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• Retirement Planning for Women

• Which Plan Type Meets Your Needs?

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Medicare Supplement Plans will be the better option for Medicare recipients in 2011 as the new healthcare reform bill begins to affect thousands of people over 65 years of age. Over the past few years, Medicare Advantage plans have been favored by many due to their low monthly premiums and affordable co-payments. However, there have been several changes affecting this program and the people who have enrolled in these plans.

The first issue with Medicare Advantage Plans is that several doctors and hospitals have stopped accepting patients who are enrolled in these plans. This can be a very stressful situation, especially if you need to see a particular specialist or are comfortable with your current physician or hospital. Most Medicare Advantage Plans are HMO’s and PPO’s, which means you need to visit doctors and hospitals that participate in the plan’s provider network in order to receive coverage or a discounted price.

The second issue concerning Medicare Advantage plans is that several insurance companies have stopped offering them in many areas. This leaves people who are enrolled in these plans looking for other options, or they will be without secondary coverage. They could be subjected to huge medical bills when they need services. The good news is that people who are enrolled in a plan which is being discontinued will be eligible for guaranteed issue plans, which means they can purchase any plan regardless of pre-existing medical conditions.

Many Medicare Advantage Plans have increased their monthly premiums and reduced their benefits. In many cases, Medicare Supplement Plans have become a more affordable option as a result of these changes. This trend is expected to continue into 2011 and beyond.

Medicare supplement plans are standardized by Medicare, which means every insurance company offers the same benefits. Medicare Supplement Plan F will remain the most popular choice, but Medicare Supplement Plan N can also be a great option for people who like Medicare Advantage plans and are in good health. Plan N, new as of June 1, 2010, will likely be popular in 2011, as thousands of people will switch from the Medicare Advantage program back to original Medicare.

People who choose to leave their Medicare Advantage plans in favor of Medicare Supplement Plans in 2011 will enjoy better coverage and the ability to visit any doctor, hospital, or specialist that accepts Medicare. The key to finding an affordable plan that offers great coverage is to consult a broker who can offer many company choices and will provide honest advice. The Annual Enrollment Period begins on November 15, 2010 and everyone who is currently enrolled in a Medicare Advantage plan will have the option to change. Pearson Insurance Associates stands ready to assist you in making your Medicare plan choices.

If you would like to view Medicare plans on your own, including Medicare supplement, Medicare Advantage, and Part D Prescription plans, visit www.Medicareful.com.

It has been reported that more than 80 per cent of small businesses have no safeguard if an important employee were unable to work.

A serious illness or accident is not only bad news for the employee, but for small business owners as well; It could have a severe in impact on the business performance.

Recent research identified that many small businesses that have key employees are not covered for the loss in profit or cost of replacing them. At the same time, four in five small businesses admitted they have at least one person whose absence through critical illness, accident or even death would have a negative effect on the business survival.

Due to the current recession, many small businesses are more concerned about cash flow rather than prepare for the unexpected loss of a critical staff member.

Certain protection policies such as life insurance and critical illness cover work in the same way for small businesses as they do when purchased by individuals. Similar to individual protection policies, key person policies can be tailored to the needs of the company. Critical Illness can be purchased alone or combined with life insurance and provides protection against an employee being diagnosed with a serious condition. Other types of policies such as Income protection pay out a regular income if the person is unable to work because of illness or injury. In this situation a business could use the money to pay for temporary staff.

Before a business takes out any key person insurance, it is advisable that they seek some guidance from a broker such as Pearson Insurance Associates, who can talk small businesses through what policies are available and suggest appropriate coverage according to the company’s needs and requirements.

Key Person (keyman) Insurance falls under the umbrella of life insurance and is taken out by a company to cover someone who is considered to be vital to the business. The primary aim of key person insurance is to help cover any shortfalls from the loss, temporary or permanent, of a particular person. This key person would be deemed to play a significant role within the business and would therefore leave the business struggling if they were unable to work. A key person would typically be a director or business partner, but a key project manager could also be covered under a keyman policy.

The most basic key person policies will only pay out on death, but the more comprehensive policies will have a critical illness add-on, which will pay out for serious conditions such as cancer and heart attacks.

When deciding on the level of coverage required, there are two common ways of doing this. The first is to work out profit calculation such as five times net profit the key person brings to the company, or two times gross profit. The alternative way for calculating the coverage required is to multiple the key person’s salary up to 10 times gross income for that person. Other factors that need to be considered include the cost of recruiting and training a replacement as well as the potential fallout from lost sales and specialized skills.

Pearson Insurance Associates is one of the fastest growing insurance brokers in Pennsylvania. They offer you a way to find Income Protection Plans, Decreasing Term Insurance Rates and much more.