Month: September 2020

2020-09-08T23:01:00

(BPT) – No one has escaped the effects of the pandemic, but working parents are struggling. Staring down a lack of childcare, new work-from-home situations, and insufficient support from employers or public resources, these individuals are nearing the end of their rope emotionally, and for many, financially. The start of the school year further complicates matters as parents grapple with difficult decisions and limited options due to school policies or their own financial and employment constraints. While parents navigate this fraught period for their families and bank accounts, the country must understand three things: Where parents stand now, what they need from their employers in the future, and what can be done in the meantime to find relative peace and security.

Where Parents Stand

According to Prudential’s Financial Wellness Census, over half of Americans said their financial health was negatively impacted following the outbreak of the pandemic. For Millennials and Gen X, many of whom are parents of school-aged children, more than one in five households saw their income fall by half or more. It is no surprise, then, that 58 percent of caregivers, a group which includes parents, are currently concerned for their financial futures. Working parents today are scared and depleted. Doing their jobs at home while simultaneously managing their children’s health, entertainment and education all day, parents have been juggling at least two full-time jobs since March. On top of that stress, their changed financial situations have led to higher stakes and fewer solutions when it comes to education and care as the school year begins.

What Parents Want

In the midst of a financial crisis, the Financial Wellness Census found that Americans turn first to the federal government for help, followed closely by family and friends. Only 14 percent sought financial assistance from employers during this time, but results concerning employees’ feelings about benefits reveal how workplaces can evolve to provide parents with greater support. The statistics are particularly telling for women, who typically carry a disproportionate amount of household childcare responsibilities. In fact, 43 percent of women want more flexible work options compared to only 29 percent of men. “Flexible work options” means the freedom to work remotely or at nontraditional hours of the day, but for parents it means being present for their children at bedtime and making their kids’ lunch without anxiously checking work emails. Less constraining expectations around working hours can even open up the possibility of homeschooling for high-risk families who cannot afford private tutors.

What They Can Do Now

Times are hard and deep systemic problems can slow needed changes. In the meantime, Amanda Clayman, financial therapist and Prudential’s Financial Wellness Advocate, is guiding parents. “As parents in a state of fear and exhaustion, processing reality is difficult, which puts us at risk of reacting (often financially) instead of thoughtfully responding to our situation,” says Clayman. “I recommend slowing down and asking yourself: What are the facts? What aspects of this situation do I control? And what is outside my control?” From there, Clayman encourages parents to find a best-fit solution for their family within their financial means. “Be open to giving up the idea of a feel-good decision and remember your family solution will look different from your peers,” she says. Try looking to community resources for support and solace. No path forward is perfect in a pandemic, but by regularly tuning in to personal priorities, leaning on their communities, and reminding themselves of their emotional and financial adaptability, families can find avenues for support.

Working parents have responded to financial and situational setbacks with creativity and courage this year. Their efforts have kept them afloat, but they are tired. As these parents look to the future, workplaces can help by offering environments, benefits and scheduling options that allow their employees — and their employees’ children — to thrive. Until then, keeping a firm grasp on their emotional and financial reality, being gentle with themselves, and taking pride in their flexibility will keep working parents going.

2020-09-08T08:31:00

(BPT) – Are you one of the 48% of adults who says they or someone in their household has postponed or skipped medical care due to the COVID-19 pandemic?¹ If so, you may not have yet taken full advantage of your insurance benefits this year.

Taking care of yourself is a critical component of maintaining health and balance in your life. And with safety at the forefront of their practices, many medical professionals are operating their offices with added precautions, meaning the time is right to schedule that overdue appointment.

While we’re all eager to bid adieu to 2020, don’t forget to take advantage of your workplace benefits before they reset in 2021. These are five typical ways you can make the most of your available benefits during this unique time:

1. Schedule annual checkups with all doctors.

This year has been anything but routine, but don’t let that be an excuse to skip your annual health screenings. These include your primary care doctor, optometrist, dentist, dermatologist, gynecologist, etc. Health insurance typically covers in-network preventative care services like cancer screenings, immunizations, blood pressure monitoring and cholesterol checks. Not comfortable going in person? Telehealth services may be right for you to still receive care from your home.

With flu season approaching, there are concerns regarding the overlap of COVID-19 and influenza, and most health insurance plans cover getting a flu shot. The Centers for Disease Control and Prevention recommends getting a flu vaccination in September or October,² so check with your doctor to learn more.

2. File a claim for your wellness benefit.

Supplemental insurance policies like accident and cancer insurance may include a wellness benefit that pays cash for things like a COVID-19 screening, annual physical, dental or eye exam, mammogram, prostate screening, immunization and more. You can even file a claim for this type of benefit if your health insurance already covers it.

3. Get help with emotional health.

According to the 2020-2021 Aflac WorkForces Report, 59% of employees have experienced burnout due to work. Employee assistance programs, or EAPs, provide support services for a full range of personal, family and work/life issues such as financial counseling or emotional health challenges — like feeling anxious or lonely working from home due to the pandemic. Referrals for family care, elder care and child care, as well as support for financial and legal issues, may be included in an EAP, too.

4. Take advantage of HSA tax benefits.

A health savings account, or HSA, allows employees with a high-deductible health plan to set aside money to pay for qualified medical expenses. Because they’re tax-deductible, HSA contributions help save money, and there are no time limits for when you have to spend it. The 2020 maximum contribution amounts are $3,550 for individuals and $7,100 for families,⁴ and individual account holders age 55 or older also have an opportunity to make an additional annual contribution of $1,000 in 2020.⁵

5. Closely monitor your FSA.

If you have a flexible spending account, or FSA, your plan may allow you to roll over up to $500 of remaining funds into 2021, but you’ll lose any amount exceeding that — even though you paid for it. In some cases, an FSA account may also provide a grace period of 2.5 months at the start of the new year for account holders to use the remaining money in their FSA.⁶ Either way, be sure to submit receipts to get reimbursement for eligible purchases.

Despite its challenges, 2020 has reinforced the truth behind the expression “health is wealth.” So, whether you don a mask and go to the doctor in person or use a smartphone for telehealth, prioritize self-care and make full use of the benefits you’re already paying for.

¹ KFF Health Tracking Poll – May 2020 – Health and Economic Impacts. Accessed Sept. 3, 2020.

² Centers for Disease Control and Prevention, National Center for Immunization and Respiratory Diseases (NCIRD). Accessed Sept. 3, 2020, https://www.cdc.gov/flu/season/index.html.

³ The 2020-2021 Aflac WorkForces Report is the 10th annual study examining benefits trends and attitudes. The surveys, conducted by Kantar, captured responses from 1,200 employers and 2,000 employees across the United States in various industries. Learn more at Aflac.com/AWR.

⁴ HealthCare.gov, Health Savings Account (HSA). Accessed Sept. 3, 2020, https://www.healthcare.gov/glossary/health-savings-account-hsa/.

⁵ Forbes, IRS Announces 2021 Health Savings Account Contribution Limits, Still Time To Make 2019 And 2020 HSA Contributions. Accessed Sept. 3, 2020, https://www.forbes.com/sites/ashleaebeling/2020/05/20/irs-announces-2021-health-savings-account-contribution-limits/#234f35686875.

⁶ HealthCare.gov, Using a Flexible Spending Account (FSA). Accessed Sept. 3, 2020, https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/#:~:text=You%20generally%20must%20use%20the,use%20in%20the%20following%20year.

This article is for informational purposes only and is not a solicitation for insurance. Aflac includes Aflac and/or Aflac New York.

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2020-09-08T06:01:00

(BPT) – Many of life’s interruptions can’t be predicted. Not having funds set aside for unexpected problems can leave you racking up high credit card debt or putting yourself in other difficult financial straits.

“When it comes to savings best practices, it is especially clear after the pandemic how valuable an emergency savings fund can become at a moment’s notice,” said Jaspreet Chawla, Senior Vice President of Savings Products at Navy Federal Credit Union. “Here are some tips that might help you kick start your emergency savings.”

Here’s how to create an emergency fund to protect your finances.

1. Do the math; set a goal.

If your first instinct is to save an enormous sum that will cover all expenses for many months, think again. While financial experts recommend having between three and six months of living expenses in an emergency fund, this number might not be realistic if you’re just beginning to save. It’s often a good idea to start with a smaller goal — $500 or $1,000. Then, as you get into the habit of saving, you can slowly start to raise your future goals until you reach the three-to six-month threshold.

2. Decide where to put the funds.

The money in your emergency fund should be kept separate from accounts you use for paying bills or making purchases and be easily accessible when an emergency arises. Using just one account may make it far too easy to “borrow” from your emergency fund for non-essential items. Instead, place your emergency funds into an interest-bearing account that’s specifically designated for this purpose. Good options include a savings account or money market account. Either can be easily accessed without penalties and allow your money to grow.

3. Get creative and save.

Building an emergency fund means you’ll need to trim spending elsewhere. Quick fixes like evaluating your cell phone plan, cutting the cord on cable or bringing your lunch to work can help free up money for savings. Or think bigger, like refinancing your home or car. Use a refinance calculator to see whether a new loan will save you money.

4. Save unexpected windfalls.

You can boost the balance of your emergency fund when you least expect it with “found” money. Invest birthday or holiday cash gifts, work bonuses and tax refunds directly into your account and see how quickly you can reach your emergency fund goal. Since this money isn’t part of your typical spending, it’s easy to use it for saving without missing it.

5. Make saving automatic.

We all know that saving money for the unexpected is a good idea, but it’s easy to delay in favor of more pressing concerns. Treat your emergency fund like any other monthly recurring bill and have funds directly deposited into your savings account each month. You’ll be less likely to miss the money and can sleep easy knowing you have a safety net when life interruptions occur.

“We always try to emphasize the importance of savings and financial security, and we want to be a resource for our members when it comes to prepping for financial emergencies,” Chawla continued. “An emergency fund isn’t a luxury; it’s an important way to protect the things that matter most to you. I encourage you to talk to a financial institution you can trust, and get started saving as soon as you can.”

2020-09-04T18:55:00

(BPT) – Many people around the U.S. are relying on unemployment insurance assistance as the country battles the pandemic and associated economic effects. As unemployment has risen, fraudsters have been targeting consumers to steal unemployment insurance benefits. They do this by taking personally identifiable information (PII) that cybercriminals have posted on the dark web, stolen from unsuspecting consumers or gained from past data breaches.

Once fraudsters have this information, which can include a victim’s name, address, Social Security number and driver license number, they falsely apply to a state’s unemployment insurance program to register for unemployment insurance benefits. These benefits are typically distributed via direct deposit or prepaid debit cards for those without bank accounts. Once a fraudster has access to the stolen funds, they can use a prepaid payment account service and its mobile app to cash out or make purchases — in-store or online — for items like gift cards, electronics, cryptocurrency, money orders, and money transfers.

“We’ve seen a significant increase in fraudulent purchases in July, related to unemployment insurance fraud schemes,” said Michael Lemberger, senior vice president and regional risk officer for North America at Visa. “Fraudsters are actively targeting state unemployment insurance programs hoping to find gaps. This problem requires a collective effort with everyone doing their part, including the state workforce agencies, law enforcement, financial institutions, payment processors and payment networks. Consumers must be on-guard for suspicious activities so fraudsters cannot exploit their identity for financial gain.”

The warning signs for these crimes can be tough to spot, but here are common red flags to look out for:

1) Offers from people or organizations you don’t recognize promising early and faster unemployment insurance benefit payments.

2) Solicitations from people you don’t know offering money in exchange for your personal information.

3) Letters or email correspondence indicating new accounts or unemployment insurance benefits have been initiated in your name.

To avoid your personal information from being used for fraud, Visa recommends the following to protect yourself:

• Proactively register for an unemployment insurance account directly through your state’s website. This way, if anyone tries to steal your information, state authorities will notify you as soon as possible and prevent your money from getting stolen.
• Secure your personal information — online and offline. Use online tools to encrypt and lock down sensitive digital information, such as your financial and health documents. For physical documents with your personal and financial information, make sure they’re locked in a secure spot and safely shred any documents you don’t need.
• Be mindful of social media and email scams. If it seems too good to be true, it probably is. Fraudsters will try to convince you that you can get your benefits sooner, you may be eligible for more benefits, or a person you don’t know needs help with their unemployment insurance payments.
• Just like our physical hygiene is crucial right now, so is our cyber hygiene. Don’t click on links or attachments from email addresses and people you don’t recognize or offers you didn’t ask for.
• And, last but not least, your information is valuable so keep your personal information to yourself. Never share your personal information unless there is a legitimate reason to do so.

If the worst-case scenario happens and a fraudster gets hold of your personally identifiable information to commit unemployment insurance fraud, there are steps Visa recommends you take, including:

• Contact the three primary credit bureaus, Equifax, Experian and TransUnion.
• Contact your respective financial institution.
• Contact your state unemployment office.
• Visit IdentityTheft.gov to report the fraud to the FTC and get help with important next steps for recovery.
• Review your credit reports often.

Cybercriminals are continuing to up their game, but if people take the necessary precautions and remain on the lookout for anything suspicious, these fraud attempts will become much less successful and frequent.