Where There’s a Will...

When working with life insurance clients, I usually (although not always, to my shame) ask if they have a valid, current will. Such an instrument is important for a number of reasons, not the least of which is to ensure that one’s final wishes are known, and (hopefully) carried out.

Wills generally cover the disposition of property, caring for any children, and charitable bequests. But what about one’s legacy?

Hunh?

We’ve all heard about “living wills,” but what about “ethical wills?” One of my absolute favorite books is “Ender’s Game,” by Orson Scott Card. In it, he introduces a person called a “Speaker for the Dead.” It is this person’s job to forthrightly report on the life of the dearly beloved, warts and all.

Absent such a person (it is science fiction, after all), an ethical will is a means for one to sit down with one’s estate planner and talk about life experiences, what one’s learned (and what one wishes had been learned), family history, personal stories (funny and sad), and the like. And, of course, how one wishes assets to be “divvied up.”

“In a recent Harris Interactive poll of 1,200 Americans aged 40 to 59, 77% of those surveyed said that knowing exactly their parent’s values was very important, while only 10% said it was important that they inherited financial assets from their parents. ” (ibid)

Hopefully, we’ve learned what our parents lived, and have, in turn, helped our own children adopt an appropriate value system. But I found this idea to be quite interesting: to not just assume that they know, but to ensure it.

Food for thought.

Monday Money...

With almost 40 posts, this week's Carnival of Personal Finance is a blockbuster. Compiled by host J.D. at Get Rich Slowly, each post has its own headline and recap.

My better half hates it when I don't leave 20% as a tip, even if the service doesn't warrant it. Plus, I always tip on the balance before tax, which also drives her nuts. Which is why I appreciated this post from David at The Good Human blog.

And a big Tip o'the Hat to David Hunter, proprietior of The Business of America, for filling in (at the last minute!) as host of this week's Carnival of the Capitalists. David aggregated over 40 posts, and even had time to include a brief description with each one. Kudos!

And if you're in the mood for something exotic to wash down your meal, check out this suggestion from AvantNews. Yummy!

Insurance Dispatch

The new column is up, and available at The Medical Blog Network.

This week, we look at how quickly and accurately health insurance carriers pay claims. There's even an interactive online tool to help out.

WeekEnd LinkFest

If you haven't checked out some of the other great sites on our blogroll, here's a sampler of what you're missing:

Joe Kristan at Roth & Co makes sense of the whole Estate Tax controversy (now that's an accomplishment!).

Over at the Health Business Blog, Eric Zimmerman has a great piece on how health care "consumerism" and internet-based information come together.

Jon Coppelman, co-host of Workers Comp Insider (which, BTW, plays host to the current Cavalcade of Risk), shows us that Mom was right when she told us to "stop that before someone gets hurt!"

And Bob Coffield at the Health Care Law Blog fills us in on the new Health Information Technology Promotion Act (now there's a mouthful).

High Risk Coverage

Premiums for the state's health insurance plan for high-risk people will rise in October - an increase that could force even more Nebraskans out of the program.

Premiums are expected to jump an average 23 percent - even more for older people buying lower-deductible coverage.

The plan is for people who do not have access to health insurance through employers and can't get coverage from private insurers, or would have higher premiums through private insurance

High risk pools, usually considered the answer to uninsurable conditions, are becoming more costly to run. Even with taxpayer subsidies the premiums paid by the insured is becoming cost prohibitive.

In 2004, more than 6,000 Nebraskans bought insurance through the state's Comprehensive Health Insurance Pool. By June, the number had dropped 10 percent, to 5,400

As the number of participants drop, the cost of providing cover for the rest of the pool increases as fewer dollars are available to pay claims. This results in even higher premium increases for those who remain in the pool.

State Insurance Director Tim Wagner said rising claims could exceed revenue in a couple years. The program is paid for by people's premiums and a subsidy from the state tax on insurance premiums.

With the increase, Nebraska will have some of the highest premiums for any state high-risk program in the nation, said Holly Whelan with the American Diabetes Association.

At least one state (Florida) closed their risk pool a few years ago to new entrants. Other states may follow and Nebraska may very well be the next.

Don't Buy Health Insurance

From the Indianapolis Star . .

The Aug. 1 editorial, "Do-it-yourself fixes for high health costs," neglected one significant step consumers can take to hold down costs: If you are relatively young and healthy, don't buy health insurance. Learn to distinguish between the cost of health insurance and the cost of treatment, and be aware that for the large majority insurance premiums are approximately five to 10 times the actual cost of medical care in any given year. For a family of four, the break-even point is about $4,000 to $5,000.

Great advice!

Only buy health insurance in the years where your expenses will exceed $5,000.

Dr. Goofy Look's at Reality

The University of Miami's 1-year-old primary-care practice in Key Biscayne, run by internist Dr. Pamela Merino, will close Sept. 1, leaving some village residents and employees looking for a new doctor.

Even though the university expected Merino's office to lose $50,000 to $80,000 a year, in the past 12 months it was almost $250,000 in the red, said Jerry Broderick, assistant chairman of the university's department of medicine.

''The loss was far greater than what we'd planned for,'' Broderick said. ``Professional fees and patient revenues were never at the level we had hoped to achieve.''

The university will keep its concierge practice, which charges $1,500 a person for more personalized services and preventive care not covered by typical insurance plans.