Myths About Life Insurance

Life insurance is one of the most misunderstood type of insurance policies.  Misconceptions and partial truths circulate in the public imagination. Here are the top five myths about life insurance, and the real information:

 

It is Expensive

Many people are surprised by how affordable term life insurance can be. Price policies vary from person to person, which is why people are encouraged to shop around when they apply. Different companies may offer different costs for a plan. But the average yearly cost of a $500,000 policy (20-year term) for a 30-year-old female is $252 a year. That calculates out to less than $25 a month.

 

Only the Elderly and Parents Need Life Insurance

Another common misconception: the beneficiary of a life insurance policy does not have to be a child. Parents are not the only people who need life insurance.   Partners can be beneficiaries, as well as anyone else who depends on the policyholder. And the sooner one applies for a policy, the cheaper the policy is likely to be. The one factor that determines how much the policyholder pays is their health; health is likely to decrease as a person ages.

 

It’s Difficult to Apply for Term Life Insurance

Like many other things, the internet has changed how people apply for term life insurance. In the past, people may have needed to see a doctor in person to qualify for term life insurance policies. With the rise in telehealth accessibility, the vast majority of companies have ways of applying for policies over the phone or online.

 

My Employer Offers Me Enough

For those people who have access to a life insurance policy through their work, the coverage is still likely to not be enough for their family. The median workplace life insurance policy is approximately one year’s salary. It is best to consider workplace life insurance a supplement to a life insurance policy rather than the entirety of the coverage. Online tools exist to calculate how much coverage your family may need, but one guideline is to aim for five to ten times the policyholder’s annual salary.

 

I Only Need Life Insurance If I’m Working

Even if a policyholder isn’t employed outside the home, the value of the labor they provide in the home is enough reason to consider a life insurance policy. Despite life insurance typically being thought of as a replacement for lost income, it can be vital to pay for childcare or housework, especially if the policyholder is the one performing those tasks now. Plan coverage with all of the family’s contributions in mind, not just working benefits.

Watch: Who pays for a golfer’s hole-in-one?

 

On a warm day in September 2009, Jason Hargett, a 35-year-old restaurant manager and father of four, stepped up to the tee at Red Ledges golf resort in Heber City, Utah. It was the end of a charity tournament, and a big prize was on the line: Anyone who sunk a hole-in-one would win $1m. Hargett took a swing The ball careened 150 yards through the air, plopped onto the green, and slowly rolled back into the hole. Cheers erupted from the small crowd as Hargett sprinted down the fairway in disbelief. But one entity wasn’t celebrating: the insurance firm that had been hired by the organizers. Trouble with a tee If you’ve ever watched a golf tournament or charity event, you’ve probably seen some kind of prize for acing a specified hole. The chances of this happening for an amateur golfer are minuscule (~1 in 12.5k). But most organizers can’t risk getting stuck with the bill. Instead, they turn to hole-in-one insurance firms that assume the risk for a small fee — we made a quick video to show you how these arrangements work.

Who Pays For A Golfer's Hole-In-One Prize? - YouTube

2023 ACA - Important Legislative Updates in Review

The American Rescue Plan, passed in 2021, expanded subsidies to provide more Americans with affordable health care through the Affordable Care Act. The expansion was set to expire on 12/31/2022.

The passage of the Inflation Reduction Act in August 2022, extends these subsides until 2025, protecting affordable health care for millions of Americans. It also extends the American Rescue Plan provision that allows many low-income families to receive a subsidy to cover the full value of their premiums and prevents families from falling a financial cliff as their income rises.

Medicaid Unwinding, started in April 2023. Not everyone coming off Medicaid right now is going to be LOW INCOME. That's right!! there could be people that got on there when they were unemployed for a month or 2 but now, they're back to making 5 or even 6 figures.

In Arizona, Florida, Iowa, Missouri, Nebraska, or Texas? Let your friends and family know that I can help if they are losing Medicaid. You may even have children that went on OHP for the pandemic and need help transitioning from Medicaid.

- Doug Myrick cell 407.244.0972

How do I apply for health insurance if I don't have a social security number?

Can I apply if I don't have a Social Security number?

Yes, you can apply if you’re lawfully present even without a Social Security number (SSN) as long as one of the following is true:

• You’ve applied for a SSN
• You don’t qualify for a SSN due to your immigration status
• You do not want to provide your SSN for religious reasons

If your family member doesn't have a social security number, they can still be included on your plan if they have lawful immigration status.

If you or a family member don't provide an SSN on your application, you’ll need to provide appropriate documentation within 90 days. 

• Link: Apply For Your Social Security Number While Applying For Your Work Permit
• Link: How do I apply for a new or replacement Social Security number card?

How to apply without a Social Security number

If you're applying in most states directly on the HealthSherpa site:

• When you reach the "Personal Info" page of the application, click the circle that says "This applicant doesn't have a SSN."

• If you enroll directly with your exchange and would like to keep Doug Myrick as your broker of record, you'll this information: 

  • Our broker name (our CEO and agent of record’s name): Douglas W Myrick
  • Our National Producer Number (NPN): 225740
• If you're applying in Florida, and you need to apply over the phone (305) 741-3684 with Doug Myrick in order to enroll in health insurance if you or a family member does not have a Social Security number. We'll assist you in navigating the application. 

How Do I Start Investing?

When should I start investing? This is a question I get asked often. My first response is “what do you want to accomplish from investing?” What is your destination? Is it more passive income, financial freedom, because you feel like you have to in order to get ahead. Whatever the answer is you can start right now by investing in yourself. You must learn to work the muscle of investing. In order to invest and learn to invest you can start with zero money. In order to have more time and money you need to learn to invest more time and money.  

In order to invest you must learn to sacrifice time and money for other things. Sacrifice is required to invest. Sacrifice today so that you don’t have to tomorrow.  

To learn to sacrifice/invest time, you must learn to invest your time in activities such as working out, journaling, reading, meditating, things that you normally don’t do that you know would be of benefit to you. To learn to invest money start today by opening a bank account called your “investment account”. This account can be invested into each month with a certain amount of money. Then when enough accumulates, I recommend at least $50,000, then you can invest that amount into an investment. You are practicing working the investment muscle with these activities.  

Changing your mindset around investing time and money is how you start today. 

- Doug Myrick, cell 407.244.0972

  

Calculated Risks...

 

Risk taking is required in business. How risky are you? Do you take calculated risks or blind risks?

I have taken both in my life many times. Earlier in my career I took way too many blind risks. I just jumped. I have found that is a little too much risk and I learned so much along the way. Thankfully I have not been burned too much so far. It could change.

Over the last couple years, I have learned to take more calculated risks. Spent a little more time on decisions and consulted with my mentors/coaches before making decisions. Surrounding myself with people way smarter and more experienced than me has helped me to take more calculated risks. As I have developed a less worried mindset and also recognizing that I am not a failure has also helped with my ability to take risks. Risk does in fact favor the bold. Sometimes it just isn’t worth it. 

Remember to remind yourself of what you want each day by writing down your goals and this will help you to take and decide which risks are calculated and which are blind. 

- Doug Myrick cell 407.244.0972

Money tip: 5 bills you should never put on autopay

It’s not always possible to buy something you need (or want) outright. If the price is high, you can pay in installments, which may or may not involve a down payment. This payment plan is typical for large purchases like houses and cars.

For more minor things, you can choose to go the buy now, pay later route. This typically involves splitting the cost of a product into equal amounts and submitting payments on a schedule. It sounds simple, but risks are involved, such as unexpected fees.

Autopay is a great way to avoid late fees and interest on some things (primarily monthly payments that never change), but it’s not a good idea for every recurring charge. We put together a list of bills you should not put on autopay.

1. Annual subscriptions

You’ll usually see that an annual subscription will cost less over a year than a monthly one. The problem is that they’re easy to forget and could hit your bank account hard when you least expect it. If you don’t have enough in the bank to pay it, you’ll be hit with an overdraft fee on top of the account’s cost.

Annual subscriptions are available for magazines/newspapers, auto insurance, retail memberships, sample boxes and more. Go ahead and subscribe for a year but do not use autopay.

2. Streaming services (monthly)

Streaming services help cut the cord but carry the same payment plans as cable. It’s easy to forget all your services, especially if different family members have their preferences. Even living alone, you may not use all the services you’re paying for.

Look into your subscriptions and drop the ones you’re not using: Netflix, HBO Max, Spotify, Amazon Prime Video, Hulu, Disney+, Paramount+, Peacock and whatever else you’ve signed up for. For the remainder, avoid autopay.

3. Cellphone bills

Cellphone bills can fluctuate when you’re not on an unlimited plan. Depending on your data usage, the amount you owe can change from one month to the next. You could have one hectic month that leads to a higher bill than expected, which leads to a bigger hit on your bank account.

On top of this, some plans don’t use the same billing date each month. It could be a monthly cycle that will change depending on how many days are in each month. Again, this can catch you off guard. Get out of autopay and keep an eye on your cellphone bill. You could spot some billing errors in your favor.

4. Cable/satellite and utility bills

As with cellphone payments, cable and utility bills can fluctuate monthly, depending on your usage. You may order more movies on demand during the winter months with cable. And you’re probably cranking the heat during those same months, raising your utility bill.

Cable and satellite companies sometimes add fees to new channels and networks you may not even watch. Make a one-time payment and review each bill to ensure you’re not paying for something you’re not using.

Putting utilities on autopay will make you less likely to scour your bills regularly. A sudden spike in the utility bill could indicate a problem, such as a leak. Is your electricity bill surging? It could be an old appliance sucking up too much juice. That’s why it’s a good idea to avoid autopay for utilities.

5. Gym memberships

We get it. It’s the new year, and people want to get in shape. Not everyone can afford home equipment, and a gym membership can offer everything you need. But watch out for hungry managers who will do everything to get you to sign up for a recurring monthly or even yearly membership.

Committing to a gym is not easy, no matter how well you plan it. Life happens, and you may go more in one month than the next. If you pay monthly, you can evaluate your usage and decide if it’s worth sticking around.

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