Do I Need An Out-Of-Pocket Protection Plan?

As we are in the middle of open enrollment for ACA (Obamacare) plans, we are seeing that many individuals are selecting higher deductibles, fewer copays and more out-of-pocket costs to make their health insurance premium more affordable. These out-of-pocket costs may still cause unnecessary burdens to many people. 

As a matter of fact, the number one reason for bankruptcies in the country is medical expenses, with the percentage being estimated at over 60%. In 2015 the Kaiser Family Foundation found that medical bills caused 1 million adults to declare bankruptcy. The same survey also found that 26% of Americans between the ages of 18 and 64 struggled to pay their medical bills. 

When a family member has a medical condition and has to go to the hospital, they don't need added financial burdens. Our new Out-Of-Pocket (OOP) Protection Plan* is designed to help pay some of the costs that most families will experience from higher deductible plans with fewer benefits. 

Having a policy that covers out-of-pocket expenses for hospital stays could not come at a better time. The news is filled with statistics of Covid cases on the rise, and hospitals filling their rooms. Because of this, we have had an increase in interest for plans like this. 

  This plan pays directly to the policyholder. There are no networks nor deductibles. Even filing a claim is simple. And the benefits are paid directly to you in one lump sum, not the hospital or the doctor. Plus the plan pays in addition to any other insurance and workers compensation.

The best part is that you can choose the benefit and premium. For example, you can decide what amount of benefit you would like for your daily inpatient hospital confinement benefit. Next, you decide on how much you would like for your first hospital admission benefit. Included in this is a $50 benefit for doctor office visits (2 each year). 

There are also optional benefits, like an outpatient surgery benefit (limited to 2 a year) and an emergency accident benefit (limited to 4 per year).  It even covers maternity as any other illness. Not many plans do that!

You probably would like to know how much a plan like this costs. The best way to find out is to run a  your own quote which you can do by clicking here. You can cover yourself, you and a spouse, you and your children or the entire family. 

If you are trying to save money by choosing a high deductible health insurance plan, be aware that one hospital stay can burden your family's finances. By having a policy to cover those deductibles, copays and coinsurance costs can keep you afloat when you need it most.

People don't plan on being admitted to the hospital, much less having to be confined for a week or more. Those out-of-pocket costs will definitely be there when you are released from the hospital, but what about your other bills? For those of us who are self-employed, spending days in the hospital means not working, and not working means not making money that pay our usual bills. Housing, utilities, groceries and car payments can add up quickly if you don't have the money. As I mentioned earlier, this plan pays you so you can take care of those monthly obligations. 

If you have questions about this plan or any of our other insurance plans, please leave us a note in the comments section below, or go to our website at www.SurfFinancialBrokers.com and book a phone appointment. In the meantime, please stay healthy! 

*Not available in Virginia

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog! Thanks!

Real Estate Agents and Disability Insurance

In my area there are hundreds, if not thousands, of real estate agents. A lot of these people have become clients of mine over the years as I've built networking relationships with them and their affiliated industries. As a matter of fact, the local realtors have their own networking group that rivals any of the local chambers of commerce. 

Realtors are there own kind of entrepreneurs. There are times when the market is up, like pre-2008 when home loans were available to too many people who couldn't afford them. Let's face it, everyone would like to own their own home, but not everyone has the means to do so. And the realtors sold a lot of homes. Then the crash came and their businesses dried up. A few hung in there but times were lean.

The market rebounded until recently with the advent of the Covid-19 virus slowing things down. Nothing like 2008 (so far) agents can still show homes virtually, so it's more like a speed bump. I personally think the market will come back and the agents can get back to showing property in person. 

With the pandemic as the current backdrop, I've had more interest in Disability Insurance (DI) recently from real estate professionals. Seeing how tight their bills can get while having a drop in income has been a sort of wake-up call, and with the threat of a virus possibly taking them out of work for a few weeks, agents are starting to look into DI. 

I was having a conversation recently with one of my agents, who works in Charleston, SC, on the topic of DI. She also has been getting interest from realtors and others in the sales industry. After speaking with her I asked called some of our other agents on the east coast and they also had an increase in calls. One of the great things about Surf Financial is that we have a great network of agents who are eager to compare notes and study these kinds of trends.

If you're a realtor and interested in what a policy might cost for you, click on the "Get a Quote" link in the upper right hand corner of this post. For job classification, make sure to enter "Class 5" from the drop down box. And if you're interested in a brochure on why real estate professionals need DI, click here. 

As always, please stay healthy and let us know if you have questions. We also appreciate your referrals to this blog and our website. 

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.

How Your Disability Insurance Can Help You Now Part 2

When I talk to groups about various coverages we offer, I mention the Holy Trinity of insurance, which is their major medical, their life insurance and their disability (DI) coverage. That's how important I think it is. In the previous post we went over the basic premise of disability income insurance  and why you may want to enroll in it. Let's take a look at a few other aspects of this part of your financial game plan.

One of the important things to consider when purchasing DI is the elimination period, which is the number of days before the benefits actually begin. For instance, let's assume that you get sick on January 1, but your elimination period is 7 days. Your benefits won't be "triggered" until January 8. Think of it as a deductible, but in time instead of dollars. And just like any other deductible, the longer the deductible, the lower the premium.

So the question to ask yourself is how long you can "self-insure" before the benefits kick in. If you have an ample number of sick days at your disposal then you can use those first and can stretch out that elimination period, thus lowering the cost of the insurance to you.

And some policies will have different elimination periods for sickness and injuries. Many group policies will have a "0,7" which means it will begin paying on the first day after an accident, but on the 8th day after a sickness. Be aware that if you have group coverage, maternity may be covered, but as a sickness (even though it may have been an "accident" lol). Individual policies will have longer elimination periods, like 30 or 60 days.

As I mentioned previously, your income will be looked at in the underwriting process. Some companies will want to see tax returns when you apply, but there are also carriers who look at this at the time of the claim. And if you are self-employed your income can vary from year to year. This was a huge concern for my realtor friends, so I picked up the phone and spoke to a claims specialist for one of the companies I represent. Her response was that incomes that weren't steady were already figured in to the equation and that "we just want to make sure they had a job when they became disabled". Makes sense.

Remember that your DI plan will generally cover a maximum of 60-70% of your income. To deter against insurance fraud (and we would never do that), you are allowed only one policy at a time. If you do have more than one, the companies will subrogate, or coordinate with each other to pay your claim. In other words, if you're paying more than one premium you will still be getting the same amount of benefits. As my mentor told me when I first got into the insurance business, "We don't want people making more when they're out of work than when they were working."

And yes, if you have a policy and contract the Coronavirus, you should expect to receive benefits for being out of work. However, be aware that just like any other pre-existing condition, if you've got the virus and apply after, you may be declined.

If you're interested in pricing for a policy, click on the "Get a quote here" box in the upper right side of this page. There's no obligation to purchase and you can get a decent ballpark on rates.

And please, stay healthy and let us know if you have any questions.

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.