Under Age 65 – What Insurance Products Do I Need?

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Health Insurance Options and Other Considerations

Do I need a cancer insurance policy? This question is often heard, therefore the question becomes: what insurance products do I need? While this column will give you ideas, contact your insurance professional for advice. First, know what insurance is and what can it do for you. Insurance will help assure that you will be able to access needed medical care, protect and preserve your assets, help maintain a current standard of living, and can help keep a business running.

Health insurance will help assure that you will be able to access needed medical services and protect your assets. This is true if you need a medical plan and you are under age 65, or if you are over 65 and on Medicare. Most people need health insurance and have it from work or buy it individually. Children, pregnant mothers, and families with limited incomes may qualify for subsidized coverage through AllKids. People with health conditions can access health insurance through ICHIP.

Disability insurance (DI) will replace your income in the case you are sick or hurt and not able to work. Just think for a moment: if you are working and you get sick or hurt, how will you pay for your bills? Note: A 30-year-old man has a one in five chance of suffering a long-term disability (more than 90 days) before his planned retirement. A 30-year-old woman has a one in three chance. Social Security Disability may help many people after 5 months if they will be disabled for longer than one year, but this benefit isn’t usually approved or paid until after twelve months of a qualified disability. Unfortunately, many people do not consider DI until it’s too late.

How will a family make their house, car and loan payments if the breadwinner dies?

Life insurance provides funds for burial, but more importantly allows a family to maintain a decent lifestyle. Estate and business planning should also consider if funds are needed if/when an owner or key employee dies.

Long term care insurance (LTCi) helps pay for care in a nursing home or other qualified healthcare facility. LTCi may also help pay for needed home care expenses once again to help assure you access medical services and protect your nest egg. In most cases LTC is considered as children leave the home (age 50 – 65) and life insurance needs may lessen.

When considering any insurance product: First, realistically consider your situation and needs. Key facts include one’s age, health, benefits available to them already, family and financial situation. Note: all insurance plans list their benefits, limitations and exclusions. ALWAYS read this information carefully and ask questions of a professional insurance agent. While you can buy insurance online, you will pay the same premiums if you purchased from a professional agent. This writer believes Cancer and Accident Plans should only be purchased after considering the plans appropriate for your situation.

Dependents under age 26: If you have a dependent child that has been declined coverage under a medical policy in Illinois, you will be able to add them regardless of health during the open enrollment period. (Blue Cross’s “Blue Pathway” has an open enrollment is in January). Illinois Public Act 095-0958 may offer other advantages for coverage.

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Steven A. Buttice is the president of Medical Reimbursement & Management Services, Inc., a firm specializing in issues affecting seniors, including seminars and consultation on Medicare Plans, Long Term Care and other types of insurance, claims issues, and sales/service of insurance products since 1984.

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