Obamacare Loophole WEBINAR–On RECORDING
To sign up for a webinar on the Obamacare loophole, click on the following link:
Unknown Obamacare Loophole can Cut Health Premiums by 50% (no joke)
Advisors should get very excited about this newsletter for multiple reasons:
1) Reduce your own cost for health insurance. Advisors can personally use this loophole.
2) When you can reduce a client’s health costs by 50%, you are going to free up thousands of dollars a year that can be used to fund tools like IUL, FIAs, and AUM.
Let me preface all the wonderful stuff you’ll read below by saying that the loophole is really only functionally useful in 26 states. To see the list of states, click on the following link:
Even if you are not in one of the 26 states, you may have clients in those states so learning about and helping clients with this loophole is still worth learning about.
What’s the loophole?
Short-Term Limited-Duration Insurance (STLDI) plans which are exempt from ACA rules. This loophole used to allow STLDI plans with coverage lasting only three months. However, recent STLDI plans coverage can now last up to three years.
Three-month coverage is not helpful because if you get a major health issue, your coverage will be dropped and you could go bare. However, if you have, 1, 2, 3-year coverage, if you get a major health issue, you can jump to the “guaranteed” coverage under the ACA (Obamacare).
High deductible plans-most STLDI plans are high deductible plans. While that usually only makes sense for those who are really healthy, when you add gap insurance, it takes away the fear of loss with high deductible plans.
Let’s look at a few examples starting with me!
Male, age 49 (super healthy (knock on wood)) using an ACA/Obamacare plan.
Cost = $465 a month with a $6,000 deductible (max out of pocket).
STLDI plan with Gap Coverage
Cost = $280 a month with a $5,000 deductible (max out of pocket).
However, when I add the $30 a month gap insurance*, all expenses except a $250 deductible will be covered up to $5,000.
*Gap coverage can only be used twice a year so you’ll pay for miscellaneous costs typically out of pocket.
Tweaking the STLDI plan-if I increase the deductible to $10,000 and add gap insurance to cover the $10,000, my total monthly cost goes down to $255 a month.
If I increase the deductible to $25,000 with gap insurance to cover $10,000 of the deductible, the total monthly cost goes down to $89 a month.
I’m a winner no matter which one I choose. I either save $185 a month (and cover my deductible with gap insurance which could save me almost $6,000 more in any given year), $210 a month, or $376 a month with the most aggressive plan (I’m leaning towards the most aggressive option).
Example 2-Family ages, 37, 38, 8, 6, 4, 4.
ACA silver plan with $5,950/$14,300 deductible (individual/family) with NO gap insurance
Cost = $1,812 a month
STLDI plan with Gap Coverage with a $5,000/$15,000 deductible (individual/family)
Cost = $674 a month (this includes $10,000 gap insurance to cover the deductible).
Difference = $1,138 a month or $13,656 a year.
If this doesn’t get your attention, it should.
Go get new clients NOW before clients enroll in an ACA plan for 2020!
This is a great client gathering tool.
This is a great tool to help clients find money to fund college planning or their own retirement.
Think of the referrals! Are you more likely to get referrals from this topic than from selling a client a life or annuity policy? This all day long!
This is not a joke. It’s real and advisors can take advantage of it to help clients by working with a health insurance expert (doing so will help you onboard more clients who you can help use their health insurance savings to grow wealth for retirement).
If you want to be referred to a health expert who can help you or your clients (one who knows how to use STLDI plans), email me at firstname.lastname@example.org.
Northwestern Mutual Admits to Material Conflicts of Interest
If you didn’t see last week’s stunning newsletter about NWM’s 8-page piece documenting the massive conflict of interest problems NWM advisors have, click on the following link:
Roccy DeFrancesco, JD
Strategic Marketing Partners