Archive for March, 2010

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Auto Insurance: Factors Impacting Your Rates

Wednesday, March 31st, 2010

If you’re feeling the auto insurance rate blues, you’re not alone. While a lot of plans are reasonably priced and can even save you money over their competitors, there are several factors that can and will affect your overall rate.

Age

Statistics say that if you’re a driver under the age of 25, your more likely to be involved in an accident than those who are older.

Marital Status

Yes, being married will actually lower your insurance rate. Singles pay more regardless of the driving record.

Gender

Though the stereotype seems to say otherwise, statistics say that women are better drivers, therefore they get a lower rate.

Your Car

You’re going to pay a whole lot less for insurance on a family sedan than you will on sports car or exotic showpiece. The age of your car, the make, model, body style, and engine will all make a difference as well. Oh, and no, the color of your car makes no difference. You’re not going to pay any more for cherry red than you would silver.

Your Driving Record

A good driving record will save you money. A few speed bumps or a seriously flawed record will find you with a higher rate. The good news is that over time, as the record improves, your rate will come down.

Your Credit Score

Believe it or not, your credit rating will affect the car insurance rate you are offered. Like a loan or credit card, insurance companies view those with low credit scores as high risk. Therefore, you must pay a higher premium.

Occupation

For some reason, there seems to be a correlation between one’s occupation and the driving risk they present. People in certain occupations will pay  more than others.

Your Level of Education

That college degree might pay off in more ways than you thought. Those with higher education  might find themselves with an auto insurance discount.

Multiple Cars/Drivers

This is another great opportunity for a discount.

There are other factors that might also make a  difference in the rate you are paying for your car insurance. Your location can make a difference. Lower traffic areas and less vehicle thefts in the same area might find you paying less where those who live in areas with more congestion and a higher rate of theft will often pay more. The number of years you have been driving, the distance your drive every day (mainly to and from your job) and the number of miles you put on your car every year can also have some impact.

When shopping for insurance, keep these things in mind when you see your rate quote. Try to shop around for the best rate and take advantage of the discounts you are able to get. You must have insurance in order for your car to legally be operated 9on the road, but you don’t want to go broke trying to keep it. Look for the discounts and try to get any factors you can change under control to ensure a better rate.

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One Big Insurance Myth and Its Reality

Tuesday, March 30th, 2010

Many people today see insurance as a waste of money because they do not think they need it. Those who have it are often in the same boat but feel cheated because they’re paying for something they may not be using. However, insurance is not there for you to benefit from each and every day and based solely on the money you have paid. Insurance is that extra peace of mind; the comfortable feeling of knowing you are prepared for and protected in the event of life’s inevitable what-ifs.

A lot of people also believe everything they hear instead of finding out on their own. They listen to the media, their friends and family, advertising propaganda and even the pitch of an insurance salesman trying to make an extra buck. The insurance sales man and the other forms of influence are not wrong in what they do. They have their own opinions and some do have a job to do. However, the decision of what insurance plan to buy lies squarely on the shoulders of the consumer, who should research the information, read the fine print and decide for themselves, minus the influence of other sources. Those other sources are not you, do not live and walk in your shoes and do not know your needs. Only you can know those things and make the decision for yourself.

With that in mind, there are many myths floating around out there about insurance. These can be costly mistakes for the uniformed consumer. Here is one big myth and the truth behind it to help you make a better decision when it comes to purchasing your insurance plan. Whatever the insurance type, this myth and reality will apply.

Myth #1: Bare Minimum Coverage is Cheaper, so it’s Better.

Not exactly. Saving money is great, however, bare minimum coverage may leave you hanging in an unfortunate event, and you will be left to at the costs of whatever your insurance will not cover. This doesn’t mean you need to buy the maximum coverage or coverage for things you certainly won’t be facing. After all, one would not buy hurricane insurance while living in the Midwest. However, you do want to plan for life’s little (and big) what-ifs, so you need to take that into consideration and purchase a plan that covers at least the majority of what you may someday need. Even if you do not use it, it is not a waste of money when compared to what you could wind up paying out of your own pocket without coverage.

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Health Insurance: Long-Term Care

Monday, March 29th, 2010

If you anticipate the inevitable need for long-term care for an elderly or ill loved one or want to plan for this possibility in your own future, you might want to consider the benefits of long-term care insurance.

Many people fail to plan for this or don not think it is a necessity. They are operating on the “won’t happen to me” frame of mind. While it is true that some people may never put their long-term care plan to use, it’s never a waste of money or time to prepare for an eventual what-if.

Why Think About Long-Term Care in the Here and Now?

If and when the time comes where you or a loved one need the kind of long-term care that can only be offered by in-home care attendants, assisted living or skilled nursing facility, you will want to be prepared. If you are caught off guard by a crisis, it’s far too late to purchase the coverage right when you need it.

The government won’t pony up the money for it and Medicare only offers temporary and limited coverage. Medicaid (this may be called something different depending on where you may live) only kicks in once you have lost everything, including what little dignity you may have had left, and the coverage offered is still pretty limited. Unless you have the wealth to maintain the long-term care or adequate insurance, you might very well find yourself unable to afford the care you or your loved one need.

A large percentage of both men and women will find themselves spending at least some time inside a nursing home or other long-term care facility during their lifetimes. Those who are single will definitely want to have coverage for this care, as well as those who are married or have children to rely on. Long-term care facilities are not cheap. One could easily exhaust every asset they have (if they are not wealthy) in a short period of time. It’s also unfair to expect that your children, who most likely have families and lives of their own, will take over the expense of your care. Unless they happen to be wealthy themselves, chances are they can’t possibly afford it either, although they might wish they could.

Long-Term in the Long Run

While you might be swallowing a bit of an expense now for your long-term care insurance, comparatively speaking, you will be grateful for all the costs your not out when it comes to the need for long-term care. As Americans, it’s something to appreciate. We have the option for great long-term care if and when we need it and the help to pay for it, as long as we plan ahead.

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Dissecting the Deductible

Friday, March 26th, 2010

While many people may have some form of insurance, they do not always understand exactly what it really means to have a deductible. The fine print is not always clear enough, even if it states the terms in black and white. The layperson does not always read and understand legalese the way the insurance company and a lawyer might. This is especially true for those shopping for insurance and the newly insured.

Deductibles Defined

For the most part, almost any insurance plan will involve a deductible. There are of course a few exceptions, one being life insurance, however, if your insurance plan mentions a deductible, there are a few things you will need to know.

The deductible is the amount that you will have to pay out of pocket before your insurance will take over the costs. Say you have a deductible of $1000 on your car insurance. You will have to pay this much yourself before your insurance will kick in or in the event of an accident before you have fulfilled your deductible requirements, the insurance will pay you the amount of your claim minus the deductible. The exception is a claim that is less than your deductible. if your deductible has not been paid and the claim is less, the insurance company will cover nothing.

Deductible amounts will vary from insurance plan to insurance plan, but are typically in balance with the premiums being paid. If you want a plan with low to no deductible, you will have to pay a higher premium. If you want a lower premium, your deductible will be higher. You really want to pick an insurance plan that has a balance between the two that will make your policy affordable and offer reasonable coverage after the deductible has been met.

What is the Purpose?

The reasoning boils down to three things, really. For one, this is a way to encourage people to take more responsibility for themselves and what is theirs. Secondly, deductibles can reduce your premiums somewhat (and hey, any amount of savings matter these days, right?) because the insurance company will have less to pay out on claims. Finally, deductibles are also about human morality; right and wrong. having a deductible teaches responsibility, as mentioned before, reduces carelessness, and lessens the number of petty claims being made and paid out.

Now that you have a better understanding of deductibles, compare premiums and deductibles to be sure you are getting a good deal, whatever the insurance plan, and remember to pay those premiums and meet your out-of-pocket responsibility so you are guaranteed the full coverage of your plan.

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Auto Insurance: A Little Peace of Mind for You and Everyone Else on the Road

Thursday, March 25th, 2010

It’s an unfortunate source of frustration for drivers time and time again. You’re involved in a fender bender and when you get out of the car, you find the other guy saying he’s uninsured. You’re first thought will most likely be “Why are you out here on the road in the first place, then?” Failure to carry some kind of automobile insurance is a very careless and inconsiderate move. You’re certainly not doing yourself any favors, nor is it fair to all the other people who happen to be sharing the road with you.

Some people don’t bother to maintain an auto insurance policy because they think it’s too expensive. The truth is, auto insurance can be quite budget friendly and compared with the costly consequences of not having it, well, it’s a rather minimal expense.

Not only is it a good idea to have insurance if you plan to drive, it’s the law. Go ahead, tell a police office that you don’t have car insurance when you have that little fender bender and see what happens.(And no, you can not hide it or fake it. The truth will surface.)

Consequences for the Uninsured  Motorist

Initially, the uninsured driver might get lucky enough to only receive a warning or a citation. Still, a citation will cost you some cash, so if cost is a concern, one should have just gone with insurance in the first place. Failure to maintain a car insurance policy could eventually leave one kicking themselves for not doing so and hopefully, the lesson will be learned.

Lacking auto insurance can also lead to racking up points on your license. Enough of this and you might eventually find yourself without a license at all. You will wind up having to wait a period of time to get your license back, go to court, pay fines, possibly take some kind of driver education class (paying out of your own pocket, of course) and filing for an SR-22 just to get back on the road.

In the case of a fender bender or even a serious accident, if you are the uninsured party, you could end up in a devastating situation. There could be more citations, fines and even restitution. Without insurance, you will be out the expense for the other party’s car, possibly medical bills related to any injuries sustained,  and any costs for repair or replacement of your own car. Surely, by now, you see the pattern here: money, money, money.

Insurance Ensurance

When you take the cost of not having auto insurance and compare it to the cost of keeping an up to date policy, well, insurance is not so expensive after all. So if you plan to get behind the wheel, keep these things in mind and get yourself some insurance. Full coverage is the best idea, but at the very least, get a liability policy and keep it current.

You’ll thank yourself and other drivers will too.

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Health Insurance: HMO or PPO?

Wednesday, March 24th, 2010

If you’re looking into purchasing a health insurance policy, you might find yourself faced with a choice between a HMO or a PPO. This could be a difficult choice, especially for those with little experience with health insurance. How do you determine which type of policy will best suit your needs and provide you with the coverage you need? Which will give you options and affordability without sacrificing healthcare quality?

HMOs

A HMO (health maintenance organization) is a great health insurance option. Some people like them, some don’t. It’s a matter of personal opinion. It’s not advisable to choose your health insurance based on the fact that your friend or a family member has told you they don’t care for a certain company or option. It is better to look into the choices yourself, and decide which best fits your own particular needs and leave it at that. If ever you become dissatisfied, you can always make a change later.

When you choose a HMO, you will be given a list of network providers and will choose a primary care physician from among them. The PCP will then handle all of your basic medical care. Should you ever need specialized care or medical services, your PCP will then provide you with a referral to another physician within the network for this purpose. The only exception is in emergency situations.

All insurance claims will be filed by your healthcare provider, so you do not have to worry about that.

With an HMO, you will only be responsible for out-of-pocket expenses in the form of co-payments for doctor visits, prescriptions, procedures and a few other things that might require a patient co-pay. However, these expenses are minimal compared to paying every single medical expense out of your own pocket.

PPOs

A PPO (preferred provider organization) also has a list of network providers, however, you can also choose out-of-network physicians. You will simply pay a little bit more out-of-pocket. You also do not have to select and maintain a primary care physician, nor will you need a referral for the services of any doctor, regardless of your medical needs. The catch is that some specialists will require a referral anyway before they will see you. In that case, just drop in to see a family physician, and get yourself a referral or search for a specialist who will see you without it. PPOs will also sometimes require prior approval for certain tests and procedures, such as MRIs. For the most part, your healthcare provider will file the insurance claims. However, if you choose an out-of-network doctor, you may have to pay out-of-pocket and file a claim for reimbursement with your PPO. Aside from this possible expense, you will only have to worry about paying a co-payment, the same as with a HMO. However, some PPO plans do have an annual deductible, meaning you will have to pay a set amount out of pocket before your coverage kicks in and then you would be responsible for a percentage after that. Be sure to read the fine print or search for a PPO without the deductible if this is something you wish to avoid.

Your Choice

Either way you choose to go, both HMOs and PPOs are great choices for health insurance. It’s simply a matter of your healthcare needs, preferences, and, of course, your budget. PPOs offer the greatest flexibility and are really an excellent choice for those who do not need to see a doctor on a regular basis. HMOs are a great choice for those who need to see a doctor often and those who prefer the familiarity of the same providers handling their care.  It’s always best to shop around and get all the information and a few solid quotes before you make a decision.

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Term or Whole Life: Which Life Insurance Policy is Best for You?

Tuesday, March 23rd, 2010

We’re all going to die someday. It’s a fact of life. Maybe not one we all care to spend our days thinking about, but still, it’s a good idea to give it some thought and be prepared. Life Insurance is a big part of that preparation. Truth be told, it’s a very selfless act to purchase a life insurance policy. You’re not thinking of yourself when you do this; you’re thinking of the loved ones who will be left behind with both memories of you and final expenses to pay.

You will probably leave some bills and debts unpaid. Most of us will. Relentless creditors won’t care that your gone. They still want what’s owed to them and will harass your loved ones to get it. Life insurance can help take care of that. Then, there are the expenses of the funeral and burial or cremation. Funeral cost thousands of dollars these days, and even if you choose to forgo a memorial service for yourself (put it in writing; your loved ones might not know or agree if you don’t have it stated in black and white), something still has to be done with the remains of your physical existence. Burial or cremation are both still expensive, so life insurance is a sure bet that your loved ones will be able to carry out your final wishes.

Before you purchase a policy, you need to decide which type of life insurance is right for you.

Term Life Insurance

Term life policies offer death benefits for a certain number of years. You choose the amount and the length of the policy. Should death occur within the term of the policy, benefits will be paid. Should you outlive the policy, well, no money will be seen. Still, term life is a fairly affordable option, though the premiums can fluctuate, especially for those with few or no dependents. Even without children or a spouse who depends on you, you will still probably have family or friends who will want to see to your final wishes and expenses. A term life policy can do this.

Whole Life Insurance

Whole life policies, while a bit more expensive than term policies (the premiums do remain the same though), are excellent for those with dependents or those who truly want to be prepared for death, no matter when it comes. Unlike term policies, whole life does not have an expiration date, therefore, as long as the premiums remain paid, the policy is always in effect no matter what age your death may occur. Whole life policies really give you and your loved ones that extra peace of mind. These policies also gain cash value, so should there ever be a need, you could borrow against it, though it is not advised to do this frivolously. Only borrow on your life insurance if it is an important reason and there is no other option.

There are other types of life insurance as well. Your best bet is to look at your needs, compare the options and choose the policy that best suits you and those you will leave behind.

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Health Insurance: Are You Risking Your Health Without It?

Monday, March 22nd, 2010

We hear it all the time. Millions of Americans are living without the benefits of health insurance. many people choose to go without because their employer doe not offer it or they think they can not afford it. However, there are policies you can get for yourself and your family, without going through an employer, and frankly, the cost of not having health insurance, might be a much bigger price to pay than simply paying for an insurance policy.

Insurance vs. No Insurance

While some of us are more than willing to swallow the bill, even if we know we can not pay, and run to the ER or doctor when we have a real problem, others simply avoid it, fearing the bill and the creditor they know will soon be on their backs. While running to the doctor or ER might offer a temporary respite from that which ails us, regular medical check-ups are by far the best preventative measure for health conditions. Unfortunately, regular check-ups with decent doctors tend to become quite difficult for those without insurance. If you can’t afford insurance, how could you possibly afford to self-pay for a doctor’s visit? Right?

While there are low-income and free clinics and programs to often help people with their medications - and all of this is great, don’t get me wrong - some people have a need for specialized care, treatment and procedures that these clinics just can’t handle as well. It can be an overwhelming feeling to know you need the care of a good doctor on a regular basis. It’s a situation compounded by doctors in the ER who tell you this, but try explaining your situation to them and it seems to fall on deaf ears.

Only You Can Take Control of Your Own Healthcare

Living without any kind of medical coverage can and does put your health at risk. Regular care can help to catch conditions early. Without that care, these conditions will go untreated, often putting you at risk for more serious health problems and possibly even death. all of which is preventable with proper care. Having some form of health insurance, whether it be a state program, an employer program or a self-paid policy is one of the most important things you can do for yourself and your family.

It is up to you to decide to be proactive, take your healthcare into your own hands, and do something about it. Healthcare does not have to cost a lot. The cost of a policy is minimal compared to the bills incurred for being non-insured. Health Insurance policies can be built to fit both your needs and your budget. Don’t take a chance on your health and your life. Choose to be health insured!

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Protecting Your Home and Everything You Own

Friday, March 19th, 2010

The majority of us work extremely hard for what we have. We take pride in our homes and the things we have acquired through the years. It doesn’t make us materialistic; simply happy to have what we have. However, disaster and chaos can strike at anytime, often without warning. The prospect of losing everything, or even a portion of everything, is certainly not a pleasant thought. What can you do to prepare for the worst?

Homeowner’s Insurance

If you own your home, homeowner’s insurance is a great thing to have. More often than not, your mortgage company will demand carrying of a homeowner’s policy as part of the terms and conditions for your mortgage. Homeowner’s insurance can take care of everything from minor repairs to major repairs and replacement of things contained within the home. You will, of course, have to take inventory of your valuables (including pictures) for them to be covered by the policy, but it’s well worth the time and energy spent to know your losses will be covered.

Homeowner’s policies typically cover theft and disasters. Should a burglar break in, you can count on your policy to reimburse you for the things that were taken. Should you spring a leak, your homeowner’s insurance is there. Most natural disaster’s will be covered too, however, there are often loopholes that preclude certain disasters, flooding being a popular example. Nevertheless, you can often add-on to your policy with disaster-specific insurance to ensure every possibility is covered. Homeowner’s insurance will also cover accidents that might occur involving guests on your property on inside your house.

Renter’s Insurance

You’re a renter, therefore, your landlord carries the homeowner’s insurance, so you don’t need to have insurance, right? Think again. The landlord’s policy is not going to cover the loss of your personal property or any accidents that occur within your home. for a small price, you can get a renter’s policy that will cover your belongings, guest accidents, and certain disasters that your landlord’s policy won’t cover, keeping you protected. It’s a small price to pay to wipe extra worries away.

Whether you own or rent, it is always a good idea to carry some kind of home insurance coverage to ensure that all your assets are always protected.

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Protect Yourself and Enjoy Your Travels with a Little Extra Peace of Mind

Thursday, March 18th, 2010

You want to take that dream trip. Plans are underway and your anticipation is mounting. What could possible go wrong? It’s not something we really want to think about when planning a fun and exciting vacation, but here it the real world, things do go wrong. Fortunately, there is a great way to plan ahead for those unfortunate what ifs that might creep up before and during your vacation! Travel insurance.

What Is Travel Insurance?

Travel insurance is an insurance policy that gives you some added peace of mind as you head out on that longed-for trip. It covers both domestic and international travel and has many perks that will cover most any thing that could go wrong. That way, you can enjoy your trip, knowing that whatever happens, you got it covered.

Coverage

There are travel insurance policies to cover both domestic and international travel, as mentioned before. There are policies for individual travelers, families and large groups. The insurance will cover minor things like lost passports, trip cancellations/interruptions and lost luggage. It will also cover major things like medical emergencies and transportation issues, among other travel services, and will even provide you with 24 hour assistance each and everyday.

There is a wide array of travel insurance options. For the most active of travelers, there are even more options. You will even find policies that will offer coverage for special equipment you may take with you, such as your golf clubs or scuba gear.

For those with special medical needs or who might anticipate special medical situations, you can go beyond the regular medical coverage and choose a specific plan best suited to meet your medical needs.

Plans are very flexible and can be built to suit your trip and preferences. You will even find specialized plans that offer airfare coverage, rental car coverage, extreme adventure coverage, sportsman’s coverage and much more. If you have a child or two or more that you plan to bring along, some plans offer additional coverage for kids age 17 and under at no extra cost.

Whatever your plans and your specific needs, that added sense of protection from a travel insurance policy is a great way to make the most of your trip. It’s well worth the expense, whether you end up needing it or not, but should you need it, you’ll be glad you had the foresight to purchase travel insurance before your trip.

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