What is the Health Insurance Marketplace?

The Marketplace is a new way to find quality health coverage. It can help if you don’t have coverage now or if you have it but want to look at other options.

With one Marketplace application, you can learn if you can get lower costs based on your income, compare your coverage options side-by-side, and enroll.

What you'll learn when you apply in the Health Insurance Marketplace

When you use the Health Insurance Marketplace, you'll fill out an application and see all the health plans available in your area. You'll provide some information about your household size and income to find out if you can get lower costs on your monthly premiums for private insurance plans. You'll learn if you qualify for lower out-of-pocket costs.

The Marketplace will also tell you if you qualify for free or low-cost coverage available through Medicaid or the Children's Health Insurance Program (CHIP).

Most Americans will be eligible to use the Marketplace. Learn more about Marketplace eligibility.

The Health Insurance Marketplace is sometimes known as the health insurance "exchange."

Apply online, by mail, or in-person

You can apply for Marketplace coverage three ways: online, by mail, or in-person with the help of a Navigator or other qualified helper. Telephone help and online chat are available 24/7 to help you complete your application. Downloadable and paper applications will be available October 1.

Open enrollment starts October 1, 2013. Plans and prices will be available then. Coverage starts as soon as January 1, 2014. Open enrollment ends March 31, 2014.

Learn about your options if you need coverage that begins before January 1, 2014.

What plans in the Marketplace cover

Insurance plans in the Marketplace are offered by private companies. They cover the same core set of benefits called essential health benefits. No plan can turn you away or charge you more because you have an illness or medical condition. They must cover treatments for these conditions. Plans can't charge women more than men for the same plan. Manypreventive services are covered at no cost to you.

Learn who runs the Marketplace in your state

While all insurance plans are offered by private companies, the Marketplace is run by either your state or the federal government. Find out who runs the Marketplace in your state by using the menu at the bottom of this page. If your state runs its Marketplace, you'll use your state’s website, not this one.

How the Marketplace presents plan information

The Marketplace simplifies your search for health coverage by gathering the options available in your area in one place. You can compare plans based on price, benefits, and other features important to you before you make a choice. Plans will be presented in four categories – bronze, silver, gold, and platinum – to make comparing them easier.

In the Marketplace, information about prices and benefits will be written in simple language. You get a clear picture of what premiums you'd pay and what benefits and protections you'd get before you enroll. Compare plans based on what's important to you, and choose the combination of price and coverage that fits your needs and budget.

Learn more about the Marketplace, and visit the page where the application will start on October 1, 2013.

Questions? Call 1-800-318-2596, 24 hours a day, 7 days a week. (TTY: 1-855-889-4325)

1035 Exchange for Replacing an Annuity or Life Insurance Policy

The replacement of an annuity or life insurance policy; i.e. the exchange of existing policies for new ones purchased from different companies without tax consequences, is called a Section 1035 Exchange. To retain the tax advantages of such an exchange, it must meet the requirements of Section 1035 of the Internal Revenue Code for the transaction to be tax-free. A 1035 Exchange allows the contract owner to exchange outdated contracts for more current and efficient contracts, while preserving the original policy's tax basis and deferring recognition of gain for federal income tax purposes.

Reasons for Using a 1035 Exchange:

• To avoid current income taxation on the gain in the "old" contract.
  Generally, the surrender of an existing insurance contract is a taxable event since the contract owner must recognize any gain on the "old" contract as current income. However, under IRC Section 1035 when one insurance, endowment, or annuity contract is exchanged for another, the transfer will be nontaxable, provided certain requirements are met. The IRS has indicated through Private Letter Rulings that it will apply a strict interpretation to the rules. For a transaction to qualify as a 1035 Exchange, the "old" contract must actually be exchanged for a "new" contract. It is not sufficient for the policyholder to receive a check and apply the proceeds to the purchase of a new contract. The exchange must take place between the two insurance companies.
• To preserve the adjusted basis of the "old" policy.
  Preserving the adjusted basis is preferable in situations in which the "old" contract currently has a "loss" because its adjusted basis is more than its current cash value. The adjusted basis is essentially the total gross premiums paid less any dividends or partial surrenders received. This basis carryover is important when the owner has a high cost basis in the "old" contract. For example, Jane Smith has a Whole Life policy she purchased 15 years ago. She paid $1,000 annual premium for the last 15 years and has received $5,000 in policy dividends. The policy currently has $6,000 in cash value. Jane's cost basis is $10,000 (15 x $1,000 less $5,000 dividends.) If Jane did not exchange the "old" policy for the "new" one, but rather surrendered it and purchased the "new" policy with the $6,000 surrender value, she would only have a $6,000 basis in the "new" policy. If, however, she exchanges the "old" policy, she will preserve the $10,000 cost basis.

Requirements & Guidelines

The owner and insured, or annuitant, on the "new" contract must be the same as under the "old" contract. However, changes in ownership may occur after the exchange is completed. The contracts involved must be life insurance, endowment, or annuity contracts issued by a life insurance company. These are the types of exchanges which are permitted: from an "old" life insurance contract to a "new" life insurance contract; from an "old" life insurance contract to a "new" annuity; from an "old" endowment contract to a "new" annuity contract; and from an "old" annuity contract to a "new" annuity contract. (Note: An "old" Annuity contract cannot be exchanged for a "new" life insurance contract.)

Two or more "old" contracts can be exchanged for one "new" contract. No limit is imposed on the number of contracts that can be exchanged for one contract. However, all contracts exchanged must be on the same insured and have the same owner. The adjusted basis of the "new" contract is the total adjusted basis of all contracts exchanged. The death benefit for the "new" contract may be less than that of the exchanged contract, provided that all other requirements are met. Face amount decreases within the first seven years of an exchanged may result in MEC status. When the face amount is reduced in the first seven years, the seven-pay test for MEC determination is recalculated based upon the lower face amount.

Under current tax law, contracts exchanged must relate to the same insured. Any addition or removal of insureds on the "new" contract violates a strict interpretation of the regulations. For example, you cannot exchange a single-life contract for a last-to-die contract or vice versa. Under certain circumstances you may exchange a contract with an outstanding loan for a "new" contract. This depends on the guidelines followed by the insurance company with whom the "new" contract is to be taken out. One possibility would be for the loan to be canceled at the time of the exchange. If there is a gain in the contract, cancellation of the loan on the "old" policy is considered a distribution and may be a taxable event. One way of avoiding this result would be to pay off the existing loan prior to the exchange.

Exchanging a deferred annuity for an immediate annuity qualifies for tax deferral under IRC Section 1035. However, avoidance of the 10% will depend upon which of the IRC Section 72 exceptions the client is relying upon:

1. Payments made on or after the date on which the taxpayer becomes 59½ will avoid the 10% penalty.
2. Payments that are part of a series of substantially equal periodic payments made for the life expectancy of the taxpayer or the joint life expectancies of the owner and his or her beneficiary will also avoid the 10% penalty.
3. Payments made under an immediate annuity contract for less than the life expectancy of a taxpayer who is under age 59½ probably will not avoid the 10% penalty.

IRC Section 72 requires that the immediate annuity payments begin within one year of the purchase. The IRS will most likely contend that the purchase date of the "new" contract will relate back to the date of the original purchase of the deferred annuity. Since it is unlikely the original annuity was purchased within one year of the "new" annuity's starting date, the payments will probably not qualify for this exception.

Assignment to Insurer

The transfer of ownership in the old policy(ies) to the new insurer is effected with an irrevocable assignment by the owner to the insurer, with a designation of the insurer as both owner and beneficiary of the old contract. The parties to the exchange will then be: (1) the owner of the "old" contract; (2) the insurer of the "old" contract; and (3) the "new" insurer. The owner makes an absolute assignment of the "old" contract to the "new" insurer by notifying the "old" insurer, in writing. The "new" insurer then surrenders the old policy to the "old" insurer, and applies the proceeds of the surrender to a newly issued contract on the same insured.

The Notice of Assignment and Change of Beneficiary form, as well as the Notice of Intent to Surrender, should make reference to the owner's intention to effectuate a 1035 Exchange. The policy assigned to the "new" insurer will ordinarily have a stated value. Therefore, the "new" insurer receives valuable consideration upon assignment to it of the "old" policy. For this reason, the "old" policy should not be assigned to the "new" company unless a favorable underwriting decision has been made and accepted by the policyholder (this is especially important for life insurance exchanges).

Do you need help with annuities? Call our annuity experts toll-free at 800-872-6684 (Monday-Friday, 9AM-5PM EST). Or, send your questions and comments by email here. We'll get back to you within 24 hours with an answer!

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Important Notice: This information is not intended to be a recommendation to purchase an annuity. You should consult with a financial planner to determine if an annuity is a suitable product in your situation. Also, be advised that tax information published at this site is written to support the promotion of annuities. It is based on limited facts and should not be relied upon. You should consult with your own tax and legal advisors for an opinion about what could or should be done in your particular situation.

Annuity Formula

The PV, FV, NPER, RATE, and PMT functions in Excel can be used for both an ordinary annuity (payments made at the end of the period, type=0) and annuity due (payments made at the beginning of the period, type=1).

The PMT function can be used to calculate the annuity payment amount given the annual interst rate (i), number of payments (n), and initial principal (P).

A =PMT( i, n, -P, 0, type)

The PV function can be used to calculate the present value of the annuity. When the payment amount represents withdrawals from a retirement account, the present value would represent the initial principal:

P =PV( i, n, -A, 0, type)

The FV function can be used to calculate the future value of an annuity:

F =FV( i, n, -A, 0, type)

The NPER function can be used to calculate the number of payments:

n =NPER( i, -A, P, 0, type)

The RATE function can be used to calculate the interest rate. It requires iteration and an initial guess at the rate (default is 0.1):

i =RATE(n, -A, P,0, type, guess)

You can also use these functions for an inflation-adjusted annuity payment, which is actually an exponential gradient series cash

Calculating The Present And Future Value Of Annuities

At some point in your life you may have had to make a series of fixed payments over a period of time - such as rent or car payments - or have received a series of payments over a period of time, such as bond coupons. These are called annuities. If you understand the time value of money and have an understanding of future and present value you're ready to learn about annuities and how their present and future values are calculated. (To read more on this subject, see Understanding The Time Value Of Money and Continuously Compound Interest.)

What Are Annuities?
Annuities are essentially series of fixed payments required from you or paid to you at a specified frequency over the course of a fixed period of time. The most common payment frequencies are yearly (once a year), semi-annually (twice a year), quarterly (four times a year) and monthly (once a month). There are two basic types of annuities: ordinary annuities and annuities due.

• Ordinary Annuity: Payments are required at the end of each period. For example, straight bonds usually pay coupon payments at the end of every six months until the bond's maturity date.
  
• Annuity Due: Payments are required at the beginning of each period. Rent is an example of annuity due. You are usually required to pay rent when you first move in at the beginning of the month, and then on the first of each month thereafter.

Since the present and future value calculations for ordinary annuities and annuities due are slightly different, we will first discuss the present and future value calculation for ordinary annuities.

Watch: What is An Annuity

Calculating the Future Value of an Ordinary Annuity
If you know how much you can invest per period for a certain time period, the future value of an ordinary annuity formula is useful for finding out how much you would have in the future by investing at your given interest rate. If you are making payments on a loan, the future value is useful for determining the total cost of the loan.

Let's now run through Example 1. Consider the following annuity cash flow schedule:




In order to calculate the future value of the annuity, we have to calculate the future value of each cash flow. Let's assume that you are receiving $1,000 every year for the next five years, and you invested each payment at 5%. The following diagram shows how much you would have at the end of the five-year period:


Since we have to add the future value of each payment, you may have noticed that, if you have an ordinary annuity with many cash flows, it would take a long time to calculate all the future values and then add them together. Fortunately, mathematics provides a formula that serves as a short cut for finding the accumulated value of all cash flows received from an ordinary annuity:

C = Cash flow per period i = interest rate n = number of payments

If we were to use the above formula for Example 1 above, this is the result:

= $1000*[5.53] = $5525.63

Note that the one cent difference between $5,525.64 and $5,525.63 is due to a rounding error in the first calculation. Each of the values of the first calculation must be rounded to the nearest penny - the more you have to round numbers in a calculation the more likely rounding errors will occur. So, the above formula not only provides a short-cut to finding FV of an ordinary annuity but also gives a more accurate result. (Now that you know how to do these on your own, check out our Future Value of an Annuity Calculator for the easy method.)

Calculating the Present Value of an Ordinary Annuity
If you would like to determine today's value of a series of future payments, you need to use the formula that calculates the present value of an ordinary annuity. This is the formula you would use as part of a bond pricing calculation. The PV of ordinary annuity calculates the present value of the coupon payments that you will receive in the future.

For Example 2, we'll use the same annuity cash flow schedule as we did in Example 1. To obtain the total discounted value, we need to take the present value of each future payment and, as we did in Example 1, add the cash flows together.

Again, calculating and adding all these values will take a considerable amount of time, especially if we expect many future payments. As such, there is a mathematical shortcut we can use for PV of ordinary annuity.

C = Cash flow per period i = interest rate n = number of payments

The formula provides us with the PV in a few easy steps. Here is the calculation of the annuity represented in the diagram for Example 2:

= $1000*[4.33] = $4329.48

Not that you'd want to use it now that you know the long way to get present value of an annuity, but just in case, you can check out our Present Value of an Annuity Calculator.

Calculating the Future Value of an Annuity Due
When you are receiving or paying cash flows for an annuity due, your cash flow schedule would appear as follows:




Since each payment in the series is made one period sooner, we need to discount the formula one period back. A slight modification to the FV-of-an-ordinary-annuity formula accounts for payments occurring at the beginning of each period. In Example 3, let's illustrate why this modification is needed when each $1,000 payment is made at the beginning of the period rather than the end (interest rate is still 5%):


Notice that when payments are made at the beginning of the period, each amount is held for longer at the end of the period. For example, if the $1,000 was invested on January 1st rather than December 31st of each year, the last payment before we value our investment at the end of five years (on December 31st) would have been made a year prior (January 1st) rather than the same day on which it is valued. The future value of annuity formula would then read:


Therefore,

= $1000*5.53*1.05 = $5801.91

Check out our Future Value Annuity Due Calculator to save some time.

Calculating the Present Value of an Annuity Due
For the present value of an annuity due formula, we need to discount the formula one period forward as the payments are held for a lesser amount of time. When calculating the present value, we assume that the first payment was made today.

We could use this formula for calculating the present value of your future rent payments as specified in a lease you sign with your landlord. Let's say for Example 4 that you make your first rent payment at the beginning of the month and are evaluating the present value of your five-month lease on that same day. Your present value calculation would work as follows:



Of course, we can use a formula shortcut to calculate the present value of an annuity due:


Therefore,

= $1000*4.33*1.05 = $4545.95

Recall that the present value of an ordinary annuity returned a value of $4,329.48. The present value of an ordinary annuity is less than that of an annuity due because the further back we discount a future payment, the lower its present value: each payment or cash flow in ordinary annuity occurs one period further into future.

Check out our Present Value Annuity Due Calculator.

Conclusion
Now you can see how annuity affects how you calculate the present and future value of any amount of money. Remember that the payment frequencies, or number of payments, and the time at which these payments are made (whether at the beginning or end of each payment period) are all variables you need to account for in your calculations.

Calculating an Annuity

Before we use the annuity formula, let's solve a short 3 year example the "long way". First we need the compound interest formula which is: Total = Principal   ×   ( 1 + Rate )years Now let's say the amount that we invest annually is $2,000 per year and the interest rate is 8%.

The $2,000 invested 3 years ago has become                   $2,000 * (1.08)3 = $2,000 * 1.259712 = $2,519.424 The $2,000 invested 2 years ago has become $2,000 * (1.08)2 = $2,000 * 1.1664 = $2,332.80 The $2,000 invested 1 year ago becomes $2,000 * (1.08)1 = $2,000 * 1.08 = $2,160.00 Adding up all 3 yearly amounts, we obtain $7,012.22

As you can see, the mathematics of this can be a little cumbersome especially when the time involved gets larger. To make these calculations a little easier, there is a formula:

where the AMOUNT is the annual amount invested each year, 'n' is the number of years and 'r' is the annual rate of the investment. So, we have: $2,000 * { [(1 + .08)(3 + 1) -1] ÷ .08 } — $2,000 $2,000 * { [1.36048896 -1] ÷ .08 } — $2,000 $2,000 * { .36048896 ÷ .08 } — $2,000 $2,000 * { 4.506112 } — $2,000 $9,012.224 -$2,000 $7,012.22 Which is the answer we obtained using the "long" method.

Avertissement!!! du Mercredi 15 Mai 2013: Déflagration? Quand un "Abé sardonique" cache un grand "Prêtre supersonique"! par Bruno Bertez

Avertissement!!! du Mercredi 15 Mai 2013: Déflagration? Quand un "Abé sardonique" cache un grand "Prêtre supersonique"! par Bruno Bertez
Ce qui se passe aux Etats Unis est central, certes, mais la crise se joue également ailleurs.
 

"Toner Man’s making his flight Deflation is starting to bite His sole super power A Keynesian shower To the Banks under cover of night"
The Limerick King

    Ce sont les Etats Unis qui donnent le la, mais chacun joue sa partition, les uns sont en avance sur le chef d’orchestre, c’est le cas du Japon ; d’autres sont en retard, c’est le cas de l’Europe. Et puis il y a ceux qui sont perdus, qui rament , pédalent entre les deux comme la Chine et ses voisins . 
Nous soutenons que depuis le début de la crise, depuis 2008, le Japon est le modèle, le canevas, le scénario que nous allons suivre . 
 Pourquoi ? Parce que, sous un mode d’apparaitre différent, la crise est organiquement sinon la même, du moins isomorphe. Nous sommes  dans une crise de surendettement, d’excès de passif, qui mute en crise financière, puis économique, puis qui remute en debt déflation, et enfin mute en crise de la monnaie et des finances publiques. 
Si vous regardez bien, avec des habillages différents, les étapes sont les mêmes, les discours sont les mêmes, les débats sont les mêmes, en Japonais alors, en Anglais maintenant. 
Et Nous soutenons que ce que font les japonais en ce moment, est suicidaire. Et Nous soutenons que les Etats Unis , face à l’échec du monétaire de Bernanke , passeront  à la vitesse supérieure avec son successeur. Le policy mix deviendra le même, stimulation monétaire accrue, maintient voire augmentation du stimulus fiscal et en même temps promesse de réformes structurelles lesquelles ne verront jamais le jour. 
Mais là n’est pas notre propos. 
Nous souhaitons attirer l’attention que nous vivons une étape de complexification de la crise et que pour comprendre il ne suffit plus de suivre ce qui se fait aux Etats Unis. Tout s’entrelace, la crise américaine, le ralentissement phénoménal de la croissance en Chine, la déflation des commodities, le glut pétrolier, la reflation désespérée de  Abe, la guerre monétaire dont sont victimes des pays cmme la Corée et l’Australie etc . Et nous ajoutons, le gâchis européen qui va évoluer après les élections allemandes. 
Ce qui signifie que,  ce que certains font ici, peut se trouver temporairement contré là. 
La résultante des forces en action est incertaine, puisque les flux de capitaux restent libres. 
Le mess, le bo….el japonais favorisent  les européens au plan financier, ils bénéficient d’entrées de capitaux, au détriment de l’économie réelle par le biais du change par exemple. 
Le ralentissement chinois favorise les Etats Unis par la déflation des matières premières, laquelle agit comme une ristourne de pouvoir d’achat dans le système américain etc  Mais le dollar monte ce qui ne fait pas leurs affaires. 
Tout se mélange, le plus et le moins, le monétaire et le bancaire, le bancaire  et le financier, le financier et les  changes, les changes et l’économie réelle, etc . On est en train de mettre en place un feed back loop, une transitivité incroyable, complexe, imprévisible. 
Ce qui se passe sur le bonds japonais est grave, avec des JGB en limit down et un marché fragilisé, suspendu dans les airs, avec une expérience désespérée qui conduit en terre inconnue.

 

Le Japon est l’un des pays les plus mal géré au monde avec une absence totale d’opposition compte tenu de la structure du pouvoir politique, du poids de l’administration et une tradition d’obéissance bornée. Aucun renouvellement des élites. On joue avec le feu alors que celui-ci peut se répandre par le canal financier au monde entier. 

Et les idiots d’Américains applaudissent ! Ils oublient l’interconnexion et le fait que le YEN  est monnaie de carry. Un pépin sur le YEN ou les JGB peut provoquer une fuite devant le risque incontrôlable au niveau mondial. 
Quelle sera l’issue finale, quelles forces prendront le dessus, voilà pour nous la question majeure.

BRUNO BERTEZ Le Mardi 15 Mai 2013
llustrations et mise en page by THE WOLF
EN BANDE SON: 
  Changes et Devises, Commentaire de Marché, Cycle Economique et Financier, Déflation, Indicateur des Marchés, Japon, Le Graphique du Jour, Marché Obligataire, Mister Market and Doctor Conjoncture, Mon Banquier est Central, Monétarisme, Mondialisation, Risques géopolitiques, sociaux, environnementaux et sanitaires, Une info importante qui peut en cacher une autre | Bruno Bertez, Philippe Béchade 

The ABCs Of Annuities: 8 Questions To Ask Before You Buy

Annuities have become big business. Baby boomers are retiring in record numbers. Having experienced the market turmoil and uncertainty of the past five years, many of them want investments that offer an element of stability and security.

When chosen carefully annuities  can protect consumers against outliving their money and protect against stock market volatility–features which are not available in traditional stock or mutual fund accounts. But with his protection comes additional costs, restrictions and fees, which consumers must review before considering an annuity purchase.

An annuity contract is a method of converting wealth into a stream of income. An investor gives money to an insurance company. In exchange the insurance company agrees to provide the investor with a benefit at a future date. The two most common promised benefits are an immediate life-long income stream (an “immediate annuity”) and the promise of growing an account balance into the future (called a “deferred annuity”).