However, the bottom line is investors are usually and understandably concerned about access to their deposited funds.  Safe investments need to provide suitable liquidity for living needs, emergencies, and required minimum distributions.

Annuity Surrender Charges

Almost all deferred annuities carry some type of early surrender penalty during the chosen investment term.  The penalty is usually a percentage of the invested amount that decreases each year until the end of the chosen annuity term.

Most deferred annuity accounts carry a term that is between 1 and 10 years.  Should you withdraw all of your funds before your chosen term is up, then you will incur a surrender penalty.  Early surrender percentage amounts will vary from company to company and will always be included in your application and contract material.

Annuity Liquidity and Interest Withdraws

This usually brings up the question of liquidity.  In what way(s) can an owner withdraw funds before the annuity has matured without incurring a surrender charge?  Almost all annuities allow for the following types of penalty free withdraws:

• Monthly Interest
• Yearly percentage of the principal
• Required minimum distributions
• Long term care expenses
• Diagnosed terminal illness
• Return of invested premium

Monthly Interest Withdraws

In reality there are several ways to withdraw money from your annuity account without penalty.  Many consumers use their annuity account to generate needed income on a systematic basis.

Most fixed interest annuity accounts allow for earned interest withdraws monthly, quarterly, semi-annually, yearly or as needed. Monthly interest can be taken after the first month and in the first year of the contract. However, in almost all cases, the owner of the account must be over age 59 1/2 to withdraw interest only.

Access to Your Annuity Principal

Additionally, many annuity policies allow the owner to withdraw a percentage of the principal each year.  Most contracts allow for a minimum 10% principal withdraw each year - although some only allow this feature in year two and beyond.

In some cases, if the 10% is not used in one year, then it can carry over to the subsequent year allowing for a 20% penalty free withdraw.  Other contracts will allow for higher principal withdraw percentages as outlined in the contract. 

IRA Annuity Required Minimum Distributions

All annuity accounts allow for penalty free access to the required minimum distributions that are mandated by I.R.S. once the owner has reached age 70 1/2.  In short, your chosen insurance company cannot penalize you for what the federal government requires.

That is why fixed and indexed annuities are popular accounts when establishing stretch or beneficial IRA accounts.  Conservative investors will choose an annuity as they are designed to efficiently credit interest and systematically disperse RMD amounts each year without exposing the investment to market fluctuations.

Principal Withdraws for Health Concerns

Annuities offer special provisions for those with major health concerns.  If you are in need of long term care, then most contracts allow for sizable penalty free withdraws if not complete access to the principal.  As part of the recently enacted Pension Protection Act, many annuity accounts also allow for income tax free withdraws for extended care.

Owners who are diagnosed with a terminal illness also will be provide with enhanced liquidity options.  In most cases, the insurance company will allow for penalty free distributions of the entire accumulated value should it be wanted or needed.

Annuities Offering Return of Premium

Finally, and this is something new to the annuity marketplace, some policies allow for a full return of premium.  You may not receive any interest should you surrender the account early, but you can withdraw your entire premium without losing any of the invested principal.

This is beneficial for those who might need to surrender the contract in the first couple of years. After two or three years, most fixed and indexed annuities will have credited enough interest to overcome the penalty percentage amount.  That way, the owner can withdraw more than what was originally deposited. 

Policies including a return of premium provision are suitable for those concerned about large future expenses and for those who want total access to the investment should something unexpected occur. A return of premium provision allows liquidity conscious consumers to rest assured during the early years of their contract.

Annuity Laddering Strategy

It is prudent to invest for an annuity term that meets your known present and future needs.  And it is wise for those who need regular access to income and/or principal to use an immediate annuity account or a laddering strategy in order to insure regular access to their funds.

By using a laddering strategy through the purchase of multiple annuities with various maturity dates, you can assure that reasonable sums of principal will come due every couple of years.  If the annuity principle is not needed, then the account can be reinvested for another similar term.  Just like bank CD’s - annuities can provide ample liquidity when laddered properly.

Summary, Information and Quotes

Annuity investments are not appropriate for everyone. While fixed and fixed indexed annuities provide unmatched safety and above average growth potential, investment liquidity may be what is needed most.

You simply would not invest money in a ten year account that you know will be needed two years from now.  It is important to discuss your overall financial needs with an agent before investing to insure the purchase of a suitable account.

Hyers and Associates, Inc is an independent and national provider of annuity investments. Contact us today to discuss your financial needs and for quotes, illustrations and information regarding any of the above mentioned accounts or strategies.

In an attempt to lessen the risk of investment loss associated with variable annuities, many insurance companies now offer guaranteed death benefit and/or a living income benefit riders. It is important to understand how these riders can affect future account values and withdraw options.

Guaranteed Variable Annuity Death Benefit

Death benefits were the norm in most annuity contracts over the last decade or so. Annuitants paid a small fee each year and in turn were offered a guaranteed death benefit that would equal a predetermined growth or accumulation value in the annuity policy. These are sometime referred to as “high water-mark” contracts.

The problem is the stock market has been extremely volatile over the last decade and this volatility appears to be an increasing trend. There have been at least two significant economic downturns that caused precipitous drops in all of the major market indexes. This caused several variable annuity contracts to have a significantly higher death benefit (high water mark) than living benefit (walk away value) for the owner.

In reality, what started as an annuity account quickly turned into a life insurance contract due to a substantially higher death benefit. Most annuities were worth more to the owner at passing than during his or her lifetime. That might be acceptable if policyholders were only concerned about their heirs, but that is usually not the case or life insurance would have been purchased in the first place.

Furthermore, when withdraws were taken from the account either through required minimum distributions or for living expenses, then the leveraged death benefit would decrease in kind. In this way, many variable annuity owners were stuck with a confusing, hard-to-value investment.

Variable annuity policyholders might be hesitant to cash in their account for fear of losing the higher value that might be passed on to their beneficiaries at passing  At the same time, they wanted an investment that was more predictable and less volatile.  Those competing needs simply did not allow for enough investment flexibility and choice.

Variable Annuity Lifetime Income Riders

As oppose to a life insurance rider that provides a potentially higher contract value at death, this living benefit provides a guaranteed income stream to the annuity owner for a predetermined period of time - usually life.

In this way, there are two values at play.  The actual value of the contract (subject to market fluctuations) that allows the owner to walk away at the end of the term; and the second value or lifetime income value if the contract is later annuitized.

The lifetime income account value increases each year by a predetermined amount (6% for example) and costs a few basis points to the owner each year - perhaps 1/2 of one percent.  Thus, if and when the market collapses, the income account value will be much higher than the walk away value.

In order to withdraw the maximum from the annuity, the owner must annuitize the contract over his or her lifetime and has in essence purchased a future income stream, but not a deferred annuity.  If a future income stream was needed, then there are safer annuities offering such guarantees.

Just like the guaranteed death benefit, the living benefit rider causes the variable annuity to morph into a different type of investment or what is commonly referred to as an immediate annuity.  And just like the former, the owner may feel they are stuck with an investment they did not originally purchase .

The insurance company can guarantee a 6% step-up each year on the income account value because of the yearly charge and the fact that they will control all deposited funds for the life of the owner.  Insurance companies will make some of their money back during the lifetime payout process.

Walk Away with the Accumulated Annuity Value

Of course, there is nothing that prevents owners from transferring the deferred variable annuity contract to a safer investment at the end of or during the investment term.  When the income or death benefit account value is much higher than the walk away value however, this can be a very difficult choice to make.

It is human nature to try and obtain the most value from any investment.  Thus, many investors who own variable annuities end up holding them beyond the original term - longer than they anticipated when the account was originally funded.  And too often the investor is disappointed in the market performance which caused the annuity to become something other than for what it may have been intended.

The Rise of the Fixed and Equity-Indexed Annuity

For those who are looking for an opportunity to exit an under-performing variable annuity, there are viable options. Both fixed and equity-indexed annuities offer safety, security and predictable future growth. But most importantly, the owners can walk away with all accumulated funds at the end of the term. There is no fear of giving up possible gains by losing out on a death benefit or lifetime income rider.

Several insurance companies offer fixed indexed annuities with reasonable potential for returns, up front premium bonuses, and the ability to lock gains in each year. The up front premium bonus can help offset the loss of principal in a variable annuity. Additionally, transfers can be done without incurring income taxes should the older annuity have eked out any gains.

Contact Us

Hyers and Associates is an independent agency marketing fixed and fixed indexed annuities throughout the U.S. Should you own an under-performing variable account and are in need of advice or an exit strategy, we can help make a suitable recommendation. Contact us today for annuity investment information and illustrations.

The Department of Health and Human Services is working closely with individual states in order to provide program regulations and specifications. Ohio is one such state that has chosen to create their own pool as oppose to joining the federal program.

Medical Mutual of Ohio

Medical Mutual was chosen by the Ohio Department of Insurance to setup and operate the high risk pool.  Applications will be accepted as of August 1st and coverage can begin on September 1, 2010 at the earliest.  Two plans will be offered; one with a $1,500 and the other a $2,500 deductible. Age, gender and tobacco use will affect monthly rates for the applicant.

The state of Ohio is expected to receive approximately $152 million from the federal government to administer the pool. Once that money has been spent, it is unlikely that any new funding would be appropriated for coverage expenses.

Visit http://www.ohiohighriskpool.com/ for more information.

Admission Requirements for Ohio’s High Risk Pool

There are several requirements that must be met before consumers can gain access to the pool.  Individuals will need to provide proof of the following:

• Must be uninsured for six months
• Can have no access to employer sponsored health insurance
• Been denied coverage from two separate insurers
• Ineligible for Medicare and/or Medicaid and other state run programs
• Afflicted by a generally accepted preexisting condition
• Citizen of the United States
• Resident of the state of Ohio

Proof of the above listed requirements may be required in most cases. Consumers may need two letters of declination, a letter from a medical professional detailing their preexisting condition(s), and acceptable forms of state and or federal identification.

The Health Insurance Agent’s Role

In Ohio, Medical Mutual will not be compensating agents who assist with entry to the high risk health insurance pool.  In this way, applicants may be working directly with the carrier.  However agents can provide some assistance with letters of declination from insurance companies. Even if a consumer has been without coverage for six months, he or she will still need two letters of denial.

There are some health insurance providers that simply underwrite to a yes/no standard. On the other hand, some carriers might provide coverage, but rider out preexisting conditions. If an individual desires access to Medical Mutual’s plan, then they will want to make application to two companies that are more likely to decline coverage than to rider out a condition.

When it comes to traditional health insurance in Ohio, both Anthem Blue Cross Blue Shield and Aetna are more likely to decline coverage whereas Assurant, Medical Mutual and United Healthcare may provide limited coverage. If an individual is in need of two letters, then they may want to make application or speak with Anthem and Aetna first.

Individual and Family Health Insurance

Get a Quote »Hyers and Associates, Inc. is an independent agency providing medical insurance in Ohio and beyond. Should you need coverage outside of the high risk pool, then we can help you.

In some cases, only one family member will be eligible for state run coverage. We can help the other family members gain entry into a traditional or HSA medical insurance plan with any of our well known carriers. Contact us today for more information.

For every Anthem Blue Cross/Blue Shield and United Healthcare there are a dozen other companies offering the same benefits and coverage. How are you to know which insurance company is best for you?

Understanding Medicare Supplement Networks

The first thing to know is that if your doctor or hospital accepts Medicare patients (and therefore Medicare assignment) then they will accept any traditional supplemental insurance policy that you purchase.

That is to say that the vast majority of Medigap plans sold do not have any network restrictions. In this way, there are no network differences between Anthem and the other dozen companies you may not yet heard of.

Too often consumers, buy name brand thinking that they are purchasing better insurance with a larger network. And that is understandable considering that many times, these same consumers are leaving a group or individual health insurance plan with one of the major carriers like Anthem, Aetna, Humana or United Healthcare.

The fact is networks are the same with almost all Medicare supplement insurance providers. Thus, you can usually save on your monthly premiums by purchasing a Medigap insurance plan from a niche carrier. You will be afforded the same access to health care professionals and facilities with either plan. And the niche supplemental carriers are usually less expensive on a monthly basis.

Medicare Supplement Insurance Select Plans

Medicare Select plans are the exception to the rule. These types of plans do operate on a network and you will be charged more if you see a health care professional out of network. Select insurance coverage is not the norm in the industry. Only a few carriers (Mutual of Omaha for example) offer this as an option, but it is rarely purchased by consumers.

In fact, those who wish to operate in a network are more likely to purchase a Medicare Advantage plan.  The drawback to both Select and Advantage coverage is larger out of pocket expenses when you need to see a specialist or use a facility out of network.  For this reason, most consumers will purchase a traditional supplement from a low cost carrier.

Medicare Claims Filing, Payment and Billing Issues

Another primary concern for those who purchase Medigap insurance is the company’s claims handling ability.  It goes without saying that you would not want to purchase a plan with a company that has a bad reputations in this area.

Fortunately, Medicare is a highly regulated social program. There is very little gray area when it comes to claims and billing. It has been our experience that very few, if any, companies can or will cause claims difficulty for the insured. We work with over a dozen Medicare supplement insurance providers and there are very few complaints with billing and claims payments.

Any company earning a bad claims payment reputation would certainly fall out of favor with insurance agents and their clients. With so many low cost providers available, agents would not risk losing clients knowing that the chosen carrier would cause future problems. And, of course, the government run CMS would likely act if a carrier was a frequent rules and regulations violator.

Rate Increases on Existing Supplemental Coverage

This is an area where some companies separate themselves from others. However, all supplemental insurance providers will raise your rates every year. It does not matter if you purchase an attained age, issue age, or community age rated policy.  All plans experience rate increases each year.

Even the companies with more favorable rate increases will be undercut when new carriers enter their market. While it is important to choose a company with a reliable rate history, it’s hard to predict future premium increases. It is important to work with an independent agent who can guide you toward more affordable Medicare supplement insurance when it becomes available in your state of residence.

Summary and Quote Request

When you purchase Medigap insurance, you are very rarely choosing one network over another. If your doctor accepts Medicare, they will accept any traditional supplemental coverage in which you have enrolled. The only exception to this rule is a Select Plan although very few consumers choose this type of coverage.

You can save on your monthly premiums by choosing a niche provider over some of the more well known carriers. Typically, the national insurance companies do not price their plans as competitively as others. And when you work with an independent agent, you can usually change to a lower cost plan in the future should you remain in moderately good health.

At Hyers and Associates, we provide Medicare supplement insurance quotes, coverage and enrollment assistance in several states.  Contact us today for the most affordable plans in your area.

One of the biggest concerns potential annuity investors have is what happens to their money whey they die.  For reasons unknown, there is a misconception that the insurance company keeps the balance of the account at passing.  This is simply not true.

What Happens to My Annuity at Death?

The majority of annuity contracts are either fixed, indexed, or variable in nature. These investments are either in deferral or are used for regular interest and/or occasional principal withdraws.

In almost all cases, when an annuity owner(s) dies, the balance of the account simply passes to a named beneficiary.  The beneficiary designation in the contract will usually list family members and the respective percentages each receives.

Annuity owners often setup their spouse as the primary beneficiary and their children and/or grandchildren as contingent beneficiaries. In some cases, a trust will be listed as a reliable means to distribute the annuity proceeds.

Annuity Beneficiary Designation and Probate

If, for some reason, there is no living person or trust listed as the contract beneficiary, then the annuity would likely be subject to the probate process. In this way, probate court would decide who inherited the annuity proceeds like it would any other asset with no beneficiary designation.

However, even with no listed beneficiary, the insurance company underwriting the annuity would not receive the proceeds. It is important to note that most annuity contracts are designed to avoid probate in the first place. (It is a good idea for annuity owners to regularly check their beneficiary designations as part of any estate plan.)

Immediate Annuity Contracts

There is one type of annuity account, commonly referred to as an immediate annuity where, in one instance, the insurance company can keep the undistributed funds when the owner dies.  Immediate annuities are the least common type of contract and only suitable in certain situations.

First, it is important to understand how an immediate contract works.  When an immediate annuity is purchased, the owner deposits a lump sum with a chosen insurance company.

The lump sum is then used to create a regular stream of income payable to the insured for a set number of years or a lifetime.  In this way, an immediate contract pays a portion of the principal and earned interest each payment cycle.

Lifetime Annuities and Period Certain Guarantees

There are several fail-safe riders that can be attached to an immediate annuity account that guarantee the insurance company will pay back all deposited principal and earned interest during the insureds lifetime or that of their chosen beneficiary.  This can be done through what is called a “period certain.”

The term period certain simply means the insurance company is obligated to distribute both principal and interest for a certain number of years.  If the insured passes away before the period certain has been satisfied, then the payments will continue to a named beneficiary for the remainder of the contract.

Thus, the only type of annuity that allows the insurance company to keep the undistributed balance of the investment when the owner passes away is a lifetime immediate income annuity account with no period certain.

All other annuity investments will pass the entire balance of the account to the named beneficiaries in a lump sum or through regular installment payments when the owner passes away.

Request Information and Illustrations

In summary, almost all annuity investment accounts are setup to pay the entire account balance to the named beneficiaries.  The owner of the account has the ability to setup the distribution in a manner that best suits his or her tax, investment, and estate planning goals.

Annuities are valued investments for their unmatched safety, regular income distributions and also because they can be setup to avoid probate.  It is important to speak with a knowledgeable agent in order to understand what you can expect from your policy now and in the future.

Those who are insured through an employer based group health insurance plan and those who have purchased individual or family insurance can keep their children covered for several more years if necessary.

State and Federal Eligibility Requirements

Under the state of Ohio law, there are eligibility requirements.  The prospective insured must be:

• Unmarried
• A natural child, step-child or legally adopted
• Not yet age 28
• Resident of Ohio or full time student
• Not employed by a company offering eligible health benefits
• Ineligible for Medicare or Medicaid

Under Federal law the child can be married or unmarried but must be:

• A child of the employee as defined under the group policy
• Not yet age 26
• Not have group coverage from their own employer plan

It is important to note that the child does not need to be financially dependent on the parent(s) in order to qualify for coverage under the new state and federal health care reform laws.  Additionally, parents should be able to write off their child’s monthly premiums for income tax purposes as before.

Health Insurance Plans - Adding Dependents

The state law in Ohio takes affect July 1, 2010.  Parents can request to add their children on an existing group or individual plan during the first renewal date of their policy.  All new policies issued after July 1 will automatically allow for the addition of older dependents.

The state law applies to group policies that include coverage for dependents as well as COBRA and state continuation coverage.  It is important to note that not all employer offered group health insurance policies offer coverage to dependents.

Ohio law also offers extended coverage to those who purchase individual and family health insurance on their own if group coverage is unavailable to them.  All plans including basic, standard, open enrollment, and conversion plans will fall under the new state law.

Federal Implementation of Health Care Law

The Federal law will go into affect on September 23, 2010.  It applies to group plans as well as individual health insurance that provides benefits for dependents.  Self insured ERISA plans are also covered.

For Ohio residents, the Federal law only requires health insurance coverage is offered to age 26.  However, the Ohio laws require coverage to age 28 or an extra two years provided the requirements mentioned above are satisfied.  Thus, insurers offering group or family health insurance coverage in Ohio will need to abide by the state law from age 26 to 28 as of July 1.

Requirements for Employer Health Insurance Plans

Employers who do not offer health insurance for dependents will not be required to do so under these two new laws.  Nor will they be required to offer coverage to a spouse of the insured.  These laws only affect group plans currently providing coverage for children of the insured.

You can learn more about the new law at the Ohio Department of Insurance: http://www.insurance.ohio.gov/Consumer/Documents/Dependent%20Age%20FAQs.pdf

Request Information and Quotes

We are an independent agency offering coverage throughout the state of Ohio and beyond.  If you are in need of individual, family or group health insurance quotes, please contact us today.

Medicare eligible consumers can purchase Medigap coverage as well as prescription Part D drug insurance plans through these combined organizations and a licensed insurance agent.

It is important to note that you must be an AARP member in order to enroll in their supplemental insurance plans.  Medicare supplements and Part D rx coverage can be purchased, at no additional cost, through an independent agent if you desire more personal service.

Medicare Supplement Insurance from AARP

AARP offers traditional plans A-N in most states, but not all plans in every state.  They also offer Select Plans C and F that require the use of the United Healthcare network doctors and facilities.  Select Plans C and F are less expensive than traditional coverage and will have some network limitations.  Traditional Plans C, F, and G are most popular.

In order to enroll in a Medigap plan, you first must be (or soon to be) enrolled in both Medicare Parts A and B.  If you are in open enrollment or a guaranteed issue period of time, then no medical underwriting will be necessary with your application.

If you are not in open enrollment or guaranteed issue, then medical underwriting will take place and you can be turned down for coverage.  If you have End Stage Renal Disease (ESRD), require dialysis, were admitted to a hospital within the last 90 days, or been recommend or discussed an inpatient hospital admittance with a medical professional, then you are ineligible for coverage.

Discounts and Silver Sneaker Membership

As part of your AARP membership, you will be eligible for vision discounts, pharmacy savings, and a 24 hour nurse hotline.  Members can speak with a registered nurse by phone 24 hours a day for support and to their answer questions.

In some states, you will also receive a complimentary Silver Sneakers Fitness Program membership.  This benefit is limited to participating workout facilities and will help cover your monthly gym membership dues.  Arizona, Georgia, Illinois, Indiana, Ohio and Tennessee are a few of the states where this benefit is available.

AARP Medigap Monthly Premiums

Monthly premiums will vary depending on your state of residence, age, health and desired plan.  Medicare supplement insurance costs will vary widely between competing companies in the same state.  AARP insurance plans are competitively priced in Missouri, Florida and several other states.

You will save on your premiums if you pay for your coverage either monthly or yearly.  There is a small fee to pay quarterly or semi-annually.  Where offered, you and your spouse will be eligible for a 5% marital discount when enrolled together.  Should one spouse enroll at a later date, the discount will still be available for both.

There is also an early enrollment discount associated with AARP Medicare supplements that decreases each year.  The longer you have your policy, the lower your discount will be and accordingly your monthly premiums will increase as your discount erodes and overall rates increase.  You cannot be singled out individually for a rate increase however.

AARP Part D Prescription Drug Coverage

AARP offers three different prescription Part D drug plans through United Healthcare for you to choose from.  They are referred to as the MedicareRx Saver, Preferred and Enhanced plans and will vary in price depending on where you live.   The MedicareRx Saver plan has an annual $310 deductible, but the prescription drug copays are less with this plan as compared to the others.

The Preferred and Enhanced plans do not have an annual deductible to satisfy, but also have larger copay amounts for most prescriptions in most tiers.  Most consumers will be best served by enrolling in either the Saver or Preferred plans on price alone.  All three plans have a very robust prescription drug formulary.

Request Information and Quotes

Hyers and Associates, Inc is an independent agency marketing Medicare supplement insurance policies direct to consumer. We represent AARP Unite Healthcare as well as several other affordable carriers offering coverage nationwide.

Contact us for your quote today.

Perhaps of more importance are the tax write-offs that accompany the contributions to your health savings account.  Up to certain individual and family HSA yearly limits, you can write off all contributions.  And of course, your deposits grow tax deferred based on the current internal rate of return or other chosen investment strategy in your account.

Health Savings Account Withdrawals

All withdrawals from a Health Savings Account are tax free so long as they are used for what the I.R.S. refers to as qualified medical expenses. In order to take full advantage of the tax savings afforded by your HSA, you need to know what constitutes a qualified medical expense.

The I.R.S. considers several products, procedures, programs and equipment to be qualified.  Listed below is a sampling of both expenses large and small.  For a full list, please visits the I.R.S. website and search form 502.

• Meeting your deductible, coinsurance, and copay amounts
• Prescriptions (generic and brand), insulin  
• Dental expenditures, exams, braces, dentures, etc.
• Contact lenses, eye glasses and exams
• Laser eye surgery and vision correction
• Weight loss programs and smoking cessation
• Crutches, wheel chair, approved motorized devices
• Approved durable medical equipment
• Hearing aids and hearing exams
• Chiropractor and mental health visits

This is a long list, but not all inclusive.  There are several other items that qualify as medically necessary expenditures that you can pay for with the funds in your health savings account. 

Pay for All Approved and Qualified Expenses

It makes little sense to save money in your HSA if you are not later using the funds to pay for approved expenses.  If you later closed your HSA, then all the funds that had accumulated in your account would be distributed as taxable income once withdrawn.  If you have not been using your account for even the smallest of expenses, then you are not taking full advantage of the tax savings.

Of course, you may only wish to save enough to meet your deductible or coinsurance amounts should you ever need to pay them.  However, it is fiscally responsible to save more than these combined amounts and withdraw your accumulated funds for any and all approved medical expenses. 

Setup Your HSA - Contribute Retroactively

You may like the lower health insurance premiums associated with a HSA, but are not sure about creating the actual savings account.  It is a good idea to go ahead and setup the account with a local bank or one affiliated with your chosen health insurance company.

Even if you decide to put in a minimal amount, only for the purpose of creating the account, you can later fund your HSA retroactively.  For example, if you setup a HSA with $50, but then later had $2500 in medical expenses, the account would already be created and could later be funded before paying the anticipated doctor and/or hospital fees.

If you have not setup and funded your HSA, then you would not be able to write off the anticipated expenses that had already occurred.  Thus, it is wise to at least create and then fund your account with a small amount.  You can later add to it if needed.

Do I Have to Setup a Health Savings Account?

There are no rules stating that you must setup a HSA if your health insurance coverage allows for it.  Your monthly premiums would only pay for the health insurance itself.  Any funds deposited into a health savings account are in addition to the monthly premiums with the insurance company.

Request Quotes and Information

Hyers and Assoc. is an independent insurance agency serving several states and providing health insurance quotes and enrollment services direct.  We represent many national carriers including Aetna, Anthem, Assurant, Medcial Mutual, Golden Rule, United Healthcare and others.

Contact us for HSA health insurance quotes and information.

After Plan F, Plan G is the most comprehensive plan available and is an affordable choice if you are willing to exchange slightly more in out of pocket expenses for lower monthly premiums.

Medicare Plan G Supplement Benefits

Plan G covers all of the gaps in Original Medicare except for your Part B deductible.  The Part B deductible amount in 2010 is $155.  This amount usually increases year over year as designated by the government run Centers for Medicare and Medicaid Services.  Typically, the year over year increase is 5-10%.

Prior to June 1 2010, Plan G only covered 80% of Part B Excess claims, but plans purchased after June 1 cover this benefit at a 100% level.  If you live in or often travel to a state that allows doctors to charge Part B excess, then it is wise to consider a Medicare supplement that covers Part B Excess completely.  Both Plan G and Plan F cover this benefit in its entirety, but no other supplements will provide benefits for this gap.

Plan G Monthly Premiums and Costs

Plan G is usually quite affordable in most states and typically costs $20 or so less than Plan F on a monthly basis.  If you wish to keep your Medigap insurance premiums affordable, but also want to purchase comprehensive coverage, then Plan G can be a very good choice.

All Medicare supplement insurance plans will experience rate increase year over year and Plan G is no exception.  Predicting future rate increase is very difficult, but as long as you stay in reasonably good health, then you should be able to purchase a less expensive Medigap plan as your rates increase in the future.

In most states there in not a yearly open enrollment period which means you may need to undergo medical underwriting in order to qualify for a new plan.  Underwriting is required to prove that you are in moderate to good health.  Assuming you qualify medically, you can change to a new Plan G or any other Medicare supplement in order to keep your monthly premiums down.

Shopping Around for Supplemental Insurance

There are several insurance companies offering Medigap plans in each state and new companies are entering the marketplace very often.  It is important to work with an agency that is keeping up with these changes and trends.  As more affordable plans become available from other companies, your insurance agent should be in contact with you so that you are aware of your options.

Whether you purchase Plan G, Plan F or any other Medicare supplement insurance policy, it is important to keep in contact with your agent as rates increase and plans from new insurance companies become available in your area.

Request Medigap Rates and Information

At Hyers and Associates, Inc. we are an independent agency specializing in supplemental insurance policies.  We represent several Medigap providers and we are always looking for new, low cost providers for our current and prospective clients.

Please contact us for personal quotes today.

However, I did come across an annual statement recently that even amazed me - and I have been working with indexed annuities for well over a decade.

Unimaginable One Year Gain In Fixed Annuity

Full disclosure:  This was not a client of mine, but the statement was authentic and dare I say mind blowing.  This particular indexed annuity returned over 57% during a twelve month cycle for its owner.  That was far and away the best one year return I have ever seen on paper. 

The aforementioned annuity owner made a 57% interest return on his investment and his interest was locked-in and became part of the principal.  (This assumes the annuity owner did not withdraw some of the gains.)  That is simply an amazing return for a non-variable investment that has no direct ties to the market.

Indexed Annuity Gains - No losses

To be fair, a return this high is extremely unusual in an indexed account.  Most indexed annuities have been returning around 20% over the last twelve months (March to March or April to April.)  But this example certainly illustrates the power of indexed accounts.

What other fixed income, insured account can offer returns north of 20%, lock those returns in each year, and do it all without subjecting your principal and earned interest to stock market losses?  None that I am aware of.

Understanding Indexed Annuities - Moving Parts

Elements of annuity investing that are often overlooked are the spreads, caps, and participation rates.

Several annuity providers monkey around with these numbers from year to year and when they are changed in favor of the insurance company, it can greatly reduce your future earnings potential.

Why do I bring this up?  In the case of the person with the 57% rate of return, his spread, cap, and participation renewal numbers did not change one iota on his anniversary date.  Thus, his annuity has exact same earnings potential over the next twelve months as it did before. 

The annuity provider that credited the 57% is a well known and very well rated company in the marketplace.  They offer several terms and accounts to choose from, but their five and ten year accounts are most popular.  The unnamed annuity investor who locked-in this massive gain owns a ten year account.

Lock-In Yearly Interest Using Indexed Accounts

Let’s take a step back for a moment and remember the value of indexed annuities.  While double digit gains are fantastic during times like these, it is the unprecedented safety these accounts provide that can be most valuable for their owners.

There are several unknowns that can cause you to lose substantial amounts of money in the stock market.  We have experienced all kinds of world and economic events over the last decade that have derailed stock markets here and abroad on more than one occasion.

When the market goes down, your indexed annuity principal and earned interest are safe however.  You cannot lose money when the market inevitably corrects again and again.  If you are more interested in protection from market losses and you still desire the potential for above average returns, an indexed insurance product can be a very wise choice.

Request Information

I would imagine that you want to know who offers a fixed annuity that returned 57% in one year.  And I will be happy to tell you.

Contact us and I will email you brochures and personal illustrations.  Working together, we can decide if an indexed annuity is a suitable investment as part of your overall portfolio.