Insurance Archives - Page 2 of 3

How To Apply For Home Insurance

Not only is a home one of the biggest investments an individual will make in their entire life, it can also prove extremely expensive to maintain. Repair work, breakages and damage will all cost money, money that could be spent on other, even more important things. Homeowner's insurance, a policy that is taken out to support home owners financially if their home was to become damaged in an unfortunate event, is a great way to ensure that homes are covered.

Gathering home insurance quotes and deciding on which policy is right for the home can be a tedious and time consuming process. Although it's necessary, contacting company after company can get tiring, however it is vital to be done to ensure that you get a good deal. Price comparison sites are extremely popular amongst consumers because you're able to check and compare a variety of companies quickly and easily. Although they are a great place to start, relying on them alone is un-advisable as they do not always include every aspect of your coverage and the policy conditions may vary from company to company.

home insurance

Here are a few tips for lowering the cost of a home insurance policy and how to obtain affordable quotes:

Coverage Requirements

It is important to be aware of what your requirements are for coverage and what you'll need to be included in the policy before approaching providers. Some companies will inquire as to which, if any, risks you and the home are exposed to and what type of protection you would like to take out to cover these (floods, earthquakes, etc). Others, however, will simply include things like hurricane, flood and earthquake coverage automatically.

Of course, if a home is situated in an area of high risk then it should, almost certainly be covered by insurance but for those who live in an area of little or no risk, paying for that coverage may seriously increase monthly payments. Be clear about what is needed and what is not when applying for homeowner's insurance.

Contents Coverage

Any expensive or sentimental items that are kept in the home should be included in the policy. Jewelry, big ticket electronics and other appliances can all be added.

As people change and move on, however, so do their belongings. Keeping up to date with coverage on your home's contents is essential to avoid paying unnecessary charges. Once you are insured, check with the provider regularly to make sure that the coverage you are paying for is both correct and relevant.

Discounts For Coverage

Combining two or more types of insurance policies with the same provider may see you rewarded for your loyalty. The majority of companies will offer up to a 15% discount to existing companies and should always be the first port of call for home insurance.

Have your own tips for things to look for when searching for homeowner's insurance? Leave us a comment!

Long Term Care Insurance Decision – Should You? Which One?

By Contributor 4 Comments

In the vast world of all kinds of insurance products, include finger insurance for a pianist, long term care insurance often takes the back burner because it is typically not considered until later in life and thus “skips the mind” per se.

I was recently involved in the process of researching, screening and executing a long term care agreement for my aging parents. Because my parents are not formally educated, and because they are immigrants who moved to America rather late in life, they rely on their kids (me) for these matters (and rightfully so).

So in this guest post I will share what I have learned about long term care (LTC) insurance and some of the best companies out there offering it.

long term care insurance

Long Term Care Insurance: What Is It?

LTC insurance mainly helps pay for long term care needs such as nursing home admission for senior citizens or in home health care assistance as one gets older. Because most of us don’t really think of LTC day to day, most of us have no true idea of how much this type of care can cost. We all typically do agree that it is EXPENSIVE.

And with average life expectancies on the rise, I learned in my research that more than 50% of Americans will spend at least part of their golden years needing long term care. Sure, medical care is better and we are more aware of what we eat and what it does to us, but no one can defy the law of nature; aging and a deteriorating physical condition.

As I was researching cost trends, I came to know that approximately 12 million Americans needed LTC about 12 years ago, with the average cost at $50,000 per year. Inflation adjusted cost in today’s terms is roughly $75,000. This number is projected to rise to near $300,000 in another 20 or so years. Yup, I too was shocked and in recovery mode for at least 8 minutes after reading that fact. I just couldn’t digest it.

The bottom line of all the research led to me acquiring a LTC policy on behalf of my parents. Why did I decide to do this? Because they fit three key criteria which I hope you find useful:

LTC insurance is not for someone who has gobs of money (which in my estimation is $2M or more in today’s dollars), or for someone who doesn’t have a lot of wealth / assets. The premiums are hefty! My parents fit this criteria.

LTC insurance can be bought at anytime, but after numerous consultation sessions with “experts”, the best time to buy seems to be between 55 and 65. My parents fit this range.

Finally, there are many companies in this space. You shouldn’t even consider any company that has less than an A+ rating. You can independently validate each company’s rating and don’t have to rely on what they tell you. Why does this matter? Highly rated companies do not tend to sneak in steep price increases in your premiums. Second, you want these companies to be around to fund your LTC needs if and when you need them.

Finally, the best three companies that I concluded on after conducting all the research are Mass Mutual (A++), Northwestern Mutual (A++) and State Farm (A++).

I did call USAA (A++) as well and loved everything about what I heard. Unfortunately my parents do not qualify as they don’t have military history. I on the other hand, because of my military history, will likely subscribe to USAA’s plan if and when time comes and I feel I need / want it for my wife and I.

I tried my best not to recommend any specific company because I am not affiliated with anyone. But I hope the three guidelines proved useful.

Readers: What’s your take on LTC insurance? Do you / will you have one? Why or why not?

Sunil owns over a dozen profitable niche websites and is the author of “How to Go from $0 to $1,000 a month in Passive and Residual Income in Under 180 Days All in Your Spare Time”, a FREE report you can download instantly from his Extra Money Blog, where he discusses how to create multiple streams of passive and residual income, entrepreneurship, internet marketing, blogging and personal finance. In 2007, he sold his ecommerce website for $250,000 to a top Ebay Power Seller and since then has sold several niche sites for five figures each. You can read more about him and his work on his blog.

Saving Money On Health Care: Health Savings Accounts (HSA)

By Miranda Marquit 2 Comments

It's health plan renewal time for me. Every year, we go through this. In the last six years, my family's monthly insurance premium has nearly tripled — and our benefits have decreased. Have we had major health challenges? Nope. Each individual in my three-person family has only one or two doctor visits a year. We don't have new prescriptions. We don't have any pre-existing health conditions. We live a relatively healthy lifestyle. But the premiums keep going up.

Apparently, “administrative costs” are rising faster than anything else in the world of health care. (Maybe that's just my frustration talking.)

At any rate, this year I'm doing something about it. I've sent in a change of plan form, switching to a high deductible health plan that costs half as much as what I'm paying now. No, my current premium isn't a budget buster. But I am frustrated that so much money goes, with no benefit to me, into the pockets of insurance company execs. I figured out how much it would cost to pay everything out of pocket, and it's a fairly small fraction of what I've been paying in premiums for the last three years. The only reason I have health insurance is because of the worry that something expensive could happen. The new high deductible plan would help me keep more of my money for me, while at the same time making sure that my family is protected against unexpected health issues.

Health Savings Account

HSA: Saving Money On Health Care

There are a number of things you can do to save money on health care, from asking for discounts at hospitals and doctor offices, to joining a prescription plan. A Health Savings Account can help you put your money work to you. When you have a high deductible plan, you pay a lower monthly premium. I plan to put the amount that I save in premiums in the HSA. I'll still be paying the same amount, so it won't change my spending plan, but the money will be to my benefit. Here are some of the ways that a HSA can be of benefit:

Contributions are tax-deductible.
You can withdraw for medical expenses without tax liability.
Money rolls over year-to-year.
The HSA can act as a back-up IRA. It has the same rules as an IRA, so if you don't use the money for qualified medical expenses, you are subject to the same penalties if you aren't 59 1/2 (and to taxes if you are).
You can use the money in the account to pay out of pocket medical expenses, including co-pays.

It's important to realize, though, that a HSA isn't for everyone. It works best for those who are reasonably healthy, without chronic conditions. Because the high deductible means you will be responsible for more costs for longer, expensive chronic conditions can be even more expensive with this arrangement. So, carefully consider your options, and what would work best for your financial situation. In some cases, you might find that a high deductible plan, paired with a HSA, could help you control more of the money in your budget.

Finding And Buying Affordable Term Life Insurance Should Be A Priority

By Mr. Money 3 Comments

When I was following Dave Ramsey's 7 Baby Steps a year or two back (I suppose we still are), I was convinced that I needed to buy a term life insurance policy. They give some very vivid stories in their Financial Peace University class from some folks who were in Dave's class who bought life insurance, only to find out months or years later that they had terminal cancer or some other illness. I knew it was a good idea that I buy life insurance to protect my family as well in case of a life changing event, but I had just never followed through.

When we had our son last summer I knew I had put it off long enough, and that it was time for me to take action and buy a policy. I didn't want my wife to have to muddle through without me in case I were to die, I wanted her and my son to be taken care of, with enough money to live on comfortably if I were to pass.

When Should A Person Buy Life Insurance?

There are several frames of reference when it comes to buying life insurance.

There are those that say that y0u should buy it when you're young, because that way you can ensure that you get the best rates because you're young and healthy. They say you should buy it even before you have children or a spouse because you never know when you'll have a health event or health issue crop up that could keep you from getting affordable Term Life Insurance.

Then there are those that say you should buy life insurance only when you need to because you've got dependents, and folks who are relying on you to provide for them. Buying before then is just a waste of money.

I used to come down in the second camp, but I've been swayed to the first camp (buying early) for a couple of reasons. First, you can buy an extremely good policy when you're young at an extremely reasonable cost. For example, i got a $500,000 term life insurance policy for about $30/month. I probably could have gotten an even cheaper policy if it weren't for my weight being a bit high at the time (I'm currently working on that). Also – my wife had a health event in 2008 that made me realize that you really do never know when you're going to need insurance because negative health events can pop up at any time.

How Much Should Your Policy Be For?

Before you buy your policy one thing you need to decide on is how much your policy will be for. Most experts I've read will recommend something in the range of 8-10 times your annual salary. So, for example, if you're making $50,000/year, you would want to get a policy in the range of $400,000-500,000.

Some more conservative experts will recommend even more than that saying that you should have somewhere in the range of 17-20 times your annual salary. For a $50,000 salary that would come to around $850,000-1,000,000 for the policy.

No matter what you do, do your research before you buy, reading up on the different types of policies, and where to buy through educational resources like AARP.org.

Save On Your Insurance By Paying For Your Policy Quarterly Or Yearly

One thing to consider when buying your policy is whether you can save money by paying for your policy in quarterly or yearly installments. A lot of companies will give you a pretty decent discount if you pay up front for the entire year.

The only reason why I might not do this is because – as some experts point out – if you pre-pay for your year's policy and then die part way through the year, you won't be getting back your dues for those final months. You've pre-paid. Granted it may only be a couple hundred bucks, but still.

In any event – always make sure that you set up automatic payments for your life insurance, and that you never let it lapse. You don't want to have someone die, and then figure out that the policy lapsed because payments hadn't been made for a couple of months.

Conclusion

We bought term life insurance last year as insurance against my untimely demise. I don't my wife to have to worry about having to pay the bills in case I were to die. I bought my policy while I was still relatively young and in good health – so my policy is pretty cheap, and if you do the same yours will probably be as well. I'd recommend you buy your policy ASAP as well, because we never know when we might get sick, have a negative health event or, God forbid, die.

Do you have a life insurance policy? Why or why not?

The Importance Of Having Health Insurance As A Contractor Or Freelancer

By Contributor 1 Comment

For many self-employed contractors working in the wake of the housing bubble, the idea of having medical insurance for themselves is seen as a splurge and an unaffordable luxury. This is especially true if a spouse is insured through work and the children are covered; most contractors see no problem roughing it out through sickness and injury if it means saving some serious monthly income. But this can spiral into dangerous long-term risks of unemployment following on-the-job injury or any other number of health concerns that risk your livelihood. An interesting statistic to consider, whether or not it applies to you: Hispanics working non-union jobs are half as likely to have medical insurance, or seguro medico, than their unionized counterparts, and are therefore far less likely to seek medical attention in any preventive fashion.

Self-employed construction workers who neglect to get medical insurance, regardless of their ethnic background, are much less likely to participate in check-ups or seek assistance for anything other than serious bodily injury. Yet the overwhelming number of medical maladies that could inhibit someone from engaging in physically active labor is chronic or otherwise non-emergency ailments. The idea that as long as you watch your step you won't need the doctor is ridiculous when you really consider the kinds of unforeseen health problems that could arise in your life at any moment. Finding out that not seeing the doctor after weeks of feeling stiff as a board after driving to and from your job site means you're now unable to work the rest of the summer is unacceptable to most contractors, yet individual medical insurance is often as unacceptable.

Resources For Finding Insurance Coverage

Health Insurance

Before you decide to risk your future wages on not getting hurt in a dangerous profession, there are plenty of resources you can exhaust to try and net yourself a relatively inexpensive yet comprehensive health plan.

Get On Your Spouse's Plan

The first one alluded to earlier, is do everything you can to try and get on a spouses plan if possible. An increased premium is obviously cheaper than your own insurance, but it's most certainly cheaper than the cost of a serious job-related injury or other long-term problem.

Get Cobra Insurance

If you were recently laid off or about to be, COBRA is the way to go, if a more worthwhile severance package isn't offered. The federal government grants employees access to a former employer's insurance for up to a year and a half, but with the added premium and higher costs. This might seem like a shock to the system after receiving the same benefits for much less, but it's guaranteed to be cheaper than the alternative.

Local Contractor's Guilds Or Associations

Once those 18 months are up, or if you were always self-contracted, then look into local contractors' guilds and similar members' organizations who oftentimes have discounted group rates with certain insurance companies. The only drawback is that plans tend to be barebones.

Make Sure To Have Insurance

Playing the no-insurance game is always a big risk, but even bigger if your money relies on the dependability of your strength. The monthly savings are tempting, but they won't matter if they're ultimately spent on uninsured medical treatment.

Are you currently self employed, and living without insurance? Have you had a situation were glad you got insurance coverage? Tell us about it.

Five Myths Regarding Renter’s Insurance

By Contributor 2 Comments

We buy insurance policies to financially protect us should something go wrong. Most people would argue that insurance is a smart thing to have if for nothing else then the peace of mind it provides us. Because of this we generally do not flinch at buying adequate health, life or automobile insurance policies. However when it comes to renter’s insurance we often balk because we are unaware of the risks, and being ignorant to these risks don’t mean they are less likely to befall us.

Listed below are five of the most common myths that prevent people from seeing the need to purchase a renter’s insurance policy. Each one is followed by the facts that debunk each myth. Hopefully this list will educate you as to how important a renter’s insurance policy can be when it comes to protecting your property and finances.

My Landlord Is Insured So That Will Cover Me

Of course your landlord has an insurance policy but their policy protects their property, not yours. Generally, landlords will have their building insured and will carry a policy to protect them if they are found liable for injury or loss but that is where their policy stops. If someone is hurt on the property due to your fault, you are liable. If your stuff is stolen or damaged, your landlord’s insurance will not cover it.

My Roommate Is Insured So That Will Cover My Stuff Too

While there are policies that cover roommates, most likely the only things that are covered are the ones that are owned by the policy holder. Most renter’s insurance policies do not provide coverage for roommates or even domestic partners, only married couples.

Renter’s Insurance Is Too Expensive For Me To Buy

Insurance can be expensive. However renter’s insurance premiums don’t compare to other insurance policies when it comes to cost. Depending upon the policy you choose you can expect to spend between $150 t0 $350 per year for coverage and these premiums are paid monthly.

I Don’t Have Expensive Things So I Don’t Need Insurance

While you may not need to protect your property from loss, renter’s insurance is not only about your stuff. Sure, you may not have expensive things but if someone trips and falls over your inexpensive furniture, you are still liable. Renter’s insurance can help protect against liability claims as well as replace property.

I Live In A Safe Area

According to the US Department of Justice a person who rents is almost 80 percent more likely to be robbed than someone who owns their own home. Even gated communities suffer from criminal activity. And as far as natural disasters are concerned, no one can tell when and where one will strike.

Insurance is all about risk. Understanding the risks you face is all part of how you learn to protect yourself and your property. Should you feel that renter’s insurance is still not for you so be it, but at least you are making an educated decision, not one based on a myth.

Jeff Orloff writes on insurance topics for the Renters Insurance Blog (http://rentersinsurance.org) for the Consumer Media Network.

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