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  • Home
  • About Us
    • Meet our Team
    • Client Testimonials
    • Refer a Friend
    • Insurance Carriers
  • Blog
  • Service
    • Policy Review
    • Update Contact Info
    • Life Insurance Application
    • Request a Free Consultation
  • Individual
    • Life Insurance >
      • Term Life Insurance
      • Whole Life Insurance
      • Final Expense Insurance
      • Individual Life Insurance
    • Medicare
    • 529 Plan Alternatives
    • Social Security
    • Disability Income Insurance
    • Annuities
  • Business
    • Life Insurance Options for Businesses
    • Disability Insurance Options for Businesses
    • Medicare Educational Seminar
    • Social Security Educational Seminar
    • Group Life Insurance
    • Executive Plans
  • Contact Us
    • Schedule Appointment
    • Location & Contact Information
    • Careers

our Blog

Do I Automatically Get Medicare When I Turn 65?

7/31/2020

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​Remember when it was exciting to turn 16? 21? Well now it’s exciting to turn 65. This is the magic year when Medicare starts. As you know, Medicare is federal health insurance for people 65 and older, as well as some younger people with disabilities. Even though most Americans receive Medicare when they’re 65, there’s still a lot of questions about this coverage.

Let’s answer the question of, “Do I automatically get Medicare when I turn 65?” and why you should also consider Medicare supplement insurance at this time. 

When Does Medicare Kick In? 

If you are collecting Social Security benefits, you should be signed up automatically to receive Medicare at age 65. If you are not collecting Social Security, you’ll have to apply for Medicare in New Jersey either online or through Social Security. You can enroll yourself in Medicare Parts A, B and D (prescription coverage) as early as three months before the month you turn 65 or three months after the month you turn 65. 

We always recommend that our clients stay on top of deadlines, as you could get hit with permanent surcharges if you miss them. But there’s more than just enrolling in Medicare that matters. It’s also important to know what is covered and if you need supplemental insurance. 

What is Medicare Supplement Insurance? 

Medicare does not cover everything. So what happens if this federal insurance can’t meet your needs in full? 
Medicare supplement insurance, or Medigap insurance, helps pay some of the health care costs that Original Medicare doesn’t cover. This allows you to reduce unexpected health care costs and preserve your savings. It also gives you the options you need to take care of your mental and physical health. 

Some of the things Medicare supplement insurance can help with are: 
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  • Deductibles
  • Copayments
  • Coinsurance 
  • Excess charges 
  • Medical care when traveling abroad (only some policies) 

How Can I Get Medigap Insurance? 

All Medicare supplement insurance is sold through private insurance companies. Most of the insurance companies will expect you to have Medicare Part A and Part B, and you will be required to pay the Part B premium and the Medigap premium. As long as you keep your premiums current, your supplement insurance will automatically renew. 
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Rather than having to work with private insurance companies on your own, it’s helpful to speak with a financial advisor in NJ. This individual will sit down and look at your overall financial picture and if Medicare supplement insurance is right for you. If it is, you can get quotes from multiple carriers and compare which ones are the best. Costs do vary, but most policies offer the same benefits. 

To learn more about Medigap insurance for you or your spouse, contact Leonard Financial Solutions today. We’ll be happy to provide you with free Medicare quotes. 

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How Does the Cash Value of Life Insurance Work?

7/20/2020

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 ​Some types of life insurance in NJ have an investment feature called a cash value. This part of your policy earns interest and may be available for you to borrow against one day. While there are different life insurance policies, the most common one you’ll come across is whole life insurance. Term life insurance, on the other hand, does not have a cash value. 

If you’re interested in taking out a whole life insurance policy, you’ll be pleasantly surprised by how much money you can earn over the years. It’s an excellent asset that builds tax-free wealth - and there’s not much you need to do but pay your premiums! 

It’s also worth noting that whole life insurance offers “limited pay.” This allows you to pay your premiums for a limited number of years. Once you’re paid up, your cash value and death benefit will continue to grow, and the benefits will last a lifetime. 

How Does the Cash Value in a Life Insurance Policy Work? 

Permanent life insurance policies generally offer two features:

  • Death benefit. The death benefit is the amount that’s paid out to the beneficiary when you pass away. Usually, the death benefit is the amount of life insurance coverage you purchased when you set up the policy. 

  • Cash value. The cash value is an added feature of your policy that builds value. A small amount of your monthly premium goes into this (the rest goes towards the death benefit and other fees). This portion of your policy is tax free and earns interest over time. 

Am I Able to Access My Cash Value? 

It is possible to access your cash value when you need it, but it does depend on your policy. Also, keep in mind that when you borrow against your policy, it can reduce your death benefit. Generally speaking, there are three ways to access your cash value: 

  • Make a withdrawal. A common way to access your cash value is by making a withdrawal. You can usually do this tax-free and without penalty, though you don’t want to exceed the amount you’ve paid in. Otherwise, this extra money will be taxed as income. 

  • Taking out a loan. Another way to borrow money from your policy is by taking out a loan. You can usually borrow up to the cash value on your policy, including accrued interest and paid premiums.

  • Surrendering your policy. If you cancel your life insurance policy, you’ll have equity that you’re entitled to. But, be careful about “surrender fees” and income taxes. Also, it’s a good idea to replace the policy, as you won’t have coverage. 

What are the Benefits of Cash Value Life Insurance? 

If you are considering cash value life insurance as an asset, you’re probably wondering what the benefits are. Whole life policies are not cheap, after all, so you want to be sure that you’re investing your money into the right places. A financial advisor in New Jersey can help determine the best options for you, but here are some benefits to expect: 

  • Cash value grows tax-free as long as the money stays in your account

  • Fixed premiums for life 

  • Permanent coverage - your policy will never be cancelled as long as you pay your premiums 

  • Ability to borrow against your cash value

  • Death benefit that pays out to your beneficiaries if you die 

If you are interested in whole life insurance, contact Leonard Financial Solutions today for a free life insurance quote in NJ. We have solutions for everyone based on your needs, financial goals and budget. 


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