COBRA Continuation Health Coverage Alaska AK
Reader’s Question:
How exactly can COBRA help me secure health insurance coverage in Alaska? I don’t exactly understand what it’s for.
John
Anchorage, AK
Paying for individual health insurance coverage generally ends up being more expensive than getting one by groups. So, the premiums for job-based health insurance policies are lower than those of individual health insurance plans. If you have just retired or resigned from your job in Alaska, getting your own health insurance coverage could be a problem. The basic idea of COBRA or Consolidated Omnibus Budget Reconciliation Act is for former employees to get coverage continuously at group rates, which — prior to the enactment of this — would already have been terminated. At least temporarily, former employees, retirees and their families can continue to enjoy health insurance coverage at cheaper rates. Even though at this point, the employer will no longer share the expense, the fact that you are being charged group rates is still an advantage. Of course, not everybody is entitled to this. If your employment has been terminated due to gross misconduct, you are disqualified from availing yourself of continued health insurance coverage. So, be sure to enroll at your employer’s health insurance plan while you are still in active service. This applies to any company with 20 or more employees. I truly hope this helps. Try to ask your employer now for clarification.
Tags: Health Care, health insurance, insurance, insurance advice
Whole Life Insurance of Newborn Alaska AK
Reader’s Question:
Recently, my wife gave birth to a son here in Alaska. Can I get my son a life insurance policy even if he’s just newly born?
Randy
Anchorage, AK
Randy, the answer is–Who’s stopping you to get your son a life insurance policy? At age 0, your son will get the cheapest life insurance rate any person can get. Not only that, let’s say you got him a 10-years-to-pay whole life insurance plan, by the time he reaches 10 years of age, you already have paid in full your son’s policy.
For newly born babies, we usually suggest whole life insurance policies that have cash value built up features, so by the time he’s 20 or 25 or 30 years old, he already has accumulated a fortune. These figures we’re talking about is substantial enough that he can pay for his college tuition, assuming you did not borrow against the policy and missed a premium payment at any given time during the payment period. Imagine, your son will be able to afford studying at Harvard or Yale or any expensive Ivy League school because you had made arrangements early on.
But remember, Randy, should your son get the money, the accumulated benefits of the whole life policy will be considered paid, and the contract between contracting parties will end as the policy, in effect, is surrendered. To all the daddies like you in Alaska, my hat’s off to you.
Tags: life insurance, life insurance policy, whole life insurance
Life Insurance As Financial Protection Alaska AK
Reader’s Question:
What kind of life insurance policy here in Alaska should I look for if I want to be covered until I’m done paying for my house and done sending the kids to school?
Helena
Anchorage, AK
The best type of life insurance policy for your question would be a term life insurance policy. Term life insurance is a kind of temporary life insurance coverage that can provide you with a very high “Face Value” (which is the total monetary value included under your policy for death benefits) for very low or cheap life insurance premiums.
Term life insurance is good for those who are only looking into getting life insurance coverage for themselves (and effectively their income-generating capability) while attending to long term financial obligations such as raising a family, or in your case, paying house mortgage there in Alaska and paying for your kids tuition and other future expenses.
You have the option to get life insurance coverage for five, ten, twenty, even thirty years (depending on what is being offered) and there will be some providers who can give you a guaranteed renewable term policy so that you can still renew your policy should you wish to extend your coverage after the term policy expires.
It is important to note, however, that if you are thinking of long term insurance. It might be best to go with a Whole life insurance policy eventually. Term life Insurance premiums tend to get more expensive as one gets older and may not be cost-effective anymore once you are already in your golden years. It would be very good to shop around to get the best rates available. Life insurance portals (such as this one) are great tools to compare quotes across many different companies.
Tags: life insurance, life insurance advice, life insurance cover, life insurance coverage, life insurance information
Benefits Of Whole Life Insurance Alaska AK
Reader’s Question:
What are the benefits of a whole life insurance policy in Alaska?
JC
Anchorage AK
When someone thinks of a life insurance, the first type that comes into mind is the whole life insurance. Aside from the life insurance it offers, whole or permanent life insurance has also benefits that a term life insurance does not have.
One of the benefits that a Alaska whole life insurance offers is the level guaranteed death benefit. Unless the guaranteed death benefit is part of the estate, it is usually free from Federal income tax. Death benefit cannot be cancelled so long as required premium is continuously being paid. The whole life insurance premium remains level. This means that it never increase unless policy owner has a modified whole life insurance policy. Unlike term life insurance policy, whole life insurance policy has cash value component where policy owners can take a loan without tax. If the policy owner has a participating whole life insurance policy, he/she can earn dividends when the life insurance company declares it. Dividends depend on the life insurance companies’ experience and performance. Whole life insurance policy is also flexible. There are certain modifications and derivations from whole life insurance policy like the modification life policy, single premium life insurance policy and limited payment policy. There are also different riders that you can add to your whole life insurance policy such as waiver of premium, accidental death benefit, term life insurance, living benefit rider, spouse & children riders and future policy purchase riders.
Tags: whole life insurance
Life Insurance First Time Policy Alaska AK
Reader’s Question:
Hi! I’m a life insurance first-timer from Alaska and was hoping you could provide tips to help me get good insurance? Thanks!
Kurt
Anchorage, AK
Before setting out for your first life insurance provider there in Alaska make sure that you understand why you want to get life insurance to begin with. It should because it sounds good to have one or because you were persuaded by a sales agent to get one. It has to be based on your goals and needs with regards to wanting to make sure that you’re family is financially secured in the event of your demise, of simply wanting to be responsible enough not to burden anyone else with your funeral expenses in the future. Here are some additional tips you may find helpful in looking for your first life insurance policy:
1. Term Life Insurance is advisable if you are relatively young and healthy and have financial obligations, such as raising a family or having your own business. It is also recommended to those paying mortgage, loans and debts. You can get a very high “Face Value” amount for your policy (a.k.a the Death Benefit pay out) for comparatively cheap life insurance premiums and the policy would only have to last up to a certain period of time and may be renewable.
2. If you are already looking into a few decades of retirement then whole life insurance would benefit you the most. Part of your premiums goes into a cash value account and earns interest, that could eventually pay for the policy on its own) while maintaining adequate life coverage.
Tags: term life insurance, whole life insurance, life insurance rates, life insurance advise
Rescission of Health Insurance Policy Alaska AK
Reader’s Question:
My health insurance company here in Alaska claims that I have misrepresented some of the personal information I made available to them. What’s going to happen to me now?
Marga
Anchorage, AK
If your health insurance company in Alaska finds that you have willfully or knowingly given them the wrong information precisely to deceive them, then they may rescind your health insurance coverage. This move will render your health care insurance null and void from the moment it was granted to you. Legally, there is a difference between an honest or inadvertent mistake due to some kind of confusion, and a clear cut intentional misrepresentation. However, some health insurance companies are very quick to rescind. They argue that even though this sounds quite harsh, this is necessary to protect them against fraud. The worst that could happen is that your health insurance company declares that you have given them incomplete or the wrong information and they rescind your policy. You will no longer be able to avail yourself of health insurance coverage when you need it.
It is also possible that your insurance policy is non-renewable. In this case, they may refuse to renew your health insurance policy. Unfortunately, they are authorized to do so. You have to read your contract very carefully to find this out. In most cases, this is also a result of providing them with inaccurate information.
It just might be a good idea to seek legal counsel.
Tags: health insurance, insurance, insurance advice
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