Save with a Health Savings Account

April 27, 2021

A Health Savings Account (HSA) is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs.

An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s tax return whether or not the individual itemizes deductions. Employer contributions aren’t included in taxable income and distributions from an HSA that are used to pay qualified medical expenses aren’t taxed.

High Deductible Health Plan

One way to manage your health care expenses is by enrolling in a High Deductible Health Plan (HDHP) in combination with opening an HSA. While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have an HDHP—generally a health plan that only covers preventive services before the deductible. For plan year 2021, the minimum deductible is $1,400 for an individual and $2,800 for a family. (The term “minimum deductible” refers to the amount you pay for health care items and services before your plan starts to pay.) Maximum out-of-pocket costs (the most you’d have to pay if you need more health care items and services) are $7,000 for an individual and $14,000 for a family.

Contribution Limits in 2021

For calendar year 2021, the annual limitation on deductions for an individual with self-only coverage under an HDHP is $3,600. The annual limitation on deductions for an individual with family coverage under an HDHP is $7,200. The IRS announces annually the HSA contribution limit that applies each calendar year. You can review IRS Publication 969 each year to determine the current limit. 

HSA funds roll over year to year if you don’t spend them. An HSA may earn interest or other earnings, which are not taxable.

Some health insurance companies offer HSAs for their HDHPs. Check with your company to see if you are eligible. You also can open an HSA through some banks and other financial institutions. If you are interested in enrolling for healthcare coverage through the U.S. Department of Health and Human Services’ Health Insurance Marketplace®, you can check to see if specific plans are “HSA-eligible.”

It’s also important to note that there is an aggregate limit that applies to both your own contributions as well as any money your employer puts into your account. This is different from 401(k) rules, where an employer’s matching funds do not affect your ability to contribute to your account. If your employer puts $2,000 into your HSA and you have self-only coverage, you would be allowed to contribute only $1,600 before reaching the 2021 contribution limit. 

Catch-up Contributions

HSA account holders who are 55 and older are entitled to make an additional catch-up contribution valued at $1,000 on top of contribution caps. Because of the HSA catch-up contribution rules, in 2021 the self-only coverage limit is $4,600 and the family coverage limit is $8,200  

Catch-up contributions are intended to help older Americans who may incur outsized medical expenses, or who may not have saved enough for a secure retirement and want to boost their contributions to tax-advantaged accounts as they near the end of their careers. 

Older Americans may want to make catch-up contributions because healthcare costs tend to rise with age and because an HSA can be a valuable type of retirement savings account. HSAs work as a retirement savings plan because money can be withdrawn penalty-free for any purpose, not just medical expenses, after age 65. Once an HSA account holder turns 65, distributions not used for medical costs are taxed at their ordinary income tax rate, the same as distributions from a 401(k) or traditional IRA.                                  

HSA Funds and Taxes

Because HSA contributions can be made with pre-tax funds, you can deduct the amount you’ve contributed from your taxable income in the year you make the contribution.

The fact that HSA contributions are tax deductible means any money you contribute reduces the income you’re taxed on, which saves you money on the taxes you pay to the IRS. It also means your take-home pay declines by a smaller amount than what you actually contributed. 

For example, if you have $50,000 in taxable income and make a $3,600 deductible contribution to an HSA, you will be taxed on only $46,400 in income due to your contribution.

The specific amount you save due to your HSA contribution will depend both on how large your contribution is and on your tax rate. Those who are taxed at a higher rate and those who make larger contributions will realize more savings. 

Contributions are tax-deductible up to HSA annual limits, and money can be withdrawn tax-free to cover qualifying medical expenses.

Money in an HSA can be invested and can be withdrawn for any purpose after age 65 without penalty, although you’ll be taxed at your ordinary income tax rate for distributions not used for covered medical costs.

HSA Distributions

The IRS provides a comprehensive list of medical and dental expenses that qualify in Publication 502 and include the following categories:

• Prescription medications
• Nursing services
• Long-term care services
• Dental care
• Eye care, including eye exams, glasses, and contact lenses
• Psychiatric care
• Surgical expenses
• Fertility treatments
• Chiropractic care
• Medical equipment
• Hearing aids

Under the CARES Act, which passed in March 2020, you can now use your HSA funds to pay for a variety of over-the-counter (OTC) items without a prescription. The rules are retroactive to Jan. 1, 2020, so if you purchased these items with non-HSA funds, you can still submit your receipts for reimbursement. 

Telemedicine or remote healthcare can be covered by HSA plans at no charge, even if you haven’t met your deductible, through the end of 2021.

The following items also have been made HSA-eligible by the 2020 CARES Act:

• Acid reducers
• Acne treatment
• Allergy and sinus medications
• Anti-allergy medications
• Breathing strips
• Cough, cold, and flu medications
• Eye drops
• Feminine hygiene products
• Heartburn medications
• Insect repellant and anti-itch creams
• Laxatives
• Lip treatments for cold and canker sores
• Medicated shampoos and soaps
• Nasal sprays
• Pain relievers
• Skin creams and ointments
• Sleep aids
• Sunscreen and OTC remedies to treat the effects of sun exposure

The Bottom Line on HSAs

HSAs give you the opportunity to set aside money so you can pay for medical care with pre-tax dollars. But because you can invest and grow these funds as well as hold them in cash, HSAs offer much more than just a way to save on medical care. If used as a long-term investment vehicle, your HSA account could help you save on healthcare costs in retirement while reducing your tax bill in the meantime.

InsureYouKnow.org

During each calendar year, you can keep track of all your HSA contributions, expenses, and tax-accounting details at insureyouknow.org.

 

Go Wherever Your WiFi Leads You

April 15, 2021

Although you may be fully-vaccinated against COVID-19, the Centers for Disease Control and Prevention advises you “to keep taking precautions—like wearing a mask, staying 6 feet apart from others, and avoiding crowds and poorly ventilated spaces—in public places until we know more.” So, you may decide to wait to travel in person this spring and summer. You also may find that many tourist destinations are not currently open to world travelers. With a Wi-Fi connection, you can stay home and virtually visit museums, galleries, college and university campuses, and many natural wonders of the world.

Museums and Galleries

Google Arts & Culture teamed up with more than 2,500 museums and galleries around the world to bring virtual tours and online exhibits of some of the most famous collections where you can gain knowledge about art, history, and science. Here is a sampling of some of the most popular ones.

British Museum, London, allows visitors to see the Great Court and discover the ancient Rosetta Stone and Egyptian mummies that are physically located in London.

Guggenheim Museum, New York, has online exhibits dedicated to promoting the understanding and appreciation of art, primarily of the modern and contemporary periods.

National Gallery of Art, Washington, D.C., features two online exhibits through Google. The first is an exhibit of American fashion from 1740 to 1895, including many renderings of clothes from the Colonial and Revolutionary eras. The second is a collection of works from Dutch Baroque painter Johannes Vermeer.

Musée d’Orsay, Paris, lets tourists virtually walk through this popular gallery that houses famous works from world-renowned artists, including Van Gogh, Monet, Degas, Cézanne, and Gauguin who worked and lived between 1848 and 1914.

National Museum of Modern and Contemporary Art, Seoul, is one of Korea’s most popular museums that Google captured in photographs of six floors of contemporary art from Korea and all over the globe.

Pergamon Museum, Berlin, one of Germany’s largest museums, is home to ancient artifacts including the Ishtar Gate of Babylon and the Pergamon Altar.

Rijksmuseum, Amsterdam, contains masterworks from the Dutch Golden Age, including works from Vermeer and Rembrandt.

Van Gogh Museum, Amsterdam, provides a virtual tour of the largest collection of artworks by Vincent van Gogh, including more than 200 paintings, 500 drawings, and 750 personal letters.

The J. Paul Getty Museum, Los Angeles, houses artworks from the 8th to the 21^st Centuries, showcased against a backdrop of dramatic architecture, tranquil gardens, and breathtaking views of Los Angeles.

Uffizi Gallery, Florence, houses the art collection of one of Florence, Italy’s most famous families, the de’Medicis.

MASP, São Paulo, is a nonprofit and Brazil’s first modern museum. Artworks placed on clear perspex frames make it seem like the artwork is hovering in midair.

National Museum of Anthropology, Mexico City, is dedicated to the archaeology and history of Mexico’s pre-Hispanic heritage.

Campus Visits to Colleges and Universities

Traditionally, high school students and their parents visit college and university campuses to narrow higher education choices during spring and summer months. Instead of setting out on a coast to coast road trip, why not virtually visit campuses from the comfort of your own home?

Princeton Review provides an expansive table of colleges and universities with virtual alternatives to on-campus tours sorted by state. If you don’t see a school your college-bound student is interested in, check directly on the school’s website.

Natural Wonders and World Heritage Sites

There are many natural wonders, captivating landscapes, and stunning UNESCO World Heritage Sites that you can visit with virtual reality without boarding a plane! 

Acropolis, Greece, provides a tour of the most prominent monuments—the Parthenon, the Propylaia, the Erechtheion, and the Temple of Athena Nike.

Machu Pichu, Peru lets you go on a virtual walking tour of the famous Incan site.

Mt Everest, Nepal allows you to feel like you are on an adventure of a lifetime when you reach the peak of the tallest mountain in the world.

Son Doong Cave, Vietnam, is the world’s largest cave where you can navigate through the Vietnamese jungle before descending into this massive cave system.

Yosemite National Park, California, offers a virtual tour of captivating places to visit including Half Dome Summit, Glacier Point, and Indian Rock Arch.

Grand Canyon, Arizona, presents a bird’s eye view of the most beautiful spots in the Grand Canyon and a guided tour with a park ranger. 

Giant’s Causeway, Northern Ireland, prompts you to take in the beautiful views of this unique landscape from your computer screen as you listen to the waves crashing below. 

Perito Moreno Glacier, Argentina, allows you to zoom in to get up close and personal to the glacier or zoom out to see the surrounding beautiful landscape.

Sossusvlei in Namibia provides a panoramic view of beautiful red sand dunes in the southern part or the Namib Desert.

The Dolomites, Italy, lets you glide the mountain range from an eagle’s point of view.

Great Barrier Reef, Australia, takes you on a 360-degree dive where you’ll feel like you’re swimming with fish, spotting sea turtles, and diving in and out of coral reefs on this unique virtual diving experience. 

Antarctica, from the Falkland Islands all the way to the South Pole–this virtual tour will guide you through this remote part of the world. 

VENT (Victor Emanuel Nature Tours), based in Austin, Texas, offers an exciting array of tours and destinations via webinars that encompass a wealth of birding and natural history related topics, all from an educational, instructional, or informational standpoint.

InsureYouKnow.org

After you’ve seen the cultural, educational, and natural wonders of the world virtually, keep a record of all the places you visit and narrow your list to sites you’d like to visit in person. You also can make checklists with features your college-bound students like and don’t like for every college you visit virtually. You may be enticed to make reservations for trips in the near future and you may consider taking out travel insurance to provide ease of mind during uncertain times. You can stash all of these lists securely at insureyouknow.org so you’ll know where they’ll be when you’re ready to travel safely and comfortably in person.

When Phishing Isn’t Fun

March 30, 2021

Do you ever receive email, text messages, or phone calls that look like they’re from a reputable company requesting personal information? You may be the target of scammers who use tricky methods in attempting to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could gain access to your email, bank, or other accounts. Scammers launch thousands of phishing attacks every day—and they’re often successful. The FBI’s Internet Crime Complaint Center reported that people lost $57 million to phishing schemes in one year.

Recognize Phishing Messages

The following signs from the Federal Trade Commission (FTC) will help you recognize a phishing email, text message, or phone call:

• Phishing emails, text messages, or phone calls may look like they’re from a company you know or trust. They may look like they’re from a bank, a credit card company, a social networking site, an online payment website or app, or an online store.

• Phishing emails, text messages or phone calls often tell a story to trick you into clicking on a link, opening an attachment, or providing personal information. They may say they’ve noticed some suspicious activity or log-in attempts, claim there’s a problem with your account or your payment information, say you must confirm some personal information, include a fake invoice, want you to click on a link to make a payment, say you’re eligible to register for a government refund, or offer a coupon for free merchandise.

Know the Most Common Forms of Phishing

• Emails, text messages, or phone calls claiming to be from a legitimate retailer, shipper, bank, organization or government agency. 
• Requests for charitable donations. (The FTC has a helpful Charity Checklist to review before you submit online donations.)
• IRS and tax-related emails, text messages, or phone calls. 
• Requests to verify health insurance identification numbers and account sign-in information.

Protect Yourself from Phishing Attacks

Your email spam filters may keep many phishing emails out of your inbox. But scammers are always trying to outsmart spam filters, so it’s a good idea to add extra layers of protection. Here are some steps you can take to protect yourself from phishing attacks.

• Protect your computer by using security software.
• Protect your mobile phone by setting software to update automatically.
• Protect your accounts by using multi-factor authentication.
• Protect your data by backing it up.
• Check the email address of the sender. Make sure the address displayed when you roll your cursor over the email address matches the address displayed. Most legitimate businesses have a simple, standardized email domain, so an email from a bank might come from johndoe@nationalbank.com, whereas a scammer’s address is less likely to follow this standard.
• Check for forged links. Even if a link contains a name you recognize, it doesn’t mean it links to the real organization. Roll your cursor over the link and see if it matches what appears in the email. If it doesn’t, do not click on the link.
• Don’t trust logos and corporate colors. Just because an email contains company logos and corporate colors doesn’t mean it’s a legitimate email.
• Beware of attachments. Don’t click on an email attachment unless you know the sender.
• Don’t proceed if you don’t see “https.” Secure websites for personal information begin with “https”—the “s” stands for secure.
• Requests for your personal information are warning signs. 
• If it sounds too good to be true, it probably is. 

Act if You Suspect a Phishing Attack

If you get an email, a text message, or a phone call that asks you to click on a link, open an attachment, or answer personal questions, ask yourself: “Do I have an account with the company or know the person who contacted me?” If the answer is “No,” it could be a phishing scam and you should  report the message to the FTC and then delete it. If the answer is “Yes,” contact the company using a phone number or website you know is real, not the information in the email. Opening attachments and links can install harmful malware.

Forward phishing emails to the FTC at. spam@uce.gov– or to Anti-Phishing Working Group at  reportphishing@apwg.org. This nonprofit organization includes internet service providers, security vendors, financial institutions and law enforcement agencies. Your report is most effective when you include the full email header, but most email programs hide this information. You also can report the phishing attack online to the FTC at ftc.gov/complaint. You should also forward phishing emails you receive to the organization impersonated in the email.

Recover if You Respond to a Phishing Request

If you think a scammer has your information, like your Social Security, credit card, or bank account number, go to  IdentityTheft.gov on the FTC website. There you’ll see the specific steps to take based on the information that you lost.

If you think you clicked on a link or opened an attachment that downloaded harmful software, update your computer’s security software. Then run a scan.

Don’t rely on caller ID or the incoming phone number listed to authenticate a caller’s identity. Scammers can use “spoofing,” where a caller causes a fake phone number to appear. This allows scammers to make it look like they’re calling from a legitimate business in an effort to steal your personal, financial, or health information.

Telephone scams are often carried out by individuals claiming to be from a trusted source, such as your insurance company or a government agency.

Email and internet scams are increasingly common and may target your personal or financial information or seek to compromise your devices.

InsuranceYouKnow.Org

Be suspicious of all emails, text messages, and phone calls you receive from unknown (and even some supposedly known) sources. Although you may want to delete and forget about any phishing activity that compromises your personal and financial information, you can keep a record of any security software purchases, lists of your passwords and corresponding online sites, and any reports about phishing activities you submit to authorities at insureyouknow.org.

Before You Turn the Key to Your New Home

March 15, 2021

Are you in the market for a new home?

Before buying a home, you’ll need a down payment, the closing costs, and, if you are getting a loan from a mortgage lender, proof of homeowners insurance to protect the mortgage lender’s investment to cover the costs to repair or rebuild your home if it is damaged or destroyed by a fire, lightning, a tornado, theft, vandalism, or some other covered event.

When shopping for a homeowners policy, you are encouraged to get quotations from multiple insurance companies, including your current insurer from whom you may get a better deal. You should consider coverage for your house, your possessions, additional living expenses if you’re displaced, and legal concerns if a visitor is injured at your home. In this last scenario, you may be held responsible for related medical bills, legal costs, and potential court awards up to the maximum amount determined by your homeowners insurance policy.

Keep in mind, a typical homeowners policy does not include coverage for earthquakes or floods. Depending on the location of your home, your lender may require you to add riders for additional insurance coverage for natural disasters. If you have valuable possessions, including expensive jewelry, camera equipment, or a fine art collection that exceed the dollar limits of your homeowners policy, you may need to purchase extra coverage known as a Personal Articles Floater (PAF) for those items.

Provisions of a Homeowners Policy

Your homeowners insurance policy will have the following standard elements that define the costs the insurer will cover.

·      Damage to the Interior or Exterior of Your House

In the event of damage due to fire, hurricanes, lightning, vandalism, or other covered disasters, your insurer will compensate you so your house can be repaired or even completely rebuilt. As indicated above, destruction from floods or earthquakes, as well as poor home maintenance, are generally not covered and you may need separate riders if you want that type of protection. Freestanding garages, sheds or other structures on your property also may need to be covered separately using the same guidelines as for the main house. 

Clothing, furniture, appliances, and most of the other contents of your home are covered if they’re destroyed in an insured disaster.

·      Personal Liability for Damage or Injuries

Liability coverage protects you from lawsuits filed by others, including injuries experienced by visitors or caused by your pets. For example, if your dog attacks someone on or off your property, your insurer will cover medical expenses.                                                                                                   

·      Hotel or House Rental If Your Home Is Being Rebuilt or Repaired

If you need to vacate your home damaged by a covered event, a provision known as additional living expenses, will reimburse you for the rent, hotel room, restaurant meals, and other incidental costs you incur while waiting for your home to be repaired. Depending on the fine print of your policy, your expenses will be set by strict daily and total limits that you can expand if you’re willing to pay more in coverage. 

Different Types of Homeowners Insurance Coverage

There are essentially three levels of coverage.

·      Actual Cash Value

Actual cash value covers the cost of the house plus the value of your belongings after deducting depreciation (i.e., how much the items are currently worth, not how much you paid for them).

·      Replacement Cost

Replacement value policies cover the actual cash value of your home and possessions without the deduction for depreciation, so you would be able to repair or rebuild your home up to the original value.

·      Guaranteed (or extended) replacement cost/value

The most comprehensive, this inflation-buffer policy pays for whatever it costs to repair or rebuild your home—even if it’s more than your policy limit.

Comparison of Home Insurance Companies

When looking for an insurance carrier, consider the following tips.

·      Compare Statewide Costs and Insurers

When it comes to insurance, you want to make sure you are going with a provider that is legitimate and creditworthy. Your first step should be to visit your state’s Department of Insurance website to learn the rating for each home insurance company licensed to conduct business in your state, as well as any consumer complaints lodged against the insurance company. The site also should provide a typical average cost of home insurance in different counties and cities.

·      Review Each Company

Investigate home insurance companies you’re considering via their scores on the websites of the top credit agencies (such as A.M. Best, Moody’s, J.D. Power, Standard & Poor’s) and those of the National Association of Insurance Commissioners and Weiss Research. These sites track consumer complaints against the companies as well as general customer feedback, the processing of claims, and other data. In some instances, these websites also rate a home insurance company’s financial health to determine whether the company is able to pay out claims.

·      Look at Claims Response Data

Following a large loss, the burden of paying out-of-pocket to repair your home and waiting for reimbursement from your insurer could place you in a difficult financial position. A number of insurers are outsourcing core functions, including the handling of claims.

Before purchasing a policy, find out whether licensed adjusters or third-party call centers will be receiving and handling your claims calls. Look for a carrier with a proven track record of fair, timely settlements and make sure to understand your insurer’s stance on holdback provisions, which is when an insurance company holds back a portion of their payment until a homeowner can prove that they have started repairs.

·      Check on Current Policyholder Satisfaction

Ask any potential insurance agent for the company’s retention ratebased on the percentage of policyholders who renew each year. Many companies report retention rates between 80 percent and 90 percent. You can also find satisfaction information in annual reports, online reviews, and recommendations from friends and relatives you trust.

·      Get Multiple Quotations

Request quotations from multiple insurance companies, including any insurer with whom you already do business for insurance on your automobile, boat, or other property. As a loyal customer, you may be offered a better rate.

• Ask about Discounts for Seniors

Some companies provide a special discount for seniors or for people who work from home. The rationale is both these groups tend to be on-premises more often—leaving their houses less prone to burglary.

InsureYouKnow.org

After you’ve selected your new home, submitted your down payment and closing costs, and arranged for homeowners insurance, keep a record of all these transactions at InsureYouKnow.org. You’ll also be able to keep annual records of your property tax fees, homeowners insurance premiums, any claims you file, and corresponding payments to cover damages or thefts of your property.

The Long and Short of Disability Insurance

March 1, 2021

You may have never felt you needed to consider a disability insurance policy because you are young(ish), healthy, and don’t work in a business that exposes you to risky situations. Disability insurance is designed to cover a portion of your income if something happens to you like an injury or illness and you can’t work. Beginning in 2020, adverse effects of COVID-19 have been added to physical injuries, heart attacks, and cancer as major reasons to file claims for disability insurance.

COVID-19 symptoms can linger for months while the virus damages the lungs, heart, and brain, which increases the risk of long-term health problems. People who continue to experience symptoms after their initial recovery are described as “long haulers” and the condition has been called “post-COVID-19 syndrome” or “long COVID-19.”

Older people and people with many serious medical conditions are the most likely to experience lingering COVID-19 symptoms, but even young, otherwise healthy people can feel unwell for weeks to months after infection.

COVID-19 can make blood cells more likely to clump and form clots. Large clots can cause heart attacks and strokes, much of the heart damage caused by COVID-19 is believed to stem from very small clots that block tiny blood vessels in the heart muscle. Other parts of the body affected by blood clots include the lungs, legs, liver, and kidneys. COVID-19 also can weaken blood vessels and cause them to leak, which contributes to potentially long-lasting problems with the liver and kidneys.

People who have severe symptoms of COVID-19 often have to be treated in a hospital’s intensive care unit, with mechanical assistance such as ventilators to breathe. Simply surviving this experience can make a person more likely to later develop post-traumatic stress syndrome, depression, and anxiety.

Much is still unknown about how COVID-19 will affect people over time. Researchers recommend that doctors closely monitor people who have had COVID-19 to see how their organs are functioning after initial recovery.

Many large medical centers are opening specialized clinics to provide care for people who have persistent symptoms or related illnesses after they recover from COVID-19. Most people who have COVID-19 recover quickly. But the potentially long-lasting problems from COVID-19 make it even more important to reduce the spread of the disease by getting vaccinated, wearing masks, avoiding crowds, and frequently washing your hands.

Types of Disability Insurance

If you anticipate a need for disability insurance coverage or want to provide protection just in case an unforeseen injury or illness occurs, consider the two types of disability insurance: short term and long term. Both of them are designed to replace part of your regular income if you are unable to work. Even though they basically provide the same benefits, the following are differences and similarities for you to review.

Short-Term Disability Insurance (STDI)

• How much does it cover? About 60 to 70 percent of your salary.
• How long does it last? Usually 3 to 6 months, depending on the policy’s fine print.
• How much does it cost? About 1 to 3 percent of your annual income.
• How soon until you would receive your first payout? Around two weeks after your healthcare provider confirms your disability.
• Why would you get it? If your employer offers it at no cost to you.

Long-Term Disability Insurance (LTDI)

• How much does it cover? About 40 to 70 percent of your salary.
• How long does it last? Five years or longer if your disability continues.
• How much does it cost? About 1 to 3 percent of your annual income.
• How soon until you would receive your first payout? Usually around 3 to 6 months after your healthcare provider confirms your disability.
• Why would you get it? If you and dependents rely on your income and you don’t have sufficient savings to replace your regular salary long term.

You may be fortunate to have an employer who offers disability income protection insurance. If not, you can elect it during open enrollment or you may want to choose additional disability insurance to supplement what your employer provides. Ideally, you would have a three-month cash reserve to cover you before your payments go into effect. If not, the short-term disability protection, which typically starts after 14 days, would pay until the long-term disability is in place. It is important to understand how your policy defines disability which may not match your definition or need. Usually, workplace policies have a narrower definition of disability than private policies do. Depending upon your occupation, through a private policy you may be able to elect more favorable terms. Your financial advisor or life insurance agent can help you to find a policy that’s right for you.

In the United States, individuals can obtain disability insurance from the government through the Social Security Administration (SSA). To qualify for government-sponsored disability insurance, an applicant must prove that his disability is so severe that it prevents him from engaging in any type of meaningful work at all. SSA also requires applicants to demonstrate that their disability is expected to last for at least 12 months, or that it is expected to result in death.

You may find it helpful to consult an attorney when applying for a claim, regardless of your diagnosis. Qualifying for Social Security disability benefits is determined by your medical eligibility and how severely your condition affects your ability to work—an attorney can help explain the process and represent you if your case goes to court.

By contrast, some private plans only require the applicant to demonstrate that he can no longer continue in the same line of work in which he was previously engaged. If you take out your own policy, it will stay with you whenever you change jobs. But it’s cheaper if you can buy it through your employer that may offer it when you come on board, or you can talk to your HR staff about setting it up later.

STDI replaces a portion of your paycheck for a short period of time—three to six months. Most people get STDI through their employer. You can get an individual policy through some private insurers, but these plans are usually expensive. An alternative to an STDI policy is to save 3 to 6 months of expenses in an emergency fund that you can draw upon if you get sick or injured and have to take time off work for a few months.

Long-term disability insurance (LTDI) provides coverage if you’re out of work for a longer period of time—years or even decades. It, too, is sometimes offered by employers, but even if the benefit is provided, it might not be adequate. Employees often take out individual or a supplemental LTDI policy if the benefit isn’t provided by employers.

When applying for either an STDI or an LTDI policy, make sure you find out answers to the following questions from your insurer:

• What is covered under my policy?
• Does my disability qualify me for coverage?
• When and how do I make a claim?
• What do I do if a claim is denied?

Limits of Disability Insurance

Disability insurance is only designed to replace a portion of your income—it doesn’t cover extra expenses like your medical bills and long-term care costs.

According to Mason Finance, “Most disability policies come with several built-in exclusions in order to protect the insurer from claims submitted as a result of disabilities sustained from what it considers to be ‘high-risk’ activities, such as skydiving, mountain climbing, flying in experimental aircraft, or other such activities. Your insurer may also exclude any preexisting conditions that you have when you apply for coverage.”

While pregnancy isn’t usually covered by long-term policies, complications that extend beyond pregnancy, for example, if your doctor orders you to refrain from working to recuperate from a C-section, you might qualify for benefits—but only if you had a long-term policy in place before you got pregnant. 

Short-term policies do cover birth as a disability, but you might be waiting a long six-to-eight weeks for your first payout. 

InsureYouKnow.org

If you decide to apply for disability insurance, you can track your policy, payments, and any claims you submit at InsureYouKnow.org.

Driving (or Not) with Auto Insurance

February 15, 2021

Although you may not be driving as much during the COVID-19 pandemic as you did in previous years, you still need to have auto insurance if you own a vehicle. The following tips may help you establish or review your auto insurance policy as you dream about taking road trips while your motionless car is parked in your driveway.

Visit Your Auto Insurer Online

Before the pandemic, you may have felt comfortable visiting your auto insurer’s office to apply for or review your auto insurance policy, or to file a claim for a car accident, vandalism, car theft, hail, fire, floods, falling objects, and collisions with animals. During the COVID-19 pandemic, however, claims are processed virtually. You can use your insurer’s mobile app or website and go through the entire claims process from the comfort of your own home.

In the event of an accident, you may be able to upload photos of your car’s damage that your insurer can use to estimate a repair and then send you a payment quickly.

Get Insurance Before You Buy a Car

Shop for car insurance before you buy a car so you can drive your new car off the dealer’s lot. There are four basic kinds of car insurance coverage: property damage liability, bodily injury liability, collision, and comprehensive. Review each one of these types of coverages carefully and decide which ones fit your needs. You might also want to consider getting protection in the event of an accident caused by an uninsured or underinsured driver.

You’re going to need proof of insurance when you buy a car before you can take it home with you. Follow these steps to get insurance:

• Have a make, model, and year in mind. In the process of car shopping, you’ve most likely identified the types of cars you’re interested in buying. An insurance agent can give you quotations for a few models, so you can budget accordingly.
• Compare quotations from multiple car insurance companies. An independent insurance agent or online car insurance comparison site is an efficient way to price shop. Rates vary considerably among insurers, so you will want more than one or two quotations.
• Understand what coverage types you’ll need. Most states require you to carry car liability insurance. Also, if you’re taking out a car loan or lease, your lender or leasing agent will most likely require collision and comprehensive insurance.
• Ask your insurance agent to set up a policy. If you have the car picked out and know the vehicle identification number (VIN), you can have your policy ready to go before you arrive at the dealership. If you don’t have the VIN yet, ask if the agent can set up a policy with the information you have, like the drivers in your household and the address where you’ll keep the vehicle. Once you decide on the car, call the agent with the VIN to complete the purchase of the car insurance policy.
• Ask about bundling. Some insurance companies offer discounts to protect all your property with one insurer. Multiple-policy discounts can apply to combinations of home, auto, and life, and even motorcycle insurance.

Look into Pay-Per-Mile Insurance

If the pandemic has drastically altered your driving behavior since you aren’t commuting to work or going on road trips, you might want to look into an alternative car insurance model like pay-per-mile insurance.

In this plan, you’ll get charged a base rate per month plus a per-mile rate. Your monthly bill will depend on how much you drive. For example, if you drive 600 miles in a month at a $29 base rate and a $0.05 per-mile rate, your bill for that month would be $59. But, if you do return to commuting to your office you could end up paying more per month than with a traditional car insurance policy.

Reconsider Dropping Optional Coverage

If you have an older car and you’re considering dropping collision and comprehensive insurance to save on your insurance policy, Forbes Advisor recommends that you reconsider. Dropping coverage could leave you with a significant coverage gap. But you don’t have to drop both. It may be better financially to drop collision insurance but keep comprehensive insurance, which pays for repairs, such as ones caused by hail or falling tree branches that don’t involve your own driving.

Check on Auto Policy for Delivery Job

If you’ve taken on a delivery job and use your car for deliveries from a restaurant, grocery store, or other business, check with your car insurer to see if you need a commercial auto policy. If you’re involved in an accident while working, your personal auto policy may not cover your claim and you could be held responsible for repair bills and medical expenses.

Cover Your Teenage Driver

If you have a teen who’s driving, you’re going to pay a premium rate for his car insurance. Adding an inexperienced teen driver to your insurance will add an average of about $1,700 annually to your car insurance bill, based on Forbes Advisor’s research.

But there are ways to reduce anxiety about teen driving. By being a good driver role model, you can spend time driving with your teen and instill safe driving habits, including not using a phone while driving. If your teenager keeps accidents and violations off his driving record, the result will be substantially cheaper rates.

Protect Senior Driver’s Rates

If you are a senior driver with a perfect driving record, with no accidents or claims, you might wonder why your car insurance rates have increased. You might be in excellent health for someone your age and you might feel that your insurer is discriminating based on how old you are. However, insurance companies are legally allowed to charge any premium they want based on your driving record or age. Even if your reflexes are sharper than many other drivers of your age or drivers who are younger, your insurer will place you in the senior driver’s category along with other senior drivers whose reflexes are not as sharp as yours.

The following methods can help senior drivers save money on car insurance:

• Change your driving status. If you are retired, then changing your driving status to pleasure or leisure can help you save money. This status covers all of your daily routines that are non-work related. Drivers who are placed in this category will be seen as a lower-risk by their insurers and they will pay less on their insurance rates.
• Ask for a senior discount. Many insurance companies offer a discount to seniors who take a defensive driving course. These courses are not expensive and you can can stream them online at home. They can help you refresh your driving skills and knowledge and teach you how age-related diseases and medication can affect driving.
• Drop a driver from your policy. There are some states where not all the licensed drivers from a household are required to have car insurance. In order to reduce your policy rates, you can exclude anyone from your policy who no longer drives. Usually, those persons are older spouses or parents. Also, you can change the primary driver from your policy to someone from the household who is younger, but only if that person is the one who is driving the most.
• Improve your car’s safety. Another method used by drivers of any age to save on car insurance is to install safety devices on the vehicle. You can lower your premiums if you install safety systems like rearview cameras, lane drift, parking assist, and collision warning systems.
• Shop around. Maybe the best option you can have to lower your insurance rates is to shop around and compare different car insurance quotations. Insurance companies have different premiums for different groups of people. Compare insurance quotations to find an insurance rate and coverage to your advantage.

InsureYouKnow.org

At InsureYouKnow.org, file copies of your proof of insurance, policy documents, and any car insurance claims or correspondence you file with your auto insurance carrier.

Planning to Retire? Find Answers to Social Security Questions

January 27, 2021

Social Security provides benefits to about one-fifth of the American population and serves as a vital protection for working men and women, children, people with disabilities, and the elderly. The Social Security Administration (SSA) will pay approximately one trillion dollars in Social Security benefits to roughly 70 million people in 2021. Almost eight million people will receive Supplemental Security Income (SSI), on average, each month during 2021. Beyond those who receive Social Security benefits, about 178 million people will pay Social Security taxes in 2021 and will benefit from the program in the future. That means nearly every American has an interest in Social Security, and SSA is committed to protecting their investment in these vital programs.

Social Security payments are adjusted each year to keep pace with inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. The 1.3 percent Social Security cost-of-living adjustment for 2021 is down from 1.6 percent in 2020. The average monthly Social Security benefit in January 2021 was $1,543. The maximum possible monthly Social Security benefit in 2021 for someone who retires at full retirement age is $3,148.

The most convenient way to get information and use online services from SSA is to visit www.ssa.gov or to call SSA at 800-772-1213 or at 800-325-0778 (TTY) if you’re deaf or hard of hearing. SSA staff answers phone calls from 8 a.m. to 7 p.m., weekdays. You can use SSA’s automated services via telephone, 24 hours a day.

What is the best age to start your benefits?

There is no one “best age” for everyone. Ultimately, it’s your choice. You should make an informed decision about when to apply for benefits based on your personal situation.

Your monthly benefit amount can differ greatly based on the age when you start receiving benefits.

• If you start receiving your benefits as early as age 62, before your full retirement age, your benefits will be reduced based on the number of months you receive benefits before you reach your full retirement age.
• At your full retirement age or later, you will receive a larger monthly benefit for a shorter period. If you wait until age 70 to start your benefits, your benefit amount will be higher because you will receive delayed retirement credits for each month you delay filing for benefits. There is no additional benefit increase after you reach age 70, even if you continue to delay starting benefits.
• The amount you receive when you first get benefits sets the base for the amount you will receive for the rest of your life.

What should you consider before you start drawing benefits?

• Are you still working? If you plan to continue working while receiving benefits, there are limits on how much you can earn each year between age 62 and full retirement age and still get all of your benefits. Once you reach full retirement age, your earnings do not affect your benefits.
• What is your life expectancy? If you come from a long-lived family, you may need the extra money more in later years, particularly if you may outlive pensions or annuities with limits on how long they are paid. If you are not in good health, you may decide to start your benefits earlier.
• Will you still have health insurance? If you stop working, not only will you lose your paycheck, but you also may lose employer-provided health insurance. Although there are exceptions, most people will not be covered by Medicare until they reach age 65. Your employer should be able to tell you if you will have health insurance benefits after you retire or if you are eligible for temporary continuation of health coverage. If you have a spouse who is employed, you may be able to switch to their health insurance.
• Should you apply for Medicare? If you decide to delay starting your benefits past age 65, be sure to go online and file for Medicare. You will need to apply for Original Medicare (Part A and Part B) three months before you turn age 65. If you don’t sign up for Medicare Part B when you’re first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage. Even if you have health insurance through a current or former employer or as part of your severance package, you should find out if you need to sign up for Medicare. Some health insurance plans change automatically at age 65.

How can you get a personalized retirement benefit estimate?

Choosing when to retire is an important and personal decision. The best way to start planning for your future is by creating a my Social Security account. With your personal my Social Security account, you can verify your earnings and use SSA’s Retirement Calculator to get an estimate of your retirement benefits.

What happens to Social Security payments when a recipient dies?

• If a person who was receiving Social Security benefits dies, a payment is not due for the month of his death.
• In most cases, funeral homes notify SSA that a person has died by using a form available to report the death.
• The person serving as executor of the decedent’s estate or the surviving spouse also can report the death to SSA.
• Upon the death of a Social Security recipient, survivors are generally given a lump sum payment of $255.
• Survivor benefits may be available, depending on several factors, including the following:
• If the widow or widower has reached full retirement age, they can get the deceased spouse’s full benefit. The survivor can apply for reduced benefits as early as age 60, in contrast to the standard earliest claiming age of 62.
• If the survivor qualifies for Social Security on their own record, they can switch to their own benefit anytime between ages 62 and 70 if their own payment would be more.
• An ex-spouse of the decedent also might be able to claim benefits, as long as they meet some specific qualifications.
• For minor children of a person who died, benefits also may be available, as well as to surviving spouse who is caring for the children.

How can you start receiving Social Security benefits?

• To start your application, go to SSA’s Apply for Benefits page and submit your application online.
• After SSA makes a decision about your application, you’ll receive a confirmation letter in the mail. If you included information about other family members when you applied, SSA will let you know if they may be able to receive benefits from your application.
• You can check the status of your application online using your personal my Social Security account. If you are unable to check your status online, you can call SSA at 800-772-1213 (TTY 800-325-0778) from 8 a.m. to 7 p.m., weekdays.
• You can do most of your business with SSA online. If you cannot use these online services, your local Social Security office can help you apply. Although SSA offices are closed to the public during the COVID-19 pandemic, employees from those offices are assisting people by telephone. You can find the phone numbers for your local office by using the Field Office Locator and looking under Social Security Office Information.

What if you want to withdraw your application?

After you have submitted your application, you have up to 12 months to withdraw it. You will be required to repay any benefits you’ve already received. Learn more about Withdrawing Your Social Security Retirement Application.

InsureYouKnow.Org

At insureyouknow.org, you can keep track of applications you submit to SSA and responses you receive for Social Security benefits. You also can file statements and notices you get from SSA throughout the years ahead during your retirement.

CARES Acts in Action

January 14, 2021

In response to the economic fallout of the COVID-19 pandemic in the United States, the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, a $2.2 trillion economic stimulus bill, was passed by the U.S. Congress and signed into law by President Trump on March 27, 2020. The CARES Act made it easier for millions of U.S. workers to withdraw or borrow money from their retirement plans through December 30, 2020. People under the age of 59.5 affected by the coronavirus were allowed to take a distribution of up to $100,000 from an IRA, 401(k), or similar account without penalty. It also permitted loans of up to $100,000.

Usually, withdrawing funds from a tax-deferred account before age 59.5 would result in a 10 percent penalty on top of any income taxes incurred. But under the temporary rules part of the CARES Act, people with pandemic-related financial troubles could withdraw without penalty up to $100,000 from any combination of their tax-deferred plans, including 401(k), 403(b), 457(b) and traditional individual retirement accounts. The rules applied to plans only if the employee’s employer opted in.

Virus-Related Withdrawals

Some plans already permitted hardship withdrawals under certain conditions, and the rules for those were loosened in 2019. But the CARES Act rules were even more lenient by allowing virus-related hardship withdrawals to be treated as taxable income, but the liability was automatically split over three years unless the account holder chose otherwise. The tax can be avoided if the money is put back into a tax-deferred account within three years.

Almost 60 percent of Americans withdrew or borrowed money from their IRA or 401(k) during the coronavirus pandemic, according to a survey from Kiplinger and digital wealth management company Personal Capital. Most U.S. retirement accounts were already underfunded and the pandemic caused a significant number of Americans to withdraw money, potentially setting them back even further. They will now have to work longer or delay retirement in order to rebuild their savings.

“The past year rocked the confidence of most Americans saving for retirement,” Mark Solheim, editor of Kiplinger Personal Finance, said in a release. “With many people dipping into their retirement savings or planning to work longer, 2020 will have a lasting impact for years to come.”

When it comes to drawing down savings, younger workers have been more willing to withdraw from retirement accounts during the pandemic. A Transamerica survey found that 43 percent of millennials have either taken out a loan or withdrawal from a retirement account or plan to do so in the near future, compared to 27 percent of Generation Xers and 11 percent of baby boomers.

Boomers were much more likely to completely rule out withdrawing from their retirement accounts, with nearly 3 in 4 (73 percent) saying such a move was out of the question. In contrast, 36 percent of millennials and 56 percent of Gen Xers say they won’t take money from their retirement accounts to deal with financial shortfalls attributed to the COVID-19 pandemic.

Retirement Savings Sacrifices

Many workers are sacrificing their retirement savings in order to keep afloat during the coronavirus pandemic. Now that the original CARES Act has expired, taking an early withdrawal from a retirement account can have far-reaching implications. You may not only have to pay a 10 percent penalty, but you’ll also lose out on having your money earn interest for a longer period of time.

As a result, you may likely have to work longer in order to have enough money for retirement if you withdraw funds from your account now. Nearly a third of Americans say the pandemic has already led to a change in their expected retirement age. Since the start of the coronavirus outbreak, the economy has risen to the top of survey respondents’ list of obstacles with 49 percent saying it is the top barrier to achieving a financially secure retirement. The economy was followed by 33 percent claiming a lack of savings and 32 percent blaming health care costs as reasons to delay retirement.

Emergency Savings Accounts

Effects of the pandemic on emergency savings accounts have brought to light how few households have set aside money inside a retirement plan or for education expenses and it has prompted more employers to start their own programs. For now, about 10 percent of large employers offer some type of support to encourage emergency savings accounts.

But the scope of the damage caused by the pandemic means that even the traditional emergency savings advice of putting aside roughly three to six months of basic living expenses hasn’t been enough to provide a secure provision for an emergency. During the coronavirus pandemic, millions of Americans have lost incomes and work. An employee who lost a job early in the pandemic could have easily used up all his savings while being unemployed.

But withdrawing funds from a 401(k) has consequences, such as increased tax bills and possibly sacrificing future retirement income. According to survey data of 1,902 U.S. workers by Edelman Financial Engines, one in five Americans is considering taking an early withdrawal. But the survey also found that many Americans who have done so regret it.

For most borrowers, doing so was for an essential reason—35 percent spent their funds on housing, and 7 percent took a loan due to a loss of income. Some did so for less pressing reasons, for example, about 20 percent borrowed to pay off credit card debt and 8 percent funded a car purchase. 

Borrowing Consequences

Borrowers admit they didn’t understand the consequences or alternatives or not doing enough research on other options available. Many people say they regret their decision for this reason—about 41 percent of people who took hardship withdrawals and 42 percent who took a loan regret it because of a lack of understanding. 

Others say they wish they’d understood the other options available. During the pandemic, many lenders have helped to ease the burden on Americans facing financial hardship. As part of the CARES Act, all federally-backed mortgages had the option of forbearance. Banks across the country offered help programs for loans ranging from mortgages to personal loans.

According to Edelman, some wish they’d turned to those programs before making a long-term commitment in reducing their retirement savings. Of people who took hardship withdrawals, 52 percent said they wish they’d explored other options first, while 44 percent of those who took a loan said the same.

Overall, most wish they’d consulted a professional before taking funds from their 401(k). Four out of five borrowers who regret the withdrawal or loan say that consulting a financial advisor would have helped their decision making. 

CARES Act II

On December 27, 2020, President Trump signed H.R. 133, another stimulus bill that Congress passed on December 21. This legislation extends unemployment assistance not only for employees but also for independent contractors and other self-employed individuals for 11 weeks. The bill includes the “Continued Assistance for Unemployed Workers Act of 2020,” which provides for an extension from December 31, 2020 until March 14, 2021 of the CARES Act’s unemployment provisions, including a new form of benefits for all self-employed individuals: pandemic unemployment assistance (PUA). 

The original CARES Act provided PUA benefits for up to $600 a week for as many as 39 weeks, retroactive to January 27, 2020. The new stimulus bill, CARES Act II, halves that amount and limits PUA to $300/week. Those eligible for PUA also will receive an additional $300/week through the end of the extension period, whereas CARES Act I had added $600/week in federal stimulus payments. Finally, the new stimulus bill provides independent contractors with paid sick and paid family leave benefits through March 14, 2021.

CARES Act II contains a new provision: unemployed or underemployed independent contractors who have an income mix from self-employment and wages paid by an employer are still eligible for PUA. Under CARES Act I, any such worker was typically eligible only for a state-issued benefit based on their wages. Under CARES Act II, the individual now is eligible for an additional weekly benefit of $100 if he earned at least $5,000 a year in self-employment income. The $100 weekly payment which would be added to the $300 weekly benefit, also will expire on March 14.        

InsureYouKnow.org

If the original CARES Act or CARES Act II applies to your personal financial situation, you may want to consult a financial advisor about decisions you made in 2020 or plan to make in 2021. Then, keep a record of all your financial decisions at InsureYouKnow.org so you’ll be prepared for additional financial challenges or government stimulus opportunities in the new year.

2021 Benefits for a Happy, Healthy, and Productive Workforce

December 30, 2020

According to a study by the Stanford Institute for Economic Policy Research, 42 percent of the U.S. workforce worked from home in 2020. New challenges for a stay-at-home workforce include balancing work while caring for children or the elderly, dealing with mental health and other medical issues, and having opportunities for options in their work schedules. In response to these issues, some proactive businesses plan to provide child-care enhancements, telehealth benefits, and other flexible opportunities in 2021 to keep employees happy, healthy, and productive.

Child Care Benefits

For working parents, COVID-19 has been a balancing act of work and home responsibilities. At the beginning of the pandemic, 60 percent of parents had no child care support and they currently spend, on average, 52 hours per week on child care, homeschooling, and other household tasks according to a Boston Consulting Group survey.

One of the most innovative trends of 2021 will be to offer expanded support for child care. Some employers will boost child care benefits to include tutoring services, emergency child care support, virtual support groups for parents, onsite day care in the workplace, in-home child care for work-at-home employees, and virtual activities to keep kids occupied. These supportive measures will help alleviate stress at home so parents can be more focused and productive at work.

Mental Health Support

During the COVID-19 pandemic, many employees struggling with mental health challenges seek support from employers to cope with stress, anxiety, and burnout. Employers can offer telehealth resources and other virtual health tools like meditation apps, access to professional therapy, sleep tools, resilience training, and one-on-one behavioral coaching.

In a recent survey of employers by the Business Group on Health, two-thirds of businesses said they offer online mental health support and that is expected to grow to 88 percent in 2021. The stress of the pandemic combined with increased access to telemedicine will result in expansion of mental health benefits. Patients who are uncomfortable seeking help for stress and anxiety in person may experience less apprehension in a telemedicine environment.

Most employers also are providing increased access to other online mental health support resources such as apps, videos, and additional on-demand information. Still others are implementing manager training to help supervisory staff recognize mental and behavioral health issues and direct employees to appropriate services.

Telehealth Benefits

Since the pandemic began, an unprecedented number of people have scheduled virtual medical appointments, fearing potential exposure to the coronavirus. As telehealth availability increased in 2020, more patients began opting for this type of care. Even those not worried about contact with COVID-19 have appreciated the convenience of not missing a day of work to spend hours going to a doctor’s office in person.

Telehealth options have been expanding for years with both healthcare providers and health insurance carriers offering consumers the option to seek non-emergency care for minor illnesses from the comfort of their own homes or offices.

Additional telehealth alternatives will likely be added to many employee health plans as a way to address concerns over direct contact during the COVID-19 pandemic and because of the overall convenience of virtual visits.

Improved In-office Benefits

During the pandemic, patients who have gone into a doctor’s office have been met with thermometers, sanitizers, fewer fellow patients in waiting rooms, and shorter waiting times. Consumers will continue to demand in 2021 a streamlined in-office experience without a loss of efficiency in the administration of healthcare.

Flexible PTO and Sick Leave

The COVID-19 pandemic has redefined the workplace and employers’ leave policies to expand paid time off (PTO) and to provide more flexibility around work hours.

The Families First Coronavirus Response Act, passed in March 2020, ensured all employees receive two weeks of paid sick leave to care for themselves or loved ones.

Taking time off includes not only going on a vacation but also allows for leave for family and caregiver roles to achieve a good work-life balance that helps employees be productive at work and more present in their personal lives. With many employees having no place to go for an extended vacation, employers are also changing PTO policies out of concern employees won’t use allotted paid time off during the pandemic.

Some employers are allowing employees to carry over a portion of unused PTO into 2021, while others are experimenting with PTO sharing programs, so employees can donate their vacation time to a charity, a general company fund, or a specific colleague.

A combination of adjusting time off policies, offering more flexible work schedules, or adopting new policies in general are some of the ways employers will address these concerns in 2021.

Financial Wellness

As the pandemic sent shockwaves through the U.S. labor market with layoffs, pay cuts and furloughs, employers made sure to support employees through financial challenges with benefits like early wage access, automated savings programs, and education resources.

Many employers provide optional benefits like additional life or disability insurance as well as offering employees resources and education to reduce stress and enhance financial well-being. Some programs include educational sessions on common topics like reducing debt, while others include complimentary meetings with financial advisors. A few companies have opted to solve their PTO dilemma and financial stress by allowing employees to directly apply a PTO payout to student loan debt.

Health and Fitness Options

The transition to remote work means employees may be more sedentary than in an office building. To help employees alleviate stress and stay physically active, new virtual fitness offerings have become a must-have employee benefit during the COVID-19 pandemic.

Countless employers are taking their wellness programs online, offering virtual yoga, kickboxing, Tae Kwon Do, and other types of fitness classes. Wellness contests such as virtual fun runs, walks, and biking competitions also have been popular.

Some employers have hosted virtual lunch and learning programs, as well as online happy hours, and collaborative movie viewing. Many have introduced online gaming sessions, which have included trivia contests, Zoom bingo, and competitions for best virtual backgrounds. Still others are relying on old-fashioned but Zoom-friendly games such as Scattergories, Pictionary, Charades, and Heads-up.

Expansion of Other Benefits

Many employers will continue to make their benefits plans more attractive by increasing the availability of additional voluntary benefits such as life and disability insurance, home, auto, and pet insurance, financial counseling, and legal services. These options can often differentiate one business from another helping to attract and retain qualified employees.

Employers are also finding creative ways to reward remote staff with food delivery service gift cards and subsidies to pay for home office equipment such dual monitors and comfortable, ergonomic office chairs, as well as Internet or cellular services that they use for work.

In 2021, out-of-pocket costs are predicted to increase from 5 to 10 percent for healthcare premiums. Insurance claims for preventive and elective care that were put on hold during the pandemic also may increase maximum costs and deductibles.

If your employer institutes any new benefits or offers you upgraded options designed to contribute to your happiness, health, and productivity, keep track of your employment benefit changes at InsureYouKnow.org.

Home for the Holidays

December 17, 2020

As 2020 comes to a close, memories of past holiday gatherings with family and friends may increase the stressful and isolating feelings you have experienced during the COVID-19 pandemic. Holiday celebrations will be different this year to prevent the spread of COVID-19. 

Texas Medical Association has compiled a Know Your Risk This Holiday Season chart to provide a list of high-risk activities to avoid and fun alternatives to adapt that pose lower risk of spreading COVID-19. The chart ranks 34 holiday activities from least to most risky so holiday revelers can make informed choices during the busiest travel and social-gathering season of the year. Among the least risky items on the chart are shopping for gifts online, watching holiday movies at home, or viewing holiday lights with your family in your car. The riskiest activities include attending a large indoor celebration with singing, attending a college house party, and celebrating New Year’s Eve at a bar or nightclub.

The Centers for Disease Control and Prevention (CDC) reports that the best way to stay safe and protect others this holiday season is to stay home and celebrate with people with whom you live. Getting together with family and friends who do not live with you can increase the chances of getting or spreading COVID-19 or the flu. 

Travel Plans up in the Air

Travel is highly discouraged because it may increase your chance of getting and spreading COVID-19. Consider postponing travel and staying home to protect yourself and others this year.

If you are considering traveling, the CDC recommends asking yourself the following questions before you make your travel plans.

• Are you, someone in your household, or someone you will be visiting at increased risk for getting very sick from COVID-19?
• Are cases high or increasing in your community or your destination? Check CDC’s COVID Data Tracker for the latest number of cases.
• Are hospitals in your community or your destination overwhelmed with patients who have COVID-19? To find out, check state and local public health department websites.
• Does your home or destination have requirements or restrictions for travelers? Check state and local requirements before you travel.
• During the 14 days before your travel, have you or those you are visiting had close contact with people they don’t live with?
• Do your plans include traveling by bus, train, or air which might make staying 6 feet apart difficult?
• Are you traveling with people who don’t live with you?

If the answer to any of these questions is “yes,” you should consider making other plans, such as hosting a virtual gathering or delaying your travel.

The safest thing to do is to stay home, but if you do decide to travel, testing can make travel safer but it does not eliminate all risk.

Safety Measures from Home and Back

If you decide to travel, get a flu vaccine prior to traveling and follow these safety measures during your trip to protect yourself and others from COVID-19:

• Wear a mask in public settings—on public and mass transportation, at events and gatherings, and anywhere you will be around people outside of your household.
• Avoid close contact by staying at least 6 feet apart from anyone who is not from your household.
• Wash your hands often with soap and water for at least 20 seconds or use hand sanitizer that contains at least 60 percent alcohol.
• Avoid contact with anyone who is sick.
• Avoid touching your face mask, eyes, nose, and mouth.

According to the CDC, for those who decide to travel, COVID-19 tests should be considered one to three days before the trip and again three to five days afterward. The agency also recommends travelers reduce non-essential activities for a full week after they return or for 10 days if not tested afterward. 

Based on extensive modeling, the CDC has revised quarantine guidance and now recommends that people who have been in contact with someone infected with the virus can resume normal activity after 10 days, or seven days if they receive a negative test result. That’s down from the 14-day period recommended since the pandemic began.

At InsureYouKnow.org, you can keep track of travel insurance, medical records, including any COVID-19 testing and results as well as vaccines for the flu and COVID-19, when it becomes available. Social gatherings next winter are predicted to be more enjoyable and fraught with less fear of contracting and spreading a coronavirus. You’ll also have more opportunities to travel and to reconnect with family and friends after a COVID-19 vaccine has been disseminated worldwide.