If you find yourself losing your healthcare plan for any number of reasons, there is a certain type of health insurance policy you need to consider. Sometimes you are forced into an early retirement, and this results in the loss of your healthcare plan. You know when you turn 65, you will be eligible for Medicare. However, from now until the time you are eligible, it is possible that you could become very sick. This can mean selling off much of the wealth you have accumulated over the years.

A quick introduction to a catastrophic policy
This type of healthcare plan protects you in case of a serious illness or any medical bill that can become very large due to an extended stay in the hospital. It may not even be an illness. It could just as easily be an accident that sends you to the hospital. However, with medical bills being so high today, it doesn’t take long for an inpatient bill to go sky high. This is the importance of having this type of policy: protecting your assets.

How it works
At the root of this plan is a high deductible. Basically, you pay out of pocket costs for your healthcare until it reaches the limit of your deductible. At this point, many of these plans will begin to pay a certain percentage of the bill, such as 80 percent. After this, there is a second threshold in which the insurance will pay the full medical bill. Again, the point of this policy is to protect your assets. This is where the plan gets its name. It is only there to protect you from medical bills that can send you into bankruptcy.

What makes this so attractive to those approaching retirement is that Medicare is closely approaching. There are very few health plans that can compare to Medicare, and this is why it is so popular, but you do need to be 65 to apply for benefits. If you find yourself without health coverage a few years prior to this and you also have assets to protect, then you should get a few quotes for this type of policy from a health insurance lodi ca company.

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