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What is Hospice?

Fri, 23 Jun 2023 22:40:11 GMT

Hospice is a type of medical care that focuses on providing comfort and support to individuals who are facing a terminal illness and are no longer seeking curative treatment. The goal of hospice care is to help patients live their remaining days as comfortably as possible and to provide support to their loved ones during this difficult time.

What does Hospice do?

Hospice care is typically provided in the patient's home, but it can also be provided in a hospice facility or nursing home. Hospice care is provided by a team of professionals, including doctors, nurses, social workers, chaplains, and volunteers, who work together to provide comprehensive care for the patient and their family. Typically, up to an hour per day of nurse assistance can be scheduled depending on the care needed and availability.

What kind of Treatment does Hospice provide?

Hospice care is designed to address the physical, emotional, and spiritual needs of the patient. This may include pain and symptom management along with spiritual support. Hospice care is provided on a 24-hour basis, and the hospice team is available to answer questions and provide support whenever it is needed.

How can Hospice help me and my loved one?

One of the key advantages of hospice care is the focus on comfort. Hospice care is designed to help patients live their remaining days as comfortably as possible, this can be especially important for patients who are facing a terminal illness. In addition to the care provided to the patient, hospice care also includes support for the patient's family. This may include bereavement counseling and support for caregivers to help them cope with the challenges of caring for a loved one who is facing a terminal illness.

Overall, hospice care is an important resource for individuals who are facing a terminal illness and their loved ones. It provides comprehensive support and comfort during a difficult time, and can help improve the quality of life for both the patient and their family

Changes to the Medicare Coverage Gap in 2024 and 2025

Fri, 23 Jun 2023 22:40:09 GMT

The Inflation Reduction Act of 2022 includes provisions to lower prescription drug costs for people with Medicare and reduce drug spending by the federal government, while making several changes to the Medicare Part D drug benefit. These changes include a cap on out-of-pocket drug spending for enrollees in Medicare Part D or MAPD ( M edicare A dvantage P rescription D rug) plans and requiring Part D plans and drug manufacturers to pay a greater share of costs for Part D enrollees with high drug costs. This post provides an overview of the Part D benefit design and Part D enrollee cost-sharing changes coming in 2024 and 2025.

The 4 Stages of Medicare Drug Coverage

For year 2023 as in the past, there are 4 stages of drug coverage within a Part D plan or a Medicare Advantage Prescription Drug Plan (MAPD).

Stage 1 – Deductible, this is the amount you pay of your medication costs before your plan pays its share. It’s worth noting that some plans do not have a deductible to worry about.

Stage 2 – Initial Coverage, this is where you share in the cost of your medications with your insurance plan usually with you paying a “copay” amount. You remain in this stage until the total shared cost (what you have paid and what your insurance plan has paid together totaled) of your prescriptions reach $4660.

Stage 3 – Coverage Gap, also known as the “THE DONUT HOLE”. In this stage you typically pay 25% of the cost of your prescriptions. You will remain in this stage until your out-of-pocket costs reach $7400.

This stage is where your costs increase significantly since you are now paying 25% of the cost of your medications. Look below at an example plan-

Example Plan – Prescription is Trulicity, it has a retail price of $1100.00 for a 30-day supply and would be considered a Tier 3 drug ($45 Copay for Tier 3 Drugs) in our example plan. In Stage 2 Initial Coverage, your copay would be $45 and your plan would pay the rest – in this case $1055.00. $45 plus $1055 = $1100 total.

But, once we get to Stage 3, the Coverage Gap or Donut Hole, the cost to you would be 25% of the retail price or $1100 X 25% = $275 your share . Your insurance plan would pay the rest, $825. Again, $275 plus $825 = $1100 total.

So, in this example the cost of this medication went from $45 in Stage 2 to $275 in Stage 3 for a 30-day supply.

Stage 4 – Catastrophic Coverage, this stage begins with you reach $7400 out-of-pocket. At this point you pay $4.15 for generic/preferred drugs and $10.35 for all other drugs, or 5% of your medication costs – whichever is greater.

Now that we know the 4 stages of prescription coverage let’s look at what is changing in 2024.

How is the Medicare Part D Benefit Changing in 2024?

In 2024, costs in the Catastrophic Coverage (Stage 4) will change: the 5% coinsurance requirement for Part D enrollees will be eliminated and Part D plans will pay 20% of total drug costs in this phase instead of 15%.

Once Part D enrollees have reached the catastrophic coverage stage*, they will no longer be required to pay 5% of their drug costs, which will cap their out-of-pocket spending. In 2024, the catastrophic threshold will be set at $8,000. This amount includes what Part D enrollees spend out of pocket plus the value of the manufacturer price discount on brands in the coverage gap phase. At this amount, Part D enrollees should have no additional costs for their medications.

*This applies to enrollees without low-income subsidies (LIS)

How Is the Medicare Part D Benefit Changing in 2025?

Changes in 2025 include-

New $2,000 out-of-pocket spending cap
Elimination of the Coverage Gap stage, aka THE DONUT HOLE
Higher share of drug costs paid by Part D plans in the Catastrophic stage
New manufacturer price discount and reduced liability for Medicare

The capped $2000 amount will be indexed to rise each year after 2025 at the rate of growth in per capita Part D costs. (This cap does not apply to out-of-pocket spending on Medicare Part B drugs.)

The Coverage Gap (Stage 3), where Part D enrollees currently face 25% of costs for brand and generic drugs, will be eliminated in 2025. This means that enrollees will no longer see an increase in cost sharing for a given drug when they move from Stage 2 to Stage 3, which is the case in most Part D plans today.

Potential Savings on Medicare Drug Costs in the Future

Finally, some cost savings can be realized for Medicare enrollees that have Prescription coverage. Dropping Stage 4 Catastrophic Coverage costs in 2024 has the potential to save some dollars once an enrollee is past the Coverage Gap or “Donut Hole”. But, eliminating the Donut Hole all together in 2025 and capping costs at $2000 will be a welcome savings for tens of thousands of Medicare Part D enrollees nationwide.

The Medicaid Unwinding of 2023

Mon, 06 Feb 2023 19:03:48 GMT

The Medicaid Unwinding of 2023

A Medicaid unwinding refers to the process of reducing or ending Medicaid expansion, which is the process by which states increase eligibility for Medicaid, the joint federal and state program that provides healthcare coverage to low-income individuals and families. This can happen when a state that had previously expanded Medicaid coverage decides to roll back those expansions, resulting in fewer people being eligible for the program. This can occur for a variety of reasons, such as budget constraints or changes in political leadership.

Did Virginia have a Medicaid expansion?

In 2019, the state of Virginia expanded Medicaid coverage to include individuals and families with incomes up to 138% of the federal poverty level. This expansion was made possible through the Affordable Care Act (ACA), which provided additional funding to states that choose to expand Medicaid coverage.

The specific rules of the Medicaid expansion in Virginia in 2019 included:

Coverage for non-disabled adults between the ages of 19 and 64 with incomes up to 138% of the federal poverty level, who are not eligible for other Medicaid programs or for coverage through an employer
A requirement for individuals to have a social security number and be a resident of the state to be eligible
Coverage for certain essential health benefits, such as doctor visits, hospital stays, prescription drugs, and preventive care, among others
No lifetime limits on benefits
No cost-sharing for most individuals, like copays or deductibles,
A requirement for individuals to renew their Medicaid coverage every 12 months

Virginia Medicaid Prepares for End to Federal Public Health Emergency

To keep people in coverage during the COVID-19 Public Health Emergency (PHE), under what is known as the “ continuous enrollment condition ,” states paused terminations for Medicaid coverage. However, the (PHE) will expire on March 31, 2023 – a process commonly referred to as “Unwinding.” At the end of the (PHE), states must return to normal enrollment operations and re-determine eligibility for Medicaid members. The Centers for Medicare and Medicaid Services (CMS) released guidance that describes timelines and obligations for states to follow as they implement this significant initiative.

The guidance gives states 12 months to initiate redeterminations and an additional two months for “clean up” for further processing efforts, for a total of 14 months. This implementation timeline enables states to resume normal operations efficiently and establish a redetermination schedule that is sustainable in future years.

It is estimated that 14-20% of the Commonwealth’s total Medicaid enrollees may lose coverage during the 14-month unwinding period. Some of these individuals are still eligible for Medicaid (they must go through the redetermination), the others may be eligible for coverage through the Federal Marketplace.

If I’m not eligible for Medicaid what are my Health Insurance options?

CMS has announced a Marketplace Special Enrollment Period (SEP) for qualified individuals and their families who are losing Medicaid coverage due to the end of the continuous enrollment condition — also known as “Unwinding.” Marketplace (ACA) -eligible consumers who submit a new application or update an existing application between March 31, 2023, and July 31, 2024, and attest that they have lost Medicaid or the Children’s Health Insurance Program (CHIP) coverage between these dates, are eligible for the Unwinding SEP.

To qualify for an Affordable Care Act (ACA) health insurance plan in Virginia, an individual or family must meet certain income, residency, and other eligibility requirements. These requirements are set by the federal government and are generally the same across all states.

In general, to qualify for an ACA health insurance plan in Virginia, an individual or family must:

Not be eligible for Medicaid or other government-funded health insurance programs
Be a resident of the state
Be a citizen or legal permanent resident of the United States

How do I sign up for an ACA Marketplace plan?

Here at LCA Insurance Group we recommend contacting us to help guide you through the plan options and eligibility verification process.

Our consultations are no cost and no obligation. Call us today!

Medicare Advantage Plans

Fri, 23 Sep 2022 21:48:59 GMT

Medicare Advantage Plans combine Medicare Part A and Part B coverage. Medicare Advantage Plans, sometimes called “Part C” or “MA Plans,” are offered by Medicare-approved private companies that must follow rules set by Medicare. Most Medicare Advantage Plans include drug coverage (Part D). In most cases, you’ll need to use health care providers who participate in the plan’s network. These plans set a limit on what you’ll have to pay out-of-pocket each year for covered services.

Common Plan Types

HMO – Health Maintenance Organization

PPO – Preferred Provider Organization

PFFS – Private Fee for Service

SNP – Special Needs Plans

Other less common types of Medicare Advantage Plans that may be available include

HMO Point of Service (HmoPoS) Plans and a Medicare Medical Savings Account (MSA) Plan.

Who can join a Medicare Advantage Plan?

You're a U.S. citizen or lawfully present in the U.S.
You have Medicare Part A and Part B.
You live in the service area of the plan you want to join.

How do Medicare Advantage Plans work?

If you join a Medicare Advantage Plan, you'll still have Medicare but you'll get most of your Part A and Part B coverage from your Medicare Advantage Plan, not Original Medicare.

These "bundled" plans include Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance), and usually Medicare drug coverage (Part D).

Covered Services

With a Medicare Advantage Plan, you may have coverage for things Original Medicare doesn't cover, like –

fitness programs
vision
hearing
dental services

Plans can also choose to cover even more benefits. For example, some plans may offer coverage for services like transportation to doctor visits, over-the-counter drugs, and services that promote your health and wellness. Plans can also tailor their benefit packages to offer these benefits to certain chronically-ill enrollees. These packages will provide benefits customized to treat specific conditions.

Rules for Medicare Advantage Plans

Medicare pays a fixed amount for your care each month to the companies offering Medicare Advantage Plans. These companies must follow rules set by Medicare. Each Medicare Advantage Plan can charge different out-of-pocket costs. They can also have different rules for how you get services, like:

Whether you need a referral to see a specialist If you have to go to doctors, facilities, or suppliers that are outside the network

These rules can change each year.

Costs for Medicare Advantage Plans

What you pay in a Medicare Advantage Plan depends on several factors. In most cases, you’ll need to use health care providers who participate in the plan’s network. Some plans won’t cover services from providers outside the plan’s network and service area.

Medicare Advantage Plans have a MOOP (max out-of-pocket) limit for all Part A and Part B services. Once you reach this limit, you’ll pay nothing for services Part A and Part B cover.

Drug Coverage in Medicare Advantage Plans

Most Medicare Advantage Plans include prescription drug coverage (Part D). You can join a separate Medicare Prescription Drug Plan with certain types of plans that:

Can’t offer drug coverage (like Medicare Medical Savings Account plans)

Choose not to offer drug coverage (like some Private Fee-for-Service plans)

You’ll be disenrolled from your Medicare Advantage Plan and returned to Original Medicare if both of these apply:

You’re in a Medicare Advantage HMO or PPO.

You join a separate Medicare Prescription Drug Plan.

Note: If you’re in a plan that doesn’t offer drug coverage, and you don’t have a Medicare drug plan, you may have to pay a late enrollment penalty if you decide to join a Medicare drug plan later. Visit Medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/part-d-late-enrollment-penalty to learn more about the Part D late enrollment penalty.

Can I Buy Life Insurance for my Parents?

websitebuilder@thryv.com — Thu, 07 Apr 2022 05:39:00 GMT

You can absolutely secure a life policy for your parents. Doing so will offer substantial financial security for your family. Purchasing the best type of insurance depends on their current health, medical history, age and financial situation.
Putting life insurance in place for your parents is a major step in preparation for their passing if they don’t have any coverage already. Even if they do have life insurance, an additional policy can cover funeral expenses for example, while leaving their original policy to cover other costs.

Why Purchase Life Insurance for Parents

You need help paying for their final expenses. Most families underestimate funeral costs. Prices can vary widely depending on the type of arrangements; burial or cremation. The National Funeral Directors Association estimates the median cost of a funeral and burial at about $8,500.
You need help paying their medical bills. Unfortunately, the last few years of a person’s life can often be costly. Some folks require expensive prescriptions or medical treatments; others need more doctor or hospital visits. And a few may need 24-hour care. These medical expenses can be difficult to handle.
You need help handling their real estate. The process of selling their home and moving a surviving parent can cost thousands of dollars. Adult children today will move their surviving parent closer or move them into an assisted living community.

Reality of Purchasing Life Insurance for your Parents

Let’s face it, we buy life insurance to safeguard our family. We want keep them from going through a financial hardship when we die. In the same vein, by having insurance to cover our parents, this would protect us from unexpected costs that could influence our financial stability.
When a parent passes, the surviving family members may not be able to cover their final expenses. Bills and debts plus the money required to cover funeral expenses can be a real hardship.

Questions to ask The following questions can clarify your goals in protecting your family when your parents die:

What is the goal of the policy – What specifically will the proceeds of the policy pay for, have a detailed plan in mind
What kind of policy – Permanent or temporary coverage? Before choosing, it’s critical to understand the details on how each policy works. For instance, if a policy is less expensive than another does not mean it is the optimum plan for you.
How much coverage is needed – The average cost of a funeral can be $10,000 or more. Moreover, any other debt or final expense such as unpaid medical bills should be included for an accurate coverage amount.
Who will own and pay for the policy – Each situation is unique. Your state of affairs will establish who is the best owner. Generally, you’ll need consent from your parents to buy a policy for them. Likewise, the person making the payments is normally the owner.

Whoever the owner of the policy is, make sure they understand their obligations.

What Type of Life Insurance is Best for Parents?

With younger folks, a term policy is usually the go to. Term insurance is typically cheaper for higher coverage amounts since most people will outlive the policy. A term policy usually lasts for 10, 20 or 30 yrs and normally requires a medical exam to qualify.
Whole life insurance is the most popular option for ageing parents with adult children. It’s best suited for folks 55-85 that are near or in retirement. This type of policy builds cash value and has no expiration date. Most often, you can be approved without a medical exam. The premium payments are based on age and health. So, the younger/healthier they are when the policy starts, the less expensive the payment will be.
One specialized type of whole life insurance is called Final Expense Insurance. It is specifically designed to cover final expenses and any other end of life costs.

How much Coverage do I need?

Every situation is unique. Factors to consider for your parents –

What are their monthly expenses
Is there medical bills that are due
What is their total debt
How much is their funeral services

The average funeral is around $10,000. Consequently, final expenses is something that families struggle to afford.

What determines the Cost?

Age and health are major factors for the insured. Term insurance is generally the best option for younger folks but is harder to “make the grade” for since most insurers require a medical exam.
On the other hand, whole life plans usually have a higher payments, but include features that term policies lack. These include building a cash value and no expiration date.
Tip to keep insurance costs down To help keep costs down, get insurance when your young, before your health or age can cause a higher premium. As a result, you will lock in an affordable payment even if your health changes later in life. In the end, these factors along with the amount of coverage will determine the cost.

Here is an example quote for a Final Expense Insurance Policy -

Healthy Male Age 50 $10,000.00 in Coverage $30.51 a month
‘Not so’ Healthy Male Age 65 $10,000.00 in Coverage $81.33 a month

In this illustration you can see the substantial difference in the payment based on the age and health of the proposed insured.

Final Thoughts

Who wants to envision the passing of their parents; no one … however data shows that parents will probably pass before their children. This frequently means a close family member, usually a child; has to arrange the services and cover the financial costs involved.
Purchasing life insurance for your parents is a caring and considerate choice. As a result, it would ensure that the funds are there to take care of their final wishes.

Finding the Best Final Expense Insurance Policy

websitebuilder@thryv.com — Thu, 24 Mar 2022 22:17:00 GMT

A final expense life policy can offer excellent financial security. It can provide your family with a safety net, making sure they will not be left with a huge financial burden.

Whether you are looking for yourself or possibly looking for an insurance policy for your parents , the next logical step then, is to locate the correct type of policy.

Fortunately, finding the best Final Expense policy is pretty easy. It shouldn’t take hours of investigating and research. We can actually show you how to accomplish this before your favorite TV sitcom is over.

Firstly though, let’s do a little investigating.

What makes it the Best Burial Insurance?

There are 3 factors to look for in a burial insurance plan.

Coverage starts immediately – no waiting period if possible.
Policy is competitively priced.
Insurance company has a good financial record.

Now, let’s take a look at these 3 factors in detail.

When does my insurance coverage start?

Some burial policies have a two-year waiting period where they will not pay the full death benefit. This type of plan is designed for individuals with severe health conditions, but healthy people still sign up for them.

We help people every day that didn’t know they could qualify for something better. Fortunately, the majority of our clients qualify for an immediate coverage plan.

Here is the key point-

How do you choose the right carrier? Which one has a plan that would allow you to be approved for immediate coverage. This is where the experience of LCA Insurance Group can help you.

This step is a critical piece of the process . We can assess your health and medical history to determine eligibility for immediate coverage. We have a full understanding on the underwriting guidelines of these burial insurance carriers.

In the end, we can advise you on the best possible option based on your health and budget. Only using a two-year wait policy as a last choice option.

The Cost of the Burial Policy

Most final expense life insurance companies have a similar cost structure. However, some insurance carriers offer additional benefits that are included with your policy.

Examples include an accidental death rider or possibly a nursing home rider. These are items to consider when comparing pricing for the same amount of immediate coverage.

Insurance Company Financial Record

Thankfully today, most life insurance companies are A rated with A.M. Best .

AM Best provides news, credit ratings and financial data products and services for the insurance industry.

If an insurance company has financial issues, they may not be able to pay a claim. Consequently, this would cause the very financial hardship you were trying to avoid.

Fortunately, with big data and sources like actuarial tables, it’s very unlikely for an insurance company to have financial issues.

How do I find the Best Burial Insurance

Locate a qualified independent insurance broker or agency. Independent agencies usually have several companies that they work with.

They can compare offers from multiple companies. If the broker is trustworthy, they will select a company that will meet ALL of your needs.

Remember, your health is a MAJOR factor. A professional broker should evaluate your medical history, analyze your goals and assess your budget.

The best option will offer a competitive price and coverage that starts ASAP.

Cannot be purchased directly

You cannot purchase a policy directly from a Final Expense Insurance Company. They must be purchased through a broker or agent.

Life insurance is complicated with a multitude of variables to consider. This is why life insurance requires the help of agents or brokers. They have to be screened and licensed with the state. Additionally, you would want an agent knowledgeable on the products they offer through the insurance carrier(s).

Exception: Guaranteed issue life insurance. Insurance companies offer these policies directly, usually through the mail or advertised on television. However, all guaranteed issue policies have a two-year waiting period.

Why work with LCA Insurance Group

RESEARCH – We feel it is our duty to advise and educate anyone considering purchasing life insurance. In the same vein, it is important to do your own research. That is the major reason for our website. Articles like this are here to help new and old clients alike.

INDEPENDENT – Because we’re independent, we compare the most highly rated insurance companies on your behalf. This ensures you get the best coverage at the best price.

WE CARE – We will always make sure we recommend whichever final expense insurance carrier is best for you.
With our experience, carrier options and commitment to our clients we feel LCA Insurance Group is your optimum choice in finding the best burial policy.

What is the Medicare Annual Enrollment Period?

websitebuilder@thryv.com — Fri, 01 Oct 2021 18:37:00 GMT

The Annual Enrollment Period otherwise referred to as AEP, is the time of year when a Medicare beneficiary can make changes to their current coverage.

Plan benefits change each year, allowing Medicare beneficiaries to look around to ensure they are electing the plan that best fits their needs. With Medicare Advantage and Part D plan benefits changing every year, premiums could increase, benefits can be changed, and prescription drug formularies can be different.

Every September you will receive an Annual Notice of Change (ANoC) letter. This letter explains all the changes that will be affecting your plan in the upcoming year. The AEP gives you a chance to change if you are not happy with the future adjustments to your plan.

When is the Medicare Annual Enrollment period?

The enrollment window runs from October 15th to December 7 ^th each year. Changes made during AEP this year go into effect January 1, of the following year.

What can I co during the Medicare AEP?

Drop an Advantage Plan and return to Original Medicare
Elect to change from one Advantage plan to a different one
Change from Original Medicare to an Advantage plan
Elect to change from one Part D prescription drug plan to another
Cancel your current Part D plan
Pick up a Part D plan if you currently do not have one

What’s the difference between Medicare AEP and OEP?

Unlike AEP, where you have several options. Open Enrollment Period (OEP) is limited on what changes you can make. This enrollment period is ONLY for beneficiaries currently enrolled in a Medicare Advantage plan.

The Medicare Advantage Open Enrollment Period (OEP) runs annually between January 1 and March 31.

During this window, a current Medicare Advantage enrollee can:

1. Switch from one Medicare Advantage plan to another.

2. Disenroll from a Medicare Advantage plan and return to Medicare, with or without a prescription drug plan.

If you have a Medicare Advantage Plan, you can switch to another or you could switch to just a Part D plan.

You can only make one change to your healthcare coverage during this time, so choose wisely. Once you make that change, you cannot make another change until the Annual Enrollment Period (AEP) unless you qualify for a Special Enrollment Period.

When Will My Policy Go in Effect if I Enroll During the Open Enrollment Period?

Remember, OEP is different than AEP. The Open Enrollment Period runs annually between January 1 and March 31.

If you enroll in a policy during the Open Enrollment Period, coverage starts on the first day of the following month.

Example – enrollee signed application on February 17th, new plan would start on March 1st.

Can I get local help with my Medicare plan?

Yes, we are local to the Richmond, Virginia area and we come to you. Are you unhappy with your current coverage? Do you wonder if there is a better plan option out there for you?

If you're looking to change your current Medicare Advantage plan during the Annual Enrollment Period, just give us a call for a no obligation appointment. We can help you compare plans and get the coverage you need.

Call LCA Insurance Group Today 804-239-1868

What is Mortgage Protection Insurance?

websitebuilder@thryv.com — Fri, 30 Apr 2021 19:34:00 GMT

Mortgage Protection or Mortgage Life Insurance is a version of term life insurance ; it is insurance that pays off your home loan if you pass away. This type of policy usually lasts for the same term of time as your loan.

Purchasing a house is a sizable financial responsibility. Typically, a mortgage loan is a 30-year commitment. What would transpire if you pass away and couldn’t make the payment?

Mortgage protection insurance prevents foreclosure if you were to die while you owe money on your home loan.

Financial Burden or Peace of Mind

Until your house is paid off, there is a significant financial risk looming. If you can’t make the monthly payments, for example, the lender could foreclose on the mortgage forcing your family out of your home.

This is why many homeowners enter a mortgage with someone else – like a spouse or partner. This person can limit the financial risk of buying a home.

But what happens if you were to die unexpectedly? Your co-borrower or family would be left with that financial burden.

This is where Mortgage Protection offers peace of mind. The policy could pay off the loan all together or help your spouse/partner/family make the monthly payments.

Isn’t this just like PMI?

No, Mortgage Protection Insurance IS NOT the same as private mortgage insurance . Private Mortgage Insurance is protection for your lender. Some borrowers think that (PMI) will pay off their mortgage when they pass away. This is not true.

The mortgage lender usually requires 20% down to eliminate PMI. Otherwise, it would generally be required on a loan.

Mortgage Protection Advantages

Quick Approval. Mortgage protection insurance is fairly easy to purchase. These policies are considered simplified issue and can be approved quickly.

No Medical Exam. Generally, there is no medical exam. These types of policies are more accepting of pre-existing medical conditions and illnesses

Easy Add-On. Mortgage protection insurance could be a valuable supplement to the life insurance coverage you may already have in place. With high approval rates, this is a simple way to add coverage for your family.

Mortgage Protection Disadvantages

Simplified Issue. Coverage may be more expensive for folks in excellent health. Since there is no medical exam, the underwriting steps are less accurate. This means the rates will be more expensive as compared to term life insurance that is fully underwritten.

Length of Term. The term of coverage is the length of your mortgage. Once the term is over the policy ends.

Coverage Decreases. There is a reduction in coverage as you pay down your principal loan amount. The coverage amount is always in line with the mortgage balance.

Beneficiary Choice. The Death benefit (payout) is usually sent directly to the mortgage lender.

Final Thoughts

If you are in a high-risk career field or if you have health conditions that make life insurance difficult to get, mortgage protection insurance may be a good fit for you. It’s a type of term life insurance policy. If you pass away during that term, the insurance company pays the death benefit directly to the lender. If you out live your policy term, hopefully your house is paid off at that point.

Here at LCA Insurance Group, we recommend a no obligation ‘needs assessment’ with one of our brokers. We can assist you in comparing the best options available.

How does Term Life Insurance work?

websitebuilder@thryv.com — Wed, 30 Dec 2020 06:00:00 GMT

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Term life insurance works by providing coverage for a set “term” of time.

The fundamental feature of this type of life insurance is the “term” or length of time the policy is in-force. Typical terms are 10, 20 or 30 years. As long as you pass away while the policy is in-force the death benefit would be paid directly to your beneficiary(s).

Term life insurance protects families when they are most vulnerable. For instance, parents that have young kids may want coverage until their children graduate from school. Or, a family that just bought a house may want protection until their home loan is paid off.

If a person outlives their policy term, the insurance ends and they must buy another policy. Unfortunately, the premium will be more expensive since that person is older and the insurer will consider health issues and medical history.

Who Needs Term Life Insurance?

Term life insurance is usually purchased to replace your income if you die. The proceeds from the policy will help your loved ones pay debts and living expenses.

For example, if you are a homeowner and you were to die suddenly, your spouse would have to pay the mortgage on his or her own. If you have enough coverage, the policy’s death benefit will pay off – or at least maintain the mortgage payment.

Additional reasons for Term Life Insurance –

Family members/spouse who need your income
You have children or are planning to have them
You have significant debt – mortgage, student loans, etc.
Financial legacy for your family

Ultimately, life insurance is put in place for your beneficiary(s) financial security.

How Much Coverage Do I Need?

The prevailing thought on this is to have 5 to 10 times your income in coverage. The term length should span most of your major financial obligations – maybe until the house is paid off or your children are grown.

The purpose of Term Life Insurance is to prevent a financial burden in the case something unexpected would happen. As a result, the coverage should account for living expenses like-

rent or mortgage
utilities (gas, water, etc.)
childcare
credit card debts
additional bills

After choosing a term length and amount of coverage, there will be a monthly or annual payment for the length of that policy.

How Much Can I Expect to Pay for Term Life?

The price of your policy will vary depending on your age, health and other risk factors. The younger you are when you begin the policy, the more cost effective it will be.

For example-

A healthy male age 35 may qualify for $250,000 of Term Life insurance for $20.13 a month. A very reasonable premium for most families to budget for. According to LIMRA , 80% of consumers misjudge the cost of Term Life insurance.

Choosing the Right Term Life Policy

Determining what “term” of time you should get (typically 10, 20 or 30 years) will require an analysis of your financial situation.

Some questions to answer are –

When will my obligations change?
When will my dependents be out on their own?
What are my debts, loans or mortgage?

When purchasing life insurance you should always thoroughly examine your circumstances. Look closely at your present situation and review your policy whenever you experience a major life change.

In conclusion, no matter which plan of life insurance you choose, it is very important to understand the specific guidelines of each type. Here at LCA Insurance Group, we recommend a no obligation ‘needs assessment’ with one of our brokers. We can assist you and your family with the best options available.

Medicare Basics to Know

websitebuilder@thryv.com — Wed, 30 Dec 2020 02:34:00 GMT

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This article shares some of the Medicare Basics to know about; how it works, the different parts and current statistics.

Medicare Part A and Part B

President Lyndon B. Johnson signed Medicare into law in 1965. Medicare is a federal program that provides health coverage for Americans aged 65 and older.

The original program included Part A (Hospital Insurance) and Part B (Medical Insurance). Today these 2 parts are called “Original Medicare.

Over the years, congress has expanded coverage to people younger than 65 with permanent disabilities. Examples include people with end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS).

Medicare Part C and Part D

In 2003, the Medicare Prescription Drug Improvement and Modernization Act (MMA) was introduced. This enabled private health plans that were approved by Medicare to be known as Medicare Advantage Plans. These “MA Plans” plans are sometimes called “Part C” of Medicare.

Then in 2006, MMA expanded again to include an optional prescription drug benefit, “Part D”.

Who Administers Medicare?

Medicare is administered by the Centers for Medicare and Medicaid Services (CMS). CMS also administers the Children’s Health Insurance Program (CHIP) and the Affordable Care Act (ACA).

Funding the Program

Funding for Medicare is handled differently for each part.

Part A (Hospital Insurance) is funded through the Hospital Insurance (HI) Trust Fund primarily by payroll taxes.

Part B (Medical Insurance) is funded through the Supplementary Medical Insurance (SMI) Trust Fund from the premiums paid by beneficiaries along with federal and state tax revenue.

Part C (Medicare Advantage) is funded by the premiums that beneficiaries pay for Medicare Advantage health care plans along with federal revenue.

Part D (Prescription Drug Plan) is funded through the SMI Trust Fund from federal/state revenues and the premiums paid by beneficiaries.

Medicare by the Numbers

67.7 Million Americans are currently covered by Medicare
Projected enrollment by 2060 is 93.8 Million
24 Million people enrolled in Medicare Advantage plans
6072 Medicare hospitals in the US in 2018
$796 Billion in Medicare spending in 2019
RX drug spending in 2018 was $107 Billion

Finishing up

This is just a brief article on Medicare basics to know. Please stay tuned for additional articles on Medicare, Medicaid and Prescription Drug plan information.

If you have specific questions please contact us anytime.