Insurance Experts

It is always better to find out vital information about life insurance prior to buying cover. This ensures that you obtain the best cover your money can buy.

10 facts about life insurance are:

1) Research the market: It is nearly always preferable to investigate all the cover available and to be clear about the monthly fees before deciding. A great place to source this info is online.

2) The sooner the better: Do not procrastinate in buying a life insurance policy. The best time to purchase a policy is when you are young and in employment. This will give you a choice of great policies.

3) Do not get too much: Try to have just the correct amount of insurance that is within your budget. Getting too much cover will attract increased costs which is unnecessary.

4) Always tell the truth: Never try to misguide when completing the insurance application. If you are discovered hiding facts, such as smoking, the insurance provider may terminate your plan.

5) Stay healthy for lower costs: Health conscious individuals pay the least expensive fees. But, habits like cigarette smoking, too much alcohol, intake of drugs and obesity can make your premium sky high.

6) Never pay unnecessary fees: The fees of some insurance coverage are high due to the fact they also incorporate the commissions of the broker. To prevent this, go with an insurance company that offers policies sold direct.

7) Monthly fees can cost more: One way to keep costs down is to avoid monthly costs. You should therefore go for bi-annual or annual premiums, which are discounted.
Check your cover from time to time: You should check your cover when there is a major change in your circumstances, like the birth of a child or your children starting university. Occasional reviews help you to ensure that you are paying the right fees, and that you have the right level of cover.

9) Do not rely upon your employers insurance cover: Most employees are provided with company insurance by their employers. But this may be insufficient for your requirements. Additionally, the group insurance policies get cancelled when you depart the company and because of this can not be relied upon.

10) Higher cover could be cheaper: With life insurance, monthly fees get less expensive as you go for increased cover. As such there is nothing wrong in increasing the cover, if your budget will allow it.

- Have you taken a good look at your health insurance policy lately? How about the fine print? When you do, you’ll find some “eye opening” underwriting. From new application to claims processing there are many barriers before you can get benefits. However, ChamberHealth USA is pioneering co-op healthcare in an effort to avoid the heavy handed underwriting commonly found with traditional health insurance companies.

Let’s start with the beginning of the process. The first thing you face is pre-existing conditions, if you do have any you will be denied or you have a long waiting period. Also, if you are accepted with a pre-existing condition you will assuredly pay extremely high premiums. Next you have deductibles which has to be paid before any benefits are given, after which you have co-insurance that is typically an 80/20 split between the insurance company and you.

The next barrier is the limitations. If you have insurance through a large company some of these barriers may not apply to you but if you are in the majority who own or are employed by a small business, you will be subject to limitations such as limited office visits to your doctor or a lifetime maximum. There may also be exclusions, such as, no other insurance allowed with your primary insurance. And don’t forget the inevitable annual rate increase which has been as much as 30% in one year. Finally, for extras such as dental, vision and chiropractic care, it will either be an extra expense or not covered.

When it comes to health insurance most of us operate from assumptions. We assume because a health insurance company is large or well known, it is a good deal and will pay our claims. We also have the misconception that payments of our claims are guaranteed, nothing can be further from the truth. In fact, large percentages of claims are denied on a daily and ongoing basis. And yet we never ask big insurance companies the percentage of denials the company has in the previous year. We also assume the large insurance companies will never go bankrupt or insolvent and who ever heard of a big company going out of business?

Usually most of us aren’t aware of the heavy handed underwriting from traditional health insurance companies until we encounter a problem with a claim. Then we are directed to our policies fine print or disclaimers.

Before signing up for health insurance, it is very important to know what the limitations are. For example; will it cover your physical therapy? Does it cover your prescriptions? How many office visits to your doctor are allowed? What percentage of claims have they denied in the last 2 or 3 years? How many rate increases have they had in the last five years? These questions and a few of your own will help you understand what you are buying as well as move you from assumptions to what is fact.

There are alternatives available to traditional health insurance just makes sure they don’t operate under the same heavy handed underwriting as the traditional health insurance companies. So the next time you decide on health insurance, pay less attention the premium and more to the policy.

Getting an insurance is one of those ‘life’ requirements that you should be looking into early in your career, especially now when you are still able to work and earn money. in addition to being better able to pay for the insurance, younger individuals also pay less. This is one of the principles of insurance. Since younger people are less likely to die, they are given cheaper rates as compared to older individuals.

Insurance protect financially you and your family in the future. Depending on the kind of insurance that you will choose to get, insurance can even provide for your health concerns, for your retirement and even for your death and burial.

But while it is important that we are protected against any unexpected eventualities, some people still shy away of availing insurance on their own, preferring their companies to do it for them. Like legal matters, all those insurance mumbo jumbo tend to confuse and sometimes even frighten people.

Here are some of he frequently asked questions about insurance.

What are the kinds of insurance? There are two major types of insurance. The life and the non-life insurance. The life insurance, as the name suggests, protects the family of the person in case something happens to him. When a person who is insured dies, the money that he insured will be given to the beneficiary that he has chosen.

The non-life insurance is an insurance that protects properties. Under this category, there are several different types. There car insurances, which protect automobiles from wreckage in case of accidents; property insurance, which protects properties especially houses from fire and other forms of destruction; deposit insurance, which most banks have in order to protect their depositors from losing their money in case the bank suffers financial setbacks; and health insurance, which helps in covering for medical and hospital costs. Among the various non-life insurance, the most popular is the health and car insurance.

Some insurance also provide for the future. Some of the insurances are retirement plans and death plans, which covers for burial costs.

What is the difference between a premium and a face amount? Premium refers to the amount that you have to pay every year for the insurance. Some insurance companies also offer to divide the premium into monthly installments to help their clients. The face amount on the other hand is the amount that you have insured yourself into. For example, if the face amount in your policy is set at $500,000, then your beneficiary will receive $500,000 when you die.

What do you mean by double indemnity?

Some insurance policy offer an accidental clause that would double the face amount in case death has been established as accidental. This is done to protect the insured’s family in case of an untimely death. Double indemnity means that the face amount will be doubled when death is accidental.

Is the beneficiary always the legal spouse?

No. Contrary to popular opinion, it is not always the spouse who is the beneficiary. It is up to the person to choose, who he names as beneficiary. It can be any member of the family as long as insurable interest is established. If in case, the children are named beneficiaries and are still not in legal ages, a guardian will be named to assume control of the money for them.

Of course, no-one likes to think that they or someone that they love might become seriously ill. However, according to statistics about a fifth of all adults in the UK will become critically ill before they reach retirement age. Critical Illness Cover allows people to protect themselves if the worst should happen by providing a financial safety net for them.

What is Critical Illness Cover?

Critical illness cover is an insurance product that pays out a tax free lump sum to policy holders who become seriously ill whilst they have cover in place.

The Benefits of Critical Illness Cover

Critical illness cover protects against a wide range of common illnesses that often result in victims becoming incapacitated. People who fall ill from these diseases frequently need expensive and on-going medical care.

By taking out critical illness cover, you can ensure that you will be able to pay for the medical treatment that you will need if you become seriously ill.

Furthermore, if you become seriously ill, chances are that you will not be able to work. By providing a lump sum benefit, critical illness insurance covers this potential loss of income so that you can still pay your general living expenses.

This means that not only will you be able to provide for yourself in the event that you become critically ill, but you will also be able to ensure that your dependents are cared for. Critical illness insurance can also be taken out to cover your children. This means that you will be able to ensure your children get all the treatment and care they need if they become seriously ill. It also means that if you or your spouse has to take time off work to care for a seriously ill child, you will still be able to meet your living expenses. The real benefit of critical illness cover therefore is that it provides a financial safety net at a time when you might really need one.

Are you considering on starting a business and worried about the costs of insurance? You should as the number one cause for business failure is lack of cash flow and/or capital. The initial down payments for annual insurance policies are high and the premiums even higher, but in this day and age of lawsuits, you better be protected just in case.

In fact many companies will require that you have business commercial insurance just to enter their property. Commercial Insurance considerations are key in the Mobile Service Business Sector and you will need to provide additional insurance certificates or certificates of insurance nearly everywhere you go. Corporations and their risk management departments will require them.

Insurance is not cheap and is a significant cost and has increased since 1992 every single year. It is a killer for small business. But until we Shoot All the Lawyers, as some shoot from the hip entrepreneurs will belligerently call out, you have to deal with it and pass this onto the consumers, everyone does, except the Hispanic Illegal Aliens that you compete with “no business license, insurance, identification” and that is the way the real world works?

You need a good insurance policy and you must protect your company and your personal assets. Cutting short on insurance could cut the life of your business short as well. I certainly hope this article is of interest and that is has propelled thought. The goal is simple; to help you in your quest to be the best in 2007. I thank you for reading my many articles on diverse subjects, which interest you.

The costs of long term care, just like any the costs of any health care, can be very expensive. Many people opt to purchase long term care insurance; though residents of some states feel the insurance benefits the state more than it benefits the policy holder. Fortunately for residents of sunny California, purchasing long term care insurance offers additional benefits that are not offered in most other states. This is because California has a partnership for long term care program. This means that in California, you do not have to spend your own money, commonly referred to as “spending down,” or use all of your own assets in order to qualify for state financial aid when it comes to your health costs.

In California, there are two basic types of partnership program policies. The first one covers any health care benefits that you receive in a nursing home or assisted living facility, which are the two most expensive areas of long term care, especially in the northern states. The second type of partnership program policy covers all health care benefits, whether you receive them in a nursing home, assisted living facility, or at your own home.

Some of the most basic health and financial benefits of a California partnership program include benefits that can be received in your own home and/or a nursing home, services to help you plan and receive the long term health care you need, a deductible that you only have to pay once in your entire life, premium waivers during your stays at a nursing home or assisted living facility, and protection against inflation should the cost of long term health care rise.

Yes, California residents are quite lucky to have the option of looking into and taking part in a partnership long term care insurance program that does not require them to spend any of their own money for the costs of long term care.

The Consolidated Omnibus Budget Reconciliation Act of 1985, more commonly referred to as COBRA, is a federal law which is designed to ensure that an individual can continue to receive health insurance coverage for a period of up to 18 months following the termination of his employment. Most, but not all, companies that offer group health insurance schemes to their employees are subject to COBRA. In some circumstances coverage under COBRA can be extended from 18 months up to a maximum of 36 months.

COBRA protects individuals from losing their health insurance benefits when they lose their employment and is a temporary measure that is designed to help people through this potentially difficult time This said, not every employee who loses his employment will qualify for COBRA but employers should be conversant with the law and be able to advise their employees accordingly.

The law permits a terminated employee to purchase health insurance for himself and his family (provided the family were covered during employment) at the group coverage rate even though the employee is technically no longer a part of the group. The cost however can be high as the employee will now need to pay 100% of the cost each month, together with a surcharge of 2%.

Although most often thought of in terms of termination, COBRA can also come into effect in the event of a change of employment status such as reduced hours, or divorce from an employee of eligible status. Cover will normally continue for the time specified in the act or a shorter period if the employee takes out individual health insurance or is covered by another group health insurance plan.

Because COBRA extends a terminated employees health insurance for a period of 18 months, terminated employees do not need to worry about a change in their health insurance benefits. Coverage under COBRA insurance remains exactly the same as that provided during employment and the only change is in the responsibility for the payment of monthly premiums. It should be noted however that it is possible for the benefits under COBRA to change if an employer changes the health insurance plan being offered to current employees during the period of cover.

The important thing to remember about COBRA is that it is designed to be a temporary measure and, while that guarantees health insurance coverage for a period of up to 18 months, once this period expires you will find yourself without health insurance unless you make alternative arrangements or are covered by a group scheme from a new employer.

One of the dangers of COBRA insurance lies in the very fact that it is temporary. If, for example, you should fall ill while covered by COBRA you may find it difficult, or indeed impossible, to get future health insurance if this illness is subsequently classed as pre-existing and is ‘uninsurable’, as might be the case if you were to develop cancer.

If you think you have healthcare insurance, here are a few simple questions you might ask yourself: Have you met your deductible? If so, what were your out of pocket costs for the year? How much did you and your employer pay for your healthcare insurance last year and what did you get for it? And where is your money going? According to the California Health Care Foundation[1] 45 million Americans are “uninsured.” While this number may seem alarming, consider the fact that 100% of American’s are essentially uninsured on the 1st day of January, every year, and they remain so until they have met their deductibles—something that insurance companies are increasingly making an impossible thing to do. You owe it to yourself to find out the actual costs of healthcare in order to make intelligent decisions about what you CAN afford. Here are some more statistics that you might find alarming:

1. In 2004, the average healthcare premium employers were charged for a family of four averaged $9,950[2].

2. By 2006, it is predicted that the average annual family insurance premium will reach $14,500[3].

3. National surveys indicate that the primary reason for being uninsured is for the simple reason that insurance is not affordable[4].

4. There are more Americans (50%) who are now worried that they cannot afford their healthcare insurance than there are (42%) who report being worried about not being able to afford their healthcare[5].

How do bills get paid?

Don’t be fooled by the difference between billing and reimbursement. Your insurance company will readily send you a copy of the amount that was billed for your latest healthcare encounter. What was actually paid—if anything—however, is actually another story and it would behoove you to find this out for yourself. Let me give you an example.

On October 6, 2003, the hospital sent a bill to my insurance carrier (Blue Cross of California) in the amount of $11,569.20 for “Inpatient Services” related to an uncomplicated c-section and a 2-day stay. My insurance carrier “discounted” the bill by $9,869.20 to $1,700.00. This is the “fair and reasonable” amount they “pay” for this service. But wait, who paid? I did! This claim put me over my deductible for the year by whopping $7.70. The amount applied to a member’s deductible is always the amount billed minus the “patient savings” minus any insurance reimbursement and amounts “not allowed.”

Mark my word, essentially, you will require major surgery or you will have a significant accident that results in enormous bills before you will meet your deductible—if you are still even able to meet this amount at all. And until you exceed this amount, you are a cash paying patient. Make no mistake about it.

See for yourself. In my case, the amount applied to the deductible for the above transaction was: $11,569.20 - $9,869.20 - $11.00 = $1,689.00.

If you are still a non-believer, I can show you the bill on April 4, 2003 for $766 where I paid $266 and only $84.26 was applied to the deductible. I have many more examples and I’m sure that if you pay attention, you will find plenty of your own.

But can you really afford to pay cash for healthcare?

Absolutely! What you can’t afford, is healthcare insurance. If you have a family, you already know that this is true. If you are single—maybe, but why throw your money down the toilet when you can get so much more for your hard earned cash!? I have a wife and 4 kids. To pay $6,000.00 in premiums and miscellaneous fees this year is simply unacceptable. I’m joining the ranks of the uninsured and I have a good job! I just called Hollywood Presbyterian Hospital to get an update on the cost of a c-section. Low and behold, the cash price for a c-section is $3,000.00. You can call yourself.

But what if you get injured and have massive bills? You have too much to loose.

Of course you do. Hopefully, however, you are not ignorant enough to believe that your healthcare insurance company is going to bail you out under these circumstances. If for some God forsaken reason you are hit by a truck and spend 2 months in the hospital accumulating millions of dollars in bills, I am afraid that you will still be in a pickle because your insurance carrier is sure to sue the trucker’s insurance carrier etc. for the next 10 years while the collectors come after you for unpaid bills.

You owe it to yourself to get smart and stop giving your hard earned cash to this scandalous industry. Please feel free to comment on this story for a lively discussion!

References

1. California Health Care Foundation, Health Care Costs 101 — 2005. Mar 2, 2005.

2. The Henry J. Kaiser Family Foundation, Employee Health Benefits: 2004 Annual Survey. Sept 9, 2004.

3. Simmons, H.E. and M.A. Goldberg, Charting the Cost of Inaction. National Coalition on Health Care, May, 2003.

4. The Henry J. Kaiser Family Foundation, Health Care Worries in Context with Other Worries. Oct 4, 2004.

5. The Henry J. Kaiser Family Foundation, The Uninsured: A Primer, Key Facts About Americans without Health Insurance. Nov 10, 2004.