What do accelerated benefits mean in health care?

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Accelerated benefits are benefits that certain life insurance companies offer as policies, ones that allow policyholders to receive the amount agreed upon on the plan before their death. Usually, such benefits are only released to the policyholder after maturity, or to the family of the holder after their passing.

Another term used for accelerated benefits is living benefits or accelerated death benefits because the main reason why such a policy is activated is when the policyholder succumbs to a serious injury, chronic sickness, or terminal illness that require extensive and often long-term care.

Beneficiaries are entitled to this when doctors have determined via diagnosis that the life expectancy of the policyholder is nine months or less. Of course, only the policyholder can apply for an accelerated benefit. Typically, only 50 percent of the insurance coverage can be released when the insured avails of their accelerated benefit, which can be used for home renovation, a trip abroad, paying extra medical care, etc.

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Even when the actual accelerated death benefit is applied for, the policyholder must continue to pay a yet-to-mature policy while already receiving the benefits. However, there’s no need to repay the benefits, as the loans are, in such scenarios, just taken from the face value of policy when it matures. It is highly advisable for those interested in availing of accelerated benefit to ask their insurance if this option is part of their policy to begin with, as it’s a relatively recent industry addition.

State Mutual Insurance is a legal reserve mutual insurer providing Medicare subscribers supplementary health insurance coverage. The company sees itself as a national insurer with a commitment to community service and the health security of American citizens. Follow this Twitter page for related posts and insights on the insurance industry.

Top reasons why you should get Medigap

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Medigap is a supplement plan you can get if you have Medicare insurance and if you are 65 years old or older. It is composed of 10 different Medicare supplement plans that help your main plan by offsetting some of the out-of-pocket costs. And unlike Medicare which is administered by the government, Medigap plans are offered by private insurance companies. Here are some of the top reasons why you should enroll yourself for Medigap.

Lower costs of durable medical equipment Depending on your condition, your doctor may prescribe medical equipment such as a walker, a wheelchair, or even a fully functional hospital bed for your home. Medical equipment can get expensive, given that they are not covered by Medicare. Medigap can help ease the burden as it generally covers 20% of the purchase.

Stay insured while traveling If you travel often but have medical conditions to worry about, travel insurance will get expensive. Good thing that several Medigap plans can cover foreign medical expenses. Medigap plans can provide up to 80% foreign travel medical emergency worth of coverage up to plan limits.

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Helps you pay regular doctor visits Some health conditions require regular visits to your doctor. Even with just Medicare, your out-of-pocket expenses can pile up significantly. All standardized Medigap plans pay for at least 50% worth of Medicare-covered doctor visit copayments.

Great basic services Even the most basic Medigap plan can significantly help you in different situations. For example, it can cover the cost of blood for up to 3 pints. Plan A, the most basic plan, also covers hospice care coinsurance and copayment. It also gives coverage for coinsurance and hospital costs to up to an additional 365 days after the Medicare benefits have been used up.

State Mutual Insurance is a Legal Reserve Mutual Insurer established in 1936. With its primary product being Medicare Supplement insurance, the company has made community service its primary mission as a national insurer. For more on the company and its services, visit this page.

Why you should get a supplemental health insurance plan

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There are many benefits to getting a supplemental health insurance plan, the main one being the fact that it’s a plan that goes beyond the basic medical coverage you gain from, say, your Medicare. It can remove financial worries for issues such as deductibles, co-insurance for minimum and extended hospital stays, and co-payments.

In other words, supplemental health plans significantly improve and expand your medical coverage. The insurance company will take care of providing your benefits, depending on the policy and the amount of monthly premium you enrolled in. People who avail of these add-on insurance plans are usually those looking for better long-term protection from such concerns as orthodontic care, hospital indemnity, and diseases like cancer. Others seek supplemental health insurance generally as a viable investment to assure better future health.

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The most common types of supplemental health plans are vision, dental, disability, and critical sickness insurance, extra coverage when traveling abroad, and short- and long-term care. Again, these plans go above and beyond what your normal health insurance covers, premised on a future-ready mindset that will benefit you and your loved ones.

Just keep in mind that not all supplemental health plans are the same, both in terms of coverage and rates. Make sure therefore that you avail of one that isn’t redundant with what you (or your spouse) are already covered for by your main health care insurance. The idea is to get one that offers the most comprehensive security benefits for a good price.

State Mutual Insurance is among the leading legal reserve mutual insurers in the country. The company is committed to giving Americans their right to comprehensive health security. More on the benefits of supplemental health insurance here.

A primer on mutual insurance companies

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Mutual insurance companies are governed by overarching federal law, and they exist to provide insurance coverage for members and policyholders. In this setup, members have the right to select the management. In short, a mutual insurance company is owned by its policyholders.

This type of insurance guarantees that promised benefits can be paid over the long term; policy owners are better protected from aiming simply for short-term profits since mutual insurance companies are not tradeable on stock exchanges. To maintain their existence, these insurance companies take a large percentage of their funding from member premiums.

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Mutual insurance companies are now common all over the world, gaining more members who have the right to excess premiums, meaning they are given an assurance of receiving dividend payments or reduced premiums in case the insurance company gains losses. Today, as a way of gaining self-insurance, many large companies everywhere are forming their own mutual insurance companies by teaming up with similar businesses that have separate budgets.

There have been major changes in the insurance industry in the last two decades, including demutualization and conversion of certain companies into stock ownership. Yet mutual insurance companies endure because they maintain the goal of providing members coverage at cost or near it.

State Mutual Insurance was established in 1936. As a legal reserve mutual insurer, it provides Medicare subscribers supplementary health insurance coverage. For more reads on insurance policies and their benefits, go to this blog.

What does 'legal reserve' mean in insurance?

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Legal reserve refers to the minimum reserves a life insurer must establish in its insurance contracts, as determined by existing laws in U.S. states. In other words, legal reserve life insurance companies need to comply with the reserve fund requirements established by state insurance laws to legitimize its business and to operate.

What’s advantageous about a required legal reserve policy is that it ensures the payment of benefits to policyholders. Here, a sizable amount of the calculated premium goes into the reserve fund of the owner of the policy. This actually counts as a liability to the life insurer, but it is put in place by the governing State Insurance Department to guarantee that consumers are fully protected.

The State Insurance Department also oversees the review and approval of all life insurer policy forms and even sales materials before they can be made available to the public. It also keeps watch of possible illegal mergers and handles consumer complaints.

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 With more than a trillion U.S. dollars of death protection being provided today by the life insurance industry, the legal reserve fund is key in both determining and measuring a life insurer’s assets and maintaining its commitments to the policies it has issued. In short, these are key financial safeguards that guarantee living and death benefits for everyone insured.

State Mutual Insurance was started by a group of friends who wanted to give service to the community back in the 1930s. For over 70 years, the company has been providing quality Medicare Supplement insurance, following its commitment to giving Americans complete health security. More on the company here.

Insurance and the elderly: The ideal coverage

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A lot of people look forward to retirement because it symbolizes the completion of a lifelong journey. In a perfect world, people would simply stop working and enjoy life. They would travel and explore places, take on new and interesting hobbies, and spend a lot of time with the people they love. Retirement offers a lot of exciting prospects.

But people should not let this excitement get in the way of other important matters, such as insurance. It’s common knowledge how a person’s health declines upon reaching the senior years, which is why health insurance is important. Without health insurance, a person can burn through the nest egg upon falling ill.

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Retirees should check their insurance policies and its coverage before they retire. Insurance policies have expiration dates and some may no longer apply post-retirement. Not all insurance packages are the same.

The most practical of all the post-retirement insurance is medical insurance, such as the ones provided by Medicare. With healthcare prices at an all-time high, medical insurance serves as an important buffer. People should consult with companies, because while some insurance packages cover almost all of a retiree’s needs, they may end up being too expensive.

State Mutual Insurance is currently a national insurer for Medicare Supplement Insurance. Learn more about them when you visit their website.

Who can avail of Medicare Supplement Insurance?

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The short answer is, those who already have Medicare. But the requirements and other circumstances go further. Americans become eligible for Medicare when they turn 65. Moreover, the open enrollment period or the window wherein enrollments in Medigap are welcomed and uniform in premium price regardless of the health of the future policyholder, starts on the first day of the month the latter turns 65. This will be a six-month window thereon.

The Open Enrollment period is crucial for people with health problems. Buying Medicare Supplement Insurance during this time saves a lot on additional premiums insurance companies might charge for those with health problems.

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 Meanwhile, those with health coverage provided by their employer and union might find themselves tempted to avail of a Medigap policy right away. This could be costlier for certain reasons. One is that employer health coverage usually covers benefits similar to those in Medigap. Those with employer health coverage could then defer enrollment in Part B of Medicare (a prerequisite for Medigap) because this will set off the open enrollment period, even when one does not intend to avail of Medigap.

The age exemption for Medicare eligibility applies to those with End Stage Renal Disease (ESRD) and those with Social Security Disability Insurance (SSDI). At this point, however, their purchase of Medigap policies is optional, and insurers are prohibited by law to sell Medigap policies to people below the age of 65.

State Mutual Insurance started out as a group of friends who wanted to give service to the community back in the 1930s. For 70 years, the company has been providing quality Medicare Supplement insurance, following its commitment to give American citizens their right to complete health security. Read more about Medicare Supplement Insurance on this blog.