As a broker I often notice that potential clients only view me or my agents as just the Medicare insurance person when in fact we offer complete retirement planning for all ages. When I’m in an appointment I fact find by asking certain questions that people never talk about. For example:
Do you have concerns regarding post hospital care or long term care? Do you want to burden your children if you need that care? Do you have money set aside for intermediate and custodial care? I ask these questions because Medicare or Medicare Advantage plans do not pay for post hospital care, nor do they pay for intermediate or custodial care. Most people think they will never need it but if you are not properly covered it could cost you your nest egg.
Do you have life or final expense insurance? Do you have a whole life policy and are you still paying premiums? Why did you choose term insurance? If you don’t have coverage who will pay for your burial expenses, your children? Does that concern you? These are important questions because even if you do have coverage we find some folks are overpaying, have the wrong coverage or don’t even know what kind of coverage they have. In a lot of cases we are able to help reduce these costs or get them the coverage they actually need.
Do you have a 401K or an IRA? Are you happy with the returns on your retirement plan? What if you could get the market gains without the losses, how would that make you feel? I ask these questions because most folks I meet are not happy with the ups and downs of the market and feel because they are older they want to keep their money safe and have peace of mind about it. We are able to offer just that!
The aforementioned are just some of the concerns that are on the minds of seniors today but are afraid to talk about, and that’s why we ask those tough questions. We know by doing so we can help our clients with some important coverages that fit their needs and is affordable to their budget. Our clients never knew that we can help their nest egg last for the rest of their lives or stop paying the high premiums on their current life insurance AND STILL have life insurance. Let’s talk about what BGA Insurance Group is all about and how we can help you.
Medigap Insurance: is sometimes called “Medicare Supplement Insurance.” A Medigap plan works with original Medicare coverage to help pay some of your out of pocket costs such as copays, coinsurance, and the yearly Medicare deductibles. There are currently 10 different Medigap plans available and they are lettered A through N. Each plan has a different set of benefits to cover hospital and medical costs. The premium you pay for a chosen plan varies based on the plan design and company selected. All 10 Medigap plans are standardized meaning the benefits are exactly the same for each plan from company to company, the only difference is the premium you pay. For example plan F is plan F no matter which company you purchased it from.
Medicare Advantage Insurance: is also simply known as an “Advantage Plan” which are healthcare options, for example an HMO or PPO for the Medicare program. These are plans that are approved by Medicare and are managed and sold through private insurance carriers. They are also referred to as Medicare Part C. With this option you generally receive all your Medicare covered healthcare including your prescriptions through one plan. If you are enrolled in a Medicare Advantage Plan your services are covered through the private plan and are not paid for by original Medicare.
Medicare Part D: is a federal program to subsidize the costs of prescription drugs for Medicare beneficiaries in the United States. The Part D plan you choose has a monthly premium, you may have a deductible and copays. Under Medicare rules you are allowed to change your drug plan during the annual enrollment period regardless of your health or pre-existing conditions.
BGA Insurance Group realizes this can all be very confusing so let us take the guess work and frustration out of your hands and assist you in choosing the right program for your needs. We will enroll you and also service your prescription needs annually at no cost to you.
Whether you are saving for your retirement or safeguarding the financial future of your loved ones, BGA Insurance Group offers a wide array of Fixed Annuity programs to help you achieve your goals. Some of your biggest concerns may be:
Stock market losses
Not earning enough interest on your CD or Money Market
Deciding where to transfer your 401K after you retire
Wanting to leave your loved ones a legacy that is protected
Safeguard your money from probate
Let me show you just a few examples how we can help you with these concerns.
Equity indexed Annuities: provide the guarantees of fixed annuities combined with the opportunity to earn interest based on potential market gains, without the market losses and without directly participating in the market. Some the features that are available through indexed annuities are premium bonuses, various crediting methods such as the S&P 500, the Dow etc. and allocation options that give you choices for your money. You can also set up a feature on this annuity called an Income Rider which will pay you a pension that will last the rest of your life.
Multiyear Guaranteed annuities: is a contract between you and an insurance carrier where you agree to pay a premium from an IRA, 401K, CD, cash etc. and in return the carrier pays you a guaranteed interest rate for a specific period of time that you choose. We often refer to this type of annuity as a CD on steroids because it will surely pay you a higher rate of interest and you still have access to your money unlike a CD.
Immediate Annuities: make income payments immediately, or very soon after purchase. You use an Immediate Annuity when you want to start talking income as soon as possible. This annuity can also provide you and your spouse with an income stream that can never be out-lived.
I love explaining annuities to my clients because they are:
They avoid the probate process in Pennsylvania
You typically earn a much higher interest rate than compared to CDs, money markets and traditional savings accounts
You have access to your money year round
There are no costs such as management fees, contract fees and statement fees
You get the market gains without ANY downside risks
They provide a steady income stream for life
Safety….All annuities are backed dollar for dollar by the insurance carrier issuing them.
Basically as I outlined, fixed annuities are a powerful vehicle used for saving, retirement and guaranteeing regular streams of income. No matter how poorly the market is performing, and your friends are complaining they have lost money, I can always give you an honest answer by saying you haven’t lost a dime!
Another area of retirement planning that should never be overlooked is Life Insurance or Final Expense Insurance. If you have any of the following concerns you should definitely speak with your BGA broker.
Legacy to family members
Legacy to your favorite charity
Burial costs you don’t want to burden family members with
Tax free retirement planning (a great vehicle for people for all ages under 60 years old)
Help offset the tax burden on your loved ones
Your current life insurance has high premiums (we can help in most cases)
Peace of mind
Those are just a few concerns that people think about but the bottom line is this is an important part of your planning that cannot be ignored. Get in touch with your BGA agent because you are due for your free life insurance review.
Another important area that is almost always overlooked is Home Healthcare. I’m sure if you had a parent who needed this kind of care and was not set up with a proper plan the financial burden was unbearable. In some cases it devastates families financially. When I broach this subject with clients the question I always get asked is “why do I need it?’ I say number one is protecting your assets because if you ever needed post hospital care it could break your bank. I can’t tell you how many times as a broker I’ve seen people having to use up their nest egg money to pay for that care. In a lot of cases it wipes them out entirely and they need to find another source of income, in some cases going back to work.
Another reason this subject needs to be brought up is because most people say their children will take care of them. Does your child have their own children to tend to and take care of? Does your child have their own job or career they can’t afford to be taken away from? Do they even have the room for you? Quite simply do you want your children assisting you using the toilet or having to bathe you?
In some cases you just may want the highest quality of care in your own home and may want to avoid the government programs that will not provide the care you may want. It’s about having choices where you get your care including the privacy of your own home.
As a broker I bring these subjects up because you may be afraid to talk about them but I would be doing you an injustice if I didn’t. Please feel free to talk to your BGA agent about these subjects, don’t worry you will not be pressured into buying additional insurance if you don’t want to, but all the same you will be getting a great education in just a few minutes time of what could affect the outcome of your financial future and retirement plans.
Joe Bachmeier is one of the founders of BGA Insurance Group, located in the Philadelphia area. If you would like to setup a retirement consultation feel free to call us at (855) 494-0097 or email us as [email protected]
Our Office locations – Pennsylvania and New Jersey. We also serve Delaware.