Life Insurance Plans
Group insurance plans for the life policy is intended for one contract that offers coverage for a group. Life insurance policies usually are taking out by an entity or employer.
Group insurance plans for the life policy is intended for one contract that offers coverage for a group. Life insurance policies usually are taking out by an entity or employer. Some of the plans offer employees a variety of options over coverage. It depends on what type of policy an employer will take out. For example, if an employer took out the Cobra plan then it would cover his employees, their families and so on. Some plans may offer medical, dental and unemployment. Again, it depends on what the employer takes out.
Usually, group life insurance is a packaged benefit option that gives employees complete coverage. Usually at what time a person works at a company that offers group life insurance, after a cycle of employment has occurred the employer may offer group life insurance to the worker. Some of the plans offered may be group life, yet it depends on the policy offered as to what the benefits will cover.
Group life often includes a master contract. Employees usually take hold of a certificate if the employer offers group life insurance. This is what the employee will show as proof of coverage. This certificate, however, is not the actual policy, rather proof that you have coverage. Like other types of insurance plans, however, the certificate holder will give you the option to choose a beneficiary.
This recipient or beneficiary is the receiver that handles the certificate in the event you pass on.
Some other plans include term life insurance. Term life is more common than the group plans. Group term usually is given annually, i.e. the plan is renewed yearly. This plan often entails that the employer pays the majority or all of the fees. Most times this insurance plan is equally factored into one x or two x the yearly salaries.
You have coverage with this plan unless the employee is terminated from the job, or decides to stop working at the company. If the term ends, you lose coverage also.
Some of the policies allow you to choose options. That is you can convert your insurance after quitting a company into a single policy. This means you take over fees, such as premiums. The problem with converting these plans is that you will pay a much steeper fee on premiums than you would if you took out-group life insurance.
If you start work at a company make sure that you understand the group life and life insurance offered to you. The 401K plans are typically offered at many companies. You must agree to allow the employer to deduct a small amount from your weekly paycheck to pay for your coverage. Most times, it is worth the cost.
Long-Term Care - The Ignored Need
Long-term care. People fear it. They know they will probably need it. But only a few are doing anything about it. Future needs for long-term care can, and should, be addressed now. There is help available.
Most Americans fear they'll need long-term care at some point after retirement, but only a small percentage are are doing anything about it, according to a survey conducted for the John Hancock Life Insurance Co.* It states that 85 percent of respondents worry about needing long-term care at some time in their future, an increase from 80 percent a decade ago.
Long-term care addresses a wide range of long-term care and supportive services for people who may have cognitive impairment or who are unable to accomplish certain activities of daily living over an extended period of time. These can include activities such as bathing, continence, dressing, eating, toileting, and transferring. Long-term care services can be provided in a variety of settings, including your home, assisted care facilities or nursing homes, and it can be very expensive.
Many Americans incorrectly believe Medicare and/or Medicaid will help fund their long-term care expenses. This is simply not true. Some feel they will be able to "trick" the system, but this has become much more difficult to do. The Deficit Reduction Act that was signed on February 8, 2006, has caused most states to radically alter Medicaid parameters and long-term care programs. The loopholes are being closed.
The study also found that almost 60 percent of the respondents worry about paying for long-term care, but nearly 70 percent of these people said they have done little planning, if any, for long-term care needs. Furthermore, Americans are living longer, care costs are rising, and company pension programs are being cut back. Because the average cost of nursing home care has risen to more than $71,000 a year, the costs for in-home care are also rising and it is apparent the rate of future increases will continue to be high; there is a looming crisis in America. Americans are not facing the realities of what lies ahead, especially the potential need for long-term care.
Right now, Americans seem to be avoiding the issue. According to the survey, more than 60 percent of adults haven't tried to calculate the amount of money they need for retirement. Of those who did the calculation, nearly half didn't factor in long-term care. Of those who did, nearly four in 10 did nothing about it.
One important financial tool possibly being overlooked is Long-Term Care Insurance. Many people do not realize this type of insurance can be tailored to fit a personal budget as well as help with some of the potential costs of long-term care. In other words, there are many variables that can be tailored to meet an individual's financial budget as well as help with the cost of future long-term care needs. A qualified Long-Term Care Insurance representative should be consulted to help develop an appropriate plan.
* The survey was conducted by Greenwald & Associates.
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