Insurance Division

For over 25 years, the Advisors and staff of Pathway Financial Services LLC have been serving the retirement and financial planning needs of our clients.  Because risk management is a key part of any solid financial plan, and because we have been asked by our clients to consider offering additional insurance options, we are excited to announce that we now have a dedicated agent that will assist with all of our clients individual insurance needs.

We are pleased to be able to add this additional level of service for our clients.  Everyone's insurance needs are different, and as an independent planning firm, we offer a variety of high-quality companies and products.

A list of our individual product offerings is below.  Click on each product to learn more about the product and companies offered.

Please contact us with questions, or to request a quote.  We look forward to being able to work with you to customize an insurance plan that fits your personal, financial, and estate planning needs.     

 

                                                             Medicare Supplement (Medigap) Plans                  Medicare Advantage Plans

                                                                 Medicare Prescription Drug Plans                       Final Expense Insurance

                                                                           Hospital Indemnity                                    Long Term Care Insurance

                                                                          Term Life Insurance                                           Cancer Insurance

                                                                             Dental Insurance                                            Vision Insurance

 

The Importance of Medicare

When it comes to planning your retirement, there is no shortage of components to consider. Making an income plan, deciding when and how to file for Social Security, and minimizing the impact taxes may have on your retirement assets are just a few of the issues you will need to address. Crafting a retirement plan that is capable of supporting your lifestyle and rewarding the years you spent in the workforce is no easy task. In fact, it may be a financial challenge unlike any you've ever faced before.

While it's easy to become entangled in the many different financial issues your plan will encompass, in our opinion, it's critical that your plan also addresses your health needs and concerns by including a comprehensive and affordable health insurance strategy.

There are many different ways to accomplish this, but for many retirees, Medicare may be the most important. Medicare guarantees health insurance for people at age 65, after they have received Social Security disability benefits for at least 24 months, or if they have end-stage renal disease or have amyotrophic lateral sclerosis (also known as Lou Gehrig's disease). According to the National Committee to Preserve Social Security and Medicare, of the nearly 51 million Americans who were Medicare recipients in 2012, about 42.1 million of them were over age 65, which we feel makes having a Medicare strategy to manage healthcare costs a crucial component of retirement planning.

Like Social Security, Medicare is a federal social insurance program that you have paid into throughout your career. Don't you want to know how to get the most out of what you have put it in?

For millions of retirees, their Medicare coverage often means the difference between either insulating their retirement savings from medical costs or quickly depleting them. To ensure you belong to the former, let's examine the four basics of any insurance plan: coverage, eligibility, enrollment and premium cost as they relate to Medicare.

 

Medicare Coverage:

Deciding how to get your Medicare coverage begins with first knowing what type of coverage you need.

Medicare is split into four parts:

  • Part A: Hospital insurance – covers the costs of health care at medical facilities. Offers coverage for medically necessary inpatient care at hospitals, skilled nursing facilities, hospices and home health services.
  • Part B: Medical insurance – covers the costs of health care outside medical facilities. Offers coverage for doctors' services, hospital outpatient care, home health care, mental health and some preventative health care services.
  • Part C: Medicare Advantage (MA) plans – policies you can purchase from certain private insurance carriers that provide the same (or more) coverage as Parts A and B.
  • Part D: Prescription drug coverage offered through private Medicare-approved insurance companies.

Medicare Supplement Insurance (Medigap policies)

Original Medicare (Part A & B) pays for much, but not all, of the cost for covered health care services and supplies.  Medicare Supplement Insurance policies, sold by private companies, can help pay some of the remaining health care costs for covered services and supplies, like copayments, coinsurance, and deductibles.  Medicare Supplement Insurance polices are also called Medigap policies.  These are also identified in most states by letters A through D, F through G, and K through N.

When going with Original Medicare, you then either choose a Medicare Advantage plan or a Medicare Supplement policy and a Part D drug plan.

Eligibility

In general, a person is entitled to receive Medicare at age 65, after they have received Social Security disability benefits for at least 24 months, if they have end-stage renal disease, or if they have amyotrophic lateral sclerosis (also known as Lou Gehrig's disease).

Enrollment

Enrollment in Parts A and B is automatic for anyone who is 65 years old and already receiving Social Security, diagnosed with ALS or under age 65 and receiving disability benefits. For individuals eligible for Medicare but who do not qualify for automatic enrollment, they can sign up to receive Parts A and B during an enrollment period.

If you don't plan on filing for Social Security when you turn 65, it's important to enroll for Parts A and B during the three months prior to your 65th birthday. Failing to do so will delay your coverage and may result in late penalty fees.

Parts C and D, on the other hand, are offered through private insurance companies, which means if you decide you want this coverage type, you must purchase one of these policies during an enrollment period. Keep in mind that if you don't sign up for Part D when you're first eligible, your premiums may be subject to penalty.

Pricing

The premiums for each part of Medicare vary according to several different factors. Many people with Part A do not pay a premium because they have already paid enough into the system. As with Social Security, a certain portion from each one of your paychecks is automatically deducted to pay for Medicare. When you've had this Medicare tax withheld from your pay for at least 40 calendar quarters, then you will be eligible for zero premium Part A coverage.

The monthly premium associated with Part B is set according to income level, although most people will pay the standard monthly premium and have a yearly deductible. Individuals who have an annual income greater than $85,000 and couples who have a joint annual income greater than $170,000 will have an extra charge added to their premium due to their high income level.

Parts C and D are provided via private insurance companies so the monthly premiums of these policies depend on the extent of their coverage and can vary between companies.

Bringing It All Together

Understanding the basic components of Medicare and how they fit together is an important step toward selecting the policy that is best for you. However, working with a financial professional will help ensure that your Medicare coverage will complement and support your retirement plan in the most beneficial manner possible.

 

Dental Insurance

Dental insurance is designed to offer you coverage for common dental care issues and to help you budget for dental services at all levels, preventive, basic, and major.  Pathway Financial Solutions is able to offer dental insurance through Delta Dental of Kansas.  Through Delta, they offer a range of options to cover everyone from single to family through a four-tier option.  This allows you to keep dental insurance via bank draft or credit card payment for as long as you wish.  When enrolling, if you can provide prior dental insurance in the last 60 days, the major services waiting period is waived; prior company doesn't matter.

 

Vision Insurance

Vision insurance is designed to help you cover and budget for ongoing vision care expenses like routine eye exams, prescription glasses, and contact lenses.  Pathway Financial Solutions is able to offer vision insurance with Vision Care Direct.  Vision Care Direct is locally owned and operated by doctors in your community.  With Vision Care Direct, they offer three plan options with four-tier coverage options.  They have a large network of doctors available in the state of Kansas and across the nation.

 

Term Life Insurance

Term life insurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is typically the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.  Through a free health questionnaire, Pathway Financial Solutions is able to give quotes from many companies across the nation.

 

Cancer Insurance

Cancer insurance helps you pay for unexpected expenses after a cancer diagnosis. It is supplemental insurance coverage that provides a lump sum of cash you can use for any purpose, such as medical treatments, living expenses, and transportation services. You may be ineligible for coverage if you have already been diagnosed with cancer.

 

Long Term Care Insurance

Unlike traditional health insurance, long-term care insurance policy is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.

Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating.  You can select a range of care options and benefits that allow you to get the services you need, where you need them.

The cost of your long-term care policy is based on:

  • How old you are when you buy the policy
  • The maximum amount that a policy will pay per day
  • The maximum number of days (years) that a policy will pay
  • The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay
  • Any optional benefits you choose, such as benefits that increase with inflation

Through a free health questionnaire, Pathway Financial Solutions is able to give quotes from many companies across the nation.

 

Final Expense Insurance

Final expense life insurance is a type of permanent life insurance where the death benefit is used to cover medical costs and other end-of-life expenses, most often funeral costs including services like burial or cremation, items like caskets and urns, and more.

Permanent life insurance does not expire and remains in force for as long as the premiums are paid. If you purchase final expense insurance, as long as you continue to pay the premiums, the policy will be in effect until you die and your beneficiaries will receive the death benefit.

Unlike traditional life insurance policies, which require an investigation into your health – including a paramedical exam – final expense policies like a burial insurance policy don't require such in-depth research and applicants will often be insured after answering only a few questions.

Final expense insurance comes in two types: guaranteed issue life insurance or simplified issue life insurance. Guaranteed issue policies ask just a few knockout questions to make sure you don't currently have a terminal illness. Simplified issue policies require a more detailed medical questionnaire, but don't require a medical exam.

 

Hospital Indemnity Insurance

Hospital indemnity insurance is a type of health coverage plan designed to cover hospital stays. Individuals who file a claim can receive a certain amount each day to spend however they choose for up to one or two years. Many plans extend coverage to spouses, children, and other dependents, and hospital indemnity policies are often used along with other insurance coverage plans to pay for the entire hospital bill owed. The plan also acts as a financial backup for some of the out-of-pocket expenses that most health care coverage plans will not cover. Patients can use the money how they see fit and are not limited by the restrictions that come with other health plans.

Coverage is often provided for intensive care unit stays, general hospitalization, and emergency treatment. Some plans will also cover stays that result from outpatient surgery. The type of hospital stay may result in a different daily benefit amount and the number of days covered. For example, a patient who is hospitalized in the intensive care unit may receive a higher amount than another patient who is hospitalized in general care. A hospital indemnity insurance plan is often flexible, allowing patients to direct payments to themselves, the hospital, or a third party.