What is an FSA?

An FSA is commonly referred to as a flexible spending arrangement. This is a tax advantaged plan where one can set aside a portion of their earningsThere are many types of FSA but the most common is a medical FSA.

In its most common form this is an account one can set aside using deductions from payroll through work to pay for medical expenses including prescriptions, eye glasses, deductibles and many more. Often times employers will even help fund an FSA for example one large fortune 500 company will match up to $1000 for every dollar you put into your account.

So should you max out your FSA?

Not necessarily keep in mind that in a lot of plans if you don't use the money within the plan year and the grace period this is not ideal. The best method to decide is to take into account your expenses from the previous year. If you itemized these deductions your tax return should give you the correct amount.

Why do businesses over FSA or HSA, or HRA?

Often times businesses will over this option paired with a higher deductible, this gives the employees more of a say in their medical expenses, it helps keep costs lower and if your medical expenses are low it makes more sense to have a higher deductible paired with one of the above options.

Why don't all businesses over these plans?

I have heard various reasons from businesses why to not offer the plan one of the main ones is that it may be more administrative work, more than one thing to monitor etc. Also some employers don't really understand the benefits and setbacks of these options so they stick with the status quo.

Medini Financial will bring you more information regarding various insurance and financial service questions as long as they keep coming. Again thank you so much for the email questions. If you have any comments or questions please forward them to Medinifinancial@gmail.com

All about Riders

I often get asked when going over options with my clients what a rider is on an insurance policy. Think of a rider a lot like a tow-able trailer, it has wheels and it can move but not on its own. An insurance policy is towing the trailer and the trailer is riding along. Basically an individual cannot purchase a rider on its own but they can purchase and often drop riders while keeping the insurance policy.

Here is are a few examples of riders;

Children's Living Term Rider: This rider is basically term insurance for your children attached to your policy this often comes with a conversion privilege where the child once 18 can purchase insurance without going through underwriting.

Spousal Rider: A policy added on to an insurance policy that covers the spouse of the insured

Living Benefits Rider also know as Accelerated Death Benefit: This rider works to allow you to access your death benefit early if you are diagnosed with a critical illness or are in a hospice. Some insurance companies offer this rider for free.

Waiver of Premiums Rider: This is often sold with insurance policies and only is applicable to age 65 this rider waives the premium on their insurance policy if the become disabled.

Hopefully this clears some things up thanks again for stopping in as always Medini Financial s here to answer your pressing insurance questions.

LONG TERM CARE INSURANCE ANSWERS

When my clients think long term care they either think of medicare of of a nursing home. One thing I often hear when I ask about long term care the first thing they say is I am not going to a nursing home I don't need long term care insurance. The funny thing is that long term care may be the only thing that can keep you from going to a nursing home.

Q. Won't Medicaid and Private Insurance cover most of my LTC needs?

A. The fact of the matter is that LTC is only covered in part by medicaid and private insurance only cover a fraction of what is needed.

Q. Am I too young to think about LTC insurance?

A. Depending on your situation yes, or no. Long Term Care insurance is cheaper when you are younger of course but the difference in cost between a 21 year old purchasing LTC insurance and a 29 Year old purchasing LTC is negligible.

Q.What are my options?

A. You can either spend down your assets or put everything in your kids names till 5 years before you need it to qualify for medicaid(known as medicaid planning) and end up in a nursing home with an available bed.

You can fund your needs out of your own pocket.

You can have friends or family take care of you

You can purchase long term care insurance.

Q. Can I purchase LTC insurance through work?

A. Yes often you can and if not you can request your employer to add it to your plan, the benefit to your employer is there are several plans where he doesn't have to fund it so you get a great group discount and he has a rich benefits plan.

Q. WHAT IS LONG TERM CARE INSURANCE?

A. Insurance designed to provide coverage for necessary medical or personal care services provided outside of a hospital setting, such as in a nursing home or in the insured's home Long term care insurance is product bought by individuals and sold by insurance companies to offset the cost of needing care, LTC insurance includes many.

Q. What companies offer LTCI?

A. Prudential and John Hancock are two of the most popular options in the state of Pennsylvania.

Please, consult your financial services consultant with any other questions or email medinifinancial@gmail.com. Medini Financial is licensed with the Pennsylvania Department of Insurance only.

We appreciate your time. Keep those questions coming!

Why Medini Financial?

Why Medini Financial

I almost always here this question when I deal with clients who have gone online looking for insurance and they run into either a handful or a barrage of reps. The answer to the questions is simple.

Medini Financial is not like the large insurance firms who are too busy to care about their clients after the sale.

Medini Financial is unlike the struggling independent agency who often doesn't have the experience to offer a suitable solution, or who because they are struggling will only offer products that fatten their wallets, lastly Medini Financial is a name that is going to last. While Medini Financial gives information on a variety of products and lines of insurance we have carefully chosen to grow organically and not offer products which 1) are unnecessary and 2) which we cannot maintain up to date information on.

Medini Financial takes the time every week to share its knowledge with the world, we are friendly professional and most important helpful. Let's be honest, no matter how nice your agent is in the long run if he isn't helping you and your family you are going to drop him. So again the question is asked why Medini Financial?

It all goes back to our core philosophy "Knowledgeable Answers, Personalized Advice, and No Pressure."

Next week we will give answers to the recent emails I have received regarding long term care, a side note most people who email me saw either something online or on TV that caught their eye, if you have a questions about any insurance or retirement planning topic feel free to reach out via email to medinifinancial@gmail.com

How to Leverage Insurance to Supplement Retirement Planning

One thing people don't realize about insurance is that its tax status makes it a very viable option to supplement any retirement plans you may have while providing protection for your family.

Here is one example of how one can leverage insurance to aid in retirement planning this is especially helpful if you plan on retiring before 59.5 where you would suffer penalties taking money out of your 401k.

If you were to invest in either a variable or universal policy and you put extra money into and let it grow to the max with out losing its insurance status you can then take withdrawals out tax free.

When I say lose its insurance status I mean exactly that if you over-fund a policy beyond a certain point , which with todays software can be easily illustrated for various scenarios the money in the policy may be taxable as a gain. So before you go funding your life insurance policies like crazy, have your financial representative make an illustration of for example of what would happpen if you put 300 dollars away in a variable policy at age 24 till age 55 and then took out withdrawals for 5 years. You will be pleased to see how much your money has grown but also how much you can take out tax free.

When using this method you need to make sure that you don't let your policy lapse you see as long as any death benefit is paid the money you invested and took out will be tax free.

Note that when using this method that some money is lost to offset sales charges and fees, if you were to invest in the same investments that are within a variable life insurance policy outside the insurance policy if you put them side by side the investments outside the insurance policy would be more however depending on you tax situation the insurance policy may be a good fit. After all its not how much that is in your account that is most important but its important to know how much you keep.

This is just one of the many reasons why Life Insurance may be a good option for you. If you need further assistance or would like to see an illustration of how this works shoot an email over to medinifinancial@gmail.com

What is an Annuity?

Several people ask me about their retirement goals and what I can do to help. Some people have asked me this question out of pure curiosity. Medini Financial in Ephrata would like to share its knowledge of what an annuity is and go into a little detail of the different types of annuities out there.

Annuities are products that are sold by licensed insurance agents that pays income out to its annuitant.

Annuities come in several varieties.

A fixed annuity pays out a fixed amount of income to its annuitant and grows at a fixed rate.

A variable annuity on the other hand is similar to an investment in a 401k where you can choose the subaccounts where your funds are invested.

People often choose annuities for two reasons one it offers another vehicle for tax deferred growth, and the second reason is because to ensure a steady stream of income in retirement.

Here is an example of how annuities have helped people in retirement.

Harry is a 65 year old man who is retired he has 800,000 dollars he has saved up for retirement, lets say he needs 50,000 dollars a year to survive. He can elect to leave the funds in an investment vehicle like a CDS, stocks, bonds, money market accounts, or a savings account depending on risk tolerance. Now if Harry's investments make a 0% return on investment the money will last 16 years, longer if the the investments do well and obviously shorter if the investments go south.

An annuity may help him guarantee a stream of income for as long he lives in exchange for either a one time payment, or a series of payments into the annuity. In case of options he can take out the money immediately known as an immediate annuity or he take out the money later what is known as a deferred annuity.

Now in this case is Harry would like to have guaranteed income the annuity can be the perfect vehicle. In this case an annuity is appropriate because income is more important than liquidity. If Harry were to live to be 100 and if he started taking out payments at age 70. He would have had a guaranteed stream of income all those years.

Annuities may or may not come with riders and additional benefits at various costs usually a few basis points. This topic has confused a lot of people with all the options out there.

Often times Fixed annuities are more suitable than CD's but sometimes CDS are more suitable than fixedannuities. The main attraction with an Annuity is often times the insurance companies pay higher rates than a CD.

Payouts on annuities can be for various options,including lifetime, or a for certain period of time i.e 20 years. For more information you can check out this great article

http://money.cnn.com/retirement/guide/annuities_basics.moneymag/index.html

or you can contact Medini Financial at 717-419-6347 or via email medinifinancial@gmail.com Every person's financial situation is different. Let Medini Financial take a look at your individual situation and you can see if what options are best for you and make your own decision.

Medini Financial is committed to share its expertise with the local community. Should the need arise for you or your family Medini Financial looks forward to getting you the best rates and world class service.

When Should I consider life Insurance?

Someone reached out to me today and sent me an email asking:
When should I consider life insurance?

This is a very good question and every person's situation is different. To answer that question I will also answer these two questions : What is insurance? What is life insurance specifically?

I remember when I was studying to get my license and I ran across the definition for insurance. I always knew what insurance did on some basic level but didn't have a legal definition for it. Chris Rock put it this way, insurance is giving someone money in case (expletive) happens. The legal definition is that you are transferring risk from one party to another. Simple right. Life insurance is transferring the risk of someone passing away and the financial outcome as a result. So when you purchase or consider life insurance you are transferring the risk that you will pass away in exchange for money? This is the most basic reason to buy life insurance is to protect your loved ones in case you pass away in an untimely manner. Life insurance provides a tax free benefit to a party who would be affected by your loss, i.e your beneficiary.

Life insurance is normally purchased when:

1) A couple gets married.

2) You are taking on a loan college, vehicle, home purchase etc.

3) You have someone dependent on you for financial support who would be hard pressed with out you. To replace income for e.g Birth of Child, Adopting a child, caring for parent, etc.

4) If you are planning on retiring before 59.5 years old (will go into detail later, this involves advanced topics in insurance and its tax situation)

5) You or your loved ones cannot cover the costs for funeral out of pocket (10,000)

6) A child is born and the insurance will be used as a partial vehicle to fund college expenses (also an advanced topic which will be touched upon later)

7) To divide up funds equitably once you pass away and increase the amount your next of kin would receive (also another advanced topic which will be discussed at another time)

8) To be used as a vehicle for charitable giving could be an organization could be your University

9) You are looking to use insurance as an investment vehicle (also another advanced topic to be discussed on this blog)

Health Insurance Q& A

I have been asked by several people what the Health Care Bill means to me, so here are a few questions that I have been fielded

Q: Can I add my son/daughter aged 18-26 to my insurance plan now?

A: Although the Bill was signed it will not be enacted till October 2010 according to healthcare.gov it could be as early as Sept 2010. You should note though there is no cap on what that cost would be so far. Also note this does not apply if he can insurance through his employer.

In PA the law 2009 SB 189 states that an unmarried child may remain on parent's insurance up to age 30 if they have no dependents and are residents of PA or are enrolled as full-time students.

51 Pa.C.S.A. § 7309 states that full-time students whose studies are interrupted by service in the reserves or the National Guard must be extended health care benefits as a dependent of their parent beyond the terminating age equal to the length of their deployment..

Q: What changes can I expect if I am on Medicare?

A: You can expect a $250 rebate when your medicare prescription runs out this is a one time check if you enter the Medicare Part D donut hole you can expects checks to mailed out Mid-June and throughout the year as people become eligible.

-You can also expect to see other savings until 2020 when the coverage gap is closed

- In 2011 you will recieve free screening for preventive care like mammograms for females, and you will also receive a free annual physical

there are a few other benefits as well the best explanation of benefits I found was at the following link

Q: What if I am a small business owner what can I expect?

A: Well first note that most small business are paying more for benefits than larger employers if you offer insurance have 25 or fewer employers whose wages average 50k you may be eligible for a small business take credit up to 25% in 2014 the credit goes up to 50% also in 2014 you will be eligible to take advantage of an insurance exchange give your broader access to plans with lower cost similar to large businesses

Q: I am individual, self-employed but I have been denied coverage can I get insurance?

A: According to healthcare.gov On July 12, eligible residents of Pennsylvania will be able to apply for coverage through the state’s Pre-Existing Condition Insurance Plan program run by the Pennsylvania Insurance Department.

To qualify for coverage:

You must be a citizen or national of the United States or lawfully present in the United States.
You must have been uninsured for at least the last six months before you apply.
You must have had a problem getting insurance due to a pre-existing condition.
The Pre-Existing Condition Insurance Plan will cover a broad range of health benefits, including primary and specialty care, hospital care, and prescription drugs. All covered benefits are available for you, even if it’s to treat a pre-existing condition.

Premium: $283.20 per month
Deductible: $1,000 in-network, $10,000 out-of-network
Out of Pocket Limit: $5,000 in-network, $20,000 out-of-network

Q: I or someone I know has a disability what can I expect?

A: Starting as early as Sept you cannot be denied coverage based on a pre-existing condition including disability to any child under 19 in 2014 the insurance company will not be able to exclude anyone from coverage or charge higher premiums based on pre-existing conditions in 2012 you may be eligible for voluntary benefits from the class program. Until that time comes you have the following options coverage under your parents plan if you are under 26, state high risk insurance pools/preexisting condition insurance plans, or possible medicaid

Hope this information helped for more information visit Healthcare.gov or you can contact us at medinifinancial@gmail.com.

Medini Financial is licensed with the PA DEPT OF INSURANCE, all the information here is for educational purposes and does not constitute as tax or financial advice for specific information to your situation reach out to your local agent or you can contact us directly.

Most Common Questions and Answers about Paramed exams

Often times my clients have asked me what happens when you have a paramed exam and a related question when would I need a doctors exam or an ECG?

For most people time is money, so they want to know how long does a paramed exam take?

Answer: Usually 15-30 minutes.

What is the paramed going to do?

Answer: They will at a minimum take your blood pressure, height weight, urine sample and also draw a blood sample which may or may not require you to fast for 12 hours before the exam. They also will ask you a series of medical questions about your family history and your personal medical history. (Don't lie to the examiner the test will show any conflicts) If you are applying for a larger face amount you may have to also have an ECG done which the examiner will have a portable machine to do that for you.

When do you need a doctors exam?

Answer: Similar to the ECG requirement it is usually required for people who are older or for clients requesting large face amounts of insurance.

How much does this cost?

Answer: he exam cost nothing to have done and you will get all the results back which you can then share with your doctor.

Why do I need to get this done?

Answer: Bottom line the insurance company doesn't want to take on any unnecessary risk, and frankly you don't want them to either because if their funds run short, claims take longer, the company's customer service suffers, and they may go out of business all these things are not good. Underwriting and the exam will allow the insurance company to rate you and if you are in shape and healthy that will result in lower premiums.

Where can the exam be done?

Answer: The exam can be completed either at home or at work often times the examiner may be able to see you Monday through Friday between 7am and 8pm or even on Saturdays.

Hopefully that cleared up some things for you folks out there. Medini Financial strives to provide insurance and financial answers in Ephrata and Lancaster County. Check us out on facebook and become a fan just search Medini Financial.

What is the difference between the insurance policy with only a few questions and no exam versus the policy that requires an exam?

Recently, I have received an email from someone in Lancaster looking for insurance who asked what is the difference between companies who just ask few medical questions with no exams versus going through underwriting and possibly an exam.

You may have gotten in the mail or have heard commercials both on the TV and the Radio about life insurance with no exams just answer a few medical questions and mail back in your check and you get life insurance. Some of these companies even offer guaranteed policies. What they don't want you to know is that you may be guaranteed insurance but only if you have an accidental death and there may be several caveats where you are not covered under a guaranteed issue policy that may or may not have medical questions.

The next type of policy discussed earlier is the one that all you have to do is answer some questions and you may or may not be offered coverage while these are often times more appropriate for a client there is a price you for the convenience of not having a medical exam. Here the main difference when you forgo the medical exam and blood work the life insurance companies are taking a larger risk on an individual who may be in poor health and who is a higher risk. So in order to leverage against the risk what they do is charge often charge 4-6 times the normal rate you may have paid had you gone through underwriting. By charging more you receive a policy relatively quick and easy, however in the eyes of the insurance company a person they must assume that you are a bigger risk even if you are not. What these companies often do is offer lower amounts of insurance with no exam as not to expose themselves to a high risk. It is also beneficial because 25,000 dollars worth of insurance at 4 times the going rate may come out to 20 dollars a month versus listing 100,000 dollars worth of insurance at 4 times the going rates can easily cost over a $100 dollars a month with no exam.

Often times people will actually opt for the smaller amount of insurance to save them self the time with an exam. What you are really doing is similar to eating out versus cooking at home. You are paying more money each month in exchange for convenience however on a large scale. Depending on your situation it may be beneficial to just answer the questions and pay more to get that peace of mind right away. on the other hand you may want to go forward with a policy that requires an exam. Financial the policy with the exam cost several times less. You get a free exam that will let you know your cholesterol if you are pre-diabetic etc. The main thing here is that you can get a lot more insurance for your money going through underwriting. Similar to how car insurance companies charge people more for having bad driving records they also charge smokers and people in poor health more for their insurance. If you have a clean bill of health you pay less the same way you would for car insurance with a clean driving record. The main difference here is that when you answer the questions without the exam you are often paying for one size fits all underwriting which often the same as paying the same car insurance premium as someone with a bad record. In some cases having a blanket premium may be cost effective if your health is not the best it could be. However if you are young and healthy; underwriting and exams may be the way to go.

Next post will answer another popular question I have been asked which is "What does the exam entail?



Medini Financial recommends each person evaluate their individual circumstances and to speak with an insurance or financial professional before making any decisions for or against a policy. This information is for educational purposes. Medini Financial is licensed with the Pennsylvania Dept of insurance.

The people behind the headlines

"Middlesex County College student Vincent DeSario, who graduated May 20, was severely beaten in Wildwood earlier this month and has died; it was a tragic event. The family is facing extreme medical expenses and have created a charitable trust to help."


If you would like to contibute, please make checks payable to the Vincent DeSario Charitible Trust and mail to:

Vincent DeSario Charitable Trust
1115 Inman Ave.
P.O. Box 317
Edison, NJ 08820

This is what Middlesex County college's website has up for my friend Vinny Desario. As an experience life insurance agent Medini Financial has seen its fair share of what the insurance industry calls "Claims". Bottom line is these are real people, not just a claim. When tragedy happens to someone it affects so many others. It was tragic to lose "skinny vinny", or "Barbers" as some knew him. Having worked with my clients helping them with their loss I know how difficult this can be for families and friends. Sadly Vinny was the first person I knew who had died who was younger than me and it took a toll on me. When we lose someone we love it is always difficult in all aspects physically, emotionally and financially it often becomes an issue as well. So when dealing with an agent make sure you find someone who truly cares about your situation and has you set up so you at least don't have to worry about the financial aspect. Make sure you are working with someone who cares about your family and their needs, frankly people look at headlines and disengage, and dissociate from the fact that we are all interconnected whether we like it or not.


Medini Financial would ask that if you have any resources what so ever please forward them to the Vincent Desario Charitable trust Bottom line here Vinny Desario was a great kid and our loss is tragic, and something like this will take a big toll financially on my friends family. So please dont just read the headlines without thinking about who is behind them. In this case Vinny was not just some kid he was bright student, an avid golfer, and a stout optimist. Any support you have will be much appreciated

Rest In Peace Vinny

We senselessly lost Vinny Desario this week I ask that all PFA wrestlers please pray for his family. I'll have content up this weekend.

Medini Financial's first post... Hello World

Please note Medini financial is licensed in the state of PA and certain questions regarding state specific products must be directed to a rep licensed in that state.

As stated previously Medini Financial is up and running with its first blog posts, I invite all readers to either submit their comments or questions directly on this forum or they can submit their anonymous question to medinifinancial@gmail.com. Thank you to all for your support and look out later this week for a most requested discussion on the difference between term and permanent insurance and what it means to people of all ages and situations.


I wanted to introduce our services and our different approach to the world. Medini Financial wants to take away the stigma and negative stereotypes of your traditional insurance agency. Having been in the insurance industry for some time now, I often have ran into clients who were so relieved that someone was able to ask and find out what they wanted and needed. Someone who would not suggest a one size fits all solution that benefits the client to a small extent but the licensed agents wallet a lot more. Many people feel insurance agents are slimy and overpaid, and to some degree they are right. If someone is going to make money directly or indirectly off of me I want to make sure they are earning every penny I pay them.

What makes this agency so different is that Medini Financial puts the client first period. Medini Financial lays out all options across the board from multiple carriers. We uniquely position ourselves with the best carriers so we can offer client A what's right for them from one company and client B what is right for them from another company. When dealing with a captive agent or one who only promotes one company (often the one with the best commission plan) you will always be limited to that one person's company's policies the good and the bad. Medini Financial has seen too many times and even experience it myself back when I was representing one carrier that when push comes to shove no matter how big a company may be no one company has the best fit for each person.

Medini Financial is based on the following philosophy and we stick to it everyday, that is Knowledgeable answers, personalized advice, and no pressure. How many times has a rep tried to sell a policy that was too expensive for the client and then try to make the client feel like he doesn't love his family because he couldn't afford the policy which wasn't right for his family in the first place? The answer, it happens almost everyday. So when we mean no pressure we stick to it. If you feel the services we offer is right for you we are more than happy to serve you. If you want advice but have no need for more services, I will give you that advice, and tell you straight from the horses mouth that you don't need another policy. I don't think too many agents out there visiting clients who don't secretly hope they can "find a need" which really means push one policy. While I do believe insurance has a purpose in this world, Medini Financial feels strongly that the main reason why many do not seek answers is because they don't know where to turn for real answers without the sales pitches or because they feel they can't afford it.

So Medini Financial is here to go the extra mile with no strings attached; feeling confident that most people would like to deal with a straight shooter who they can know and trust versus a product pusher.

Thank you again and have a great week.