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Your Guide to Making Informed Choices During Medicare Annual Election

November 7, 2023

The Medicare Annual Election Period (AEP) from October 15 to December 7 is a crucial time for those who rely on Medicare for their healthcare coverage. During this period, you can change your Medicare plans, ensuring that your coverage aligns with your evolving healthcare needs. 


What is the Medicare Annual Election Period (AEP)?


The AEP is a window of opportunity for Medicare beneficiaries to review and modify their coverage. This period specifically applies to Medicare Part C (Medicare Advantage) and Medicare Part D (prescription drug plans). It doesn't pertain to Original Medicare (Parts A and B).


What Changes Can You Make?


Enroll in a Medicare Advantage Plan. If you currently have Original Medicare and wish to switch to a Medicare Advantage Plan, the AEP is your chance. Medicare Advantage Plans often offer additional benefits, such as prescription drug coverage and dental or vision care.


Switch Between Medicare Advantage Plans. If you're enrolled in a Medicare Advantage Plan but want to explore different options, you can change your plan during the AEP. Compare plans to find one that better suits your healthcare needs and budget.


Review and Modify Your Prescription Drug Plan. If enrolled in a Medicare Part D prescription drug plan, the AEP allows you to evaluate your plan's coverage, premiums, and formulary. You can switch to a different Part D plan if it better addresses your medication requirements.


Return to Original Medicare. If you're currently enrolled in a Medicare Advantage Plan and want to go back to Original Medicare, the AEP provides the opportunity to make this change.


Make Plan Changes Based on Your Health Needs. Your health status can change yearly. During the AEP, you can select a plan that better covers your anticipated healthcare needs for the upcoming year.


What Should You Do Next?


Review Your Current Coverage. Start by examining your current Medicare plan(s). Pay attention to your healthcare expenses, including premiums, deductibles, and co-payments. Determine whether your current plan still meets your needs and preferences.


Explore Your Options. Research the available Medicare Advantage Plans and Medicare Part D prescription drug plans in your area. Consider factors like costs, coverage, network of healthcare providers, and additional benefits.


Use Online Resources. The Medicare Plan Finder on the official Medicare website can help you compare different plans. It provides detailed information about premiums, drug coverage, and quality ratings.


Consult an Advisor. If you're uncertain about the best course of action, seek guidance from a Medicare advisor or counselor. They can provide personalized assistance in selecting the most suitable plan.


Enroll or Make Changes. Once you've decided on your plan adjustments, take action before the AEP deadline of December 7th. This ensures your new coverage takes effect on January 1st of the following year.


The Medicare Annual Election Period is a valuable opportunity to fine-tune your healthcare coverage. By understanding the changes you can make and taking the appropriate steps, you can ensure that your Medicare plans align with your evolving health needs. Contact us if you need further assistance at this time, and we can help to guide this critical financial decision. 

Using Life Insurance to Protect Your Business: Key Strategies for Business Owners

February 11, 2025
As a business owner, safeguarding your enterprise against unforeseen events is crucial for long-term success. Life insurance offers several strategies to protect your business, ensure continuity, and provide financial stability during challenging times. Two primary methods are buy-sell agreements and key person insurance. Buy-Sell Agreements A buy-sell agreement is a legally binding contract that outlines the procedure for transferring ownership if an owner departs due to death, disability, or retirement. Funding this agreement with life insurance ensures a smooth transition and financial security for the remaining owners and the departing owner's beneficiaries. Types of Buy-Sell Agreements Cross-Purchase Agreement: Each owner purchases a life insurance policy on the other owners. Upon an owner's death, the surviving owners use the policy proceeds to buy the deceased owner's share. This method is often suitable for businesses with a few owners. Entity Purchase Agreement: The business itself owns life insurance policies on each owner. If an owner passes away, the business uses the proceeds to buy back the deceased owner's share, redistributing it among the remaining owners. This approach is typically preferred for businesses with multiple owners. Key Person Insurance Key person insurance is a policy that a business takes out on essential employees whose loss could significantly impact operations. The business owns the policy, pays the premiums, and is the beneficiary. If a key person dies or becomes disabled, the policy proceeds can be used to: Cover the costs of finding and training a replacement. Offset lost revenue resulting from the key person's absence. Reassure clients, creditors, and investors of the business's stability. This strategy is vital for businesses where certain individuals are integral to success, such as top executives, lead developers, or primary sales personnel. Additional Strategies Beyond buy-sell agreements and key person insurance, consider these life insurance strategies: Collateral Assignment: Use a life insurance policy as collateral for business loans. In the event of the owner's death, the lender is paid from the policy proceeds, preventing financial strain on the business. Executive Bonus Plans: Provide key employees with life insurance policies as part of their compensation package. This not only offers them personal financial protection but also serves as an incentive for retention. Deferred Compensation Plans: Promise to pay key employees a certain amount at retirement, funded through life insurance policies. This ensures the business can meet its obligations without affecting cash flow. Implementing life insurance strategies is essential for business owners aiming to protect their enterprises from unforeseen events. Work with us to explore your life insurance options and we can help your business remain resilient and continue to thrive.

What Happens If You Outlive Your Term Life Insurance?

February 1, 2025
Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years. If you outlive your term policy, the coverage ends, and no death benefit is paid to your beneficiaries. As you approach the end of your term, it's essential to evaluate your current financial situation and consider options to maintain life insurance coverage if needed. Options to Consider Annual Renewable Term: Some term policies offer an option to renew annually after the initial term expires. While this allows you to extend coverage without a medical exam, premiums typically increase each year based on your age, making it a potentially costly option over time. PROGRESSIVE.COM Policy Conversion: Term-to-Permanent Conversion: Many term policies include a conversion feature, allowing you to convert your term policy into a permanent life insurance policy, such as whole or universal life, without undergoing a medical examination. This option can provide lifelong coverage and build cash value, but premiums will be higher than those of the original term policy. NEWYORKLIFE.COM Purchasing a New Policy New Term Policy: Applying for a new term life insurance policy can be an option, especially if you're still in good health. However, premiums will be higher due to increased age, and you may need to undergo a medical exam. Permanent Life Insurance: Alternatively, you might consider purchasing a permanent life insurance policy, which provides lifelong coverage and accumulates cash value. This option is generally more expensive but offers additional benefits. Exploring Alternative Coverage: Final Expense Insurance: Designed to cover end-of-life expenses, such as funeral costs and medical bills, final expense insurance offers a smaller death benefit with more affordable premiums and may not require a medical exam. Guaranteed Universal Life Insurance: This type of policy provides coverage for a specified age (e.g., up to age 90 or 100) with lower premiums compared to whole life insurance, focusing primarily on the death benefit without significant cash value accumulation. Take Action Now As your term life insurance policy nears its expiration, assess your current financial needs and health status to determine the most suitable course of action. Consulting with an insurance professional can help you navigate your options and select the best solution to ensure continued financial protection for your loved ones.
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