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eLearning Series:
Your Most Popular Insurance Questions
Answers For Health and Home
Insurance
( 50 articles
in this series )
Terminally
Ill & Health Insurance
By its very nature, terminal illness is devastating
for both the sick people and their families and friends. Unfortunately,
the pressure of worrying about medical costs and
trying to secure health insurance that addresses the needs of a terminally
ill individual adds to the burden loved ones must endure during
an already difficult time.
Depending on how a terminally ill person decides to spend
his or her last days, the costs can be enormous. At the lower
end of the spectrum, a terminally sick individual may want
to refuse treatment, and die at home. While this is an option,
a more popular choice is to seek aggressive treatment programs
that will allow a terminally ill patient to extend the length
of his or her life as comfortably as possible. Without adequate
medical health insurance, this second option may not be financially
available to everyone faced with making such a difficult decision.
Some
relief is available through public health insurance plans
such as Medicare and Medicaid, even in cases where hospice
care is required. Hospice benefits can be provided by Medicare
if the client is eligible for hospital insurance under Medicare
Part A; the client’s doctor and the hospice director sign a
declaration that the terminally ill person is expected to live
less than six months; the hospice where you will receive care
is a Medicare-approved facility; and the beneficiary signs
away his or her regular Medicare coverage as it relates to
his or her terminal condition in favor of hospice care. Conditions
not related to the terminal illness are not affected by signing
the statement.
Even with Medicare-provided hospice palliative care, terminally
ill patients will still usually be responsible for their room
and board costs but many other fees are paid under the Medicare
plan. For example, a hospice Medicare beneficiary would not
have to pay for: physicians’ visits and care; nursing care;
equipment such as wheelchairs, walkers, or monitoring devices;
standard hospital supplies such as catheters and bandages;
pain killers and symptom-controlling medications; short-term
respite or hospital care; homemaker/aide services; physical,
occupational or speech therapy. Emotional or spiritual counseling
may also be available to patients and their families.
If traditional health care insurance is not enough to cover
the health-related expenses, looking to life insurance
policies may provide additional financing options. Accelerated benefits
(also called living benefits) and viatical settlements could
be the answer to the financial woes of a terminally ill individual.
Accelerated
or living benefits are life insurance monies paid to life
insurance policyholders before they die. A few policies
include accelerated benefit options, but if yours doesn’t,
you can ask your insurance provider about adding the appropriate
provisions to new or current policies. The amount of money
available as early payment with accelerated benefits ranges
according to what kind of policy you have. However, the amounts
are typically between one quarter of the total policy. There
are also limited circumstances under which living benefits
will be awarded, and these also vary by policy. Speak to your
provider to see what options are available to you.
Viatical
settlements are funds you receive from selling your life
insurance policy to a viatical settlement company. Life
insurance policy holders who sell their benefits to a viatical
settlement company will receive a lump sum payment equal to
a percentage of the benefit that would be awarded if the policy
holder had died.
Turning to accelerated benefits or viatical settlements does
provide a good source of quick money to cover sudden or unanticipated
costs, but don’t jump into either prospect without considering
the long-term effects of what you are choosing to do. If your
life insurance policy is a central part of your estate plans
or is something to pass on to family members, using accelerated
benefits or viatical settlements will have a big impact on
your future financial situation.
Whatever you decide to do, it is important to make sure you
are fully informed about your options and the possible consequences.
Ask a lot of questions and don’t be satisfied until you get
appropriate answers. Remember that policies offer many options
so be certain to choose the best policy for your family. Most
importantly, don’t sign anything until all of your questions
and concerns have been addressed.
Click here to to view health insurance quotes, compare plans side-by-side and apply for the most affordable health insurance within your budget. I did this myself (June 17, 2011) to change my health insurance policy. Saved me $84 per month (or $1,008 per year). It's my SolveYourProblem recommendation.
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by SolveYourProblem.com : 2005
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