The Red Zone for Baby Boomers. The decade of danger lies in the five years before and after your retirement date. Market corrections, bear markets, Black Swan events and sideways markets can side line your retirement dreams and turn them into a nightmare. So it’s important to have a retirement game plan and an audible or two in your back pocket to back up your plan in case life hands you a setback. The world has changed. Globalization has made the planet smaller. Everything is correlated, so it’s hard to escape the gravity of the global impact of international markets on investments and even savings instruments. Baby boomers have already been through the grueling bear market of 1973-1974. Then came Black Monday, October of 1987 when the market shed 22% of it’s value in a single day! And again in 2001-2003 the market endured double digit-compounded losses due to the siren song of the emerging tech industry. Many a young boomer loaded up on tech stocks driven by the fear of missing out on the tech revolution. But nothing could prepare the baby boomers for the greatest economic upheaval in their generation, the devaluing of home real estate and the   Read more…

It’s really shocking to see baby boomers that have lived their entire life without a budget. So it’s sometimes difficult to convince them to start now in retirement. But income in retirement isn’t the same as income during your working years. The average reduction in income is 20 to 30% less in retirement. But this generation of boomers hasn’t retired their mortgages, complicating the reduction in income. And adding to these woes is the neglect of an eldercare provision in their later years by means of a long-term care policy for assisted home living or nursing home care. You have to have a plan. It’s not optional. And if you have a plan you can’t ‘set it and forget it’. The first step in retirement is to set up an emergency fund. Almost all retirees know to go to the emergency room for urgent care. But where do you go for emergency money in retirement? You’re probably familiar with the value of having savings that could cover six months or so of expenses in an emergency. But the role of an emergency fund takes on a different dimension in retirement. When you tapped your emergency fund while you were working,   Read more…

Once a consumer knows the basic types of Voluntary Benefit polices that are available, and what to look for in an insurance company, they still may have many questions. A good insurance agent can help them clarify the best options for them. There are several factors you should consider when choosing an agent. Longevity – How long has the agent been in business? Many insurance companies are recruiting machines. There is a chance your agent was working in a retail job last month. We all have to start somewhere. By definition, no one has insurance experience the day they start. If they are new, is there an experienced agent with them? Professionalism – You definitely want to work with a true professional. Does your agent have solid knowledge of the entire health insurance marketplace, not just Voluntary Benefits? Are they involved in the community they serve? Service – It is important to understand how committed your agent is to superior service. Will they give you their cellphone number? What is their promise for response time? Diversity – Are they able to represent more than one insurance company? If they only represent one company, they can’t show you different options from   Read more…

There are a multitude of Voluntary Benefits insurance companies in the marketplace and more entering all the time. So how do you know which company to choose to protect your family? The following items can be used as a guideline. Claims payment – Let’s face it, most consumers feel the most important thing to consider regarding any insurance company is how hard is it to file a claim and how quickly will it be paid. It is also critical that the claim be paid fairly. Many consumers also want their insurance agent to help them navigate through the claims process. In today’s age there is no reason to not do your research. But remember every insurance company in the world has someone that is upset with them. Are the reviews more positive than negative? Rate stability – Most Voluntary Benefits insurance companies reserve the right to change their rates based on many factors, but they can’t single you out. They have to raise the rates for everyone who has the same policy that you do. A little research should reveal how often this happens. Brand name – Surprisingly this is not a major factor. Do you care if you blow   Read more…

Not all Voluntary Benefits policies are created equal. As consumers are becoming more aware of the need for Voluntary Benefit protection, they are often overwhelmed by the myriad of insurance policies they have to choose from. Regardless of insurance company, the following features are critical in evaluating whether or not to purchase a policy: Guaranteed Renewable – An incredibly important consideration is whether or not the policy is guaranteed renewable. If it is, the insurance company can’t raise your rates or drop your coverage just because you are making claims. This is unlike auto insurance where the insurance company will do just that. Most Voluntary Benefits insurance companies reserve the right to raise rates, but they must treat every customer that owns that policy equally. Underwriting – A majority of Voluntary Benefit policies require just a few questions to determine eligibility. Very rarely do they ask for medical records or blood work. In fact, under certain circumstances the policy may be “guaranteed issue.” In other words, regardless of medical condition, you can’t be turned down. Portability – Most (not all) Voluntary Benefits programs are purchased through a payroll deduction. It is important to know when you leave employment that you have the   Read more…

Once you are ready to sit down with a Voluntary Benefits agent you need to understand the types of policies that may be available and how they might fit your needs. Disability – This is the easiest Voluntary Benefits policy for most people to understand. Disability pays the policyholder if they are unable to work due to an accident or illness. Most financial planners recommend that their clients protect their most important asset; their ability to earn an income.  Accident – The most popular Voluntary Benefits policy for many insurance companies is their accident plan. These programs usually cover everything from cuts that need stitches to major accidents needing an air ambulance, and everything in between. The benefits are tied directly to the seriousness of the accident. Critical Illness – These policies are very customizable based upon the client’s needs. The customer can purchase a policy that covers just one type of critical illness such as cancer. There are also critical illness policies that cover multiple serious issues such as cancer, heart attack, stroke, paralysis and other conditions. Life Insurance – LIMRA, which is a worldwide research organization that for 102 years has kept a pulse on the Life Insurance market, published a   Read more…

The Affordable Care Act (ACA) and pressure on private health insurance plans has driven unprecedented change in the health care industry. Deductibles, co-pays and co-insurance are skyrocketing almost as fast as the rates are. Many parts of the country have seen an increase of 50% or more for major medical premiums. A 2015 Harvard study found that the leading cause for bankruptcies (just over 60%) was due to medical expenses. The surprising finding of this study was a majority of the people that claimed medical bankruptcy had medical insurance. The reality is that most families don’t have the savings necessary to withstand the financial chaos that can accompany serious medical conditions. Often there is a double loss of income as a healthy spouse stays at home to care for the injured or ill spouse. When children are involved, the family comes to a standstill, but the rent, electric bill and car payments keep coming. The financial strain can also lead to emotional damage. This is why many insurance agents talk about the triple threat of serious health conditions. The disease damages the body, the finances, and the emotions. A good insurance policy can’t fix all of the emotional damage, but   Read more…