The Un-Affordable Care Act for NC in 2016

Many of you have gotten, or will get, a letter from Blue Cross and Blue Shield of North Carolina that explains changes that will be made to your existing policy for the year 2016. If you like your current plan, you do not have to do anything- but that is not to say things will be the same as they were in 2015.

You will get a rate increase. The reason that BCBSNC gives for the premium hike is that the cost of health care is rising. "Any increase in the cost of services or number of services used can mean an increase in premium rates for our members-and we've seen a large increase in both in the past year." That large increase that BCBSNC has seen is going to reflect in your premiums. Most private BCBSNC plan premiums have increased by 30-40%. My own premiums will increase by $150 per month.

You will have fewer choices when purchasing a new health insurance plan for 2016. Particularly at the Silver level, you will find that you have fewer plans to choose from, and that the coverage isn't nearly as good. Deductibles are higher and there are fewer plans with moderate copays for primary care etc.

Blue Cross and Blue Shield is the largest health carrier in the country-but they are seeing their profits dip, and have already pulled out of states like New Mexico, parts of California, and they no longer offer PPO(Preferred Provider Organization) Plans in Texas. Rumor has it that North Carolina could be next on BCBS's black list. That would leave United Healthcare and Coventry Health Care(for some parts of NC) as the companies that sell health insurance on the government's Marketplace. United Healthcare's prices are no better than BCBSNC, and for whatever reason I can't get a quote from Coventry Health Care. I have a feeling they are probably not going to be offering health plans in North Carolina much longer either, from the looks of things. Assurant Health Care, who we used to write policies through up until last year, has already stepped out of the private health care business altogether!

Those of us that understand how health insurance works could have predicted(and probably DID predict) that this would happen. More people were enrolled in health insurance than ever before in 2015, and because so many more people have health insurance, more people are going to the doctor and getting treatment. This is a good thing! However, because more people are filing claims with their health insurance plans, the insurance companies are paying more out to doctors and facilities than ever before. Insurance companies' increased costs are being passed down to the consumers: to you and to me.

Now, one of the ideas behind the Affordable Care Act is that, as more people have health insurance, more people will go to the doctor for physicals and to get treatments; and because more people will be going to the doctor and receiving treatment, our country will be healthier in the long run. Over time, these healthier people will be filing fewer and fewer claims, which will drive down the cost of healthcare, and also health insurance. Perhaps this will happen-but if it does, it will be the next generations that enjoy it. For now, all this means is that all of the unhealthy people that couldn't afford health insurance before, or couldn't qualify because they have a "pre-existing condition", are now insured and filing claims, driving up the cost of healthcare for everyone.

We had better get used to this annual premium increase, because every year it will happen until we reach that dream of a healthier America. But beware, America-this is going to be a difficult pill to swallow.

5 Things You Will Need that Medicare Does Not Cover

Medicare Parts A &B are there to help you with curable medical issues, but they will not cover all of the services and materials you will need as you age to live a functional and comfortable life.

This is a small list of things Medicare won't cover, but almost everyone will need each of these 5 things, so this is an important list.

#1 Routine Physicals. Medicare now will cover 1 routine physical within a few months of a person enrolling in Medicare Part B, but that is all. Your doctor will definitely be recommending a yearly physical to you, but Original Medicare will not pay the bill. If you need help paying for a physical, you're going to want to look into Medicare Part C, or a Medicare Advantage Plan/or Supplement. Medicare Advantage plans are everything you need rolled into a neat little package. They cover the hospital, the doctor, and the medicine and involve copays for each type of service. A Medicare Supplement is Original Medicare's little buddy that picks up the slack when Original Medicare falls short. Medicare Supplements do not have copays, and they do not cover medicine. If you need help deciding whether an Advantage plan or a Supplement is right for you, give us a call, because each case is different.

#2 Routine Eye Exams/Glasses. Medicare will pay on medical eye exams, meaning you are diagnosed with something like cataracts, diabetes, glaucoma, or macular degeneration. However, if your eyeballs are perfectly healthy(other than not being able to see the newspaper), then Medicare will not pick up the bill for your eye exam. Medicare will also pay a little towards one pair of glasses following cataract surgery, but they will never cover another pair of glasses, and they pay for very basic glasses post-cataract surgery. Sometimes a Medicare Advantage plan will have coverage for vision, and many times an optometry office will honor a discount that is offered through a Medicare Supplement such as Mutual of Omaha. Other than that, you may need to purchase a separate vision plan to help cover eye exams and glasses. If you need help finding a vision plan, give us a call. We can help you find either a Medicare Advantage plan with vision benefits, or a stand-alone vision plan.


#3 Dental Care. Medicare will help pay for oral surgery if you are in an accident. Medicare will not, however, pay for cleanings or any other dental care. They will not cover dentures under any circumstance. They will not pay to have a tooth pulled. For these kinds of care, you will  need dental insurance. Again, sometimes you can find a Medicare Advantage plan that includes some dental coverage, but most of the time you will have to purchase a separate dental plan to pay for cleanings, fillings, root canals, and dentures. Dental Insurance will help pay for partial and full dentures. If you need help finding a dental plan that meets your needs, give us a call!

#4 Hearing Exams/Hearing Aids. What was that? Oh! Yeah, most of us will get hard of hearing as we age. Have you noticed though how many elderly people can't hear you, but aren't wearing a hearing aid? Medicare may be the culprit. They will not pay for routine hearing checks, hearing aid fittings, or hearing aids. If your doctor recommends that you go for a hearing test and get fitted for hearing aids, Medicare will not help pay for those examinations. Once again, a Medicare Advantage plan may be able to help, and sometimes there are some hearing benefits attached to vision insurance, believe it or not. I do know that VSP, the vision company I do most of my vision insurance with provides some benefits for hearing aids. If you need help finding insurance plans that will help you pay for hearing tests and hearing aids, give us a call.

#5 Custodial Care. Medicare will cover skilled nursing care, meaning either staying in a nursing facility or having a nurse come to your house if you are being treated for a curable problem. They will not pay for someone to come to your house and help you do chores, cook your meals, or help you use the bathroom. Yet that's a lot of what elderly people need help with. As we age and our bodies deteriorate, we need help doing the little things like taking a shower and getting dressed. Medicare will not pay for a home help aid or non medical service staff to help you around your house. These day to day tasks fall under things that Long Term Care insurance would help pay for. Many people expect their children or other relatives to be willing and/or able to assist them as they age. Sometimes this is not reasonable or possible, and it becomes necessary to either hire someone come to the house to help, or to move to a facility that can provide help with normal daily activities. Long Term Care insurance can provide benefits to help manage costs in a variety of circumstances. If you would like to know more about how Long Term Care insurance can help you in the sunset of your life, give us a call!

Medicare is complicated, and can be difficult to understand, even for agents like us! There are lots of nuances, loopholes, and gaps that have to be navigated, and we have the resources and experience to help you. Let us help you prepare for what you will need as you reach 65 and beyond. Call us at 336-342-4438, or send me an email!

Do I need Long Term Care Insurance?

Many people think that they are going to retire, go on Medicare, and that Medicare will take care of all of their healthcare costs from there on out.

FALSE.

Medicare is designed to take care of only one thing: injuries and illnesses that are CURABLE. Well, that cuts out a lot of what many people thought Medicare would cover! The biggest problem that people think Medicare will solve that it in reality doesn't solve is the cost of nursing home care, or home health care. As the country ages, more and more people are moving into nursing homes and finding out that they are very expensive places to live.

Why do people move into nursing homes? Usually it is because they cannot perform certain Activies of Daily Living(ADLs). These activities include bathing, dressing, eating, using the toilet, and transferring(think of moving from a bed to a wheelchair). If someone has trouble doing a few of these activities on their own, they will need a lot of care, and family members are not always able to give the level of care that a deteriorating person needs. On top of not being able to get through normal ADLs, the person may also have health conditions that need to be closely monitored. They may need someone to make sure they are taking their medications and eating the correct diet. Nursing homes are places where all of these needs are provided for. According to Seniorhomes.com, in North Carolina(2015) the minimum daily cost for living in a nursing home is $108, and the maximum is $630 daily.

Medicare will not pay for nursing home care, and neither will any Medicare Advantage or Supplement plan because Medicare benefits are not intended for long term treatment. They are not designed to pay for someone to help you go to the bathroom, cook your meals, or anything that is considered a normal daily activity.

Long Term Care(LTC) Insurance is designed to cover chronic care of a long duration. In North Carolina, LTC policies are required to cover a period of time no shorter than 12 consecutive months of care. The enrollee will determine how long they want the policy to provide care, whether it is 1 year or 3,4, or 5 years. Obviously, the longer the policy provides benefits, the higher the premium. These benefits don't begin until the enrollee begins using the policy. So if you buy a 3 year Long Term Care policy when you are 55, but don't go into a nursing home until you are 75, then your 3 year policy begins the date you enter the nursing home.

Long Term Care insurance will cover more than just your standard nursing home care. LTC will cover many levels of care from Skilled Nursing care when someone is being treated for a disease like cancer, to things like Assisted Living and even Adult Day Care. Adult Day Care is a program that provides care during the day while an elderly person's usual primary care giver(like a son or daughter) is at work, and can be provided in a facility or in the home.

LTC policies usually pay a maximum per day to a nursing care facility, like $80 per day or even up to $300 per day. They also usually have a waiting period that has to be met before coverage begins. Examples of these waiting periods are 20 days, 30 days, 90 days, and can even be as many as 365 days. During these waiting periods, the enrolled member would be responsible for all of the costs of the nursing facility. Again, the longer the waiting period, or the longer you pay for your own care before the policy kicks in, the lower the premium. Many policies include a benefit that waives premiums while the policy is in use, meaning you don't have to pay LTC premiums once you are receiving your benefits.

People are living longer and healthcare is advancing all the time. As healthcare advances and new long term care options are invented, Long Term Care Insurance evolves with it. Long Term Care Insurance means not relying on children or other relatives to pay for all of the costs of caring for someone in their final years of life. Nursing home care can bankrupt someone in a heartbeat, depending on the circumstance. Even at the NC minimum of $108 per day in a nursing home, that totals to $39,420 for a year. Imagine having to rely on your family to pay that bill. Most of us are going to need some level of medical care at the end of our lives, and Long Term Care Insurance is how we prepare.

5 Important Facts about Obamacare

Open enrollment for health insurance is about a month away, and in preparation for this, I wanted to

share a few facts about how the Affordable Care Act(ACA) affects health insurance.


#1 If you want health insurance for 2016, you have to enroll between November 1st and January 31st. For 2015, there were a couple of extensions added on, but there is no guarantee there will be any extensions this year. If you do not enroll in health insurance during open enrollment, you will not be able to purchase health insurance mid year, unless you are within 60 days of a Qualifying Life Event. For a list of qualifying life events see our past blog article. You also cannot make any changes to a policy mid year without a qualifying life event.  This means that you need to try to plan ahead for 2016. While we can't predict how often we will get sick, or whether we will be injured, there are things that we can try to plan for. Are you going to be pregnant, or having a baby in 2016? Is there a major procedure that you will need done within 2016? While shopping for a health plan for 2016, keep these factors in mind. You may want to pay a little more in premium to save you from having to pay a large deductible. I can't tell you how many people I've talked to this year that were not aware that they couldn't enroll in health insurance until open enrollment. Don't put this decision off until the last second. Choosing a health insurance plan is an important choice, and there is now limited time to make a choice.

#2 If you are in a "grandfathered plan", you cannot make any changes to your health insurance. A "grandfathered plan" means that the plan was in effect before the ACA was signed into law. President Obama had promised that anyone who wanted to keep the plan they were on prior to the ACA, would be able to keep it without changes to their benefits or premiums. Initially this did not happen, but upon being reminded of this promise, President Obama negotiated to have this brought about. However, if you make any changes to the plan, such as dropping one of your children off of your family plan, the insurance company is not required to continue providing that plan at the cost pre-ACA. In many cases, this means the premiums will double in cost for the same benefits you had before. If you have one of these plans, you need to be aware of the consequences of making any changes to the plan.

#3 Lawfully Present Immigrants are eligible to purchase health insurance on the Marketplace. Many immigrants that are in the U.S. legally are eligible for federal subsidies when purchasing health insurance. This includes people that have a "Green Card", or Lawful Permanent Resident status. Refugees and people that are in the U.S. that have been granted asylum can also purchase health insurance on the Marketplace. Also, people that have a work visa or student visa are eligible for federal subsidies. If you are a documented immigrant in the United States, then more than likely, you can enroll in health insurance through healthcare.gov. For a full list of eligible immigrants, click here.

#4 Everything depends on your taxes for 2016. The main idea is your estimated income for 2016 will decide what your premiums for health insurance for 2016 will look like. If you are interested in getting a federal subsidy to help cover the cost of your health insurance, then you will need to make a guess as to how much you think that you will make in 2016. If you're married, you will need to use your estimated combined income. You will also be asked how many people you will file on your tax return for 2016. Its a lot like filing for Medicaid. The government has decided how much income is required to support a family of 3 members, 4 members, 5 members, and so on. If the income is within a certain range, then you will qualify for a subsidy. However, you can make too much money for a subsidy, and you can make too little money for a subsidy. The difference can be as little as $1000 a year, so you can fiddle around with your projections a little and see a big difference in your premiums. If you make too little money for a subsidy, they will recommend that you enroll in Medicaid. I won't get into the "black hole" right now,  for more details on that issue, see our past blog article.

If you find that you are on the edge of being eligible for a subsidy(and you want/need that subsidy) you can adjust your projections to get that subsidy, and then you will simply have to make sure that you don't make more or less money in 2016 than your projection. Any change in your income, whether you get a new job, get a raise, or lose your job, should be reported to the Marketplace, and they will adjust your premiums accordingly. A key concept of health insurance has changed from the ACA: you are no longer rewarded for being healthy and not filing many claims with lower premiums. How much you pay for health insurance is directly based on how much money you make in a given year.

#5 If you do not enroll in health insurance for 2016, you will be penalized on your taxes for that year. For 2015, the penalty for not having health insurance will be either 2% of your annual family income, or $325 per person($162.50 for children under 18) for the year, whichever is higher. You will see this charged to you in taxes, or subtracted from an return you may be eligible for. For 2016, the tax penalty will go up to 3% of your annual income. This percentage is only taken on the amount of your income above the tax filing threshold for your bracket. The penalty will continue to increase each year. Many people will notice that the penalty is still far less than what they would pay in premiums for the year. However, going without health insurance is a very risky decision sickness and accidents are unpredictable and can cripple you financially in a very short time.


Health insurance is tricky at best, and the ACA does not make things any simpler. If you have questions about how Obamacare will affect you, feel free to call the office, or email me. Get ready for Open Enrollment folks! Its coming up fast!

13 Ideas For Getting Through College Without Debt

College tuition continues to climb, and many students go into debt trying to pay for their education. As our young people leave the nest and start lives of their own, unfortunately many are starting out acrruing debts that they will struggle to pay for years after graduation. We want our college students to look forward to years of success free from the bondage of student loan repayment. Dan Zeller wrote down 13 Tips for getting through college without debt, and I filled in the details, and I would like to post this disclaimer: These tips will only work for a student that is dedicated to getting through college without accruing debt.


#1 Summer Jobs
Young people that are determined to go to college should start saving as soon as they are able. Not only should they be working between college semesters, but summer jobs during highschool can help a lot to save while they are still living at home. Many companies offer "seasonal work" and even actively seek young people to hire for the short term. Besides that, "I'm trying to work to save money for college" is a great line, and is bound to charm a potential boss in an interview.

#2Work and School Combined For many students, working and going to school is a necessity, not a decision. However, even if you don't have to work while attending school, you should consider working while going to college for other reasons. For one thing, the added time pressure of a work schedule on top of a school schedule will keep you busy and out of trouble. Secondly, even if you don't need help paying for school now, you will need the money in the future for post-graduate school, a car, or for emergencies. Like I said, though, many students need the income during college to either pay for school, or to support themselves while attending college.

#3On-Campus jobs are a great way to earn money and to interact with other members of the student body. On-Campus jobs usually come with a maximum number of hours(maybe 20 hours) each employee can work a week, which is great, because there is no worry that you will over-schedule yourself. Campus jobs are also nice because it saves bus fare or gas money to get to work. Campus jobs can be hard to get due to popularity, so apply early and be diligent in your pursuit. If you can't land an on-campus job, never fear. Businesses in a college town are used to working with student schedules. Once again, it is not a good idea to wait until the semester begins to start applying for jobs in and around campus. Another option at some schools similar to on-campus jobs, is a work/study program. These are part-time jobs offered through the university and are usually offered on a needs-based system. In a work/study program, the money you earn while working goes directly to paying for tuition.

#4 A Worker Friendly Class Schedule Some students attending college full time will have a couple of morning classes... then maybe a class mid-afternoon...and each day their schedule is a little different. While that may keep things interesting and keep you from rushing from one class to the next, it is hard to fit a job into those odd intervals. While students can't always control what time a class they are taking is offered, a working student should do their best to organize their schedule so that they can be free either in the mornings, or free after a certain hour in the afternoon so that their workplace can easily fit them into a work shift. Working students should also consider that they will need time during the day to study, and adequate time to sleep so that they are not too tired to pay attention in class. Try to create a good balance. Decide how many hours a week you need to work, and how many hours of class you need to take each semester to meet your goals.


#5 Budgeting Learning to live on a budget is a harsh lesson for many young people. Its so tempting
 to take new found freedom and give into impulse buying and frivilous expenditures. However, if they can teach themselves to live within their means and avoid unnecessary spending, they will find that they can live on very little money.

#6 Housing While none of us want our youth living in sketchy neighborhoods, run-down apartments, or living with questionable people, they also don't need to live in ritzy apartments with their own bathroom and Jacuzzi. Consider dorm living, if available, as an affordable option. Living on campus can eliminate some driving, which will save gas money. Meals, also, can be cheaper on a school meal plan versus doing your own grocery shopping. If you decide to live in an off-campus apartment, get as many roommates as you can to cut down your portion of the rent and utilities. Be modest in your selection of apartments. You're going to school, you're not on vacation-a community pool is not a necessity.

#7 Grants(Pell) This is as close as you will ever get to free money. Pell Grants are funds that the government provides for financially eligible students to pay for college. Unlike loans, Grants to not have to be repaid. Students who meet the grant requirements receive a specified amount each year. To find out if you are eligible, you fill out the FASFA form. For more info about Pell Grants, click here.

#8 Scholarships There are a wide variety of scholarships out there for the taking. Applying for scholarships takes a lot of time and effort, but is worth all the paperwork and interviews. Check for locally available scholarships in your community. Many local organizations and charities set up scholarship funds. For instance, Dan participates in the Rotary Club, which is a charitable organization that has many chapters world wide, and offers academic scholarships to their communities. For those students that already have a clear future occupation or field of study selected, there are many interest specific scholarships available. A well-known example is the NC Teaching Fellows Program, which was a state funded organization dedicated to helping students become teachers in North Carolina. While this specific program is ending, there are many organizations like this to help students afford the schooling they need for a specific occupation or interest. It is also important to check with the college you are looking at for scholarship opportunities that they offer. Some scholarships are needs based, while others are based on academics or athletics. Your high school counselor is great source of help and guidance while searching for scholarships.

#9 Buying Books on the Cheap(or Renting Textbooks) Never buy a brand new textbook unless you absolutely have to. First of all, if you have the opportunity, talk to the professor about how much he or she utilizes the textbook. There is nothing more frustrating than spending a lot of money on a textbook, and then never opening the book! Secondly, there are so many websites that offer used textbooks, and renting textbooks is really the best option. As an example I selected a popular textbook off of Chegg.com, The Art of Public Speaking by Stephen Lucas. The retail price on this book is $173.33. Chegg.com offered to let me rent the book for $20.49. Amazon.com offered to let me rent the book for $19.49, or I could buy the book used for as low as $25.99. No one should be paying full price for this text book! Just rent the book, and send it back to the company by the due date. Most sites will even allow you to minimally mark in the text book, so feel free to highlight key terms and definitions!


#10 Community College In North Carolina, the 2015 average full time tuition for a community college is around $1000 or less per semester. Community College is awesome in so many ways. Not only is it a fiscally responsible choice for tuition costs, community colleges offer many more night classes than your typical four-year university, allowing you to more easily fit work and school into your schedule. If you're lucky, you may even be allowed to live at home, thus saving money on rent and food. Community colleges frequently partner with a larger university, allowing you to get the degree you want for significantly less money. And, if you need to, you can transfer to a four-year school to earn a specific degree after first getting those pesky general education classes out of the way at your local community college. Community colleges also offer a lot of great career prep courses that you may not find at a big university. I have to say, community college is a pretty spectacular option.

#11 State Colleges Public State Funded Colleges are definitely the next best choice after Community College as far as price goes. The average North Carolina state university tuition per semester is usually between $1900-$2200. When combined with our other tips, this can be very affordable.

#12 Private Colleges While Private Colleges are generally more expensive than other college options, they also sometimes have many high value scholarships available to lower the overall costs. If you have a private university in your sights, explore the scholarships offered by the school to see if you can significantly cut the cost.

#13 Short Term Loans We will call these pay-as-you-go loans. If you do need loans to help you afford college, consider a loan that you make monthly payments on while you are attending school. These pay-as-you-go loans are usually offered through the university and have almost 0% interest. With a pay-as-you-go loan, you can pay the loan off right away, so you don't have a massive amount to tackle after graduation. Simply pay monthly during the semester(which you can do because you are working and going to school), and at semesters end you will have paid off the loan.

I want to assure students that when using these tips there will still be plenty of time for fun and socializing with your peers while at college. Enjoy your time in college, but also know that you are preparing for your future life, and you should prepare well. Mistakes at this time can have a ripple effect on the rest of your life. However, if you can achieve a proper balance in college, you will succeed and be happy. Good luck!

Which is Cheaper, Group or Individual Health Insurance?

Like many of you, I had always been told and assumed that group health insurance was always going to be cheaper than individual health insurance. For many people still working for large companies, this is probably the case. However, this is not true for everyone, and especially now because of changes to healthcare imposed by the Affordable Care Act(Obamacare).

First of all, Obamacare changed a few rules that used to give group health insurance an advantage over individual in a lot of cases.
-Insurance companies can no longer deny coverage or charge higher rates to individuals with a
pre-existing condition.
-All plans have maternity coverage included
-All plans offer preventative services
The only way these features are not true for your current plan is if the plan was "grandfathered", meaning it was a plan that was in force pre-obamacare that was allowed to continue, as long as no major changes were made.

With those features, the playing field was leveled a bit between most group plans and individual health insurance plans. The real deciding factor now into whether group or individual health insurance is more affordable is the employee group in question.

Group Insurance is owned by the employer and can be offered to eligible employees and their family memebers. Employers are required to pay a minimum portion of the employee's premium, although they can pay half or even all of an employees premium. Some large companies offer multiple plans to their employees so that they can pick a plan that works best for the employee and their family. The NC State Employee Health Insurance through Blue Cross and Blue Shield is good example: they offer three different health insurance plan options and they will pay all of the premium for the employee(employee only) for a particular level of coverage. In cases like this, it would be very unusual for the employee to opt out and shop on the individual market.


However, for many smaller groups of employees, group insurance is NOT the most affordable option.

Here is the reason: The premium paid by employers for their group policies is typically increased every year based on the previous year's healthcare costs of the employee group.

In a small group of employees, this means that if one or two employees has a baby, a major/chronic illness, or an accident, the next year will see a major increase in everyone's rate. The insurance company's risk is spread equally over the group.

In contrast, when insurance companies offer an "individual"(meaning for one person, or one family) insurance plan, they offer it to a much larger, more diverse group of people. The insurance company's risk for that plan is spread out over thousands, maybe even millions of people, depending on the plan and the carrier. In many cases, this drives down the cost and makes an individual insurance plan competitive, if not cheaper than some group plans.

For example: Previously, I was enrolled in a group health insurance policy for a company with less than 50 employees. Our plan was an HSA(Health Savings Account) plan with a moderate deductible($2500 for employee only) and an HSA Account that I contributed a small amount of tax free money to so that I could use the HSA debit card to pay for health expenditures. Once my daughter was born, I added her to the policy, which increased my deductible to $5000. 

Now, I am enrolled in an individual PPO (Preferred Provider Organization) health plan for myself and my daughter with copays for primary care and specialist etc., and a modest $3000 deductible. I am paying only about $50 more per month now than I paid for my group plan in monthly premiums, and yet I have a lower deductible and copays when I visit the doctor. Since, formerly, I was on a group plan, that means that my employer was also paying something towards my monthly premium. Looking at what I know now, I can see that I am really paying less for a better plan than I had while on group insurance.

 I am not pointing a finger at my former employers, because this has nothing to do with them. The issue was our group. While I was employed there, 11 babies were born within about 2 years. Yeah that's right...11. One of them was mine. Not only that, but we had several employees with health problems. Our group's risk was enormous! And because of our collective risk, our employer and each individual employee was paying more for their premium, whether they themselves were filing any claims or not.

While we are at it, it is also less expensive for my daughter and me to have a separate individual health plan, rather than to be added to my husband's group health plan with the NC State Employees, even without a federal subsidy .The individual health insurance plan we are on is very similar to the group's plan. To be clear, if your employer offers group health insurance, or your spouse's employer offers group health insurance, and you decide to go with an individual health insurance plan instead, you are not eligible for subsidies from the federal government.

At last, the point I am trying to illustrate with these examples is that the comparison between group health insurance and individual health insurance is not cut and dry. Some groups' premiums will be much cheaper than individual health insurance, but it depends on how big your group is, and who is in your group. Employers: if you have a small number of employees, group insurance may not be the cheapest choice for you and your employees. There are other options.Employees: if your company offers group insurance, do not take it blindly, assuming that it will be cheaper than what you can get individually.

As open enrollment for 2016 rolls around (November 1st-January 31st), make sure that you weigh all of your options. Give me a call, and I can help you explore the plans that are out there and compare them to what may be offered in your group. Even if you don't save money, we may find a plan that is better for the same cost.

How Does the Insurance Points System Work?

Many of you have probably heard of a drivers lisence points system; but did you know that there is also an insurance points system?

In 1957, North Carolina institued the Safe Driver Incentive Plan(SDIP) to help promote safe driving practices. You will receive insurance points when you are convicted of a traffic violation, or are found to be at-fault(even partially at-fault) in an accident.Traffic violations are separated into categrories and assigned a point value. The more serious the violation, the more points are charged. Your insurance rate inscreases by a certain percentage based on the number of points you have been charged. Driving safely can keep money in your wallet!

Insurance points are why your auto insurance rate goes up after an accident or a ticket. Because the points are associated with your auto insurance policy and not your specific drivers lisence, your rate can go up because of a family member's accident or ticket. The points added to your insurance can build up over time, but they are not permanent. SDIP points remain chargeable for three years from your conviction date. The points will be removed at the insurane policy renewal date, after the three year period is up.


If we are all honest, most of us can be rightly accused of speeding at one time or another. Many people say things like, "As long as you are going less than 10mph over the speed limit, you are ok."
Technically if you are driving even 1mph over the limit, you are speeding and can be ticketed.How many points speeding will cost you depends on what the posted speed limit is. Here are just a few examples:

-Speeding 10mph or less in excess of speed limit of less than 55mph: 1 insurance point

So if you are pulled over for driving 40mph in a 35mph zone(possible, but not likely) you will have 1 point added to your insurance policy. This earns you a 30% rate increase!

-Speeding 10mph or less in excess of speed limit of 55mph or greater: 2 insurance points
-Speeding more than 10mph provided the total speed is greater than 55mph, but less than 76mph:
2 points

In this case, if you are going 60mph in a 55mph zone(again, its unlikely that you will be pulled over for this, but you CAN be) or, if you are going 75mph in a 55mph, you will have 2 points added to your insurance policy. This will result in a 45% rate increase. If your original rate was $300, then you are now paying $435, an increase of $135 per month!

-Speeding in excess of 75mph when the speed limit is less than 70mph:4 points
-Speeding in excess of 80mph when the speed limit is 70mph or greater:4 points



On Highway 29 in Rockingham County, the speed limit is 70mph, but once you enter into Guilford County, the speed limit drops to 55mph. I will use this area as an example. If you are in Rockingham County driving 81 mph on Hwy 29(which if pulled over can result in ticket costing you 4 points and an 80% rate increase), then you hit Guilford County and you don't slow down, you are now going 26mph over the speed limit. If you are pulled over going 81mph in a 55mph zone, you will get 4 points for the speeding violation, but you may also be ticketed for Reckless Driving. It is possible that you could be charged 4 points for each conviction, resulting in 8 points being added to your insurance. 8 points on your insurance will result in a 195% rate increase, turning that $300 a month rate into $885 per month.

The moral of this story is, folks, driving safely will protect both you and your bank account. Speeding is such a commonplace traffic violation, but do not take for granted that going 5-10mph over the speed limit is ok. You can be ticketed for it, and if convicted(or if you plead guilty), not only will you pay the fine, your insurance rate will go up and stay up for three years. If you are ticketed for a traffic violation, talk to your insurance agent or their staff before you plead guilty and pay the fine. They can give you adivce about how much your rate could increase, and whether you may want to talk to an attorney about going to traffic court for you. The legal fees may actually be less than what you would pay for having a traffic conviction on your insurance for three years.

For a complete chart of the SDIP Points system, click here.

Why is Insurance Important?

Recently I had some issues arise with my health insurance that could have resulted in my daughter and I losing our coverage. I have to admit that, to some extent, I saw not having health insurance as a relief because it could have resulted in a lot more take home pay for me! I have yet to use my health insurance this year, and really didn't see myself using it any time soon. For my daughter though, I had to cancel her upcoming 18 month check up/vaccinations until I got the issue resolved. Part of me really wanted to just let it cancel and keep the money so that I could buy some things that I normally would not have the extra funds to buy, and also further help my husband pay the bills.

It was pointed out to me, however, that even though nothing might happen between now and open enrollment in November, that something could happen. My daughter, Audrey might get sick, or injured. She is learning to climb now, and just imagine if she attempted to climb her swing set at home and fell and broke her arm. There is no way to prepare for those medical bills except to have health insurance.

That is why we have insurance-to be prepared for the things that could happen.

We are required by the government to have auto insurance. If you didn't have car insurance, and you had an accident, you alone would be responsible for the damages to your car(and possibly having to buy a new car) and injuries you incur. You may also then be sued for the vehicle damage and bodily injury to the other driver! That would bankrupt a lot of people. Tens of thousands of dollars. As it is, those of us who are following the laws of the land have car insurance that helps us to afford these costs in the case of an accident.

Homeowners insurance covers a huge variety of incidents from roof damage during a storm to a person injuring his/herself on your property. Imagine what would happen if you didn't have homeowner's insurance. Something would happen, and you would be hit with a bill or lawsuit for, again, tens of thousands of dollars-maybe even more.

Then there is health insurance. I am one of those people who skated by without it for a few years because I am young and healthy. Many people, in spite of the Affordable Care Act penalizing those without health insurance, did not enroll in health insurance because the penalty for not having health insurance is much cheaper than the annual premiums for having health insurance. However, they are playing a virtual game of chicken. Accidents are called accidents because they are unintended-they can't be planned for. Diseases and illness are out there, and you will never know when disaster may strike.

Part of growing up is learning to look ahead at the future and not focusing solely on the present. Mature adults know that planning and preparing for the worst is essential to not being a victim of chance. Life insurance becomes an important factor as you prepare for your loved ones in the inevitability of death, and the scary possibility of a sudden, unexpected death. Unfortunately, often people don't think about buying life insurance until they are very sick, or close to the end of their lives and then it can be much more expensive. Your untimely death could result in tens of thousands of dollars in debt and bills that your grief stricken family will now have to shoulder, unless you have a life insurance policy in place to help protect them.

All insurance policies do one thing-they help us prepare for the unknown. Insurance is the one thing that you buy, hoping you will never have to use. Its like a security system for your life. You hope the alarm never goes off; but when it does, you are so glad it was there to help protect you from the unknown forces of destruction in the world.

I've Had a Car Accident-Now What?

I remember my first accident. A white sedan drifted out of her lane on a curve and side swiped me with her side-view mirror. I was on my way back from a lunch break, and I knew I would be late if I stopped, so I was tempted not to...but I realized I had to stop. So I pulled over, and the sedan pulled over too. I wasn't sure what to do first, so I called my insurance agent.
 "Dad, I've just been in an accident. I'm fine, its nothing serious. What do I do?"
My agent asked me if it looked like over $500 worth of damage-pssh, I didn't know! It was just a scratch and small dent, surely it couldn't cost over $500(which was my deductible). It ended up costing well over $1500 to fix the damage. Anyway, I didn't call the police, but the lady and I exchanged information, and because it was her fault, we filed on her insurance. Long story short, I got my car fixed, but I made a few mistakes that could have cost me a lot of money if the other driver hadn't been honest. Thank goodness there are still many honest people out there!

So, for those of you have not been in an accident before, let's go over the proper steps to handling an accident.


#1 Check for injuries. Make sure you and the other driver are ok, as well as any passengers.Call emergency services if needed.

#2 Call the police to report the accident. Whether the damage is serious or not, go ahead and have a police officer come down to take statements. Having official statements taken will ensure that the other driver can't change their story later to avoid having their insurance pay for damages, and it will be much easier for the adjuster to determine fault. They officer can also take official witness statements, if there are any. The statements also shows evidence of a loss.

#3 Take photos of the damage. Your adjuster will take photos, but if you have your own photos, you can be sure the adjuster didn't miss anything, and you will have your own personal records of the damage. Take pictures of the license plates too.Go ahead and take pictures while you are on the scene.You never know when that might be helpful.

#4 Report the claim to the insurance company. Most have a specific 800 number available 24/7 that you should report the claim to. Your agent can give you the claims number if you don't have it. Report the claim as soon as reasonably possible.

 #5 Get an inspection and estimate of the damages. Your insurance company will send an adjuster to take photos of the damage and give you an estimate on the cost of repairs. You can get your own estimates from a shop for comparison. Your insurance company may recommend a specific body shop, but you are not obligated to use that shop. You can use whichever shop you would like to.

#6 Work with an adjuster.The adjuster will analyze the information-the damage to your vehicle, accident/police reports and any witness statements- to determine which driver was at fault and what will be covered by the policy. Your insurance company may have a way for you to check your claim status online and view documents, or you can contact the adjuster to review the claim status.

#7 Get your vehicle repaired.As soon as the claim is filed and coverage is figured out, the adjuster will guide you through the steps to getting your car repaired. You will need to pay your deductible, if any, to the body shop before the insurance company will pay for anything.  Then you simply drop off your vehicle to the body shop and-wallah! You've finished the process.

Avoiding Independence Day Claims

Happy Independence Day! The 4th of July is one of the most fun holidays we celebrate in the United States. Many of us will be attending or hosting cookouts and maybe enjoying some fireworks. Both when I worked for an optometrist, and now working in insurance, staff members like to talk about
what sort of claims or problems will arise from typical holiday activities. Today I am going to list a couple of the potential Independence Day hazards, and offer some tips to avoid ruining a great holiday.

Issue: Car Accidents

#1 Put down your cell phone and pay attention to the road. There will be lots of drivers on the road because most everyone is off work and out of school. More drivers on the road increases the chances of an accident, so you will need to be alert and aware. Pull over to take a phone call, and wait until you're parked to check and answer text messages.

#2 Keep the noise level and frivolity in the car down to minimum. Many drivers, especially young drivers, get into accidents when driving with a car full of people. If you are the driver, stay focused on the road! If you are the passengers, try to create an environment conducive to driving safely. Don't try to show the driver pictures or videos on your phone etc. 

#3 DON'T DRINK AND DRIVE. This includes operating boats and jet skis!Many of our 4th of July cookouts will involve coolers full of beer etc. Be responsible. If you know you are going to be driving, stay on the safe side and completely avoid alcohol. Have a soda! I promise it won't ruin your good time. 

Issue: Home Fireworks Accidents

First of all, as an insurance agent, I would like to advise against any illegal fireworks. In North Carolina, illegal fireworks include:
-firecrackers
-ground spinners
-roman candles
-bottle rockets
-mortars
-and anything that spins, leaves the ground, or flies through the air.

Any damage to yourself, others, or your property while using illegal fireworks will not be covered under insurance. Your homeowners' won't cover it, and if your health insurance company finds out, they won't pay any claims either. Insurance will not pay on anything that happens while doing something illegal. Just a little thought for those of you buying fireworks in another state and bringing them home to NC for the 4th.

Legal fireworks include:sparklers,shower fountains, and novelty fireworks that do not explode(snaps, pops, and glow worms). For a complete view of NC's Statutes on fireworks, click here.

A few Saftey Tips on Fireworks:
#1 Read the labels on anything you are using and follow instructions carefully. You want to know what to expect out of the firework before lighting it.
#2 A repeat. ALCOHOL AND FIREWORKS DO NOT MIX WELL. If you have had a few beers, ask someone that has abstained to be in charge of lighting fireworks. Many an accident has happened by mixing drunkenness and pyrotechnics.
#3 Wear Safety Glasses. You only get one set of working eyeballs in this life, please don't ruin your life.
#4 Never Relight a Dud firework. If it doesn't go off, soak the firework in water and discard.
#5 Light Fireworks one at a time. You're not a professional, you don't have professional equipment, so don't try to put on a finale like a professional.

For more fireworks safety tips, click here. I would recommend braving the crowds and watching fireworks done by professionals at an event.

In general folks, lets enjoy Independence Day like our forefathers intended:like civilized people. Enjoy your family and friends, have fun without completely letting go of your good sense, and follow the rules. Do I sound stuffy and boring? Well, I am an insurance agent. Stuff-And-Boring is my middle name.

Can I still Enroll in Health Insurance?

Right now, no one can enroll in health insurance through the marketplace and receive a subsidy...unless

A) You are turning 26 years old this year
If you are turning 26 this year then you are aging off your parent's insurance(if you haven't already purchased your own health insurance plan). Aging off a parent's plan is a Qualifying Life Event. Within 60 days of this event, you can enroll in a health insurance plan of your choice through the Marketplace, and receive a subsidy if you qualify.

B)You are Getting Married this year
If you are taking the plunge into matrimony(CONGRATS!!), then you and your fiance can and should be shopping for health insurance. Engaged, but your date is set for next year? You may want to consider pushing up the date if you don't have health insurance, or want to change your health plan.

C)You are Having a Baby
If you are having a baby this year, you can and should be shopping for a health insurance plan. You can see what your premium will be with the little one added on. When I added my daughter to the group plan I used to be on, I was shocked at the increase in premium-better check out your options! You may NOW qualify for a subsidy that you didn't before. Dependents make a big difference! Oh, and call me-we need to talk about life insurance too.

D)You are Losing Group Coverage(I.E. Losing your Job)
If you are losing your job, you are probably panicking about how you are going to be able to get affordable health insurance. Don't worry! Group insurance is NOT always cheaper than individual insurance! Plus, your income has now changed, and you may be eligible for a subsidy now. You have an alternate to COBRA that may be much more affordable.

E)And Speaking of COBRA...
COBRA lasts for 18 months, and once COBRA has ended, you have to start shopping for health insurance. Losing COBRA is another Qualifying Life Event, and you can go to the Marketplace and pick a new health insurance plan.

F)You are Getting Divorced
If you are getting a divorce, then your income could be changing and your tax filing status is changing. You are eligible to go to the Marketplace and shop for a new health insurance plan.

G)You are Getting a New Job
If you are starting a new job, you can shop for an insurance plan on the Marketplace too. Your new job may not offer group coverage, and even if it does, you usually have a waiting period before you are eligible for group coverage. Also, your income is changing once again, so you can adjust your estimated income for the next year and get a new list of plans and rates.

H)You are Moving To a new Zipcode
Because different plans are available in different areas, moving to a new zipcode enables you to apply for health insurance on the Marketplace. If you didn't sign up for health insurance this year, or if you want to change plans, moving to a new zipcode may be a feasible option for you.

I)You are Becoming a US Citizen
Newly Naturalized? You are now eligible for health insurance on the Marketplace.

All of these Qualifying Life Events give you a 60 day window in which to shop around and enroll in health insurance, and possibly qualify for a subsidy. We are available to help you select a plan that covers what you need, and fits into your budget(hopefully!). We work with Blue Cross an Blue Shield, which sells plans on the Marketplace, and we can help you find out if you qualify for a subsidy. Call our office(336-342-4438), or email me!

Why Do I Need Pet Health Insurance?

I remember the day I went to get my Brittany Spaniel puppy, Landon. Poor Landon got carsick on the way home and threw up several times in the back of our Taurus Station Wagon. We had everything ready for him at home-a kennel, a collar, a leash, food, bowls, brushes, and toys. I thought I was ready for the responsibility. As much as I loved that dog, I had not realized just how much time I was not at home(I was in high school and playing sports) and the rest of my family was just as busy. Landon needed a lot of exercise because he was bred to be a hunting dog, and I just wasn't home enough to give him all the attention and stimulation he needed. He developed some destructive habits because he was wound up and bored. Landon eventually went to a new home on a big farm with another Brittany Spaniel, and I believe he is a happy dog to this day.

Taking on a dog or a cat is a big responsibility and will change your life in big and small ways. They become a part of your family, and you do your best to take care of them. Unfortunately, dogs and cats are susceptible to many health issues just as we are, and they almost always happen unexpectedly. From small incidents, like your dog ingesting something that makes him sick, or a urinary tract infection, to major illnesses like cancer-you will inevitably end up at the veterinarian's office for something or another.  Vet bills are starting to look more like your bills from your doctor. Procedures can costs hundreds up to thousands of dollars. A lot of times this puts a pet's family in a very difficult situation. Not everyone can afford to pay thousands of dollars on treatments for their beloved dog or cat.

This is why pet health insurance is essential when you have a furry family member. Pet insurance can help you afford the procedures, treatments, and medications your pet needs when they are diagnosed with an illness or have an accident.The policy can cover genetic and chronic illnesses, as well as imaging, specialist treatments and alternative therapies. It will also pay on minor issues, like ear infections or having a tooth pulled. Pet insurance companies typicially will not cover pre-existing conditions, so this is not something you buy after you find out that your pet has cancer.  Pet health insurance is best purchased when you first bring home your new dog or cat. The younger your dog or cat is when you purchase a policy, the lower the rate, and the rate doesn't increase as they get older.

No one wants to be faced with the decision of whether to come up with money for an expensive procedure, or to have their pet euthanized. With a pet insurance plan, a dedicated pet parent can have peace of mind, knowing they are truly prepared(unlike me when I brought Landon home) to take care of your dog or cat, no matter what happens.

For more information on pet insurance, and to get a quote for insurance for your furry family member, go to KeepYourPetCovered.com.

The Black Hole in North Carolina's Affordable Healthcare System

North Carolina is one of the many states that did not accept funding from the federal government to expand our medicaid program. Expanding the medicaid program would have broadened the qualifying income levels so that more people would be eligible for free health insurance. North Carolina opted out of this because the funding was only guaranteed for 3 years, and then NC would have to either fund the expanded program itself, or drop those people off the program. NC has had trouble funding the state medicaid system in the past, and the idea of trying to come up with the funds to support an expanded program seemed like a terrible idea.

The problem now is that we have what I have named,  the "Black Hole" in our healthcare system in North Carolina. There is this big void between medicaid eligibility and qualifying for a federal subsidy on the Exchange.

If you are single(file as single on your tax return) and are not on disability or of Medicare age, you are not eligible for medicaid. If a single person make less than $12,000 a year, then they do not qualify for a subsidy on the Federal Exchange. It doesn't matter how old you are, unless you are eligible for Medicare, in which case you won't be purchasing insurance on the Exchange.

Earlier this year I had a man come into the office to get a quote for health insurance. He was 62, so he was not old enough for Medicare, he had no dependents, and was not legally disabled. He had some health problems, and he only worked sporadically. He brought in his tax forms from the year before showing that his total annual income was $1,800. He received food stamps, and that's what he lived on. I was incredulous that this could be the only money he had made. I questioned his daughter, who was with him, about whether she paid for more than 50% of his bills(therefore qualifying him as a dependent on her taxes), but she insisted that she did not, that $1,800 was what he lived on. In this situation, if $1,800 was truly all of his income...there was nothing I could do for them. This man did not qualify for medicaid because he was single, and did not qualify for a subsidy because he made too little money. The monthly rate for this man would have been $400-$500 a month for health insurance, which he clearly could not afford.

Fortunately, there is a a Free Clinic in  Rockingham County that can assist this man on a basic level. A person can qualify to go to the Free Clinic if they have no health insurance(no Medicaid or Medicare), if they are a local resident, and if their income falls within Federal Poverty Guidelines. Their services are limited, but they are wonderful people that do anything and everything they can to get help for their patients.

I was pretty humbled by this man's situation. I personally feel I pay too much for health insurance for my daughter and I, but I realize now that I should be grateful for my situation because there are some people that can't afford health insurance at all. Health Insurance in the next couple of years will get only more chaotic if the Supreme Court decides that states without their own exchange cannot access the federal subsidies that residents are currently getting. While I do not want to offer my personal opinions on the Affordable Care Act, I am eager to see the chaos die down so that people will feel more secure about their health insurance.

Open Enrollment for 2016 will begin November 1st and end January 31st. If you have questions about how to navigate health insurance in the coming year, call our office(336-342-4438) for a quote or contact me by email. We work with Blue Cross and Blue Shield, Humana, and Assurant Healthcare, as well as Medicare Supplement plans.

Planning and Paying for a Funeral

The number one thing that an insurance agent will bring up as a reason to purchase Life Insurance is the cost of your funeral.Both because I am only 25, and because thankfully I have not had any of my immediate family members pass away, I have never had to plan and execute a funeral. I have realized that many people have never had to be involved in planning a funeral, and therefore would not know how much it costs and what kinds of decisions have to be made at that difficult time. I did a little research and I wanted to share what I learned: Planning a funeral sounds awful, and I plan to write into my will that I want to be immediately cremated with no frills or viewing. I'm sorry for those who want to pay their respects to my embalmed corpse, but I would rather spare my family the effort in planning a "traditional" funeral. With that said, let's go over the List of Funeral Fees and Options.

First, there are the basic services fees, fees that can't really be avoided. These fees include paying a funeral home to plan the funeral, permits to hold a funeral at a cemetery, copies of death certificates, preparing notices for the funeral, sheltering the remains(its kind of like renting a bed at the morgue), and coordinating the funeral with the cemetery or crematory. Theses fees are generally lumped together on your invoice as one fee.

Second, there are fees related more specifically to the funeral. These other services include transporting the body from where they passed away to the funeral home and then to the grave site. Embalming is done to preserve the body, but it is not a requirement unless you plan on doing a viewing or visitation. If you do an immediate burial then sometimes you can avoid the embalming if you wish. If you are having a viewing or memorial service at the funeral home, then there will be fees to rent the facility. Any staff or equipment(like a tent and chairs) used for the funeral or graveside service will appear on your invoice also. You will also pay for a hearse to carry the body and for the family ride a limousine. One of the more obvious charges related to a funeral is the casket. The average cost of a casket is a little over $2000 depending on the materials. The cheaper caskets are made of pine, and they are soft and will break down more quickly. More expensive casts are designed to preserve the body longer and are more ornate. Caskets can cost upwards of $10,000 depending on what the family chooses. Something I learned while doing this research was about the outer burial container, or grave liner. While the law may not require you to bury the casket in a cement grave liner, most cemeteries will require a grave liner so that the ground will not cave in and sink around the body as the casket breaks down. Another, more expensive option is a grave vault in which the casket is entirely encased in cement or another material. While we are at it, if you don't already own a plot of land for the body to be buried in, then you will have to pay for that, and a headstone to cap it off. If you choose to have to have the body cremated rather than buried intact, you will be billed for the cremation. Again, a funeral home usually packages these sorts of services together, but you can obtain some of these things, like a casket, from a third party seller. It is possible to find a cheaper casket or grave liner elsewhere, and the funeral home will be required to use those things without any additional fee.

Other things that the funeral home can handle for you are things like flowers, obituary notices, hiring pallbearers, a clergyman to officiate the service, and organists and/or soloists to perform at the service. These services are labeled as "cash advances" because they are purchased from outside vendors for you. Some funeral homes charge you exactly what they pay for theses services, but some may charge service fees for arranging the services.

If you were ignorant of all that goes into a funeral, like me, then you are probably as shocked as I was at all that goes into planning and executing a funeral. Fortunately, funeral homes are used to these things and they do package everything together so that you don't have to make every little decision while you are coping with the loss of your loved one. At the same time, though, it seems like you probably could get a lot of unnecessary services in those packages. Funeral homes, after all, are businesses. It's easier for me to understand now why funerals can cost well over $10,000. Based on this (for me) new information, life insurance is an absolute necessity. No one wants their family to go into debt just to pay for a funeral, on top of any other debts and bills you may leave behind at your departure. I strongly encourage everyone to evaluate whether you can afford NOT to have a life insurance policy in force. The younger you are when you purchase, the lower you can lock in your rate, and you will gain comfort of knowing that, should something happen, your loved ones will not have to wonder how they are going to pay for the funeral. They can skip the terrible task of itemizing every little detail involved in a burial. Let them take advantage of the services that funeral homes offer without digging through the invoice to save every penny, by leaving them the money to fall back on. If you would like to talk to Dan Zeller about your options for life insurance, give us a call at 336-342-4438.

10 Dogs that Can Affect your Homeowner's Insurance

Bentley, American Bulldog I took care of for several months.

I am a dog lover, though I do not own any pets, and I know a little more about dogs than your average person. I know a little more because I spent much of my childhood reading books about dogs and attending American Kennel Club events. At one point, I was sure I would be a show dog breeder as an adult. I want to preface this article by letting the world know that I love dogs, and that I know individual dogs in many of these "dangerous breed" categories that are sweet, loving dogs. However, I do want people that own any of these breeds, or that are considering getting a new puppy that may fall into these categories, to weigh their choice in dogs carefully because it can and will affect your ability to get or keep homeowners insurance.

Here is a short list of dogs that can cause an insurance company to deny you homeowner's coverage:

1. Pitt Bulls- Every company that I checked into exclude pitt bull owner's from coverage, or have much higher rates. This includes American Pitt Bull Terriers and American Staffordshire Terriers.
2. Rottweilers

Cane Corso

3.Dobermans
4.Chow Chows
5. Wolf Hybrids
6. German Shepherds
7. Akitas
8. American Bull Dogs
9. Cane Corsos

10. Presa Canarios

Furthermore, some companies will deny coverage if your dog is a mix that includes any of these breeds, especially if it strongly favors one of these in appearance.

The reason that insurance companies are so cautious about dogs in homeowner's insurance is because of liability. If your dog bites someone, it can be claimed on your homeowner's insurance. According to the Insurance Information Institute, the nationwide average payout on a dog bite claim was $32,072 per claim in 2014. Also, dog bites account for one third of all homeowner's liability claims.(see their article on dog bite liability) The risk to insurance companies for dog breeds that have histories of aggression is too high for them to take on.

Presa Canarios

Now I know it sounds like all these dogs are getting a bad rap, but here is some good news: Some Insurance companies will consider a dog associated with these breeds if they have achieved a certification that shows they are non-aggressive and well-trained. One such award is the AKC's Canine Good Citizen Award, which encourages responsible dog ownership and well-behaved pooches. Both purebred and mix breed dogs can receive this award, and it may be the difference in affordable homeowner's insurance and through the roof rates. You can find more information about the AKC's Good Citizen Award here.

The list I have provided today is not a complete list of all dog breeds that can cause an insurance company to refuse to write homeowner's insurance, but these are the most prevalent in the lists that I have looked through. I do want to encourage all dog owners to take responsibility for your dog and be sure they are well socialized, well behaved doggies. I would love to meet your dogs, and my one-year-old would love to stand about a foot away from them and squeal with excitement. Let us quote your homeowner's insurance! We have very competitive rates and lots of experience. Call us at 336-342-4438, or email me for more information!

Why Stay-At-Home Parents need Life Insurance

Too often in our society we harbor in our minds the mistaken idea that a stay at home parent has no economic value to a family and are often overlooked for life insurance.  Life insurance is purchased to protect an individual or family from the economic losses incurred from the death of a family member. Loss of a stay at home parent changes an entire family's life in a multitude of aspects. Aside from the change in family dynamic, there are a number of costs that may be involved in the death of a stay at home parent. 

1. Funeral costs alone are a good reason to have a life insurance policy. Generally ranging from 5,000 to 15,0000 dollars depending on the desires of the family, a funeral is enough to put an already emotionally suffering family in financial crisis.  

2. Along with funeral costs, medical expenses incurred from a fatal accident or illness can cripple family finances. Deductibles and copayments are a known factor, but if there was a long-term hospital stay, then lodging and travel costs can pile up while helping to tend to a dying loved one. 

3. Stay-at-home parents contribute to family finances by being the primary caretaker for their children every day. Upon his or her death, child care will be a new expense to the family. Daycare's or Nanny's can charge well over $600 a month per child. A life insurance pay-out can help manage this cost at least temporarily until the family's budget/situation has been reassessed. 

4. Stay-at-home moms or dads usually take care of all the household cleaning and meal preparation. If they die, it is difficult for the spouse left behind to be able to work full time and maintain the household as well. They may need to hire someone to help them maintain cleanliness in the home. 

5. Tutoring or emotional counseling may be desired for children of a deceased stay at home parent. Often the parent at home will help their children with homework and studying. Aside from not having that person there to help them with school work, children can, understandably, have a very hard time adjusting to the loss of a parent. Progress in school and many other aspects of their life can suffer due to grief and depression. It may be necessary to seek professional help for surviving children either emotionally, or academically.  

Aside from the death of a stay-at-home parent, with role changes occurring at various times, the stay-at-home parent may become the outside the home earner at any time. By purchasing the life insurance at the earliest possible age, a better rate can be locked in for either term or permanent coverage. The loss of a stay-at-home parent presents its own unique challenges, and with that there are unique reasons for that individual to have a life insurance policy. The death of any loved-one is tragic, but none have more impact financially or emotionally than the stay-at-home mom or dad.