INSURANCE

Laura Mutsko Agent, CSA and Certified Healthcare Reform Specialist

Q: I make it a practice to go over my important papers every so often to make sure everything is in order. What kinds of mistakes have you seen people make regarding their insurance?

AInsurance errors are common and can be both expensive and heartbreaking for those closest to you. Here are some common mistakes for you to watch out for:

Not providing Authorization to Disclose Personal Health Information to Medicare

By law, Medicare must have your written authorization to use or give out your personal medical information for any purpose that is not set out in the privacy notice contained in the Medicare & You handbook. If you want to allow Medicare to give your personal health information to someone other than you, you need to let Medicare know in writing. You can go online to www.Medicare.gov or call 1-800-Medicare for more details. Neglecting to update your beneficiaries Everyone should review their insurance (including employer provided policies) every three years and after major life events, including marriage, divorce or the death of a spouse. It is vital that you change your beneficiaries when your circumstances change. It is not uncommon to find an exspouse listed as the beneficiary, especially on old pension plans and life insurance policies through long forgotten employers. Naming a minor child as your beneficiary Life insurance companies won’t pay life insurance proceeds directly to minors. If you haven’t created a trust or made any legal arrangements for someone to manage the money, the court may appoint a guardian — a costly process — to handle the proceeds until the child reaches 18 or 21, depending on the state. For your best course, consult an estate attorney to protect the interests of any minor children.

Making a dependent ineligible for government benefits

Naming a child with special needs as beneficiary may put that person at risk for losing their eligibility for government assistance including Supplemental Security Income (SSI) and Medicaid. Your best course of action is to consult an attorney to set up a special needs trust, and ask about naming the trust as beneficiary to the trustee you select can then manage the money for your dependent’s benefit. Your attorney can provide more details and guidance on this matter. Not letting anyone know Let someone know where to find your life, health, long term care or other insurance policies. It won’t benefit anyone to have to hunt for it, or even worse, lose out on the benefits if a policy is never found.

There are other areas to check. A smart move is to take some time to review your insurance and circumstances with a trusted insurance professional. If you need some assistance or have questions about life, health, long term care or other insurance, call me at 440-255-5700 or email me at Lmutsko@mutskoinsurance.com. For more information, visit our website at www.mutskoinsurance.com.