Baker Consulting Services Inc

Nowadays, life insurance has become a critical component of financial planning. It gives peace of mind to you and your loved ones and provides them with financial protection if the worst occurs. While considering which life insurance policy to obtain, you need to consider various aspects to look into details. To make the right decision, we want to highlight one of the implicit benefits of some policies you can borrow money from your life insurance. This option offers you a convenient and low-cost source of funding that you can rely on in different situations.Types of life insurance you can borrow fromThere are two main types of life insurance  permanent and term. However, if youre looking for a financial backup plan whole life or universal life insurance, also known as a permanent policy, is your way to go.  There is no cash value with term life insurance, which many people find a more affordable and practical option. It is only intended to last for a short time, typically between five and thirty years.The cost of whole life and universal life insurance plans is higher than term insurance, but they do not have a set expiration date. The policy is in effect for the insured persons entire lifetime if necessary premiums are paid. Although the monthly premiums are more expensive than the term, a cash value account that is an element of the policy grows as more money is deposited into it than the cost of insurance. It usually takes a few years for the cash value to increase to a point where borrowing from life insurance is reasonable. The cash value is a buffer against the escalating insurance costs as you age. This keeps rates stable throughout your life and prevents them from rising to unaffordable levels in your older years.Can you use life insurance while alive?One of its key benefits is the ability to use permanent life insurance while still alive. A type of permanent insurance known as whole and universal life insurance offers lasting protection in addition to a cash value component. And also you can take benefit from it during your life for various purposes.Key takeawaysThe fact that taking out a loan against your life insurance policy wont harm your credit rating or put your assets at risk is another great benefit. As a result, you can access your policys cash value without worrying about how it will affect your credit or other investments.You are not required to repay the loan as long as you live. This can give you peace of mind and the flexibility to use the money as you see fit.Whole life insurance policies have several tax benefits that make them a desirable investment choice. For instance, you do not pay taxes on the interest earned unless you withdraw the money. As the insurances cash value grows tax-deferred. Additionally, your beneficiaries obtain the death benefit tax-free, which might lead to significant tax savings.How Soon Can You Borrow Against a Life Insurance Policy?Once a life insurance policy has built up enough cash value to allow you to take out a loan in the amount needed, you can borrow against it. Depending on how your policy is set up, this may take several years to accumulate. How Much Can You Borrow Against Your Life Insurance Policy?The maximum you can borrow against your life insurance is generally up to 90% of its cash value. However, each insurance company will have different standards in place.Can I Borrow Against a Term Life Policy?There is nothing to borrow because term insurance doesnt include a cash value component. Nevertheless, its crucial to maintain the condition of your policy.  To keep the coverage in effect, pay your premiums on time. If you default on your loan payments, the policy might lapse. In this case, the death benefit could be reduced or lost entirely.Working with a competent insurance broker is essential if you want to get the most out of your life insurance coverage. At Baker Consulting, we can assist you in understanding many aspects of life insurance options available and suggest one that best suits your requirements. Additionally, we may guide you in the following:- comparing different policies- negotiating the best prices - offering continuous guidance and support as your needs change over time.Regardless of what happens, remain financially secure and prepared.

You can, but should you?Theres a dark stain over the insurance industry for consumers searching for quotes online. Families and individuals are aware they need to carry health and life protection but dread entering their information online, consequently experiencing the bombardment of phone calls that follow. Its so bad some people would instead go without coverage than speak with a broker over the phone. When in reality, all it takes is working smarter, not harder.Some people will advise you to buy your own auto, home, health, life, or any other insurance. They will tell you horror stories about the number of calls youll receive if you submit information online. They will present a convincing argument, and youll be tempted to accept their advice. I urge you to resist that temptation.Its no surprise that many people are turning to self quoting websites and applications. The appeal is undeniable. Theres nothing inherently wrong about this approach, and it does save the consumer the headache of having to speak to countless agents. However, should you buy insurance without speaking to a licensed broker? Its fine to quote yourself and see whats out there in terms of options, but then proceeding to purchase that insurance without educational guidance is extremely risky for the consumer. When you use past experiences, personal knowledge, and stories heard from friends to make an informed decision on your insurance; the result tends to be medical debt or bankruptcy.A licensed agent or broker has a fiduciary responsibility to you. They are mandated by state and federal law to undergo licensed certification. While you may not have had pleasant experiences in the past, having a broker perform a needs analysis to personalize the policy is a better alternative. Just like any other profession, some paid attention during class, and others did not. It isnt appropriate to blanket statement all insurance brokers as untrustworthy.Heres your solution to avoid entering your information online. Instead, reach out to family members and friends. Ask them whom they use for their insurance needs and their experience with their broker. If you cant find a family or friend who uses a local agent or broker; reach out to colleagues and people within your circle of influence for guidance. By doing so, you are acquiring a real person who is aware of your personal needs and whom others trust. Its an ideal win-win situation between a trusted broker and client. You leave feeling confident in your policy because you are informed, and youve supported a local small business owner and their family. It may not be the fastest solution, but should it?When the world is more efficient, were all happy. Quicker load times, faster test results, high-speed internet. The need for convenience and expedience permeates everything we do. Theres relief in knowing you can quote and compare prices without receiving dozens of calls.However, when you go to purchase your insurance slow down, consult a professional, ask questions, and then fill out your application with the knowledge youre protected and supported.

Pennie is Pennsylvanias insurance marketplace and provides individuals and families with the ability to shop for high-quality health care plans and easily apply for financial assistance. All PA residents who are citizens, U.S. nationals, or have a qualified immigration status can apply and enroll in health coverage through Pennie. In order to apply for Pennie, it is helpful to have an insurance broker who understands your needs.  One of the key advantages of working with a broker is their in-depth knowledge of the Pennie Marketplace. This guidance empowers individuals and families to choose a plan the balances cost and coverage.  It can be complex and overwhelming, but having a broker simplifies the process.Health Insurance and Medicare broker services are always free.    Editors Note:  This article was submitted by Lukas Baker, Independent Health Insurance Broker, Baker Consulting Services, Inc.  The phone no. is 724-594-7648, or visit their website at www.consultbaker.com.

Health insurance jargon can be the hardest to understand for consumers. Thats why you have a broker who goes to work for you and explains your policy options with clarity. However, not all brokers work ethically. You may not have an insurance broker who values you and may not elaborate on your policy limitations. The omission of these limits is illegal and should result in the termination of that broker. In contrast, the insured typically doesnt take legal action, and the broker makes his or her desired commission.This is not to say that all health insurance brokers operate in this zone of immorality. Just as with any profession, there are good and rotten eggs. Your moral compass and ability to judge a persons intention is a significant factor people can typically smell a sleazy salesperson. Below, are the most common limitations obscurely mentioned in health insurance policies. This information should adequately equip you for when you are asking questions of your broker.Heres a screenshot from the summary of the benefits of an insurance carriers product:*Note these limitations do not exist in all policies. Ask your broker.The list of benefits above is towards the end of the policy summary. Most people are interested in seven factors when it comes to their health insurance:Deductible/coinsurance/max out of pocket, doctor visits/specialists/urgent care, the network, prescription coverage, preventative/wellness coverage, emergency room fees, and ambulatory services. If your insurance broker goes over those seven things, this is how the policy would look and sound:Choice of $500-$10,000 deductible/max out of pocket (1 million in coverage)Choice of 70/30, 80/20, or 100/0 coinsuranceUnlimited $25 copay to doctor, specialist, and urgent carePHCS Network (PPO)$50 copay for annual wellness/preventative checkupER subject to deductible and coinsuranceAmbulatory services (above) $500 per transportMost people would agree that those seven things sound fantastic for health coverage. You have all your daily doctor needs taken care of and one million dollars in coverage, right? Wrong, let me show you a scary breakdown if you had an appendectomy while being covered by this policy.On average, the Fair Price for an Appendectomy lies somewhere between $7,000 and $25,000 (may vary due to zip code). If there are complications, it could be upwards of $35,000 or more. Heres a breakdown of the services and their estimated costs. You can always check on any surgery, and its price by visiting Healthcare Bluebook.Hospital Services for a 2-day admission, itll cost roughly $9,700.Physician Services the fee for procedure and routine postoperative care costs around $1,400.Anesthesia the price for an average surgery time of 1 hour and 15 minutes costs about $750.This cost adds up to the lower end of about $11,000 for an appendectomy. If you look above at the example policy, youll see that for the entire coverage term an appendectomy will be given a $2,500 coverage benefit. Even though your plan has a deductible, coinsurance, and max out of pocket; theres a specific limitation for appendicitis. With this knowledge, the insured will be left an $8,500 bill as an out of pocket expense! Keep in mind; these numbers are on the low end with no complications.Of course, its always better to have health insurance instead of going uninsured. With insurance, that remaining $8,500 for the appendectomy may negotiate to a lower bill. Policygenius.com does a great job explaining the functionality of network negotiated rates. Without insurance, you would be paying the almost full retail price for your medical surgery, which is a terrifying thought!

In todays rapidly evolving healthcare landscape, finding the right health insurance plan can be daunting. Fortunately, for residents of Pennsylvania, the Pennsylvania Health Exchange, commonly known as Pennie, offers a robust platform that simplifies the process and provides many benefits. In this comprehensive guide, well delve into the advantages of using Pennie for your health insurance needs and explain why reaching out to a local Pennie-certified broker is wise for securing your health and financial well-being.Understanding Pennie: A Gateway to Quality Healthcare1. **Customized Plans to Fit Your Needs**Pennie offers diverse health insurance plans, ensuring you find one tailored to your specific requirements. Whether youre a young professional seeking basic coverage or a family with specific medical needs, Pennie provides many options. These plans span from comprehensive coverage to more focused programs like dental and vision insurance.2. **Affordability and Financial Assistance**One of the most significant advantages of choosing Pennie is the potential for substantial cost savings. You can access premium subsidies and tax credits through the platform, significantly lowering your monthly premiums. Additionally, Pennie can connect you with Medicaid and CHIP programs if you qualify, further expanding your options for affordable coverage.3. **Transparency and Consumer-Friendly Interface**Pennies user-friendly interface is designed to make the enrollment process straightforward and intuitive. You can make informed decisions about your health coverage with clear explanations of plan details, costs, and benefits. The platform also allows you to compare plans side-by-side, empowering you to choose the best option for your unique situation.4. **Coverage for Pre-Existing Conditions**Thanks to the Affordable Care Act, Pennie ensures that individuals with pre-existing conditions cannot be denied coverage or charged exorbitant rates. This provides peace of mind for those with chronic health conditions, knowing they can access the care they need without financial hardship.5. **Access to a Network of Trusted Providers**Pennie works with a network of reputable insurance carriers and healthcare providers, ensuring that you have access to a wide range of doctors, specialists, and hospitals. This network spans Pennsylvania, giving you the flexibility to receive care where its most convenient.How to Get Started with Pennie: Connecting with a Local BrokerWhile Pennies platform is user-friendly, navigating the nuances of health insurance can still be complex. This is where a local Pennie-certified broker can be an invaluable resource. These brokers are experts in the Pennsylvania healthcare landscape and can provide personalized guidance to help you select the best plan for your needs.Why Choose a Pennie-Certified Broker?1. **In-Depth Knowledge**: Certified brokers are well-versed in Pennies offerings and can provide expert advice tailored to your circumstances.2. **Personalized Recommendations**: They take the time to understand your health and financial situation, ensuring you receive a recommendation that aligns with your needs.3. **Assistance with Application Process**: Navigating the application process can be confusing. A broker can streamline this process, saving you time and frustration.4. **Ongoing Support**: Even after enrollment, a certified broker can answer questions, assist with claims, and help you understand your coverage.Conclusion: Secure Your Health and Financial Future with PennieChoosing the right health insurance plan is crucial to safeguarding your well-being. With Pennie, residents of Pennsylvania have a powerful tool at their disposal, offering affordable, customizable, and transparent coverage options. By connecting with a local Pennie-certified broker, you can confidently navigate the process, knowing you have expert guidance at every turn. Dont waittake the first step towards a healthier future today.For more information or to find a certified broker near you, visit Baker Consulting Services, Inc.s web page, a family-owned agency and local broker in PA.*Disclaimer: This blog post is for informational purposes only and does not constitute professional advice. Please consult a certified broker or a licensed insurance agent for personalized recommendations.*