B-Informed Blog

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Enriching your life; informing your health. Life insurance, and other topics.


What's the Difference Between Term and Permanent Life Insurance?
What's the Difference Between Term and Permanent Life Insurance?
In a recent survey, 86% of respondents agreed that most people would require some amount of life insurance coverage. There’s no doubt that if you have loved ones depending on you, purchasing a life insurance plan is a smart idea. The big question is: What kind of life insurance is best? Let’s take a look at the two main categories: term and permanent.

Term Life Insurance

Affordable term life insurance is considered to be one of the most cost-effective plans because it only covers you for a finite period. If you purchase this kind of coverage when you are still young and healthy, you are more likely to lock in a good rate. Policies are available for periods of 10, 15, 20, 25, or 30 years. When your term ends, so does your coverage. There is no payout unless you die. It’s that simple.

Term life insurance is ideal for people who want to protect their dependents during a specific period of time during which they would experience the greatest financial devastation if you were to die prematurely.

Here’s an example: A parent purchases a 25-year term life insurance policy when their child is born. In this case, the policy would end when the child is 25 years old – an age when he or she is likely to be more or less financially independent. This way, if the parent were to die when the child is still young, he or she would receive a payout that would replace the parent’s income.

An affordable term life insurance policy becomes less affordable if you choose to renew or extend it at the end of your term. Since you are older and presumably less healthy, your insurance provider may increase your premiums.

Permanent Life Insurance

Permanent life insurance provides you with lifelong coverage. Basically, your coverage ends when you die, at which time your beneficiaries will receive the payout.

This type of life insurance comes with higher premiums, but the premiums remain the same for the duration of your life. You will lock in a price that will never go up as long as you continue your payments. A permanent life insurance policy also accumulates cash value over time.

When it comes to selecting a life insurance policy, it is best to consider a few things – your lifestyle, your current assets, your dependents, and your retirement plans. Still not sure which type of policy to choose? Contact Bankers Fidelity for more information today.

Does Health Insurance or Medicare Supplement Insurance Cover Plastic Surgery?
Does Health Insurance or Medicare Supplement Insurance Cover Plastic Surgery?

Even though we often associate beauty with youth, a recent Gallup survey indicates that we may have it backwards. According to Gallup, 66% of Americans aged 65 and older agreed that they always feel good about their physical appearance. But when it came to younger adults, only 61% of individuals between the ages of 18 and 34 could say the same thing (1).

Today, when people are not satisfied with their physical appearance or the signs of aging, they often have the technology and resources available to make a change. Over the past decade, the number of cosmetic surgeries performed on women increased by over 538%. Among men, that number increased by 325%. According to the American Society of Plastic Surgeons, men and women spent a combined $13.5 billion on plastic surgery in 2015 (2). Where is this money coming from?

Insurance is intended to cover the health care expenses of essential medical procedures, but health insurance policies can vary in terms of what they choose to cover. Nonetheless, most insurance providers adhere to a set of guidelines and definitions when deciding which procedures are considered necessary and which are considered elective. Typically, cosmetic procedures and plastic surgery are elective, but there are exceptions.

The same thing goes for Medicare and Medicare Supplement Insurance. While it may not seem like a large audience, the Gallup poll shows that there are those seniors who do not feel good about their appearance. There are also those seniors who need reconstructive surgery as a result of an accident or deformity. This makes it important to know what kind of procedures Medicare and Medicare Supplement Insurance will cover.

What kinds of plastic surgery qualify for health insurance coverage?

Health insurance companies and Medicare Supplement Insurance policies are more likely to cover reconstructive procedures than cosmetic ones. In other words, they will determine if the surgery is essential to bodily function or quality of life.

The American Medical Association’s (AMA) definition of reconstructive surgery is “surgery performed on abnormal structures caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease.”

What kinds of plastic surgery do not qualify for coverage?

The AMA defines cosmetic surgery as “the reshaping of normal structures on the body to improve the self-esteem or appearance of a patient.”

Most insurance providers do not cover the health care expenses associated with cosmetic surgery because, by its very nature, this type of procedure is optional and is not necessary for normal bodily function.

Examples of cosmetic procedures that are not routinely covered include liposuction, breast augmentation, eyelid surgeries, or facelifts.

What are some surgeries that insurance companies will consider covering?

Some procedures that are typically performed for cosmetic purposes may be covered if the individual’s health is affected by a particular issue. Examples include:

  • ”Nose job” – Some people get plastic surgery to change the shape of their nose simply because they don’t like the way it looks. Others alter their nose because the natural shape makes it hard to breathe. In this case, the surgery becomes necessary rather than cosmetic and may be covered by insurance.

  • Breast surgery – If a woman’s breasts are causing her pain or discomfort because of their size, her insurance company may consider covering the health care expenses of a reduction surgery.

  • Abdominal surgery – Though liposuction and tummy tucks are not usually covered by insurance, they may be considered if the issue is causing certain health problems like sores, rashes, or back pain.

Before any kind of surgery, you should always check with your health insurance company to make sure your health care expenses will be covered. Contact your insurance provider directly and get the details of your coverage in writing so that there are no surprises when your bill arrives.

Sources:

  1. Gallup
  2. The Balance

The Advantages of Short Term Health Insurance Policies
The Advantages of Short Term Health Insurance Policies

Short term health insurance plans continue to grow in popularity, especially among millennials. But if you haven't heard much about short term insurance, you're in good company. You may believe that you have limited options when it comes to your coverage, but probably have more choices than you think.

 

For many of us, short term health insurance policies are a great option to get the coverage we need during a transitional time period. Here are just a few of the advantages that short term health insurance policies can provide.

 

They're less expensive

The truth is that short term policies can cost half the amount of traditional health insurance plans. According to the eHealth price index, the average premium for short term health coverage in 2014 was around $110. But the average premium for traditional medical plans during 2015's open enrollment period was around $286. For many people, this can make a huge difference -- especially if you don't find that you take advantage of some of the types of coverage that traditional insurance provides.

 

 

They're better for gaps

If you're between jobs, missed the open enrollment period, going through a divorce, or are waiting for Medicare to kick in, a short term health insurance policy might be exactly what you need. A total of 10,000 Americans enroll in Medicare for the first time every day, but many retirees find themselves without coverage because they haven't yet hit that magical 65 age marker. If you're waiting for the insurance from your new job to take effect or need to wait a few months until you can enroll in a long term policy, your health care expenses can be reduced with a short term policy.

 

You can apply any time

Unlike Obamacare or job-based insurance plans, you can enroll in a short term plan at any time of the year. What's more, your policy will take effect immediately, so you won't be stuck in a waiting game. Obamacare has a host of regulations about when you can enroll. If you missed the enrollment period, you aren't allowed to enroll unless you have a major life event like a marriage or a move. Fortunately, you can apply for immediate short term coverage to take effect until the next enrollment period rolls around.

 

If you want to know more about your options for health insurance policies, please contact us today. We'll help you decide on the plan that's best for you and your family.


Differences in Medicare Supplement Insurance Policies

Medicare Supplement Insurance

Similar to other types of insurance, such as life insurance or health insurance, there are many different Medicare Supplement Insurance plans. While it is often talked about as a single entity, Medicare Supplement Insurance actually consists of ten different plans. The differences can be insignificant for some, but there are also some larger differences that should be considered when deciding what policy is best for you.

Here are some discrepancies between different policies:

Foreign Travel

For seniors looking to cover themselves while traveling, Medicare Supplement Insurance is a great choice, but not all policies include the foreign travel exchanges. This is a major reason for many seniors deciding to get supplement insurance, so don’t overlook the fine details and assume all plans offer the travel exchange.

Skilled Nursing Facility (SNF) Care

Certain conditions must be met for SNF care to be covered, but if it is, some Medicare Supplement Insurance policies can help cover prolonged stays with coinsurance. If SNF care is a major factor in getting supplemental coverage, be sure to look at each policy carefully to make sure it is included in the policy you choose.

Deductibles

When it comes to deductibles, the different Medicare Supplement plans vary in what they cover. Some plans cover Part A deductibles, but don’t cover Part B deductibles or excess charges, while others only cover a portion of some and not others. As far as discrepancies go, this is the area where there are the most differences, which makes it very important to understand what you are looking for in a Medicare Supplement Insurance plan before you buy one.

Getting a supplemental insurance plan can be a great source of additional coverage for seniors. Combined with Original Medicare, it provides a wide-reaching net to make sure there are no surprise charges for your health care. Being covered for something you don’t need or not being covered for something you do need is a real concern though.

Choosing the correct Medicare Supplement Insurance plan is a big decision and one you shouldn’t make without some research. To find out which plan could benefit you, give us a call at Bankers Fidelity. Our team of experts can help you choose the right plan for you to make sure you are covered when you need it.


Waiting for Medicare? Short-term Insurance Could Help

short term insurance

You may have heard about the increasing popularity of short-term health insurance in Iowa, Mississippi, Michigan, and the countless other locations where we offer our plans. But you may have never given much thought as to how short-term medical insurance can help you while you are waiting for Medicare.

For some Americans, there is a lag time between the age they retire and when they can enroll in Medicare or get a Medicare Supplement Insurance policy. During this time, that could mean a lag in medical insurance for some. It’s a situation that could put you at risk, but there is also a solution: short-term medical insurance.

The flexibility of these policies make them perfect for bridging the gap for retirees who may not have reached the enrollment age when they retire. Short-term policies can be issued quickly and satisfy proof of coverage, which will allow you to continue any activities or programs you are involved in.

These policies are often referred to as “gap” coverage for a reason. They are intended to cover you between a lapse in regular coverage. Some of the biggest reasons people turn to short-term policies are job turnover, missing an enrollment period and proof of insurance. Short-term insurance is not intended to be a long-term solution, which is why it is the perfect option for people waiting for Medicare to kick in.

Not only are these policies great because of the flexibility they offer, but they also provide low premiums, which makes them cost-effective as interim coverage.

Short term insurance plans can also help provide additional coverage once you are able to enroll in Medicare; however, there are more options for additional coverage like Medicare Supplement Insurance, which is designed to help with Medicare.

If you’re waiting to enroll in Medicare, don’t risk being without insurance. A short-term health insurance plan could be the solution you are looking for.

If you'd like to find out more about the types of life insurance plans and health insurance plans we offer or a Medicare Supplement Insurance policy, please contact us today.