Term Life Insurance

Term life insurance lasts for a specified number of years and then ends. You choose the term when you take out the policy, with common terms being 10, 20, or 30 years. The best-term life insurance policies balance affordability with long-term financial strength.

Types of Term Life Insurance:

• Decreasing Term Life Insurance: This is renewable term life insurance where the coverage decreases over the life of the policy at a predetermined rate.
• Convertible Term Life Insurance: This allows policyholders to convert a term policy to permanent insurance.
• Renewable Term Life Insurance: This is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and it is usually the least expensive term insurance initially.

Term life insurance is attractive to young people with children because parents can obtain large amounts of coverage at reasonably low costs. Upon the death of a parent, a significant benefit can replace lost income.

These policies are also well-suited for people who temporarily need specific amounts of life insurance. For example, the policyholder may calculate that by the time the policy expires, their survivors will no longer need extra financial protection or will have accumulated enough liquid assets to self-insure.

Term life insurance is for a predetermined period, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated based on the holder’s age, life expectancy, and health. By contrast, whole life insurance covers the entire life of the holder. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. The holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity.

Whole Life Insurance

Whole life insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. Interest accrues at a fixed rate and on a tax-deferred basis.

Whole life insurance policies are one type of permanent life insurance. Universal life, indexed universal life, and variable universal life are others. Whole life insurance is the original life insurance policy, but it does not equal permanent life insurance as there are many types of permanent life insurance.

Universal life insurance and whole life insurance are both permanent life insurance types that offer guaranteed death benefits for the life of the insured. However, a universal life policy allows the policyholder to adjust the death benefit as well as the premiums. As one might expect, higher death benefits require higher premiums. Universal life policyholders can also use their accumulated cash value to pay premiums, provided the balance is sufficient to cover the minimum due. Whole life insurance, alternatively, does not allow for changes to the death benefit or premiums, which are set upon issue.

Universal Life Insurance

Universal life (UL) insurance is permanent life insurance (lasting the lifetime of the insured) that has an investment savings element and low premiums similar to those of term life insurance. Most UL insurance policies contain a flexible-premium option. However, some require a single premium (single lump-sum payment) or fixed premiums (scheduled fixed payments).

Unlike term life, UL insurance policies can accumulate interest-bearing funds like a savings account. Additionally, policyholders can adjust their premiums and death benefits. Those paying extra toward their premium receive interest on that excess.

If you want to build tax-deferred savings and don’t expect to tap into the funds for a long time, universal life may be a suitable option. The cash value option that’s part of a universal life policy may be available for you to withdraw or borrow against in an emergency.

It’s a good idea to talk with your insurance provider to better understand your life insurance options. They can help you review your personal situation and long-term goals to choose a policy that’s a good fit for you and your family.

Health Insurance

Health insurance is a type of coverage that pays for medical and surgical expenses incurred by the insured. It can also provide access to routine checkups, preventive care, prescription medications, and emergency services. Health insurance helps protect individuals and families from the financial burden of unexpected medical costs.

Health insurance can be purchased privately, through an employer, or via government programs like Medicare and Medicaid. Plans often come with different levels of coverage, premiums, deductibles, co-pays, and networks of healthcare providers.

Health insurance is essential for managing both planned and unplanned health expenses, giving you peace of mind and access to care when you need it most.

Types of Health Insurance

Individual and Family Plans

These are plans you can buy for yourself or your family if you’re not covered through an employer. Coverage options vary widely, and plans are usually categorized as Bronze, Silver, Gold, or Platinum, based on how costs are shared between you and the insurer.

Employer-Sponsored Health Insurance

Often more affordable, these plans are offered by employers as part of a benefits package. The employer typically covers a portion of the premium, and coverage can extend to spouses and dependents.

Medicare

Medicare is a federal health insurance program for individuals aged 65 or older, or for younger people with certain disabilities. It consists of different parts: Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage), and Part D (prescription drug coverage).

Medicaid

Medicaid provides health coverage for low-income individuals and families. Funded jointly by the federal and state governments, it covers a wide range of health services and varies by state.

Short-Term Health Insurance

Designed to fill temporary gaps in coverage, short-term plans offer limited benefits for a set period, usually up to a year. These plans are typically less expensive but may not cover pre-existing conditions or essential health benefits.

Catastrophic Health Insurance

This type of plan is meant for young, healthy individuals or those who want to protect themselves from worst-case medical scenarios. It has low monthly premiums and high deductibles, covering serious illness or injury after a large out-of-pocket threshold is met.

Why Health Insurance Matters

Without insurance, even minor medical procedures can be financially overwhelming. Health insurance helps you manage these costs and access preventive care that can detect issues early, before they become serious.

It’s important to evaluate your personal needs, financial situation, and health status when choosing a plan. A licensed insurance agent can guide you through the available options, helping you find the right coverage to protect yourself and your loved ones.

Whether you’re self-employed, between jobs, or simply exploring better options, we’re here to help you find the health insurance policy that fits your life.

Medicare is a federal health insurance program primarily for individuals aged 65 and older, as well as certain younger individuals with qualifying disabilities or conditions such as End-Stage Renal Disease (ESRD) or ALS. Medicare helps cover essential healthcare costs, but understanding how the different parts work—and which plan is best for you—can be challenging without expert guidance.

At Empower Financial Services, we are here to help you understand your options and make confident decisions about your Medicare coverage. Our licensed agents work with you to compare plans, explain benefits, and ensure you’re getting the most value and protection out of your coverage.

Parts of Medicare

Medicare Part A – Hospital Insurance

Part A covers inpatient hospital stays, care in skilled nursing facilities, hospice care, and some home health care. Most people do not pay a premium for Part A if they or their spouse worked and paid Medicare taxes for at least 10 years.

Medicare Part B – Medical Insurance

Part B covers outpatient care, doctor visits, preventive services, durable medical equipment, and some home health services. This part typically requires a monthly premium based on your income.

Medicare Part C – Medicare Advantage

Medicare Advantage plans are offered by private insurance companies approved by Medicare. These plans combine Part A and Part B coverage and often include additional benefits such as prescription drug coverage, dental, vision, and hearing care. Many plans also include wellness programs and other services not covered by Original Medicare.

Medicare Part D – Prescription Drug Coverage

Part D helps cover the cost of prescription medications and is available through private insurers. You can add Part D to Original Medicare or enroll in a Medicare Advantage plan that includes drug coverage.

Medicare Supplement Insurance (Medigap)

Original Medicare doesn’t cover everything. That’s where Medigap comes in. Medicare Supplement Insurance, or Medigap, helps cover out-of-pocket costs such as deductibles, copayments, and coinsurance. These plans are offered by private companies and are designed to work alongside Original Medicare.

Medigap plans can provide peace of mind by limiting your unexpected expenses and giving you more predictable healthcare costs. There are several standardized Medigap plans available, and our team at Empower Financial Services can help you choose the one that fits your needs and budget.

When Can You Enroll?

Understanding Medicare enrollment periods is crucial to avoid late penalties and gaps in coverage. Here are the key timeframes:

• Initial Enrollment Period (IEP): Begins three months before your 65th birthday, includes your birth month, and ends three months after.
• General Enrollment Period: January 1 – March 31 each year, for those who missed their IEP.
• Annual Enrollment Period (AEP): October 15 – December 7, when you can switch plans or make changes to your Medicare Advantage or Part D plan.
• Special Enrollment Period (SEP): Available under certain qualifying events, such as moving or losing employer coverage.

Why Choose Empower Financial Services?

Medicare isn’t one-size-fits-all. At Empower Financial Services, we believe in providing personalized guidance based on your unique healthcare needs and financial goals. Whether you’re looking for a comprehensive Medicare Advantage plan or a supplemental policy to reduce out-of-pocket costs, we’re here to walk you through every step of the process.

Contact Us Today

Don’t navigate Medicare alone. Our licensed agents are ready to help you understand your coverage, compare plans, and enroll with confidence. Let Empower Financial Services be your trusted partner in building a Medicare plan that works for you.