AIG type Health Plans

Mar 20, 2007

  1. Winter_123
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    Winter_123 Guru

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    I am in a state where Assurant and Mutual of Omaha hospitalization plans are not approved but would like to become famiiliar with carriers that offer supplemental hospitalization, surgery, critical illness benefits.

    I saw an ad for AIG plans but do not know what their reputation is, in regard to health plans anyway. Are their plans good, bad, so-so, and do they pay their claims? Are they competitive on price? Are their carriers that would be better for various reasons?

    I know much of it all depends, etc as with any comparison but would appreciate any guidance or comments who get the general drift of my inquiry.

    Thank you.

    Winter
     
  2. joshril
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    joshril Guru

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    AIG

    As far as I know, all AIG sells on the health side would be supplemental coverage like cancer, accident, etc..

    Don't know the specifics of the coverage because I dislike most supplemental products out there... The premium you're dumping into a cancer policy would be much better invested in some type of investment or retirement account IMO.
     
    joshril, Mar 21, 2007
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  3. Winter_123
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    Winter_123 Guru

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    Not necessarily. Some of the AIG and other supplemental plans cover surgeries and hospitalization for a wider range of conditions. The fastest way to see a retirement plan wiped out is through medical bills. Most bankruptcies are caused by medical expenses and in the majority of instances the person going through bankrupty *had* health insurance.

    In any case, the editorial comments and opinions do not answer the questions I asked.

    Winter
     
  4. joshril
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    joshril Guru

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    It may be the case that AIG has supplemental hospital policies and I agree that medical bills could wipe out a retirement savings, but supplemental products are not the way to protect someone.

    A suitable major medical health policy in conjunction with the premium that would have been used on supplemental health being placed in a retirement plan makes much more sense.

    The argument that supplemental plans protect and are a better investment than investing in IRA's, mutual funds, etc. is just an "Aflac style" pitch to sell needless products.

    Assuming someone has sufficient medical coverage, I see absolutely no need for supplemental hospital, cancer, accident policies, etc..
     
    joshril, Mar 21, 2007
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  5. johnrocks
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    What if you get cancer say within 5 years of starting a plan like your advocating. I know this is a "what if" but isn't insurance basically designed against the "what ifs" of the world?
     
  6. Winter_123
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    Winter_123 Guru

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    Who the heck is talking about supplemental plans as a form of investment. Apples and oranges. Probably no one needs life insurance either because if you put all of the premium into mutual funds over a 30 period you would have a substantial investment built up. Good theory unless you die next week with three little kids. Two different concepts and products. Also, the aforementioned mutual funds go down as easily as they go up. Not much "protection" from that.

    Winter
     
  7. joshril
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    joshril Guru

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    I won't even get into the mutual fund discussion. A properly diversified portfolio constructed by a knowledgeable professional is an excellent retirement planning tool.

    And yes, insurance is about the what-if's, but you have to look at the probability of the "what-if" occuring. Why do you think AD&D is so cheap. I can buy a $1,000,000 AD&D policy for $11.00/mo. The reason it's so cheap is because the odds are against me dying or being dismembered due to an accident. The life insurance analogy doesn't even make since. We will all die at some point and I recommend life insurance prior to doing any type of investment depending upon the client's needs.
     
    joshril, Mar 21, 2007
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  8. somarco
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    somarco That Medicare Expert Guy

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    Talk to someone who has had a major claim . . . say $100,000+

    Ask them how much their plan paid.

    You might change your song.
     
    somarco, Mar 21, 2007
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  9. Winter_123
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    Winter_123 Guru

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    Your answer to the original question that was posted about AIG is "I don't know." Sometimes it is best to just say that or let others reply who can stay focused on the question reply rather than going in sideways directions that are of interest to you. If, for example, a person asks how much the commission is on AFLAC sales, he probably wants to know what the commission is on AFLAC sales rather than opinions on supplemental insurance.

    Winter
     
  10. joshril
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    I understand that insurance will not pay everything. It is not designed to. You can buy cancer insurance, HI policies, accident policies, heart and stroke policies, and never end up using any of them. Most of the companies that sell these type of policies bank on consumers canceling them before a claim is paid anyway. The premium you could put into these "what-if" policies could be better used elsewhere. I had mentioned investing that premium, but you could even possibly look at more life insurance or a better health plan or if you are not the investment type dumping it into a savings account. IMO that would be more useful than putting money into a policy you are less likely to use than your health or even your auto insurance plan.

    And I will agree, in some cases, people bought these policies and then got cancer 3 months later, and the coverage was great for them. But, if you look at shear statistics, the amount of benefit the policy will pay out, and the amount of premium required to purchase this type of policy, the math doesn't work out.

    Winter... sorry for the discussion, but you rebutted my first comment. I do know a guy that sells AIG, and I can find out the details of their plans for you.
     
    Last edited: Mar 21, 2007
    joshril, Mar 21, 2007
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