Health Care Reform Making You Feel Handcuffed?

The Affordable Care Act has been in place since October 1, 2013. When it was first opened up the majority of people were still rather clueless as to what it meant and what they needed to do. Even heading into the new year there were some who still didn't know there would be a tax penalty for not having some sort of ACA compliant health insurance. Health care reform is confusing to many, irritating to others, and many are still walking around uninsured as before because they just don't know where to turn. Business owners and the people in charge of benefits are much the same way. I will be directing my statements to them in the remainder of this piece, but understand that as of today, not only must decisions be made but options must be made available. I hope to do some of that here.

Many business owners around where I live feel trapped. In Alabama, we are essentially a one carrier state and all options seem to lead to that particular carrier. A couple have tried to get in and make some waves, but on a very limited basis, when it comes to the public exchange set up here. Many business owners feel handcuffed to the only option they are aware of. I'm here to tell all of them, that there are options.

Before I get into the top 3 options I have seen and helped to implement, I have to say to anyone reading this who feels like they only have the one option...stop thinking that way. Forget the one carrier for a second. Forget what you've always known and maybe even grown up with and expand your mind to options that can help you and your business keep solid benefits in place and keep them affordable. Be open to the possibilities.

Now, on to my top 3 options:

1 - Get high. 

We do it with much of the insurance we select. Car, home, etc. We pick the plan that allows us to pay the smallest premium now and do our best to avoid the risk and thereby save us money in the long run. In the past, deductibles of $500 - $1500 have been the norm. In this option, deductibles can get up there to the $5000 - $10,000 variety.

Now, that amount may sound scary but I want you to consider something here. Look at the last visit to the hospital you had. Most likely it wasn't yesterday and you do all you can to stay healthy and out of the hospital like i know I do. Now, people with conditions that need constant monitoring and/or treatment may see something different but I'm working off of the general population. Now, if you will take that potential deductible and look at a situation where a good bit of medical treatment may be necessary (emergency, sever illness, etc.) the total amount would put many people into bankruptcy. While the deductible may look huge, when you need the insurance it is there to cover past that amount. Many times a payment plan is set up with insureds to get the bill paid but at the end of the day what you want is to feel better and be back on your feet and contrary to popular belief, your doctor wants you back on your feet as well because his health (not your wallet) should be his or her number one priority. So, that said, looking at the highest deductible plan for you and your people may be a solid option. In addition to that there are additional policies that those individuals you see as needing a little more "cushion" could acquire to cover the larger expense items like hospitalization or surgical procedures. Those policies are usually quite affordable and if you save a good bit with getting a higher deductible plan the investment to cover these "what ifs" could be huge to your people.

2 - Think outside the card. Another options that have surfaced are not really new. Things like HSAs and HRAs have been around for some time. Many people in this are of the country don't look at because it takes some thinking and an open mind to wrap your noggin around the concept of setting money aside for a rainy day medical situation.

It makes sense and the options can be quite flexible based on the staff of people being covered. I'm not going to dig down deep into these here, but the options are endless here. You can customize a plan that starts dollar one coverage and then the insured picks up some and the plan kicks back in or the company can set up a fund and pay out expenses at the time of need. It's really a nice option to have, gives the company some solid benefits for the everyday use and also helps the people who have the "what if" happen to them.

3 - Throw everyone to the sharks. OK, that sounds more harsh than it is really, but many companies have no choice (or feel they don't). It's either keep benefits or start firing people. This option tells your people that you are not involving yourself or your company in health insurance options and that it's up to them to go and get it on their own. It saves the company time, money, and administrative stuff that goes along with having health insurance.

It's not the nicest option, but it is one I'm seeing owners take. It's also not all bad and a company owner can still provide things to their employees that they can use to help them as they go it alone. For instance, a company can have a broker or ACA trained agent come into his place of business and help his people make the choices they need to. The company can offer up a flat amount that they would be willing to pay so each employee has some company funds to help pay premiums with. The company can also offer to fund other benefits like life insurance, disability, or other products where if the "what if" happens then the people are covered. To be fair to owners making this bold move it's not all bad. The business owner wants to be in business doing what they are passionate about. They have taken the time and resources to hire quality people and pay them a good wage. If all the company does is that they've done a good thing. So many people expect health benefits to be part of the deal when in reality it doesn't have to be. In fact, I've even been in training classes where we were taught to tell a company owner that if they'll offer a certain benefit it will increase the loyalty and production of an employee. I've talked to many employees recently and to be honest...they just want to get paid. I think in 7 years I may have talked to 3 people total who said they changed jobs for better benefits. I'm not saying it's a good option, but I have to be fair to the decision. I will, however, say that I encourage all owners to at least OFFER opportunity through your company for your folks to acquire benefits whether you pay a dime for it or not. Having the knowledge that you care enough to let a vendor or benefits professional advisor says to your people that you care enough about them to help them make the call for themselves.

I hope this insight has been helpful. Everything has changed and is still changing as of today. Nothing in the benefits market is staying still and I'm doing my best to stay on top of it all. If you need some guidance as an individual or as a company, that's what I do. The good news is that all this reform has not stopped new companies from opening their doors. I'm meeting with a brand new company President this week and I'm excited about what we can build for them and their people from the ground up.

It's Never Too Late! Or Is it?

How many times have we heard the phrase, "It's never too late." We hear it used when people say things like, "I wish I had...", "I'd like to do...", "If only I'd...". Then we say "It's never too late". In areas like this that very well may be the case. Life is to be lived and in many cases you can do those things you've always wanted to do any time in your life. However, there may be areas where we miss the mark and the opportunity comes and then it's gone and it can be too late. I find this to be the case when we talk about decisions made about insurance and benefits people have access to. We see this to be especially true when it comes to disability and life insurance. I'll explain.

With life insurance, this concept is obvious. We only have so many days on this earth. Many of us have the desire to live life to the fullest. That's great until something happens and life ends up being much shorter than we had planned. In our lives, most of us have OTHERS to think about if something happens to us. Sure, you can approach it like, "Hey, I'm dead...what do I care." but if we stop and think for two seconds we realize that the people in our lives matter more to us than that and we need to make some provisions if our "carpe diem" mentality backfires. Death is inevitable no matter the age, health, or life situations. Being prepared with some basic life insurance will help those around you sleep a little better.
Another area is how life can throw us an illness or something that might keep us from being able to get life insurance. I have never seen people more upset and dejected when I get into an application for life insurance and I see that they have some health conditions which will either raise their premiums or cause them to be unable to gain life insurance by normal means. Younger people fall into the trap of feeling that disease and health issues will happen later so they decide to wait. Then one day they wake up with Type 2 Diabetes or they have a heart attack. Suddenly they feel like they have a chink in their invincibility armor and the "what if" question comes up. So, they run out and try to feel better by getting a life policy only to find that their recent situation makes the insurance company say, "Um...I don't think so."
In either of these cases there are always secondary options. With my main advisor capacity using voluntary life insurance through an employer I can usually make someone's day who has had trouble in the past with acquiring life insurance. I've even been able to get someone in cancer treatments get life coverage through work so I know it's possible. If I can't through those means, I have access to other carriers and professionals who offer higher risk policies. Sure, the premiums are higher but that's one of the prices of waiting.

Disability is another tough one but easier to understand. Many times someone is offered disability insurance to cover their paycheck and they pass because they've worked for years and never been out more than a day or two for anything. It's also true that people are more likely to die than suffer a long disability. This is where I will address the ladies. In pregnancy, you're out AT LEAST 6 weeks. Your FMLA keeps your job but doesn't pay you a dime and you have to have been at that job for at least a year before you are eligible to get FMLA. Disability coverage lets you enjoy your time with your little one and have the knowledge of knowing that you will at least get a paycheck or two while you are out. Unfortunately, I get too many calls in a year from clients asking to get on disability insurance who just got back to work from a disabling event or some young lady who found out 3 weeks ago she was pregnant and needs coverage. At that point my hands are tied and it is too late. I have to explain that they can still get the coverage, but that the policy will not help them in the pregnancy or for that condition they just dealt with on this go around.

Waiting is tough for the person, but it's tough on me too. I don't like telling people I can't help them. It's like I'm Superman and I'm trying to save someone from falling to the ground but they lined their pockets with kryptonite. I can try but in the end there is little I can do and that pains me.

So, how do handle these dilemmas? It's simple. When you get offers through work or personal means to help you plan for the future, think twice. Think about others who are counting on you. Think about how it will feel to have to ask to borrow money to get by or have to take out a loan. With benefits, you pay a small price today that could save you and/or your family a lot of heartache and pocket ache.

Do you have people you know who need to hear this? Do you want to help those who aren't helping themselves because they don't know where to go. With us being at the beginning of a new year, it may be time to start adopting the approach of helping others not miss an opportunity to help themselves. Contact me and let's see about setting up an advisory session where I can help you remind people of these valuable things. At least then we can say we tried. I find that imparting education and knowledge in these areas is key and even if they still say "No", they have done so in full light of the facts and possibilities.

Spend the next 16 minutes smiling with Steve Mazan as he reminds us that in some areas it's never too late:

"But That's Not Fair"

As the first deadline of the new health care law comes into effect October 1, 2013, I am working diligently to be sure that any group or business with employee knows what will be expected of them starting then and moving forward regarding expectations with the law. What I am finding is kind of shocking and almost funny...in a painful sort of way.

The example I am sharing here comes on the tail of a call to a client to be sure they had their pieces all in a row for full compliance on getting the exchange notices delivered to all their employees. These notices inform the person what the exchange is and a process they will follow to see what may be available to them for health insurance under the new law. That sounds pretty simple...right? Of the 20 or more employers I contacted via email and/or called, those who responded or took my call had little to no idea what I was even talking about. Please keep in mind that these were people and places that I have been discussing this stuff to through things like email blasts, direct messages and even face-to-face meetings for months. Once I am finished shaking my head and wondering what the wait was all about, I did come to realize tow things:

1 - It doesn't fit within the list of important things to-do in their daily business processes. To those who AMEN that, my warning is very simple...that will cost you. Delaying, putting it off, pleading ignorance, etc. will not stop the Department of Labor and/or the IRS from expecting you to have complied with the law. PERIOD! Also, if you feel you can just wait and last minute this stuff, good luck. The biggest reason I have been so diligent in communicating is so that there is some groundwork already being put out there so you can get it handled in a timely and proficient manner. This is just the FIRST part. As the months pass, more will be expected and everyone needs to be on the train going the same direction ready to make the appropriate and timely stops along the way so you and your company and your people don't pay a hefty price (figuratively and literally).

2 - I didn't know that. Let's forget the fact that my weekly email blasts focusing on one point about health care reform have been read by hundreds of people every week. Let's forget the countless articles and webinars and seminars being offered to help people to be ready and compliant. Let's even throw out all the media coverage that has been so prevalent in the last year on health care reform and the changes it will make and cause (and have already caused). I still get people who say "I didn't know". I feel like I know why and it boils down to the "It doesn't apply to me" or "It's not that big of a deal" or something along the lines of dismissal and complacency.
My most recent conversation was with a benefits administrator, They had already gotten the exchange notice out and were in total compliance there (a first in all my conversations...YEA!) but then we started to talk about the notices and the affordability of their plan they current have. I calculated their plan based on the lowest paid full-time employee and it came out to 11% for the premiums the employee would have to pay versus their annual gross salary. The mandate for affordability is 9.5%. They asked me what that meant and I basically said that if their plan did not meet the mandated guidelines on coverage and/or affordability, then a large fine per person would be in their future. They had no idea and what they said next made me laugh. They basically said, "That's not fair". How many mouths have had to utter that phrase about health care reform since the day it was signed? How many, once they say it now, suddenly get what this entire process is and will potentially do to businesses and their employees.

THAT is why I do what I do. My process and procedure in the last few months has been to do very little except get people informed and remind them that this is the law and that it's here. I also want to help everyone come up with solutions. Health care reform does not have to be like a pair of handcuffs...at least not if you want to explore good and affordable options. I am happy to talk about those options with anyone who reaches out to me after reading this. Contact me.

I try to always be a phone call, text (205-370-8453) or an email (gene@generamsay.com) away.

Where's Gene?

Just like the fun books of "Where's Waldo", I feel like I have been lost in a sea of others when it comes to blogging. The good news is that I have been VERY busy doing many different things and I'll try to get you caught up here in a brief fashion so we can start August fresh.

GENE'S BIZ: In my business, I have been honored with receiving many opportunities to get the message out about health care reform through the Birmingham Business Journal. I found an editor there who was all about keeping as many people as possible on top of the changes going on in health care reform. The articles I have been able to have published have reached a good-sized readership in Birmingham, Alabama and I am pleased to say that I am still writing for them even now.
If you want to see some of those pieces, go here.
I was also recently honored to be asked to be on a panel for health care reform hosted by the Birmingham Business Journal. The panel had the head of the legal department for Blue Cross and Blue Shield of Alabama, 2 attorneys, and myself. It was a great turnout for this early breakfast offering of information and I hope to get to be involved with more of these as time goes by.
Since April of 2013 I have started to build my own District General Agency for Colonial Life in North Jefferson County. This involves building a team of professionals and getting the word out about voluntary benefits that will help people and their families no matter what the health care reform does. Colonial Life is the market and broker leader in voluntary benefits among professionals and businesses. Their offerings and services have been paramount in my business over the last 7 years and the time had come for me to build something special for myself and others. If you want to look at an opportunity to join me in my endeavors, contact me at 205-370-8453 or email me at gene@generamsay.com.
I am now entering my 2nd term as the President of the Birmingham Association of Health Underwriters. My first year was amazing with an incredible board of professionals who helped drive our group to the top of the recruiting and retention column. Our Alabama group received a wonderful award for our efforts at the National Association Conference. I was able to keep most of my board in tact for the next year due to our success and I am looking forward to gaining even more momentum through 2013.
I was also fortunate enough to go to NAHU's Capitol Conference in Washington, DC. I was able to go with a group of my professional colleagues to talk with our elected officials about health care reform and how we can all be an asset to assist them as things begin to happen in the very near future. We feel these officials will need our help in helping others and we had to be sure they knew were there for them. In that process I was able to visit the memorials in the cold of February. I had a plan to take my trumpet and play "Taps" at the WWII Memorial (my favorite memorial) and to play the "National Anthem" for the last day of the Conference for room full of my professional friends in the industry (If I find the videos of both of these, I will post in my next blog).
Within all that I was awarded the 2013 Leading Producers Round Table Soaring Eagle Award. This is the top honor awarded by NAHU (National Association of Health Underwriters) for lives touched and advised. I am humbled to know that I qualified for this award and I hope to build on that in 2013 and to qualify each and every year.
I will say that my efforts in social media have grown as well. I know I have been slow on the blogging front, but the communications and collaborations and well as connections on LinkedIn, Twitter, and Facebook have all grown over the last few months and I am connecting with even more people to work with to help more clients just like you and those who will consider me their benefits advisor.
Lastly, I am working on a company name for all I am doing with benefits advising. While my main thrust will be Colonial Life and the help I can be to so many people, I have to also build this into a business for many different purposes (professional, tax, etc.). I will reveal more of the later but the initial impact and marketing for it looks amazing and I am looking forward to incorporating it into my blog here as well as a totally revamped website in the next few months. More on that later so stay tuned.

GENE'S BUGLING: You didn't think I wasn't bugling, did you? It's been crazy busy on this front as well. As Alabama Director for Bugles Across America, I have the duty of keeping track of 100+ buglers throughout the state and doing all I can to try and get as many live buglers to gravesides all over Alabama. It's no easy task and one I take very seriously. In fact, since Memorial Day (May, 2013) I have personally played Taps at gravesides over a dozen times. Our US Veterans and their families deserve this honor and I am so thankful that I have the training and talent to do so with honor and respect.
The most meaningful and personal one for me has been my Uncle Leon's funeral. It's a very long story of how I was able to play at his graveside, but I was there and proud to honor him that day. He was a Marine helicopter pilot in Vietnam. I don't think I need to say much more than that.

Speaking of Memorial Day, I was also asked to do a piece on "Taps" and it's meaning for CBS42 here in Birmingham, Alabama. The day was a nice one and I took the camera crew through my usual preparations for "Taps" and then I took them to the Gardendale, Alabama Veterans Memorial Park near my home. I got in my uniform and provided "Taps" for them and then they asked me a series of questions of which I did my best to answer. If you'd like to see the piece, you can check out the entire piece with lead in here or a shortened version when you click on the video/photo. It was a great day and many have been so kind to approach me and thank me for my service and to tell me what a great story it was. A big "THANK YOU" to all who support me in these endeavors.

I was also asked to serve as the National Bugle Coordinator for Spirit of '45 Day for our across the nation "Taps" we work toward each year. Spirit of '45 Day is celebrated every 2nd weekend in August to remember the final day of WWII and to celebrate our GREATEST GENERATION for our Nation. I was "voted" into this when I was able to attend the National Convention for the Spirit of '45 Day in San Diego, California. I have been an active member for the Spirit of '45 Day in Alabama since it started 3 years ago. I, along with the HUGE assistance of the Support Committee for the Alabama a National Cemetery, have an annual program at the Alabama National Cemetery every year. This year it will be on Saturday evening, August 10, 2013 and I hope you can be there. Contact me if you would like more information.

Like I said, it's been extremely busy for me. I have not meant to neglect my blog or those who read it. I just haven't taken the extra time to do it. I feel I may be back on a good schedule now with August approaching and getting a handle on the new things going on and the responsibilities I have before me.

It shouldn't be months before you hear from me again, but if you want to stay more in touch I am on LinkedIn and Twitter daily. You can follow me on LinkedIn here or Twitter here.

What Is Your Type?

In my last post, I said that I would provide some guidance and education on the life insurance options that are readily available and easiest to understand for people looking to make their first purchase or for those looking to subsidize their existing life insurance portfolio.

The outline will be simple and I will give some advice on each.

Here we go:

1 - Term Life Insurance - You see this stuff everywhere. If you've ever seen an ad on TV or gotten a flyer in the mail, it is most likely a GREAT rate for more life insurance than you thought possible for so little money.
THE GOOD: Term serves the purpose of insuring a block of time where you feel you are leaving others at the greatest risk should your untimely death occur. For example, if you are a parent raising children...let's say you have a 5-year-old and a newborn baby in your home. I always look at the youngest child to determine the amount of time you should consider in the child-raising period (in this case, the newborn). Most of the main term policies come in 10, 20, or 30 year options. With a newborn you may be hoping for college and such so a 30-year option is the safest policy based on that timing because chances are you will be raising that child past the age of 20. However, you will most likely not be raising that child for their life span and so the need to have a safety net after they have grown and gone and started a life of their own diminishes greatly.
Term is equal to time. You are wrapping a bubble of protection around a portion of the timeline of your life to cover a tragic and premature incident so that your family can continue (at least for a time) on the financial path you set out for them when it all started.
THE GAMBLE: So many people see the small premiums of a term policy and they get all excited that this will certainly be all they will ever need. Term is the insurance company's big "Gotcha". The people who look at something called a mortality table look at every number needed and every risk factor possible to assume the risk the person taking insurance out has the potential to be. Your individual situation helps determine rate and longevity of your life span. Most of us land in the "safe zone" and so to charge a small premium for the next 20-30 years is a no-brainer from their standpoint. The insurance company looks at you and basically says that unless something unforeseen happens, the life insurance payout will never happen and you will live long past the life policy's term. You're basically "renting time" for a BIG what if. The insurance company gets all those premiums from you for the next 20-30 years and never pays out a thing. CHA-CHING! Then they turn right around and send you a reminder notice that you are about to live past your term, you are now 20-30 years older which means all your life premiums just went through the roof for you to acquire again. What was once a $20.00 per month policy is now a $50 or $100 dollar per month policy for the same death benefit.
WHO NEEDS IT?: Essentially any person who has people in their lives who count on them for something is in need of some form of additional term life insurance. Parents, relatives, spouses, and home owners all have either certain financial responsibilities or desires to someone else...at least for a time period. That time period is where term comes in and sets up a chance to get more financial gain to the beneficiary at a time that has been determined to be more important and more crucial than at other times.
WRAP UP: At some point in everyone's life, term life insurance is a necessity. To be able to leave behind the financial hopes, dreams, and/or responsibilities in the event of an untimely death is a huge benefit. A mom or a dad can insure a college education, that first car, paying off the home so loved ones can still live in it, the son or daughter who wants to be sure an aged parent continues to have quality care...the list goes on and most of us will have a block of time where we are at the greatest risk. Term life is there to help. It is not the only means if insuring your life or the expenses you might leave behind, however.
The next type I will discuss is a permanent life policy.

2 - Permanent Life Insurance - Permanent life insurance is still being left to a beneficiary, but this is the stuff that stays with you long into life and will most likely be the type of life insurance you pass away with...if you planned ahead and planned early. The biggest benefit of permanent life insurance is the locked rate based on age and health at the time coverage was issued. In other words, you get this when you are young and you are not penalized for getting older, and sicker, or just succumbing to the things that happen in life as we age. Permanent life looks at each person and reminds us that we will all pass away at some point. That is unavoidable. Whether we die now or when we are in our 90s or more remains to be seen, but permanent types of life insurance will be there for us throughout and will assist our families with the final expenses associated with our final day.
THE GOOD: My own example is the best one I can come up with to show the need for considering this life insurance. When I was but 2-years-old, my dad bought a small whole life insurance policy on me. When I turned 3, I was diagnosed with a kidney disorder. Now, I went until I was 16 with this issue and was medicated for it for most of my growing years. When I became an adult, my dad signed the policy over to me and told me about it. It wasn't a large policy, but it was enough for final expenses and it had actually grown over time (I'll explain this in a moment). I paid on that policy every month from that day. It was the same premium as my dad had started off with when I was 2, so it was affordable and useful. I found out exactly how useful when I attempted to get my own life insurance after I had gotten married. Because of my medical history, I was a higher risk and many companies would not even consider me for larger amounts of coverage. It's the sad fact of life insurance...if you are too risky for their big "GOTCHA" on term, you just don't get it or they ramp your rates up so high it gets ridiculous. The end of the story is this...with my dad's thinking on this when I was young, I will always have a policy I know will be there and will remove the concern of final expenses from my family's mind because I have that covered. At $13.00 a month, that's a reasonable amount to pay for piece of mind, don't you think?
Now, I mentioned this policy had "grown" over time. Another good part of these types of policies is the cash value that accumulates over the length of the policy. This money can be withdrawn, reinvested, or in some cases it adds to the face value of the death benefit (like in my case). Since it will not get cheaper to bury people, the fact that it continues to grow is a nice option that tells me that I am also planning for a long and healthy life without having to worry about if what I got when I was 2 will be enough when I am 90. Since it grows each year, I know I've left enough for my family for that final day and that funeral home bill.
THE "BAD": While my scenario makes sense, so many people have gone years without any form of life insurance. They may have health conditions now or their rate to acquire permanent life insurance may be out of their budget. Permanent life insurance is always more expensive on the front end (or at least it seems that way). If you did a comparison of premium cost between term and permanent life insurance, the permanent life would be almost 4 times more than what term would be (depending on age of acquiring it).
Many financial advisors will also tell you to take the difference in premiums between term and permanent and invest that money so that at the end of the term policy, you have your own life insurance money set aside. This is a great plan, but requires discipline on the individual's part to make that happen. It does make sense and would save someone quite a bit in terms of premium dollars over time.
WHO NEEDS IT?: In my opinion, life insurance is the only kind of insurance guaranteed to pay someone something at some point. You can have all the car insurance, or home owner's insurance, or whatever and never have a claim paid. Death is guaranteed and if you hold life insurance at your death, it's guaranteed to pay as well. So to answer the question...we all need it. Obviously, the earlier the better is the best way to plan but the key is that on your last day there is something there to pay for the final expenses that will be expected to be paid to a funeral home for your final resting place. It's expensive to die, and you are the only person who can really help cover that cost so your family does not have to. I can't imagine paying back a loan for a funeral. I would just as soon not be reminded of my loss every month for the next 5-10 years.
If you live to a ripe old age, this policy is for you. If you are a single 20-something with very little debt or responsibility right now, this policy is for you. If you are getting term insurance at the beginning of a life with others around you counting on you, this policy is for you.
This type of policy can also be for the person who was not able to set aside their own funds each month for their own life insurance and now they have some health issues or just need enough to be buried with. Many times a permanent policy goes easy on the underwriting requirements. In some cases it's as easy to acquire as signing your name. I'm not a fan of people waiting that long and it can be expensive, but it's good to know that the option is there.
WRAP UP: Unless I'm super devoted to a financial plan and I have enough funds to put aside for my own life insurance AND I have no unforeseen issues in 20-30 years that will require large sums of money I may have squirreled away, then acquiring permanent life insurance as early as I possibly can will help me and my loved ones know that if nothing else, the final expenses of this life are covered.

I hope this has helped as you continue to search for the best way to protect you and your family. There are hybrids and options to life insurance policies, but these are the main two to consider.

If I can be of any assistance in any sort of advisory capacity, I am always available at 205-370-8453 or you can email me at gene@generamsay.com.


PS - I usually leave a video of some kind at the end dealing with the post I have just written. This one is a little tough to do that with, so no video for this one.

Life Myth Busted: Size DOES Matter To Women

Those of you who know me are probably dying to know what this blog post is about based on the title I gave it. I had to get your attention. What I am about to say is important to everyone who opened this blog post. The first thing I have to do is amend the title right here.  It should read, "Life Myth Busted: Size DOES Matter to Women...and everyone else in your life."

The key phrase is "Life Myth Busted" because I am indeed going to break down something I am VERY passionate about and that's life insurance. For those of you who are suddenly looking for the X in the upper corner, hear me out and let me get this information out to you so at least I know you can go from today on being informed and letting me do what I love...help people.

In the last few months, I have had at least 4 death claims pass across my desk. I am always saddened when I see them. A life has been lost and that's a harsh reality. Do you want to know what's even harsher? Not having any life insurance for the family or not having ENOUGH life insurance to leave behind for little more than a dug hole and pine box. I have heard the phrase, "I had not idea that they..." You can finish the sentence with "I had no idea that they...didn't have any life insurance" OR "I had not idea that they...let their life insurance expire" OR "I had no idea that they...only had a $5,000 burial policy".

No offense here, but the deceased could care less how you pay for their funeral or their final expenses. It's no longer their issue. They left it with you. If you are reading this and this has happened, you've probably looked at a photo of the deceased and said out loud, "Thanks for that." Passing away is a costly proposition and it does not just end with a funeral. Bills, taxes, mortgages, investments...they all add up to a dollar amount and without enough the project of getting it all worked out when the loved one has passed away just became a BIG bill.

The reason why I specifically mentioned "women" in the title is to not only get your attention, but to remind all the "invincible" men out there that those spouses and loved ones you leave behind need you to be responsible men and be sure that you leave them with more than enough to keep going.

TRUE STORY: I was speaking with a client years ago. He was a man in his late 40's with a wife and 3 little girls. He came to me for a benefits counseling session at his work. As we talked about life insurance I noted how his demeanor changed and he got kind of surly when he said, "I'm not getting any life insurance because I don't want some other guy sitting in my easy chair." My response to him was just about as blunt when I said, "Without some sort of financial protection for your wife and girls, you don't give them any other choice." He considered my statement carefully before declining the life insurance. He died 6 months later in a motor cycle accident.

My final encouragement to men...and women...is to be sure you have "done the math" as to what amount of life insurance will help get your family through financially after you are gone. No one wants to lose a loved one, but to lose a loved one...and a house...and the ability to feed and clothe children...and a way of life is MUCH more devastating because it's a constant reminder.

With life insure, I encourage everyone reading this to consider the following:

1 - AMOUNT. The fact that your employer pays for a $15,000 policy for you is a nice benefit, but in today's world it barely gets the funeral set. This is where "size does matter" so be sure it fits the needs of everyone you would leave behind. No one wants to be paying for your burial for 5 years on a payment plan.

2 - TYPE: Each person is different in terms of need, but it's not that difficult to figure out what you need for NOW. As life moves on you can adjust as needed. There are about 3 basic life policies out there to concern yourself with on a starting basis. Consult with a life insurance adviser to find the type of policy that is right for you.

3 - WHO/WHAT: All life insurance needs a beneficiary. This is the person who gets the funds so that things can be handled properly and in order when you are gone. Whoever or whatever you choose to leave this money to is the one you select to shut down the final pages of your life here on Earth. Choose wisely and adjust as needed.

4 - BUDGET: This sort of goes with the type you pick because what you can spend might be limited. The good news is there are decent policies out there for as little as $10.00 a month for $50,000 of death benefit (depending on how long you wait to get it). Financial advisers will advise one way and some even put you on the right path. However, insurance agents get licensed for a reason and we take our state exam for a reason. WE are the ones who deal in life insurance. Try not to get your banker and us confused.

My next blog will be to discuss the different types of life insurance and basically how they work and who might benefit from considering the different options.

In the meantime, do your homework. Figure out what you have now and what you need. Again, if you are reading this, this applies to you. No one is exempt (unless of course you have a bursting bank account with enough to be buried in your own pyramid in Egypt...then you're good).

What some advice? I'm available via email (gene@generamsay.com), this blog (comments section or email), facebook (Gene Ramsay - The Insurance Man), Twitter (Gene_Ramsay), and text (205-370-8453). I get texts from my trumpet students, friends and family...so why not you? I'd be more than happy to field your questions in whatever way is comfortable for you. People always seem to have "a guy" for everything. I can be your "Bugling Benefits Guy"...if you'll let me.

If you want to hear about it from comedienne Molly Shannon, here she is talking about what you just read:

If you prefer to hear from the Cake Boss himself on the subject, here you go:

It Can Be Too Late

The month of May is Disability Awareness Month. As I think on the month, I am reminded of the countless individuals I discuss disability insurance with. I explain all the benefits and all the needs as well as examples of people who have been able to survive through a tough time by having this type of coverage. Now, I realize that even the best of situations people will only half listen and tell me they are "not interested" or that they will "think about it" or even "do it later". Basically these people are the ones who believe they will actually have the time to make that decision.

Then something happens. One of those people invariably has an issue come up. A surprise surgery or pregnancy or an accident happens that puts them out of work for over a month. Then I get the phone call asking me if they can enroll now and have the disability policy help them. I wish insurance worked like that, but I have to tell them that they can still get the policy but it won't help with their current situation. These are the people who told themselves that, "It's never too late." Unfortunately for those people it's too late. In fact, in some cases they can't even be considered for disability insurance again until one year passes of consistently being back at work before we can consider this process again.

You see, the phrase, "It's never too late" is a great mantra for some things like traveling the far away places, sky diving, learning a musical instrument or taking a cooking class, but not insurance. There is a point and time where an ability to acquire coverage can be hindered because of various reasons. Policies like these are not just revolving doors we can hop on any time we feel we need it. It would be like getting home insurance after the tree has fallen in our living room. It's just not going to happen that way and be of any help.

Not only does this apply to disability insurance, but also for other voluntary insurance policies like critical illness (heart attack, stroke, renal failure, etc), long term care, cancer, and the obvious life insurance.
So,, what are some things that can make it too late for certain insurance coverage? Let's take a look:

1 - Contracting an illness. Now, this illness can be anything from diabetes to heart conditions and high cholesterol to cancer and the like. Many times these illnesses are initial questions on an application to acquire insurance of some kind. If you are honest and admit to these items that you have, your underwriting window gets smaller and smaller with each one until your ability to acquire coverage goes away.
2 - Having had health issues in the past. Obviously going through health issues presently has it's disadvantages but even things you dealt with in your past can have a negative impact on your ability to get certain insurance. Many times policies have a time frame in which you could have dealt with something and be considered healthy enough to consider coverage, but all that time in between can creep up on you and keep you from ever getting the coverage to help yourself and your family.
3 - Getting older. It may seem like insurance is being age-biased, but the reality is that the older we get the more likely we are to have those go wrong in our bodies. When they do happen, the body also takes longer to recover and in some cases it never gets back to a healthy state again. State run nursing facilities are filled with people who tried to live by the "It's never too late" mantra. To walk into those facilities at times is sad, to say the least.
4 - Death. This one is the no-brainer, but it needs mentioning because so many people pass this one by...especially when they are younger and they feel invincible. I tell people and groups every day that there is no discount for the casket if they are younger. Funerals and the expenses of our final days are costly. How much? As of now, anywhere between $6,000 and $15,000 dollars depending on the situation. The point is that this is the ultimate "It can be too late" example. Without proper coverage, those we leave behind are stuck being reminded of a sad day until the bill gets paid because someone decided they could wait.
Those of you who know me know that I am not a "doom and gloom" guy. However, I believe in taking care of myself and especially those around me. My family needs me to make the smart decisions so that IF the time comes to help me out because I have fallen ill or passed away, they know the financial burden has been lifted because I took care of it before.

Do you have a need to fill a gap in coverage in your life or the lives of someone you love? Is there enough of the right insurance for your family to take care of you for the "just in case"? It can be too late for some people. Don't fall into that category.

I'm always a phone call/text (205-370-8453) or an email (gene@generamsay.com) away.