As the Holiday Season is upon us, we find ourselves reflecting on the past year and on those who have helped to shape our business in a most significant way. We value our relationship with you and look forward to working with you in the year to come.

We would like to thank you for contributing to the success of our company and helping to make it one of the top Financial Services and Insurance Brokerage Firms in the Northwest. We have some great programs launching in early 2012 to assist you in your financial success and some exciting offers lined up for you. Next time, when questioning your financial future and how to protect you and your family, please keep us in mind. As always we are at your service. We wish you a very happy Holiday Season and a New Year filled with peace and prosperity.

Our heartfelt best wishes to you and your family.

Sincerely,

Ralph Van Winkle

With the holiday season almost upon us and 2012 quickly approaching we wanted to take this opportunity and address some insurance related issues that a new calendar year always brings up. Whether you have an individual or employer sponsored Health Insurance plan, a Life insurance policy, Dental and Vision plan, or some combination thereof, here are a few things to keep in mind as we close out 2011 and usher in 2012.

Health Insurance:
For most policies, your Medical plan’s deductible (or copay maximum amounts for HMO plan holders) and maximum out-of-pocket limits are based on a calendar year regardless of when your coverage became effective. All deductibles, copays, and out-of-pocket maximum amounts will therefore be renewed on January 1, 2012. If you are unsure about your policy please refer to your policy booklet or call our office.

Dental and Vision Insurance:
If you have Dental insurance, your deductible and annual benefit maximum(s) also most likely follow the calendar year and will reset January 1, 2012. If you have Vision insurance this is the only set of benefits that track to your last date of service. For example, if you visited a provider on March 15th of 2011, and your plan provides for an exam every 12 months, you would be eligible for another exam after March 15th 2012.

Health Savings Accounts (HSA):
As set forth by Congress and the IRS, the annual HSA contribution maximums will be changing for 2012. Individual contribution maximums will increase by $50 and Family contributions by $200. If you are age 55 or older your catch-up contribution will remain $1,000.

2012 HSA Limit for Individual Coverage

The 2012 maximum annual amount that can be contributed to an HSA is $3,100 for an individual, up $50 from $3,050 in 2011.

2012 HSA Limits for Family Coverage

The 2012 maximum annual amount that can be contributed to an HSA is $6,250 for families,  up $100 from $6,150 in 2011.

2012 HSA Limits for Catch-Up Contributions

Persons over age 55 are entitled to an additional annual catch-up contribution of $1,000 in 2012—a number that unchanged from 2011.

Remember, you have until April 15th 2012 to make your 2011 HSA contributions. If you have any general questions about HSA account funding please call our office at 800-570-6333 or send us an email at info@vanwinkleinsurancegroup.com

Life Insurance:
If you have an existing Life insurance policy it is a good time to review the coverage and make sure the policy fits your current needs. If you have bought or sold a business, gotten married, had children, bought a house, or if any number of other important life events have take place since purchasing your policy, you may be under or over insured. If you don’t currently have any Life insurance, start 2012 off right by protecting your family and the ones you love with a Life insurance policy. The process is easy and rates are very reasonable.

Finances:

If you currently have investments and close to retirement or in retirement, please contact your financial advisor for end of the year planning. Find out if you could potentially alleviate any burdensome tax bills and investment shortfalls by investing in 2011 vs. 2012.

Ancient Egyptians built the pyramids as a process of life. They felt the steps to greatness could be achieved through dedication and as a community built over 100 pyramids still standing today. Its the structure and stability that provides the ability to weather all storms.

A similar concept—a financial pyramid—offers a model for financial stability and health. The base tier of the pyramid represents the foundation of a sound financial plan. The function of this tier is to “guard against life’s uncertainties,” primarily with insurance. This includes life and health insurance, disability insurance, long-term care, homeowner’s and auto insurance. With adequate coverage, a family can be protected against unexpected occurrences in life that might otherwise create a financial hardship. Another key element of the foundation is having adequate “cash on hand” in case of an emergency. This includes your regular savings accounts and money market funds —in fact, any type of account that allows easy access to your money, penalty-free. The goal is to have a cash reserve that is equal to three, and preferably six, months of expenses.

Additionally, you should have a will for both you and your spouse. Your insurance or financial advisor will be glad to give you the names of local attorneys who specialize in wills and estate planning. The second level involves “growing money”

through investment. Here, you want to make sure your plan includes the practice of diversification. Today, many people invest in mutual funds, which by their definition are diversified and professionally managed. However, there are other investments and tactics to consider when building a successful portfolio. Your best bet is to review your
desires and goals with a professional financial advisor.

The third tier of the pyramid addresses how to manage your retirement and how to protect and distribute your estate. This can be achieved with an estate plan and other advanced planning strategies, including trusts and updated wills. Once again, conferring with a financial advisor or an estate planning professional is advisable. Their
expertise and guidance can help ensure that your estate is managed according to your desires and goals.

Here’s good news about life and health in the U.S. today:

The average life expectancy, which was 65 about 50 years ago, is now well over 70. What’s more, the older you get, the older you’re likely to get. Once you reach 65, you can expect to live another 18.4 years. If you make it to 75, your life expectancy increases to 86.8.

What that means, for many, however, is that getting long-term care insurance can be a good idea.
Long-term care includes a wide range of medical and support services for people with a degenerative condition (i.e. Parkinson’s or a stroke), a prolonged illness (cancer) or a cognitive disorder (Alzheimer ’s). Most people need such care in their later years, but younger people can need it, too, due to accidents or illnesses.
The care can be provided in many settings including nursing homes, your own home, assisted- living facilities and adult day care. Almost half of all long-term care insurance benefits pay for home care. The care is not only chronic care but involves assistance with daily living, dressing, eating, traveling and housekeeping. Full-time, this can become very expensive; that’s why you need insurance.

Important Things To Know

• You must health qualify for long-term care insurance. Not everyone can. Because health changes, especially as you age, it’s smart to look into this well before you reach retirement age (your 50s are generally a good time to start, but definitely before 65).
• Long-term care insurance can be far more affordable than you think. There are many ways to make this protection affordable.
• Rates (premiums) can vary significantly from one insurer to another. Speak with a knowledgeable professional to get the best protection for the best rate.
• Health qualifications can also vary from one insurer to another. Be prepared to share information with an insurance professional.
• You’re only going to buy long-term care insurance once. It’s almost never economically advantageous to switch, primarily because costs are based on your age at application.

Mistakes To Avoid

• Waiting too long to start planning. The sooner, the cheaper.
• Believing it won’t happen to you.
• Counting on government programs.
• Not working with a long-term care insurance professional.

Learn More
If you have a relationship with a financial planner or other financial professional, you can ask for referrals to a long-term care insurance specialist. If you need to find a professional or if you’d like more information, you can contact us and we will put you in contact with a trusted source in your area.

Happy Thanksgiving from all of us at Van Winkle Insurance Group

 

May you have many things to be thankful for this holiday season!

Here is a list of changes that are coming in 2012. For the most part Health Insurance will not change if you are not effected by Medicare.

Health Care Reform 2012: Medicare

• Make Part D cost sharing for full benefit dual eligible beneficiaries receiving home and community based care services equal to the cost sharing for those who receive institutional care.
• Allow providers organized as accountable care organizations (ACOs) that voluntarily meet quality thresholds to share in the cost savings they achieve for the Medicare program.
  
  

• Reduce Medicare payments that would otherwise be made to hospitals by specified percentages to account for excess (preventable) hospital readmissions.
• Establish a hospital value based purchasing program in Medicare and develop plans to implement value based purchasing programs for skilled nursing facilities, home health agencies, and ambulatory surgical centers.
• Provide bonus payments to high quality Medicare Advantage plans.
• Reduce rebates for Medicare Advantage Programs

Health Care Reform 2012: Other Changes

• No other 2012 health care reforms are planned based upon the original law.

For More Information

“Focus on Health Reform: Health Reform Implementation Timeline,” The Henry J. Kaiser Family Foundation.

The Center for Disease Control released some disturbing facts about the state of U.S. Heath. Here are just a few facts…

• 1 in 10 Individuals has Diabetes and is expected to increase to 1 in 3 by 2050
• Only 71% of individuals with Diabetes are diagnosed making 29% unaware of the disease
• Diabetes and Hypertension is the #1 costliest conditions to employers because of healthcare cost, lost workdays, and lost productivity.
• Eye Disease cost more to consumers each year than Lung Cancer, Breast Cancer and Brain Cancer combined.
• Heart Disease is the number one cost to consumers.
• 70% of Americans die from Chronic Illness from Diabetes, Cancer, or Heart Disease.
• 1 in 7 Americans exercise on a regular basis

Four Common Causes of Chronic Disease

Four modifiable health risk behaviors—lack of physical activity, poor nutrition, tobacco use, and excessive alcohol consumption—are responsible for much of the illness, suffering, and early death related to chronic diseases.

• More than one-third of all adults do not meet recommendations for aerobic physical activity based on the 2008 Physical Activity Guidelines for Americans, and 23% report no leisure-time physical activity at all in the preceding month.

• In 2007, less than 22% of high school students and only 24% of adults reported eating 5 or more servings of fruits and vegetables per day.

• More than 43 million American adults (approximately 1 in 5) smoke.

• In 2007, 20% of high school students in the United States were current cigarette smokers.

• Lung cancer is the leading cause of cancer death, and cigarette smoking causes almost all cases. Compared to nonsmokers, men who smoke are about 23 times more likely to develop lung cancer and women who smoke are about 13 times more likely.

• Smoking causes about 90% of lung cancer deaths in men and almost 80% in women. Smoking also causes cancer of the voicebox (larynx), mouth and throat, esophagus, bladder, kidney, pancreas, cervix, and stomach, and causes acute myeloid leukemia.

• Nearly 45% of high school students report consuming alcohol in the past 30 days, and over 60% of those who drink report binge drinking (consuming 5 or more drinks on an occasion) within the past 30 days.

• A large number of studies provide strong evidence that drinking alcohol is a risk factor for primary liver cancer, and more than 100 studies have found an increased risk of breast cancer with increasing alcohol intake. The link between alcohol consumption and colorectal (colon) cancer has been reported in more than 50 studies.

Depressed? Me too!

We spend money to buy something for the satisfaction of possessing it. But life insurance is a product we can’t see, can’t touch, and in most cases can’t enjoy it in our lifetime. Why should we buy life insurance then?

1Protect your family and assets

This is the main reason people buy life insurance.  What would happen if you die today? What will happen to all your debt? What will happen to your kids financial well-being that they rely on you to provide. We work hard in our whole life to increase our value and do not want to loose everything you worked for if you pass away. Only two things are certain in life – death and taxes. In death, life insurance will be our wealth creation tool to instantly generate the cash we could have earned to take care of our family and loved ones.

2Show your love to your family

“We love because it’s the only true adventure.” – Nikki Giovanni

This is the statement that will usually gets individuals to roll their eyes when you say it. Talk to any family that has had a  loss of a family member and their loss of income was replaced with life insurance. Your family can tangibly see that you took the right steps to ensure your families security. If love and life is indeed an adventure, life insurance becomes the safety net.

3Our health is deteriorating everyday

Do you know anyone who is getting healthier everyday? By the time he is 100 years old, he is at the peak of his health condition. He can live on forever! Gosh, people are getting older and this is an undeniable and unstoppable fact. Our health is deteriorating every minute. We never know the exact time a disease will strike us. Fear of illnesses motivates people to buy life insurance.

4Practice the habit of forced savings

When we face the shortage of cash, withdrawing money from our life insurance policy is always the last resort. In the fear of losing the life insurance policy, we are forced to make the regular premium payment. In the long-term, life insurance is a great saving tool. It forces us to save for the future, and also for the unforeseen disaster. Included with that is the ability to overcome the opportunity loss.

5Funding a trust

A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. The cheapest way to fund a trust is using life insurance. The cost of premium is only a few percentage of the trust fund we intend to create. This will allow a tax-free trust account that you can pass on to desired relatives.

6Funding a business operation

An employer takes out an insurance policy insuring against loss of profits arising from the death, sickness or injury of a key employee. The beneficiary is the employer. The life insurance policy bought is known as key-person policy. The insurance payout will be used as emergency fund for business operations.

7Funding Buy-sell agreement in partnership business or corporation

Every co-owned business needs a buy-sell agreement the moment the business is formed or as soon after that as possible. Every day that value is added to the business without a plan for future transition, it increases its financial risk. What happen if one of the partners decided or forced to exit the business? The most common triggering events are dispute, death, disability and retirement. Life insurance can be used to fund purchases of the deceased shares in the event of death.

8Charity

A charitable trust is a trust established for charitable purposes. Charities may take the form of charitable trusts, companies or unincorporated associations. Some wealthy entrepreneur buy life  insurance to fund their charitable trust tax-free. This will allow their estate to pass on a substantial amount to their desired charity upon death.

9Funerals are Expensive

The average funeral will cost from $6,000-$12,000 based on a 2009 study of U.S. burial cost. That does not include any additional cost of probate proceedings and you hiring a legal or financial representative to guide you through the process.

10It Makes Financial Sense

Life insurance is considered a financial asset, which can help increase your credit, get loans for homes, business, cars and a multitude of other financial needs. Many policies have cash value, which even in case of bankruptcy cannot be touched by creditors. This is why it is important for you to find the right agent for you. Make sure your Life Agent or Broker explains each product in a manner that is understandable. Agents tend to have the way of taking about insurance with big words like “actuary” or “indemnity.” These are words that can be simply stated but rarely are. If you have questions make sure you ask them or drop us a line and we will be more than happy to clarify an issue.

Are your parents or family members entering into their golden years? Have you taken the proper steps to make sure they are taken care of? I always tell clients it is easier to correct a problem then to fix it. Here are the general facts about the retiring ”Boomer Bubble,” and what you need to know.

• 42% of individuals over the age of 53 have never had any financial, retirement or elderly planning.
• In the next 15 years over 70 Million U.S. Citizens will retire.
• The average retiree will have less than 100K in savings.

That means it is highly likely you are going to be responsible for your family members well-being and support throughout their retirement. You must be proactive in assessing where your parents are financially,  in order to protect your own financial well-being. The following are 5 questions every individual should have with family members before tragedy strikes and trust me from experience, you do not want to try to juggle the hardship of loss with the hardship of potential financial ruin.

Do you have a durable power of attorney?

The durable power of attorney is considered one of the most important personal legal documents for any older adult to have. Along with a healthcare proxy, it will give whomever your parent designates — whether it be you, one of your siblings, or someone else — the power to make financial and legal decisions (or, in the case of a healthcare proxy, to make medical decisions) if your parent is incapacitated.

Do you have a will and/or trust and if so when was the last time it was updated?

Many people never take another look at their insurance policies or investment account beneficiary designations after they sign the initial papers, but both should be reviewed every year. Beneficiary designations — who will receive the proceeds from an account if the policy or account holder dies — can be affected by any change in family circumstance, like the birth of a new child, a death, or a divorce. If they do not have a will in place, you will be subject to long a most likely painful arbitration proceedings, in order for the court to assess and distribute your family members assets.

Do you have long term care?

72% of all elderly individuals will need some form of long term care in their lifetime. Even if your parent is in good health today, they likely need some type of long-term care eventually — and the costs are staggering. A year in a nursing home costs more than $68,000 on average in Washington State.

Have you spoke with an advisor?

Although most adults are fiercely private about their finances and want to maintain their independence, it’s important in case of an emergency that you know how to contact your parent’s attorney, financial advisor, accountant, and insurance agent. At the same time, as your parent ages, you can keep an eye on whether their financial and legal advisers are scrupulous, objective, and well-versed in elder financial issues, with no vested interest in selling specific products.

Where is all this stuff?

If your parent has a stroke or heart attack, the last thing you’re going to want to worry about is what their Social Security number is, what health insurance they has, or whether the mortgage has been paid. That’s why it’s important to sit down with them before a crisis hits and find out what kind of bill-paying system is in place, what insurance they have, and where all his important papers are located.

Have you ever heard the expression,- “We may be through with the past, but the past isn’t through with us.” This statement is taking a new meaning with the cost of Health care for retirement. 92% of individuals surveyed in a USA Today poll stated they had no idea of what health care will cost when they retire. It is the GIANT Elephant in the room and no one is talking about it. It’s not enough to just save for a comfortable lifestyle in your golden years. You have to take into consideration the cost of how to keep yourself healthy.

A 65-year-old couple retiring this year will need $255,000 to pay for medical care throughout retirement, according to an estimate released last month with US News. Calculation takes into account the premiums, deductibles, and coinsurance associated with Medicare Parts A, B, and D and some services excluded by Medicare. The estimate does not include over-the-counter medications, most dental services, and long-term care. It is assumed that retirees will not have employer-provided retiree health insurance and that the couple will live until the average life expectancy of 17 more years for men and 20 years for women.

Adjusted for cost inflation, an individual at the age of 25 today who retires in 2051 at age 65 will see a retirement health care cost of more than 750,000. Oh yes, your reading that correctly. If you are like me then you will have a mild panic attack, eat some leftover Halloween candy, and try to find some sort of sanity in all this mess.

What can you do?

• Stay Healthy!

You must be proactive in keeping yourself healthy. If you smoke, quit! If you eat high fat foods, lower your caloric intake! If you do not exorcise, start walking 30 min a day! This will be the deciding factor if your health insurance cost is manageable or out of control.

• Look at Long Term Care

One of the greatest retirement medical expense is the cost of in-home care. With the rise of the boomers moving into retirement, so will the cost of elderly care. Protect yourself or face financial ruin in your retirement.

• Talk with a Financial Adviser and Start Your Plan

Let an adviser assist you in making a retirement plan for yourself and loved ones. Then take the plan and start today.

It is likely that you are aware of the problems of Social Security being overtaxed by large numbers of people entering retirement and the increasing longevity of those people – often called the baby boomer retirement “bubble.” If policy-makers foresee problems for Social Security caused by this bubble, then issues for Medicare and Medicaid are full scale disasters. Some data suggest that the unfunded liability of Social Security is $9 billion while the unfunded liability for Medicare is more than three times that amount – projected to be $30 billion.

To put the situation another way — the Medicare trustees predict that program costs will grow rapidly over the next 75 years. In 2000, Medicare consumed 2 percent of the Gross Domestic Product (GDP) in the United States. By 2030, Medicare will reach 7 percent of the nation’s GDP, and 14 percent 2080. This is a staggering percentage of the nation’s budget and is unsustainable.

It is not known how the United States government will fund these programs but it is very likely that benefits will be lowered. Or, perhaps the overall structure of healthcare will change completely.

You must start making a plan today to tackle your rising health care cost. You are indirectly relying on either the government or your family to solve this financial shortfalls. No one wants to pass the financial burden onto their family, and no one wants to rely on the government to give them adequate health coverage when they need it. So what do you do?

Contact your financial planner today! No, not next week, today! Pick up your phone and start dialing. If you do not have a Financial Planner, contact us and we will set you up with a great CFP in your area.