"Don't Let Medical Bills or Funeral Costs Be Your Final Message to Your Family"

Medicare Supplement Insurance (Medigap) is health insurance that covers gaps in Original Medicare Parts A and B—not life insurance. However, many companies bundle Medigap with Final Expense Life Insurance, creating what's marketed as "Medicare Supplement Life Insurance." The Medigap portion covers deductibles, copayments, and coinsurance, while the life insurance provides a death benefit (typically $2,000-$25,000) for final expenses.

This is the #1 source of confusion - understanding this difference is absolutely essential:

Medicare Advantage (Part C):
• REPLACES Original Medicare entirely with private insurance
• Usually includes prescription drugs built-in
• Restricts you to specific networks of doctors/hospitals
• Often has $0 monthly premiums but higher costs when you need care
• You CANNOT have Medigap if you choose this

Medigap (Medicare Supplement):
• SUPPLEMENTS Original Medicare (you keep government Medicare)
• Works with ANY doctor that accepts Medicare nationwide
• Requires separate Medicare Part D for prescriptions
• Higher monthly premiums but lower costs when you need care
• You CANNOT have Medicare Advantage if you choose this

KEY POINT: These are mutually exclusive - choose one path only.

• You cannot have both Medigap and Medicare Advantage simultaneously
• Some Medigap plans cover emergency care abroad
• Plan F is no longer available to new Medicare beneficiaries (as of 2020)
• Missing your 6-month enrollment window can cost you thousands
• All Medigap plans with the same letter offer identical benefits nationwide

Lower Income ($60K and under):
• Retirees on fixed incomes who can't afford surprise medical bills
• Those who want predictable monthly healthcare costs for budgeting
• People who qualify for Medicare Savings Programs (may help with premiums)

Higher Income ($100K+):
• Those who want premium healthcare access without network restrictions
• People who travel frequently or split time between multiple states
• Individuals focused on wealth preservation and legacy planning

Meet Dorothy, 67, retired school secretary, $45,000 annual income: Dorothy fell and broke her hip, requiring 5 days in the hospital plus surgery. With Medicare alone, her costs would have been:

• Part A deductible: $1,632
• Part B coinsurance (20%): $2,400
• Total: $4,032

With her Plan G Medigap policy ($165/month), Dorothy paid: $240 total (just her Part B deductible).

Her $10,000 final expense policy later covered her cremation, allowing her son to focus on grief rather than debt.

Meet Robert, 69, retired executive, $150,000 annual income: Robert splits time between Arizona and Michigan, travels internationally twice per year. He chose Plan G ($220/month) plus $25,000 final expense coverage because:

• He can see any doctor in any state without referrals
• His plan covers emergency care abroad during his European trips
• One heart attack in Arizona cost $45,000 - he paid only $240 (Part B deductible)
• His higher final expense amount ensures a dignified service matching his lifestyle

• Predictable Costs: Know exactly what you'll pay for healthcare
• National Coverage: Any Medicare-accepting provider, no networks
• Family Protection: Final expense coverage prevents family debt
• Guaranteed Renewable: Cannot be canceled due to health changes
• Travel Benefits: Some plans cover emergency care abroad

Lower Income Strategy:
• Choose Plan N (lower premium, predictable copays)
• Focus on smaller final expense amounts ($5,000-$10,000)
• Look for community-rated plans for stable costs
• Consider high-deductible Plan G if available and healthy

Higher Income Strategy:
• Choose Plan G (comprehensive coverage, minimal out-of-pocket)
• Consider larger final expense amounts ($15,000-$25,000)
• Add riders like accidental death benefits
• Use as part of broader estate planning strategy

Typical Total Monthly Costs (Medigap + Part D + Final Expense):

• Lower Income Approach: $140-$220/month
• Higher Income Approach: $200-$400/month

Community-Rated: Same price for all ages
• Best for: Those wanting predictable costs long-term
• Example: $180/month at age 65, still $180/month at age 85

Issue-Age-Rated: Price based on age when you buy
• Best for: Most people planning to keep long-term
• Example: Buy at 65 for $150/month, stays $150/month forever

Attained-Age-Rated: Price increases as you age
• Best for: Short-term coverage only (risky)
• Example: $120/month at 65, but $250+/month at 80

RECOMMENDATION: Issue-age-rated offers best long-term value for most people.

Lower Income Perspective: One hospital stay without coverage could cost $5,000-$15,000 - more than 5 years of premiums.

Higher Income Perspective: Protects your investment portfolio and ensures medical expenses don't erode your legacy.

Your 6-Month Medigap Open Enrollment Window:

• Starts when you turn 65 AND enroll in Medicare Part B
• GUARANTEED ISSUE - Cannot be denied regardless of health
• NO MEDICAL QUESTIONS - No waiting periods
• MISSING THIS WINDOW CAN COST YOU THOUSANDS

• Insurance companies CAN deny your application
• You may pay higher premiums based on health
• Waiting periods up to 6 months for pre-existing conditions
• Some conditions may make you completely uninsurable

Special Guaranteed Issue Rights:

• Losing employer health coverage
• Moving out of Medicare Advantage service area
• Your Medicare Advantage plan leaves Medicare
• Being misled by your insurance company

NO - This is separate and required.

If you choose Medigap, you MUST also get Medicare Part D or face permanent penalties of 1% per month you went without coverage.

Most seniors pay $30-$80/month for Part D coverage. When calculating total costs, always include this in your budget planning.

Medigap: Standardized Plans A-N (choose the plan that fits your needs)
• Plan G: Most comprehensive (covers everything except Part B deductible)
• Plan N: Lower premiums, small copays for office visits

Final Expense: Customize face amount ($2,000-$25,000) and add riders

Usually 30-day grace period, then policy lapses. Losing coverage means losing guaranteed issue rights - you may not be able to re-enroll due to health changes.

Keep Medigap as long as you have Original Medicare. The final expense component should be kept for life, as replacement becomes more expensive with age.

Medicare Advantage:
• Often $0 monthly premium
• Higher costs when you need care ($8,850+ annual maximum)
• Network restrictions

Medigap + Part D:
• Higher monthly premiums ($150-$400)
• Lower costs when you need care
• No network restrictions

Yes, during Medicare Open Enrollment (Oct 15-Dec 7), BUT Medigap companies can require medical underwriting and may deny coverage based on health.

During Open Enrollment: No health questions, guaranteed issue

Outside Open Enrollment: Medical underwriting required, potential denial based on health conditions

• Medigap premiums may be tax-deductible as medical expenses if you itemize
• Life insurance death benefits are tax-free to beneficiaries
• Medigap benefits are not taxable income

Lower Income: Protects limited savings from medical debt, ensures family isn't burdened

Higher Income: Preserves investment portfolios, complements estate planning, maintains lifestyle in retirement

• Which Medigap plan (A-N) fits my health situation and budget?
• What is this company's history of rate increases in my state?
• Is the life insurance level premium for life?
• Are there waiting periods for pre-existing conditions?
• How does this integrate with my overall retirement plan?

• Can my family afford $15,000+ in unexpected medical and funeral bills?
• Do I want network restrictions or complete provider freedom?
• Am I prepared to pay higher monthly premiums for lower out-of-pocket costs?

• Proverbs 13:22: "A good person leaves an inheritance for their children's children"
• 1 Timothy 5:8: "Anyone who does not provide for their relatives has denied the faith"
• Proverbs 27:14: "A prudent person foresees danger and takes precautions"

This isn't just insurance - it's preparation, love, and responsible stewardship in action.

Lower Income (Under $60K):
• Focus on Plan N + modest final expense ($5,000-$10,000)
• Prioritize community-rated or issue-age-rated pricing
• Budget approximately $150-$220/month total

Higher Income ($100K+):
• Consider Plan G + larger final expense ($15,000-$25,000)
• Integrate with broader estate planning
• Budget approximately $200-$400/month total

The question isn't whether you can afford this coverage - it's whether your family can afford for you NOT to have it. One hospital stay or funeral can cost more than years of premiums.

Your 6-month enrollment window is your best opportunity for guaranteed affordable coverage. Don't wait - your health and your family's financial future depend on acting now.