Types of Life Insurance and Why It’s Important to You



Life insurance has become a big topic of conversation in the months leading up to the New Year. With the Affordable Care Act going into effect, enrollment must be done by December 23rd to receive coverage starting as soon as January 1st. This brings up a lot of indecision and questions from the general public on what life insurance brings and how it affects your life. Different plans meet different needs, and everyone may be different. Here is a small list of options:

Health Maintenance Organizations (HMO’s) and Exclusive Provider Organizations (EPO’s):

According to healthcare.gov, HMOs and EPOs limit coverage to providers inside their networks. Generally, HMO members select a primary care physician and must get referrals to use a specialist. One of the fall backs for an HMO plan is if you use a doctor that isn’t located in the HMO network you may have to pay full price for any services. The main benefit for an HMO plan is out of pocket costs are usually reduced.

Preferred Provider Organizations (PPO’s) and Point-of-Service plans (POS):

PPO and POS plans are very flexible, you receive the choice of receiving care within or outside of the network provided. If you choose to use an out of network provider or facility, you will have to pay more than if you used an in-network one. Also, with a PPO plan, you can visit any doctor without a referral. Some benefits are that you do not need to select a primary care physician and the freedom to choose any doctor.

High Deductible Health Plan (HDHP):

Typically, these plans offer lower premiums and higher deductibles. If you have an HDHP, you can use a health savings account to help pay for out-of-pocket costs. This can lower taxes that you owe over the year. You are most likely going to benefit from this plan if you are in good health or have a very high prescription drug cost. With less doctor visits yearly, you will be paying less premiums and less out-of-pocket costs.

If you have further questions about life insurance or the Affordable Care Act contact Miller Insurance Agency in Bloomington, IL. They will be able to walk you through the changes, give you options that fit your lifestyle, and best yet save you money.