Health Insurance Guide

Medigap Insurance

Original Medicare (Part A and Part B) may not cover all of your medical expenses, leaving you with out-of-pocket costs. A Medigap plan, also known as Medicare Supplement Insurance, offered by private insurance companies like Aetna, Cigna, or Humana, can help cover these gaps in coverage and lower your costs for copays, coinsurance, and deductibles. There are eight Medigap plans available to adults who became eligible for Medicare after January 1, 2020, with different levels of coverage. Keep in mind that not all insurance companies offer Medigap in every state and premiums may vary based on factors such as your age, gender, marital status, location, and smoking status.

Resources For Medigap Insuarance:

Medicare.gov

State Health Insurance Assistance Programs

If you are wondering when the best time to get Medigap insurance is, the answer is during your open enrollment period, which begins the month you turn 65. During this time, you can purchase any Medigap policy available in your state without facing any medical underwriting. This means that Medigap providers are required by federal law to sell you a policy, even if you have pre-existing health conditions or current health issues.

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Medicare Advantage

Just like how you can bundle your internet and phone services, you can also bundle your health coverage by signing up for a Medicare Advantage plan, also known as Medicare Part C. These plans offer comprehensive coverage for a range of health and wellness needs, and include Part A (Hospital Insurance) and Part B (Medical Insurance) coverage. Additionally, Medicare Advantage plans may also provide additional coverage options such as prescription drug coverage (Part D), vision, hearing, dental, or health and wellness programs.

When you sign up for a Medicare Advantage plan (also known as Medicare Part C), you are typically required to see doctors and other health providers who are part of the plan’s network. You may also need a referral from your primary care doctor to see a specialist. It’s important to check if your current physicians and hospitals accept the plan you’re considering. Premiums for Medicare Advantage plans can vary widely depending on the insurance company and how the policy is rated. To make sure you are getting the best deal, it’s good to get at least three quotes to compare.

Note: Medicare Advantage plans have network providers, therefore it’s important to check if your current physicians are in-network.

Dental

There are various types of insurance that include dental coverage, as well as the option to purchase private dental insurance separately. Private dental insurance is a good way to ensure that you are protected against high out-of-pocket costs for dental care. Additionally, older adults may also have access to free or low-cost dental care options, but availability and coverage can be limited.

Vision

As we age, there is a higher chance of developing eye diseases that can result in permanent vision loss, according to the American Optometric Association (AOA). The sooner these issues are found and treated, the greater chance of maintaining good vision. Vision insurance is available to suit your personal eye care needs and budget. From low-cost options to complement your Medicare benefits to more extensive coverage, there are many different insurance carriers, policy types, and pricing to choose from.

Ask your insurance carrier about the possible surprise costs:

 

  • Is there an enrollment fee?
  • Are there any waiting periods?
  • Are in-network providers required?
  • Is the policy stand-alone, or is bundling necessary?
  • What are the copays and deductibles?

Life Insurance

Are you concerned about what will happen to your loved ones when you pass away? You’re not alone, many older adults share the same worries. The fear of leaving family members with unpaid debts like mortgages, loans, and credit cards, as well as medical expenses is something that commonly causing stress. Life insurance can give you the peace of mind that your loved ones will not be burdened with financial stress after you’re gone.

 

The amount you pay each month for life insurance depends on the type of policy you choose. Just like with long-term care insurance, it is generally more cost-effective to purchase life insurance while you are in good health. This will result in lower monthly premiums, and increase the chances of your policy being approved.

 

Your coverage and cost by other factors, including:

  • Age
  • Gender
  • Overall health
  • Preexisting conditions such as diabetes or high cholesterol
  • Smoking status

When considering buying a life insurance policy, it is crucial that you understand the distinction between term life and whole life insurance. No matter what type of policy you decide to go with, it’s important to make sure you pay your premiums on time, if you miss payments, you will lose all coverage under that policy.

Term Life Insurance

  • Term life insurance covers you for a specific period of time, such as 10, 20, or 30 years.
  • The premiums for term life insurance may be more affordable than those for whole life insurance.
  • Term life insurance only provides a death benefit, without a savings component.
  • Some term life insurance policies can be converted to whole life insurance policies.
  • When the term ends, you may have the option to renew the policy, but with new age-based rates.
  • Not all term life insurance policies offer guaranteed renewal, and you may be denied coverage if you try to renew.

Whole Life Insurance

  • Whole life insurance provides coverage for your entire life.
  • The premiums for whole life insurance are fixed.
  • Some whole life insurance policies may pay dividends to policyholders.
  • Whole life insurance policy builds cash value on a tax-deferred basis.
  • You can borrow against the cash value of your whole life insurance policy.

Long Term Care Insurance

Many older adults will require long-term care (LTC) services at some point in their lives, as reported by the Administration for Community Living (ACL). Specifically, 70% of people turning 65 after 2020 will need LTC. Unfortunately, LTC can be very expensive. According to the 2021 Cost of Care Survey by Genworth, the average yearly cost for an assisted living facility is $54,000, and a private room in a nursing home can cost $108,405 annually.