Supplemental Health Insurance

Life Insurance helps pay for final expenses, your mortgage and taxes, and it can also cover your children’s education and help maintain your family’s lifestyle and more.

Basic Types of Life Insurance

TERM LIFE POLICY

This type of coverage does not build cash or investment value. Term life insurance covers you for a set period of time provided you pay the monthly premium, or in some instances, a lump sum in advance. The policy will pay to the named beneficiary the face amount of the policy (set benefit and/or lump sum) upon death of the insured within the stated term. Depending on the policy, it may also make payments upon terminal or critical illness. Annual-Renewable Term Life Insurance is purchased year-by-year, although you don’t have to re-qualify by showing evidence of good health each year.

CASH VALUE POLICY

With this type of life insurance, premiums are tied to various types of investment accounts (stocks, bonds, money market, etc.) in which the savings can be tax deferred and/or borrowed against, if needed. These three main types of cash value life insurance are known as Whole Life, Universal Life and Variable Life Insurance.

• Whole-Life Policy: This type of insurance combines term life coverage with an investment fund, and as long as you pay your premiums you are covered for your entire life. Part of your premium goes towards the term part that pays a fixed benefit upon your death, and part of your premium goes toward building taxed deferred cash value that you can borrow against. Some whole life policies offer plans in which you can pay a higher premium for a shorter, fixed period of time, such as 20 years, vs. your entire life
• Universal Life Policy: This type of policy combines term insurance with an interest earning money market account. It has flexible terms that let you adjust your payment or coverage amount. Because this account incurs expense charges, you will need to adjust accordingly to make sure your coverage stays active, in the event that the amount in your account becomes insufficient to meet premium payments. You also have the option of building more cash value by paying premiums even when your account has ample funds to cover them.

Disability replaces your income when you can’t work.

One of the most important coverage after health insurance to ensure your financial protection is Disability Income Insurance. While you are in your working years, your most valuable asset is your ability to earn a living. Statistics show that our chances are greater of becoming disabled than dying between the ages of 25 & 45.

During the time you are unable to work due to a qualifying disability (illness or injury), the replacement of your regular income through the monthly benefit provided by disability insurance helps to maintain your pre-disability lifestyle. Workplaces often provide standard short-term disability (STD) and long-term disability (LTD) insurance to meet federal guidelines. Individual disability income insurance can be customized to meet your needs and considers your occupation, age, income and other factors in determining your cost and monthly benefit payment amount.

Individuals not offered disability through their employer, and self-employed individuals, who desire disability coverage, can purchase policies. In general premiums will be higher but policies usually provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim.

Those who have disability insurance through their workplace may wish to consider a “wrap around” disability policy to supplement their employer provided coverage.

What type of coverage is available?

A standard Short Term Disability (STD) policy allows for income payments to begin after a two-week waiting period. Payments will continue to the insured until he/she recovers or maxes out the benefits. Thus, total benefits for a STD could last for anywhere from one month to two years, depending on the policy.

A Long Term Disability (LTD) policy allows for income payments to begin after a ninety-day waiting period, although it could be much longer depending on the policy. Once payments begin, they will continue far longer than STD. Thus, the total benefits for a LTD could last for a few years, up to age 65, or even for life.

What is Long Term Care?

Recipients of LTC are not “sick” in the traditional sense. Instead, they unable to perform some of the activities of daily living such as dressing, bathing, eating, and getting in/out of bed, toileting, walking or other basic activities.

Overall, Long Term Care covers services that fall under two general categories which are skilled care and personal care.

• Skilled care is provided when recovering from an illness or an injury.
• Personal care helps maintain the daily activities and functions of life.

As stated, long-term care is usually not medical care and most often does not require a doctor or a nurse. In addition, the need for LTC is not always age related. In fact, statistics tell us that more than half of all individuals age 65 & over will need LTC at some point. Even so, it is important to note that roughly 40% of those receiving LTC today are between the ages of 18 and 64.

Why LTC Insurance?
Regular health insurance, Medicare or Medicaid typically will not pay for Long-Term Care services. The cost of LTC can quickly add up and burden those closest to you, both financially and emotionally. Purchasing a LTC plan can help you avoid those difficult situations, as well as give you the power you need to maintain control of your care, choosing the facilities that best suit your needs. Thus, instead of allowing welfare or the government to make your LTC decisions for you, you are in charge. Additionally, you should be aware that Disability Income Insurance is not designed to cover LTC expenses, but simply replaces part or all of your income during your working years should you become disabled. You need specific coverage to pay for long-term care needs.

Examples of what LTC policies may cover:

Institutional Care: Nursing home, assisted living services, residential care facility, hospice care, adult foster home, respite care and more.
Home Care: Home health care, adult day care, personal care, homemaker services, hospice care, respite care and more.

What is Critical Illness insurance?
Critical Illness insurance is considered a type of supplemental health insurance that provides benefits in addition to your regular health insurance and/or disability insurance.

Simply put, this special type of insurance coverage can help reduce the personal financial impact of the cost of fighting common types of critical illnesses, such as cancer, heart attack, stroke and more. With the advancements in modern medical technology, Critical Illness insurance is an increasing popular supplemental health insurance policy that allows you to focus more on recovery and less on the financial burden of a critical illness event or diagnosis.

How does Critical Illness Insurance work?
Costs are based on your age and selected benefit amount. There is typically a 30 to 90 day waiting period. Benefits are paid on covered illnesses, once a claim is properly filed and processed. See your plan for more information.

Some key features:

• Lump-sum cash benefit paid directly to you.
• You decide how best to spend your payment.
• No network restrictions.
• Benefit level choices to fit your needs and budget.

What is Accident Insurance?

Accidents can happen anytime. As a supplemental health insurance, Accident Insurance is very affordable and provides benefits in addition to your regular health insurance and/or disability insurance, in the case of a accidental injury. Thus, Accident Insurance can go a long way to protect you from financial hardship due to a great deal of medical, recovery and out-of-pocket expenses that follow accidental injuries.

How does Accident Insurance work and what does it cover?
In the event of a covered accident, Accidental Injury insurance pays benefits directly to you* or anyone you assign. How you use the money is up to you. Cover deductibles and copays for primary care visits and physical therapy, emergency treatment, hospital stays, medical exams, transportation and lodging needs, along with other expenses that regular health insurance doesn’t cover when you have an accident. Some policies can even pay benefits in as little as one day, based on time of claim submission.*

Advantages:

• Policies are guaranteed approval
• Lump-sum cash benefit paid directly to you.
• You decide how best to spend your payment.
• No network restrictions.
• Benefit level choices to fit your needs and budget.

*Benefits are only payable when all policy terms and conditions are met – see plan summary for more information.