Lebel & Harriman LLPRebecca Burchill, ChFC®, CLU®Managing Director366 US Route 1Falmouth, ME 04105207-773-5390(207) 773-3814 (fax)rebecca@lebelharriman.comwww.lebelharriman.com

September 2018Infographic: Working in Retirement

The Financial Implications of a Chronic Illness

I received a large refund on my tax return thisyear. Should I adjust my withholding?

I just received a large bill for a recent hospitalvisit. How can I check whether it's accurate?

Lebel & Harriman NewsletterInsurance Division

What to Do If Your Term Life Insurance Policy Is About to Expire

See disclaimer on final page

One advantage of term lifeinsurance is that it isgenerally the mostcost-effective way toachieve the maximum lifeinsurance protection youcan afford. Many peoplefirst purchase term life

insurance to protect their family's financialinterests after a significant life event, such asgetting married or the birth of a child.

You may have done the same for your familywhen you purchased your policy years ago.And chances are, other than paying thepremiums, you probably haven't given it muchthought since then. However, if your term lifeinsurance policy is set to expire in the nearfuture, it's important to explore your optionsnow before the coverage runs out.

Before you get started, you first need toreevaluate your life insurance needs anddetermine if anything has changed. Are yourchildren grown and have they graduated fromcollege? Do you have a mortgage? If you havefinancial obligations that you need to take careof, you may still need term life insurance. If youare nearing retirement and have fewer financialobligations than you did when you wereyounger, your need for a term life insurancepolicy may not be as great as it once was.

Purchasing a new policyIf you are in relatively good health and yourcurrent term life insurance policy is about to runout, you might consider purchasing a new termpolicy altogether. When applying for a new termlife insurance policy, you will generally need topass a medical exam. In addition, since you areolder now, your premiums may be higher thanthey were under your old policy. However, youmay not need as large a policy as you did whenyou first purchased term life insurance yearsago. It may pay to shop around and comparebecause premiums can vary among insurers.

Renewing your existing policyWhen the coverage period for your term lifeinsurance ends, you may have the option torenew the policy, depending on the specific

policy and limitations. Though you won't berequired to take a medical exam if you renewyour policy, the rate will generally increaseeach time it is renewed for an additional termbecause your age has increased (as has theinsurance company's risk of paying a deathbenefit). These increased premium costs cansometimes make renewing a term life insurancepolicy an expensive way to cover your lifeinsurance needs.

Converting your policy to permanentlife insuranceIf you have a convertible term life insurancepolicy, you may be able to convert it to apermanent life insurance policy, such as wholeor universal life insurance. Permanentinsurance continues throughout your life aslong as you pay the premiums. As with terminsurance, permanent insurance pays a deathbenefit to your beneficiary at your death, but italso contains a cash value account funded byyour premium dollars. When you convert yourpolicy, you won't need to prove your insurabilityby taking a medical exam. However, there isusually a conversion deadline, which is the dateby which you must convert, typically beforeyour term life insurance is set to expire.

The cost and availability of life insurancedepend on factors such as age, health, and thetype and amount of insurance purchased. Aswith most financial decisions, there areexpenses associated with the purchase of lifeinsurance. Policies commonly have mortalityand expense charges. In addition, if a policy issurrendered prematurely, there may besurrender charges and income tax implications.Any guarantees are contingent on theclaims-paying ability and financial strength ofthe issuing company.

The rules governing 1035 exchanges arecomplex and you may incur surrender chargesfrom your "old" life insurance policy. In addition,you may be subject to new sales and surrendercharges for the new policy.

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Infographic: Working in Retirement

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The Financial Implications of a Chronic IllnessWhen you live with a chronic illness, you needto confront both the day-to-day and long-termfinancial implications of that illness. Talkingopenly about your health can be hard, butsharing your questions and challenges withthose who can help you is extremely important,because recommendations can be bettertailored to your needs. Every person with achronic illness has unique issues, but here's alook at some topics you might need help with.

Money managementA budget is a useful tool for anyone, but it'sespecially valuable when you have a chronicillness, because it will serve as a foundationwhen planning for the future. Both your incomeand expenses may change if you're unable towork or your medical costs rise, and you mayneed to account for unique expenses related toyour condition. Clearly seeing your overallfinancial picture can help you feel more incontrol.

Keeping good records is also important. Forexample, you may want to set up a system tohelp you track medical expenses and insuranceclaims. You may also want to prepare a list ofinstructions for others, such as a trusted friendor relative, that includes where to find importanthousehold and financial information in anemergency.

Another step you might want to take issimplifying your finances. For example, if youhave numerous financial accounts, you couldconsolidate them to make it easier and quickerfor you or a trusted advisor to manage. Settingup automatic bill payments or online bankingcan also help you keep your budget on trackand ensure that you pay all bills on time.

InsuranceReviewing your insurance coverage isessential. Read your health insurance policyand make sure you understand yourcopayments, deductibles, and the nuts andbolts of your coverage. In addition, find out ifyou have any disability coverage, and whatterms and conditions apply.

You might assume that you can't purchaseadditional life insurance, but this isn'tnecessarily the case. It may depend on yourcondition or the type of life insurance you'reseeking. Some policies will not require amedical exam or will offer guaranteedcoverage. If you already have life insurance,find out if your policy includes accelerated(living) benefits. You'll also want to reviewbeneficiary designations. If you're married,make sure that your spouse has adequateinsurance coverage, too.

InvestingHaving a chronic illness can affect yourinvestment strategy. Your income, cash-flowrequirements, and tolerance for risk maychange, and your investment plan may need tobe adjusted to account for both your short-termand long-term needs. You may need to keepmore funds in a liquid account now (forexample, to help meet day-to-day livingexpenses or use for home modifications, ifnecessary), and you'll want to thoroughlyevaluate your long-term needs before makinginvestment decisions. The course of yourillness may be unpredictable, so yourinvestment plan should remain flexible and bereviewed periodically.

Estate planningYou might think of estate planning only assomething you do to get your affairs in order inthe event of death, but estate planning toolscan also help you manage your finances rightnow.

For example, a durable power of attorney canhelp protect your property in the event youbecome unable to handle financial matters. Adurable power of attorney allows you toauthorize someone else to act on your behalf,so he or she can do things like pay everydayexpenses, collect benefits, watch over yourinvestments, and file taxes.

A living trust (also known as a revocable orinter vivos trust) is a separate legal entity youcreate to own property, such as your home orinvestments. The trust is called a living trustbecause it's meant to function while you'realive. You control the property in the trust and,whenever you wish, can change the trust terms,transfer property in and out of the trust, or endthe trust altogether. You name a co-trusteesuch as a financial institution or a loved onewho can manage the assets if you're unable todo so. There are costs and ongoing expensesassociated with the creation and maintenanceof trusts.

You may want to have advance medicaldirectives in place to let others know whatmedical treatment you would want, or that allowsomeone to make medical decisions for you, inthe event you can't express your wishesyourself. Depending on what's allowed by yourstate, these directives may include a living will,a durable power of attorney for health care, anda Do Not Resuscitate order.

Review your plan regularlyAs your health changes, your needs will changetoo. Make sure to regularly review and updateyour financial plan.

There's no such thing as aone-size-fits-all financialplan for someone with achronic illness. Everycondition is different, soyour plan must be tailoredto your needs andchallenges, and reviewedperiodically.

All investing involves risk,including the possible lossof principal, and there is noguarantee that anyinvestment strategy will besuccessful.

The cost and availability oflife insurance depend onfactors such as age, health,and the type and amount ofinsurance purchased.

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Lebel & Harriman LLPRebecca Burchill, ChFC®,CLU®Managing Director366 US Route 1Falmouth, ME 04105207-773-5390(207) 773-3814 (fax)rebecca@lebelharriman.comwww.lebelharriman.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018

IMPORTANT DISCLOSURES

Broadridge Investor CommunicationSolutions, Inc. does not provide investment,tax, or legal advice. The informationpresented here is not specific to anyindividual's personal circumstances.

To the extent that this material concerns taxmatters, it is not intended or written to beused, and cannot be used, by a taxpayer forthe purpose of avoiding penalties that may beimposed by law. Each taxpayer should seekindependent advice from a tax professionalbased on his or her individual circumstances.

These materials are provided for generalinformation and educational purposes basedupon publicly available information fromsources believed to be reliable—we cannotassure the accuracy or completeness ofthese materials. The information in thesematerials may change at any time andwithout notice.

Securities offered through ValMarkSecurities, Inc. Member FINRA, SIPC.Investment Advisory Services OfferedThrough ValMark Advisers, Inc. a SECRegistered Investment Advisor. 130Springside Drive, Suite 300, Akron, OH44333-2431. Telephone: (800) 765-5201.Lebel & Harriman, LLP is a separate entityfrom ValMark Securities, Inc. and ValMarkAdvisers, Inc.

I just received a large bill for a recent hospital visit. Howcan I check whether it's accurate?In today's complex world ofmedical billing, you may havedifficulty understanding exactlywhich procedures you're being

charged for, or what the billing codes on yourhospital bill mean.

The first step in determining whether your bill isaccurate is to know exactly what your insurancedoes and does not cover. Review your healthplan's coverage brochure or contact yourinsurer to find out about your plan's coverageexclusions or limitations, expenses that are fullyor partially covered by your plan, and theramifications of using an out-of-networkprovider.

Another helpful tool is an explanation ofbenefits (EOB). The EOB will provide you witha variety of information, such as the dates andtype of services provided, the amount that wasbilled by the medical provider to the insurancecompany, what the insurance company paid tothe provider, and the amount that wasn'tcovered and for which you are responsible.Review your EOB and compare it to yourmedical bills. If you find any discrepancies,

contact your medical provider's billingdepartment.

Unfortunately, errors are a common occurrencein the medical billing industry. As a result, it'salways important to request an itemized bill, asopposed to just a summary of charges, from amedical provider. An itemized bill is criticalwhen it comes to identifying billing errorsbecause it will detail each medical procedurefor which you are being charged. Once you'vereceived your itemized bill, check to make surethat all of your identifying information (e.g.,address, date of birth), dates of service, andinsurance information are correct. In addition,you'll want to check for common billing errors,such as charges for duplicate procedures orincorrectly coded procedures.

If you find an error on your bill, contact thebilling department of the medical provider torequest a corrected insurance claim and/or bill.Be prepared to explain the mistake to the billingrepresentative and provide copies of billingrecords that illustrate the billing error.

I received a large refund on my tax return this year.Should I adjust my withholding?You must have beenpleasantly surprised to find outyou'd be getting a refund fromthe IRS — especially if it was a

large sum. And while you may have consideredthis type of windfall a stroke of good fortune, isit really?

The IRS issued over 112 million federal incometax refunds, averaging $2,895, for tax year2016.1 You probably wouldn't pay someone$240 each month in order to receive $2,900back, without interest, at the end of a year. Butthat's essentially what a tax refund is — ashort-term loan to the government.

Because you received a large refund on yourtax return this year, you may want to reevaluateyour federal income tax withholding. That wayyou could end up taking home more of your payand putting it to good use.

When determining the correct withholdingamount, your objective is to have just enoughwithheld to prevent you from having to owe alarge amount of money or scramble for cash attax time next year, or from owing a penalty forhaving too little withheld.

It's generally a good idea to check yourwithholding periodically. This is particularlyimportant when something changes in your life;for example, if you get married, divorced, orhave a child; you or your spouse change jobs;or your financial situation changes significantly.

Furthermore, the implementation of the new taxlaw at the beginning of 2018 means yourwithholding could be off more than it might be ina typical year. Employers withhold taxes frompaychecks based on W-4 information and IRSwithholding tables. The IRS released 2018calculation tables reflecting the new rates andrules earlier this year. Even so, the old W-4 andworksheet you previously gave to youremployer reflect deductions and credits thathave changed or been eliminated under thenew tax law.

The IRS has revised a useful online withholdingcalculator that can help you determine theappropriate amount of withholding. You stillneed to complete and submit a new W-4 toyour employer to make any adjustments. Visitirs.gov for more information.1 Internal Revenue Service, 2018

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