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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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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.
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.
There are deductions in the form of exclusions in health insurance.The exclusions are for lst year, 2nd year, showing the details of diseases in the policy bond itself. Even f…or diabetes as "Pre-existing", few companies gives coverage only after 48 months. Deductions are there when the Insurance Company or T.P.A. considers few expenses viz. Aaya charges, cost of bandage, ambulance fare etc. shown in the claimed amount, to be not within the purview of health insurance coverage.
Maximum out of pocket costs is the maximum amount you would have to pay (take out of your pocket) per year. I believe this is total for all incidents. This is an annual cost.,… ie, must be payed each year you have an accident/hospitalization. You would also have a deductable amount that you or your company selected when you purchased the insurance policy. May also say 80/20 You pay 20 percent, insurance company normally pays other 80 percent.
Can I add my monthly health insurance payment from my employer to my medical deductions, such as medications prescribed, office visits, etc..
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.
An employer's contribution to a group insurance plan is deductible as a business expense. This benefit is not taxable to the employee. An employee may not deduct a porti…on of the premium he cost shares with his/her employer. Typically a group benefit plan includes drug and dental coverage, lfe and long term disability . Where there may be cost sharing of the premium, an employer's contribution shoud always be to the health and dental portion. If any part of the premium for the long term disability is paid for by the employer, should the employee become disabled, then that benefit (usually up to 67% of the pre-disability earnings) would be taxable in the hands of the employee.
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.
It's the part of the cost you must pay before the insurance pays anything.
If you are referring to tax deductibility, yes, long-term care insurance is tax deductible. Age determines tax deductibiliby. Please refer to the related links below to ch…eck the limits of tax deduction for long-term care insurance:
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.
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.
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.
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.
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.