According to a recent poll conducted by Thrivent Financial for Lutherans, retired American females are more frugal than their male counterparts.
The poll found that retired females are more likely than their male counterparts to take practical steps to save money compared to their pre-retirement lifestyles:
Forty-four percent of retired females said they are giving fewer or smaller gifts to family members in retirement compared to 29 percent of males.
Forty-two percent of retired females said they are shopping more with coupons or at sales in retirement compared to 28 percent of retired males.
Thirty-five percent of retired females said they are eating out less often or at less expensive restaurants in retirement compared to 29 percent of retired males.
Twenty percent of retired females said they are living in a smaller house in retirement compared to 16 percent of retired males.
This podcast is brought to you by AccuQuote, a leading provider of term life insurance quotes.In part two of this two-part series, AccuQuote will continue to discuss the various types of wills and living trusts and their uses with Chas Rampenthal, General Council for LegalZoom.
Many baby boomers incorrectly believe they have disability income protection, according to a new survey conducted by Harris Interactive(R) on behalf of America's Health Insurance Plans (AHIP). Most say that disability insurance is important to protect their income, but nearly half say they do not have any disability income protection.
The survey assessed baby boomers' perceptions about the need for disability income protection. Most baby boomers (56 percent) say that disability income insurance is important to protect their income should the primary wage earner in their household become disabled and unable to work for an extended period of time. Only nineteen percent said that disability insurance was not at all important.
However, nearly half of baby boomers acknowledge they do not have any form of disability income protection. According to the survey, only 52 percent of baby boomers say they have either short-term or long-term disability insurance.
Baby boomers were also asked what their primary source of financial assistance would be if they became disabled and were unable to work. A quarter (25 percent) said they would rely on their personal savings. Others said they would rely on Social Security Disability Insurance (15 percent), private disability insurance (13 percent), or Workers' Compensation (13 percent). Previous surveys have found that baby boomers overestimate the coverage available through public disability programs and most are not financially prepared to weather even a short term disability.
Here are the FACTS about Disabilities (they might SHOCK you!)
·Odds of a disability are nearly 3 times greater than death between the ages of 25-65
·At age 37, the odds of becoming disabled are 3-1/2 times higher than that of death
·1 in 3 Americans age 35 to 65 will suffer a disability lasting at least 90 days
·48% of all home mortgage foreclosures are due to a disability – only 3% are due to a death of the breadwinner
·1 in 4 families that filed for bankruptcy protection identified an illness or injury in their family as the major reason for the bankruptcy
Despite all this, amazingly, 82 percent of Americans have little or no disability coverage.
The TRUTH About Workers Comp and Social Security Disability:
·Almost half of Social Security Disability Insurance claims filed from 1992 through 2001 were denied
·The average monthly Social Security Disability benefit received in 2003 was only $862
Nearly 60% of injuries happen off the job, which means they are not covered by Workers' Compensation
The popularity of life insurance for estate planning purposes is increasing among 's senior citizens. Here are some ways it can be used in estate planning according to an article by InsuranceNewsNet.com.
Life insurance can help reduce the impact of the huge estate tax your estate may incur.For instance, if a 70-year old man's heirs are facing a $2 million estate tax bill for his property, he can take out a policy with a $2 million death benefit. Assuming the insured is in good health, such a policy would cost about $54,000 annually. If he lives for 15 years, his total premium paid amounts to $810,000. In exchange, the heirs get the full $2 million death benefit to cover the estate tax.
·You can utilize life insurance to efficiently transfer wealth to heirs or charitable institutions by creating an irrevocable life insurance trust or a wealth replacement trust.
·Life insurance policies can be useful if you do not want to purchase private, stand-alone long-term care insurance because it is too expensive – especially if it comes with optional death benefits. Under this set-up you would pay for the cost of his or her long-term care. A life insurance trust guarantees proceeds of large amounts to pass tax free to beneficiaries even if you spend down your assets to pay for skilled services.
·Life insurance can provide for your children from previous marriages. In this approach you would name your children from a former spouse as the life insurance beneficiary while your current family would get your other assets.
This podcast is brought to you by AccuQuote, a leading provider of term life insurance quotes.In part one of a two-part series, AccuQuote will talk aboutthe various types of wills and living trusts and discuss their uses with Chas Rampenthal, General Council for LegalZoom.
According to a study by Metlife, when asked to list their assets, many people do not include their ability to earn an income.
Only 58% of full-time employees say they have disability income insurance protection. Nearly half of those, 41%, admit they don't know how much protection they have.
The majority of working Americans (59%) have taken no steps to determine their households' needs with regard to disability coverage.
For single people -- who likely have only their own income to rely on -- and young families -- the majority of whom (59%) admit to living paycheck to paycheck -- the loss of steady income can be especially devastating.
It's something we all take for granted. The ability to work. Just think about it. What would you do if you weren't able to earn money for ninety days, a year or even longer? How would you pay for your martgage, food, cars and other bills? How long could you adn your family survive?
In the event that an individual becomes unable to work because of sickness or injury, disability income insurance can replace a portion of lost income, helping to ensure that day-to-day living expenses are covered and that long-term financial goals can be addressed.
This is a reprint of an article from the San Diego Business Journal. Thought some of you that have been following this topic on my blog would be interested in it. Here it is in its entirety....
This is an age-old question. A lot of experts give a rule of thumb of 7-10 times your income.However, you really need to take into account a lot more than that. First, what are your current and future financial obligations? Do you have school-age children, a mortgage, a business, parents that are getting older?There are many good life insurance needs calculators out there that can help you get a better ball park figure.These calculators walk you through various questions you should consider before determining how much term life insurance you need. However, the best way to figure out how much you need is by talking with a life insurance agent. He/she will be able to ask the right questions you need to think about before making a purchase.
Many people are turning to the internet to find auto insurance, life insurance and even health insurance.When it comes to life insurance, there are several "quote services" on the Internet.What people don't realize is that my competitors and I sell the exact same products for the exact same price because life insurance is regulated by the government.So, what does that mean for you?
When shopping around using the internet to do price comparisons keep a few things in mind:
oMost of these services merely list the plans in order of their premium, or cost. Obviously, the least expensive plans appear at the top.
oUnfortunately depending on your health, family history and even driving record to name a few, you may not qualify for the least expensive rate only to find out months later after you've applied for it.
So, what can you do to make sure you find the best life insurance rate?Talk to an insurance agent that deals with multiple carriers to help you figure out the actual availability of the products for YOU, taking into consideration your complete health and lifestyle profile. Once you have all the facts, it will be easier to make an informed decision.
This is a repost from last year. I'm going to start to revisit some of the older topics that I wrote about.There is definitely some good information and topics that need to continually be revisited over time.So, here's one about long-term care insurance.
Long-term care is when a person requires someone else to help him with his physical or emotional needs over an extended period of time. This help may be required for many of the activities or needs that healthy, active people take for granted and may include such things as walking, bathing, dressing, etc.
The need for long-term care help might be due to a terminal condition, disability, illness or injury. The need for long-term care may only last for a few weeks or months or it may go on for years. It all depends on the underlying reasons for needing care. Long-term care services may be provided in a number of ways, including but not limited to: in the home, at assisted living or in a nursing home.
Experts say that at least 60% of all individuals will need extended help in one or more of the areas above during their lifetime.
There are two types of long-term care:
Temporary long term care is when the need for care for is only weeks or months. This could be because of rehabilitation from a hospital stay.
Ongoing long term care is when the need for care is for many months or years. For example, chronic medical conditions, dementia, etc.
Having a well-prepared financial plan can help you enjoy a comfortable lifestyle in your later years.
If you or a loved one experiences a medical crisis in the future, you may be covered under health insurance and government programs like Medicare. However, health insurance and Medicare do not adequately cover long term care costs. There are a number of great long term care plans available. Check with your insurance agent and make sure to shop around to find the best one for you.
Yesterday we listed the first 5 of our 10 tips on buying funeral insurance, also known as burial insurance or coverage, covering tips on the application process including choosing an insurer and ensuring that your policy in written form adheres to your impression of what you have purchased. Here are the final 5:
After you receive your policy and policy summary, you have a 30 days called a "cooling-off" period in which to cancel your policy if you change your mind or determine that it isn't what you thought it would be.
Should you decide to change your beneficiaries, make sure you make sure that your policy is always up to date and names those who will best carry out your wishes after your death.
Pay your premiums on time and keep your proof of payment to ensure that your policy isn't cancelled or your claims go unpaid due to lack of payment. You will likely have a grace period of 15 days after a payment is due, but if you set up an automatic payment with your bank or a credit card, you will have one less thing to worry about.
If you make any changes to your policy, such as upgrading it or changing the beneficiary, make sure that you keep proof of all your contact with salespeople and the changes you made.
Despite the difficult emotions that accompany death, your beneficiary should file the claim as soon as possible as your policy may have a cut-off period, after which all claims will be denied. Should their claim be denied, there should be written notification.
If you're considering the purchase of a funeral policy, then there are a few things you should know before you get started. Today and tomorrow we'll cover 10 tips that you should keep in mind as you go about shopping for and choosing your funeral policy.
Do your research. As outlined in the posts of the last two days, this isn't a policy that you want to jump into without a little forethought.
Before you settle on an insurer, make sure that you know exactly which company your insurer is as many policies are sold through third-party administrators.
If there is an application to fill out either online or on paper, do it yourself to make sure that it is correct. Read all the details to make sure that you're actually getting what you think you're paying for and that there are no surprises.
Be honest on your application and make sure that you disclose everything about your medical health and records. Should an omission be discovered at a later date, your policy can be cancelled. If the mistake is not found until after your death, the insurer will refuse to honor the claim.
When the application process is complete, be on the lookout for a copy of the policy and a policy summary. Check and double check it to make sure that you understand it and that it is complete.
Many people think they understand how health care expenses will impact them but often grossly underestimate their future health care costs. Many also believe they will be able to rely on coverage from Medicare and their employers during their golden years. However, this may not be the case, as the number of businesses offering retiree health benefits is steadily declining and the financial pressure on Medicare seems to be increasing.
Recent statistics show that almost half of American workers report total savings and investments (not including their primary residences or any defined benefit plans) of less than $25,000, even though it's estimated that retirees will need approximately $225,000 to pay for health care alone. Consumers need to learn to more accurately estimate their medical expenses in retirement and to understand how to pay for them to protect their assets.
Choosing and purchasing a burial insurance plan is not unlike the process of purchasing any insurance coverage: it takes research. You will need to know what is available in the funeral insurance market as well as what is already covered by your existing insurance policies and what is left over that you'll need to purchase insurance for. You don't want to waste money and buy too much insurance if you have other policies that will cover the cost of some of your death expenses, but you don't want to purchase too little, either, and leave your loved ones to foot the bill.
Buying Enough Funeral Cost Coverage
It's also a matter of doing a little math. Today, a funeral and burial costs about $10,000. However, in another decade or two, it will be more expensive. Though it may seem morbid, "guess-timating" the potential costs of your funeral and burial in the future will help you more accurately purchase the insurance you need.
The Actual Purchase of Burial Insurance
Qualifying for funeral coverage will depend upon your age, health and whether or not you have been denied insurance coverage in the past six months. If you are young with no medical problems, you'll likely need only to send in your application or apply online. However, if you have been diagnosed with a serious illness, have recently been hospitalized or been denied insurance recently, then you most likely will not qualify for coverage.
Pre-Need Insurance
Should you run into problems purchasing your funeral coverage, you have the option of "pre-need" insurance. This an alternative burial plan that allows you to prepay for your funeral and burial needs at today's prices. It also gives you control over the entire process from the music to the flowers to the clothes you'll be buried in. Less cost effective than burial insurance, it still serves the purpose of providing your loved ones with financial relief and has the added benefit of allowing you to participate in your final remembrances.
Yesterday I talked about the finer points of funeral and burial insurance coverage, but before we jump into the intricacies of how to go about buying your plan throughout the rest of this week, let's talk about one important thing: do you even need a burial plan?
If you have other insurance policies, you may not even need to buy this specialty insurance. Check your files. Do you have coverage through work? What does it include? Often comprehensive plans offer some coverage for the cost of burial, if not the funeral. If you are not covered through work, find out if your employer offers such a plan if you are eligible. It may be more cost effective to purchase even partial burial and funeral coverage through an employer even if you opt to purchase additional coverage through an independent provider. If you or an immediate family member have ever served in the United States Military, then you may find that funeral expenses, a cemetery plot and certain other miscellaneous expenses are included in your veteran's benefits.
Even if you already have funeral and burial insurance coverage, it might be time for an upgrade. Your benefits may not cover the ever-rising costs of a funeral and burial in today's market. Insufficient insurance won't be much help to your family, so you might like to modify your policy or purchase a supplementary one.
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