AIG type Health Plans

Winter · 03-20-2007, 08:30 PM

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

joshril · 03-21-2007, 01:29 PM

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.

Winter · 03-21-2007, 05:30 PM

Quote:

Originally Posted by joshril

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.

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

joshril · 03-21-2007, 05:43 PM

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..

johnrocks · 03-21-2007, 05:49 PM

Quote:

Originally Posted by joshril

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..

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?

Winter · 03-21-2007, 06:34 PM

Quote:

Originally Posted by joshril

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..

=================================
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

joshril · 03-21-2007, 07:08 PM

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.

somarco · 03-21-2007, 07:29 PM

Quote:

I see absolutely no need for supplemental hospital, cancer, accident policies, etc..

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

Ask them how much their plan paid.

You might change your song.

Winter · 03-21-2007, 07:36 PM

Quote:

Originally Posted by joshril

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.

===================

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

joshril · 03-21-2007, 07:36 PM

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.

somarco · 03-21-2007, 07:53 PM

So, Josh . . . you are saying you have actually talked to people who have had $100k claims or are you just promoting your theories?

I have no intent of making this a tit for tat thread. Just looking for an answer to my question.

It can be answered yes, or no.

***Melmunch3*** · 03-21-2007, 07:57 PM

Josh,
If you look at the statistics of ANY insurance product that is available, the % of payout is much lower than the cost of premiums. Title and boiler insurance, might have the higher margins, but to be perfectly frank, if the numbers ever completely justified the product, as in 95% payout for 100% of the premium, then these companies could not afford to pay you and me. Lord knows we need to get paid!

somarco · 03-21-2007, 08:00 PM

The Value Plan is a new venture for AIG. Remains to be seen how well it will work over all. Decent for some things. Compares to Assurity. The plan has only been around for about a year.

joshril · 03-21-2007, 09:47 PM

Quote:

Originally Posted by Melmunch3

Josh,
If you look at the statistics of ANY insurance product that is available, the % of payout is much lower than the cost of premiums. Title and boiler insurance, might have the higher margins, but to be perfectly frank, if the numbers ever completely justified the product, as in 95% payout for 100% of the premium, then these companies could not afford to pay you and me. Lord knows we need to get paid!

I agree with what you are saying, but you can insure anything these days.. extended warranties on $800 TV's, warranties on tires, and things like that. I feel that many people can over insure themselves and premium dollars for certain types of insurance can be better used in other places... To each his own. I do not sell supplemental products and never will. When you look at the percentage of people that use a health insurance policy versus the percentage of people that use a dread disease policy, I feel the extra $$$ could better serve the clients needs by giving them a better health policy or through investment.

And yes, Somarco, I know 2 people that have had claims that exceeded $100,000. One was fairly fortunate the other was not. I will not mention the carriers, but the one that was not fortunate was with a less than reputable carrier. The one that was fortunate came out with a little over $8,000 OOP on around $120,000 bill. I believe the hospital even wrote some of the $8000 off, but I don't know how much.

somarco · 03-21-2007, 10:06 PM

Then both, especially the "less fortunate" one, could have benefitted with a supp policy.

Did the one with $8k OOP have savings they could dip in to for paying the bill?

It would appear they did not, otherwise the hospital may not have charged off some of the bill.

joshril · 03-21-2007, 10:11 PM

Quote:

Originally Posted by somarco

Then both, especially the "less fortunate" one, could have benefitted with a supp policy.

Did the one with $8k OOP have savings they could dip in to for paying the bill?

It would appear they did not, otherwise the hospital may not have charged off some of the bill.

I don't know, but let's say they would have paid $120/mo for 5 years on a sup plan... $7200 @ 3% and they are just about there...

Also, what percentage of people have hospital claims over $100,000? or even $50,000? I just don't think the risk is justified and we may have to agree to disagree. I will never convince you not to sell sups, and you will never convince me to sell sups... We can still be friends though.. lol