There is a HUGE difference between Major Medical and Limited Medical Insurance!
Many people that I talk with are pretty happy with their major medical plan. They pay their monthly premiums (the hard part that they're not too happy about) and know that if something major happens, they are covered! That's security. They are insured. That's what insurance is for. Protection against losing your assets, equity in your home, retirement funds, etc. should you come down with a major illness.
However, there are quite a few that I talk to that are paying unusually LOW premiums for what they believe is a major medical Plan. Once I do a review of what they have I often find that they don't have a solid major medical plan at all. What they have is a Limited Medical Plan. They are left WIDE OPEN FOR FINANCIAL DISASTER should something happen to them (ie. cancer, heart attack, stroke). We all know people that have had major problems. In fact, 1 out of 3 of us will at some point in our lives come down with a Critical Illness.
It is important to understand the difference between Major Medical and Limited Medical Insurance.
Major Medical
Provides catastrophic coverage and high limits of coverage (typically $1 million annually and $5 million as a Lifetime benefit). Because the cost of major medical has been increasing, insurance companies have provided options, called deductibles, up to as high as $25,000 in some cases. This very high deductible would certainly be affordable with monthly premiums to the insured, provide protection against a $100,000+ medical bill and be a last resort for those looking for a cheap payment. Deductibles typically range from $1,500 and higher.
Limited Medical
Provides the guarantee of affordable insurance but limits its coverage to everyday illnesses and accidents. In addition, the maximum benefits paid in each medical situation are capped (limited). This leaves an insured WIDE OPEN FOR FINANCIAL DISASTER should a major medical issue arise. Limited Medical is considered "Supplementary" in many cases since it should "come alongside" a persons Major Medical Plan.
If our world were ideal, everyone would have a quality Major Medical Plan. However, due to pre-existing conditions and sometimes cost-prohibitive monthly premiums, many people are unable to obtain their own policy.
National Health Care Debate
There continues to be much discussion about nationalizing health care. This is a big week in our government with potentially major changes. There may be good reasons for the discussion, but as usual, when the Federal Government gets involved the outcome is less than rosy. But, to stay on topic and not get political, there are resources today for the uninsured without the need to nationalize health care.
In Illinois there are three major government sponsored health care plans for those who either can't afford it, have a pre-existing condition or are 65 and older.
- All Kids - www.AllKidsCovered.com
- ICHIP (I Chips) - www.chip.state.il.us
- Medicare - www.Medicare.gov
Check out the websites if you are in a situation as described above. The sites will give great information should you be in a situation where you can't get your own health insurance.
Critical Illness Policy
As mentioned earlier in this blog, 1 out of 3 of us will at some point in our lives come down with a Critical Illness. Did you know that a policy exists where for a relatively small amount of money monthly you can be covered in case you come down with a critical illness? This specific coverage is designed to pay for your monthly expenses for several months while you're recuperating from a heart attack, cancer, stroke, etc.
Unfortunately many people are not covered with any insurance right now due to the economy and cost of insurance. This plan will provide a lump sum amount of CASH within a month of first being diagnosed with a critical illness. Our office has had several clients this year already collect on this policy. In many cases it has been the difference between losing some of their assets or getting further into debt or being able to pay for the monthly expenses of living.
As always, if you're in Illinois and have questions about your health insurance, real estate or mortgages, give me a call at the number below.
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