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American Financial Security Life Insurance Company
Americans who are soon celebrating their 65th birthday are already bracing themselves for life in retirement. However, even if you have been saving up for the relaxed life after finally leaving the workforce, the rising cost of healthcare will eventually get in your way. How do you really account for medical expenses during the planning process? If you are like the majority of Americans, you probably are underestimating the reality of your health and age’s impact on your finances.
While there is no law that requires you to subscribe to any part of Medicare or even private insurance policy before you turn 65, getting one is a smart thing to do. You may be healthy now so you might not think that you need it. However, signing up for Medicare is all about securing a future version of you who will surely not be as healthy as you are at present. But that’s not all: if you do finally decide to get yourself Medicare insurance, understand that there still are healthcare expenses that it cannot cover (for reasonable federal budget reasons). This is why when you do speak of Medicare, the discussion about Medicare Supplement Insurance—which is sold through private insurance agencies—always comes up.
Understanding Medicare Supplement Plans
A Medicare Supplement, also called Medigap, is an insurance policy that is sold via private companies and acts as a supplement to Original Medicare. It can help in paying off some of the healthcare costs that Medicare is not able to shoulder, such as coinsurance, copayments, and deductibles. Original Medicare takes care of many hospital and outpatient expenses, but not all. If you have both Medicare and a Medigap plan, the former will first pay for its share of Medicare-approved procedures, then Medicare Supplements step in to take care of their share.
The greatest advantage to having a Medigap policy is that each one of the 10 government-designed plans* are required to follow state and federal laws. This means that no matter where you are and which insurance provider sells it, the basic benefits will be the same. Cost is typically the major difference between the Medigap plans with the same letter sold through different companies. To avail any of the Medigap policies, you will need to be first subscribed to both Medicare Part A and Part B.
*For reference, Medicare Supplement policies are identified by letter: A, B, C, D, F, G, K, L, M, and N.
American Financial Security Life Insurance
American Financial Security Life is a private insurance company that focuses on health, accident, and reinsurance products. Some of the policies that it offers cover critical illness and supplemental health insurance, short term medical products, and accident death and dismemberment. For employers, the firm offers medical stop loss and claims management. American Financial Security Life has been operating since 1957 and is set to begin selling Medicare Supplements in January 2021.
Available States for American Financial Security Life Medicare Supplements
AFSLIC is headquartered in Southern Florida and holds offices in New York. It also has a wide network of agents and brokers across the United States, including the following:
- Oregon
- Montana
- North Dakota
- South Dakota
- Nebraska
- Wisconsin
- Nevada
- Utah
- Missouri
- Illinois
- Indiana
- Ohio
- Pennsylvania
- Delaware
- Maryland
- Virginia
- Kentucky
- Arizona
- New Mexico
- Oklahoma
- Arkansas
- Mississippi
- Alabama
- Georgia
- North Carolina
- Texas
Choosing the Right Medicare Supplement Plan
When discussing your Medigap options with your American Financial Life Security agent, the first step is to understand what your current health status and budget is. The choice will also depend on your medical history and any possible medical blocks that might result in greater healthcare expenses in the future.
The most basic Medigap plan is Plan A, which all insurance companies are required to offer. It is also likely the cheapest. If you are generally in good health and subscribe to a healthy lifestyle, then you can get started with this plan. However, if your current health status suggests that you will need more help in the future, then you will need a more comprehensive policy that covers up to 100% of the basics.
For reference, Medigap plans cover the following benefits (in varying degrees, depending on the letter):
- Medicare Part A coinsurance and hospital costs (up to an extra 365 days after Medicare is exhausted)
- Medicare Part B copayment or coinsurance
- Part A coinsurance or copayment for hospice care
- Part A deductible
- Part B deductible ($203 in 2021)
- Part B excess charges
- First 3 pints of blood
- Foreign travel emergency (up to plan limits)
When to Enroll into a Medigap Policy
When you’ve decided which Medigap plan to select from American Financial Security Life (or your preferred provider), the next step is actual enrollment. The ideal time to purchase a Medicare Supplement plan is during your OEP or Open Enrollment Period. This is a six-month window during which you are guaranteed to be approved for ANY Medigap plan you want. It begins on the first day of the month that you turn 65 years old. For example, if your birthday is July 17, then your OEP starts July 1 and ends after six months.
Why is it important to enroll during your OEP? Guaranteed approval. Regardless of your health condition, the insurance company is required to issue approval at regular premium rates if you enroll during this period. However, if you delay enrolling and the six-month period lapses, then you might not be able to buy a plan or the company could charge you higher fees. On a related note, if you delayed enrolling in Medicare Part B because of you still have coverage from your current job or your spouse’s, then your OEP will begin only when you finally sign up for Part B. Medicare Supplement insurance is available only to those who are subscribed to BOTH Medicare Part A and Part B.
How We Can Help You
Do you have more questions about American Financial Security Life or any other insurance company that offers Medicare Supplement insurance, we can help. Our team of Medigap specialists can assist in providing the guidance and information you need so you can sign up for the best possible plan that fits your healthcare needs and budget. Don’t hesitate to get in touch with us at 1-800-354-1078.
