Cancer diagnosis may complicate search for life insurance

Dear Reader: There is no such thing as a foolish question, though there are probably many foolish answers. The likelihood is, you will have a great deal of difficulty finding a life-insurance policy that makes sense. Some companies will write policies for just about any risk; however, the premiums can seldom be justified. Unfortunately, when we need insurance is the time we can’t get it. There are occasions when one can get creditor insurance where no medical questions are asked, such as financing the cost of an automobile. Whether a purchase of this kind and the parallel insurance makes any sense is another question. Only you can answer that. I do wish you well and a long life.

Searching for acceptance

Dear Bruce: My wife has made numerous visits to the hospital in the past two years. We go to a hospital that accepts our insurance. We have no complaint regarding the quality of care she has received while in the hospital; however, some of the providers of services, primarily radiologists and pathologists, do not accept our insurance. In those cases, our insurance has been paying 100 percent of their major billing, but it frequently rejects a second billing item as a duplicate charge.

The result is that if we do not pay these items, they will wind up in collection. When we ask the hospital to use only providers that accept our insurance, it ignores our request. In other words, whoever provides a service is not up to the hospital, and the hospital does not concern itself with a person’s insurance coverage.

As far as I am concerned, there is at least a level of dishonesty. This seems to be a bait-and-switch operation. When these same services are provided outside the hospital, we never have a problem with getting our insurance accepted, or with duplicate charges. This year alone, these excess charges are more than $700. Do you have any suggestions about what to do about this? – D.D., via e-mail

Dear D.D.: Often, caregivers, physicians, surgeons, etc., have confidence in other professionals, radiologists, etc., who do not accept certain insurance. It may be difficult, if not impossible, to dovetail these two contradictions. It is your responsibility to find providers who will accept your insurance or come to some agreement with your insurance company as to what percentage they will pay and how the difference will be met. Often, you must pay the charges upfront. They will help you file for claims, but they will not take responsibility for collecting them. It’s a difficult system, but I don’t know any way around it.

Former employer may hold answer

Dear Bruce: I’m 61 years old, and I’m on worker’s compensation disability for back surgery. I was recently laid off after 22 years. My question is, with $372,000 in my 401(k) and $60,000 in an individual retirement, what is the best, most cost-effective method to withdraw income from these accounts? Any assistance or guidance will be appreciated. – B.T., via e-mail

Dear B.T.: With regard to your 401(k), contact the human-resources department at your former company, and they can explain the way the account has been set up and the method of withdrawal. It would appear your taxable income is negligible, so there are no tax considerations with regard to the withdrawals. The more serious problem is working out a budget where you will have funds to draw upon if and when the worker’s compensation or other benefits cease. You might consider talking to a fee-based investment adviser who can help lay out a long-term plan.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.[[In-content Ad]]