Perhaps some would suffer financially in the case you pass on; you need life insurance as protection. This type of insurance leaves money to your loved ones after your death. This cash compensation for death makes full compensation for your loved ones needs to meet certain financial requirements, such as the price of the funeral, daily living expenses and the funding of universities for your kids.

The other benefit payments that you will get is the life insurance money won’t get any federal tax for life insurance money. Life insurance money may come handy and in the right time in helping to pay medical costs incurred necessary, funeral expenses, and ends behind the cost of the settlement house, taxes and other obligations, such as lump sums and the remains balance of your mortgage payment.

Life insurance is the only instrument that can provide living benefits or become self-completing upon death. Life insurance is an important part of your total financial risk management picture.

Life insurance provides a source of instant and tax-free liquidity (income). Such liquidity is very important in the early stages of family and economic development and can also help protect accumulated wealth in later years by providing an instant source of (tax-free) cash.

Two Basic Kinds of Life Insurance

TERM LIFE INSURANCE—Provides protection only for a specified term or period of time. The policy pays off only in the event you die. Term life insurance is the cheapest form of insurance protection in terms of initial premium insurance payment, but not necessarily the most cost effective form of insurance in the long run. Getting term life insurance is probably the best option if you only need life protection in certain duration of time.

PERMANENT LIFE INSURANCE—Protection is provided for the lifetime of the insured. Other names for permanent insurance include: whole life insurance, interest sensitive, or universal life insurance. Such policies have a cash value (insurance savings) feature. The cash values accumulate on a tax deferred basis at a very competitive rate—currently 8–10%. The present-day policies are structured to allow the premiums to ‘‘vanish” in a relatively short period of time—approximately 10 years.

“A logical step would be to adjust premium cost so that the oldest drivers paid much higher auto insurance rates,” says one risk analyst for a big multi line insurance company, who requested anonymity for his comments on this subject. “But that would effectively force people over 70 certainly over 75 off the roads. The political fallout from that would be huge. There wouldn’t be an elected official in Florida who still had a job.”

As with most insurance coverage, it is illegal to discriminate unfairly against a person because of age in the issuance, non renewal, or cancellation of an affordable auto insurance policy. If you feel auto insurance companies has rejected your application based on your age, you may request in writing the reason for your denial of coverage, and the insurer has to respond in writing.

“They can still get around that, though,” says Amy Johnson, counsel for the Illinois-based Public Insurance Council, which serves as an advocate for consumers on insurance issues. “It’s illegal to refuse to renew a policy because of age, but the problem is, if you’re an older driver and you lose your coverage for another reason, like making a claim, many auto insurance companies refuse to write you another.”

How to check or compare the value you get from your homeowners insurance? It is simple and easy. You must make an insurance comparison coverage of different policies from different insurance companies and even the cost of the proposed legislation. If you are offered a policy of cheap and expensive policy with high coverage, then you should continue with the same insurance company.

With any insurance policy, assessing and analyzing homeowners insurance coverage you already have is the first step to determining what changes need to be made or what additional homeowners insurance coverage you may need.

• Are you planning to sell your home and move to a condominium, apartment, or mobile home?
• Are you planning to transfer some or all or your interest in your home to your children?
• Are your policy limits sufficient to cover you in the event of a loss?
• Has your home increased or decreased in value?
• Have you accumulated jewelry, collections, fine art, or other valuables which aren’t covered in full or are excluded entirely from your existing coverage?
• If you have a residence employee, do you know how he or she is covered by your homeowners policy?
• If you’re 50 years of age or older, it may pay to audit your homeowners insurance coverage. This is especially true if you have recently become an empty nester, purchased a second home, increased the amount of travel insurance you have, insurance retirement, or made other significant life changes.

Check Out Your Cash Value

If you have a whole-life insurance or universal life policy, you probably have accumulated cash value insurance in it. You can pull this money out of the policy, either by canceling it outright or by taking a loan against it. If you cancel the policy, however, you may find you are uninsurable if you want to sign up for another one. And if you take a loan against the value, you’ll reduce the benefits that your beneficiaries receive.

You’re spending money you’ve put away for another purpose. For the kids, you’re sparing them the inconvenience of paying for you now by spending the money they anticipated receiving after your death.

Tap into Living Benefits or Accelerated Death Benefits

Your insurance policy may include a provision for living benefits or accelerated death benefits. These insurance benefits allow you to begin receiving life insurance payments while you are still alive, assuming that you meet the eligibility standards, which typically include having a year or less to live as well as confinement to a nursing home. This option is not automatic. You have to select it when you take your policy, although some insurers have provided accelerated death benefits as a no-cost enhancement. If you claim these benefits, however, you may not be able to use Medicaid requirements benefits.

Consider Viatical Settlements

In this case, you essentially sell your life insurance policy to a company, which then becomes the beneficiary of the policy. In return, the company sends you a lump sum payment while you are living, and receives the insurance proceeds when you die. Do your homework very carefully if you are considering this option. Few states regulate these viatical settlement firms, and you need to be sure that the firm doesn’t disappear with your irrevocable insurance trust be- fore it pays you what it promises.

These funding sources are complex variations on the life insurance your grandparents and great-grandparents bought. Grandpa paid the premiums and named the beneficiaries; and when he died, the company paid the heirs. The kids were sad that he was gone, but they appreciated the financial boost he provided.

Great-grandpa and Grandpa, however, did not typically live until the age of 85. Medical advances did not prolong their last years beyond their ability to stay independent and enjoy them. Great-grandpa and Grandpa did not need the long-term care insurance that you may be anticipating. Grandpa might have borrowed against his life insurance, however, or simply cashed it in. You’re considering the same option. If you opt for this funding source, your forebears would understand. It’s the kids who will miss the money they expected, even as they appreciate your ability to care independently for yourself if you need care.

Talk to your insurance agent or claims manager. Explain your side, provide copies of supporting documents, and send copies of correspondence and documents to company executives (their address is usually on the first page of the standard insurance policy).

Take advantage of government resources. If you’re still not satisfied, most states have an insurance help line, arbitrators, and appeals process.

Hire an attorney. Using a lawyer to help you fight your case will cost you either in fees or as a percentage of the eventual settlement or judgment. But sometimes only an attorney with experience dealing with recalcitrant insurance companies can get you a fair settlement.

Until modern insurance legislation, the common law of caveat emptor, or “let the buyer beware” prevailed. This law has governed business and consumer transactions in England and the United States for centuries. Under the common law of caveat emptor, an unprincipled insurance company or the negligent agent or broker could conceal themselves from the consequences of their actions. Now, however, the term caveat vendor, literally meaning “let the seller beware” and commonly interpreted to mean “let the seller fully and accurately disclose,” prevails under the various legislative measures taken to protect insurance consumers.

Modern legislation has brought us the Unfair Trade Practices Act and the Unfair Claim Settlement Practices Act. Under these legislative acts, insurance consumers are protected from unfair or deceptive practices or acts. The objective of this consumer protection legislation is to provide private causes of action in cases of unfair or deceptive insurance practices. All states have statutes that protect insurance consumers from these practices. Most of these were enacted in the 1970s when consumer activism was at its peak. In 1905, Congress began a complete investigation into the entire life insurance industry. When the investigation, known as The Armstrong Report, was completed, few were surprised that it described widespread abuses.

During this time, there were many in favor of handing over the power of regulating the insurance industry to the federal government. Even in light of the poor reviews of the industry, however, the prevailing opinion was that the states, rather than the federal government, should continue to be responsible for the affairs of the insurance consumer. These included fair competition, fair insurance practices, and the public protection of insurance consumers in general. It was at this time that the individual states began establishing their own licensing programs.

Soon the financial conditions and the reputations of the insurance companies improved. However, during the Great Depression, insurance companies once again began to fail. They fell at unrivaled rates. In 1932, the National Convention of Insurance Commissioners recommended that insurance companies set up voluntary contingency reserves. Although the failures continued for a short time, they eventually leveled off.

Until 1944, the United States Supreme Court held that insurance was not commerce. Therefore, the Court repeatedly held that the regulation of insurance was not within the power of the federal government. This changed, however, in the case of United States v. South-Eastern Underwriters Association. The Court decided that insurance was in fact commerce and, therefore, subject to federal regulation.

Almost all states have guidelines that spell out the amount of time a company has to respond in writing to a claim and to pay benefit payments a claim once a settlement has been reached. Unfortunately, though, these rules come complete with loop holes that allow insurers to delay at length if they question your claim.

On the bright side, though, insurers are usually eager to pay benefit payments, since delays only add to the cost of doing business.

Washington, D.C.-based GEICO Insurance takes a leading position in offering these breaks. Policyholders over 50 who are retired receive a discount of five to 25 percent on homeowner and automobile insurance premiums, depending on the policy. Retirees are loosely defined as people working fewer than 20 hours a week.

An additional ten percent off auto premiums is given to older people willing to take an accredited defensive driving course.

The only downside: All of GEICO’s auto discounts end at age 74.

Throughout the late 1980s, a number of other property/casualty insurance companies followed GEICO’s lead. Farmers Insurance Group, lowered its homeowners rates around the country for policyholders age 50 and older. The move came on the heels of its auto insurance rate drop for 50-and-older policyholders.

State Farm also reduced its property/casualty rates for older people about the same time. “An improved loss experience with policyholders over 50 years of age led to the rate decreases,” reported the Tulsa World in 1988, after Farmers cut auto and home rates for people over 50 in Oklahoma.

About the same time, Prudential Property and Casualty Insurance Company (PRUPAC) implemented a five percent premium discount for homeowners 55 or older in several key states.

According to a spokesman with PRUPAC’s Eastern Regional Service Office in New York, “This program was designed to recognize the overall favorable loss experience of the mature homeowner. We’re constantly striving to offer the best products at the most competitive price. This mature homeowner discount is just another example of that.

A certified appraisal, made by a commercial appraisal company, is undoubtedly the roost accurate and reliable. These companies employ trained specialists whose factual detailed reports eliminate guesswork from the determination of value. Their appraisals are usually supported by detailed descriptions of the buildings, and by lists of equipment and other contents which can lie valuable in providing a Proof of Loss to the insurance company. Appraisal companies will furnish values on both buildings and contents, and ordinarily provide both Actual Cash Value and Replacement Value figures. Some appraisal companies are willing to offer expert testimony as to the value of thee property if it is necessary for a school district to institute court action against the insurance company. Appraisal companies can provide reports which will satisfy the fixed assets accounting requirement. Finally, appraisal companies have standard procedures for updating the property listing and values at regular intervals.

Contractors and architects may have considerable information about school construction costs, but many have little understanding of the exact coverage under the Fire Insurance policy. The contractor or architect must have accurate into mull ion as to the items excluded from insurance coverage, and the proper division between the property classified as building and that classified as contents, if their appraisals are to be reliable. Contractors and architects usually will not appraise contents items. Ordinarily, neither have standard updating procedures to keep the appraisal current.

An insurance company will frequently furnish an estimate of the insurable value of buildings, but will not appraise contents items. Their appraisals arc usually made by field men with little formal training in appraisal work, and their reports are usually based on square foot or cubic foot unit prices. As a result, their appraisals sometimes fail to take into consideration the specific features and construction of the building under construction. Insurance company appraisals are usually qualified by a statement that they are not to be considered binding on either the company or the Insured. In fact, the appraisal prepared by one insurance company may not be acceptable to another company writing part of the insurance on the same premises.

School personnel can develop a valued inventory for contents, which, if properly completed and maintained, will provide adequate insurance values and satisfy the fixed assets accounting requirement with respect to equipment. A pamphlet entitled “Inventory Control of Fixed Assets by School District Personnel” is available from the Division of Educational Management Services. The pamphlet offers advice in this area, and a suggested inventory system complete with record card formats.

There is no easy solution to the problem of proper valuation for insurance purposes. Even experts in the appraisal field may vary by considerable amounts in their opinion as to the value of a given property. This is especially true if the premises involve an unusual form of construction, an quite old, or have been renovated. In any event, the school beard must he prepared to hack up their claims with accurate information from one of the listed sources.

Medicaid coverage is broader than Medicare. However, obtaining care can sometimes be more difficult. Medicaid covers prescriptions, nursing home care, home health care, doctor visits, and hospitalization. Some state plans also cover dental care, eye care, hospice care, and therapy. Contact your local agency on aging for information about your state plan.

The problem with Medicaid is that it can be difficult to find a provider. All hospitals are required to accept Medicaid, but nursing homes that choose to accept Medicaid have a certain number of available beds for Medicaid patients. Many doctors will not accept Medicaid patients, forcing Medicaid patients to use busy clinics with long waiting times.

Medicaid provides retroactive coverage for nursing home care for up to three months before you apply for Medicaid, as long as you would have been eligible during that time period. The facility providing coverage must accept Medicaid payment as payment-in-full.

Not all facilities have to accept Medicaid. Only certified providers must accept Medicaid payment. Medicaid provides unlimited coverage for nursing home stays and for assisted living (if assisted living is covered by the state Medicaid program).

Appeals

To appeal a denial of Medicaid coverage, you must receive a notice of a reduction in benefits. You have ten days to respond to it and request a hearing. You are entitled to a fair hearing in front of a hearing officer within ninety days of your request. Your benefits must be continued during this time. The hearing is an informal administrative proceeding. The government must show that it followed the law in denying coverage. You have the right to appear, have an attorney, and call witnesses. A detailed letter about your condition and treatment from your doctor is an important piece of evidence to bring to a hearing. If you are denied coverage in the fair hearing, you need to follow your state’s individual procedures for appeals. These vary from state to state. Contact your local agency on aging for details on your state’s procedures.