Ministers looking for health insurance
I was asked to write a brief post in regards to Health insurance for preachers. It is one of the things that I think many preachers forget to consider or if they do consider it, they don’t realize the price of such insurance. When you are young and just starting out, as you plan a budget or negotiate a price, you should not forget to include health insurance as part of your planned expenses.
The best time to get insurance is when you do not need it and sign up with a company that is a full service health insurance company. When you are young, the cost is obviously lower. Planning ahead allows you to forecast that prices will go up over the years, not that you really have to use a calculator for that, just ask the generation before you.
So in writing an article offering my help to those in this field, I know that some groups of churches offer group plans to their members and some ministers are on their own to find the insurance that works for them. You should first check to see if such a plan exists for you in your groups structure.
The Disciples of Christ offer a pension and health care plan that extends to a couple of other groups as well. Basically, their plan is open to all compensated employees of any congregation that is associated with the Barton W. Stone and Alexander Campbell Restoration movement. This would include the churches of Christ and Christian churches as well and a couple other groups.
Their plan is a group plan which is great if you have pre-existing conditions because your acceptance is guaranteed. The cost may be a bit higher but at least you can get in. When I say the cost is higher, I mean that you pay 100% of the plan cost whereas normally an employer would pay 50% or more.
For those of you who go the individual family plan route, I would suggest that you consider an HSA plan. Health Savings Accounts allow you to set aside money, get an additional tax deduction, and save up for a rainy day. You really only need your deductibles amount saved up but the monthly costs are usually lower. It is a plan that can be described as a catastrophic plan and one where you take more control and responsibility for your own expenses.
Never knowing how many will read this, you are welcome to contact me and see if I can help you. I am able to offer insurance in several states and can get permission quickly in most of the others, just let me know how I can help.
Steven
512.704.4438
Long term care insurance
Isn’t just for nursing homes any more.
I am not the first to note this, I will not be the last and as our population ages there are some concerns that we all should be thinking about. In brief, I would offer this tip for you….think about the insurance you currently buy.
You pay for auto and home insurance and hope that you will never use it. The chances are really good that you won’t need your home insurance and if you drive good and yet you gladly will spend 2,000 a year or more for a home and 2 auto policy…..MORE if you have teenage drivers.
Yet, for a long-term care policy, most people do not think about it and yet it is likely that 40% of us if not more will need something in the long-term care area. The odds are much better that we will need such a plan than for our car insurance.
While I do not practice being an alarmist, I will suggest that you educate yourself about this type of a policy. It will pay for a Skilled nursing facility (e.g. Rest home), an assisted living arrangement, or home care up to the amount you decide to buy. For the money, it is an excellent deal.
I also, do not recommend at this time, hybrid plans. Get yourself one that is just a straight LTC plan. It is cheaper for you that way. Consider getting one once you reach 50 and seriously plan to by the time you reach 60. It is cheaper at 50 by a lot but I understand why a person would wait.
If you have questions, type them out here and I will try to find the answer. No high sales pressure, just an honest to goodness thought that this stuff matters.
When you have need to get that Long term care, you will want to be able to say “I have that covered”
It didn’t take a genius…
to figure out that Congress’ new Super committee was going to be a super dud. I am not going to write political blogs, I have opinions but don’t wish to waste the energy. What is patently true and should be recognized by everyone is the Politicians are not going to be the solution to the problem. As I mentioned to friends just a week ago Sunday, there will be no cuts from this committee, automatic or otherwise. Today I see a headline about Congress maybe considering postponing the automatic cuts.
My tip for the day is to stop worrying about Washington. Sure they could mess things up even worse, but don’t think for a second that they will make it better. Pick the side you want to be on, Republican, Democrat, Independent, or some other mix, there is no desire to truly fix it. It is up to you and me to take responsibility for our own lives and become the best individual citizens we can be, maybe it will rub off. Or at least your neighborhood will be a better one.
Go about your business and follow the Golden rule. For most problems in your life you will be able to say ‘I have that covered”
The unthought of danger
Every so often the local news shares a story of tragedy turned into a mission. When I heard this on the news this morning, I knew that this is worthy of a tidbit post. For all of the times that parents wish for a manual in child rearing, this at least is a good chapter to include. Some will bolt bookshelves to the wall in case of earthquakes but where earthquakes are not common, we forget about the other cause of falling dressers, bookshelves, and such…our children.
Here is the story. Complete with audio or script.
One other tidbit: Don’t assume your child will NOT do something just because you didn’t/wouldn’t or the other one NEVER did.
New parents are overwhelmed with advice, some of it unwelcome, but every new parent would do well to ask an experienced parent to stop by and make sure the house is child-proofed. That way when Johnny does what kids do, you can say “I have that covered.”
How can I be underinsured?
Perhaps you are familiar with the T-shirt that asks “How can I be out of money, I still have checks left?”
In a very similar way, the amount your home is insured for has little relation to how much you paid for the home itself.
As far as a mortgage company is concerned, if you have enough coverage to pay off the loan you have sufficient coverage. However, from the perspective of actually replacing the house you may be in for a surprise. The difference is best explained by remembering that you are dealing with two different markets when you purchase a home and when you build a home.
When you by a home, there are a lot of factors that go into the price. What people call market value is determined in negotiation between the owner and the buyer usually with the help of a real estate agent, appraiser and the mortgage company.
When you go to build a home however, you are talking to a contractor and then you are looking a different type of market. Labor and material costs, permits; a whole new world.
In the area I live in, $100 per square foot for building is not an unusual amount to hear quoted. Perhaps a little more, perhaps a little less. So when you have a home that is 1,600 square feet, you get two different values. On the market, you can sell it for $130,000 but if it burnt to the ground, you would need $160,000 to $185,000.
That is the difference. Many people are insured for enough to pay the mortgage but not the cost to rebuild. This puts the client in a difficult position should they lose everything.
What is the difference between the two costs: In the prices I menitoned above, would you believe $25 to $30 a month?
Contact your insurance agent, make sure you are not underinsured and make any appropriate adjustments needed. That way, if your house does burn to the ground you can breath a sigh of relief when you realize “I have that covered.”
Hats off to teachers!!
You know that old saying about walking in the shoes of a man before you judge that man? That saying can not possibly be more true than when comes to teachers. I substitute teach. I don’t do it often because there are other things going on in my life. However, for a few days a month, I choose an assignment and bravely go few dare…into the class room.
The fact that one dares not to enter into the classroom does not mean that there are not a lot of opinions about teachers, the job that they do (or the job that they DON’T do), nor that opinions do not run the gambit of how much teachers should be paid. Who ever said that teachers don’t do it for the money was right on the money (pun intended). I am not able to raise the position of substitute to the same level as that of being a teacher but I at least am able to say that I have a better idea of how difficult being a teacher can be and an opinion of the pay.
When I was a youngster, it is true that we did give subs a harder time, in general. However, it also seems true that times have changed and the both the curriculum, methods, and what is allowed (particularly in discipline) has changed. This is not a post about correcting things or a call to arms because of injustices or perceptions of what would make it better. There are a lot of those.
What I hope to be able to do in this post is to pay tribute to the very difficult job of being a teacher. It is such a thankless job, and so long, and so underpaid that while one might be able to fix the pay thing, the rest just seems to go along with the job.
In this month of November, along with the many things that I will be thankful for, I will be thankful for the teachers who taught me how to read, write, and to through more than one sentence together in a coherent thought called a paragraph. From Ms. Gibson (Casey Park Elementary in Auburn, New York….where ever you are) to Mrs. Wheeler (2nd grade and those long finger nails that never QUITE left a mark—though it would be a big NO-NO today!) and teachers whose names I have forgotten (at least the lessons where not) Thank you for the job you did. I know it was not easy with me and for those who are teaching little Steven’s all across this country. A big THANK-YOU also. You deserve more than you get.
Thanks to them…I have it covered.
Wal-mart price matching. Improved!
When Wal-mart announced that they would start doing price matching to any other local ads in the area, they apparently forgot to tell their employees. Trying to get a price adjustment was a combination of fighting with the cashier, manager, and waving the printed out policy from the website in their face. (Nicely of course….no cursing!) In other words, it was not as easy as that commercial made it seem.
The other issue was that when it comes to matching items, they did not know how to do simple math. Trying to figure out how much to charge for 6 packs of soda when the price is 4 for $10 seemed to be beyond them. An apparent victim of a woefully inept school system, (let the teachers teach and that will be resolved) these young cashiers could only stare blankly while trying to make the calculations that simple division will accomplish.
However, (cue the Angelic music) it has finally gotten better to the point that you can go in and tell them what ad you want to price match to and the price on the ad. (You still should break it down for them to be sure. 4 for $10 should be announced as $2.50 each or you run the risk of that blank stare.)
There are two really good advantages of price matching with Wal-mart that make this worth doing. The first is convenience . It truly is more convenient than running all over town to get 2 items here, 3 there and a single box of Jello over yonder. The second is perhaps the better reason. That reason is selection.
Say that the local Dollar General or small store is running a good deal on Coke products but you only drink Coke Zero. You may not find it among the selection at this small store. So you take your ad down to Wal-mart and pick up your favorite flavor (caffeine free Coke Zero) simply because the ad only said ‘Coke products.’ The same thing for flavors of Jello. Nice to get that Black Cherry instead of settling for a small selection.
I have no idea how long Wal-mart will do this. Perhaps forever. They certainly are, or should be, driving more people into the stores but when you go and get a pineapple for .98 cents (price matched to an ad) when they are charging $2.98, I have to wonder if they are making any money?
One last suggestion: Print out a copy of the ad match policy. Print it in color and you will find easy illustrations and examples of what they will and will not match. This will make it easy for you to feel the confidence to ask for the ad match. If they don’t know the policy then you can just hand them the ad and say “I have that covered.”
You do not need life insurance….
If there is no one depending on your income.
One of the things life insurance agents forget in the pursuit of clients is that not all clients need to have life insurance. To determine if you need life insurance just ask yourself: Who depends on my income?
If the answer is no one then you don’t need life insurance.
Another question is: How much am I able to leave for those who depend on me.
If the answer is that you are leaving enough to pay off all your obligations and still have money left over, you may not need much or any at all. Most individuals will find that 10 to 15 times their annual income is sufficient. However, if you happen to have that amount saved, then why bother with the life policy?
Life insurance is for the ones left behind. A small to medium size policy can make a huge difference in the future of those you leave behind. Term life is the most inexpensive and the one I recommend in 98% of the cases.
One thing is for sure, if you pass on and some one asks your family how they are doing financially….the 2nd best compliment they can give you is that you had it covered.
Do not Fear the High Deductible
I do not know know why it is, but many people tell me, “I do not want a high deductible.”
It could be that they are used to the old plans offered at work where the deductible was $500 and you paid $25 or less to see the doctor. The problem is that as the costs have been rising in the world of individual plans, they have also been rising in the workplace too. In order to save money on these plans for their employees, employers have also been raising the deductible in order to lower the cost of the plans. Employees are being asked (or not asked) to shoulder more risk.
Some, as they have seen the employers raise the deductible have sought my help to find a cheaper plan as an individual. Let me help you out. If your employer is paying for health insurance, they are paying at least 1/2 of the employee’s cost. As a single person, this means, you are not going to find a cheaper plan out there in the individual market unless you do choose a much higher deductible and maybe not even then. I would not recommend a higher deductible in that case.
However, if you are buying insurance as an individual, by all means consider the higher deductible plans because they will save you money. I recommend Health Savings Accounts (HSA) because you are allowed (isn’t our government gracious) to save money in that account to use for medical expenses. These plans are a Tax deduction for you. Unlike the FSA plans where you have to use the money each year, the HSA allows you to continue to accrue both deposits and interest for as long as you have a qualified plan. After that, the money is still yours but you should use it for medical costs to avoid penalties.
Most individuals do not use even $2,500 deductible every year. The savings in monthly costs from a $5,000 HSA plan and a regular PPO plan can be significant. That saved money can cover the costs, save on taxes and…if you do not use it, then be saved for future time. You don’t need to stuff your HSA full of money each year, most people will be fine adding money until they reach $5,000-$10,000. Then you can stop the contributions and start again if you need to. The fact is you can plan on having a medical cost, just not predict WHEN the cost will come.
For families, especially large families, the HSA is almost the only way to go. They are FAMILY deductibles not individual deductibles. So if one accident meets that deductible, although it is true that you will pay the deductible, no one in the family will pay for any covered cost including Rx for the rest of the year!! It truly is a good deal in that respect.
The savings and paying in cash can help you negotiate with your doctors and dentists. Do not assume that just because insurance pays some of it, that you cannot request a lowered bill for a prompt payment. Worse case scenario on a $10,000 deductible that you take out of your HSA account is that you pay the $10,000! However, it is non taxed money, so you saved on taxes and most doctor’s if you ask will discount so you save there too.
If you shop around, make sure that you include the HSA plan as part of your shopping experience, that way you can have confidence that you have it covered.
tidbits for life and insurance 