lance cashion: remote control

Save by gettng creative with your health insurance

I've taken some time off from the ole blog... I'm back!

As you get older, your premiums are going to increase.  That is the truth.  There is no getting around it.  Don’t panic! 

Get creative! 

For instance, I had a 35 yr old young lady who is opening her own business and needed insurance (she was being dropped from her group and COBRA was too expensive).  Her budget was around $130 per month.   That can be a tough one.  The key is to get her on something to cover catastrophic events for a year or two, while she’s building her business.  Keeping in mind that her situation will eventually change and she’ll have a bigger budget for her health insurance. 

The plan of action:
1. We start looking at high deductible HSA (Health Savings Account qualified) plans
2. We hedge against accident with a $5000 Accident Benefit for $29.95/mo
3. We address her desire for physician consultations with a free CallMD benefit (included with the Accident Benefit)
4. We agree that a $5000 (100%) HSA is what she needs for now at $109.00/mo

The result is a hybrid of Health Insurance and essential risk hedges that provide security and protect against catastrophic health events that could jeopardize her finances.  I'm willing to bet that when she does have the extra budget for health insurance, she won't use it.  Why would she?  She got a solid plan to begin with ;)

Budget Target: $130/mo
Cost: $138.95/mo
Benefit: $5 Million in coverage, $5000 accident benefit, CallMD, $5000 Max out of pocket for illness, $250 out of pocket for Accident ($250 deductible on benefit).

We got within $8.95 of her budget and other agents were quoting her $250-$300!  How can a new small business owner with a budget of around $130/mo survive and thrive with premiums eating her budget.  I’ll tell you what happens with most folks, they end up dropping their health coverage to meet payroll, pay a vendor or deal with an emergency.  That is dangerous and there is NO need for it when you get creative! 

Lesson over for today!

Thanks for reading

Lance Cashion

Question Day: Tuesday July 27

Today is Question Day!

Every day, I get several emails, calls and messages from folks with various insurance questions. So, I've decided to dedicate a day to giving you answers to your questions. My goal is to build a reliable reference for the people I serve without sales pressure.

I will prove that I provide the BEST customer service in the insurance industry!  Even if you are not a customer, I'll treat you like one.

We're going to keep this simple. You can ask your questions the following ways:

1. Comment Below

2. Email Me

If you have questions that must be held in confidence (ie. pre-existing conditions, health history, etc), please email me. By law, I cannot share information given by clients without permission.

Here are the areas I'll be covering this week:

-Individual Health Insurance

-HSAs

-Term Life

-Medicare Supplements

Let's see how this works out.

Thanks in advance for being a part of the process!

What is your question?

The Hybrid Health Plan of Tomorrow (post-Obamacare)

I was just running some quotes for a client.  We all know that we're going to see some huge rate increases in the next 6 months (Obamacare).  That does not stop folks from needing health insurance.  As an agent, I am responsible for directing this process for my clients.  They depend on my to make the right decision for them.  The choice that makes sense and will protect & provide for them in a time of need.

Here is what I came up with for a 45 year old female in Texas (good health).  She is currently paying $350 and its going to increase over $400 in June.

• HSA Plan 75/25: $2500 Deductible = $192/mo
• SBA $5000 Accident Coverage = $29.95/mo
• $20,000 Lump Sum: Critical Illness/Long Term Disability/Life Benefit = $30/mo

Total: $251.95

I just saved her $149 per month and provided better coverage.  Not to mention, I served her need by protecting her on all fronts for a fraction of her current premium.  When rates increase in 6 months, she'll be better positioned to absorb the blow.

There you have it!  The method of insuring for the PO (Post-Obamacare) world. It is a hybrid combination of several products that provide protection and security.  I've been doing this for years... It was always one of many options... Tomorrow, it may be THE ONLY option.

It is just a matter of time before we start seeing $20K and $50K deductible health plans hit the market... you hear it here first.

Holler if you need help with this stuff!  If you are interested in work with a team dedicated to helping people with this stuff, holler.

Lance Cashion

American Health Underwriters

Intel: Health Insurance Premiums Increasing in Six Months

Now is the time to purchase health insurance. 

Below is some information based on my research and some ideas that can help you and your family navigate this environment.

As you are well aware, on Sunday March 21, 2010 The United States Congress passed the Healthcare Reform Bill.  We are seeing positive effects of the legislation within the market.

In the short-term (6 months), we see a major catalyst on the horizon that our agents, current policyholders and prospective clients need to know about.  Individual Health Premiums are going to increase significantly in 6 months.  Some major factors for this increase include; the first wave of guarantee issue applicants joining current risk pools (children with pre-existing conditions), elimination of policy lifetime maximum amounts, and the requirement that all policies cover preventative care.  For families with children with pre-existing conditions, this portion of the legislation is a good idea.

What can you do, as the consumer to be proactive?

-Act with a sense of URGENCY! It is time to buy a health insurance plan that you and your family can stay on for several years without feeling the effects of these major increases.

-Buy Major Medical Plans and HSAs that have 24-36 month Rate Guarantees (for additional premium, you can lock your rate for up to 3 years)  Note: I have one insurer that offers an HSA with a 4 year fixed rate!

-Look at this as getting a discount on your health insurance.  Six months from now will be too late.

-If you have a child with a Pre-existing condition.  You may want move the rest of the family to a new plan now and leave the one child on your current plan.  The goal is to move your child with pre-ex to a guaranteed issue plan in 6 months.  This will save you money in the long run.

-Consider the HSA!  If you don't know about it, research it or ask me.

As you can see, actively engaging this process is the only way to go!  Hopefully this information is helpful.

Thanks

Lance Cashion

email here

Bullet Proof: Lump Sum Critical Illness

If you have been following my blog or newsletter, you know that I’ve been educating you on ways to improve your health coverage and save premium dollars without increasing your overall risk.  In fact, we have improved coverage and saved money using the HSA and Accident Benefit.  Now, we’re going to discuss the final part of the equation. 

Example: You’ve been hospitalized for a catastrophic health event (Cancer or Stroke) and your health plan is covering your hospitalization, etc.  You have a high-deductible HSA and have a deductible plus bills, children’s tuition and mortgage to pay. 

Question: If you are the bread winner in your family, how are you going to cover these expenses? 

Answer: A Lump Sum Critical Illness Insurance plan

For pennies on the dollar, you can cover yourself and your spouse for a Critical Illness.  You may survive but what will happen to your finances?  A good Critical Illness plan is built on a term life insurance chassis.  (Meaning: you are purchasing a renewable term life insurance plan with a critical condition accelerated benefit rider.)  Basically, a Critical Illness plan covers you while alive and pays a 100% benefit in the event you die.  It rolls products like Mortgage Insurance (expensive term-life), long-term disability (expensive), Life insurance, Cancer insurance, etc into one affordable plan.  It can pay for everything from your car payments and school tuition to groceries and income replacement.  I believe Critical Illness is one of the most powerful insurance products available but, it’s one of the least know.

Q. What is the definition of a Critical Illness?

A. Invasive Cancer, Stroke, Heart Attack, End-Stage Renal Failure, Organ Transplant, Terminal Illness, Loss of Limbs, Advanced Alzheimer’s, Major Burns, Loss of Independent Living, Paralysis.

Q. What does “Lump Sum” mean?

A. You are paid 100% of the benefit for a diagnosis of any of the conditions above.

Q. What if I have other insurance?  Will it pay?

A. It pays in addition to other insurance.

Q. How much does it cost?

A. Sample: A 35 year old male can purchase nearly $55,000.00 of coverage for less than $35/month.

$55K could cover a lot if you a hospitalized, disabled or die.  Figuring all of us have a 1-3 chance of getting cancer and 1-4 chance of a stroke or heart attack.

There you have it.  The final brick in your insurance fortress has been laid.

Let’s review: You saved money by purchasing a High-Deductible HSA Qualified health insurance plan.  You have hedged for accident with an Accident Coverage.  You have insured against a Critical Illness (disability, etc) with a Critical Illness plan.  Bonus: You also have a Term Life plan build in.

Are you bullet proof?  You have adequately covered yourself and protected your family, while staying in within your budget (without over-insuring/over-paying).

Please respond with questions via comment or email.  I’m happy to discuss your needs and options.

Lance Cashion

Health Savings Account (HSA) Education

Educate yourself on the Health Savings Account (HSA). 

The growing popularity of the HSA has sparked the curiosity of many of you.  I wanted to provide some basic information about HSA so you will be informed and educated.  HSAs are an effective Health Insurance product and tool but like any tool, the user must know how to use it.  Otherwise, it’s completely useless.  Of course, you may contact me with questions about HSAs and other insurance products/concepts.  Note: I will be adding an Insurance page to this site in the coming weeks.  Stay tuned!

Department of the Treasury materials and info links:

What is an HSA?Summary

Detailed

My Health Insurance Tips (Health Savings Accounts/HSAs) post for December

Have a good day

Lance Cashion