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Combination Insurance – Medicare Supplements & Funeral Expense Policies

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Seniors eligible for government Medicare are sometimes in search of combination insurance policies that will cover both the gaps in Medicare and final expenses associated with a funeral. Fortunately, there are a few companies that offer both coverages on one application making it easier to insure both needs.

Insurance providers such as Mutual of Omaha, Forethought Life, Sentinel Life and American Continental (to name a few) all allow applicants to combine Medicare supplement and funeral expense insurance.

Advantages Of Combination Insurance Coverage

Certainly the convenience of knowing that two important needs can be covered in just a few strokes of the pen is a nice feeling. The ability to cover out-of-pocket expenses associated with Original Medicare as well as the expenses needed to pay for a funeral all with one carrier will keep insurance issues simple for those who want peace of mind.

It will also be much easier for the spouse and/or the children of the insured knowing that they will only need to work with one insurance company in order to cover two basic needs. This type of simplicity is what families want most in times of need.

Supplemental Insurance Offers The Same Benefits

A  Plan F is a Plan F no matter the carrier from whom it is purchased. The only difference is if the insured chooses to purchase a “select policy” (one that operates on a network) or a high deductible Plan F, but those options are available regardless of the attached life policy. The coverage and benefits would not differ one iota so long as a traditional supplement is chosen.

All Medicare supplement carriers offer several policies for seniors to choose from. That is to say that not all carriers offer all plans, but almost all companies offer the most popular supplemental insurance coverages like Plans C, D, F, G and N.   Should the applicant choose to combine the two coverages, s/he can still purchase a plan that is most suitable for his or her needs.

How Does The Funeral Insurance Policy Work?

Most life insurance policies designed to cover funeral expenses operate in the same fashion regardless of whether they are attached to another type of policy. Again, the life policy  will not differ because the applicant is combining it with a Medigap plan.

In most cases, a whole life funeral insurance policy will require monthly premium payments until it is considers paid-up. No additional premium payments are needed once a policy is paid-up with a life insurance provider. The policy will build cash value over time that can be loaned against or tapped for unforeseen future expenses if needed.

Many funeral insurance policies offer different versions for the insured to choose from at onset.  One such example is referred to as a modified death benefit meaning the policy offers a smaller death benefit initially, but will gradually build up over time.

Policies with a modified death benefit are advantageous for those who wish to save money on their premiums as well as those who are less worried about a smaller death benefit in the first few years of the policy.

Are There Discounts When Combining Insurances?

Not usually. Some insurance companies will offer discounts on Medicare supplement insurance when both spouses are insured, but that is true whether or not a funeral policy is purchased. And generally speaking, the attached life insurance coverage will be similar in price whether or not a Medigap plan is purchased in conjunction with the policy.

There usually will not be any considerable savings associated with the combination purchase, but the simplicity of having both insurances with one company cannot be overlooked.

What If I Cancel One Of The Policies?

That is always an option and with almost all companies who provide dual applications, there will be no issues. If for example, the Medicare supplement policy was cancelled because another carrier was offering a much lower price on the same coverage, then the funeral insurance policy could be kept in force with the original carrier.

The opposite is also true. Should the insured decide to cancel the final expense coverage or transfer it to a paid-up policy, then the Medicare supplement would not be affected. In this way, policyholders are not locked into both coverages for their lifetime.

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In summary, purchasing a funeral expense policy and a Medicare supplement insurance plan from the same carrier can be an efficient way to cover two basic needs at one time.  The simplicity is helpful for the insured and his or her heirs.

Hyers and Associates, Inc. is a full service Medigap and life insurance brokerage firm. Contact us today to learn more about your best insurance options.

Category: Life Insurance, Medicare Supplements