Quick Insurance Tips

While you may be able to find insurance coverage for a pre-existing medical condition in certain circumstances and MediGap insurance without pre-existing conditions issues is available in most situations, forcing insurance companies to insure all comers would prove disastrous to our present system.

About a decade or so ago the State of New York forced the insurance companies to insure everyone regardless of their medical history. What happened? Almost all of the health insurance companies serving the non-group market fled the state. The remaining providers were forced to raise their rates beyond an amount that most could afford.

Basically what happened was that sicker people started buying health insurance policies. They cost the insurance companies more than they paid in. This forced the companies to raise their rates. This meant that fewer people could afford to keep their coverage. Those that were already sick squeezed their budgets tighter to keep their coverage when they could. This meant that more healthy people dropped their coverage than unhealthy people did. The companies raised their rates again. This cycle continued and continued.

Guaranteed medical insurance will only work when there is universal health insurance. When healthier people are allowed to opt out of the system, the rates just go up and up.

A stay-at-home mom brings no money in the door. Since disability insurance is designed to replace income, it would be easy to say that a stay-at-home mother should not have disability insurance.

Although a stay-at-home mom brings no money in the door, she keeps a lot of money from going out of the door. If we only look at the cost of childcare, she saves her family a lot of money.

Of course, if she is married to a man with a high income, disability insurance is more important to protect his income. However the economic loss of the person who does the important job of taking care of the children, should be covered with insurance if at all possible.

Is Long Term Disability Insurance Taxable?

As a general rule, if you pay for disability insurance with pre-tax dollars the income received from the company is taxable. If you pay with post-tax dollars the income received from the insurance company is not taxable. This is true for stay-at-home mom disability insurance, short term disability insurance in ohio, group disability insurance, individual disability insurance or mortgage income disability insurance.

Protecting your income against loss cannot be over emphasized. For many families, just six months of a parent being unable to work can set a retirement plan back by a decade. This is true whether the parent works in the home or out of it.

Chances are, the loss of mom’s services would have a major impact on the family financially. Her disability could mean that her husband would be forced to work less. It could mean that the family would have to find money to pay for child care. It could be a combination of both. In any event, stay-at-home moms have a positive impact on the family’s finances and that economic value should be insured if at all possible.

An insurance premium is the payment you make to your insurance carrier to “rent” your policy. The word “premium” as it applies to insurance is just a fancy word for “rates” or “costs.” You can substitute either word in the phrase “what are monthly auto insurance premiums in nyc?”

An insurance premium may be paid monthly, quarterly, semiannually or annually.

At one time life insurance premiums were collected weekly. This is back in the days of the debit agents. These agents went door-to-door and sold small policies and collected premiums.

Insurance premiums can be guaranteed for the life of a policy as with some life insurance policies. They can also be subject to increase at any time as with some health insurance policies.

The money you pay your insurance company to keep your policy active is your premium. This may be one aspect of insurance that isn’t complicated.

Health insurance plans that cover maternity are often much more expensive than otherwise similar individual health insurance plans that do not provide pregnancy insurance. For this reason you we suggest two strategies to lower your costs.

Two Health Insurance Policies May be Cheaper

When you find the best health insurance for maternity you may find that the policy is not the best one for the rest of the family. This may mean that you it is in your best interests to have one policy for the woman seeking to get pregnant and another for the rest of the family. We typically see savings of $100 to $300 a month using this strategy.

Maternity Insurance Benefit Timing

I’m constantly asked “can you get insurance while pregnant?” Usually the answer is “no.” There may be a governmental mandate in your area or a state-sponsored program that will cover you. Even if this is the case, chances are your choices will be much more limited, if you have any choices at all if you find yourself pregnant with no insurance.

Because of this, it is important to get the coverage in place before you conceive. With some policies, you must purchase the coverage long before you conceive. With others you will only need to be insured just before conception.

Since insurance that covers maternity is so expensive ideally, you would get the coverage just before you need it and drop it right after. While this is a recommended strategy to lower your costs it comes with an obvious risk and one that isn’t so obvious.

Pregnancies aren’t always planned. By trying to save money by going without maternity until you need it you may wind up paying more because you got pregnant before you purchased the additional coverage.

If your health declines, you may not be able to qualify for a maternity insurance plan. Something as unrelated as a broken leg can keep you from getting another policy until you are released by your doctor. Health issues that are more serious, such as diabetes, can keep you from changing your coverage at any time.

With the medical costs associated with pregnancy increasing each year it is important to have the maternity coverage when you need it. However, since this coverage is so expensive to purchase as part of an individual health insurance policy, thought must be given to the process as you look for the best health and maternity insurance for your family.

Failing to update your insurance policies can cost you a lot. It can cost you in extra monthly payments for coverage you no longer need. It can cost you when hazard impacts an uncovered or poorly covered asset.

Your need for insurance may change from year to year. You should review your coverage each year to make sure your insurance covers you well.

Health Insurance

Owing a health insurance policy that included maternity insurance may have been a crucial component of your insurance planning a few years ago. However, if you are past the baby making stage of your life, maternity insurance may just represent a cost with no benefits.

Your need for low deductible insurance may have also passed. If your children are older, you may no longer be concerned about frequent visits to the doctor and my do be just as well served by a higher deductible policy.

Life Insurance

If the amount you have purchased for life insurance will no longer generate the income you want your family to have after you are gone, or will no longer pay for the things you intended it to pay for, it may be time for a review. Conversely, if your assets have grown, you may need less insurance on your life. If your children are no longer minors, you may need less coverage as well.

Auto insurance

If your car has gotten older, you may want to drop the comprehensive and collision coverages on it. You may be surprised at how low a payment you might get for the loss of your car. It may be best to take the money you save by having a lower auto insurance premium and use it to help you save for a new car.

Home insurance

Your home insurance policy should cover, among other things, the cost of rebuilding or repairing your home. If construction costs have gone up in your area since you last updated your coverage, you may want to update your policy.

Having two health insurance policies means that you will pay twice. It doesn’t mean that you will get twice the benefits. When you combine the insurance rates they may be double the rate of having one policy, however when you combine the benefits they won’t be.

You may wind up with slightly more in benefits, but the additional benefits of the second policy are unlikely to even come close to justifying the additional costs.

A medical insurance policy will typically have a provision written into the contract that greatly reduces your benefits if you have a second policy. There are exceptions. Certain types of policies, such as cancer policies, other critical illness policies and hospital indemnity policies will typically pay their full benefits even when you have other coverage.

Most companies will not issue you a policy if you say that you intend to keep your current health insurance policy inforce. This is for your protection. A second health insurance policy isn’t likely to be in your best interest.

It is better to simply get one very good policy. To find health insurance rates for Alabama or health insurance quotes for any other area in the US request private medical insurance quotes from us.

Using two health insurance policies to cover your costs will probably be much more expensive than simply using the money you would have paid on the second policy to cover your uncovered expenses.

The primary homeowners insurance coverage that most people think about is called the “A Coverage” or “Dwelling Coverage.” In a standard homeowners policy, this covers the house and structures that are permanently attached to it.

When it’s time to learn how to file home insurance claim, neither a home insurance company in Houston TX nor a provider of home insurance Chicago IL will be likely to pay you more than you are covered for. They are also unlikely to refund monies to you if you have over-insured your home.

Often home owners will base the amount of coverage on the market value of the house. This is incorrect for two reasons.

The first reason is that market value of the home includes the land the home sits on. A homeowners insurance policy does not cover land.
The second reason that this is incorrect is the fact the coverage amount should be based on the cost to repair or rebuild a home. Often the market value of a home is much higher or lower than the potential cost of rebuilding it.

When selecting a value for the Dwelling Coverage of your homeowners insurance policy make sure that you select an amount that will cover the cost or rebuilding your home. Saving money on health insurance just requires a little homework. Keep reading and keep saving.

Are zero deductible health insurance plans oversold?

There are two things that the careful consumer should know about no deductible health insurance plans. The first is that even with a zero deductible, you will probably need to pay something towards your medical care. The second is that a zero deductible health insurance plan will usually have a monthly price tag that isn’t justified by the additional benefits.

Deductibles, coinsurance and co-pays are the typical cost shares that are associated with health insurance policies. A no deductible health insurance plan will probably have coinsurance and co-pays. In fact, often zero deductible plans will have higher coinsurance and co-pays than other plans. It pays to read all the fine print before making a final decision.

Zero deductible health insurance plans are often more expensive than they are worth. You may wind up paying a lot more in monthly premiums and getting a little more in benefits. Making a careful comparison and doing some arithmetic can help you make the right decision.

No deductible health insurance plans are often much more expensive than high deductible health plans that are Health Savings Account compatible even when you factor in the added benefits.

Private medical insurance prices are influenced by several factors.  You may be able to lower your cost for health care by eliminating unneeded coverage, by increasing your fitness level or by shopping around for coverage.

Medical insurance is expensive today because the cost of a hospital stay and the cost of a doctor’s visit are expensive.  The cost of health care rises each year as healthcare providers ask for more, more expensive procedures become available and hospitals charge more for their rooms.  By reducing your insurance company’s costs you may be able to reduce your cost as well.

You may be able to reduce coverage for certain benefits that you don’t need or that are more expensive than they are worth.  Maternity insurance, prescription coverage and dental insurance may be either unnecessary or over priced.  People often pay extra for a policy that includes maternity insurance long after they have had their last child.  Prescription coverage and dental coverage will often have relatively low annual limits.  If so, the amount you would have at risk if you eliminated one of these benefits is the amount of the coverage limit less the cost of the coverage.  This may mean that dropping the added cost is a good idea.  Spend some time looking at the limits and the costs of these benefits and do the math to make sure that they are worth keeping.

Raising your deductible may also reduce your costs. By taking more or the risk, you can often reduce your costs by a lot. In some cases the amount of extra risk you take may be less than the amount of money that you save. Make sure than when you compare your premium savings to an increase in your deductible you multiply the premium savings by the appropriate factor to get the annual savings. Your deductible is probably based on a calendar year. You should compare it with the annualized savings to make an apples to apples comparison.

If you have been charged extra because of a medical condition or because of your weight, you may be able to reduce or eliminate the surcharge.  You should find out what needs to happen in order to get your rate reduced if this is the case.

Often an insurance company will reduce or eliminate the surcharge if you have had a period of time where you haven’t needed treatment.  If your preexisting medical condition has gotten better, you may be able to get your rate reduced.  You may need to lose a small amount of weight or reduce your blood pressure readings by a small amount.  Knowing what requisite numbers may motivate you to do the things you need such as exercise or eat better.  You may be able to save more than just money by doing what it takes to get your health insurance premiums down.

Shopping around is a tried and true practice for saving money on health insurance, cars and many other things.  There is often a large variance in medical insurance prices.  You may find that you can save hundreds of dollars a month by switching to another company or even to a different type of policy that is offered by the same health insurance carrier.

There may be several factors that you have control over that will impact your cost for health insurance and health care in general.  Reducing your coverage in unimportant or unneeded areas, reducing surcharges for pre-existing conditions and shopping around can all help you bring your costs for health insurance down.

Today most health insurance companies use provider networks for their policies.  You should know the advantages and disadvantages of plans that use provider networks.

Advantages of Health Insurance Provider Networks

The advantages of a policy with a network of doctors, hospitals and other providers are the lower cost for medical care and the lower premiums for the policy.

When you use a doctor or other provider that participates in your health insurance carrier’s provider network the provider charges less than they would if you didn’t have insurance.  The lower rate is called the “negotiated rate.” The insurance company or you will pay a rate that the carrier has negotiated with the provider.  This rate can be half of the standard price for a given service.

This means that your costs are lowered in two different ways.  First, the insurance premiums you pay for your policy will be lower than they would be for a similar policy that does not use a network.  Second, if you have to pay for the service out of your pocket because you haven’t met your deductible, you will pay the lower negotiated rate.

Disadvantage of Health Insurance Provider Networks

The disadvantage is that you will pay more for care if you choose to seek treatment from an out–of-network provider.  In some cases, you will have to pay the entire cost of care received from a doctor, hospital or other provider.  In other cases you will pay a higher percentage.

Emergency care is often an exception to this.  Your share of the bill may the same as it would be if you used a network provider if you use a non participating doctor or hospital during a medical emergency.

It is important to know how your policy covers you when you are out-of-network.  HMO plans will typically cover nothing but emergency care if you are out of network.  PPO and POS plans will typically cover some costs when you use a non-participating provider.  However, you will often have a higher deductible and/or a higher coinsurance percentage.

Special Health Insurance Network Issues

It is important to be able to have access to in-network care at all times if possible.  If you are a college student, ideally you want an insurance policy with a strong network near your parents’ home as well as near your school.  “Snow birds” and other people who have secondary residences that they spend substantial amounts of time in will have similar concerns.