Let's be honest… the job market is awful right now. The Bureau of Labor Statistics recently revised the July and August job reports, lowering previous estimates by 60,000 jobs.

This means that if you're looking for work, you might have to get creative with your job search. One of the most effective ways to earn extra cash is through side gigs. And the answer to your next quest could be sitting in your garage or driveway.

Below, I'll walk through key factors to weigh before starting a car-based side gig, along with several smart ways to put your car to work.

A few things to consider before choosing a side hustle

Before picking a path, look under the hood of your expected expenses. Fuel costs top the list: Unless you drive a hybrid or an EV, rising gas prices can quickly eat into your profits. But that's only one consideration:

Maintenance

Next, consider wear and tear. Car repairs are not cheap, and oil changes can be heartburn-inducing. How much should you budget? NerdWallet found that drivers spend 11.7 cents per mile on vehicle repairs.

The more miles you put on your car, the sooner you'll need new tires, brake replacements and other maintenance, all of which can eat into your earnings. Costs also vary by vehicle type. Electric vehicles don't require oil changes, but their weight and instant torque can contribute to faster tire wear. Hybrids still require engine maintenance, although regenerative braking can help extend brake life.

Taxes

Income from a side hustle is generally taxable, even if you earn less than $400. If your net self-employment earnings reach $400 or more, you'll generally also owe self-employment tax, which is 15.3% for Social Security and Medicare.

You may be able to reduce your taxable income by deducting eligible business mileage. For July through December 2026, the IRS allows a deduction of 76 cents per business mile, up from 72.5 cents during the first half of the year. An app like MileIQ can help you track your business trips and maintain records for tax purposes.

Insurance

Lastly, consider how using your car for a side hustle could affect your auto insurance. Driving more or using your vehicle for business purposes could increase your premiums or require additional coverage.

Before getting started, contact your insurance provider to find out whether your existing policy covers your planned activities. Depending on the side hustle, you may need a rideshare endorsement, business-use coverage or a commercial auto insurance policy.

Failing to disclose business use could leave you without coverage if you're involved in an accident while working.

If you haven't compared auto insurance rates in a while, use the Bankrate tool below to explore your options:

Doing your homework ahead of time can help you steer clear of any surprise expenses.

Smart car side hustles with minimal wear and tear

If your goal is to boost your income without running your vehicle into the ground, consider these high-efficiency alternatives to traditional rideshare or food delivery apps:

• Peer-to-peer car sharing: Platforms like Turo or Getaround let you rent out your car to other drivers. The best part? You can set custom mileage limits to reduce wear and tear.
• Vehicle advertising & wrapping: Services like Wrapify or Carvertise pay you for commuting with commercial decals applied to your car.
• Pet taxi & transport services: Helping pet owners transport animals to grooming appointments, vet visits or daycare often commands higher rates per trip than standard rideshare passengers.
• Localized hyper-local errands: Focusing on grocery, catering or localized neighborhood courier services within a tight radius can minimize fuel consumption and wear.
• Your car goes Hollywood: If you live in a larger city, many talent agencies have casting calls for vehicles in movies, TV shows and ads. While having a luxury or antique car helps, I've seen ads for regular sedans and SUVs too.
• Become a personalized driver: I know someone who drives people to and from the airport, and that side hustle became his full-time job.

This list notably omits standard rideshare services like Uber or Lyft. High-mileage driving rapidly multiplies your expenses for gas, tolls, oil changes and ongoing maintenance.

And those costs add up. AAA's Your Driving Costs study estimates that owning and operating a new vehicle costs an average of $12,863 annually, or about $1,072 per month, when driven 15,000 miles annually over five years. That includes depreciation, financing, fuel, insurance, maintenance and fees.

Unless you are primarily looking for an opportunity to get out of the house and socialize during retirement, full-time rideshare driving rarely delivers the best net return on your investment.

Ultimately, using your car as a side hustle can be an easy way to earn more income. However, your success requires careful planning.

By choosing side hustles that reduce wear and tear, such as car sharing, vehicle advertising or local deliveries, you can keep your side hustle profitable without destroying your car.

Related content

• The 7 Best-Paying Side Gigs For Retirees
• How Does Car Insurance Work for Ride-Sharing Drivers?
• Before You Dive Into a Side Gig, Consider These Issues

The topic of this week's column comes from a vexed landlord, who writes: "Mr. Beaver, over the past two years I have been involved in a lawsuit from a guy who literally stubbed his toe on a tiny object sticking up from the sidewalk in front of a small strip mall I own.

"[My defense attorneys] could have taken his deposition early in the case, but did not, and tried to bring in the city, which was an expensive lost cause. They refused for months to tell me how much my insurance company was paying them.

"The case finally settled for peanuts — which could have been offered early on. Was I the victim of a conflict of interest with the law firm?"

How can property owners recognize when their insurance-appointed defense attorneys may be prolonging litigation and driving up legal fees rather than pursuing an efficient resolution?

I ran that question by Shant Karnikian, managing partner at Los Angeles-based Kabateck LLP. He provided practical guidance on how property owners can protect themselves during settlement, including verifying medical liens and bills, reviewing settlement language, and spotting provisions that could improperly release attorneys from liability.

"As a plaintiff's trial lawyer," Shant said, "I sue the people and businesses responsible for injuries. I also represent policyholders against their own insurance companies — folks who are being sued but having trouble getting their insurance company to protect them in that lawsuit. So I understand exactly where insured parties get hurt, often by the very insurer that's supposed to protect them — a company they've paid high premiums to for years.

"The bottom line policyholders need to understand: Your insurance company isn't your friend, even when it's paying your lawyer. And the defense lawyer they provide may have a conflict of interest."

Reservation of rights letter

I asked Shant if he could explain what it means if you receive a reservation of rights letter from your insurance company or the lawyer they hire to represent you.

"This usually means, 'We'll defend you, but we may not pay,'" he said. "These letters rarely spell out that you may have to fund the settlement."

To understand why, it's helpful to know how the insurance for liability coverage works.

Duty to defend vs duty to indemnify: The carrier (insurance company) must provide (appoint and pay for) a lawyer if a claim against you involves even a potential for coverage. However, the insurer must pay a settlement or judgment only for claims that are actually covered.

"That gap is where the insured often gets burned," Shant said. "Furnishing a defense does not necessarily mean they will fund your settlement (indemnify) ­— it depends on your policy."

So it would seem that having an appointed lawyer creates a false sense of security. Would it be wise to consult with your own lawyer to make sure the insurance company is doing the right thing?

"Yes," Shant agreed. "We represented a plaintiff injured on a homeowner's property. The carrier appointed defense counsel, so the homeowners thought they were covered. Only at settlement discussions did the carrier reveal it wouldn't contribute anything. The homeowners had to pay out of pocket.

"The carrier lulled them to sleep by creating the impression that defending them in the lawsuit also meant that they would pay for all damages."

The three-way relationship conflict

"While the law firm represents you," Shant said, "the carrier pays them and sends them repeat business. This creates a conflict of interest, incentivizing your defense attorney to protect the insurance carrier.

"For example, if facts come up in the case that affect your coverage, the way counsel handles them can shape whether or not you're covered — and, therefore, help determine whether the carrier has to pay out on the claim.

"This conflict may entitle you to independent counsel paid by the carrier and depends on your state's law."

Shant listed several red flags that suggest a serious conflict of interest:

• There's been no early case evaluation or settlement push.
• Defense conducts heavy discovery and motion practice on a small case.
• Defense says, "Plaintiff hasn't made a demand yet." (Nothing stops your attorney from making a demand or offer.)
• You receive no status reports or budget.
• Defense files costly cross-complaints when cheaper options exist, such as offering to pay policy limits to settle the case.

If you spot any of these, you should immediately consult a lawyer you've selected to monitor what the defense attorney is doing.

It's also important to realize that how much the attorney bills matters to the policyholder, even when the insurance company is paying for the defense lawyers.

First, you may still be paying deductibles.

Second, you may have a policy in which defense costs reduce limits. Future premiums may be affected by how much it costs to defend the case. The longer it takes to resolve, the greater the risk the case may grow beyond your coverage or limits.

What should you do if you're in this situation?

• Tell the carrier and defense counsel in writing that you want the case settled within the limits of the insurance policy as soon as possible.
• Instruct the defense attorney to communicate with you about every settlement demand and offer. If you receive a reservation of rights, ask in writing: "Will you fund a settlement? If not, why not?"
• Consider hiring your own lawyer to watch the carrier and push it to get you out of harm's way.

At settlement

• Make sure the entire case gets dismissed, including cross-complaints.
• Make sure that any release you sign doesn't include a release of claims you may have against the insurance company.
• Get confirmation that your insurance company won't be coming after you for money it pays out.

Bite-sized piece of advice

"A lawyer showing up to defend you is not the same as your insurance company agreeing to pay," Shant cautioned. "Waiting for a demand isn't a strategy. It's a reason to bill another month.

"A few thousand dollars for your own lawyer to watch the insurance company can be the best money you spend in a lawsuit."

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

A high-income earner can save diligently for decades and still face a tax problem in retirement: Most of their savings could be concentrated in accounts in which withdrawals are taxed as ordinary income, with limited flexibility to manage those taxes.

Direct Roth eligibility may have phased out years earlier.

Indexed universal life insurance, or IUL, can address part of that issue. It provides a death benefit, while its cash value could create a supplemental source of money later in life.

For people who have maxed out traditional tax-advantaged accounts and want more control of retirement income sources, IUL might deserve a closer look.

Cash value grows tax-deferred inside the policy, and the owner could later access it through withdrawals and policy loans that are generally not subject to current income tax. This only works if the contract is properly structured and stays in force.

That combination of tax-deferred growth and potentially tax-advantaged access is what differentiates IUL from other retirement savings vehicles.

LIMRA (the Life Insurance Marketing and Research Association) reported record IUL premiums in 2025, up 17% from the prior year. Growing sales do not by themselves establish that a product is appropriate for any client. Still, they show increasing interest in how permanent life insurance might fit into a modern financial plan.

High earners run out of familiar tax-advantaged space

The issue becomes more visible during peak earning years. For 2026, employees can contribute up to $24,500 to a 401(k), excluding catch-up contributions. Direct Roth IRA eligibility phases out from $153,000 to $168,000 for single filers and from $242,000 to $252,000 for married couples filing jointly.

Those limits are not an automatic reason to buy life insurance. Consider workplace plans, health savings accounts, backdoor Roth strategies, taxable investments and adequate liquid reserves first. Still, a high earner with surplus cash flow and a legitimate need for permanent insurance might have room for another layer.

Cash value can add another retirement-income layer

An IUL policy builds cash value and credits interest partly based on the performance of an external index. The money is not invested directly in that index. Caps, participation rates, spreads, guarantees and policy charges determine how much interest is credited.

Growth inside the policy is tax-deferred. The owner can later access cash through withdrawals and policy loans, potentially without current income tax if the contract is properly structured, avoids modified endowment contract status and stays in force. That access might supplement qualified-plan distributions, Roth withdrawals, taxable investments and guaranteed income from annuities.

This additional income source might help during a high-tax year, after a market decline or before tapping another retirement asset. Tax flexibility is a key argument for IUL. The policy doesn't need to replace a retirement account to contribute meaningfully.

The right buyer needs more than a high income

The strongest candidates for an IUL tend to share several characteristics:

• They are typically from ages 40 to 55 and have time to fund the policy before taking income.
• They have stable surplus cash flow after addressing other retirement priorities and liquidity needs.
• They need permanent life insurance for family, estate or business reasons.
• They understand that early surrender can be expensive, and a long-term time horizon is part of the strategy.

Someone with inconsistent income, limited reserves, a short time horizon or no insurance need likely requires a different solution. IUL might work best when both sides of the contract matter: protection for beneficiaries and carefully managed access to income for the policyowner.

Tax advantages don't remove policy risk

Loans accrue interest and reduce cash value and the death benefit. A policy that's been heavily borrowed from can lapse, potentially creating taxable income at an unfavorable time. Policy charges continue, interest-crediting terms can change, and illustrated results are not guaranteed.

Prospective policyowners should review lower crediting assumptions, changing policy terms, interrupted premiums and rising loan balances before committing.

The NAIC's life insurance illustration guidance helps frame that review. AI-enabled planning tools can quickly compare funding and loan scenarios. Still, they can't determine whether the death benefit is necessary or whether the owner can sustain the policy for decades. Regular human review and current in-force illustrations still matter.

Decide what the next dollar needs to do

For financial advisers, at the next review with a high-income earner, map the tax treatment of their existing retirement assets. Then ask where the next long-term dollar should go and what job it needs to perform.

If traditional savings options are already addressed, permanent coverage is needed and another potential source of tax-advantaged money might strengthen the income plan, compare an IUL with the available alternatives. Use conservative projections, explain the conditions plainly, and build annual reviews into the recommendation.

Life insurance is designed to protect people after a death. For the right high-income earner, a properly designed IUL policy might also support decades before that.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Most people know the basics of building financial security include saving consistently, investing for growth, managing debt and preparing for retirement.

The challenge facing many Americans is that financial strategies tend to focus on numbers while overlooking something equally important: Family communication.

Lincoln Financial's latest Consumer Sentiment Tracker found that 78% of families surveyed haven't had an in-depth conversation about life insurance, for example. It also found that 60% of adult children believe their parents have life insurance coverage in place, while only 44% of parents say they do.

The disconnect extends beyond life insurance. Similar gaps exist around retirement income, healthcare costs and wealth transfer.

What I find interesting isn't just the data. It's what it reveals about how families approach a financial strategy.

Many people assume critical decisions have already been discussed. They assume their spouse understands the decisions that have been made. They assume their children know where important documents are. They assume their parents have taken care of everything.

Sometimes those assumptions are right, but often they're not.

That's why I believe financial protection starts with conversation.

Why communication is becoming more challenging

Today's families are juggling more financial responsibilities than ever.

Many adults are trying to save for retirement while helping children through college. Some are supporting aging parents while managing mortgages, careers and their own long-term goals. Others are navigating questions about healthcare, caregiving and legacy at the same time.

As financial realities become more complex, communication becomes more important. Yet this is often the first thing to get postponed.

Nobody wakes up on a Saturday morning excited to talk about life insurance, healthcare costs or estate decisions. These conversations can feel uncomfortable. They can feel premature. Sometimes they can even feel unnecessary.

After all, if everything seems fine today, why bring it up?

The problem is that many financial decisions don't become important when they're made. They become important years later.

The families that seem most confident in their financial decisions aren't necessarily the ones with the largest portfolios or the most sophisticated strategies. In many cases, they're the families that have created clarity around who is responsible for what, what protections are in place and what they want their future to look like.

Life insurance awareness starts with creating clarity through conversation. That may sound simple, but many families still haven't taken that first step.

Life insurance is part of a bigger financial picture

One of the reasons life insurance gets overlooked is because people often think about it separately from the rest of their financial strategy.

Retirement preparation goes in one bucket, investments go in another, and insurance sits somewhere else.

But in reality, every financial decision is connected.

The amount of risk someone is willing to take in an investment portfolio may depend on the protections they have elsewhere. Meanwhile, healthcare needs, estate planning considerations and family obligations can all affect the type of financial protection that makes sense for a specific situation.

That's why I've long believed life insurance should be considered alongside saving, investing and preparing for retirement as part of a comprehensive financial strategy.

It's important to ask whether someone's overall strategy reflects the life they're building today and the responsibilities they want to prepare for tomorrow.

A family with young children may have different priorities than someone approaching retirement. A business owner may need different protection than a salaried employee. Someone caring for aging parents may face entirely different financial considerations.

The goal isn't to arrive at a universal answer.

The goal is alignment between financial decisions and financial realities.

Moving from assumptions to informed decisions

The good news is that closing the conversation gap doesn't require a complicated financial approach.

Most families don't need to start with spreadsheets, policy reviews or legal documents.

They need to start with goals.

Ask questions like:

• What are we trying to protect?
• Who depends on us financially?
• What would happen if one source of income disappeared?
• Are there responsibilities we haven't accounted for?
• Does everyone understand the decisions and protections in place today?

Those questions tend to open the door to more meaningful discussions about financial protection, retirement goals and long-term priorities.

From there, families can begin identifying areas that need more attention and move from assumptions to informed decisions.

Five ways to close the conversation gap

1. Treat life insurance as part of your financial strategy

Review life insurance the same way you'd review retirement accounts, investments or estate documents. Financial protection deserves a seat at the table alongside every other major financial decision.

2. Identify who's impacted

Financial decisions rarely impact just one person. Consider spouses, children, aging parents, business partners or anyone who depends on your financial wellbeing.

Talking across generations helps create a shared understanding of responsibilities, priorities and expectations before important decisions need to be made.

3. Start with goals, not policies

People connect more easily to conversations about family, security and future priorities than they do to policy features or coverage amounts.

Focus first on the people and goals you're trying to protect. The technical details can follow.

4. Check assumptions against reality

Ask yourself what you're assuming to be true. Then verify it.

• Do family members know where important documents are located?
• Have beneficiary designations been reviewed recently?
• Would the people who matter most know what steps to take if something happened tomorrow?

Assumptions are often where financial gaps begin.

5. Bring a financial professional into the conversation

A financial professional can help evaluate protection needs, identify blind spots and ensure life insurance is viewed within the context of a broader financial strategy.

Their role isn't just to recommend solutions. It's to help create clarity and guide informed decision-making.

A better way to think about life insurance

Lincoln's research suggests that for many families, there are important financial conversations left to have. The issue isn't a lack of interest in protecting loved ones. Most people care deeply about that.

The issue is that many families have never confirmed whether everyone's understanding of the family's financial decisions and protections matches reality.

Closing the conversation gap won't solve every financial challenge, but it can help families create clarity before it becomes urgent.

And it can help ensure life insurance plays the role it was intended to play from the beginning: Helping protect the life families are building today.

The conversation doesn't have to be perfect. It just has to start.

Lincoln Financial is the marketing name for Lincoln National Corporation and its affiliates, including issuing insurance company The Lincoln National Life Insurance Company, Fort Wayne, IN, and wholesaling broker-dealer, Lincoln Financial Distributors, Inc., Radnor, PA. LCN-9117890-090926

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you are a homeowner, you've already noticed your home insurance premiums aren't just creeping up. For many, they're soaring – up nearly 37% nationwide over the last decade, according to data from the Federal Reserve. Meanwhile, car insurance premiums have jumped over 50% in the same time period.

The impact has hit some states harder than others, and a study published this week by Bloomberg Intelligence found that the problem is so widespread that most homeowners are now spending more on insurance than they are on property taxes.

Between higher mortgage rates and higher home prices (which come with higher property taxes), homeowners in today's market are already feeling squeezed. Tacking on soaring insurance rates is just one more thing inflating your monthly escrow payment. Here's what the study found and what you can do about it.

Insurance premiums are a bigger burden than property taxes for most homeowners

In October, the average cost of home insurance nationwide hit $2,808 per year, according to Insurify. But some states are seeing even more expensive home insurance premiums. Nebraskans, for example, have seen rates soar 79% over the last 10 years, according to the Bloomberg analysis.

Among the major reasons cited for the historically high rates are increased climate change-related risks as well as rising home values and the rising cost of repairs. Similar reasons are cited for car insurance, which the study also tracked.

When the two are bundled together, the total cost amounts to a substantially higher bill than property taxes for homeowners in 75% of counties nationwide. On average, Bloomberg found that home insurance alone is about 14% more expensive than property taxes in these counties. When you add in car insurance, the average price difference hits 30%.

In some regions, particularly in the Southeast, insurance premiums can be as much as four times higher than a typical property tax bill.

Ways to lower your insurance premiums

Seeing headlines like this at a time when just about every other part of your budget is also hurting from inflation is hard. While you may not be able to completely reverse the skyrocketing prices you're seeing, there are some steps you can take to push the rates you pay back down.

Before you buy a house

If you don't own a home yet and this news is making you reconsider whether you're ready to take the leap, here are some tips to try before the move to minimize your future monthly payments:

• Buy less house. While a big house sounds nice, more house means more coverage requirements. If you're willing to make a slight tradeoff – even downsizing your search from, say, a four-bedroom to a three-bedroom or the same room count but in a smaller footprint – you'll be rewarded with lower premiums.
• Look for newer construction. This strategy can be tricky to balance. New construction is typically cheaper to insure, but the home price might be higher than something a little older. It's probably not worth buying a more expensive home purely in hopes of seeing a lower insurance bill. But if you're deciding between two homes at a similar price point, the newer one might come with slightly lower rates.
• Check the flood hazard zone. The FEMA flood maps are an imperfect tool for evaluating a home's actual flood risk. But insurance companies do use those flood zone designations when setting rates. Choosing a home with a lower risk according to the map can lead to savings on insurance.
• Find the closest fire station. A home that's minutes away from a fire station will cost less to insure than one that's further out. Spotting a fire hydrant on the street is also a good sign that an insurer will view this as a lower-risk property.
• Skip the backyard pool. Alright, if your heart is set on having your own pool, get it. But know that the pool will mean a higher insurance premium. They're seen as a liability hazard by most insurers. So if it isn't on your "must-have" list, it's better to skip the pool and use your premium savings (and pool maintenance savings) to instead get a membership to a gym that has a pool or a local community pool.

If you're already a homeowner

For those who already own a home, you might feel like your options are limited. Moving into something cheaper to insure might be out of the question if you locked in an interest rate far lower than what's available today. But you do still have some tricks up your sleeve to tamp that premium back down:

• Replace your aging roof and systems. If your home is older and in need of a new HVAC system or new roof, making those upgrades (and then telling your insurer about it) can lead to serious savings. The same goes for older plumbing and wiring – though those can be more costly and difficult to replace if you're not already planning a major renovation.
• Do some DIY fireproofing. For those in California or other places with a higher fire risk, taking steps to fireproof your home can result in lower premiums. In some cases, the savings could be in the thousands if the fireproofing is enough to get you off the FAIR plan and onto a standard home insurance policy. If that's your goal, call your insurer ahead of time and find out what kind of fireproofing measures you should do to make the switch.
• Pay your policy in full up front. This works for both home and car insurance. Many insurers offer a paid-in-full discount that can knock a couple hundred bucks off of your bill. It's not exactly a windfall, but it's an easy way to trim your costs down a bit.
• Raise your deductible. If you have a healthy emergency fund, it can be worth leveraging that to lower your premiums. A higher deductible means you're agreeing to shoulder more of the costs of any covered damages. But if your emergency fund can bear the deductible amount, that tradeoff could shave another couple hundred bucks off of your bill.
• Shop your insurance ahead of every renewal. Switching home insurance won't always lead to savings, but it often will. It only takes a few minutes to compare quotes online and could end up saving you hundreds every year. If you don't find a cheaper quote, at least you will know for sure that your current rate is the best available.

Start the hunt for a better rate with our home insurance comparison tool below:

Related content

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Dear Wealth Wise: My husband and I are 65 and 66, respectively, and retired. Our financial adviser suggested a $250K life insurance policy for each of us that could also cover nursing home care. The total cost would be about $15K a year, or around $7.5K for each. Is this a good rate or even a smart idea at our age? They would take the money directly out of our retirement fund and we would be paying tax on the amount withdrawn. We also have two adult children, and we are trying to figure out the best route to minimize their taxes once we pass. — Policy Perplexed

Dear Policy Perplexed: Long-term care costs are hitting retirees hard. CareScout puts the average annual cost of assisted living in 2026 at $82,482, while a shared nursing home room costs $118,424. Even well-off retirees can struggle to cover these expenses, especially when care is needed for multiple years. That’s why some financial experts recommend long-term care insurance.

While a pair of $259K hybrid insurance policies sounds comprehensive, the $15,000 annual premium is a heavy lift. Is it worth paying? Here’s what our experts have to say.

Is the $7,500 cost per person a deal-breaker?

Unfortunately, the later in life you apply for long-term care insurance, the more expensive your premiums are likely to be.

Sonja Breeding, CFP, CCFC, and Senior Vice President, Wealth Management at Rebalance, says, "At their ages, $7,500 a year per person is within a reasonable range, but I'd want to know whether that premium is paid for life or only for a set number of years, such as 10.”

As Breeding explains, it’s one thing to pay $7,500 a year per person for 10 years. It’s another thing to pay $7,500 a year for 20 or more.

Nicholle Overkamp, MBA, ChFC, CDFA, Founder and CEO of Wilcox Financial Group, isn’t necessarily put off by the rate either. But, she says, "My first question wouldn't be whether $7,500 per person is a good insurance rate. It would be, 'What problem are we actually trying to solve?'”

Given our couple’s age, Overkamp says she’d be cautious about committing $15,000 annually to new insurance policies without understanding the couple's complete financial picture, including their existing assets and financial goals.

Does our couple need long-term care insurance?

Since we don’t know how wealthy our couple is, it’s hard to know whether they need long-term care insurance or whether they’re in a position to self-fund it.

"If this couple has accumulated enough wealth to comfortably self-fund potential long-term care expenses, purchasing expensive insurance may not be the most efficient use of their assets," Overkamp says.

"Insurance is about transferring risk,” she continues. “If they can absorb that risk without jeopardizing their financial security, maintaining control of those assets could be a better strategy."

We also don't know how healthy the couple is. At ages 65 and 66, securing a hybrid life and long-term-care policy requires passing rigorous medical underwriting. If either one has pre-existing conditions, they could be denied coverage or face steep premium surcharges.

What’s the actual benefit?

Another missing piece of the puzzle is what the proposed insurance policy would actually cover.

Before committing, our couple needs to look past the $250,000 death benefit per person and evaluate the care payout details, Breeding says.

"The most important missing piece is the long-term care benefit itself,” Breeding says. “Let's assume this is a standard hybrid life and long-term care policy. A $250,000 death benefit often pays around 2% per month for care, or about $5,000 a month for roughly four years. Many policies also include an extension rider that continues payments for another two to four years after the death benefit is used up, which can bring the total care benefit to $500,000 or more per person.”

But Breeding’s assumptions are just that. Our couple needs to see exactly what coverage they’ll have for long-term care, especially if the policy's main purpose is to pay for that rather than provide a death benefit for heirs.

Understand the hidden costs of funding insurance premiums

Our experts both caution that withdrawing funds from pre-tax retirement accounts to pay for insurance premiums creates hidden tax drags and missed growth opportunities.

"The proposed premiums would be funded through retirement account withdrawals, potentially creating additional taxable income, increasing Medicare premiums, and reducing invested retirement assets," Overkamp says.

"Over 20 years, that's $300,000 in premiums alone, assuming payments continue that long. That doesn't include the income taxes or potential investment growth they're giving up. Before making this commitment, I would want to see an analysis of the actual after-tax cost and what those dollars could accomplish elsewhere."

Breeding agrees.

"Paying premiums from a pre-tax retirement account makes the policy more expensive than it looks,” she says. "To net $15,000 for premiums in a 22% bracket, they'd need to withdraw more than $19,000. If they have cash or a taxable account, that's usually a better source."

Tax-efficient wealth transfer strategies

Our couple wants to ensure their needs are met while minimizing taxes for their heirs. Breeding says that, given that goal, a long-term care policy with a death benefit could make sense, provided the terms of the policy work for our couple.

"There's actually a silver lining here." Breeding explains that without the life insurance policy, "their kids would inherit an IRA and have to pay income tax on it within 10 years, likely during their peak earning years. Using IRA dollars to buy a tax-free death benefit converts taxable money into tax-free money for the next generation."

That said, Breeding points out that Roth conversions "accomplish something similar and are worth comparing" before buying the insurance policy.

They should keep in mind that federal estate taxes only hit ultra-high-net-worth households (currently over $15 million for an individual or $30 million for a married couple). That said, if they live in one of the 17 states (plus Washington, DC) that levies an estate or inheritance tax, that should affect their planning too.

Key questions to ask before buying the insurance

Whether a hybrid life and long-term care policy makes sense for our couple depends on a lot of specifics. To help them decide, Breeding suggests that they ask their adviser these four questions:

1. What’s the monthly care benefit, and is there inflation protection?

2. Are the premiums guaranteed, and for how many years are they paid?

3. Is there a joint policy option with shared benefits that might cost less?

4. Is there any return of premium if we change our minds?

The couple could also seek a quote for a traditional, standalone long-term care policy, which strips out the life insurance component and is often cheaper.

Finally, Breeding explains, these types of insurance policies typically pay a commission, so our couple should ask point blank how their adviser is compensated for selling them one. And if they’re inclined to buy the policy, Breeding says, “A second opinion from a fee-only fiduciary is worth getting.”

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our writers and experts in this advice column are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial adviser regarding any questions you may have in relation to the matters discussed in this article.

Read More

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• We Are 63 With $5.7 Million. My Wife Wants to Buy Long-Term Care Insurance, but I Want to Self-Insure. Who Is Right?

My mom died unexpectedly one month after creating her will. She was sure to include a clause that funds from her estate could be used to cover costs, like her memorial service, and had spoken to me about how she'd named me executor and how she made sure money was available for those immediate expenses.

Though she'd planned to make the process as logistically and financially simple for me as possible through her estate planning, that quickly changed after her death. My mom's death was unattended, and the state of Massachusetts performed an autopsy. Months later, we still don't have the results. I have a death certificate listing her cause of death as pending, and her bank won't accept it, so I can't do something as simple as deposit her vacation payout from her employer. I won't have access to her estate funds anytime soon, and despite having a will, her estate has to go through probate.

My family's situation isn't unusual, and it's added financial stress to an emotionally turbulent time. I spoke with three attorneys to learn about why this happens and what you can do to avoid this. Here are five situations that might happen after a death despite your estate planning efforts. These situations may delay your heirs from being able to access the money you set aside for immediate expenses like funeral or memorial service costs, mortgage payments and more.

1. A death certificate may create challenges for your beneficiaries

A death certificate is a legal document that includes details about a death, including its date, time, location and cause. It's needed to begin the probate process, access or close bank accounts, claim a life insurance policy and more. If you've left money in a bank account to be used for expenses after your death, your beneficiaries will need a death certificate to access that account.

Things get more complex if an autopsy is performed. In some situations, a cause of death is clearly evident, but in others, it can be more complicated, necessitating an autopsy. Autopsies are particularly important and common when someone passes away at a young age, and they can provide a family with important peace of mind.

If an autopsy is performed, beneficiaries may receive a death certificate listing the cause of death as pending. When the autopsy results are available, that certificate can be updated to reflect the official cause of death.

Several financial transactions may require an official cause of death. "With a lot of financial assets, especially life insurance, the cause of death ultimately determines if the funds get paid out and how much they get paid out," says Kelsey Simasko, Attorney at Simasko Law. Since many life insurance policies have exclusions for suicide, illegal drug use or deaths that occur in a felony, life insurance won't pay out a policy until the insurer knows how an individual died.

"A lot of life insurance policies have riders for accidental death, so you need the official cause to determine if it's accidental and if the family should be paid out triple the policy," says Simasko.

Banks and credit unions may or may not accept a death certificate listing a cause of death as pending. According to Simasko, such financial institutions operate according to their own internal policies regarding whether to accept a death certificate with a pending cause of death. Most institutions would rather be safe than sorry, so beneficiaries may not be able to access an account at all until they have a death certificate with an official cause of death.

2. Autopsy results could delay a final death certificate

If an autopsy is performed, a beneficiary may need to wait on the final autopsy report before being able to proceed with tasks like accessing a bank account or claiming a life insurance policy. Unfortunately, the amount of time that a family may wait for a final report and death certificate may very significantly.

Benjamin Trujillo, Partner J.D., LL.M. at MONETA, explains that while the autopsy may be completed quickly after a death, toxicology and other laboratory work can extend that timeline. "Some tests can take more than a year with a backed-up lab," he says.

Simasko adds that location also affects autopsy processing timelines. Highly populous counties, such as those encompassing major cities, typically have a much larger backlog of autopsies to perform and process. In contrast, the process will likely be much faster in a small county.

3. Your bank account might be automatically frozen

Financial institutions often automatically freeze a bank account after the account holder dies. According to Elizabeth Acevedo, Shareholder/Director at Weinstock Manion, this can occur if someone calls and notifies the bank, or if a staff member sees an obituary in the news.

When older adults pass away, account freezes may be caused by benefits. "One of the most common things that triggers [an account freeze] is if the person was receiving any benefits," Acevedo says, such as Social Security benefits. "The Social Security Administration is one of the first ones to learn of the death, and they're the first to recover any additional payments that have been made. This often alerts banks."

According to Simasko, once an account is frozen, a beneficiary listed on the account will have to fill out paperwork to be able to access the account. If there's no beneficiary, a bank can't release any money until they receive an order from the probate court.

Trujillo explains that people are often surprised that being named as executor in a will doesn't necessarily give them immediate authority over the deceased person's assets. "You are nominated in the will, but you typically receive your legal authority through the probate process and after receiving what is called 'letters testamentary,'" he explains. Letters testamentary are legal documents issued by a probate court that give an executor the authority to manage an estate.

4. Your estate may have to go through probate

It's a common misconception that a will allows your beneficiaries to easily access your estate, but many people don't realize that a will must pass through probate.

According to Kiplinger's Trillion Dollar Talk survey, conducted by Morning Consult, 41% of parents have a will. But having one doesn't necessarily mean their loved ones can avoid probate.

"Having a will does not avoid probate — it almost guarantees some probate," says Trujillo. He explains that the will identifies who should receive the property left in the estate and who should administer the estate, but probate, the legal process of putting those instructions into effect, is overseen by the court.

Small estates may qualify to avoid the probate process, but the threshold for small estates varies significantly by state. In Massachusetts, that threshold is $25,000, excluding the value of a car. In California, the threshold is $107,900 for deaths occurring on or after April 1, 2025.

Many people are also surprised by the cost of the probate process. In addition to possibly retaining a lawyer, the court charges fees, including fees to open and administer probate, plus an inventory fee. In some counties, an inventory fee is a percentage of the total value of the estate's assets, while other counties charge a flat fee based on the asset value.

The probate timeline may vary, potentially taking months to years. Acevedo explains that the probate duration can depend on many factors, including how busy the court is and when hearings are set. "When I file a petition to close an estate, it's likely the hearing will be set three months from now," she explains. "There's just this drawn-out period that is truly a function of the fact that you are in court."

The decedent's organization can also impact the duration of probate. The process of unearthing assets can be time-consuming and challenging, especially if a beneficiary can't get into the decedent's email account. In such a situation, the process might involve reaching out to a CPA, going through mail, reviewing prior tax returns to identify income sources and running title searches.

5. Your beneficiaries might pay significant expenses out of pocket

Even if you have a will, your beneficiaries may not be able to access the money you'd set aside for immediate expenses after your death. They may have to cover those costs out of pocket.

Funeral costs may be substantial, and many people underestimate the costs. According to the Choice Mutual 2025 Funeral Cost Perception Report, more than half of adults ages 45 and older estimate funeral costs to be less than $10,000. However, experts report that when you account for expenses like the services, casket, printed materials and body transportation and preparation, costs can quickly approach $15,000 to $20,000.

Cremation is a lower-cost alternative. The National Funeral Directors Association reports that the median cost of a cremation, including a memorial service and body viewing, is $6,280. However, costs can still vary significantly by state.

Simasko says that families may have some flexibility in these situations. She notes that funeral homes understand that it often takes families some time to get their finances lined up, and they're typically willing to send a family a bill.

She adds that mortgages can often be left unpaid for about three months before a mortgage lender starts to talk about foreclosure. If a family can't cover the first mortgage payment, they may be able to miss that one payment and then pay it back once they have access to the funds. She encourages families to proactively contact the mortgage company and let them know about what's going on.

If a beneficiary pays for expenses out of pocket, it's essential to keep detailed receipts, including copies of checks or direct payments made from a bank account. Beneficiaries can submit those receipts to get paid back later on.

7 ways to make accessing funds simple for beneficiaries after your death

• Prepay for a funeral or cremation: Prepaying for a funeral or cremation allows you to cover the costs in advance, leaving your family with one less expense. There are a couple of drawbacks to be aware of. If the funeral home should close, it might be difficult to transfer the contract. If you and your family move and no longer want to use that funeral home, you generally can't use the contract elsewhere.  
• Consider final expense insurance: Final expense insurance is a permanent life insurance policy that helps cover expenses like funeral costs, legal fees for end-of-life documents and some other related costs. This type of policy usually has a lower premium and a smaller payout than a traditional life insurance policy, and it's an alternative to prepaying for services.
• Open a joint account: Consider opening a joint account specifically for funds to be used for end-of-life costs and other immediate expenses. You can add a beneficiary to the account as a joint user, which may help them access the funds sooner. Trujillo cautions that joint ownership of accounts may have unintended gift tax consequences, particularly if the money is used to benefit the survivor, and not the estate, so consider speaking with a tax professional when you create the account.
• Create and maintain your will: A will is important, and it identifies which assets you want to go to each beneficiary. Make sure that you create a will and keep it updated if your wishes change.
• Consider a living trust: Acevedo recommends creating a living trust in addition to a will. "The living trust operates like a will, and I have my clients move their assets into the name of their living trust during their lifetime," she explains. Instead of having to go through court, the beneficiaries take a change of trustee document and a tax ID number to the bank and are able to access accounts much faster than through the probate process.
• Add a beneficiary to your accounts: Beneficiary designations on your retirement accounts and life insurance are also essential. Trujillo cautions that retirement accounts and life insurance benefits usually pass according to the beneficiary designation, not according to the will, so be sure to keep those designations updated if your plans change.
• Leave documentation: Make sure your will executor knows how to access your financial information and estate planning documents. Keep copies of essential details, like a list of bank accounts, retirement accounts, income sources and email addresses and passwords, and share their location with the executor in advance. Having this information organized and accessible can save your beneficiaries time and stress.

Looking forward

Estate planning may be expensive, and Simasko estimates that most people will pay several thousand dollars upfront, but that investment may help save your beneficiaries both money and time. "Estate planning is so much less expensive than fees beneficiaries are facing when going through probate," she says.

Laws vary by location, so consider speaking with a lawyer specializing in estate planning in your state. Discuss your goals, including your wishes for funds to be easily accessible to cover immediate costs, and ask whether your current estate plans are sufficient or need to be improved to meet that goal.

Taking a second look at your plans may help avoid unexpected situations, making the overall process easier for your beneficiaries.

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On October 19, a new rule by the Department of Transportation (DOT) narrowed the definition of what kind of flight disruptions are categorized as "air carrier delay." What sounds like a minor technicality will have a major impact on what you're entitled to as a passenger when a trip goes awry.

Your ability to get a refund for a delayed or canceled flight hinges on whether the flight disruption is considered to be within the airline's control.

At a time when airfare prices are soaring and your travel budget is already stretched, it's worth understanding how this seemingly technical change in definitions will impact your next trip. Here's how your rights have changed and what you can do to protect your investment under the new regulations.

What's changing about your right to a refund?

Technically, the new DOT rule simply altered how certain events are categorized. Airlines are required to report their on-time performance to the Bureau of Transportation Statistics (BTS) every month. That report includes a breakdown of delays, cancellations and interruptions into a set of predefined categories.

One of those categories is called "air carrier delay" and includes all delays that the BTS considers to be within the carrier's control. The new rule removed the following 10 events from the list of delays that fall under the "air carrier delay" category:

1. Medical emergencies that weren't caused by the carrier
2. Removing an unruly passenger
3. Airport closures caused by volcanic ash, wind or wind shear
4. Unscheduled maintenance that must be addressed before flight
5. Overheated brakes when caused by the use of those brakes in an emergency
6. A government shutdown or system failure
7. Cybersecurity attacks
8. Aircraft damage
9. Aircraft cleaning due to the death of a passenger
10. Baggage or cargo loading delay when it's caused by a system outage or other factors not controlled by the carrier or its contractor

For passengers, however, it's more than just a change in definition. According to the DOT, passengers are entitled to a refund of the ticket price "if the airline significantly delays a flight or significantly changes a flight and the consumer chooses not to travel or accept travel credits, vouchers or other forms of compensation offered by the airline."

In other words, with these 10 situations removed from the definition of what constitutes a delay caused by the airline, you now have 10 fewer situations in which you're entitled to a refund or other form of compensation, including hotels and food vouchers.

The intention behind the rule change. In the full text of the new rule published in the Federal Register, the DOT wrote, "it is expected that the total value of amenities and compensation currently provided by air carriers to consumers will be reduced under this final rule."

The goal with this category change is to create fewer scenarios in which you are entitled to a refund. That puts the onus on you to find other ways to protect your investment when you fly.

How passengers can protect their money

The new rule makes it harder to get a refund from airlines, but you still have some rights and other means to fill gaps created by the changing regulations.

• Check the DOT Airline Cancellation and Delay Dashboard to find out what compensation and guarantees your airline voluntarily provides. The page provides a clear breakdown of what major airlines have agreed to provide to consumers in various scenarios. As of this writing, it was last updated in September 2025, so you should double-check with your airline to see if the information is still current. But it's a good place to start, especially when booking, as you can see which airlines might provide the most protections if a flight goes wrong.
• Buy refundable tickets. If the delay is so long that you choose not to take the flight at all, it'll be less of a headache to get a refund on a ticket that's already refundable. These typically cost a little extra, but you won't have to worry about whether the delay you experienced qualifies for a refund or not under the new rules.
• Check your credit card for trip-delay coverage. This is not the same as trip-cancellation protection, which only kicks in if your flight is canceled. Trip-delay coverage will reimburse you for any prepaid expenses lost (such as the missed connecting flight or the lost night at the hotel from arriving a day late) as a result of a delayed flight. It might also cover additional costs caused by the delay, such as last-minute accommodations and meals while waiting for your flight.
• Ask for a refund anyway. The "air carrier delay" category still exists, which means there are still situations in which the delay is considered to be within the airline's control. In those situations, you're still entitled to a refund. Even if you're not sure of the reported cause of the delay in the moment, it doesn't hurt to call customer service and ask for a refund just in case. Typically, if you have travel insurance through your credit card or a separate policy, you need to try to get a refund from the airline as a first step before filing a claim anyway.

Between higher ticket prices and fewer ways to get that money back if something goes wrong, protecting your trip is more important than ever. If your card doesn't offer trip-delay coverage, buy travel insurance that does. This is a good way to fill in the gaps and make sure you can get your money back if your trip is interrupted or ruined for just about any reason.

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I talk to a lot of 65-year-olds, and one of the biggest fears they have is making a mistake with Medicare. It's hard not to be afraid when you keep hearing well-intentioned, but conflicting advice such as:

• "You have to sign up for Medicare at 65."
• "You don't have to sign up for Medicare at 65."
• "You can change your Medicare insurance every year."

During my 20-plus years as a retirement-focused financial adviser, I've just about heard it all — some true, some false and just about all of it leaving near-65-year-olds wondering how they can figure it out in time.

Below are the five most common mistakes retirees make with Medicare and what you can do to try to avoid them.

What makes Medicare so different

Your health insurance choices used to be easy. Your work gave you two or three options and you chose the one that fit your family best.

Then you turn 64 and you get bombarded with advertisements in the mail touting how great a particular Medicare insurance plan is.

When I checked Medicare.gov's Plan Comparison Tool in September 2026, there were 81 different options near me in Wisconsin: 39 Medicare Advantage plans, 10 prescription drug plans and 32 supplement insurance (Medigap) options.

The number and types of plans available to you will depend on where you live.

With so much information and so many different plans, it's no wonder Americans keep making these five common mistakes.

Mistake No. 1: Assuming Medicare is automatic

Medicare feels automatic since many people enroll or get signed up for it at 65, but that feeling of "automatic" often turns into "I don't have to think about it" — and that's a big mistake.

Medicare enrollment generally is automatic if you've already been receiving Social Security retirement benefits for at least the four months before age 65. A few months before your 65th birthday, you'll get your Medicare card in the mail showing that you're enrolled for Part A and B.

If you have current employer-provided health insurance from a company with 20-plus employees, you may be able to delay starting Part B. Before you do, check with your employer to find out how your health coverage coordinates with Medicare.

If you're signed up for Part A and B automatically, that doesn't mean you automatically get signed up for other private Medicare insurance to pay for the gap between what Medicare covers and what Medicare pays.

You should still evaluate whether you're better off with Medicare Advantage or original Medicare with Medigap (supplemental) insurance — and you'll have to proactively sign up to get those coverages.

Mistake No. 2: Misunderstanding what counts as 'employer coverage'

Many people turning 65 think, "I don't need to sign up for Medicare. I already have insurance through my employer." It turns out they actually have retiree coverage, COBRA or even TRICARE from prior military service.

Retiree health insurance and COBRA plans are not coverage from your current employer. And TRICARE states that you need Part A and B to get TRICARE For Life.

If you have employer-provided health insurance based on your or your spouse's current employment with a company of 20-plus employees, you may be able to delay signing up for Medicare. That's true, and yet there's so much confusion around that.

Your "employer coverage" must be from active, current employment.

Retiree healthcare doesn't count as current employer coverage that could allow you to delay Part B. COBRA generally doesn't count either.

TRICARE states, "If you're eligible for both TRICARE and Medicare Part A, then in most cases, you must have Medicare Part B to keep TRICARE." (Emphasis added.)

Mistake No. 3: Confusing the different Medicare parts and choices

Medicare lists four different parts of Medicare, along with optional Medigap insurance, and points out the differences between Medicare and Medicaid. With similar names and so many parts, no wonder it's confusing.

Medicare Part A (hospital insurance) covers inpatient care in hospitals, skilled nursing facility care, hospice care and home healthcare.

Most people get Part A with no premium cost because they, or their spouse, qualified by working and paying Medicare payroll taxes for "40 quarters" — basically 10 years. Premium-free doesn't mean cost-free though. You can still have deductibles, copays and other out-of-pocket costs.

Medicare Part B (medical insurance) helps pay for doctor visits, outpatient care and preventive care, such as screenings, shots or vaccines, and yearly "wellness" visits.

Part B costs $202.90 a month, which is often a surprise to many retirees who think it's free. It can cost even more if you have a high enough income and must pay Income-Related Monthly Adjustment Amount (IRMAA) surcharges.

Medicare Part D helps cover the cost of prescription drugs.

Drug coverage is often part of a Medicare Advantage plan. But if you choose a Medicare Supplemental Insurance (Medigap) plan, you'll generally buy part D drug coverage separately, unless you have other creditable drug coverage.

Medicare Supplement Insurance (Medigap) helps you pay your share of the costs of original Medicare.

People often ask me, "What does Medicare Supplement cover?"

My answer is, "Medicare Supplement generally covers what Medicare covers, but it generally pays for many of the costs that Medicare makes you responsible for."

Medicare Part A has deductibles, coinsurance and copays that you are responsible for.

Medicare Part B has a deductible, after which you generally pay for 20% of the cost of the Medicare-approved amount for services Medicare covers.

That's where Medicare Supplement (Medigap) comes in, to help pay the costs of your healthcare that Medicare covers but doesn't fully pay. You could also choose a different route, called Medicare Advantage.

Medicare Advantage (also known as Part C) is an alternative to original Medicare. You get a "bundled" plan through a private insurance company that is Medicare approved and essentially brings your Part A, Part B and usually Part D coverages all together.

Many Medicare Advantage plans have low or even $0 monthly plan premiums, while Medigap policies generally charge a separate monthly premium.

However, those on Medicare Advantage generally must continue paying their Part B premium, along with deductibles, copayments and specific provider networks.

Mistake No. 4: Ignoring the potential extra costs of Medicare through IRMAA

Many people are surprised that Medicare Part B has a monthly premium. They expect the taxes they paid throughout their career to cover their Medicare in retirement.

What's even more surprising is when your income from two years ago causes you to pay extra for Medicare through the IRMAA.

I met a client recently who was upset that his Medicare premiums were higher this year than last year.

I discovered he had retired two years ago. His income from that year was high enough to go over the IRMAA threshold so that both his and his wife's Medicare premium was roughly double the normal amount.

Fortunately, you can appeal your extra Medicare costs through IRMAA, and "work stoppage" is one of the "life-changing" events Social Security will take into account.

My client had retired, and his income is now lower. So after the couple requested a new IRMAA determination based on his retirement and their reduced income, their combined Medicare premiums were reduced by roughly $5,000 for that year.

This client's IRMAA surcharge highlights how interconnected all the pieces of retirement are. Your added income in one year, from working or perhaps Roth conversions or stock sales, can affect your healthcare costs two years later.

Retirement isn't just about your Medicare decision and your investment decision, and your Social Security decision separately. It's about how each of these areas affect each other.

That's why I created a five-step retirement master plan to help all the pieces of retirement fit together, which you can find in my book Retire Today.

Mistake No. 5: Not re-evaluating your Medicare Advantage or drug plan each year

Each year during open enrollment from October 15 through December 7, I send a message to my clients encouraging them to review their Medicare Advantage or prescription drug plan for the following year.

By far, the most common response is, "Nothing changed for me this year, so I don't need to do this."

But here's the thing: Something may have easily changed. Your existing plan could have changed quite a bit.

Every year, your Medicare Advantage or Part D drug plan can change its cost, its network, its preferred pharmacy, its benefits, its provider list.

And even if your plan doesn't change one thing, all the other plans could change and you might be missing out on a better plan for you.

You may find another plan that better fits your healthcare needs, or your prescription drugs, providers and budget.

Whether you're on Medicare already, or getting ready for Medicare, follow these five steps to avoid big Medicare mistakes:

• File for Medicare at the right time
• Confirm how your current health insurance coordinates with Medicare
• Learn the different parts of Medicare and what they cover
• Understand how past income affects current Medicare costs — and whether you qualify for a reduction in those costs
• Re-evaluate your Medicare Advantage and drug plan options each year

Take these five steps before, and even after, you file for Medicare, and you'll feel much more confident in the Medicare decisions you make.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Homeowners insurance rates naturally go up over time, but State Farm has just increased homeowners insurance rates in Illinois for the second year in a row. The 8% increase follows a more significant 27.2% State Farm insurance rate hike in 2025 that drew criticism from many.

According to State Farm, the 8% increase will add about $10 per month to the average Illinois homeowner's insurance bill, though individual increases will vary. The higher rates took effect for new policies on October 1, 2026, and existing policyholders will begin seeing increases when their policies renew starting in December.

State Farm's rate hike reflects a broader trend of rising homeowners insurance costs nationwide. Even if you're not affected by the increase in Illinois, you could face higher premiums when your policy renews. Understanding what's driving these increases can help you prepare for higher costs and identify opportunities to lower your home insurance premium.

Why State Farm is raising homeowners insurance rates again

According to State Farm, the rate increase is driven by losses caused by extreme weather. The University Corporation for Atmospheric Research (UCAR) reports that as the U.S. warms faster than the global average, storms are more likely to form in that warmer environment.

During the 1980s, the U.S. averaged just three billion-dollar weather disasters annually, each causing at least $1 billion in damage. By 2024, that number had climbed to 27, including 17 severe storms involving tornadoes, hail and straight-line winds.

As severe storms become more frequent, insurers pay out more in claims to repair or replace insured property. Rebuilding expenses have also increased, driven up by higher material and labor costs.

Rising homeowners insurance costs aren't limited to Illinois. Homeowners nationwide are feeling the pressure as premiums continue to climb. According to a report from the National Association of Insurance Commissioners, homeowners insurance premiums rose faster than inflation between 2018 and 2024, putting additional strain on household budgets.

How much more could homeowners pay?

For Illinois homeowners insured by State Farm, an 8% rate increase could add hundreds of dollars to their annual insurance costs, depending on their current premiums. Here's what that increase could look like at different price points.

Figures are hypothetical and illustrate an 8% premium increase. Actual increases will vary by policyholder.

For homeowners who pay their insurance premiums through a mortgage escrow account, higher insurance costs can also mean higher monthly mortgage payments. Even with a fixed-rate mortgage, your total payment can increase as property taxes and insurance costs rise.

The latest 8% increase follows State Farm's 27.2% rate hike in 2025, adding to the financial burden for Illinois homeowners who have already seen their insurance costs climb.

With homeowners insurance costs continuing to climb, now is a good time to see whether you're getting a competitive rate. Comparing quotes from multiple insurers could help you find similar coverage at a lower price.

Use the tool below to explore your options:

What Illinois' new insurance laws mean for homeowners

State Farm's 27.2% rate hike in 2025 drew criticism from Illinois Governor JB Pritzker and raised concerns about rising homeowners insurance costs. In August 2026, Pritzker signed House Bill 4273, now Public Act 104-0752, to strengthen oversight of homeowners insurance rates.

The law gives the Illinois Department of Insurance greater authority to review rate increases and requires insurers to provide policyholders with at least 60 days' notice before renewal premium increases exceeding 10%. The new requirements take effect July 1, 2027.

5 ways to lower your homeowners insurance costs

Though homeowners insurance rates are rising, there are several ways you may be able to bring your premium down.

• Shop around: Shop around for insurance annually before your premium renews. Compare quotes from at least three insurers, and make sure you're comparing the same coverage limits and deductibles. You might be able to save money by switching home insurance providers.
• Review your coverage: Make sure your coverage is appropriate for your needs, but also verify that you're not paying for more coverage than you need. Check your dwelling replacement costs, endorsements and coverage limits. If some of your coverage limits are high, you may be able to save money by lowering them — just don't leave yourself underinsured.
• Consider a higher deductible: Increasing your home insurance deductible can lower your premiums, saving you money every month. A higher deductible comes with additional out-of-pocket risk. Since you'll need to pay your deductible if you have to file a claim, it's a good idea to keep a deductible payment accessible, such as in a high-yield savings account, so it's there if you need it.
• Ask about discounts: You might be able to save money for bundling homeowners and auto insurance policies, installing a security system in your home, investing in storm-resistant home improvements and remaining claims-free. Contact your insurer, make sure you're receiving the discounts you qualify for and ask about what other discounts are available. 
• Review your policy annually: Before automatically renewing your coverage, check your coverage changes and premium increases. Contact your insurer to ask about discounts, changes in coverage and more before you decide to renew.

Higher insurance rates don't mean you have to overpay

State Farm's latest rate hike reflects a broader trend of rising homeowners insurance costs nationwide. While insurance is essential for protecting one of your most valuable assets, you don't have to accept a higher renewal premium without exploring your options.

Start by running a home insurance checkup to make sure your coverage still meets your needs. Then, compare quotes from multiple insurers to see whether you can get a better deal. Don't focus solely on price. Review coverage limits, exclusions and deductibles to find a policy that offers the right balance of protection and affordability.

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Most of the expensive mistakes I see in retirement planning as a CFP® are subtle. This one is not.

A Medicare enrollment trap springs most often on the very people who feel least worried about it: Those working past 65 with what they assume is perfectly good employer coverage.

But a hard Medicare deadline with a permanent penalty attached can snare people who did everything else right.

Here's how it happens, why it costs real money and what to do about it.

The setup

When you turn 65, you become eligible for Medicare. Most people know that. What trips them up is the assumption that because they're still working and covered by an employer health plan, they can ignore Medicare until they retire.

Sometimes that is true. Often, it's not, and the difference comes down to the size of the employer and the type of coverage you have.

If you work for a larger employer, generally one with 20 or more employees, your group plan can remain your primary coverage, and you can delay Medicare Part B without penalty under a special enrollment period.

But if you work for a smaller employer, Medicare might be considered your primary payer once you turn 65, even while you're still on the company plan.

In that situation, delaying Part B doesn't just risk a penalty. It can leave you with gaps in coverage, because your employer plan might pay as though Medicare is already covering its share, whether or not you're enrolled.

That distinction — 20 employees —isn't something most people think to check. They see, "I have health insurance through work," and reasonably conclude they're fine. The rules don't care how reasonable the assumption was.

The penalty that never goes away

Here's the part that stings. If you're required to enroll in Part B and you miss your window, the late enrollment penalty is not a one-time fee.

According to Medicare.gov, the Part B penalty adds 10% to your premium for each full 12-month period you could have had Part B but did not. You pay that surcharge for as long as you have Part B, which for most people means the rest of their lives.

Think about what that means. Delay three years when you should have enrolled, and you're looking at a 30% premium surcharge, every month, indefinitely. There is no statute of limitations, no point where it falls off. A misunderstanding at 65 becomes a line item you carry into your nineties.

Because that 30% applies to whatever the standard premium happens to be each year, the dollar cost climbs right along with premiums over time. Across a 20-year retirement, a few years of delay can quietly add up to thousands of dollars in surcharges you could have avoided.

I have seen people discover this years later and have no recourse, because the rules were followed exactly as written — just not by them.

The timing windows that matter

Medicare enrollment runs on specific windows, and missing them is what triggers the trouble. Your initial enrollment period is a seven-month stretch around your 65th birthday: the three months before, your birthday month, and the three months after.

If you qualify to delay because of active employer coverage at a large employer, you get a special enrollment period to sign up later without penalty, typically while you're still covered and for eight months after that coverage ends.

The danger zone is the space between assumptions and rules. People who retire and lose coverage sometimes assume they can enroll whenever they get around to it.

The eight-month clock after employment ends is easy to blow past, especially amid the chaos of leaving a job. Miss it, and you might be stuck waiting for a general enrollment period and carrying the penalty besides.

What to do

A few concrete steps make this entirely manageable.

Well before you turn 65, find out if your employer has more or fewer than 20 employees and confirm in writing how your plan coordinates with Medicare. Your human resources (HR) department or benefits administrator should be able to tell you whether your coverage lets you delay Part B. Do not guess, and do not rely on a coworker's situation, which might differ from yours.

If you're at a small employer, treat your 65th birthday as a real deadline and enroll during your initial enrollment period unless you have confirmed you genuinely qualify to wait.

If you're delaying because of large-employer coverage, mark the eight-month special enrollment period that begins when that coverage ends. Put it somewhere you won't lose it. The moment you retire or drop the employer plan, the clock starts.

Remember that Part D, prescription drug coverage, has its own late enrollment penalty with similar lifetime consequences. If your employer coverage is not considered creditable drug coverage, the same kind of permanent surcharge can apply.

There is one more wrinkle worth flagging, because it catches a particular group off guard. If you contribute to a health savings account, enrolling in any part of Medicare, including Part A, ends your ability to make new HSA contributions.

Part A is premium-free for most people and many enroll in it automatically without thinking, but doing so while still funding an HSA can create a tax problem. If you work past 65, still contributing to an HSA and plan to delay Medicare, that interaction needs to be on your radar.

It's a small detail with outsize consequences and is precisely the kind of thing that gets missed when someone assumes Medicare is a single on-off switch rather than a set of separate decisions.

The bigger lesson

What makes this trap so frustrating is that it punishes inaction by people who weren't being careless, they were just uninformed. There is no investment decision here, no market risk, no judgment call about strategy. It's purely a matter of knowing the rules and the dates, and acting before a deadline that doesn’t announce itself.

If you're approaching 65 and still working, don't let, "I have coverage through my job," be the end of your analysis. It's the beginning of a question, not the answer.

Spend an afternoon confirming exactly how your employer plan interacts with Medicare, and put the relevant enrollment windows on your calendar.

It's one of the rare retirement mistakes that is completely avoidable with a single phone call, and one of the few in which the cost of getting it wrong follows you for the rest of your life.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you're already contributing enough to capture your full 401(k) match, you've got the basics covered. The bigger opportunities — and the ones I see even diligent savers miss — are found a level up from there.

After more than a decade of helping people build their retirement plans as a CFP® professional, I've found that most people stop optimizing right after the match.

Other savings accounts and strategies that could work in their favor go unused for years, not because they're complicated, but because nobody ever walked through them step by step.

Here are five that can make a meaningful difference for people who are already saving well and want to do more.

1. Take advantage of an HSA's triple tax benefits

If you're eligible to contribute to a health savings account (HSA), it may be the most underused account you have.

HSAs offer a rare triple tax advantage: Contributions can be made pretax or may be deductible, earnings grow tax-free, and withdrawals are tax-free when used for qualified medical expenses.

For 2026, you can contribute up to $4,400 for self-only coverage or $8,750 for family coverage, plus another $1,000 if you're 55 or older.

Most people treat their HSA like a checking account for copays and prescriptions. You don't have to. You can pay medical costs out of pocket now, let the HSA grow untouched for decades and reimburse yourself years later, as long as the expenses were incurred after you established the HSA, weren't previously reimbursed or deducted and you kept adequate records.

I've worked with people in their 50s who'd been quietly saving old medical receipts for this exact reason, without ever calling it a strategy. Used that way, an HSA functions like one of the most tax-advantaged retirement accounts you have access to, not just a place to park money for copays.

2. Choose pretax or Roth in your 401(k) on purpose

Most people never actively decide between pretax and Roth contributions. Their 401(k) defaults to whatever the plan set up on day one, and they never revisit it. I've reviewed plans for people who hadn't looked at this choice in over a decade, even though their income, and the right answer for them, had changed completely in that time.

The difference matters. Pretax contributions generally reduce your taxable income now, while withdrawals are generally taxed as ordinary income later. Meanwhile, Roth contributions don't provide a current deduction, but qualified withdrawals are tax-free.

A useful starting point is to compare your marginal tax rate today with the rate you reasonably expect when the money is withdrawn. Keep in mind future required minimum distributions (RMDs), tax-law uncertainty, and the value of having both taxable and tax-free income sources in retirement.

For 2026, the 401(k) employee deferral limit is $24,500, with an additional $8,000 available if you're 50 or older.

One change worth flagging for this year: If your 2025 FICA wages from the employer sponsoring the plan exceeded $150,000, your 2026 catch-up contributions generally must be made as Roth contributions. It's a rule that's easy to miss.

There's no universal right answer here, only the one that fits your specific tax situation. Modeling your expected income and tax bracket in retirement with a retirement planning tool can help you make that call instead of guessing. (Note: I'm head of support and a financial planning educator at Boldin.) Make it a real decision, not a default.

3. Look into a mega backdoor Roth if you still have room to save

This one is for higher earners who've maxed out the accounts above and still have money left over to put away.

If your 401(k) plan allows after-tax contributions, separate from Roth contributions, you may be able to save well beyond the standard deferral limit. For 2026, the combined 401(k) employee-and-employer contribution limit is $72,000, or 100% of your compensation if less.

Catch-up contributions generally sit on top of that limit, potentially bringing the total to $80,000 if you're 50 or older, or $83,250 if you qualify for the higher age-60-to-63 "super" catch-up.

Once you've maxed your regular deferral and accounted for any employer contributions, the remaining room can sometimes be filled with after-tax dollars, then converted to Roth, either through an in-plan conversion or an in-service rollover to a Roth IRA.

This only works if your plan specifically permits both after-tax contributions and one of those conversion paths, so call your HR department or plan administrator before assuming it's available. Not every plan offers it, but for the people it fits, it's one of the more overlooked ways to build tax-free savings.

4. Stack a backdoor Roth IRA on top of your mega backdoor Roth

If you've just read about the mega backdoor Roth and assumed you've now used up your Roth options for the year, you haven't.

A backdoor Roth IRA lets high earners get money into a Roth IRA even after they've been phased out of contributing directly. You contribute to a traditional IRA on a non-deductible basis, then convert it to Roth shortly after. For 2026, the IRA contribution limit is $7,500, plus $1,100 more if you're 50 or older.

Here's the part I get asked about constantly: Your IRA contribution limit is separate from the limits that apply to your workplace plan. If you're otherwise eligible for each strategy, you can fund a backdoor Roth IRA and execute a mega backdoor Roth in the same year.

The one thing that can complicate a backdoor Roth IRA is the IRS's pro-rata rule, which requires you to consider all of your traditional, SEP and SIMPLE IRA balances together when calculating the tax on a conversion.

The calculation looks at the year-end value of all of those IRAs, not just the account holding your nondeductible contribution.

A mega backdoor Roth, whether converted inside your workplace plan or rolled directly to a Roth IRA, generally doesn't count toward those IRA balances.

If you don't have pretax traditional, SEP or SIMPLE IRA money sitting around, the backdoor Roth IRA stays clean from a tax standpoint. Either strategy can have tax consequences, so confirm the details with your CPA before you move any money.

5. Don't underestimate a plain taxable brokerage account

After three accounts built around tax breaks and rules, a taxable brokerage account can feel almost boring by comparison. But it doesn't get nearly enough credit.

There's no statutory contribution limit, no income cap and no early withdrawal penalty. You can invest as much as you want and sell investments or withdraw cash whenever you want, although selling appreciated investments can create a taxable gain.

That flexibility is rare among the accounts on this list, especially if you're hoping to retire before 59½ and need a bridge to cover expenses before your retirement accounts are penalty-free.

The tax treatment isn't as generous as a Roth or an HSA, but it's still better than most people assume. Long-term capital gains and qualified dividends get preferential rates, not your ordinary income rate.

For 2026, the 0% federal long-term capital gains bracket for married couples filing jointly extends through $98,900 of taxable income. Ordinary taxable income uses that bracket first, so only gains that fall within the remaining space qualify for the 0% rate.

There's also tax-loss harvesting: Selling an investment at a loss to offset capital gains and potentially up to $3,000 of ordinary income, subject to rules such as the wash-sale rule, something you simply can't do inside a 401(k) or IRA.

I've worked with many who treat their brokerage account as an afterthought, something they'll "get to eventually" once the tax-advantaged accounts are maxed. Fund it on purpose instead, particularly if flexibility and access before retirement age matter to your plan.

These add up faster than you'd think

Some of these moves require additional savings, while others change the tax treatment or destination of money you're already saving. The goal is to direct each additional dollar toward the account that best supports your plan.

That distinction compounds. A few percentage points redirected toward a Roth or an HSA in your 50s can mean a different tax bill in your 70s and 80s.

I've watched people run these strategies side by side and see for themselves how much of a difference the right combination makes over 20 or 30 years.

You don't need to implement all five at once. Start by identifying which strategies are available to you, then prioritize the one that best fits your tax situation, savings capacity and need for flexibility.

Before you know it, you will be on your way to a confident retirement knowing that you have optimized your savings.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

December sees a major spike in travel as passengers race to visit family for Christmas, Hanukkah and other major holidays that happen that month. Because of that increased travel demand, December is often (but not always) one of the worst months of the year for flight delays industry wide.

However, one silver lining is that cancellation rates typically (but not always) go down that month. You might have an above average chance of being late getting home to the family, but you're less likely to completely miss the holidays altogether.

But within those industry-wide statistics, some airlines definitely perform better than others. To find out which airlines are most likely to get you home for the holidays on time (and least likely to cancel your flight completely), I compared the on-time performance of eight major airlines for the month of December over the last 10 years. The airlines compared include Alaska, Allegiant, American, Delta, Frontier, JetBlue, Southwest and United.

Here's what you need to know before booking those holiday flights this year.

The airlines most (and least) likely to cancel your holiday flight

When looking at official data airlines report to the Bureau of Transportation Statistics, just two airlines kept their average December cancellation rates below 1% over the last 10 years.

The two airlines with a vanishingly small cancellation rate during that month are American which canceled an average of just 0.75% of its December flights, and United, at 0.97%. Both rates were well below the 10-year industry average of 1.63%.

On the flip side, three airlines stuck out for having significantly higher than average cancellation rates for that month. Alaska's track record was the worst, with an average December cancellation rate of 2.34%, but Southwest (2.29%) and Allegiant (2.25%) weren't far behind.

So, if you want to minimize your risk of not making it to your destination at all, opt for American or United this holiday season.

The airlines most (and least) likely to delay your holiday travel plans

In an ideal world, you'd not only not have to worry about cancelled flights but you'd actually arrive at your destination at the time originally stated when you booked. With the spike in travel demand over December, the odds of that do get lower on pretty much any airline you choose.

But you'll have the lowest risk of holiday flight delays with Delta. Over the last 10 years, Delta has managed to keep over 82% of December flights on time. It's the only airline in the comparison that managed to keep its average on-time performance above 80%.

With an average December cancellation rate of 1.21%, it's not as low risk as American or United but still better than the 1.63% industry average. So, if timeliness matters and you're willing to accept a slightly higher risk of a cancelled flight, Delta is your most punctual bet.

If you don't want to accept that slightly higher cancellation risk, United and American — the two with the lowest cancellation rates — came in second and third place, respectively, for on-time performance. Both kept just over 79% of their flights running on schedule over the holiday season for the last 10 years. That gives you pretty good odds of arriving on time.

The airlines to avoid in December if you want to make it back to the family on time: JetBlue, Allegiant and Frontier. Of the three, JetBlue performed the worst, with an average December on-time rate of just 69% over the last decade. Allegiant averaged just over 71%, while Frontier averaged 72%.

Of those three with the most delays, JetBlue does at least boast the lowest cancellation rate. Its 10-year average for December is 1.39%, which is slightly below the industry average and significantly better than Allegiant's (2.25%) and Frontier's (1.98%) December cancellation rates.

Which airline should you book for the holidays?

After reviewing the performance data over the last decade, it looks like you'll have the best chances of getting to your family (and maybe even getting there on time) if you book with American or United. But Delta isn't a bad choice, either.

On the other hand, Allegiant might be your worst bet as it has both higher cancellation rates and lower on-time performance in December. Frontier is also a riskier choice for the same reasons.

If you can't completely eliminate the risk of arriving late or not arriving at all this holiday season, you can at least protect your investment by either buying travel insurance or booking your flight with a credit card that includes travel insurance.

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Jet fuel prices have doubled compared with this same time last year, according to the International Air Transport Association. That has sent airfare prices soaring and caused some airlines to start canceling some flights.

For travelers, that means the cost of getting to your destination, let alone splurging on the things that make a vacation fun, is eating up more of your travel budget.

While finding ways to be frugal and stretch every dollar of your travel budget is great, there are some travel habits that feel frugal, but really aren't when you do the math. Here are seven travel habits you might think are saving money on your next vacation and why they aren't actually worth it.

1. Buying rental car insurance

Saying yes to the optional rental car insurance or damage waiver might feel like the responsible thing to do. But depending on where you're driving, it probably isn't necessary. Your existing car insurance likely covers you in a rental car. If it doesn't, almost any travel credit card you have will likely include free rental car coverage (as long as you book the rental with that card).

Before you book, check your card's perks and coverage options — paying special attention to the fine print for any exclusions or caveats. Between your credit card and your existing car insurance, it should be safe to decline the optional coverage in almost any scenario.

2. Buying travel insurance

As with rental car insurance, many travel cards include at least some form of trip protection akin to travel insurance. While only the more premium cards, such as the American Express Platinum Card, have more comprehensive travel insurance included, many cards at least offer some degree of trip-cancellation protection.

For smaller or lower-cost trips, the basic coverage already included with your travel card might be enough. For more expensive trips, knowing what your card already covers can help you avoid paying for overlapping coverage. Instead, you can get a policy that fills in the gaps.

3. Paying for TSA PreCheck or Global Entry

It's not a question of whether TSA PreCheck is worth it. Both it and its international counterpart, Global Entry, can be a great option for saving time at the airport. But before you fork out the cash, you should check your travel credit card perks. More cards now offer complimentary credits for these time-saving screening programs that effectively make them free to you.

Taking a few minutes to see if you already have a card with the perk or even getting a new travel rewards card that includes it can save you money as well as time. In most cases, getting the complimentary credit is as easy as paying for TSA PreCheck or Global Entry with the eligible card. After that, the credit will be automatically applied to your statement.

4. Buying the cheapest airfare

Budget airlines can have enticingly low airfare when you're browsing your flight options. But as you probably know, they make up for it by nickel-and-diming every other part of your flight.

Not only are checked bags extra, but you might not be able to bring a carry-on suitcase for free. Want to sit next to your travel companion for the flight? Choosing seats costs extra. Forgot to check in before leaving the house? Checking in at the airport costs extra. Need to print out the boarding pass? Extra.

Before booking the cheapest airfare you find, add in all the extra fees you'd pay by choosing it. If the entire cost of airfare, fees included, is still lower than the competitors, that's when the budget airline is a good deal.

But if it ends up being the same (or more) than the competitor, it's not worth it. Budget airlines such as Frontier and Allegiant tend to have more frequent flight delays than major airlines such as United or Delta — not something you want to deal with if you're not really saving money.

Check the layover, too. Some of the cheaper tickets can have layovers so tight, you'll miss your connecting flight if the first one is even a little late. In other cases, it might be at a different airport entirely, so you'll be spending extra money and adding stress to your trip by racing to catch a connecting flight at a different airport. If you're only saving a few bucks, a stressful connecting flight is not worth it.

5. Booking the cheapest hotel

Just as the cheapest airfare might not end up being the best deal once added costs are factored in, the cheapest hotel can also end up costing more.

For one, location matters when you're a tourist. If the hotel is far from attractions you plan to visit, you could spend more time and money on transport. Add those extra transport costs to the hotel's price tag.

Another factor to consider is complimentary breakfast. If paying a few bucks more per night means a free breakfast every morning, that's one less meal per day you have to buy.

You'll also want to check amenity fees. While not every hotel does this, some have started charging for certain amenities — such as gym access or pool towels — similar to the way airlines charge extra for checked bags or in-flight snacks. Check which amenities come at an added cost and, for any that you plan to use, add those extra fees to the price tag.

Considering these details allows you to compare the total cost to you between hotels, rather than comparing the nightly rate.

6. Packing too light

Managing to fit everything in a carry-on is a great goal. But if you're overly militant about this, you can leave things at home that would have saved money on the trip. This is more true if you're traveling to a climate very different from your own.

My first international trip as a Californian was to Sweden in January. When I showed up in the warmest coat I owned, a Swede asked me why I was wearing a "summer jacket" in the middle of winter. I had to buy a proper winter coat there.

Check the forecast ahead of time. For example, if it's going to rain, packing a small umbrella is worth the room it takes to avoid having to buy one of the overpriced options people sell to unprepared tourists at your destination.

The "packing too light" habit can cost in toiletries, too. Travel-size hygiene products are great for shorter trips. But for a longer vacation, you'll likely be better off packing full-size products in your checked bag to avoid buying extra while you're away.

7. Buying the cheapest luggage

One of the most frugal things you can do is treat luggage as a "buy it for life" item. A good suitcase will come with a slightly painful price tag, but it'll last you decades.

My Samsonite set is seven years old and looks the same as the day I bought it. The no-name brands I'd bought before this set all suffered broken handles, stuck wheels or missing zippers within a year or two.

Even if you don't travel often, a good set of luggage is worth it. Something that lasts a decade or more for a frequent traveler could last a lifetime for someone who only travels once or twice a year.

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Most people treat their Medicare supplement plan the way they treat a landline: It's something they sign up for once, at 65, and never think about again.

That instinct might make sense for other types of insurance. But it's the wrong instinct when it comes to your supplement plan, and it can cost you hundreds of dollars a year, sometimes for a decade or more, without you noticing.

The part nobody expects: Identical coverage, different price

Here's what most people don't know about Medicare supplement, or Medigap, plans: They're standardized by the federal government. A Plan G from one insurance company covers exactly the same things as a Plan G from every other insurance company selling in your state. Same benefits, same rules, no exceptions.

The only thing that changes from carrier to carrier is the premium, and that gap is often much bigger than people expect. It's common to see one company quoting around $140 a month for a Plan G in a given ZIP code, while another quotes $240 for identical coverage.

If you live in Massachusetts, Minnesota or Wisconsin, your state uses its own Medigap plan structure instead of the lettered system, but the same principle applies: Compare identical coverage across carriers.

That difference isn't a mistake in the system. It's simply how a heavily regulated product still leaves room for companies to compete on price. Once you understand that the benefits can't differ, price becomes the only variable worth comparing.

If it helps to see the price comparison laid out visually, this video walks through a similar rate check, including how identical Plan G quotes can vary by $100 or more depending on the carrier.

Why the same plan gets more expensive every year you ignore it

Insurance companies tend to price Medigap plans competitively when they're trying to attract new customers, then raise those rates gradually in years two, three and four.

Meanwhile, a different, equally reputable company may be offering the exact coverage you already have at close to what you originally paid. The result is a slow drift where loyal customers end up paying the most for the same benefits, simply by not looking elsewhere.

Consider this scenario based on real-life patterns I often see in my practice: Carol enrolled in a Plan G at 65 for $150 a month and never revisited it. Eight years later, she was paying $310 a month for the same coverage, on the same plan letter, that a different company was now selling to new customers for $165.

Nothing about her benefits had changed. What had changed was the price she was willing to keep paying without checking.

The catch: You need to shop while you're still healthy

Here's the part that makes this more than a simple money-saving tip. When you first become eligible for Medicare, you get a six-month Medigap open enrollment window where you can buy any plan, from any company, regardless of your health.

Once that window closes, switching companies generally means answering health questions. Depending on your answers, you can be charged more or declined altogether.

Several states (including New York, Connecticut, Massachusetts and others with "birthday rule" laws) require little or no underwriting to switch, but check with your State Health Insurance Assistance Program (SHIP) to see your state's specific rules before assuming this applies to you.

That's the trap in Carol's story. The money was there to be saved every year she waited, but the ability to make the switch wasn't guaranteed to still be there when she finally looked. The right time to compare pricing isn't when you're sick and need to. It's now, while you still qualify for whichever plan turns out to be the better deal.

The piece that isn't standardized: Part D

If you go the Medicare supplement route, prescription drug coverage isn't included. You'll need a separate Part D plan, and unlike Medigap, these plans aren't standardized.

Premiums, deductibles and which medications are covered can vary significantly and can change from one year to the next, even if you don't change anything yourself. This is worth reviewing every single year, not every few years, during the annual enrollment window that runs from October 15 through December 7.

Even people who aren't currently taking any medications are better off enrolling in a Part D plan rather than skipping it. Going without one, if you don't have other qualifying drug coverage, can trigger a penalty that gets added to your premium for as long as you're on Medicare.

What to do this fall

You don't need to wait until something feels wrong with your current plan to check whether it's still the right price.

Pull your current Medigap premium and compare it against current rates for the same lettered plan from other carriers licensed in your state, not just your existing company.

Do this while you're healthy. If your health has changed since you last shopped, ask an independent agent what your options are before assuming you can switch freely.

Mark October 15 through December 7 on your calendar every year, and use that window to review your Part D or Medicare Advantage plan, even if last year's plan still feels fine.

The takeaway

Medicare isn't a decision you make once at 65 and close the book on. Your health changes, insurance pricing changes, and the marketplace shifts every year whether you're paying attention or not.

Reviewing your coverage every two to four years, and your Part D plan every single year, can mean meaningful savings without giving up a single benefit. The only real risk is waiting too long to look.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When you think about the inheritance you'll pass to your heirs, you're likely thinking about your home, your savings and maybe a few treasured family heirlooms. You're probably not thinking about things such as your home insurance or car insurance.

But when it comes time to settle your estate, your insurance policies are just as important as everything else.

There are four common insurance-related problems executors face, said Evan Farr, certified elder law attorney and retirement planner practicing in Virginia, Maryland, and Washington, D.C.

"These include failing to recognize that a policy existed; out-of-date beneficiary designations; lapse of coverage because premiums were not paid on time; and ambiguity surrounding whose responsibility it is to collect proceeds (the estate or designated beneficiary)," Farr said.

To help prevent these problems, your executor needs to know about all of the insurance policies you have, even those you might not think are relevant.

How overlooked insurance policies cause headaches for your executor

Some of the most obvious issues that can come up involve life insurance. Nearly half of parents said life insurance is a key piece of the estate their children will inherit, according to a survey of more than 5,000 Americans Kiplinger conducted in partnership with Morning Consult.

But if your heirs don't know that life insurance policy exists, they might not know to file a claim. If the life insurance beneficiary you designated years or even decades ago is still listed on the policy, the benefits might not go where you now want them to go.

Since a life insurance payout can represent a significant part of the financial legacy you leave behind, it's essential that you make your policy easy to find and make sure your beneficiaries know it exists. Otherwise, a payout could be delayed while your loved ones try to locate the policy or determine who is entitled to the proceeds.

That communication could be especially important. A Morning Consult survey commissioned by Kiplinger as part of our Trillion Dollar Talk campaign found that among adult children who knew their parents had a will, estate-planning documents or a designated beneficiary, 35% didn't know how to access them. Making sure your executor and beneficiaries know where to find important insurance information can help close that gap.

Executors can also run into problems with home or car insurance. While an estate is being settled, the executor generally needs to make sure its assets remain appropriately insured. That can mean contacting insurers and determining what coverage needs to remain in place.

For example, if a fire, theft or other covered loss occurs while a home is part of an unsettled estate, problems could arise if coverage has lapsed or the insurer hasn't been notified of changes affecting the policy.

Your death can also change how an insurer handles an existing policy and who has authority to make changes or file a claim. Rather than assuming existing coverage will continue unchanged, your executor should contact the insurer to report the death and find out what documentation or changes are required.

With home insurance, in particular, your executor might also need to notify the insurer if the home becomes vacant or unoccupied for an extended period. Vacancy can affect coverage because an empty home can present different risks, including vandalism, theft and damage that goes unnoticed. Depending on the insurer and policy, different coverage or an endorsement might be necessary.

Similar issues can arise with any cars that are part of the estate. Your executor should contact the auto insurer before someone begins regularly driving an inherited vehicle or before coverage is canceled or changed.

Who is covered to drive the vehicle and how long existing coverage continues after the policyholder's death can depend on the policy and insurer. Giving your executor the information they need to contact the insurer and handle coverage appropriately can help protect both the vehicle and the estate.

How to make sure your executor can find your insurance policies

Whether you keep paper copies of all your policies or you've gone digital, the easiest way to keep track of your insurance is to create a single sheet listing every insurance policy you own.

"A consolidated inventory of all of your insurance policies is perhaps the single most valuable thing you can leave for your executor," Farr said. That inventory should include the following details for each policy:

• Name of the insurance company
• Policy number
• Your agent or broker's name and contact information if you have one
• What the policy insures. This can be a broad label such as home insurance, car insurance or term life insurance. You should also mention any riders or supplemental coverage here, too.
• Your current premium amount and how frequently you pay it (i.e., monthly, quarterly, annually).
• Where to find copies of the actual insurance policies. If you have them downloaded as PDFs, you can link to those files in the spreadsheet where you're keeping this inventory. If you access them via an online portal, note where your executor can find those login details. If you keep paper copies, note where that paperwork is stored.

You can keep all this information in a spreadsheet on your computer. Farr recommends updating it annually, as details such as premiums and coverage types change. If you switch your home or car insurance for a better deal; however, make sure to update the inventory right after you make the switch.

Writing out this inventory isn't enough on its own. The next step is to make sure your executor knows it exists and how to find it.

"Ideally this document would be made available to your executor via a secure digital storage system (like a password-protected cloud-based file share or an encrypted digital safe)," said Farr.

The key is to make sure you store your financial documents, including insurance policies, in a way that's accessible enough to the person who needs the document, but secure enough that no unauthorized person can get your detailed policy information.

Related content

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• How Much Life Insurance Do You Need?
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Nationwide, the average cost of full coverage car insurance sits at $2,244 per year while liability only coverage averages $1,176, according to insurance — comparison marketplace Insurify. But depending on which state you happen to live in, you could be paying as much as $1,300 more than that.

However, if you happen to live in one of these 10 states, your car insurance policy could cost you less than half the national average — even for full coverage.

Curious to see if your state ranks among those with the most expensive car insurance or the cheapest car insurance? Check the list below to see if you're in the lucky 10. While moving to one of these states just to save on car insurance may not make sense, if you've already been considering a move to one of these states, this could be one more thing to add to the "pro" column.

The 10 states with the cheapest car insurance

Based on the latest data from Insurify, the 10 states where car insurance premiums were lowest as of August are largely in the midwest and northern reaches of the country (with a few exceptions like Hawaii and North Carolina).

Of this list, three also boast the cheapest home insurance in the country: New Hampshire, Alaska, and Hawaii. For residents of these states, lower premiums for both home and auto insurance could help keep two major household expenses more manageable.

Whether you live in one of the cheapest states already or not, it's still a good idea to shop around ahead of every renewal to make sure you're always getting the best deal possible. To start, use the Bankrate-powered car insurance tool below:

Why is car insurance cheaper in some states?

If you don't live in any of the states above, you might be feeling like you are being unfairly overcharged for your premiums just because of where you live. But there are a few reasons that the state and even city that you live in can influence the premiums you pay to drive there.

Here are some of the factors that could be making it cheaper to insure drivers in the states listed above:

• Population density: Many of the states with the cheapest car insurance are also more sparsely populated (especially compared to the states with more expensive rates). Wyoming, for example, has the smallest population of any state while North Dakota and Alaska aren't far behind. With fewer drivers on the road, there are fewer chances for car accidents so insurers view these states as less risky.
• Coverage requirements: Some states have stricter minimum coverage requirements than others. This would primarily influence the cost of liability only car insurance, which is also generally cheaper than the national average in the states above.
• Cost of living: It's no coincidence that the states with the cheapest car insurance also tend to have a lower cost of living overall. Part of what goes into the rates insurance companies set is the cost of repairs. In lower cost of living areas, the labor costs for repairs can also be lower.
• Legal costs: Another factor companies consider is how likely they are to have to pay for legal fees and larger court-ordered payouts after serious accidents. Two of the states above are no-fault car insurance states which tends to result in fewer lawsuits — but also means you'll usually have to file a claim with your own insurance, regardless of who is at fault.

If you do live in one of these states but notice your bill is a little higher or lower than the numbers listed, that's because rates can be extremely localized. For example, someone inside Cheyenne, Wyoming — the state's largest city — might pay more than someone in a town an hour outside of the city because they're in the most densely populated part of the state.

You can use this information to make decisions about where you want to live if you're downsizing, finding the right balance between the lifestyle you want and the cost of living your retirement savings can comfortably bear.

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It's a question that comes up often among new parents and there's surprisingly little information out there to answer it. With the exorbitant cost of daycare, would you be crazy for even considering having one parent quit their job to stay home with the baby?

The idea of willingly giving up an entire second income can feel scary. How do you know whether you're considering all the right factors to feel confident in your decision one way or the other?

"People run the numbers, get an answer they could genuinely live with and still can't decide," David Fisher, Founder and CEO of Summit Income Planning Group, tells Kiplinger. "Because they are waiting for a version of the choice with no downside. That version doesn't exist. Every real option carries a cost."

How can you accurately estimate the costs and benefits of transitioning to a single income and make the move as seamless as possible if you do decide it's the right one? Here are seven financial moves to make that can help you make the best decision for your family.

1. Figure out the real change in income and spending

The first step in deciding whether a single income is feasible is getting a realistic estimate of how much your actual take home pay will be and exactly how your expenses will change. The real change in your household income and spending is not simply the second income minus childcare costs.

"It's the income minus the costs of things like childcare, commute, meals, and clothes," Fisher says. "The second income is also typically taxed at a higher tax bracket if the household income is high enough."

In other words, you're not just saving on daycare. The income of the parent who continues working will also be taxed less, as your household income will likely fall into a lower tax bracket and you'll be adding a new dependent.

Meanwhile, some expenses will go up. If you're putting the entire family on the working partner's health insurance, for example, expect a higher deduction for that from future paychecks.

Some additional ways you might be able to save by having one parent stay home include:

• Getting rid of the second car if there's a practical way for you to share one car when there's only one commuting parent.
• Canceling or scaling back on a professional cleaning service if you currently pay for one.
• Reduced fuel and maintenance expenses now that only one parent is commuting.
• Reduced spending on dining out if you tended to buy lunch outside while working.

Beyond changing health insurance costs, additional expenses and opportunity costs to consider when giving up one job include:

• The loss of any contributions the non-working partner was making to a 401k or other retirement account.
• The lost 401k matching contributions if the non-working partner was getting those.
• The impact on social security benefits of having fewer earning years in the stay-at-home partner's work history.

Doing the math on the whole picture can help you make a more informed decision and plan ahead for any long-term impacts this decision will have on your finances.

2. Get your life insurance in order now

When moving to a single income, your household no longer has a "backup earner" so getting life insurance to replace that income if anything were to happen becomes more important than ever.

But it's not just the working partner that needs coverage. "Insure the parent who's at home, too," Fisher advises. "People often feel it's unnecessary because there is no income but there absolutely is a cost to replace full-time childcare and household management."

Since you'll need coverage for both, rather than take out two separate policies, you can look into something called survivorship life insurance. Sometimes more bluntly referred to as "first to die" life insurance, this is a single policy that will provide a payout to either spouse in the event that the other passes.

3. Make any moves that require a credit application before the second income is lost

If you're starting a family, you might also be looking to buy your first home or move into a larger one. If not a home purchase, you might be looking into upgrading to a more family-friendly car.

Fisher recommends that couples "do anything that requires a credit application while both incomes are still on the paperwork." The higher household income will help you lock in better rates than you would qualify for on half the income.

4. Do a trial run of your single income budget

"For a few months before anyone resigns, operate the household on the single income and save 100% of the other," Fisher advises. "You'll learn more doing that than any projection."

This means living on the realistic budget you came up with in step one. Although, there will be some differences. For example, if getting rid of a car is part of your plan, you won't be able to eliminate that extra expense just yet. Meanwhile, if you're expecting a new baby, you won't be spending on diapers, clothes and other newborn expenses just yet either.

But try to get as close as you realistically can to the budget you sketched out for a few months before you actually need to make the decision.

Not only will this help you figure out if you can really make it work, but you can also make adjustments based on real world experiences during the trial period.

Even better, you can stack the cash from the second income in savings during the trial period. These savings can help you achieve step five below in a matter of months.

5. Double your emergency fund

The standard recommendation is to save three to six months of income in an emergency fund. When you're relying on a single earner, however, you want a more generous cushion because you won't have a backup income to rely on in the event of a job loss.

Instead of three to six months, aim for six to 12. As mentioned earlier, doing a trial run of your single-income budget while both spouses are still working can help you achieve this new number quickly.

To make it grow even faster, stash those extra savings in a high-yield savings account. You can use the tool below, powered by Bankrate, to find the best rates available right now:

Your goal can be to commit to the trial run for as many months as it will take to double your emergency fund. After that, you can decide whether that budget is sustainable long term.

If you decide it is, you've now got the emergency fund needed to take the leap. If you decide it isn't, you've got a generous chunk of extra savings you can use to offset future childcare costs or put toward other financial goals.

6. Make a "return to work" plan if you want that option

Sometimes, a couple might decide to make the transition temporary. One parent will stay at home during the early childhood years to avoid the daycare costs, but plan to return to work once the child is old enough to go to school.

If the plan is to ultimately return to work later, the stay-at-home partner should be planning for that return before they resign. The best way to do that is to transition to part-time or freelance work during the stay at home period.

"A resume with a reduced hours period reads completely differently than one with a five year blank," Fisher explains. When it comes time to job hunt again, the stay-at-home parent will have an easier time explaining those reduced hours rather than an extended gap.

The cash flow from that freelance or part-time work can also help pad the household budget.

If working reduced hours isn't feasible, at least make sure to maintain any certifications or make time for continuing education and networking during the stay at home period if you want to keep the door open for returning to work later.

7. Talk frankly about the shift in power dynamics that will happen

This isn't purely a financial decision. It will also have an impact on your relationship as one partner becomes fully financially dependent on the working partner.

To avoid the potential for that shift to create tension and conflict in the relationship, you should discuss how money and household work is going to be handled now and put the tools in place to make it feel fair.

For example, the non-working parent shouldn't be expected to be solely responsible for all household labor around the clock. Find ways to make sure that both parents are getting time to rest and relax throughout the week. Moreover, financial decisions should continue to be made as a couple, even though only one person is bringing in the income.

Talk openly now about how you're both going to make sure that happens instead of waiting for imbalances and conflicts to emerge later.

Thinking about giving up a second income?

Before making the change, consider talking with a financial adviser. They can help you model different scenarios, identify financial gaps and build a plan for living on one income without losing sight of your long-term goals.

Use the tool below to connect with a vetted financial professional today:

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For most of my career, I've watched Americans think about life insurance the same way. It's something you buy to protect your family if something happens to you. That's still true, but it's no longer the whole story.

Not only are people living longer, but roughly 11,000 Americans reach retirement age every day, according to the Alliance for Lifetime Income by LIMRA, and trillions of dollars are beginning to move from one generation to the next.

As a result, families are asking harder questions about retirement planning, how to make their savings last and how to leave something behind. Life insurance, when used well, can help answer all three of these questions.

Most insurers are now focused on developing products that solve real protection and long-term financial needs, with products that are less market-sensitive and more capital-efficient for the people who own them.

Consumers should view life insurance through the same lens. Before you buy a policy, here are five questions worth asking.

1. What do I want this policy to do?

Term life insurance is built to protect your family during your working years. It's affordable, straightforward and often the right first step. Permanent policies, including indexed universal life insurance, can do more. They build cash value over time that you may be able to access later in life.

It's important to be clear on what you want the policy to do. If you need coverage only for a set period, term may be the right answer. If you want a policy that can not only provide financial protection for loved ones, but also transfer wealth to the next generation, you are likely looking at a permanent product.

2. How does the cash value grow, and what happens when markets drop?

If you're considering permanent life insurance, ask how the cash value grows and what protects it when markets turn. Some products tie growth to a market index with a floor that limits losses in down years. Others carry more direct market exposure.

There is no single right answer. What matters is that you understand how your policy performs in both a good year and a bad one, how much risk you're comfortable taking and how that fits with the rest of your savings.

3. How can I use this policy during my lifetime?

A life insurance policy is not only for after you're gone. Many permanent policies let you access the cash value through loans or withdrawals while you're living. That flexibility can be useful as your financial needs change over time.

Also ask about riders, as some policies let you access part of the death benefit early if you face a chronic or serious illness. Those benefits can matter as much as the payout itself.

If you're working with a financial professional, ask them to explain how using a policy's living benefits could affect the death benefit.

4. How does this policy fit with everything else I'm planning?

Life insurance works best when it's part of a comprehensive plan. As part of your retirement planning, for example, assess your 401(k), your IRAs, your Social Security timing and all other assets together.

A financial professional can help you see how a policy supports the rest of the plan, including how it can:

• Protect a spouse
• Cover taxes on an inheritance
• Give you flexibility if one part of the plan doesn't perform as expected
• Help replace income that could be lost when a spouse passes away, including income sources for Social Security benefits

5. What do I want to pass on?

Life insurance has long been one of the most efficient ways to transfer wealth. In most cases, the death benefit is income-tax-free to your beneficiaries It can arrive at a time when families need it most, helping to replace lost income and provide financial stability during a difficult transition.

Think about what you want to leave behind and then ask whether your policy is built for that specific outcome.

Making life insurance part of your comprehensive financial plan is all about finding the right policy that can do real work for you over a long life, while helping to protect the people you care about most. Start with what you want and let the product follow.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Creating a will is an important part of estate planning, but it doesn't necessarily determine who receives every asset you own. Retirement accounts, life insurance policies and certain other financial accounts typically pass directly to the beneficiaries named on those accounts, regardless of what your will says.

That can create problems if beneficiary forms are missing or haven't been reviewed in years. The person you named when you first opened a retirement account at work, for example, might no longer be the person you want to inherit today.

Beneficiary designations aren't always part of the estate-planning conversation. A new Morning Consult survey conducted on behalf of Kiplinger for our Trillion Dollar Talk campaign found that just 36% of parents surveyed had designated beneficiaries on retirement accounts or life insurance policies. Another 30% said they had none of the formal estate-planning arrangements included in the survey.

Fortunately, reviewing your beneficiaries is one of the more straightforward estate-planning tasks you can tackle. Here's where to look and when it might be time to make a change.

Know which accounts have beneficiaries

In the Trillion Dollar Talk survey, 17% of adult children said they expected life insurance to make up the greatest share of their inheritance. Retirement accounts were another source of expected inherited wealth.

Here are some accounts and financial products that allow or require you to name a beneficiary:

• 401(k)s and other workplace retirement plans. Money in these accounts generally passes to the beneficiary named on the plan.
• IRAs. Traditional and Roth IRAs also allow you to designate who will inherit the account.
• Life insurance policies. The insurer pays the death benefit to the beneficiary or beneficiaries listed on the policy.
• Annuities. Depending on the contract, an annuity might include a death benefit that passes to a designated beneficiary.
• Transfer-on-death (TOD) and payable-on-death (POD) accounts. These designations can allow assets in certain brokerage and bank accounts to pass directly to a named beneficiary without going through probate. Availability and rules vary by account, financial institution and state.

These accounts are different from assets that might be distributed through your will, trust or other estate-planning arrangements. A beneficiary designation is attached directly to the account, which is why keeping it current is so important.

Rules can also vary depending on the type of account. For example, with many employer-sponsored retirement plans, a spouse is generally required to be the primary beneficiary unless they waive that right. IRAs and life insurance policies typically provide more flexibility when choosing beneficiaries.

Check who is actually listed

Once you've made your list of accounts, check each one individually. Depending on the provider, you might be able to find your beneficiary information by logging in online. Otherwise, contact the plan administrator, insurance company, bank or brokerage firm.

Don't rely on your memory of filling out a beneficiary form years ago. Confirm what the financial institution has on file.

Look at both your primary beneficiary, who is first in line to receive the asset, and any contingent beneficiaries, who might receive it if the primary beneficiary dies before you, can't be located or declines the inheritance.

While you're there, make sure names and other identifying information are accurate and current. You should also look for accounts that don't have a beneficiary listed.

Pay extra attention to accounts you've moved between financial institutions. FINRA recommends double-checking beneficiary information after transferring an account to another firm to make sure the designation still reflects your wishes.

Life changes that should trigger a beneficiary review

Beneficiary designations shouldn't be something you fill out once and forget. Your relationships, finances and estate-planning goals can change significantly over the course of a decade or two.

Some of the biggest reasons to revisit your beneficiaries include:

• Getting married or divorced
• The death of a spouse or another beneficiary
• The birth or adoption of a child or grandchild
• Remarriage or the creation of a blended family
• Estrangement or another major change in a family relationship
• A beneficiary developing a disability or other circumstances that might require specialized planning
• A significant increase or decrease in your wealth
• Major changes to your broader estate plan

Even without a major life event, it's worth reviewing your beneficiary designations periodically. You might make the check part of an annual financial review, along with looking at your insurance coverage, investments and retirement contributions.

Don't assume your will fixes an outdated beneficiary

It's easy to assume that once you update your will, all your assets will follow those instructions. But that's not always how it works.

For accounts with a named beneficiary, such as a 401(k), IRA or life insurance policy, the beneficiary designation on the account generally takes priority over what your will says.

For example, say you named your spouse as the beneficiary of a retirement account years ago. You later divorce, remarry and update your will to leave your assets to your new spouse. But you never update that old retirement account. That outdated beneficiary designation could still create problems.

This is why it's worth reviewing beneficiary forms separately whenever you update your estate plan. If your situation involves divorce, remarriage or other complicated family circumstances, an estate-planning attorney can help everything line up.

Make sure your beneficiary choices fit your broader estate plan

Beneficiary forms might seem like standalone paperwork, but they should work with the rest of your estate plan.

Think about how your retirement accounts, life insurance, real estate and other assets will ultimately be divided. Looking at the full picture can help you spot imbalances, such as one child receiving a large retirement account while another receives significantly less through your will. Reviewing everything together can help ensure your beneficiary choices reflect how you want to provide for the people in your life.

Pay extra attention if you have minor children, a blended family, a trust or a beneficiary with special needs, since these situations might require additional planning. Don't forget contingent beneficiaries as well. Naming a backup helps clarify where an account should go if your primary beneficiary dies before you.

This type of planning also highlights the importance of talking about inheritance before it becomes an urgent issue. The Trillion Dollar Talk survey found that two in five families have never discussed inheritance, and 30% of parents surveyed had none of the formal estate-planning arrangements included in the survey. Even a basic conversation about your plans and where important documents are kept can make things easier for your family later.

Make a beneficiary check part of your financial routine

You don't have to overhaul your entire estate plan in one afternoon. Start with a simple task: Make a list of every retirement account, life insurance policy, annuity and other financial account that might have a beneficiary designation.

Then check the beneficiary listed on each one, including your contingent beneficiaries. Keep a record of any changes you make and when you made them.

Consider repeating the process once a year and after any major family or financial change. It can also be smart to review beneficiary designations whenever you update your will or other estate-planning documents so the different parts of your plan continue to work together.

If you have a more complicated estate, such as one involving trusts, a blended family, minor children or beneficiaries with special needs, consider coordinating your beneficiary review with an estate-planning attorney and your financial professional.

A beneficiary form might seem like a small piece of paperwork. But when it determines where some of your largest assets ultimately go, keeping it current can be just as important as creating the estate plan itself.

Use the tool below to connect with a financial professional who can help:

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A 65-year-old retiring in 2026 can expect to spend $185,000 on healthcare costs. That's a 130% increase since 2002.

Those figures come from a new report from Fidelity, and they don't include long-term care, such as at-home caretakers or retirement homes.

You may have mapped out your retirement destination and legacy plans, but have you thought through the long-term care costs?

As a Registered Financial Consultant (RFC®) who specializes in tax-efficient planning for retirees, I'm sharing four considerations that every retiree should think about when it comes to planning for healthcare costs later in life.

1. Healthcare could become your largest retirement expense

Most Americans are ready to plan their housing, travel and everyday living expenses in retirement, but a portion could find that healthcare costs balloon beyond expectations, becoming the overall largest expense.

Consider the costs of Medicare premiums, prescription drugs and out-of-pocket costs that factor into your yearly budget.

You should also be honest with yourself about your mobility and health later in life. Americans are living longer, with more people making it to age 100 every year. Self-sufficiency at older ages can deteriorate quickly, and if you expect you'll need long-term care from professionals or a facility, monthly costs can range from $6,000 to $11,000, according to CareScout.

2. Medicare could fall short in retirement

Don't assume that Medicare will take care of your healthcare expenses in retirement. While it will certainly help with inpatient care, specialist visits and important screenings, there are multitudes of expenses that Medicare will not cover.

Beneficiaries will still pay for things like deductibles, coinsurance and insurance premiums. You can be hit with surprise expenses for out-of-market coverage or emergency care. It also won't cover routine dental, hearing and vision care appointments.

There are also significant time limits to the care that Medicare covers. If you find yourself at a long-term care facility, Medicare will cover only the first 20 days of your stay in full and only a portion of the care up to 100 days.

Medicare offers great support for paying for medical expenses, but if you're expecting it to take care of you on its own, you'll find a pile of unexpected bills in your mailbox.

3. Make your healthcare plans now

The earlier you begin planning for healthcare expenses, the more options you will have in retirement.

If you're still working, contributing to a health savings account (HSA) can offer one of the most tax-efficient ways to save for future healthcare costs.

Part of your plan should be what age you intend to enroll in Medicare. Most should enroll around the age of 65, but you may be able to delay Medicare Part B without penalty if you're still working and receive health insurance through your employer.

This will keep you from paying the premiums on your current insurance and Medicare at the same time.

You will be allowed to sign up for Medicare during a special enrollment period if you leave your position and lose your employer coverage.

The real issue to avoid is enrolling late without qualifying coverage. If you miss your window to apply, your premium can increase by 10% for each year you were eligible but chose not to enroll.

That is a devastating and unnecessary expense that will follow you throughout your retirement.

Be sure to speak with a financial adviser or retirement professional to understand the important windows of when you should enroll.

4. It's never too late to lower risk and costs

The best way to reduce your healthcare costs is by not needing healthcare in the first place.

Obviously, some unforeseen conditions and circumstances will impact our healthcare spending, but it's never too late to reduce the risk factors.

Eating well and exercising regularly will help keep risk factors for a wide range of illnesses and health conditions down. A lower risk of heart disease or broken bones means fewer medical bills throughout your retirement.

It will also greatly improve your mobility later in life, helping you enjoy your golden years to the fullest.

Just like saving for retirement, the sooner you invest in your health, the better. But it's never too late to start the journey to healthier living.

It's not a conventional consideration when making your financial plan, but it is a factor that could make a major impact on your healthcare spending in retirement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

According to insurance-comparison marketplace Insurify, the national average cost of full coverage car insurance is $2,244 per year, while liability-only coverage averages $1,176 per year. But drivers in some states are paying thousands of dollars more than that national average to keep their car insured.

While there's not much you can do if you live in one of the 10 states below — aside from moving to another state with cheaper car insurance — it helps to know how your state compares to the average.

If you know you're in a more expensive state, you can be even more diligent about the rate-influencing factors that are in your control. For example, make your next car one of the cheaper models to insure or take a defensive driving class to earn a discount on premiums.

The 10 states that pay the most for car insurance

Based on the latest data fromInsurify, the 10 states that paid the most for car insurance in August are largely concentrated along the east coast, from Connecticut stretching down to Florida.

Whether you live in one of the most expensive states are not, the best way to keep your premiums under control is to shop around ahead of every renewal to see if you can find a better deal elsewhere.

Start that process using the Bankrate-powered car insurance shopping tool below:

What makes car insurance more expensive in some states?

You might already know that things like your driving history or your car's make and model influence your car insurance premium. But why would the state you're driving in matter to an insurance company? There are many reasons, but here are a few of the most common state-level factors that drive your premium up:

• Population density: Many of the most expensive states are also among the more densely populated. When you've got a lot of drivers packed into a smaller area, accidents become more likely compared to drivers cruising on the wide, open roads of, say, the Midwest (which is underrepresented on the top 10 list). Insurers see more densely populated areas as more prone to auto theft as well.
• Weather and natural disasters: Just as home insurance rates go up in more disaster-prone areas, so too, do car insurance rates. This will primarily affect your comprehensive car insurance as that's what you'd file a claim against if your car was damaged in a weather-related event. But it can also spike rates on the rest of your coverage as accidents become more likely in bad weather.
• Coverage requirements: Some states require higher levels of coverage than others. This can make even minimum coverage policies in one state pricier than full coverage in another state.
• Rates of uninsured or underinsured drivers: The share of drivers without adequate insurance can also affect insurance costs. Florida, for example, has one of the nation's higher rates of uninsured motorists. When an at-fault driver has no insurance or doesn't have enough liability coverage to pay for your injuries, uninsured or underinsured motorist coverage can help cover the difference. Higher rates of uninsured drivers can contribute to insurers' claims costs and, in turn, put upward pressure on premiums. Some states require drivers to carry uninsured or underinsured motorist coverage, while others allow drivers to decline it.
• Legal costs: If you file a lawsuit against the at-fault driver or their insurance company after a serious accident, you may receive a higher payout than you would through the initial claims process. In states where costly lawsuits are more common, insurers may spend more on legal fees and claim payouts. Many insurers pass those costs on to consumers in the form of higher premiums.
• Cost of living: Housing and groceries aren't the only expenses that tend to be higher in states with a high cost of living. Auto repair costs can also be more expensive, in part because of higher labor costs. When insurers have to pay more to repair vehicles after covered accidents, those higher claim costs can contribute to higher car insurance premiums.

While car insurance rates shouldn't be your main criteria for choosing which state you want to move to, they can be a useful way to narrow down your options or balance quality of life with cost of living.

Say you want to retire on the coast of Florida, for example. Since both home insurance and car insurance are significantly more expensive there, you might be able to enjoy a similar quality of life at a fraction of the price by heading to the gulf coast of Alabama instead.

The average rates can also vary substantially from one area of the state to the next. If you don't want to trade Florida for Alabama, moving to a less populated area within Florida could result in car insurance rates below the state average, for example.

Finally, you can use average rates as an indicator of what driving might be like in a state. If it's more expensive, that's because insurance companies expect to handle more frequent or more expensive claims. As a driver, that means you might need to be even more cautious than usual when you're behind the wheel to avoid an accident.

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A pattern shows up often enough in my practice that I've stopped being surprised by it.

Someone in their mid-50s comes in for a routine check-in. Their mortgage is paid off. The kids whose 20-year term life policy was meant to protect are mostly grown. That policy did its job well.

But somewhere in the conversation, it comes out that an aging parent has just moved in or started needing help that wasn't part of anyone's plan two decades ago, right around the time the original coverage is scheduled to end.

September is Life Insurance Awareness Month, which makes this a good moment to look at a timing problem that comes up more than people expect. This isn't a rare coincidence.

According to Northwestern Mutual's Planning & Progress Study, roughly one in five Americans is caring for a family member, and many are making financial trade-offs to do it: Cutting spending, pulling from savings or taking on debt.

That's the backdrop many are managing when a term policy expires in the same decade.

What makes these situations challenging is not necessarily the policy itself. It is that people may be trying to address today's responsibilities with a financial plan built for a very different season of life.

How age and health affect the cost of new coverage

Here's what I explain to people in that situation: Term life insurance is generally relatively inexpensive because it's temporary, and the premium you paid years ago reflected your age and health at that time.

When that policy ends and you look for new coverage at 55 instead of 35, an insurer isn't underwriting the same person. Medical history and health markers may have changed over that period, even for people who feel healthy.

What that means in practice: Replacement coverage at this stage may cost more for the same death benefit, and health changes can sometimes limit what you're able to qualify for.

I don't tell people that buying term coverage in their 30s was a mistake. If they had a young family and a time-limited need, like a mortgage or a child's dependent years, term insurance was likely the most cost-effective way to secure meaningful coverage, and for many it still is. The issue is making sure the plan keeps pace as responsibilities change.

Three ways to approach an expiring policy

If your term policy is nearing its end date, there are three paths to consider. The right one depends on your health, budget and what you're trying to protect against.

Convert what you have. Some term policies include a conversion option that may allow you to convert some or all the coverage to a permanent policy, subject to policy terms, without new medical underwriting.

This may be a valuable option for anyone whose health has changed, but conversion windows are typically limited to a specific age, so check before your policy expires.

Add smaller coverage on top. Instead of replacing your full death benefit, you may need only a death benefit to help cover a narrower, current gap, like a parent's care needs or a remaining few years of a child's dependency on your income.

Start over with today's numbers. The coverage amount that made sense at 35, based on income replacement, a mortgage and young children, may have little to do with what you need to protect now. Recalculating based on your current obligations often produces a more accurate target.

This kind of planning matters even more for those also thinking about what they'll eventually leave behind. A historic $124 trillion intergenerational Great Wealth Transfer is already underway between generations in the U.S., and those revisiting an expiring term policy are often also due for a broader look at their estate plan.

Don't skip the estate planning conversation

An expiring policy is a natural prompt to check something many haven't looked at in years: Their beneficiary designations.

I ask clients to review whether their beneficiary designations still align with their estate plan and whether they should consult tax or legal professionals about potential unintended consequences.

A former spouse listed as beneficiary, a minor child who'd receive a lump sum before they're ready to manage it or an estate named as beneficiary by default can all create complications that a trust, staggered distribution or other planning tool may help address.

Some permanent life insurance policies can build cash value over time. For some households, its death benefit can help address estate planning needs, which may include estate taxes, equalizing inheritances among heirs or charitable giving.

For those whose estate plan hasn't been reviewed since the term policy was purchased, an expiring policy is as good a reason as any to have both conversations at once.

For wealthier individuals, the expiring policy itself is often less the point than what it was quietly standing in for. Coverage tied to a business loan, buy-sell agreement or key-person planning can also expire or lapse, and often carries higher stakes.

It's also common for these clients to have postponed other estate planning decisions, such as gifting assets into a trust or updating succession plans. An expiring policy is a reasonable prompt to finally have that conversation.

What to do before the policy lapses

If any part of this sounds like your household, a few steps are worth taking now, while you still have options:

Pull your policy documents and check whether it includes a conversion option and by what date it needs to be exercised

Take an honest inventory of who currently depends on your income, rather than the picture from 20 years ago

Check your beneficiary designations against your current estate plan, not the one you had 20 years ago

Talk to a financial adviser before your term expires, not after a lapse notice arrives — options narrow once the policy has ended

In my experience, the clients most exposed to this timing mismatch usually aren't the ones who think of themselves as underinsured. They may have purchased exactly the right coverage for the season of life they were in.

The challenge is that life rarely stands still. Careers change. Families change. Businesses grow. Parents age. Responsibilities shift.

The good news is that many of these situations can be addressed when they are identified early. The goal is not to perfectly predict every change life may bring. It's to revisit your plan often enough that it can evolve alongside the people and priorities that matter most.

Sometimes an expiring policy is simply the reminder that it's time to make sure your financial plan has changed along with your life.

Article prepared by Northwestern Mutual with the cooperation of Gina Cimineri. To view detailed disclosures regarding individual representatives, view their information at taketwofinancial.nm.com.

This article is not intended as legal or tax advice. Financial Representatives do not render tax advice. Consult with a tax or legal professional for advice specific to your situation.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

With the official start of fall just a few weeks away, many homeowners are ready for the heat to let up and the electricity bills to go down. This is the ideal time to take a walk around the outside of your house and check for any lasting damage the relentless heat of summer might have caused this year.

While you may already be familiar with the risks of winter damage, like frozen pipes and leaky roofs, summer can also do a number on your home – and often the damage isn't immediately obvious unless you know what you're looking for.

If you haven't done an inspection since winter ended, now is a great time to check for these five signs of heat damage around the home and learn how to address them and which ones home insurance might cover.

1. Cracks in your foundation from subsidence

In some states, like Texas and Missouri, the threat heat poses to a home's foundation is already fairly well known. But in states that are still getting used to blistering hot summers, you might not even think to check for (or prevent) subsidence around your home.

Primarily a threat in clay-heavy soils, subsidence happens when soil expands with moisture during wetter or cooler months and then contracts during hot, dry weather. Over time, that cycle of expansion and contraction can cause cracks to develop in your foundation.

Foundation damage can show up as cracks around windows and doors as well as on the foundation itself. It might also show up as a window or door not shutting like it used to. In some homes, normal swelling and shrinking of wood from changing humidity can cause windows and doors to stick a bit. But if you notice them being even harder to open and shut than you're used to with the changing season, it could be a sign to get your foundation inspected.

This is important for homeowners to stay on top of because subsidence is usually categorized as "earth movement," which is typically excluded by standard home insurance. However, if you purchase earthquake insurance (which usually includes most common forms of earth movement), you might be able to get this covered.

To prevent this next summer, you may need to set a reminder to water your foundation during hot, dry weather. Typically, homeowners are advised to keep water as far away from their foundation as possible. But if you have heavy clay, you might be one of the exceptions.

Not sure if your soil is the kind that needs watering? Check around your home after a hot, dry spell to look for signs of cracked soil anywhere that you don't regularly water. Pay special attention to the soil along the edge of your home. If you can see areas where the soil has pulled away from your house, that's a sign that it shrinks and swells severely enough to require watering – even if you don't see any cracks in the foundation yet.

2. Siding distortion

Vinyl siding is an affordable and attractive option for upgrading your home. But it's also susceptible to melting (or distorting) in the heat. This is a bigger risk for siding that's facing a neighbor's window or other reflective surface, since this concentrates and targets sunlight on a specific spot for prolonged periods.

As you walk around the house inspecting your foundation and checking for cracks near windows and doors, check the siding while you're at it. Look for any patches that might look a little distorted or warped.

If you see any signs of distortion, the first step is to check the manufacturer's warranty if you happen to know the manufacturer. This kind of damage might be covered by the warranty if your siding is new enough to be under warranty. If not, you'll likely have to cover the repair out of pocket, as home insurance typically only covers siding distortion if it was caused by a covered peril (like a fire).

To prevent this next summer, identify any possible source of reflected sunlight that might have caused the distortion. If it's a neighbor's window, for example, you might be able to put up a temporary screen or plan to plant a hedge between your houses to block the reflected light.

3. Cracked or blistered roof shingles

Once you've finished your walk-around inspection, get up on the roof if you're comfortable doing so. If not, you can hire a pro to do the inspection. Your roof should be inspected twice a year: Once after winter, when the freeze-thaw cycle or heavy snow might have damaged your roof, and once after summer, when extreme heat and fluctuating humidity levels can cause shingles to crack or blister.

In both cases, damage may not be severe enough after a single season to cause leaking or other issues in your roof. But catching and repairing minor damage regularly can prevent more severe problems down the line.

Another reason to make those repairs now while they are still minor: Your home insurance probably won't cover it. As with siding, roof damage is usually only covered if the cause is a covered peril like hail or fire.

To prevent this next summer, you can apply a reflective sealant to shingles that protects your roof by bouncing solar radiation and UV rays back up rather than allowing them to absorb into the shingles. This can also block heat from entering the home, so you might also see lower cooling costs next summer.

4. Mold growth in your basement, bathrooms or other damp spaces

If you have a basement, you probably already know it's prone to dampness. The same is true for any room in your house that has plumbing, like bathrooms, kitchens, and laundry rooms. When you combine already damp spaces with the warmth of summer, you have a recipe for mold.

While at-home mold test kits might seem like the right move, they're not really that helpful. The amount of airborne mold spores can fluctuate dramatically from one hour to the next, so you might get a negative because you tested at a time when the spore count happened to be low. Those that test samples scraped from a surface are limited in use for the same reason. The small patch of wall you sampled might not have mold on it, but the patch two inches to the left might.

Instead, do a thorough visual inspection of the high-risk rooms in your home to look for the orange or black discoloration characteristic of mold growth. If you find visual evidence of mold but it seems minor, you can try cleaning the area with bleach or vinegar thoroughly. But continue monitoring the area periodically to see if the mold comes back. If it does, you might need to bring in professional mold remediators to find and fix the underlying source of the problem.

Whether or not mold remediation will be covered by your home insurance is a tricky issue. If the cause can be traced to a covered peril, like a burst pipe or water heater, you might be able to file a claim. If not, you might be out of luck.

To prevent this next summer, one option is to keep your HVAC system running all season long to keep humidity and temperatures under control. If the risk is only in certain rooms of the house, however, a more cost-effective option might be to get dehumidifiers for just those rooms. According to the EPA, maintaining humidity levels between 30% and 50% will prevent mold growth. As an added bonus, lower humidity also discourages pests like cockroaches and dust mites.

5. Spoiled food and damaged medicine

Even if you run the air conditioner, some parts of your home can end up hotter than others – such as a kitchen cupboard mounted to an exterior wall or a medicine cabinet in a bathroom that has no A/C vent.

Heat aside, summer is also a time when pests and mold spores are more numerous and more likely to find their way into your home.

You may have already started stashing some produce that you'd normally keep on counters in the fridge to prevent spoilage. But things like coffee, spices and vitamin supplements should all get moved somewhere cooler as well.

Now is the time to check for signs of spoilage or stale smells in all of your pantry staples and toss anything that seems suspicious. In your medicine cabinet, look for changes in color, texture or smell in your medicines, supplements and even cosmetics.

To prevent this next summer, make a list now of heat-sensitive items in your home that you'll move to a cooler, drier area. This can be as simple as moving them away from exterior walls and keeping them in a bin in a room that is air conditioned most of the day.

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Where you live affects your finances in a myriad of ways. One critical component is how much you pay for car insurance.

Living in a city with higher collision risks can lead to higher insurance premiums, regardless of your personal driving record. This is where Allstate's 2026 Best Drivers Report can shine some light on the safest areas to drive.

The insurer examined the 200 most populous US cities, using insurance claims and Drivewise app data — the app you download to monitor your driving behavior in hopes of a lower rate. These findings show how where you live can affect your insurance rate.

These are the safest cities for drivers

Allstate found that Brownsville, Texas, is the safest city in the US for drivers. Drivers living there only experience a collision once every 15 years. Meanwhile, in Boston, Massachusetts, drivers can experience collisions every 3.76 years. That makes it more than four times less likely you'll crash in Brownsville.

Along with Brownsville, here are the top 10 safest cities for drivers:

• Brownsville, Texas
• Fort Collins, Colorado
• Boise, Idaho
• Laredo, Texas
• Cary, North Carolina
• Madison, Wisconsin
• McAllen, Texas (New to top 10)
• Colorado Springs, Colorado (New to top 10)
• Eugene, Oregon
• Olathe, Kansas

You'll notice a few trends from this list. Not surprisingly, living in a smaller to medium-sized city lowers your risk.

And it isn't just about the sheer number of drivers you encounter on your commutes. Allstate's Drivewise data show that drivers in larger cities such as Miami and Boston tend to use their phones more while driving, resulting in elevated risk.

If you live someplace more collision-prone, check your insurance rate regularly to ensure you have the best deal. Use this Bankrate tool to compare options quickly:

Night driving is also more prevalent in larger cities. Allstate found that driving at night is highest in larger cities, such as Washington, DC, Las Vegas and New York. With nighttime driving come elevated risks such as drowsy driving, hard-to-see road hazards and drunk drivers.

Another trend is regionality. The Northeast is home to seven of the 10 most dangerous driving cities, with three being in Massachusetts (Boston, Springfield and Worcester). Meanwhile, the safest cities were predominantly western, with three in Texas and two in Colorado.

While geography plays a massive role in your insurance costs, it isn't the only factor you can influence. Even if you don't live in one of these top-tier cities, you can still take control of your financial protection.

How to protect your car insurance rate

Industry experts recommend the following tips to keep your policy low while protecting your finances:

• Buy a dash cam: Insurance fraud cases often involve "crash for cash" scams. A dash cam can provide irrefutable evidence to back up your claims. This can protect you financially from higher insurance rates and out-of-pocket expenses resulting from judgments exceeding coverage limits.
• Document everything during an accident: Take pictures of all vehicles involved, property, road conditions and skid marks. This can refute "soft fraud" claims where others might exaggerate damages.
• Be cautious of insurance deals: You'll see social media ads promising ridiculously low prices for insurance coverage. These ghost agents can take your money and cancel your policy without your knowledge, leaving you on the hook for any accidents caused in the meantime.
• Check for specific coverage gaps: Beyond standard liability, check your policy for exclusions. Some carriers won't cover damages animals cause to cars, resulting in thousands in repair bills. So, make sure to read your policy thoroughly and contact your agent with any questions on coverage gaps.

While your city's collision risk is a factor you can't control, your approach to insurance and risk management is in your hands. By staying informed about your coverage and taking proactive steps like installing a dash cam, you protect your wallet, no matter where you drive.

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Imagine: You're out on a nice drive when you turn a corner and someone, busy doing a livestream instead of driving, merges without looking, smashing into your car. Vexing, but no worries; you get out to assess the damage and exchange insurance information.

The only problem is the other driver has a different story of the events. They claim you cut them off. Several witnesses come forward, some siding with you, others siding with the other driver. While cops and insurance adjusters will investigate the scene to determine the cause, sometimes you could do nothing wrong and still be found at fault.

This can have significant financial ramifications. First, it could raise your car insurance rates. It could also cost you money out of pocket if the damages a judge awards the other driver exceed your insurance coverage. This is where a dash cam can level the playing field.

The essential tool every driver needs

Dash cams provide video recordings of events as they happen. Using the above example, it would capture the other driver running into you while livestreaming. This provides concrete evidence to police and insurance adjusters when they determine who was responsible.

In turn, it could prevent you from incurring rising insurance costs for something that wasn't your fault. You also wouldn't have to worry about being liable for other damages the court could have awarded without the evidence.

So, with this in mind, what are some factors you should consider when choosing a dash cam? Here are the most important:

• Video quality: Find cameras that offer 1080p resolution and a wide field of view to ensure they capture license plates and your surroundings.
• Night vision: With some accidents occurring in low-light conditions, prioritize a model with high-quality sensors (like STARVIS) to keep your recordings clear.
• Smart features: Seek out dash cams with loop recording, which prevents storage issues. Also, look for units with G-force sensors, as they lock footage during a collision.
• Driving behaviors: If you plan to drive often at night or through inclement weather, look for dash cams that offer thermal imaging and alerts, as they can detect wildlife and other road hazards.

Top dash cam options to consider

Now that you know what technical specs to prioritize, let's look at some of the most reliable models currently on the market to help you make your final choice:

If you choose a dash cam with SD card storage, check it periodically to ensure that it has not become corrupted. You can do this by removing the card from the cam and plugging it into your computer to view files.

Don't forget to do this before installing

Before you install your dash cam, it's ideal to check your state and local laws to ensure that where you place it is compliant.

Here are two areas of emphasis:

• Windshield obstruction: Some states have rules about where you can mount a camera in your car to prevent obstruction of the driver's view. In Ohio, you cannot install a dash cam on a windshield.
• Audio recording: Your state might have restrictions on recording other passengers without their knowledge. You can address this by asking each passenger's permission before they enter your car.

Ultimately, a dash cam isn't just about managing insurance claims; it’s about having peace of mind so you can focus on the road ahead. In turn, it can protect you from financial ramifications, such as higher insurance bills and out-of-pocket settlements from judgments in accidents you didn't cause.

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Single drivers in California may pay more for auto insurance than married drivers following a recent court ruling.

In July, a California appeals court upheld a decision allowing insurers to continue using marital status as an optional factor when setting auto insurance rates, according to the Los Angeles Times. The court rejected a lawsuit arguing that the practice violated California’s anti-discrimination laws.

Here’s what the ruling means for California drivers, whether it could affect drivers in other states and what you can do if you're paying more for coverage.

What it means for California drivers

Given the appeals court’s ruling, married drivers in California may continue to pay lower auto insurance premiums than unmarried drivers with similar risk profiles. Depending on the insurer and policy, single, divorced and widowed drivers could pay approximately $56 to $100 more per year.

Marital status is just one of many factors insurers may use to calculate premiums. Your driving record, annual mileage, location, claims history, vehicle type, age and gender can also influence how an insurer assesses your risk and, ultimately, how much you pay for coverage.

Could this affect drivers outside California?

Insurance rating laws vary widely by state. Some states prohibit or restrict insurers from using certain personal characteristics in their rating calculations. For example, while many states allow insurers to consider a driver’s credit score when calculating their rates, Massachusetts, Michigan, Hawaii and California have banned the practice.

New York prohibits insurers from using a driver’s occupation and education as rating factors, while Michigan prohibits the use of factors like gender and education.

California’s court ruling doesn’t change insurance laws in other states, but regulators, insurers and consumer advocates may watch its impact. The decision allows California insurers to use marital status as a rating factor when it can be shown to relate to driver risk.

At this time, only Massachusetts and Hawaii have barred insurers from using marital status as a factor.

What drivers can do if they're paying more

If your car insurance costs continue to climb or suddenly spike, you may be overpaying. Regardless of your marital status or where you live, there are several ways you may be able to lower your premiums:

• Compare quotes every renewal: When your policy renews, shop around and compare quotes from other insurers. If another insurer offers you a lower premium for the same coverage, your current insurer might be willing to match that quote to retain you as a customer. Alternatively, you might find that another insurer offers you a better deal and decide to switch your insurance.
• Ask which discounts you're eligible for: Call your current insurer and ask about their available discounts. You might find you qualify for discounts that you’re not currently receiving, and adding those discounts in can help lower your premiums.
• Bundle policies if it makes financial sense: You may be able to save money by bundling policies, such as bundling your home and auto insurance policies. Just make sure that the decision makes sense for you, and that you’re not transferring a policy to an insurer that doesn’t really meet your needs, just to take advantage of a bundle offer.
• Review your deductible: You may be able to lower your auto insurance premium by increasing your deductible, but this decision comes with some risk. If you ever have to file a claim, you’ll need to pay the deductible upfront, so make sure you have enough cash set aside to do so. If you decide to choose a higher deductible, it’s a good idea to put the payment for the deductible in a high-yield savings account so it’s accessible if you need it but earns interest in the meantime.  
• Evaluate your optional coverage: Depending on your state, certain types of car insurance are optional. Collision and comprehensive are often optional as long as you own your vehicle outright, and roadside assistance and some higher policy limits are optional, too. Dropping some optional coverages can help lower your premium, but you’ll need to consider the level of risk that you’re comfortable with before you decide to drop the coverage.

Since insurers weigh rating factors differently, simply shopping around for auto insurance is one of the best ways to ensure you’re getting a good rate.

Make sure that you’re comparing policies with the same types of coverage, coverage limits and deductibles. It’s easy to renew your policy out of habit, but making a point of shopping around at least once a year may help you lower your car insurance rate while still getting the coverage you need.

Use the Bankrate tool below to gather quotes and compare today's top car insurance offers:

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You found your dream home, the seller accepted your offer, and you're eager to close on the sale. But as you finalize the paperwork, make sure you don't overlook a policy that could prove invaluable down the road: owner’s title insurance. Without it, you could lose your home and the money you've put into it if someone else one day lays an ownership claim to the title — your legal right to own the property.

Many home buyers assume that the title insurance their mortgage lender requires them to pay for at closing protects their interests. However, that policy applies only to the lender's investment. It does nothing to shield your finances if a title dispute arises.

Although purchasing an owner's title insurance policy is optional for home buyers, doing so is worthwhile because it can safeguard your investment, including any financial losses or legal fees, says Sarah Frano, vice president of corporate underwriting with First American Title. "I would not buy a property without title insurance," she says. "I’ve seen the variety of things that can pop up after closing — sometimes years or decades after someone purchases their home."

How it works.

Lenders order a title search once a home is under contract to ensure there are no outstanding ownership claims so that title can pass from one owner to the next. But title examiners don't catch everything, said Karina Borgia-Lacroix, owner of American Real Title in Ft. Myers, Fla.

If they miss an undisclosed heir with a valid claim to the home, for example, that heir could take you to court to challenge ownership. Or if there's a lien on the property for, say, work that a contractor completed but went unpaid by the previous owner, then the home could be forced into a foreclosure if the contractor files a lawsuit. If you don’t have an owner's policy when these types of problems arise, you’ll either have to pay the outstanding liens or defend yourself against title claims in court.

Other scenarios that can result in a dispute, says Frano, include forgery and fraud (such as fake signatures, impersonation or fraudulent sellers); recording errors in county records; misspelled names on recorded documents; and unknown easements that limit how property can be used.

How much does owner's title insurance cost?

While you can purchase owner's title insurance at any time, it’s best to do it during the closing process so you can protect yourself against title claims during the entirety of your ownership.

Plus, purchasing it after closing can be more complex and expensive. If you inherit a property, review the existing title policy to see whether the insurance covers you as an heir, says Frano. If it doesn’t, you’ll need to buy a new policy.

Title insurance premiums are regulated by each state. Expect to pay roughly 0.5% to 1% of the home’s purchase price for an owner's policy. You'll pay much less for the lender's policy, which is based on the loan amount and typically adds just a few hundred dollars to your closing costs.

Buyers usually cover the cost of the lender's title policy. With the owner's policy, whether the buyer or seller pays — or the cost is split down the middle — depends on local customs and laws, Frano says.

Title agents often provide discounts when you combine the purchase of an owner's and a lender's policy, says Borgia-Lacroix. You can shop around among title insurance companies to compare costs and coverage levels.

Buying a home involves more than saving for a down payment. A financial professional can help you build a plan for closing costs, ongoing homeownership expenses and protecting your investment over the long term.

Use the Bankrate tool below to connect with a financial professional and get started today:

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Between the wildfires in Canada and those raging in Washington, it seems like wildfires are getting more common and widespread. If the news has you worried, there are two things to know.

First, your home may be at a higher risk of fire than you think – especially if you've never given much thought to fireproofing before. Secondly, most of the best practices for making your home more resilient to fire are simple, DIY-friendly projects you can knock out in a weekend.

While those in especially fire-prone zones might also need to look at bigger home upgrades like installing fire-rated siding and roof materials, every homeowner can immediately improve their home's fire safety by starting with these eight steps.

1. Review your insurance coverage now

Most standard home insurance policies will cover damage caused by fire, including smoke damage. However, some insurers might exclude coverage in high-risk zones, while others may have exclusions based on the cause or source of the fire, and others may exclude certain types of damage.

If any such exclusions exist in your policy, you want to know that before a fire breaks out so you can line up supplemental coverage or switch to a provider with more comprehensive fire coverage.

If you do find out your policy doesn't cover as much as you thought, you can use our tool below, powered by Bankrate, to compare quotes on home insurance that does provide all the coverage you need.

As for your car, fire damage would only be covered if you have comprehensive insurance included in your policy. This type of car insurance covers any damage that happens to your car while you're not driving it – fire, hail, falling trees and so on.

If you don't currently have comprehensive coverage, now might be a good time to shop around for quotes on policies that include it. You may be able to get a better rate on a better policy by switching car insurance.

2. Install mesh screens in vents and other openings

Wire mesh screens with holes no larger than 1/8 inch are the gold standard for fire safety, according to the National Interagency Fire Center. Mesh with holes this small can block embers from entering your home. You should mount these in any attic vents, eave vents or other openings where air can travel into the house.

One often overlooked place to install mesh screens is your HVAC vents. If you have a ducted system, those air ducts can end up allowing embers from one room to escape into other parts of the house.

By adding mesh screens to every vent in your home, you can prevent a fire that starts in, say, the kitchen from spreading to the bedrooms through the vents. This will buy your family more time to get out of the house safely and potentially limit the spread of the fire altogether.

If you have older, single-pane windows, consider adding mesh screens to these as well. These older windows are more prone to breaking from radiant heat during a fire. If they do, that creates a wide opening for embers and flames to get into your house.

Ultimately, the best thing you can do is replace those older windows with newer, double-pane designs. But that's not an easy, weekend DIY. In the meantime, screens are a cheaper, more DIY-friendly way to at least block embers from getting into the house if the glass breaks.

3. Close your fireplace flue when the chimney is not in use

Another easy-to-overlook entry point for embers and flames is your chimney. While it might seem convenient to keep the flue open year-round so you don't accidentally start a fire in the fireplace with it closed, it's not worth the risk.

If this is something you're liable to forget, consider creating recurring calendar events in your phone: One in spring reminding you to close the flue ahead of the warm season and one in late fall reminding you to open it back up again so you can use the fireplace.

4. "Firescape" your yard

A lot of traditional home landscaping practices pose a bigger fire hazard than you might think. Do you have wood mulch in the garden beds next to your house? That's like piling kindling right up to the sides of your home. Did you plant ornamental grasses or creeping juniper as a ground cover? Both of those are fuel for a spreading wildfire.

While you don't have to rip out every plant and pave your garden over with hardscape to stay safe, a few minor tweaks to your design can make a huge difference in your home's ability to survive a wildfire.

Here are some of the best practices, according to the National Interagency Fire Center:

• Don't use flammable mulch within five feet of your home or other structures. You can use gravel, hardscaping or other non-flammable alternatives in these zones.
• Any larger woodpiles or other flammable materials (like firewood or propane tanks) should be 30 feet away from structures.
• Choose fire-rated plants for your garden. No plant is "fireproof," but some are more resistant to burning than others – either because they're less likely to ignite in the first place or because they produce fewer embers to spread the fire if they do burn. You can search online for fire-resistant plants native to your region to find ideas that will grow well in your climate and lower your home's fire risk.
• Remove flammable structures that have fallen into disuse, like a rotting pergola or old shed.
• Aim for at least 10 feet of space between groups of shrubs. Long, continuous rows of vegetation can become highways for fire to spread.
• Prune tree branches to a height of 15 feet above the ground. This can prevent "ladder fuels" or material that allows a brush fire on the ground to "climb" up a tree and begin spreading through a canopy.

5. Clear debris from your roof and yard regularly

Dead leaves and branches on your roof or in your gutters are a huge fire hazard, so you don't want to let this debris build up. Clear out this debris from your roof and gutters regularly.

The same goes for debris on the ground. Rake leaves and other plant debris away from your home and either pile it at the back of your yard to compost or rake it into your lawn and go over it with a mulching lawn mower so it breaks down faster.

6. Seal gaps and cracks where flames could get in

You may know about weatherstripping and sealants to insulate your home in the winter. But these same practices are just as important in the summer when fire risk is higher. Any gaps and cracks around the home that let the warm air out can let flames in if a fire breaks out.

If you haven't inspected your home lately, walk around to check for gaps and cracks in your siding, along the eaves of your house, and near windows and doors. Then, add weatherstripping as needed to windows and doors.

Don't forget your garage door when you do this. It's easy to overlook, but this is another area where flames can get in.

7. Add a battery back-up to your garage door and sprinkler system

When fires break out, power outages are often soon to follow. If your car is in your garage when that happens, you might not be able to evacuate as quickly as you need to. If the door can't be opened manually – or even if it can, but it's finicky – adding a battery back-up ensures that you can still get out quickly in an emergency.

The same is true for a sprinkler system. If you have an irrigation system in your yard, turning this on as soon as you learn of a fire in your neighborhood can help dampen any flammable plants in your yard and slow the spread of flames. So you want to know you can have those sprinklers running even if the power goes out.

8. Move small flammable objects at least five feet away from your home

Wood mulch isn't the only fire hazard you might unknowingly have next to your home. Wood planters, patio furniture, grills and other common patio or deck items can end up putting your home at risk in a fire. When you're not using them, make sure they're stored at least five feet away from the house.

For larger planters, try to design your setup so that they're further from your home. If that's not possible, make sure they can be moved further away temporarily during high fire weather.

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• DIY Home Security Upgrades That Can Lower Your Insurance Premium
• How to Save Financial Documents and Information in Case of a Storm or Wildfire
• 9 Easy Home Hardening Projects That Also Save on Insurance

Medical billing mistakes are an expensive epidemic in American healthcare.

Studies consistently show that a staggering majority of hospital invoices contain errors, ranging from double billing to miscoded procedures.

For decades, consumer advocates have given the same advice: Request an itemized statement and review the codes. But for the average patient, staring at a sheet of five-digit current procedural terminology (CPT) codes is like trying to read hieroglyphics.

Fortunately, the balance of power is shifting. Generative artificial intelligence (AI) tools such as OpenAI's ChatGPT and Google's Gemini have emerged as powerful personal finance assistants.

By feeding cryptic billing logs into these AI platforms, consumers can instantly break down complex medical jargon, verify insurance logic and pinpoint specific overcharges that human eyes routinely overlook.

The AI audit in action: A case study

To understand exactly how this works, let me share a real-world analysis related to Mohs surgery I underwent earlier this year. Upon receiving my itemized statement from my medical provider, I compared it with my insurer's explanation of benefits (EOB).

The sticker price was a dizzying $3,802, loaded with confusing five-digit codes and multiple offsetting entries, and my insurance covered just $1,390, leaving me responsible for $2,412 out-of-pocket.

That's when I turned to Gemini.

I snipped the detailed information from my bill and saved it as a PDF, keeping my personal information private. I uploaded the document to Gemini with the following prompt: Analyze this bill and tell me what the codes mean and assess whether the insurance coverage is correct.

Gemini systematically untangled each line item to explain each in easy-to-understand terms.

The AI discovery: The consultation trap

Beyond mapping codes to plain English, AI's real value lies in its ability to cross-examine billing logic against standard insurance rules. AI successfully verified that the provider was treating me as an "in-network" patient due to the presence of "Code 3000-Contractual Write-Offs" across seven distinct entries.

The AI mathematically validated that the write-offs properly reduced the gross retail price to an allowed contract amount.

But critically, AI flagged a glaring systemic discrepancy that I should inquire about, in this case an office consultation fee. AI flagged that there was a very high probability that this consultation line was being contested or denied entirely by the insurance provider.

Insurance companies generally bundle the initial evaluation into the surgical procedure if they happen on the same day, unless the doctor evaluated a separate, unrelated medical issue during that same visit.

In my situation, there was no such "consultation." I had been referred to the Mohs surgeon by my regular dermatologist after a biopsy.

Because the itemized bill split the write-offs across multiple entries for "technical" and "professional" components, it effectively masked whether the core consultation line was rejected and pushed directly onto my out-of-pocket responsibility.

After calling the provider and disputing the charge, they removed the office consultation fee of $269.

Your step-by-step guide to auditing bills with AI

If you want to put ChatGPT or Gemini to work on your medical bills, follow this strategic blueprint to ensure accuracy and protect your financial interests:

Secure an itemized bill. Don't rely on the summary invoice that simply demands a "balance due." Call the provider's billing office or log into your patient portal and request an itemized statement showing CPT codes, revenue codes and logged contractual write-offs.

Redact sensitive information. Before uploading any document or typing text into an AI model, scratch out your name, Social Security number, address and policy ID number to protect your medical privacy.

Deploy a structured audit prompt. Feed the text or a clear image of the bill into the AI. Use a direct prompt such as: "Act as an expert medical billing advocate. Decode these CPT codes, explain what procedures were done, calculate the total write-offs, and check for standard insurance logic errors."

Cross-reference with your EOB. Never pay a hospital bill until you match it against the explanation of benefits (EOB) mailed by your health insurer. If the AI identified a contested line — such as the 99243E consultation fee — verify if your insurer passed 100% of that charge onto you.

Arm yourself for the dispute. If the AI spots a bundling error or an overcharge exceeding the allowed contract threshold, call the medical provider's billing office.

If appropriate, you can ask them to apply a specific modifier to prove the consultation was distinct from the surgery, or dispute the charge entirely if no separate consultation took place. Know that mistakes can occur in coding that cause insurers to not cover otherwise covered procedures.

The bottom line

Artificial intelligence won't write a check for you, but it acts as a free, highly trained financial advocate.

Spending 10 minutes running your medical invoices through an AI model can prevent you from paying hundreds of dollars in automated administrative errors.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You've only been shopping for an hour, but as you walk up to your car in the parking lot, you're shocked to find damage to its bumper and scrapes along one side.

Someone has clearly hit your car in the parking lot, and then they drove away without leaving any contact information.

What should you do? And what insurance coverage applies if your parked car is damaged in a hit-and-run? Taking the right steps can improve your chances of finding the driver and help you navigate the insurance claims process.

What to do immediately after discovering the damage

It's important to carefully document the damage at the scene, so don't move your car. Photograph the damage and the surrounding area in the parking lot. Look for any debris or paint transfer that might help identify the vehicle that hit your car.

Check for witnesses who may have seen what happened. Many businesses have surveillance cameras in parking lots, so check with nearby businesses to see if they have cameras that might have caught the incident.

Contact the police and file an accident report to document what happened. Many insurance companies require a copy of the police report before they'll process your claim. Ask the responding officer for their name and badge number, and find out how you can obtain a copy of the report.

Should you file an insurance claim?

If you're able to identify the driver who hit your car, their liability insurance is generally responsible for paying for your vehicle's repairs. But if you can't identify the driver, the situation becomes more complicated.

Many insurers treat this type of incident as a hit-and-run. Depending on your policy, your own insurance may help cover the repair costs.

Before filing a claim, compare the estimated repair costs with your deductible. It's also worth considering that filing a claim could lead to higher insurance premiums, depending on your insurer, state and claims history.

In some cases, paying for the repairs out of pocket may make more financial sense. For example, if your deductible is $1,000 and the repairs are estimated at $1,100, filing a claim would save you only $100 before factoring in the potential impact on your premiums.

On the other hand, if your deductible is $1,000 and the damage is estimated to cost $3,000 to repair, filing a claim could substantially reduce your out-of-pocket costs.

What insurance covers a parked car hit-and-run?

Only certain types of auto insurance can help cover damage if your parked car is hit in a hit-and-run.

Collision coverage typically pays to repair your vehicle after an accident, regardless of who caused it. If you can't identify the driver who hit your parked car, you may be able to file a claim under your collision coverage, though you'll likely have to pay your deductible.

Uninsured motorist property damage (UMPD) is optional coverage in some states. Depending on where you live and the terms of your policy, it may help pay for repairs if the at-fault driver is uninsured or leaves the scene. However, not every state or insurer covers hit-and-run accidents under UMPD, so it's important to review your policy.

Liability insurance generally won't cover damage to your own vehicle. Instead, it's designed to pay for injuries or property damage you cause to others if you're at fault in an accident.

If you're concerned about the financial impact of a parking lot hit-and-run, review your policy to see whether you have collision coverage or other protections that would help pay for repairs. It's a good idea to shop around for insurance and make sure you've got the right coverage at the right price.

Use the Bankrate tool below to gather quotes and compare coverage:

Will filing a claim raise your insurance premiums?

In some cases, filing a claim after a hit-and-run parking lot accident may raise your insurance premiums. The decision depends on your insurer, state and claims history. Some insurance companies will increase your insurance premiums any time you file a claim, even if you weren't at fault.

Rate increases may be more significant if you've filed a certain number of claims within a particular period, and you might feel the effect of those rate increases for years.

Since policies vary between different insurance companies, it's a good idea to ask your insurer about their policy before you proceed with a claim.

Can security cameras help identify the driver?

Identifying the driver may help you avoid filing a claim against your own insurance coverage, saving you money on repair costs and potential insurance premium hikes. Security cameras may help you identify the driver after a car accident, so check with the store you were in to see if they have surveillance footage.

If you plan to collect security camera footage, it’s important to act quickly. Home security systems often delete footage within seven to 30 days, while commercial systems tend to maintain footage for 30 to 90 days.

Be proactive and ask for footage promptly to avoid any chance of it being deleted.

What if someone left a note?

If the driver leaves a note, it may include their contact and insurance information. You can contact their insurance company to verify the policy and begin the claims process.

You can also notify your own insurance company and provide the other driver's information. Your insurer can work directly with the at-fault driver's insurance company to seek payment for your vehicle's repairs.

How to reduce the chances of future parking lot damage

How and where you park may reduce the chance of your vehicle being damaged in a parking lot. Make sure your vehicle is always fully within the painted lines and try to avoid parking in the high-traffic areas that are closest to the store.

If you have a vehicle with large side mirrors, fold the mirrors in when you park to help prevent collisions. You can reduce the chance of someone hitting your vehicle by parking next to a curb or cart return so there's only room for one vehicle to park directly next to you. When parking at night, choose a well-lit area of the parking lot to ensure your vehicle is easily visible.

You may also want to invest in a dash cam with a parking mode for your vehicle. These cameras automatically start recording if they detect motion or impact to your vehicle, hopefully capturing footage of the other vehicle that damages your car.

No one expects to return to a damaged car, but knowing what to do can make the situation easier to navigate. Reviewing your auto insurance coverage, parking strategically and understanding the claims process can help you protect both your finances and your vehicle.

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I came across a video recently from personal injury attorney Mike Rafi that laid out one of the most blatant insurance fraud schemes I can remember seeing — minus the guy dressed in a gorilla suit tearing up a car.

It's called Operation Sideswipe, and if you're wondering why, at least in part, your insurance premiums keep going up, this case is a pretty good place to start.

Here's what happened. Going back as far as 2011, a network of people called "slammers" would intentionally crash their vehicles into 18-wheelers. These were not accidents, you see. They were staged collisions, choreographed to make it look like the truck driver was at fault. The truck drivers had no idea this was happening.

After the impact, the passengers in the slammer's car would claim they'd been injured. Then a group of corrupt personal injury lawyers would file claims, push for settlements and cash out.

Why the insurance companies would pay

The trucking companies and their insurers would pay up, because settling was less expensive than fighting every single case in court.

And it went deeper than that. Like six-feet-under deeper. In 2020, a federal witness who was secretly cooperating with the FBI was shot 10 times on his mother's doorstep just four days after his indictment was made public.

The person who allegedly paid for the hit was a disbarred attorney living in a $1.2 million home with a former Hollywood stuntwoman.

All this reads like a novel you might buy at an airport bookstore. However, by the time federal authorities finally got the case under control, 63 people had been charged, and a key witness was dead.

This went on for years. And here's the part that affects you: Every one of those fraudulent claims got paid:

• Every inflated medical bill
• Every bogus lawsuit settlement
• Every fake injury claim

That's how insurance works

The insurance companies paid it all. And when insurance companies pay out billions in fraud, they don't just absorb the loss. They raise rates.

That's not greed. That's math. That's how insurance works.

The money has to come from somewhere, and it comes from you. From me. From every honest driver who has never filed a fraudulent claim in their life.

You pay your premium every month, on time, year after year. You've never caused an accident. You've never exaggerated a claim. And yet, your rates will go up partly because a ring of crooks in New Orleans intentionally crashed cars into trucks and walked away with settlement money.

The fraud gets baked into the system. The insurers raise prices to cover the losses, and the cost spreads across the entire risk pool. You end up paying the bill for somebody else's crime.

Just imagine what we don't even know about

Now, here's the thing. Operation Sideswipe is a case we know about. But I want you to think about what I call the coconut theory.

If you're sitting on an island, and a coconut falls on your head, the chances are there are lots of coconuts falling all around that island. You were hit with just this one.

We learned about this one massive scheme because it got big enough to attract federal attention. But that means — and think about this — there are many similar scams, or even larger ones, happening all over the place that we don't know about.

Smaller operations. Individual fraudsters. Staged accidents in cities across the country that never make the news.

And I'll bet Operation Sideswipe is not the first insurance fraud case you've heard about, so plenty do make the news. Each one is a coconut hitting the insurance system, and each one costs all of us money.

If one scheme in one city involved 63 people and went on for years, how many are running right now that haven't been caught? How many fraudulent claims are being paid today that will never be investigated?

Every one of those payments ends up as part of the rate calculations that determine what you and I pay for coverage.

Insurance fraud is not a victimless crime. It's a tax on every honest driver in the country, collected one premium increase at a time.

What you can do

So what can you actually do about it? How can you help put an end to this insanity? A few things.

1. After an accident, the single most important thing you can do is document everything.

I mean everything. Not most things. Getting the hint? Everything with a capital E.

Take out your phone and take pictures and/or record video of every angle of:

• Both vehicles
• The road conditions
• The traffic signs
• The weather
• The license plates
• The other driver
• Their insurance card
• Any debris on the road
• The positions of the vehicles before they get moved

Take more pictures than you think you need. You can never go back and take the ones you missed.

2. Walk around the scene, too, recording video.

Capture the other driver's demeanor.

• Are they limping?
• Are they on the phone with someone who seems to be coaching them?
• Is there a passenger who's silent at the scene but could later claim they were thrown forward and hurt?

Record all of it. Your phone's camera is the best witness you will ever have. It doesn't forget. It doesn't get intimidated. It doesn't change its story three months from now.

3. Open the Notes app on your phone and list every detail.

• The time
• The exact location
• Which lane you were in
• What the other driver said — word for word
• The names of any witnesses
• The badge numbers of responding officers

Also, note anything that seems unusual:

• A passenger who is jumping around and yelling at the scene (they could claim later to have a broken leg)
• A driver who seems oddly calm for someone who just got rear-ended
• A car that pulls up and someone gets out who wasn't involved in the crash

Write it all down. Three months from now, when the claims adjuster asks you about the details, you might not remember, but your notes will.

Why you can't just trust the system

Is it unfortunate that we have to be this diligent? Heck, yeah. Absolutely. It would be nice to just exchange insurance information, shake hands and trust the system. But the system is being abused, and we're all paying the price, literally.

Operation Sideswipe worked because there was no evidence to contradict the fraudsters. The slammers and their passengers could say whatever they wanted, and without contradicting evidence, the system believed them.

The only reason the scam finally got exposed was that federal investigators spent years building a case with resources you and I don't have.

What we do have is a phone in our pocket that takes pictures, records video and lets us type notes.

• Every picture you take is evidence
• Every video clip is a record
• Every note you write is a real account that carries weight in a way that a vague recollection months later can't

Your evidence can help protect you from being accused of causing something you didn't cause. And it's what helps your insurance company pay the honest claims quickly and fight the fraudulent ones.

Insurance fraud costs every single one of us, every single year, in higher premiums. The best defense we have isn't law enforcement.

It's you, at the scene, with your phone out, paying attention.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Medicare premiums are set to rise again for 2027. The latest Social Security and Medicare Trustees Report (page 207) estimates that Part B premiums will climb 3.5% in 2027, reaching $209.50 per month, up $6.60 from 2026. While another price hike is never good news for retirees, the increase is a relief compared to the almost 10% spike experienced in 2026.

Unlike Part B, Medicare Part D is sold through private insurance companies, either as a standalone drug plan alongside traditional Medicare or as part of a Medicare Advantage policy.

Because individual plan costs vary, the average premium enrollees pay is typically lower than the base beneficiary premium. According to the latest Trustees Report, the Part D base premium is projected to reach $41.33 per month in 2027.

Medicare Part B premiums in 2027

Medicare Part B pays for doctor visits, outpatient care and some home healthcare. When enrolled, you pay both a deductible and a monthly premium. For 2027, the premium is currently projected to rise 3.5% to $209.50, up $6.60 from $202.90 in 2025.

The Part B deductible is projected to reach $292 in 2027, a $9.00 increase from $283.00 in the previous year. On a percentage basis, it's an increase of 3.2%, in line with the estimated increase of the Part B premium.

The projected Part B increase impact on Social Security benefits

The 2027 Social Security COLA is projected to rise 3.8%, after accounting for the June CPI. In terms of dollars, if implemented now, that would translate into an increase of $79.14 per month or $949.68 per year, when using the average Social Security check amount for May 2026 ($2,082.76) as the base amount.

The Social Security Administration (SSA) automatically deducts the Part B premium cost from the Social Security benefits of most Medicare recipients. For 2027, the average Social Security check would fall from $79.14 to $72.54, subtracting the projected Part B increase ($6.60) from the projected COLA raise (79.14). In that scenario, the Part B increase would consume approximately 8.3% of the monthly increase.

Understanding Medicare Part D premiums

Unlike Part B, there isn't a single "standard" Part D premium, as it varies by plan. The Centers for Medicare & Medicaid Services (CMS) establishes a standardized base premium amount used to calculate late enrollment penalties and to determine Part D IRMAA surcharges. For 2027, the base premium is $41.33.

Most final premium and deductible amounts won't be announced until late October or early November; however, most of the Part D amounts have been finalized.

Annual deductible: The standard Part D deductible will increase to $700 in 2027, up from $615 in 2026. That's a steeper increase than in 2026, when the deductible rose to $615 from $590 in 2025, a $25 increase.

Out-of-pocket spending cap: On a positive note for 2027, Medicare Part D's annual out-of-pocket prescription cap will rise to $2,400, up $300 from the $2,100 limit in 2026. Once beneficiaries reach this cap, they no longer pay out-of-pocket costs for covered prescription drugs for the rest of the year.

Premium protections and stabilization: To shield enrollees from steep rate hikes, the premium stabilization provision of the Inflation Reduction Act (IRA) caps annual base beneficiary premium (BBP) growth at 6% yearly through 2029, while limiting how much extra cost plan sponsors can pass along.

While an IRA demonstration program previously stabilized average monthly premiums, CMS scaled back that support in 2026, stating in a memo that reducing federal subsidies is meant to help the Part D program "return to operating under regular market conditions."

Full table

Below you will find the projected deductible, premiums and coinsurance amounts for Part A and Part B. The Part D amounts are final.

*The 2027 Part D base premium, deductible and maximum out-of-pocket limit have been finalized. These numbers are not estimates.

The value of tracking the projected premiums

Medicare open enrollment runs from October 15 to December 7 annually. During this period, you can switch from original Medicare to a Medicare Advantage plan, or vice versa. You can also choose a new Advantage plan or Medicare Part D prescription drug coverage.

To get the most from your plan, it’s important to understand your out-of-pocket costs for premiums, which will vary depending on your plan and income. For instance, you could also owe a monthly surcharge on Medicare Part B and Part D premiums based on an income-related monthly adjustment amount (IRMAA).

Your IRMAA liability for 2027 will be based on the MAGI shown on your 2025 return. While you can't do anything to change your 2025 tax return, you can look over your finances to see if you are in danger of paying the IRMAA in 2028, which will be based on your yet-to-be-filed 2026 tax return.

Income planning can go a long way in limiting your exposure to the surcharge. For instance, a well-timed Roth conversion can reduce your taxable income and eliminate required minimum distributions (RMDs).

Projections for Medicare Part B 2026 are primarily derived from the annual Medicare Trustees Report. While the final figures are usually announced by CMS in November of the preceding year (so, November 2026 for 2027 premiums), the Trustees Report provides strong estimates. The Part D base premium, deductible and out-of-pocket maximum for 2027 have been finalized and are reflected in our tables.

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My father was a general agent at Manulife when he was diagnosed with a rare neurological disease at 56. The disease progressed slowly, gradually taking his ability to write, then to speak. I attended his client meetings, became his hands and eventually his voice.

Because he had disability insurance, my family never had to worry about money during the most difficult years of our lives. That is the story I carry into every client conversation.

Campaigns like Disability Insurance Awareness Month serve as a useful reminder of when and how to introduce disability planning into client conversations. Of course, individual situations and outcomes vary, but that's exactly why I believe so strongly in having this conversation early.

The right time to broach the subject is before a client thinks they need it. Most people have never been seriously asked what would happen to their income if they couldn't work. The longer that question goes unasked, the harder it becomes to answer without a crisis forcing the issue.

The common objection — "it won't happen to me" — is best met with storytelling rather than hard data. My father's story often opens the door to a more personal question: "What's your plan if something happens to you?"

The role of disability insurance in a financial plan

Disability insurance is typically framed as income replacement — a safety net in case you can't work. That framing tends to undersell its value. For high earners, it's something more fundamental: The protection that keeps everything else in a financial plan intact.

For illustrative purposes, consider a scenario where a client earning $1 million a year becomes disabled. Their group plan has a hard cap at $10,000 a month, which protects only $120,000 of their annual income. Meanwhile, the market is down.

With no individual disability policy, they can draw down the retirement portfolio they spent decades building, or dramatically alter the lifestyle they planned around. Without disability protection, their financial plan is exposed.

Think of disability insurance as a lever. When you're disabled and not generating income, everything else in the plan — investment accounts, college savings, a family's lifestyle — depends on that lever holding up. If it fails, the plan may fail with it.

Disability insurance policy features

Once a client is ready to consider buying disability insurance, the conversation moves to policy mechanics.

The elimination period is the waiting period before benefits begin, typically 90 or 180 days. Ninety days is generally the right balance of cost and coverage, whereas 180 days is too long for many clients. Existing short-term group coverage can help determine which is appropriate.

The own-occupation definition matters most for professionals whose work is highly specialized. A dentist who develops chronic back problems from years of leaning over patients may never return to dentistry, but could technically work in another field.

Without own-occupation coverage, that dentist may receive no benefits. With it, they may be better protected, depending on policy terms.

The recovery provision is the least understood and can be particularly valuable in certain situations. When a recently disabled client returns to work but earns less than they did before, this provision bridges the income gap.

For commission-based professionals and business owners, the income rebuilding period can be just as financially damaging as the disability itself. A financial adviser who goes on claim for a year and returns with an empty pipeline may need six to 12 months to rebuild.

The recovery provision fills that period. Some carriers cap it at one year, while others extend it for the full benefit period.

Disability insurance vs business overhead expense insurance

Disability income insurance protects a business owner's personal income. Business overhead expense (BOE) coverage protects the operating costs of the business itself — rent, staff salaries, equipment, administrative expenses — while the owner is unable to generate revenue.

Most advisers can walk a client through this distinction without hesitation. The harder conversation, and often the one that hits closest to home, is the one they need to have with themselves.

Many advisers own their practice but do not have BOE coverage. They are, by definition, business owners, and every adviser who has committed to office overheads, support staff or an independent practice structure carries the same risk exposure as any other self-employed professional.

When a disability sidelines the person responsible for bringing in revenue, the fixed costs of the business don't pause. BOE coverage ensures those obligations are met and the business remains intact while the owner recovers.

Most policies have a maximum benefit period of two years, may be tax-deductible in certain circumstances, and are relatively affordable, particularly compared to the exposure they offset.

BOE coverage also changes the psychology of recovery. An adviser who has suffered a serious illness or injury faces enormous pressure to return to client-facing work before they're ready, knowing that every day out is a day the business is stalling.

A BOE policy removes that pressure. It makes it possible to focus on getting well, and to keep the promises made to clients in the process.

The importance of planning ahead

Disability planning has to happen before the diagnosis. Once a serious illness or injury happens, cognitive function is affected, decision-making is harder, and the ability to evaluate options clearly is compromised. The coverage, policy details and business overhead protection should all be in place before they're needed.

Disability doesn't discriminate by age, fitness or risk profile. It can happen across a wide range of individuals and circumstances, and is most likely to occur during the long window of working years, when income is highest, obligations are greatest and the financial consequences of losing that income are most severe.

The advisers who serve their clients well on this are the ones who treat disability coverage as a standard part of every financial plan.

This article is intended for informational purposes only and does not constitute financial, insurance, or tax advice. Individuals should consult their own qualified professionals to evaluate their specific circumstances before making decisions.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As of this week, e-bike riders in New Jersey will need to register their bikes, have driver's licenses and, for some bike types, get insurance. Essentially, your e-bike is going to be regulated a lot more like a car or motorcycle.

If you've been using your e-bike as a way to save on transportation or give your kid a way to get around town before they're old enough to get a driver's license, these new regulations might seem like a hassle. But the changes come in response to a spike in e-bike related accidents in the state.

The new law aims to make riders safer and better protected on the road. Though, some advocacy groups argue that the New Jersey law is too restrictive and unfairly lumps lower speed e-bikes in with their higher speed counterparts. Whether you like the new laws or not, here's what you need to know before you head out for your next e-bike ride in New Jersey.

What e-bike riders need to know about the New Jersey law

With the new law in effect, a few things have changed for e-bike riders. Here are the most important changes:

• Any motorized bike, including pedal-assisted models and those with throttles will now need to be registered and riders will need a driver's license, an e-bike license or an e-bike permit to ride it.
• If your e-bike can reach speeds higher than 20 mph, you also need to get insurance in addition to following the license and registration requirements.
• If your e-bike can reach speeds higher than 28 mph, New Jersey now regulates it like a motorcycle — meaning you'll need a motorcycle license or an "M" endorsement added to your driver's license. You'll also need to meet the minimum insurance requirements for motorcycles, rather than the requirements for e-bikes.

If you already have a driver's license, you don't need an additional license for the e-bike. But you do need to carry your license along with registration and proof of insurance while riding.

If you don't have a driver's license, you can apply for an e-bike license or e-bike permit. This involves passing a knowledge test and scheduling a road test, similar to the process for getting a standard Class C driver's license.

If your driver's license was suspended or revoked and you were using an e-bike as an alternative form of transportation, you can no longer do that. You'll need to switch to public transit or a non-motorized bike.

How to get e-bike insurance

New Jersey's Department of Insurance is still working with insurance companies to finalize a list of approved e-bike insurance providers. In the meantime, the minimum coverage requirements you'll need to meet are as follows:

• Bodily injury liability: $15,000 per person/$30,000 per accident
• Property damage liability: $5,000
• Policies also need to have personal injury protection (PIP) for pedestrians.

Right now, the liability coverage in a standard home or car insurance policy wouldn't cover you on an e-bike. So, you'll either need to add e-bike coverage onto one of your existing policies or buy standalone e-bike insurance that meets the minimum requirements above.

Fortunately, standalone e-bike insurance is likely to be pretty affordable. A liability-only policy can cost as little as $75 per year, according to Progressive, which already offers e-bike insurance.

But, like car insurance, some providers may also offer full coverage policies. Given how expensive e-bikes can be, getting collision or comprehensive insurance to ensure you'll have the cash to replace your ride if it's damaged can be worth it — especially if it's become your primary mode of transportation.

Meanwhile, some insurers allow you to bundle limited forms of e-bike protection into your existing policies.

Lemonade, for example, would already cover your bike against theft or certain types of damage under a typical home or renter's insurance policy. But the company also allows riders to add an extra coverage rider to their policy that would act similarly to collision insurance. The company doesn't appear to offer liability coverage for e-bikes similar to what New Jersey now requires.

Since it's still a relatively new insurance product, not all providers offer it or offer versions that would comply with the New Jersey law. But it's still a good idea to start your search by getting a quote from your current insurer for either car or home insurance. If either of them offers e-bike insurance, you might be able to take advantage of bundling discounts.

Use the tool below, powered by Bankrate, to compare quotes:

Other states might soon follow New Jersey's lead

At least three other states have proposed similar registration and insurance requirements for e-bikes, according to People for Bikes, a nationwide advocacy group focused on improving cycling-related infrastructure and policy. That includes the garden state's neighbor, New York as well as California and New Hampshire.

So far, no other state has implemented insurance requirements like New Jersey has, but Hawaii does require e-bikes to be registered and many states have minimum age requirements for Class 3 e-bikes (defined by most states as bikes that can go faster than 20 mph).

As e-bikes gain in popularity, riders should keep an eye out for changing laws in their state.

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