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Medicare Savings Program Connecticut

Medicare Savings Program Connecticut (MSP) is a drug help program available to Connecticut residents on Medicare.   The program provides help for drug copays, deductibles and premium to those who qualify based on income.

MSP is available to individuals and couples making under stated income guidelines which have been provided here:

• QMB – $2,088.90 for a single person and $2,816.85 for a couple
• SLMB – $2,286.90 for a single person and $3,083.85 for a couple
• ALMB – $2,435.40  for a single person and $3,284.10 for a couple

MSP applications and brochures

Do you have questions or need more help?  Are you looking for more information? If you are, we can help with whatever you may need with MSP, Medicare plan choices or any other questions.  Call us at 203-796-5403 or email [email protected]

Is An Annuity Income Rider A Good Deal?

Is an annuity income rider a  good deal?  Annuity income riders are available on both fixed and variable annuities.  Although most people do not understand them very well, income riders are not that complicated.  Although companies have different bells and whistles on them, income riders are all very similar regardless of the company offering them.

The basic concept of an income rider is that they are a product investors use to create a future income stream.  Investors can determine their income down to the dollar at any future date.  This makes them very predictable.  An example is the best way to describe an income rider.

(Example)-

A person decides they would like to have a future income stream to supplement their retirement income they receive from Social Security and a pension.  They decide they have $250,000 that they can dedicate to future income.

The investor puts $250,000 into an income rider.  The income rider will show them exactly how much lifetime income they will be able to take in the future.  They can choose to start collecting income in any year they would like.   Although, once they start collecting income, the amount they receive every month will never increase.   The income will payout for life but their initial investment will erode over time.  When the $250,000 runs out they will still have the income payment however.

The positives of an income rider are the following…..

• Can predict future income right down to the exact dollar in any given year.
• This income has a guaranteed payment. The longer you wait to turn it on the more it will pay out for life.
• Market conditions have absolutely no effect on the deferred income increase on the rider.
• You will still have access to the lump sum investment even after you start to receive income payments.

The negatives of an income rider are…..

• Once you start to take payments your account will never increase.
• There is an annual fee for the income rider which your provider deducts from the account value (The $250,000 in the example) of the investment.
• The account value will steadily decrease  for every year the income rider pays you.

Income riders can be very useful if they are used for the right purposes (Generating future guaranteed income).  They can also be a terrible investment if used for the wrong reasons.  Many will argue that a larger future income stream can be created using other methods but they can not do it on a 100% guaranteed basis like an income rider can.

CLICK HERE FOR MORE INFORMATION OR QUOTES

Annexus BCA Annuity

The Annexus BCA annuity is a fixed indexed annuity.  This is a specialized offering from Aviva.  Unlike a traditional fixed annuity that offers a fixed interest rate for a set number of years.  The Annexus product uses an interest strategy based on performance of the S & P 500 while it still provides a 100% principal guarantee.

The idea behind the Annexus product is that it provides  an opportunity for superior returns compared to either a bank CD or fixed annuity while it still provides a guarantee against loss.

It attempts to accomplish this with a unique interest strategy. The following description intends to give clients a general understanding of the product.  Returns are based on the S & P 500 using a 2 year point to point strategy.  The gain in the S & P over a 2 year period is used to determine the return provided to the client.  After 2 years, the point to point is reset and another 2 year term will begin.

Not all of the return is provided however.  40% of the funds that clients place in the account are in a fixed account that yields a declared interest rate.  This leaves 60% of the money in the S & P.  Some of that gain has a further depression because of the annual spread. “Annual Spread” is an amount of the overall return the company keeps prior to giving the reminder to the client.  The spread ranges from 1% to 2% this amount depends when  the client purchases the product.

Given the above details:

The Annexus product is certainly going to lag behind the standard S & P return.  The fact that it will allow no less than a 0% interest credit in a negative 2 year cycle helps the performance of this product.  The bottom line is that the product certainly does protect against poor market timing with the 0% floor but it will also provide lower returns than the S & P in positive years.

An example of returns from the Annexus product vs. the S & P 500 is provided here. Annexus BCA 12 Annuity

CLICK HERE FOR ANNUITY QUOTES OR ADDITIONAL REQUESTS

Please contact us if you have any questions about either investments or insurance.  You can reach us either by phone at (203)796-5403 or by email at [email protected]

Bank CD Compared To Fixed Annuity

How is a bank CD different from a fixed annuity?  In this post we will talk about Bank CD Compared To Fixed Annuity.  They are more similar than you may think.  Here is a review of similarities and differences.

• Both CD’s and Fixed annuities offer a fixed interest rate for a set number of years. Terms such as 2, 3,5,7 and 10 years are common for both.   CD will provide shorter terms than an annuity as most fixed annuities will not offer a term less than 1 year.
• Interest rates have a guarantee for the full term on both products.  Once the investor reaches the term, they  may take the money out without any other obligation
• Fixed annuities tend to have larger penalties for taking the money out early.  While a CD will often just take the interest you gain as a penalty for early termination (taking money before term is over).   Fixed Annuities tend to charge penalties above just the interest you gain.   Both however are free of any penalties if the investor meets the full term.
• Most annuities will allow investors to take out 10% of the account value penalty free, per year, before the end of the investment’s term.
• Bank CD’s are FDIC insured, while Fixed Annuities are not.  Instead annuities are backed by the Guarantee Association of the state of issue.
• In general, a fixed annuity will offer a higher fixed return than a CD.  For example, the best current (As of April 3rd, 2014) 5 year fixed annuity rate is 3.2% for 5 years vs. the highest posted CD rate of 2.27% (Bankrate.com)

CLICK HERE FOR RATES OR MORE INFORMATION

Crowe and Associates is here to help you with all of your investment needs.  If you have questions, please either call us at (203)796-5403 or email us at [email protected]  Also, feel free to ask us about insurance coverage.

Medicare Part D Connecticut

In this post, we want to explain some things about Medicare Part D Connecticut.  We want you to understand as much as possible about the coverage that is available to you.  This way you can make an informed decision.  In fact,  Medicare Part D plans are Medicare drug plans offered by private insurance companies.  Medicare offers these plans either on a stand alone basis or as part of a Medicare Advantage plan.   Multiple insurance companies offer various part D plans.  The plans range in monthly premiums from as little as $12 a month up to $140 a month in Connecticut.  The Benefits (copays for drugs) also range greatly.  The prices for drugs vary from pharmacy to pharmacy.  You should make a list of all your medications and check which insurance plan includes the medication that you use.

Many people incorrectly think

That there is a Part D plan offered by the Government or Medicare.  Medicare only established the guidelines of what the base part D benefit and premium should be.  They do not have an actual Medicare Part D plan that a consumer can enroll in.  This must be done with a private insurance company.

Members are eligible to enroll in a Part D Rx plan when they turn 65 or first become eligible for Medicare.  They may also add, drop or make a change to an Rx plan every January during the Medicare Annual Election Period.

CLICK HERE FOR MORE MEDICARE INFORMATION AND RATES

Crowe and Associates is a full service brokerage.  In addition to Medicare, we offer clients a full range of medical, dental, life, home and auto insurance products.  We also offer advice on investment products including annuity and bridge loan products.

Please feel free to contact us with any insurance or investment questions.  We are here to help you.  You can contact us either by phone at (203)796-5403 or by email at [email protected]

Should You Buy Medicare Part B?

Medicare Part B becomes available to people when they turn 65.  Unless, they are eligible prior to 65 due to permanent disability.   Part B of Original Medicare covers outpatient services.  These services include doctors visits, lab work, testing, outpatient surgery and most medical procedures done on an outpatient basis.  In general Medicare Part B covers 80% of the cost of services after you meet the annual deductible of $147.00.

There is a cost for Medicare Part B

The cost is $104 a month for most people, although it can be higher for those earning higher income. There is also a penalty for those that do not purchase Medicare Part B when they are first eligible for it.  Most people will pay the penalty if they enroll late.  There will not be a penalty for someone 65 or older if they receive coverage from their employer and are actively working.  The penalty also would not apply to the spouse on the plan.  If someone is 65 or older and getting coverage from an employer but is NOT actively working, they will pay a penalty for not signing up for part B when first eligible.

As a result, it is advisable to purchase Part B when first eligible.  Unless you fall under the actively working and getting coverage category.  You cannot purchase a Medicare Supplement or Advantage plan without Part B of Medicare.  This is another good reason to purchase it when you are eligible.

CLICK HERE FOR RATES AND INFORMATION ON MEDICARE SUPPLEMENT PLANS

If you would like more information about health insurance plans. Please contact us either by phone at (203)796-5403 of by email at [email protected]  We are here to help you feel comfortable with your insurance coverage.   We will find  you a plan that fits both your medical needs and your budget.

Move To A Plan N Supplement

Move To A Plan N Supplement In this post, we are going to give you some reasons why you should Move To A Plan N Supplement.  The majority of seniors enrolled in an AARP Medicare Supplement plan (Also called Medigap) are in Plan F when the best choice would be AARP Plan N supplement.  Why are so many people enrolled in Plan F? What reason should they enroll in plan N instead?  In fact, there are a number of good reasons to consider this option.

First, we will look at why most people with an AARP supplement in Connecticut have Plan F.  Because Plan F has been around the longest most people are familiar with it.  It also has one of the highest premiums which makes consumers think it is the best choice.   On the other hand, Plan N has only been around for 3 years and is not as easy to understand compared to Plan F.

Plan F

Covers 100% of Medicare approved services not covered by Medicare A and B.  Plan N has some limited out of pocket costs ($50.00 for ER visit, $147.00 annual part B deductible, up to $20 for physician services).  All other benefits are the same as plan F.  The premium of plan N in CT is $145.50 a month vs. the Plan F premium of $218.50 a month representing a $876.00 a year premium difference.   The limited out of pocket costs of Plan N make it highly unlikely that anyone will have $876.00 in medical copays.  Only the highest of utilizers of care would be able to approach the number.

Those that want to make a change in Connecticut do not need to wait for the Annual Election Period.  You can switch from Plan F to Plan N any time of the year in Connecticut.   Because it is a guaranteed issue state for Medicare Supplement plans.

CLICK HERE FOR MEDICARE SUPPLEMENT RATES AND MORE INFORMATION

If you would like more information about this healthcare plan or any other plan please contact us.  You can reach us either by phone at (203)796-5403 or by email at [email protected]