Tag Archives: Health Insurance

Have you worked at a legacy company for a number of years? You may be eligible for some type of legacy health insurance from them !

One of the challenges, and concerns of retirement or transitioning from permanent employment before age 65, the current Medicare age for health insurance.

 

Purchasing health insurance as an individual can be challenging, and can also create some angst in the decisions that we make.

 

Have you worked at a legacy company for an extended period of time, maybe 10 years or so?

 

Photo by JESHOOTS.COM on Unsplash

We have continually run into situations where a former employee who has worked at a legacy company for an extended period of time, such as 10 years … may have an option for some sort of bridge or supplemental like health insurance coverage from the previous employer.

 

What is meant by legacy company, is a company that has been around for multiple decades …. a new startup tech company as an example, will not have such a benefit. Also, not to worry if your company has maybe changed an official name but has bones going back many decades, you still may have an option.

 

In almost every situation, the key is these plans are not easily discovered. In order to find out if you have an option, it’s best to dig out contact information from HR of your old employer and reach out to them directly.

 

This is an expense to your former employer, so it would be expected not to receive multiple information regarding such a plan, but if available it could greatly help in bridging the gap for Medicare should we be in the situation of needing coverage before age 65. 

 

Almost every situation that we know of … has a slightly different slant of how qualifications are determined, be sure to take copious notes on how and why you may have this offer, and make sure you keep whatever contact person you have  for future use.

 

Qualifications for such benefit can vary greatly, so again make sure that if you were being told something you again or actually able to get this coverage.

Maybe a bit of a hassle to determine if you have an option…. but if you do, will be VERY WELL WORTH the hassle!

Have a Great “Found Bridge Insurance Option” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Back to the Basics: Fun New Complete Financial Planning Series/Course, Part 2 : Protection Planning …

Welcome to Part Two of our fun educational “Back to Basics” series original started here with Part One “The Emergency Fund” and continuing with this part, Protection Planning!

The goal of this series is to cover the most important Foundational Financial Planning items in not only order of importance but also order of technical difficulty. Once complete we expect to have a foundational, almost college like course of Financial Planning topics and goals that can be shared all at once in Netflix series drop like format for any that may be in need or interested. Longtime clients will most certainly find a repetition of items we have spoken or written about before but may occasionally uncover a topic that needs addressing due to a change in our situation.

Protection Planning – Health, Home/Auto (PLUP – Umbrella), Life

We could easily spend hours on each of these topics but in order to cover as much ground as possible we’re going to have a high-level discussion that fits neatly in our series as you will see that we will immediately refer back to Part One. “The Emergency Fund” as it affects our Protection Planning.

The following are in order of importance:

Health Insurance:

Never go a day without it as one accident could be devastating to your net worth!

Those of us lucky enough to have a large employer you probably have the best coverage at the most reasonable price. On that note if as we have mentioned in Part One “The Emergency Fund” you have a healthy one and you do not have any chronic or pending health conditions, it may be worth looking at a high deductible type of plan.

Those self-employed, it is a struggle, we understand, and your coverage will likely not be as good and cost more. Again, depending on your situation, a high deductible plan may work well for you. One of our favorite tricks for the self-employed is to try and have coverage via your industry of specialization. As an example, if you are a producer or pilot, you may have special insurance coverage through an organization, we find that specialty organizations offer the most reasonable prices and the most comprehensive coverage.

Home and Auto and Umbrella Protection:

When dealing with your home protection, again never go a day without coverage!

This may seem logical, but loss or lack of coverage can sometimes accidentally occur if you have no mortgage on your residence. If you do have a liability against your home the bank or financial institution will mandate you have good coverage at all times showing the importance of coverage. With our good emergency fund, we like high deductible plans as over the long term they will generally pay for themselves in the savings of premiums.

On our auto insurance, you guessed it we like a high deductible plan and in certain situations once the car is of extreme age it may be worth looking at dropping full coverage as it is easy for our annual premium to more than pay for what the residual insurance coverage would pay should your car be totaled. This situation changes and takes some continued monitoring.

The PLUP or Umbrellas policy is one additional insurance that is tied to our home/residence and auto and is a personal liability umbrella policy which we like anyone that could be seen as a target for whatever reason from bad guys out there that may want to sue us for whatever reason. Umbrella policies are relatively inexpensive and have the good effect of making sure your other coverages are comprehensive enough before the umbrella policy is established

Life Insurance:

The need for life insurance grows as your liabilities increase especially with the primary breadwinner of the family.

Liabilities could include business loans, large mortgages, children or other dependents, or another outside solvency that needs to be replaced should you pass away. As a person or family’s net worth grows there can be an inflection point where there is less of a need for life insurance. Long term life insurance needs can vary on a very personal basis. With various types of life insurance is there are possibilities for very large policies at very reasonable amounts given the specific circumstance.

It is almost impossible to cover every aspect of each of these topics and as such this is not exhaustive, but we think very helpful!

Have a Great “Back to Basics, Protection Planning” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Average Monthly Cost of Health Insurance for a 40 Year Old and Change Year over Year 2020 V 2021

Originally Planning a Part II of Our Market Valuation Series, started here, we decided to go a little lighter due to the lengthy January Review Video Posted Monday!

This from our Friends at Howmuch.net

Green is good and means the cost went down…. slightly counter intuitive…

Red is bad and means costs went up for our 40 year old!

The item we garnered from this, more rural areas are more likely to see a price decrease, with higher populated areas and increase….

Not sure if this is Covid related or normal… hopefully we can find another chart in the future for comparison!

Have a Great “40 Year Old Health Insurance Comparison” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Why we like High Deductibles!

As we worked on our PLUP – Personal Liability Umbrella Policy Newsletter and Blog Post, we repeatedly ran across reasons to discuss our fondness to the Higher Deductible options on almost everything.

This article has also spawned a related article, about Emergency funds – neat chain of events articles!

Consider the High Deductible Option – On Most Everything

Health Insurance, Auto Insurance and Homeowners are the main types of ongoing insurance that allows you more control in your cost via the deductible.

The Auto Insurance Examplecrash-test-1620591__480

One of the easiest examples is the good old automobile insurance. We like high deductibles of near one thousand dollars due to the tremendous longer term premium savings that will occur over time. We certainly acknowledge that changing your coverage deductible to a higher amount today and having an accident tomorrow is bad luck and will throw you into the hole, but over time, if you are not a repeat offender, your saved premiums will more than pay for the higher deductible.

Health Insurance Example

Let’s face it, the insurance industry wants us as consumers to take more control over our medical expenses. Rather than run, embrace this coming inevitable change, and review higher deductible health insurance plans. Similar to the Auto example, if you opt for a higher deductible plan and something happens in the very short term, you will be in the hole on this decision, however time is your friend.  Having your health coverage pay for that visit to the Dr. for a cold is nice, and may make you feel good after you leave the office, however if you dig deeper, it is likely you may be paying dearly for the “free” visit.

Homeowners Insurance Deductible

Yep, there is a higher deductible option for your homeowners policy as well. This option is usually in the form of a percent of the dwelling. Be careful when reviewing these options as our experience has shown premiums and out of pocket costs can vary greatly depending on the geographic area of your dwelling and a higher percentage deductible can get out of hand if you are not careful on a higher priced dwelling. Bottom line, the homeowners policy has more moving parts due to the differences in coverages, geographic area, dwelling itself and your claim history. Take extra time in adjusting this deductible, but once you get clear on all costs, obligations and options, it’s likely you will find savings in this as well.

Have a Great “High Deductible Savings” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

October 2016 Video, Financial Planning Tips and Economic Review- By John Kvale

Here is our October 2016, Financial Planning Tip (S) and Monthly Economic Review, along with a Video for your viewing and listening pleasure. Hope you enjoy!

October 2016 Video

 

Financial Planning Tip(s) –

Charitable Giving from An IRA

Yes we CAN finally donate funds from an IRA, as our post reminds, as long as we meet the following requirements:

  1. Already be age 70 ½ on the date of distribution
  2. Submit a distribution form to the IRA custodian, requesting that the check be made payable directly to the charity
  3. Ensure that no tax withholding is being done
  4. Send the check directly to the charity, or to the IRA owner to be forwarded along to the charity

Tricks for Getting Health Insurance

Here are a few great ideas we have learned over the years, as mentioned here for getting Health Coverage:

  •  Stay on your significant others coverage as long as possible
  • Be a member of a select group-
  • Create a Group
  • Six month Cobra Extension
  • Employer Qualified Long Term Benefits
  • Military Members 

Cool College Review Information

Our somewhat humorous, but handy review of Princeton College Ranking Review.  Some good and others, well maybe you would rather not be a part.

Economic Update

Banks are Lending

 

10-12-16-excess-reserves-grannis-fed-reserve

On the far right…. look at that money dripping out of the banks and into the US Economy….

Speaking of Economy, how about this NICE GDP (Gross Domestic Production) release- Far right graph bar rising… THAT’s GOOD!

10-31-16-econoday-gdp-release

 

Have a Great Day!

See you next month !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
JK Street Cents Logo

 

Tricks to getting Health Insurance Coverage

The most challenged group of folks we find having trouble finding good reasonable health insurance coverage are the retirees who have not yet reached that magical age of 65, when Medicare is available. Followed closely by the individual business owner or individual who for whatever reason is not covered by Health Insurance.

Tricks for Getting Health Coveragehealth-insurance

What follows are our favorite techniques for getting coverage before age 65. As you may know, health coverage is under the microscope and the industry is changing fast. We are not experts in the Health field, and these are not recommendations, however we have seen all of these techniques used with positive results.

  • Stay on your significant others coverage as long as possible– If your significant other has group coverage and you retire before they are eligible for Medicare, check if your significant other can continue the coverage and be sure to see how long. Many times coverage can be continued for an extended time.
  • Be a member of a select group – (Our favorite Trick) Many organizations offer group coverage. Generally the harder to get into the organization, the better the coverage. If you really rack your brain, almost all of us, at one time or another have been a member of an industry specific organization. Check your organization out, a renewal may save you a tremendous amount of money and garner greater coverage.
  • Create a Group– (Another favorite trick) If you have 1099 income or are working at a small business, generally it only takes two folks to make a group. A group plan pulls you out of the individual pool and many times garners a better and more comprehensive coverage at a better price. Only a solo person? Hire someone that helps and may need coverage too and can help your business!
  • Six month Cobra Extension– (New to our bag of tricks) While this technique does not give you permanent full coverage, it may get you far enough on the calendar/age clock to help. Many states have a six month, state supported continuance that adds another six months to your coverage. You need to call your former employer and ask for the extension, if available.
  • Employer Qualified Long Term Benefits– In many cases, employees working longer than 10 years and over the age of 50-55 MAY be covered via a group long term health benefit-permanent plan. We have seen several cases where you must ask to get the benefit. Do not be afraid to ask. Also, many of these benefits are only available once, so be very careful in cancelling this coverage for another as you may NEVER have an option to get the coverage again!
  • Military Members – USAA- Family members and close relatives may be available for coverage in certain instances.

By now you may have noticed we have not mentioned the basic coverage available to everyone. Generally we have found that these plans are not as comprehensive as the other options. The good news is they are available to all in most cases.

Going without coverage for even a day can open yourself to terrible expense in the worst case scenario!

Hopefully this article may help trigger thought of possible coverage should you be in need!

Have a Great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

 

The HSA – Health Savings Account – If you can, fund it !

This week we bring you another tax strategy that may save you extra dollars, while not mandatory before the end of the year – we find it MUCH less confusing to synch the year – make the deposit in the year of the deduction.

Recently in our end of the year tax strategies, we visited Pushing Income , Optimizing Donations, the week prior of IRA Distribution, and the week prior to that a Roth Conversion  to maximize your tax deductions. This weeks topic is simple, the HSA ! HSA

If you have a “High Deductible” health insurance plan – many more do recently, to smartly save on monthly premiums – if you can fund an HSA – DO SO NOW! 

FUND that HSA

Here are the limits from our friends at HSA Bank – (one of our favorite HSA investment options- there are many):

HSA 15 - 16 Limits HSA Bank

 

  • Age 55 – Not 50 for catch up increases
  • Almost without regard to investment, the tax savings are worth it
  • Pre-tax savings for future use or today
  • Pre-tax payments for today or tomorrow

These are just a few examples!

While we do not offer HSA savings plans, they are worth the time and effort to set up, the tax savings are terrific!

Any questions– just reach out- we will be glad to help!

Have a Great — Less Taxable — Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225


 

 

Attention all small groups and individual Health Insurance holders….How the Affordable Health Care Act will affect you?

At the end of 2013, the Affordable Health Care Act will begin enacting with October 1, 2013 being the open enrollment for many with new health coverage.  Before we go further, we want to let you know this is not our area of core competence, and much of this may change, however we wanted to deliver to you what we have experienced so far as well as let you know our recommendation.Health Care Reform

Three Options for Your Health Insurance

If you fall into the small group or individual policy health plan (J.K. Financial, Inc. is the former, such our experience so far) you have several options coming your way soon.

  1. Keep your current coverage and continue with no changes. By doing nothing you will be electing this option, which we do not recommend!
  2. Pull your current renewal date to December 1st 2013. We recommend you strongly consider this option as it will extend your current coverage until Dec 2014 and give you the most options.  It is our understanding that all carriers are giving their clients the option to change their renewal date and are will be notifying this option via mail shortly.
  3. Elect/Opt into the new government options available in January of 2014. We do not know what this is or the details and as such cannot recommend this at this time.

Every situation is different, so please review carefully, however it is our opinion that option two allows the most flexibility, and it is because of this reason we favor it over the others.

If you have questions feel free to email us for greater clarity and details, and remember there may be changes as we get closer to the end of the year.

Have a Great Monday!

John Kvale

http://www.street=cents.com
http://www.jkfinancialinc.com
8222 Douglas Ave # 590
Dallas, TX 75225