When we think of insurance, we should think that the purpose of insurance is to shift the risk to an insurance company rather than take on the risk ourselves. In some cases we take on the risk. In other cases, it makes sense to let the insurance company take the risk.
I want to bring your attention to a policy that I provide to people. First we have to realize that there are many different types of insurance that are offered. I helped several clients with one that I will describe in particular.
This product is an indemnity type product. It falls in the category of a health insurance products, and pays out cash to the policy holder when there is a qualifying medical event.
There are several types of “mini” benefits all build into one policy as follows:
Accident Policy: Up to $10,000 benefit.
Emergency Room & Urgent Care: $500 benefit for up to 10 times /yr.
Hospital Admittance: $500 per day for the first 3 days.
Ambulance: $50.
Critical Illness (Cancer, Heart Attack or Stroke): $2,500 in the 1st yr. or $25,000 in the 2nd yr(s).). (Primary & spouse only)
Life Policy: $10,000 (Primary & Spouse only)
Accidental Death & Dismemberment: $5,000
Open Enrollment: All Year Long
Guaranteed Acceptance.
Premiums: Single $60/mo Family $105/mo Regardless of age (18 to 64).
Case Study #1. One client purchased the indemnity plan for $105 for the family. Six months into the plan I received a call that she had breast cancer. She received a benefit check of $2,500 (1st year benefit) because of having a first occurrence cancer. She was grateful for having this indemnity policy in addition to her major medical policy. (This actually happened to two of my clients.)
Case Study #2. A third client had a medical event in the Emergency Room followed by a 7 day hospital admittance. She received $500 for the emergency room and $500 for each of the first three nights of hospital admittance ($1,500). Total benefit $2,000. Her premium is $60 / mo.
Then this month she called me to tell me the news that she had breast cancer – detected early. In this case, it was the 14th month when the first occurrence cancer was discovered. Therefore, her benefit will be $25,000 (tax free). I was glad to have offered her this policy for the many benefits that it offers.
This is how we leverage insurance to our benefit.
I see many insurance companies and different types of policies and this policy is a good one. I have it for my family as well.
Please feel free to share this article with your friends and family.
Note: Policy language supersedes the above general outline.
About the Author: David Banet is a Licensed Insurance Counselor (Health & Life) and licensed in life, property and casualty insurance that helps people and small businesses with their health, life, business and retirement needs with insurance products. He has written over 100 articles on insurance. David is a family man residing in southeast Michigan, and is licensed in Michigan, Ohio, Florida, Illinois, Indiana, Pennsylvania and Tennessee.
He is an independent broker which means that he represents many insurance carriers. There is no charge to enroll in a health insurance plan for his services.
David has given several educational seminars on Medicare Basics in the neighboring community.
