Almost every day, I talk to people who are worried about the health care system in this country…not necessarily the doctors, nurses and hospitals, but the insurance part of the health care system. Business owners (and their employees) are on edge either because they got a 25%+ increase on their health insurance premiums, or they have had to raise their deductibles to uncomfortable levels to keep their insurance costs low.
I know there are a lot of different things that have affected their need to change their insurance coverage, but there is hope. I am not saying that there is hope in the direction the current administration is driving this health care coverage vehicle, nor in the change they promised. What I am saying is that there is an opportunity for stability in the health insurance lives of the millions of Americans affected by this change. Every day people are turning to Supplemental Insurance. They are finding that SI is a good way to help them bridge the gap between their health insurance coverage and their own out-of-pocket responsibilities.
Supplemental Insurance does not pay the doctor, hospital, technician, facility or therapist (if you are in a health care profession and I missed you, I apologize). It puts tax free (usually) money into your pocket and leaves to your discretion how you spend the money. If you need it for doctor’s bills, fine. If you missed work because of an illness or injury and need to use it to pay that illusive utility bill, fine. If you want to put it in your “fun money slush fund,” it does not matter.
The bottom line is that with Supplemental Insurance (like AFLAC) you have the ability to meet your financial obligations, even in the face of serious medical events.
Showing posts with label Aflac. Show all posts
Showing posts with label Aflac. Show all posts
Friday, January 28, 2011
Monday, August 2, 2010
Do I Need Cancer Insurance?
Anyone Can Be Diagnosed With Cancer
Cancer is a scary word. Despite the best efforts of doctors and researchers, cancer remains a concern for many individuals and families. People from all walks of life are at risk, regardless of age, gender or ethnic background. In the US, men have less than a one-in-two risk of developing cancer during their lifetime; for women, the risk is slightly higher than one-in-three.(i) Advances in pharmaceuticals, surgical procedures, and alternative treatments have improved the chances of treatment and survival, and people living with cancer have a much longer life expectancy. But with improved treatments and increasing survival rates comes increased costs.
The Financial Impact of a Cancer Diagnosis Can Be Overwhelming
A strong major medical plan is your first defense against medical expenses when facing a cancer diagnosis, but with rising deductibles, people are increasingly facing a substantial increase in their out-of-pocket expenses before their major medical plan kicks in. According to The American Journal of Medicine, more than 62% of bankruptcies in 2007 were related to medical causes.(ii)
If you are diagnosed with cancer, you should spend your time focusing on getting better, not worrying about your finances. Some expenses are not going to be covered by major medical insurance – including travel, food, lodging, child care and household help. Keep in mind that life at home doesn’t stop either. Car payments, the mortgage, and utilities will continue to come due, whether you can work or not.
Fortunately There Is Cancer Insurance
Cancer insurance can help ease the financial worries that come with a cancer diagnosis. It will help fill in the gaps left by the major medical insurance. There are several cancer insurance options available to people, and trying to figure out which one works best for you and your family can be very confusing. It makes sense to have the tools to find the right insurance plan and the right insurance carrier.
When considering which insurance company to go with, make sure you ask the right questions! Consider the following factors:
1-The Insurance Carrier
There are many different insurance providers, so it is important to consider the company standing behind the product. What do you know about them? How long have they been around? What about their financial stability?
2-Policy Benefits, Limitations and the Definition of Cancer
Make sure the policy you’re considering covers the cost of treating recurrences or another form of cancer. And look for how the policy defines cancer. Most people are not familiar with the key benefits of a cancer policy or how plans are structured. Look for:
- A benefit for the internal diagnosis of cancer
- Strong benefits for radiation and chemotherapy
- Generous Hospitalization Benefits
- Comprehensive Benefits for Surgery
- Benefits for transportation and lodging in case travel is required.
- End-of-Life Care Benefits if the cancer becomes terminal.
3-Rate Stability
Annual rate increases are often considered the norm, but it is possible to find a provider that does not regularly raise premiums. Ask your insurance representative whether the company you’re considering has a history of rate stability.
4-Claims
You’ll find out just how reliable your insurer is when you file a claim. Before you buy, research how quickly they process claims. Do the benefits require coordination with other coverage before the benefits are issued?
5-Spouse & Dependents
Not all policies offer benefits or the same level of benefits to spouses and children. If you are the primary insured, make sure your policy offers coverage for the rest of your family equal to yours.
6-Early Detection & Cancer Prevention
Many of today’s tests and scans identify cancer at its earliest. Some cancer policies offer when you take advantage of those tests, including annual mammogram or prostate screening tests.
7-Control
Is the policy guaranteed renewable or can your employer or insurance company terminate it at any time? Will your plan be canceled if the employer changes plans? Is the policy portable – Can you take it with you if you leave your job?
8-Underwriting
Insurance companies’ underwriting questions vary, but one commonly asked question is, “How long have you been cancer-free?” Some companies will not cover you unless you have been cancer-free for at least 10 years. Look for a company that is less strict in its underwriting requirements, and that will cover you if your cancer recurs.
i - Cancer Facts and Figures 2009, American Cancer Society
ii - Medical Bankruptcy in the United States, 2007: Results of a National Study, (Published in 2009), The American Journal of Medicine.
Cancer is a scary word. Despite the best efforts of doctors and researchers, cancer remains a concern for many individuals and families. People from all walks of life are at risk, regardless of age, gender or ethnic background. In the US, men have less than a one-in-two risk of developing cancer during their lifetime; for women, the risk is slightly higher than one-in-three.(i) Advances in pharmaceuticals, surgical procedures, and alternative treatments have improved the chances of treatment and survival, and people living with cancer have a much longer life expectancy. But with improved treatments and increasing survival rates comes increased costs.
The Financial Impact of a Cancer Diagnosis Can Be Overwhelming
A strong major medical plan is your first defense against medical expenses when facing a cancer diagnosis, but with rising deductibles, people are increasingly facing a substantial increase in their out-of-pocket expenses before their major medical plan kicks in. According to The American Journal of Medicine, more than 62% of bankruptcies in 2007 were related to medical causes.(ii)
If you are diagnosed with cancer, you should spend your time focusing on getting better, not worrying about your finances. Some expenses are not going to be covered by major medical insurance – including travel, food, lodging, child care and household help. Keep in mind that life at home doesn’t stop either. Car payments, the mortgage, and utilities will continue to come due, whether you can work or not.
Fortunately There Is Cancer Insurance
Cancer insurance can help ease the financial worries that come with a cancer diagnosis. It will help fill in the gaps left by the major medical insurance. There are several cancer insurance options available to people, and trying to figure out which one works best for you and your family can be very confusing. It makes sense to have the tools to find the right insurance plan and the right insurance carrier.
When considering which insurance company to go with, make sure you ask the right questions! Consider the following factors:
1-The Insurance Carrier
There are many different insurance providers, so it is important to consider the company standing behind the product. What do you know about them? How long have they been around? What about their financial stability?
2-Policy Benefits, Limitations and the Definition of Cancer
Make sure the policy you’re considering covers the cost of treating recurrences or another form of cancer. And look for how the policy defines cancer. Most people are not familiar with the key benefits of a cancer policy or how plans are structured. Look for:
- A benefit for the internal diagnosis of cancer
- Strong benefits for radiation and chemotherapy
- Generous Hospitalization Benefits
- Comprehensive Benefits for Surgery
- Benefits for transportation and lodging in case travel is required.
- End-of-Life Care Benefits if the cancer becomes terminal.
3-Rate Stability
Annual rate increases are often considered the norm, but it is possible to find a provider that does not regularly raise premiums. Ask your insurance representative whether the company you’re considering has a history of rate stability.
4-Claims
You’ll find out just how reliable your insurer is when you file a claim. Before you buy, research how quickly they process claims. Do the benefits require coordination with other coverage before the benefits are issued?
5-Spouse & Dependents
Not all policies offer benefits or the same level of benefits to spouses and children. If you are the primary insured, make sure your policy offers coverage for the rest of your family equal to yours.
6-Early Detection & Cancer Prevention
Many of today’s tests and scans identify cancer at its earliest. Some cancer policies offer when you take advantage of those tests, including annual mammogram or prostate screening tests.
7-Control
Is the policy guaranteed renewable or can your employer or insurance company terminate it at any time? Will your plan be canceled if the employer changes plans? Is the policy portable – Can you take it with you if you leave your job?
8-Underwriting
Insurance companies’ underwriting questions vary, but one commonly asked question is, “How long have you been cancer-free?” Some companies will not cover you unless you have been cancer-free for at least 10 years. Look for a company that is less strict in its underwriting requirements, and that will cover you if your cancer recurs.
i - Cancer Facts and Figures 2009, American Cancer Society
ii - Medical Bankruptcy in the United States, 2007: Results of a National Study, (Published in 2009), The American Journal of Medicine.
Monday, July 19, 2010
Traditional Health Insurance Plans vs. Indemnity Policies
I began my career as a Supplemental Insurance consultant over 5 years ago. I constantly meet with people who have heard of the types of products someone in my field offers, but they have a hard time understanding exactly how it works. To increase understanding, I thought it would be good to put some information on my blog.
What is the difference between “traditional” Health Insurance and an Indemnity Policy?
As I wrote about in my last posting, a traditional health insurance plan is designed to take care of a majority of medical bills, typically after deductibles and copayments are satisfied. This may include bills from the doctor, hospital, urgent care facility, surgical center, hematology lab, sleep center, etc., etc., etc. The insured will often have co-insurance to contribute toward the bill above and beyond their copayment or deductible.
The payments from the insurance company are made to the doctor or facility; never to the policyholder.
An Indemnity Policy does NOT have to be paid to the medical provider. These types of plans are used to indemnify the policyholder (or compensate in the event of an injury, illness or loss). The money from an indemnity plan can be provided to either the policyholder or the doctor.
Some indemnity plans may pay the policyholder more than what the provider is charging. The policyholder can pocket the difference. In other cases the policyholder may try to negotiate with their provider to lower the cost of treatment if they pay cash.
Other indemnity plans (such as those offered by Aflac) are not designed to cover all medical expenses. Rather, they are meant to supplement a traditional medical plan and strengthen coverage that is already in place. And the cost is (in most cases) much less than one would expect.
The claims paid out by these indemnity companies are mostly paid to the policyholder. They are free to use the money they receive in any manner they choose, which means there is no obligation apply it toward medical bills. If they need the money to put food on the table, gas in the car or keep the lights on at home, they can. If they wish to put toward the doctor’s bills, they can. It is their choice.
Indemnity plans are a fantastic way to help reign in the unexpected expenses associated with an illness or injury. Supplemental insurance does not replace traditional insurance, but they can enhance it and make it work better. That’s why I say that “Without it, No Insurance Is Complete!”
What is the difference between “traditional” Health Insurance and an Indemnity Policy?
As I wrote about in my last posting, a traditional health insurance plan is designed to take care of a majority of medical bills, typically after deductibles and copayments are satisfied. This may include bills from the doctor, hospital, urgent care facility, surgical center, hematology lab, sleep center, etc., etc., etc. The insured will often have co-insurance to contribute toward the bill above and beyond their copayment or deductible.
The payments from the insurance company are made to the doctor or facility; never to the policyholder.
An Indemnity Policy does NOT have to be paid to the medical provider. These types of plans are used to indemnify the policyholder (or compensate in the event of an injury, illness or loss). The money from an indemnity plan can be provided to either the policyholder or the doctor.
Some indemnity plans may pay the policyholder more than what the provider is charging. The policyholder can pocket the difference. In other cases the policyholder may try to negotiate with their provider to lower the cost of treatment if they pay cash.
Other indemnity plans (such as those offered by Aflac) are not designed to cover all medical expenses. Rather, they are meant to supplement a traditional medical plan and strengthen coverage that is already in place. And the cost is (in most cases) much less than one would expect.
The claims paid out by these indemnity companies are mostly paid to the policyholder. They are free to use the money they receive in any manner they choose, which means there is no obligation apply it toward medical bills. If they need the money to put food on the table, gas in the car or keep the lights on at home, they can. If they wish to put toward the doctor’s bills, they can. It is their choice.
Indemnity plans are a fantastic way to help reign in the unexpected expenses associated with an illness or injury. Supplemental insurance does not replace traditional insurance, but they can enhance it and make it work better. That’s why I say that “Without it, No Insurance Is Complete!”
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