Tom Russell & Associates

Respected Rim Country Doctor Urges Long-term Care Insurance

Health & Life Ins Specialist — Fri, 24 Feb 2012 18:38:56 +0000

Dr. Charles A. Calkins, M.D. is a highly respected orthopedic surgeon. He has practiced in the Rim Country of Arizona for many years. This letter shares his personal experiences with the importance of long-term health care insurance. Click here to read now.

Author Terry Savage – Who Needs Long-term Health Care Insurance?

Health & Life Ins Specialist — Fri, 24 Feb 2012 18:29:31 +0000

Chapter from her book: The New Savage Number
Click here. You’ll need to print out – just seven pages.

Terry Savage is a nationally known expert on personal finance and a regular
television commentator on CNN, CNBC, PBS, and NBC on issues related to
investing and financial markets. She is the Chicago Sun-Times personal
finance columnist, and author of three best-selling books. Her most recent
book, The Savage Truth on Money, was named one of the ten best
money books of the year by Amazon.com, and was made into an hour-long
television special which aired on PBS.

Click here to read now.

Medicare Made Clear Presentation – By United Healthcare

Health & Life Ins Specialist — Fri, 24 Feb 2012 15:14:52 +0000

Our independent agency represents many companies, including United Healthcare, the underwriter for the AARP endorsed Medicare insurance plans. United Healthcare
produced this presentation, to help clarify the series of decisions involved in selecting your Medicare plan(s). Click here to read now.

Oxford Life Income Protector

Health & Life Ins Specialist — Wed, 22 Feb 2012 17:03:34 +0000

Oxford Life has introduced an annuity with outstanding client benefits, guaranteed interest and/or income guarantees. This is NOT a variable annuity or other form of security, and therefore not subject to market risk and volatility. Read product brochure.

Agent: Tommy H. Russell
Tom Russell & Associates, Inc
Arizona License #28133
Licensed in the State of Arizona

Tom Russell & Associates, Inc – How We Do Business

Health & Life Ins Specialist — Sun, 19 Feb 2012 17:04:46 +0000

We have served the Rim Country for more than 19 years, and do business with clients throughout the state, especially in smaller rural communities. Pull up our company brochure to read more about us and how we do business.

Long-term Health Care Insurance

Health & Life Ins Specialist — Fri, 03 Feb 2012 17:53:52 +0000

Carol Gets Declined for Long-term Health Care Insurance

Carol’s daughter is the executive director at an Arizona long-term care facility. Having daily experience with the financial stress families experience when paying for long-term care services, she urged her mother, aged 68, to apply for long-term care insurance. I met with Carol and her daughter and we compared different plans, from various companies. They liked a plan that paid 80% of long-term care costs, and completed the application.

After sending for medical records, the insurance company declined to issue a policy for Carol, and refunded her initial premium. The company cited a chronically sore shoulder, plus a TIA mini-stroke five years earlier.

Surprised and disappointed, Carol and her daughter now wish they would have addressed the issue of long-term health care insurance sooner. The premium would have been lower (because of applying at a younger age) and there would have been less of a chance of being declined.

Financial Crisis Causes James to Rethink Long-term Care

James’ portfolio took a big hit during the financial crisis. In the past, he thought he had enough to cover the risk of long-term care expenses. Now, the cost for care, if he or his spouse needed it, could severely impact their portfolio. James and his wife applied for a long-term care policy that insured both of them under one significant pool of money, money that can be used for home care, assisted living, or nursing home expenses. James also liked the idea that when one of them passes away, the living spouse assumes the entire pool of money left, and only has to pay their half of the premium. The annual premium is affordable for them and helps insure they will have a secure and comfortable retirement, without the potentially devastating hit of having to pay out of pocket for long-term care services.

Debra Wants Long-term Care Insurance

Debra, aged 66, experienced her husband needing long-term care services in the last year of his life. Having personally witnessed the enormous cost of this stressful situation, and the passing of her husband, she knew she wanted long-term health care insurance. She absolutely did not want the responsibility for her care to fall on her children. After we looked at several different companies and options, Debra chose the long-term care policy that covers 80% of the cost for home care, assisted living, or nursing home. She chose a benefit pool of $200,000. The policy was issued and Debra now is insured for long-term health care.

Robin Chooses a One Year Policy

After I reviewed with Robin, aged 64, several different long-term care insurance options and premiums, she chose a One Year policy. It pays up to $50,000 for one year of care in a facility. She felt that she could not afford a traditional long-term care policy, and the lower premium for this policy fits comfortably with Robin’s budget. She understands that Medicare only pays for care after a hospital stay, and for just 20 days. With this policy in force, Robin liked that her family would not have to immediately liquidate her savings if she needed extended care, and her son and daughter would have time to prepare.

Medicare Plans – Medigap, Advantage and Part D Rx

Health & Life Ins Specialist — Fri, 03 Feb 2012 15:54:33 +0000

John’s Medicare Supplement Premium Takes a Big Jump

We tell all our clients, “You have to keep an eye on insurance companies, even the best ones!”

Every three or four years, it is wise to compare what you are paying for your Medicare Supplement with other plans available in the marketplace. As independent brokers, we gladly do this for our clients. We’re not waving the flag of any one particular insurance company. We watch out for you!

However, we have to be careful. Smaller companies might offer what seems like an attractive rate, but the future rate increases could be far worse than what your current company’s track record has been. Our office gets phone calls all the time to represent these aggressively priced Medicare Supplement plans, and we’re quick to avoid them.

At 72, John J.’s premium jumped to $212 per month for a Plan F. We shopped the market and found coverage from another top company for $162 per month. John could favorably answer the health questions (Medicare Supplements are not guaranteed issue after age 65 1/2) and he made the change, saving $600 per year for the exact same coverage.

Note: Be careful about entering your name on the internet to get Medicare Supplement rates. You will likely be inundated with email, and solicited on the telephone. When you sit down with us, face to face, we try hard to truly improve your situation, and not jump from the frying pan into the fire.

Medicare Beneficiary, on Medicare Disability, chooses an Advantage Plan

Helen is 59 and on Medicare Disability. Traditional Medicare does not begin until the first day of the month that someone turns 65, but Medicare Advantage plans are available for those under 65, who have qualified for Medicare due to a disability.

Helen carefully compared the Medicare Advantage benefits to traditional Medicare. She felt that Medicare Advantage, with a prescription drug plan built in, provided more predictable co-pays and somewhat better benefits. She was informed that she would have to continue to pay her Medicare Part B premium, plus the additional premium of the Medicare Advantage plan she chose to join.

Medicare Advantage plans work differently from traditional Medicare Supplements (Medigap). When you enroll in a Medicare Advantage Plan, you elect to receive all your Medicare benefits through a private company. Medicare pays the private company a monthly set amount to provide your benefits, currently over $800 per month.

If you choose to join a Medicare Advantage, after February 15th you are locked into that plan for the remainder of the year. You cannot exit until the following year. The one exception is that Medicare allows one change to a Five Star Rated plan, if one exists in your area.

Medicare Advantage plans can be appropriate for some people. We have helped many people under 65, who are on Medicare Disability, to acquire these plans, since they are issued without extensive health questions. Other beneficiaries paying a very high Medicare Supplement premium, who cannot answer the health questions in order to shift to a lower priced plan, will sometimes see Medicare Advantage as a somewhat better choice for them. However, Medicare Advantage plans have downsides. There’s specific networks, for example. Expenses are inherently unpredictable. You might have a lower premium, but could be surprised by unpredictable co-pays that can total up to $6700 per year, with some plans.

We carry the Medicare Advantage plans offered in Gila county. We can help you compare them side by side, and compare them to traditional Medicare supplements. All plans have downsides. Go slow and be clear. We’ll help you do that.

Case Study: Medicare Supplement Plan N

In November, inside the Annual Enrollment Period (AEP) so William could choose to leave his Medicare Advantage plan for the following year, we looked at options. After reviewing his budget, I showed William a Medicare Supplement Plan N. Medicare designed Plan N to work something like a Medicare Advantage plan, but with the benefits of remaining in original Medicare and avoiding the baggage often associated with an Advantage Plan.

Plan N has a $20 co-pay for doctor visits, a $50 co-pay for an ER visits. However, one remains in original Medicare and simply adds the Plan N supplement. This means much less concern over networks, as any doctor who takes Medicare will take the Plan N.

William chose to apply for the Medigap Plan N. He passed the health questions and the policy was issued with an effective date of January 1. He then enrolled in a separate stand alone Part D Rx plan, and this enrollment automatically DIS-ENROLLED William from the Medicare Advantage plan.

Life Insurance

Health & Life Ins Specialist — Wed, 01 Feb 2012 16:21:52 +0000

Getting a new Life Insurance policy at 66

Ron K. received a notice from his life insurance company that his premium would more than double.

Ron had a Universal Life policy where the cash value can disappear and cause the policy to implode, if interest rates were to fall. That’s what happened! Now 66, Ron had doubts about trying to change to a new policy, fearing the cost might be prohibitive and he was stuck with what he had. However, to stay in his existing policy could be like pouring money down a black hole.

We searched the market and found Ron an excellent new policy with an A+ rated carrier. Ron acquired a $25,000 policy for only $102 per month. What’s more, his premium is guaranteed to never increase.

Life insurance policies sold on television are greatly over-priced. If you’re relatively healthy (you don’t have to be perfect, as Ron himself took blood pressure and cholesterol medicine) you can obtain life insurance at a far better price. Everyone’s situation is different. We can help.

New Life Expectancy Tables Dramatically Lowers Rates

Shirlee W. is in excellent health at 53 and we were able, with the new longer life expectancy tables, to dramatically increase her life insurance coverage without any additional outlay in the premiums she was already paying. She wanted a permanent policy that would stay in force for the rest of her life, plus a term insurance policy on top of it to add to her death benefit until retirement. By comparing policies from A+ rated companies, we were able to obtain a permanent $100,000 policy combined with a $500,000 twenty year term policy, all for a surprising affordable rate.

Low Cost Life Insurance for Final Expenses

Harriet S. is 64 years old. She wished to have a final expense funeral policy so her family would have money in hand within 48 hours of her death, to handle arrangements with less stress and worry. She obtained a $7000 whole life insurance policy for only $29.63 per month, and the premium is guaranteed to never increase. The company guarantees to pay the death benefit within 48 hours, so her family has less worries and things they have to take care of.

At 68, Dan Needs Term Life

Dan thought life insurance was unaffordable at 68, but he was surprised to qualify for a $100,000 policy, with the premium guaranteed for 10 years, for only $50.46 per month! Still working, Dan felt it was important to protect his wife’s financial security, while he followed through on plans to further increase their retirement savings. Dan’s new policy also has a guaranteed conversion clause, so during the ten years, he could exercise an option to convert to a permanent policy, any policy the company sells! Dan went through the underwriting process and was approved at the Preferred rate, not Super Preferred. Online quotes will always feature the Super Preferred rate, but less than 5% of applicants will get the Super Preferred rates.

Under 65 Health Insurance Solutions

Health & Life Ins Specialist — Wed, 01 Feb 2012 16:15:34 +0000

Cassie Gets an HSA policy, and Lowers her Premium by $5000 a Year

Cassie’s family owned a health insurance policy that provided good benefits, including a copay for doctor office visits and prescriptions. The plan had a $1000 deductible, with an 80/20 co-insurance section above the deductible. The problem was, the policy costs $868 per month!

I showed Cassie an HSA (Health Savings Account) qualified plan. It features a $5500 deductible, with 100% coverage for the co-insurance section, not 80/20. Doctor visits, prescriptions, etc. are covered at 100%, after reaching the deductible. The plan also pays 100% for preventative care, with no deductible.

At first Cassie was nervous about the deductible. Then I showed her how the HSA plan’s $420 monthly premium would result in a savings of $5000 a year. I then explained how she could open a tax deductible/tax deferred Health Savings Account. The account can be used to pay for doctor visits, prescriptions, etc, until the deductible is met. The moment she puts the funds into the account, she gets the tax deduction. Every year she can place up to $6000 into the account, but there is no ceiling as to how high the account can grow over time. Plus, unlike health reimbursement accounts with group plans, with the HSA she always keeps what she doesn’t spend. She does NOT have to spend it, or lose it.

So I explained, “Why not pay the difference in these premiums to yourself, get a tax deduction, and keep what you don’t spend?” Cassie is now the happy owner of an HSA (Health Savings Account) policy. She uses the account for tax free medical until the deductible is met. Plus she even gets tax free dental care now, payable from her HSA account. She opened the account at the financial institution of her choice. But to open an HSA account, one must first have in place an HSA qualified medical plan — a high deductible policy without co-pay benefits.

This website offers excellent consumer education resources on HSA plans.

62 Year Old Leaves Group Plan

John is 62 years old. He needed coverage after finding out how expensive the COBRA option would be from his prior employer. John had a pre-existing condition. We called the underwriting department of several companies before submitting an application. We wanted to find the health insurer that would likely give John the best chance of a policy being issued, without exclusions. Though John did receive an additional 20% rating, his policy was issued without pre-existing condition exclusions. Since John was happy with the outcome, we view this case as a success.

Contractor, 46, Needs Time to Recover

Dale is a local contractor in Payson. An injury to his ankle required surgery and a rather substantial stretch of time to heal. Dale’s disability income policy paid him $2000 a month during his disability, allowing him to recover without worrying about the monthly bills being paid. Disability Income insurance is a vital coverage for people under 65.

Mark, Declined for Major Medical, Qualifies for a One Year Policy

Mark had been declined for major medical insurance. I reviewed with Mark a policy (Short Term Major Medical) that gives him health insurance for one year. Unlike traditional major medical policies that ask many health question, the Short Term policy only asks five, and Mark was able to qualify. He paid the premium for the entire year up front, and saved 20% off the month to month cost. Mark is now insured for one year. When the year is up, we can look at another company offering a similar policy. Sometimes we just have to do what we can, and this solution works for Mark.

Lifetime Income and Safe Money Strategies

Health & Life Ins Specialist — Wed, 01 Feb 2012 15:29:24 +0000

Creating a Temporary Income Stream

Shirley is 58, and needs monthly income for the next seven years, until reaching Social Security age. Shirley makes a deposit of $48,000 into a seven year immediate annuity. This helps her meet monthly expenses, without stress, and also allows her to delay receiving social security benefits, in favor of a higher payout at 65.

Reducing Market Exposure at 78

At age 78, Bill has, as one of his investments, $157,000 in an IRA. He wishes to reduce his market exposure risk, and create enough guaranteed monthly income to meet ongoing living expenses. Bill places the $157,000 in a lifetime payout immediate annuity. He will have to pay taxes on the payout as he receives it; however, he was at the age (over 70 1/2) where he was having to take Minimum Required Distributions (MRDs) from his IRA anyway. Bill now sleeps easier, having reduced his market exposure while now easily meeting monthly expenses. He feels he can leave his other investments alone to have time to grow, and recover market losses.