Health Insurance Scams Surge

In the midst of a tight economy and in the wake of the new national healthcare reform bill, State and Federal regulators are warning about a surge in healthcare-related scams. Better Business Bureau advises consumers to do their research before signing up for insurance coverage because their personal and financial health is on the line.

According to an October 2009 survey conducted by the Coalition Against Insurance Fraud, 57 percent of state fraud bureaus reported a higher incidence of health insurance fraud in 2009 compared to the previous year. The increase was largely attributed to “unauthorized entities selling fake coverage” and “the rise of medical discount plans.”

“Navigating the healthcare system can be a tricky maze and coordinating your physicians, prescriptions and insurance coverage isn’t always easy,” said Paula Fleming, BBB spokesperson. “One of the first steps to finding healthcare services that are a good personal fit is to start with a provider you can trust.”

Companies such as HealthcareOne/Elite Healthcare, Consolidated Workers Association, and Smart Data Solutions/American Trade Association, have all recently come under fire from state regulators for peddling worthless coverage or discount medical plans—instead of actual insurance—to thousands of consumers.

Additionally, the new healthcare reform bill quickly sparked new scams; shortly after it was signed into law, the U.S. Department of Health and Human Services issued a warning to consumers to beware of health insurance offers claiming to be part of new federal regulations. For example in Missouri, the state Insurance Director warned that a door-to-door salesman was claiming to be a federal agent selling insurance under the new law.

BBB recommends taking the following steps when shopping for health insurance coverage to avoid getting ripped off:

• Research the company with BBB. Always check out the insurer’s BBB Reliability Report online at bbb.org. Reliability reports are available for free and will tell you how many complaints the business has received, whether there has been any government actions brought against the business, as well as BBB’s overall rating.

• Confirm the company is licensed with the state insurance commissioner. Each state has a department devoted to regulating insurance companies. Make sure the insurer is licensed to operate in your state. Visit bischa.state.vt.us for Vermont information.

• Read the fine print carefully. Make sure all verbal commitments are in the fine print. Don’t just take the company’s word for it. Also confirm with your pharmacist and doctor that they accept the plan you’re considering.

• Recognize the difference between insurance and discount medical cards. Some consumers purchased what they thought was health insurance but was actually a discount medical card which could only be used to get reduced rates at limited doctor’s offices and pharmacies. Make sure you’re purchasing insurance coverage and not just a discount medical card.

• Beware of copycats. Some phony insurers will go by a name that is similar to a trusted company. Confirm that you’re really dealing with the right company that has a good reputation.

• For more advice on finding healthcare companies and services you can trust, visit http://www.bbb.org/us/consumer-tips-health.

Life Changes Require a New Attitude Toward Money

By Valerie Lemke, CNS

Major shifts in lifestyle such as marriage, children, a new home, remarriage or retirement require big changes in family finances — but many people don’t know where to begin.

A budget is the essential first step, according to Christopher Rand, a certified financial planner.
“Budget and cash flow are the cornerstones of any financial planning,” he said, adding that he recommends budgeting for all of his clients.

To begin, start by creating a list of needs and wants. The needs — rent, food, clothes — are always going to be there. Many of those items may cost more when your lifestyle changes. The wants are the, “I’d like to have but don’t need to have” items such as entertainment and vacations. When cuts are needed, go to the wants category and eliminate from there.

Draw on past spending to establish budget lists. If you can’t remember what you bought and how much it cost, follow the paper trail, Rand said. By researching credit card bills and bank statements, almost everything spent in the past six months can be tracked.

With a budget in place, your initial savings goal should be an emergency reserve account amounting to three to six months of your total expenses.

“This is for when something unexpected goes wrong such as getting laid off, a major illness or a death,” Rand said. Keep this reserve in a secure location you can access immediately, such as a savings account.

Consider the financial ramifications when a specific change in lifestyle comes into play and the affect it has. These are perfect times to re-evaluate your expenses.

Since money problems are the number one reason for divorce, it makes sense that marriage is an ideal time to establish a budget, Rand said.

If two independent, working people who have lived on their own plan to live as one, they will benefit greatly from a shared financial plan. A budget that spells out how to handle financial responsibilities reduces the chance of money problems down the road.

Remarriage carries its own unique issues, particularly if children are involved. For example, “the husband buys his son a nice backpack and his wife is upset,” Rand said. An equitable family budget needs to be established or the couple will be arguing over money.

Meanwhile, buying a home requires research and a lot of questions. How much does it cost? Can we afford it?
“You need to sit down with an accountant or financial planner and figure out the costs,” Rand said. “On the one hand it’s not just the mortgage, but the property taxes, homeowner fees, repairs and maintenance. On the other hand, there may well be a tax advantage to having a mortgage. Get professional help.”

Between first jobs and retirement, another possible lifestyle change — a sizable promotion — offers a prime opportunity to begin saving for such long-term goals as a comfortable retirement.

For more modest savings, Rand offers his personal tips for saving money:
• Don’t buy on impulse.
• Pay credit cards off each month.
• Buy in bulk.
• Use coupons.
• Stock up on necessities when they’re on sale.
• Entertain at home.

Finally, for clients having trouble getting a handle on expenses, the financial planner is firm in his recommendation to spend only cash for 30 to 60 days — no plastic and no check book.

“It’s a great reality check,” he said.

If you get to Wednesday and the food is gone and so is the cash, it’s time for ramen noodles.

Start Building Your Future With a Financial Strategy For Today

By Chandra Orr, CNS

If you were building the home of your dreams, you wouldn’t run down to the local hardware store and stock up on nails, drywall and wiring, dump it all in a pile and see what you can make.

Yet that’s just how many Americans go about saving for their golden years.

“If you are building a home, first you work with an architect to dream up the masterpiece. Then you go out and buy the products to achieve that goal. It shouldn’t be any different with your finances,” said retirement planning specialist Gary Ott, spokesperson for AXA Advisors, LLC.

Much like designing your dream home, designing your retirement starts with a sound strategy. You need to know what’s truly important to you, enlist the help of an “architect” and consider what you can afford today, not 10 or 20 years from now, Ott said.

“You need to develop a strategy first,” he explained. “The specific products are the last part of the plan.”
Think of the retirement savings and investments as the tools and supplies. They are merely a means to an end — a way to make the money you need to live the retirement of your dreams.

“The numbers part, the data part, is easy,” he said. “The hard part is the emotional side. What do you love? What’s the most important thing for you in retirement? Most people get hung up on the numbers and forget about the emotional side.”

Maybe you want to travel overseas. Maybe having a new car every few years is more important. Perhaps you’d rather rest easy knowing your home is paid in full. The key is painting a picture of your ideal retirement. Only then can you move forward.

FIND A financial ‘ARCHITECT’
As with building a dream home, you will require a little outside assistance when planning for your golden years.

Seek financial professionals with training, credentials and certification in retirement planning. Ask friends and family for referrals, and above all else, make sure the chemistry is right. If your planner seems more concerned with selling products than discussing your future goals, priorities and concerns, keep looking.

“You need to feel comfortable with your retirement planner,” Ott said. “You’re going to be working with this person on a long-term basis, so get to know each other. During the first meeting they should be identifying your priorities and concerns and determining what type of retirement planning would be beneficial to you and your family.”

Once you find a match, expect to attend several meetings before you ever part with your hard-earned cash.
During the data-gathering phase, your retirement planner will review your financial inventory and work with you to design your ideal retirement. Expect to provide detailed information on everything from your income and assets to a copy of your current will and life insurance policy.

Be prepared to supply copies of recent pay stubs, tax returns and Social Security statements, as well as information on employer-sponsored 401(k) plans, currently held mutual funds and stocks and any outstanding debts. You will also be asked to complete a detailed expense worksheet to get an accurate picture of how much you earn and where the money goes.

WHAT CAN YOU AFFORD NOW?
As with that dream home, what you can afford today will have a big impact on the final outcome.

“You want to be sure that what you start today you can continue tomorrow,” Ott explained. “Like a New Year’s resolution, many people are too aggressive in the beginning. You need to identify what actually fits your current lifestyle so you don’t start and stop saving for retirement.

Retirement investments offer bigger payoffs when you keep up with them. By adding a little each year, over the course of several decades, you’ll come out far richer than someone who takes the on-again, off-again approach to investing.“If you take a look at how much you having coming in and going out, adjust for taxes and inflation then see what you have left over to invest, your retirement strategy will be significantly more accurate,” Ott said.

Finding the Perfect Insurance Policy — and Agent — For You

By Lesley Sauls, CNS

Asking for an explanation of insurance is a bit like opening Pandora’s proverbial box. Insurance exists to cover almost any situation, and there are plenty of agents and companies who are prepared to sell it to you.

But how do you know what you really need? How can someone without hands-on experience navigate the vocabulary and fine print that accompanies any insurance policy?

The first step is to understand the structure that supports the insurance industry. There are hundreds of insurance companies to choose from, but the person you find when you flip through the phone book is only their agent.

Some companies, like State Farm, Allstate and American Family, have agents called “direct writers” who sell only their company’s policies. However, some of those are expanding to represent other carriers that are carefully screened by the parent company.

Other insurance companies sell their policies through “independent” agents. Instead of having a symbiotic relationship with one company, these agents deal with many companies to find good rates and policies for their clients.

Ken Mullen, an agent for State Farm Insurance, recommends doing a little comparison shopping before selecting an insurance company.

“Call local body shops and contractors to see which company they would like to work with,” Mullen said. “There is no substitute for the research [consumers] do about the products [they] need to buy, even insurance,”

Standard and Poor’s has assessed the financial integrity of insurance companies for 37 years and is an excellent place to check a company’s ability to meet financial obligations. If there is a catastrophe in your area, you want to be sure your insurance company will be able to meet its commitments. Check out the site at standardandpoors.com.

Some companies like GEICO and Progressive sell insurance policies directly to consumers on the Internet.  A savvy shopper might select exactly the right kind of insurance, but most people need help understanding what is necessary and available. When your house burns down or your child is in an accident, you might regret having missed out on policies that an agent could easily have helped you find.

“If you have anything of value, including yourself, you need insurance,” said John Killey, an independent insurance agent. “But insurance is complicated.”

A good agent can help you succeed in your search. The decisions you reach together on how to insure you, your family and your property will be as individual as you are, so you want to choose someone who will understand you and have the best ability to weave your safety net. To find this person, do some research and ask for referrals. You can find information about particular agencies by calling your state’s Insurance Department. Contact information can be found at naic.org.

Once you have settled on an agency, actually go to the office and meet the staff. “People buy the agent, they don’t buy the insurance company,” said Killey.

Mullen agreed. “You are depending on someone to help you set up coverage that will deter a financial crisis should there be a loss due to accidents, weather, injury or death,” he said. “These events are important enough to take the time to get to know the agent and staff personally.”

Trust your intuition. See how you feel about the agent with whom you’ll be dealing. Then ask some questions that will help you assess the agent’s capability to meet your needs.

• What are the agent’s credentials? With which professional organizations is he affiliated? Does he pursue continuing education?

• Does this agent represent all types of insurance? Can he/she handle all of your insurance needs, or will you need to choose other agents for specific policies?

• How long has the agent been in the business? An agent with experience can more easily evaluate your needs and match you up with the best policies.

• How accessible is this agent in case of an emergency? Does he/she have access to e-mail or a cell phone? Do they have office hours that are compatible with your needs?

• How will quoted rates change after a claim? Perhaps an attractive premium will not remain so attractive after a speeding ticket or fire.

Finally, bear in mind that the most expensive insurance policy isn’t necessarily the best. When you find an agent you trust, let him or her determine the right policy for you.

“With a good plan, the benefits outweigh the expenses,” Killey said.

And with a good agent comes a good plan .

Spring Cleaning: Give Your Documents a Dust Up, Too

By Jennifer R. Luitjens

Although it may seem as if we are still in the middle of winter, our printed calendars do suggest that spring is near. For many, its arrival initiates the annual exercise of cleaning – washing the drapes, dusting the ceiling fan blades, and an overall freshening of the house. For perhaps a smaller number of cleaning enthusiasts, this ritual also includes the re-organization of closets and sorting through file cabinets or stacks of paperwork. And for an even smaller percentage of cleaners, sorting may involve a review of legal documents.

If your spring cleaning tradition doesn’t include a legal document-sort, should it? Here are some suggested guidelines.

Do you know where your original will is?  How about that life insurance policy you bought in 1971? Do you recall seeing a copy of your trust somewhere in the junk drawer, near the ink spill from the leaking pen? Does the blue-back cover on your power of attorney now appear grey due to the half-inch layer of dust clinging to it? If the answer to any of these questions is “yes,” then it just may be time to dust it off and actually re-read the document.

Other arguably more practical clues which may indicate a need for review include a change in marital status, the death of a family member or designated beneficiary, a change in financial status, a decline in health, or the mere passage of time. Any number of changes may suggest the appropriateness of reviewing your legal documents or overall estate plan.

While documents that you signed years ago do not become invalid or stale merely due to the passage of time, they can become inconsistent with current wishes. For example, you may have purchased a life insurance policy in 1965, naming your now-deceased spouse as primary beneficiary and your sibling as contingent beneficiary. Since that time, you have had three children and updated your will, but never re-visited the beneficiary designation on that life insurance policy.

It is very easy to let the years pass and create unintentional inconsistencies within an estate plan. And while it may not be as fun as wiping down the window blinds, dusting off documents during your annual spring cleaning may just as worthwhile.

Jennifer R. Luitjens is Certified as an Elder Law Attorney (CELA) by the National Elder Law Foundation, a non-profit organization accredited by the ABA. She lives in Jericho and practices in South Burlington.

A Snowbird’s ‘Financial’ Packing List

By Jennifer R. Luitjens

Although significant snowfall is arriving a bit late this year, the annual migration of snowbirds to southern locations is still certain to occur, if not already.  While veteran snowbirds likely have their packing routine down to a science, it may be prudent to review some items which may not make the obvious list, but which are essential in the event of an emergency.

List of Important Names & Numbers
Perhaps the mere existence of a mobile phone can satisfy this item, but it may be helpful to have a back-up list as well, particularly if you want to include telephone numbers for parties not on your phone’s contact list, such as utility companies and neighbors.

Advance Directive or other health care proxy
A properly executed Vermont Advance Directive should be honored by another state, so it should be portable. However, it must be available to even be considered!  There are several options – you may (a) have the document on you at all times; (b) have an ID card on you which acknowledges the document and indicates its whereabouts; (c) provide your named agent(s) with an original or valid copy; or (d) register the document for free with Vermont’s Advance Directive Registry.  The Registry is still a fairly new offering for Vermonters and allows residents to store their directives on a secure electronic database for ease of access in an emergency.  Once the document is registered, the registrant will actually receive a wallet ID card as well as instructions for accessing the database and making changes. For more information, see http://www.healthvermont.gov/vadr/index.aspx.

Durable Power of Attorney
As with the Advance Directive, the ease of access to a financial power of attorney may be helpful in an emergency.  Because of the power of this document and the potential for its abuse, this may not be something appropriate to carry around or to even provide in advance to your agent.  However, it may be prudent to advise your agent of its location or with the name of your attorney who has a copy.  Another consideration for traveling snowbirds is the ease of its use outside Vermont.  While all states have some form of Power of Attorney, the laws regarding its signing formalities and enforcement do vary.  Again, Vermont documents should be honored in other states, but sometimes it helps ease the process if the document also satisfies the laws of the “foreign” state. For example, our law requires only one witness and a notary public, whereas some other states require two witnesses and a notary.  To make the foreign state more comfortable honoring a Vermont document (which they may not realize is valid), it may make sense to conform to the other state’s laws as well.  In some instances, it may be appropriate to actually execute two documents – one for each state.  Bottom line:  if you spend a fair amount of time in two states (like many snowbirds do), you should consult with attorneys in both states to ensure you are planning properly for an emergency in either state.

While this list is certainly not exhaustive, it should highlight some items to better prepare snowbirds for their months away from home. And while you’re gone, we’ll try to enjoy the snow and keep our envy in check!

Jennifer R. Luitjens is Certified as an Elder Law Attorney (CELA) by the National Elder Law Foundation, a non-profit organization accredited by the ABA. She lives in Jericho and practices in South Burlington with the Jarrett Law Office. This article is for informational purposes only and is not intended to constitute comprehensive or specific legal advice. The author stresses the need to engage appropriate legal and financial professionals when devising your individual estate plan.

5 Creative Tips for the Holidays

By Mary Hunt, CNS

The cleverest holiday gift wrap I ever have seen was as ugly as it was unique. It came from the mind of a teenage boy, who used pieces of drywall to wrap his gift. Nails served as tape, and duct tape was ribbon. It did the trick to disguise the gift for sure, but more than that, it was entertaining and memorable. So, what do you have around the house that could double as gift wrap? Our first reader tip offers a great idea that would make any gift stand out as both attractive and unique.

• MAP WRAP. Many public libraries sell old books, magazines and periodicals. I buy old maps for 10 cents each and use them as wrapping paper for gifts. I buy plain ribbon from the $1 bin at my local craft store. Some people spend $20 for gift wrapping for the holidays; I spend $2. If only books and magazines are available, buy old copies of National Geographic with maps inside and use those. — Melissa C., California

• TURKEY TIP. Supermarkets often run good sales on whole turkeys before and after the holidays. I remove the legs and wings and pack them separately in freezer bags. One turkey can make quite a few meals, and it’s easier to fit in the freezer once it’s cut apart. — Jill M., e-mail

• GIFT GAME. My daughter started a game with the presents at Christmastime. We wrap gifts without name tags. Each person chooses a gift and, after opening it, tries to determine whom it is for. We also wrap “junk” in fancy packages and watch the faces as each gift is opened. Then we hand out the real gifts after the laughter dies down. The important thing is to know your family and what would work with them to make it fun. — Veronica B., e-mail

• CHRISTMAS TREE SKIRT. Several years ago, I gave up on the velvet Christmas tree skirts that need to be dry-cleaned. Instead, I use a metallic flannel-backed tablecloth. They come in gold, silver, red or green for $1 to $5. I cut in from one side to the middle and place it around the base of the tree. I tuck it in and scrunch it up a little, and it reflects the tree light. After Christmas, I clean the skirt with a damp cloth or just throw it out with the other holiday trash. — Bonnie K., California

• IMAGINATIVE IDEA. This Christmas, my family has agreed not to spend our usual amount of money on one another. Instead, we’re going to buy one another small gifts. Then we’re going to pretend we have a million dollars, cut out photos of the gifts we would give to one another from magazines or catalogs, tape the pictures inside boxes with notes saying why we wanted to give these gifts, and wrap up the boxes in beautiful paper with bows! — Pamela B., New York

Factoring Home Equity Into Your Retirement Plans

By Ted Beebe

When individuals, or couples, contemplate retirement, they need to run the numbers, then rerun them, then run them again. We’ve all done it far too many times. By the time we finally retire, we feel comfortable that the finances will work. But what we don’t give enough consideration to is “inflation,” the increasing cost of the things we pay for each day.

I expect to have at least 20 years of active retirement, years when my wife and I will be out living our lives, visiting family, enjoying our hobbies, traveling, going south in the winter, etc. All these things cost money. Lets think about what some of these things might have cost 20 years ago to give us some perspective on what they might cost 20 years in the future.

What was your phone bill 20 years ago compared to now?

What was the price of gas 20 years ago?

How much was a gallon of milk?

What was the price of a new car?

I don’t know the exact answer to these questions, and this is not very scientific, but it sure seems like things have about doubled. If they double again in the next 20 years, we’re in trouble. In fact, with the increases that we are likely to see in the next 5 years, that will throw cold water on some of our plans.

I have often heard seniors referred to as individuals on a “fixed income.” I am gaining a new appreciation for that term.

So, where’s the ace? ”Show me the money!”

If you own a home, you may have a fair amount of equity in the home. You may have a small mortgage or no mortgage at all.

I’m guessing that you did not factor in the use of that equity when you ran your number at the time of retirement. If you are at all concerned with your finances now or in the future, then you should consider using your equity to meet your growing expenses. It is your equity; you have earned it; you should use it.

This is done with a Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage. It converts the equity in your home into cash available for your use. A HECM is a loan, but you do not have loan payments. The interest on the loan accumulates. Eventually, when you are no longer living in the house, the loan will be repaid when you or your heirs sell the house. The loan balance will essentially be the amount of money that you have used from the equity plus any accumulated interest. If the value of the house exceeds the loan balance, that equity belongs to you or your heirs. If the loan balance exceeds the value, you can never owe more than the home value.

You can take money from the HECM in several ways; you can take a lump sum, you can receive monthly payments as long as you live in the house, you can leave it available as a ‘line of credit’, or you can do a combination of these.

The amount that you can get from a HECM depends on:
1. age of the youngest person
(in the case of a married couple)
2. value of the house
3. amount of any existing mortgage that will be paid off with the HECM

In the chart on the next page are a few examples of how your income could be supplemented.
Besides inflation, another concern is the loss of household income. In the case of a couple, probably both are receiving social security, and maybe a pension. If one of the individuals passes away, then that person’s income will stop and the household income will go down. Many of the expenses of the household will continue, but the income will be less. So having a HECM in place may be a good way to be prepared to supplement your income, if needed for a variety of reasons.

There are lots of reasons why individuals, or couples, utilize a HECM, but contending with, or anticipating inflation should be high on the list. Your current retirement income may seem adequate, but will it be in 5 or 10 years? We should give future inflation more consideration when we run our numbers, and some of use are fortunate enough to have an ace up our sleeve.

Life Insurance Is Not Just for the Young

By Phyl Newbeck

Life insurance is not just for young people. Kit Antinozzi, a State Farm Life Insurance Representative at the Pat Spielman-Morris Insurance Agency, believes it is crucial for older Vermonters to carry life insurance to cover their final expenses, incidental medical expenses, and perhaps leave a small legacy for their family or a favorite charitable organization. There are a number of things you should consider when choosing and/or updating a policy.

Antinozzi recommends some of the more common life insurance policies, which include term life, universal life and whole life. Each of these policies offers unique benefits that can best address an individual’s current and future financial needs or obligations. Antinozzi describes term insurance as being a good deal because of the initial low premiums versus whole life insurance, which usually has fixed yet more expensive premiums. However, whole life, unlike term life, continually builds a cash value in addition to the face value of the policy. If you’re looking for the best of both worlds, then a universal policy may be the answer. It combines some of the best features of both the term and whole life policies.

Jim Cohen of New York Life provided the cautionary tale of a client who had purchased a 20-year term life insurance policy from another company, recognizing that premiums would rise from $500 to $5,500 in the twenty-first year. In the nineteenth year of his policy, he was diagnosed with cancer and given three years to live. Thankfully, the family found a way to pay the premiums; the man lived for another four years, and his children received his $250,000 policy. The moral, said Cohen, is you never know what you will need later in life – a permanent policy would have been safer.

According to Jack Dolan of the American Council of Life Insurers, over 300,000 Vermonters hold life insurance policies, averaging $93,000 per policy holder and totaling over $40 billion. In 2007, the last year for which statistics are available, $840 million was paid to Vermont residents from life insurance policies.

Life insurance can also be a tool for estate planning. Stephen Unsworth, Esq. of Unsworth and Barra recommends that well-to-do seniors get a policy in which heirs are assigned “the incidents of ownership” as well as being the beneficiaries. In cases such as these, the heirs are the owners of the policy and the insured annually gifts them enough money to cover the costs. The IRS allows tax-free annual gifts to individuals of up to $13,000. Unsworth said people don’t realize that the cost of life insurance has gone down as life expectancies have gone up.

Once a policy is written, you should continue to review the document periodically, paying particular attention to the beneficiary. Cohen gave the example of a man whose primary beneficiary was his late first wife. Her death negated that portion of the policy, but the secondary beneficiary was her brother who happily collected the money despite the fact that he and the insured hadn’t spoken to one another in years. The man’s children felt the money should have gone to them, but Cohen believes a lawsuit would have been useless because an insurance policy is the equivalent of a contract.

But Cohen also knows some very heart-warming stories, such as the 76 year-old woman who told him she was risk-averse but had $350,000 in a speculative market-based investment. Since other investments provided her with sufficient income to make her comfortable, he suggested putting those funds toward life insurance. By purchasing a policy with a guaranteed 10-year payout, that $350,000 (which Cohen said would have shrunk to $250,000 after taxes, assuming a flat market) turned into a minimum of $800,000 tax-free for her children.

A driver’s license and money for the deposit are the only prerequisites for a life insurance application, according to Antinozzi. Applicants can expect to be asked some standard medical questions, complete a longer health interview and a basic medical exam. Certain pre-existing conditions or family medical history can make it more expensive to obtain life insurance. However, if a pre-existing condition is under control, the condition may not be a barrier to getting insurance. If an insurer learns that a policyholder falsified his or her application, a death benefit will not be paid, but premiums will be returned to the deceased’s family. Antinozzi noted that some policies specifically designed for older people have less physical underwriting requirements, but these also have lower death benefits.

Antinozzi cautioned that aside from changing beneficiaries, seniors would do best to keep their policies intact because changes in a person’s health might adversely affect their insurance eligibility. Some life insurance policies allow for a portion of death benefit to be distributed early if the insured is terminally ill.

Unfortunately, there are insurance-based scams which prey on senior citizens. Unsworth warned that financial predators are buying insurance policies, offering far less money than the policy is worth. Unsworth noted that for someone who is informed, this might be advantageous, but frequently those who sell their policies are unaware of the ramifications, which may include taking money away from their heirs.

Antinozzi recommends working through a local agent, rather than relying on the phone or computer for insurance because the local agent can become more familiar with your needs. A change of beneficiary, for instance, can easily be done through a visit to the office, rather than a lengthy phone call to a center that is unfamiliar with the insured.

Cohen agreed, adding that part of his job is reviewing policies on an annual basis to ensure that things like beneficiaries are current. “A lot of things get forgotten,” he said. That’s where a responsible agent steps in.”

Green Up Your Green with Electronic Billing

Every year, more and more people resolve to green their finances – greening up their “green.” Below are seven reasons to resolve to pay bills electronically in 2010.
1. Save trees: If 20 percent of households switch to electronic bills, statements, and payments, 1.8 million trees would be saved each year. More trees mean better air quality.
2. Reduce clutter: 19 billion bills are delivered yearly. A 20 percent reduction would eliminate over 100 million pounds of paper.
3. Reduce greenhouse gas: If 20 percent fewer bills, statements, and checks are produced and transported, we’ll cut greenhouse gas by 2 million tons per year. Less greenhouse gas means cleaner air for us and future generations.
4. Save money: Pay bills electronically to avoid late fees, improve your credit rating, and save half a day’s time and close to $100 yearly.
5. Conserve water: Reducing use of paper bills, statements and checks by 20 percent eliminates 1.4 billion gallons of wastewater per year. Fresh water is one of the scarcest resources on the planet. Clean and abundant water protects human, animal and plant health.
6. Improve security: Take small steps to reduce your impact now and help secure a healthy environment for the future. Managing your finances electronically improves record keeping and reduces the risk of identity theft.
7. Save fuel & energy: if 20 percent of households make the switch, 103 million gallons of fuel will be saved each year. Less paper to produce and transport means cleaner air and less congestion on the road.
Also, readers can learn their personal impact with a Green Calculator: Log onto PayItGreen.org and use the Green Calculator to determine your personal environmental impact by greening up your “green.”
Source: PayitGreen.org – a not-for-profit coalition of financial services companies.

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