In spite of attempts to the contrary by “well-meaning” politicians, it is impossible to say what types of insurance every American needs. Every American family is different and has different insurance needs.
The graphic above illustrates how a portfolio might be built for a family with a family history of cancer, heart attack or stroke.
Major Medical insurance is the type of insurance that Obamacare calls, “Health Insurance.” The purpose of this type of insurance is to make certain that the “Accounts Receivable” problems of doctors and hospitals go away.
In the past, when an individual needed medical attention, he could choose to either use health insurance or pay the medical providers directly. Doctors and hospitals would have to spend time collecting money from slow-paying patients who elected not to use insurance.
The mandates in Obamacare eliminate all “Account Receivable” problems, for medical professionals, when they bill any one patient more than $6350.
You still have the choice of paying for routine medical care (think doctor visits for the flu or ER visits for a sprained ankle.) If that is your choice, you will want to get a “Health Insurance” policy with a higher deductible.
This next type of insurance is not for everyone. However, those people who are living from paycheck-to-paycheck do need this type of insurance.
During the 2009 Health Care Reform debates, Mr. Obama, and his supporters, often talked about people who had to file bankruptcy because of medical bills, “even though they had health insurance.”
That was misleading and political spin. The majority of people who had health insurance had their medical bills paid. Unfortunately, their regular bills, like mortgage payments, insurance premiums, utility bills, credit card bills, etc. were not able to be paid on a consistent manner while they were recuperating.
Although the politicians, in 2009-2010, implied that the PPACA would stop people from having to file for bankruptcy, “even though they have health insurance,” NOTHING in any of the Obamacare approved plans will pay for any non-medically necessary bill.
The type of insurance that will provide you with a steady stream of cash, so you can continue to pay your bills while you are recovering from an illness or accident, is Disability Income insurance.
If you, and your family, depend on your paycheck to maintain your standard of living, after you buy your Obamacare approved “Health Insurance” policy, you really should consider Disability Income insurance.
Fortunately, many employers offer Disability Insurance as part of their benefit package. However, it is not a requirement for any employer.
If your employer does not offer Disability Income insurance, don’t get too upset. Disability Income insurance is also available from many insurance companies for individuals.
Critical Illness insurance is one of the least expensive of all the insurance supplements. Several insurance companies offer this type of coverage. They all must cover cancer, heart attack or stroke but are allowed to cover other risks as well.
One insurance company, with which I am contracted, covers early onset Alzheimer’s disease. Another insurance company covers coma. Yet another one only covers the 3 primary critical illnesses (cancer, heart attack, stroke.)
When you are looking to add Critical Illness insurance to your health insurance portfolio, make certain that you read the fine print.
Most Critical Illness plans are very inexpensive, but you need to make certain that if you want coverage for something other than cancer,heart attack or stroke, you are paying attention before you submit your application. Don’t make your final decision based on price, alone.
The Obamacare Essential Benefits requirements make Dental insurance a mandated line of coverage for minors. Dental insurance for adults still remains optional.
In the past I have not been a huge proponent of Dental insurance. However, that mindset is starting to change.
The more I read, the more I learn that there is a direct relationship between good dental health and over-all health.
Also, the dentists have apparently seen how high doctors have been able to raise their fees. They are doing the same.
When I was a rookie insurance agent, the cost for going to the dentist, without insurance, while high, was not something that I could not afford.
Today, things are a bit different. I can still afford to go to the dentist for a semi-annual exam. However, if he finds something that has to be fixed, like a crown or bridge, the costs are prohibitive. At that point, I become a believer in Dental insurance.
A few years ago I took my son to a dental surgeon to get his wisdom teeth extracted. I almost fainted when I saw how much the bill would be without insurance.
As I mentioned before, the suggested portfolio above is not ideal for everyone. It is recommended for the employed member of a family, with children, who has had a parent or sibling suffer from cancer, heart attack or stroke.
The portfolio that is required for you may look differently.
What I do know is that it is a rarity to find an individual whose actual health insurance needs can all be fulfilled with one of the Obamacare approved plans.
Most Americans will have to choose to either risk problems in the future, or supplement their Obamacare approved plans with other types of insurance.
The Insurance Barn has written a book that gives suggestions to people who are interested in building a comprehensive health insurance portfolio. Click the link below to buy it.