The High Deductible (Health Insurance) Survival Plan

Do you have a high deductible health insurance policy? Do you love someone or owe someone? What do these questions even have in common? Follow along and I will explain.

With the recent changes in the health insurance market, more people than ever now have high deductible plans. Some never enjoyed coverage previously and some chose these plans due to price. What if something happens to you, a heart attack or cancer diagnosis for example? Will you have the funds to pay your high deductible all at once? Where will you get the money?

A recent study from LIMRA showed half of the people in our country have no life insurance at all, and half of the other half don’t have enough. You might be part of the three of every four people that are in need of coverage.

If you need a source of funds to pay your health insurance deductibles and have a need for life insurance, there is a solution that covers both needs. What if your life insurance policy could provide income to your family if you die too soon and a living benefit you can use to cover your health insurance deductible?

Such policies do exist. In fact, one major insurance company lists cancer, heart attack, stroke, major organ transplant, end stage renal failure, ALS, blindness, paralysis and loss of two or more limbs as qualifying conditions to accelerate part of the death benefit.

How much money could you get from your life insurance policy if one of these things happened? Here is an example from that same insurance company estimating how much money a 40 year old male with a $500,000 death benefit might receive.

Estimated Maximum Accelerated Payout:

This was based on a 30 year term life insurance policy on a male age 40. The company will categorize your condition at the time of claim as minor, moderate or severe based on how that condition affects your life expectancy. The more severe the condition, they more money you receive. Any funds paid to you while living reduce the death benefit dollar for dollar. You no longer have to wait to die to benefit from your term life insurance policy.

How much will this cost me?

Here’s an example: For a 40-year old man in great health needing $500,000 of coverage for 30 years, the lowest price is $54.50/mo. A company offering term life insurance with living benefits is only slightly more at $66/mo. If you can afford the $54 product, could afford just $12 more?