Five
Great Reasons to Have a Health Savings Account
1. Tax Savings
Federally Qualified* HSA contributions can be deducted from your gross
income on your federal tax return, even if you do not itemize deductions.
Many states also allow the deduction from state income taxes.
2. Earned Interest
Funds left to accumulate in your HSA can grow with tax-deferred interest
earning.
3. Reduced Insurance Premiums
Your insurance premiums are usually lowered by 20%-40% when you change
from a low deductible to a high-deductible plan. You can use these
savings to fund your HSA.
4. Portability
Even if you change jobs, your HSA funds go with you. You own your account.
5. Long-Term Savings
You can choose to let the funds in your account grow tax-deferred.
After age 65, you may make withdrawals from your HSA for any reason
without a penalty.
••••••••••••••••••••••••••••••••••••
When Should I Consider Term Insurance?
If you need life insurance for a specific period of time, term insurance
should be considered. It provides insurance protection from one to
30 years and is generally the least expensive form of life insurance.
If you die during the term of the policy, your beneficiary will be
paid the amount of money specified in the policy. If you are still
alive at the end of the term, coverage stops unless the policy is
renewed. Unlike permanent insurance, you will not build equity in
the form of cash savings.
Term insurance is a useful financial tool for:
• Those who need a large amount of life insurance, but have
a limited budget, such as a young couple, with children.
• Covering debts that will disappear in time, such as a mortgage
or car loan.
• Business owners who want to cover
the life of a key employee for a set number of years.
Keep in mind that premiums are lowest when you are young and increase
upon renewal as you age. Some term insurance policies can be renewed
when the policy ends, but the premium will generally increase. Many
policies require a medical examination at renewal to qualify for the
lowest rates. Before deciding on a policy from a specific company,
find out what their requirements are. Also, see if you would be able
to convert the term policy to a permanent policy later on.
If you think your financial needs will change, you may also want to
look into “convertible” term policies. These allow you
to convert to permanent insurance without a medical examination in
exchange for higher premiums.
••••••••••••••••••••••••••••••••••••
If you need further explanations or more details on any of the News
& Views you read on this page, please don't hesitate
to call us at 653-9062 or stop by the office. We'll be glad to anwer
any questions you may have -- and, as always, no strings attached. |
Top
10 Most Preventable Homeowner's Insurance Claims
1. Washing machine hose burst
2. Slow leaks in bathrooms
3. Toilet seat leaks
4. Unattended cooking or candle fires
5. Refrigerator water supply lines
leak
6. Roof leaks
7. Electrical cord fires
8. Chimney/fireplace fires
9. Content theft from autos
10. Hot water tank leak
NOTE
Homeowner’s Insurance may not pay, if a
claim could have been avoided with proper maintenance! It pays to
take care of your home.
Also, if you do have a claim and you are putting
in hours of labor to fix the damage, homeowner’s insurance
may pay you an hourly rate for the time and effort you invested.
Keep track of your hours!
••••••••••••••••••••••••••••••••••••
7 Costly Mistakes Parents Make When Buying
Insurance For Teen Drivers
Costly Mistake 7
Carrying low deductibles
Since the rates for young drivers are higher, the savings for higher
deductibles are higher too. Usually, you can save enough in a short
time to cover a higher deductible if you have a claim.
Costly Mistake #6
Not taking advantage of ALL discounts
Insurance companies reward drivers that they think are good risks with
significant discounts.
Costly Mistake #5
Placing the young driver on a separate
policy
There won’t be a multi-policy discount for the single car on
the teen’s policy and you will have to buy a policy from a “high-risk” insurer.
Costly Mistake #4
Insuring Your Home and Cars with 2 Different Agents
When you split up your home and car insurance with 2 different agents,
you’re most likely paying too much.
Costly Mistake #3
Not taking advantage of your good credit rating
Insurance companies have been using credit ratings to underwrite customers
for some time now. They know that if someone is responsible enough
to have good credit, they are usually more responsible drivers. So,
they give lower rates to these customers.
Costly Mistake #2
Lower Liability Limits to Save Money
This mistake can cause you financial disaster!
The #1 Most Costly Mistake Parents Make
When Insuring Their Teen Driver
Using an insurance company employee as an agent
Don’t trust your hard earned dollars with someone that works
directly for one insurance company. This agent isn’t interested
in your protection or saving you money. Their loyalty rests with their
employer that signs their paycheck.
|
