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The Challenge Of Losing Your Income

November 25, 2019

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Kevin Kiefer

Kevin Kiefer

Insurance Representative

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Pottsville, PA 17901

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Who Can Be My Life Insurance Beneficiary?

Who Can Be My Life Insurance Beneficiary?

Do you have a recipient in mind for the proceeds of your life insurance policy?

Many people have someone in mind before they purchase their policy. This person or entity can be named as your beneficiary. Naming your life insurance beneficiary helps to ensure that the party you choose gets the proceeds of your life insurance policy, even if your will leaves your estate to someone else. If you’ve decided that you want to provide for a special person or organization through your life insurance policy, it’s important that the beneficiary section will do what you expect.

Here are some simple tips that can help point you in the right direction:

Choosing Your Life Insurance Beneficiary
Who you name as your beneficiary is a deeply personal decision, and there’s no right or wrong answer. Here are some areas to consider:

  • Family: Spouses, children, siblings, and parents: These are all very common choices as life insurance beneficiaries. However, children under the age of 18 are a special case. Life insurance companies won’t pay a death benefit to a minor, so you may want to set up a trust for the child’s benefit or choose a responsible adult whom you trust with the welfare of your child. This adult would be named as their guardian.
  • Legal guardian: If your life insurance policy does name a minor as your beneficiary, it may be a good idea to name a legal guardian for the child.
  • Trusts: You can name a trust as your life insurance beneficiary, and trusts are helpful, for instance, when naming a minor, pet, or someone who may not be great with handling their finances as a beneficiary.
  • Friends, etc: You can also name a friend as a beneficiary – assuming your friend isn’t a minor, in which case you can name a legal guardian or trust for the minor.

Note: Contrary to popular belief, you can’t name a pet as your beneficiary — but you can name a trust on behalf of your pet. (Sorry, Fluffy.)

Multiple Beneficiaries and Contingent Beneficiaries
You can name multiple beneficiaries for your life insurance policy, but when doing this, it may be beneficial to use percentages rather than fixed dollar amounts. For permanent life insurance policies, like whole life insurance and universal life insurance, the death benefit payout amount can change over time, making percentages a better strategy for multiple beneficiaries.

You can also name contingent beneficiaries. Think of a contingent beneficiary as a back-up beneficiary. In the event that your primary beneficiary passes before you do (or at the same time), the proceeds of your policy would then go to the contingent beneficiary.

Final Thoughts
Avoid using general designations, such as “spouse” or “children” as your beneficiary. Spouses can change, as divorce statistics remind us, and you never know which long-lost “children” might appear if there’s a chance of a payday from your life insurance policy. In the very best case, general designations will cause delays in payment to your intended beneficiaries.

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Why you need an insurance review

Why you need an insurance review
February 27, 2019

Insurance is intended to protect your assets and to help cover certain risks.

Policies may have standardized language, but each insurance policy should be tailored to your needs at the time the policy is purchased.

A lot can change in a short amount of time – so an annual insurance review is a good habit to develop to help ensure your coverage still addresses your needs.

Life changes, and then changes again, and again
There are some obvious reasons to review your life insurance coverage, like if you’re getting married or having a baby – but there are also some less obvious reasons that may change your coverage requirements, like changing jobs or experiencing a significant change in income.

Here are some of the reasons you might consider adjusting your coverage:

  • You got married
  • You got divorced
  • You started a family
  • Your income changed
  • Your health improved
  • You lost weight or quit smoking
  • You bought a house
  • You paid off your house
  • You started a business
  • You borrowed money
  • You retired

Depending on what has changed, it may be time to increase or decrease your coverage, change to a different type of life insurance, reallocate assets, or update your retirement strategy.

Have you updated your beneficiaries?
Did you get married or divorced? Did you start a family? It’s time to update your beneficiaries. Life can change quickly. One thing that can happen is that policyholders may forget to update the beneficiaries for their policies. A beneficiary is the person or persons who will receive the death benefit from your life insurance policy. If there is a life insurance claim, the insurance company must follow the instructions you give when you assign beneficiaries – even if your intent may have been that someone else should be the beneficiary now. Fortunately, this can be remedied.

How long has it been since you purchased your life insurance policy? How long has it been since your last insurance review? What has changed in your life since the last time you reviewed your policies?

Your insurance needs may have changed, so now is the time to make sure you have the coverage you need.

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115549

Travel Insurance: What to know before you go

Travel Insurance: What to know before you go
December 12, 2018

Postcard-worthy sunsets. Fascinating cultures and customs.

Exotic people and maybe a new language to learn – at least enough to order food, pay for souvenirs, and find the nearest bathroom.

Travel can leave us with amazing memories and cause us to grow simply by being exposed to different ways of seeing the world. However, going far from home can be fraught with peril – much of which we may not consider when daydreaming about our trip. Travel insurance has the potential to provide protection if the daydream turns into a nightmare in a number of ways.[i]

An auto or life insurance policy is designed to provide a limited set of coverages, making the policies fairly easy to understand. Travel insurance, by comparison, can cover a wide range of unrelated risks, making the coverage and its exclusions a bit more difficult to follow. Depending on your travel insurance provider, your travel insurance may cover just a few risks or a wide gamut of potential mishaps.

So how do you know what kind of travel insurance you should purchase? Read on…

Trip Cancellation Insurance
One of the most basic and most commonly available coverage options, trip cancellation insurance can provide coverage to reimburse you if you are unable to take your trip due to a number of possible reasons, including sickness or a death in the family. Cancellations for reasons such as a cruise line going bust or your tour operator going out of business may also be covered. Additionally, if you or a member of your party becomes ill during the trip, trip cancellation insurance may reimburse you for the unused portion of the trip. Some trips you book will allow cancellation with full reimbursement (within a certain timeframe) for any reason, whereas some trips only allow reimbursement for medical or other specific reasons – make sure you check the travel policy for any limitations before you purchase it.

Baggage Insurance
Your travel daydreams probably don’t include lost baggage or theft of personal items while abroad – but it happens to travelers every day. Baggage insurance is another common coverage found bundled with travel insurance that provides protection for your belongings while traveling. If you already have a homeowners insurance or renters insurance policy, it’s likely that you already have this coverage in place. As a caveat, homeowners insurance and renters insurance policies typically limit the coverage for certain types of items, like jewelry, and may only pay a reduced amount for other items. Home insurance policies also have a deductible – typically $1,000 or more – that should be considered when deciding if you should purchase baggage insurance with your travel insurance.

Emergency Medical Coverage
Many people aren’t sure if their health insurance will cover them internationally – you may want to check if your policy protects you outside of the country. Accidents, illness, and other conditions that require medical assistance are border-blind and can happen anywhere, which may leave you scrambling to arrange and pay for medical attention that could be needed by you or your family. Travel health insurance can cover you in these instances and is often available as a stand-alone policy or bundled as part of a travel insurance package.

Accidental Death Coverage
Often bundled as a tag-along coverage with travel health insurance, accidental death coverage provides a limited benefit for accidental death while traveling. If you already have a life insurance policy, accidental death coverage may not be needed. Check your current policy to see if you have fewer limitations and if it provide a higher death benefit for your named beneficiaries or loved ones before you buy additional coverage.

Other Travel Coverages
A number of other options are often offered as part of travel insurance packages, including missed connection coverage, travel delay coverage, and traveler assistance. Another coverage option to consider is collision and comprehensive coverage for rented cars. Car accidents are among the leading types of mishaps when traveling. A personal car insurance policy may not cover you for vehicle damage, liability, or medical expenses when traveling abroad.

When you’re ready to cross the Seven Wonders of the Modern World off your bucket list, consider travel insurance. It may provide some relief so you can concentrate on the important things, like making sure you bring the right foreign plug adapter for your hair dryer.

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[i] https://www.iii.org/article/should-you-buy-travel-insurance

111027

She Got the House… AND the Life Insurance Policy?

She Got the House… AND the Life Insurance Policy?

Life insurance is great for protecting your spouse… as long as it’s for your current one.

This Forbes article tells the story of Warren Hillman, a man with a life insurance policy, a wife, and an ex-wife.

Now, I don’t know if the former Mrs. Hillman “got the house” in her divorce from Warren – I’m being cheeky – but she definitely got the life insurance policy payout! When Warren died from a rare form of leukemia, the entire amount of $124,558.03 was given to Judy, the former Mrs. Hillman. Warren’s widow Maretta got nothing.

Why? When Warren remarried, he never changed the beneficiary designation on his life insurance policy.

Maretta and Judy fought over that money in court for years. The case went all the way to the Supreme Court. And the justices ruled in Judy’s favor. She, the ex-wife, was entitled to the entire payout.

All that time and money wasted on legal battles could have been avoided by changing a name on a form! Speaking of which… When’s the last time you reviewed your own life insurance policy? After reading this, you may already be scrambling through your files to find it!

Let’s check up on your policy together. Contact me today, and we can get the ball rolling.

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Read More at Forbes

Life Insurance: Before or After Baby?

Life Insurance: Before or After Baby?

Many people get life insurance after one of life’s big milestones:

  • Getting married
  • Buying a house
  • Loss of a loved one
  • The birth of a baby

And while you can get life insurance after your baby is born or even while the baby is in utero (depending on the provider), the best practice is to go ahead and get life insurance before you begin having children, before they’re even a twinkle in their mother’s eye.

A reason to go ahead and get life insurance before a new addition to the family?

Pregnancies can cause complications for the mother – for both her own health and the initial medical exam for a policy. Red flags for insurance providers include:

  • Preeclampsia (occurs in 5-10% of all pregnancies)
  • Gestational Diabetes Mellitus (affects 9.2% of women)
  • High cholesterol (rises during pregnancy and breastfeeding)
  • A C-section (accounts for 32% of all deliveries)

Also, the advantage of youth is a great reason to go ahead and get life insurance – for both the mother and father.

The younger and healthier you are, the easier it is for you to get life insurance with lower premiums. It’s a great way to prepare for a baby: establishing a policy that will keep them shielded from the financial burden of an unexpected and traumatic life event.

Whether you’re a new parent or beginning to consider an addition to your family, contact me today, and we can discuss your options for opening a policy with enough coverage for a soon-to-be-growing family or updating your current one to include your new family member as a beneficiary.

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