A closer look at a claims reserve

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Delos H. Yancey has a passion for helping senior citizens during retirement, and he does so through his company, State Mutual Insurance. He believes that above all, knowledge of insurance and everything surrounding it is key.

On that note, here’s a topic Mr. Yancey has touched on a few times before – claims reserve, also known as a balance sheet reserve.

A claims reserve by definition is funds an insurance company has kept to be used in the future. This money is often used to settle claims that have yet to be settled. On balance sheets, claims reserves are viewed as a liability, but in reality, they are more akin to a safety net.

Claims reserves exist because of the extended amount of time it typically takes to process a claim, and because claims have to be covered. Policyholders usually receive money from claims reserves.

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 On the flip side, claims reserves come from premiums, which can be a burden to policyholders in the form of payment obligations. However, insurance companies do all they can to balance the amount charged from policyholders with history and the current market as factors. Insurance companies generally shoulder the cost in the event of an unforeseen occurrence such as an accident. This is why claims reserves are set aside.

For Delos H. Yancey of State Mutual Insurance, claims reserves are a way for insurance companies to settle what they owe policyholders in the future.

Led by Delos H. Yancey III, State Mutual Insurance helps older Americans maintain a sense of security through products designed specifically for their benefit. For more information on State Mutual Insurance, visit its official website.

A walkthrough on the factors that affect health insurance premium

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Health insurance is the most necessary protection plan when one decides to buy an insurance protection for oneself and family members. To save oneself from financial trouble emerging from health issues or emergency in the future, it’s important to purchase a best-rated health insurance plan.

Before buying a health insurance plan, one must always compare the cost and benefits offered by different insurers. Playing a critical role in the purchasing process of family health insurance, premium amounts are affected by a number of factors. One’s premium amount is less if purchased at a young age. It is the most decisive factor that has an impact on the cost of a premium. Location also affects one’s premium rate; people who live in metropolitan cities are more prone to health issues, with medical costs being more expensive in such areas. 

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Family size matters, and the family floater sum assured is extended to one family including spouse and children. While the cost incurred in purchasing a family floater does not break the bank, a family of four will have to pay a higher premium amount compared to a family of two.

Gender plays a role in health insurance premiums, and women are charged more by insurers, as they believe that women use more pharmaceuticals, see the doctor more often, and are more vulnerable to chronic illnesses. In addition, pregnancy is factored in the premium. Family medical history may be used as justification for higher health insurance premiums. The nature of one’s work also plays a role in affecting premium amounts, especially for jobs involving high injury rates, hazardous chemicals, international business travel, and others.

Delos H. Yancey III is the president and CEO of State Mutual Insurance, a legal reserve mutual insurer headquartered in Rome, Georgia. For more information about the company and its work, head over to this website.

The importance of travel insurance

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Travel insurance is often overlooked, especially when vacationers or backpackers get too caught up on costs and other travel-related expenses. There are many advantages to getting a travel insurance policy before setting off on a vacation. Below are some of them.

It covers you against travel risks. A good travel insurance will spare you from going crazy when situations such as lost or stolen luggage, flight cancellations, and unexpected hospital visits happen while you travel. It will give you peace of mind and, more importantly, a stress-free vacation.

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It gives you health coverage in remote areas. If you consider yourself as an offbeat traveler, you will find yourself in remote areas with limited medical facilities. In case you suffer from a sudden illness or get into an accident in a remote area, your travel insurance will ensure your recovery no matter where you are, even if it means getting you airlifted or shuttled.

It gives you peace of mind in terms of personal liability. In case you find yourself in a legal dispute while traveling or battling losses against unforeseen eventualities, a travel insurance can cover you. It keeps you from any worry as you hop from one place to another, as well as ensures a hassle-free (and charge-free) holiday.

State Mutual Insurance has been in business for over 75 years. A legal reserve mutual insurer, the company does not have stockholders, but is run for the benefit of and owned by its policyholders. In recent years, it has been helping older Americans maintain a sense of security with products designed specifically for their benefit. State Mutual’s current primary product is Medicare Supplement Insurance. For more information, visit the company’s website.

A walkthrough on the factors that affect health insurance premium

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Health insurance is the most necessary protection plan when one decides to buy an insurance protection for oneself and family members. To save oneself from financial trouble emerging from health issues or emergency in the future, it’s important to purchase a best-rated health insurance plan.

Before buying a health insurance plan, one must always compare the cost and benefits offered by different insurers. Playing a critical role in the purchasing process of family health insurance, premium amounts are affected by a number of factors. One’s premium amount is less if purchased at a young age. It is the most decisive factor that has an impact on the cost of a premium. Location also affects one’s premium rate; people who live in metropolitan cities are more prone to health issues, with medical costs being more expensive in such areas.

Family size matters, and the family floater sum assured is extended to one family including spouse and children. While the cost incurred in purchasing a family floater does not break the bank, a family of four will have to pay a higher premium amount compared to a family of two.

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Gender plays a role in health insurance premiums, and women are charged more by insurers, as they believe that women use more pharmaceuticals, see the doctor more often, and are more vulnerable to chronic illnesses. In addition, pregnancy is factored in the premium. Family medical history may be used as justification for higher health insurance premiums. The nature of one’s work also plays a role in affecting premium amounts, especially for jobs involving high injury rates, hazardous chemicals, international business travel, and others.

Delos H. Yancey III is the president and CEO of State Mutual Insurance, a legal reserve mutual insurer headquartered in Rome, Georgia. For more information about the company and its work, head over to this website.

How to maximize MediGap insurance

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Also known as MediGap, Medicare supplement insurance helps take the costs not included in the coverage provided by original Medicare. Taken together, the two policies can help pay for a broad assortment of medical bills and reduce the amount of out-of-pocket medical expenditures. For many older adults, MediGap insurance is an excellent investment, providing the coverage necessary to prevent surprise hospitalization expenses.

Medicare supplement insurance coverage, however, can vary broadly. It is also important to remember that MediGap insurance cannot cover long-term care costs, nor can it pay for dental care, vision care, and, in many cases, prescription drugs. Moreover, MediGap coverage is individual; for your spouse to be covered, you would need to buy one.

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Many companies offer a basic package of MediGap insurance policies that come in lettered plans. Despite differences in other individual offerings, which vary by the company, each type of lettered plan has a mandated set of fixed benefits that are uniform throughout multiple states, with few exceptions. MediGap providers in Massachusetts, Minnesota, or Wisconsin are subject to different governing laws.

Some standard plans (E, H, I, and J) can no longer be purchased by new subscribers, and the previous standard plan of choice in the past few years, Plan F, is being discontinued in 2019. In the past, many people have preferred MediGap Plan F because of its comprehensive coverage; Plan G is a recommended alternative that offers similar coverage.

For individuals under original Medicare, the best times to acquire MediGap insurance are within at least a day after one’s 65th birthday or up to six months of signing up for Medicare Plan B. This would allow them to guarantee their coverage and purchase it at the best price available.

Delos H. Yancey is the CEO of State Mutual insurance, which provides coverage for policyholders across 44 states and the District of Columbia. Visit his company’s website for more on its policies.

Key moments when you should update your life insurance policy

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A lot of people tend to forget to update their insurance policies. It’s easy to regard life insurance as just one of your monthly bills. Changes in premiums happen all the time, and it’s not often that these are explained to us. However, certain life changes mean you have to revisit your insurance policy. Here are some key moments in life that should trigger a call to your insurance agent.

You are getting married or getting a divorce: If you are gaining or losing a dependent, you need to update your insurance policy. Not doing so could either not include them into your plan or you’ll be paying a higher premium for a person you are no longer with.

You have children: If you’re not planning on getting a separate insurance plan for your children, you may want to include them in yours. Increasing your coverage is just one of the many options that is readily available to you. Such changes can help secure your children’s financial future, help them later on with education expenses, or simply see to it that they are honored part of your estate if the unthinkable occurs.

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You got a new job: Depending on which way your salary went, you need to revisit your insurance policies. It could be possible to be burdened with an insurance premium that’s too expensive for your new job. At the same time, upgrading your coverage is a good choice if you got a significant pay increase.

You finally retired: For people who are part of a group life insurance policy through an employer, retiring would mean losing the coverage. Now that you’re relying on insurance as your income adjusting it according to your lifestyle is necessary.

Delos H. Yancey III is the chairman, president, and CEO of State Mutual Insurance. He is a Certified Financial Examiner, a Certified Insurance Examiner, and a fellow of the LIMRA Leadership Institute. Visit his company's website for more on its services and history.

Top mistakes for first-time life insurance buyers

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Getting life insurance is a major milestone for any adult. It gives you peace of mind and is a great way to invest on your future retirement. However, given the importance of getting insurance, there are still people who make mistakes when enrolling for a plan for the first time. These mistakes could mean paying a higher premium for unwanted or unnecessary coverage. Here are some of the top mistakes first-time life insurance buyers make.

One of the biggest mistakes one could make is buying life insurance offered to them by family members or friends. You may trust them with your life and their intentions may be good, but getting the same insurance as people close to you or offered by family and friends without knowing all the terms might not give you what you need later on.

Another major mistake is getting swept away by the terms without actually thinking if the coverage fits your situation. The best insurance plans take into consideration a person’s needs, wants, and a budget they are comfortable with. Not being able to pay monthly premiums could ruin this long-term commitment.

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Making all beneficiaries primary beneficiaries is also a common mistake. This can have major consequences as primary beneficiaries receive both benefits of your insurance policy and the burden of paying debts. If primary beneficiaries are not appointed properly, your insurance benefits could be divided unevenly and cause trouble for those you will leave behind.

Lastly, failing to update insurance plans occurs often. When new health-related issues arise, your insurance may not cover it. When these situations occur, refer back to your plan or your insurance provider.

Delos H. Yancey III is the chairman, president, and CEO of State Mutual Insurance. He is a Certified Financial Examiner, a Certified Insurance Examiner, and a fellow of the LIMRA Leadership Institute. Visit his company's website for more on information regarding services and its history.