Here are some common automobile insurance frequently asked questions. Just click on the question you are interested in to find the answer. Do you have another question that is not answered here? You can post it on the forum or email me directly!
What are Car Financial Responsibility Laws?This is the state law that says you have to prove that you are financially able to pay for anything you may be responsible for while driving your car.
zSB(3,3)
What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car?That depends on the state you live in. Most states have stringent laws about having car insurance and if you don't choose to follow these laws by not purchasing car insurance, there can be tough penalties and fines.
Sunday, September 13, 2009
Your First Insurance Policy for Your Car
Getting your first insurance policy for your car may not be a priority, but it should be. Your first car insurance policy protects one of your first investments, your car. But buying your first insurance policy for your car can be complicated and often new car insurance shoppers fail to compare car insurance rates and in turn fail to reap the financial benefits of finding the best and affordable car insurance available to them.
Shopping for Your First Insurance Policy: Who Needs Car Insurance?
The question asked by most people shopping for their first insurance policy is who needs an insurance policy and why? The answer is simple: it’s the law. The DMV (Department of Motor Vehicles) requires that you take financial responsibility for owning and operating a car in all fifty states. Car insurance protects you when you cause property damage or bodily injury to someone else when driving your car. If you are caught driving without car insurance you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have car insurance, your license may be suspended whether you are at fault or not.
Understand Your First Insurance Policy
Now that you know you know how important it is to get your first insurance policy for your car, you will want to understand how car insurance works before you start deciding on which company you will choose for your first insurance policy. The best place to start is Auto Insurance 101. This article will take you step by step in understanding car insurance. Once you understand how car insurance works and have an idea of what type of car insurance you need, you are on your way to the next step of finding the best and most affordable car insurance for you.
Just Because it is Your First Insurance Policy, that Does Not Mean You Have to Pay Too Much
This is often where first insurance policy buyers get sucked into paying too much for their car insurance. Don't just assume since you are purchasing your first insurance policy that you will have to pay extremely high premiums. Yes, you will pay higher premiums than people who have had car insurance for some time, but that does not mean you can not find affordable car insurance. You ask then how does one find the best and most affordable car insurance? Here is a checklist of ways to find affordable car insurance and the best first insurance for you:
Tips for How to Find the Best Affordable First Insurance
1. Compare first insurance rates online and locally.
2. Know what you need and how much of a first insurance policy so you don't buy more than you want.
3. Tell the car insurance company that you are comparing X amount of companies so they know that you are looking for the best deal.
4. When shopping online or locally for your first insurance policy, make sure you know what car insurance discounts you may be eligible for. If you are unsure, ask the insurance agent of all their discounts.
5. If you are choosing full coverage car insurance, remember the higher your deductible, the cheaper your car insurance premium will be.
6. If you feel an insurance company or agent is treating you unfairly or breaking the law, know how to file a complaint.
Shopping for Your First Insurance Policy: Who Needs Car Insurance?
The question asked by most people shopping for their first insurance policy is who needs an insurance policy and why? The answer is simple: it’s the law. The DMV (Department of Motor Vehicles) requires that you take financial responsibility for owning and operating a car in all fifty states. Car insurance protects you when you cause property damage or bodily injury to someone else when driving your car. If you are caught driving without car insurance you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have car insurance, your license may be suspended whether you are at fault or not.
Understand Your First Insurance Policy
Now that you know you know how important it is to get your first insurance policy for your car, you will want to understand how car insurance works before you start deciding on which company you will choose for your first insurance policy. The best place to start is Auto Insurance 101. This article will take you step by step in understanding car insurance. Once you understand how car insurance works and have an idea of what type of car insurance you need, you are on your way to the next step of finding the best and most affordable car insurance for you.
Just Because it is Your First Insurance Policy, that Does Not Mean You Have to Pay Too Much
This is often where first insurance policy buyers get sucked into paying too much for their car insurance. Don't just assume since you are purchasing your first insurance policy that you will have to pay extremely high premiums. Yes, you will pay higher premiums than people who have had car insurance for some time, but that does not mean you can not find affordable car insurance. You ask then how does one find the best and most affordable car insurance? Here is a checklist of ways to find affordable car insurance and the best first insurance for you:
Tips for How to Find the Best Affordable First Insurance
1. Compare first insurance rates online and locally.
2. Know what you need and how much of a first insurance policy so you don't buy more than you want.
3. Tell the car insurance company that you are comparing X amount of companies so they know that you are looking for the best deal.
4. When shopping online or locally for your first insurance policy, make sure you know what car insurance discounts you may be eligible for. If you are unsure, ask the insurance agent of all their discounts.
5. If you are choosing full coverage car insurance, remember the higher your deductible, the cheaper your car insurance premium will be.
6. If you feel an insurance company or agent is treating you unfairly or breaking the law, know how to file a complaint.
Auto Insurance 101
Why do you need a five step guide to auto insurance shopping? Because, if you want to get the best coverage for your buck, shopping smart for your car insurance is the way to do it. Also, car insurance is one of the top ways to chisel down your insurance budget if you know how to do it right. Let's start with deciding what car insurance coverage you need:
1. What Kind of Coverage Do You Need?: Before calling the insurance company and getting your insurance quote, take the time to decide what kind of coverage you need. In every state you have to have at least liability coverage. But, you need to decide if you would like to add these additional car insurance coverages:
Comprehensive Collision
If you choose comprehensive and collision coverages, you will need to decide what deductible amounts you would like. And, it is important to know what policy limits your state requires so you can decide what policy limits you would like. Other coverages you may also be interested in:
Emergency Roadside Service Gap Insurance
2. Choosing an Insurance Company: When you are ready to select your insurance provider, besides just looking for the best car insurance premium, you will want to take some time to research what insurance company you want to go with by learning about their financial strength. Another important aspect of choosing your insurance provider is knowing if and how they will use your credit score to determine your rate. Take the time to research different companies and then make a list of the providers you are interested in contacting for an insurance quote. Here are some tools to help you research your car insurance company:
Car Insurance Company Report Card Your Credit Score and the Insurance Company
3. Making the Call: When you have your list of selected car insurance providers you are ready to start calling around to search for the one who can give you the best deal. It is important to have certain paperwork handy, such as your drivers license number. In addition, having a list of discounts you may be entitled to can save you some extra money. Here are some resources to help you when you are ready to make the call:
Car Insurance Savings Checklist Online Car Insurance Company Quote Worksheet
4. Understanding Your Car Insurance Policy: Now that you have your car insurance policy, do you understand what it means? Did you get what you paid for? It is important to know how your car insurance policy works and how it can work for you. Here is some help in understanding your policy:
Getting What You Paid For eCourse: How to Know if Your Insurance Contract is Legal Car Insurance Frequently Asked Questions
5. Filing a Car Insurance Claim: Let's hope you never have to file a car insurance claim, but if you do it is important to learn some things before the accident comes. Learning what things you need to do when you have an auto accident can help the claims process go much smoother. Here are some claim filing tools you will want to learn before you file a car insurance claim:
1. What Kind of Coverage Do You Need?: Before calling the insurance company and getting your insurance quote, take the time to decide what kind of coverage you need. In every state you have to have at least liability coverage. But, you need to decide if you would like to add these additional car insurance coverages:
Comprehensive Collision
If you choose comprehensive and collision coverages, you will need to decide what deductible amounts you would like. And, it is important to know what policy limits your state requires so you can decide what policy limits you would like. Other coverages you may also be interested in:
Emergency Roadside Service Gap Insurance
2. Choosing an Insurance Company: When you are ready to select your insurance provider, besides just looking for the best car insurance premium, you will want to take some time to research what insurance company you want to go with by learning about their financial strength. Another important aspect of choosing your insurance provider is knowing if and how they will use your credit score to determine your rate. Take the time to research different companies and then make a list of the providers you are interested in contacting for an insurance quote. Here are some tools to help you research your car insurance company:
Car Insurance Company Report Card Your Credit Score and the Insurance Company
3. Making the Call: When you have your list of selected car insurance providers you are ready to start calling around to search for the one who can give you the best deal. It is important to have certain paperwork handy, such as your drivers license number. In addition, having a list of discounts you may be entitled to can save you some extra money. Here are some resources to help you when you are ready to make the call:
Car Insurance Savings Checklist Online Car Insurance Company Quote Worksheet
4. Understanding Your Car Insurance Policy: Now that you have your car insurance policy, do you understand what it means? Did you get what you paid for? It is important to know how your car insurance policy works and how it can work for you. Here is some help in understanding your policy:
Getting What You Paid For eCourse: How to Know if Your Insurance Contract is Legal Car Insurance Frequently Asked Questions
5. Filing a Car Insurance Claim: Let's hope you never have to file a car insurance claim, but if you do it is important to learn some things before the accident comes. Learning what things you need to do when you have an auto accident can help the claims process go much smoother. Here are some claim filing tools you will want to learn before you file a car insurance claim:
Does Your Insurance Company Offer Gap Insurance?
You are buying a new or newer vehicle and you know you need gap insurance. The dealer has the paperwork for you to sign and with the stroke of a pen you will be off with your new car and your new gap insurance policy. Or, you bought a new car a few months ago and decided at the time to not purchase gap insurance but now realize that you want it. So, you go online to get an online gap insurance quote. If you have been in either of these situations and decided to follow through with your gap insurance purchase, then you may possibly be paying twice for gap insurance.
Who Wants to Pay Twice for Gap Insurance?
Pay twice for gap insurance? Who wants to do that? No, you don't get double the coverage but only double the payment. How could that happen? Well, it happens when you already have gap insurance coverage through your insurance company and then buy a gap insurance policy either because the dealer has pressured you into it or you just did not realize you already had the insurance.
The Lesson: Always Call Your Insurance Agent First
So, the lesson here is to always check with your insurance company first. You can do this by simply giving them a call or taking a look at your current insurance policy. If you first take a look at your current insurance policy and either think or don't think you have the coverage listed, I urge you to still call your insurance agent. Although insurance policies should be fairly understandable to most consumers, they usually are not and you may assume you have a coverage or miss a coverage that you think you have.
Gap Insurance Look-Alike
Another reason to first call your insurance agent to ask about gap insurance is that insurance companies often offer a form of gap insurance but, it sometimes works a little different than traditional gap insurance and is often called by another name. These coverages that insurance companies offer that are similar to gap insurance are sometimes referred to as "automotive loss protection", "loan payoff coverage", "lease payoff coverage" and "new car replacement." Whatever your insurance company decides to call it, you need to understand how it works and since every insurance company's gap insurance coverage may work a little different, again, you will want to contact your insurance agent to see how their gap insurance coverage will work for you.
Who Wants to Pay Twice for Gap Insurance?
Pay twice for gap insurance? Who wants to do that? No, you don't get double the coverage but only double the payment. How could that happen? Well, it happens when you already have gap insurance coverage through your insurance company and then buy a gap insurance policy either because the dealer has pressured you into it or you just did not realize you already had the insurance.
The Lesson: Always Call Your Insurance Agent First
So, the lesson here is to always check with your insurance company first. You can do this by simply giving them a call or taking a look at your current insurance policy. If you first take a look at your current insurance policy and either think or don't think you have the coverage listed, I urge you to still call your insurance agent. Although insurance policies should be fairly understandable to most consumers, they usually are not and you may assume you have a coverage or miss a coverage that you think you have.
Gap Insurance Look-Alike
Another reason to first call your insurance agent to ask about gap insurance is that insurance companies often offer a form of gap insurance but, it sometimes works a little different than traditional gap insurance and is often called by another name. These coverages that insurance companies offer that are similar to gap insurance are sometimes referred to as "automotive loss protection", "loan payoff coverage", "lease payoff coverage" and "new car replacement." Whatever your insurance company decides to call it, you need to understand how it works and since every insurance company's gap insurance coverage may work a little different, again, you will want to contact your insurance agent to see how their gap insurance coverage will work for you.
New Car? Make Sure You Have Gap Insurance
Just bought a new car? What if an accident occurred soon after taking your brand new ride off the lot? You have full coverage insurance, right? So, you're covered... or maybe not.
When you drive your new car off the lot the value of your vehicle plummets, sometimes as much as 20%-30%. Say for instance you pay $25,000 for your new vehicle and have an accident a month later. You probably have only made at the most one payment and if you did not put any money down your loan amount is still close to the $25,000 purchase price. Unfortunately, even with full coverage, which includes comprehensive and collision, you will only receive the market value of your vehicle which could be as much as 20%-30% lower than the purchase price. That means you may be stuck paying that 20%-30%. On a $25,000 car, just a 20% depreciation would be $5,000! That amount could be more if you financed your taxes and license into your loan.
GAP stands for Guauanteed Auto Protection. Most people just use the term GAP to represent the gap in coverage between how much one owes on a car and how much the car is worth. GAP insurance is necessary in almost all cases and is reltivily low cost. GAP insurance is a must if you are buying or leasing a new vehicle and should not be something that you decided to skip to cut costs.
Fortunately, you may already have GAP insurance with your current insurer, which would insure you for the difference between your loan amount on the car and the actual market value of the car. But, not all insurance companies offer GAP insurance.
In some cases GAP insurance is not available from your insurance company. So, what do you do? Of course the dealership will probably be able to offer you GAP insurance. If GAP insurance is not available from the dealership then you can purchase it from an online GAP insurance company. Just do an online search for GAP insurance and you will find many companies available.
When you drive your new car off the lot the value of your vehicle plummets, sometimes as much as 20%-30%. Say for instance you pay $25,000 for your new vehicle and have an accident a month later. You probably have only made at the most one payment and if you did not put any money down your loan amount is still close to the $25,000 purchase price. Unfortunately, even with full coverage, which includes comprehensive and collision, you will only receive the market value of your vehicle which could be as much as 20%-30% lower than the purchase price. That means you may be stuck paying that 20%-30%. On a $25,000 car, just a 20% depreciation would be $5,000! That amount could be more if you financed your taxes and license into your loan.
GAP stands for Guauanteed Auto Protection. Most people just use the term GAP to represent the gap in coverage between how much one owes on a car and how much the car is worth. GAP insurance is necessary in almost all cases and is reltivily low cost. GAP insurance is a must if you are buying or leasing a new vehicle and should not be something that you decided to skip to cut costs.
Fortunately, you may already have GAP insurance with your current insurer, which would insure you for the difference between your loan amount on the car and the actual market value of the car. But, not all insurance companies offer GAP insurance.
In some cases GAP insurance is not available from your insurance company. So, what do you do? Of course the dealership will probably be able to offer you GAP insurance. If GAP insurance is not available from the dealership then you can purchase it from an online GAP insurance company. Just do an online search for GAP insurance and you will find many companies available.
Shopping for Long Term Care Insurance
In reality, almost everyone needs long term care insurance. Of course, not everyone will need long term care but current statistics estimate that as much as 50% of Americans may need long term care sometime in their lifetime. If you become one of those people who need long term care, will you be able to afford up to $75,000 a year for a nursing home facility? Most people, of course, could not.
4 Things You Will Want to Have in a Long Term Care Insurance Policy
1. Inflation Protection: Get a policy that raises your long term care benefit amount automatically... the cost of a nursing home today will be much higher 20-30 years from now.
2. Variable Coverage: Make sure your policy includes coverage for not only nursing homes but home health aids, adult day care providers, and assisted living facilities so you will have a choice of care.
3. Independent Care Management: If you have a claim, the insurance company will send a representative to determine your benefit needs... make sure your policy gives you the option to have an independent licensed health care provider to manage your care and not someone working for the insurance company.
4. 70% Minimum Daily Benefit: If you need services, don't just choose the cheapest daily benefit amount but find out what is the average daily cost of nursing homes in your area and request at least 70% of that. Also, make sure this amount is adjusted annually to reflect 70% of the current yearly amount.
Estimating Your Long Term Care Projected Costs and Insurance Premiums: Long term care costs can vary depending on what state you live in and the nursing facility or home care staff you choose. It is good to know what long term care facilities are charging in your area so you can get an idea of the benefit amount you would like for your long term care insurance policy. Genworth Financial long term care website offers an interactive map where you can scroll over your state to get an idea of current annual nursing home and assisted living costs. You can also simply pick up the phone book and call local nursing home facilities and ask them what their annual costs are.
When it comes to long term care premiums, that can vary greatly depending on the type of policy you choose, the age that you choose to start your policy, and the benefit amount. Of course the younger and healthier you are when you start your policy then the lower your premiums will be. Also, the lower your benefit amount is, then the lower your premiums will be. So, the best time to check into long term care insurance is now, before you get any older! Although it is best to try not to cut corners when choosing your long term care benefits, there are additional ways to reduce your long term care premium costs.
Where and How to Purchase Long Term Care Insurance: There are many places that you can purchase long term care insurance. Your employer may offer group long term care insurance. You can also purchase long term care insurance from individual insurance companies or agents. If you or a family member has or does work for the federal or state government then you may be able to purchase a long term care insurance policy from those sources. Also, another place to look for long term care insurance policies are associations or membership groups.
When you are ready to select your long term care insurance provider, besides just looking for the best insurance premium, you will want to take some time to research what insurance company or agent you want to choose by learning about the insurance agent or company's financial strength.
Another important aspect of choosing your insurance agent or company is knowing if and how they will use your credit score to determine your insurance rate. Take the time to research different companies and then make a list of the providers you are interested in contacting for an insurance quote.
Answers to 4 Important Disadvantages and Misconceptions about Long Term Care Insurance
1. Group Long Term Care Insurance May be a Disadvantage for Younger Persons: If you decide to look at your employer's long term care insurance plan and you are young and in good health, make sure you get some quotes from other individual long term care insurance companies or agents. This is because when insurance is purchased for a group, the risk is spread among the group and then an average premium is set according to the group. That means everyone is sharing in the cost. So, in reality, the older people in the group are getting a good deal while the young people, who are paying the same premiums as the older people, may be paying more than they would if they chose a policy on their own independently.
2. You Won't Get Paid Right Away: Know what your long term care policy's elimination period is. The elimination period is the amount of days you have to pay before your policy will pay, like a deductible. Sometimes this can be as long as 90 days, so it can really add up. Also keep in mind that a longer elimination period equals a lower premium, but before going for the cheaper premium, make sure you can afford to pay for all those days if needed.
3. Long Term Care Insurance Will Not Take the Place of Life Insurance, Health Insurance or Disability Insurance: Long term care insurance will provide help with paying for assistance in dealing with a disability or long term medical condition. You will still need to keep your life, health, and disability insurance.
4. Long Term Care Insurance is For Any Age: If you acquire a disability or long term illness at any age, your long term care insurance policy will be available to you. There is no upper age in which it kicks in.
4 Things You Will Want to Have in a Long Term Care Insurance Policy
1. Inflation Protection: Get a policy that raises your long term care benefit amount automatically... the cost of a nursing home today will be much higher 20-30 years from now.
2. Variable Coverage: Make sure your policy includes coverage for not only nursing homes but home health aids, adult day care providers, and assisted living facilities so you will have a choice of care.
3. Independent Care Management: If you have a claim, the insurance company will send a representative to determine your benefit needs... make sure your policy gives you the option to have an independent licensed health care provider to manage your care and not someone working for the insurance company.
4. 70% Minimum Daily Benefit: If you need services, don't just choose the cheapest daily benefit amount but find out what is the average daily cost of nursing homes in your area and request at least 70% of that. Also, make sure this amount is adjusted annually to reflect 70% of the current yearly amount.
Estimating Your Long Term Care Projected Costs and Insurance Premiums: Long term care costs can vary depending on what state you live in and the nursing facility or home care staff you choose. It is good to know what long term care facilities are charging in your area so you can get an idea of the benefit amount you would like for your long term care insurance policy. Genworth Financial long term care website offers an interactive map where you can scroll over your state to get an idea of current annual nursing home and assisted living costs. You can also simply pick up the phone book and call local nursing home facilities and ask them what their annual costs are.
When it comes to long term care premiums, that can vary greatly depending on the type of policy you choose, the age that you choose to start your policy, and the benefit amount. Of course the younger and healthier you are when you start your policy then the lower your premiums will be. Also, the lower your benefit amount is, then the lower your premiums will be. So, the best time to check into long term care insurance is now, before you get any older! Although it is best to try not to cut corners when choosing your long term care benefits, there are additional ways to reduce your long term care premium costs.
Where and How to Purchase Long Term Care Insurance: There are many places that you can purchase long term care insurance. Your employer may offer group long term care insurance. You can also purchase long term care insurance from individual insurance companies or agents. If you or a family member has or does work for the federal or state government then you may be able to purchase a long term care insurance policy from those sources. Also, another place to look for long term care insurance policies are associations or membership groups.
When you are ready to select your long term care insurance provider, besides just looking for the best insurance premium, you will want to take some time to research what insurance company or agent you want to choose by learning about the insurance agent or company's financial strength.
Another important aspect of choosing your insurance agent or company is knowing if and how they will use your credit score to determine your insurance rate. Take the time to research different companies and then make a list of the providers you are interested in contacting for an insurance quote.
Answers to 4 Important Disadvantages and Misconceptions about Long Term Care Insurance
1. Group Long Term Care Insurance May be a Disadvantage for Younger Persons: If you decide to look at your employer's long term care insurance plan and you are young and in good health, make sure you get some quotes from other individual long term care insurance companies or agents. This is because when insurance is purchased for a group, the risk is spread among the group and then an average premium is set according to the group. That means everyone is sharing in the cost. So, in reality, the older people in the group are getting a good deal while the young people, who are paying the same premiums as the older people, may be paying more than they would if they chose a policy on their own independently.
2. You Won't Get Paid Right Away: Know what your long term care policy's elimination period is. The elimination period is the amount of days you have to pay before your policy will pay, like a deductible. Sometimes this can be as long as 90 days, so it can really add up. Also keep in mind that a longer elimination period equals a lower premium, but before going for the cheaper premium, make sure you can afford to pay for all those days if needed.
3. Long Term Care Insurance Will Not Take the Place of Life Insurance, Health Insurance or Disability Insurance: Long term care insurance will provide help with paying for assistance in dealing with a disability or long term medical condition. You will still need to keep your life, health, and disability insurance.
4. Long Term Care Insurance is For Any Age: If you acquire a disability or long term illness at any age, your long term care insurance policy will be available to you. There is no upper age in which it kicks in.
When To Continue COBRA Insurance Coverage
Important "COBRA Stimulus Bill" Update: The American Recovery and Reinvestment Act, signed into law by President Obama on February 17, 2009, has given some the ability to enroll or re-enroll into COBRA and pay only 35% of their original premiums. It is important that anyone who is considering COBRA insurance learn about the The Stimulus Bill and COBRA Benefits.
COBRA's History
The Consolidated Omnibus Budget Reconciliation Act of 1985, otherwise known as COBRA, continues to be a very helpful law to many. This law makes it possible for most individuals to continue their health care coverage from their employer for up to 18 months if for some reason the individual had a change in employment status such as a layoff, reduced work hours, or a termination of employment by the employee or employer. This continuation of COBRA insurance coverage is available to the individual, their spouses, and dependants.
Understanding What COBRA Is
COBRA insurance coverage lets one continue their employers’ health insurance plan, which can be a real benefit to many, especially when one could have a hard time qualifying for private insurance (unlike the insurance provided by one's employer, one must usually have to qualify for private health insurance plans and their premiums would usually be based mostly on their health status) or would have a gap in health insurance coverage for other reasons. But, in order for one to continue their employers’ health insurance coverage through COBRA, they must pay the complete monthly insurance premium instead of the discounted premium current employees get. That can add up to a costly monthly premium.
More Access to Alternatives to COBRA
Now, with the help of the internet, most people have access to many health insurance companies. With this larger access comes more choices and of course, more choices gives consumers the advantage of comparison shopping. Although continuing COBRA insurance coverage through one's employer is a good option for many, it may not be the best choice for everyone. Depending on one's health status, finding private insurance to fill the gap may provide adequate coverage without the costly price tag of COBRA insurance.
Who Then Should Continue COBRA Insurance Coverages from Their Employer?
1. People who have health problems that they are currently being treated for or pre-existing health conditions, should strongly consider the COBRA insurance option from their employer. It is very difficult and costly to get private health insurance with current health problems or pre-existing conditions and if one did find it, those conditions would either be excluded or the premium would be very costly.
2. Also, persons who know that their next employer will not have health insurance available should also consider continuing the COBRA insurance coverage, at least until they can provide themselves with another health insurance option. This is also important because it is much better to not have any gaps in health insurance coverage when shopping for new coverage as one is less risky to the new health insurance company when they have had continuous health insurance coverage.
For Some, Shopping for a COBRA Alternative May be Better
On the other hand, if one is a young, healthy individual with no previous serious health problems, it may pay to shop around a little to find some type of temporary health insurance coverage instead of choosing the COBRA insurance option from their employer. But again, it is important even for these individuals to avoid any gaps in their health insurance coverage in order to obtain the best rates for their new policy. 10 Key Considerations When Comparing Health Care Plans
COBRA's History
The Consolidated Omnibus Budget Reconciliation Act of 1985, otherwise known as COBRA, continues to be a very helpful law to many. This law makes it possible for most individuals to continue their health care coverage from their employer for up to 18 months if for some reason the individual had a change in employment status such as a layoff, reduced work hours, or a termination of employment by the employee or employer. This continuation of COBRA insurance coverage is available to the individual, their spouses, and dependants.
Understanding What COBRA Is
COBRA insurance coverage lets one continue their employers’ health insurance plan, which can be a real benefit to many, especially when one could have a hard time qualifying for private insurance (unlike the insurance provided by one's employer, one must usually have to qualify for private health insurance plans and their premiums would usually be based mostly on their health status) or would have a gap in health insurance coverage for other reasons. But, in order for one to continue their employers’ health insurance coverage through COBRA, they must pay the complete monthly insurance premium instead of the discounted premium current employees get. That can add up to a costly monthly premium.
More Access to Alternatives to COBRA
Now, with the help of the internet, most people have access to many health insurance companies. With this larger access comes more choices and of course, more choices gives consumers the advantage of comparison shopping. Although continuing COBRA insurance coverage through one's employer is a good option for many, it may not be the best choice for everyone. Depending on one's health status, finding private insurance to fill the gap may provide adequate coverage without the costly price tag of COBRA insurance.
Who Then Should Continue COBRA Insurance Coverages from Their Employer?
1. People who have health problems that they are currently being treated for or pre-existing health conditions, should strongly consider the COBRA insurance option from their employer. It is very difficult and costly to get private health insurance with current health problems or pre-existing conditions and if one did find it, those conditions would either be excluded or the premium would be very costly.
2. Also, persons who know that their next employer will not have health insurance available should also consider continuing the COBRA insurance coverage, at least until they can provide themselves with another health insurance option. This is also important because it is much better to not have any gaps in health insurance coverage when shopping for new coverage as one is less risky to the new health insurance company when they have had continuous health insurance coverage.
For Some, Shopping for a COBRA Alternative May be Better
On the other hand, if one is a young, healthy individual with no previous serious health problems, it may pay to shop around a little to find some type of temporary health insurance coverage instead of choosing the COBRA insurance option from their employer. But again, it is important even for these individuals to avoid any gaps in their health insurance coverage in order to obtain the best rates for their new policy. 10 Key Considerations When Comparing Health Care Plans
The Quick Financial Crisis Financial Adviser
Who out there needs a financial adviser? There are thousands of financial crisis tips and secrets out there to scare away anyone just trying to find a basic debt cure. Especially in a financial crisis, finding a debt cure along with having the right insurance protection will assure anyone long-term financial peace. Follow The Quick Financial Crisis Financial Adviser: A 5 Step Debt Cure below to simplify your household finances:
1. Protect Your Assets: Step one in your financial crisis debt cure is to make sure you have the basics of insurance which includes homeowners/renter's (including flood insurance), auto, health, life, and umbrella. After you have followed the remaining steps below then look into adding long term care and disability insurance. It only takes one disaster to disable your financial situation so don't skimp on the insurance.
2. Of Course, Your Quick 5 Step Financial Adviser Says, "Get Rid of Your Debt!": It is hard to save in a financial crisis but when you can save, before saving for anything else, college or retirement, get yourself out of debt. Once you are out of debt you can catch up fast on your other savings plans with all the extra money you will have left over. Start with the smallest amount you owe first and pay that off. Next take what you were paying on that bill and add it to the next smallest amount until all debts are paid. The last thing to pay off would be your mortgage and at this time you can start your other savings plans while paying extra on your mortgage. By paying off the smallest debt first it enables your momentum of seeing a payoff and you are more likely to keep paying them all off.
3. Save for Retirement: After your debt is paid off don't go and get a loan for a new car! Buy a nice used car with cash and start beefing up your retirement. Yes, even in a financial crisis you should still invest for your retirement. After contributing the maximum to your employer's 401K, look into an annuity for an extra retirement vehicle. Also, start a college savings plan for your children. One thing that you should not purchase just for a retirement plan would be life insurance.
4. Don't Pay to Much for Health Insurance: If you are paying outrageous amounts for your health insurance try purchasing a high-deductible emergency plan then use a health savings account to pay for all your regular yearly costs. In most cases this option can save a lot of money for a family that is basically healthy. Also, if you are low income you or your children may be eligible for your state sponsored health insurance plan. Sometimes even if both parents are working you may still fall into the low income bracket. In addition, shop around. Health insurance prices can vary dramatically from company to company.
5. Stick to This Plan and Share Your Spare: Yes, I know this can be a given but these steps take a lifelong commitment that can be hard at times. You may fail. You might just buy that dress in the window you did not need instead of taking that money and paying off your debt, but if that happens just start over again. Once your debt is cured you will have a greater understanding and responsibility of your money and you will probably be finding yourself more inclined to reach out to others with your spare money instead of buying things you don't need.
1. Protect Your Assets: Step one in your financial crisis debt cure is to make sure you have the basics of insurance which includes homeowners/renter's (including flood insurance), auto, health, life, and umbrella. After you have followed the remaining steps below then look into adding long term care and disability insurance. It only takes one disaster to disable your financial situation so don't skimp on the insurance.
2. Of Course, Your Quick 5 Step Financial Adviser Says, "Get Rid of Your Debt!": It is hard to save in a financial crisis but when you can save, before saving for anything else, college or retirement, get yourself out of debt. Once you are out of debt you can catch up fast on your other savings plans with all the extra money you will have left over. Start with the smallest amount you owe first and pay that off. Next take what you were paying on that bill and add it to the next smallest amount until all debts are paid. The last thing to pay off would be your mortgage and at this time you can start your other savings plans while paying extra on your mortgage. By paying off the smallest debt first it enables your momentum of seeing a payoff and you are more likely to keep paying them all off.
3. Save for Retirement: After your debt is paid off don't go and get a loan for a new car! Buy a nice used car with cash and start beefing up your retirement. Yes, even in a financial crisis you should still invest for your retirement. After contributing the maximum to your employer's 401K, look into an annuity for an extra retirement vehicle. Also, start a college savings plan for your children. One thing that you should not purchase just for a retirement plan would be life insurance.
4. Don't Pay to Much for Health Insurance: If you are paying outrageous amounts for your health insurance try purchasing a high-deductible emergency plan then use a health savings account to pay for all your regular yearly costs. In most cases this option can save a lot of money for a family that is basically healthy. Also, if you are low income you or your children may be eligible for your state sponsored health insurance plan. Sometimes even if both parents are working you may still fall into the low income bracket. In addition, shop around. Health insurance prices can vary dramatically from company to company.
5. Stick to This Plan and Share Your Spare: Yes, I know this can be a given but these steps take a lifelong commitment that can be hard at times. You may fail. You might just buy that dress in the window you did not need instead of taking that money and paying off your debt, but if that happens just start over again. Once your debt is cured you will have a greater understanding and responsibility of your money and you will probably be finding yourself more inclined to reach out to others with your spare money instead of buying things you don't need.
The Basics of a Supplemental Health Insurance Plan
Aflac has made supplemental health insurance popular with their quirky duck. But what is a supplemental health insurance plan and do you need it?
How Does a Supplemental Health Insurance Plan like Aflac Work?
Supplemental insurance, such as what Aflac offers, pays a cash benefit to the insured. The amount of cash and how it is paid out depends on the supplemental health insurance plan or policy. Some popular supplemental health insurance policies are specific disease insurance such as for cancer, accidental death and dismemberment insurance or accident health insurance, and hospital indemnity insurance.
Determine Your Need for Supplemental Health Insurance
Since you already have health insurance do you need any of these supplemental health insurance plans offered by Aflac and other insurance companies? Well, that depends on your risk factors and how much insurance you want to carry or can afford to carry and how much savings you have put back.
First, Obtain a Good Health Insurance Policy
Of course, the first thing you want to have is a good health insurance policy. Health insurance policies are all different therefore, what and how much they will pay is different too. Supplemental health insurance comes in to help you pay for what your health insurance does not pay or other expenses you cannot pay if something should happen where you temporarily or permanently cannot make an income to pay your bills.
What to Consider when Choosing Supplemental Health Insurance
Only you can decide if a supplemental health insurance plan is right for you. Some things to consider when deciding if you need a supplemental health insurance plan are your health risk factors, your savings, and how much insurance you can afford. Of course no one can predict what their health will be in the future, but if you have always been in good health and take good care of yourself then you would be less likely to use a supplemental health insurance policy than someone who is often in bad health. Also, your savings should play an important role in your decision to purchase a supplemental health insurance policy. If you were in the hospital for a few weeks or more, would you have enough to cover your other expenses that your insurance would not? And, when deciding on purchasing a policy, you need to take into consideration if you can afford it or not. Supplemental health insurance policies are not often used so it is not worth it to you to purchase a policy that you probably will not use if it would be a financial burden.
Let's now take a closer look at the three most common supplemental health insurance policies:
1. Disease Specific Insurance: This type of supplemental health insurance provides a cash benefit paid directly to you if you require treatment for a specific disease such as cancer. Usually the benefit is paid per day or per procedure. There is a usually a minimum daily benefit and a policy maximum. The cash can be spent in any way you would choose and getting your benefit would have nothing to do with how much your insurance paid for your medical costs.
2. Accident Health Insurance or Accidental Death and Dismemberment Supplemental Insurance: This type of supplemental insurance typically would reimburse you for medical costs resulting from accidents. Benefits are paid if you die (to your beneficiaries) or are disabled due to a specific accident outlined in the policy. Premiums are usually low and no medical exam is required. Accidents can include car accidents and accidents in the home or at your job. Also, if you loose limbs, fingers, toes, or your vision due to a covered accident, you may be able to collect a percentage of the death benefit.
3. Hospital Indemnity Insurance: This type of supplemental health insurance provides a daily, weekly, or monthly cash benefit if you are confined to a hospital stay. Usually there is a minimum hospital stay before benefits are paid. The cash benefit is paid in addition to any other insurance you may have. Benefits are usually reduced if you are confined to a mental hospital and often you can find plans through an employer that require no health exam.
How Does a Supplemental Health Insurance Plan like Aflac Work?
Supplemental insurance, such as what Aflac offers, pays a cash benefit to the insured. The amount of cash and how it is paid out depends on the supplemental health insurance plan or policy. Some popular supplemental health insurance policies are specific disease insurance such as for cancer, accidental death and dismemberment insurance or accident health insurance, and hospital indemnity insurance.
Determine Your Need for Supplemental Health Insurance
Since you already have health insurance do you need any of these supplemental health insurance plans offered by Aflac and other insurance companies? Well, that depends on your risk factors and how much insurance you want to carry or can afford to carry and how much savings you have put back.
First, Obtain a Good Health Insurance Policy
Of course, the first thing you want to have is a good health insurance policy. Health insurance policies are all different therefore, what and how much they will pay is different too. Supplemental health insurance comes in to help you pay for what your health insurance does not pay or other expenses you cannot pay if something should happen where you temporarily or permanently cannot make an income to pay your bills.
What to Consider when Choosing Supplemental Health Insurance
Only you can decide if a supplemental health insurance plan is right for you. Some things to consider when deciding if you need a supplemental health insurance plan are your health risk factors, your savings, and how much insurance you can afford. Of course no one can predict what their health will be in the future, but if you have always been in good health and take good care of yourself then you would be less likely to use a supplemental health insurance policy than someone who is often in bad health. Also, your savings should play an important role in your decision to purchase a supplemental health insurance policy. If you were in the hospital for a few weeks or more, would you have enough to cover your other expenses that your insurance would not? And, when deciding on purchasing a policy, you need to take into consideration if you can afford it or not. Supplemental health insurance policies are not often used so it is not worth it to you to purchase a policy that you probably will not use if it would be a financial burden.
Let's now take a closer look at the three most common supplemental health insurance policies:
1. Disease Specific Insurance: This type of supplemental health insurance provides a cash benefit paid directly to you if you require treatment for a specific disease such as cancer. Usually the benefit is paid per day or per procedure. There is a usually a minimum daily benefit and a policy maximum. The cash can be spent in any way you would choose and getting your benefit would have nothing to do with how much your insurance paid for your medical costs.
2. Accident Health Insurance or Accidental Death and Dismemberment Supplemental Insurance: This type of supplemental insurance typically would reimburse you for medical costs resulting from accidents. Benefits are paid if you die (to your beneficiaries) or are disabled due to a specific accident outlined in the policy. Premiums are usually low and no medical exam is required. Accidents can include car accidents and accidents in the home or at your job. Also, if you loose limbs, fingers, toes, or your vision due to a covered accident, you may be able to collect a percentage of the death benefit.
3. Hospital Indemnity Insurance: This type of supplemental health insurance provides a daily, weekly, or monthly cash benefit if you are confined to a hospital stay. Usually there is a minimum hospital stay before benefits are paid. The cash benefit is paid in addition to any other insurance you may have. Benefits are usually reduced if you are confined to a mental hospital and often you can find plans through an employer that require no health exam.
Health Care Reform - Why Will This Work Now?
Until recently, the universal health care pros and cons for the U.S. have been debated but largely nothing much has been done to change the current failing system. Maybe it is because the term "universal health care" seems to still spell "failure" due to the Clinton era of health care reform. But why was that such a failure and why does Obama feel a national health care system will work for the U.S. now?
Obama is Ready for Health Care Reform
This is not something President Obama is just looking into. He has a $634 billion proposal and that is just a down payment. He has already shown his commitment to health care reform by giving COBRA recipients subsidies not long after he was in office. And although there has been some expected opposition to his proposals, it looks as though he is not facing a failure as Clinton did.
Timing and Presentation
As some of you may want to believe, no, it is not his charismatic way that is going to make health care reform work but instead a mix of ingredients that just may provide a national health care system for America. There are many ingredients that are working in favor for President Obama but the main ones include timing and presentation.
Out of Control Health Care Costs Have Changed Some Minds
Timing is everything, right? Well, it is working for health care reform too. Although when President Clinton first proposed a universal health care system there was a need for it but not enough people felt we had a failing health care system. And many insurance and medical professionals were worried about their bottom line so were reluctant to jump on board. Now that we have had some time to let's say, digest the thought of a national health care system along with the fact that health care costs are out of control and show no signs of stopping, the professionals that once opposed a national health care system are now ready to see what options are available.
Which Boss Would You Want to Work With?
Presentation... Obama has it! OK, let's say you are at the office and your boss hands you a proposal on how to get the office organized. He has done all the planning and has laid out what you need to buy and how you need to do it. Now, let's take another approach. Your boss sits down with you and tells you that he would like to see the office work more efficiently and would like to get your ideas on how that should be done. Which boss would you be more likely to work with? You get the picture. Obama has chosen to take the time to work with advisors and get their opinions on how to make health care reform work. President Clinton, although he had good intentions, pretty much handed out his plan on how it was going to work.
A Good Medium and Not Rushing It
Of course there are many other factors as to why Obama just may pull this off where others could not. By taking the time to look at all the options, he has also found a good medium where insurance companies will be able to work with the government, and between the two of them be able to offer Americans the best health care choices. It will take a lot of time and work and certainly won't happen quickly, but it is a great task. Many feel like they just can't wait for health care reform, but, I think most of us can agree that this is not something we want rushed, which would give it more of a chance for failure.
Obama is Ready for Health Care Reform
This is not something President Obama is just looking into. He has a $634 billion proposal and that is just a down payment. He has already shown his commitment to health care reform by giving COBRA recipients subsidies not long after he was in office. And although there has been some expected opposition to his proposals, it looks as though he is not facing a failure as Clinton did.
Timing and Presentation
As some of you may want to believe, no, it is not his charismatic way that is going to make health care reform work but instead a mix of ingredients that just may provide a national health care system for America. There are many ingredients that are working in favor for President Obama but the main ones include timing and presentation.
Out of Control Health Care Costs Have Changed Some Minds
Timing is everything, right? Well, it is working for health care reform too. Although when President Clinton first proposed a universal health care system there was a need for it but not enough people felt we had a failing health care system. And many insurance and medical professionals were worried about their bottom line so were reluctant to jump on board. Now that we have had some time to let's say, digest the thought of a national health care system along with the fact that health care costs are out of control and show no signs of stopping, the professionals that once opposed a national health care system are now ready to see what options are available.
Which Boss Would You Want to Work With?
Presentation... Obama has it! OK, let's say you are at the office and your boss hands you a proposal on how to get the office organized. He has done all the planning and has laid out what you need to buy and how you need to do it. Now, let's take another approach. Your boss sits down with you and tells you that he would like to see the office work more efficiently and would like to get your ideas on how that should be done. Which boss would you be more likely to work with? You get the picture. Obama has chosen to take the time to work with advisors and get their opinions on how to make health care reform work. President Clinton, although he had good intentions, pretty much handed out his plan on how it was going to work.
A Good Medium and Not Rushing It
Of course there are many other factors as to why Obama just may pull this off where others could not. By taking the time to look at all the options, he has also found a good medium where insurance companies will be able to work with the government, and between the two of them be able to offer Americans the best health care choices. It will take a lot of time and work and certainly won't happen quickly, but it is a great task. Many feel like they just can't wait for health care reform, but, I think most of us can agree that this is not something we want rushed, which would give it more of a chance for failure.
How The Critics Feel About Obama's Plans to Reform Health Care
President Obama is ready to reform health care in America. His $634 billion health care bill proposal is said to be just a down payment for future insurance reform. Of course with that much money being spent and with health insurance reform being a hot topic since the failed universal health care proposal by President Clinton, Obama is going to have his critics. So, what are the main points that the opposition is saying about health insurance reform as proposed by President Obama? A few of the main problems that experts feel America will face if we do indeed reform health care the way that Obama wants is done is:
1. The Government Will Be Unfair Competition This is a legitimate complaint and Obama has agreed it needs to be addressed. The problem may come when the government does offer a health care plan that is so reasonable, even people with good insurance currently will drop their to choose the new government run program. This would not only cause problems with insurance companies loosing business (and the domino effect of job losses) but it would put more people on the government plan than was previously planned for.
2. Employers May Stop Offering Health Care This again could cause a problem. Employers may just drop their health care offerings altogether expecting the government to pick up the cost of providing health care for them. And again, like above, this could cause a ripple effect that would not be favorable for anyone.
3. We Should Work on Competition and Not a Government Run Health Care System This really comes deep from the American roots. Critics of the Obama health care bill and health care insurance reform feel it is not the American way for the government to take away the natural competition that America was built on. They feel, yes there are problems in the health care system but the solution is not to just have the government jump in and take over but to fix the problems we have by promoting better competition.
Besides the above oppositions, others are concerned about what it will cost to reform health care. One of the proposals for payment include lowering the tax deduction on charitable contribution. Charities have mixed emotions on this one - they want better health insurance reform but will it cost them in the long run?
Really, no one knows if Obama's plan is really the best solution for America. But right now it is the only plan and it looks like it will become "The Plan." Fortunately, President Obama is taking the time to look at all the problems that may arise and is making a good faith effort in addressing those problems. America needs health care reform and it may be a bumpy ride in the beginning but it seems nothing can be worse than the health care crisis we are already experiencing... let's hope not.
1. The Government Will Be Unfair Competition This is a legitimate complaint and Obama has agreed it needs to be addressed. The problem may come when the government does offer a health care plan that is so reasonable, even people with good insurance currently will drop their to choose the new government run program. This would not only cause problems with insurance companies loosing business (and the domino effect of job losses) but it would put more people on the government plan than was previously planned for.
2. Employers May Stop Offering Health Care This again could cause a problem. Employers may just drop their health care offerings altogether expecting the government to pick up the cost of providing health care for them. And again, like above, this could cause a ripple effect that would not be favorable for anyone.
3. We Should Work on Competition and Not a Government Run Health Care System This really comes deep from the American roots. Critics of the Obama health care bill and health care insurance reform feel it is not the American way for the government to take away the natural competition that America was built on. They feel, yes there are problems in the health care system but the solution is not to just have the government jump in and take over but to fix the problems we have by promoting better competition.
Besides the above oppositions, others are concerned about what it will cost to reform health care. One of the proposals for payment include lowering the tax deduction on charitable contribution. Charities have mixed emotions on this one - they want better health insurance reform but will it cost them in the long run?
Really, no one knows if Obama's plan is really the best solution for America. But right now it is the only plan and it looks like it will become "The Plan." Fortunately, President Obama is taking the time to look at all the problems that may arise and is making a good faith effort in addressing those problems. America needs health care reform and it may be a bumpy ride in the beginning but it seems nothing can be worse than the health care crisis we are already experiencing... let's hope not.
Tough Times and Life Insurance: When is it Time to Cancel the Life Insurance?
When tough economical times come, many households find ways to cut expenses. Salary cuts and job losses are among the many reasons why expenses need cut, but when the question to cut life insurance arises you may want to think twice before you choose to cancel your life insurance policy.
Tough Times May Equate to a Greater Life Insurance Need
In tough financial times is it quite the opposite when it comes to considering canceling life insurance. Instead, when a financial crisis hits it is most likely the time to add to your life insurance benefit amount or purchase a policy if you don't already have one.
Your Dependents Need Financial Assistance Even More
Think about it. You loose your job and then you loose your group life policy... don't you wish you would have found another one before the loss? Also, the economy is in the dumps and you pass away so your dependents need even more financial assistance than you estimated because of the tougher times. There are many scenarios as to why you need your life insurance more than ever so here are some points to remember about handling your life insurance in tough economical times:
What to Do About Life Insurance in Tough Times:
Don't Cancel Your Life Insurance: This is the first mistake many make when trying to cut costs. Often with all the bills to pay it is easy to think that you don't need life insurance right now. But if you are having such a tough time now paying for your expenses, then think about how tough it will be for your survivors if you were not there? Life insurance may just be needed more than ever when finances are tight. One thing to consider if you just can't make your payments is term life insurance. If you don't already have a term policy then consider switching to one since the premiums are much cheaper than a whole life insurance policy.
Add More With Term Life Insurance: Again, term life insurance is very inexpensive when compared to other life insurance choices. And, in tough times many have possibly lost savings or possessions that they had planned on passing on to their survivors in addition to their current life insurance. This is why it is important in tough times to recalculate your life insurance needs and if you find that you indeed need to add to your life insurance benefit amount, the least costly way to do that would be to purchase an additional term life insurance policy.
Look for Individual Life Insurance: Great, you have a job and you have group insurance through your employer. Sounds like you are set! Wait a minute... what would you do if you lost your job? Yes, you will most likely loose your group life insurance coverage. So, if you are concerned that there may be cuts in the future of your company or you just don't want to worry about having a time when you are not covered, then now is the time to search for a term life insurance policy. It is portable and the younger and healthier you are when you get it then the cheaper the premiums will be.
If You Have Poor Health Now is the Time to Buy! If you currently have a job with a group life insurance policy and you are in poor health, then now is the time to up your life insurance benefit amount. If you do lose your job, then you usually can convert your policy to an individual policy without an additional medical exam. It may cost more to waive the medical exam but it is worth the alternative of trying to find an individual life insurance policy with poor health, which would either be impossible or way to expensive.
Make Sure You Buy From A Strong Life Insurance Company: Before you add or purchase any life insurance, make sure you find out how financially strong the life insurance company is. If you are in tough financial times because of a tough economy, then most likely many life insurance companies are going through tough financial times too. Do your research... don't just assume since it is a big name it is a good life insurance company.
Tough Times May Equate to a Greater Life Insurance Need
In tough financial times is it quite the opposite when it comes to considering canceling life insurance. Instead, when a financial crisis hits it is most likely the time to add to your life insurance benefit amount or purchase a policy if you don't already have one.
Your Dependents Need Financial Assistance Even More
Think about it. You loose your job and then you loose your group life policy... don't you wish you would have found another one before the loss? Also, the economy is in the dumps and you pass away so your dependents need even more financial assistance than you estimated because of the tougher times. There are many scenarios as to why you need your life insurance more than ever so here are some points to remember about handling your life insurance in tough economical times:
What to Do About Life Insurance in Tough Times:
Don't Cancel Your Life Insurance: This is the first mistake many make when trying to cut costs. Often with all the bills to pay it is easy to think that you don't need life insurance right now. But if you are having such a tough time now paying for your expenses, then think about how tough it will be for your survivors if you were not there? Life insurance may just be needed more than ever when finances are tight. One thing to consider if you just can't make your payments is term life insurance. If you don't already have a term policy then consider switching to one since the premiums are much cheaper than a whole life insurance policy.
Add More With Term Life Insurance: Again, term life insurance is very inexpensive when compared to other life insurance choices. And, in tough times many have possibly lost savings or possessions that they had planned on passing on to their survivors in addition to their current life insurance. This is why it is important in tough times to recalculate your life insurance needs and if you find that you indeed need to add to your life insurance benefit amount, the least costly way to do that would be to purchase an additional term life insurance policy.
Look for Individual Life Insurance: Great, you have a job and you have group insurance through your employer. Sounds like you are set! Wait a minute... what would you do if you lost your job? Yes, you will most likely loose your group life insurance coverage. So, if you are concerned that there may be cuts in the future of your company or you just don't want to worry about having a time when you are not covered, then now is the time to search for a term life insurance policy. It is portable and the younger and healthier you are when you get it then the cheaper the premiums will be.
If You Have Poor Health Now is the Time to Buy! If you currently have a job with a group life insurance policy and you are in poor health, then now is the time to up your life insurance benefit amount. If you do lose your job, then you usually can convert your policy to an individual policy without an additional medical exam. It may cost more to waive the medical exam but it is worth the alternative of trying to find an individual life insurance policy with poor health, which would either be impossible or way to expensive.
Make Sure You Buy From A Strong Life Insurance Company: Before you add or purchase any life insurance, make sure you find out how financially strong the life insurance company is. If you are in tough financial times because of a tough economy, then most likely many life insurance companies are going through tough financial times too. Do your research... don't just assume since it is a big name it is a good life insurance company.
Bankruptcy and Medical Bills
The terms bankruptcy and health care go hand and hand. Startling estimates have found that more than 60% of bankruptcy filings are for medical bills. Even more startling is that the people filing for bankruptcy for medical bills are not just the uninsured but people that did indeed have health insurance.
Not everyone wants to file bankruptcy for their medical bills. Fortunately, there are some steps you can take to avoid filing bankruptcy because of health care medical bills.
3 Steps to Take for Avoiding Bankruptcy Because of Health Care Medical Bills
1. Get Health Insurance: Yes, some bankruptcy filings for medical bills are from insured households but for the most part, these filings are due to people being under insured. So, if you currently don't have health insurance it is important you try every way you can to acquire it. And, make sure you are covered adequately. Yes, it may seem now that you can't afford the cost of health insurance but really, you can't afford not to buy it. If you are unemployed or have a limited income, you may qualify for a state program or at least your children will. And, if you just have too many other things you are paying for, please find what you can cut from your budget so you can afford health insurance.
2. Check Your Bill: Medical bill errors are very common. Make sure you get an itemized bill from every medical provider and make sure you did receive the treatment that is stated on those bills. This may take some time but could save you thousands. If you don't understand everything on your bill then call the provider and ask. They have an obligation to make sure you understand what you have been billed for.
3. Don't Charge Your Medical Bills or Transfer Them to Another Loan: This is a very important step. You can set up payments through the hospital or medical provider but once you charge the amount on a credit card or get a loan for them you are on your own. And worse yet, if you get a home equity loan then you could lose your house! The hospital will work with you on payments and the worst that will happen is that they will send your account to a collection agency. All they will do is bug you to collect on the bill. No one can take your home or put you in jail. Just keep working on making a payment plan with the providers. In addition to negotiating the payment plan you can even negotiate the lowering of your bill.
Not everyone wants to file bankruptcy for their medical bills. Fortunately, there are some steps you can take to avoid filing bankruptcy because of health care medical bills.
3 Steps to Take for Avoiding Bankruptcy Because of Health Care Medical Bills
1. Get Health Insurance: Yes, some bankruptcy filings for medical bills are from insured households but for the most part, these filings are due to people being under insured. So, if you currently don't have health insurance it is important you try every way you can to acquire it. And, make sure you are covered adequately. Yes, it may seem now that you can't afford the cost of health insurance but really, you can't afford not to buy it. If you are unemployed or have a limited income, you may qualify for a state program or at least your children will. And, if you just have too many other things you are paying for, please find what you can cut from your budget so you can afford health insurance.
2. Check Your Bill: Medical bill errors are very common. Make sure you get an itemized bill from every medical provider and make sure you did receive the treatment that is stated on those bills. This may take some time but could save you thousands. If you don't understand everything on your bill then call the provider and ask. They have an obligation to make sure you understand what you have been billed for.
3. Don't Charge Your Medical Bills or Transfer Them to Another Loan: This is a very important step. You can set up payments through the hospital or medical provider but once you charge the amount on a credit card or get a loan for them you are on your own. And worse yet, if you get a home equity loan then you could lose your house! The hospital will work with you on payments and the worst that will happen is that they will send your account to a collection agency. All they will do is bug you to collect on the bill. No one can take your home or put you in jail. Just keep working on making a payment plan with the providers. In addition to negotiating the payment plan you can even negotiate the lowering of your bill.
Term Life Insurance: A Low Cost Life Insurance Policy Option
Need low cost life insurance? Take a look at the budget friendly option of a term life insurance policy. Term life insurance policy premiums are generally much cheaper than cash-value policies (universal and whole), especially if you are young and in good health and a low cost term life insurance policy does exactly what you expect it to do by financially taking care of your beneficiaries if you die. Here's the basics of a low cost term life insurance policy:
Purchasing a Term Life Insurance Policy
You buy a low cost term life insurance policy with a specified time period, usually one, five, or ten years. During that "term" you pay a specified premium. Your beneficiaries will receive a death benefit if you die during the term of the life insurance policy.
Facts About a Low Cost Term Life Insurance Policy
Seems simple enough, right? Well, as with all insurance, there are little complexities and loop-holes you need to fill. For instance, the death benefit may not be the same throughout the term life insurance policy depending on whether you choose decreasing, level, or increasing term life insurance. And, what about when your term is over? That's where renewable and convertible term insurance comes in. Take for instance you want a basic 10 year low cost term life insurance policy with the death benefit to stay the same throughout the term life insurance policy, and at the end of the term you would like to "convert" to a different term life insurance policy such as a cash-value policy, without taking another medical exam. In that case you would choose a level term convertible life insurance policy.
Deciding if a Term Life Insurance Policy is for You
Term life insurance does not build cash-value or have the tax benefits like universal or whole life, but it can be a great option for someone who would like life insurance, but can't afford the higher premiums. Here is a check-list to help you decide if a low cost term life insurance policy is right for you:
You're on a budget and cannot afford a very high premium.
You are young, and in good health.
You are looking for a simple, straight-forward, low cost life insurance plan to protect your beneficiaries.
Talking to Your Insurance Agent About a Term Life Insurance Policy
When checking with your agent on term life insurance, ask a lot of questions. Generally, agents do not receive as much commission on term life insurance verses cash-value policies so you may have to probe a little for more information.
Want to build cash value and have lifelong coverage? Check out whole life insurance: Whole Life Insurance Policy Choices
Purchasing a Term Life Insurance Policy
You buy a low cost term life insurance policy with a specified time period, usually one, five, or ten years. During that "term" you pay a specified premium. Your beneficiaries will receive a death benefit if you die during the term of the life insurance policy.
Facts About a Low Cost Term Life Insurance Policy
Seems simple enough, right? Well, as with all insurance, there are little complexities and loop-holes you need to fill. For instance, the death benefit may not be the same throughout the term life insurance policy depending on whether you choose decreasing, level, or increasing term life insurance. And, what about when your term is over? That's where renewable and convertible term insurance comes in. Take for instance you want a basic 10 year low cost term life insurance policy with the death benefit to stay the same throughout the term life insurance policy, and at the end of the term you would like to "convert" to a different term life insurance policy such as a cash-value policy, without taking another medical exam. In that case you would choose a level term convertible life insurance policy.
Deciding if a Term Life Insurance Policy is for You
Term life insurance does not build cash-value or have the tax benefits like universal or whole life, but it can be a great option for someone who would like life insurance, but can't afford the higher premiums. Here is a check-list to help you decide if a low cost term life insurance policy is right for you:
You're on a budget and cannot afford a very high premium.
You are young, and in good health.
You are looking for a simple, straight-forward, low cost life insurance plan to protect your beneficiaries.
Talking to Your Insurance Agent About a Term Life Insurance Policy
When checking with your agent on term life insurance, ask a lot of questions. Generally, agents do not receive as much commission on term life insurance verses cash-value policies so you may have to probe a little for more information.
Want to build cash value and have lifelong coverage? Check out whole life insurance: Whole Life Insurance Policy Choices
Your 5 Step Guide to Shopping for the Best Term Insurance Rate
Team Insurance is an effective way to make sure your survivors will be well provided for without a hefty cost to you in premiums. It is very straight forward too: You get a term life insurance quote online or with your local term insurance company and then buy a certain $$ amount of insurance for a "term" of time (such as 10 or 20 years) for a specified monthly, quarterly, or yearly premium. Although term insurance seems simple enough, here are some term insurance shopping hints to help you save money and get the best term life insurance rate:
1. Find a guaranteed renewable term insurance policy. For example, say you purchase a 10 year term insurance policy. After the 10 years are up you want to make sure you can renew that policy for as long as you want, regardless of your health.
2. Make sure you get a fixed premium term insurance policy. Most term insurance premiums are fixed, but some term insurance companies may offer a fixed premium for the first few years but then the premium may increase. Hint: If the premium seems drastically lower than those found at other companies, ask them if the premium is fixed for the life of the term.
3. Shop around before you choose a term insurance company. Term life insurance is everywhere, from mail-order companies to television ads. Premium prices and the term of the policy can vary dramatically. Look for a company that is willing to give you a quote first, before they must meet with you. Getting a term life insurance quote online is a quick and easy way to compare term life insurance company prices in the privacy of your home and since you will be able to compare many different companies you will be able to choose the term insurance rate that best suits your budget.
4. Don't get a term insurance policy that offers more insurance if you become deceased in a certain manner. Your survivors need the same amount of financial support regardless of how you die, and policies such as these may have an added cost to them.
5. Know your term insurance company's financial strength! Yes, insurance companies sometimes cannot pay their bills, which is why they are rated by independent companies such as Best's.
1. Find a guaranteed renewable term insurance policy. For example, say you purchase a 10 year term insurance policy. After the 10 years are up you want to make sure you can renew that policy for as long as you want, regardless of your health.
2. Make sure you get a fixed premium term insurance policy. Most term insurance premiums are fixed, but some term insurance companies may offer a fixed premium for the first few years but then the premium may increase. Hint: If the premium seems drastically lower than those found at other companies, ask them if the premium is fixed for the life of the term.
3. Shop around before you choose a term insurance company. Term life insurance is everywhere, from mail-order companies to television ads. Premium prices and the term of the policy can vary dramatically. Look for a company that is willing to give you a quote first, before they must meet with you. Getting a term life insurance quote online is a quick and easy way to compare term life insurance company prices in the privacy of your home and since you will be able to compare many different companies you will be able to choose the term insurance rate that best suits your budget.
4. Don't get a term insurance policy that offers more insurance if you become deceased in a certain manner. Your survivors need the same amount of financial support regardless of how you die, and policies such as these may have an added cost to them.
5. Know your term insurance company's financial strength! Yes, insurance companies sometimes cannot pay their bills, which is why they are rated by independent companies such as Best's.
Top Ways to Turn Your Current Car Insurance Into Cheap Insurance
Are you getting cheap insurance for your car? This list will help you obtain cheap car insurance - not cheap in terms of quality but easy on your wallet! Get your car insurance policy and compare your savings with this list to see if you are getting all of the savings you are entitled to, or print it out and use it when getting a new policy or obtaining an online car insurance quote.
Top Ways to Change Your Current Car Insurance into Cheap Insurance:
Get Theft Devices: Most new cars have theft devices. Some are automatic and some have to be started at the touch of a button, but all usually get discounts on car insurance. Also, some states provide extra discounts for such things as window sketching.
Ask for a Multiple Car Discount: Did you know sometimes insuring two cars can be the same price as insuring one? If not the same price, insuring another car usually does not cost as much as you may think. If you have two cars, it is very wise to check with your insurance agent, or while obtaining your online insurance quote, to make sure you can get this discount on your car insurance. Also, if you are planning to sell a second car, the cheap car insurance trick would be to keep that car on just liability to get your multiple car discount. Sometimes people are surprised when they call their car insurance company to take a car off of their insurance, only to find that their price did not go down but possibly increased!
Stick With Yearly Policies: Choosing a yearly policy can extend your savings on your car insurance. Purchasing a yearly policy instead of a six month policy gives you a rate that cannot be changed for one year vs. changing every six months.
Look Into Comprehensive Storage Coverage: If you are planning to store your car for any period of time, you can save on your car insurance by only keeping comprehensive coverage during the storage time. Since the car would be stored, it is very unlikely it will get in a collision or need the liability coverage.
Re-Check Your Mileage: This is a great way to get cheap car insurance: If you are really close to the "miles to work" break-off, you may want to check your mileage closely. When your car insurance company or insurance agent asks you "How many miles do you drive to work one way?" this is a crucial question that will designate you into a particular class. Each class can have significant differences in prices.
Look for a Group Discount: Many companies offer a discount on car insurance for being affiliated with certain organizations. These can range from credit unions, college sororities, or just having a certain credit card. Call your service center and ask them for a list of organization affiliations.
Lower Liability, Comprehensive, Collision, or Medical Payments Coverages: Of course, you can lower your basic coverages but it may just give you the cheap insurance you need right no!. Comprehensive and collision are probably the first to look at lowering by increasing your deductibles on your car insurance. Most vehicles that are on bank loans can have up to a $1000 deductible. Next, lowering your liability and medical payments could help, but only if you are having a hard time paying for your premium and is not recommended for general savings.
Make EFT Payments: Many car insurance companies are now charging up to $5.00 or more for mail payments, but sometimes nothing if you choose to have payments automatically deducted. And, sometimes the deductions can come from your credit card, so you don't have to worry if the money will be in your bank account when payment time comes.
Top Ways to Change Your Current Car Insurance into Cheap Insurance:
Get Theft Devices: Most new cars have theft devices. Some are automatic and some have to be started at the touch of a button, but all usually get discounts on car insurance. Also, some states provide extra discounts for such things as window sketching.
Ask for a Multiple Car Discount: Did you know sometimes insuring two cars can be the same price as insuring one? If not the same price, insuring another car usually does not cost as much as you may think. If you have two cars, it is very wise to check with your insurance agent, or while obtaining your online insurance quote, to make sure you can get this discount on your car insurance. Also, if you are planning to sell a second car, the cheap car insurance trick would be to keep that car on just liability to get your multiple car discount. Sometimes people are surprised when they call their car insurance company to take a car off of their insurance, only to find that their price did not go down but possibly increased!
Stick With Yearly Policies: Choosing a yearly policy can extend your savings on your car insurance. Purchasing a yearly policy instead of a six month policy gives you a rate that cannot be changed for one year vs. changing every six months.
Look Into Comprehensive Storage Coverage: If you are planning to store your car for any period of time, you can save on your car insurance by only keeping comprehensive coverage during the storage time. Since the car would be stored, it is very unlikely it will get in a collision or need the liability coverage.
Re-Check Your Mileage: This is a great way to get cheap car insurance: If you are really close to the "miles to work" break-off, you may want to check your mileage closely. When your car insurance company or insurance agent asks you "How many miles do you drive to work one way?" this is a crucial question that will designate you into a particular class. Each class can have significant differences in prices.
Look for a Group Discount: Many companies offer a discount on car insurance for being affiliated with certain organizations. These can range from credit unions, college sororities, or just having a certain credit card. Call your service center and ask them for a list of organization affiliations.
Lower Liability, Comprehensive, Collision, or Medical Payments Coverages: Of course, you can lower your basic coverages but it may just give you the cheap insurance you need right no!. Comprehensive and collision are probably the first to look at lowering by increasing your deductibles on your car insurance. Most vehicles that are on bank loans can have up to a $1000 deductible. Next, lowering your liability and medical payments could help, but only if you are having a hard time paying for your premium and is not recommended for general savings.
Make EFT Payments: Many car insurance companies are now charging up to $5.00 or more for mail payments, but sometimes nothing if you choose to have payments automatically deducted. And, sometimes the deductions can come from your credit card, so you don't have to worry if the money will be in your bank account when payment time comes.
Shopping for Life Insurance Quotes
So, you have decided to shop around for life insurance quotes. Want to save a few thousand dollars on your next life insurance policy? Well, think about how long you pay for life insurance and how much of a life insurance quote difference of $5 per month would make over a 30 year term life insurance policy. Now take that figure ($1800) and think about how much more that would be if you would have had it to invest. It really adds up!
Many people don't realize how much a small increase in life insurance premium can add up over the course of a life insurance policy. What often happens when one is shopping around for life insurance quotes is that they don't bother to worry about just a $5 a month difference, but as you can see from above, it pays to pick the lowest of your life insurance policy quotes.
Now that you know to pay attention to every dollar when shopping for your life insurance quotes, lets look at a few ways to shop around for the best life insurance quotes so you can start saving thousands on your next life insurance policy!
1. Determine Your Needs: First you will want to get a good idea of just how much insurance you need. If you have not taken the time to research your needs then you will not be able to make an informed decision when the insurance agent or company that you are acquiring your insurance quotes from accesses your life insurance needs.
1. Pick Your Life Insurance: Term or Whole Life? These are the two basic types of insurance and vary in how they work. Research these choices so again, you can make an informed decision when acquiring your life insurance quotes.
2. Shop Online and Locally for the Best Life Insurance Quotes: Don't assume online is always the best deal. It can be convenient but also having the convenience of a local agent can be helpful. When determining where to get your life insurance quotes take the time to contact many companies. Of course the bottom line price should not be the determining factor in your choice, but using the cost of the life insurance quotes is a good place to start comparing. Be prepared for medical questions and a medical exam and don't worry... just because one company may deny you that does not mean another company will. Also, make sure know the financial strength of your chosen companies to compare.
3. Check for Extra Discounts: Once you have found a handful of companies that have similar low life insurance quotes, now it is time to dig deeper and compare their particular life insurance products. One good comparison area is to evaluate the various additional savings features offered by each company. These include discounts for automatic drafts, organization memberships, and multiple insurance packages from same company (life and disability).
4. Understand the Life Insurance Policy: And of course, when shopping for your life insurance quote and comparing companies, you will want to make sure you are comparing apples to apples. For example, some life insurance companies may give you a 3 month quote price and some may give you a 6 month quote price. Other areas to look for in comparing life insurance policies equally are: fixed premiums (premium stays the same throughout the policy), return of premium (your premium will be returned at the end of the policy if unused), guaranteed renewable policies (you will be able to renew the policy after it has expired), and the exclusions (benefits that are not included). Also, be aware of the "free look" time. This is the time in which you can change your mind after acquiring the policy, usually somewhere within 10 days.
You Purchased an Affordable Life Insurance Policy, Now What?Maintain my life insurance policy? Yes! It is great that you found an affordable life insurance policy but purchasing your affordable life insurance policy is just the first step in being a responsible life insurance policy holder. If you want to get the most out of your life insurance policy and you want it to protect your loved ones like it should, there are steps you need to do in order to make sure your life insurance policy stays current and safe.
Many people don't realize how much a small increase in life insurance premium can add up over the course of a life insurance policy. What often happens when one is shopping around for life insurance quotes is that they don't bother to worry about just a $5 a month difference, but as you can see from above, it pays to pick the lowest of your life insurance policy quotes.
Now that you know to pay attention to every dollar when shopping for your life insurance quotes, lets look at a few ways to shop around for the best life insurance quotes so you can start saving thousands on your next life insurance policy!
1. Determine Your Needs: First you will want to get a good idea of just how much insurance you need. If you have not taken the time to research your needs then you will not be able to make an informed decision when the insurance agent or company that you are acquiring your insurance quotes from accesses your life insurance needs.
1. Pick Your Life Insurance: Term or Whole Life? These are the two basic types of insurance and vary in how they work. Research these choices so again, you can make an informed decision when acquiring your life insurance quotes.
2. Shop Online and Locally for the Best Life Insurance Quotes: Don't assume online is always the best deal. It can be convenient but also having the convenience of a local agent can be helpful. When determining where to get your life insurance quotes take the time to contact many companies. Of course the bottom line price should not be the determining factor in your choice, but using the cost of the life insurance quotes is a good place to start comparing. Be prepared for medical questions and a medical exam and don't worry... just because one company may deny you that does not mean another company will. Also, make sure know the financial strength of your chosen companies to compare.
3. Check for Extra Discounts: Once you have found a handful of companies that have similar low life insurance quotes, now it is time to dig deeper and compare their particular life insurance products. One good comparison area is to evaluate the various additional savings features offered by each company. These include discounts for automatic drafts, organization memberships, and multiple insurance packages from same company (life and disability).
4. Understand the Life Insurance Policy: And of course, when shopping for your life insurance quote and comparing companies, you will want to make sure you are comparing apples to apples. For example, some life insurance companies may give you a 3 month quote price and some may give you a 6 month quote price. Other areas to look for in comparing life insurance policies equally are: fixed premiums (premium stays the same throughout the policy), return of premium (your premium will be returned at the end of the policy if unused), guaranteed renewable policies (you will be able to renew the policy after it has expired), and the exclusions (benefits that are not included). Also, be aware of the "free look" time. This is the time in which you can change your mind after acquiring the policy, usually somewhere within 10 days.
You Purchased an Affordable Life Insurance Policy, Now What?Maintain my life insurance policy? Yes! It is great that you found an affordable life insurance policy but purchasing your affordable life insurance policy is just the first step in being a responsible life insurance policy holder. If you want to get the most out of your life insurance policy and you want it to protect your loved ones like it should, there are steps you need to do in order to make sure your life insurance policy stays current and safe.
Insurance Company Report Cards: What Grade Did Your Company Bring Home? Part 2
Here is a brief explanation of how A.M. Best rates insurance companies. You should strive to find a company that has at least an A rating and preferably an A+.
Best's A+ Superior
This is the highest grade an insurance company can achieve. Companies with a Best's A+ have a superior proven ability to meet their financial obligations with their policy holders.
Best's A Excellent
Companies in this classification also have an excellent financial performance. Not as strong as an A+ company but still more than capable of meeting their financial obligations.
Best's B+ Very Good
Again, going down the list....these companies have shown a "Very Good" ability to meet their financial obligations to their policy holders.
Best's B Good
Insurance companies with a B show a good ability to meet their obligations, but not as strong as the previous grades.
Best's C+ Fairly Good
Again, a fairly good overall performance.
Best's C Fair
And finally, a C means the insurance company has achieved a fair ability to meet their financial obligations.
Best's A+ Superior
This is the highest grade an insurance company can achieve. Companies with a Best's A+ have a superior proven ability to meet their financial obligations with their policy holders.
Best's A Excellent
Companies in this classification also have an excellent financial performance. Not as strong as an A+ company but still more than capable of meeting their financial obligations.
Best's B+ Very Good
Again, going down the list....these companies have shown a "Very Good" ability to meet their financial obligations to their policy holders.
Best's B Good
Insurance companies with a B show a good ability to meet their obligations, but not as strong as the previous grades.
Best's C+ Fairly Good
Again, a fairly good overall performance.
Best's C Fair
And finally, a C means the insurance company has achieved a fair ability to meet their financial obligations.
Insurance Company Report Cards: What Grade Did Your Company Bring Home?
An insurance company's financial strength is an important consideration when choosing a policy. By choosing a financially strong company you will have comfort knowing that the company will most likely be able to pay your claims or be able to pay your life insurance benefits.
For this reason insurance companies are given ratings. These ratings are administered by independent companies. They are sort of like a report card on various aspects of a company's financial strength.
Best's Insurance Reports is an example of an independent insurance rating company. They rate the financial strength of many companies for property and casualty (auto, home), life and health.
Find more about what Best's grades mean at:
For this reason insurance companies are given ratings. These ratings are administered by independent companies. They are sort of like a report card on various aspects of a company's financial strength.
Best's Insurance Reports is an example of an independent insurance rating company. They rate the financial strength of many companies for property and casualty (auto, home), life and health.
Find more about what Best's grades mean at:
Travel Insurance
Having excellent medical, auto, and home insurance does not always guarantee international travel insurance protection when you decide to travel to another country. Many unpredictable situations can occur that may not be covered by your insurance back home, therefore you many need travel health insurance or another applicable international travel insurance policy. Below is a list of situations that may not be covered:
Why You May Need Travel Insurance:
accidents
diseases
dental care
trip cancellations
lost luggage
rental car damage
evacuations
Using International Travel Insurance to Help Plan for the Unexpected
Planning a great trip starts with planning for the unexpected and the best way to cover the unexpected is by purchasing additional insurance when you travel. The first step in doing this is to gather up all the current insurance you have such as home, auto, health, life, personal property, dental, and umbrella policies. Next, check to see what travel health insurance and/or international travel insurance coverages you have on these policies. Some homeowners insurance policies and renter's policies will cover your personal property and liability (such as you accidentally hitting someone with your golf club) anywhere in the world, so if you already have these coverages there is no point in paying again for them.
If you find you do not have enough coverages for travel in your current insurance polices, including travel health insurance coverage, then you will want to contact your travel agent for additional international travel insurance policies or check out the online companies below:
Online Travel Health Insurance and International Travel Insurance Companies
Why You May Need Travel Insurance:
accidents
diseases
dental care
trip cancellations
lost luggage
rental car damage
evacuations
Using International Travel Insurance to Help Plan for the Unexpected
Planning a great trip starts with planning for the unexpected and the best way to cover the unexpected is by purchasing additional insurance when you travel. The first step in doing this is to gather up all the current insurance you have such as home, auto, health, life, personal property, dental, and umbrella policies. Next, check to see what travel health insurance and/or international travel insurance coverages you have on these policies. Some homeowners insurance policies and renter's policies will cover your personal property and liability (such as you accidentally hitting someone with your golf club) anywhere in the world, so if you already have these coverages there is no point in paying again for them.
If you find you do not have enough coverages for travel in your current insurance polices, including travel health insurance coverage, then you will want to contact your travel agent for additional international travel insurance policies or check out the online companies below:
Online Travel Health Insurance and International Travel Insurance Companies
Term Life Insurance: A Low Cost Life Insurance Policy Option
Need low cost life insurance? Take a look at the budget friendly option of a term life insurance policy. Term life insurance policy premiums are generally much cheaper than cash-value policies (universal and whole), especially if you are young and in good health and a low cost term life insurance policy does exactly what you expect it to do by financially taking care of your beneficiaries if you die. Here's the basics of a low cost term life insurance policy:
Purchasing a Term Life Insurance Policy
You buy a low cost term life insurance policy with a specified time period, usually one, five, or ten years. During that "term" you pay a specified premium. Your beneficiaries will receive a death benefit if you die during the term of the life insurance policy.
Facts About a Low Cost Term Life Insurance Policy
Seems simple enough, right? Well, as with all insurance, there are little complexities and loop-holes you need to fill. For instance, the death benefit may not be the same throughout the term life insurance policy depending on whether you choose decreasing, level, or increasing term life insurance. And, what about when your term is over? That's where renewable and convertible term insurance comes in. Take for instance you want a basic 10 year low cost term life insurance policy with the death benefit to stay the same throughout the term life insurance policy, and at the end of the term you would like to "convert" to a different term life insurance policy such as a cash-value policy, without taking another medical exam. In that case you would choose a level term convertible life insurance policy.
Deciding if a Term Life Insurance Policy is for You
Term life insurance does not build cash-value or have the tax benefits like universal or whole life, but it can be a great option for someone who would like life insurance, but can't afford the higher premiums. Here is a check-list to help you decide if a low cost term life insurance policy is right for you:
You're on a budget and cannot afford a very high premium.
You are young, and in good health.
You are looking for a simple, straight-forward, low cost life insurance plan to protect your beneficiaries.
Talking to Your Insurance Agent About a Term Life Insurance Policy
When checking with your agent on term life insurance, ask a lot of questions. Generally, agents do not receive as much commission on term life insurance verses cash-value policies so you may have to probe a little for more information.
Want to build cash value and have lifelong coverage? Check out whole life insurance: Whole Life Insurance Policy Choices
Purchasing a Term Life Insurance Policy
You buy a low cost term life insurance policy with a specified time period, usually one, five, or ten years. During that "term" you pay a specified premium. Your beneficiaries will receive a death benefit if you die during the term of the life insurance policy.
Facts About a Low Cost Term Life Insurance Policy
Seems simple enough, right? Well, as with all insurance, there are little complexities and loop-holes you need to fill. For instance, the death benefit may not be the same throughout the term life insurance policy depending on whether you choose decreasing, level, or increasing term life insurance. And, what about when your term is over? That's where renewable and convertible term insurance comes in. Take for instance you want a basic 10 year low cost term life insurance policy with the death benefit to stay the same throughout the term life insurance policy, and at the end of the term you would like to "convert" to a different term life insurance policy such as a cash-value policy, without taking another medical exam. In that case you would choose a level term convertible life insurance policy.
Deciding if a Term Life Insurance Policy is for You
Term life insurance does not build cash-value or have the tax benefits like universal or whole life, but it can be a great option for someone who would like life insurance, but can't afford the higher premiums. Here is a check-list to help you decide if a low cost term life insurance policy is right for you:
You're on a budget and cannot afford a very high premium.
You are young, and in good health.
You are looking for a simple, straight-forward, low cost life insurance plan to protect your beneficiaries.
Talking to Your Insurance Agent About a Term Life Insurance Policy
When checking with your agent on term life insurance, ask a lot of questions. Generally, agents do not receive as much commission on term life insurance verses cash-value policies so you may have to probe a little for more information.
Want to build cash value and have lifelong coverage? Check out whole life insurance: Whole Life Insurance Policy Choices
Pet Insurance Exclusions
Getting the Right Pet Insurance Policy
Taking the time to understand your particular pet insurance policy is key in getting the right policy for your pet. Companies are different in what they cover and exclude so make sure you get as much information as you can so you can get the most coverage available for your particular pet.
Pet Insurance Policies are Different: Know the Exclusions in Your Pet Insurance Policy
Below is a list of common pet insurance exclusions. Exclusions in pet insurance vary from one company to the next, so again make sure you understand your particular policy.
Common Pet Insurance Exclusions:
1. Pre-Existing Conditions: This most of us understand because it is common to see this as an exclusion in health insurance for humans. In pet insurance, a pre-existing condition is usually something that your pet has before the policy start date. This includes conditions that may not have been diagnosed yet so just because you have not taken your pet to the vet and know they have a condition does not guarantee that you will get covered for the condition.
2. Hereditary Conditions: This really depends on your policy if it is an exclusion or not. And, if hereditary conditions are covered they are usually covered at a lower level.
3. Congenital Conditions: Congenital conditions are not covered because they are considered pre-existing. These are congenital problems that a pet is born with. Some examples include patellar luxation, entropion, ectropion, liver shunt.
4. Fleas, Ticks, and Other Parasites: Some pet insurance policies may provide benefits for preventative medications against parasites but for the most part, getting rid of the parasites would not be covered.
5. Preventable Diseases and Chosen Procedures: Anything that a pet could get a vaccination for to prevent is generally not covered. Also, any procedures you would choose yourself to have done, such as tail docking, is considered an elective procedure and is usually excluded.
6. Teeth Cleaning: Dental care is provided if it is needed due to an injury or accident but general dental preventative care, such as teeth cleaning, is usually not a coverage in pet insurance.
Taking the time to understand your particular pet insurance policy is key in getting the right policy for your pet. Companies are different in what they cover and exclude so make sure you get as much information as you can so you can get the most coverage available for your particular pet.
Pet Insurance Policies are Different: Know the Exclusions in Your Pet Insurance Policy
Below is a list of common pet insurance exclusions. Exclusions in pet insurance vary from one company to the next, so again make sure you understand your particular policy.
Common Pet Insurance Exclusions:
1. Pre-Existing Conditions: This most of us understand because it is common to see this as an exclusion in health insurance for humans. In pet insurance, a pre-existing condition is usually something that your pet has before the policy start date. This includes conditions that may not have been diagnosed yet so just because you have not taken your pet to the vet and know they have a condition does not guarantee that you will get covered for the condition.
2. Hereditary Conditions: This really depends on your policy if it is an exclusion or not. And, if hereditary conditions are covered they are usually covered at a lower level.
3. Congenital Conditions: Congenital conditions are not covered because they are considered pre-existing. These are congenital problems that a pet is born with. Some examples include patellar luxation, entropion, ectropion, liver shunt.
4. Fleas, Ticks, and Other Parasites: Some pet insurance policies may provide benefits for preventative medications against parasites but for the most part, getting rid of the parasites would not be covered.
5. Preventable Diseases and Chosen Procedures: Anything that a pet could get a vaccination for to prevent is generally not covered. Also, any procedures you would choose yourself to have done, such as tail docking, is considered an elective procedure and is usually excluded.
6. Teeth Cleaning: Dental care is provided if it is needed due to an injury or accident but general dental preventative care, such as teeth cleaning, is usually not a coverage in pet insurance.
Experts Agree Cutting Health Care Costs Needs More Exposure
When lawmakers return next week to start back on figuring out how to reform health care, a group of medical experts say that they need to start finding better ways to reduce health care costs.
All the buzz has been about the public option being proposed. The public option proposal has not been getting the support President Obama thought it would and how to cut health care costs unfortunately has taken a back seat.
A group of health experts representing many companies including Cigna Corp, UnitedHealth Group Inc and Aetna Inc say that lawmakers need to get back on track to figure out how to cut health care costs and that is one of the largest problems with health care today. They feel health care would be more accessible to everyone if costs were curbed. Some proposals they suggest are restructuring Medicare for the elderly, providing health insurance pools for employees that are not offered insurance, and offering doctors incentives for avoiding unnecessary and costly procedures.
"It's not good enough that it's just paid for; it actually has to start driving long-term costs down" Posted August 13, 2009
This quote by Sen. Mark Warner echoes what America is feeling. Obama is busy with town hall meetings trying to rally support for his health care reform bill. One of the main points he has been emphasizing is the inclusion of people with pre-existing conditions when purchasing health insurance. Unfortunately for Obama this is not enough for Americans to stand behind his health care reform bill.
With an economy that most Americans feel is still depressed and the huge budget deficit that Americans realize makes us indebted to other countries, most are wanting more information on how Obama's health care reform bill is really going to keep health care costs down and feel they still have not received a straight answer.
All the buzz has been about the public option being proposed. The public option proposal has not been getting the support President Obama thought it would and how to cut health care costs unfortunately has taken a back seat.
A group of health experts representing many companies including Cigna Corp, UnitedHealth Group Inc and Aetna Inc say that lawmakers need to get back on track to figure out how to cut health care costs and that is one of the largest problems with health care today. They feel health care would be more accessible to everyone if costs were curbed. Some proposals they suggest are restructuring Medicare for the elderly, providing health insurance pools for employees that are not offered insurance, and offering doctors incentives for avoiding unnecessary and costly procedures.
"It's not good enough that it's just paid for; it actually has to start driving long-term costs down" Posted August 13, 2009
This quote by Sen. Mark Warner echoes what America is feeling. Obama is busy with town hall meetings trying to rally support for his health care reform bill. One of the main points he has been emphasizing is the inclusion of people with pre-existing conditions when purchasing health insurance. Unfortunately for Obama this is not enough for Americans to stand behind his health care reform bill.
With an economy that most Americans feel is still depressed and the huge budget deficit that Americans realize makes us indebted to other countries, most are wanting more information on how Obama's health care reform bill is really going to keep health care costs down and feel they still have not received a straight answer.
Insurance Exchange
Definition: A health insurance exchange is the proposed way under the Obama administration to help with health insurance competition and health insurance reform. This new program will be a key component in providing health insurance to millions of uninsured Americans.
Primarily what the health insurance exchange will do is bring together private health insurance companies along with a government health insurance option to compete for business among individuals and small businesses. To be in the health insurance exchange the health insurance policies offered cannot exclude someone for pre-existing conditions.
The idea is to provide more competition thus bringing down the price for health insurance. Along with competition bringing down the price of health insurance, creating a pool for small businesses (small businesses can group together to purchase health insurance instead of individually) will provide lower costs for employers similar to the lower costs larger companies are able to secure because of the larger amount of their employees.
Also Known As: insurance exchange, health insurance reform
Examples: ABC Manufacturing Company only has 30 employees and did not provide health insurance. But under the new health insurance reform program by the Obama administration he is required to provide insurance for his employees or pay the government a fee. He looked into the health insurance exchange set up by the Obama administration under the health care reform program and found that he was able to find a health insurance plan to cover his employees at a reasonable cost.
Primarily what the health insurance exchange will do is bring together private health insurance companies along with a government health insurance option to compete for business among individuals and small businesses. To be in the health insurance exchange the health insurance policies offered cannot exclude someone for pre-existing conditions.
The idea is to provide more competition thus bringing down the price for health insurance. Along with competition bringing down the price of health insurance, creating a pool for small businesses (small businesses can group together to purchase health insurance instead of individually) will provide lower costs for employers similar to the lower costs larger companies are able to secure because of the larger amount of their employees.
Also Known As: insurance exchange, health insurance reform
Examples: ABC Manufacturing Company only has 30 employees and did not provide health insurance. But under the new health insurance reform program by the Obama administration he is required to provide insurance for his employees or pay the government a fee. He looked into the health insurance exchange set up by the Obama administration under the health care reform program and found that he was able to find a health insurance plan to cover his employees at a reasonable cost.
Mandated Health Insurance
Definition: Mandated health insurance is when one is mandated, or required to purchase health insurance. This is the term most often used in the new health insurance reform legislation by the Obama administration.
The idea behind mandated health insurance is that if the government required every citizen to purchase health insurance it would reduce overall costs. The overall costs would be reduced for many reasons. One way it would reduce costs is that people with health insurance tend to get preventative care and use a primary doctor. By getting preventative care, more expensive health care costs are usually later avoided. In addition, by using a primary care physician instead of just going to the emergency room, costs are dramatically reduced again since an emergency room visit is much more expensive.
Also Known As: shared responsibility, required health insurance
Examples: Leslie did not have health insurance. She often went to the emergency room when she was sick. The costs were usually not paid by Leslie but absorbed by the other hospital patrons which over time raised the cost of health care. If Leslie were mandated to buy health insurance by the government, she probably would visit a primary care physician instead of the emergency room and eventually health care costs would stabilize.
The idea behind mandated health insurance is that if the government required every citizen to purchase health insurance it would reduce overall costs. The overall costs would be reduced for many reasons. One way it would reduce costs is that people with health insurance tend to get preventative care and use a primary doctor. By getting preventative care, more expensive health care costs are usually later avoided. In addition, by using a primary care physician instead of just going to the emergency room, costs are dramatically reduced again since an emergency room visit is much more expensive.
Also Known As: shared responsibility, required health insurance
Examples: Leslie did not have health insurance. She often went to the emergency room when she was sick. The costs were usually not paid by Leslie but absorbed by the other hospital patrons which over time raised the cost of health care. If Leslie were mandated to buy health insurance by the government, she probably would visit a primary care physician instead of the emergency room and eventually health care costs would stabilize.
Health Insurance Reform Definitions
he health care reform terms are piling up in the news and on talk radio. You want to understand what lawmakers now want to call "health insurance reform," but it gets a little confusing.
If you are feeling like you just need a quick primer on some of the health care insurance reform definitions then take a look below at some of the most common health care reform terms:
Public Option Public option is the term being used for a proposed government choice for health care insurance. This is part of a larger bill proposed by President Obama in the first year of his presidency to overhaul the health care system with health care reform and insurance reform.
Fee for Service Fee for service is the term for how doctors get paid. For each service the doctor performs they get paid a fee. The fee for service health care model has been criticized by health care reform advocates.
Pre-existing Conditions Having a pre-existing condition when shopping for health insurance can a difficult task. Understanding the definition of a pre-existing condition can be a good first step in obtaining a good health insurance policy.
Mandated Health Insurance Mandated health insurance is when one is mandated, or required to purchase health insurance. This is the term most often used in the new health insurance reform legislation by the Obama administration.
Insurance Exchange A health insurance exchange is the proposed way under the Obama administration to help with health insurance competition and health insurance reform. This new program will be a key component in providing health insurance to millions of uninsured Americans.
If you are feeling like you just need a quick primer on some of the health care insurance reform definitions then take a look below at some of the most common health care reform terms:
Public Option Public option is the term being used for a proposed government choice for health care insurance. This is part of a larger bill proposed by President Obama in the first year of his presidency to overhaul the health care system with health care reform and insurance reform.
Fee for Service Fee for service is the term for how doctors get paid. For each service the doctor performs they get paid a fee. The fee for service health care model has been criticized by health care reform advocates.
Pre-existing Conditions Having a pre-existing condition when shopping for health insurance can a difficult task. Understanding the definition of a pre-existing condition can be a good first step in obtaining a good health insurance policy.
Mandated Health Insurance Mandated health insurance is when one is mandated, or required to purchase health insurance. This is the term most often used in the new health insurance reform legislation by the Obama administration.
Insurance Exchange A health insurance exchange is the proposed way under the Obama administration to help with health insurance competition and health insurance reform. This new program will be a key component in providing health insurance to millions of uninsured Americans.
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