Modify or Repeal...What's the Best Road?

In this time of uncertainty over health care reform, we have seen some substantial changes. No one really knew what to expect as lawmakers themselves admitted that they wouldn't be able to tell the full impact until the law was in place and rolling right along. 
Within the landscape of all of this, we see many people being helped by the new laws. These are the people who needed health insurance. The aged and the chronically ill were no longer being told "no" and they are now getting the proper care they need to either get better or at least deal better with the issues they face. Children are now getting the care they need within the plans being offered. Children being able to have their teeth taken care of and/or get their eyes checked regularly. (There is nothing in place to help the obesity problem in our country, but that's for another blog).
Since the law went into effect, we see so many people seeing the flaws in the process. Everything from out of sight premiums to their primary care physician no longer in the mysterious "network" within the public exchange plans being offered. When flaws show their ugly heads, everyone has a way to "fix it". Many in Washington, DC are still fighting for repeal of the whole thing. They are still saying, "It's not too late". Other are saying it's fine but that some things should change and adjust to make it better. Who is on the right track? What will make this process best for everyone? Well, let's look at both sides and then you can decide.

REPEAL IT! Those who shout "repeal" are wanting to scrap the whole thing and make it their own. I can think of millions who signed up because they needed proper care for health concerns and before the law came into effect, their pre-existing condition kept them from that. Sure, they could get seen and treated if it was a severe accident/emergency, but we're talking about an illness that could slowly kill them over time without treatment. What would a repeal do for those people? I'd like to think I look at everyone when it comes to making sweeping decisions. I'm certain that one of the reasons the ACA came into effect is for these people and it is helping them. I don't want to think that those people would be negatively impacted by a full on repeal of the law. A full repeal would effect others as well, but that's what we have to consider (in my opinion) when we talk about scrapping a plan and starting over. However, you want to start a repeal process? SOAP BOX...Stop calling it "Obamacare". That's not what it is. It's PPACA, which is short for the Patient Protection and Affordable Care Act.

FIX IT! Have you ever had a car start "acting funny" on you? You're not sure what's wrong but you know something is. So, you take it to the mechanic and they run some tests and diagnostics to see if they can pinpoint the issue and fix it. The ACA "fix" option is kind of like that car. It has so many working parts and I'm sure we all have our particular thing we'd like to see adjusted. Fixing it could be the better option (SOAP BOX...let's PLEASE stop calling it "Obamacare". That's not what it is. As far as "fixing it" goes, let's start there. OFF SOAP BOX). The shell itself is in place. We've got the framework for something special that could be amazing for millions and now we need to find ways to make this as painless as possible. The biggest issues you hear are certain doctors not being in the network of the public exchanges, premiums are too high, medications are not part of the plans, and the fines and fees associated with being required to have health insurance that meets the guidelines set out by the government. Do I have answers to all these things? No. Are there people out there who could put some great ideas on the table to consider what options there are in fixing some of these things? Yes. Maybe even you and me.

At the end of the day I see a "fix" mentality being a better idea for everyone. So many people, including myself, have had to adjust how they do things because of the requirements of the law. Business owners, individuals, insurance carriers, and even the government entities like the Department of Labor and the IRS. I'd like to believe that in the end we all would like something we can be proud of and know that it is helping people in the right way fro them without being a burden on those who may not need it or are fine with just having "the basics" met for them.

The key for you is to be sure you have people around you and that you can contact to help you as things change (and they will change). You will need to be informed and keeping up on your own may not be in your job description. That's where people like myself come in. I stay informed so that when you have a question about your health plan situation, I can be there to help and guide. I don't want to see anyone struggle with this process. That's why with my colleagues and self-study on what's going on with this every day I know we can (at least) keep people aware and informed and be there when others need us.

If you need some options and answers now, I am a phone call/text away (205-370-8453) or you can email me at gene@generamsay.com.

Top image comes from here.
PPACA image comes from here.

Am I Really That Scary?

Well, not me per say, but what I do.

Since taking on a leadership and recruiting/training role with my main insurance carrier I do business with, I have scheduled interview after interview. I've talked and emailed with countless people and the percentage of people that actually step up to be a part of an amazing industry and process is very small.

Now, in hindsight, I don't really want every person I talk with to join my team. There needs to be a desire to do things for others and there should be a connection with me and the business integrity I attempt to implement in my business. Many people don't hold that same value and I'm glad I see that early on and we are able to part ways on good terms. However, the people that seem solid and ready to go and who say, "This sounds amazing" and then they disappear? What's up?

So, for all the people out there looking to do something for yourself, make the kind of living you'd like to based on the effort you are willing to put forth all while helping people protect themselves and their families...here's where I put the cards on the table and let you see three great things and three challenges to what I do every single day. I've been doing this over 5 years and still wake up each morning hoping to make a positive difference in people's lives. Whether it be with some much needed insurance benefits, helping a company owner make some tough decisions, or  I'm interacting with a person looking to join me in these endeavors and make a living for themselves they can call their own. Here's what it's all about and it's all about what angle you're looking at it all from:

CHALLENGES:

1 - You earn what you make. An early question I get asked is, "What can I make?" or "What does it pay?". I get that. I was that way when I started down this road. What I am offering is a commission only job. Those words scared me and I'm sure they can scare anyone looking to make money who have never looked in this direction. However, I jumped into this business on faith and I wake up every day doing the same. I know that if I don't make positive moves toward reaching out to other potential clients, servicing existing clients, and planning my own day as carefully as I can that I run the risk of making nothing at all in a given week.

2 - You will meet new people every day. Whether it's by phone or email or walking in a door, you will be meeting new people every day and you will be talking to them about things they can do to protect themselves and their family. You will be offering solutions, options, and answers to people who may or may not be interested in what you have to say or offer. Those new people say "No" and "Not today" and "Call me back later" all the time. It's the part of the game that can be frustrating. Sometimes just the thought of having to be confident in front of a stranger can be intimidating.

3 - It's got your name on it. So many times a person goes to work for a company. Things are all about "company policy" and what others are telling you to do. That's not the case in this business. You are your own boss. You are your business and  brand. You mess up, it's got your name all over it and that frightens people. I understand that. There will be days that you will soar and other days you can't do anything right and you want everyone you know to forget your phone number and email address. You will become what you make yourself to be and no one will just pay you for "trying".

AWESOMENESS:

1 - You earn what you make. With all the challenges in this business, when you get a "Yes" from a potential client and you start that process of changing lives and advising and becoming something to those people you are helping, it means the world. Guess what...you also get paid to do that. How much depends on the job you do and the team you surround yourself with, but some days you'll think about it and think, "Wow, I just made $100.00 an hour" (for example). Take that with the good feelings of helping others do right by themselves and family and you get something you can't make up. The key to succeeding in this business is believing enough in what you do and offer that each day is a new opportunity to change lives...including your own, for the better.

2 - You will meet new people every day. People and connections is what makes this world and being human so amazing. Even people looking at the 4 walls of a cubicle have interactions with others and it's sometimes the high point of their day. The best news is you are hunting constantly for new people to meet with, talk to, and help each and every day you choose to. Now, as with any single person they have a right to like what you have to say and they have a right not to. It's the way the world works. Getting more "No" than "Yes" can start to hurt if you let it. The good news is, you can rest on the fact that what you do has effected millions in a positive way each day and you get the opportunity to do that. Without people, no one gets anywhere. Think about this...even the person in the cubicle needs people to make a living. No one gets anywhere or makes a dime without someone else. It's just not possible any other way.

3 - It's got your name on it. When people join my team, the first weeks are all about learning and growing and understanding the business and the product. It's about getting comfortable with sales calls and visits and finding a groove that suits them. Once they are ready to head out on their own, it's all them. Sure, I'm still a part of the process but I'm in a support role and leadership position to help when things get tough or when assistance is needed. Anyone who joins my team works WITH me...not FOR me. Big difference and it's a good thing. I want people to build something for themselves no matter what direction my life takes. The good news is, in this industry you can make it whatever you want or need it to be.

So, who is ready? Who has what it takes to stop living for a paycheck and work to make a living equal to the work you are willing to put in? Are you a good candidate to contact me? One phone call and one interview will tell you. The next step is yours...and the next...and the next. Each day, one more step and one more opportunity to serve others and make a positive difference in people's lives.

Not working right now? Looking for a "job"? Contact me at 205-370-8453 (text or call) or email me (gene@generamsay.com) and let's talk.

It's only scary if your perspective is wrong.

Please don't be afraid to fail. Join with me and make a difference in the lives of others, and your life too:

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.