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In insurance terms what is the difference between Deductible and Max out of pocket expense?
The annual out of pocket maximum refers to the actual amount of money you will pay for your medical cost before an insurance plan pays 100% of your bill. For example, if you have an "80/20" plan with a deductible of $2000.00 and a maximum out of pocket of $5000.00, you would be responsible for paying the first $2000.00 of the hospital bill, then the insurance company would pay 80% of the bill and you would pay 20% of the bill. Now, you've already paid $2000.00 so you have $3000.00 of your max out of pocket to pay. Once your 20% of paying that bill reaches the balance of that $3000.00, you would have paid your maximum out of pocket total of $5000.00 and the plan would then pay the remainder of the bill 100%.
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Term insurance can be thought of as "pure protection" in the sense that it provides only a death benefit, and then, only if the insured dies for a reason that is not exclu…ded by the policy during the term of the policy. Frequently, the maximum term of 20 years from the date of issue, although it is sometimes stated as being the attainment of a fixed age by the insured. A related characteristic is that it accumulates no "cash value", which is often thought to be something akin to a savings element. If premiums cease to be paid while the insured is still alive, the coverage of a term policy ends at the end of any grace period for the payment of premium (often, 30 days). In contrast, a whole life policy is sometimes called "permanent insurance". The premium is greater than the premium for a term policy of the same face amount, because a portion of the premium is applied to the actuarial determined cost of providing the protection, and a portion is applied to the cash value. Although the cash value accumulates slowly at first, it "gathers steam" over a period of time. One of the characteristics of cash value is that at some point during the policy's life, it may reach a point of being sufficient to support the policy and thereby render unnecessary the need for further premium payments. There are many variants of whole life coverage, such as types that permit the insured to invest a portion of the premium into a mutual fund. Keep in mind always that life insurance is designed as protection and not as an investment. Make your choices accordingly, do your due diligence, understand your current and anticipated financial needs, and seek out unbiased advice. Moreover, only transact business with an insurer and an agent that/whom is licensed to transact insurance business in your state. License information can be had through your state's Department of Insurance located in the state capitol. The insured will not get any assured money in term life insurance but in case of whole life insurance, the insured will get assured money at the end of the maturity.
Term Life Insurance will protect you for a limited period of time. It is considered pure protection life insurance. You have options for 1 year renewable term, 10 years, 15, 2…0 and 30 years term. Some companies even offer a 40 years term, or term to age 65. Your life is covered for the length of the contract. At the end of the selected term, you have the option to terminate coverage, or convert the term policy to a permanent life insurance (whole life or universal life insurance). Some term policies will return all premiums paid at the end of the term. You have to have the Return of Premium option on the policy in order to get all your money back. Universal Life insurance policy is designed to stay in force for the rest of your life, and it can accumulate cash value. Universal life policies have two components: protection and investment. Premiums are higher for Universal Life, versus Term Life, due to the investment portion which accumulates cash value. Depending where you are in your life and financial situation, term may be your best option if you want to protect your family or dependents for a determined amount of time (until children finish college); or if you want to protect your dependents for as long as you live (up to age 120 is available) then Universal Life or Whole life are your best bet.
Answer Whole life combines savings with a life insurance policy. Term life is just the policy and is generally much cheaper. A smart invester would never buy whole life… until all other savings are maxed out (IRA's, 401K, etc.) and it is the last resort. David Bach (Author of "Smart Couples Finish Rich") says to buy Term Life Insurance and invest the difference. Many times with a whole life policy, your life insurance goes up and down inside of the policy. So you are saving very little over the years, certainly not enough to retire. Putting your money into a Term policy and the difference into an IRA or increase your 401K contribution is much smarter in the long run. Answer The significant difference between whole and term life insurance can boil down to the fact that at the end of the day, a term life policy offers only life coverage. Unlike whole life insurance that adds on an investment component. This in turn makes whole life insurance policies much more expensive. This extra cost might make sense if the investments assured rich pay offs. But this is not always the case. Marketed as retirement funds or forced savings, it has to be said that there are several more effective ways to invest your money. Many of these policies come along with commissions and high fees. In comparison, term life policies are inexpensive. And if you are smart enough to purchase your policy when you are young and healthy, the returns far outweigh the modest premiums.
The difference between whole and life term insurance is that a term policy is life insurance only whereas the whole insurance combines a term policy and a investment component… so one can build cash value and borrow against it.
Life insurance is a more general concept that may refer to either whole life insurance or term life insurance. Whole life insurance gathers value the longer you have it, where…as Term life insurance does not obtain any value that you may use before you die. Term life insurance only pays out when you die.
The deductible is how much you will pay before the plan starts helping you pay your medical bills. After you reach the deductible, most plans will pay a percentage of your b…ill and you pay the rest. This is called "co-insurance". Your out-of-pocket will include the deductible and the coinsurance. Plans set a maximum out-of-pocket amount, after which the plan pays for all of your covered medical bills. The Affordable Care Act sets limits on deductibles and coinsurance, based upon your family income. You may qualify for help paying these in 2014.
Term life insurance only lasts for a specific number of years, but whole life insurance will cover you for the rest of your life as long as you've paid the full amount of prem…iums. It is radically different from term life insurance, because some of your monthly premiums are invested into shares, bonds and other investment vehicles. This acts as a 'cash value' savings asset that you can claim if you live longer than the length of your policy or borrow against the amount, but it makes whole life insurance policies more expensive than term life insurance policies.
Term Life insurance is a type of policy used for a set amount and a predetermined number of years that is paid out during one's lifetime. Whole life insurance is term combine…d with a type of investment policy that allows you to borrow against it during the span of the policy because it is constantly increasing in value.
The basic difference is that a term policy pays upon death or it expires when the term is reached. Whole life insurance gains value like an investment.
A "per diem" or "indemnity" long term care insurance policy will pay up to a fixed amount of benefits. An "expense-incurred" long term care insurance policy allows you… to choose the benefit amount when you buy the policy. It reimburses you for actual expenses incurred, up to a fixed amount per day, per week, or per month. Note that no policy will pay unlimited benefits. Answer: An indemnity long term care (LTC) insurance pays a specific daily amount based on your policy, supposed you get an indemnity ltci with benefits amount of $300/daily for a benefit period of 3 years, and you require long term care later, let's say your daily ltc expenses is $150, you will still get $300 regardless of your daily ltc expense, you have the freedom to decide where you are going to spend the excess $150. This is fixed for 3 years, depending on the benefit period you choose. So if after three years, you still need care, you will have to pay the cost out of your pocket An expense incurred ltci reimburesed you with exact amount for your care. Supposed you bought an expense incurred ltci with daily benefit of $200 for 3 years and your daily ltc expenses is $100, you will be reimbursed with $100 and the excess will be kept as a savings so you can extend your benefit period. If after three years you still need long term care, since you saved $100 from your benefit amount, the insurance company will cntinue paying for your expenses even if you only bought a 3 year benefit period policy, until your savings are all spent.
Term life is temporary coverage for a period of time that you choose based on your needs (mortgage paid off, kids finish college, retirement, etc) for 10, 15, 20, or 30 years.… Regular simple term does not accumulate any cash value. If you add the Return of premium rider you will receive all premiums paid, back at the end of the term chosen. Whole Life is permanent insurance (guaranteed to stay in force to age 100, 115, etc) and can accumulate cash value. Contact an experienced agent to help you choose what's best for your situation.
Group term life insurance is a type of life insurance provided for employees by their employer. An employer buys a master policy and issues certificates to employees deno…ting coverage under the plan. Group life insurance is also available through unions and associations. It is usually issued as yearly renewable term insurance, but some plans provide permanent life insurance. Employers may pay all of the cost, or share the cost with employees. Regardless of your reason for termination of employment, employees may have the option to convert their coverage to an individual life insurance policy without evidence of insurability or taking a physical examination. Usually, conversion must be within 30 days of ending your employment. The new premium upon conversion of the policy is based on the employee's age at the time. An individual life insurance policy is owned by the insured (in most cases). The insured usually pays the premiums and decides who the beneficiaryis for the policy. An indivual life insurance policy insured just one life. A group life insurance policy insures many lives.
It's the part of the cost you must pay before the insurance pays anything.
Revenue is the amount of money a business/person makes as a whole. Expenses are things that a business/person has to pay for with their revenue such as utilities that a busine…ss uses. What's left over from the revenue after the expenses are paid for is profit.
Yes, but it might not be a good idea as then the benefit would be taxable. Are you talking about YOUR coverage or for your employees? for more info see www.steveshorr.com/life….htm
The difference between regular and short term health insurance is mainly the price. The price for short term health insurance is lower than regular health insurance while have… exteremely similar coverage. In addition, short term health insurance is much maor flexable than regular health insurance as it allows you to choose how long oyu would like your coverage.
Term life insurance if only for the life of the coverage holder, once deceased the amount is paid to the beneficiary. Permanent life insurance, known as whole life insurance, …combines term life insurance with an investment option.