Why Supplemental Health Insurance Might Be Worth Considering

As the years go by, our healthcare needs often increase, and so do the associated costs. While many of us rely on traditional health insurance plans, there's another option that's worth exploring: supplemental health insurance.

But what exactly is it, and why might it be a smart policy to consider purchasing?

Supplemental health insurance is designed to complement your primary health insurance policy by covering expenses that your main policy doesn't. Think of it as a safety net that catches what slips through the cracks of your regular coverage. It's not meant to replace your primary insurance but to work alongside it, providing additional financial protection.

To better understand the concept, imagine your health insurance as a raincoat. It does a great job of keeping you dry in most situations, but what happens during a heavy downpour with strong winds? That's where supplemental insurance comes in – it's like adding an umbrella to your raincoat, offering that extra layer of protection when you need it most.

So, why might supplemental health insurance be worth considering? Here are six compelling reasons:

• Fill coverage gaps: Supplemental insurance can cover deductibles, copayments, and coinsurance. This additional coverage can significantly reduce out-of-pocket expenses, especially for frequent doctor visits or ongoing treatments.
  
  
• Customizable protection: These policies often allow you to tailor coverage to your specific needs. Whether you're concerned about cancer, heart disease, or accidents, there's likely a supplemental policy that addresses your particular health worries.
  
  
• Cash benefits: Many supplemental policies provide cash benefits paid directly to you. This money can be used not just for medical bills, but also for everyday living expenses that may be affected by a health issue, such as rent or groceries.
  
  
• Peace of mind: Knowing you have an extra layer of financial protection can reduce stress and anxiety about potential health issues. This peace of mind is invaluable, especially as we age and become more vulnerable to health problems.
  
  
• Affordable premiums: Compared to comprehensive health insurance, supplemental policies often have lower premiums. This makes them an accessible option for adding extra coverage without breaking the bank.
  
  
• Portability: Unlike employer-provided health insurance, many supplemental policies are portable. This means you can keep your coverage even if you change jobs or retire, ensuring continuous protection.

While supplemental health insurance isn't necessary for everyone, it's certainly worth considering. Providing that extra layer of financial protection can help ensure that health issues don't become financial catastrophes. As with any insurance decision, it's important to carefully evaluate your needs, budget, and existing coverage before making a choice.

To learn more about finding the right balance of protection and affordability with your health insurance coverage, contact my office today.

Concierge Medical Care: A New Way To Better Health

Imagine having your doctor just a phone call away, same-day appointments without the wait, and longer, more personalized visits. This isn’t a dream or even a 1950s television drama. It’s concierge medical care, a model gaining traction as patients seek more accessible and tailored healthcare experiences.

Concierge medicine began in the mid-1990s, when a Seattle-based doctor grew frustrated with the limitations of his traditional medical practice. Wanting to spend more time with his patients and provide a higher level of care, he introduced a membership-based model. In his new model, patients would pay an annual fee for direct access to their physician, longer visits, and a greater focus on preventive care. This idea quickly caught on, particularly among those seeking more personalized attention, not to mention a more streamlined medical care experience.

In recent years, concierge medicine has surged in popularity. According to the Concierge Medicine Research Collective, the number of concierge physicians in the U.S. has grown by 30% since 2020. This is a result of both doctors and patients wanting alternatives to overcrowded waiting rooms and rushed visits. For doctors, the model allows them to reduce their patient loads significantly; sometimes from thousands to just a few hundred. This enables them to spend more time focusing on preventive care and holistic health.

One of the smart ways individuals are accessing concierge medicine is by pairing it with a High Deductible Health Plan (HDHP). Here’s how it works:

An HDHP typically has lower monthly premiums but a higher deductible, designed primarily for catastrophic medical events. Alongside this, many people open a Health Savings Account (HSA), which allows for tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.

The funds in an HSA can be used to pay for concierge medical fees, annual memberships, and even routine visits. This allows the personalized care of concierge medicine without the burden of high monthly insurance costs. Meanwhile, the HDHP serves as a safety net for major medical events that exceed typical office visits, such as surgeries or emergency care.

For many, this combination represents the best of both worlds, including comprehensive, hands-on medical attention for everyday health needs and financial protection for more serious issues.

As the healthcare landscape continues to change, concierge medical care offers a glimpse into what the future of personalized medicine might look like: an accessible, patient-focused experience aimed at meeting the needs of both physicians and their patients.

Promoting a Comfortable Environment for Seniors

As we journey through life, our needs change. This is especially true as we enter our golden years. Fortunately, recent changes in technology are now supporting seniors in ways never imagined before to help meet our changing needs.

Embracing technology can make transitioning into the next stage of our lives much smoother. 

The next step is to introduce smart home systems that can improve the welfare of seniors as well as their caretakers. With their low cost, smart home systems offer a variety of benefits, including:

Simplify Daily Tasks: Smart home devices offer a helping hand in managing daily tasks. Voice-controlled assistants like Amazon Echo or Google Home and automated lighting systems can simplify routine activities. Seniors can effortlessly control lights, thermostats, and appliances with only a voice command, eliminating the need for complex setups or hard-to-reach switches.

Enhanced Safety and Security: Safety is a top concern for seniors and their caregivers. Doorbell cameras with two-way communication allow seniors to see and speak with visitors without opening the door. Motion sensors and smart locks provide an extra layer of security, notifying caregivers of any unusual activity.

Improved Medication Management: Taking medications on time is crucial for seniors, and smart home devices can help with medication management. Smart pill dispensers can be programmed to dispense medications at specific times, ensuring seniors never miss a dose. Caregivers can receive notifications when a dose is missed, allowing them to intervene promptly. Integration with smartphone apps provides an easy way to track medication schedules and set reminders.

Remote Monitoring and Care: Smart home devices allow remote monitoring, offering peace of mind for seniors and their caregivers. Video surveillance systems give family members the opportunity to check in on their loved ones, ensuring they are safe and well. Sensors placed around the house can monitor activity levels, alerting caregivers to unusual patterns and even falls that may indicate a potential health concern.

The landscape of elderly lifestyles is being transformed by the advent of enhanced home automation devices. They offer a wide range of benefits such as ease and comfort of operation, assurance in safety aspects, and reduction in psychological stress levels.

Smart home devices have opened a world of possibilities for seniors and their caregivers. From simplifying daily tasks, enhancing safety and security, improving medication management, and providing remote monitoring capabilities, seniors can maintain their independence and caregivers can have greater peace of mind.

Term Life Insurance Convertibility

 

Term life insurance is one of the most popular and affordable ways to financially protect your family. It provides coverage for a specific period, often 10, 20, or 30 years, with the promise of a death benefit if the insured passes away during that time.

But what happens when the term ends?

Or what happens if your health takes a turn for the worse?

That’s where the convertibility option comes in. It is a built-in feature of many term life policies that’s often overlooked but can be incredibly valuable.

What Is the Convertibility Option?

A convertibility option allows a policyholder to convert their term life insurance into a permanent life insurance policy without undergoing a new medical exam or fresh underwriting. Permanent life insurance policies include whole, universal, and variable life insurance. This means that even if your health has declined since you first purchased your term policy, you can still secure permanent coverage based on your original health classification.

Think of it as a form of insurance within your insurance policy: you're not just protecting your loved ones during the term, you're also protecting your insurability if your needs or health status change down the line.

What Types of Policies Can You Convert?

The specific permanent policies available for conversion will depend on your insurer, but most allow conversion to:

• Whole life insurance - providing guaranteed premiums, a guaranteed death benefit, and cash value accumulation.
• Universal life insurance - offering more flexibility with premiums and death benefits, while still building cash value.
• Variable life insurance - similar to universal life insurance, with the added component of investing your cash value.

Some insurers may offer conversion to a limited set of permanent policies or even a single designated product. It’s important to understand your options early, as most policies have an age or time-based limit on when conversion is allowed. The most common age when conversion must occur is 65 or within the first 10 to 20 years of the term.

When Should You Consider Converting?

Life changes quickly, and so can your insurance needs. Here are a few instances when converting your term policy might make sense:

• A serious health diagnosis that could make new life insurance prohibitively expensive or impossible to obtain.
• A growing or extended family that creates a long-term need for coverage beyond your initial term.
• Estate planning purposes, especially if you're seeking to leave a guaranteed inheritance or cover estate taxes.
• Business succession planning, where permanent life insurance can play a strategic role.
• Loss of employer-sponsored life insurance, prompting a need for lifelong personal coverage.

Cost Considerations: Convertibility vs. Fresh Underwriting

Permanent life insurance comes at a higher cost than term coverage, often significantly so. When you convert, you lock in your health rating from when you first bought the term policy, which could save you thousands in premiums if your health has declined.

However, if you’re still in excellent health and want permanent coverage, it may be more cost-effective to apply for a new policy and go through fresh underwriting to secure better pricing. This decision requires careful comparison between your current health, the cost of converting, and available new policy options.

The Bottom Line

The convertibility option is one of the most valuable, yet underutilized features of term life insurance. It provides flexibility, future planning advantages, and most importantly, the ability to secure lifelong coverage regardless of future health changes.

If you have a term policy, don’t wait until the last year to explore your options. Contact our office for assistance in making an informed decision that protects both your health and your financial future.

New to Medicare?

Medicare can feel overwhelming. First, you get tons of mail and it’s hard to discern what’s junk and what’s not. Then, you start researching and realize there’s a ton of parts and plans and letters… what does all of this really mean?

We get it.

You’re not alone – everyone feels this way when they first become eligible for Medicare. Whether Medicare is 5 years away and you’re just beginning some research or it’s time to sign up now, we can help.

This article starts at the very beginning, answering questions like "is Medicare free?" and "what's the difference between Medicaid and Medicare?" 

You can also keep reading to find out how to get started with Medicare coverage, depending on if you're retiring at 65 or plan to keep working:

New to Medicare and Retiring

If you’re new to Medicare and are retiring or are already retired, Medicare will be your new primary insurance at age 65. In fact, most individuals will sign up for Medicare around their 65th birthday.

In order to get started with Medicare, there are a few steps to take:

Step 1: Learn how Medicare works.

Medicare has several parts that are organized by letters A, B, C, and D. Learn more by clicking the Parts of Medicare link below.

Step 2: Determine when you’re eligible to sign up for Medicare.

You’re first eligible for Medicare during a 7-month window that surrounds your 65th birthday:

Begins 3 months before the month you turn 65

Includes the month you turn 65

Ends 3 months after the month you turn 65

This is called your Initial Enrollment Period. If you don’t enroll when you’re first eligible for Medicare Part B, there are penalties involved. (If you’re still working and have credible coverage, this doesn’t apply to you.)

Your monthly premium for Medicare Part B will go up 10% for every 12-month period that you could’ve been on Medicare and chose not to sign up. For example, if you wait 2 full years, your penalty is a 20% markup on the Part B premium. Remember: this doesn’t apply if you have health insurance already.

Step 3: Choose what coverage you want.

Most people will enroll in Medicare Part A no matter what, because it’s free to have if you’ve worked and paid Medicare taxes for at least 40 quarters.

If you’re still working and have health insurance, you might decide to delay getting Medicare Part B.

Working Past 65

If you decide you want Medicare Parts A and B, you have a choice to make:

You can keep your Original Medicare coverage or

You can choose a Medicare Advantage Plan (private insurance like an HMO or PPO)

There are also Medicare MSAs, a type of Medicare Advantage Plan, that come with a funded savings account you can use for medical expenses ($0 premium).

Medicare MSA

If you choose Original Medicare, we recommend adding a Medicare Supplement and a Medicare Part D drug plan.

This is not a one-size-fits-all recommendation, either. We will ask you some questions about your health and risk profile to get a feel for which route matches your wants and needs the best.

New to Medicare and Still Working

If you’re still working at age 65 – and nowadays, this is becoming more and more common – you don’t necessarily have to enroll in Medicare.

Medicare Part A is free, so there’s no harm in having it. However, when it comes to Medicare Part B, you’ll want to take a look at what it would cost you versus keeping your employer’s insurance.

Networks are also something to consider. Often times, the health insurance you currently have while employed will be network-based, whereas Medicare is accepted by about 97% of all doctors.

What we can do for you is compare your current plan to what Medicare would be. Sometimes, switching to Medicare with a supplement can save you money, especially when it comes to deductibles, copays, and coinsurance.

Choose Kamran for Your Medicare Insurance Needs

We understand just how confusing all of this Medicare business can be. For every piece of advice you read online, there’s another article telling you to do the opposite. That’s because no one's needs are exactly the same.

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How to get life insurance—tips and advice

Buying life insurance is about making sure the people who depend on you will be cared for, even if you’re not around. But how do you know how much protection you need, or which type of coverage is right for you and your family?

First time buying life insurance, Let us walk you through it

If you’ve never purchased life insurance before, there’s a good chance you have lots of questions. Fortunately, we’ve been doing this for a very long time, so we’ve put together a mini ”How-to Guide” to help you get started.

Know what you want your coverage to do

As you get started, it can be helpful to revisit the reasons why you are buying a life insurance policy. Is it to replace your income, pay off your mortgage, or create an inheritance for your loved ones? Whatever the reasons, you’ll want to keep them in mind as you select your coverage.

Figure out how much protection you need

There are plenty of formulas you can use to determine how much insurance you need. However, it often comes down to the reasons you need coverage in the first place. For example:

If you need income replacement, you can add up your annual expenses and multiply that by the number of years you have until retirement.

If you want to make sure your loved ones have enough money to pay for a wedding, go to college, take over your business, or fulfill any of your other long-term goals, you could calculate the total cost.

The number you come up with will give you a ballpark idea. But we strongly recommend reviewing your results with an experienced agent before making any decision.

Decide how much insurance you can afford

As with any major purchase, it’s important to make sure your life insurance premiums fit within your budget. Remember, some life insurance premiums increase over time, so it’s important to make sure you can afford them today—and tomorrow.

Find the right policy

Once you figure out how much coverage you'll need, you’ll need to find the right coverage. Your main options are term life, which may better fit your current budget, or whole life, for permanent coverage that also builds cash value.

Learn the lingo

With terms like "premium," "dividend," "beneficiary," and so on, understanding how life insurance works can be confusing. To help you understand this whole process, we have put together a glossary of insurance terms.

Check out the insurance provider

An insurance policy is only as good as the company that backs it, so make sure you choose a company that has a proven history of keeping its promises and is financially strong and enough to be there for you and your loved ones when needed.

If you’ve never done it before, figuring out how to purchase life insurance can be a real challenge. That’s why we encourage first-time buyers to work with an experience agent. That way, you’ll have an experienced professional to guide you along the way and make sure you have all the information you need to make the best decision. 

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Reasons why you should consider buying life insurance

 

Reasons to buy insurance are different for everyone. But the decision to purchase insurance is, at its core, all about providing financial security for yourself and the ones you care about. Learn why life insurance is important, and who needs it.


Why is life insurance important?

Buying Life Insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses.

Life insurance provides cash when you need it most.

Your life insurance policy can deliver a specified sum of money when you need it. Upon your death, your family will receive your policy payout immediately. And that death benefit is generally not subject to federal income taxes. For example, a $500,000 policy provides $500,000 in death benefit proceeds directly to your beneficiary.

Steps in the insurance buying process:

1. Determine your goals, determine how much insurance you need to meet your goals over time, and determine what you can afford to pay.
    
2. Learn what types of insurance can help you meet your needs.
    
3. After considering initial premium payments, any possible increases in premiums over time, any additional death benefits,1 and any living benefits2 that can be utilized before you die, choose the type of insurance policy (or combination of types) that best meets your needs.
    

Remember, working with a financial professional can help make this whole process easier. A financial professional can help explain the differences between types of policies, help you calculate the amount you need, and present potential options that may best suit your needs.

 

Why get life insurance?

Life insurance can give you lasting peace of mind in terms of the assurance that you have provided a legacy. That’s because the right coverage can offer a valuable combination of benefits, many guaranteed by the claims-paying ability of Life Insurance Company—so that you and your loved ones know exactly what you’re getting.3 Of course, you have to make a long-term commitment to paying premiums and keeping the policy in force.  Some of the most common reasons for buying life insurance include: 

1. Guaranteed protection
If you have a family, a business, or others who depend on you, the life insurance benefit of a whole life policy acts as a financial safety net. When you die, your beneficiaries will receive a lump-sum payment that is guaranteed to be paid in full (provided all premiums are paid and there are no outstanding loans). It’s essential protection that you can count on to be there for your loved ones when needed.

2. Income replacement
Imagine what would happen to your family if the income you provide suddenly disappeared. With whole life insurance, you can help make sure that your loved ones have the money they need to help:

• Pay the mortgage
• Afford childcare, health care, or other services 
• Cover tuition or other college expenses 
   
• Eliminate household debt
   
• Preserve a family business

3. Tax-free benefit
Your beneficiaries will be able to enjoy every penny you leave them. That’s because the benefit of a life insurance policy is generally passed along federal income tax free.

4. Guaranteed cash value growth
As you pay your premiums, your Whole Life policy builds cash value that is guaranteed to grow—tax deferred—and can help meet a variety of financial goals: 

• Supplement retirement income 
• Fund a child or grandchild’s education 
• Pay off a mortgage 
• Protect existing assets 
• Establish an emergency fund 

5. Dividend potential
One of the benefits of purchasing whole life insurance is that you will be eligible to receive dividends.4 Although they are not guaranteed, when dividends are awarded, you can take them in cash, use them to offset your premiums, or use them to buy paid-up additional insurance that increases your coverage and cash value, use them to offset your premiums, or take them in cash.

6. Optional riders
There are several ways to tailor a whole life policy to meet your individual needs. For an additional cost, you can use riders to purchase additional protection without further underwriting, to pay your premiums if you become disabled, to use some of your face amount to pay for chronic illnesses, or to purchase coverage for your children. Your agent can help you decide if any of these riders are right for you.
 

1 The life insurance death benefit is the amount that is paid when the policy is in effect and the insured dies. The insured is the person whose life is covered under the policy. Accessing the cash value of a Whole Life policy for special expenditures will reduce the available cash surrender value and the death benefit.
2 A living benefit is any benefit the policy owner can access while the insured is still living. Not all life insurance policies are designed to offer living benefits.
3 All guarantees are based on the claims-paying ability of the issuer.
4 Dividends are not guaranteed. 

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Living Benefits of Life Insurance

A cancer diagnosis upended the family and finances of the Venables. Life insurance helped to keep them solvent and paved the way to a life filled with hope. Learn how those living with a terminal illness can alleviate some financial stress by using their Living Benefits Rider to make withdrawals from their life insurance policies. 

David Smith is feeling particularly grateful for all the blessings he has received, both big and small. That’s because he has been living with a rare cancer much longer than anyone could have predicted. It hasn’t been easy. Initially, he and his wife, Sarah, managed to keep up with his medical expenses and their household bills. Eventually, though, they couldn’t keep up any longer. They didn’t know where to turn.

Life insurance before the cancer diagnosis

Like many people, David and Sarah had assumed their life insurance would benefit their beneficiaries after they were gone. But life insurance can often be an important financial resource before death. In this case, David and Sarah had opted for the Living Benefits Rider (LBR) in their Life policy, then forgot about it. The rider allows policy owners with terminal illness to access their death benefits while the insured is still living.

Fortunately, a few years after David’s diagnosis, he and Sarah met with their local financial professional, Tom for a routine review of David’s Life policy. Tom knew his client was ill, but he didn’t realize just how dire David and Sarah’s financial situation had become.

Tom reminded the couple of their decision, which had seemed minor at the time, to add the LBR at no cost. David and Sarah were stunned and relieved to learn they could tap into David’s death benefit. Suddenly, they were able to manage their expenses. “I had no idea that [the LBR] could have such an impact on somebody’s life,” Tom said.

 

How to use life insurance while alive
 
The living benefit rider is a feature that you can add to your life insurance to give you the option to access a portion of the death benefit while the insured is still alive if they are diagnosed with a terminal illness with a life expectancy of 12 months or less. The rider can give you financial support during times of serious illness, critical medical conditions, or other specified events.

To use the rider, you should review your life insurance policy to familiarize yourself with the specific details and conditions of the Living Benefits Rider, such as eligibility requirements, types of qualifying events, and any limitations or exclusions mentioned in the policy.

If you’re eligible, your next step will be to contact your insurance company and inform it of your intent to exercise the Living Benefits Rider. Company representatives will walk you through the process and make sure you file the required claim forms. Be prepared to provide documentation, such as medical reports and test results, to support your claim.

The insurance company will evaluate your claim based on the information you provide. (It may require an assessment by an independent medical professional to confirm your condition.) The duration of the approval process may vary depending on the complexity of your claim and the insurance company’s policies.

If your claim is approved, you will receive a payout from your life insurance policy’s death benefit. The amount you can access depends on your policy’s terms, and the amount you access will reduce the remaining death benefit and available cash surrender value. It’s important to note that the payout may be subject to certain fees and taxes, so work with your financial professional to understand the potential impact.


Adding a Living Benefits Rider can be a lifesaver

The Living Benefits Rider provided more than financial relief. “I noticed a change in David’s tone, his emotional state,” said Andrew Jefferson, David’s oncologist and friend. “It’s been a great thing for him and Sarah, just to focus on getting well and not worry about finances.”

David agreed. “This life Insurance Company experience opened our lives back up. We can now spend more energy on love and purpose, and less on fear and anxiety.”

“My approach is holistic,” Tom said, adding that he always recommends that his clients opt for the Living Benefits Rider. “We don’t assume the worst is going to happen, but life changes.”

David completed his expensive treatment, and he and Sarah continued to work at their small business. David has lived to see many family milestones. And he and Sarah recently reached a milestone David didn’t think he’d live to see: retirement. “We are living in a very joyful place, and our life insurance company has been a key ingredient in that joy,” David said.

 

Want to learn more about life insurance benefit riders?

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