Medicare is the federal health insurance program for people age 65 and older, as well as people with certain disabilities. There are four main types of Medicare health plans: Original Medicare, Medicare Advantage Plans, Medicare Supplement Insurance (Medigap), and Medicare Part D Prescription Drug Plans.
Original Medicare is a fee-for-service health plan that has two parts: Part A (Hospital Insurance) and Part B (Medical Insurance). Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. Part B covers certain doctors' services, outpatient care, medical supplies, and preventive services.
Medicare Advantage Plans (MA Plans) are offered by private insurance companies and are an alternative to Original Medicare. MA Plans provide all of the benefits of Original Medicare, plus additional benefits such as prescription drug coverage, dental and vision coverage, and fitness programs. Medicare Supplement Insurance (Medigap) is an optional insurance policy that can help pay for out-of-pocket costs in Original Medicare, such as deductibles, coinsurance, and copays. Medigap policies are sold by private insurance companies and there are 10 different types of Medigap plans to choose from. Medicare Part D Prescription Drug Plans are offered by private insurance companies and provide coverage for prescription drugs. Part D plans are voluntary, but if you have Medicare and don't have prescription drug coverage, you may have to pay a penalty when you join a Part D plan later.
When choosing a Medicare health plan, it is important to consider your individual needs and budget. Some factors to consider include:
Medicare Supplement Insurance (Medigap) can be a good option for people who want to help pay for out-of-pocket costs in Original Medicare. Medigap policies can be especially helpful for people who have chronic health conditions or who expect to have high medical expenses.
There are 10 different types of Medigap plans to choose from. Each plan covers a different set of benefits. The most comprehensive plans cover all or most of the out-of-pocket costs in Original Medicare. The less comprehensive plans cover fewer out-of-pocket costs, but they are also less expensive.
Medicare Part D Prescription Drug Plans are offered by private insurance companies and provide coverage for prescription drugs. Part D plans are voluntary, but if you have Medicare and don't have prescription drug coverage, you may have to pay a penalty when you join a Part D plan later.
you can enroll in a Medicare health plan during the Medicare Annual Enrollment Period, which runs from October 15 to December 7 each year. You can also enroll in a Medicare Advantage Plan during the Medicare Advantage Open Enrollment Period, which runs from January 1 to March 31 each year.
If you have questions about Medicare health plans or need help choosing a plan, you can contact Medicare by calling 1-800-MEDICARE (1-800-633-4227).
A: It’s impossible to say, because the kind of coverage that’s right for you depends on your circumstances and financial goals. But, generally speaking, term offers the greatest coverage for the lowest initial premium and is a great solution for people with temporary needs or a limited budget. Permanent insurance may make more sense if you anticipate a need for lifelong protection, or if the option of accumulating tax-deferred cash values is attractive to you. Also, it doesn’t have to be one or the other. Often, a combination of term and permanent insurance is the right answer.
A: Determining how much life insurance you need requires an examination of your current and future financial obligations, along with the resources your family could tap. Your future obligations are a combination of what it would cost to help your surviving family members meet immediate and ongoing needs like funeral costs, taxes, food, clothing, utilities, mortgage payments, and your future obligations like college and retirement funding.
A: There are four main types. Whole life insurance is the most traditional form of permanent life insurance. With it, the face amount (the death benefit) and the premium (the amount you pay for protection each year) are fixed at the time you buy your policy and stay the same even as you age. You also get a guaranteed rate of return on your cash values. Of course, any guarantee relies on the claims-paying ability of the issuing insurance company. For more information on other kinds of life insurance give us a call.
A: If you miss a premium payment, you typically have up to a 31-day grace period during which you can pay the premium with no interest charged. If you own a term policy and fail to pay your premium within the grace period, your insurance company will typically terminate the policy. If you own a permanent policy and fail to pay your premium within the grace period, your insurance company, with your authorization, can draw from your policy’s cash value to keep the policy in force. In some flexible-premium policies, premiums may be reduced or skipped as long as sufficient cash values remain in the policy. However, this will result in lower cash values and a shortened coverage period.