I get lots of questions from friends and family and friends of family or family of friends...well, you get the point, about Supplemental Insurance. I thought I would just post this so that all y'all can know have this information handy when the moment is right:)
How do I know all this you might ask? I am licensed in the state of Virginia and Utah to sell Insurance. (and I even used to have my Series 6 license, but that's another story for another day:) AND mainly because I have experienced this all myself. It all started with Emily (as most good deals do:) Thanks Em!)
So here's the main point, if you purchase supplemental insurance policies at least a month before getting pregnant you can get a payout from the supplemental insurance companies (like Aflac and Allstate) after you have your baby and thus get back more than you paid. The chart above demonstrates how it works.
For example, with Sydney (our first baby) we paid a few thousand dollars in premiums between our Aflac and Allstate policies. After she was born we got checks from the insurance companies for over $6,000, so we ended up getting back a few thousand more than we paid in. This money you get is sent straight to you from the insurance company and you can use it for anything you want, to cover your deductibles, co-pays, diapers, new bedroom furniture, maid service ... whatever.
One thing I want to emphasize is that this sort of insurance DOES NOT replace major medical. You still need "regular" insurance. Supplemental insurance pays out based on what happens to the policy holder not based on a percentage of the total cost. So, with Sydney, everything was totally normal and followed the chart below. With Talmage (our second baby) as most of you know, things were very far from normal. Since he was in the NICU for 5 weeks and had 2 surgeries he was assigned a benefit amount for each thing that was not "normal". In the end we received over $47,000 from the insurance companies. I know what some of you are thinking, "You must be rich!" Errr, unfortunately not.... we are very grateful for that money as it has really helped out with all our added expenses (which is exactly what it is designed to do)...remember the $2200 shots that Talmage had to get every month and that we had a mortgage in Virginia, rent (albeit small) in Philadelphia and Camden and rent (not so small) in New York City...all at the same time, plus transportation to and from NYC and Philly for Tyler almost daily, plus the nanny, I think you get the picture:) Oh ya, and plus all the co-pays and deductibles, etc.... Just a few minor details. I haven't added it all up penny for penny, but the hospital bill came in over $300,000 and then when you add in all the separate doctors bills I am pretty sure Talmage was a Million Dollar baby! (and worth every penny of it I might add:) Thank goodness for maximum out-of-pocket!
Ok, so moving on, a question I get frequently is how does it work if you move. Each state has it's own insurance laws and regulations so depending on the state you live in the policy you get will be different. (for example, insurance policies in New York State are not as good as in other states) However, once you purchase the policy, it is effective wherever you are. I bought my policies in Utah and Syd was born in Virginia and Talmage was born in Pennsylvania.
One thing to keep in mind is that this does not work if you are on Medicaid.
I can already imagine the conversations....you are going to tell your husband about this and he is going to react with disbelief and skepticism...is this legal, is this a scam, does it really work? Yes, no, and yes. If he's really skeptical I can put him in touch with other formerly skeptical fathers who now have more money in their bank accounts, or IRA's, or more cool stuff, or less bills, or whatever:)
So how do you sign up. First, check with your (or your spouses) employer (the HR person) to see if they offer Aflac, Allstate, or Time/Fortis. It's cheaper if you get it that way AND it's portable so you get to keep the good rates even if you leave the company. If not then contact a sales rep in your area. That link is for Aflac. This one is for Allstate. However, to qualify for the Allstate policy you have to work at least 25 hours a week when you purchase the policy. And then there is a Time/Fortis policy available in some states that has better ratios than the other two, but I don't know much about it.
So why am I posting this? Am I making money from this? I know you were thinking that! Just admit it:) If you live in Virginia or Utah (and maybe soon to be Texas if I decide to get licensed there) and I help you I will get a commission, but for the rest of you I figure that more money in your pocket is more money into the economy which will help the real estate market which will help us sell our house! So really, it's mainly just for selfish reasons:)
And just to finish it all off, if you are a stay-at-home mom and want to earn a little extra money on the side you may want to consider getting licensed. It's a win-win situation for everyone. Your friends get money, you get money. What could be better! You do have to take a pesky little test and some other unpleasantness, but what a small price to pay to help your friends and family save some cash! Am I a sucker for a good deal or what?
Well, I hope this helps!
7 comments:
It's funny that you should post this...another friend of mine in Utah told me about supplemental Insurance and we've been talking about it as we've talked more about baby #2. So THANKS! You've helped answer some questions. Now, is there somewhere I should look to see if it would be better to sign up in Kentucky versus California as far as policies go? Again, thanks for your help.
Heather
Hey Heather!
I think the only way to compare benefits is to call an agent in each of those states and ask them what they would be. I know, what a pain! You could ask them to send you the brochure for each policy so you can read over it. So much FUN:)jk
Hmm, I have been toying with the idea of quiting my job and using medicaid, but maybe it would be better to stay employed at the hospital and take out insurance with aflac and allstate. I just worry that I will pay the premiums and not make money in the end. What if (heaven forbid) you lose the baby?
Someone I know had 2 pregnancies that ended and her Aflac policies helped cover the cost of the procedures she had to undergo following the miscarriages. My best advice here is to contact an Aflac agent in your state and get the brochure and read through it. Benefits are different depending on your state.
When Tyler ran the numbers you could have the policy for 31 months and still break even.
The benefits outlined on the chart are not the only benefits, just the most common scenario. For example, I was in a wreck and I got a $200 check for the ambulance ride from Aflac even though my car insurance paid for that expense.
You said Tyler ran the numbers and said that I could have it for 31 months and still break even. Did you mean 31 days? Because I was planning on having it for like 10 or 11 months - a month before I get pregnant until the baby is born. Do I need to have it longer than that? Sorry, I have a lot of questions. I promise I will contact an insurance person and stop bothering you :)
After 31 months your payout would be the same amount that you have paid in (in premiums) meaning you wouldn't "make" any money but you wouldn't "lose" any either. So basically don't panic if it takes awhile to get pregnant. I had the policies 9 months before GETTING pregnant and still made money.
I would definitely suggest having it AT LEAST 6 weeks before getting pregnant. Better to have it for too long than not long enough. But if you did get pregnant the day after you bought the policy you can cancel the policy and just be out the amount of money you had paid in premiums up to that point.
P.S. Another thing I didn't mention, it should be obvious, but I will say it anyway...these are all Hospitalization policies so if you are planning a home birth ...it's probably not the plan for you.
Thanks Rebecca. I've been thinking about doing this for a long time. i will have to contact you when the time si right for us. Your awesome, so smart too!
Shauntell
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