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American Insurance Group, LLC offers access to insurance products from the top "A" rated companies in the industry that provide value and long-term protection for your family.  Many people find choosing a plan to cover the gaps in Medicare confusing to say the least.  Our goal is to help you sort through the different plans available in your area and help you determine the plan that is appropriate for your situation and budget.  We make it simple and convenient for you to obtain coverage.  Your personal broker can help you decide what is suitable for you at no cost to you.

MEDICARE MADE SIMPLE:

• Created in 1965 as a Fee for Service Federal Health Insurance Program
• CMS (Center for Medicare/Medicaid Services) Manages Medicare
• Social Security Administration works with CMS by enrolling people in Medicare, enrolling in LIS (Low Income Subsidy) if appropriate, and collecting premiums through monthly Social Security check deductions.
• Its for people under 65 with certain disabilities, people 65 and older, and people with End Stage Renal Disease (ESRD).

THE DIFFERENT PARTS OF MEDICARE:

You can get the most from your Medicare benefits by learning what Medicare covers and by taking advantage of all that Medicare has to offer. Medicare has the following parts:

• Medicare Part A (Hospital Insurance) helps cover your inpatient care in hospitals. Part A also helps cover skilled nursing facility, hospice, and home health care if you meet certain conditions.
• Medicare Part B (Medical Insurance) helps cover medically-necessary services like doctors’ services and outpatient care. Part B also helps cover some preventive services to help maintain your health and to keep certain illnesses from getting worse.
• Medicare Part C (Medicare Advantage Plans) is another way to get your Medicare benefits. It combines Part A, Part B, and, sometimes, Part D (prescription drug) coverage. Medicare Advantage Plans are managed by private insurance companies approved by Medicare. These plans must cover medically-necessary services. However, plans can charge different co-payments, coinsurance, or deductibles for these services.
• Medicare Part D (Medicare Prescription Drug Coverage) helps cover prescription drugs. This coverage may help lower your prescription drug costs and help protect against higher costs in the future.

PLAN CHOICES (3)

1 - Medigap (Medicare Suppliment)

• Insurance Plans created by Medicare to cove the gaps in Medicare parts A and B.
• Been around since mid 60's.
• Issued by private insurance companies.
• No network and no referrals.
• Works with all state approved Part D plans, allowing you to choose the plan that best matches your prescription usage.
• Cost are competitive with Medicare Advantage Plans.
• Usually the only difference between Medigap policies sold by different insurance companies is the cost.
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2- Medicare Advantage (Part C)

• Established by the Balance Budget Act of 1997.
• Its another way to get your Medicare benefits.  Combines Part A, Part B, and in most cases Part D.
• Managed by private insurance companies.  All claims are handled by the private insurance company and not by CMS.
• Can charge different:
  • monthly plan and part D premiums
  • co-payments
  • coinsurance
  • deductibles

3 - Types of Medicare Part C Plans

• HMO - Health Maintenance Organization Plans
• PPO - Preferred Provider Organization Plans
• PFFS - Private Fee-for-Service Plans
• MSA - Medical Savings Account Plans
• SNP - Special Needs Plans

American Insurance Group, LLC offers access to insurance products from the top "A" rated companies in the industry that provide value and long-term protection for your family.  Because term insurance is traditionally the least expensive type of life insurance, it can be an effective product for those who need large amounts of coverage, but have limited budgets, such as young families.  We make it simple and convenient for you to obtain coverage.  Your personal broker can help you decide what is suitable for you. We also offer a range of life insurance products that may be appropriate for your long-range financial goals. Universal Life insurance provides value and long-term protection for your family.  Your personal broker can help you decide what is suitable for you.

What is Life Insurance?

Life insurance is a contract that provides payment of a death benefit to a designated beneficiary upon the death of the insured. This death benefit provides family members and businesses with the funds needed to help secure their futures in the absence of that income earner or key employee.

Asset accumulation

Cash value life insurance policies offer the ability to accumulate cash values on a tax-deferred basis. Depending on the type of policy, the funds can grow at guaranteed fixed interest rates or at variable rates tied to the performance of selected investments. Assets that accumulate within a life insurance policy may be available to the policy owner during his or her lifetime through policy loans and withdrawals and may also increase the death benefit available to the beneficiary.

Estate planning

The death benefit proceeds of a life insurance policy provide the funds needed to pay estate taxes that may be due upon the death of the insured, thereby preserving the value of the estate that passes to the heirs. Life insurance death benefits may also be received tax-free by the beneficiary, if properly structured — further enhancing the value of the estate.

Term Life Protection

Term life insurance protection that, upon death, helps:

• Provide funds to pay off a mortgage loan
• Replace lost income
• Provide education funds
• Pay estate obligations

Universal Life Insurance

Universal Life insurance protection that can help you:

• Protect the financial well-being of loved ones or accumulate wealth to fund retirement
• Preserve your wealth to help protect your family's standard of living against taxes and inflation
• Transfer your wealth, estate or business to the next generation

Your personal advisor can help you decide what is suitable for you, and provide details for specific products offered.

In the event that you or a loved one develops a need for long-term care services due to a functional or mental impairment, your family may not be able to provide the necessary care. Long-term care insurance helps provide the insured with independence from government intervention in personal financial affairs, a choice in how and where care is received and the dignity to control one's own future.

What is the purpose of long-term care insurance?

The purpose of long-term care insurance is to provide protection from the financial loss that could occur in the event that a person is incapacitated and needs assistance with daily living. Prolonged incapacity can significantly drain a family's financial resources due to the high costs of long-term care in an assisted living facility or home care environment.

Who should consider it?

The following factors should be considered when deciding whether long-term care insurance is needed.

• Your long-term goals concerning asset preservation and transfer to heirs
• Important to preserve your wealth
• Important to transfer your wealth to heirs
• Your current cash reserve position with regard to using these reserves for long-term care costs
• Alternatives available to pay for potential long-term care costs
• Sell assets
• Government assistance
• Your opinion of government assistance in meeting long-term care costs; is government assistance enough? How will that impact your standard of living?
• The opinions and considerations of the surviving spouse and/or family members
• Eliminate worry
• Preserve emotional stability
• Reduce burden of daily care provided by family members
• The possible effects of inflation in the event long-term care is needed

Don't leave possible future long-term care expenses up to your family.

A long-term care insurance program designed specifically for you can provide benefits to help cover additional costs of long-term care, which might mean freedom from becoming dependent on a family member.

Almost everyone in the market has seen at least some of their previous gains vanish before their eyes. What they should have done was talk to an expert before it was too late. Don’t be another sad statistic; secure your retirement with an annuity.

Annuities have benefits like...

• Growth potential with safety against any losses
• Tax Deferral (it’s your money not Uncle Sam’s)
• Protection from probate in many states
• Good rates of return that can be guaranteed
• And much, much more.

What is an annuity?

In the simplest terms, an annuity is a contract between a client and the insurance company offering the annuity. Generally, annuities are offered as immediate or deferred. With an immediate annuity, payout begins immediately or shortly after the initial contribution is deposited into the annuity. With a deferred annuity, payout begins at a date in the future. This article focuses on deferred annuities.

A deferred annuity has two phases:

1. The purchase or accumulation phase, which is the period of time between the investment and when annuity payments begin; and
2. The payout or annuitization phase, the period of time that begins with the first annuity payout.

During the accumulation phase, the investor contributes money to the annuity — either in a lump-sum payment or in periodic, ongoing contributions. During this phase, the account value grows on a tax-deferred basis. This means money that would otherwise have gone toward income taxes remains in the account to grow. Remember that the value of the investment will fluctuate so that your units when withdrawn may be worth more or less than their original cost.

During the annuitization phase, the insurer makes either a lump-sum payment to the investor or a series of payouts that can occur over a certain period of time specified by the investor. Withdrawals from an annuity are taxable as income and a 10% tax penalty may apply to withdrawals prior to age 59 1/2.

Annuity Advantages

Annuities offer a number of advantages that account for their popularity as retirement investment products. Generally, annuities

• Fixed and Fixed Indexed Annuities can never loss Cash Value regardless of market conditions.
• Are designed for long-term investors.
• Provide tax-deferred growth.
• Offer payout plans that provide an income stream during retirement, including an option that provides income for the lifetime of the annuitant or co-annuitant.
• Permit transfer of the account value as the death benefit directly to the beneficiary. This generally avoids the cost and delay of probate.
• Are available as a variable, fixed or combination annuity.

Annuities are long-term investments. Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal tax penalty may apply to withdrawals before age 59½ if the annuity is funded with Qualified (IRA, 403b, 401k, etc..) funds. Surrender charges may apply.

Variable Annuity

Many people invest in variable annuities to seek a hedge against inflation. This is because variable investment options have the potential, over time, to grow faster than the rate of inflation, depending on the performance of the securities market. Remember that the value of the investment will fluctuate so that your units when withdrawn may be worth more or less than their original cost.

When you invest in a variable annuity, your contributions are directed into your choice of variable investment options, which are sub accounts of the insurance company's "separate account" for annuity investments. Each subaccount invests in an investment portfolio created specifically for that variable annuity, and managed by investment professionals.

Instead of shares, you purchase "units of interest," and the value of these units rises and falls according to the performance of the sub account's investment portfolio.

Another feature of variable annuities is investment flexibility. You may tailor your investment strategy to meet your needs, even if those needs change. For example, you may:

• Select from a variety of investment options, which may include stock, bond or stable value (fixed-interest rate) options to match your investment preferences, personal risk tolerance and retirement time horizon, depending upon your employer's retirement plan and the annuity provider.
• Make tax-free and fee-free transfers of money among investment options in response to market conditions, or to reduce investment risk as you move closer to retirement.
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Your beneficiary will receive the greater of either the value of your account or the sum of your contributions, less any withdrawals, outstanding loans or transfers to other options.

Investment values will fluctuate so that the investor's units, when redeemed, can be worth more or less than their original cost.

Annuities are long-term investments. Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal tax penalty may apply to withdrawals before age 59½. Surrender charges may apply.

Fixed Annuity

On the other hand, many individuals prefer a low-risk, fixed-rate account for retirement savings. For these individuals, the certainty of a known rate of return is more important than the potential to earn higher rates of return in the variable options.

Contributions to a fixed annuity are placed in the insurer's General Account, and the company, in turn, guarantees a certain credited interest rate. The insurer may pay interest over and above the guaranteed rate when market conditions warrant it. Rates may be renewed monthly, quarterly or annually and may increase or decrease, depending on the economy. But the insurance company guarantees the interest rate will never go below the guaranteed rate set at the time you purchase the annuity. Guarantees are subject to the claims paying ability of the insurer.

Your beneficiary will receive the greater of either the value of your account or the sum of your contributions, less any withdrawals, outstanding loans or transfers to other options.

Annuities are long-term investments. Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal tax penalty may apply to withdrawals before age 59½. Surrender charges may apply.

Annuities Vs. CD's

Annuities and CDs (bank certificates of deposit) are similar in that they are safe, secure investments with guaranteed rate of returns based on interest rates, both issued by large financial institutions, CDs issued by banks, Annuities offered by insurance companies, but they both possess inherent differences as well.

The big differences are that while Annuities offer everything CDs offer, they carry several advantages.

1. Generally Higher returns
2. Tax-Deferral
3. Liquidity
   

CDs do have FDIC protection to guard against Bank or banking industry failure, but Annuities also have safety measures put in place by the state to ensure Insurance companies have reserve pools in place. Insurance companies may also be vetted for financial strength by obtaining their rating from objective rating firms -- Standard & Poor's, Moody's, A.M. Best or Duff & Phelps . The more solid the rating usually equates to a more solid financial backbone of Insurance Company.

Higher Returns:
Annuities, like CDs, are hinged to interest rates. But when rates are low so are CD returns whereas annuities have a minimum guarantee in place, usually 3% or 4%. Your investment will never dip below the guaranteed minimum interest rate during times of falling or low interest rates.

Again, low interest rates mean CD returns will be low as well. To offset the problem of low or falling interest rates, insurance companies equip annuities with guaranteed minimums. This is an agreed minimum rate of interest so that your investment is assured not to fall below the minimum performance even if CD rates do.

Tax-Deferral:
You pay annual taxes on CD interest earned without being able to withdraw funds until your investment term is over. With annuities, there is also a set term, but the earnings are tax-deferred. You only pay taxes on interest earned when money is withdrawn. So with annuities the deferred tax on your interest remains in the investment earning you more and more money, instead of being paid out to state and federal tax agencies on a yearly basis.

Liquidity:
CDs do not allow you to withdraw any monies during term. Period. Annuities have provisions that allow you to withdraw money, generally 10% of your account value annually plus many contracts allow you to remove the earned interest on a monthly basis. Several other contract provisions allow you access to all of your funds such as in the event you are hospitalized, undergoing a life-threatening illness, subjected to a permanent or extended stay in a nursing home, or other major calamities that affect you economically. In addition, annuities can be structured to pay-out for the life of the owner over a fixed term such as five or ten years, thereby spreading out your tax-burden and providing enhanced income security. In short, Annuities offer enhanced flexibility.

American Insurance Group, LLC offers access to insurance products from the top "A" rated companies in the industry that provide value and long-term protection for your family.  We make it simple and convenient for you to obtain coverage.  Your personal broker can help you decide what is suitable for you. We also offer a range of insurance products that may be appropriate for your long-range financial goals. Your personal broker can help you decide what is suitable for you.

Who needs a disability income insurance product?

Did you know that nearly half of all foreclosures are due to a disability?  At the age of 25, your chances of having at least one long term disability that will put you out of action for three months or more before you reach the age of 65 is 44%. Those are pretty high odds. 35? A 41% chance of long term disability! It doesn’t go away as you get older, either. One in seven people will be disabled for at least 5 years before reaching age 65. Although we often insure against death, disability is twice as likely to happen to people between the ages of 25 and 50. Unless you are prepared for it to happen, financial stress can be added to the pain of your disability.

How Does It Work

Disability Insurance replaces a portion of your income if you become disabled and are no longer able to work. A typical group plan offered by an employer will replace up to 60% of your salary. Supplemental plans and individual policies will often cover up to 70% or 80%. (No plan will cover all of your salary for fear you will have little or no incentive to get back to work.) Benefits typically last for a set number of years (say five years) or until you reach retirement age. (Benefits typically stop around retirement age since once you retire, you would no longer be dependent on the income you generated by working, anyway.) If you pay the premium out-of-pocket — meaning your employer doesn't cover the tab — benefits are tax free.

Long term disability policies vary greatly. While some are iron-clad and pay benefits when you need them, others have more holes than a pasta strainer. Folks trying to save some money with a leaner plan may find it ultimately worthless. Typically, the cheaper plans have very strict definitions of disability, making it difficult to claim benefits over many years.

Short-Term vs. Long-Term Disability Insurance
 

What's the difference? Short-term disability insurance — also known as sick leave — kicks in as soon as you're unable to work due to an illness, injury or the birth of a child. Most employers provide some type of coverage, ranging from just a few days to as much as one year. In some cases, the number of weeks you're eligible for this benefit is based upon how many years you worked at a company. The longer your service, the more paid sick leave you'll get.

Five states require employers to provide short-term disability. Hawaii, New Jersey, New York, and Rhode Island mandate most employers provide 26 weeks of coverage. In California, employers are obligated to offer 52 weeks.

Long-term disability insurance kicks in once your short-term disability benefits run out. Unfortunately, there are no state laws that require employers to provide long-term disability, but it's estimated that half of all midsized to large firms do provide at least some insurance.

If you do decide to buy an individual long-term disability plan or to supplement your employer-based insurance, be sure to find out how much short-term disability coverage you have. There's no reason to pay a premium for a long-term disability policy with a short elimination period of, say, 60 days when you have short-term coverage for six months.

How can the benefits be used?

From buying the everyday basics to the extras, you can use your disability income benefits to help:

• Pay your mortgage or rent
• Pay utilities
• Make car payments
• Pay doctor bills and other insurance premiums
• Buy groceries
• Maintain your standard of living
• 
  

Your personal advisor can help you decide what is suitable for you, and provide details for specific products offered.

American Insurance Group, LLC offers access to insurance products from the top "A" rated companies in the industry that provide value and long-term protection for your family.  Many people find choosing a health plan confusing to say the least.  Our goal is to help you sort through the different plans available in your area and help you determine the plan that is appropriate for your situation and budget.  We make it simple and convenient for you to obtain coverage.  Your personal broker can help you decide what is suitable for you at no cost to you.

Personal Finance Tools   

Cash Flow Calculators:

• How does inflation impact my standard of living?
• How much am I spending?
• Should I pay down debt or invest my monthly surplus?
• How long will my money last with systematic withdrawals?
• Should my spouse enter the work force?
• What is my current net worth?
• What is my projected net worth?
• What is my current cash flow?
• What is my projected cash flow?
• What is the value of reducing or foregoing expenses?

College Calculators:

• How much should I be saving for college?
• How much will college cost?
• What are the advantages of the Coverdell ESA?
• What are the advantages of a 529 College Savings Plan?
• What is the value of a college education?
• What are the payments on a parental (PLUS) loan?
• Should I live at home, on campus, or off campus?

Credit Calculators:

• How long will it take to pay off my credit card(s)?
• How long until my loan is paid off?
• What would my loan payments be?
• Should I lease or purchase an auto?
• What is the balance on my loan?
• Should I consolidate my personal debt into a new loan?
• Re-structuring debts for accelerated payoff
• Which is better: cash up front or payments over time?
• What is the impact of making extra payments on my loan?
• Should I pay off debts or invest?
• Auto purchase loan versu 0% dealer financing?

Home and Mortgage Calculators:

• How much home can I afford?
• Should I refinance my home mortgage?
• Comprehensive mortgage calculator
• Comparing mortgage terms
• Should I pay extra points for a lower interest rate?
• Should I rent or buy a home?
• Should I convert to a bi-weekly payment schedule?
• Compare a 'no-cost' versus traditional mortgage
• What are the tax savings generated by my mortgage?
• Should I take out a fixed or adjustable rate mortgage?

Taxation Calculators:

• What is my potential estate tax liability?
• Federal income tax estimator
• Should I adjust my payroll withholdings?
• Will my investment interest be deductible?
• How much self-employment tax will I pay?
• Capital gains (and losses) tax estimator
• Compare taxable, tax-deferred and tax-free investment growth
• How much of my Social Security benefit might be taxable?
• What are the tax implications of paying interest?
• Should I itemize or take the standard deduction?

Insurance Calculators:

• How much life insurance do I need?
• What is my life expectancy?
• What are my needs for burial and final expenses?
• How much disability income do I need?
• What are the chances of becoming disabled?
• What are my long-term care insurance needs?
• How much will I earn in my lifetime?
• What are the tax advantages of an annuity?
• How long will my current insurance last?

Investment Calculators:

• How should I allocate my assets?
• Compare taxable versus tax-free investment return
• What is the value of a bond?
• What is the return on my real estate investment?
• What is the value of compound interest?
• What is the value of a call or put option?
• Taxable vs. tax-advantaged saving comparison
• What is my risk tolerance?
• What is the long-term impact of increased return?
• Certificate of Deposit (CD) analyzer
• What is the dividend yield on a stock?

Paycheck and Benefits Calculators:

• How much will my company bonus net after taxes?
• How will payroll adjustments affect my take-home pay?
• Convert my salary to an equivalent hourly wage
• Convert my hourly wage to an equivalent annual salary
• What is the future value of my employee stock options?
• Should I exercise my 'in-the-money' stock options?
• What may my 401(k) be worth?
• What is the impact of increasing my 401(k) contribution?

Qualified Plans Calculators:

• Evaluate my company pension payout options
• How much can I contribute to an IRA?
• How much retirement income can my IRA provide?
• Should I convert to a Roth IRA?
• What will my qualified plan be worth at retirement?
• What is my current year required minimum distribution?
• What is my projected required minimum distributions?
• What are my lump-sum distribution options?
• How do I maximize my employer 401(k) match?
• What is the impact of borrowing from my 401(k) plan?
• What is the impact of early withdrawal from my 401(k)?

Retirement Calculators:

• How will retirement impact my living expenses?
• How much will I need to save for retirement?
• Are my current retirement savings sufficient?
• Social Security retirement income estimator
• How does inflation impact retirement income needs?
• I'm retired, how long will my savings last?
• When should I begin saving for retirement?
• Should I convert discretionary expenses to savings?

Savings Calculators:

• Becoming a millionaire
• Income generated by a savings plan
• How long will it take to double my money?
• How long until my savings reach my goal?
• Save now vs. save later calculator
• How much should I save to reach my goal?
• What will my current savings grow to?
• Calculate rate of return
• How do taxes and inflation impact my return?
• What is my effective annual yield?

• Pennsylvania Department of Insurance
• Medicare
• Centers for Medicare and Medicaid

• TBRE Consulting Company - Small Business and Individual Accounting and Tax Preparation 
• Oxford Area Senior Center - Medicare 101 Classes and other Senior Services