Tax-Free Muni Bond ETFs

Logic Insurance, Tax-Free Muni Bond ETFs - If you’re looking for a safe investment that is likely to deliver slow yet steady returns over the long haul, and where you don’t have to pay federal or local taxes, a tax-free municipal bond might be a good option. 

In order to avoid local taxes, simply invest in a local (city or state) municipal bond. If you invest outside of your own area you might have to pay taxes, which wouldn’t make a tax free municipal bond as appealing as some other safe investment options, such as corporate bonds or certificates of deposit (CDs).

Tax-Free Muni Bond ETFs

There are four big benefits to investing in a tax free municipal bond exchange-traded fund (ETF): liquidity, diversification, safety, tax free. As far as liquidity, unlike open-end municipal bonds or individual municipal securities, tax free municipal bond ETFs allow you to move in and out of your position if necessary. 

There are also no front-end or back-end sales charges. And expense ratios are lower. This last point plays a big role in choosing the right tax free municipal bond ETF. What follows below should help guide you in the right direction (numbers are as of Jan. 30, 2015).

With more than 80,000 issuers of municipal bonds in the United States, you have many more options than the tax free municipal bond ETFs listed above. Just keep in mind that these ETFs offer a lot more diversification.

If you choose not to go the ETF route, you should know that there are two types of bonds: revenue bonds and general obligation bonds.

Revenue bonds are issued by transportation systems, hospitals, power systems, sewer systems, water systems and the like. These bond issuers generate revenue by selling tickets and collecting on bills. Part of this revenue is then returned to you, the investor.

General obligation bonds are issued by states, cities, towns, school districts and so forth. The bond issuer relies on taxes to in order to repay the bonds. Taxes can mean income taxes, corporate taxes, property taxes, sales taxes, excise taxes and more. 

So instead of complaining about taxes perhaps it’s time to invest in municipal bonds, which will be tax free (in most cases), and allow you to collect on other people’s taxes. (For more, see: Avoid Tricky Tax Issues on Municipal Bonds).

It would be difficult to go wrong investing in tax-free municipal bonds or municipal bonds in general for that matter. However, the former provides you with a lot of diversification. (Author: Dan Moskowitz does not have any positions in MUB, TFI, SHM, or SMB)

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Longevity Annuities Arrive in 401(k) Plans

Logic Insurance, Longevity Annuities Arrive in 401(k) Plans - The U.S. Department of the Treasury and Internal Revenue Service (IRS) recently approved the use of longevity annuities inside of target date funds in 401(k) plans and Individual Retirement Accounts (IRAs). They can be included in target date funds used as default investment alternatives, thus qualifying for the safe harbor protection for plan sponsors as outlined in the Pension Protection Act of 2006.

In recent years many experts in retirement planning and income have written about the benefits of retirees having the option to annuitize all or part of their retirement plans in the same fashion as a defined benefit pension plan. 

What is Longevity Annuities Arrive in 401(k) Plans?

They argue that defined contribution plans put the onus of managing retirement on the shoulders of retirees who may or may not have the skills needed.

QualificaionAs part of the new rules this portion of the investor’s 401(k) or IRA will be exempt from the required minimum distributions that would normally kick in at age 70 ½. The annuity contract must meet the specifications for a qualified longevity annuity contract (QLAC): 

• Only 25% of any employment retirement plan or IRA can be invested in a QLAC. 
• The cumulative dollar amount invested across all retirement accounts may not exceed the lessor of $125,000 or the 25% threshold. The $125,000 dollar amount will be indexed for inflation. 
• The limitations will apply separately for each spouse with their own retirement accounts. 
• The QLAC must begin its payouts by age 85 (or earlier). 
• The QLAC must provide fixed payouts that can be adjusted for inflation. 
• The QLAC can have a return-of-premium death benefit payable to heirs should the retiree die before or after the benefit begins. 

There are still many questions to be answered surrounding these new rules. Here are a few thoughts on these new deferred income annuities for 401(k) plans.

Deferred AnnuitiesPayments may be deferred as far out as age 85. The thought process is that these retirees will at least have something left if they overspend during their early years of retirement and/or if their investment results are not sufficient to keep the value of their nest egg at a point where they will not outlive their assets.

How Will the Annuity Be Selected?One question is how the annuity provider will be selected for a 401(k) plan? Since they will be included as part of the target date fund family offered in the plan will the fund providers bring in their own annuity provider?

In the case of the “Big Three” providers, Vanguard, Fidelity Investments and T. Rowe Price Group (TROW) all already offer annuities so it would not be inconceivable that they would partner with the insurance companies they already work with to create a QLAC offering.

Many insurance companies are already in the 401(k) business and will likely see this as a huge revenue opportunity and will offer QLACs in the various target date funds they offer to 401(k) plan sponsors.

A likely scenario is that the responsibility for selecting a QLAC product will fall on the plan sponsor who already is charged with selecting the investment choices offered within their plans. They in turn will likely rely on the plan’s outside investment advisor or in the case of some plans the insurance agent or registered rep servicing the plan.

In the latter arrangement the commission on these annuities will be a real boon to the agents and registered reps and plan sponsors need to be extra diligent in monitoring the selection process to ensure the best interests of their employees are being served. 

Are They Portable?It is not uncommon for people to work at five or more employers during the course of their career. What happens if an investor allocates a portion of their 401(k) plan assets to the purchase of one of these annuities and then leaves that employer? Can the annuity benefit purchased be rolled over to a new employer’s plan or to an IRA? Or is the retirement plan participant just out the money used to fund the premiums?

Is This a Good Deal for Participants?Any decision as to whether to buy an annuity to fund a portion of one’s retirement income will in part depend upon the terms of the annuity offered. What are the contract’s underlying expenses? If an annuity is a viable option is this the way for an investor to go? Are there better alternatives available outside of their retirement plan?

A part of the decision will hinge on the participant’s situation. Are they comfortable managing their own investments and more importantly with managing the withdrawal process during retirement? Do they have a trusted financial advisor in place to assist them in these areas?

What other retirement resources do they have? Are they covered by Social Security or a defined benefit pension plan? If they are married the retirement assets of both spouses should be considered.

Clients will have many questions once QLACs become readily available in their 401(k) plans and financial advisors need to become knowledgeable about these products in order to properly advise their clients. For example, they may rightly ask if earmarking a portion of their 401(k) account to an annuity that doesn’t kick in until later in retirement is a good way to diversify their retirement income stream.

As mentioned earlier retirement plan sponsors will have questions about these products including whether or not to even offer them. Financial advisors who advise 401(k) plans as a part of their practice can be an even bigger resource to their clients by becoming knowledgeable about QLACs and being an expert their plan sponsor clients can turn to. 

The new Treasury and IRS rules allowing for deferred income annuities in 401(k) plans and IRAs potentially open up some new opportunities for retirement savers. Now that QLACs are here, many questions remain. Both retirement savers and retirement plan sponsors will have questions and will need help deciding if this is a good route for them to go. Knowledgeable financial advisors can be at the forefront of providing this guidance. (Author: Roger Wohlner)

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2015 Tech Trends in Insurance Industry

Logic Insurance, 2015  Tech Trends in Insurance Industry - The insurance industry, never known for rapid change, is somewhere in the middle of the pack when it comes to digital transformation. 

Despite regulatory obstacles and organizational cultures that reinforce conservatism, however, insurers still have time and opportunity to get moving in the right direction. Many insurers have deep resources, strong balance sheets, enormous scale, vast quantities of data and rigorous process discipline – all assets that can help them connect with customers in a new digital environment.

2015  Tech Trends in Insurance Industry

The 2014 edition of the Accenture Technology Vision highlighted six IT trends that will have a transformative effect on businesses over the next three to five years. For insurers, these trends will mean that business models must evolve at high speed, even while adaptation of new technologies is in process. Today, we'll discuss the first.

Digital-physical blurThe "real world" is coming online as smart objects, devices and machines increase our insight into – and control over – the physical world. This is more than just the "Internet of Things" — it is a new layer of connected intelligence that supports employees, automates processes, and incorporates machines into our lives.

Intelligent interfaces such as wearable computing, home sensors, and vehicle telematics are blurring the physical and the digital. These technologies – expanding rapidly in number and dropping rapidly in price – take advantage of the cloud to share data with other "edge" devices. They can sense environmental variables and feed analytics engines and visualizations so that organizations can make smarter decisions in real time.

Over the next five years, intelligent edge devices will bring massive disruption to the insurance industry. Digital-physical blur promises to transform the industry by giving insurers usage and contextual data they can use to refine risk, redefine products and transform customer relationships. 

Insurers are not only integrating existing trends such as vehicle telematics into their business models, but they are considering what the next wave of disruption – dramatically illustrated by the emergence of the driverless car – will mean for their businesses. Carriers that started off with pay-per-use insurance offerings are moving toward mobile, contextual and behavioral-based products.

From Workforce to CrowdsourceThe future workforce will extend beyond employees to any user connected to the Internet. Cloud, social and collaboration tools and technologies now allow insurers to tap into vast pools of human resources around the world.

Digital collaboration technologies are no longer just about enabling insurers to collaborate more effectively within the boundaries of their own enterprise; they now involve connecting insurers to smart, enthusiastic people in the outside world who have the interest, motivation, time and expertise to work with insurers to solve some of their most daunting business challenges. 

Few insurers, however, have grasped the idea of accessing a truly liquid workforce – pools of premier talent gathered in virtual communities and coalescing around specific business problems. This expanded workforce offers expertise that may not be available in-house, and it offers scale that can be leveraged to solve problems that may be too large or expensive to solve internally.

An insurer's workforce today needn't be restricted to the people on its payroll or limited by its culture. Thanks to digital platforms such as Kaggle,InnoCentive, Elance and oDesk, insurers can tap into online resources for tasks ranging from designing a new logo to helping create the breakthrough products and services of tomorrow.

Data Supply Chain
To unlock the value of their data, insurers must start treating data more as a supply chain, enabling it to be accessed and then to flow easily and usefully through the entire organization. Eventually, the data should flow to the insurer's ecosystem of partners, as well.

Many insurers see data of the lifeblood of their organization; that is why they are implementing the newest big-data tools, investing in advanced analytics applications, and purchasing the latest data visualization software. 

Yet few insurance companies have mastered the concepts at the foundation of modern data management – the mobility and portability of data, its structure and velocity, and data as a "saleable" product to be monetized.

High-performing insurers will liberate their data, generate value from it, and operationalize insights to improve strategic decision-making throughout the organization. To do this, they will manage their data, like any other core product, in the context of a supply chain.

The supply chain begins when data is created, harvested, imported, or combined with other data. The data then moves, flows, and transforms through the supply chain, incrementally acquiring value. The supply chain ends with valuable insight as its output. Guiding this movement is a federated data services platform, which unifies data from multiple systems into a single view and enables business users to interact with the data in a standardized way.

About the author

John M. Cusano is global managing director of Accenture’s Insurance industry practice

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Global Insurance Market Trends

Logic Insurance, Global Insurance Market Trends - Across the world, insurance markets are adapting to the aftermath of the economic crisis. 

Many multinational insurance companies that hunkered down to conserve capital and trim expenses are now ready to invest in global markets that are poised for significant growth.

Global Insurance Market Trends

Insurers enter new domainsExpectations are pointing to insurers entering new domains, as well as expand their presence in current markets. While there are signs of stabilization, consumers and businesses continue to tighten their purse strings. For much of the European and US insurance markets, these conditions continue, with only slight improvement.

In Europe, for example, 2011 will likely be another year of low GDP growth, low interest rates and moderate equity market performance. On the life insurance side in Europe, low interest rates reduce the probability of people saving or putting capital into investment products like life insurance and annuities. Insurers that seek greater flexibility in their distribution relationships may be able to counter the stagnant sales environment.

Consumers and businesses tighten their purse stringsSluggish consumer and business spending similarly strains the US property/casualty and life insurance segments, causing revenues and earnings to fall in 2010. The decline in net premiums occurred at the same time that investment yields were torpid. Insurers are further pressured by a competitive insurance market, with pricing barely budging in 2010 and no expectations for significant movement in 2011.

Insurer surplus in the US is at an all-time high, and this, too, is driving enhanced competition for business. As in Europe, US insurers that invest in more efficient distribution methodologies and more cost-effective operations can drive stronger performance at home and abroad.

Investment in foreign marketsIndeed, with capital and surplus overflowing for many if not most multinational insurers, there are tantalizing opportunities for prudent investment in other foreign markets, depending on the region. In Asia-Pacific, for instance, significant opportunities beckon.

Domestic markets in many countries are growing fast — now that a middle class has burgeoned. More people are buying homes, cars and other seeming luxuries beyond their grasp a few years ago. And more businesses have sprung up to provide these goods and services.

While more mature markets in the region are saturated from an insurance penetration standpoint, emerging markets and those continuing to develop offer varying opportunities for growth, especially for early movers willing to invest now for long-term potential. Strategically, such insurers might consider investments that seize upon the evolving distribution strategies in the region, especially for life insurance sales.

Customers are seeking to buy insurance products outside the established agency and independent financial advisor channels, which will require insurers already in certain markets to retool their existing distribution models. For insurers entering the markets, they might consider adopting more flexible sales approaches that leverage the Internet, mobile platforms and other evolving technologies.

Indefinitely postponing a response to the current market opportunities seems ill-advised, given the chief attraction of the Asia-Pacific market and its remarkable growth rate.

Industry highlights More people and businesses are equipped to buy insurance and the regulatory systems in many locales have become more sophisticated. 

While insurance penetration in more mature markets is hindered by relatively high saturation, fast-growing developing and emerging markets offer important growth prospects over the long-term.
Insurers seeking opportunities will need to consider strategies that address the fast pace of local and global regulatory and accounting developments. 

Access to reliable capital sources to support investments in specific regions and developing distribution strategies that take into account consumer buying patterns and demographic trends are other avenues for growth. 

Growth prospects in Asia-PacificAsia-Pacific presents significant opportunities for insurers seeking growth, as many markets in the region have enlarged due to an increasing number of consumers looking to purchase insurance. Additionally, the regulatory systems across much of the region have become more sophisticated.

Growth drivers vary on market-by-market basisSome challenges, of course, remain. Since Asia-Pacific is a highly diverse super-region with respect to different countries' economic development and insurance penetration, the rate and drivers of growth vary on a market-by-market basis. Mature markets, for example, are more saturated.

Developing and emerging markets, on the other hand, offer greater growth opportunities for companies prepared to invest for the long haul.

We anticipate further regional evolution, but not revolution, in Asia-Pacific markets in 2011. Each insurer's strategic prioritization and response to the opportunities presented may reap significant rewards. Early movers may especially benefit by their immediate actions, while the insurers who wait to discern the short-term mistakes of others may similarly attain valuable traction.
Poised for opportunity

Indefinitely postponing a response to the current market opportunities seems ill-advised, given the chief attraction of the Asia-Pacific market and its remarkable growth rate. This alone helps explain why many multinational insurers are either preparing plans for further investment in the region, or are in the thick of implementing them.

As life insurers examine how to reduce the capital strains caused by guaranteed products, the prolonged low interest rate environment will depress the yields for new cash flow and maturing bonds. 

Europe in 2011 offers a financially stronger insurance market than in 2010, given strengthening of the credit and equity markets and improvements in the insurance industry's capitalization, solvency and profitability. 

While GDP is expected to decrease slightly in 2011, inflation should remain steady at 1.5% to 1.6% — levels that pose no immediate threat to growth. 

Litigation, fraud and catastrophe-type exposures also are increasing in the region. As insurers prepare for the implementation of Solvency II and Basel III, they must develop ways to maintain, if not increase capital.

To seize growth in 2011, insurers will need to quickly address and adapt to the changing regulatory and accounting environments, enhance the flexibility of their distribution systems, develop new markets and products and improve management of capital.

European insurers challenged to prosper amid uncertaintyThe European insurance industry entered 2011 financially stronger than it was at the beginning of 2010. As the credit and equity markets recover combined with reductions in claims frequency in 2009 and 2010, the industry's capitalization, solvency and profitability are improving. Efforts to maintain and increase capital will continue in 2011, as insurers prepare for the impending implementation of 

Solvency II and Basel III. Macroeconomic conditions indicate that 2011 will likely be another year in Europe of low GDP growth, low interest rates and moderate equity market performance. Even if the economic recovery continues, insurers may find that the assets underpinning their balance sheets have decreased in value.

Questions concerning the impact of the European sovereign debt crisis also remain, albeit the effect may vary for individual countries. Certainly, the macroeconomic conditions will challenge the skills and resources of insurers to generate superior investment returns and maintain balance sheet strength.
Macroeconomic conditions suggest sluggish economy

The sluggish economy and low interest rate environment challenges all segments of the European insurance industry to achieve superior growth. Non-life premiums across the region were poor in 2010, while profitability in both the non-life and reinsurance sectors will continue to be challenged by the soft market, the need for continuing expense reductions, and the end of loss reserve releases supporting profitability.

Business demand for traditional non-life products will remain especially listless in 2011 due to the slow business growth. At the same time, risks relating to continued advancements in technology, catastrophic weather events as well as fraud and litigation exposure are increasing. A key question is how catastrophic losses in 2010 might affect pricing this year.
Aging population creates opportunities

On the life side, premiums improved modestly in 2010. As Europe's population ages and grapples with demographic challenges to their social welfare systems, especially those parts related to retirement benefits, it creates opportunities for insurers to provide products and services in the retirement space. The downside is the low interest rate environment, which reduces profitability of guaranteed products. 

Continued high unemployment also makes it difficult financially for many individuals to purchase new products. A key question facing life insurers is whether the emerging capital requirements will hinder their ability to meet consumer needs. (Logic insurance article source Inguard.com)

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The Insurance Industry Trends and Innovation in 2015

Logic Insurance, The Insurance Industry Trends and Innovation in 2015 - New technologies and innovations have permeated the insurance industry and upped-the-ante in quality and efficiency for products, claims and business practices. 

Though insurance has been historically viewed as a slow-moving industry, recent technology integrations and evolving customer needs have created a significant shift; and next year will only continue to change the game.

Insurance trends in 2015 will revolve around increased data intelligence, improved accuracy in underwriting, and an emphasis on customer-center services and processes.

Important Insurance Trends for 2015

Growing connectivity between the real and digital worlds will determine major and innovative trends in 2015. Insurance companies will continue to invest in digital tools needed to enhance products and services delivered to policyholders, increase operations efficiencies, and better connect networks of partners and providers.

Below are four technologies insurance companies should strive to integrate in 2015. If these aren’t already on your radar, they should be.

Big Data Analysis Analysis based programs can help insurers improve their efficiency in a variety of ways, such as assessing fraudulent claims or improving the rate at which your business changes to meet changing client needs and expectations. The evolving data dashboard, which compiles metrics from multiple locations into a visualized platform, will provide insurance professionals with more comprehensive insights into business performance and changes over the next year.

Mobile
Thanks to advancements in mobile and wearable technology, digitizing life activities became the new standard in 2014. Across platforms, from tablets to mobile phones and the up-and-coming smart watches, consumers are looking for ways to further mobilize their spending and management practices in nearly every aspect of life.

Most major insurance companies already offer mobile apps for easy access to accounts, insurance quotes, claims support or even roadside assistance. The key in 2015 will be to further connect policyholders to the insured in order to more quickly exchange information and expedite the claim report and response process. 

Re-Engineering Underwriting
Assessing income risk is more thorough than ever. Using spatial data, such as information from Google Maps to public statistics on crime, education, income and health care, will help insurers assess risks and liabilities in new and sophisticated ways in the coming year.
Cloud/Client Computing

About half of insurance carriers today are “in the cloud,” and this tech trend should continue to grow this year. Cloud computing is a tech term for the practice of sharing a network of remote Internet servers to store, manage and process information. Operating in the cloud enables organizations to optimize IT and will prepare businesses for everything from product growth to potential data loss disasters.

Insurance Industry Trend in 2015

Technology in 2015 will require insurers to be agile, think connectively, and be prepared to assess and utilize data in new unprecedented ways. More importantly, failure to adapt could bring new risks to your business, including anything from data loss to consumer dissatisfaction with delivery of products and services.

Standards in business, customer service and insurance continuously evolve, and it is the responsibility of our industry to meet these changing needs. If insurance businesses recognize tech trends, evaluate the opportunities they present, and actively incorporate relevant processes and programs into their business model, they will find themselves outpacing and outperforming the competition. (Latest insurance news article author and source: Parker Beauchamp - Inguard.com)

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Long Term Care Hybrid Products

Logic Insurance, Long Term Care Hybrid Products  - with many people unwilling to purchase long-term care insurance policies due to the cost, insurers are rolling out new products that combine long-term care insurance with either a life insurance policy or an annuity. 

These new products have been on the market for awhile, but they are gaining in popularity due to a law that goes into effect Jan. 1, 2010, making distributions from life insurance and annuities tax free when used to pay nursing home costs.

Even though long-term care costs continue to rise, long-term care insurance has not become widespread. Long-term care insurance is expensive and many people do not want to pay premiums for something they might not need. 

More Option with Long Term Care Hybrid Products 

A hybrid product has the benefit of combining two products into one. If you don't use the long-term care insurance, you can still benefit from the life insurance or the annuity.

The products vary in the details, but the general idea of a hybrid life insurance policy is to allow a buyer to purchase a cash-value life insurance policy and to use a portion of that policy for long-term care benefits, if necessary, and keep the rest as a death benefit that will be paid to the purchaser's beneficiary. If long-term care benefits are used, the death benefit may be reduced.

Hybrid annuity products also vary significantly, but in general they allow a buyer to purchase a fixed deferred annuity with a long-term-care rider attached. The annuity may pay out for a specific number of years or for life. For example, a purchaser could deposit $150,000 into an annuity. 

The annuity would provide approximately $4,700 a month of long-term care benefits for 36 months. For an additional cost, the purchaser could get the $4,700 monthly benefit for life.

While a two-for-one product may seem attractive, these products are not for everyone. For one thing, you may have less flexibility with a combined product than you would with a stand-alone product. Hybrid products may not cover home care or include inflation protection, for example.

In addition, hybrid products may not offer enough long-term care coverage for what you need. It is impossible to predict exact coverage needs, but click here for more information on how to figure out how much insurance to purchase. 

A hybrid product is likely less expensive than purchasing two separate products, but it is often more expensive than purchasing a stand-alone long-term care insurance policy.

As with any major purchase, you need to evaluate it carefully before purchasing. Before deciding what to buy, get advice from an impartial investment advisornot a sales agent who makes a commission off the sale of policies. (ElderLawAnswers)

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Long Term Care Insurance Costs

Logic Insurance, Long Term Care Insurance Costs - Rates for long-term care insurance, which can help pay for care in your own house or in a nursing home, rose this year an average of nearly 9 percent, a new industry report finds.

Still, rates vary greatly depending on the insurer and the specifics; increases for some policies were much larger, and in some cases — like certain policies covering couples — quite modest, according to Jesse Slome, executive director of the American Association for Long-Term Care Insurance, a trade group.

Each January, the association compares top-selling policies offered by major insurers to determine average rates. This year’s analysis includes rates from 10 insurers, using policies sold in Tennessee, a “representative” state, Mr. Slome said. Factors behind the rates include higher claims costs, he said; in 2014, insurers paid out $7.8 billion in claims, an increase of nearly 5 percent.

Long Term Care Insurance Costs

A healthy 55-year-old man can now expect to pay, on average, $2,075 per year for $164,000 in initial benefits, up from $1,765 last year, the report found.

The cost for a healthy, single woman of the same age is higher: Her average premium is $2,411, up from $2,307. Insurers take gender into account when pricing long-term care policies, since, statistically, women live longer and are more likely to need long-term care.

Last year, the National Women’s Law Center filed federal sex-discrimination complaints against four insurers, challenging such gender-based pricing on the grounds that the practice violates a provision of the Affordable Care Act barring sex discrimination in health care. The action is pending with the Department of Health and Human Services’s Office for Civil Rights.

Couples generally get a discount if they buy a joint policy; the rationale is that one or the other is likely to provide some care for a spouse initially, Mr. Slome said. A married couple, both age 60, would now pay $3,930 combined, up from $3,840, for $328,000 of initial coverage.

The numbers assume a “three-year” policy that uses a daily benefit of $150 to compute a maximum payout, and includes inflation protection — a 3 percent compounded annual increase in benefits. Eliminating inflation protection greatly reduces the cost — the average premium for a single man would be cut roughly in half — but that means you will probably have to pay more out of pocket if you eventually need care. A middle option, which costs more than the base premium, allows the choice of adding inflation protection later.

The rates cited in the report are for new policies. Premiums for outstanding policies, particularly older ones, have been increasing as well, in part because people are living longer and insurers had underestimated the level of claims.

Insurers generally must get state approval before increasing rates on existing policies. In many cases, however, even with large increases, premiums on older policies are still lower than they would be if the policyholder had waited until now to buy a new policy, said Michael Kitces, director of research at Pinnacle Advisory Group in Columbia, Md.

Mr. Kitces said consumers can try to hold down premiums on new policies by making sure that their coverage is tailored as much as possible to their situation. For instance, he advises checking rates for care facilities near your home — or near a family member’s home, if that’s where you would likely receive it — to make sure you’re not overpaying for a high daily benefit rate if rates in your area are lower than national averages.

One way to make premiums more affordable generally, Mr. Kitces said, might be to lengthen plan deductibles, known in industry lingo as the “elimination period.” That’s the length of time during which you pay for care out of pocket, before the policy begins paying.

Most plans sold today have a 90-day elimination period. But if the window were significantly lengthened — say, to two or even three years — in exchange for expanded benefits afterward to cover events like very long, financially catastrophic nursing home stays — premiums could be much lower. Policyholders could then use the savings to help fund a deductible.

One barrier, however, is that most states prohibit elimination periods of longer than one year, Mr. Kitces said — a consumer protection holdover from a time when people didn’t live as long and plans were less costly. Here are some questions and answers about long-term care insurance:

When is the best time to buy such insurance?

Premiums typically will be lower if you buy when you are younger — say, in your 50s — rather than waiting until your 60s or 70s. Coverage not only becomes more expensive as you age but also becomes more difficult to qualify for at all, since health problems are more likely as you age.

Can I find policies now that offer longer elimination periods?

You may be able to find a policy with an elimination period of up to a year, but the amount saved with a 12-month deductible, compared with a three-month deductible, may not be significant, Mr. Kitces said.

How can I find the best rate?

Mr. Slome advises comparing rates from several insurers, as premiums vary widely. The latest analysis found the difference between the lowest- and highest-cost policies for the same coverage ranged from 34 percent to as much as 119 percent. A 55-year-old woman, for instance, might pay as little as $890 a year or as much as $1,829 for a similar policy without inflation protection, depending on the insurer. An insurance broker can help sort things out, but since some work exclusively with one insurer, you may need to talk to more than one.

An article on Saturday about long-term care insurance misstated the maximum length of time an insured person may be required to pay for care out of pocket before the policy begins paying. In most states, that period — the so-called elimination period — cannot be longer than one year, not three months. (Ann Carnns)

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An Introduction to Long Term Care Insurance

Logic Insurance, An Introduction to Long Term Care Insurance - With nursing home care in some parts of the country costing as much as $10,000 a month, a long-term need for care can deplete even the best-planned estate. 

As a result, many seniors buy long-term care insurance to cover this risk. One great advantage of this insurance is that most policies now cover home care and assisted living care as well as nursing home care, causing some insurance agents to describe it as “avoid nursing home insurance.”

An Introduction to Long Term Care Insurance

Unfortunately, the long-term care insurance industry is still relatively young and continues to experience growing pains. Until Congress began regulating the industry as part of the Health Insurance Portability and Accountability Act of 1996, many of the policies were poor, containing bars to coverage that could make them unavailable just when needed. 

Some companies that went into the business with great optimism have found that they were not making money and have retreated from the business or dropped out entirely. In recent years, insurers have been hit particularly hard by the climate of historically low interest rates because companies’ profits rely on returns from investing policyholder premiums. In addition, policyholders are living longer and fewer are abandoning policies midstream than actuaries had predicted. 

Between 2010 and 2012, three large insurers – MetLife, Unum and Prudential – ended long-term care insurance sales to some or all markets. Companies still writing policies are raising premiums, some precipitously. Others have put up roadblocks to claims on the policies. One long-term care insurance company in particular, Bankers Life and Casualty, has gained a reputation for not paying claims.

Still, having the insurance can be a lifesaver for a senior needing care, as well as for his or her spouse and children. The biggest problem with policies now is the cost the premiums being out of reach for most seniors and the refusal of insurance companies to guarantee their rates. 

Another problem with long-term care insurance is that by the time many people purchase policies, they are uninsurable due to health problems. One solution to this problem, of course, is to purchase policies while you are young and healthy. The other solution is to shop around. Every company has its own underwriting criteria. (ElderLawAnswers)

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LongTerm Care Insurance Benefits

Logic Insurance, Long Term Care Insurance -The most commonly utilized and misunderstood aspects of the U.S. Medicaid program are its long-term care (LTC) benefits. Medicaid is not synonymous with long-term care insurance, but many who plan to rely on it are unaware of this. As a result, they find themselves without the care they really need or desire.

Before you "plan" to have Medicaid cover your LTC needs, it is important to understand its coverage and how it differs from LTC insurance. (One program is for the poor; the other is for the elderly. Learn which is which in What's The Difference Between Medicare And Medicaid?)

LongTerm Care Insurance Benefits

Medicaid is a multi-part program designed to provide a wide variety of medical and custodial services to those who cannot afford it. It evolved during the so-called war on poverty in the 1960s as a program for the truly poor - the indigent population who were surviving on less than about 125% of the official poverty level. (For more on poverty guidelines, see the website of the U.S. Department of Health and Human Services.)

Medicaid LTC is a great benefit for those people who didn't necessarily have the chance to accumulate much, and now need LTC services beyond what their families can (or will) provide.

Some individuals, however, deliberately decide not to buy long-term care insurance, "planning" to use Medicaid instead. There is an entire legal specialty that focuses on helping older Americans bankrupt themselves in order to qualify for Medicaid benefits. Unfortunately, many of these people find out too late that Medicaid does not offer what they desire - the same choice, benefits or coverage options provided by LTC insurance.

Unlike Medicare, which is largely a federal program, Medicaid is primarily state-run, resulting in varying degrees and types of LTC coverage.

Medicaid LTC Benefits and Requirements

Generally speaking, for qualifying people, Medicaid covers custodial care in a nursing home in all states. Custodial care is for when you can't perform some or all of the activities of daily living (ADL) without assistance:

• Dressing
• Bathing
• Transferring
• Walking
• Feeding
• Toileting/continence

Medicaid generally requires you to be unable to perform at least two of these six ADLs independently - much like LTC insurance policies. (See Long-Term Care Insurance: Who Needs It?) If you qualify for Medicaid by meeting the ADL requirement and your state's income and asset requirements, you can probably use Medicaid to pay the entire cost of care in a nursing home. (Janet Arrowood - http://www.investopedia.com/articles/05/031005.asp)

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3 Types of Traveller Suited to Annual Travel Insurance

Logic Insurance, 3 Types of Traveller Suited to Annual Travel Insurance, - The world of travel is extremely diverse. For example, some people see the beach as a paradise of warm sand and soothing waves, while others see it as a potential site of sunburn, sweat and dangerous surf. 

There are as many different types of traveller as there are locations to visit, and, in fact, each location can be experienced in many different ways.

Annual Travel Insurance

There is also a huge range of insurance policies to cover yourself whilst on a trip. An annual travel insurance policy is a wise choice for certain types of people.

The Business-Class Lounger

Annual travel insurance suits one obvious category: the frequent flyer, the itchy-footed, and the ones bitten by the travel bug, either by choice or obligation. Yet even within the category of those who have to leave home many times a year there are different types. 

One is particularly suited to this yearly form of cover. You will find him or her in business clothes with a smart suitcase, marching across the terminal with an apparent intuitive sense of where the business-class lounge is to be found, no matter which airport they find themselves in. Those who travel regularly over the year for business need a policy that serves them for the long term.

The Quick Island-Hopper

Business-class loungers may have their cover chosen for them, or they may have to purchase it themselves. In either case, their annual travel insurance can often be written off as an expense. But there is another type of frequent flyer who bears the cost themselves. 

The 'island-hopper' may travel by bus, train, or even car, and actually travels to many different places, not just tropical islands! They have an innate desire that drives the to escape from the daily grind on as many weekends, public holidays, or sneaky breaks as possible. It simply makes no sense for that traveller to purchase separate cover for each trip, so having a plan that is broad and flexible in place saves time and money.

The Professional Journeyer

The difference between the business-class lounger and the professional journeyer is one of attitude and destination. Many people who leave home on business because they must, for the sake of a meeting, a convention, training or another work-related activity; the professional journeyer travels for more in-depth reasons. 

Photographers, archaeologists, scientists, explorers, researchers, conservationists, geologists - for these, annual travel insurance covers their long and frequent forays to places that are the goal of their business or study. The glaciers of Greenland, the excavations by the Nile, and the trails of the Amazon are not simply incidental sites - they are often a passion.

About Author

Patrick Chong is the Managing Director of Insuremore. We provide low cost travel insurance and offer a range of policies including annual travel insurance, single-trip, multi-trip and family insurance. For all your travel cover needs, Insuremore can help you in the quickest and most cost-efficient way.

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Tailor Made Policy for Sport Horses

Logic Insurance, Tailor Made Policy for Sport Horses - Owning a sport horse can be expensive, with owners not only regularly buying feed, paying farrier costs, buying horse bedding and much more, they also have to consider higher costs such as vet's fees. 

Horse riding is classed as a high risk sport so it is highly recommended that owners and riders take out tailor made sports insurance to cover potentially larger vets fees, medical costs and even legal fees.

'Sports Horse Insurance' can help to give owners piece of mind and financial security. However, buying this type of insurance can be daunting, with so many insurers in this area offering so many different policies. Owners can use 'Equine Compare' to compare policies in order to choose the best insurer for them and the most appropriate customised and tailored insurance policy. 

The Importance of A Tailor Made Policy for Sport Horses

The site allows owners to view policies side by side in a clear and simple table of results. The results can also be filtered according to the needs of the horse and horse owner. Here are some factors you may want to consider when you compare insurance:

• The age of your horse
• What will your horse be used for?
• The value of your sports horse

The age of your horse

Horse Insurers have their own rules for the age of the animal for their standard horse and their veteran horse insurance policies. As a general rule of thumb, sports horses aged 16 or over are considered to fit into the veteran category, they will therefore need a veteran policy. The Equine Compare Horse Insurance table shows both standard and veteran horse cover policies according to the age of the horse.

What will your horse be used for?

Sports Horse owners have to declare to the insurers the level of riding / work that the animal will be asked to do. This may greatly determine the policy terms and cost of the cover. The insurers may place the animal in a category such as unaffiliated, affiliated or competitive; these categories vary between insurers.

The value of your sports horse

Owners can pay a thousand pounds to tens of thousands of pounds for a horse, depending on what level of riding and breed line they choose. Insurers base the cost of the policy on the value of the animal. This is why Equine Compare doesn't display the cost of the horse insurance premiums within the results table; there are just too many factors to consider. 

Owners really do need to obtain a tailored quote from the company to make sure that the insurance is the best for their own circumstances. The general rule of thumb is that the higher the value of the horse, the higher the insurance premium will be.

Before opting for a particular policy, it is always important to shop around and ask for a few horse insurance quotes, to make sure you end up with the best possible deal. (Faye Lewis)

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Comprehensive Family Travel Insurance

Logic Insurance, What is Comprehensive Family Travel Insurance? - Surprising numbers of people jet off on an international break every year without the assurance of family travel insurance. This choice may be made due to a reluctance to spend additional money, an ignorance of the risks, or simply a lapse in memory. 

However, travellers should be warned that there have been countless instances of people being lumbered with huge financial strain after sustaining serious holiday injuries or experiencing other unforeseen events while away.

The Importans of Comprehensive Family Travel Insurance

Expert Advice
Preparing For the Worst
Cover Based Around the Travellers Needs
Protection for the Family
The Availability of Cover

Expert Advice

The benefits of family travel insurance have been highlighted by the Foreign Office in recent times. They've revealed that forms of cover such as the European Health Insurance card do not act as a comprehensive safeguard against the wide variety of holiday eventualities. Travellers worried about the prospects of theft, injury and other unforeseen circumstances are strongly encouraged to consider the range of policies offered by specialist insurers.

Preparing For the Worst

The vast majority of holidays prove to be enjoyable and completely hassle free. However, those tourists who are unlucky enough to sustain serious injuries or illnesses are no doubt thankful for the safeguard of appropriate cover. They are able to rely upon financial protection in the event of emergency airlifts and repatriation, and insurers may even be prepared to pay out for electronic equipment that is unexpectedly lost or damaged - depending, of course, on the policy purchased.

Cover Based Around the Travellers Needs

People are often surprised by the range of financial safeguards guaranteed by a good policy provider; a reputable insurer will offer a range reasonably priced policies that include exceptional levels of cover for medical treatment and repatriation. Some providers also offer financial protection for those who miss flights due to unforeseen circumstances. It's always worth bearing in mind, however, that claims can be rejected due to forgetfulness or ignorance on the part of the traveller.

Protection for the Family

It's all very well facing the personal risk of travelling abroad without cover, if that's your choice, but it's worth questioning what would happen if a loved one became the unexpected victim of crime or illness while abroad. Travellers who've opted to remain uninsured may not be able to find the money for medical and legal assistance, which would be covered by a simple family travel insurance policy. Some of the better-known insurers even provide free cover for younger children.

The Availability of Cover

It's worth remembering that the industry is extremely competitive. There are a wide variety of companies attempting to attract clientele to their policies and it is relatively easy to identify good deals on price comparison websites. However, potential customers are should spend time considering their options and reading the policy small print before making a decision. Independent advice should be sought if there are any issues regarding the suitability of the family travel insurance policy chosen. (Patrick Chong)

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General Lies to Avoid Family Travel Insurance

Logic Insurance, General Lies to Avoid Family Travel Insurance - Family travel insurance is a vital protective measure for anyone who falls ill or encounters unforeseen (and often unfortunate) circumstances while abroad. 

Medical coverage, evacuation, reimbursing cancelled tickets, protection against theft - these are just some of the benefits of choosing a package designed to cover all family members.

5 Lies to Avoid Family Travel Insurance

Yet why is it that some people still choose not to avail of family travel insurance? Here are some of the most common excuses:

• It Just Costs Too Much
• Risks? What Risks? You Only Live Once!
• I'm Special and Blessed and Nothing Will Happen to Me
• It's Just a Quick Trip to a Familiar Place
• I'm Already Covered By My Bank/Carrier/EHIC/Credit Card

The immediate cost is one of the most common reasons - if not the most common - for families to skip getting cover. But, in fact, it is the financially constrained who need it the most. Indeed, you may be putting a hundred pounds or so into buying cover for your family, but that money could prevent you from spending thousands of pounds - maybe even tens or hundreds of thousands - if something goes wrong while traveling abroad. Spending a little to protect yourself and your loved ones is nothing when compared to that possibility.

Wilful ignorance and a romantic view of reckless abandon are two of the more frivolous reasons why people skip out on travel cover. Simply put, these people can't be bothered with the minor details of traveling abroad. They only see the beautiful, the exciting and the romantic, while refusing to see the risks, dangers and complications.

Only when it is too late may they realize that a little bit of research and financial outlay could have saved them a world of trouble.

This kind of thinking is another pretty common reason why people choose not to avail of family travel insurance. Destiny, divine favour, spiritual protection - call it what you will - some people assume that they're untouchable for one supernatural reason or another, and that nothing unfortunate will happen to them as long as they cling to that idea. 

But tempting fate is never a good idea, especially when it comes to misplaced faith. A divine lesson in humility may be doled out in one of the most inopportune moments, and it could take years (even decades) to recover from the resulting medical and financial damage.

Familiarity breeds complacency, which yields its own kind of danger when travelling. While a stranger may stumble around not knowing what to do, visitors familiar with the ins and outs of a location often relax their vigilance. The result: a danger that could have been noticed early on is ignored because of complacency. All it takes is one bad event, and even the most seasoned tourist can pay a hefty price if caught without the protection of proper insurance.

Make sure you read the fine print of any kind of insurance, especially since the coverage provided in 'free' packages is often lacking when compared to complete family travel insurance. Banks, airline carriers and even the venerable European Health Insurance Card offer some measure of protection while travelling - but it's not comprehensive. 

You will still end up spending a significant chunk of money out of your own pocket if you are caught unawares by one clause or another designed more for the benefit of the institution than your own. Government intervention is helping to alleviate this problem, with legislation forcing banks and carriers to either step up their coverage or abandon claims altogether. Until these laws come into full force, however, it is still best to work with a dedicated provider.

Have you noticed yourself using one, some, or all of these excuses? If the answer is yes, you may want to reconsider your reasons, lest you find yourself without protection when you need it the most! (Patrick Chong)

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Holiday Insurance a Waste of Money, Really?

Logic Insurance, Holiday Insurance a Waste of Money, Really? - It's a fact of life that nobody likes insurance. Well, the solitary exception might be those that earn a living selling it but for most of the rest of us, it seems to be one of those intangibles where we are paying for something and getting nothing apparently in return. So, does that mean that holiday insurance in particular is a waste of money?

Things can go wrong on holiday. For the vast majority of holidaymakers, their break is trouble-free and incredibly relaxing. It's a care-free escape from some of the more tedious realities of life and a chance to explore beautiful locations and beaches etc.

The Fact About Holiday Insurance

Yet it is a sad fact that occasionally things can go wrong for some unfortunate folk. Examples might include things such as being injured or taken ill and hospitalised as a result. Another problem might be the loss or theft of luggage and so on.

Should any of the above things happen to you, whether you are in a foreign country or on a domestic holiday, the chances are you will see a very significant hole in your bank balance as a result. If that sounds unlikely, try rushing out to the shops and buying replacements for all of your holiday clothes, travel items and luggage in the event you are unfortunate enough to suffer the loss or theft of a suitcase.

Another even more financially painful experience might arise if you need to pay for specialist medical ambulances to get you back home after hospital treatment on holiday. Expect some potentially ruinous costs if you need to pay for that sort of thing yourself because you don't have insurance to help.

Not all policies are the same

Having insurance is one thing but having suitable insurance is entirely different. In spite of what some cynics might tell you, not all insurance policies are the same apart from their logo. Some, for example, might exclude a whole range of holiday sports from their cover - and that might be a real problem if they happen to be sports you intend engaging in.

Another example of the type of thing to look for is family accommodation in the event you are injured. If you are in a hospital and a family member needs to stay with you locally once your holiday accommodation rental has expired, not all policies will necessarily cover their costs as well as yours.

These are things it would be a smart idea to discover before you purchase your policy rather than afterwards in the context of a major row when you failed to get a claim accepted. So, don't assume that one policy is as good as another but instead find a few minutes to read them before deciding which one to purchase.

The horrific facts

Figures published in early 2014, show that a staggeringly high percentage of people still go on holiday without any form of cover. It was also estimated that the cost of doing so each year is around $3.6 million - that's the amount people are paying out of their own pocket because they didn't have any insurance assistance.

In the final analysis, you may have to ask yourself whether this is a risk you are prepared to take in order to save a relatively small amount of money on that travel cover. (Brenda Campbell)

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The EHIC - A Valued Companion for Family Travel Insurance

Logic Insurance, The EHIC A Valued Companion for Family Travel Insurance - Family travel insurance is essential for families going abroad, at least for those who can't afford to spend hundreds or thousands of Euros when they met any unforeseen trouble. 

One particular safeguard that will be of great help when it comes to medical expenses is the European Health Insurance Card - or the EHIC. If you are completely new to the EHIC, here are some of the more important things you need to know, but it certainly comes with a warning: it is not a replacement for family travel insurance.

What Is the EHIC Insurance Company?

The European Health Insurance Card is a card that grants you healthcare benefits in the entire European Union along with Iceland, Liechtenstein, Norway and Switzerland - effectively providing coverage for over 32 countries in Europe. 

The EHIC is a useful addition to family travel insurance packages, especially when you fall ill or run into an accident while travelling abroad. If you have the card, then you are entitled to the same healthcare benefits as regular citizens in your host country.

Does it Mean Healthcare is Free?

This depends largely on where you are as well as the nature of your medical needs. Some countries provide free healthcare as long as you seek medical attention from state facilities. Others provide significantly reduced costs, meaning that you'll still have to pay a portion of the amount that depends on the healthcare policies of your host country. 

Also, you will only be covered if treatment is urgent and cannot wait until you return to your host country. This means that you cannot use the EHIC for 'medical tourism' where you travel abroad to seek medical treatment from foreign specialists or for reduced costs when compared to the UK.

Why Should I Get Private Cover When I Already Have an EHIC?

While EHIC is a great supplement, the biggest problem is that you will be forced to seek out state facilities in order to be treated. These state facilities are often few and far between, meaning that you'll need to travel pretty far in order to avail of the coverage provided. You may even be forced to go to a private hospital and end up paying the bills in case of an emergency. 

Another major problem is that even a fraction of the medical expenses can still hurt your account balance if the amount is large enough. Family travel insurance with added health coverage could cover this amount to the point where you won't need to worry about out-of-pocket expenses.

Will My EHIC Cover My Whole Family?

The card is valid only for the individuals named, meaning that you'll need to get a card for each individual member of your family. The card itself is free of charge, so you'll only need to worry about handling the paperwork. It is also worth remembering that only those over the age of 16 can apply for an EHIC themselves, and that children under the age of 16 can get a card of their own by filling out the 'dependent' section of the application.

Keep all this in mind, and you'll realize how important a tool the EHIC is when it comes to travelling in Europe. Couple it with a good, comprehensive family travel insurance policy and everyone will be well protected. (Patrick Chong)

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Get Value When Buying Family Holiday Insurance

Logic Insurance, Get Value When Buying Family Holiday Insurance - So you've made the decision to get family holiday insurance before your next big getaway? While it is the right decision, it is also just the start of the process. 

The challenge now is what policy you are going to get and if it is going to suit the specific needs of your family. It may seem like an overwhelming minefield, but the key is identifying what you need and comparing that to what various companies offer.

There are some travellers who are worried only about medical emergencies, especially if they are travelling with children. Meanwhile, others are more concerned about trip cancellation. Most companies will cover you for basic needs and a good policy should typically cover trip cancellation, baggage loss, and emergency medical assistance. 

However, this general coverage may still vary when it comes to the details. For example, companies may further specify the reasons for trip cancellation in what they will cover. Whether it is due to inclement weather, personal reasons, or the airline's fault, make sure that you know all the possible scenarios so that if your flight does get cancelled, you will know if you are covered or not.

Know What is Typically Not Covered

Just as important as knowing the details of what is covered in your family holiday insurance, understanding what is not included is also crucial. The tricky thing about this is that there are some people who assume things not listed in the policy are included but just too obvious to point out! Not true. 

To be on the safe side, and to prevent you having to shell out money in specific emergencies, it is better to know what you are not being covered for - and, again, the devil is in the details. For instance, while most insurance companies offer medical assistance in case of accidents during your holiday, this health benefit does not cover pre-existing conditions. Another example would be coverage for missed departure for direct flights but not on connecting flights.

Find Out If You Can Tailor Your Policy

Once everything is crystal clear as to what is included and not included in your family holiday insurance, it becomes easier to further tailor the policy to fit your family. If any family member has a medical condition that needs special attention, you may be able to specify it in the policy and perhaps forgo other items that are not concerns. Not only can it be easy to add and remove items in the policy according to your family's needs, this process also allows you to allot a budget properly and avoid unnecessary expenses.

So, while getting insured for your trip is a wise decision, you still need to pay attention to the details in order to get your money's worth. (Patrick Chong)

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How to Get Cheap Travel Insurance Cover?

Logic Insurance, How to Get Cheap Travel Insurance Cover? - There are two ways people approach holiday insurance. On the one hand, you may groan at the necessity and quickly scroll through suggestions, options and offers looking for the simplest and least expensive policy. 

On the other, you may sweat at the thought of losing your bag, catching malaria or falling prey to a hungry shark, and you hurriedly pick the most thorough, and most costly, plan you can find. But it's wise to stop and think, because if you do, there are plenty of ways you can save.

How to Get Cheap Travel Insurance Cover?

Be real about risksIt is easy for those invested in the first approach to travel cover mentioned to scoff at risk. It is simple to dismiss all that could (but probably won't) go wrong. But, especially if you travel with children, this scoffing can backfire, and when something does actually go wrong, and you're left to face the stress and loss on your own, you may regret not taking out the correct kind of insurance plan. Knowing your risks and being realistic about them does not mean living in panic or squashing the spirit of adventure; it means preparing, just as you would prepare to slather yourself in sunscreen for your up-and-coming beach tan!

It's not so complicated
There is one overwhelming reason why so many people eschew travel cover. The time it takes to pore over the details of a policy and procedures document can fairly mundane and seemingly like a waste of valuable time. In essence, this preparation need not be onerous though. The advent on solid online technology and diversified insurance providers, many of whom are underwritten by large institutions, means a quote is but a click away. After that, it is a simple matter of tailoring the plan to suit your exact needs.

Extras, freebies, and benefits
As demonstrated above, neither a blinkered nor a panicked attitude to travel cover works. Instead, proper thought and simple planning can deliver you a useful plan, and more besides. Typical plans do not merely focus on injury, theft, or disaster, they go beyond the extremes and diversify into specialty niche activities. For example, many providers offer extras, such as golf cover, free offers, such as free insurance for children, and a set of exclusive benefits at certain locations. Ask, and you very well may receive!

Ongoing peace of mind
Ultimately, the overriding reason to take out travel insurance is peace of mind. When you are reclining on a deck-chair or swooshing down alpine slopes, the due care and sharp eye for extras that saw you purchase the right travel cover will mean you can face all potential risks without trepidation. You can travel with your valuables, you can dabble in that adventure sport and you can send your bags off on the conveyor belt without a lump in your throat. Ultimately, the reason to stop and think is to save money and also ensure you end up with the right policy - so you won't have to give it a second thought whilst you're on holiday. Priceless!


Patrick Chong



Article Source: http://EzineArticles.com/8890307

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Insurance Advice for the Over 60's

Logic Insurance, Insurance Advice for the Over 60's - It's an unfortunate truth that people over the age of 60 encounter a host of disadvantages - including physical decline and the worry of impending retirement. 

However, there's absolutely no reason why this demographic should suffer financially too, in terms of paying more for comprehensive travel cover. There have been media reports regarding the unjustifiably high amounts charged by some travel insurance specialists for the over 60's, but it is possible to limit the expenditure if you pay attention to the details.

 Insurance Advice for the Over 60's

Policy Of Honesty

Some older people are fearful of disclosing medical information due to the risk of having to pay excessive travel insurance premiums - even considering setting off without the assurance of financial protection. 

However, it's quite clear that honesty is the better policy given the potential of incurring sizeable medical bills. Those travellers who sustain injuries and illnesses while abroad may have to pay thousands of pounds for quality medical assistance. They also face the prospect of having to foot the bill for repatriation or essential operations as a result of failing to purchase travel cover.

Specific Cover

Some insurers may refuse to cover older travellers with pre-existing medical conditions. However, other companies specialise in the provision of policies for people in this category. It's worth carrying out some online research and posing questions about the suitability of different policies via travel forums before deciding on one. 

Prospective travellers who are concerned about their health should also take the precaution of applying for the free European Health Insurance Card. An EHIC card may be presented for free or substantially discounted medical care in European countries - but with restrictions and guidelines in place.

Invest In Suitable Cover

Some insurers may attempt to lure customers with offers of free gifts and loyalty rewards, but prospective travellers should take care to only purchase entirely appropriate travel cover. It may be possible to save money and enjoy complete peace of mind without expensive policy add-ons, so it's a good idea to make a list of essential requirements. 

Winter sports or gadget insurance may be deemed extras in some instances, so be aware of what a policy does and doesn't cover.

The Issue Of Price

There is considerable variability in the price of travel cover for the over 60's, however it's important to resist policies that are seemingly too good to be true. Many are unlikely to guarantee adequate financial protection in the event of urgent medical or legal assistance abroad and some may include a very high excess.

In some cases, it may make better financial sense to purchase annual travel cover - depending on the amount of travel undertaken within a twelve-month period. There is a wealth of valuable information regarding such issues on the leading financial advice websites.

About Author

Patrick Chong is the Managing Director of Insuremore. We provide low priced travel cover with a range of policies including single-trip, multi-trip and family insurance. For all your travel insurance needs, Insuremore can help you in the quickest and most cost-efficient way.

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