Insurance Insights ~ February 2000

April 1, 2000 Changes in Workers Compensation Rates

On December 10, 1999 the Pennsylvania Compensation Rating Bureau (PCRB), has submitted a filing of Pennsylvania loss costs, related rating values and Manual rule changes. The filing, Proposal C-339, proposed an overall average loss cost increase of 8.32 percent. In addition, the Bureau’s filing also proposes revision of the Employer Assessment Factor used to impose, collect and remit employer assessments consistent with provisions of Act 57 of 1997. That factor, presently 0.0318, is proposed to be 0.0375 effective April 1, 2000. We will review these changes in detail with our clients prior to the policy renewal date.

Why Purchase Long-Term Care Insurance?

If you are like most people, you probably have reasons why you don’t need Long-term care (LTC) protection, but let’s take a closer look.

1. I’m too young; I’ll consider it when I retire. There are many reasons why it makes good insurance sense to buy LTC before you retire. First, by purchasing the coverage at a younger age, it is more affordable. Premiums can triple between the ages of 50 and 70! Second, this important coverage will help avoid the economic tragedy that would strike a young family in the event of an accident or illness requiring rehabilitation and care.
2. Medicare or Medicaid will take care of me. Medicaid is only for those with few assets and limited income. This eliminates most of us. Neither can you rely completely on Medicare coverage, since there are many limitations for long-term care under Medicare and Medicare supplements. An LTC policy can be specifically designed for your on-going needs.
3. My children will take care of me. Children may have every intention of caring for their parents. In most families, however, both adults work, and are unable to forfeit their income. Many adult children have moved from their hometowns, which does not allow the proximity to provide the necessary care on a regular basis. If you need to move to your child’s home, it means finding new medical personnel, leaving your friends, and developing a new life style. This can create a very stressful situation in the family. An LTC policy can ensure that you can stay in your own home and receive care from medical personnel that are familiar with your needs.
4. My wife/husband will take care of me. We’ve always helped each other. While the desire to provide care for your spouse is there, often times the ability is not. Since you are both most likely in the same age group, the physical capability to provide rigorous, continuous care is not there. A better plan is to buy an LTC plan for you and your spouse. This enables you to take advantage of a marital discount, and assures that your spouse will not be worn down from the demands of being the primary caregiver.
5. I’ll use my savings to pay for my medical care. Nursing home costs can range from $30,000 to $100,000, not to mention rehabilitative care, home health care, and on-going care needs. With this type of financial burden, a family could quickly drain its entire savings. A better investment is to make LTC part of your protection program, which costs very little when compared to the potential benefits.

These are just a few practical reasons for the importance of long-term care insurance. More good news is that LTC is very affordable if you plan ahead! At Weimer Insurance, we can help you decide upon a level of protection that suits your family, and start your protection plan as soon as possible. Call or e-mail us for more information, at no obligation!

Choosing Your Insurance Company

What once was a fairly simple job has now turned into a major research project. Between television advertisements and flyers we receive in the mail or newspapers, there is always a new insurer trying to get us to change companies by making promises that they will be able to save us lots of money on our car insurance.

When we make that call to another insurance company to get a comparative quote, we give them the exact limits of coverage we are carrying. It is amazing what information comes back! Remember to insist on an equal, apples-to-apples comparison. Of course they will say you are getting the same coverage, but you might be surprised as to what they are actually quoting. Take it one step further and have them send you a printed copy of their quote so you can compare it with your existing policy. Here are a few things to check:

1. Check to make sure the policy is for 1 year and not just 6 months.
2. Check the tort option -- make sure it is the same as what you have now (Full or Limited).
3. Uninsured and Underinsured is the same amount that you are covered for now, not a lesser amount (remember this is protection for you).
4. Check to make sure the comprehensive deductible and collision deductible is the same as you have now, not higher.

These are just a few of the things that seem to change. Of course less coverage will save you money but you will not have equal protection.

Another item to check is the rating of the company giving you the quote. A.M. Best has been accessing and rating the financial strength of insurance companies since 1899. ERIE is rated A++ (Superior), so you wouldn’t want anything less. After all, what good is insurance if the company won’t be there to pay your claim?

Whether your inquiring about car, home, life, boat, cycle, or RV insurance, the same guidelines should apply. We want you to be aware of some of the things we’ve seen, so that you are able to make a fair and educated comparison. We are always available to sit down with you and review any other quotes you may receive. WE ARE HERE FOR YOU, the insured!

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 2/1/2000. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.