Insurable Interest Canadian Insurance Blog

What You Need to Know Writing a will can improve the transmission of wealth across generations, but many individuals do not have one. Approaching a client about writing a will is not a good idea when they are preoccupied with another complex financial transaction, research suggests. Financially sophisticated investors and homeowners were more likely to respond positively to financial incentives to write a will. Legacy planning experts know the most effective way to ensure that wealth transfers go to the intended recipients is for the donor to have an enforceable will, but many Americans who could benefit from writing a will neglect to do so. In fact, as detailed in a new report published by the Center for Retirement Research at Boston College, the percentage of households in which the head has a will is “surprisingly low,” such that, for those 50 and older, fewer than half of household heads have a will. By age 70, the share increases to 67% overall, but the rate is much lower for less wealthy households and for Black and Hispanic households. As the authors warn, this is a big financial security issue affecting American households today — one that financial professionals can help...

In a letter sent Dec. 2 to acting Labor Secretary Julie Su, the senators — including Joe Manchin, D-W.Va., and Ben Cardin, D-Md. — told Su that “given the broad impacts of this potential rulemaking, we are concerned that you are rushing this process.” Senate Finance Committee Chairman Ron Wyden, D-Ore., wrote in a separate letter to Su the same day that “given the many thoughtful comments” Labor received during its public hearings, held Dec. 12 and 13, Labor should extend the comment period by 30 days.

The new year starts Monday, and new Medicare rules and parameters will take effect. Here’s an example of how to answer a client question about what 2024 will mean for Medicare beneficiaries. The Question As we enter 2024, what should Medicare beneficiaries know about program updates? The Answer This year, Medicare beneficiaries will see changes in costs and changes in a major plan comparison tool. Medicare Part A Changes The Medicare Part A program covers inpatient hospitalization expenses. The Medicare Part A deductible will increase to $1,632 in 2024, from $1,600 in 2023. This change, albeit modest, could affect clients who go to the hospital. Coinsurance costs and skilled nursing facility costs are also rising. Coinsurance costs will rise to $408 per day for days 61 through 90 of hospitalization, up from $400 in 2024. The coinsurance cost for skilled nursing facility care will increase to $204 for days 21 through 100, from $200. Medicare Part A Premiums A majority of Medicare beneficiaries do not pay Part A premiums. For clients who have paid payroll taxes for 30 to 39 quarters, the premium will hold steady at $278 per month. For clients who have paid payroll taxes for fewer than...