Q. How do I determine which type of life insurance is best for me?
A. (Batten) First, you must determine why you want coverage. My answer includes asking yourself some questions: Do I need to cover a large mortgage payment and the cost of raising a family? Do I want coverage that will help pay college tuition? Do I need to protect my family from the high cost of inheritance tax? Do I just want to cover final expenses of a funeral, etc.? A low-priced policy that doesn't meet your needs is no bargain.
The best tip I can give is to buy when you are young and healthy. The cost remains low over the life of the policy and if you become uninsurable at some point you may not qualify for additional coverage.
Q. How can the average consumer educate himself about insurance?
A. (Whelan) I believe the average consumer should rely on an agent they can trust. Choose someone who is a professional in the field. If they are a CLU, CFP or CPCU that means they have studied and gone the extra mile to prepare them to help their customers solve their insurance-related problems. That agent can provide clients with articles and documents to help them learn more about the vital role of insurance in their lives.
Q. Can I save money on Medicare supplement insurance?
A. (Batten) There are 10 state-approved Medigap policies. The cost can vary by plan coverage, age and health. There is a high-deductible plan with significantly lower monthly costs than the others. However, this plan isn't right for everyone. To get the most value for your healthcare dollars, you not only need a plan that meets your needs, but also a company with a history of paying bills on time. Choose one with servicing agents available to you, not just an 800 number.
A. (Whelan) The Medicare supplements are governmental programs and there is a special information booklet available through the state. Most of them cover the basics such as the costs of hospitalization, doctor visits and prescription drugs. To save money, you can take one of the plans with a higher deductible and one that requires you to handle more of the claim paperwork instead of your doctor.
Q. What should I consider when exploring long-term care insurance?
A. (Batten) Here again, don't depend on a one-size-fits-all plan. Begin your coverage when you are in good health and in your early 50's to set your premium low for the life of your policy. This will result in less overall cost even though you will carry the policy for more years.
The most important consideration in long-term care insurance is your overall health. Once you become ill you no longer have the option of transferring the risk of high long-term care costs to an insurance company.
Q. What do you think is the best way to save money on insurance?
A. (Whelan) The best way one of my clients can save money is by accepting some of the risk. That's what insurance is all about - accepting risk. In the health insurance field, you can pay less on your premiums if you utilize higher deductibles and higher co-insurance payments on office visits or the prescription drug programs.
In keeping with the overall theme of wellness, if you are a non-smoker that will save you money in the long run. I recommend that my clients practice healthy lifestyles. You can't do anything about your family health history, but you can lower your cholesterol level, lose weight and decide whether to smoke.
For more information, contact Jim Whelan at Whelan & Company, 269-657-7064 or Ellen Batten at Banker's Life & Casualty Company, 269-720-9782.
