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Under 65 Health Insurance

Health Insurance Options

It is obvious how expensive health care can be. That’s why it is very important to have health insurance, so you are prepared for when you or your family have medical needs.

Health Insurance allows you to:

  • Be prepared for the unexpected
  • Get preventive services like checkups, that are covered 100%

There are several options when choosing your health insurance.

  1. Marketplace Health Insurance or ACA
  2. Short Term Medical Insurance

Most health plans must cover a set of preventive services without charging you a copayment or coinsurance, when done at a network provider such as:

  1. Abdominal Aortic Aneurysm screening for men of specific ages who have smoked
  2. Alcohol Misuse Screening and Counseling
  3. Aspirin use to prevent cardiovascular disease for men and women of certain ages
  4. Blood Pressure screening for all adults
  5. Cholesterol screening for adults of certain ages or at higher risk
  6. Colorectal Cancer screening for adults over age 50
  7. Depression screening for adults
  8. Diabetes (Type 2) screening for adults with blood pressure
  9. Diet Counseling for adults at higher risk for chronic disease
  10. HIV screening for everyone ages 15-65, and other ages at increased risk
  11. Immunization vaccines for adults
  12. Obesity screening and counseling for all adults
  13. Sexually Transmitted Infection prevention counseling for adults at higher risk
  14. Syphilis screening for all adults at higher risk
  15. Tobacco Use screening for all adults and cessation interventions for tobacco users

Marketplace or ACA

There are different types of Marketplace health insurance plans available to meet different needs.  Some plans restrict your provider choices or encourage you to get care from the plan’s network of doctors and hospitals.

Depending on the number of plans offered in your area, you may find any or all of these types of metal levels—Bronze, Silver, Gold, and Platinum.  As the colors suggest, the benefits are more enhanced as you move from Bronze to Platinum.

There are pros and cons for each option. It is important to choose the right option based on your needs. This is what you need to know as your get started:

  • Open Enrollment is from November 1 to December 15 for a January 1 start date. When enrolling December 16- January 15, it will start Feb 1. There are special instances that allow you to enroll at other times throughout the year, such as losing group health coverage or a change in Medicaid status
  • In some instances, you can get tax credits to help pay for your health insurance

ACA insurance is required to provide Essential Health Benefits for all plans, you will see additional benefits when we compare them side by side in the Marketplace. It includes the following general categories:

  • Ambulatory patient services (or outpatient care)
  • Emergency services
  • Hospitalization
  • Maternity and newborn care (before and after your baby is born)
  • Mental health and substance use disorder services (including counseling and psychotherapy)
  • Prescription Drugs
  • Rehabilitative services and devices (to help people with injuries, disabilities, or chronic conditions gain or recover mental and physical skills)
  • Laboratory services
  • Preventive and wellness services and chronic disease management
  • Pediatric services including oral and vision care

Contact us for more explanation and help in selecting the right policy for you and your family.

Short Term Medical Insurance

These types of plans are a great alternative for consumers looking for major medical coverage that did not qualify for subsidies on ACA or bridging a gap from group insurance to an open enrollment period without a qualifying event or waiting for a new job insurance to become effective. These plans are not regulated by ACA, therefore can be written anytime throughout the year.

Benefits of Short-Term Medical:

  • You can start the coverage quickly, maybe even the next day.
  • You can drop this coverage without any penalties.
  • You can choose from a range of premiums, deductible,s and benefit maximum amounts.
  • You can apply for another term of coverage if needed.
  • You can choose your own doctor and hospital without restriction but may be less expensive by using their network providers.
  • These are great for healthy people but were not designed to cover all of the Essential Benefits of ACA
  • Some plans are renewable for up to 3 years.

These plans typically will not cover your routine office visits, maternity, mental health or preventive care.  They do not cover pre-existing conditions and DO require underwriting.  This means someone with a lot of health issues may not be able to get this type of coverage. Be sure to check the list of exclusions on any plan.

Give us a call to find out if short term insurance is an option for you.

Medicare Supplements

Medicare Supplement (Medigap) Insurance

This is insurance sold by private insurance companies, that can help pay some of the health care costs that Original Medicare does not cover, such as co-payments, coinsurance, and deductibles. This insurance “supplements” Original Medicare. Original Medicare pays first and then the supplement pays its portion. A Medigap plan is different from a Medicare Advantage plan. Medicare Advantage is a way to get Medicare benefits, but Medigap supplements your Original Medicare benefits.

What you should know about Medigap plans:

  1. You must have Medicare Part A and Part B.
  2. If you have a Medicare Advantage Plan and wish to go back to Original Medicare with a supplement, first make sure you can leave the Advantage plan, then you can enroll in the Medigap plan before the policy begins.
  3. You pay a monthly premium to the private insurance company for your supplement, but you must also pay the Part B premium to Medicare.
  4. A Medigap policy can only cover one person. If you and your spouse want a Medigap plan, then you need to get 2 separate policies.
  5. You can get a supplement from any carrier licensed in your state to sell one.
  6. Any standard Medicare Supplement policy is guaranteed renewable, even if you have health issues. This means the insurance company can not cancel your Medigap policy if you pay the premium.
  7. Prescription Drugs are not covered in a Medigap policy, if you want drug coverage you will have to join a Medicare Prescription Drug Plan (Part D) offered by private insurance companies.
  8. It is illegal for anyone to sell you a Medigap policy if you have a Medicare Advantage Plan unless you are switching back to Original Medicare.

Comparing Medicare Supplements

Medicare Supplement policies are the same across the US and must follow federal and state laws designed to protect you. Insurance companies can only sell a “standardized” policy categorized in most states by letters. (See the chart) All policies offer the same basic benefits but some offer additional benefits, so you can choose which one meets your needs. As you can see from the chart, there are many options to choose. As licensed agents, we can help you understand these plans and choose the right plan for you.

Medicare Advantage Plans

Medicare Advantage Plans (Part C) are health plans from private insurance companies. These plans generally cover all Medicare-covered healthcare and can include prescription drug coverage. There are 4 types:

  • Medicare Health Maintenance Organization (HMO)
  • Preferred Provider Organization (PPO)
  • Private Fee -for-Service Plans
  • Medicare Special Needs Plans

These plans generally offer extra benefits and lower co-payments than on Original Medicare. These are managed care plans that may require you to see doctors that belong to the plan or go to certain hospitals for services.

Generally, Medicare Advantage plans include benefits such as dental, vision, hearing, OTC (health care products) and gym membership, many plans offer more than this also.

There are special Medicare Advantage plans available specifically to honor the people that have served in our Military. These plans offer many additional benefits.

To join a Medicare Advantage Plan, you must have Medicare Part A and Part B. You will need to continue to pay your monthly Part B premium to Medicare.  The standard Part B premium amount for 2023 is $164.90 (depending on your income).

When you can enroll

Medicare limits when you can join, switch, or drop a Medicare Advantage Plan. You can join anytime beginning 3 months before the month of your 65th birthday and 3 months after the month you turned 65.

If you are on disability and have Social Security, you can join 3 months before to 3 months after month 25 of your disability.

You can switch or drop your Medicare Advantage plan during Annual Enrollment Period each year between Oct 15-December 7th.

Please contact us to go over all of your needs in detail and help you find a plan that fits you.

Part D Prescription Drug Plans

These policies help cover prescription drug costs. You can sign up for Part D Prescription Drug Coverage 3 months before your 65th birthday. If you do not enroll by 3 months after your 65th birthday, you will get a late enrollment penalty that you must pay every month for the duration of your drug coverage.  If you work passed your birthday and have credible coverage, you will not incur the late penalty, but you must enroll within 63 days of losing the credible coverage to avoid a penalty at that time.  The late enrollment penalty is calculated by taking 1% times the national average premium times the number of months you did not have coverage.

If you are already in a Part D stand-alone drug plan or a Medicare Advantage plan that includes drug coverage, you can switch plans during the annual enrollment period from Oct 15-Dec 7th each year.

How Does It Work?

Each year the drug coverage rules change, but they are based on the true out pocket cost or actual retail cost of the medicines. There are 4 stages:

  • Deductible Stage- presently, during the deductible stage, if your plan has a deductible, you will pay the first $505 (2023) then move to the Initial Coverage Phase
  • Initial Coverage Phase-presently, you pay copays until the retail cost gets up to $4660
  • Coverage Gap (Donut Hole) Phase- then in the coverage gap phase, you will pay 25% of all medicines until your retail cost gets up to $7400
  • Catastrophic Coverage Phase- finally in this stage, you will pay whichever is greater, either 5% of the total drug cost or $4.15 for each generic and $10.35 for each brand name drug

How to choose a plan

It is vital to review your Part D coverage every year, especially if you are taking any new medicines.

You can start by looking on Medicare.gov   Enter your medicines and pharmacies to see all the plan options.  You can see the monthly costs for each medicine and the differences in pharmacy.

Each plan has a preferred, standard, or out of network pharmacy. Most plans have a mail order option as well. They can vary drastically from plan to plan.

Contact us to check your medications for you, to make sure you are on the best suited plan and explain any details you do not understand. Then let us do the enrollment for you.

Individuals with low annual incomes may qualify for Extra Help from Medicare.  Extra help helps pay your Part D premiums and out of pocket drug costs. Enroll using this link. https://www.ssa.gov/medicare/part-d-extra-help

Hospital Indemnity

To Watch a Short Video About Hospital Indemnity Click Here

Ask yourself these questions:

  • If hospitalized, do you have the money needed for your part of the costs that your insurance does not cover?
  • If you need to go to a Rehab facility after an accident, or surgery, or a stroke for example, do you have the money put away for your portion that insurance does not pay for?
  • Do you have the money to go to the Emergency Room?
  • If you get a cancer diagnosis, will the constant doctor visits, loss of work, and medical expenses put a burden on you or your family?

All of these can be very costly depending on your insurance coverage and savings.

What is Hospital Indemnity Insurance?

These plans supplement your existing health insurance by paying for hospital stays.  They pay you cash for each day you spend in the hospital to be used as you see fit while you recover.  The money is not paid to the hospital, it is paid to you! The coverage works if you are covered by individual health insurance, group medical plans or Medicare. There are always copays and deductibles to meet and this will take the stress out of coming up with that money.

Some plan options pay you additional benefits beyond hospital stays.  Ambulance, Skilled nursing facility, outpatient surgery, cancer diagnosis, ER visit, lump sum hospital stay, and even doctor visits can put money back in your pocket.

Benefits:

  • Hospital Indemnity Plans are completely customizable to make them match up with your current or future insurance coverage.
  • They will cover an individual, a couple or a family.
  • Designed to Relieve stress of medical bills piling up, causing slower recovery times.
  • They can be written from ages 18-89 and are guaranteed renewable as long as you make the payments.
  • The rates do not go up as you age and benefits are restored after 60 days

Contact us today to run some numbers and see what options you would like to take advantage of for your future medical “inconveniences.”

Critical Illness Insurance

To Watch a Short Video About Critical Illness Click Here

What is Critical Illness Insurance?

This is a Limited Benefit Policy, not a comprehensive major medical plan or a Medicare supplement policy.

This type of insurance is designed to reduce the emotional and financial stress that comes with the diagnosis of and recovery from a critical illness. This should help families shrink or close the financial gap and focus on getting well, not paying the bills. With the advancement of modern medicine, people will continue to survive illnesses and diseases that at one time were fatal. The cash payout from a Critical Illness policy can provide valuable financial support when it’s needed most and with more people surviving serious illnesses and disease now more than ever, the need for more complete healthcare planning can be crucial.

What illnesses are covered?

These plans cover for illnesses such as Cancer, Heart Attack, Stroke, and Alzheimer’s disease.  They usually pay out as one lump sum upon diagnosis, but some plans will allow a monthly cash benefit.  You have complete discretion on how to spend the money, it could be used for out of network medical costs, experimental treatments or even to pay your mortgage or rent.  You do not have to show any bills or receipts, there are no strings attached. Besides the most common occurring critical illnesses, today’s typical plans cover a broad range of critical illnesses such as:

  • Alzheimer’s Disease
  • Blindness
  • Brain Tumor
  • Cancer
  • Coma
  • Coronary Artery Bypass
  • Heart Attack
  • HIV/AIDS
  • Kidney Failure
  • Major Organ Transplant
  • Parkinson’s Disease
  • Paralysis
  • Stroke

While we don’t consider Critical Illness insurance a replacement for your health insurance, it is an important supplement benefit that can provide much needed financial relief and flexibility.

Take time to explore these Critical Illness options and planning can protect your family and ease financial concerns when you need it the most. Many companies have a return of premium benefit that can be added to the policy, so if you happen to be in the group that does not suffer one of those diseases, you can get all of your money back.  You really have nothing to lose.

Give us a call today to get a quote on a plan that you feel would best suit your needs.

Critical Illness Insurance

What is Critical Illness Insurance?

This is a Limited Benefit Policy, not a comprehensive major medical plan or a Medicare supplement policy.

This type of insurance is designed to reduce the emotional and financial stress that comes with the diagnosis of and recovery from a critical illness. This should help families shrink or close the financial gap and focus on getting well, not paying the bills. With the advancement of modern medicine, people will continue to survive illnesses and diseased that at one time were fatal. The cash payout from a Critical Illness policy can provide valuable financial support when it is needed most and with more people surviving serious illness and disease now more than ever, they need for more complete health care planning can be crucial.

What illnesses are covered?

These plans cover for illnesses such as Cancer, Heart Attack, Stroke, and Alzheimer’s disease. They usually pay out as one lump sum upon diagnosis, but some plans will allow a monthly cash benefit.  You have complete discretion on how to spend the money, it could be used for out of network medical costs, experimental treatments or even to pay your mortgage or rent.  You do not have to show any bills or receipts, there are no strings attached. Besides the most common occurring critical illnesses, today’s typical plans cover a broad range of critical illnesses such as:

  • Alzheimer’s Disease
  • Blindness
  • Brain Tumor
  • Cancer
  • Coma
  • Coronary Artery Bypass
  • Heart Attack
  • HIV/AIDS
  • Kidney Failure
  • Major Organ Transplant
  • Parkinson’s Disease
  • Paralysis
  • Stroke

While we do not consider Critical Illness insurance a replacement for your health insurance, it is an important supplement benefit that can provide much needed financial relief and flexibility.

Take time to explore these Critical Illness options and planning can protect your family and ease financial concerns when you need it the most. Many companies have a return of premium benefit that can be added to the policy, so if you happen to be in the group that does not suffer one of those diseases, you can get all your money back.  You really have nothing to lose.

Give us a call today to get a quote on a plan that you feel would best suit your needs.

Dental Coverage

Dental Coverage

Proper dental care can be an important part of our well-being. Some kind of dental insurance can help you ensure the health of your teeth and gums.  If you have to pay the entire dentist bill on your own, you may find that difficult to budget.  Without dental coverage, you may skip regular cleanings and checkups, which could lead to serious dental health problems in the future.

There are many types to consider such as Preferred Provider Organizations (PPO), Health Maintenance Organizations (HMO) and discount dental plans.  Coverage differs from plan to plan and provider to provider. In general, basic dental insurance coverage includes 3 categories:

  1. Preventive Dental Care: Almost all dental plans cover basic dental costs associated with cleanings, checkups, and other dental procedures to prevent tooth and gum disease. This is important to keep up with regular dental care to prevent more complicated and costly problems.
  2. Basic Dental Care: Most dental plans and dental insurance also cover basic dental procedures like fillings, tooth extractions, chipped teeth, and other basic procedures.  Most plans cover a significant portion of basic dental care, it makes sense to select a dental care insurance provider that covers as many dental care basics and procedures as possible.
  3. Major Dental Care: Not all dental insurance plans cover major dental care, some do cover at least a portion of these costs. Major dental includes procedures such as dental surgery, orthodontics, denture work and other large procedures. If you know you will need this type of coverage, then you should look for a plan that will pay for a large percentage of those expenses.

Deductibles and waiting periods vary from plan to plan.

Contact us to go over all the options and pricing.

Vision Coverage

Vision Insurance helps cover the cost of routine eye exams, contact lenses and glasses.  Some plans also pay for corrective procedures like laser eye surgery.  Most plans will include one pair of glasses or contacts a year.

A routine eye exam may uncover typical eye issues like nearsightedness or farsightedness, but it could also detect other medical issues like diabetes, glaucoma, pink eye, or macular degeneration. Depending on that outcome, it would either bill as medical or vision.

Vision Insurance generally covers a percentage of the following services:

  • Yearly eye exam
  • Eyeglass lenses
  • Eyeglass frames
  • Contact lenses
  • LASIK correction procedures at a discounted rate

Some plans pay annually and some pay every 2 years for lenses and frames.

Vision care plans contract with eye care professionals. Some plans are Preferred Provider Organizations (PPO) where your eye care is managed by a network of providers. You could use out of network providers but would pay a greater cost share.  Others plans use certain providers to receive a discount of the offered services.

Generally, eye care offices and networks include optometrists and general ophthalmologists, but some plans can include providers that perform refractive eye surgery, LASIK or other vision correction procedures.

Do you need vision insurance?

If you or a member of your family wear corrective lenses and need regular eye exams due to changes in the lens prescription, it would probably be in your best interest to purchase vision care insurance.  If you do not wear or need glasses, you may be able to get by with a periodic eye exam through your health insurance.

We are not here to push you to buy something.  We are only looking out for you and your family to protect you from unnecessary large medical expenses that could be avoided.

Call us today to talk about your options.

Vision Coverage

Vision Coverage

Vision Insurance helps cover the cost of routine eye exams, contact lenses and glasses. Some plans also pay for corrective procedures like laser eye surgery.  Most plans will include one pair of glasses or contacts a year.

A routine eye exam may uncover typical eye issues like nearsightedness or farsightedness, but it could also detect other medical issues like diabetes, glaucoma, pink eye, or macular degeneration. Depending on that outcome, it would either bill as medical or vision.

Vision Insurance generally covers a percentage of the following services:

  • Yearly eye exam
  • Eyeglass lenses
  • Eyeglass frames
  • Contact lenses
  • LASIK correction procedures at a discounted rate

Some plans pay annually and some every 2 years for lenses and frames.

Vision care plans contract with eye care professionals. Some plans are Preferred Provider Organizations (PPO) where your eye care is managed by a network of providers. You could use out-of-network providers but would pay a greater cost share.  Other plans use certain providers to receive a discount on the offered services.

Generally, eye care offices and networks include optometrists and general ophthalmologists, but some plans can include providers that perform refractive eye surgery, LASIK, or other vision correction procedures.

Do you need vision insurance?

If you or a member of your family wear corrective lenses and need regular eye exams due to changes in the lens prescription, it would probably be in your best interest to purchase vision care insurance.  If you do not wear or need glasses, you may be able to get by with a periodic eye exam through your health insurance.

We are not here to push you to buy something. We are only looking out for you and your family to protect you from unnecessary large medical expenses that could be avoided.

Call us today to talk about your options.

Long Term Care Insurance

Video on Long Term Care

To Watch a Short Video About Long Term Care Click Here

What is Long Term Care Insurance?

Long Term Care is services that helps meet the medical and non-medical needs of people with chronic illness or disabilities who cannot care for themselves for long periods of time. These services include dressing, bathing, transferring (to or from bed to chair), incontinence, eating and using the bathroom. These services can be provided at home, in the community, in assisted living facilities or in nursing homes.

Long term care insurance was developed to provide the needed financial protection against the cost of long- term care that regular health insurance and Medicare do not cover. Long-term services can last years and can be very expensive.  These insurance policies can be purchased based on the need for care.  Some plans pay a daily benefit for a duration of time like 2 or 3 years and some pay until a maximum dollar amount has been paid.  You can build the policy with an inflation rider to use the premiums as a tax deduction and to keep up with the rising cost of health care.

Who should get this coverage and why do I need it?

  • It is never too early to consider long term care insurance, the younger you are the less expensive it will be. Anyone age 45 or older, NOW is the time to start planning.
  • The coverage is guaranteed renewable for life if you make the payments
  • You have to health qualify for these products, so if you wait until something has happened and you need the services, it will be too late.
  • 70% of all people age 65 and up will use long term care at some point in their lives. That is 7 out of 10 people. That is a very high number to consider.
  • This coverage will protect your retirement assets that you worked your whole life to achieve.
  • This will reduce the emotional and financial stress on you and your family with care giving responsibilities.
  • You can make the decision to stay in your home for care, or chose the assisted living or nursing home facility of your choice.

Myths surrounding Long Term Care

1. I am probably already covered for long term care.
ANSWER: Most people think their insurance covers long term care expenses, but that is not true. Long term care is NOT covered on other insurances.  Long term care insurance policies cover day to day personal care assistance, when you are not able to perform everyday tasks like bathing and dressing
2. Medicare or Medicaid will cover my long-term care.
ANSWER:Medicare does not cover long term care. Medicare pays for skilled care in a nursing home, only for short periods of time    (up to 100 days), while recuperating following a hospital stay.  Medicare does not cover personal or custodial care costs. Medicaid does pay for long term care, but only after you spend down all of your assets and income.
3. Long term care is only for the elderly.
ANSWER: Long term care is not just for the elderly, younger people may need it due to unexpected illnesses, diseases, injuries, or  accidents.
4.  I won’t need long term care insurance because my family will be able to care for me.
ANSWER: Families do and will help provide care for you, but when it is time for professional help or staying in a nursing home, they generally cannot afford to pay those costs for you.

5.  I can’t afford long term care insurance.
 ANSWER: Long term care insurance can be more affordable than you thought and can be tailored to meet your needs and budget.               The costs can be managed by making a retirement plan that is right for you. The younger you are when you purchase this insurance, the lower the premiums.

How much Long-Term Care Insurance do I need?

The cost of these policies vary by state and by region. Where you retire helps determine the amount of coverage you will need. The type and duration of care, the provider you use and where you live are huge factors.
In 2021, the national average costs for long term care in the US was:

  • $7756 a month for semi private rooms in a nursing home
  • $8821 a month for private rooms in a nursing home
  • $4300 a month for assisted living facility
  • $74 a day for services in an adult day care center

In 2020, Missouri had the cheapest semi private room at $5080 and private room at $5749 per month, but Alaska had the most expensive with semi private rooms for $37,143 and private rooms for $36,378 per month. So, you can see geography makes a difference.

It is projected for the national average costs for long term care in the US to be:

2030 cost of semi-private room will be $10,423 and private room will be $11,855

2040 cost of semi-private room will be $14,008 and private room will be $15,932

Example:  In Missouri for a private room, it is $5749 a month in 2020 x 12 months = $68,988 per year, (Factor in 3.5% medical inflation rate)  $97,314 per year in 10 years or  $132,630 per year in 20 years

Average length of time for men is 2.2 years x $132,630 = $291,786
Average length of time for women is 3.7 years x $132,630 = $490,731
Alzheimer’s patients average is 8 years x $132, 630 = $1,061,040

These numbers may be confusing to you, please reach out to us and we can explain exactly how we came up with those figures. If you want to do a calculation for another state, we can do that also.  Imagine how much more the Alaska numbers would go up with the pricing being so much higher there.

 

Different types of care

Long Term Caretakes place in a nursing home that provides custodial care, but may include skilled care, intermediate care, and custodial care.  The patient can be transferred within the facility as their needs change.  Nursing homes provide a great range of 24-hour care.
Home Health Care is used for recovering from an injury or illness and 24-hour care is not needed.  This is most often custodial care provided by visiting nurses, therapists, or home health aides. Services may include things like respiratory therapy, cleaning and bandaging of wounds, monitoring health and assistance with bathing and dressing.
Adult Day Care centers provide care in a group setting for aged or disabled people who live at home, and/or may need help with the basic activities of daily living due to physical or mental impairment. These centers usually provide elderly people with social interaction, therapeutic activities, preventive health services, and nutritional meals.
Hospice Care is compassionate care for those terminally ill patients nearing the end of life. This care tries to make the patient as comfortable as possible until the end, it can take place in a facility or at home.
Respite Care provides some time off for the caregiver (usually a relative) who regularly provides care for an elderly or disabled person. This can be offered in a community center, nursing home, or at home through a service.

Traditional Long Term Care vs Hybrid Long Term Care

With traditional long term care insurance, you pay the premiums, and when you need it due to age or illness, the policy pays out a daily benefit.  Some people feel they are “throwing away “money if they die and never use the insurance.

  • These plans have huge flexibility for monthly benefits, benefit period, inflation protection and waiting period.
  • Traditional long-term policies can have the option of being tax qualified.
  • They are guaranteed renewable if you pay the premium.
  • Premiums are paid monthly, quarterly, semi-annual, or annually.

Hybrid long term care plans allow you to draw funds from the policy for your long-term care, and the insurance company pays for the care when the funds run out. With these plans, if you die without using the coverage, your beneficiary receives the money as a death benefit (like life insurance).

  • If you pay your premiums, you will have a contractually guaranteed death benefit, guaranteed cash value and guaranteed amount of long-term care coverage.
  • These plans allow you to choose your options at the beginning but very little flexibility afterwards.
  • Some of these plans can be purchased as a one-time lump sum and others can be paid over a short period of time, which can make them very costly.
  • Hybrid policies are not tax deductible because they are not tax qualified.
  • Many hybrid plans do not require a medical exam to get a policy as they use simplified underwriting.

Life Insurance/Final Expense

Life Insurance Explained

Life insurance is a policy in which the insurer pays out the agreed death benefits to the named beneficiaries at the policyholder’s death. There are many reasons people take out these plans:

  • Used to pay for your funeral and final medical expenses
  • Used to pass on a legacy to your dependents, create an estate, or give a donation to your favorite charity
  • Used if the primary income earner in the household passes, to safeguard your dependents against financial hardship and losing the family home to debt

Types of Insurance

Term Life Insurance-insurance you pay for during a specific amount of time or term, from 1 to 30 years

  • You get to select the amount of the death benefit to meet your needs
  • These policies are great options when used to help cover the cost of a mortgage for spouses and dependents
  • Covers short-term needs and debts
  • Can pay for your kid’s college education
  • Premiums can be paid monthly, quarterly, semi-annual, or annually, they will be a set amount during the term
  • These do not accumulate cash value, therefore offer lower premiums than other life insurance products with the same face value
  • Payout excludes suicide and other self-inflicted conditions

Universal Life Insurance-permanent insurance that has the potential to accumulate cash value with an investment savings component.

  • Allows you to adjust your death benefit and premiums to accommodate your protection needs
  • Guaranteed death benefit (income tax-free)
  • The accumulated cash value is tax-deferred
  • You can access your cash value to supplement your retirement, pay for education, or other personal needs
  • Can skip premium payments if your account has sufficient value to be taken from accrued value
  • Has the potential to earn a higher rate of return than a whole-life policy, but the rate could drop

Whole Life Insurance-insurance that remains active throughout a policyholder’s life unless you surrender the policy or stop paying premiums

  • Death benefits can be selected to meet your needs and are guaranteed
  • Premiums are fixed and can be paid monthly, quarterly, semi-annual or annually,
  • Policy accumulates cash value that grows on a tax-deferred basis
  • The monthly premium is higher than the term policy because you gain cash value
  • Can borrow against it for any reason, but must be paid back with interest or the amount will be deducted from the payout to your beneficiary at the time of your death
  • Guarantees 100% return on premium

Final Expense Insurance– insurance that helps provide the money needed to pay medical bills, funeral expenses, legal fees, or unpaid bills

  • Helps protect your loved ones from unnecessary financial stress when you die
  • Typically covers you to age 100
  • Simpler to obtain than whole-life or term policies
  • Offers never changing premiums with permanent coverage

Funeral Expenses include the funeral service, cemetery plot and headstone, cost of the casket and funeral procession, the meal or celebration of life.  Don’t make your loved ones worry about costs when the only thing they should worry about is grieving.

Simplified Issue Life Insurance

  • You need to answer some medical questions but not medical reports or exams required
  • Coverage amounts available range from $1000 to $150,000
  • Term options include a 10 year term, 15 year term,20 year term, 25 year term or term to 100 policy
  • Term to 100 and whole life policies provide lifetime coverage at a guaranteed fixed rate
  • Some permanent insurance policies include cash surrender values and reduced paid up insurance
  • Most policies have an accidental death benefit that pays 1 to 5 times the base amount
  • Some companies have a living benefit which pays up to 50% of the death benefit in the event you are diagnosed with a terminal illness where the life expectancy is less than 12 months
  • Non- smoker rates are usually reduced by 20 to 40%

Guaranteed Issue Life Insurance

  • Guaranteed acceptance with no medical questions
  • Coverage amounts available range from $5000 to $25,000
  • Premiums and face amounts may be guaranteed for life
  • The accidental death benefit of 1 to 5 times the death benefit is often included
  • If natural death occurs during the first 24 months of coverage, the premiums are reimbursed with interest, full coverage starts on day 1 of month 25
  • Some companies have a living benefit that pays up to 50% of the death benefit in the event you are diagnosed with a terminal illness where the life expectancy is less than 12 months

There is a direct correlation between premium rates charged and risk.  The fewer the health questions asked on the application, the higher the risk to the companies and higher rates.  The more elaborate the underwriting process is the lower the risk and the better the rates.

Which insurance is right for you?

The answer depends on what you are trying to accomplish by having a life insurance policy.  If you are concerned about providing income to a spouse for life, funding retirement, or passing wealth to a future generation, then your permanent life insurance is better suited to meet those goals.  If it is for a temporary goal, then term insurance is probably best.  Ask yourself why you need your life insurance policy.

Call us today to talk about all of your options and pricing so your family doesn’t have to worry about it tomorrow.