Senior Connection Carrier: Insurance Coverage Explained

Senior Connection is a Medicare insurance agency that helps seniors choose the right insurance coverage to meet their needs. The company has been in the Medicare market for over 30 years, assisting seniors with their insurance options in a friendly, no-pressure environment. Senior Connection does not charge any fees for its services. It offers a range of insurance options, including Final Expense, Medicare, Long Term Care, Critical Illness, Mortgage Protection, and Annuities. The company's goal is to educate its clients about their Medicare options and ensure they have the appropriate life and long-term care protection.

Final Expense

Most final expense plans share the following features:

• Whole life insurance with no expiration if premiums are paid
• Cash value – the insured may be able to take out a policy loan
• Fixed premiums as long as they are paid
• Simplified issue – usually no medical exam is required, just health questions on the application
• Easy application process
• Fast approvals – coverage can often be issued within days

The cost of final expense insurance depends on factors such as age, gender, health, and coverage amount. The average cost is between $30 and $70 a month, but it can be higher for those over 70 or with significant health conditions. Seniors can typically expect to pay between $50 and $100 per month for $10,000 in coverage.

There are two types of final expense insurance plans: simplified issue and guaranteed issue. Simplified issue plans are the least expensive and offer immediate coverage, but they require the applicant to answer health questions. Guaranteed issue plans have no health questions and guarantee approval, but they have higher premiums and a two-year waiting period for non-accidental death.

When choosing a final expense insurance plan, it is important to compare offers from multiple companies and work with an independent insurance agent who can offer coverage from multiple providers. It is also important to read the fine print and understand the benefits, coverage limits, and any waiting periods associated with the policy.

Medicare

Part A and Part B are the two main parts of Medicare and are often referred to as "Original Medicare". Part A covers hospital stays, home health care, and hospice care. Part B covers doctor visits, outpatient care, and some preventative services. People new to Medicare can sign up for Part A and Part B through Social Security.

Part C, also known as Medicare Advantage, is an alternative way to receive your Original Medicare coverage. These are offered by private companies approved by Medicare. Part C usually includes Part D, which helps cover the cost of prescription drugs.

Supplemental Medicare insurance is also available to cover additional costs not covered by Original Medicare. This includes Medicare Supplement Plans, Long-Term Care, and Critical Illness Plans.

Senior Connection, a Medicare insurance agency, helps seniors choose the right Medicare coverage to meet their needs. They have over 30 years of experience in the Medicare market, working with seniors to find the best Medicare plan for them.

Long-term care

According to the U.S. Department of Health and Human Services, 70% of people aged 65 and older will need long-term care at some point, and 48% will need some form of paid care. The cost of long-term care services can be high, averaging between $60,000 to $100,000 per year. Long-term care insurance can help individuals cover these costs without depleting their savings.

There are two main types of long-term care insurance policies: traditional and hybrid. Traditional policies, also known as stand-alone policies, offer a predetermined benefit amount paid out daily, weekly, or monthly over a benefit period, usually two to five years. Hybrid policies, also known as linked-benefit policies, combine long-term care coverage with another benefit, typically life insurance or an annuity.

When purchasing long-term care insurance, individuals should consider their budget, assets, overall financial condition, and ultimate financial goals. The cost of long-term care insurance depends on factors such as age, health, gender, marital status, insurance company, and the amount of coverage desired. It is recommended to purchase long-term care insurance in one's mid-50s to early 60s while still in good health, as the likelihood of approval and the cost of premiums increase with age.

Senior Connection Center's Long-Term Care Services Unit can provide assistance and answer questions related to long-term care needs. They can help individuals connect with appropriate long-term care services in their area, assess their needs for waitlist placement, provide counseling, and make referrals if needed.

Critical Illness

A critical illness can happen to anyone at any time, and it often brings financial hardship. An individual may be unable to work for a period of time, and medical bills and other unexpected expenses can quickly add up. While a medical health insurance plan may cover some healthcare costs, it often won't cover everything. Critical illness insurance is intended to bridge this gap.

The amount of coverage provided by critical illness insurance varies, and policyholders can typically choose their amount up to a certain limit. For example, Aflac offers critical illness insurance with a lump-sum payout of up to $25,000 upon the initial diagnosis of a covered illness, and up to $12,500 upon the recurrence of a previous covered illness or the diagnosis of a new covered illness. MetLife, on the other hand, offers critical illness insurance with various maximum lifetime benefit amounts, allowing policyholders to choose their amount up to $100,000 for some plans.

Mortgage Protection

Pros of MPI:

• Guaranteed policy acceptance: MPI policies typically offer guaranteed acceptance, meaning you can't be denied coverage based on your health condition. This can be beneficial for those with underlying health issues or high-risk occupations.
• No underwriting required: MPI plans often don't require underwriting, and most policies don't need a medical exam for qualification.
• Peace of mind for you and your family: MPI ensures that your family won't be responsible for paying off your mortgage or losing their home due to foreclosure if you pass away or become disabled.
• Simple for your heirs: The insurance company typically sends the payout directly to the lender, so your family doesn't have to handle any financial transactions.

Cons of MPI:

• Extra monthly payment: MPI requires an additional monthly expense, which may be a burden if you're on a tight budget.
• Limited payout options: The MPI payout only covers your mortgage debt and cannot be used by your family for other expenses, such as taxes, bills, or funeral costs.
• Alternative policies may offer more comprehensive coverage: Traditional life insurance policies or term life insurance policies may provide a more comprehensive financial safety net for your family, covering lost wages, funeral expenses, and other end-of-life costs.

Who Might Need MPI?

MPI can be a good option for those who:

• Have underlying health conditions that could affect their long-term well-being.
• Are employed in high-risk jobs.
• Are young and having difficulty getting approved for a life insurance policy.
• Want to ensure their home goes to their heirs and give them the opportunity to take over monthly payments.

Cost of MPI:

The cost of MPI depends on factors such as the remaining balance on your mortgage loan, the time left on your loan term, your age, and the desired coverage amount. For example, a 50-year-old homeowner with $150,000 remaining on their mortgage and 12 years left on the loan might pay around $28.77 per month for an MPI policy covering the remaining loan balance.

Where to Buy MPI:

You can purchase MPI from your mortgage lender, private insurance companies, or life insurance providers. It's recommended to get quotes from several companies and compare premiums and coverage options before choosing a policy. Additionally, most insurance providers have a limited window for purchasing MPI, so it's best to make it a priority soon after closing on your loan.

Frequently asked questions