Is Burial Insurance Necessary For Me?

April 25, 2013 by · Leave a Comment

burial-insuranceNearly everybody is aware of life insurance and its benefits. However, there is one type of life insurance that is not as well known to the average consumer. It is known as funeral insurance, final expense insurance, or most commonly, burial insurance.

In my professional life, there are generally two circumstances where the topic of burial insurance comes up. The first is when a client or prospect comes to me and their friend just purchased or heard about a final expense policy, and now they want to know if they should get one too. The second situation is when I’m meeting with a client and realizing that they probably lack the funds and/or insurance coverage to pay for their own funeral in the event of their demise.

Many people do not realize how much final expenses can tally up to. The average funeral service in the United States is over $10,000. Between a casket, burial plot, flowers, funeral home, transportation, etc., it is easy to see how costs can add up quickly.

This is where burial insurance comes in. Some people financially just cannot afford a larger term life insurance plan. What they often do not realize is they could qualify for a very inexpensive burial policy that will remove the financial burden of their funeral costs from their loved ones. Even some of the most financially strapped individuals I have met with, were able to pay for a policy and rest easy knowing their family was not going to have to scrape together the money to fund their final expenses.

In addition to removing the financial burden from loved ones, a burial policy can also allow an individual to plan out their final wishes. Once you know how much coverage you qualify for, you can meet with a funeral director to plan your funeral and burial based on the coverage you are allotted. Planning your funeral ahead of time lifts a huge burden from your loved ones in their time of mourning.

Although burial insurance is surely not for everyone, it definitely has a place for some people in their financial planning.

Filed Under: Life Insurance ·

What is Medigap Insurance?

April 23, 2013 by · Leave a Comment
Medicare pays a great deal of the medical costs for its members, but it doesn’t cover absolutely everything. Medicare recipients have coverage for hospitalizations under what is called Medicare Part A. They also have insurance that covers doctor’s office visits and tests, and this portion is covered under Medicare Part B. However, both Medicare Part A and Part B have a deductible.Generally, Medicare will pay about 80 percent of the costs for members. The extra 20 percent will be charged to the patients as coinsurance or copayments. For example, when they visit their doctors, Medicare recipients may need to pay what is called a “copayment.” After the doctor’s office bills Medicare for services rendered, Medicare will pay its portion to the doctor’s office. If there is an amount left over for the patient to pay, the doctor’s office will then bill the patient for what is called the “coinsurance” amount.

The Limitations of Medicare Coverage

Medicare also has a limit on how much it will contribute toward hospitalizations and hospice care. Once the limit has been reached, the patient will be responsible for the remainder of the bills. While Part A is in effect, the patients will be required to pay their coinsurance or copayment amounts. If Medicare recipients require a long stay in the hospital or a skilled nursing facility, their portion of the bills could amount to much more than they can afford to pay.

What Is Medigap Insurance?

medigap-insurance-plan-comparisonBecause Medicare can leave significant gaps in a member’s health insurance coverage, private insurance companies offer Medicare supplemental insurance plans available to people. These supplemental plans are called “Medigap plans,” and they cover the remaining 20 percent in varying degrees.

Medicare Supplemental Plan F is the most extensive plan and is the most popular. This plan covers 100 percent of the costs that are left over for Medicare recipients to pay, including Part A and Part B deductibles, Part A and Part B coinsurance and copayments, Part B excess charges and even a portion of the costs for emergency medical care received while traveling outside of the country.

Choosing and Purchasing a Medigap Plan

Because Plan F offers members the most coverage, it is also the most expensive. However, people who are interested in a Medigap plan have nine others to choose from that will help them cover their costs for a lower premium than Plan F would require of them. During the six-month enrollment period that begins the month that Americans turn 65, they may examine what the Medigap plans have to offer them and choose the one that most suits their needs.

Filed Under: Health Insurance ·

Do You Have An Insurance Related Question?

April 22, 2013 by · Leave a Comment

Hello.

This new website of mine is dedicated to helping people navigate the sometimes treacherous world of insurance. I have worked in the insurance industry for the past 16 years. I have seen a lot in that time, both good and bad. I can see why and how the insurance industry sometimes gets a bad rap. As much regulation as there is out there, sometimes it just is not enough to stop those who want to use unethical means to generate a larger profit at the expense of their clients. There will always be loopholes, and as long as loopholes exist, there will always be those willing to jump through them.

What I hope to do is answer some of the common questions I have seen in my own practice and also take questions from the visitors of this site and answer them for the public to see. If you have an insurance related question, feel free to use this form to ask it.

Thank you, and I look forward to answering your questions.

Filed Under: General Discussion ·