April 2016

Vaccinations are designed to prevent disease and protect people. Essentially, it’s a shot that introduces a killed or weakened form of a disease into your body. In response, your body builds immunity to that disease. The next time you’re exposed to the real disease, your body fights it off and you don’t get sick.

Health insurance typically covers vaccines, and your insurance company may even send you a reminder when you or your child is due for his or her next shots. Here are several reasons why vaccinations are important.

Protects Your Kids

Diseases like polio, pertussis (whooping cough), measles, diphtheria, rubella (German measles), mumps, smallpox, rotavirus, Haemophilus influenzae type b (Hib) and tetanus are all deadly. They are also prevented by vaccination. By following the recommended vaccination schedule as outlined by the Centers for Disease Control and Prevention, you protect your kids from hearing loss, paralysis, amputation, convulsions, brain damage and death, all health effects of the diseases vaccines prevent.

Protect Other People

Immunizations protect other kids and keep your community healthy. When your kids aren’t vaccinated, they can carry diseases to other people. Babies who are too young for immunizations and anyone with a compromised immunity, including cancer patients or elderly people, could contract a life-threatening disease when they’re exposed to someone who is not vaccinated.

Stop Outbreaks of Preventable Disease

A preventable disease could be eradicated in your area but may be thriving in another part of the world. Travel the globe or be exposed to a world traveler, and you or your unvaccinated child could carry or contract a disease. By getting regular vaccinations, you potentially curb outbreaks and stop the spread of diseases.

Vaccinations are Safe

Several controversies surround vaccinations, and you may be afraid that your kids will get a serious health challenge if you vaccinate them. Actually, vaccinations undergo intense testing and review by doctors, scientists and the federal government before they’re approved. The immunizations you and your children receive are safe.

Vaccinations are Recommended by Professionals

Doctor and scientists at the American Academy of Family Physicians, American Academy of Pediatrics and Centers for Disease Control and Prevention all recommend vaccinations. These men and women strongly support the protective qualities of immunizations.

Vaccines Save Money

By getting vaccinated, your kids are less likely to contract diseases. Better health means fewer visits to the doctor, less medications and bigger savings on health care.

Much controversy surrounds vaccinations, so do your research as you decide if they’re right for your kids. Ask your insurance agent, too, for a list of recommended vaccines for kids and adults.

The Affordable Care Act, also known as Obamacare, mandates that most Americans purchase health insurance. Because the coverage can be expensive, some families and individuals choose to join a medical cost sharing group. Discover the benefits and risks of this type of service before you sign up.

How Does Medical Cost Sharing Work?

Purchase a regular health insurance policy, and essentially the premiums you pay are used by everyone who’s insured with the same company. You pay the same premiums as everyone else whether you need frequent medical treatment or not. In this arrangement, someone who follows an unhealthy lifestyle receives more benefits that someone who doesn’t smoke, drink, do illegal drugs or engage in other risky behaviors.

Medical cost sharing is similar to regular health insurance. A group of people join together to share each other’s healthcare costs. The group could be united by shared religious beliefs, geographic location, lifestyle choices or a desire to save money. One big difference is that members of a medical cost sharing group abstain from unhealthy behaviors. Their decision to abstain from tobacco, alcohol, illegal drugs and risky behaviors keeps costs low and allows the medical cost sharing concept to work.

Every month, members pay the suggested fee that’s deposited into a dedicated account. When a member needs medical treatment, payment is made from the shared account. Instead of supporting strangers, members of the medical cost sharing group band together to take care of each other.

Benefits of Medical Cost Sharing

Because a healthy lifestyle sits at the core of medical cost sharing, most members are in great health. They’re already saving money because they don’t need expensive medications or frequent doctor visits, and the savings grow thanks to the concept of medical cost sharing. Many medical cost sharing programs are also exempt from the Affordable Care Act, which means members will not be fined for not purchasing federal mandated coverage.

Risks of Medical Cost Sharing

While medical cost sharing is affordable, it may be challenging to find a group of people who are committed to health. The idea is often found primarily in religious groups where the members’ beliefs already dictate that they follow a healthy lifestyle. Once you do find a group, it can be difficult to know when someone decides to take up an unhealthy habit or when someone needs to be removed.

Before you purchase health insurance, check into medical cost sharing options. You can also discuss your needs with your insurance agent as you find health insurance coverage for you and your family.

Everyone faces emergencies sometimes. Maybe a large home repair, job loss or other unexpected expense has made you miss a life insurance payment. The consequences of skipping a life insurance payment depend on the policy type, coverage, and terms and conditions. Here’s what you can do if you can’t pay your premiums.

Non-Payment of Term Life Insurance

When you purchased your term life insurance policy, you chose a payment frequency. Miss a payment, and you normally have a grace period of 30 days during which the death benefit will be paid to your beneficiary if you were to die. Pay the missed premium during the grace period, and your policy will be reinstated.

If you don’t pay within the grace period, your policy will be cancelled. Call the company if you pay bi-annually or annually and request a refund on the unused premiums which you already paid.

You can usually ask your company to reinstate the policy within five years of it being cancelled. Typically, you’ll need to complete the application again, undergo another paramedical exam and prove that you’re in good health. Premiums that went unpaid since the policy lapsed will also need to be paid before the coverage becomes effective.

Purchase a new policy. Even though you left one insurance policy lapse, shop around for another policy that may be cheaper.

Non-Payment of Permanent Life Insurance

If you can’t pay the premium on your permanent life insurance policy, you could cash out the policy and collect any accrued cash value. In this case, you would pay income tax on the payout if it’s more than the premiums you paid. Your policy also becomes void.
Another option is to reduce the death benefit and lose any cash savings. You’ll still be covered by your policy despite its reduced value.

Your insurance agent can help you convert your permanent policy into an extended term policy. The time period for this option depends
on how much savings your permanent policy has accrued.

Finally, ask if your lapsed policy can be reinstated. Because every company is different, check your policy for details on whether this is an option for you or not.

When you find yourself falling behind on life insurance payments, contact your insurance agent immediately. Share your situation and ask for options. By making sure you’re protected by a life insurance policy, you have peace of mind and care for your loved ones.

Buying life insurance is an important decision you make for yourself and your loved ones. The agent from whom you buy a policy plays a large role in helping you buy the right policy for your needs. Learn how to choose a life insurance agent as you prepare for your family’s future.

State Licensed

Your state’s insurance department issues licenses to life insurance agents who demonstrate that they understand insurance and are committed to a code of ethics. Select a licensed agent to ensure you deal with one who’s knowledgeable and permitted by law to issue you a policy.

Willing to Listen

You deserve a life insurance agent who will listen to you. He or she should take time to understand your financial situation, income, assets, attitude toward risk and personal situation. With this information, the agent can recommend products that work for you instead of selling something you don’t want or need.

Explains the Details

Life insurance lingo can be complicated. A good agent can explain all the details, including the difference between a term and whole life policy, so that you understand exactly what your options are.

No Pressure

You should never buy a policy from a pushy agent. Of course it’s a wise investment, but the choice of what insurance you buy and when you buy it should be one you make after careful consideration, not because you were pushed.

Provides Written Documentation

After you meet with an agent, he or she should prepare a personalized written document specifically for you. It will outline your current financial situation, personal needs and life insurance options. You can review that document as you determine which policy meets your needs. If the agent is unwilling to provide this documentation, look elsewhere for help.

Fair Compensation

Most life insurance agents are paid a commission on the policies they sell, but a few earn income from fees associated with the policies they sell. Understand the agent’s compensation plan to ensure you’re receiving a fair product recommendation and only the products you need.

Communicates Regularly

Life insurance isn’t something you can purchase and forget about. Your circumstances, family size, income or health may change and prompt you to select a different type or quantity of coverage. Select an agent who is committed to keeping in touch and checking on you at least once a year to see if your needs have changed. Every three years, your agent should sit down with you, review your policy and ensure you still have the coverage that’s best for you.

When you’re ready to purchase life insurance, carefully select an agent. Use this list to help you choose one who’s right for you.