Monday, July 26, 2010

Are You Prepared For An Accident?

Have You Considered A Supplemental Accident Insurance Plan?

There have been numerous studies conducted throughout the years that have continually lead to the same conclusion…The younger you are, the more likely you are to die as the result of an accident over any other cause of death. Accidents are the leading cause of death through the age of 44. In 2007 there were over 123,000 accidental injury deaths in the United States alone!

But what about accidents that do not result in death? Again, from statistics taken from a CDC report in 2007… There were over 34 million injuries attended to in emergency rooms across the country, the majority of them not happening on the job.

Accidents don’t just happen when you are driving your car, or away on vacation. An accident can happen anywhere at anytime to anyone. But while we are on the subject of automobile accidents, lets consider this…

Every car driven in the United States is required to be covered by an auto insurance policy. These are designed to help cover the costs to repair damages to the body of the vehicle and some medical coverage for injuries sustained by those involved. If ever you need to use your auto insurance, that alone might not be enough to protect yourself. Most plans have a low limit of liability for medical treatments associated with a car accident.

A supplemental personal protection plan that covers accidents specifically is an excellent way to hedge you against a large monetary setback when an accident occurs. These types of plans will typically provide cash to the policyholder they can use however they desire. If they need it for their deductible or copayments to the hospital/doctor/chiropractor they can use the money there. If they need it for travel, gas, lodging, food or to keep the lights on and water running at home, they can use it there. Accident indemnity plans are designed so the policyholder can use the cash benefit where they see fit.

Accident Insurance is not just something you should think about for yourself, either. If you have a spouse or children, you should consider looking into plans that will cover them as well. It is something that many people do not like to think about, but purchasing additional protection over your regular health and life insurance plans can be an affordable and effective way to close the coverage gap and give you and your family considerable peace of mind.

We call an accident an accident for a reason; we don’t plan for them. We don’t anticipate them. Accidents happen when we least expect them. But, they do happen. Without them life would be boring. The risks we take make life worth it. Wouldn’t it be great to be better prepared knowing that eventually you may have to deal with the consequences of taking a chance? Don’t get caught off guard and saddle your loved ones with debt and trouble as a result of your accidental injury (or death). Get the proper protection of accident insurance today. Ask Affleck About Aflac!

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!”

Wednesday, July 14, 2010

Supplemental Insurance? What is it?

Supplemental Insurance - You’ve heard the term, but if you are like 93% of the population, you don’t know WHAT it is. The best way to understand Supplemental Insurance is to understand what it is not. Supplemental Insurance is NOT major medical insurance.

Major medical insurance is designed to take care of a majority of the medical bills which one can expect in the event of a serious and unfortunate medical condition such as cancer, a heart attack or serious accident. It is designed to pay the doctor, hospital or facility where treatment has taken place AFTER the insured individual has met their deductible. Even then, the individual will still likely have co-insurance payments (typically 20% of the total bill).

Unfortunately the financial bleeding doesn’t stop there. Let me illustrate.

A typical dual income family is blindsided when the wife and mother, whose financial contribution is significant to the household budget, is diagnosed with breast cancer. The family has a major medical plan with a $2500 deductible, which is quickly satisfied after just a few treatments. Their co-insurance requires them to cover 20% of the remaining bills. She is too sick to work. Also, to get the best possible care, she will need to travel to a specialized facility in another state. She doesn’t want to travel alone, so her husband uses up his vacation time to go with her. Meanwhile, they must hire a sitter to watch their children while they are away.

All the while, neither parent is working. They have been relying on their savings to get them by, but that is drying up. They turn to their credit cards, but there isn’t much room on them either. But they still need to keep the roof over their family, the lights on and the water flowing through the pipes. Unfortunately, the meter doesn’t stop running, even in a serious situation such as this.

What else can they do? Rely on family? Though family is great for emotional support, it is almost impossible for two families to survive on a one family income.

Get a loan? Not likely. Lending institutions want to know that they will get paid back and will want the borrower to have a steady income. If this family were successful at getting a loan that is just one more bill they will have to meet in the end.

THIS IS PRECISELY WHY PEOPLE NEED SUPPLEMENTAL INSURANCE!

Supplemental insurance gives people peace of mind by paying cash to the policyholder in the event of a serious medical event. They are free to spend the cash wherever they deem necessary. If they need it to keep the lights on or put food on the table, they can use it there. If they want to use it for the gas used to travel to and from treatments, they can. This money allows you to continue to live your life while going through a medically difficult time.

It is insurance for daily living; peace of mind in a medically uncertain world.