Quick Insurance Tips

It is important to distinguish between a discount card that is not connected with insurance and a card from an insurance company that allows you to pay the insurance company’s negotiated rate.  Both may have their place, but it is important not to overpay for a discount card because you believe that it provides more coverage than it does.

If you have health insurance, you will probably pay the insurance company’s discounted rate for services and prescriptions when you present your card.  This rate is also known as the negotiated rate.  In this sense your ID card becomes a health insurance discount card.

However, your ID card (or the insurance behind it) provides you with more than a discount on medical services.  It probably limits the amount you would have to pay out of pocket in a catastrophic situation.

You may have a $5,000 out-of-pocket limit on your policy.  This can mean that even if you have a $75,000 hospital bill your costs are limited to $5,000.

(With some policies you will continue to pay your co-pays even if you have met your “out-of-pocket-limit”.  Also your deductible may be separate from your “out-of-pocket-limit.”  This can mean that you pay your deductible plus your “out-of-pocket-limit.”)

With a discount card you may get 10% or 25% off any covered services but there will not be a limit to what your costs can be.  This means that in a scenario where you have a $75,000 medical bill and get a 25% discount, you will still be responsible for $56,250 of the costs.

Unfortunately, some of us cannot afford or cannot medically qualify for health insurance.  A discount card that is not connected with a health insurance policy can reduce your bills if health insurance is not available to you, but it is important that you know that that there is a big difference between a discount card and health insurance.

Having a baby without insurance can be costly for three reasons. The cost of a normal pregnancy is very high. The cost of a pregnancy with complications is even higher. The cost of having an unhealthy baby who is uninsured can be even higher than that.

Maternity insurance may be available to you. This depends on your location and other criteria. If you are thinking about getting pregnant you should think seriously about your health insurance. Make sure that your health insurance covers pregnancy before you conceive.

If you are already pregnant, you may qualify for state-sponsored health insurance plans that will cover your maternity costs or part of them.

You will probably have much better options if you are not already pregnant. It is better to get coverage in place before you start trying to conceive.

Waiting until the last minute and having a baby with no insurance can cost you and your family more than the cost of a new car.

Disability insurance for self employed business owners is a critical type of insurance that is often overlooked. When we work for others, we will often receive disability insurance as part of a benefits package, but when we work for ourselves we often overlook this important coverage.

Some families will purchase insure their homes and cars but forget to insure themselves. The bank requires that we protect them by insuring our homes. The law says that we need to have liability insurance if we choose to drive.

There is no law stating that we need disability insurance, but our ability to work and earn a living pays for our homes, cars and everything else.

From a financial stand point, a permanent disability can be worse than death. An individual who is disabled will still require food shelter and clothing. A disabled person can be a drain on his or her family’s finances.

A person with a good disability insurance policy can continue to contribute to his or her family’s financial well being.

Reducing the Cost Of Disability Insurance

The cost of disability insurance is largely determined by the type of job you have. If you are planning to change careers to one that is more physical, you may want to purchase your policy before you change jobs.

Also long term disability insurance cost can be reduced by taking a longer elimination period. The elimination period is the time between the onset of your disability and the point in time when you start qualifying for benefits.

Bear in mind that your first check will come at least 30 days after the end of your elimination period.

Disability insurance pays you when you are unable to work. This means that if you are in a car accident or have a heart attack an insurance company may be able to help you pay your bills.

Disability insurance for self employed individuals can make an injury or sickness a small setback instead of a business-ending catastrophe. If you have money coming in when you are disabled, you may be able to get back to work and pick up where you left off.

Finding life insurance policies for mentally handicapped adults may be easier than you think. Many handicapped people live just as long as the population in general. Therefore life insurance companies will often accept and approve applications from those with disabilities.

Whether or not an individual will be approved is going to be based on the insurance company’s opinion of their expected longevity. Some conditions that affect the brain and the body in a very significant way have little impact on longevity. Some do.

When researching life insurance policies for mentally handicapped adults one should first look at carriers and agents offering standard life insurance policies. Policies designed for those who are less healthy may be a viable second option, but standard policies should be looked at first.

If you are planning to buy health insurance in the near future, there are several things that you should consider. They include:

• The Network of Doctors and Hospitals
• The Deductible and Co-Pays
• The Insurance Company

The Network of Doctors and Hospitals

An insurance company’s network is paramount when selecting a private health insurance policy. It may create problems for you and your family if your local hospital isn’t in the network. It can be inconvenient for you to get procedures done. It may also be inconvenient for your visitors.

Of course if you are satisfied with your physician and he or she isn’t in the network this can also cause problems. Some plans will compensate out-of-network doctors at a lower rate. Some will not compensate them at all. You may be forced to choose between a low cost health care policy and your favorite doctor.

The Deductible and Co-Pays

It is important to achieve the right balance between your monthly premium for insurance and the coverage. Low deductible policies tend to cost more and high deductible policies tend to cost less. However as it regards health insurance, you don’t get what you pay for. You get the benefit of your research.
You may find that a low health insurance policy that costs twice as much as a high deductible policy delivers only fifty percent more in benefits. It is true that you will get more if you pay more, but it isn’t necessarily true that you will get an extra dollars worth of extra benefits for each extra dollar you spend.

The Insurance Company

The company you choose will of course be important as well. Be sure that the company you choose is approved by your state’s insurance department and has a reputation for paying its claims.

Buying Health Insurance Summary

Buying health insurance can be complicated, but buying the wrong policy can have a devastating impact on your financial well being. It is important to be aware of more than just the price. The network, the benefits including the deductible and co-pays and the insurance company behind the policy are all important issues to consider.