One-Stop Security Shop
By Amir Zaman, WEA Insurance
employee benefits specialist
February 1997
WEA Insurance covers all your financial security needs
For most of us, just getting through our daily business is work enough.
Whether we’re trying to get the kids off to school in the wee hours
of the morning, coping with icy driveways and treacherous snow-covered
roads, or trying to decipher a stack of mail between dinner and the evening
news, there are never enough hours to do everything we want.
So, it’s understandable that we don’t dwell long on those events
that could turn our lives upside down. A car accident, for example, has
the potential to be a major catastrophe both financially and physically
if we or a family member get hurt. Instead of worrying constantly about
what could happen to us and our family, we buy insurance to protect against
the financial hazards of these risks. At the same time, we try to get
ahead in life by putting a little aside and channeling the savings to
places where it will grow.
WEAC tries to make these everyday challenges easier to handle. More than
25 years ago, it established its own insurance program to offer members
affordable and comprehensive health insurance. Later it developed two
other programs, one to offer auto and home insurance, the other to help
members build adequate retirement funds. Together, these programs are
designed to provide the building blocks for financial security.
This article describes the offerings of each program. In subsequent articles,
we’ll show how to take best advantage of these WEAC programs.
Building your retirement with tax-sheltered annuities
Those who work in a public school have a unique opportunity to save for
retirement with a 403(b) plan, more commonly known as a tax-sheltered
annuity (TSA) plan. A TSA is essentially an Individual Retirement Account
for educators. The 403(b) refers to the section of the Internal Revenue
Code where this law appears.
During 1997, one section of this page will provide information about
tax-sheltered annuities. We’ll tell you what to look for, what to
avoid, and how to make TSAs work for you. Then we’ll tell you about
the unique features of the TSA program designed by and for WEAC members.
The WEA Tax Sheltered Annuity Trust has been well received by Wisconsin
educators — more than 20,000 of them are currently taking advantage
of it. There’s a reason why this unique TSA has grown over the years
to become the single most popular TSA in Wisconsin public schools. You’ll
find it in this series of articles.
Finally, you’ll pick up some tips to help keep your TSA in compliance
with the complex rules laid down by the Internal Revenue Service. Starting
in the March issue, turn to this column for the latest information on
TSAs and to find out how they can provide added retirement security. (Also
see the article on Page 15 of this issue of News & Views.)
Personal insurance tailored for WEAC members
The trustees of the WEAC Member Benefit Trust are public school employees
like you. They established this program to provide auto, homeowner, and
other personal insurance services exclusively for WEAC members. The purpose
of this program is simple — you shouldn’t have to struggle alone
with questions about your personal insurance needs.
When you’re buying auto or homeowners insurance, you shouldn’t
have to wonder whether a policy being recommended is good for you or just
good for the insurance company and its salespeople. We want to make sure
you have the protection you need at a fair price. Our personal insurance
consultants are salaried and have no interest in selling you coverage
you don’t need. In addition, these consultants average more than
10 years of experience and can help you review your current policy and
shop for insurance more skillfully.
The WEAC Member Benefit Trust is different from commercial insurance
companies. It doesn’t have to produce profits for investors or owners
because it’s owned by you. Every one of your premium dollars goes
into paying member claims and necessary administrative costs. Our only
goal is to provide you with exceptional service and insurance protection
that meets your needs.
We’ll give you information here that you can use to get a bigger
bang from every buck you spend on personal insurance.
Toward better health and health care
When we think of important insurance coverages, health insurance is usually
on the top of our list. But, while health insurance is our most important
coverage, there are others we need to fully protect our financial interests.
Long-term disability (LTD) provides replacement income when we can’t
work. Long-term care insurance provides financial assistance when we need
help with everyday activities like walking or bathing. With each insurance
coverage, WEAC’s insurance program strives to maximize the benefit
you buy with each dollar.
In this column, we’ll give you information on what’s happening
in the world of health and other forms of insurance. For example:
- Long-term care insurance, though still relatively new, is rapidly
becoming important because the cost of long-term care keeps climbing.
A year in a nursing home now costs about $40,000 and can take a huge
chunk out of our personal savings.
- Managed care has become big in health insurance. Last year, we provided
you with ongoing information on why managed care seems to be the wave
of the future. This year, we’ll report again on that and on what
we’re doing to make sure members have access to health care plans
that manage costs not care.
- We’ll also tell you why we are accelerating efforts to keep members
covered under our health plans better informed about maintaining and
improving their health. We believe the easiest way to reduce costs in
health care is to have healthy members.
So, turn to this column to find out how WEAC’s insurance programs
can help you build, protect, and maintain financial security.
Posted January 30, 1997