Insurance World

Change is never easy, and amendments to Texas Law have seen the Health Insurance market explode with a multitude of health plan options. While more competition is always a good thing, it can sometimes be very confusing to consumers who want to get the best deal, but are confused by the sudden array of choice.

There is also the added confusion that not all health plans have to contain all benefits, meaning you’ve suddenly got a whole lot of policies that may or may not contain the things you need. Insurance carriers still do have full health insurance plans, but the advantage of this new flexibility is that consumers can choose which benefits they would like to pay for. This means insurance that is tailored to your needs that won’t break the bank with costs for things you don’t want or need.

You now have the choice between State Mandated Plans and Consumer Choice Plans. Consumer Choice plans will still include things that the State has determined must be included, such as Alzheimer’s and Pregnancy Complications.

The health coverage tax credit program is also available to help certain individuals pay for insurance, this can make health insurance much more affordable if you’re eligible. If you’re on a pension you’re likely to qualify, as well as if you are a displaced worker.

There is also the choice between Fee-for-service plans, and Managed Care plans. Managed care plans may be cheaper as may be required to go to the health care professionals that the insurance company dictates, where as Fee-for-service plans allow you to go anywhere you want.

Another excellent way to save money on your insurance is to see if you can get it as part of a group. Perhaps your employer offers insurance, or your union. Other associations that offer the chance to get in on a group plan are churches and professional associations.

Be smart, look around, and explore your options. That’s the best way to save on health insurance and get a good deal.

Usually, the death benefit from a second-to-die life insurance policy is intended to go to the children , a charity or pay taxes owed after both spouses pass away.

In the U.S. there is a marital deduction permitting you to leave an unlimited amount of assets to your surviving spouse with no taxes payable at your death. Those assets then become part of the estate of the spouse and if it includes a second to die life insurance polciy it could help pay any taxes. In Canada, there is more lenient tax treatment.

There are also tax ramifications for small businesses, which is why business partners also purchase second-to-die policies.

THE REASON TO BUY SECOND TO DIE LIFE INSURANCE POLICIES

With a second-to-die life insurance policy your beneficiaries can pay debts with the proceeds of your policy, so they won’t be forced to sell your house or liquidate assets to pay the bill.

A second-to-die life insurance policy can help to construct a financial plan reducing the tax burden of wealthy individuals by creating trusts and using second-to-die life insurance as part of the estate-planning process.

ADVANTAGES TO SECOND TO DIE LIFE INSURANCE POLICIES

1. Less expensive. Second-to-die life insurance is usually less expensive than life insurance but depends on the blend of the ages. The premium is based upon the joint life expectancy.

2. Estate Preservation. A second-to-die policy appeals to individuals who feel strongly about preserving their estates with the life insurance paying the taxes.

3. Easier to buy. It’s easier to qualify for a second-to-die policy than for individual life insurance. Since both insureds must die before the benefit is payable, the insurance company is less concerned that one of them might not be in good health.

* Builds your estate. In some cases, second-to-die life insurance is marketed as a way to build an estate, not just insulate it from taxes. Much like individual life insurance, the death benefit of a second-to-die policy can ensure that certain people receive money, even if you spend every nickel.

4. Second-to-die life insurance might make sense for people who don’t have a lot of money but want to leave an estate for their children.