Tag: retirement planning

Medicare Supplement Policyholder Alert!

Posted on March 10, 2015 by - Uncategorized

postcard33Have you received this postcard in the mail?  Is it coming from Medicare?  Is it important information?  It does say, “REGISTERED DOCUMENT – DO NOT DESTROY.”  The truth is this is just a solicitation for insurance, and if you mail in the return postcard you are sure to get a call from an insurance agent, or worse yet a knock on your front door.  The unfortunate truth is we now live in a world of information overload and everyone is vying for your attention…yes, even me.  And in the world of Medicare, some lead companies resort to making the older population believe their mailing is more than it is.

If you look closely at the small print at the bottom you will read, “This information is not affiliated or endorsed by government agencies or the federal Medicare program.  You may be contacted by an insurance licensed representative.”  This disclaimer language is a sure sign that the mailing is a solicitation as it is required by Medicare.  I am not judging those who use these postcards to drum up business, in fact these cards are completely compliant with current regulations.  I just believe there is a better way…honesty!

Why can’t we replace the words, “REGISTERED DOCUMENT – DO NOT DESTROY” with, “THIS IS NOT A REGISTERED DOCUMENT – DESTROY IF YOU WANT…BUT IF YOU DO, OUR AGENCY WON’T BE ABLE TO HELP YOU!”  Why can’t we just get back to letting people know we are here to help when they need it.

Here is a great example:

https://www.youtube.com/watch?v=FrmYLo3tMA8

Medicare Supplement policyholders are paying too much for their coverage!

Posted on July 21, 2014 by - Medicare, Medicare Advantage, Medicare Drug Plan, Medicare Supplement, Retirement Planning, Social Security, State Teachers Retirement

If your parents were like mine, they probably taught you to spend your money wisely. Let me use a story here to make a point. Suppose you are shopping for a new refridgerator. Your first stop is at Sears where you find the perfect Frigidaire XL2014, and at a great price, $2100. But because your parents told you to shop before you buy, you decide to check a few more places. The last stop you make is at Lowes, where you find the same Frigidaire XL2014. Same make, same model, same features…they are IDENTICAL! Only the one at Lowes costs $1500. Do you go back to Sears and buy the one for $2100? Unless you own stock in Sears, or your son is the sales rep, I hope your response is…Absolutely not! Why would you spend $600 more on the same thing. But Retirees are doing that very thing with their Medicare Supplement insurance.

 

But you may ask, “How do I know I’m getting the same benefits?” The answer is simple, our government did something right. Prior to 1992, Medicare Supplement insurance plans were not standardized. What this meant was that each insurance company’s Medicare supplement plans offered different benefits. This made it almost impossible for the Retiree to shop their coverage from company to company. Compare it to shopping for a car today. You can’t really compare cost from one dealer to another because the options are completely different. This one has leather seats, but the other one has On-Star. This one has a DVD player, but the other one has alloy wheels. It is impossible to truly compare cost because you are never comparing “apples to apples.” The same was true with Medicare Supplement insurance prior to 1992. But in 1992 the federal government stepped in and “standardized” Medicare Supplement insurance.

 

They did this because prior to 1992, unethical salespeople were taking coverage away from Retirees in order to save them money, and they weren’t disclosing the fact that they reduced their coverage. So the government stepped in and standardized the plans so this couldn’t happen anymore. They did this by offering 11 plans and giving them the letter names of A through N. In other words, it means you can compare a Plan F with one company to a Plan F with another company and know that the benefits are IDENTICAL. So you no longer have to say, “I know my supplement is expensive, but I don’t want to change it because it pays so well.” As long as you stick with the same Plan letter name, the new company is legally obligated to pay the same benefits as your old one.

 

So what does this mean for you? It means it would be a good idea to know what premium you pay compared to what others your age and in your area are paying for the same plan. This is important because you may be paying hundreds if not thousands of dollars more per year in premium and not be getting any better benefits. For example, the premiums for a Plan F for a 70 year old female range from $130/month on the low end up to $276/month on the high end. That’s a difference of $1,752 per year. And worse yet, the person paying $276/month is not getting any better benefits than the person paying $130. And don’t forget, you can change your medicare supplement policy any time of the year…you don’t have to wait for the Annual Enrollment Period at the end of the year.

 

If you would like to see how your premium compares, you can go to our website at www.seniormark.com and click on the “Supplement Rates” tab. And don’t worry, you will get instant numbers and we won’t collect your personal information. If you are not tech savvy just call us at 877-492-8803 and we will provide you with a free comparison report.

 

I bet your momma never thought shopping would be this easy!

Don’t Retire Naked!

Posted on January 25, 2012 by - Uncategorized

Every day, thousands of people are making the decision to retire.  You probably even know of someone personally.  A good number of those who are making that decision are doing it prior to turning age 65.  And it never fails that some of them will do it NAKED!  No, I don’t mean without clothes…at least I hope not.  What I mean is they are doing it without insurance coverage.

You may say, “Who would ever take that chance!”  Well, most of them didn’t do it on purpose.  They did it accidentally through a lack of planning.  It usually starts with them making the assumption that they will automatically qualify for coverage because they have always had insurance coverage.  That is not the case.  When you are age 65, you can go on Medicare and get a medicare supplement regardless of your health.  The same cannot be said if you retire prior to Medicare age.  If you retire at age 62 for instance, a health insurance company can refuse to insure you based on your current health.  Some health conditions that may cause you to be declined include heart conditions, insulin dependent diabetes, Alzheimer’s disease, etc.

Another common mistake I see is when an individual retires early and goes on COBRA coverage.  COBRA coverage is temporary!  It normally lasts only 18 months (36 months in some circumstances).  I recently spoke with an individual whose COBRA coverage ran out 6 months prior to him turning age 65, and he had an uninsurable heart condition.  So what are his choices?

He has only 3 options…

Option 1:  Because he has exhausted his COBRA insurance, he qualifies as a HIPPA eligible individual.  This means he can get health insurance regardless of any preexisting health conditions.  GREAT!  Problem solved.  The only problem is he will have to pay $1,2oo a month for a plan with limited coverage.  “But what about the Obama healthcare reform, didn’t it take care of people being left without insurance?”  Not really, which brings us to…

Option 2:  The new healthcare reform set up high risk pools in each state to help the uninsured get health insurance.  There’s one big problem, you have to be without insurance for 6 months before you qualify.  So this solves nothing for the gentleman I was talking to because by the time he would qualify for the high risk pool, he could go on Medicare.  Even if he wasn’t Medicare age yet, who wants to be NAKED for 6 months.  So what’s his last option…

Option 3:  Go without insurance coverage until he turns 65 and goes on Medicare.  Definitely not a good option, but for many this is what they are left with.  And with an open heart surgery costing well over $200,000 this could be devastating.

Retiring naked is not only cold, but could be detrimental to everything you worked your whole life for.  So, before you decide to retire, do a little planning and PUT SOME CLOTHES ON!