I
LIFE
INSURANCE
YOU DON’T
HAVE TO
DIE TO USE
By Michele Campbell,
Independent Agent
nsurance is changing the way
Americans think about, purchase and
use life insurance. The whole idea of
life insurance is peace of mind. It feels
good to have a sense of security knowing
your loved ones are going to be taken care
of if something happens to you.
What if something happens to you and
you don’t die?
What if you suffer a major heart attack,
stroke, or invasive cancer and don’t die?
Would your family be able to maintain their
standard of living if you were fi nancially
impacted by a serious illness?
Traditional life insurance is designed to
provide security for your loved ones in the
event of your premature death… but what
if you could get life insurance you don’t
have to die to use?
There are Riders called Accelerated
Benefit Riders that can be added to the
policy when you apply or are already built
into the policy. Newer plans are often
including these riders at no extra charge. If
any of the above situations happen to you
while insured, you can receive a payout of
a portion or most of the amount you are
insured for, called the face amount, and
when received is tax free income to you.
This money can help tremendously during
a very stressful time, allowing you to focus
on healing instead of worrying about how
you’re going to pay your bills.
Here’s an example of the 3 common
riders: (The descriptions can vary slightly
with each insurance company.)
Chronic Illness:
Michele has been in the insurance
business for over 25 years and
specializes in Medicare, individual
health and life insurance. She is
passionate about helping her clients
to find the right plan to fit their needs.
She is an active member of the Gilroy
Chamber of Commerce, Gilroy Rotary
and Gilroy Leadership Class of 2015.
Visit mcinsuranceservices.com or
call 408.848.2271.
This rider allows the owner to accelerate
some or all of the insured person’s base life
insurance benefi t in the event the insured
is diagnosed with a chronic illness or
condition. To qualify for benefi ts under the
Chronic Illness Rider, the insured must be
diagnosed with a chronic illness, which is
an illness or physical condition that was
initially certifi ed by a licensed health care
practitioner within the past 12 months and
affects the insured person so that he or she:
• Is unable to perform at least two
Activities of Daily Living (ADLs); or
• Requires substantial supervision by
another person to protect the insured
person from threats to health and safety
due to severe cognitive impairment.
ADLs: Bathing, Dressing, Toileting,
Transferring, Continence, Eating
GILROY • MORGAN HILL • SAN MARTIN
JULY / AUGUST 2016
Critical Illness:
This rider allows the owner to accelerate
some or all of the insured person’s base life
insurance benefi t in the event the insured is
diagnosed with a critical illness or condition.
A critical illness or condition is defi ned as one
of the following:
• Heart Attack
• Major Organ Transplant
• Stroke
• Invasive Cancer
• Blindness
• End Stage Renal Failure
• Paralysis
• Amyotrophic Lateral Sclerosis
(ALS-or Lou Gehrig’s disease)
Terminal Illness:
This rider allows the owner to accelerate
some or all of the insured person’s base life
insurance benefi t in the event the insured is
diagnosed with a terminal illness. A terminal
illness is defi ned as an illness or physical
condition that is certifi ed by a physician to be
reasonably expected to result in the insured’s
death within 24 months from the date of
certifi cation.
MEDICARE
INSURANCE
The Secret to Getting a Pharmacy
Discount With Medicare
If you take numerous medications, such as
medications for diabetes, high blood pres-
sure, and high cholesterol, you could reach
the coverage gap or “donut hole,” the point at
which you and your Medicare Part D prescrip-
tion drug plan together have spent $3,310
on medications, and will have to pay a larger
share of the drug costs. That’s when it’s time
to start to shop around for discounts. Many
drugstores offer savings programs for people
who pay for prescription medications out of
pocket; in some cases, the pharmacy discount
price is cheaper than the insurance co-pay.
Some medications are older generic medica-
tions, which discount programs price at $4 for
a month’s worth or $10 for a 90-day supply—
and sometimes even less. Once you hit the
donut hole, it’s often cheaper not to go through
insurance and just find a good discount.
What could be confusing to a consumer
with Medicare is that, CMS’ rules require a
pharmacist to automatically use your drug Part
D insurance unless you specifically say not to.
Bottom line:
Most drugstores will let people with Medicare
use their discount program, but you’ll have to ask.
gmhtoday.com
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