GENERAL INDUSTRY QUESTIONS How is Healthsource NW different from an Insurance Company? We are an independent agency representing many different insurance companies. As an Independent we research for the best options for our clients and their insurance needs.   Why use an Independent Agency? Because we represent so many companies which excel in providing the best coverage's in a certain area. We can find a coverage or plan which suits your needs and budget. Health source NW believes in creating a customized insurance policy while lowering your premiums as much as possible.   How is Health Source NW compensated? We are compensated directly from the insurance carrier. Insurance rates are regulated by individual state. Insurance Carriers must apply and be approved to even have rates increased. This means you pay the same price whether you go through an independent agency, directly with the carrier or purchase on-line. Our benefit to you is the personalized customer service you will receive from our trusted advisors.   General industry probabilities that you may find of interest: • Odds of your home burning down (total loss): 1/16,000 • Odds of having your automobile totaled: 1% • Odds of meeting a $2500 medical insurance deductible annually: 1/25 • Age 40 odds of dying prior to age 65 (unisex): 12% • Age 40 odds of having a critical illness prior to age 65 (unisex): 30% • Age 40 odds of being disabled more than 90 days (unisex): 40% • Odds of a single person needing some level of long term care: 47% • Odds of a married couple needing some level of long term care: 70% • Percentage of total mortality in the U.S.A. from the "BIG THREE" (Cancer, Heart Attack, Stroke): 80% • Number of disability claims that are also critical illness claims (unisex): 3/4 HEALTH INSURANCE Tell me more about the rising costs of health insurance? Lots of reasons drive health care costs. Costly technology, state and federal regulations, medical providers, company shareholders, inefficient use of medical care by patients, high pharmaceutical costs, and people with poor health and poor lifestyles, etc.   Why is it so expensive to add my family to my employer's group coverage? Group insurance is guaranteed issue by state mandate. This means that if you have a heart attack today and two months from now get a job where group health is offered, you qualify for that plan regardless of health condition. In the individual market there are 51 state mandated health questions and you will be declined for certain health issues. On group plans, the insurance company can only ask your sex and age; no health questions. Their risk is high and getting worse. As result group rates are increasing rapidly. This poses a large burden and concern for all employers   Do all health insurance companies offer the same coverage and benefits? No. Depending on your particular situation, we can customize and tailor a plan to best suit your needs. Therefore, maximizing your coverage and lowering your premium as much as possible.   Do all health Are premiums for health insurance tax deductible? If self employed, they are deductible as follows: For 2001: 60%, for 2002: 70%, and after 2002: 100%. This would apply to partners and employees of a corporation for which a subchapter S election is in effect. LIFE INSURANCE   Term life insurance compared to permanent life insurance: Term life insurance offers the policyholder pure insurance protection. There is no residual value to the policy. It has no monetary value. The premium cost is for the insurance protection only. For most people, term life insurance is very affordable up to age 50. It gets progressively more expensive as you get older and above age 70 can be unaffordable for most people. Term insurance meets the needs for many people.   Permanent insurance offers many other benefits and has many more options when compared to term insurance. The premiums are generally more expensive. However the policy develops cash value over time with tax benefits. Options such as borrowing against the cash value of a policy are also available. A very important difference between the two is permanent life insurance is just that … permanent. Where Term insurance runs out after the term is up. Permanent insurance is the right option for many people with certain objectives.   I understand having life insurance on the breadwinner in the family. Is there a reason to have life insurance on the "stay-at-home" spouse? Yes. If the "stay-at-home" spouse is not insured and the breadwinner dies, the "stay-at-home" spouse would generally need to return to the workplace. This would cause many more needs on the home front. Given the relatively affordable cost for life insurance, we recommend having life insurance on both adults.   I don’t even want to think about buying life insurance. Aren't I just betting that I'll die? Yes. And the truth of the matter is we all die sometime. The real question is: How long do you want life Insurance? 5 years, 10 years, 20 years, or until you die? The key is to plan and prepare for the survivors so their current standard of living can be maintained. There will be enough stress without the economic burdens of too few assets left after the death.   Why do you recommend life insurance for a family and how much is enough? Like any of our insurance products, we like to assess our client's situation from a logical viewpoint and factor in budget constraints, family, time and age, and peace of mind issues. All insurance is about risk. The more risk you assume, the less expensive your premium. From a needs analysis standpoint, we like to find out about death expenses such as funeral and burial costs, other final expenses, and possible estate taxes. We then look at onetime expenses such as paying off a mortgage, possible college funds, paying off other debts, and other special needs. There are also considerations for living expenses until retirement, and how the shortfall in income that results from a death impacts the family.   DISABILITY INCOME PROTECTION   I already have health insurance, why do I need disability insurance? Major medical insurance pays your doctor and hospital bills, disability insurance replaces your income in the event you are sick or hurt and cannot work. Remember, your most valuable asset is your ability to earn income. Protect it.   Won't Social Security pay me if I am disabled? You may be eligible for Social Security Disability benefits but benefits are very limited, very difficult to qualify for, and may not be enough to pay all of your bills and living expenses.   I have workers compensation, why do I need disability insurance? If you are hurt on the job, Workman's Compensation will pay your medical bills. If you cannot work your employer could not continue to pay you your salary and would need to replace you.   I have savings that I could use if I could not work, why do I need disability insurance? A disability could last for months or even years. What took years to save could be wiped out in just a few months with a disability.   How long must I wait before disability insurance benefits begin? Most disability plans allow you to choose a waiting period before benefits begin. Most common are 30, 60, 90, or 180 days. The longer the waiting period, the lower the premium cost.   How long will I be paid benefits while I am disabled? Most disability plans allow you to choose how long benefits are paid. Most common are 6 months, 2 years, 5 years, 10 years, or to age 65. The longer benefits are paid, the higher the premium cost.   Which Medicare supplement plan should I choose? Plans A through J offer a wide variety of benefits. The only way to decide which is best for you is to weigh the benefit vs. cost on each plan. One of our agents can help you balance the scale and choose the right plan.   How much Long Term Care coverage does Medicare pay for? None, unless you have a hospital stay of three or more days (not including admittance day). If you do qualify based on hospital stay requirements, Medicare pays for the first 20 days only and then a portion of the next 80 days (you pay $99.00 per day of that next 80 days). Will that cover all of your Long Term Care needs in the future?