Life and Health Insurance

Health Insurance


Health care is changing rapidly. Twenty-five years ago, nearly all Americans had indemnity insurance coverage. A person with indemnity insurance could go to any doctor, hospital or other provider, and the insurance company and the patient would each pay part of the bill.



Today, more than half of all Americans who have insurance are enrolled in some kind of managed care plan, an organized way of both providing services and paying for them. The initial impetus for managed care was a desire to contain costs. Increases in health care costs had far outpaced increases in inflation throughout the 80's and into the 90's. Over time, however, the distinctions between managed care and indemnity plans have begun to blur as health plans have been forced to compete on both cost and quality-of-care considerations.




Life Insurance



Life insurance provides cash for your family after you die. The money your dependents will receive - the "death benefit" - is an important financial resource. It can help pay the mortgage, run the household and ensure that your dependents aren't burdened with debt. The proceeds from a policy could mean that they won't have to sell assets to pay outstanding bills or taxes. Importantly, there is no federal income tax on the benefits.