AIG Direct is a life insurance call center similar to SelectQuote and Matrix Direct.  They are actually an extension to Matrix Direct’s call center who is owned by AIG.  Sounds a bit confusing, let me clarify the relationship.

AIG is one of the biggest insurers in the world.  Don’t get “AIG Direct” confused with the AIG. AIG owns American General Life Insurance who used to market under the AIG Life Insurance name, but when the AIG bailout happened, they changed their marketing to American General. Now that AIG has paid back its bailout money and is in the public’s good graces again, they feel their name is cleared and are now marketing American General Life Insurance under the AIG name again, which is why you see these AIG Direct commercials on tv and hear them on the radio.

AIG Direct is NOT a life insurance company.  They are the marketing arm for American General Life Insurance products and are owned by American General.  If you ever decide to buy life insurance from AIG Direct, you’ll be buying American General Life Insurance products.

It’s a bit confusing for us, I can only imagine explaining this to consumers. So when you see their commercials, now you know the scoop.

There’s nothing wrong with American General Life Insurance.  They’re a great company with a strong financial rating, but life insurance isn’t one size fits all.  Especially if you have health issues.  You need to shop the market when purchasing life insurance.

With all that said, there are better alternatives to AIG Direct for your life insurance needs.  Find an independent life insurance agency who has access to all the life insurance companies and you’ll be able to find better rates.  Especially if you’re looking for term life insurance.

For most people finding the right Medigap insurance is not easy. This is because every individual has unique medical needs. However with a bit of effort and relevant knowledge one should be able to find the right Medigap policy. Here are some of the factors you should consider when shopping for a policy:

Eligibility

This should be at the top of your Medigap insurance checklist. In general you must have Medicare part A and B to be eligible for Medigap. However, you cannot purchase a Medigap policy if you only have a Medicare Advantage Plan. The same is true if you have Medicaid coverage or an employer healthcare plan. It is advisable to purchase Medigap during the open enrollment period which starts immediately when one turns 65 and lasts for 6 months. During this period your insurer cannot subject you to underwriting practices. This means that you can purchase healthcare insurance even if you have a preexisting medical condition.

Illegal Practices

It is illegal for healthcare insurers to use illegal sales tactics to sell Medigap policies. This includes providing misleading information or putting pressure on seniors to buy policies. Some of the high-pressure sales tactics that you should be wary of include threats use of force and the use of unprofessional language. In addition you should be wary of cold calls that end up being Medigap pitches. If you have been a victim you should contact your local State Health Insurance Assistance Program for advice and help regarding your Medigap coverage rights.

Cost

Although all the Medigap plans are standardized, Medigap rates may vary from one insurer to another. According to a study carried out by Weiss Ratings premium rates for Plan A range from a low of $439 to a high of $5776. This shows that you cannot assume that all insurers offer the same rates. It is best to shop around and compare rates from different insurers. You should also compare the cost of Medigap plans at different ages such as 65 and 70. This will give you a good idea of your annual premiums. In addition, factor out-of-pocket expenses in your Medigap plan costs. This includes expenses for purchasing prescription drugs or processing claims.

Reliability

Before purchasing a Medigap plan ensure that your insurer is financially stable. To be on the safe side buy your policy from an insurer with a rating of B+ or better which is a guarantee that the insurer has a solid financial base and is likely to be around for many more years to come. Otherwise you may have to pay hospital bills out-of-pocket if your insurer is not around when you fall sick. At the same time find out if the insurer has a license to operate in your state. You can find this information from your state insurance department.

Your Medical Needs

Finding the right Medigap insurance also involves considering your medical needs. Take time to find out what the insurer excludes or includes in different Medigap plans. Other considerations that you should take into account include long-term care coverage and hospital indemnity.

Choosing the right health coverage should not be a difficult task for you if you follow some easy steps. For starters shop around and compare quotes from different insurers. If you do not have healthcare coverage purchase Medicare. Do not make your decision based on cost alone. Instead purchase your Medigap policy from a financially stable insurer (at least a B+ rating). Also carry out background research to see what other customers are saying about the insurer.

Did you know that the average funeral in the United States today runs between $7,000 and $10,000? Sadly, if you lose someone close to you, on top of the grief and heartache you are already feeling, you may be looking at the added burden of a hefty bill to take care of their funeral and burial.

Many people do have the necessary assets saved up that they can pass along which will cover the costs of their final arrangements, but quite a few people pass away leaving this financial burden to their loved ones and family members.

People do not often think about what goes into a funeral and the associated costs. You have to pay for the person who presides over the service. You will need to rent a location for the service along with any other accommodations, such as costs to have a brief reception afterwards if you choose to. There will be the funeral procession costs. Those hearses are not free.

All of that is before you even get to the casket, cemetery plot, headstone, or cremation costs. It is not cheap to pass away these days.

When I start having this discussion with a client, many will tell me that they cannot afford a life insurance policy. You know what? In many cases they are right. For funeral costs, life insurance is not always the best option anyhow. The typical life policy will not provide an immediate distribution of funds in time to pay for a funeral and burial.

What they often can afford, however, is a special type of life insurance policy known as funeral insurance. It is sometimes also called burial insurance. Funeral insurance provides low monthly premiums, coverage options between $2,500 and $35,000, no requirement for a medical exam, a premium that does not increase, and the policy accumulates a cash value. In addition, this final expense insurance will cover those who have passed beyond the age of qualifying for traditional life insurance. Seniors up to age 85 are eligible to apply.

Funeral insurance is not just a good idea for seniors. I often recommend it for younger families as well. Sometimes a younger family does not have the savings built up to cover the cost if one of the spouses were to unexpectedly pass away. Any family, who would be plunged into a serious financial hardship by the costs associated with laying a loved one to rest, should consider funeral insurance.

While many people think Medicare is complicated it is actually a very simple insurance coverage.  The problem with it is that it does not cover all of your medical expenses.   To fix this problem the federal government worked with private insurance companies to create Medicare supplemental insurance.

Medicare Supplement Plans

There are ten different Medicare supplement plans.  Each one is given a different letter.  The letters skip a few here and there because plans that were once available have been retired and the labeled the new plans with the next letter in the alphabet so as not to create confusion for people who were grandfathered in on the old plans.  The plans themselves cover a varying number of combinations of the nine different coverage gaps that were left by the coverage you get with Medicare Part A and Medicare part B.  The Gaps include: the deductible, coinsurance, first three pints of blood and hospice care from Medicare Part A, The deductible and coinsurance for Medicare Part B, skilled nursing facility care, and expenses for foreign travel emergencies. Which plan you select dictates how many or what combination of these coverage gaps are covered.  Plan A covers only four of the gaps while Plan F covers all nine.

Administration of Medicare Supplement Plans

Each state is responsible for administering the plans for their state.  While most states follow the model described above there are a few that offer unique Medicare supplemental insurance plans so make sure to check with your insurance agent before you go signing up for something that is not exactly as you planned. Your Texas Medicare supplement might be slightly different than your Wisconsin Medicare supplement.

Getting Medicare Supplemental Insurance

Getting a Medicare supplement is pretty easy.  If you sign up between six months before and six months after you turn 65 you will not have to go through medical underwriting.  If you are outside of that window you will have to go through underwriting but most people come through pretty easily.  If you have any questions you should look at asking an independent agent.

It’s a question that people often ask.

Do I have enough life insurance?

There of course is no definitive yes or no answer. It really depends on your goals. Is your life policy to leave something behind for your heirs or is it a necessity because your family could not maintain their current lifestyle if you were to pass away unexpectedly?

Life insurance is more affordable than you might think. Term life insurance is a cheaper option than permanent life insurance. You might try a 20 year term life insurance policy. These are typically cheaper than the 30 year term life policies.

I cannot emphasis the importance of life insurance enough. Unfortunately, it one of those things that people know are important, they know they should have it, but often they let it go unattended. Kind of like a colonoscopy. You know you need it. You know it is an ongoing kind of thing that should be done routinely.

Yet, people frequently do not update their life insurance policy as often as they should.

Life events happen. Our lifestyle changes. Maybe you moved into that bigger house the family wanted. Maybe your oldest child is in their first year of college and you have 2 more that will be attending college over the next decade. Maybe there is a new addition to the family expected.

All of these kind of events should be a trigger for you to sit down with your insurance agent or financial advisor to review your current life insurance policy or policies among other financial concerns.

I found this fun little insurance calculator (yes, it literally is fun) on the State Farm website that should at least get you thinking.

When your life takes a turn, it is a good time to make sure those you some day will leave behind are taken care of.