If you own a home and/or have a family please read..

[Yooformula]

As most of you know, a serious issue arouse with me in November that will last a LONG time. I learned that if you have a house, MAKE SURE you have a disability policy for your mortgage and vehicles. Dont just assume its there because its not! It isnt usually offered because loans get sold so often that outside brokers are the best choice for holding these policies. In my case, $150 a month extra would have paid me out $50k a year tax free for my mortgage and bills. Disability isnt always a way out as we learned from my job as they committed fraud to deny me and fired me while still in surgery. When the poo hits the fan, it sucks to know that you cant pay your mortgage for a long time. A disability policy on your car covers it completely while you are sick. I got lucky with my landmark loan that it covered my formula, 2nd mortgage and family loan AND the insurance payments. The unfortunate thing is my family vehicle will be taken because I thought it was covered and it wasnt.

If you have a family get LIFE INSURANCE!!! My wife and I bought policies several years ago and I actually increased mine last year....HOLY SHIT was that a good deal! It really doesnt cost much to give your entire family peace of mind in case of the worst which almost happened to me. Getting it sooner and not waiting was a good thing for us as I will NEVER be able to change my policy or get another policy and also health insurance now due to my condition. For those that think they know....stop right there. I had lawyers confirm all of this for me so dont talk out of your ass. In fact when they reviewed my life insurance policy they were very impressed with the contract and amount and it really didnt cost us that much. I used to think it was pointless money that a salesman is trying to get out of you but seeing that I was 1 more blackout away from a coma or worse, turned out to be a very smart decision.

This is really like a public service announcement for those with young families and just dont know about the little things like we didnt. I will lose my car in less than a month and my house in 6 months and could have been entirely avoidable with just a few calls if I had known.

I was a normal person just like anyone else here so dont think this shit or ANYTHING else bad cant happen to anyone here God forbid. A race accident, idiot driver or a tumor is all it takes.

[Yeehaw]

yoo that really sucks sorry to hear bout that one

[Reverend Cooper]

very good info. and post.

[Breecher_7]

Good info.

Is the car going up for sale locally?

[Holeshot]

Life insurance has saved my ass a few times. Being able to borrow off it or even withdraw has help me and the Mrs a couple of times when health issues arose. Yoo is right. Protect the ones you love and get insurance. Its worth the investment.

[Waver]

Exactally! This is somthing to think about when that afflac or whom ever comes in to your work to offer you somthing like this....I didnt have it when I was in the hospital. I got damned lucky when I went in that I had just received that govt stimulis check, as well as enough money in the bank to cover it (and that is including the two weeks severence pay I got when I was let go in the hospital). Like I said I was lucky.....You never know when shit like that will happen to you, and I think the events of last year proved that. First I go in to have my colin removed to preven colin cancer and I was in there for almost 2 months, and then Yoo's Tumor.......makes you think.

[SSmike1]

THANKS YOOSOF!
thanks for being honest and Sharing that!
most of us do not want to think about, " what if "
but, what if will happen to ALL of us, sooner or later!

THANKS

[Yooformula]

Good info.

Is the car going up for sale locally?

lol. the Formula isnt going anywhere yet. Thats the only one covered by disability. The minivan is being taken back by Chrysler as we were going to finance it remainder but now cant. That and the kind words I had for them 2 days ago got some balls rolling not in my favor:rolf

[Yooformula]

Life insurance has saved my ass a few times. Being able to borrow off it or even withdraw has help me and the Mrs a couple of times when health issues arose. Yoo is right. Protect the ones you love and get insurance. Its worth the investment.

Good point! I wish my policy is one I could draw off of but I cant, would have been nice too. But then again worse case scenario my ENTIRE family would have been taken care of;)

[73Dustr]

Sorry to hear about that. Very good post because it is very true. I know a lot of us have a tendency to think that "that will never happen to me or my family". Unfortunately, it does happen and can be a real eye opener. My family wen through all of this with my younger brother.

[1320PNY]

I emailed Dan Kulak today about insurance. I guess I needed a little push to do something (Thanks Yoo). I read your post and I thought it was time to do something to make sure the wife is taken care of when I'm gone or down. Dan is a guy I know who had all sorts of back issues and was a mason. He then move to home inspection due to his condition. Now the housing market is crap and he decided to move into insurance. I feel like he will take care of me because he has lived this through as well.

dkulak@americanrepublic.com

[lilws6]

Can't you sell the van out right and use the money? rather than loose the car and the money?

[Yooformula]

it was a lease that was going to be financed but with no income to make either payments the vehicle is gone. this applies to any vehicle that you are making payments on. you either buy at purchase or sometimes you can purchase it from an outside provider. disability insurance covers your payments thats the point. TRUST me I have turned every stone already.

[Prince Valiant]

...or get another policy and also health insurance now due to my condition. For those that think they know....stop right there. I had lawyers confirm all of this for me so dont talk out of your ass. So then what reason are you not eligible for HIRSP (http://healthinsurance.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=healthinsurance&cdn=health&tm=66&f=00&su=p736.8.336.ip_&tt=2&bt=1&bts=1&zu=http%3A//www.hirsp.org/)?

It seems to me you fit every criteria...the only thing I see that qualifies as any "catch" is that you won't receive coverage for 6 months on your pre-existing condition. Otherwise, I don't see how you don't qualify.

It's basically a collaborative effort by insurance companies and state to provide insurance for individuals with high medical risk/pre-existing conditions that'll surely result in termination or preemption of private-only coverage.

Plus, there are some companies that as a benefit offer insurance with NO pre-existing condition clauses....I should know, as I work for one. Perhaps, when you are ready to return to work, look for a position within Wheaton Franciscan Hospitals...as the coverage they extend, as promised, had NO pre-existing clauses. This worked out great for my wife who has a condition that would bar her from many insurances related to that condition.

Also, there are some policies that might allow you to enter an agreement in which you receive coverage, but not for said pre-existing condition...which is a risk, sure...but perhaps one worth taking.

Yoo...if you have any questions about this, PLEASE PM me...I KNOW and have the resources for the insurance here in Wisconsin. We could probably find something/anything for you (as stated, HIRSP should certainly cover you immediately, and in 6 months, even your condition). I'm no lawyer, nor an agent, true...but I know health coverage.

[Yooformula]

nice link. I dont qualify for employer insurance and I do qualify for limited badgercare or cobra BUT only for 1 year. The only part I qualify for is part B. Any other coverage that I may come in contact with will have a 6 month to 1 year wait due to the fact the tumor is classified brain cancer and its high risk of return. The lapse will pretty much leave any condition during that time not coverable than and in the future. Dood shoot me a call if you know someone directly. We had to sign up for Cobra and badgercare just to make sure radiation is covered this month. future insurance plans will take time to set up sso I would rather start looking now if its possible.

[Al]

Yoo,

I've seen so many of my friends end up in the same situation as you. You seemed to fair this better than the people I know. Most of them ended up being denied coverage by their employers or insurance. In the end, they lost their houses, cars, and pretty much their way of living; not to mention most ended up getting divorced.

One of my very close friends needed multiple surgeries over an extended time period. The problem was that his coverage dropped between proceedures and he also lost his job. He still needs to finish the surgeries, but he is now homeless. He also cannot function normally as-is. I do not know what to say other than he is fvked.

Some of you might not be aware of this, but serious health issues and medical bill fallout are the #1 causes of bankruptcy in the US. I don't want to hijack your thread, but this is the reason for my political perspective on healthcare. It struck close to many of us this time.

[scottie K]

,, Yoo...

We were just talking about this the other day.... I said the same thing happened ,,,, Normaly they have a paper that you sign declining it.. guess what .... low and be hold .... i was also horn shwaggeled.... we all have to watch what were signing and so forth

[Yooformula]

Scotty, we tore through our entire mortgage packet and cant find anywhere where we might have declined disability. Even our real estate agent called a lawyer friend of his to help out. but like you said, you have to know what you are signing and know WHAT to look for.

Al, dood that really sucks and is painful to read about your friend.I can tell ya from first hand experience when you start seeing that stuff coming a mile away and you know the potential outcome its scary.

Btw, Al, some of the healthcare providers that would be mandated wouldnt allow you to seek out ANY surgeon(group surgeon or physician only). I would rather go through bankruptcy knowing the best surgeon in the nation worked on my brain giving me the best chance to live than just having any "board eligible" surgeon mess with my shit. Which is what I was scheduled to have by the hospital...

[GinoRin]

This is a worthwhile post, and I just thought I would throw in my two cents. Not many of you on here know my profession - I'm an independent financial planner and the VP and Investment Counsel of a Registered Investment Advisory firm in Brookfield. I work with Attorneys, CPAs, Estate Plans, Investments, and Life Insurance everyday.

Let me tell you - you don't look at life insurance the same way after you have to pay a death claim. No one likes thinking about an untimely demise, but the reality of the situation is that it’s a necessary evil for most. Yoo is fortunate to have had some sort of individual coverage. Obviously he probably wishes he has more now than he would have a year ago. Life insurance is a buyer beware product, it comes in over a thousand different forms from over 400 different life insurance companies, and it’s very easy to get confused/twisted into purchasing something you originally didn't intend to have. Disability insurance is no different. After a few of the comments in this post, I thought I would just give you guys some general rules of thumb for these types of things. Please keep in mind these are generalizations, everyone's situation is unique, but here's some VERY BASIC rules to follow. Financial Planning 101 if you will.

1. Make sure you at least have a basic will or estate plan. (you don't need to have a lawyer draft up a basic will, Wisconsin has some boiler-plate forms that will work until you need something more involved.)

2. Make sure your will/estate documents are in the proper hands of the designated executor(s) incase something did ever happen, and those documents need to be exercised.

3. This is important - most people miss this one- Make SURE you have updated medical powers of attorney on file for both husband and wife. Keep these with your will. Once again, WI has some boiler plate forms you can use.

4. As far as life insurance is concerned, I could write a book, but here’s a few things to look out for.

a. If you have a spouse or dependents or both, you probably need it in one form or another.

b. DO NOT purchase the majority of your life insurance through your employer. This is usually a very inexpensive way to get coverage, but if you are no longer employed by that company, 99% of the time you are no longer insured! You MUST have individual life insurance that stays with YOU, not your employer.

c. Do your homework! Consult a professional before you purchase any type of life or disability insurance. If you go to an agent representing only one or a few companies, you may be paying more than you need to, and also may end up with an inferior product. All companies underwrite differently and costs/terms will very GREATLY from company to company for existing medical conditions. It’s not always a price thing, either. It could have to do with the language of renewability, or different riders that exist within a specific company or series of policies. If you own a policy, open it up and try reading your contract; you’ll see what I mean. It’s best to use an insurance broker who works with many life insurance companies, and any reputable broker will know what company or companies will give you the best shot at coverage for your situation. Usually, brokers who specialize in life insurance do not do much property (home or auto) insurance. Life insurance is a little different animal, and usually(not always) companies who package life, auto, health, or homeowners insurance together are proprietary, and their terms and conditions are sometimes not as favorable for their life insurance products.

d. DO NOT… I repeat… DO NOT buy life or disability insurance through your mortgage company or auto loan finance company. This is usually a ripoff. The miniscule amount of coverage you get for the premium you pay is almost always excessive. For instance, a few years ago I had a client’s daughter in my office that was paying $30 a month on her auto loan for the equivalent of $18,000 of life insurance over the next five years. That same $30 a month would have bought her $250,000 worth of level term life insurance for the next 20 years through a number of different insurers. That’s not even a really bad case, just about average. I am not an expert on disability insurance, but I do know that similar rules apply. Individual coverage through a reputable insurer will be a much greater value than doing it through a finance company.

e. What type of insurance is best for you? That really depends. Consult an advisor/planner (NOT an agency employee). For most people looking for basic coverage at the lowest possible cost, level term or Return of Premium (ROP) term is usually the hot ticket. Please understand all term insurance is not created equal, and term insurance is not the only type of life insurance available. There are many hybrid term and permanent cash-value type policies available for different situations. There is no such thing as a good or bad form of life insurance, just the wrong/improper use of them for your individual situation. Again, consult a disinterested third party who knows what they’re talking about. Unfortunately I have seen some agents will have differing opinions on what is the best fit dependant upon their commission. A little common sense usually goes a long way.

f. How much insurance do you need? As a general rule, take 8-12x your annual income, plus debt. Subtract from that amount your liquid savings/401k/IRA’s. Example: Someone with a $150,000 mortgage making $50,000 a year will need about $650,000 of insurance, less any liquid assets. If they have $75k between their savings, 401k and IRA’s, they’ll most likely need somewhere around $500-600k of life insurance to cover their family. Of course this is a rough figure, you need to account for *many* other obstacles such as college funding for children, spousal income replacement, number and age of dependents, ect.


5. Last but not least: Make sure your beneficiaries and insured(s) are up to date! Part of my financial planning process for my clients is a basic insurance review to make sure these seemingly insignificant details are covered. 99% of the time, people just know they have something, and they usually don’t know how it works, or what features it has. Last week I ran into a family that only had one of their three children listed on their policy, and it had been that way for seven years! Whoops. When you do purchase life insurance, make sure you go back through your policy and READ it to make sure these details are covered. If you don’t feel comfortable with the language, it usually only costs a few hundred bux to hire a competent planner for a couple hours to help you through.

I hope that helps you guys out!

P.S. If you guys have individual questions, please do not post here. Yoo is trying to get a good message across, I just wanted to clarfy it a bit. You can email me direct at gino@sbs401k.com

[jon_we4]

This is a good thread, since I got married I've been meaning to sit down and work out my life insurance setup. I know I get a little bit thru work, as does my wife - but I have some bottom barrel policy as well to get a discount with my home/auto insurance. Really need to look into it now when age and health are on my side.

Since this turned into financial planning 101, and I don't mean to threadjack.... but with mentioning wills and POA/medical paperwork I do have a question. Depending on assests, is it a good idea to start up a 'living trust'? If everything is owned by the trust I wouldn't have to think about updating a will and it seems like a streamlined way of doing it. I keep thinking of my Grandfather who died at 69 and had not updated his will for a long time - so much changed and things should have been handled differently when he passed.

[GinoRin]

with mentioning wills and POA/medical paperwork I do have a question. Depending on assests, is it a good idea to start up a 'living trust'?

Jon,
Since I know a bit about your situation, you should take interest in a revocable living trust. You can amend as you see fit, usually once every 10 years or so. It adds a few steps to titling/reselling vehicles, but most people with assets need one down the road. Most all of our retired clients have them, it makes TOD a much easier thing to deal with. Most people dont get them until they're nearing retirement, but it's something you could do a lot earlier if you wanted the extra organization a trust would offer.

G

[jon_we4]

Thnx. To keep the public service announcement rolling ....

Is there a good website where you can really read more about the different types of life insurance? What bugs me the most is there is so much I do know about each option.

[GinoRin]

I found this after a quick search on Google, the info is pretty accurate for general terms. Just understand there are sooooo many different products on the market, none will do exactly what this information states without riders, provisions, or clauses. Do some homework on the web and then consult an expert to help you pinpoint a product that does the things you specifically want.

http://www.investorguide.com/igu-article-348-life-insurance-types-of-policies-and-provisions.html

[Yooformula]

Nice post Gino thanks!! When we were in the hospital and shortly before surgery Deb was able to update our power of attorney and our basic will was updated as well. My life insurance policy is way too big to let it limp considering how close to death I was.

point "d." is so true! I have heard that numerous times especially knowing how often some mortgage loans get sold.

I might have to give you a call to review to make sure our stuff in the correct order.

[GinoRin]

I've had a few people call/email/PM asking where the state forms I referenced are located, so here they are. Follow through the link below, click on "printing the forms from the internet" then "I have read and understand this statement" and the next page will have all the advance directive boiler plate forms for you to choose from.

http://dhs.wisconsin.gov/forms/AdvDirectives/index.htm#Print


I hope this helps!