Cost of Medigap Insurance

As far as health insurance goes, one can never get too far ahead of selecting the perfect supplemental insurance plan before eventually running into the question of the cost of Medigap insurance. It’s simply the nature of finding the best insurance policy; you have to balance cost with coverage in order to find the plan that suits you best. And given the multiple issues surrounding health care nowadays, having the right supplemental insurance policy becomes even more critical.

So let’s get to the most pressing question surrounding the cost of Medigap insurance; how can you know if the policy you are considering is the best policy to purchase for your as well.

• The first thing you need to think about is the coverage that you need. How much of a deductible suits your requirements? Do you frequently travel out of the country and need insurance coverage while you are out? Do you need supplemental coverage for prescribed medicines? How frequently do you go to the doctor for a check-up? All of these questions can help establish the scope that you will require from your preferred policy. Naturally, more frequent visits to the doctor imply a higher deductible is favorable to your situation so you would want to choose a plan that meets this need.

• Now that you have an idea of your needs, study the different Medigap plans closely to determine which ones more closely match your requirements. All in all, there are around 11 Medigap plans currently on offer, each one with subtle but notable differences from each other. If you need help, you can always head to or call your state health agency to speak to a representative that can break down the specifics of each plan for you. When in doubt, ask specific questions so they can be answered in the most concise way possible.

• Now you are ready to begin considering the cost of Medigap insurance. While all insurance companies offer the same Medigap plans, you might be surprised to know that the costs are different from company to company. This is because every company uses different pricing methods and are likely influenced by in-state conditions that help set the cost of the premium. It’s advisable to consider at least 5 different offers for a specific plan in order to gain a better understanding when it comes to the different cost of Medigap insurance from company to company before coming to a final decision.

• With a list of offers in-hand, it all boils down to preference. Remember, the cost of Medicare supplemental insurance from company to company varies but within that, you may also see different pricing from year to year. Company A may be priced lower in Year 0 but the year-to-year increase may eventually result in a higher level of spending. You want to be familiar with these nuances as a guiding principle when making the decision.

The cost of Medigap insurance is crucial to selecting the right plan but it has to be closely evaluated side-by-side with the plan coverage. Take your time to follow the process we outlined so you have a more systematic approach to choosing the Medigap plan that’s right for you.

This has been a general discussion on Medigap cost, but if you would like to have a more in-depth look at the subject be certain and check out the huge collection of articles displayed on our website.

The Skinny on Insurance

I wanted to discuss some miscellaneous insurance products. You will find that you have some hidden insurance costs that can be eliminated and put more money in your pocket for your debt reduction.

Insurance attached to purchases

There are insurances offered, at time of purchase, to cover service contracts that are supposed to cover repair costs for phones, appliances, automobiles, etc. First, aim to search your purchase and loan papers to find and cancel the unnecessary coverage you have. One life example I have is of my grandmother, who bought a washer from a major store, and paid for the warrantee for 20 years! She got her service calls “free”, but paid for the washer 5 times over! Your second aim should be to habitually refuse buying high-priced gimmick insurance no matter the sales pitch.

Insurance attached to loans

There are a lot of names for this insurance: credit life, credit disability, mortgage life and charge guard. These extended warrantees are attractive because if the manufacture’s warrantee expires, this extended warrantee covers your needs for repair. There are limitations, conditions and loopholes in the fine print. It is a potential rip-off. Often, service contracts are prepaid, so the dealer gets your money long before you need the service. You may end up paying 40% more on your automobile! The list of what is NOT covered is long. Check the fine print and see for yourself.

Cancel your extended warranty and get a refund. You can do this by placing your request in writing and include vital information such as the loan number and date purchased. Ask for the refund, or request that one or more payments be knocked off of the end of your loan, equal to the amount of the unused portion.

Flight, accidental death, student accident insurances

Do not waste your money on these offered policies. If you need life insurance, buy term life. It will pay regardless of how you die and dollar for dollar is a much better value.

Flight Insurance pays if you die in a plane crash. Over-priced specialty insurances are a waste of money. If you need life insurance, buy term, it will pay regardless of how you die and dollar for dollar is a much better value.

Free accidental death and dismemberment insurance usually will pay $1,000 or so if you die or are maimed in an accident. Sounds like you have nothing to lose, but by taking this coverage, you are subjecting yourself to endless sales pitches, telemarketing and direct mail to try to sell you increased limits of this worthless coverage.

Student accident policies offered through your child’s elementary or secondary school usually runs $30 a year for school hour’s coverage and around $150 for coverage around the clock. Specialty coverage like this only pays for certain accidents and is usually a secondary coverage, paying only what your regular health insurance does not. You cannot collect twice for the same malady, so what you are essentially insuring is part of your deductible, a big financial no-no.

Hospital indemnity

Hospital indemnity pays you a set amount per day-usually around $100 if you have to stay in the hospital. Premiums run a few hundred dollars a year. Adequate medical insurance should cover hospital expenses, so you won’t need to pay for this as an extra expense.

I hope you will take the strategies for insurance that I have been sharing with you and use them together to create one comprehensive, low-cost insurance plan. A typical family of four can easily pay as much as $6,700 on the myriad of apparently logical insurance options available. By applying the strategies I have shared with you, my typical clients cut their insurance costs to $2,030, giving a savings o If you’re like my average client, you could potentially save $4,610 which you could then redirect to your accelerator focus fund.

I strongly challenge you to now apply all of the insurance strategies I have shared with you. Obtain at least 10 quotes from 10 different insurance providers. Move your insurance coverage to whichever “A rated” company offers you the lowest premium. Although this can be a very time consuming process, the savings will be well worth the invested time.

Medigap Comparison

The importance of Medigap comparison prior to selecting the right supplemental medical insurance for you or someone in your family cannot be overstated. With medical costs going through the roof in the last few years, it is very important to find a plan that suits your needs at a competitive price. The make-or-break moment happens during the plan selection process where prospective policy owners need to consider all the important aspects in order to come up with the best offer that works for them.

The best Medigap comparison strategies take the following into consideration as primary basis for deciding on the best supplemental insurance policy currently on the market:

– Scope. The reason why prospective policy owners consider getting Medigap in the first place is because their basic Medicare is most likely not sufficient to cover all their medical needs. The best Medigap plan, therefore, has to fill the areas where Medicare is not adequate. This requires understanding the exact services and benefits contained in specific Medigap offers and then using those details to make an informed exercise in Medigap comparison. When looking at the specific scope of the offers, the most comprehensive does not necessarily become the most ideal. The goal is to be able to match the scope of the offer to the specific needs of the policy owner in order to maximize the policy benefits without having to get a plan beyond what one needs.

– Price. Different companies have different methods of defining the price for Medigap plans. The first basis is the scope of the plan; a plan with a limited scope of benefits is more likely to be priced lower than a more comprehensive plan. When engaging in Medigap comparison, it is best to compare the price of plans with the same scope from different providers because that serves as the perfect apple-to-apple comparison as opposed to comparing Plan A from Provider A and Plan B from Provider B. This also serves to highlight the importance of knowing the specific needs of the policy owner prior to comparing different Medigap plans.

– The Price Ladder. The price on Day 1 of any Medigap plan is not likely to remain the same over the lifetime of the policy. Many policy holders make the mistake of solely looking at the price on Day 1 when doing their Medigap comparison, only to later realize that the rate at which the price climbs every year squeezes their financial resources beyond what is tolerable. Conversely, there are plans that may cost higher on Day 1 but have a more gradual price jump over the years. Proper Medigap comparison should be able to factor these considerations as a basis for determining the suitability of any policy.

– Customer Service and Company Policies. The last thing a policy holder needs is to deal with a company that does not seem to put the best interest of the clients at heart, and there are more than a few out there. If filing for a claim makes you feel like you are asking for something special, a cheaper price can not compensate for bad service. Do not ever forget to read reviews when doing your Medigap comparison as this can help you see the companies in consideration from the perspective of other clients and their experiences.

A Medigap comparison exercise will help prevent any surprises over the course of a policy’s life and given the needs and considerations of those in their late 60s to early 70s, nothing else should be expected. Take the time to compare the different Medigap plans and Medigap cost offered on the market using the considerations outlined above so you can fleece out the appropriate details that will help you come to an informed decision about the best plan for you or for a beloved family member.