Ted's Blog

Mortgage Broker in Waterford, Michigan Explains "Reverse Mortgages" a Home Refinance Option for Seniors

Ted Lewicki (Pillar Financial Corporation) — Mon, 29 Sep 2008 12:14:09 -0500

Economic times are especially tough for seniors today. Many have worked for years expecting a nice pension, just to have the rug pulled out from under them when the company folded or they just cut back on benefits. Others are forced to continue working well into their 70's and 80's. Some will never enjoy retirement. This is a sad situation. The good news is there is now a solution for those who own a home.

The reverse mortgage for seniors is a government regulated program that allows seniors who are 62 and older to draw upon the equity in their home to supplement their social security and pensions. The beauty of the reverse mortgage is that it does not have to be paid back until the senior dies, moves or sells the home. Credit is not an issue as the reverse mortgage is determined by the equity in the home and the age of the applicant. The money can be used for whatever you choose, including home repairs, college for grandchildren, vacation and travel, long-term care or anything else you may need it for.

In most cases, if it sound too good to be true, it is; however, read on to learn about this wonderful program designed for those who really deserve a break in today's tough economic times!

How does a Reverse Mortgage Work?

A reverse mortgage, AKA (HECM), Home-Equity Conversion Mortgage is a loan based on the equity in your home. You trade the equity for tax-free income from a lender. The lender pays you in monthly payments, a lump sum or an equity line of credit you can draw on as needed, or a combination of these options. You still own your home and you are required to maintain homeowner's insurance, pay the property taxes and keep the home in good repair.

The loan doesn't have to be repaid until the senior dies, moves out of the home, or sells the home. At this time, the lender is to be paid in full, including any interest that has accrued. Any proceeds go to you or your heirs. In the event your proceeds do not cover the amount owed or your total withdrawals exceed the value of your home, your lender will be protected from loss by the Federal Housing Authority (FHA) insurance.

Most people who is 62 or over can get a reverse mortgage if they have equity in their home. Most states require counseling to be sure you understand what you are doing and no one is taking advantage of you.

As stated earlier, credit is no issue; the amount you can borrow is based on the value of your home, current interest rates and your age. The limit you can borrow is about 80% of the equity in your home. The amount you can draw increases if the value of your home increases over time. The government sets a total limit on what you can borrow based on where you live. In 2007, the limit was between $200,160 and $362,790, per year, even if your home is worth considerably more.

Reverse mortgages are a great solution if your income is low and your home is valuable. To determine if this is a good idea for you, consider how long you will live in your home. Closing costs tend to be high with fees based on the value of your home and the limit on federally insured reverse mortgages in your area. If you plan to move within the next few years, a reverse mortgage would not be a good idea. Talk to your local mortgage specialist to see if you qualify for a reverse mortgage and if it is the right option for you.

Ted Lewicki, president of Pillar Mortgage Corporation, specializes in reverse mortgages and financial planning for seniors. Ted offers a unique plan called the senior care package which includes financial planning for long-term care. http://www.pillarmortgage.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Mortgage Broker in Waterford, Michigan Explains "Reverse Mortgages" a Home Refinance Option for Seniors

Ted Lewicki (Pillar Financial Corporation) — Mon, 29 Sep 2008 12:13:50 -0500

In most cases, if it sound too good to be true, it is; however, read on to learn about this wonderful program designed for those who really deserve a break in today's tough economic times!

How does a Reverse Mortgage Work?

Local Farmers Insurance Agent Discusses "Life Insurance" in Waterford, Michigan: How Much Life Insurance Coverage do you Need?

Ted Lewicki (Pillar Financial Corporation) — Mon, 29 Sep 2008 11:06:40 -0500

Life insurance is essential if you have a family that depends on you for financial support. Life insurance protects your loved ones if you die. You should consider purchasing a life insurance policy if you are married and your spouse depends on your income, you have children or an aging parent or disabled relative who depends on your financial support or if your savings and other assets are not sufficient for their support. Other good reasons to have life insurance are if you own a large estate and expect to owe estate taxes or if you own a business. Your surviving spouse will need legal council to handle the estate and an accountant to handle the business. Life insurance will provide the money to pay for the necessary professional services needed in this case.

Some jobs are riskier than others; below is a list of the 10 most dangerous jobs according to the Bureau of Labor Statistics:

Timber cutters
Airline pilots
Construction workers
Truck drivers
Farmers
Groundskeepers
Other Laborers
Police
Carpenters
Sales occupations

Contact your insurance agent to help determine the type and amount of life insurance coverage you need. They have worksheets and calculator tools, which are also available online to crunch the numbers and figure out how much is enough.

Shop around and compare various policies and benefits offered. Premium costs vary so get several quotes before choosing a package that fits your individual needs and your budget. Buying life insurance is the best way to protect your family if you die. The amount of coverage you need increases as your family grows. Life insurance provides the financial support your loved ones will need to replace your income, pay off debts and cover the expenses of settling your estate.

There are two basic types of life insurance. Term life insurance provides coverage for a specified period of time and is more affordable if your need for life insurance is temporary. Maybe you only need the coverage until your children are grown. Cash value life insurance provides a death benefit with a cash value and offers life time protection.

Term life insurance is usually offered for a period of time ranging from 1 to 30 years. For example, if you have young children and you need insurance to provide for them until they have grown and completed college, you will need about 15 - 20 years coverage.

The amount of coverage you need depends on how much income your family needs and how much debt you owe. Your insurance agent will use a life insurance needs calculator to determine this amount. The amount of the premiums will be determined by several factors including your age, health, life style, family medical history and the risk involved with your occupation.

Once you have decided which type of coverage you need, the next step is to submit an application. The application will contain questions about your current and past health history and lifestyle. You may be required to have a physical which is arranged and paid for by the insurance company. Your completed application and the results of your physical will help the insurance company determine whether or not to offer you life insurance and how much the premiums will be.

When you are issued a policy, it is important that you read it over and understand it. The reading can be tedious and the lingo can be confusing, but do not put this off. Read it and make a list of questions to ask your insurance agent. If necessary, meet with your agent and go over the policy to be sure it is what you intended to buy and that it covers your needs. Most states have laws requiring your insurance company to offer a period of at least 10 days to review your policy and to cancel it without penalty.

The most important thing to consider is how much coverage you need. This is also the most difficult part. Some advisors say to multiply your annual income by seven or to buy enough insurance to replace the income you expect to make between now and retirement. Others say to buy enough to cover your debt. Neither of these methods are the right answer. You need to take a complete inventory of all your finances and think about the amount your beneficiaries will need to maintain their lifestyle, also considering children, their college educations and inflation.

Your needs will continue to change as you have children or accumulate assets. If you own a home, your needs will change as you pay down the principal balance. It is important to review your coverage every 3 to 5 years to be sure you have enough coverage. You may even find that as time goes by and debts are paid that you will need less coverage at a lower premium cost.

Figuring out how much coverage you need is a very lengthy and very complicated process including short-term needs, long-term debts, family maintenance expenses, your existing resources, your total expenses and the future value of money.

Short-term needs include final expenses, outstanding debts and emergency expenses, including medical, hospital, funeral expenses, attorney fees, probate costs and outstanding taxes that will need to be paid. Outstanding debts include credit card balances, auto loans, college loans and other bills. Emergency expenses should be included in a cash reserve amount to cover unforeseen medical emergencies or major home repairs.

Long-term debts include your mortgage and college tuition for your children. This one can be difficult to calculate because you have no way of knowing where your children are going to attend college or what course of study they will be going into. The US Department of Education reports college costs to have risen about 5% annually.

Family maintenance expenses include child care, food, clothing, utility bills and transportation costs. These expenses change as your children grow. Child care will decrease as the amount needed for food and clothing increases. Also consider extra curricular school activities that they may be interested in, requiring the purchase of musical instruments, sports equipment and uniforms and field trip costs to name a few.

Add up the total short-term, long-term and maintenance expenses and keep this number handy for the next steps in determining life insurance needs.

Resources you have to meet these needs include savings, stocks, mutual funds, other investments, social security and any life insurance that may be offered by your employer. Only include liquid assets as selling the home or vehicles would mean altering your family's lifestyle, which is one of the things you want to avoid doing by having life insurance.

Subtract the amount of resources from the total you came up with earlier to determine the amount of life insurance you need. If the figure is very high and the premium is not within your budget, see where you can make adjustments. Remember, you will be reviewing this data every few years and making changes accordingly. You will also be calculating in the future value of money based on your investments, your returns and inflation.

Even if you are an expert in finance, accounting and economics, the amount of life insurance you need is a very complex number to calculate. Your insurance agent has tools and worksheets to help you come up with a program that suits your needs and fits your budget. Do some research, ask questions and educate yourself before purchasing life insurance. A competent insurance agent will have plenty of questions to ask you as well to help determine your individual needs. He will also be available to answer questions and concerns you may have in the future and to review your coverage needs as your life changes.

This article was written by Ted Lewicki, a Farmers Insurance agent located in Waterford, Michigan. Ted has been an insurance agent for nearly 50 years. He has been a member of the Better Business Bureau with no reported complaints. Ted interviews his clients to learn just what type of policy they need so that they are adequately covered in the event of an unfortunate accident where they may be sued. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Farmers Insurance Agent in Waterford, Michigan Offers Insurance Tips for Homeowners: “Auto Insurance” “Flood Insurance” “Liability Insurance” “Disability Insurance” “Life Insurance”

Ted Lewicki (Pillar Financial Corporation) — Thu, 25 Sep 2008 14:55:17 -0500

Congratulations on the purchase of your new home! Now that you're unpacked and settled in, you should think about evaluating your insurance needs. You probably already have homeowner's insurance as this was a requirement of your mortgage company, but is it enough to protect you? Get this business out of the way now and enjoy life in your new home.

Homeowner's Insurance:

You most likely have a mortgage on your home, so your lender required a certain amount of insurance coverage in the event of a loss. If your home were to burn to the ground, would you be able to write a check to cover the balance due on the mortgage or to rebuild? Of course not! This is just one reason you carry homeowner's insurance. The minimum coverage you must have to satisfy your lender is a policy in the amount of the appraised value or the purchase price of the home. But have you thought about your furniture, appliances, clothing and other belongings? How do you replace everything you own should there be a fire or theft? These are things to consider when purchasing homeowner's insurance. An experienced insurance agent will ask you about your assets and calculate how much additional coverage you need to be completely covered in the event of a total loss.

Flood Insurance:

Flood insurance is not covered under a standard homeowner's policy. Some people live in an area where lenders will require flood insurance. Even if it is not required, but you live in a low-lying area or near a lake or other large body of water, you may want to purchase additional flood insurance. Flood insurance is for weather or nature related flooding. Your standard policy should cover flood damage if, for example, you're on vacation, your furnace fails and your pipes freeze and burst. But you may not be covered if your finished basement is flooded due to excessive rain. Be sure to ask your insurance agent about this.

Auto Insurance:

The law requires everyone to carry a minimum amount of auto insurance to cover damages and injuries caused to others in the event of an accident. If your car is financed, the financial institution will recover full coverage so that the loan paid if the car is wrecked beyond repair. But, if you are in a very serious accident causing major damage, injury or death and it is determined to be caused by your negligence, you may not be adequately covered. If you are sued, you stand a chance to lose everything, including your home, business and other valuables you may own. Now that you have purchased a new home, it is a good idea to evaluate all your insurance coverage to be sure you are protected. You may need to purchase an additional umbrella policy to protect your assets should damages exceed the coverage limits of your current auto and homeowner's policy.

Disability Insurance:

What if you become ill or are injured and unable to work? How would you pay your mortgage payment? Disability insurance will pay you a monthly benefit to replace a portion of your income until you are able to work again. Many employers provide disability insurance to their employees. If you are self-employed or do not have this benefit where you work, you may want to purchase additional coverage.

Life Insurance:

If you are the head of the household and the primary wage earner you should consider purchasing life insurance to protect your family and home if you should die. Life insurance can help provide for your family, paying off debts and replacing a portion of your income to take care of their needs. Some employers provide life insurance, but it might not be enough to provide financial security to your family.

A lot of the above insurance categories are optional; many are nice to have if it fits into your budget. A couple of newlyweds may not think about all these needs, but as your family grows, so do your financial needs. Be sure to consult your insurance agent to discuss your insurance needs now and in the future as you accumulate additional assets or have children. If you should get a large pay raise or a promotion at your job, consider using some of the extra money to purchase additional insurance coverage.

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Farmers Insurance Agent in Waterford, Michigan Offers Insurance Tips for Homeowners: “Auto Insurance” “Flood Insurance” “Liability Insurance” “Disability Insurance” “Life Insurance”

Ted Lewicki (Pillar Financial Corporation) — Thu, 25 Sep 2008 14:54:44 -0500

Homeowner's Insurance:

Flood Insurance:

Auto Insurance:

Disability Insurance:

Life Insurance:

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The Basics of "Homeowner’s Insurance" Explained by Farmers Insurance Agent of Waterford, MI

Ted Lewicki (Pillar Financial Corporation) — Thu, 25 Sep 2008 14:12:21 -0500

Your home is one of the largest investments you will ever make. Homeowner's Insurance is essential for protecting your investment. It is also important that you have adequate liability coverage to protect all of your other assets as well.

Basic Coverage:

A standard homeowner's policy will cover damage to your home and contents caused by fire and smoke, ice and snow, lightening, theft and frozen pipes. Your policy will also cover you in the event of liability claims if someone is hurt on your property, medical payments to third parties, and legal costs should you be sued. Most people have $100,000 - $300,000 in liability coverage on their homes; however, the very wealthy sometimes carry more as they have more to lose in the event of a lawsuit.

Additional Coverage:

You should read your policy carefully to find out exactly what is covered so you're not caught by surprise when you file a claim and it is denied. Most standard insurance policies do not cover damages caused by floods, earthquakes, war & terrorism and nuclear accidents. You may be able to purchase additional coverage for these items.

Other Valuables:

If you own a lot of valuable jewelry, such as an engagement ring or other valuables like antiques or furs, you will need to have these items appraised and itemized on your insurance policy in order for them to be covered in the event of a fire or theft.

How Much Coverage is Necessary?

Mortgage lenders require a minimum amount of coverage equal to the appraised value or the purchase price of the home; however, this is just for their protection. You may need additional coverage for your home and its contents. You should ask for replacement cost coverage to adequately protect your assets. Otherwise, you may just receive the actual cash value less depreciation for the years you owned the item. Replacement cost coverage provides the amount needed to replace the lost item today, regardless of how long you've owned it.

Discounts on Coverage:

There are several types of discounts you can get on homeowner's insurance premiums. One common discount is if you carry multiple policies with the same company, such as auto insurance, investment property insurance, life and health insurance. Many insurance companies give a discount for having good credit or if you have a home security system. A discount could also be offered if the occupants of your home are non-smokers, or if you live close to a fire department or fire hydrant. Some insurance providers offer discounts if you own a newer home or one that is built out of fire-resistant materials.

Shop Around:

If you are a first time home buyer, you probably have a lot to learn about homeowner's insurance. It's a good idea to shop around and get several quotes so you will have an idea of how much you should be spending. Annual insurance premiums vary from company to company and also from one neighborhood to another. A home located in a high-crime, urban area may cost more to insure than one in a more rural area where there is less crime. Don't necessarily go with the cheapest price; be sure you are getting the coverage you need. Also, check with your state's department of insurance to make sure the company you're dealing with has a good reputation in the industry.

A good insurance agent will interview you, the client, to determine just how much coverage you need. Many will come to your home to evaluate your needs and take photos. Be sure to ask the appropriate questions about coverage and read your policy carefully to be sure you are adequately covered. Do not simply take the word of your agent as mistakes could be made in processing your policy. Your agent should continue to be available to answer any concerns you may have once your policy is written. It is not difficult to upgrade when necessary. Also, be sure to review your coverage from time to time as you accumulate more assets or your home increases in value.

Understanding Health Care Plans: HMO, PPO, POS – Explained by your Local Waterford, Michigan Health Insurance Agent

Ted Lewicki (Pillar Financial Corporation) — Thu, 25 Sep 2008 11:26:05 -0500

The cost of health insurance has gone up significantly over the last decade, making it difficult if not impossible for smaller businesses to provide health care plans for employees. There are several types of health plans available, including HMO's, PPO's and POS plans. Some larger companies are able to offer their employees a choice of health plans or insurers where smaller companies are only able to offer one.

Here is an overview of the common types of health care plans:

HMO - Health Maintenance Organization

HMO's are generally the least expensive health care plan, but they are also the least flexible, requiring you to visit only those doctors who are in your HMO network. With these plans, you elect a primary care physician who is a part of the network. The primary care physician is your main health care provider and he has to give you a referral in order for you to see a specialist when necessary. This type of coverage requires a monthly premium and a co-pay of $5 - $10 for each doctor visit.

Prescription coverage varies and the percentage of prescription cost covered by the HMO is decided upon by the employer. The amount paid by the employee can be anywhere from a $5 co-pay on some drugs to a larger co-pay of almost the entire amount for others. It all depends on the plan that is worked out by the employer.

An HMO cannot require referrals for emergency care. They are required by law to cover emergency room visits; this is the only care they will cover without a referral from your primary care physician.

PPO - Preferred Provider Organization

A PPO is a more flexible plan than an HMO, allowing you to choose the doctor your visit. They do not require a referral from your primary care physician to visit a specialist, but the premium is generally higher for this type of plan. If you should visit a physician outside your network, you might have to pay for the treatment and file a claim with the PPO insurance provider for a partial reimbursement, generally up to 80%.

POS - Point of Service Plan

The characteristics of this type of plan are a blend of the HMO and PPO plans. You will be required to choose a primary care provider from the associated network. If you should visit a doctor outside of the network, you may be required to pay for the treatment yourself, unless you are referred by your primary care physician. In this case, the health plan will pay.

The insurance plan offered by an employer depends on the size of the company and the number of employees they have. The cost and flexibility of the plans vary. Usually the most flexible plan comes with a higher premium. If you have recently changed jobs and have new insurance coverage, you may end up having to change doctors if your doctor is not within the network of physicians who can accept your insurance.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Long-term care, Senior Care Package, Family care package, Financial Planning, home Insurance, auto Insurance, life Insurance, health insurance, Insurance, annuities, liability insurance, motor cycle insurance, boat insurance

Understanding Health Care Plans: HMO, PPO, POS – Explained by your Local Waterford, Michigan Health Insurance Agent

Ted Lewicki (Pillar Financial Corporation) — Thu, 25 Sep 2008 11:23:19 -0500

Here is an overview of the common types of health care plans:

HMO - Health Maintenance Organization

An HMO cannot require referrals for emergency care. They are required by law to cover emergency room visits; this is the only care they will cover without a referral from your primary care physician.

PPO - Preferred Provider Organization

POS - Point of Service Plan

Understanding Health Care Plans: HMO, PPO, POS – Explained by your Local Waterford, Michigan Health Insurance Agent

Ted Lewicki (Pillar Financial Corporation) — Thu, 25 Sep 2008 11:22:57 -0500

Here is an overview of the common types of health care plans:

HMO - Health Maintenance Organization

An HMO cannot require referrals for emergency care. They are required by law to cover emergency room visits; this is the only care they will cover without a referral from your primary care physician.

PPO - Preferred Provider Organization

POS - Point of Service Plan

Farmers Insurance Agent in Waterford, Michigan Offers Tips to Save on "Health Insurance" and Medical Costs

Ted Lewicki (Pillar Financial Corporation) — Wed, 24 Sep 2008 16:12:01 -0500

With the price of health care, insurance is a necessity. The cost of medical care is rising rapidly and few people are able to afford this luxury without insurance.

Types of Health Insurance Coverage:

Two common categories of health plans are indemnity plans and managed care plans such as health maintenance organizations (HMO's) and preferred provider organizations (PPO's) and point of service (POS) plans.

An indemnity plan offers the option of choosing your own doctors. They pay for your medical expenses, in full, in part, or up to a specified amount per day for a certain number of days.

Managed care plan provide broader coverage, but involve an arrangement between the insurer and a selected network of health-care providers. An HMO will require that a primary care physician coordinate all of your care, referring you to other specialists within their network, when necessary.

Whichever type of plan you choose to buy depends on your individual health care needs and your budget.

What costs are covered?

Health insurance plans vary, so you will want to ask questions and discuss your health care needs with your insurance agent. When comparing insurance plans, be sure to find out if they provide additional benefits that you may need, including prescription drugs, preventative care, mental health, maternity care and vision to name a few.

Out-of-Pocket costs:

In addition to the monthly premiums, you may have other associated costs like co-payments, coinsurance and deductibles. A co-payment is the amount you pay each time you visit the doctor or have a prescription filled. This is generally an amount much smaller than what it would be without insurance coverage. The deductible is the amount you pay toward your medical expenses during a one-year time before the insurance company picks up any costs. Coinsurance is the percentage of your medical costs that you pay after you have paid any deductibles.

Obtaining Health Insurance:

Some employers offer a group plan or you may belong to another affiliation such as a school or club. When these options are not available, you must purchase private health care. You can talk to your insurance agent about customizing an individual plan that meets your needs and fits your budget.

You want to look for a plan that offers the flexibility and benefits you need at the lowest cost. Like any major purchase, it is a good idea to shop around and get several quotes. Here are some questions you will want to ask:

What are the cost of co-pays, deductibles and coinsurance?
Does the plan offer the freedom to choose your own doctor?
Does the plan cover the medical and health services you need?
Is the insurance accepted by your current health care provider?
Is family coverage available?
Will the policy cover pre-existing conditions?
Is there a waiting period? How long is the waiting period?
Is it a requirement to have a complete physical first?
If you're a smoker, will this have an effect the cost of premiums?

Also check with your state's department of insurance for information about the reputation of the insurance company. Regardless of which company or plan you choose, it's no good if your insurance provider is constantly refusing claims.

Cutting the cost of medical bills is a sure way to cut the cost of insurance. A healthy lifestyle is obviously the most effective way of cutting down on medical expenses. Take advantage of programs that offer free or reduced health screenings. Exercise regularly, eat right, have regular check-ups and avoid bad habits like excessive drinking and smoking.

If you take prescription drugs regularly, see if a three-month supply will save you money. Check online resources for ordering prescriptions through the mail instead of going to the pharmacy. Request a generic equivalence of your prescription when possible. Some pharmacists provide generic drugs automatically unless you or your doctor specifies different.

Carefully read your medical statements to be sure you are only paying for the services received. This is important even if your insurance covers the cost. You can help keep your premiums down by making sure your insurance company is not billed for a procedure you did not receive. Call your medical provider if you have any questions about your statement. If you don't get satisfactory answers, have your insurance company review your claim.

Married couples can save by being on the same plan rather than maintaining separate insurance. Most plans allow you to add your spouse within 30 days of getting married. Some will make you wait until the annual open enrollment period to make this change.

Keep track of your medical expenses; many of them are tax deductible if you itemize. Allowable medical expenses include doctor bills, eye care, prescriptions, lab fees, dental costs, hearing aids and other medical supplies.

If your insurance plan is limited or you don't have insurance, check with your medical provider, local clinics and hospitals to see about free health screenings such as cholesterol tests, eye exams, mammograms and cholesterol testing. Many of these are only offered once a year but it can't hurt to ask.

Some insurance companies cover preventative care such as annual check ups to help you stay healthy, therefore, requiring less in expensive procedures and treatments. Ask if they provide for discounts on vitamins or health club memberships. It also doesn't hurt to negotiate with doctors on their fees, especially if you have no insurance. Many doctors offer a courtesy adjustment to people who do not have insurance.

Insurance can be very expensive; so can medical care. Shop around, ask questions and live a healthy lifestyle to prevent health problems and save money on medical costs. Even if you have the best health coverage available, it's a good idea to stay healthy and avoid medical procedures that can be just as miserable physically as they are financially.

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Automobile Insurance Agent in Waterford, MI offers Tips about Gap Insurance

Ted Lewicki (Pillar Financial Corporation) — Wed, 24 Sep 2008 13:13:09 -0500

Most people are not familiar with gap insurance and why it is so important to have. You should consider purchasing gap insurance if you owe money on your vehicle so that in the event of an accident or theft, you will not have to continue paying on a vehicle you no longer have.

What is gap insurance?

Most people finance their new cars rather than paying cash for them. Gap insurance is a product offered by car dealers to ensure the vehicle is paid off in the event of theft or an accident resulting in a total loss (meaning the vehicle is not worth repairing). Gap insurance protects you from the obligation of continuing to make payments when the vehicle is no longer in your possession, leaving you free to purchase another car without having to pay off your previous car loan.

The value of a car quickly depreciates, beginning right when you drive the new car away from the dealership. Even if you make a large down payment, chances are that if you're in a serious accident or if your car is stolen, your insurance will not be sufficient to cover the balance owed on your car loan. You are responsible to cover any deficiency not covered by your insurance company. This is reason people purchase gap insurance, which covers the balance of the loan remaining after your insurance claim is processed.

Book Value:

You may think your down payment is sufficient to leave your loan balance at an amount less than the book value of your vehicle, but that depends on many different factors such as the length of your loan and how well the make and model of your car retains its value. Unlike your home, your vehicle will lose value over time no matter how well it is maintained. This means there is a good chance that you will owe a balance on the loan after your insurance claim has been processed unless you pay additional premiums for replacement cost or carry gap insurance.

Is Gap Insurance Worth the Cost?

Maybe you have been very lucky or you're an excellent driver who has never had an accident or your car has never been stolen. If this is the case, you've probably never considered purchasing gap insurance. Anything can happen that is beyond your control. Your car can be totaled if it is hit while sitting in a parking lot. If it happens to be in the wrong place at the wrong time, it can be stolen.

The cost of gap insurance is minimal when you consider the possibility of a total loss when you owe more than the book value of the vehicle. Once you have purchased your new car, there is no adding the gap insurance at a later time. Some dealers may allow a grace period or a certain time frame where the option of purchasing gap insurance is available, but it is easier to do before your contract is submitted to the bank.

How Gap Insurance Works:

When you purchase your new car, the salesperson should offer you gap insurance. If you experience an accident or theft, resulting in a total loss, the financial institution will handle the gap insurance claim as long as they have been notified that you carry the additional coverage. They will submit a claim to your gap insurance agent for the balance owed on the vehicle as soon as your auto insurance claim is paid.

Gap insurance does not provide cash to you to buy a new car, but it does pay off the vehicle you no longer have possession of. You will still need to purchase a new car, but at least you will not be obligated to pay off the loan on the vehicle you no longer drive.

How to get Gap Insurance:

Gap insurance is not generally purchased from your automobile insurance agent. In most cases, it is offered to you by the dealer when you purchase your vehicle. The amount of gap insurance you can purchase depends on the financial institution that finances the vehicle. It is generally added to your loan. Some dealers give you up to 30 days to purchase gap insurance if you should elect not to, and then change your mind after purchasing a new car.

When you buy your vehicle, the cost of gap insurance is based on the length of time you need it to cover the loan balance. The insurance is only for the time that you owe on a vehicle. If you pay off the car early, the lender may refund any unused portion of your premium.

If you should pay off your loan as agreed and do not need the gap insurance, the premium in not refundable. The policy expires when the loan is paid in full or if you should default on your payments and the car is repossessed.

Replacement Cost Insurance:

Some people choose to carry insurance with replacement cost. Be sure to check the price on this option as it is usually significantly more than the cost of gap insurance. Gap insurance is a short-term policy that benefits the lender only. Gap insurance pays only the amount due the lender after your auto insurance claim has been processed.

With replacement cost, you receive the replacement cost of a new vehicle less the amount due on your loan. The advantage is you will likely have money for a down payment on another vehicle, but the cost is higher than gap insurance and not all insurance companies offer this option.

In summary, gap insurance is essential if you are financing a new car. By purchasing gap insurance you protect yourself from having to make two car payments in the event of a total loss; one payment for the lost vehicle and one for the replacement vehicle you must purchase. You will generally have 30 days to change your mind if you do not purchase the coverage when you purchase the vehicle; however, some dealers do not offer this option. It is better to have the coverage and not need it than to need it and not have it, so be sure to make the right decision about gap insurance when you finance a new vehicle.

"Farmers Insurance Agent" Addresses Finding Quality "Health Insurance" in Waterford, Michigan

Ted Lewicki (Pillar Financial Corporation) — Wed, 24 Sep 2008 10:59:45 -0500

Everyone should have some form of health insurance or basic medical coverage so they can see a doctor for yearly physicals or when they are ill. Private health insurance used to be something only the wealthy could afford, but there are companies that can make medical coverage a reality for you.

Shop Around and Ask Questions

Medical coverage varies from one company to another with many different plans available to serve your individual needs. Shop around, ask questions and take notes. At first, you may not know what to ask. As you visit with different insurance agents and hear about the different plans offered, you will become more familiar with the process and you will soon know just what you are looking for. Do not purchase a policy with the first company you make contact with; all insurance agents are trained to sell. The next one you visit will sound just as good. Maybe after shopping around, the first company will sound the best. This is why I recommend taking notes. You can always go back to the first company and ask questions.

With private health insurance, you will be responsible for paying the premiums rather that splitting the cost with an employer. Private health insurance is not as costly as it used to be with the competition among many local insurance companies. Be very selective when buying private health coverage; do not accept the cheapest package just because of the price. If it doesn't provide the care you need, you're just throwing money away. In this case, you're better off just paying the doctor bills! It's better to spend more money to get what you need than to spend less money and get nothing.

A good insurance agent will ask you the appropriate questions to determine the coverage you need. Maybe you just need something to cover regular doctor visits or coverage in the event of serious illness or injury. Some people need more; they may need long-term care in a nursing home or assisted living facility. No matter what your needs are, be sure to select the plan that suits your needs and your budget.

More Resources

The internet is a great place to do some research. You can take all the time you need to learn about the many different types of plans that are available. Many insurance companies have websites where you can "click here for a quote" to get an idea of how much the coverage is going to cost, with no obligation to do business with them.

Friends and family are another great resource for information. Ask them about their health coverage and who they do business with. Everyone likes to talk about what they know about. Most people are thrilled to be able to give advice; many try to force it on you even when you don't ask for it. Imagine what you can find out if you ask!

Your doctor will also be able to give you some recommendations. Find out what type of insurance your doctor accepts, especially if you're very comfortable with your doctor and have no desire to switch medical providers. If you get a great deal on coverage that works for you, it's no good if your doctor cannot accept it.

Your Insurance Agent

Another import issue when shopping for health insurance is an agent that you can easily communicate with. If there seems to be a personality conflict with an insurance agent, you may want to continue shopping around. No matter how good of a deal you're offered, what good is it if you have difficulty filing claims? A good insurance agent will continue to be available to answer your questions and concerns even after making the sale.

Put all you eggs in one basket?

Many people only deal with one insurance agent for all their insurance needs. Did you know that most auto or homeowners insurance agents also provide health insurance? Some insurance agents are financial advisors as well. A full service insurance agent is not a bad idea. Your insurance agent is sort of like your doctor. He knows all about your financial situation and your liability needs. Why shouldn't he also know about your health care needs? There is often a nice discount when you have multiple policies with one insurance company. If you like your automobile insurance agent or your homeowner's insurance agent and the company is good about taking care of you when you file a claim, this is probably the place to start with your shopping for private health insurance.

All types of insurance can be very expensive, but they can also be very reasonable. Be sure to ask around and find a plan that suits your needs and your budget. Make sure you can effectively communicate with your insurance agent should you have questions or concerns. It is also a good idea to schedule an annual appointment with your insurance agent to review your policy to be sure your coverage is adequate.

Long-term care, Senior Care Package, Family care package, Financial Planning, home Insurance, auto Insurance, life Insurance, health insurance

"Farmers Insurance Agent" of Waterford, Michigan Discusses "Automobile Insurance" What Every Driver Must Know!

Ted Lewicki (Pillar Financial Corporation) — Wed, 24 Sep 2008 10:55:09 -0500

Auto insurance is required by law for anyone who purchases a car in any state in the US. Anyone who is caught driving a vehicle without auto insurance faces heavy fines and possible jail time. In addition, your car can be seized and impounded. The total in fines, impound fees and bail to get out of jail is far more than the cost of the insurance. Another good reason for auto insurance is to cover you if you are involved in an accident, causing damages and injury to someone. If you are adequately covered, and you get sued for millions of dollars, the insurance company will have attorneys to represent you and handle the claim. Otherwise, you stand a chance to lose everything you own, and more! So, if you're going to drive, be sure to have insurance!

The main reason the law requires you to have auto insurance is to cover damages and injury to others as a result of a traffic accident. This is very important as the damages and medical expenses can be very expensive. If you cause an accident that injures or kills someone, are you able to write a check to compensate them for their loss? Most likely, the answer is "no way!"

There are several types of auto insurance coverage to choose from, depending on the value of your vehicle and how much you face losing in the event of a serious accident resulting in a lawsuit. You may choose the bare minimum, PLPD (Personal Liability and Property Damage) coverage, which covers the injured party, but not you. If your car has no real cash value, then this may be the coverage to choose. If you drive a very expensive car, or the car is financed, you will be required to carry full coverage, which will cover the balance owed on the vehicle should it be totaled in an accident. There are also policies that cover theft of your vehicle.

The cost of the insurance depends on the type of policy you choose, the make and model of your vehicle, its value, the area where the car is parked at night, your driving record and how many miles you drive annually, to name a few. There are many factors used to calculate automobile insurance rates. Different companies have different rates, so it is important to get several quotes before purchasing automobile insurance. It is also important to be sure the company you choose to work with has a good reputation for handling claims. Most people get referrals from friends and family who already have a relationship with an insurance agent. A good insurance agent will explain all options and ask the appropriate questions about you to be sure you are adequately covered.

If you're in the market to purchase a car, be sure to visit your insurance agent first, to be sure the cost fits your budget. Studies have shown that some vehicles are more commonly stolen than others. Some vehicles are rated safer than others in the event of an accident. Check the "crash test" ratings on the models you have in mind and see your insurance agent for more information and advice. In any event, buckle up and maintain proper automobile insurance now to avoid stiff penalties and fines, jail time, loss of your driver's license and a nightmare down the road!

Insurance, home Insurance, auto Insurance, life Insurance, health insurance, annuities, liability insurance, motor cycle insurance, boat insurance

“Auto Insurance” “Farmers Insurance” “Progressive Insurance” Waterford, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sat, 20 Sep 2008 18:46:43 -0500

A-1 Insurance Agency in Waterford, Michigan has been in business for nearly 50 years, serving all insurance needs.

The Farmers Insurance Group of Companies was founded in 1928 when Farmers Insurance Exchange, an automobile insurer, was formed. As customer demand for additional insurance services increased, the Fire Insurance Exchange and Truck Insurance Exchange wee established for home and commercial insurance needs. Today, the Farmers Insurance Group of companies is one of the country's largest writers of both private passenger automobile and homeowners insurance.

Drive Insurance, a division of Progressive Insurance

Knowledgeable advice from an Insurance Specialist - Drive is sold by independent agents, licensed insurance professionals who take the time to understand your insurance needs and provide coverage options customized to protect you and your family.

Competitive Rates - Drive offers low rates for virtually any driver and any vehicle.

Superior Claims Service from Progressive - All Drive customers get claims service from Progressive, the company that pioneered 24/7 claims service and now offers a choice in how to have your car repaired.

Call Ted Lewicki at 248-674-0355 today or visit http://www.a-oneinsurance.com for your No Hassle Insurance Quote!

A-One Insurance represents a variety of insurance companies to cover your insurance needs.

Residential:

Automobile Insurance

Boat Insurance

RV Insurance

Motorcycle Insurance

Antique Auto and Boat Insurance

Homeowners Insurance

Health Insurance

Financial Management

Commercial:

Commercial Auto Insurance

Business Liability Insurance

Property Liability Insurance

Business Health Insurance

Worker's Compensation Insurance

Servicing all of Oakland County with many clients in West Bloomfield, Bloomfield Hills, Farmington, Farmington Hills, Waterford, Rochester, Auburn Hills, Lake Orion, Oxford, Holly, Ortonville and neighboring cities and communities.

Ted Lewicki, Farmers Insurance Agent Acknowledged for his One-Stop Mortgage, Financial and Insurance Services in Waterford, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sat, 20 Sep 2008 18:45:36 -0500

Ted is committed to 100% customer satisfaction and assurance that his clients are adequately covered with liability insurance based on their individual lifestyle

Waterford, Michigan-First time home buyers in Waterford, Michigan appreciate the convenience of a mortgage broker who is also a Farmers Insurance Agent. Ted Lewicki, of A-1 Insurance, an independent insurance agency in Waterford, Michigan, provides a valuable service to his clients. Ted spoke at a workshop recently where he gave a lot of valuable information and advice to first time home buyers. He taught them all about applying for a mortgage and what they will need to bring to their mortgage broker to start the application. He also covered homeowners insurance, explaining in detail the purpose of homeowners insurance. "Homeowners insurance is a requirement if you have a mortgage on your home. There must be enough coverage in the event of a loss to cover the mortgage balance owed on the home, Ted explained. "You also need to have adequate liability insurance in the event of an accident causing injury to someone on your property."

"Ted Lewicki is the only person I know of in the state of Michigan who holds an Insurance License and a Mortgage Brokers License; in addition, he is an approved FHA Correspondent," said Mark Maupin, a local real estate investor. With nearly 50 years experience in the insurance business and over 20 years mortgage experience, Ted is proud to say he has never received a complaint about his performance. He customizes his service to fit the individual needs of his clients. "I'm so glad I attended the workshop when I did," said one of Ted's customers who recently purchased a home. "It was so convenient to be able to apply for my mortgage and insurance with the same agent. This way, I know I'm adequately covered."

Ted makes sure his customers have adequate insurance on their home to cover the debt, and he takes things a step further, making sure they have adequate liability insurance. Ted explained, "Someone who has more assets than the average consumer has more to lose if they are sued. They need more liability insurance coverage than the person who has a smaller home and fewer assets to protect."

Ted Lewicki, owner of A-1 Insurance Agency is located in Waterford, Michigan. For more information on his insurance products, visit http://www.a-oneinsurance.com/

Contact:

Ted Lewicki

A-1 Insurance Agency

3129 Dixie Hwy

Waterford, MI 48328

Phone: 248-674-0355

Email: info@a-oneinsurance.com

Website: http://www.a-oneinsurance.com/

“Conventional Mortgages” “Reverse Mortgages” “Refinance Property” “Senior Care” “Long-Term Care” “Individual Health Care” “Family Health Care” “Group Health Care” “Retirement Plans” “Disability Insurance” Waterf

Ted Lewicki (Pillar Financial Corporation) — Mon, 08 Sep 2008 10:57:03 -0500

Pillar Financial Corporation offers more than just mortgages. We offer assurance through finance, investment and retirement product-solutions that can help make sure things you expect to happen, will.

Pillar Financial has the unique distinction of being the home of the original Senior Care Package and Family Care Package.

Senior Care Package:

A combined 10 pay LTC and 10 payout reverse mtg. to lock in LTC cost.
Lower cost lifetime pay and lifetime coverage
Lowest cost LTC term with a Cash account for emergencies
Medicare Supplement Plans
Group Long Term Care
Email: tlewicki@pillarmortgage.com

Family Care Package:

Individual Health Care Plans
Family Life Insurance
Group Health Care
Family Health Care Plans
Individual Disability Coverage
Group Disability Insurance
Group Retirement Plans
Website: http://www.pillarmortgage.com

We also do conventional mortgages, reverse mortgages and financial planning.

Ted Lewicki

Pillar Financial Corporation

3129 Dixie Hwy

Waterford, MI 48328

Phone: 248-674-8171

Servicing: Oakland County, Addison Township, Auburn Hills, Berkley, Beverly Hills, Bingham Farms, Birmingham, Bloomfield Township, Clawson, Commerce Township, Farmington, Farmington Hills, Ferndale, Franklin, Hazel Park, Highland Township, Holly, Holly Township, Huntington Woods, Independence Township, Keego Harbor, Lathrup Village, Lyon Township, Madison Heights, Milford, Milford Township, Northville, Novi, Oak Park, Oakland Township, Orchard Lake, Orion Township, Oxford Township, Pleasant Ridge, Pontiac, Rochester, Rochester Hills, Royal Oak,
Southfield, South Lyon, Troy, Walled Lake, Waterford Township, West Bloomfield Township, White Lake Township, Wixom

“Auto Insurance” “Homeowners Insurance” Liability Insurance” “Car Insurance” “Boat Insurance” “RV Insurance” “Motorcycle Insurance” Waterford, Michigan

Ted Lewicki (Pillar Financial Corporation) — Mon, 08 Sep 2008 10:34:49 -0500

A-1 Insurance is an independent insurance agency located in Waterford, Michigan. We represent a variety of insurance companies to serve your insurance needs.

Residential:

Automobile Insurance

Boat Insurance

RV Insurance

Motorcycle Insurance

Antique Auto and Boat Insurance

Homeowners Insurance

Health Insurance

Financial Management

Commercial:

Commercial Auto Insurance

Business Liability Insurance

Property Liability Insurance

Business Health Insurance

Worker's Compensation Insurance

Ted Lewicki has been in the insurance and financial management business for nearly 50 years. Call 248-674-0355 or visit http://www.a-oneinsurance.com for a No Hassle Insurance Quote.

A-1 Insurance Agency

3129 Dixie Hwy

Waterford, MI 48328

Phone: 248-674-0355

Email: info@a-oneinsurance.com

Servicing: Oakland County, Addison Township, Auburn Hills, Berkley, Beverly Hills, Bingham Farms, Birmingham, Bloomfield Township, Clawson, Commerce Township, Farmington, Farmington Hills, Ferndale, Franklin, Hazel Park, Highland Township, Holly, Holly Township, Huntington Woods, Independence Township, Keego Harbor, Lathrup Village, Lyon Township, Madison Heights, Milford, Milford Township, Northville, Novi, Oak Park, Oakland Township, Orchard Lake, Orion Township, Oxford Township, Pleasant Ridge, Pontiac, Rochester, Rochester Hills, Royal Oak, Southfield, South Lyon, Troy, Walled Lake, Waterford Township, West Bloomfield Township, White Lake Township, Wixom

Medicare Friendly Income Products: Anuities and Financial Security in Retirement

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:39:04 -0500

Medicare Friendly Income Products

What is an annuity?

Annuity ... from the medieval Latin "Annuitas," meaning "yearly payment." An annuity is an agreement between an individual and an insurance company. An individual pays some amount of money (referred to as a "premium") to an insurance company, which the company later pays back under an agreed-to payment schedule.

One method of receiving income might be a lump sum payment; another might be a guaranteed income to last at least as long as the annuitant lives. Most annuities have a deferral period (the period prior to the time income payments begin). During this deferral period the interest earned on the annuity is free from income tax until withdrawn.

How does an annuity help provide financial security in retirement?

Just a heartbeat ago, the average worker could not expect to live more than a few years past age 65, the normal retirement age. Now any healthy person may reasonably expect to live into his or her late seventies or eighties. Many people still face an uncertain financial future when their regular stream of income stops. Purchasing an annuity to guarantee a regular retirement income can be a highly satisfactory solution.

Single Premium Immediate Annuity Products

Standard Life of Indiana offers two great Single Premium Immediate Annuities: SPIA^TM and SPIA+^TM.

Single Premium Immediate Annuities (SPIA) are purchased with a single lump sum investment of funds. The source of the funds might be life insurance proceeds, an inheritance, a one-time sale of assets, the sale of a business, a distribution from another annuity, or a distribution from a retirement plan. Income generally begins under an SPIA one payment period after the single premium has been paid and the annuity is issued. Income may be deferred under an SPIA, but if it is, the contract usually cannot be surrendered for its cash value, as is possible with deferred annuities.

SPIA's may generally be purchased to pay income on a monthly, quarterly, semi-annual or annual basis. This means that the first income payment will generally occur one month, three months, six months, or one year after issue.

SELECT ANNUITY

With the Select Annuity, the client has the satisfaction of knowing they are earning the highest possible yield, consistent with safety. The initial interest rate is guaranteed for a period as stated on the specifications page of the contract. On each anniversary your client will receive a complete accounting detailing their contributions and their account value.

The Select Annuity has tax-deferred accumulations...tax-favored income for the rest of your client's life, you can only get this from Standard Life!

Saver's 5, 6, 7, 8, 9, or 10^TM

A traditional fixed annuity with a fixed year term -- plus a bailout provision. If your renewal rate falls below the safety withdrawal rate (bailout), you may withdraw your entire account value penalty free

Value Plus^TM

Traditional annuities offer tax-deferred accumulations and tax-favored income for the rest of the policyholder's life. Traditional annuities bring the satisfaction of earning the highest possible interest rate - consistent with safety.

Value Plus^TM: The first tax-deferred annuity to offer a re-entry provision. The re-entry provision allows clients, at the end of the fifth year, and every four years thereafter to "re-enter", or start all over, with current first year bonus and base rates. In addition, the ValuePlus annuity offers both regular and Medicaid-friendly annuitization options at the end of the first contact year.

Guaranteed Five: Overview

Since 1934, Standard Life has been serving people just like your clients all over America. And we're proud to say that our annuity programs are some of the finest you'll find.

With the Guaranteed Rate Annuity, you'll have the satisfaction of knowing that the client is earning the highest possible yield, consistent with safety, on 100% of your initial contributions. Your yield will be guaranteed for the period specified on the contract.

This product is a single premium, tax deferred annuity with a long term interest guarantee and market value adjustment

Equity Income Plus: Overview

EQUITY INCOME^TM PLUS ANNUITY

The Equity Income^TM Plus Annuity is a traditional tax-deferred annuity that will offer you stock market-linked returns with none of the losses...and a 10% annuitization bonus.

At the end of each month after the annuity is issued, and with each subsequent payment, we record the value of the Standard & Poor's® 500 Index. On each one-year anniversary of the policyholder's Equity Income^TM Plus payment, we compare the average of the 12 monthly values to the value of the S&P 500 Index at the beginning of the payment year. Then the percentage of change is multiplied by the participation rate in effect for the annuity. The resulting percentage rate is the annual interest rate applied to the value of the annuity for the year.

Remember, the Equity Income^TM Plus Annuity averages its return over the course of a policy year. In a volatile market, averaging may tend to produce higher index increases if the index has risen and fallen substantially between measuring points. This, along with strong guarantees (114% if held for the full 10-year term, assuming no withdrawals), and a guaranteed participation rate make the Equity Income^TM Plus the product of choice for many financial planners.

For individuals desiring a lifetime income, the Equity Income^TM Plus will credit them with a 10% annuitization bonus (based on their initial deposit).

The Equity Income^TM Plus Annuity credits interest once a year at a guaranteed rate of 100% of that year's growth in the monthly average of the Standard & Poor's® 500 Index, less an index adjustment and subject to a maximum rate stated in the contract.

If the S&P 500 Index declines in any given year, the principal and all previous gains are locked in, as along as no withdrawals have been taken.

"A tremendous product to compliment other retirement income."

What are you really earning?

When it comes to interest rates, do you calculate the effects of income taxes?

Taxable investments, like Certificates of Deposit, post their current interest rates without the effect of income taxes.

After - Tax Yields can be significantly less than advertised.

Tax-deferred vehicles, like Annuities, are credited with 100% of their yield because you don't have to pay income tax on annuities until you withdraw the money.

Ted Lewicki can help with all your insurance and financial planning needs. Visit http://www.pillarmortgage.com/ more information and details about his special Family Care Package and Senior Care Package.

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Senior Health Care: "Medicare Supplement" "Hospital Insurance" "Medical Insurance" - Highland Twp, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:37:48 -0500

Medicare Supplement

Medicare is a federal health insurance program for people over 65 years of age or better, and certain younger people with disabilities or End-Stage Renal Disease (permanent kidney failure). The program contains 2 parts:

Part A - Hospital Insurance

Part A helps pay for care in hospitals, some skilled nursing facilities, hospice, and some health care.
For most people, Part A is premium-free because they paid Medicare taxes while they were working.

Part B - Medical Insurance

Part B helps pay for doctors, outpatient hospital care, and some other medical services that Part A does not cover, such as the services of physical and occupational therapists, and some home health services.
You pay the Medicare Part B premium of $45.50 per month in 2000.
You are automatically eligible for Part B if you are eligible for premium-free Part A. You are also eligible if you are a United States citizen or permanent resident age 65 or better.

It pays for much of your health care, but not all of it. You still pay for some costs yourself, unless you buy more insurance. This is where Medicare Supplement policies come to play. We will discuss this issue later on.

Medicare General Enrollment Period is from January 1 through March 31 of each year. You can sign up for Part A or Part B at your local Social Security Administration office. Part B coverage will start on July 1 of that year.

If you did not take Part B when you were first eligible because you or your spouse were working and had group health plan coverage through your or your spouse's employer or union, you can sign up for Part B during a Special Enrollment Period.

You can sign up anytime you are still covered by the employer or union group health plan through your or your spouse's current or active employment, or

Within 8 months of the date when the employer or union group health plan coverage ends, or when the employment ends (whichever is first).

If you are disabled and working (or you have coverage from a working family member), the Special Enrollment Period rules also apply. Most people who sign up for Part B during a Special Enrollment Period do not pay higher premiums. However, if you are eligible, but do not sign up for Part B during the Special Enrollment Period, the cost of Part B may go up.

What is a Medicare Supplement policy and how does it work?

A Medicare Supplement policy is sold by private insurance companies to fill the "gaps" in Original Medicare Plan coverage. In all but three states (Minnesota, Massachusetts, and Wisconsin), there are 10 standardized Medicare Supplement plans called "A" through "J". Each plan has a different set of standard benefits.

When a Medicare Supplement policy is purchased, you pay a premium to the insurance company. As long as you pay your premium, policies bought after 1990 are automatically renewed each year. This means that your coverage continue year after year as long as you pay your premium. You still much pay your monthly Medicare Part B premium.

Question: If I am in the original Medicare Plan, why would I buy Medicare Supplement Insurance?

Answer: Medicare Supplement Insurance may help you lower your out-of-pocket expenses and receive more health insurance coverage.

You may want to buy Medicare Supplement Insurance because the original Medicare program does not pay for all of your health care. There are "gaps" or costs that you must pay. Purchasing a Medicare Supplement Insurance policy may fill these "gaps" or costs.

When you purchase a Medicare Supplement Insurance policy you pay a premium to the insurance company selling the policy. As long as you pay your premium, policies bought after 1990 are automatically renewed each year. This means that your coverage continues year after year as long as you pay your premium. However, you still must pay your monthly Medicare Part B premium.

You do not need to buy a Medicare Supplement policy if you are in a Medicare managed care plan, Private Fee-for-Service plan, Medicare Medical Savings Account plan, or a Religious Fraternal Benefit plan.

In all but three states (Massachusetts, Minnesota, and Wisconsin), you can buy any one of up to 10 standardize Medicare Supplement policies (Plans A through J) that are sold in your state. Each standardized Medicare Supplement policy must cover basic benefits which includes:

Inpatient Hospital Care: Covers the Part A coinsurance and the cost of 365 extra days of hospital care during your lifetime after Medicare coverage ends.
Medical Costs: Covers Medicare Part B coinsurance (generally 20% of the Medicare approved payment amount).
Blood: Covers the first 3 pints of blood each year.

Mutual of Omaha and State Mutual sells Plans A, C, D and F.

Question: When is the best time to buy a Medicare Supplement Insurance policy?

Answer: The best time to buy a Medicare Supplement Insurance policy is during your open enrollment period.

Your Medicare Supplement open enrollment period last for 6 months. It begins on the first day of the month in which you are both age 65 or over; and enrolled in Medicare Part B. If you buy a policy during your Medicare open enrollment period, the insurance company must shorten the waiting period for pre-existing conditions by the amount of previous health coverage (creditable coverage) you have.

Question: How can I tell if I am in my Medicare Supplement open enrollment period?

Answer: Your Medicare card shows the dates that your Part A and/or Part B coverage started. If you are age 65 or older, you can figure out whether you are in your Medicare open enrollment period by adding 6 months to the date that your Part B coverage starts. If that date is in the future, you are still in you Medicare open enrollment period. If that date is in the past, you have missed your Medicare open enrollment period.

Question: What situations give me the right to buy a Medicare Supplement policy after my open enrollment period ends?

Answer: There are certain situations involving health coverage changes where you may have the right to buy a Medicare Supplement policy after your open enrollment period ends. These are called "guaranteed issue" rights because insurance companies are required by law to issue you a policy.

For example:

Your Medicare managed care plan or Private Fee-for-Service plan is leaving the Medicare program or stops giving care in you area; or
You move outside your Medicare health plan's service area; or
You leave the Medicare health plan because it failed to meets is contract obligations to you; or
You are in an employer group health plan that supplemented or paid some of the coasts not paid for by Medicare, and the plan ends you coverage; or
Your health coverage ends through no fault of your own; or
You dropped your Medicare Supplement policy to join a Medicare managed care plan, or Private Fee-for-Service plan, or buy a Medicare Select policy for the first time, and then leave the plan or policy within one year after joining.
You joined a Medicare Health plan when you first became eligible for Medicare at age 65, and within one year of joining you decided to leave the Medicare health plan.

In these conditions, the Medicare insurance company cannot deny you insurance, place conditions on a policy, or charge you more for a policy because of past or current health problems.

Important Note:

If you are under age 65 and disabled or have End-Stage Renal Disease, you may have the right to buy certain Medicare Supplement policies that are sold to people under age 65.

Question: Does the Medicare Supplement Insurance company pay my doctor directly?

Answer: The insurance company will pay your doctor or provider directly when:

Your doctor or supplier has signed an agreement with Medicare to accept assignment of all Medicare claims for all people with Medicare;
Your policy is a Medicare Supplement policy; and
You tell your doctor's office to put on the Medicare claim form that you want Medicare insurance benefits paid to the doctor or supplier. Your doctor will put your Medicare Supplement policy number and company on the Medicare claim form. You will need to sign the claim form.

When these conditions are met, the Medicare Carrier will process the claim and send it to the Medicare Supplement Insurance company. You Medicare Supplement Insurance company will pay your doctor or provider directly and then send you a notice. If you don't get this notice, you may ask your insurance company for it.

In most cases, Medicare claims are sent directly to the insurance company, even if the doctor does not accept participation agreement.

Question: What happens if the Medicare Supplement Insurance company does not pay my doctor directly?

Answer: If the Medicare Supplement Insurance company does not pay your doctor directly (when the above 3 conditions are met), you should report this to your State Insurance Department.

Question: Can I pay on my own for services that are not covered by Medicare?

Answer: Yes, you may choose to pay on your own for services the original Medicare plan doesn't cover. You are always free to get non-Medicare-covered services on your own if you choose to pay for the service yourself.

Question: Can my Medicare Supplement Insurance company drop me?

Answer: In most cases, no. Medicare policies sold after 1990 are required to be guaranteed renewable. This means that your insurance company must let you renew your Medicare policy unless you do not pay the premiums, you lie, or commit fraud under the policy. There is only one situation where you may lose a Medicare guaranteed renewable policy: if the insurance company goes bankrupt.

In addition, insurance companies may refuse to renew older Medicare Supplement policies that were sold as guaranteed renewable. To do this, an insurance company must decide to cancel all policies of this type sold in your state.

Question: Do I have to switch my older Medicare Supplement policy for one of the newer standardized Medicare Supplement plans?

Answer: No, you do not have to switch your policy.

Question: If I decide to switch my Medicare Supplement policy, and then I change my mind, can I go back to my older Medicare Supplement policy?

Answer: No. If you do switch Medicare Supplement policies, you will not be able to go back to your Medicare Supplement policy if it was sold to you before 1990.

Question: Do I have to have my Medicare Supplement policy for a certain length of time before I can switch to a different Medicare Supplement policy?

Answer: No. However, if had a Medicare Supplement policy for at least 6 months and you decide to switch, your second Medicare Supplement policy generally must cover you for all pre-existing conditions. If you had a Medicare Supplement policy for less than 6 months, the new policy must give you credit for the time you were covered under the older policy. If there is a benefit in the second Medicare Supplement policy that was not in your first policy, the company can make you wait up to 6 months before covering that benefit.

Question: Do I need more than one Medicare Supplement policy?

Answer: No. It is illegal for insurance companies to sell you a second policy. If you already have a Medicare Supplement policy and you want to buy another one, you must sign a statement saying that you plan to cancel your first Medicare Supplement policy. Do not cancel your first policy until the second one is in place, the pre-existing condition waiting period is over, and you decide to keep the second Medicare Supplement policy. You have 30 days to decide if you want to keep the new policy. This is called your free look period.

Important Note:

If you have further questions relating to Medicare Supplement policies, please refer to your 2000 Medicare Supplement Buyer's Guide.

Family Health Care Facts about Medicaid: Michigan "Health Care" "Medical Insurance" "Hospital Coverage"

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:35:56 -0500

About Medicaid
The Medicaid program provides medical benefits to people who are financially needy. This program is not primarily a program for people who are elderly. Rather, it is for people who are poor. It is not available to seniors under the age of 65, unless they are blind or disabled. However, Medicaid eligibility is important to seniors due to gaps in Medicare coverage. For example, as a result of Medicare's limited nursing home coverage, less than 10 percent of nursing home costs in Michigan are paid by the Medicare program. Due to the high cost of nursing home care, many seniors living in nursing homes need Medicaid to help pay for their care. Medicaid also pays for support services provided to people with disabilities through the Family Independence Agency and the local Community Mental Health system.

The Federal Department of Health and Human Services, the Michigan Department of Community Health and the Family Independence Agency administer Medicaid. The program uses both federal and state funds.

Some people mistakenly believe that any indigent person may qualify for Medicaid. The fact is, that to qualify for the Medicaid program, a person must pass 4 eligibility tests:

(1) Categorical Eligibility: blind, disabled, age 65 or older, SSI recipient, former SSI recipient;

(2) Non-financial Eligibility: Michigan resident, United States Citizen or Alien status, social security number;

(3) Financial Eligibility Requirements: asset poor; income poor;

(4) Procedural Requirements: complete and sign an application form, provide timely proof of eligibility, and report changes in circumstances.

To apply for Medicaid, contact your local Family Independence Agency. There is at least one office in every county. You can pick up an application form ahead of time if you wish. Application can be made at any time.

The financial eligibility requirements of this program are complex and confusing. Medicaid has specific limits on the amount of assets and income you are allowed to keep and still qualify for Medicaid nursing home coverage. Income includes any money or payments you receive such as Social Security benefits pensions, interest, dividends, rent from a tenant, or Veteran's benefits.

An asset is anything that you already own. Medicaid counts some assets toward your eligibility, and exempts others from affecting your eligibility. The most common countable assets are:

(1) cash, savings and checking accounts;

(2) certificates of deposit;

(3) U. S. Savings Bonds;

(4) individual retirement accounts and Keogh plans;

(5) nursing home trust funds;

(6) prepaid funeral contracts which can be cancelled;

(7) trusts (depending on the terms of the trusts);

(8) real estate, or land contracts or mortgages held on real estate;

(9) boats or recreational vehicles; and

(10) stocks, bonds and mutual funds.

A single person can have up to $2,000 in countable assets and still be eligible for Medicaid. In addition, a single person can have assets that are exempt from deter- mining their eligibility for Medicaid. The most common exempt assets are:

Your home
Personal belongings and household effects
Your car
Income-producing real estate (the annual income after expenses must equal at least 6% of your equity, and any income that equals more than 6% of your equity may be considered an asset)
An irrevocable prepaid funeral contract
Life insurance proceeds which are assigned for your funeral expenses (and the funeral expenses of your spouse). There is a limit to how much you can assign
Burial space items and services for you, your spouse or members of your immediate family. This includes such items as a casket, burial plot, vault, head- stone and the opening and closing of the grave site
A burial fund which is set aside for funeral expenses not covered by the burial space exclusion
Up to $1,500 cash surrender value of life insurance
Assets which you and your spouse do not have the legal right to use or dispose of
Assets you and your spouse have been unable to sell. The asset(s) must have been up for sale for a least 30 days during the last 3 months. The asking price must not have been more than fair market value. You must not have received a reasonable purchase offer.

If you own an asset jointly with someone else, Medicaid will consider the entire asset to be yours (if the asset is cash, savings and checking accounts and other similar types of assets). If the asset is real estate, you and the other owner(s) will be considered to own equal shares of the property unless the deed states otherwise. Giving away or selling your assets for less than they are worth will affect your eligibility for Medicaid coverage. If you give away assets in order to become eligible for Medicaid, you may be ineligible for Medicaid coverage for a period of time (please note this may not apply if you receive SSI). The period of ineligibility is based on how long the assets could pay for private nursing home costs. This amount is often referred to as the divestment penalty divisor, and in 2003 that amount is $5,043.00. Transferring assets to your spouse or your blind or disabled children, and specific types of trusts will not affect your Medicaid eligibility. If you anticipate applying for Medicaid coverage, you should seek legal counsel before giving away or transferring any of your assets.

There are special asset rules that apply to a married couple when one spouse is in a nursing home (often referred to as the "institutionalized spouse"), and the other spouse is not (often referred to as the "community spouse"). These rules are triggered when a person with a community spouse begins a continuous period of care of at least thirty (30) consecutive days where they have been or are expected to be in a hospital; and or in a long-term care nursing home facility.

The first day of a continuous period of care is called the initial assessment date. At this time an Initial Asset Declaration form will be filled out for the married couple. All of the couple's countable assets will be added together to comprise the initial assessment amount. This amount is then divided by two to produce a "spousal share" upon which Medicaid eligibility is determined.

The community spouse may retain all exempt assets, plus the "community spouse protected resource allowance". This allowance is determined as of the date of the initial assessment. The community spouse resource allowance is generally the greater of the spousal share or $18,123.00, up to a maximum community spouse resource allowance of $90,660.00. These amounts are adjusted annually for inflation, and the numbers referenced here are the 2003 figures.

The spouse in the nursing home will be disqualified from receiving Medicaid until all non-exempt assets and income in excess of the community spouse resource allowance are spent down. Remember that you must also be considered income poor to qualify for Medicaid. Medicaid is intended to be a cost-sharing program; therefore a recipient must pay for a portion of their cost of care.

The amount of income the recipient is required to contribute is called the "patient-pay amount". Subject to the following deductions, all of the person's income must be spent towards the cost of medical and nursing home care:

(1) Payments for health insurance premiums;

(2) Guardianship/Conservatorship expenses up to a maximum of $60.00;

(3) A $30.00 monthly income allowance;

(4) Family and children's allowance which applies when there are other family members legally dependent on the Medicaid recipient; and

(5) The community spouse income allowance (discussed below).

Income from investments solely in the husband's name is considered available solely to the husband. Income from investments in the wife's name is considered available solely to the wife. Income from assets that are held jointly by the husband and wife are divided equally among the spouses. That means the community spouse will be able to keep half of the income from a joint investment. The other half will be used to calculate the patient pay amount.

The spouse in the nursing home can divert income to meet the needs of the community spouse.

This allows the couple to divert enough of the nursing home spouse's income to bring the community spouse's income to a minimum of $1,493.00, with a maximum of $2,267.00 in 2003.

The allowance may also be increased, if the community spouse does not have sufficient income to cover his or her housing costs.

More Information
This is only a brief overview of two important but complex programs. Further information on these topics can be obtained from the following sources:

(1) For information about Medicare, call (313) 225-8317 or 1-800-482-4045;

(2) For information about Medicaid call 1-800-642-3195;

(3) For information about both programs contact your local area agency on aging, or the Michigan Office of Services to the Aging at 1-800-MEDICAR.

Please keep in mind that if you disagree with a decision made in respect to your benefits you may request an appeal. The following resources are available to assist you with additional information, or requesting an appeal:

(1) Michigan's Medicare/Medicaid Assistance Program (MMAP): This is a state- wide health insurance education and counseling program. Direct counseling services are provided over the phone, at senior centers, or through home visits for those with mobility limitations. The telephone number is (517) 374-8230;

(2) The Legal Hot Line for Older Michiganians is available to all Michigan residents 60 years and older, regardless of income. Hot line attorneys determine if callers have a legal problem, give free legal information over the phone, and provide brief services. Problems that cannot be resolved by the hot line are referred to legal aid organizations, pro bono attorneys, or to attorneys in private practice who agree to charge reduced fees. The telephone number is 1-800-347-5297.

To learn about health plans and family financial services visit http://www.pillarmortgage.com/

Things to Consider when Purchasing a Long Term Care "Health Insurance" Policy - Oakland County, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:34:27 -0500

Purchasing a Long Term Care Insurance Policy

Should You Consider Purchasing a Long Term Care Insurance Policy?

Yes, You Should Consider It If:

You have a significant income and / or assets.
You wish to help protect your assets and income.
You do not want to rely on the Government or others to pay for your care.
You do not want to rely on friends or family to provide you care if needed.

No, You Should Not If:

You can not afford to pay the policy premiums.
You have a limited amount of assets and / or a very small income.
Your only income is Social Security or SSI ( Supplemental Security Income).
You have trouble affording the basics, rent, utilities, food, medical needs or medicines

Long Term Care Health Insurance Terms

Accelerated Death Benefit. This is when a consumer can use a feature in their life insurance police allowing them to use some of their policy's benefits before dying.

Activities of Daily/Selected Living (ADLs). A scale that measures disability or the ability to perform functions of daily living. Often three out of six or two out of five activities. ADLs usually include bathing, moving from one location to another, eating, dressing, going to the toilet, and sometimes cognitive ability.

Adult Day Care. Adult day care provides care during the day for adults, usually at senior or community centers to relieve caregivers. It may be purely recreational or may include occupational and physical therapy. Programs may include meals, transportation, health, and related support services.

Area Agencies on Aging (AAA's). A local (city or county) agency, funded under the federal Older Americans Act, that plans and coordinates various social and health service programs for persons 60 years of age or more. The network of AAA offices consists of more than 600 approved agencies. Call your city or county government for the name, address, and telephone number of the AAA in your community.

Assisted Living Facility. This is a place where consumers can live in a residential living environment when they require and receive assistance with their activities of daily living such as individual personal care and health services.

Board and care homes. Are typically privately operated facilities that provide a room, meals, personal care services, and 24-hour protective oversight.

Care management services. A service provided by a professional, typically a nurse or social worker, who arranges, monitors, and coordinates long-term care services, including health and social services, from multiple providers for an extended period of time.

Cash value (Cash surrender value). The amount available in cash to be borrowed against or obtained in cash if a life insurance policy is canceled.

Chronic illness. An illness marked by long duration or frequent reoccurrence such as arthritis, diabetes, heart disease, asthma, and hypertension. These conditions are also considered permanent, sometimes with disabilities, may require rehabilitation instruction, or long period of supervision and care.

Community-based services. Those services that are designed to help older people remain independent and in their own homes; can include senior centers, transportation, delivered meals or congregate meal sites, visiting nurses or home health aides, adult day care, and homemaker services.

Congregate housing. Operated by many different groups, congregate homes offer independent living with some central facilities and services that can include transportation, recreation, social, and health services.

Conditionally renewable. Policies with this provision are no longer sold, but older policies may still be in force. When a policy is conditionally renewable, an insurance company agrees to continue insurance for an individual policyholder as long as it continues to insure everyone in the same state holding the same kind of policy. This is not a guarantee of continued coverage, and policyholders have better protection with a policy that is guaranteed renewable.

Continuing care communities. Offer housing and a range of health care, social, and other services for substantial initial costs plus monthly fees.

Custodial care. Assistance with bathing, dressing, eating, taking medicine, and similar personal needs. Custodial care can be provided by people without medical skills or training.

Daily benefit. This is a certain amount of insurance benefit dollars that consumers can purchase for long-term care insurance expenses.

Elimination period. The period of time before insurance benefits begin. Friendly visitor. Volunteers who visit the homebound to sit and talk or sometimes to run errands and shop for them.

Guaranteed renewable. A policy that is always renewable as long as premiums are paid. A company may raise premiums for all policyholders within a particular group.

Health Insurance Portability and Accountability Act (HIPPA). This is a federal law that became effective on July 1, 1997 that provides consumers certain protection insurance wise when they have pre-existing medical conditions. It also helps long-term care insurance policies to be qualified for some federal tax advantages or benefits.

Home health care. Includes a wide variety of services that bring care to the home: skilled nursing care, physical and occupational therapy, speech therapy, personal care, and the assistance of home health aides (sometimes referred to as homemakers) with chore services.

Homemaker services. This is a trained professional offering interior home services to a consumer who can no longer complete household tasks themselves such as cleaning, preparing meals, or doing laundry.

Inflation protection. This is when a policy has a built in feature where you are provided more benefit money to help pay for the increased costs of long-term care services.

Long-term care insurance. Insurance that pays for medical and personal services for a chronically ill or disabled person; covered services may include nursing home care, home health care, adult care, and respite care.

Lapsed policy. A policy terminated for non-payment of premiums.

Medicaid. A medical insurance program for low-income individuals that is paid by federal and state funds.

Medicare. A federal government health program available to people over 65 and some other citizens meeting specified requirements.

Medigap insurance or Medicare supplement. Medicare supplement insurance, or Medigap (sometimes called MedSup), is private insurance that supplements or fills in many of the gaps in Medicare coverage. While MedSup policies typically cover Medicare's deductibles and co-insurance amounts, they do not pay benefits for long-term care.

National Association of Insurance Commissioners (NAIC). NAIC is a national organization of the 50 state insurance commissioners for exchanging ideas, information, and coordinating regulatory activities. NAIC has no legal power but exerts a strong influence through its recommendations.

Noncancelable policy. A policy that guarantees the premium will remain the same and the policy stay in force as long as the premium is paid.

Non-forfeiture Benefits. It is a policy feature that gives you partial reimbursement of your premiums when you cancel your policy or you are lapsed in paying the premium.

Nursing home - levels of care.

1. Skilled Nursing is for persons who need intensive care, 24-hours-a-day supervision and treatment by a registered nurse, under the direction of a doctor.

2. Intermediate Care is suitable for persons who do not require around-the-clock nursing, but are not able to live alone.

3. Custodial Care is suitable for many persons who do not need skilled nursing care, but require supervision (for example, help with eating or personal hygiene). Insurance companies' definitions may differ somewhat from the above so check the policy.

Older Americans Act. Federal legislation enacted in 1965, and since amended, to set up a network of state and area agencies on aging which plan, coordinate, and fund local programs of services for persons aged 60 or older.

Period of confinement. The time during which you receive care for a covered illness. The period ends when you have been discharged from care for a specified period of time, usually six months.

Personal care. Assistance given people who need help with ADLs such as dressing, bathing, personal hygiene, grooming, or eating.

Rescind. The insurance company cancels a policy.

Respite care. Offers a few hours to several days of help to family members caring for a homebound person. The care may be provided by volunteers, an institution, or an adult care center.

Rider. An amendment to a policy that modifies the policy by expanding or restricting its benefits or excluding certain conditions from coverage.

Skilled nursing care. Daily nursing and rehabilitative care that can be performed only by, or under the supervision of, skilled medical personnel.

Social Services Block Grant. A federal program established under Title XX of the Social Security Act to fund non-medical services for low-income persons.

Spend Down. When individuals deplete their income and assets and thereby meet Medicaid financial eligibility requirements.

Spousal Impoverishment Act. Rules, which allow the at-home spouse of a Medicaid-eligible nursing home resident to keep a minimum of joint income and assets as, determined by the state.

State Health Insurance Program. Usually you see the acronym of SHIP for this word. It is a federally funded program that trains volunteers to help provide health insurance counseling to senior citizens.

Tax-Qualified Long-Term Care Insurance Policy. This is a long-term care insurance policy that conforms to the federal laws and provides some positive federal tax advantages.

Term life insurance. Insurance protection that pays death benefits to survivors but no cash value buildup.

Third Party Notice. This is when a third person such as a relative, friend, lawyer, or accountant is notified when a relative's, friend's, or client's insurance policy is about to stop due to the lack of premium non-payment.

Underwriting. Classifying applicants for insurance according to their degrees of insurability so that the appropriate premium rates may be charged.

Universal life insurance. A flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates that may change from time to time.

Waiver of premium clause. A policy provision that continues the policy without premium payment while the subscriber is ill or disabled. Whole life insurance. A cash value life insurance policy that provides level protection for a level premium as long as premiums are paid and includes a savings feature.

Viatical settlement. A transaction in which a life insurance policyholder who is terminally ill sells his or her rights to the policy in exchange for immediate payment of a portion of the death benefits.

Contact http://www.pillarmortgage.com/ to find out more about putting together long-term care provisions to best meet your particular needs.

Financial Planning: "Reverse Mortgages" "Life Insurance" and "Annuities" with "Long-Term Care" Provisions - Wixom, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:32:52 -0500

Your greatest financial risk today and in the foreseeable future is not your hospital or doctor bills, but the very high cost of long term care. Over 40% of all Americans over the age of 65 will spend some time in a nursing home due to a prolonged illness or disability. That's almost one out of two. Will it be you or your spouse? Your risk of needing long term care is probably much greater than you realize.

If you are over 62 years old and have assets to protect, but aren't wealthy enough to comfortably pay for long term care out of your savings, let us help you put together the best possible solution for you long-term care needs with our Senior Care Package.

Long-Term Care

Allianz TermLTC - Affordable low cost coverage
Allianz Future Select Plus - Comprehensive lifetime coverage
Golden Rule Asset Care - Single pay LTC and asset protection
10 pay Asset Care - 10 year fixed pay lifetime protection

Medicaid Friendly Income

Fixed Annuities - Fixed rate returns for fixed periods
Bonus Annuities - Extra income to offset penalties
Indexed Annuities - Participate in the markets without risk

Life Insusrance with Long-Term Care Provisions

Allianz Generation Planner - Life Insurance and LTC all in one
Golden Rule Asset Care I - Can combine IRA and LTC++

Annuities with Long-Term Care Provisions

Golden Rule Annuity Care - Fix LTC cost even if in nursing care, can combine IRA and LTC++
Golden Assurance - Free surrender if LTC is needed

Contact http://www.pillarmortgage.com/ to find out more about putting together long-term care provisions to best meet your particular needs.

Clearing up Misconceptions about "Reverse Mortgages" for Seniors in Oakland County, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:31:13 -0500

Reverse Mortgage Misconceptions

1. Reverse Mortgages are only for desperate seniors, or for the "house rich, cash poor." --INCORRECT. The reverse mortgage is an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years. While some have needed the cash from a reverse mortgage more than others, the growing popularity of this product is evidence of its benefit in a wide array of financial circumstances.

2. Your home must be debt-free to qualify for a reverse mortgage. --INCORRECT. Even seniors with an outstanding first mortgage or some other debt on their home may qualify for a reverse mortgage. The proceeds of the reverse mortgage, though, must first be used to pay off such debts.

3. The Bank owns the home after you get a reverse mortgage. --INCORRECT. You own your home and retain title throughtout the life of the reverse mortgage. Once you permanently move out of your home or pass it to your estate, the loan must be repaid.

4. When a reverse mortgage comes due, the bank sells the home. --INCORRECT. When the loan must be repaid, you or your heirs can either pay the balance due on the reverse mortgage and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage.

Ted Lewicki of Pillar Financial Services specializes in reverse mortgages for seniors. He will be happy to come to your home for a relaxed conversation about your options. A reverse mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain home ownership. Rather than making a payment to your lender each month, the lender pays you. Unlike conventional home equity loans, most reverse mortgages do not require any repayment of principal, interest, or servicing fees for as long as you live in your home. Funds obtained from a reverse mortgage may be used for any purpose, including health care, housing expenses, taxes and insurance, fuel, and maintenance costs. http://www.pillarmortgage.com/

Mature Market "Life Insurance": Asset Protection, Whole Life Policies, "Education Funding" for Grandchildren - Huntington Woods, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:29:02 -0500

Mature Market Life Insurance

You've worked hard to provide for your family and to build your nest egg. But what will happen to your assets when you try to pass them on? You may believe your Will takes care of this transition for you, but a large value of your estate may be lost to death taxes and estate settlement expenses.

Illinois Mutual has designed two unique Whole Life policies with the Mature Market in mind - Simplified Issue Whole Life & Single Premium Whole Life - that can assist you in making a tax efficient transfer to your desired beneficiary.

Simplified Issue Whole Life is an annual premium policy that provides guaranteed premiums and death benefits. This policy would be ideal for those who wish to provide a grandchild's college education, finance home improvements, reduce credit or mortgage obligations, fund a new business or pay for final expenses and taxes.

Single Premium Whole Life offers all the advantages of traditional whole life with the payment of a one-time premium. This policy would be ideal for those whose financial goals include gifting, charitable giving, trust creation, estate planning or wealth transfer.

Both policies are for issue ages of 45 to 85 and include an Accelerated Benefit Rider* at no additional premium. This rider provides access to policy funds for financial needs that arise from terminal illness or nursing home confinement.* Both products are non-illustrated, with guaranteed face amounts and guaranteed cash values and can be issued with a death benefit as low as $5,000.

Ted Lewicki is the president of Pillar Financial Corporation located in Waterford, Michigan. Ted will help you analyze your financial situation and customize a plan that works for your family's life insurance needs. Find out more at http://www.pillarmortgage.com/

LifeFund - Cash Benefits for Financial Catastrophes, Chronic Illness or "Disability Insurance" and Retirement Planning-Oakland County, Michigan

Ted Lewicki (Pillar Financial Corporation) — Sun, 31 Aug 2008 13:26:37 -0500

LifeFund

Why LifeFund?

You want to focus on building a long, healthy, successful life. But sometimes you face uncontrollable events that interrupt your plans: heart attacks, strokes, cancer, accidents, even death of your spouse or child. While you can't always prevent these tragedies, LifeFund helps control their effect on your life. More than life insurance, LifeFund is a product series that protects and provides during your most dramatic life events - critical or chronic illness, disability, retirement, and death.

Taking care of your family

If you should die, a death benefit is paid to your beneficiaries. There is also a benefit available should your spouse or child die prematurely.

LifeFund provides you with a pool of money that helps cover financial catastrophes brought on by critical or chronic illness or disability. Surviving these events could affect your ability to maintain your lifestyle and your quality of life.

You receive CASH benefits that you can use for anything from mortgages and medical bills, to groceries and car repairs. Based on diagnoses, benefits need not coordinate with other insurance plans. Better still, during the time of illness, Allianz waives your premium (subject to limitations).

Building a fulfilling retirement

LifeFund lets you look forward to a happy retirement, while protecting you if you become disabled during these years.

LifeFund offers a retirement income stream that you cannot outlive, with enhanced retirement values - up to triple the policy's net cash value.

Post retirement disability

Your retirement income payments increase for qualified partial disability, and even more for total disability. Payments will be made as long as your disability persists.

Why Not Electronic Transfer?

LifeFund offers the Automatic Payment Plan through Electronic Fund Transfer so that you may build financial protection simply and conveniently. It's easy. Premium payments are taken directly our of your bank account before you ever see it, so you won't ever miss it. All you do is sign up for Automatic Payment Plan EFT and let LifeFund do the rest.

$500,000 Lifefund Example...

Male age 35...Preferred... Annual Cost...$1,340...$500,000 Bucket of Money with 1st premium

After 30 years...$167,700 was paid in premiums and a monthly income of $4,764 will be generated at age 65...In 35 months the initial investment will be recouped...Less...If disability occurs
Critical Illness = $250,000 (50% lump sum benefit) Chronic Illness = $50,000 Annually (10% annually...Payment is made over 12 months)
Disability = $60,000 Annually (1% paid monthly...12% annual)
Death of a Child = $10,000 Per Child (10% lump sum benefit...Or $10k max)
Death of a Spouse = $50,000 Spouse (25% lump sum benefit...Or $50k max)
Waiver of Premium Premiums paid by Allianz
Death of Insured = $500,000 (Lump Sum Death Benefit) OR = $619,740 (Bonus of $50k...If 10 year payout is taken)
Retirement Income = $681,502
Monthly Income = $4,764 (Life and 10)
If Partial disability = $6,193 (30% increase in monthly income... Tax Free)
If Total Disability = $7,622 (60% increase in monthly income... Tax Free)