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    Find Out More: Viaticals Resource Guide

    Wednesday, February 25th, 2009

    This week, we chatted with WISER Senior Policy Analyst Laurel Beedon about Viaticals. If you still have questions on viaticals or you’re just looking for more information, here’s WISER’s list of Viaticals resources:

    American Council on Life Insurance
    1001 Pennsylvania Avenue, N.W.
    Washington, DC 20004-2599
    www.acli.org

    National Association of Insurance Commissioners
    444 North Capitol Street, N.W.
    Washington, DC 20001
    www.naic.org

    National Association of People with AIDS
    1413 K Street, N.W.
    Washington, DC 20005
    www.napwa.org

    National Viatical Association
    1200 G Street, N.W., Suite 760
    Washington, DC 20005
    www.nationalviatical.org

    For more information, you can also contact your state insurance commissioner or state attorney general. The National Association of Insurance Commissioners has state-by-state contact information for insurance commissioners here.

    Posted in Life Insurance, Viaticals | Comments »

    WISER Celebrates America Saves Week!

    Wednesday, February 25th, 2009

    This week is America Saves Week. All over the country, individuals and organizations are using this week to rededicate themselves to saving and paying down debts. Many are worried about their retirement. These issues are especially important for single women. Women live longer and earn less than men; they are also more likely to remain single, to be widowed or divorced and vulnerable to poverty.

    For America Saves Week, WISER has new resources for women who are going through a divorce or who have been widowed. WISER’s guide, “Divorce and Retirement: Take Control of the Retirement Benefits,” helps women navigate the complicated world of dividing retirement benefits at divorce, while “WISER’s Report on Widowhood” offers financial tips for widows of all ages.

    Posted in America Saves Week, Divorce, Reducing Debt, Retirement, Savings | Comments »

    Spare Change: Stimulus Act Offers Premium Assistance COBRA Beneficiaries

    Tuesday, February 24th, 2009

    Beginning March 1, 2009, the government will subsidize 65% of the cost of COBRA premiums for eligible workers and their dependents who were/are involuntarily terminated between September 1, 2008 and December 31, 2009 for up to nine months. The subsidy is available as long as the person’s adjusted gross income is $125,000 or less ($250,000 or less for joint filers). It is phased out as adjusted gross income increases from $125,000 to $145,000 ($250,000 to $290,000 for joint filers), so that there is no subsidy at all above those levels.

    For those who did not initially elect COBRA coverage, the legislation also provides an additional 60 day election period.

    Posted in COBRA | Comments »

    Q&A: Viaticals

    Tuesday, February 24th, 2009

    This week, the WISER blog writers had a Q&A session with WISER’s Senior Policy Analyst, Laurel Beedon, on Viaticals. A viatical is a legal document that sells your life insurance policy to a third party.

    Q:Why would I sell my life insurance?
    A: A viatical can provide needed money if you are terminally or chronically ill and in a difficult financial situation.

    Q: Who is involved?
    A: You, as a terminally or chronically ill person sell your life insurance policy to an investor in return for a lump-sum payment. The investor then takes over payments on the policy and is the beneficiary of the policy upon your death. Usually, a viatical broker arranges the agreement between you, the seller of the policy, and the buyer using a viatical purchase agreement. The broker is paid a commission.

    Q: What should I find out?
    A: If you are considering a viatical, it is important to ask some questions and learn about all the options on your life insurance policy before you make your decision.

    Here are some questions to ask and people to check with before you decide on a viatical:

    • Do you have any cash value in your life insurance policy? If so, you may be able to use some of the cash value to meet your immediate needs and still keep your policy in force for your beneficiaries without having to sell it to a third party.

    • Does your life insurance carrier offer accelerated death benefits? Those benefits could pay you a substantial portion of your policy’s death benefit and you wouldn’t have to sell your policy to a third party.

    • Will your receipt of cash from a viatical agreement be taxed? Check with your financial or tax advisor.

    • Will you lose any public assistance or social service benefits such as food stamps or Medicaid if you receive a cash settlement?

    • Will buyers of your policy be able to learn your identity and will they know certain medical and personal information about you, such as your address and life expectancy?

    Before you make any major decisions, you may also want to consult your own financial advisor or attorney. Shop around. Talk with several companies and/or brokers to find the best arrangement. Don’t fall for high pressure tactics. You don’t have to accept an offer, and you can change your mind. Check with your state insurance department to verify the company or broker you are considering is licensed. Check with your state attorney general’s office for complaints against the company.

    Tomorrow: Find Out More: Viaticals Resource Guide

    Posted in Viaticals | Comments »

    Financial News You Can Use

    Monday, February 23rd, 2009

    -On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009. This new legislation provides a one-time payment of $250 to Social Security and Supplemental Security Income beneficiaries. Over 60 million beneficiaries will receive a one-time payment. Social Security expect all payments to be delivered by late May 2009. To assist Social Security in issuing these payments as quickly as possible, beneficiaries should not contact Social Security unless they do not receive their payment by June 4th.

    -A new law may make it easier for some Americans to allow their retirement funds to recoup losses. That’s because mandatory withdrawals from certain retirement accounts have been waived for tax year 2009. Usually, anyone age 70 1/2 or older is required to withdraw funds from their retirement plans each year, even if the money isn’t needed. These plans include 401(k)s, 403(b)s, some 457(b)s as well as IRAs and IRA-based plans such as Simple IRAs and SEPs.
    However, The Worker, Retiree and Employer Recovery Act of 2008 waives the requirement to withdraw funds in 2009. To learn more, visit www.irs.gov/pub/irs-drop/n-09-09.pdf.

    -For people who want to save, Social Security offers online planning tools such as the Retirement Estimator. The Estimator allows people to try out different retirement scenarios. Just plug in some quick information and you’ll get estimates of your future benefits based on your personal earnings record. Try it out at www.socialsecurity.gov/estimator.

    Posted in Retirement, Retirement Income Calculators, Social Security | Comments »

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    WISER is a nonprofit organization that works to help women, educators and policymakers understand the important issues surrounding women's retirement income. WISER creates a variety of consumer publications including fact sheets, booklets and a quarterly newsletter that explain in easy-to-understand language the complex issues surrounding Social Security, divorce, pay equity, pensions, savings and investments, banking, home-ownership, long-term care and disability insurance.

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