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Healthcare Provider Update: Healthcare Provider for ConocoPhillips ConocoPhillips provides its employees with access to various healthcare plans through third-party providers, primarily offering services via large insurers such as Blue Cross Blue Shield and UnitedHealthcare. These plans typically include comprehensive medical, vision, and dental coverage tailored to meet the diverse needs of its workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, ConocoPhillips employees can expect significant premium hikes in 2026, driven by a perfect storm of factors impacting the Affordable Care Act (ACA) marketplace. With anticipated increases exceeding 60% in some states and the potential expiration of federal premium subsidies, many employees could face out-of-pocket costs soaring by up to 75%, compounding the financial pressure. The ongoing upward trend in medical costs, coupled with employers' shifts in cost-sharing strategies, may further challenge employees as they navigate rising healthcare expenses. Planning ahead and understanding these dynamics is crucial for effective budgeting and healthcare management in the coming years. Click here to learn more
According to a study conducted by the National Institute on Aging, about 80% of individuals aged 65 or older are suffering from at least one chronic illness, including terminal illnesses such as cancer or heart disease. While dealing with a terminal illness can be challenging for anyone, it is important for the elderly to be aware of the medical and emotional support available to them. Palliative care, for instance, can provide comfort and alleviate pain and stress associated with a terminal illness, while hospice care can provide end-of-life care and support. The earlier one seeks out these resources, the better equipped they will be to manage their condition and make informed decisions about their future. (Source: National Institute on Aging, published on September 14, 2020).
What Is It?
Upon learning that you have a terminal illness, you may wish to promptly begin planning for your current needs and the future needs of your survivors. Specifically, you will want to provide enough money, insurance, and assets to ensure that you will be comfortable during your final months and that your survivors will receive an adequate income after your passing.
By communicating your wishes to your family and implementing certain legal documents (e.g., health-care proxy, living will, durable power of attorney), you can make decisions regarding your medical care and prepare for the possibility of incapacity. You will also want to ensure that your estate is distributed to your survivors in accordance with your desires if you are an ConocoPhillips client dealing with this or a similar circumstance.
Meeting Your Current Financial Needs
- Ensure you have sufficient liquid assets to satisfy your current needs--Determine if the cash in your savings account, money market fund, or other liquid account is sufficient to cover your expenses during your final months. Consider withdrawing funds from your retirement account, applying for any insurance benefits to which you may be entitled, or selling your life insurance policy to a viatical settlement company if none of these options are feasible.
- Consider making withdrawals from your retirement account --You may request a distribution of funds from your defined contribution plan to cover your medical expenses. This is known as a hardship distribution, and it is limited to the amount required to satisfy your immediate financial needs. To be eligible for a hardship distribution, you must lack access to other resources that could satisfy this need.
Caution: A hardship distribution from a defined contribution plan is subject to income tax. However, if you are disabled, or if the distribution is used to pay qualified medical expenses, the 10 percent early withdrawal penalty won't apply.
Apply for Disability Benefits That You Are Entitled to
Once you have satisfied the elimination (waiting) period, you may be eligible for disability benefits under a group or individual disability income insurance policy. Check your policy or contact ConocoPhillips if you are unsure whether a disability policy covers you.
Review Your Life Insurance Policy for Ways to Raise Cash
You may be able to borrow against or obtain accelerated death benefits from your life insurance policy. Your policy may also include a premium waiver, so that after you've been disabled for a certain period of time (typically six months), the insurance company will pay your insurance premiums, saving you some money.
Caution: Borrowing against your life insurance or taking accelerated death benefits will reduce the benefit paid to your survivors.
Consider Viatical Settlements
The transfer of an insurance policy to a third party constitutes a viatical settlement. This third entity is typically a company or group of investors specializing in such sales. In general, you will receive between 45 and 85 percent of the face value of your policy when you sell it. This distribution is generally tax-free if your life expectancy is less than 24 months. Nevertheless, ConocoPhillips customers must be aware that there are disadvantages. For instance, your beneficiaries on your life insurance policy will no longer be your survivors, and receiving a viatical settlement may disqualify you from receiving Medicaid.
Providing Financially for Your Survivors
Buy More Life Insurance
If you believe that the death benefit your survivors will receive from your life insurance policy will not be sufficient to meet their needs and you have a life insurance policy through ConocoPhillips, find out if you can purchase additional coverage during the open enrollment period without providing proof of insurability. Also, examine your existing life insurance policy to determine if you are eligible to purchase additional coverage without providing proof of insurability. If you are taking out a loan to buy consumer products, you may be able to purchase credit life insurance to pay off the loan in the event of your death.
Caution: Proceeds from a life insurance policy are generally nontaxable to your beneficiaries. However, those proceeds are includable in your gross estate for estate tax purposes if they are payable to your estate, your executor, or an individual or trust legally obligated to pay estate debts.
Make Sure That Your Survivors Will Have Access to Needed Funds
Your survivors may require funds to cover their day-to-day living expenses as well as funeral and burial costs. You can provide for them with life insurance, but you may also want to make sure they have access to liquid assets (such as currency held in CDs, savings accounts, and checking accounts). If necessary, add your spouse, child, or another survivor to your account so that they can access the funds as co-owners after your death.
Tip: Consider adding your spouse as a joint owner on your credit card account if you want to make sure that he or she has access to the credit line after your death, particularly if your spouse currently has no credit established in his or her own name.
Find Out What Benefits Your Survivors Will Be Eligible For
Your survivors may be eligible for Social Security survivor benefits, benefits from the U.S. military (if you are an active or retired service member) or benefits from your qualified retirement plan. If you are already retired from ConocoPhillips and you chose to provide a survivor's annuity for your spouse, he or she may continue to receive income from your retirement annuity after your passing.
Even if you are not yet retired from ConocoPhillips, your spouse or another beneficiary may receive a lump-sum death benefit from your qualified plan.
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Tip: Continuing payments made to your estate (if named as beneficiary) or to a family member may be includable in your gross estate for estate tax purposes.
Make Use of Appropriate Planning Opportunities to Minimize Potential Federal Estate Taxes
Your estate will be exempt from federal gift and estate tax if its value is less than the applicable exclusion amount. Nonetheless, if your estate exceeds the applicable exclusion amount, you should consider implementing strategies to minimize potential estate taxes, such as making gifts in the amount of the annual gift tax exclusion each year to any number of recipients (this figure is inflation-indexed, so it may change in future years), transferring property to your spouse, or making charitable contributions.
Estate Planning Concerns and Opportunities
Review Your Will or Make One
Our ConocoPhillips clients who have a will should evaluate it and make any necessary modifications. If you do not have a will, you should create one with the assistance of an attorney immediately. You should appoint a guardian for your minor children (if you have any), name an executor for your estate, and specify how your assets will be distributed after your death in your will.
Ensure That Your Estate Is Liquid
Now is the time for these ConocoPhillips customers to ensure that their estate has sufficient liquid assets to cover estate settlement expenses. If your survivors are forced to liquidate assets in order to meet their obligations, they may lose income or assets that you had earmarked for them. There are numerous methods to ensure the liquidity of an estate, including distributing illiquid assets to heirs in a will, selling estate assets prior to death, and establishing a buy-sell agreement if you are a business owner.
Planning for Incapacity
When you have a terminal illness, you must prepare for the time when you will be unable to manage your own affairs. If you become incapacitated and unable to manage your finances or sign legal documents, a durable power of attorney will grant the person of your choice the authority to act on your behalf. Consider executing a healthcare proxy if you want this individual to have authority over only healthcare-related decisions.
You may want to effectuate a living will if you want to ensure that no procedures are performed to prolong your life. By making your wishes known while you are still competent, a living will can also prevent your family from having to make traumatic decisions on your behalf.
Tip: To protect yourself from people who may think you are incapacitated when you aren't, ask your doctor to sign a physician's certificate certifying that you are able to sign and execute legal documents.
Income Tax Planning Concerns
If you are no longer able to work for ConocoPhillips, you may be required to liquidate your investments, retirement funds, or insurance policies to cover your expenses. By controlling when income or gains are recognized, it is possible to control taxation. Additionally, these ConocoPhillips customers should keep track of their medical expenses in the event that they qualify as deductions against their taxable income.
Making Decisions About The Future
Planning for Medical Care
Maintaining health insurance coverage is essential if you have a terminal illness. If you discontinue your coverage, it will likely be impossible to purchase more. If you lose coverage as a result of losing your job with ConocoPhillips, you should plan to purchase COBRA insurance to maintain coverage. Additionally, these ConocoPhillips customers should evaluate the coverage limits of their health insurance to determine if their policy will cover in-home care, including hospice care, if they do not need or desire hospital care.
Planning Your Funeral
Numerous individuals may prefer arranging their own funerals because they can ensure that the funeral and final arrangements are exactly as desired. It may also be beneficial for your family, as they will not have to make difficult decisions while grieving.
Tip: If you are a veteran of the U.S. Armed Forces, find out what death benefits you are entitled to. For instance, you may be eligible for burial in a national cemetery, final honors, a headstone, a flag, or other benefits.
Making an Organ Donation
For ConocoPhillips customers who wish to become organ donors, make arrangements immediately. Discuss the situation with your family, as they may be disturbed by your desire to become an organ donor. Ensure that they comprehend your decision before proceeding. Check with your local department of motor vehicles or consult your doctor for information on organ donor programs.
Conclusion
Just like how taking care of your car with regular maintenance can prevent costly repairs down the line, investing in your health and wellness through preventative measures can also save you from expensive healthcare bills in the future. In the same way that getting an oil change can extend the life of your vehicle, taking steps to improve your health, such as exercising regularly and eating a balanced diet, can help you live a longer and healthier life. By investing in your health now, you can save money and stress in the future.
How does the retirement process at ConocoPhillips provide guidance to employees in selecting the most beneficial form of payment? In what ways can employees utilize available resources to maximize their understanding of the pension options offered by ConocoPhillips?
The retirement process at ConocoPhillips provides employees with various resources to guide them in selecting the most beneficial form of pension payment. Employees can access the "How to Choose the Best Form of Payment" link on Your Benefits Resources™ (YBR) to learn more about their options and determine what works best for their financial situation(ConocoPhillips_Your_Ret…).
What steps must be completed by employees at ConocoPhillips to ensure they initiate their retirement process accurately and avoid any delays? How crucial is the timing of these steps in determining the Benefit Commencement Date (BCD)?
Employees at ConocoPhillips must initiate the retirement process by requesting their pension paperwork 60-90 days before their Benefit Commencement Date (BCD). Timing is crucial, as missing deadlines may delay the BCD and associated payments. Completing all steps on time ensures that the retirement process flows smoothly(ConocoPhillips_Your_Ret…).
Given the complexities associated with the lump-sum pension payment option at ConocoPhillips, what considerations should employees take into account before electing this choice? How does the current interest rate at the Benefit Commencement Date impact the lump-sum amount?
Before electing a lump-sum pension payment, ConocoPhillips employees should consider the current interest rate at their BCD, as it directly affects the lump-sum amount. A higher interest rate typically reduces the lump-sum payment, making timing and rate awareness critical(ConocoPhillips_Your_Ret…).
In what ways can ConocoPhillips employees ensure their Pension Election Authorization form is completed correctly to facilitate timely pension payments? What are the implications of not adhering to the required notarized consent for married participants?
Ensuring the correct completion of the Pension Election Authorization form is vital for timely pension payments. For married participants, notarized spousal consent is required, and failure to provide this could result in delays or issues with payment processing(ConocoPhillips_Your_Ret…).
How does choosing direct deposit for pension payments at ConocoPhillips streamline the retirement process for employees? What should employees know about setup and changes regarding direct deposit after initiating their pension benefits?
Choosing direct deposit for pension payments simplifies the process for employees at ConocoPhillips, as it enables automatic payments to their bank account. Employees can set up direct deposit during their retirement process or update it at a later time(ConocoPhillips_Your_Ret…).
For employees considering rolling over their lump-sum pension payment from ConocoPhillips, what procedures should they follow to ensure compliance with IRS regulations and to avoid tax penalties? How can effective planning influence the success of this rollover?
Employees electing to roll over their lump-sum pension payment must follow specific IRS regulations to avoid tax penalties. Effective planning, such as obtaining rollover paperwork and adhering to IRS rules, ensures compliance and smooth fund transfer(ConocoPhillips_Your_Ret…).
What resources does ConocoPhillips provide for employees to calculate and project their retirement income? How can these tools empower employees to make informed decisions regarding their future financial security?
ConocoPhillips provides employees with tools such as the "Project Retirement Income" feature on YBR, empowering them to calculate and project their retirement income. These resources help employees make informed decisions about their financial future(ConocoPhillips_Your_Ret…).
How do deadlines play a pivotal role in the benefits process for retiring employees at ConocoPhillips, and what specific dates must be adhered to in order to avoid payment delays? Can you provide examples of consequences resulting from missed deadlines?
Deadlines are critical in ConocoPhillips' retirement process, as missing them can delay pension payments. For example, requesting pension paperwork after the 15th of the month can delay the BCD by a month, affecting the pension payout date(ConocoPhillips_Your_Ret…).
What are the added advantages for employees at ConocoPhillips who actively seek assistance or information from the Benefits Center during their retirement planning? How can this proactive approach enhance their overall retirement experience?
Employees who seek assistance from the Benefits Center during their retirement planning benefit from personalized guidance. This proactive approach ensures that they fully understand their options and deadlines, enhancing their overall retirement experience(ConocoPhillips_Your_Ret…).
How can employees at ConocoPhillips contact the Benefits Center to receive personalized assistance in navigating their retirement options? What specific resources and support can they expect when reaching out for help?
ConocoPhillips employees can contact the Benefits Center by calling 800-622-5501 or accessing YBR online. The Benefits Center provides personalized assistance and guidance, helping employees navigate their pension options effectively(ConocoPhillips_Your_Ret…).
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