Excess Major Medical insurance is not well known and is certainly different than your typical run-of-the-mill major medical – but boy will you like it when you need it! And, it is relatively inexpensive at about one quarter to one fifth the cost of major medical insurance.
The American Bar Endowment commissioned a white paper written by AIG subsidiary American General Insurance Group, which covers the basics of Excess Major Medical insurance coverage. Take a moment to review – it will be five minutes well spent.
Excess Major Medical works similar to your Umbrella Liability coverage you likely have as a homeowner. After you exceed the limits of your primary major medical policy, your Excess Major Medical policy begins coverage. Depending on the Excess Major Medical plan you purchase, you can go out of network for any treatments you may need and be fully covered for usual and customary charges. Maximums on an Excess Major Medical plan typically cover $1o million of expenses over and above the $2 million max on your regular major medical policy.
What does this mean? You will have no worries about charges for complicated and expensive treatments – you will be covered for the vast majority of charges up to $10 million dollars, in most cases. And the charges will add up. A gentleman that I am close to remarked to me after completing a few forms as we sat together, “well, I just completed the claim forms for one month’s worth of prescriptions. $93,000!” Cancer treatments, among others, are very costly – and getting more so every day.
With 1 of every 2 men to be diagnosed with cancer during their lifetime and 1 of every 3 women, Excess Major Medical coverage will keep you and your family financially secure when you need to expend all of your resources on your health. Your major medical policy sounds good with a $2 million lifetime maximum, but in reality, you will blow through that amount in a matter of months in the event of serious illness.
Excess Major Medical is an obscure type of insurance. Chances are that you’ll need it. Learn about it. Ask your broker.