These types of policies provide added protection should you become disabled, require long-term care, or enroll in Medicare:
Disability Income: This coverage provides for weekly or monthly benefit payments while you are disabled after a covered injury or sickness. The disability payment is usually a set dollar amount not to exceed a certain percentage of your income. These policies usually expire when you become eligible for Medicare.
Long-Term Care Insurance: This policy usually pays for skilled, intermediate, and custodial care in a nursing home and also for care in other settings, such as the home, adult day care center, or assisted living facility. The policy usually pays a fixed amount per day while a person is receiving care.
Medicare Supplemental Coverage: The federal Medicare program pays most medical expenses for people 65 or older, or for individuals under 65 receiving social security disability benefits. However, Medicare does not pay all expenses. As a result, you may want to buy a Medicare supplement policy that helps pay for certain expenses, including deductibles not covered by Medicare.
These are not health insurance plans:
Discount Plans: You may receive advertisements from plans offering discounts on health care for a monthly fee. These are not health insurance plans and participants do not have the same protections as under licensed health insurance plans. The Department of Insurance strongly recommends that you thoroughly investigate any plan promising deep discounts for a “low” monthly fee and weigh the benefits against the cost carefully.
Non-Licensed Risk-Sharing Plans: You may receive offers to join a group or association that will take your monthly payments, put them in a savings account (or trust) with other participants’ money, and then help pay some of your health care costs, as needed. Such arrangements are not insurance and the participants do not have the protections available to purchasers of licensed insurance plans. The Department of Insurance strongly recommends that you thoroughly investigate such plans before joining.
If you have questions, please call the Consumer Services Division at 803-737-6180 or contact your insurance provider.