I have several prospects that need low cost medical insurance which of course means a high deductible policy. Is it ethical to sell this type of policy knowing they can't afford a $5,000 deductible even with an HSA? The last thing I want to do is mislead people but I also don't want to see them completely out in the cold.
New agent with question about high deductible, HSA insurance.
- Thread starter Jeanie2
- Start date
Ethical? Are you kidding?
Isn't it better to have something that covers all but $5k vs. nothing at all, or some junky mini-med that will totally hang them out to dry?
A $5k deductible is not high.
Most people have credit card limits higher than that. They think nothing of borrowing $30k or more for a new car but think a $5k deductible is high.
The folks who shy away from a $5k deductible because it is too high are the same folks with a $1500 big screen TV in the den.
Gimme a break.
Isn't it better to have something that covers all but $5k vs. nothing at all, or some junky mini-med that will totally hang them out to dry?
A $5k deductible is not high.
Most people have credit card limits higher than that. They think nothing of borrowing $30k or more for a new car but think a $5k deductible is high.
The folks who shy away from a $5k deductible because it is too high are the same folks with a $1500 big screen TV in the den.
Gimme a break.
- Thread starter
- #3
agent4sail
Expert
- 81
- 15,319
It's ethical for you to show them their options.
However, at $7 a hour, how long do you think the policy will remain in force? Maybe until the next pay per view.
Rick
However, at $7 a hour, how long do you think the policy will remain in force? Maybe until the next pay per view.
Rick
- 1,908
Point of Clarification:
When you say, "they can't afford a $5,000 deductible." are you saying that, if they get the policy, then immediately go in for surgery, they won't have five grand in cash to pay the hospital?
That very well may be.
That's not the idea behind a High Deductible Health Plan, though. The idea is to raise the deductible amount, saving premium dollars, and put some cash in a safe place, for when, in the future, they need it, it will be there.
This is not car insurance, it's health insurance.
What they're not telling you is that they don't want to go without that copay. You see, you, the member, spend less frequenting the doctor for every sniffle and scratch, therefore gouging the system. That, my dear agent, is the real reason they don't want it.
Just my guess.
When you say, "they can't afford a $5,000 deductible." are you saying that, if they get the policy, then immediately go in for surgery, they won't have five grand in cash to pay the hospital?
That very well may be.
That's not the idea behind a High Deductible Health Plan, though. The idea is to raise the deductible amount, saving premium dollars, and put some cash in a safe place, for when, in the future, they need it, it will be there.
This is not car insurance, it's health insurance.
What they're not telling you is that they don't want to go without that copay. You see, you, the member, spend less frequenting the doctor for every sniffle and scratch, therefore gouging the system. That, my dear agent, is the real reason they don't want it.
Just my guess.
- 1,070
I find that people in the low income arena are more interested in outpatient services and drugs that cover their pre-existing.
Insurance is meant to protect assets. No assets = no need for insurance.
What they could use are some indemnity plans if they can't work.
They won't be able to keep up the payments on something they can't use.
Do them a favor and tell them to familiarize themselves with the county health system and eat healthy and exercise.
Insurance is meant to protect assets. No assets = no need for insurance.
What they could use are some indemnity plans if they can't work.
They won't be able to keep up the payments on something they can't use.
Do them a favor and tell them to familiarize themselves with the county health system and eat healthy and exercise.
- 596
Keep in mind that with the $5,000 deductible, most clinics will finance that at a minimal rate (many in my area between 0% to 3%) over a period of 12 months or sometimes longer. So if something big happens and they can't front the money, they aren't completely up a creek.
Plus, consider the scenerio where someone gets cancer and has a $5000 deductible. A spaghetti (spelling?) dinner fundraiser could likely be used to cover the deductible if worst came to worst.
Plus, consider the scenerio where someone gets cancer and has a $5000 deductible. A spaghetti (spelling?) dinner fundraiser could likely be used to cover the deductible if worst came to worst.
- 168
You hit the nail squarely on the head with this post.
It is better to have insurance regardless of whether the money is in the bank for the deductible or not. Without some form of insurance some hospitals and clinics won't let you in the door. That's dangerous. Ethically, it is your duty to protect your client first. You do not owe the medical providers that duty. The hospitals and doctors can handle that on their own and they have a process for it.
The deductible can be financed or forgiven at the providers option. Financing is commonplace.
Michael Levy
Chairman and Founder
MostChoice.com, Inc.
http://www.mostchoice.com
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