Assure Your Property Insurance Claims Accuracy
Here on the east coast summer is in full swing, and with summer comes the hurricane season. One of the
lessons learned from past storms is the need to be able to verify belongings for insurance claims.
Thankfully, the Internet and digital technology can make this job easier. If you have a digital camera and an
email account you can take pictures of your home and its contents and store the images online. This protects
your documentation in the event your computer is lost to storm damage. Simply take multiple photos of the
exterior and interior of your property to create a digital record of your possessions in case you need to file a
claim. Then attach the pictures to an email you send to yourself. If your email provider doesn't allow enough
storage space for this you can sign up for a free email account with Google or Yahoo and send the pictures
there. Now anywhere you can access the Internet you can access the photos to help with any insurance claim
needs.
Health Savings Accounts - New and Improved!
In the waning days of the republican controlled congress an update to the rules governing Health Savings
Accounts passed with little fanfare, but the new legislation can make a big difference in the usefulness of HSAs.
As of January 1, annual HSA contributions of $2,850 for individuals and $5,650 for families are allowed
regardless of health insurance policy deductibles (you still must use a high deductible plan), and you now have
the ability to transfer assets from an IRA into a HSA.
Why is this such a big deal?
If you are a healthy high wage earner or young self employed individual you could find the savings of a high
deductible health insurance policy coupled with tax deductible contributions to a HSA very attractive.
Look at the HSA as another IRA. You can reduce current taxes by making contributions to your HSA and when
you do have a need to spend the accumulated balance on health care needs you can withdraw it tax free! This
makes it like a blend between a regular IRA and a Roth IRA. Current deductions - future tax free withdrawals.
If you retire early, whether by choice or by corporate downsizing, health insurance expenses can be substantial.
Often times it is the overlooked expense that throws a wrench in retirement plans.
The new option of transferring money from your IRA into your HSA can ease the burden of insuring yourself and
your spouse in the gap between retirement and your eligibility for Medicare. You can lower the expense of
health insurance by using a high deductible plan, and by transferring funds from your IRA to a HSA you convert
taxable withdrawals into tax free withdrawals.
Health Savings Plans are not yet widespread but this legislation could help change that.
Life Insurance Needs
Most folks own some life insurance, few have any idea if it is too little, too much, or just right. Many are confused
by all the flavors - term, whole life, universal, variable universal. There is no quick and easy way to determine
your flavor, too much depends on your personal goals and family situation. Term is great for pure protection,
but totally useless for estate or charitable planning. Whole life is easy to understand, but sometimes universal
or variable universal would be a better choice.
If you have real concerns about your insurance needs it is important to review your current policies with an
advisor that has no conflict of interest. That means don't ask your agent, his interest is in selling life insurance.
Insurance needs analysis is a key component of your financial plan. A fee only advisor who receives no
commission or other benefit from your insurance purchase is ideally suited to help you with this problem.
If you want to get started on your own or if you are just curious you can find a pretty good online insurance
needs calculator at the Life and Health Insurance Foundation for Education.
Shorter Long Term Healthcare Insurance?
A report from the American Association for Long-Term Care Insurance suggests that for the majority of policy
owners, three years of coverage is sufficient. With high cost of coverage the primary reason for not having
coverage this study suggests that some coverage is better than none, and for most is all that is needed.
There are a couple of caveats you should consider. The study only includes individuals who actually purchased
LTC insurance. For those with no coverage what would be the length of coverage they should have purchased?
Secondly, is the population that can afford LTC coverage healthier than the group that could not or did not
purchase coverage thereby making their need for long-term care less than the total population?
My feeling is if you need LTC coverage (cannot afford to self insure) you should buy the most protection you
can afford. Leaves you with one less thing to worry about, so you can get on with enjoying your life.
Stopping Credit Card Offers
If you are like me you mailbox must contain at least five pounds of mail from credit card offers every week. Gee,
I don't know how they know I'm so broke! They come to me, to my wife, to my college age kids. Everyone it
seems but the family dog.
If you want to stop the harassment (or stop the temptation) and save a few thousand trees you can call
888-567-8688 or visit www.optoutprescreen.com. The Direct Marketing Association created these avenues to
allow consumers to request removal from marketing lists that use information provided by credit reporting
agencies.
You student may still be tempted by easy credit offers. My 19 year old told me he filled out an application at
school because he got a free meal at some fast food outlet, but at least its a start. It is also a chance to have a
conversation with you young adult about the pitfalls and dangers of credit card usage.
Here on the east coast summer is in full swing, and with summer comes the hurricane season. One of the
lessons learned from past storms is the need to be able to verify belongings for insurance claims.
Thankfully, the Internet and digital technology can make this job easier. If you have a digital camera and an
email account you can take pictures of your home and its contents and store the images online. This protects
your documentation in the event your computer is lost to storm damage. Simply take multiple photos of the
exterior and interior of your property to create a digital record of your possessions in case you need to file a
claim. Then attach the pictures to an email you send to yourself. If your email provider doesn't allow enough
storage space for this you can sign up for a free email account with Google or Yahoo and send the pictures
there. Now anywhere you can access the Internet you can access the photos to help with any insurance claim
needs.
Health Savings Accounts - New and Improved!
In the waning days of the republican controlled congress an update to the rules governing Health Savings
Accounts passed with little fanfare, but the new legislation can make a big difference in the usefulness of HSAs.
As of January 1, annual HSA contributions of $2,850 for individuals and $5,650 for families are allowed
regardless of health insurance policy deductibles (you still must use a high deductible plan), and you now have
the ability to transfer assets from an IRA into a HSA.
Why is this such a big deal?
If you are a healthy high wage earner or young self employed individual you could find the savings of a high
deductible health insurance policy coupled with tax deductible contributions to a HSA very attractive.
Look at the HSA as another IRA. You can reduce current taxes by making contributions to your HSA and when
you do have a need to spend the accumulated balance on health care needs you can withdraw it tax free! This
makes it like a blend between a regular IRA and a Roth IRA. Current deductions - future tax free withdrawals.
If you retire early, whether by choice or by corporate downsizing, health insurance expenses can be substantial.
Often times it is the overlooked expense that throws a wrench in retirement plans.
The new option of transferring money from your IRA into your HSA can ease the burden of insuring yourself and
your spouse in the gap between retirement and your eligibility for Medicare. You can lower the expense of
health insurance by using a high deductible plan, and by transferring funds from your IRA to a HSA you convert
taxable withdrawals into tax free withdrawals.
Health Savings Plans are not yet widespread but this legislation could help change that.
Life Insurance Needs
Most folks own some life insurance, few have any idea if it is too little, too much, or just right. Many are confused
by all the flavors - term, whole life, universal, variable universal. There is no quick and easy way to determine
your flavor, too much depends on your personal goals and family situation. Term is great for pure protection,
but totally useless for estate or charitable planning. Whole life is easy to understand, but sometimes universal
or variable universal would be a better choice.
If you have real concerns about your insurance needs it is important to review your current policies with an
advisor that has no conflict of interest. That means don't ask your agent, his interest is in selling life insurance.
Insurance needs analysis is a key component of your financial plan. A fee only advisor who receives no
commission or other benefit from your insurance purchase is ideally suited to help you with this problem.
If you want to get started on your own or if you are just curious you can find a pretty good online insurance
needs calculator at the Life and Health Insurance Foundation for Education.
Shorter Long Term Healthcare Insurance?
A report from the American Association for Long-Term Care Insurance suggests that for the majority of policy
owners, three years of coverage is sufficient. With high cost of coverage the primary reason for not having
coverage this study suggests that some coverage is better than none, and for most is all that is needed.
There are a couple of caveats you should consider. The study only includes individuals who actually purchased
LTC insurance. For those with no coverage what would be the length of coverage they should have purchased?
Secondly, is the population that can afford LTC coverage healthier than the group that could not or did not
purchase coverage thereby making their need for long-term care less than the total population?
My feeling is if you need LTC coverage (cannot afford to self insure) you should buy the most protection you
can afford. Leaves you with one less thing to worry about, so you can get on with enjoying your life.
Stopping Credit Card Offers
If you are like me you mailbox must contain at least five pounds of mail from credit card offers every week. Gee,
I don't know how they know I'm so broke! They come to me, to my wife, to my college age kids. Everyone it
seems but the family dog.
If you want to stop the harassment (or stop the temptation) and save a few thousand trees you can call
888-567-8688 or visit www.optoutprescreen.com. The Direct Marketing Association created these avenues to
allow consumers to request removal from marketing lists that use information provided by credit reporting
agencies.
You student may still be tempted by easy credit offers. My 19 year old told me he filled out an application at
school because he got a free meal at some fast food outlet, but at least its a start. It is also a chance to have a
conversation with you young adult about the pitfalls and dangers of credit card usage.
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