Health insurance that pays you back?

[nate124]

This is the 2nd time I've run into this situation. Has anyone else run into this, and how exactly does something like this work? The guy I'm working with was given a quote for $536.35/month. The health insurance plan has no deductible, $10 office visit copay and $10 Rx copay. He said it also will pay him a lump sum of $73,000 on his 65th birthday. I was thinking that it sounds like this agent just took a health insurance plan (not sure what company it is through) and slapped a return of premium life insurance policy on top of it, and sells it as health insurance that pays you back.

Anyone else run into this? How have you sold against it? I basically told the guy that he doesn't need a savings account, or life insurance. We're taking care of his health insurance needs. If he wants life insurance I would be more than happy to offer that to him as well.... but he kept coming back to this $73,000 lump sum thing.

It's with a company called "Optimum Benefits Group"... which I can't seem to find any info on when searching google.

Any comments on this? Suggestions??

 

[somarco]

Seems like Mega used to (still does?) offer a money back at age 65. Anyone willing to fall for that pitch needs a real good mental health benefit.

Couple of things to consider.

Do they put the refund in writing?

How do you know they will be around, and in the health insurance business when you turn 65?

What happens if they jump the premium so much you cancel the coverage before you get to age 65?

Do you know ANYONE who has kept the same health plan for more than 5 years? (I have one client with the same plan for 12 but they are highly unusual).

As far as the rest of it, . . . no deductible, $10 here & $10 there, that sounds more like a discount plan than anything.

Don't suppose he has anything in writing he would be willing to share with you?

Who is the carrier? You wont find a listing for an Optimum Health Insurance Company anywhere.

 

[BKrocko]

I got a hit on Google using "Optimum Benefits" - It is a health agency in AZ but doesn't look like the one you are looking for.

 

[nate124]

Seems like Mega used to (still does?) offer a money back at age 65. Anyone willing to fall for that pitch needs a real good mental health benefit.

Couple of things to consider.

Do they put the refund in writing?

How do you know they will be around, and in the health insurance business when you turn 65?

What happens if they jump the premium so much you cancel the coverage before you get to age 65?

Do you know ANYONE who has kept the same health plan for more than 5 years? (I have one client with the same plan for 12 but they are highly unusual).

As far as the rest of it, . . . no deductible, $10 here & $10 there, that sounds more like a discount plan than anything.

Don't suppose he has anything in writing he would be willing to share with you?

Who is the carrier? You wont find a listing for an Optimum Health Insurance Company anywhere.

Thanks for your response! I did not even think about the fact that he would have to have the same health insurance policy for almost 20 years. That right there is a good point to bring up for sure. I'm going to give him some options, and again bring up the fact that he needs health insurance... not some fancy weird savings plan. Thanks for giving me some things to consider. Much appreciated as usual!

 

[K-Dub]

I got a hit on Google using "Optimum Benefits" - It is a health agency in AZ but doesn't look like the one you are looking for.

No Barry, the hit wasn't on google, it was on your pipe!!

J/K

 

[somarco]

Kris, is there something you want to tell us about Barry?

 

[BKrocko]

No Barry, the hit wasn't on google, it was on your pipe!!

J/K

Man, I just realized I typed in "Opium Benefits" LOL.

 

[somarco]

I just realized I typed in "Opium Benefits"

Yep. That one of the problems with the pipe . . .

 

[J.R.]

Thanks for your response! I did not even think about the fact that he would have to have the same health insurance policy for almost 20 years. That right there is a good point to bring up for sure. I'm going to give him some options, and again bring up the fact that he needs health insurance... not some fancy weird savings plan. Thanks for giving me some things to consider. Much appreciated as usual!

Show him what a 10-20% rate increase annually will look like

 

[bcbroker]

This is the 2nd time I've run into this situation. Has anyone else run into this, and how exactly does something like this work? The guy I'm working with was given a quote for $536.35/month. The health insurance plan has no deductible, $10 office visit copay and $10 Rx copay. He said it also will pay him a lump sum of $73,000 on his 65th birthday. I was thinking that it sounds like this agent just took a health insurance plan (not sure what company it is through) and slapped a return of premium life insurance policy on top of it, and sells it as health insurance that pays you back.

Anyone else run into this? How have you sold against it? I basically told the guy that he doesn't need a savings account, or life insurance. We're taking care of his health insurance needs. If he wants life insurance I would be more than happy to offer that to him as well.... but he kept coming back to this $73,000 lump sum thing.

It's with a company called "Optimum Benefits Group"... which I can't seem to find any info on when searching google.

Any comments on this? Suggestions??

I remember that concept when it was around in the early 1980's
a combo deal of health insurance and a loaded annuity. Continental General was the health carrier, and American Bankers had the annuity if I remember.