Archive for the ‘insurance’ Category

When You Need Medicare Supplemental Insurance

Thursday, October 17th, 2013

When you reach the age of 65, you qualify for Medicare. This is the government sponsored medical insurance for people 65 years olf and over. Medicare has two parts, A and B. Each part covers different things. Medicare does not cover everything. So, if you want comprehensive medical coverage, you will need to get a Medicare supplemental insurance like Medigap.

Medigap policies are purchased from private insurance providers by individuals. There are many types of supplemental insurance available. You should think carefully about what kind of medical needs you will have as you get older in order to get the best supplement that will cover the most expenses. Typically, the supplement will cover your deductibles and your co-payments. You should read over each policy’s terms of coverage to get a full picture of what procedures are covered.

A medical bill is first paid by Medicare, then by the Medigap insurance. Medicare and Medigap pays out, if there are still amounts left over for procedures that are not covered by either insurance, you will be responsible for paying for it out of your own pocket. So, it is important that you get a supplemental insurance that will cover the types of medical expenses that you will incur.

Because Medigap only covers one individual, each person in your family over the age of 65 has to get his or own supplemental policy. Dental care and vision care are also not covered by Medicare or Medigap (this may not be true if you are one of the expires plans like medicare supplement plan j). So, you will have to look for a separate policy to cover those areas of healthcare expenses.

To get Medigap, you first have to qualify for Medicare. Then, the supplemental insurance that you get must be listed as a supplement to Medicare. Make sure that you understand the terms of coverage before you sign any contracts for health insurance. Talk to your insurance company if you need further explanation.

Life Insurance Explained

Wednesday, October 16th, 2013

Life insurance is there to help protect your family financially should tragedy strike. There are many different types of policies to consider when it comes to life insurance. Continue reading to find out about the two most common types of life insurance and how they can help protect your family’s financial future.

Term Life Insurance Policies

Term life insurance policies are life insurance policies for a specific amount of time. Generally, a term life insurance policy is for 20 years. These policies are generally cheaper than other types of policies because they are for a short amount of time. Term life insurance policies are based on your health and age.

The main benefit of this type of insurance is the amount of coverage you can get for a very affordable price. The main disadvantage to term life insurance is that you will need to re-qualify for term life insurance once your policy lapses. This can result in higher premiums as you age.  So to recap, term life insurance is the most affordable life insurance policy you can purchase, but it is not guaranteed at that rate for the rest of your life.

Whole Life Insurance Policies

Whole life insurance policies are similar to term life insurance policies in that they have a maturity date; however, there are several differences. The first difference is when the policy matures, the insurance will have a cash value you can receive at the end of the policy. Many people choose this type of insurance because of the amount of cash they can receive on the maturity date.

The main compliant people have about this type of insurance policy is the coverage amounts are smaller and the payments are larger. However, it is important to remember that this policy does pay you money at the end of the term.

If you are considering purchasing life insurance, carefully consider the type of policy that is best for you. An insurance professional can best ascertain which policy will work better for you and your budget.

Medicare Supplement Plan F Explanation

Tuesday, August 27th, 2013

Medicare is a great insurance plan but it doesn’t cover all of the costs of healthcare. Private insurance companies offer a variety of Medicare supplement plans for the differences between what doctors and hospitals charge and what Medicare actually pays. Most healthcare providers will work with their patients and will agree to accept what Medicare and the Medicare supplement pays.

Medicare supplement plans are labeled as A, B, C, D, F, G, K, L, M, and N. These plans will cover the hospitalization deductibles of Medicare Part A plus the 20% deductibles for physician and other services. Medicare supplement plan F provides the most coverage and is the most desirable plan on the market. Medicare Plan F is also the most expensive of the Medigap plans on the market.

Consumers are frequently confused by the term Medigap policy. Insurance companies use this term sometimes but they are they same thing as a Medicare supplement plan.

Individuals become eligible to purchase a Medicare supplement policy without restrictions during the three months prior to the month that they turn 65 years old. Eligibility for purchase without regard to current health status or past medical history remains in effect up until three months after the month in which the individual turns 65. It is important to be prepared and sign up during this window for maximum lifetime health coverage.

All Medicare supplement plans offered on the open market must offer the same benefits for each plan type. For example, a Medicare supplement plan F offered by Insurance Company A is required to offer the exact same benefits as the plan offered by Insurance Company B. The only difference between plans will be the price, so it pays to shop around.

Selecting the best plan at the get-go is very important because if you decide to change plans later on, you will be accepted or rejected based upon your current health and prior medical history. The associated costs may be very different if you apply outside the window listed above.

A Medicare supplement plan F may have a higher monthly premium than other plans, but there will be no unexpected out-of-pocket expenses with it. Your copay and deductibles will be covered.

The Purchase Of Affordable Life Insurance

Saturday, August 3rd, 2013

There is an old saying in the life insurance business, that the best kind of life insurance to buy is that which you can afford. This does make a lot of sense because if a person cannot afford something, then they won’t be able to keep it. There is another old saying that says that the only kind of life insurance that is any good, is the kind that is in force when you die.

As tongue in cheek as these statements sound, they do have a lot of the ring of the truth in them. So when someone talks about affordable life insurance, you really need to get to the bottom of what that really means.

Life insurance is really purchased to provide a death benefit in case someone dies. In an ideal situation there should be enough money from life insurance to provide for a family in case of the death of a breadwinner, or breadwinners in the case of two working parents.

There are two kinds of life insurance, which are term and permanent life insurance. Term life insurance provides for coverage only for a limited period of time, such as 20 or 30 years for example. It is cheaper, because it is going to expire on a certain date. This still could work out to a good strategy because in most cases, by the time the policy quits, most of the kids are grown and out on their own.

A permanent policy will usually last until age 100, which is the actuarial equivalent of a lifetime, and it has a cash surrender value, which can be borrowed by the policyholder in an emergency. The cash value is really a reserve that keeps the premium level against the increasing mortality charge, as a person gets older year by year.

Depending on circumstances and desired goals, both serve their purposes, and can be used in combination to solve many problems of coverage.