Personal Cyber Coverage Explained

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Today’s society has grown increasingly digital in nature, with many individuals leveraging smart devices within their daily lives. Although this technology can offer various benefits, it can also make individuals more susceptible to cybercrime. Such incidents have steadily become more common and costly. In fact, the FBI reported receiving more than 800,000 complaints regarding cybercrimes in the past year, totaling $4.2 billion in overall expenses.

These findings emphasize how critical it is for individuals to safeguard themselves and their families from cyber events. That’s where personal cyber insurance can help. Typically offered as an endorsement to a homeowners policy, this form of coverage can provide financial protection for losses resulting from a range of cyber incidents-including fraud, identity theft and data breaches. Keep reading to learn more about the growing need for this coverage and the key types of personal cyber insurance available.

The Growing Need for Personal Cyber Coverage

Technology has continued to advance in the past decade, playing a larger role in how individuals live, work, and entertain. A variety of online platforms have given individuals the ability to stream content, communicate with others, shop for goods and make electronic payments at the click of a button. Additionally, smart devices have allowed individuals to upgrade a number of household appliances (e.g., thermostats, fridges, doorbells, and security systems). Altogether, this technology has contributed to the growing adoption of the Internet of Things (IoT), which refers to any devices that connect or send information to the internet. Looking ahead, insurance experts anticipate that the average household will possess as many as 50 IoT-capable gadgets by 2023.

While these devices certainly offer several advantages, increased technology utilization also comes with greater cyber vulnerabilities. As technology advances, so do the tactics of cybercriminals-resulting in more frequent and severe cyber events. Individuals may think that they are ok shopping online as they may have installed what they believe to be the best vpn for firefox or they might have added extra security measures to their home network. However, cyber crimes can still occur even with these measures in place. Here are some of the most common cyber incident scenarios that individuals and their families may encounter:

  • Bank fraud-This form of fraud entails a cybercriminal gaining unauthorized access to an individual’s electronic bank credentials, allowing them to transfer and steal funds from the individual’s account. According to a recent report from NortonLifeLock, cybercriminals steal over $170 billion each year via bank fraud.
  • Identity theft-Such theft refers to a cybercriminal accessing an individual’s personal information (e.g., Social Security number or credit card number) and using it to commit fraud or other crimes under the individual’s name. The Federal Trade Commission confirmed that nearly 1.4 million complaints related to identity theft were filed last year, up 113% from the previous year.
  • Data loss-In the event that an individual’s device gets infected with a virus or other malicious software (also called malware), they face the risk of losing any valuable data stored on that device. Viruses and malware can come from numerous avenues, including harmful websites, dangerous email attachments or infected USB flash drives-thus making data loss a major threat.
  • Extortion-Ransomware incidents have contributed to a substantial rise in cyber extortion over the last few years. These incidents stem from a cybercriminal using malware to compromise an individual’s device (and any data stored on it) and demanding a ransom payment in exchange for restoration. In some cases, the cybercriminal may even threaten to publicly share the individual’s data if they don’t receive payment. According to cybersecurity experts, ransomware incidents have increased 500% since 2018, with the average ransom payment totaling over $300,000.
  • Cyberbullying-While social media platforms allow individuals to connect with others, these platforms can also, unfortunately, be used for negative purposes, such as cyberbullying. This type of bullying includes refers to harassment, threats or other intimidating language that occurs via electronic means. Although anyone can be a victim of cyberbullying, kids and teenagers are particularly vulnerable. The latest data from Pew Research revealed that 59% of teens have experienced cyberbullying.

Considering these risks, it’s clear that individuals can’t afford to ignore cybercrime. In addition to implementing effective cybersecurity practices (e.g., using trusted devices, browsing secure websites, conducting software updates, backing up data, creating unique passwords and knowing how to identify potential scams), having adequate insurance in place is crucial. By investing in personal cyber coverage, individuals can properly protect themselves and their families amid cyber-related losses.

Types of Personal Cyber Coverage

Personal cyber insurance varies between insurers. However, there are a number of key coverage offerings available:

  • Online fraud coverage-This coverage can offer reimbursement for financial losses that may result from the various types of online fraud, such as phishing scams, identity theft or unauthorized banking.
  • Online shopping coverage-Such coverage can help pay for the cost of any goods that were purchased online but arrived damaged upon delivery or didn’t get delivered whatsoever.
  • Identity recovery coverage-This coverage can provide reimbursement for the expenses associated with recovering from an identity theft incident (e.g., rectifying records with banks or other authorities, hiring a consultant to assist with credit restoration and taking unpaid time off from work to recover from the incident).
  • Data restoration coverage-Such coverage can help compensate the cost of having an IT specialist recover a device and restore any data stored on it if the device gets infected with a virus or malware.
  • Data breach coverage-This coverage can offer reimbursement for the necessary notification and recovery services in the event that private, nonbusiness data entrusted to the policyholder becomes lost, stolen or published.
  • Cyber extortion coverage-Such coverage can help pay for the expenses associated with responding to a ransomware event (e.g., consulting an IT specialist to mitigate the extortion attempt and restoring compromised devices or data).
  • Cyberbullying coverage-This coverage can provide reimbursement for the costs that come with recovering from a cyberbullying incident resulting in unlawful harassment or defamation of character. These costs may include psychological counseling services, legal advice, temporary relocation expenses and social media monitoring software. This coverage can also offer protection if an individual or their child faces engages in cyberbullying and faces subsequent legal action from the victim.

Because personal cyber insurance is still a relatively new type of coverage, it is usually only available as an add-on to an existing homeowners policy. Further, certain insurers only provide this coverage as an endorsement for high-value homeowners policies. Yet, some insurers may offer standalone personal cyber coverage. Moving forward, insurance experts expect the personal cyber coverage market to continue growing, allowing for more widely available policy options. In any case, individuals should consult trusted insurance professionals to discuss their specific coverage capabilities.

For further risk management resources and insurance solutions, contact us today.

 

Surprise Billing: Know Your Benefits

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Understand Your Rights Against Surprise Medical Bills

The No Surprises Act protects people covered under group and individual health plans from receiving surprise medical bills when they receive most emergency services, non-emergency services from out-of-network providers at in-network facilities and services from out-of-network air ambulance service providers. It also establishes an independent dispute resolution process for payment disputes between plans and providers, and provides new dispute resolution opportunities for uninsured and self-pay individuals when they receive a medical bill that is substantially greater than the good faith estimate they get from the provider.

Starting in 2022, there are new protections that prevent surprise medical bills. If you have private health insurance, these new protections ban the most common types of surprise bills. If you’re uninsured or you decide not to use your health insurance for a service, under these protections, you can often get a good faith estimate of the cost of your care up front before your visit. If you disagree with your bill, you may be able to dispute the charges. Here’s what you need to know about your new rights.

What Are Surprise Medical Bills?

Before the No Surprises Act, if you had health insurance and received care from an out-of-network provider or an out-of-network facility, even unknowingly, your health plan may not have covered the entire out-of-network cost. This could have left you with higher costs than if you got care from an in-network provider or facility. In addition to any out-of-network cost-sharing you might have owed, the out-of-network provider or facility could bill you for the difference between the billed charge and the amount your health plan paid, unless banned by state law. This is called “balance billing.” An unexpected balance bill from an out-of-network provider is also called a surprise medical bill.

People with Medicare and Medicaid already enjoy these protections and are not at risk for surprise billing.

What Are the New Protections if I Have Health Insurance?

If you get health coverage through your employer, a Health Insurance Marketplace or an individual health insurance plan you purchase directly from an insurance company, these new rules will:

  • Ban surprise bills for most emergency services, even if you get them out-of-network and without approval beforehand (prior authorization).
  • Ban out-of-network cost-sharing (such as out-of-network coinsurance or copayments) for most emergency and some non-emergency services. You can’t be charged more than in-network cost-sharing for these services.
  • Ban out-of-network charges and balance bills for certain additional services (such as anesthesiology or radiology) furnished by out-of-network providers as part of a patient’s visit to an in-network facility.
  • Require that health care providers and facilities give you an easy-to-understand notice explaining the applicable billing protections, who to contact if you have concerns that a provider or facility has violated the protections and that patient consent is required to waive billing protections (i.e., you must receive notice of and consent to being balance billed by an out-of-network provider).

What if I Don’t Have Health Insurance or Choose to Pay for Care on My Own Without Using My Health Insurance (Also Known as “Self-Paying”)?

If you don’t have insurance or you self-pay for care, in most cases, these new rules make sure you can get a good faith estimate of how much your care will cost before you receive it.

What if I’m Charged More Than My Good Faith Estimate?

For services provided in 2022, you can dispute a medical bill if your final charges are at least $400 higher than your good faith estimate and you file your dispute claim within 120 days of the date on your bill.

What if I Don’t Have Insurance From an Employer, a Marketplace or an Individual Plan? Do These New Protections Apply to Me?

Some health insurance coverage programs already have protections against surprise medical bills. If you have coverage through Medicare, Medicaid or TRICARE, or receive care through the Indian Health Services or Veterans Health Administration, you don’t need to worry because you’re already protected against surprise medical bills from providers and facilities that participate in these programs.

What if My State Has a Surprise Billing Law?

The No Surprises Act supplements state surprise billing laws; it does not supplant them. The No Surprises Act instead creates a “floor” for consumer protections against surprise bills from out-of-network providers and related higher cost-sharing responsibility for patients. So as a general matter, as long as a state’s surprise billing law provides at least the same level of consumer protections against surprise bills and higher cost-sharing as does the No Surprises Act and its implementing regulations, the state law generally will apply.

For example, if your state operates its own patient-provider dispute resolution process that determines appropriate payment rates for self-pay consumers, and Health and Human Services (HHS) has determined that the state’s process meets or exceeds the minimum requirements under the federal patient-provider dispute resolution process, then HHS will defer to the state process and would not accept such disputes into the federal process.

As another example, if your state has an All-Payer Model Agreement or another state law that determines payment amounts to out-of-network providers and facilities for a service, the All-Payer Model Agreement or other state law will generally determine your cost-sharing amount and the out-of-network payment rate.

Where Can I Learn More?

Still have questions? Visit CMS.gov/nosurprises or reach out to human resources.

 

Source: Centers for Medicare and Medicaid Services

What Happens If I Miss Open Enrollment?

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An open enrollment period is a short period of time when you can enroll in or make changes to your employee benefits elections. Possible changes include adding or dropping coverage, adding or removing dependents, or enrolling in benefits for the first time.

Open enrollment is your opportunity to take advantage of important benefits, such as health, vision, dental and life insurance, a health savings account (HSA), and a retirement plan.

The decisions you make during the open enrollment period can have a significant impact on your life and your finances, so it is important to weigh your options carefully and to make your decisions during the open enrollment period.

Failure to comply with your employer’s open enrollment deadline could result in a loss of coverage for you and your loved ones. Missing this deadline also means that you could be unable to make changes or enroll in benefits until the next open enrollment period.

One exception to this rule is if you experience a life-changing qualifying event that would trigger a special enrollment period (SEP). Events such as getting married or divorced, having or adopting children, or losing eligibility for other health coverage can trigger special enrollment rights. In some cases, you can also qualify for special enrollment if you become eligible for a premium assistance subsidy under Medicaid or a state Children’s Health Insurance Program (CHIP).

If you think you might qualify for a SEP, contact your HR manager. If you have not recently experienced a life event, but have missed the open enrollment deadline, you should also contact your HR manager to find out whether you have any other options.

Options for Obtaining Health Coverage

If you miss your employer’s open enrollment deadline, there are a number of ways in which you can try to obtain health insurance; however, the availability of some options will depend on their enrollment deadlines.

  • Spousal Benefits—If your spouse receives benefits from his or her employer and the open enrollment period is still open (or coming up), you may be able to enroll in coverage through your spouse’s plan.
  • Young Adult Benefits Under a Parent’s Plan—If you are younger than 26 years old, you may be able to be added as a dependent on your parent’s plan. If your parent’s plan offers dependent coverage, this option should be available to all children under 26, regardless of whether or not you are employed, married, have children or are a student. However, this option is likely available only if your parent’s work-based plan offers coverage for family members and if the open enrollment period for that plan has not yet closed.
  • State Insurance Marketplace—Depending on the timing, you can consider buying health insurance from the Health Insurance Exchange Marketplace. Marketplace coverage is only available for purchase during an annual open enrollment period, unless you qualify for a SEP. (See the SEP section of www.healthcare.gov to check). Similar to employer-based plans, a SEP can be triggered if you experience a qualifying life event.

Leaving Home

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As fall approaches, many will be sending their child off to live at school. When a child moves out of the home, it can be both exciting and heartbreaking. As one phase of life is ending, another wonderful one begins. However, the danger lurking within the parents’ home and auto insurance, as well as within certain privacy laws, can often be overlooked. Both home and auto policies have limitations that can leave a family vulnerable in terms of its financial wellbeing,  and privacy laws can leave parents in the dark about their child’s physical wellbeing.

If a child is moving out to live with friends, they have, in effect, set up their own household. If a lease is present, it is clear that there is now a separate residence, even if the child is renting a unit owned by the parent.

If a child is in college, they are typically considered part of the household. However, if during college they rent an apartment outside of the dorm system, then they have created a separate household (for insurance purposes).

Addressing these issues will help secure the financial wellbeing and peace of mind for both the parents and the child.

Renters Insurance

While a person at this stage may not own much in the way of personal property, they still have much to lose. Along with personal property such as clothing and furniture, a Renters Policy (HO4) also provides liability protection. For example:

  • While attending a cookout, a Frisbee flies off-course and lands at a person’s feet.  They pick it up to toss it back to the thrower and when they do, the Frisbee misses and slashes someone’s eye. The injured party or their insurance company (health or disability) may come after the person who threw the Frisbee for compensation.
  • While in an apartment, the renter starts a fire which causes significant damage. The roommates, neighbors and landlord may pursue the individual for compensation.

In addition, many leases hold the renter liable and not the landlord. Therefore, if a guest visiting the individual slips, falls, and is injured, for example, the renter can be the responsible party.

For those starting out on a bright career path, they may live in a state where future wages can be garnished. If this is the case, without renters insurance, the liabilities described above could cancel out much of the financial benefits of the bright career.

If parents or a trust financially support the renter, the injured parties might try to get to the parental or trust assets. Renters coverage will place a barrier between the parental assets that can hopefully pay for any liabilities and if there is a trust in play, the trust should be named as an Additional Insured on the renters policy.

Auto Insurance

In Massachusetts, once a child is no longer a resident of the parents’ home, they are no longer covered by the parents’ policy while driving vehicles not owned by their parents.  If the child drives a rental car or a friend’s car, their financial wellbeing is at risk because they have no personal protection.  In this situation, a Named Non-Owned Auto policy in the name of the child would be appropriate. A Named Non-Owned Auto policy is simply an auto policy without an auto listed and therefore has no Comprehensive and Collision coverage. If the child is driving a car provided by the parents, an alternative would be to retitle the car in the child’s name.

If the child is using a parent’s auto for work purposes such as delivery or Uber, it is critical to report this to the insurance carrier. Unreported commercial use can reduce the limits of protection to Massachusetts Statutory limits such as reducing Bodily Injury of Others from $250,000/$250,000 to $20,000/$40,000.

If the child takes the car out of the state, that must be reported as well to preserve the Comprehensive coverage for glass, theft, and vandalism.

 Privacy

Once a person turns eighteen, a parent loses the right to know personal information about their child without the child’s permission. If a child is hospitalized, the hospital is not allowed to reach out to the parents or even share the child’s status with the parents. When a child turns eighteen, parents may wish to discuss with their attorney about obtaining a Health Care Proxy and a Durable Power of Attorney.

Summary

When a child is making their way out of their parents’ home, it can be a dangerous period for the financial wellbeing of both the parents and the child. Insurance agents (and a lawyer), the parents, and the individual leaving home should work closely with one another to make sure everyone is protected appropriately.

Left unaddressed, the financial and emotional ramifications of inadequate coverage and planning can be devastating. Education and communication go a long way in this area, and the good news is that the solutions are not expensive.

 

 

Summer Home Maintenance Tips

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Summer is finally here, and it’s a perfect time to catch up on home maintenance tasks, both inside and outside of the house. Putting in a little elbow grease now goes a long way toward future house upkeep–making that well-deserved rest even more enjoyable.

These summer maintenance tips will help keep your home looking great for all seasons:

  • Wash your windows. Wash all interior and exterior windows to let in light and maximize visibility.
  • Inspect your home for faulty lights or electrical connections. If necessary, hire a professional electrician (comparable to Electrician in Atlanta, GA) to repair the electrical issues you’re experiencing.
  • Check your windows for leaks. Re-caulk the seals on all doors and windows. This practice can increase your home’s energy efficiency.
  • Clean your dryer vent and exhaust duct. Remove any clogged lint and dust from your dryer vent. Doing so can help prevent house fires.
  • Power wash any siding or brick. Get rid of any dust, dirt, or mold that makes your home’s exterior look dirty.
  • Repair and repaint your home’s exterior features. Fix any chipped, cracked, or faded exterior paint by hiring companies like Rhino Shield to protect your home from further damage from the elements.
  • Clean your outdoor grill. Thoroughly clean your grill to make it ready for summer barbecuing.
  • Get your roof inspected. Make sure your roof lasts as long as possible by having it checked for loose shingles or other damages and when you need roof repairs consider thoroughly checking through any required repairs with a qualified professional.
  • Care for your greenery. Inspect your plants and landscaping. Get rid of weeds, overgrowth, or dead plants. Freshen up areas by adding new plants where wanted.
  • Clean your drains and downspouts. Clean any debris from your home’s downspouts. Check if there is any need for drain servicing for which you would need to get help from a plumbing company like Valley Service (https://valleyservice.net/fargo-services/plumbing).
  • Inspect your deck or porch. Check outdoor spaces for any necessary upkeep-such as applying sealant or stain, or fixing loose boards.

Seasonal checkups are important for every house’s upkeep. Contact Cleary Insurance, Inc. for more home maintenance information.

Regulations Issued to Implement Ban on Surprise Billing

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On July 1, 2021, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (Departments) jointly released interim final rules outlining certain requirements related to surprise billing. These rules implement certain provisions of the No Surprises Act, which is a ban on surprise medical bills effective in 2022 that was enacted as part of the Consolidated Appropriations Act, 2021, signed into law in late 2020.

Surprise Medical Bills
Surprise medical bills occur when patients unexpectedly receive care from out-of-network health care providers. For example, a patient may go to an in-network hospital for treatment, such as surgery or emergency care, but an out-of-network doctor may be involved in the patient’s care. Patients often cannot determine the network status of these providers during treatment in order to avoid the additional charges. In many cases, the patient is not involved in the choice of provider at all.

Overview of the Interim Final Rules
These interim final rules protect participants, beneficiaries and enrollees in group health plans and group and individual health insurance coverage from surprise medical bills when they receive emergency services, non-emergency services from nonparticipating providers at participating facilities, and air ambulance services from nonparticipating providers of air ambulance services, under certain circumstances. Under these provisions, providers will have to work with the group health plan or health insurance issuer to determine the appropriate amount to be paid by the plan or issuer. Hospitals and healthcare facilities could turn towards outsourcing their medical billing processes to firms such as Gryphon Healthcare to ensure compliance to these new regulations, as external agencies can often focus solely on the billing processes thereby eliminating any human errors or inaccurate billing.

The interim final rules generally apply to group health plans and health insurance issuers offering group or individual health insurance coverage. However, certain provisions apply to emergency departments, health care providers and facilities, and providers of air ambulance services related to the protections against surprise billing.

Cyber Risks and Liabilities

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Ransomware Considerations for Board Members

Organizations of all sizes and sectors are facing increased cybersecurity risks. Specifically, ransomware attacks-which leverage malware to compromise a victim’s data and demand them to make a large payment to recover it-have quickly become a rising threat across industry lines. In fact, recent research found that these types of attacks have surged by 150% in the past year alone, with the average amount paid by victims jumping by over 300%. Such attacks have also become more sophisticated over the years as cybercriminals have developed a wide range of different ransomware-use techniques.

In light of these advancing cyber concerns, it’s important for board members to be actively involved in developing and promoting effective workplace cybersecurity measures, especially as it pertains to ransomware attacks. By involving senior leadership in such initiatives, organizations can foster a culture of cybersecurity awareness and bolster their preparedness against cyber threats. The company can utilize data management and security solutions (probably provided by a company similar to Cyral) to safeguard sensitive data and incorporate additional measures for the data excess. For instance, they could limit the data access based on a few attributes such as employee’s device security, job role, salary, and location along with assessing the data sensitivity. The whole process can ensure that the employee could not neglect the cybersecurity measures.

In addition, financial institutions such as banks and investment firms can suffer heavy losses as a result of cyber-attacks. Therefore, it might be necessary for them to have proper online security solutions (you can visit https://www.radware.com/solutions/financial/ for more information) that can prevent such attacks. That said, here are five key questions that board members should discuss to help their organizations stay resilient against ransomware attacks.

How can our organization better detect ransomware threats?

Before a ransomware attack can occur, a cybercriminal has to gain access to their target’s network, systems or data. Once a cybercriminal gains this access, an extended length of time-also known as “dwell time”-typically passes before the ransomware is deployed and the attack actually begins.

With this in mind, organizations that are able to detect potential ransomware threats during dwell time rather than at the onset of an attack can stop such incidents before they even start. The following measures can help board members ensure the earliest possible detection of ransomware concerns within their organizations:

  • Keep updated records of all workplace technology to understand where ransomware threats could arise.
  • Equip all workplace technology with antivirus and malware detection software. Update this software regularly.
  • Have critical technology, systems and data consistently monitored for suspicious activity. Make sure the employees in charge of these monitoring procedures are properly trained to do so.
  • Establish thresholds for when employees should notify senior leadership of ransomware threats.
  • Provide all employees with clear ransomware reporting protocols.

What can our organization do to minimize the damages in the event of a ransomware attack?

When ransomware attacks occur, it’s vital for impacted organizations to do everything they can to limit the damages. In particular, board members should prioritize these procedures:

  • Keep data encrypted. This practice will make it significantly harder for cybercriminals to compromise data during a ransomware attack.
  • Restrict employee access to workplace technology, systems and data. Only allow access on an as-needed basis.
  • Require employees to use proper credentials and multifactor authentication when accessing workplace technology, systems and data.
  • Consider keeping different workplace networks separated to prevent cybercriminals from gaining full access after attacking a single network.

Does our organization have an effective cyber incident response plan in place?

Cyber incident response plans are one of the best tools for helping organizations react appropriately and mitigate losses amid cyberattacks. Board members should work closely with workplace leaders across departments to develop sufficient cyber incident response plans for their organizations. Generally speaking, an effective cyber incident response plan should outline:

  • Who is part of the cyber incident response team (e.g., board members, department leaders, IT professionals, legal experts and HR specialists)
  • What roles and responsibilities each member of the cyber incident response team must uphold during an attack
  • What the organization’s key functions are and how these operations will continue throughout an attack
  • How any critical workplace decisions will be made during an attack
  • When and how stakeholders should be informed of an attack (e.g., employees, customers, shareholders and suppliers)
  • What federal, state and local regulations the organization must follow when responding to an attack (e.g., incident reporting protocols)
  • When and how the organization should seek assistance from additional parties to help recover from an attack (e.g., law enforcement and insurance professionals)
  • Take note that cyber incident response plans should be evaluated and updated regularly to ensure effectiveness. Various activities can be implemented to assess cyber incident response plans-including tabletop exercises and penetration testing.

Does our organization’s cyber incident response plan adequately address ransomware attacks?

Cyber incident response plans should address a wide range of possible attack circumstances. That being said, it’s important for board members to ensure that ransomware attack scenarios are properly accounted for within their cyber incident response plans.

Specifically, board members must determine whether or not their organizations will make ransom payments to cybercriminals-particularly when the compromised data is sensitive in nature or critical to operations. Keep in mind that cybersecurity experts typically advise against complying with ransom demands, seeing as there is a chance that cybercriminals could take the ransom money and not recover the compromised data or leverage it in future attacks.

Further, board members must ensure their organizations are prepared for the lengthy recovery process that often accompanies ransomware attacks. In some cases, it can take several weeks or months to recover compromised data. During this time, board members must have plans for keeping their organizations functional and minimizing reputational damages.

Are all data backup protocols within our organization sufficient in protecting against ransomware threats?

Backing up important data with the help of reputable firms that offer managed IT services in Lincoln (or elsewhere) can help organizations maintain access to key files and information during cyber incidents. Poor data backup protocols can easily be exploited by cybercriminals, subsequently resulting in ransomware attacks. As a result, board members should ensure their organizations follow these data backup security procedures:

  • Conduct data backups on a routine schedule. Consider backing up critical data more frequently.
  • Store data backups offline and in a separate location from other workplace systems and networks.
  • Only allow trusted and qualified employees to perform data backups.

For more risk management guidance, contact us today.

5 Steps to a Midyear Financial Review

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Summer is the perfect time for barbeques, but it’s also good opportunity to take the pulse of your saving and spending plan with a midyear financial checkup.

With the first part of the year in the rearview mirror, a quick look at your monthly budget can yield valuable insight into whether you’re on track to meet your 2021 savings goals. It can also help identify areas of waste and provide motivation to set new goals.

  1. Check your retirement contributions. Savers should, at minimum, contribute enough to collect any employer match to which they are entitled, he said. Not doing so leaves free money on the table. Ideally, you should aim to max out your tax-favored retirement plans, such as a 401(k) or IRA, which not only helps to build your future nest egg, but also potentially yields a valuable current-year tax deduction. The annual contribution limit for 401(k) plans is $19,500. The total annual contribution limit for Traditional and Roth IRAs this year is $6,000. (That limit is $26,000 and $7,000 for participants age 50 and older.)
  2. Tackle debt.  Next, review your debt. If your debt level going up, you need to understand what’s happening with your financial situation and correct your spending pattern. Some debt, including student loans and home mortgages, are common and necessary, but credit card balances with double digit interest rates can cripple your budget.
  3. How’s your emergency fund? The mid-year check-up is also an opportune time to be sure your rainy day fund is up to snuff.  Most financial professionals recommend having three to six month’s worth of living expenses set aside in a liquid account, such as a money market fund or savings account.
  4. Monitor your spending.  If your debt level has been stagnant since January or you’re finding it tough to meet your savings goals, put the next lazy day to good use and get your budget under control. The National Foundation for Credit Counseling suggests consumers, track their spending for at least 30 days to get a better sense of where their money is going.  Look for opportunities to liberate cash flow by halting memberships in clubs you don’t use, slashing your cable bill, and swapping one trip per year for a staycation. Most financial professionals recommend saving 10 to 15 percent of your annual salary for retirement. That’s easiest done by “paying yourself first” through automated deferrals at work.
  5. Tackle your taxes.  Most of us only pay attention to taxes in December, when it’s too late to implement many of the most effective tax-saving strategies. If you meet with your tax professional now, however, you can potentially still maximize deductions. Specifically, financial experts and tax professionals routinely suggest taxpayers check their withholding to be sure they’re on track to pay what they owe and nothing more. Look too, for opportunities to maximize charitable deductions,

The year is still young for those who are serious about getting their financial house in order. By examining your finances or working closely with a financial professional, you can potentially use the remaining months of the year to maximize your tax deductions, eliminate debt, and develop a saving and spending plan that will help you meet your financial goals.

Saving for Retirement: Are you Ready?

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Presented by: Matt Clayson

It’s Never Too Late to Get Started

Will I have enough money to retire? It’s a common question and one that has increased in magnitude lately – especially for people in their 40s and 50s.

Indeed, a MassMutual study in 2018 found that the greatest worry for those on the edge of retirement was not having enough money to enjoy themselves, and this was without even considering whether they might need to find money so that they are able to get help with their everyday tasks from something like this in-home senior care in North Nashville service.

This can generate a feeling of frustration. You’ve been working hard for over 20 years. You’ve been saving as much as you can. When the market crashes, your savings disappear. It’s not too late to bounce back. Even if you’re 55 years old and decide that today is the day to begin saving in earnest, you still have time to build up income for retirement.

On your mark, set your priorities, go

Determine what you want out of your retirement…what are your priorities? Sit down with a pen and paper and start a list. Empower yourself to make the important decisions today that will set tomorrow in motion:

  • When do you want to retire?
  • Where do you want to live?
  • What kind of lifestyle do you want to lead?
  • Consider your current lifestyle. Can you cut back to save more for retirement?
  • How much extra money would you require to support your retirement lifestyle?
  • Would you be needing to consider anything like Home Care services in the future?
  • Have you thought about your medical expenses during your golden time?

These are just some of the questions you should be asking – and answering – yourself. So take the first step and start making some decisions. All of this necessitates a great deal of planning, so if you’re going to move into active adult housing once you retire, start looking for them as soon as possible.

Save more, spend less

The most obvious advice still applies: save more, spend less. But there’s more to it than that.

Create a budget to help you stay on track – and actually stick to it. Decide where you can trim your expenses. What can you live without now so you can have more later?

If your budget isn’t working, you may want to consider downsizing to a smaller home or a less expensive location to help maintain your standard of living. This may be a difficult exercise, but remember you’re trying to catch up. Additionally, you can get in touch with senior home facilities (similar to the ones providing Senior Home Care Services in Naples, FL) if you want to lead a life wherein you would not have many decisions to make or hassles to endure.

Speaking of catching up, if you will be age 50 or older at the end of the calendar year, you can take advantage of catch-up contribution options to accelerate the growth of your retirement accounts. The bottom line: make the maximum contributions possible to your employer’s retirement plan, including any available catch-up options.

Think outside the box

There are certain financial products and savings instruments that you may not be familiar with, but that may help you get more out of your money. Many people opt to consult a financial professional to help become aware of options and lay out a plan.

Delay retirement (The beach will wait for you)

People are working longer than ever before. Delaying your retirement by three years from age 62 to 65 can boost your assets significantly – thanks to the combination of making extra contributions to your employer-sponsored retirement plan, not taking withdrawals and allowing your funds more time to grow.

In addition, if you anticipate receiving Social Security retirement benefits, it’s important to understand that monthly benefits differ substantially based on when you start receiving them and the filing option you choose. For every year you postpone collecting benefits beyond your full retirement age (typically 66 or 67), you can earn an annual delayed retirement credit of up to 8 percent.

On the flip side, filing for benefits before your full retirement age can permanently reduce your monthly income. Benefits will decrease based on how early you retire..

The bottom line is that there are real steps and strategies you can take today to help secure your future. It’s never too early or too late to evaluate your current retirement savings plan – or create a new one.

This Old House, Needs Some Updates

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Staring at the same four walls for the past year may have triggered you to start thinking about making some changes. Many of us have taken the opportunity to tackle home projects this past year. In 2020, Farmers Insurance surveyed homeowners and found that 62% of those polled are planning renovation similar to window replacement with the help of contractors like Five Seasons (who are known to offer door and window replacement in Denver and nearby areas). However, of those planning renovations, only 28% said they understand their homeowner’s policy. If you have already completed or are thinking about making changes, here are a few insurance considerations.

  1. Additions
    • Your homeowners’ insurance covers the house as it is right now. Your home’s value can rise above the limits of your insurance by expanding its square footage and adding a garage or pool. In this way, when you make such improvements, you’ll be able to negotiate a better price with home buyers who advertise themselves claiming – we buy houses in kennesaw or elsewhere.
  2. Improvements
    • The most common, and costly, improvements are made when updating bathrooms or kitchens. Upgraded finishes such as countertops, cabinets, and fixtures may leave a gap in coverage. This is especially important for condo unit owners. As a unit owner, you may be responsible for any improvements made after the purchase, such as painting the walls (do this yourself or hire a professional by browsing for a “house painter near me“), repairing the roof and foundation, and installing new fixtures, among other things.
  3. Faulty Work
    • Your policy most likely wont supply coverage for faulty work. For instance, if you update your electrical system and down the road it leads to a fire, there may be coverage for damage caused by the fire, but the cost to correct and replace the electrical components would be out of pocket.
    • When choosing a contractor, always request to see their certificate of insurance. Contractors should have coverage for liability, property, and workers compensation. In the event they do not have adequate insurance, you may want to consider a different contractor. If a contractor causes damage to your home, their insurance should be the primary option for recovery.

In summary, its important to ensure you have adequate coverage in place and are clear on the risks that come with home improvement. If you are planning or recently completed a renovation, please contact us to ensure your new investment is adequately protected!