Health Insurance Coverage for Retirees Missouri MO

Reader’s Question:

Hi I’m Ben, 58 years old, from Missouri. I’m about to retire very soon. The thing is I have to get myself another health insurance policy. I understand that it would mean higher premiums, but I don’t want to pay too much needlessly. Would you please give me some tips as to how to go about this?

Ben

St. Louis, MO

There are a lot of people with the same problem as you. Even though you are in perfect shape, your age is one big reason for health insurance companies to charge you with higher premiums. I believe it can go three times as high as what you used to pay when you were employed.

One way to prepare for this is to talk to your employer there in Missouri in advance and ask for an HRA or Health Reimbursement Arrangement. It isn’t in place yet, but it will be in 2010. Through this, you may utilize your unused sick leaves to pay for certain medical and dental expenses, including health care insurance premiums. Look for co-workers who have the same concern. Together, you have a better chance at negotiating this with your employer.

You may also try to enroll at health insurance pools, which are run by state departments. You may find one in Missouri, which the Missouri Department of Insurance supervises. This was created precisely for people who can’t get themselves approved for health insurance coverage. You would, however, need to present proof of this, such as a written letter from an insurer that you would have been rejected or uprated had you applied. This could end up being cheaper. Good luck, Ben.

Tags: health insurance, insurance advice

Equity-Indexed Universal Life Insurance Missouri MO

Reader’s Question:

I am a stock market investor here in Missouri and recently heard about equity-indexed life insurance. Is this a type of insurance that will cover my losses from stock market investments?

Liam

St. Louis, MO

There really has been a lot of confusion with this so-called equity-indexed universal life insurance. I even received an e-mail before which asked if equity-indexed insurance covers only death caused by the downturn of the markets. No, equity-indexed universal life insurance does not work that way. It is hinged more on life insurance than the Dow or the S&P or the Russell 2000.

Equity-indexed insurance is a fixed universal life insurance policy that was designed to offer higher returns compared to interest-sensitive universal life policies. For equity-indexed universal life insurance policies, you just have to look at the stock indices for a benchmark on how large your cash value will grow.

As an illustration, let’s say that the S&P 500 closed at 900 and also, you bought an equity-indexed universal life policy today. Your insurance provider will record the closing value of the S&P 500 at 900. Fast forward to a year later, the insurance company will write down the closing value of the said index.

Now, let’s assume furthermore that the market did better the year after you bought the insurance policy, and it closed at 1,000. Your life insurer will then credit an 11% gain on your policy’s cash value. Good for you. Yay!

On the other hand, let’s say that the opposite happened, and the S&P finished down at the 800 level. This means an 11% movement downward. So, will 11% of your cash value be deducted? No, Liam. Your gains will be indicated as zero, as the risks will be shouldered by the life insurance company.

But this is should not be viewed as a moneymaking situation, as you only have a cap of 12% gain. So, gains above 12 % won’t be credited to you.

Liam, I hope this is clearer to you now. For more information, please contact your life insurance agent in Missouri.

Tags: life insurance, life insurance policy

Elderly Life Insurance Tips Missouri MO

Reader’s Question:

Our family is working to re-evaluate my elderly parent’s life insurance expenses in Missouri, do you have any helpful tips?

Lars

Independence, MO

There are many ways to approach what you are trying to accomplish for your elderly parents there in Missouri, however, the first advise you would want to get is to determine if their life insurance policy is still practical and cost-effective. Here are a few things to keep in mind to determine the best way to help your parents with their life insurance costs.

” Practicality – can they still afford the premiums they are paying? If they are forced to pay a thousand dollars a month just to maintain a policy that has been there since the 1950’s, it may be time to look for better rates. Competition between life insurance providers has become stiffer and they may find someone who is willing to provide the same level of benefits for much lower rates. This would be a good time to shop around the Web and get quotes Online.

” Know when to sell – if your parents are sufficiently aged, it may actually be a good idea to surrender the policy and get the total cash value amount they have invested. This is especially true for those that have whole life and universal life insurance since the said policies may have incurred substantial amounts of interest, enough to carry them further on without having to pay so much on premiums.

These are just general tips and it would be good if you can consult a financial professional or an independent life insurance broker to guide you further.

 

Tags: elderly life insurance, high-risk life insurance, life insurance for seniors, life insurance advise