Why does insurance advice have to be technical and complicated?

Confused yet over your benefit plan choices? Well if you are not, then chances are you haven’t looked long enough. Keep going, and you will be really confused in a short time.

Why do I call this article Benefit Plans Sesame Street Style?

Because we need to get back to basics the more confusing an issue gets. Cut down a few trees to see what we have in front of us. The basic ABC’s and 123′s please!

Okay, here goes the logic behind my approach…..

You call for a benefit plan to ensure you are okay in the event of an illness. Because, after all, who will cover those expensive medical drugs right?

Question: How did you get to a point that you need expensive drugs?

Did you get cancer or have a heart attack or stroke that led to those drug costs?

Yes?

Okay, so were you working before? Are you working now? What if you cannot work?

If you cannot work, would you produce an income to pay the bills? The bills, including any premium for the drug plan you called for! Any bill for that matter?

So, priority number one is covering off the income problem, because without income, forget the drug problem, it pales in comparison.

And, this explains why if you are working for a large company they offer life and disability, medical, and dental, right?

The bottom line is that if you are looking for a benefit plan, you should first be looking to cover off the income need – that is, you need to ensure income or it’s game over. Then, the gravy is how you will look at the drugs and dental expenses.

And, if you are in Ontario, should drugs become a huge issue, there is also the Trillium Drug plan to help.

The United States is looking to move to a system (jury out) that is similar to Canada. Their problems are far greater than ours, as a simple pregnancy can be costly.

Which would be worse: the doc telling you you need a prescription or that you cannot work and earn your paycheque?

We have the luxury of having basic medical care in Ontario, Alberta, and Canada that is far superior to the issues facing Americans, and I hate to say it, we have income problems more than medical plan problems.

It really becomes a question of ensuring your lifestyle is not affected with illness or injury, or other medical issue. After that, it is a need to cover off inevitable expenses as cost-effectively as possible.

And that’s the ABC and 123 of that!

We are here to help – 1.866.856.6799

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It was hard to put this topic out there. What would you think of me?

If someone wrote a book called “Insurance for Dummies”, you’d laugh, and if you wanted to really find out how to look at insurance, you might even buy the book.

Part of my website includes an ability to see what keywords folks use to find the insurance issue they are looking for.

Nobody is a dummy! But, if I were looking for something in your field of study then you might know right off the bat that I didn’t have a good grip on the issues, or what I really should be looking for. Right?

Same for insurance. And, the industry is ripe for agents and companies to separate you from your money with piecemeal products that don’t have a rhyme nor reason to really exist.

These products have really high relative premium to what they might, if ever, actually return.

Shame on the insurance industry!

Are your insurance plans separating you from your money or guaranteeing it? Which is it in your case?

Look at the credit card companies asking you to take out the disability insurance.

You might tell me you have disability coverage, and we look at it, and yep, if you are disabled, the credit card company pays the minimum monthlypayment on your card. Whoopee!! What’s that worth $50 or less? Wow, thanks guys!

And they feed you the “if you don’t have a balance you don’t pay”. Thanks again! Imagine how happy that should make you.

And have you ever oversighted some insurance plan like this and tried to appeal to have the premium returned? Not so easy is it?

Right. The card company will blame the insurer and say they cannot control the insurers policies. Well, who was it that sold me that turkey in the first place?

Live and learn, or do we?

The problem is it is an insignificant issue. The premium though can be significant.

It is not uncommon for families to have a whole bunch of insurance charges for insignificant coverages, and have no basic idea of the important issues like how much will I get in income replacement if I am disabled? How long will it pay? How will it refuse to pay? Will it be enough to keep us in our home?

You know, the big questions.

But, we rarely get that call at 6 PM as we prepare to eat our dinner do we?

No, we get the “Hello, it’s so and so company….thank you for your loyalty…and because you are a good customer, you have an opportunity to take blah, blah, blah for only $8 per month? Would you like some of that?”

Ouch!!!

Would you want your healthcare to be handled that way?

“Hello, this is a medical clinic calling. We would like to offer to remove your appendix because it may need to be one day, so why wait?”

Doesn’t work does it?

Go to the doctor and monitor your health, and if there are issues creeping up work on a plan with your doctor, right?

Well, with insurance, income replacement in the event of death or disability is the goal.  And not $13 minimum card balance payments either – really important income replacement or debt payments like the mortgage and property taxes.

We can do that for you. But we won’t do anything until we look at what it is you might have, and what you need to supplement what’s already in place.

And by the way, you’d be no dummy to want that!

There is ‘No book required! ‘

Do me a favor though…. don’t answer your phone at dinner time again! They probably just want to make a meaningless sale.

We are here it help at 1.866.856.6799, in Ontario and Alberta, Canada.

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Well, all we tend to hear these days is the jeopardy of the pension system.

So, do not be surprised if Ontario Finance Minister Dwight Duncan ignores last year’s proposal from former law dean Harry Arthurs to increase the maximum pension guarantee from $1,000 a month – where it has stood since the early 1980s – to $2,500 a month.

Guarantees are harder to find.....life insurance may be the answer

The government of Canada  and it’s provinces has thrown their hands in the air and pleaded an inability to guarantee Canadians their supposed right to receive their company pensions.

History has shown that when companies fail, or reach a point of restructuring or going out of business, they look to tap into what should be the “untappable”.

Laws tend to not protect the hard workers that have contributed to, and are relying on their company plans.

Now, let’s take this a step further.

The husband and wife living off one pension, and realizing the uncertainty are looking for ways to ensure the survivor and their children are left with a half decent standard of living need to look at what can be guaranteed.

In the old days, countless sales ideas were bantered around to suggest that life insurance can be an estate creation tool, and an estate preservation tool.

It is also a tremendous way of creating a pension, and it is this aspect that should be explored.

When young, and furthest from retirement, the amount of life insurance a couple needs is the greatest.

Often however, the agent looking to sell a policy looks to sell the one with the highest commission, and therefore leans toward the permanent versions at the outset.

This can cause a variety of issues, the greatest being a high premium outlay, and a low insurance amount.

If you are lucky enough to survive to retirement age, and are looking to use your insurance as a pension plan backup for your family, have you got enough coverage to be turned into an income stream?

If you are no longer insurable, you have now created a situation that you cannot change the amount of insurance (money) you will be able to leave your spouse and family. Wouldn’t it have been better to guarantee the higher amount with term insurance?

And, there is another problem you have when working – disability.

If you bought expensive life insurance and did not look at disability issues, then you will be taking additional chances.

You work to provide income, but also only by working do you contribute to your pension.

If the disability plan at work does not include a contribution to the pension when disabled, your pension will be smaller than it should be.

And, what if your income level is literally cut in half? Would your mortgage payment be covered?

Would you become a bank mortgage statistic? Another foreclosure because of poor planning or an insurance agent that did not include disability as part of your insurance planning?

It happens, and it happens more than you might think.

To prove it, ask yourself when your insurance agent last looked at your situation should you become disabled, and did he/she review your long-term disability coverage in your employee booklet?

You can ask us to help you – 1.866.856.6799.

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You stand to inherit an estate from your parents, or you are a parent wondering what the strategy for wealth transfer should be….the bottom line – what statement will you make when you are gone, that cannot be undone, and that “isn’t about the money”?

Power and money. Money used as power. Interchangeable ideas, and in that sense synonymous.

How can you avoid the inheritance fight?

What will be phase one? When the boomers of today’s parents leave an estate. And the reason for the battle:

“We believe that as more and more boomers (many of them spenders who have lots of debt) inherit from their depression-era parents (many of them savers), there will be many more families at war,” Kotzer predicted.

Phase two will occur once you succesfully make it through phase one, and the guilt of your good fortune sets in, as you look toward the legacy you will be leaving your kids.

Your children may not be as fortunate as you will be this time round. You have not been able to amass the wealth your parents did that you stand to gain.

What to do?

How to keep the piggy bank full from generation to generation....life insurance

What can you do to “even the score” and ensure your children inherit the advantage you stand to?

Simple answer that is all too often forgotten – life insurance.

Life insurance - the instant estate.

The least expensive way to ensure the distribution to children is to allocate each as equal beneficiaries so they know the amount they are receiving has been well thought out, with “fairness at the root of the consideration”.

Joint last to die policies fit nicely for this reason. Exisiting term plans can also be converted to permanent versions of insurance to make sure they exist for the ultimate goal of leaving your kids with money.

Should husband and wife have a term plan each, then when an inheritance comes, the best thing to do is pay off existing debt, and replace the money used to pay debt, in part, to changing the insurance program to permanent coverage options.

All too often, people take out smaller face amount permanent coverage when bills are highest, the kids are youngest, and the need for the larger insurance amount is vital to replace the income that would otherwise be lost if we were to die prematurely.

But, at certain junctures in life, such as coming into an inheritance, then your financial circumstances and focus changes, or it should.

There may be many of us looking to the next 20 years or less, and although we should not count on the inheritances we can foresee, at the same time it is impossible to ignore.

There may be circumstances where the parent is facing pressure from the grown children, and there may exist family infighting, and “jockeying for position” in the favor department with elderly parents. Sad, but it happens all too often.

There may be manipulation from either the elderly parent or the children, either way, to exercise and gain control over money. Again sad, but also common.

There truly is only one acceptable way to look at wealth and it’s transfer.

The only way you as a parent will send the proper message to your adult children is to make it clear, through the distribution of your estate, that you love them all equally, and the will and estate should reflect this with full explanation.

Because, here is the crux.

When you are gone, the time for questions is past. The “final statement” you make with the allocation of your assets has been made, and cannot be undone. If there were children that manipulated you to the detriment of siblings, then that can and will create unnecessary hardship and damage the relationships between the surviving family members.

A revised will over the bedside of the sick and elderly is not a reality any of us want to see, but we’d be burying our heads in the sand if we thought it doesn’t happen. Sad, sad, sad.

And for those children looking to ensure equality one generation from now, assess your own situation, and determine if you should be preparing for the present and the future with sizeable amounts of term insurance.

Term life insurance can be converted  without proving health in the future, and is a good guarantee that wealth will be available for transfer.

The bottom line and the best advice that can be given – is keep it fair, and ensure the heirs know it!

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Let me ask you a question or two.

What if you called our office looking for medical and dental benefits for you and your family because you didn’t have any?

And, our office found you a package for say, $150 per month covering medical drugs, semi private hospital, and dental care. Okay.

And you paid your premium for months, but then all of a sudden you got sick.

Still with me? Okay, good….

So now you are sick, and it looks like it is pretty serious, so you get your spouse to talk with the company you work for and they work out how much you will receive income wise when you are off on long term disability.

You have a mortgage and a family, and basically you needed every bit of your income to make it every month.

They give you the news…..your net pay will be about half of what you made net before. Is that okay?

You panic, and then you wonder why you were spending the $150 per month for a “benefit” plan if you could no longer afford to keep it.

You call me up and explain the situation, and I advise you that the plan you were so adamant to buy does not have an income replacement feature, and it therefore cannot make up the 50% loss of wages.

You become even more distraught and you realize that you can no  longer even afford to pay for the insurance you bought in case you got sick (which you now are) because you won’t be receiving enough money. What a nightmare.

What went wrong?

What went wrong is that if I didn’t ask you pertinent questions to first ensure your income would be enough if sick or disabled I would have failed you from the start.

When you called in originally for a benefit plan, “my job” would have been to screen out your current circumstances to see where you would be in the event you ended up where you did – disabled and sick, or injured. The bottom line is that you could no longer work to produce an income to live on.

I wouldn’t have done my job because I know that the likelihood of a disability is far greater than dying before age 65, and without income the bills (including health insurance) will not get paid.

I would not have done my job because the chances are you will earn millions of dollars in your lifetime, and it takes money to live. I would have failed you as your benefit advisor if we didn’t take the time to look at what would happen if you got into the situation you got into – not out of fault – but out of circumstance.

So when you come to me looking to spend $150 per month on a benefit program, please excuse me for caring, and ensuring that we know what will happen if you get to a point where you need some serious drug coverage.

It is not my job for you to appreciate my concern, but it is my duty to try to go over these important areas with you.

And I share that responsibility with my business partner, Nanette Gozutok. She is at extension 204, and I am at extension 201.

Pull up a chair, pour yourself a coffee, and give us a call. We want to hear about your situation, and discuss your needs.

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If you have just left a large company benefit plan, and are looking for replacement dental coverage, what should you consider?

Well, it depends of course on a number of factors:

One thing is for sure, keep going to the dentist to ensure health!

• Are you still working?If you have changed jobs, and are an employee again at another company, will you be eligible for another group plan once you meet the minimum employment time (waiting period)? If this is the case, you might want to see in advance what the terms of coverage are, and what your contribution will be. Under this scenario, you are  not likely allowed  to opt out unless you have a spouse that has coverage elsewhere. If that is the case, a “spousal opt out” is usually allowed to avoid double payments, and double coverage. Having said that, you can claim at one company where the other leaves off, so all these considerations need to be weighed carefully.
• Have you become contracted or self-employed? If this is the case, there are traditional options, and also another option – a health spending (savings) account. The argument for this method is for those that have mainly routine appointments, and paying extra per month to an insurer if you are not likely to reclaim the money does not make sense. The full deposit into these accounts is 100% tax deductible, which has more favourable tax treatment than the medical tax credit.

So, what else can you expect from a personal, or family dental plan, otherwise known as individual dental coverage?

The premium range per person in the current market is approximately $50 to $70 per month. Family discounts can apply, and depending on the company and your situation, you may find better rates.

The biggest question related to your quest to find dental insurance is the question of “why”?

Why are you looking for coverage? Is it because you had a plan and lost it? Or is it because you need dental work right now?

If you have been an employee in the past, and are now on your own as a self-employed worker, the bigger question you must ask yourself is what are the big risk issues?

• Did you have a full benefit plan,that included life, disability, medical and dental?
• Based on that, are you now losing your disability coverage?
• How would an illness truly affect your income and family security?
• Relatively speaking, would an illness affecting income have a bigger financial impact than the odd bit of dental work?
• The question then is, what should be the “benefit dollar priority”?

We fail to see what is not an issue.

We can see dental bills. We cannot, unless ill, see the impact of a disability.

You may know of others that have  been disabled and lost everything. And this would drive the point home.

Now, going to the dentist should be a priority. Did you know that your teeth and gums can affect your heart? Well, periodontal disease leads to heart disease if you get an infection in your gums, that travels in your bloodstream. It can cause major heart issues, even heart attacks.

So, if you are without dental coverage, that is not the end of the world. Not going to the dentist may be.

Some dental offices give special rates to patients that do not have dental coverage. If you are self employed, this may mean a health savings account, coupled with a good discount will ensure you pay the least amount for a given amount of dental work. And isn’t that the goal? Make the cost of going to the dentist as cheap as possible?

We offer dental coverage from many major carriers including Blue Cross, Manulife, and Group Medical Services. The health savings account option for the self-employed is provided by Benecaid.

We can help ensure you are provided with an overview and specific information enough to make an educated decision.

But as a strong proponent of ensuring there is money first, for the next dollar you spend on you new benefit plan, should it be used to ensure your income, or cover a bill?

Without income, we cannot pay the bills, including the insurance bills.

And that’s food for thought.

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Tangible is a tremendously flexible product line.

Personally used most for disability insurance purposes, there are life insurance, and critical illness components as well, in alternative forms. For the purposes of this discussion, we willl concentrate on the disability hybrid product.

The disability hybrid effectively turns the disablility insurance into a long term care plan at retirement. The coverage then can be with you for life, but only payable for 20 years, or age 65, whichever comes later.

One of the big issues today, are seniors looking into long term care coverage to avoid the potential devastation it can create for a couple’s pension plan. If say the husband needs to be put in a nursing home at some point, the government will tap into the pension to cover the costs, leaving the spouse in questionable financial shape.

The ‘anti -erosion’ factor is attractive. What often is not attractive, is trying to buy this coverage at an older age, and when health issues have become an issue. Then, it may be a question of either being unaffordable, or unattainable due to poor health.

With the Blue Cross Tangible disability plan, certain occupations otherwise not looked at favorably by some other insurers, are in fact in great shape with this plan.

The scenario of the 40 something professional or business owner not requiring a guaranteed increase with age fits nicely. And, being able to see old age a little easier, the long term care feature is a nice bonus, seemlessly not adding to the monthly cost.

Here is the Tangible Brochure, and for the technically minded looking to dig deep, here is the Tangible contract.

Note that the option is there in the critical area – to extend coverage to age 65 for an “own occupation” definition.

Unlike many group insurance plans that restrict “own occupation” to 24 months, the Tangible plan will ensure your current income is protected should you not be able to perform your job!

Call us or use the contact form on the sidebar to fill out a request… 1.866.856.6799

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Depending on your personal situation, and that of your family, the right medical and dental insurance choices can be a daunting dilemma.

We do not serve one master. In other words, we are not tied to any one insurance company, and therefore are free to offer you the solutions (plans) that fit your particular needs.

How do we determine your needs?

Good question.

The size of your family, any pre existing medical conditions, and any current medication use is of obvious importance.

From there, what features are most important to you? Different companies and plans may have variances in this area.

If you are a diabetic with expensive testing strips, which company might actually cover a portion of this pre-existing condition?

All good issues. All good questions.

So, the next time you consider going online to try to invent this insurance wheel on your own, ask yourself an all important question. “Am I getting the best plan that fits my family best, at the best possible rate?”

Without a qualified broker that has already “invented that wheel”, you may be throwing away a lot of hard earned money, without proper consideration. Not a good place to be.

Our searching for you is on us! We do not charge to listen and suggest what would be best.

Of course, if you take out a plan through us, we do get paid by the insurance company.

Call us today, and let’s see what’s up! In Ontario and Alberta, 1.866.856.6799.

Oh, and if you want to send an email, look for the envelope on the left or right side, and it will link to a contact request form.

Thank you.

Craig

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Self-Employed Needs

You are part of the fastest growing business segment in our economy. You are on your own, your own boss. Isn’t that great?

If you have come from a background of working as an employee, you are likely used to having medical and dental coverage, long-term disability, and other job perks.

Many self-employed go into business for themselves with the goal of “having a better life”, so why do they often forgo the benefits that will ensure they stay in good health, or protect themselves if they do not?

If you have been self-employed for a long time, or have just recently started out on your own, please ask yourself these important questions:

• What will happen to me and my family if I should become sick or injured? How will it affect our lifestyle?

• What would happen if I contracted a major Critical Illness such as Cancer or if I had a heart attack or stroke?

• If I should die, would my family be O.K. financially? Would they have to move, downsize, or otherwise reduce their standard of living? Would I really want that? Is mortgage insurance really enough?

• Can I afford NOT to protect our lifestyle in the event of disability, Critical Illness, or death?

• Can I afford to not provide for medical and dental needs of my family? Am I avoiding the dentist because I feel it is an expense I can live without? (please see “your teeth are attached to your heart“)

The answers to these questions are important because it helps you assess what insurance would mean to you. Sadly, many self-employed individuals answer these questions too late (i.e. they have already become disabled), or tragically, they don’t answer them in their lifetime, but leave their families wondering why not.

Don’t let this happen to you. Contact me for a no obligation review of your insurance needs, and put peace of mind back into your self-employed mindset. After all, you’ve got enough to consider in growing your business!!

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How to decide which Benefit Plan may be right for you    

Note regarding Blue Cross Ontario:

We are an experienced and authorized BLUE CROSS Brokers, located in Ontario and Alberta, able to offer the full line of benefit plans and other unique products and quality solutions through our specialists in Ontario and Alberta. Blue Cross in Ontario utilizes the broker force to bring you good benefit advice, and the quoted cost is the same through a qualified Blue Cross Broker.

Blue Cross Service Issues on existing plans outside our office:

If you have been trying to reach Blue Cross directly for service issues on existing plans you have purchased elsewhere, please call our local or long distance numbers, or email us and we will be happy to direct you to the appropriate department. If however, you have lost your agent or would like us to service your plan, you have come to the right place!. We are driven to present to you all the appropriate solutions to your benefit needs.

‘Why should I speak with a Broker and not directly with each insurer?’

Let’s try to avoid the bungled ‘bundle’!

How are benefit plans like TV services? Have you ever frowned at your cable TV or satellite TV provider because the only way you can get the channels you want is in a bundle with other channels you don’t want? This adds to your cost, and the likelihood you will not cost-effectively cover your needs. Your money is best kept in your pocket, and you should buy the best combination of coverage that makes the most sense, with the least amount of wasted money.

We know the market, the company plans, and we know how to help you sort it out!

Why should you pay more for the coverage you need than you have to? 

Insurers market only the plans they offer, and they bundle their products. They also don’t take a very important aspect into consideration – YOUR HEALTH!

You should be shown plans that give you higher drug limits when you are in exceptional health. Don’t accept low limit plans that the insurer is at low risk for.

We are not tied or biased by one company, and can suggest solutions based on what you need. This saves you time, and does not waste money!

And, why shouldn’t you be exposed to all the options in the benefit market that make sense. Benefits you need may not be exactly the same as your neighbor, and trying to find the right plan is difficult to say the least.  We continually monitor the benefit market and can make your experience a positive one.

Here are some things we consider when discussing your benefit needs:

       To save money, if you are in exceptional health, you deserve to be shown plans that fit you best – some plans have unlimited annual and lifetime maximums on drugs. Your good health will qualify you for these programs, and you need to look at this as the most important aspect of the program.

        If you develop a medical condition that could financially devastate, will your benefit plan come through and pay all the expensive bills?

       If you are already in a position that drug costs are a huge financial burden and are living in Ontario, please see the Ontario Trillium Drug Program page. We want to help you with this process, and discuss if you would likely qualify. Please speak with us.

       If you are self-employed, there are cost effective, tax saving options

Call us today! We are here to answer your questions, and we do not charge for advice!

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