Are your health and life insurance benefits protecting you enough? Many people simply enroll in the insurance policy that their work offers. They do not consider the deductibles, out of pocket costs, or the specific details of the policy. There are numerous health and life insurance companies out there. It is important to consider all of your options and to carefully evaluate your current benefits package. The specific offerings may be extremely important one day.
A surprisingly large number of people do not even know what they are paying monthly to their health and life insurance policy. It may come directly out of your paycheck, meaning that you never even see the money. However, it is important to know what you are paying for many reasons. You want to have the ability to compare it to other health insurance plans. You also want to have the ability to evaluate if your current health insurance plan is benefiting you. If you do not utilize your health benefits frequently for example, a plan with lower monthly premium payments may be more ideal.
Many people who have health and life insurance do not fully understand their plan. Choosing a plan is usually a quick process, as you attempt to submit your benefits paperwork before the cutoff date. Some healthcare providers and life insurance policies require you to see specific physicians, or in network providers. If you are not aware of this and see a physician outside of your network, you will be responsible for much of the costs. With medical care being so expensive, this can be a huge financial hit. Some insurance policies may also require physician referrals to see a specialist. If you are someone dealing with a chronic condition, it may be too much of a hassle to go through this process.
Insurance gap policies
Most insurance providers require that you pay a specific percentage. This percentage usually depends on the type of medical care and what your specific policy is. Depending on the type of medical service that you receive, you could be responsible for thousands of dollars of payments. Gap insurance can be useful in these types of situations. Gap insurance is an additional insurance policy that helps you cover your portion. However, Medigap policies generally do not cover the following six healthcare concerns, long term care, vision or dental care, hearing aids, eyeglasses, and private duty nursing. (Centers for Medicare and Medicaid Services, 2015).
Health insurance and life insurance are not always rolled into one benefits package. Your health insurance provider may offer a minimal amount of life insurance. You may have to specifically opt in for this policy. Yet, not enough people take advantage of life insurance policies. If something were to happen to you, your family would be left to cover all of your costs and debts. Approximately 3 in 5 people own some type of life insurance, and another 34% report likelihood of making a purchasing with the coming year.
Just as you do with your health insurance policy, it is important to also evaluate your life insurance policy. Understand exactly what is offered, what is covered, and the process of obtaining the life insurance, if that time comes. It is also important to evaluate any time limits or terms that are associated with the life insurance policy. Fortunately, more and more people are considering life insurance plans today. Approximately 40% of Millennials showed some level of interest in a life or LTC combination policy, and 25% of all consumers said they would be interested in such insurance products.
The country is constantly working on improving health and life care policies. In the meantime, however, it is crucial that you understand your current insurance policies. Although health insurance is usually offered through your place of employment, you should still evaluate your current plan and the stipulations surrounding it. It is also necessary to consider life insurance and to understand how much and what type of coverage is included in your work benefits package.