Jun
18COBRA insurance is definitely an important program to research
Filed in: Miscellaneous Insurance News by Adam on 06-18-10
Contrary to popular belief, COBRA is not a type of insurance company for former employees or retirees, but in fact, it is a federally mandated law. Passed in 1986, the Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, gives certain individuals who qualify, the right to temporarily continue the group insurance policy they previously held. COBRA insurance allows past employees the ability to continue health coverage under the group discount rates.
Unfortunately, life insurance is not covered under the COBRA plan, but qualifying individuals may be entitled to dental and vision, prescriptions and even inpatient and outpatient hospital care.
While many companies pay for a portion of the group health care, one stipulation of COBRA insurance is that the individual covered must pay in full for their coverage. Usually this is more expensive than what they paid toward their employer sponsored group policy while they were employed. However, the policy will still at a better group rate than if the individual were to get insurance coverage on their own.
Family and dependents are also covered under the COBRA law. If your group insurance plan covered your family while you were employed, they will receive the same benefits if you continue coverage under COBRA.
One of the biggest benefits to COBRA insurance is that it provides much needed protection to those with pre-existing health conditions. When you take advantage of continuing coverage under COBRA, you are under the same policy you were with during your employment. If you choose not to continue your coverage under the COBRA plan, and are without insurance coverage for more than 63 days, you will not be covered for pre-existing conditions when you go to buy an individual policy. The COBRA plan ensures that you are continually covered until you switch to an individual plan, keeping out of the ‘pre-existing conditions’ nightmare.
COBRA benefits usually continue for eighteen months after initially signing up to use COBRA. There are options to extend this amount of time with certain qualifications, which must be met. Electing COBRA insurance also helps if you have a relationship with a specific doctor that you would like to continue. Nothing changes while you are under the COBRA plan.
Time is of the essence when leaving a group health plan and opting for individual coverage. COBRA has an eighteen-month time frame which should allow most people time to find an adequate individual plan. It’s wise to use this time to price multiple individual health insurance plans which provide access to the doctors and clinics that are preferable.
If you do choose to accept COBRA coverage, you have 60 days to file the notice. After you have accepted the COBRA insurance, you then have 45 days to make the first payment into the plan. Many previous employers will follow up by the 44th day to make sure you did not forget about the option to elect coverage under the COBRA law.
If you have recently lost your job or are concerned that your employer may be downsizing, COBRA insurance is definitely an important program to research. Signing on with COBRA will ensure that any pre-existing conditions are covered once you leave COBRA for an individual policy. Taking full advantage of COBRA is well worth the cost just to provide peace of mind for you and your family.
May
08Buying Life Insurance After Being Diagnosed With Cancer
Filed in: Miscellaneous Insurance News by admin on 05-08-09The American Cancer Society estimates doctors will diagnose over 1.4 million new cases of cancer in the U.S. in 2007, with more than 559,650 cancer-related deaths. If you are among the majority of cancer patients and survive for at least five years following your diagnosis, you may face another fight: buying life insurance.
Buying life insurance for cancer patients is challenging, but not necessarily impossible. Your chances for securing a policy depend greatly on the type, stage and grade of the cancer, and even on the treatment plan. There is a relationship between the rate you’ll receive and the curability of your cancer. Certain types of skin cancer, for example, are considered very low risk by life insurance companies and a skin cancer history may not even impact premiums.
Applicants with common and treatable forms of ****** and prostate cancer may be able to get a “standard” rating under ideal circumstances. But patients with a history of leukemia or colon cancer may fall into a “substandard” or “high substandard” rating at best, or receive declines. Anyone with cancer that has metastasized likely won’t be able to obtain a policy.
Dr. Charles Levy, senior vice president and chief medical director of AIG American General Domestic Life Insurance Cos., says, “We’re better and better able to differentiate the risks of individual cancers.” Life insurers like AIG American General have sophisticated tables to determine premiums, where they can factor in cancer types and treatments. The end result is better premiums because applicants aren’t lumped together as an “average.”
Most insurers will not offer a policy to someone who is still undergoing treatment for cancer. Depending on your type of cancer, the life insurer may also want to add a surcharge, also called a temporary flat extra. For example, AIG American General sometimes charges temporary flat extras for two to five years, depending on the applicant’s cancer and treatment. The good news is that although these extra premiums can be expensive, they will automatically disappear after a set period of time.
Cancer insurance risk specialists
While a dedicated life insurance agent will search cancer insurance companies to find insurers that will sell you a life insurance policy, in some cases you may be better off seeking out a broker who specializes in finding life insurance for people who have a history of cancer.
These brokers will know the specific questions underwriters will want answered when considering your application. Many brokers have developed relationships with several insurers, so they know which companies offer the best-priced life insurance policies for cancer survivors. Some brokers have experts who specialize in gathering your medical records and organizing them.
By directing your application to life insurers that will view your application most favorably, these brokers will help you find the most accurate price quotes and the lowest premiums for life insurance. Always check the financial strength of the insurer before you buy any policy and be sure that the agent or broker you choose is licensed in your state.
Life insurance strategies for cancer survivors
If you are a healthy cancer survivor, life insurance is even more feasible. There are things you can do to ensure you’re getting the best premium offers possible for your situation.
1. Gather all possible medical records before you apply, from the first pathology report to medical records to treatment records. That ensures medical underwriters have the most complete picture of you, your health, and your cancer history. Having all those records before you apply for cancer insurance will reduce delays in your application process, because your life insurer is going to request them and will wait for them. The information you provide can garner you better premiums in the end: The less life insurer underwriters knows about you, the more likely they are to have to assume you are the highest risk and offer you high premiums accordingly. According to Levy, “If it’s fuzzy, we’re more likely to err on the side of conservatism.”
2. Make sure you have complied with your doctor’s treatment plans. For example, says Levy, if your doctor asked to see you back in one year and you haven’t been back in four years, get to your doctor for your check-up before you apply for life insurance. Your life insurer is not going to offer you a policy without before seeing the results of that check-up. Similarly, if you’ve had ****** cancer and you’re due for a mammogram in December and you apply for cancer insurance in October, your life insurer will likely wait for the results of your next mammogram.
3. Get prices from several companies. Policy costs can vary a great deal among companies.
4. See if you can get group life insurance through a professional, fraternal, membership, or political organization to which you belong.
5. Consider a “graded” policy (one with limited benefits) if you cannot get full death benefits. In the first few years of a graded policy, the company pays only the premiums and part of the face value if the insured person dies of a condition, such as cancer, that existed before the policy took effect. If the insured person dies after the specified grading-in period, the company will pay the full face amount of the policy.
If your cancer has been successfully treated, and you are otherwise in good health, you can likely obtain a cancer life insurance policy. If you can show that you are healthy and your treatments have gone well, several insurers may compete for your business.
