Zinser Benefit Service - Small Business Insurance

Individual Insurance, Group Insurance and Employee Benefits, small business insurance

Silver Oak Form CRS

employee benefits

The Value of Insuring Against Life’s Risks

· · Leave a Comment

The Value of Insuring Against Life’s Risks
Building wealth requires protection from the forces of wealth destruction.

 

Provided by M. Zachary Zinser

 

When you are planning for your future, what do you think about? You may think about your retirement, enjoying having the time and money to take trips and pursue your interests. Maybe you think about your home and enjoying the feeling of stability that can come with home ownership. In making these plans, people often find that their long-term view involves money, in some fashion.

 

That said, life also involves risk as well as unforeseen events that can change our plans in an instant. As an example, sudden injury or disability could leave you in a financial bind, unable to work for an extended period of time, or ever again. For this reason, among others, insurance is an important tool in allowing you to build and maintain your wealth, as well as protecting it from unanticipated and destructive forces.

 

Did you know:

* Sixty-eight percent of American workers have no long-term disability income protection.1

* Roughly 70 million Americans aged 18-38 have no life insurance.2

* About one driver in eight is uninsured?3

 

If you ask a homeowner, replacing a roof is probably the least satisfying expense they will ever face. While the value of such an investment is obvious, it doesn’t quite provide the satisfaction of new landscaping. Yet, when a heavy rain comes, ask that same owner if they would have preferred the nice flowers or a sturdy roof.

 

Insurance is a lot like that roof. It’s not a terribly gratifying expenditure, but it may offer protection against the myriad of potential financial storms that can touch down in your life.

 

The uncertainties of life are wide ranging, and many of them can threaten the financial security of you and your family. We understand most of these risks; for example, a home destroyed by a fire and a car accident are just two common risks that could subject you to outsized financial loss.

 

Similarly, your resulting inability to earn a living to support yourself and your family due to death or disability can wreak long-term financial havoc on those closest to you. Insurance exists to protect you from these forms of wealth destruction.

 

Some insurance (e.g., home or car) may be required, but when it isn’t mandatory (e.g., life or disability), individuals are tempted to avoid the certain financial “loss” associated with insurance premiums, while simultaneously, assuming the risk of much larger losses, which are less likely to happen.

 

 

But insurance premiums aren’t a financial “loss” – they are designed to help protect you and your family as you build personal wealth. Keep that in mind as you consider your coverage options and make decisions about your future; you could be making a decision that could affect the rest of your life.

 

Zachary Zinser may be reached at 502-245-6674 or zach@zinserbenefitservice.com

or www.zinserbenefitservice.com 

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Securities Offered through Silver Oak Securities, Inc. Member FINRA & SIPC. Zinser Benefit Service, Inc. and Silver Oak Securities, Inc. are not affiliated.

 

Citations.

1 – ssa.gov/news/press/factsheets/basicfact-alt.pdf [2018]

 

2 – ajc.com/business/personal-finance/free-term-life-insurance-yep-thing-and-here-how-you-can-get/zzoBg0QQqRgjoBMAN1QfWM/ [12/3/2018]

Keeping Your Plan Until 2017

· · Leave a Comment

On Wednesday, March 5th, the Obama Administration announced a 2 year extension to the policy that if your individual or small group plan was due to be cancelled in 2014 as a result of the essential health benefit benchmarks and other market reform requirements imposed by PPACA, you would be able to keep it, as long as your state insurance commissioner and the carriers in your state say it’s ok.

This policy only applies to existing policies.  All newly sold coverage will have to meet all of the market reform requirements and other benchmarks imposed by PPACA (or ACA or ObamaCare).

Here in Kentucky, when this was announced last November for the first extension, we were allowed to do so.  However, the state of Indiana didn’t allow it.  We are still waiting to hear from our carriers if this will be allowed a second time.

 This is a political move by the Democrats with the mid-term elections coming up.  Pricing for renewals will be coming out in July/August of this year, which probably won’t be favorable.  Plus, if last week’s Florida election was any indication, then it may be too little too late.

New Taxes

· · Leave a Comment

Starting in 2014, there are new charges on health insurance companies and on individual taxpayers to fund the ACA (PPACA or ObamaCare).

The first one is known as HIT – the health insurance tax.  This is an assessment on some health insurance companies based on their market share. Health insurers oppose the tax because it will lead to increased premiums, which is what health care reform wants to avoid.  A study by the consulting firm Oliver Wyman confirmed the tax will increase premiums by more than $2,800 per person and $6,800 per family over 10 years.

The second tax is on individuals making more than $200,000 and couples making more than $250,000.  They will pay a 3.8% tax on dividends and capital gains when they file their 2013 returns this year.  This income group also saw a 0.9% Medicare wage tax increase in 2013.

For the next three years, insurers will pay $63 per health insurance recipient; this is known as a reinsurance fee.  The $12 billion collected will be used to spread out risk so insurance companies that end up taking on the sick will be protected.

The penalty for being uninsured begins this year.  Individuals won’t have to pay it until they file their 2014 returns, the penalty this year is $95 or 1% of income, whichever is greater.  Next year, the penalty rises to $325 or 2% of income.

The last fee is on insurance companies that sell their health plans on healthcare.gov; they will pay a monthly user fee of 3.5% of the premiums for health plans sold on the website.

This information was taken from an email I received from Humana.

Updated Enrollment Numbers

· · Leave a Comment

I read in some online publications today that President Obama’s administration finally released some enrollment numbers of citizens enrolling in medical insurance plans for January 2014. I have my own questions about these numbers.

Some of this information is taken from articles across the Web, but most of it is from Ezra Klein’s blog, which is linked here:

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/14/the-death-of-obamacares-death-spiral/

There are 2.2 million Americans that signed up for private insurance. Of these 2.2 million, roughly 25% are the desired age group of 18-34. According to Ezra Klein’s blog, the Obama Administration, along with others, wants 38%.

The next set of numbers show that 55% of the sign ups were between the ages of 45-64.

These numbers don’t include the state exchanges of Minnesota, Oregon and Nevada.

The most popular metallic level plans are the silver level, with 60% of enrollees selecting these.

Most of the people enrolled haven’t paid yet. In my opinion this is a big deal. If you sign up and don’t pay, you don’t have insurance. As of right now these numbers are just citizens that have signed up, not paid.

Lastly, no Medicaid numbers have been released yet. These should come later this month.

A question I have about these numbers, are they reflective of what the insurance companies thought they would get, which in turn directly impacts the premiums that they charge.

Of course there are two sides to each argument, one side stating that a “modest” increase of 2.4% could be in store for next year. The other side states that if more young and healthy individuals don’t sign up, then it could be much higher.

Only time will tell…

Some questions that come to mind –

  • How many were they expecting?
  • What did each insurance company expect to get?

Request a Quote

Call (502) 245-6674 for more information or Request a Quote online.