What Insurance Is

What I’ve seen over and over is that most consumers don’t actually understand what Insurance is. They think you do it to get something. And that’s not completely true. You purchase Insurance in order to transfer risk.

Health Insurance, in particular, is confusing. Because there, you also want a program for non-emergency expenses. In order to (also) cover the risk on those more expected expenses, in addition to catastrophic losses, Health Insurance companies use Cost-Sharing mechanisms, like deductibles, copays and coinsurance.

Listen to my on the Struggling To Success Podcast for more!

Why I Love What I Do

I’m my own boss, I have control over my own agency, and have a chance to build relationships with wonderful clients.  And every day, I get to speak with a dozen or more individuals looking for health insurance and financial services.

I love what I do! It’s an honor and a privilege to help people with these challenges that are vital to our health and our wealth.

One of the things that the Rhoads Agency is best at is helping people to qualify for federal money (that tax credit subsidy). When you’re buying health insurance, that difference is dramatic.

How much subsidy you qualify for is derived from the Federal Poverty Level (FPL) chart. To qualify for a subsidy, your household’s income must be at least 100% or above the FPL, but not above 400% FPL. The two biggest factors for calculating where you fall on the FPL are your income, and your household size. Listen to Dan’s new podcast, Struggling to Success, here:

Financial planning for parents is essential at every level. If you want to ensure that you have things under control, Rhoads Insurance Agency advises that you take a look at your current situation and see what needs to be changed. This way, you’ll develop the financial security for which your future self will be thankful.

 

Make Sure Your Budget is Accurate

If you’re like some people, you may have a general monthly budget that you keep in your head or scribbled in a book somewhere. That’s a good start, but that’s not enough to maintain good financial footing.

According to Payoff, a successful budget starts with knowing your expenses down to the last cent. This should include not only recurring monthly payments but also sporadic ones, like car insurance payments and registration fees. Make sure you account for your savings and debt payoffs as well. It can be difficult to get everything to come together on paper if you have a lot of information to juggle. In that case, consider using top-notch budgeting software that will bring everything together for you. Some programs even offer tracking features so you can see how much you’re saving or how much of your debt you’ve repaid.

 

Plan for Emergencies

When you’re dealing with financial planning, you can’t neglect your emergency fund. Traditionally, it’s advised that you have between three and six times your monthly income set aside for emergencies. Since that may seem overwhelming at first, Better Money Habits suggests tackling manageable saving tasks instead of focusing on the grand total. Even if it’s a small amount, it’s important to start saving and it’s recommended that you use automatic transfers so you have no excuses.

If you’re looking for ways to save so you can build your cushion faster, consider using discounts when you’re shopping. It can also be helpful to buy things second-hand as long as it’s safe to do that, and focus on reusing items whenever you can. You can also look into getting a life insurance plan that has cash value accumulation, which can be used in emergencies and to help pay for your child’s college education.

 

Plan for the Future

As you’re putting your financial plan into action, make sure you’re thinking about your future as well. This is where estate planning comes into play. When you have a plan in place, it will ensure that your assets are handled as you wish and any children under 18 have an appointed guardian.

Another must-have is life insurance, as the funds from the policy will cover expenses generated by your passing or if you’re incapacitated. Term life insurance, in particular, can be very helpful as it guarantees a set death benefit after a certain amount of time. The good thing about these policies is that they tend to be fairly inexpensive, especially for those in good health. The funds from a term life policy can be used to cover things like unpaid bills, lost income, and funeral expenses. You may also consider looking into life insurance with living benefits, which means that you would receive the death benefit before your passing if you become chronically or critically ill.

 

Re-Invest In Your Future by Heading Back to School

Although the idea of going back to school might be scary, there are numerous benefits to seeking out higher education to establish a better future for your family. For example, an MBA can be an extremely useful tool to help you achieve that sort of stability that we all crave. Not only can you increase your earning potential with an MBA but you can also gain invaluable experience that will serve you throughout your life. This expanded skill set will have a direct impact on leadership ability and business knowledge that can lead to an increase in overall career prospects. Regardless of what degree you choose, know that there are numerous ways to advance your career through online programs that cater to working professionals.

 

Balance College and Retirement Savings

Everyone wonders if they have enough money saved for retirement, and as a parent, you also have to think about the cost of a college education. Based on recent estimates, a public college education can cost as much as $230,176 in 2035. It’s tough to definitively say what your retirement needs will be when you get to that age, but a cost of living calculator can give you an idea.

This means you need to find a way to balance saving for your kid’s college at the same time as your retirement. Depending on your personal circumstances, you can choose to stagger your savings or save for each at the same time. Whichever route you choose, make sure you do your research so you’ll end up with a strategy that works for you.

Financial planning for parents can be equally important and challenging. That doesn’t mean it’s impossible though. If you have an accurate budget and a detailed plan for the future, your ideal financial future will be within your grasp.

Photo courtesy of Pexels

When it comes to exploring your insurance and college funding options, turn to expert Dan Rhoads at Rhoads Insurance Agency. Reach out today for assistance.

Open Enrollment for 2021 is all over, folks!

That means that we’re no longer facing a crush of people needing help to enroll in health insurance.

 

What’s Next on the Calendar?

In the coming months, Dan Rhoads will be focusing on helping more people complete their health coverage with dental insurance. He’ll also be promoting Safeco, a Liberty Mutual Company, for their home & auto insurance. They’re a great company that deserves more recognition.

Those are two of the routine things that we’ll be focusing on in the coming months.

 

Retirement Readiness

The third and final area that Dan will be focusing on is Retirement Readiness. We have exceptional companies that we partner with for financial services, especially pertaining to protecting and growing your retirement savings. Dan is looking into getting full accredation as an Investment Advisor Representative, which would mean he could provide investment and asset management services. He would like to help individuals and families grow their savings during their entire careers, too.

 

Follow RhoadsLife and Dan on Instagram or Facebook to stay in touch.

 

Does the security of your retirement savings keep you up at night? Read on for 3 keys to a stress-free retirement.

Having your investments in a IRA or 401k may have made sense for you as you were growing your retirement fund. Now that you’re retiring, however, your priority is shifting towards protecting what you have.

 

Never Underestimate the Power of Zero

While yes, you can grow your money by investing it, you can also lose money. And now that you’re older, you don’t have an investment horizon that’s long enough to gain back the big losses that could come with a major economic recession. So for retirees looking for a stress-free retirement, the advice is simple. Take your money and reallocate it to a safe money place. When a recession hits us again, you’ll be guaranteed something that investors will wish they had, and that’s 0% minimum returns. When your neighbor looks 10% in a down year, you’ll be celebrating zero.

 

Participate in Market Gains

Many think that safety means sacrificing market growth. Wrong. There are a lot of financial products out there that are safe money places that do let you participate in market gains. It’s an excellent way to protect your assets and hedge against inflation, at the same time. Especially if you have an UNCAPPED strategy. That’s the path to a stress-free retirement.

 

Convert Your Savings to Retirement Income

You’ve saved your whole life, and want that stress-free retirement that I’m talking about. So convert your savings into a monthly payment to you that’s guaranteed for the rest of your lifetime. And the beauty of it is that you don’t even have to sacrifice either the Power of Zero or Market Gains.

 

If you want to read more, please call me at 484-509-1784, and I’ll send you a small book that will explain more. No obligation to buy.

 

Dan Rhoads is a licensed annuity broker and retirement planning advisor. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. This book is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not intended to provide specific legal or tax advice and cannot be used to avoid penalties or to promote, market, or recommend any tax plan or arrangement. You are encouraged to consult your personal tax advisor or attorney. Investment advisory and financial planning services offered through Simplicity Wealth, LLC, a SEC Registered Investment Advisor.

 

Benefits for Major Services

We see it often. Someone contacts us looking for dental insurance that will cover a major service without a waiting period. They might need a root canal, a deep cleaning, a crown, or an implant. I am forced to tell those people that many dental insurance plans will not cover those major services for the first 12 months. That’s the waiting period.

There are some carriers who offer dental insruance without a waiting period, but those typically have very low coinsurance in the first year. For instance, a dental insurance without a waiting period may only cover 10% for those major services in the first year, rising to 50% after that.

 

The Best Dental Insurance Without A Waiting Period

The best solution for this is to find a dental insurance that will offer a higher coinsurance immediately. We do have one dental insurance carrier who will insure major services with the max 50% coinsurance, from day 1. But you have to provide proof that you had other dental insurance up until recently, in order to qualify for those benefits. That might not be an option for you.

The next best solution is Ameritas. Never heard of Ameritas? They specialize in dental insurance. And they offer 20% coinsurance for major services, from day 1. That’s the best option we have yet to come across, except for the situation described in the previous paragraph.

 

An Even Better Solution

An even better solution, of course, would be to get dental insurance *before* you need it. If you don’t have dental insurance, the smart thing to do would be to be going to your dentist for checkups and cleanings every six months. Make it convenient by having dental insurance then. And, when one day you develop a toothache, your dental insurance will take care of you.

A United Healthcare company

We sell a lot of Golden Rule insurance policies here at the Rhoads Insurance Agency. And, we get a lot of questions about what this company is, since many consumers have never heard of it. Our usual response is that it is a United Healthcare company, or that it is a subsidiary of UHC. While that is correct, it would help to elaborate.

The Golden Rule Insurance Company was founded in 1940, and is headquartered in Indianapolis, Indiana. They were closely involved in the creation of Health Savings Accounts (HSAs) in the 1990s, and have for decades been a leader in health insurance for individuals and families. Their plans are medically underwritten. And today they are best known for their Short-Term Medical (STM) insurance plans, which consistently offer competitive rates over other STM providers. They also offer outstanding dental and vision insurance from United Healthcare, their parent company.

 

Golden Rule gets bought by United Healthcare

In 2003, United Healthcare bought Golden Rule and incorporated it into its corporate group. While United Healthcare offers health insurance products to over 28 million Americans, that is spread out over Medicare, group employer, and individual sectors. And Golden Rule accounts for the majority of its presence in the individual sector, and also uses the brand name United Health One.

 

Where our agency stands

We have been offering products through United Health One since 2018. Our clients have been very satisfied, on the whole. In fact, many clients have found us by searching for United Healthcare, because their STM coverages are the gold standard of the individual insurance sector. Their benefits are competitive, and their premiums are as affordable or better than any other individual insurance company.

 

Get Golden Rule Quotes with Us

If you’re interested in getting United Health One quotes, please CLICK HERE and use the request form.

Secondary Health Insurance

Medical costs can add up quickly. A secondary health insurance policy can pay cash benefits for hospital and doctor expenses.

Many Americans with employer benefits understand that having a second healthcare plan to assist with routine healthcare expenses is a smart decision. They know it as a Health Savings Accounts, or HSA. They make out-of-pocket expenses more managable and spending more predictible. And they are a smart way to deal with rising deductibles.

 

Personal Experience

This is Dan Rhoads here, your agent. I am a huge fan of supplementing a high deductible health plan with secondary coverage. As a strategy, it has worked for corporate employees and Medicare recipients for years. I believe that if more people took advantage of these options when they were young and still healthy, then there would be fewer Americans in dire healthcare situations.

That is why I am so passionate about secondary health insurance plans. I’m asking you to let me run comparisons for you. Let me compare a low deductible health plan, against a high deductible health plan and a secondary coverage option. I guarantee you’ll save money.

I have been offering this kind of combo plan for 2 years now. Click on the PDF image to see an example proposal.

UHC Combo Plan

 

Common benefits of Secondary Health Insurance

  • No network limitations.

You can go to any licensed doctor, hospital, or outpatient facility that works with your primary health insurance. In other words, it’s flexible. And, it goes where you go.

  • No deductible or waiting period.

Secondary coverage provides cash for medical expenses that are not paid by your primary coverage. And, isn’t that what we all want in this era of rising deductibles and healthcare costs.

  • No coordination of benefits.

Benefits will not be reduced, regardless of how much of the medical bill your primary plan pays. You will receive any excess benefits by check and can use that cash any way you want.

  • Renewable coverage until age 65.

These insurance plans are medically underwritten. So, you have to be relatively healthy to qualify for this class of insurance. But these secondary health insurance plans will not be cancellable due to any pre-existing condition, once you are subscribed.

 

A Smart Combination of Insurance Benefits

Consider combining this kind of plan with a high deductible health plan, just as you would for an HSA. Frequently, we see clients save a few hundred dollars a month by taking a high deductible health plan together with a secondary health insurance plan, when compared to a low deductible health plan.

 

Learn More

Please visit our Health Insurance page, or click here to get quotes to learn more.

 

That’s right, I felt that it was time to start doing a quarterly agency newsletter to stay abreast of changes going on with how I do business. And it being the end of the year, annual enrollment periods are upon us for making changes to health insurance and Medicare.

 

The Direction of RhoadsLife

Since going independent in 2018, I had a vision of serving clients as a one-stop-shop for all kinds of insurance and financial services. And I’ve come along way as an agent down that path. Most notably, I added homeowners and auto insurance to my portfolio in February, and college funding and financial aid in March. And currently, I am embarking on becoming securities-licensed, which will allow me to provide clients with Mutual Funds, IRA’s, 529 college plans, and variable annuities, as well as the fixed index financial products that are already available through my agency.

The majority of my clients find me when seeking out health and dental insurance. That isn’t changing. What is changing is where I can help clients from there. And that direction is towards supporting individuals and families who are seeking to build financially and/or protect their assets.

Check back in early January for developments…

 

Pressing Questions & Other Matters

Q: What is happening to Obamacare?

The Affordable Care Act does have its vocal critics, and over the last 4 years there have been reports that ACA plans are under attack. That may be, but I want to reassure those who depend upon their ACA plans to cover their pre-existing conditions or maternity care, that those protections will not be yanked away from them in an instant, no matter what happens politically. If you are one of the many Americans who depend on those protections, please do not panic: your ACA plans will be just fine through 2021 and the foreseeable future.

Q: What about those who want private insurance?

I can help out with that, too. More affordable private insurance is available for those who need it in the form of Short-Term Medical (STM) plans. STM’s serve their purpose well. The caveat is still the fact that these plans are not guaranteed renewable every year. So I recommend to those that want private insurance to talk to me about guaranteed renewable supplemental insurance that can be combined with a STM plan.

Q: Can you get Medicare plans with RhoadsLife?

Yes. Please submit a request for information on my MEDICARE page. Be prepared with your primary care physician’s name, your preferred pharmacy location, and a list of prescriptions you take including drug name, formulation, dosage, and frequency of use. I can compare all of the Medicare plans out there to offer you the best for your needs.