing field” of justice & benefit your family!
71% of United States households report experiencing an event in a 12 month period that might lead them to hire a lawyer, however many people never end up speaking with a lawyer about their problems because they don't know how to choose a lawyer or they are afraid of what legal consultation might cost. The Primerica Legal Protection Plan lets you talk to a lawyer without worrying about the cost to prevent legal questions from becoming legal problems. For just $25 per month, you can purchase peace of mind for you and your family when you are faced with a critical need for legal consultation.
The info contained in this material is for illustrative purposes only & is not a contract. It is intended to provide a general overview of coverage you have selected. Remember only the plan contract can give actual terms, coverage, amounts, conditions, and exclusions.
DISABILITY INSURANCE- What are the types of disability insurance?
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):
Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Disability policies have two different protection features that are important to understand.
Noncancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
In addition to the traditional disability policies, there are several options you should consider when purchasing a policy:
Additional purchase options
Your insurance company gives you the right to buy additional insurance at a later time.
Coordination of benefits
The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
Cost of living adjustment (COLA)
The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
Residual or partial disability rider
This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
Return of premium
This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
Waiver of premium provision
This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.
PLAN OF ACTION - How to write an action plan
When writing an action plan to achieve a particular goal or outcome, you can get much help from the following steps.
Clarify your goal. Can you get a visual picture of the expected outcome? How can you see if you have reached your destination? What does make your goal measurable? What constraints do you have, like the limits on time, money, or other resources.
Write a list of actions. Write down all actions you may need to take to achieve your goal. At this step focus on generating and writing as many different options and ideas as possible. Take a sheet of paper and write more and more ideas, just as they come to your mind. While you are doing this, try not to judge or analyze.
Analyze, prioritize, and prune. Look at your list of actions. What are the absolutely necessary and effective steps to achieve your goal? Mark them somehow. After that, what action items can be dropped from in the plan without significant consequences for the outcome. Cross them out.
Organize your list into a plan. Decide on the order of your action steps. Start from looking at your marked key actions. For each action, what other steps should be completed before that action? Rearrange your actions and ideas into a sequence of ordered action steps. Finally, look at your plan once again. Are there any ways to simplify it even more?
Monitor the execution of your plan and review the plan regularly. How much have you progressed towards your goal by now? What new information you have got? Use this information to further adjust and optimize your plan.