Sun Financial Life, an international wealth management and insurance company, and the Integrated Benefits Institute (IBI), a non-profit benefits research organization located in San Francisco, states that employers who intervene soon after employees are first disabled can help them return to work faster and happier, while cutting disability-related costs.
An IBI study of Steelcase, a Michigan manufacturer of office furniture, showed that worker satisfaction shot up 48 percent from 1997 to 2001 after the company introduced a disability management program that integrated aspects of workers compensation, short and long term disability, and the federal Family Medical Leave Act.
Employers who move quickly to communicate with and accommodate their disabled workers can help them return to work 20 percent faster, according to Sun Life's study, “Early Intervention Programs Can Speed Disabled Employees Back to Work.”
The reason Steelcase decided to try a program like this was because many employees were confused by traditional, disjointed employee benefits. Often, employees didn’t know who to call or who to turn to, resulting in employees feeling like they weren’t getting good service. In addition to the program, Steelcase also implemented an early return-to-work component for employees.
The Sun Life Return-to-Work StudyThe Sun Life return-to-work study tracked the outcome of nearly 1,000, non-maternity, short-term disability claims. The claims were then divided into 2 groups – those who received early intervention disability, and those who did not. Available services included:
· Claimant and physician coaching about return-to-work expectations
· Employer education on disability issues
· Identification of viable job alternatives, including light duty positions
· Job site modifications to accommodate disabled workers
· Medical intervention to ensure the employee was receiving appropriate medical care
· Three-way coordination and communication between the employer, employee, and physician
· Vocational counseling
Those who received early intervention worked with their employers and physicians to develop return-to-work plans and set expected return-to-work dates that were the earliest recovery date (to be determined by the physician or medical disability advisor). The final outcomes were compared, including the date the employee returned to work, whether it was full- or part-time, and if the claim transitioned into the long-term disability stage.
The study showed that the early intervention services yielded a high success rate in returning disable employees to work. Among the findings:
· On average, employees receiving early intervention services returned to work 2.7 weeks sooner, saving the employer approximately $810 per claim
· 47 percent more employees returned to work during the short term disability states with early intervention
· 33 percent fewer claims extended into the long-term disability stage with early intervention
Services Make All the Difference“Nine times out of 10, disabled workers stay out on disability longer than they have to — or don't return at all — due to employment problems rather than their medical problems,” says an official from John Hewitt & Associates Inc., a disability risk management and consulting firm with headquarters in Portland, Maine. “Usually it isn't the disability that prevents them from returning to work, but all kinds of extraneous job issues,” notes the official. “Maybe the company has just been sold, or the worker just got a new boss, or the worker's duties are changing and the employer hasn't put any kind of support mechanism in place. If the employer doesn't recognize that the disabled worker has value and they aren’t communicating this idea directly to the worker, then the employer risks losing that employee.”
Sun Life concluded that early intervention in short term disability cases can overcome two main barriers:
· Psychological: The disabled employee hasn't mentally adjusted to not working; nor have they adjusted to their new lifestyle without work.
· Work: A close relationship still exists between the employer and employee, and everyone remains focused on recovery and return to work. Before long, an employee can quickly become “out of sight, out of mind.”
Real Savings “Employers who ignore the importance of early intervention risk higher absenteeism, higher staffing costs, and lower productivity,” says Sun Life. “Conversely, employers that implement early intervention programs can reap real savings.” In the long run, employers that don’t pay attention to potential rewards of return-to-work programs will pay a higher price than those that actually do use the programs.
According to a Sun Life’s study, with an average company of 10,000 employees, 600 employees can expect to receive short-term disability benefits in any given year. If just 10% of these employees receive early intervention services, that may mean an annual savings of $48,000 per year. This is based on a $300 weekly, short-term disability benefit payment that is multiplied by the shorter average disability duration of 2.7 weeks.
These findings complement those discovered by Watson-Wyatt Worldwide and the Washington Business Group on Health in their fourth annual survey report for 1999/2000 called “Staying@Work.” The study examined 178 major companies with an average of 13,500 workers and found that those which implement short term disability claim management activities — such as independent medical exams, behavioral health interventions, case management, and transitional return-to-work programs — reported savings between 18 percent and 19 percent.
Monday, November 24, 2008
Single? Don't Overlook Disability Insurance
The sun finally comes out and you decide to take a motorcycle ride. When the corner comes up a little too fast, you slip on sand, crash, and break your arm. Your health insurance will cover your medical bills, but you're worried about the weeks of lost income that stretch ahead. Even if you don't own a motorcycle, your chances of becoming disabled are great. In any given year, one out of every eight people will suffer a disability of some kind, from auto accident injuries to common back problems. And if you're single, without anyone else's income to rely on when you can't work, disability can mean financial disaster. Unless you have disability insurance, that is.
What coverage do you have? If you're working, you may have group disability coverage through your employer. Many employers offer short-term coverage that pays disability benefits for a limited period of time, from a few days or up to a year (sometimes two). Some employers also offer long-term coverage that has a two- to three-month waiting period, but then pays benefits until you are age 65. In either case, if you're lucky, your employer may pay all or part of the premium cost. If you aren't sure exactly what coverage you have, check your employee benefits book or contact your human resources department. If you haven't already enrolled in the disability plan, find out how soon you can get covered. You may also be eligible for disability benefits through Social Security, workers' compensation (only if it's a work-related illness or injury), or another government program. But it's wise not to totally rely on these programs for protection. Each program has its own set of usually strict limitations and restrictions regarding eligibility and benefits paid. If the disability coverage you have doesn't adequately meet your needs, consider buying an individual disability income insurance policy. Because policies come in all shapes and sizes, you can buy coverage tailored to your needs and your budget. Shop around and get quotes from several different insurers. Unlike insurance provided by your employer, benefits paid by an individual policy are received free of income taxes.
What coverage do you need? Your disability coverage won't replace all of your income, but it should offer sufficient benefits to allow you to maintain your current standard of living, taking into account both your needs and other sources of income available to you. Most group and individual disability policies will replace between 50 and 70 percent of your income when you can't work. That may be enough, when combined with the cash in your emergency fund, to keep you afloat financially until you get back on your feet. Ask your insurance agent to help you determine the level of coverage you should have.
What coverage do you have? If you're working, you may have group disability coverage through your employer. Many employers offer short-term coverage that pays disability benefits for a limited period of time, from a few days or up to a year (sometimes two). Some employers also offer long-term coverage that has a two- to three-month waiting period, but then pays benefits until you are age 65. In either case, if you're lucky, your employer may pay all or part of the premium cost. If you aren't sure exactly what coverage you have, check your employee benefits book or contact your human resources department. If you haven't already enrolled in the disability plan, find out how soon you can get covered. You may also be eligible for disability benefits through Social Security, workers' compensation (only if it's a work-related illness or injury), or another government program. But it's wise not to totally rely on these programs for protection. Each program has its own set of usually strict limitations and restrictions regarding eligibility and benefits paid. If the disability coverage you have doesn't adequately meet your needs, consider buying an individual disability income insurance policy. Because policies come in all shapes and sizes, you can buy coverage tailored to your needs and your budget. Shop around and get quotes from several different insurers. Unlike insurance provided by your employer, benefits paid by an individual policy are received free of income taxes.
What coverage do you need? Your disability coverage won't replace all of your income, but it should offer sufficient benefits to allow you to maintain your current standard of living, taking into account both your needs and other sources of income available to you. Most group and individual disability policies will replace between 50 and 70 percent of your income when you can't work. That may be enough, when combined with the cash in your emergency fund, to keep you afloat financially until you get back on your feet. Ask your insurance agent to help you determine the level of coverage you should have.
Lack of Dental Benefits for Low-Income Children is a Serious Problem
A striking disparity in dental disease based on income can be seen within low-income children versus children who come from more affluent families. In this country, children, minorities and the elderly are said to have the worst oral health, due in part to a lack of dental insurance. In fact, about 108 million Americans do not have dental insurance, according to “The Surgeon General’s Report on Oral Health.”
Recent research findings have linked oral health infections to diabetes, heart and lung disease, stroke and low-birth-weight babies. In the long run, serious dental problems in children can lead to lack of self-esteem, long term stress and depression, and may also interfere with normal, everyday functions, such as eating, breathing, swallowing and speaking.
Tooth DecayTooth decay is the single most common chronic childhood illness. Children in families living below the poverty levels ($18,850 being the annual income for a family of four), have more severe and untreated tooth decay.
Publicly Funded Programs Are Falling BehindReports state that children from low-income families without dental insurance are three times more likely to have dental needs than children with either public or private insurance. Uninsured children are 2.5 times less likely than insured children to receive dental care, and for each child without medical insurance, there are at least 2.6 children without dental insurance. Simply put, having medical insurance with dental benefits greatly influences whether consumers seek dental care.
A new program called The State’s Children’s Health Insurance Program is out in an attempt to get kids covered, and though it increases the number of insured children, many still are left without effective dental insurance. Medicaid has tried to fill the gap in providing dental care to low-income children, but not much progress has been made. Less than one in five Medicaid-covered children received a single dental visit, notes a recent, year-long study.
In addition to low-income children and minorities, the elderly are also at risk, due to the fact that when they retire, Medicare does not cover their dental services.
The Health Insurance Association of America, an industry trade group, says it “recognizes the inexorable link that exists between coverage and increased access to dental services, and good oral health.”
Delta Dental Plans Association is a national network of independently operated not-for-profit dental service corporations that provide dental benefits and community-outreach programs. They say oral diseases are a “silent epidemic”. Dr. Roger C. Smith, chairman of Delta Dental's dental policy committee says, “We have the ability to drastically reduce some of our nation's most common dental diseases, like dental cavities and periodontal disease. Legislators, educators, communities, and providers need to work together to focus on this important issue and continue improving our nation's oral health.”
Recent research findings have linked oral health infections to diabetes, heart and lung disease, stroke and low-birth-weight babies. In the long run, serious dental problems in children can lead to lack of self-esteem, long term stress and depression, and may also interfere with normal, everyday functions, such as eating, breathing, swallowing and speaking.
Tooth DecayTooth decay is the single most common chronic childhood illness. Children in families living below the poverty levels ($18,850 being the annual income for a family of four), have more severe and untreated tooth decay.
Publicly Funded Programs Are Falling BehindReports state that children from low-income families without dental insurance are three times more likely to have dental needs than children with either public or private insurance. Uninsured children are 2.5 times less likely than insured children to receive dental care, and for each child without medical insurance, there are at least 2.6 children without dental insurance. Simply put, having medical insurance with dental benefits greatly influences whether consumers seek dental care.
A new program called The State’s Children’s Health Insurance Program is out in an attempt to get kids covered, and though it increases the number of insured children, many still are left without effective dental insurance. Medicaid has tried to fill the gap in providing dental care to low-income children, but not much progress has been made. Less than one in five Medicaid-covered children received a single dental visit, notes a recent, year-long study.
In addition to low-income children and minorities, the elderly are also at risk, due to the fact that when they retire, Medicare does not cover their dental services.
The Health Insurance Association of America, an industry trade group, says it “recognizes the inexorable link that exists between coverage and increased access to dental services, and good oral health.”
Delta Dental Plans Association is a national network of independently operated not-for-profit dental service corporations that provide dental benefits and community-outreach programs. They say oral diseases are a “silent epidemic”. Dr. Roger C. Smith, chairman of Delta Dental's dental policy committee says, “We have the ability to drastically reduce some of our nation's most common dental diseases, like dental cavities and periodontal disease. Legislators, educators, communities, and providers need to work together to focus on this important issue and continue improving our nation's oral health.”
The A to Zs of Alternative Medicine
Americans are increasingly looking for ways to improve their health and well-being. If you're like others, you may consider your mental and spiritual health to be equally as important as your physical health. Alternative medicine—or nontraditional health care—may meet your needs by caring for both the physical and spiritual aspects of your life.
What is alternative medicine?Alternative medicine is a holistic or whole mind/body approach to health care that complements, rather than competes with, conventional medicine. When diagnosing and treating a patient, an alternative medicine practitioner considers not only the patient's physical health, but his or her mental and spiritual condition as well. Many different alternative treatments exist, including some that are becoming accepted by practitioners of traditional medicine:
ul.new li { margin:0 0 0 0; }
· Acupuncture, which is commonly used for pain relief
· Herbal medicine, including agrimony, which can be used for swelling, indigestion, or muscle tension relief
· Chiropractic techniques—the manipulation and adjustment of the spine and other joints—which are used to relieve pain and associated problems
· Mind/body techniques such as relaxation, visualization, talk therapy, hypnotherapy, yoga, and meditation
Should you use alternative medicine?People who use alternative medicine often believe that good health is not just the absence of disease—it also means being physically, mentally, and spiritually fit. You may decide to use alternative medicine if you believe that:
· It's important to use the best or most promising treatment available, whether conventional or not
· The conventional medicine you are using has been unsatisfactory
· Since no two people are the same—i.e. one person may respond differently to a medication or a treatment than another—a single approach may not work
· Common antibiotics or other prescription drugs may have unknown long-term side effects
· Many of the major causes of disease, including stroke and heart disease, might be prevented or reduced through simple lifestyle changes that include diet, exercise, and stress reduction
· Preventing the cause is better than treating the symptom
· Meditation, deep breathing, yoga, and tai chi can promote physical, mental, and spiritual health
What is the difference between conventional and alternative medicine?Conventional and alternative medicines share the same goal—they seek to cure patients. However, they go about treating the patient's symptoms differently. Alternative medicine will often stimulate the body's natural recuperative powers—the immune system—to assist in the healing process. Alternative medicine is more apt to treat with natural substances such as zinc.
Conventional medicine often uses medications that have an immediate impact on the patient's symptoms. These are often manufactured drugs containing synthetic chemicals. The side effects of these medications can be more severe than those of alternative medications.
Alternative medicine often works best when combined with conventional medicine. In some cases, you may have little choice—although alternative medicine may work well over time, your condition may require immediate treatment, and more conventional methods of medicine may be your only option.
Is alternative medicine really safe?Although it may seem like alternative medicine is a recent development, it has actually been around for longer than conventional medicine. Many of the medications and practices considered nontraditional today have their roots in traditional African, American, Asian, and European medicine. Because of their widespread popularity overseas, some alternative medications used in the United States may have already been tested abroad. Many alternative medicines—and many alternative treatments—don't receive official approval from the Food and Drug administration or conventional medical community because their effects are hard to quantify. Conversely, these same medications and treatments are usually not as dangerous or invasive as more conventional treatments.
Here are some commonsense ways to make using alternative medicine safer:
· Look for a practitioner who is licensed by the state or by a recognized medical association. If the practitioner is licensed, the licensing board will provide you with information about his or her education, training, and background (including disciplinary background).
· Choose a practitioner who uses several alternative therapies or who is trained in both conventional and alternative medicine. The practitioner should listen to you and be sensitive to your needs. You should be able to communicate comfortably and develop a good working relationship.
· After you have chosen a practitioner, ask him or her about the safety and effectiveness of the proposed treatment and mention any therapies and treatment you are already receiving
· Buy medications from reputable sources, and pay attention to the active and inactive ingredients, dosage instructions, and drug interactions listed on the label
Will health insurance cover alternative medicine?Some health plans offer coverage for alternative therapies, such as chiropractic care and massage therapy, but not for alternative medications—these are treated like traditional medications sold over-the-counter. However, many insurers are recognizing that the demand for alternative medications exists and are helping customers learn more by providing information about them. You may even be able to buy alternative medications through your insurer at a discount.
Tips for using alternative medicine
· Avoid treating yourself—seek the advice of a physician
· To find a practitioner of alternative medicine, talk to your current doctor. Your insurer may also be able to provide you with a referral.
· Always do your homework before trying out alternative medicine. Libraries, bookstores, health food stores, and the Internet are good places to start. Your physician or insurer may also be able to provide you with information.
· Continue to gather information even after you have selected an alternative practitioner and/or alternative treatment—this will help you practice the treatment and monitor its effectiveness
What is alternative medicine?Alternative medicine is a holistic or whole mind/body approach to health care that complements, rather than competes with, conventional medicine. When diagnosing and treating a patient, an alternative medicine practitioner considers not only the patient's physical health, but his or her mental and spiritual condition as well. Many different alternative treatments exist, including some that are becoming accepted by practitioners of traditional medicine:
ul.new li { margin:0 0 0 0; }
· Acupuncture, which is commonly used for pain relief
· Herbal medicine, including agrimony, which can be used for swelling, indigestion, or muscle tension relief
· Chiropractic techniques—the manipulation and adjustment of the spine and other joints—which are used to relieve pain and associated problems
· Mind/body techniques such as relaxation, visualization, talk therapy, hypnotherapy, yoga, and meditation
Should you use alternative medicine?People who use alternative medicine often believe that good health is not just the absence of disease—it also means being physically, mentally, and spiritually fit. You may decide to use alternative medicine if you believe that:
· It's important to use the best or most promising treatment available, whether conventional or not
· The conventional medicine you are using has been unsatisfactory
· Since no two people are the same—i.e. one person may respond differently to a medication or a treatment than another—a single approach may not work
· Common antibiotics or other prescription drugs may have unknown long-term side effects
· Many of the major causes of disease, including stroke and heart disease, might be prevented or reduced through simple lifestyle changes that include diet, exercise, and stress reduction
· Preventing the cause is better than treating the symptom
· Meditation, deep breathing, yoga, and tai chi can promote physical, mental, and spiritual health
What is the difference between conventional and alternative medicine?Conventional and alternative medicines share the same goal—they seek to cure patients. However, they go about treating the patient's symptoms differently. Alternative medicine will often stimulate the body's natural recuperative powers—the immune system—to assist in the healing process. Alternative medicine is more apt to treat with natural substances such as zinc.
Conventional medicine often uses medications that have an immediate impact on the patient's symptoms. These are often manufactured drugs containing synthetic chemicals. The side effects of these medications can be more severe than those of alternative medications.
Alternative medicine often works best when combined with conventional medicine. In some cases, you may have little choice—although alternative medicine may work well over time, your condition may require immediate treatment, and more conventional methods of medicine may be your only option.
Is alternative medicine really safe?Although it may seem like alternative medicine is a recent development, it has actually been around for longer than conventional medicine. Many of the medications and practices considered nontraditional today have their roots in traditional African, American, Asian, and European medicine. Because of their widespread popularity overseas, some alternative medications used in the United States may have already been tested abroad. Many alternative medicines—and many alternative treatments—don't receive official approval from the Food and Drug administration or conventional medical community because their effects are hard to quantify. Conversely, these same medications and treatments are usually not as dangerous or invasive as more conventional treatments.
Here are some commonsense ways to make using alternative medicine safer:
· Look for a practitioner who is licensed by the state or by a recognized medical association. If the practitioner is licensed, the licensing board will provide you with information about his or her education, training, and background (including disciplinary background).
· Choose a practitioner who uses several alternative therapies or who is trained in both conventional and alternative medicine. The practitioner should listen to you and be sensitive to your needs. You should be able to communicate comfortably and develop a good working relationship.
· After you have chosen a practitioner, ask him or her about the safety and effectiveness of the proposed treatment and mention any therapies and treatment you are already receiving
· Buy medications from reputable sources, and pay attention to the active and inactive ingredients, dosage instructions, and drug interactions listed on the label
Will health insurance cover alternative medicine?Some health plans offer coverage for alternative therapies, such as chiropractic care and massage therapy, but not for alternative medications—these are treated like traditional medications sold over-the-counter. However, many insurers are recognizing that the demand for alternative medications exists and are helping customers learn more by providing information about them. You may even be able to buy alternative medications through your insurer at a discount.
Tips for using alternative medicine
· Avoid treating yourself—seek the advice of a physician
· To find a practitioner of alternative medicine, talk to your current doctor. Your insurer may also be able to provide you with a referral.
· Always do your homework before trying out alternative medicine. Libraries, bookstores, health food stores, and the Internet are good places to start. Your physician or insurer may also be able to provide you with information.
· Continue to gather information even after you have selected an alternative practitioner and/or alternative treatment—this will help you practice the treatment and monitor its effectiveness
The Truth About Lies-When Doctors Change Information To Get HMO Approval
The relationship between doctors and health insurance companies can be a rocky one at that, and much of the tension stems from the hassles doctors encounter when it comes to HMO denials. The potential for HMO's to deny a request, coupled with the hassles surrounding the denial, have risen to the point of doctors actually misrepresenting their patients, just to get approval. If a patient's HMO denies their request, a doctor can appeal the decision, but the process to get a health insurance company to change their decision is a troublesome one.
Studies have shown doctors are more willing to lie about their patient's medical condition to get them approved when their case is considered severe, or when there is a high likelihood that an appeal will be denied. If the appeal has a higher probability rate for acceptance, doctors and physicians are less prone to stretch the truth when it comes to medical records and conditions. The more likely the HMO will deny coverage, the more likely a doctor will consider lying about the patient's condition.
The potential problem that may arise if a doctor lies to a health insurance company about a patient's medical condition is that the lie will also be reflected in the patient's medical records. A little white lie to the HMO company may seem innocent at the time; but the lie could wreak havoc if the patient switches doctors or develops a more serious illness. And while doctors think they are helping their patients through the HMO approval process, in reality, they could be setting them up to fall.
Many solutions have been suggested, but it really comes down to doctors and health insurance companies working together to control cost and provide access to the best health care for patients.
Studies have shown doctors are more willing to lie about their patient's medical condition to get them approved when their case is considered severe, or when there is a high likelihood that an appeal will be denied. If the appeal has a higher probability rate for acceptance, doctors and physicians are less prone to stretch the truth when it comes to medical records and conditions. The more likely the HMO will deny coverage, the more likely a doctor will consider lying about the patient's condition.
The potential problem that may arise if a doctor lies to a health insurance company about a patient's medical condition is that the lie will also be reflected in the patient's medical records. A little white lie to the HMO company may seem innocent at the time; but the lie could wreak havoc if the patient switches doctors or develops a more serious illness. And while doctors think they are helping their patients through the HMO approval process, in reality, they could be setting them up to fall.
Many solutions have been suggested, but it really comes down to doctors and health insurance companies working together to control cost and provide access to the best health care for patients.
Short-Term Health Insurance
You've just graduated from college or moved out on your own, and you're no longer covered under your parents' health insurance plan. Or perhaps you've flown the coop on your cubicle job and you're looking for the next big thing. Maybe you've found a new job, but your new employer's group health insurance plan won't kick in until you've been with the company for three months. These are good reasons to look into short-term health insurance if it's available in your state.
What's in a name . . . As the name implies, short-term health insurance typically offers coverage for 30 to 180 days, although some plans will cover you initially for up to 12 months. If your short-term need runs longer than the coverage, you may be able to renew the plan, but don't count on anything beyond a year.
Most short-term plans will cover you in the event of an accident or a sudden illness. As you might expect with almost any health insurance plan, short-term plans may have benefit limits, and you'll be required to cover an initial deductible and to make co-payments. You'll be allowed to pick your own doctors, hospitals, or other health-care providers. You'll get coverage for inpatient and outpatient services, hospital room (including intensive care unit) and board charges, lab examinations, and X rays. These plans rarely require a physical exam, and coverage often begins as soon as the insurer receives your application and first premium payment. Applications may be mailed in or submitted over the Internet, and payments may be made by check or credit card. Check with the provider for complete information on coverage and the application process.
. . . And what's not To keep the premiums down, short-term health insurance plans don't offer all of the benefits of permanent plans. Most won't cover treatment of a pre-existing condition (i.e. an illness or injury that has produced signs or symptoms, or for which you've received treatment, in the past five years). In addition, these plans don't cover routine medical exams, preventive care, dental or optical care, or pregnancy and childbirth expenses.
Short-term health insurance policies are exempt from the Health Insurance Portability and Accountability Act of 1996. Insurance carriers issuing these policies don't have to guarantee their renewability, and most don't. They also don't have to waive any pre-existing condition limitations for individuals otherwise eligible for those waivers.
But despite their limitations, short-term health insurance plans can help you fill the gaps in your health insurance coverage. And that's just what the doctor ordered!
What's in a name . . . As the name implies, short-term health insurance typically offers coverage for 30 to 180 days, although some plans will cover you initially for up to 12 months. If your short-term need runs longer than the coverage, you may be able to renew the plan, but don't count on anything beyond a year.
Most short-term plans will cover you in the event of an accident or a sudden illness. As you might expect with almost any health insurance plan, short-term plans may have benefit limits, and you'll be required to cover an initial deductible and to make co-payments. You'll be allowed to pick your own doctors, hospitals, or other health-care providers. You'll get coverage for inpatient and outpatient services, hospital room (including intensive care unit) and board charges, lab examinations, and X rays. These plans rarely require a physical exam, and coverage often begins as soon as the insurer receives your application and first premium payment. Applications may be mailed in or submitted over the Internet, and payments may be made by check or credit card. Check with the provider for complete information on coverage and the application process.
. . . And what's not To keep the premiums down, short-term health insurance plans don't offer all of the benefits of permanent plans. Most won't cover treatment of a pre-existing condition (i.e. an illness or injury that has produced signs or symptoms, or for which you've received treatment, in the past five years). In addition, these plans don't cover routine medical exams, preventive care, dental or optical care, or pregnancy and childbirth expenses.
Short-term health insurance policies are exempt from the Health Insurance Portability and Accountability Act of 1996. Insurance carriers issuing these policies don't have to guarantee their renewability, and most don't. They also don't have to waive any pre-existing condition limitations for individuals otherwise eligible for those waivers.
But despite their limitations, short-term health insurance plans can help you fill the gaps in your health insurance coverage. And that's just what the doctor ordered!
Long-Term Care: Choices and Options
As you grow older, you may be concerned about your housing options. Will you be able to take care of the family home, mow the grass, and rake the leaves? Will you be able to take care of your own personal needs, cook your meals, and bathe yourself? If you think you might need long-term personal care in the future, now's the time to consider your options. In-home Care If you need personal or health-care assistance but want to remain as independent as possible, you might consider in-home care as an alternative to nursing homes or other facilities. In-home care may include health care (nursing services), household help (homemaker services), and personal care (companion or caretaker services). You can obtain these services by hiring private individuals or contracting with a home health agency, such as the local Visiting Nurse Association. Such agencies, if they are certified, comply with Medicare and Medicaid regulations.
Continuing care retirement communities A form of assisted living, continuing care retirement communities (CCRCs) are also known as life care communities. They offer you housing, meals, social activities, and health care ranging from minimal personal assistance to skilled nursing care. Such communities may be ideal for you if you are in good health but are worried that you may need such care in the future.
In exchange for a one-time entrance fee (which can range from $50,000 to over $300,000) and a monthly maintenance fee ($800 to over $4,000), you're guaranteed that the CCRC will provide you with housing and nursing home care for the rest of your life. Depending on your contract with the facility, the CCRC may keep your entrance fee and then assign your apartment to someone else when you die.
Make sure the CCRC offers you the level of health-care coverage that you feel you may need, and find out if the cost of that coverage is included in your basic contract or is an additional expense. You should also find out how much say you have in decisions such as determining when you must leave your apartment and move into the nursing home portion of the facility.
If you choose a CCRC as a long-term care option, be sure to read the fine print of the contract. Make sure you understand the entrance and maintenance fee requirements. You'll also want to be aware of any additional requirements that the contract might impose on you. In some cases, you may have to purchase additional insurance to cover your short-term or long-term health-care costs. Because this is a long-term commitment, you need to check the financial stability of the facility and the company that operates it. For assistance, contact the Continuing Care Accreditation Commission.
Nursing homes Generally speaking, nursing homes take care of you when you cannot care for yourself. Such care may be short-term while you recover from an illness or injury, or long-term because either physical or mental incapacitation makes it impossible for you to care for yourself. Nursing homes offer round-the-clock medical care. This care may be:
Skilled nursing care, which is ordered by a doctor and provided by qualified personnel such as registered nurses or professional therapists. Such care is designed to treat a medical condition from which you're expected to recover. Intermediate care or nursing and rehabilitative assistance provided as you need it by qualified medical personnel under a doctor's supervision. Custodial care or assistance with personal needs such as bathing, eating, or dressing. Such care is performed under a doctor's supervision but is provided by personnel without professional medical training. If you're thinking of entering a nursing home, you'll have many factors to consider. If you'll need medical care (or think you might), find out if the nursing home provides the level of care you'll need. Beyond that, consider whether the facility itself is clean and well maintained, the environment is one that stimulates you, and the staff members are people whom you trust and enjoy. Take a family member or friend with you to visit the nursing home and ask for his or her honest opinion. If a nursing home is to be your home, you want it to be a place where you can feel at home. For more assistance with this search, contact your state department of elder services.
Paying for it The choice you make from among these options may depend in part on what you can afford. Nursing homes typically charge a fixed daily rate, and the cost can vary widely, depending on the care you receive and the geographic location of the facility. You can pay the bill with private funds, the proceeds from long-term care insurance, or (if you're eligible) government assistance from Medicaid.
In most cases, you'll have to pay for a CCRC or other assisted-living option, either with your own funds or with the proceeds of a long-term care insurance policy. Medicare covers only your health-care-related expenses, and only at facilities licensed to provide medical care.
Under certain conditions, Medicare covers short-term in-home health care that's medically necessary. Most long-term care insurance policies now also cover in-home care. In many cases, you might elect to pay for in-home health care with your own funds; be aware that you may be able to deduct the expense on your tax returns.
Although long-term care isn't a topic most people are eager to consider, don't put off doing so until the last moment. The longer you wait to make a plan, the more likely you won't be able to afford one
Continuing care retirement communities A form of assisted living, continuing care retirement communities (CCRCs) are also known as life care communities. They offer you housing, meals, social activities, and health care ranging from minimal personal assistance to skilled nursing care. Such communities may be ideal for you if you are in good health but are worried that you may need such care in the future.
In exchange for a one-time entrance fee (which can range from $50,000 to over $300,000) and a monthly maintenance fee ($800 to over $4,000), you're guaranteed that the CCRC will provide you with housing and nursing home care for the rest of your life. Depending on your contract with the facility, the CCRC may keep your entrance fee and then assign your apartment to someone else when you die.
Make sure the CCRC offers you the level of health-care coverage that you feel you may need, and find out if the cost of that coverage is included in your basic contract or is an additional expense. You should also find out how much say you have in decisions such as determining when you must leave your apartment and move into the nursing home portion of the facility.
If you choose a CCRC as a long-term care option, be sure to read the fine print of the contract. Make sure you understand the entrance and maintenance fee requirements. You'll also want to be aware of any additional requirements that the contract might impose on you. In some cases, you may have to purchase additional insurance to cover your short-term or long-term health-care costs. Because this is a long-term commitment, you need to check the financial stability of the facility and the company that operates it. For assistance, contact the Continuing Care Accreditation Commission.
Nursing homes Generally speaking, nursing homes take care of you when you cannot care for yourself. Such care may be short-term while you recover from an illness or injury, or long-term because either physical or mental incapacitation makes it impossible for you to care for yourself. Nursing homes offer round-the-clock medical care. This care may be:
Skilled nursing care, which is ordered by a doctor and provided by qualified personnel such as registered nurses or professional therapists. Such care is designed to treat a medical condition from which you're expected to recover. Intermediate care or nursing and rehabilitative assistance provided as you need it by qualified medical personnel under a doctor's supervision. Custodial care or assistance with personal needs such as bathing, eating, or dressing. Such care is performed under a doctor's supervision but is provided by personnel without professional medical training. If you're thinking of entering a nursing home, you'll have many factors to consider. If you'll need medical care (or think you might), find out if the nursing home provides the level of care you'll need. Beyond that, consider whether the facility itself is clean and well maintained, the environment is one that stimulates you, and the staff members are people whom you trust and enjoy. Take a family member or friend with you to visit the nursing home and ask for his or her honest opinion. If a nursing home is to be your home, you want it to be a place where you can feel at home. For more assistance with this search, contact your state department of elder services.
Paying for it The choice you make from among these options may depend in part on what you can afford. Nursing homes typically charge a fixed daily rate, and the cost can vary widely, depending on the care you receive and the geographic location of the facility. You can pay the bill with private funds, the proceeds from long-term care insurance, or (if you're eligible) government assistance from Medicaid.
In most cases, you'll have to pay for a CCRC or other assisted-living option, either with your own funds or with the proceeds of a long-term care insurance policy. Medicare covers only your health-care-related expenses, and only at facilities licensed to provide medical care.
Under certain conditions, Medicare covers short-term in-home health care that's medically necessary. Most long-term care insurance policies now also cover in-home care. In many cases, you might elect to pay for in-home health care with your own funds; be aware that you may be able to deduct the expense on your tax returns.
Although long-term care isn't a topic most people are eager to consider, don't put off doing so until the last moment. The longer you wait to make a plan, the more likely you won't be able to afford one
Eating Your Way into the Hospital and the Poorhouse
Ballooning costs and ballooning waistlines. When it comes to health and health insurance, these are the two biggest issues on the plate today. But are these really two separate problems? You already know that too many super-sized meal deals will cost you in the long-term, but you may not have realized how much of a price you`re paying now --in health insurance dollars-- for the national weight problem. Dollars & Pounds
Health insurance rates have long been on the upswing, with double-digit increases in each of the past three years. Most analysts blame an increased use of medical services for driving up costs. But are we really just a nation of doctor`s office junkies? Surely we don`t go for fun. Why are we seeing the doctor so much anyway? The answer may be: obesity. Curiously, insurance started getting more expensive at about the same time Americans really started getting heavier. It`s impossible to know exactly how much obesity contributes to the increase in insurance costs, but take a look at some numbers: Over 60% of Americans presently qualify as overweight or obese. Even among children, obesity rates have tripled over the past decade. And obesity is known to result in a higher risk of heart disease, diabetes, stroke and certain types of cancer, as well as respiratory problems. And get this: The Surgeon General`s office estimates that, all told, obesity cost the economy $117 billion in the year 2000 alone. Obesity and Health Insurance
Insurance companies understand that obesity isn`t profitable. If you`re an obese person trying to get health coverage on your own, chances are that you`ll be turned down due to the risks associated with your weight. And if you`re not turned down, you`ll probably pay more for coverage, up to twice as much as a slim person. Even though you can`t be turned down for employer-sponsored health insurance based upon your weight, the increased cost of insuring you is still there, borne not only by yourself but by your coworkers as well.
Now this doesn`t mean that slim folks should blame heavier folks for the annual insurance rate hikes that everyone dreads. There are other factors involved, like the increased use of prescription drugs and the renegotiation of rates that insurance companies pay to doctors. But, these examples serve to demonstrate the fact that this problem touches most all of us in one way or another. And if so many Americans across the country are obese and it`s twice as expensive to profitably insure an obese person, you can begin to see how big a role expanding girth may play in expanding health insurance costs.
Our Prospects for a National Diet
So, what can be done, and who`s responsible? In the United States, it`s expected that obesity will soon overtake smoking as the number-one cause of preventable death. Through a combination of government action and an aggressive public persuasion campaign, smoking is on the decline. These tactics can be employed in the battle on obesity as well. Perhaps a greater awareness of the connection between obesity and health insurance costs will encourage government and public health organizations to step into the fray. Perhaps it will prod health insurance companies to expand coverage for weight-loss programs and procedures. And if we as individuals can`t bring ourselves to take our health more seriously, perhaps we can bring ourselves to take our pocketbooks more seriously.
Health insurance rates have long been on the upswing, with double-digit increases in each of the past three years. Most analysts blame an increased use of medical services for driving up costs. But are we really just a nation of doctor`s office junkies? Surely we don`t go for fun. Why are we seeing the doctor so much anyway? The answer may be: obesity. Curiously, insurance started getting more expensive at about the same time Americans really started getting heavier. It`s impossible to know exactly how much obesity contributes to the increase in insurance costs, but take a look at some numbers: Over 60% of Americans presently qualify as overweight or obese. Even among children, obesity rates have tripled over the past decade. And obesity is known to result in a higher risk of heart disease, diabetes, stroke and certain types of cancer, as well as respiratory problems. And get this: The Surgeon General`s office estimates that, all told, obesity cost the economy $117 billion in the year 2000 alone. Obesity and Health Insurance
Insurance companies understand that obesity isn`t profitable. If you`re an obese person trying to get health coverage on your own, chances are that you`ll be turned down due to the risks associated with your weight. And if you`re not turned down, you`ll probably pay more for coverage, up to twice as much as a slim person. Even though you can`t be turned down for employer-sponsored health insurance based upon your weight, the increased cost of insuring you is still there, borne not only by yourself but by your coworkers as well.
Now this doesn`t mean that slim folks should blame heavier folks for the annual insurance rate hikes that everyone dreads. There are other factors involved, like the increased use of prescription drugs and the renegotiation of rates that insurance companies pay to doctors. But, these examples serve to demonstrate the fact that this problem touches most all of us in one way or another. And if so many Americans across the country are obese and it`s twice as expensive to profitably insure an obese person, you can begin to see how big a role expanding girth may play in expanding health insurance costs.
Our Prospects for a National Diet
So, what can be done, and who`s responsible? In the United States, it`s expected that obesity will soon overtake smoking as the number-one cause of preventable death. Through a combination of government action and an aggressive public persuasion campaign, smoking is on the decline. These tactics can be employed in the battle on obesity as well. Perhaps a greater awareness of the connection between obesity and health insurance costs will encourage government and public health organizations to step into the fray. Perhaps it will prod health insurance companies to expand coverage for weight-loss programs and procedures. And if we as individuals can`t bring ourselves to take our health more seriously, perhaps we can bring ourselves to take our pocketbooks more seriously.
The Right Time to Buy Long-Term Care Insurance
The older you get, the more likely your chances are of requiring some type of long-term care assistance. And because you know that the cost of even just a few years of long-term care can easily wipe out your life savings, you're thinking about buying long-term care insurance (LTCI). For the most part, deciding when to purchase LTCI will depend on your age and your ability to pay the premiums. Since premiums are based on your age at the time you purchase the policy, the younger you are when you purchase LTCI, the less expensive your premiums will be. However, there's a tradeoff. If you purchase LTCI early, you may be paying premiums over a long time period.
So, just when is the right time to buy an LTCI policy? Although insurance companies will write an LTCI policy for anyone between the ages of 40 and 84, most people purchase LTCI when they reach their 50s or 60s. That way, they won't end up paying significantly higher premiums because they waited too long to purchase a policy.
Should you purchase an LTCI policy? Deciding whether you should purchase an LTCI policy depends on your individual circumstances. However, you may want to consider purchasing an LTCI policy if some of the following criteria apply:
You are between the ages of 40 and 84 You have significant savings and other assets that you would like to protect You are in good health and thus insurable You can afford to pay the premiums now and will be able to afford to pay the premiums in the future
LTCI policy features The following is a list of common LTCI policy features. Some are part of the standard policy, while others are available as options and riders at an additional cost. Coverage for skilled, intermediate, and custodial care A choice of where care is received (e.g., private home setting, adult day-care setting, assisted-living facility, nursing home) Trigger of benefits when activities of daily living cannot be performed independently (e.g. bathing, toileting, eating) Guaranteed renewable provision (the policy cannot be canceled) Inflation protection Waiver of premium provision (premium payments are stopped while the beneficiary receives benefits) "Free look" provision Respite care coverage Grace period for late payment Third-party notification of missed premiums
So, just when is the right time to buy an LTCI policy? Although insurance companies will write an LTCI policy for anyone between the ages of 40 and 84, most people purchase LTCI when they reach their 50s or 60s. That way, they won't end up paying significantly higher premiums because they waited too long to purchase a policy.
Should you purchase an LTCI policy? Deciding whether you should purchase an LTCI policy depends on your individual circumstances. However, you may want to consider purchasing an LTCI policy if some of the following criteria apply:
You are between the ages of 40 and 84 You have significant savings and other assets that you would like to protect You are in good health and thus insurable You can afford to pay the premiums now and will be able to afford to pay the premiums in the future
LTCI policy features The following is a list of common LTCI policy features. Some are part of the standard policy, while others are available as options and riders at an additional cost. Coverage for skilled, intermediate, and custodial care A choice of where care is received (e.g., private home setting, adult day-care setting, assisted-living facility, nursing home) Trigger of benefits when activities of daily living cannot be performed independently (e.g. bathing, toileting, eating) Guaranteed renewable provision (the policy cannot be canceled) Inflation protection Waiver of premium provision (premium payments are stopped while the beneficiary receives benefits) "Free look" provision Respite care coverage Grace period for late payment Third-party notification of missed premiums
PIP vs. MedPay Insurance Coverage
If you live in a state that is considered “no fault,” you are required to purchase either Personal Injury Protection (PIP) or Medical Payments (MedPay) insurance coverage. PIP and MedPay cover the medical bills of you and the passengers in your car, in the event of an accident. They are both designed for “immediate and short-term care,” so if you have health insurance coverage as well as either one of these, MedPay or PIP will be used first if you file a claim.
If you have MedPay as part of your car insurance policy, there are a couple steps to follow when filing a claim. You must first pay for your treatment upfront and obtain a receipt from the doctor or hospital. Then you will send that receipt to your insurance company and wait for the reimbursement check. If you use MedPay for medical expenses, inform the doctor or hospital that your auto insurance will pay for the rest of the treatment.
Some insurance companies allow the policyholder to decide which coverage to use, be it MedPay or health insurance. In no-fault states, such as Pennsylvania or New York, MedPay or PIP is the primary coverage when you’re injured in a car accident. If you live in a state without no-fault insurance, but have MedPay or PIP on your car insurance policy, be sure to use it first to pay for medical expenses, because some health insurers might deny coverage unless you exhaust all/any MedPay or PIP benefits.
“No-fault” StateIf you live in a no-fault state, there is no reason to buy both MedPay and PIP. This is because PIP provides insurance coverage that is equal and beyond MedPay. Keep in mind, though, PIP has a 20% deductible, where as MedPay has none.
MedPay covers reasonable and necessary expenses for medical, surgical, dental, and chiropractic treatment. It also covers hospitalization, ambulance services, X-rays, nursing services, prosthetic devices and funeral services. If you have health insurance or belong to an HMO, your probably don’t need it. Also, it is no substitute for broader health insurance, and few companies are willing to sell more than $25,000 worth of MedPay coverage – something to keep in mind when deciding on what to get.
PIP covers the same services as MedPay, but also many more. It also covers psychiatric, physical, occupational therapy and rehabilitation, and any other professional health services. In addition, PIP covers lost wages, reasonable costs other than medical and work-loss expenses, and a small death benefit. It’s best to check your policy for exact details on what PIP covers for you.
Having both MedPay and PIP is considered duplicate insurance coverage in many situations. MedPay is more “valuable” in situations where you’re driving with someone who is not family, because even if they don’t have health insurance, they are still considered covered. MedPay can also help off-set the deductible that comes along with PIP.
If you have MedPay as part of your car insurance policy, there are a couple steps to follow when filing a claim. You must first pay for your treatment upfront and obtain a receipt from the doctor or hospital. Then you will send that receipt to your insurance company and wait for the reimbursement check. If you use MedPay for medical expenses, inform the doctor or hospital that your auto insurance will pay for the rest of the treatment.
Some insurance companies allow the policyholder to decide which coverage to use, be it MedPay or health insurance. In no-fault states, such as Pennsylvania or New York, MedPay or PIP is the primary coverage when you’re injured in a car accident. If you live in a state without no-fault insurance, but have MedPay or PIP on your car insurance policy, be sure to use it first to pay for medical expenses, because some health insurers might deny coverage unless you exhaust all/any MedPay or PIP benefits.
“No-fault” StateIf you live in a no-fault state, there is no reason to buy both MedPay and PIP. This is because PIP provides insurance coverage that is equal and beyond MedPay. Keep in mind, though, PIP has a 20% deductible, where as MedPay has none.
MedPay covers reasonable and necessary expenses for medical, surgical, dental, and chiropractic treatment. It also covers hospitalization, ambulance services, X-rays, nursing services, prosthetic devices and funeral services. If you have health insurance or belong to an HMO, your probably don’t need it. Also, it is no substitute for broader health insurance, and few companies are willing to sell more than $25,000 worth of MedPay coverage – something to keep in mind when deciding on what to get.
PIP covers the same services as MedPay, but also many more. It also covers psychiatric, physical, occupational therapy and rehabilitation, and any other professional health services. In addition, PIP covers lost wages, reasonable costs other than medical and work-loss expenses, and a small death benefit. It’s best to check your policy for exact details on what PIP covers for you.
Having both MedPay and PIP is considered duplicate insurance coverage in many situations. MedPay is more “valuable” in situations where you’re driving with someone who is not family, because even if they don’t have health insurance, they are still considered covered. MedPay can also help off-set the deductible that comes along with PIP.
College Student Health Plans
By the time your children toss their high school graduation caps into the air, they'll probably have a good idea about their intended college and course of study, but is their health insurance something you've thought about?
Many times, a parent's medical plan will cover their children until they're 24 years old. If your health insurance plan does not cover college students, it would be beneficial to look into what college health plans are offered at your child's university.
College health insurance basicsCollege health insurance plans may be subsidized by tuition at some schools, and may ultimately save parents money. College health insurance plans are not free, and the benefits may vary from college to college. Health insurance companies meet with committees from different schools to design a plan, specifically tailored to that school's students. Free services may be offered at the health center.
If you choose to purchase the college health insurance plan for your student, office visits will usually be fully covered, but students may be charged a co-pay for lab work, x-rays, physical therapy, prescriptions, and procedures such as treatment for a wound. Other services that may be covered include mental health, newborn and infant care, routine pap and pelvic exams, routine AIDS/STD testing, as well as cholesterol screenings. Premiums and benefits vary from college to college, sometimes due to state laws.
Out-of-network problemsA key question-if you're considering keeping your student on your family plan-is whether doctors from your network will be easily available if your student is out-of-state. All HMO-only plans require referrals for visits to out-of-network providers and to specialists. And, PPO plans will reimburse less for visits to out-of-network physicians. If your child chooses a college out of state, and you want them to get prompt medical care without having to call home for a physician's referral, it would be a good idea to consider the college health plan offered by their school. What are health insurance networks, and what are the different types of plans? Learn more about HMO, PPO, and POS plans.
Things to consider when evaluating a college health insurance policySeveral factors can make a crucial difference in timely care. Be sure to find out:
Are there restrictions on the providers a student can use? If the student is on vacation, what kind of coverage do they have? If the student is not enrolled in classes (during summer or winter break) do they still have health insurance coverage? Are the most efficient treatment facilities at the college easily accessible? What are the low-cost or free services that are offered through the campus health clinic?Don't let your child's coverage lapseIf your child has a pre-existing medical condition, a lapse in health insurance coverage could cause problems later. Under HIPAA (the Health Insurance Portability and Accountability Act), pre-existing conditions can only be subject to coverage exclusions for 12 months (or 18 months in the case of late plan enrollment). However, if qualifying coverage is maintained without a lapse of 63 days, the health insurance company must subtract the length of coverage from the exclusion period. For example, 8 months of prior coverage would result in a 4-month exclusion period, whereas 18 years of coverage would result in no exclusion period. Therefore, it's important to maintain continuous coverage of all conditions, even if it means buying temporary health insurance or enrolling in a high-priced plan for a short period.
Many times, a parent's medical plan will cover their children until they're 24 years old. If your health insurance plan does not cover college students, it would be beneficial to look into what college health plans are offered at your child's university.
College health insurance basicsCollege health insurance plans may be subsidized by tuition at some schools, and may ultimately save parents money. College health insurance plans are not free, and the benefits may vary from college to college. Health insurance companies meet with committees from different schools to design a plan, specifically tailored to that school's students. Free services may be offered at the health center.
If you choose to purchase the college health insurance plan for your student, office visits will usually be fully covered, but students may be charged a co-pay for lab work, x-rays, physical therapy, prescriptions, and procedures such as treatment for a wound. Other services that may be covered include mental health, newborn and infant care, routine pap and pelvic exams, routine AIDS/STD testing, as well as cholesterol screenings. Premiums and benefits vary from college to college, sometimes due to state laws.
Out-of-network problemsA key question-if you're considering keeping your student on your family plan-is whether doctors from your network will be easily available if your student is out-of-state. All HMO-only plans require referrals for visits to out-of-network providers and to specialists. And, PPO plans will reimburse less for visits to out-of-network physicians. If your child chooses a college out of state, and you want them to get prompt medical care without having to call home for a physician's referral, it would be a good idea to consider the college health plan offered by their school. What are health insurance networks, and what are the different types of plans? Learn more about HMO, PPO, and POS plans.
Things to consider when evaluating a college health insurance policySeveral factors can make a crucial difference in timely care. Be sure to find out:
Are there restrictions on the providers a student can use? If the student is on vacation, what kind of coverage do they have? If the student is not enrolled in classes (during summer or winter break) do they still have health insurance coverage? Are the most efficient treatment facilities at the college easily accessible? What are the low-cost or free services that are offered through the campus health clinic?Don't let your child's coverage lapseIf your child has a pre-existing medical condition, a lapse in health insurance coverage could cause problems later. Under HIPAA (the Health Insurance Portability and Accountability Act), pre-existing conditions can only be subject to coverage exclusions for 12 months (or 18 months in the case of late plan enrollment). However, if qualifying coverage is maintained without a lapse of 63 days, the health insurance company must subtract the length of coverage from the exclusion period. For example, 8 months of prior coverage would result in a 4-month exclusion period, whereas 18 years of coverage would result in no exclusion period. Therefore, it's important to maintain continuous coverage of all conditions, even if it means buying temporary health insurance or enrolling in a high-priced plan for a short period.
Understanding the Difference Between HMO, PPO, and POS
Which health insurance plan is best for your small business?
Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point-of-Service Plans (POS) are all types of managed health care. The purpose of managed care is to provide its members with access to a comprehensive system of medical care that offers savings and encourages quality service. While larger companies can afford to offer a choice of health plans, a smaller business can save money by comparing health insurance plans each year before the annual enrollment period. While cost is a key factor, make sure that the network you select provides convenience and coverage in your local area. Health Maintenance Organizations (HMO)When your health care coverage is provided by a Health Maintenance Organization, you typically must select an HMO physician to be your primary health care provider. This doctor will coordinate all of your medical care, including referrals to specialists, such as a dermatologist, cardiologist or surgeon. If you choose to seek treatment from a non-network physician, you will generally be required to pay most of the cost yourself. By law, an HMO cannot require referrals for emergency care, so an HMO will pay for emergency room treatment without a referral.
Due to the restriction of choosing from mostly HMO network services, it's important to check the physician listing and hospital affiliations for the HMO you are considering. If the list is extensive and you are satisfied with the hospitals used by the HMO network, an HMO may be a good choice. On average, HMOs are the least expensive health option for employers and employees. Doctor's visits, preventive care, and medical treatment are covered by your monthly insurance premium, and there is no individual or family deductible to meet. There is generally a co-payment for each visit that varies based on the type of service provided and the plan you select, but typically no co-insurance. Most standard HMO plans do not have a lifetime maximum benefit amount. Some HMOs are starting to offer more choices in plan configuration, allowing their members to visit preferred providers outside of the network. This gives their members access to an HMO network and a PPO network at the same time, although the PPO portion usually involves deductibles and co-insurance.
Preferred Provider Organizations (PPO)A Preferred Provided Organization is more flexible than a traditional HMO insurance plan, but it still operates with a list of physicians and hospitals that are considered "within the PPO network." With a PPO plan, you may visit an out-of-network provider and still receive some coverage for their services. However, because the insurance company has not negotiated discounted rates with these providers, you will usually have to pay co-insurance or the difference between the network and out-of-network prices. The co-payment amounts for office visits and other services are also smaller if you see a doctor in the PPO network than if you see an out-of-network doctor. If you do choose to stray from your PPO network, you may need to pay for the treatment and submit the receipt to your PPO insurance provider for a partial reimbursement. Lastly, you do not need a referral if you wish to see a specialist, nor do you usually need to select a primary care physician.
HMO vs. PPO Prescription PlansBoth plans may include a prescription drug benefit if you, as an employer, choose to offer one. You can decide what percentage of each prescription is covered by your HMO or PPO and what percentage the employee will be required to pay. The coverage price may range anywhere from a co-pay of $5 for some drugs, to a co-pay of almost the entire amount for others. Most plans also include a higher co-payment if the employee chooses a brand name drug over a generic formula, if one was available and recommended by the physician. Some HMO medical buildings have an in-house pharmacy, which may be an added convenience.
Point-of-Service Plan (POS)The POS plan is like a combination of the HMO and PPO plans. You are required to designate an in-network physician to be your primary health care provider. You may go out-of-network if you choose, but in doing so, you will have to pay most of the cost yourself, unless a primary care physician refers you to that specific doctor. In that instance, the health plan will pay all or most of your bill. Depending on the networks available in your area, a POS plan may be a great choice for your small business, if your employees work in multiple cities with different groups of doctors and hospitals available to them.
There are many choices for today's small businesses, and some health insurance companies give you the ability to offer more than one option to your employees.
Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point-of-Service Plans (POS) are all types of managed health care. The purpose of managed care is to provide its members with access to a comprehensive system of medical care that offers savings and encourages quality service. While larger companies can afford to offer a choice of health plans, a smaller business can save money by comparing health insurance plans each year before the annual enrollment period. While cost is a key factor, make sure that the network you select provides convenience and coverage in your local area. Health Maintenance Organizations (HMO)When your health care coverage is provided by a Health Maintenance Organization, you typically must select an HMO physician to be your primary health care provider. This doctor will coordinate all of your medical care, including referrals to specialists, such as a dermatologist, cardiologist or surgeon. If you choose to seek treatment from a non-network physician, you will generally be required to pay most of the cost yourself. By law, an HMO cannot require referrals for emergency care, so an HMO will pay for emergency room treatment without a referral.
Due to the restriction of choosing from mostly HMO network services, it's important to check the physician listing and hospital affiliations for the HMO you are considering. If the list is extensive and you are satisfied with the hospitals used by the HMO network, an HMO may be a good choice. On average, HMOs are the least expensive health option for employers and employees. Doctor's visits, preventive care, and medical treatment are covered by your monthly insurance premium, and there is no individual or family deductible to meet. There is generally a co-payment for each visit that varies based on the type of service provided and the plan you select, but typically no co-insurance. Most standard HMO plans do not have a lifetime maximum benefit amount. Some HMOs are starting to offer more choices in plan configuration, allowing their members to visit preferred providers outside of the network. This gives their members access to an HMO network and a PPO network at the same time, although the PPO portion usually involves deductibles and co-insurance.
Preferred Provider Organizations (PPO)A Preferred Provided Organization is more flexible than a traditional HMO insurance plan, but it still operates with a list of physicians and hospitals that are considered "within the PPO network." With a PPO plan, you may visit an out-of-network provider and still receive some coverage for their services. However, because the insurance company has not negotiated discounted rates with these providers, you will usually have to pay co-insurance or the difference between the network and out-of-network prices. The co-payment amounts for office visits and other services are also smaller if you see a doctor in the PPO network than if you see an out-of-network doctor. If you do choose to stray from your PPO network, you may need to pay for the treatment and submit the receipt to your PPO insurance provider for a partial reimbursement. Lastly, you do not need a referral if you wish to see a specialist, nor do you usually need to select a primary care physician.
HMO vs. PPO Prescription PlansBoth plans may include a prescription drug benefit if you, as an employer, choose to offer one. You can decide what percentage of each prescription is covered by your HMO or PPO and what percentage the employee will be required to pay. The coverage price may range anywhere from a co-pay of $5 for some drugs, to a co-pay of almost the entire amount for others. Most plans also include a higher co-payment if the employee chooses a brand name drug over a generic formula, if one was available and recommended by the physician. Some HMO medical buildings have an in-house pharmacy, which may be an added convenience.
Point-of-Service Plan (POS)The POS plan is like a combination of the HMO and PPO plans. You are required to designate an in-network physician to be your primary health care provider. You may go out-of-network if you choose, but in doing so, you will have to pay most of the cost yourself, unless a primary care physician refers you to that specific doctor. In that instance, the health plan will pay all or most of your bill. Depending on the networks available in your area, a POS plan may be a great choice for your small business, if your employees work in multiple cities with different groups of doctors and hospitals available to them.
There are many choices for today's small businesses, and some health insurance companies give you the ability to offer more than one option to your employees.
Pros and Cons of Catastrophic Health Insurance
Catastrophic health insurance plans—more formally known as High Deductible Health Plans (HDHPs)—were created as a way to lower overall medical costs by providing a lower monthly premium in exchange for a higher annual health insurance deductible. With catastrophic health insurance plans, you pay for almost all medical care until you reach the annual deductible amount. After that, traditional health insurance coverage begins.
About High Deductible Health PlansUnder a high deductible plan, you pay out-of-pocket for most medical bills until the total of your payments reaches the amount of your annual deductible. After that, the catastrophic health plan will cover most medical expenses, although you usually have to pay co-insurance until you reach your total out-of-pocket maximum amount. If your catastrophic health plan is eligible for a Health Savings Account (HSA), you can use the HSA funds to pay the deductible and out-of-pocket expenses. Even if you don't use an HSA, it's smart to set aside some money each month to pay for future medical expenses that you may incur. If you never need the money, it's a bonus.
For 2008, the IRS requires that people with tax-exempt HSAs have catastrophic health insurance plans with deductibles starting at $1,100 for an individual and $2,200 for a family. The total out-of-pocket maximum (which includes the deductible and co-payments) for these HSA-linked catastrophic health plans is $5,600 for singles, and $11,200 for families. The U.S. Department of the Treasury has more information on HSAs and high deductible health plan requirements for 2008 and 2009.
Many HDHPs have high lifetime maximum benefit payment limits (also known as "caps"), usually between $1 million and $5 million. Once you reach the cap, your health insurance company will not pay for any of your medical costs and your policy will be cancelled.
Where to Get Catastrophic Health InsuranceHigh deductible health insurance can usually be purchased either as an individual plan or as a group plan. Certain pre-existing conditions, such as diabetes and mental health disorders, might mean you can't qualify for an individual catastrophic health plan without prior qualifying group coverage, or at least that you can't get coverage for those pre-existing conditions. Group catastrophic health plans are subject to HIPAA regulations, meaning you can't be denied enrollment or coverage, but may have to wait for coverage of pre-existing conditions, depending on your prior health insurance coverage.
What Do High Deductible Health Plans Cover?The type of coverage varies based on which high deductible health insurance plan you choose. Always read and understand the full policy and what it covers when comparing health insurance plans. Ask your agent or company to explain anything that seems unclear, and make sure you will get or can add coverage for medical conditions you might develop. In the past, catastrophic health plans did not cover things like routine care and prescriptions. Today, however, many high deductible health plans offer coverage for routine and non-catastrophic care. However, as a general rule, the more a plan covers, the higher the premium will be. Agreeing to pay more out of your own pocket shifts some of the risk away from the health insurance company on to you, resulting in a lower monthly premium. Be aware that the IRS currently specifies that if your high deductible health plan provides prescription benefits before you meet your annual deductible, your HDHP does not qualify for use with an HSA.
Catastrophic Health Insurance ConsiderationsThe reason you pay generally lower premiums with a high deductible health plan is that the health insurance company knows you'll pay for a larger portion of your costs if you need medical care. You will have to pay out-of-pocket for the majority of medical costs you incur before reaching your annual deductible. If the sole reason you choose a catastrophic health plan is to save money, you'll need to carefully weigh the benefits against the risks. If you're truly worried about money, will you be able to pay medical expenses until you meet your deductible? For example, if your annual deductible is $4,000 and you have emergency surgery that costs $5,000, you are required to pay $4,000 of that out-of-pocket, assuming you have not yet paid any of your deductible. The remaining $1,000 would be paid by your health insurance. Ask yourself if a lower monthly payment is worth the risk of paying your deductible or a large portion of it all at once.
Should You Get a High Deductible Health Plan?If you're sure you can cover the deductible and want to save money on the monthly premiums, a high deductible health plan may make sense. If you qualify for an HSA or other tax-exempt medical savings account and can contribute the deductible amount, you may have an easy way to pay your out-of-pocket medical costs while saving on premiums. Most people who consider catastrophic health insurance either are getting their own health insurance for the first time or are nearing retirement. The younger group tends to be less likely to incur medical expenses because they are young and healthy, while the older group tends to have enough money to pay for most medical care unless they experience a serious illness or emergency. Typically, high deductible health plans provide the most benefit to those who don't require frequent prescriptions or office visits.
If you're looking for health insurance coverage, you can compare multiple rates from top insurance companies
About High Deductible Health PlansUnder a high deductible plan, you pay out-of-pocket for most medical bills until the total of your payments reaches the amount of your annual deductible. After that, the catastrophic health plan will cover most medical expenses, although you usually have to pay co-insurance until you reach your total out-of-pocket maximum amount. If your catastrophic health plan is eligible for a Health Savings Account (HSA), you can use the HSA funds to pay the deductible and out-of-pocket expenses. Even if you don't use an HSA, it's smart to set aside some money each month to pay for future medical expenses that you may incur. If you never need the money, it's a bonus.
For 2008, the IRS requires that people with tax-exempt HSAs have catastrophic health insurance plans with deductibles starting at $1,100 for an individual and $2,200 for a family. The total out-of-pocket maximum (which includes the deductible and co-payments) for these HSA-linked catastrophic health plans is $5,600 for singles, and $11,200 for families. The U.S. Department of the Treasury has more information on HSAs and high deductible health plan requirements for 2008 and 2009.
Many HDHPs have high lifetime maximum benefit payment limits (also known as "caps"), usually between $1 million and $5 million. Once you reach the cap, your health insurance company will not pay for any of your medical costs and your policy will be cancelled.
Where to Get Catastrophic Health InsuranceHigh deductible health insurance can usually be purchased either as an individual plan or as a group plan. Certain pre-existing conditions, such as diabetes and mental health disorders, might mean you can't qualify for an individual catastrophic health plan without prior qualifying group coverage, or at least that you can't get coverage for those pre-existing conditions. Group catastrophic health plans are subject to HIPAA regulations, meaning you can't be denied enrollment or coverage, but may have to wait for coverage of pre-existing conditions, depending on your prior health insurance coverage.
What Do High Deductible Health Plans Cover?The type of coverage varies based on which high deductible health insurance plan you choose. Always read and understand the full policy and what it covers when comparing health insurance plans. Ask your agent or company to explain anything that seems unclear, and make sure you will get or can add coverage for medical conditions you might develop. In the past, catastrophic health plans did not cover things like routine care and prescriptions. Today, however, many high deductible health plans offer coverage for routine and non-catastrophic care. However, as a general rule, the more a plan covers, the higher the premium will be. Agreeing to pay more out of your own pocket shifts some of the risk away from the health insurance company on to you, resulting in a lower monthly premium. Be aware that the IRS currently specifies that if your high deductible health plan provides prescription benefits before you meet your annual deductible, your HDHP does not qualify for use with an HSA.
Catastrophic Health Insurance ConsiderationsThe reason you pay generally lower premiums with a high deductible health plan is that the health insurance company knows you'll pay for a larger portion of your costs if you need medical care. You will have to pay out-of-pocket for the majority of medical costs you incur before reaching your annual deductible. If the sole reason you choose a catastrophic health plan is to save money, you'll need to carefully weigh the benefits against the risks. If you're truly worried about money, will you be able to pay medical expenses until you meet your deductible? For example, if your annual deductible is $4,000 and you have emergency surgery that costs $5,000, you are required to pay $4,000 of that out-of-pocket, assuming you have not yet paid any of your deductible. The remaining $1,000 would be paid by your health insurance. Ask yourself if a lower monthly payment is worth the risk of paying your deductible or a large portion of it all at once.
Should You Get a High Deductible Health Plan?If you're sure you can cover the deductible and want to save money on the monthly premiums, a high deductible health plan may make sense. If you qualify for an HSA or other tax-exempt medical savings account and can contribute the deductible amount, you may have an easy way to pay your out-of-pocket medical costs while saving on premiums. Most people who consider catastrophic health insurance either are getting their own health insurance for the first time or are nearing retirement. The younger group tends to be less likely to incur medical expenses because they are young and healthy, while the older group tends to have enough money to pay for most medical care unless they experience a serious illness or emergency. Typically, high deductible health plans provide the most benefit to those who don't require frequent prescriptions or office visits.
If you're looking for health insurance coverage, you can compare multiple rates from top insurance companies
Make Sure You're Covered When You Retire
If you’re looking to retire soon, it's good to look ahead and try to determine if your medical expenses will be adequately covered in retirement. Many Americans don't discover the gaps in their Medicare coverage until it's too late, and they are forced to pay out of their own pockets for medical expenses they assumed would be covered. Medicare coverage requires that you meet certain deductibles before coverage begins, and you must pay significant co-payments for many types of medical treatment. In addition, traditional Medicare does not offer a prescription drug benefit.
Because of these deficiencies in Medicare coverage, you may wish to consider purchasing a supplemental medical insurance policy called Medigap. Medigap is specifically designed to fill the gaps in your Medicare coverage. Although Medigap policies are sold through private insurance companies, they are standardized and regulated by state and federal law.
Under federal law, there are ten standard Medigap plans, each of which must cover certain specified services. Medigap policies pay most, if not all, of your Medicare coinsurance amounts. Some also provide coverage for deductibles and services that are not covered by Medicare, such as prescription drugs and preventive care.
Because Medigap policies are standardized, there is no need to compare provisions of the policies offered by various insurance companies. However, you should still compare the insurance companies themselves, as an insurance policy is only as good as the company behind it. In addition, Medigap premiums will vary from one insurance company to another, so you may want to do some research to find the best rate.
Because of these deficiencies in Medicare coverage, you may wish to consider purchasing a supplemental medical insurance policy called Medigap. Medigap is specifically designed to fill the gaps in your Medicare coverage. Although Medigap policies are sold through private insurance companies, they are standardized and regulated by state and federal law.
Under federal law, there are ten standard Medigap plans, each of which must cover certain specified services. Medigap policies pay most, if not all, of your Medicare coinsurance amounts. Some also provide coverage for deductibles and services that are not covered by Medicare, such as prescription drugs and preventive care.
Because Medigap policies are standardized, there is no need to compare provisions of the policies offered by various insurance companies. However, you should still compare the insurance companies themselves, as an insurance policy is only as good as the company behind it. In addition, Medigap premiums will vary from one insurance company to another, so you may want to do some research to find the best rate.
How Healthy is Your Health Club?
With more and more insurance companies offering discounts on health and fitness club memberships, now may be a good time to join a health club, get into shape, and improve your overall health. But if your health club cuts corners when it comes to safety, sanitation, and staff training, you may actually be jeopardizing your health by working out there. Here are some signs that your club puts the health and safety of its members first.
Club members are instructed on the proper use of equipment and facilities
When you join a health club, a member of the club's staff should ask you to fill out a health history questionnaire. If you have a serious health problem (e.g. a heart condition or a bad back), the club should require that you obtain medical clearance before beginning an exercise program. Then, you should be invited to a new member orientation session (usually a one-on-one session) in which you learn club rules and find out how to properly use the exercise equipment. Staff members should work with you to design an exercise program that meets your needs, taking into consideration any health problems or physical limitations you might have.
Staff members should test your fitness when you start an exercise program, then check on you periodically thereafter. Even long after you've joined, they should be readily available to answer questions and teach you proper exercise techniques. This may be possible only if there is an adequate instructor/member ratio. If only a few staff members are on duty, they may not be able to give you the personal attention you need to exercise safely.
Staff members are qualified and well trained
All staff members should be knowledgeable about health and fitness issues, and most should be trained in CPR and first aid. In addition, exercise instructors should be certified by a nationally or internationally recognized organization such as the Aerobics and Fitness Association of America or the American College of Sports Medicine.
Equipment and facilities are clean and safe to use Check out the condition of the equipment and the cleanliness of the facility. Although health clubs must be licensed by state and/or local governments to do business, they may not be closely regulated. However, they may be certified by a national organization (such as the International Health, Racquet and Sports Club Association) that requires members to maintain clean, safe facilities and adhere to a code of ethics.
Regulated or not, your health club should be well maintained. Dirty locker rooms and broken equipment can sometimes signal that the club is in financial trouble, especially if the condition of the club has recently taken a turn for the worse. Look for the following signs that your health club is adequately maintained:
The club should have routine sanitation procedures--find out what they are Members should be instructed to clean off machines after use (look for adequate paper towels and spray bottles of disinfectant) The facility should be spacious enough to accommodate members even during peak periods--find out if the club limits membership to prevent crowding Exercise equipment should be relatively new, not outdated All equipment should be clean and in good repair--worn or torn equipment may be a safety hazard Instructions for use should be attached to each machine Mats and flooring should be clean and resilient enough to protect against injury Showers and locker rooms should look and smell clean (no mold or mildew) The pool and hot tub should be adequately sanitized--signs of inadequate sanitation include pool water that burns your eyes or foam in the hot tub Rules of use should be posted in the pool/hot tub area (e.g. shower before entering the pool, limit use of the hot tub to 15 minutes) First aid kits should be well stocked and readily accessible
Security in and around the club is adequate Health clubs often post signs warning members not to leave valuables in their lockers. Because lockers are notoriously easy to jimmy open, petty thieves often target them. This doesn't necessarily mean that the health club has lax security, but it does mean that you should find out if the health club is going the extra mile to protect you and your possessions.
Determine whether the club you belong to has:
Security measures in place to ensure that only members or their guests can enter or leave the building (e.g. membership cards, surveillance cameras, gates) Well-lit parking areas Security guards if the area is especially dangerous A well-attended child-care facility if the health club offers it
What if you find problems? If you feel that your health club is not as clean or safe as it should be, talk to the club's director. If your concerns aren't resolved or if serious health violations exist, contact the local or state authority responsible for monitoring business and/or sanitary practices in your area (e.g. the Attorney General's office, Health Department).
Club members are instructed on the proper use of equipment and facilities
When you join a health club, a member of the club's staff should ask you to fill out a health history questionnaire. If you have a serious health problem (e.g. a heart condition or a bad back), the club should require that you obtain medical clearance before beginning an exercise program. Then, you should be invited to a new member orientation session (usually a one-on-one session) in which you learn club rules and find out how to properly use the exercise equipment. Staff members should work with you to design an exercise program that meets your needs, taking into consideration any health problems or physical limitations you might have.
Staff members should test your fitness when you start an exercise program, then check on you periodically thereafter. Even long after you've joined, they should be readily available to answer questions and teach you proper exercise techniques. This may be possible only if there is an adequate instructor/member ratio. If only a few staff members are on duty, they may not be able to give you the personal attention you need to exercise safely.
Staff members are qualified and well trained
All staff members should be knowledgeable about health and fitness issues, and most should be trained in CPR and first aid. In addition, exercise instructors should be certified by a nationally or internationally recognized organization such as the Aerobics and Fitness Association of America or the American College of Sports Medicine.
Equipment and facilities are clean and safe to use Check out the condition of the equipment and the cleanliness of the facility. Although health clubs must be licensed by state and/or local governments to do business, they may not be closely regulated. However, they may be certified by a national organization (such as the International Health, Racquet and Sports Club Association) that requires members to maintain clean, safe facilities and adhere to a code of ethics.
Regulated or not, your health club should be well maintained. Dirty locker rooms and broken equipment can sometimes signal that the club is in financial trouble, especially if the condition of the club has recently taken a turn for the worse. Look for the following signs that your health club is adequately maintained:
The club should have routine sanitation procedures--find out what they are Members should be instructed to clean off machines after use (look for adequate paper towels and spray bottles of disinfectant) The facility should be spacious enough to accommodate members even during peak periods--find out if the club limits membership to prevent crowding Exercise equipment should be relatively new, not outdated All equipment should be clean and in good repair--worn or torn equipment may be a safety hazard Instructions for use should be attached to each machine Mats and flooring should be clean and resilient enough to protect against injury Showers and locker rooms should look and smell clean (no mold or mildew) The pool and hot tub should be adequately sanitized--signs of inadequate sanitation include pool water that burns your eyes or foam in the hot tub Rules of use should be posted in the pool/hot tub area (e.g. shower before entering the pool, limit use of the hot tub to 15 minutes) First aid kits should be well stocked and readily accessible
Security in and around the club is adequate Health clubs often post signs warning members not to leave valuables in their lockers. Because lockers are notoriously easy to jimmy open, petty thieves often target them. This doesn't necessarily mean that the health club has lax security, but it does mean that you should find out if the health club is going the extra mile to protect you and your possessions.
Determine whether the club you belong to has:
Security measures in place to ensure that only members or their guests can enter or leave the building (e.g. membership cards, surveillance cameras, gates) Well-lit parking areas Security guards if the area is especially dangerous A well-attended child-care facility if the health club offers it
What if you find problems? If you feel that your health club is not as clean or safe as it should be, talk to the club's director. If your concerns aren't resolved or if serious health violations exist, contact the local or state authority responsible for monitoring business and/or sanitary practices in your area (e.g. the Attorney General's office, Health Department).
Top 10 Ways to Cut Your Medical Bills
With health-care costs on the rise, you may be looking for ways to lower your medical expenses. Here are 10 ideas:
1. Practice prevention
2. Shop around for health insurance
3. Cut the cost of prescription drugs
4. Check your medical bills
5. Join your spouse's health plan
6. Keep track of your medical expenses
7. Negotiate a discount with your health-care provider
8. Contribute to a flexible spending account
9. Take advantage of free health screenings
10. Get to know your health insurance
Practice prevention As basic as it sounds, one of the most effective ways to lower your medical expenses over time is to maintain a healthy lifestyle. For example, you can:
Take advantage of wellness programs Maintain a healthy weight Exercise regularly Kick unhealthy habits (e.g. smoking) Have regular checkups Shop around for health insurance If you don't have employer-sponsored health insurance, you may be looking to obtain coverage on your own. To get good coverage at an affordable price, shop around. Because premiums vary widely, you'll probably save money if you get quotes from several companies. Evaluate each plan's coverage and features, taking into account exclusions, limitations, and the freedom to choose health-care providers, among other things. Also find out how much you'll end up paying out of pocket in the form of co-payments, coinsurance, and deductibles, because even relatively small amounts of money can really add up if you make frequent visits to your doctor.
Cut the cost of prescription drugs Prescription costs can eat up a large portion of your budget if you take prescription drugs regularly. Fortunately, it's not hard to find ways to save money. For example, try ordering your prescriptions through the mail, using a traditional or online pharmacy. If you belong to a prescription drug plan (e.g. through your health insurance), you may be able to get a three-month supply of your prescription drug through the mail for the same price you would pay for a one-month supply at your neighborhood pharmacy. You can also ask your pharmacist or doctor to recommend a less-expensive generic drug whenever possible.
Check your medical bills Medical bills are often confusing to read. However, taking a few minutes to go over the charges may save you money in the long run. Check to make sure that the bill accurately reflects the procedures you have undergone and takes into account any applicable insurance coverage you may have. Some errors, such as wrong computer codes, are common, and you may be billed for health care you never received. Contact the appropriate billing office if you think you've found a mistake. If you've received an explanation of benefits from your insurance company that you believe is wrong, ask the company to review your claim.
Join your spouse's health plan Many married couples maintain separate health insurance coverage even though it may not be cost effective to do so. Examine both your coverage and your spouse's coverage to see if it makes sense for either of you to join the other's plan. Keep in mind that most plans allow you to add a spouse to your plan within a certain time period after you get married (e.g. 30 days). Otherwise, you may have to wait for the plans' annual open enrollment period.
Keep track of your medical expenses Come tax time, you may be able to deduct certain medical expenses if you itemize, and your total medical expenses exceed 7.5 percent of your adjusted gross income. Allowable medical expenses include everything from health-care services to medical aids (e.g. eyeglasses, hearing aids). Keep track of these expenses if there's a chance you'll be able to deduct them on your income tax return.
Negotiate a discount with your health-care provider Many people don't realize that you can sometimes negotiate to lower your medical bills. While it may not always work, it doesn't hurt to ask your doctor, hospital, or pharmacy if they're willing to come down in price. Before you begin to negotiate, do a little research to find out what other health-care providers in your area are charging. You can also ask your health-care provider if they'll lower their price if you pay in cash up front.
Contribute to a flexible spending account Your employer may offer a flexible spending plan that allows you to put pretax dollars in an account. You are then reimbursed for your out-of-pocket medical expenses, such as prescription drugs, dental care, and co-payments. Because flexible spending contributions are taken out of your pay before federal and state taxes are calculated, you get to use pretax dollars to pay your medical bills.
Take advantage of free health screenings If your health insurance doesn't provide adequate coverage in some areas, or if you don't have any health insurance coverage at all, you may want to look into free health screenings. Local clinics and hospitals often provide a variety of screenings, such as blood pressure, cholesterol, and mammograms.
Get to know your health insurance Your health insurance may cover more than you think. Nowadays, insurance companies often provide benefits designed to help you stay safe and healthy. For example, you may receive discounts on vitamins, alternative medicines, health club memberships, or bike helmets. You may also be surprised at the range of coverage your health plan offers. For instance, it may cover dental care for young children, chiropractic care, and acupuncture. Read your plan membership materials to find out what products and services are available through your health plan before you pay for them on your own.
1. Practice prevention
2. Shop around for health insurance
3. Cut the cost of prescription drugs
4. Check your medical bills
5. Join your spouse's health plan
6. Keep track of your medical expenses
7. Negotiate a discount with your health-care provider
8. Contribute to a flexible spending account
9. Take advantage of free health screenings
10. Get to know your health insurance
Practice prevention As basic as it sounds, one of the most effective ways to lower your medical expenses over time is to maintain a healthy lifestyle. For example, you can:
Take advantage of wellness programs Maintain a healthy weight Exercise regularly Kick unhealthy habits (e.g. smoking) Have regular checkups Shop around for health insurance If you don't have employer-sponsored health insurance, you may be looking to obtain coverage on your own. To get good coverage at an affordable price, shop around. Because premiums vary widely, you'll probably save money if you get quotes from several companies. Evaluate each plan's coverage and features, taking into account exclusions, limitations, and the freedom to choose health-care providers, among other things. Also find out how much you'll end up paying out of pocket in the form of co-payments, coinsurance, and deductibles, because even relatively small amounts of money can really add up if you make frequent visits to your doctor.
Cut the cost of prescription drugs Prescription costs can eat up a large portion of your budget if you take prescription drugs regularly. Fortunately, it's not hard to find ways to save money. For example, try ordering your prescriptions through the mail, using a traditional or online pharmacy. If you belong to a prescription drug plan (e.g. through your health insurance), you may be able to get a three-month supply of your prescription drug through the mail for the same price you would pay for a one-month supply at your neighborhood pharmacy. You can also ask your pharmacist or doctor to recommend a less-expensive generic drug whenever possible.
Check your medical bills Medical bills are often confusing to read. However, taking a few minutes to go over the charges may save you money in the long run. Check to make sure that the bill accurately reflects the procedures you have undergone and takes into account any applicable insurance coverage you may have. Some errors, such as wrong computer codes, are common, and you may be billed for health care you never received. Contact the appropriate billing office if you think you've found a mistake. If you've received an explanation of benefits from your insurance company that you believe is wrong, ask the company to review your claim.
Join your spouse's health plan Many married couples maintain separate health insurance coverage even though it may not be cost effective to do so. Examine both your coverage and your spouse's coverage to see if it makes sense for either of you to join the other's plan. Keep in mind that most plans allow you to add a spouse to your plan within a certain time period after you get married (e.g. 30 days). Otherwise, you may have to wait for the plans' annual open enrollment period.
Keep track of your medical expenses Come tax time, you may be able to deduct certain medical expenses if you itemize, and your total medical expenses exceed 7.5 percent of your adjusted gross income. Allowable medical expenses include everything from health-care services to medical aids (e.g. eyeglasses, hearing aids). Keep track of these expenses if there's a chance you'll be able to deduct them on your income tax return.
Negotiate a discount with your health-care provider Many people don't realize that you can sometimes negotiate to lower your medical bills. While it may not always work, it doesn't hurt to ask your doctor, hospital, or pharmacy if they're willing to come down in price. Before you begin to negotiate, do a little research to find out what other health-care providers in your area are charging. You can also ask your health-care provider if they'll lower their price if you pay in cash up front.
Contribute to a flexible spending account Your employer may offer a flexible spending plan that allows you to put pretax dollars in an account. You are then reimbursed for your out-of-pocket medical expenses, such as prescription drugs, dental care, and co-payments. Because flexible spending contributions are taken out of your pay before federal and state taxes are calculated, you get to use pretax dollars to pay your medical bills.
Take advantage of free health screenings If your health insurance doesn't provide adequate coverage in some areas, or if you don't have any health insurance coverage at all, you may want to look into free health screenings. Local clinics and hospitals often provide a variety of screenings, such as blood pressure, cholesterol, and mammograms.
Get to know your health insurance Your health insurance may cover more than you think. Nowadays, insurance companies often provide benefits designed to help you stay safe and healthy. For example, you may receive discounts on vitamins, alternative medicines, health club memberships, or bike helmets. You may also be surprised at the range of coverage your health plan offers. For instance, it may cover dental care for young children, chiropractic care, and acupuncture. Read your plan membership materials to find out what products and services are available through your health plan before you pay for them on your own.
Term vs. Permanent Life Insurance: Does the Battle Really Continue?
There seems to be two fundamental, opposing viewpoints in the financial community over which type of life insurance, individuals in this society should purchase. Many financial advisors believe both permanent and term insurance, should be considered and play an important role in the financial planning process. However for the sake of argument, we will discuss the different schools of thought, financial advisors who swear by term insurance only, and their opposition, the permanent insurance folks. Okay you are probably bored with this topic by now but one more article cannot hurt.
Term Insurance is the heralded vehicle seen on commercials in the United States. We have all been exposed to ads like "you can buy a $100,000 Life Insurance for $8 a month at age 27." Sounds great, where do I sign up for this policy? Before anyone wants to throw a lawsuit at me, most of these commercials are in compliance. The problem is not the ads but how we have been conditioned about life insurance, especially term." Term insurance" has become a" best quote party" instead of a discussion of what the policy can do for me. I have talked to individuals about their term policies and they have no clue about their insurance, other than the face amount and the length of the policy.
Permanent insurance has many forms, however we will use whole life insurance to illustrate the point. (Disclaimer: Universal and Variable Universal Life Insurance both have elements of a term and permanent policy.) The idea behind permanent insurance is to have coverage your entire life. When you die, the policy will be paid to your beneficiary, unless the policy is challenged by the insurance company over possible fraud or something. Many in the public argue over the necessary need for a permanent life coverage.
Term insurance lasts only a specific amount of time unless it is a one year adjustable policy (some of these end at age 65). A one year adjustable term policy's premium is fixed for 12 months, and the company reserves the right to raise your premium every year on the anniversary and usually will. Otherwise you will have an option of possibly 5, 10, 15, 20, 25, or 30 year term. Some polices are able to be converted to a permanent insurance plan, often without evidence of insurability (maybe no physical) within a certain amount of years after the policy has been issued. Why is this important to know you ask? Term is good for covering large debts when limited dollars are available. For instance you buy a $150,000 home and have $100,000 worth of student loans debt and you make $40,000 a year income, and have a non-working spouse and child, you may need $1,000,000 worth of coverage and term is all you can afford.
Let us say you purchase a $500,000, 10 year, level term insurance policy with no ability to convert the policy after five years, and you have an heart attack in the 9th year of the policy. You still need the $500,000 policy after the 10th year, but you know that probably be declined or heavily rated for a new policy . What can you do in this situation? You could keep your current policy, maybe the policy goes from $100 a month to $1900 (or maybe they will let you drop the face amount to 100,000 and you pay $1000 a month). Also if that price is to steep, you could possibly buy a guaranteed policy for an amount of $50,000 or less, but you have to live a certain amount of years to receive the full death benefit and often pay a hefty premium. Ladies and gentleman this can be a reality or have foresight to purchase a policy with the ability to be converted. If you purchase term insurance, please find out if it can be converted and how many years you have this privilege.
Permanent or whole life insurance can be cost prohibitive to many individuals. People do not want to pay $250 a month for a $250,000 policy. This is not the family car they are talking about, but life insurance. Life insurance only pays off one time, so why spend so much on it if I can get double the coverage with term and pay $50 a month; why even have this discussion? With many universal life and all whole life insurance policies, you can lock your rates, and once the policy is approved, who cares if you are diagnosed with inoperable cancer in 27 years. Also if you need a loan or something, there may be cash value in the policy for an emergency. This does not exist in the usual term insurance policy. When you get to the end of a term life insurance policy, it is usually a good reason to buy a new policy or a reason to yell at your financial advisor. Key point, whole life insurance should not be a replacement for saving for retirement.
Now, now, term insurance definitely has its advantages. You can usually cover a large amount of financial responsibilities with less money. Term insurance is often an excellent vehicle for short- term obligations such as when the kids go away to college, and you do not have the money to otherwise send them if you die. Also if cannot afford permanent coverage, term should be considered.
My gripe is how term insurance is being sold as the only policy needed by mankind. Remember if you believe in the "buy term and invest the difference theory" you need to save money and have a return on your investments equal to or greater than the current death benefit of a permanent plan to make up the difference when your 30 year term policy expires.
Permanent and term insurance both have their positive and negative attributes. Do not rule either one out until you carefully evaluate your own financial situation. Term insurance is usually a cheaper plan in youth but becomes more expensive as you get older. Many individuals are turned off by the cost of a permanent or whole life insurance plan in their 30's as well as their late 60's. See your financial advisor for more information or request a quote for life insurance.
Term Insurance is the heralded vehicle seen on commercials in the United States. We have all been exposed to ads like "you can buy a $100,000 Life Insurance for $8 a month at age 27." Sounds great, where do I sign up for this policy? Before anyone wants to throw a lawsuit at me, most of these commercials are in compliance. The problem is not the ads but how we have been conditioned about life insurance, especially term." Term insurance" has become a" best quote party" instead of a discussion of what the policy can do for me. I have talked to individuals about their term policies and they have no clue about their insurance, other than the face amount and the length of the policy.
Permanent insurance has many forms, however we will use whole life insurance to illustrate the point. (Disclaimer: Universal and Variable Universal Life Insurance both have elements of a term and permanent policy.) The idea behind permanent insurance is to have coverage your entire life. When you die, the policy will be paid to your beneficiary, unless the policy is challenged by the insurance company over possible fraud or something. Many in the public argue over the necessary need for a permanent life coverage.
Term insurance lasts only a specific amount of time unless it is a one year adjustable policy (some of these end at age 65). A one year adjustable term policy's premium is fixed for 12 months, and the company reserves the right to raise your premium every year on the anniversary and usually will. Otherwise you will have an option of possibly 5, 10, 15, 20, 25, or 30 year term. Some polices are able to be converted to a permanent insurance plan, often without evidence of insurability (maybe no physical) within a certain amount of years after the policy has been issued. Why is this important to know you ask? Term is good for covering large debts when limited dollars are available. For instance you buy a $150,000 home and have $100,000 worth of student loans debt and you make $40,000 a year income, and have a non-working spouse and child, you may need $1,000,000 worth of coverage and term is all you can afford.
Let us say you purchase a $500,000, 10 year, level term insurance policy with no ability to convert the policy after five years, and you have an heart attack in the 9th year of the policy. You still need the $500,000 policy after the 10th year, but you know that probably be declined or heavily rated for a new policy . What can you do in this situation? You could keep your current policy, maybe the policy goes from $100 a month to $1900 (or maybe they will let you drop the face amount to 100,000 and you pay $1000 a month). Also if that price is to steep, you could possibly buy a guaranteed policy for an amount of $50,000 or less, but you have to live a certain amount of years to receive the full death benefit and often pay a hefty premium. Ladies and gentleman this can be a reality or have foresight to purchase a policy with the ability to be converted. If you purchase term insurance, please find out if it can be converted and how many years you have this privilege.
Permanent or whole life insurance can be cost prohibitive to many individuals. People do not want to pay $250 a month for a $250,000 policy. This is not the family car they are talking about, but life insurance. Life insurance only pays off one time, so why spend so much on it if I can get double the coverage with term and pay $50 a month; why even have this discussion? With many universal life and all whole life insurance policies, you can lock your rates, and once the policy is approved, who cares if you are diagnosed with inoperable cancer in 27 years. Also if you need a loan or something, there may be cash value in the policy for an emergency. This does not exist in the usual term insurance policy. When you get to the end of a term life insurance policy, it is usually a good reason to buy a new policy or a reason to yell at your financial advisor. Key point, whole life insurance should not be a replacement for saving for retirement.
Now, now, term insurance definitely has its advantages. You can usually cover a large amount of financial responsibilities with less money. Term insurance is often an excellent vehicle for short- term obligations such as when the kids go away to college, and you do not have the money to otherwise send them if you die. Also if cannot afford permanent coverage, term should be considered.
My gripe is how term insurance is being sold as the only policy needed by mankind. Remember if you believe in the "buy term and invest the difference theory" you need to save money and have a return on your investments equal to or greater than the current death benefit of a permanent plan to make up the difference when your 30 year term policy expires.
Permanent and term insurance both have their positive and negative attributes. Do not rule either one out until you carefully evaluate your own financial situation. Term insurance is usually a cheaper plan in youth but becomes more expensive as you get older. Many individuals are turned off by the cost of a permanent or whole life insurance plan in their 30's as well as their late 60's. See your financial advisor for more information or request a quote for life insurance.
Buying Life Insurance on the Children
Every parent has to decide whether to buy life insurance on their children. While buying life insurance may not be an easy decision, the fear of not having it on your children may trouble you a bit.
Congratulations you have just become the parent of a baby boy or girl, or even twins or quadruplets. You have many new worries including the health, welfare, and eating habits of your child. What about life insurance on your child? While it may sound silly to a select few, those parents who were unfortunate to have a child die of SIDS, a car accident, etc., may have a different prospective. No one expects their children to die before them but it can happen. It may be sudden or unexpected, but all of us must realize that one day we will all come face with death.
There are those who have perceptions that life insurance should not be bought on children, because "the parents are wanting to get rich of the death of their child's death." Not having life insurance may cause a financial hardship in the case of a child's death. Also who really wants a check in a situation like this. The premium may be small enough that it is worth having that protection in place. There is a simple solution to solve this problem, just have enough life insurance on your child to insure burial expenses up to age 25 or so. Or if you have enough money in your personal account to bury any of your children then that would be another viable solution.
As children go off to college is important to reevaluate their life insurance needs. If they are going to have student loans or plan to buy a home after college it is important to plan ahead. Many times in college, children can find themselves uninsurable for any number of reasons. It is necessary to be conscious of this fact, in order to make sure they get on the right track to adequately have life insurance when they have a family.
Remember life protection has its benefits, but it costs money. It is necessary to evaluate your own particular situation. If it makes sense that proceed in getting in touch with an insurance agent you can trust and rely on. As parents you should also evaluate your life insurance program!
Congratulations you have just become the parent of a baby boy or girl, or even twins or quadruplets. You have many new worries including the health, welfare, and eating habits of your child. What about life insurance on your child? While it may sound silly to a select few, those parents who were unfortunate to have a child die of SIDS, a car accident, etc., may have a different prospective. No one expects their children to die before them but it can happen. It may be sudden or unexpected, but all of us must realize that one day we will all come face with death.
There are those who have perceptions that life insurance should not be bought on children, because "the parents are wanting to get rich of the death of their child's death." Not having life insurance may cause a financial hardship in the case of a child's death. Also who really wants a check in a situation like this. The premium may be small enough that it is worth having that protection in place. There is a simple solution to solve this problem, just have enough life insurance on your child to insure burial expenses up to age 25 or so. Or if you have enough money in your personal account to bury any of your children then that would be another viable solution.
As children go off to college is important to reevaluate their life insurance needs. If they are going to have student loans or plan to buy a home after college it is important to plan ahead. Many times in college, children can find themselves uninsurable for any number of reasons. It is necessary to be conscious of this fact, in order to make sure they get on the right track to adequately have life insurance when they have a family.
Remember life protection has its benefits, but it costs money. It is necessary to evaluate your own particular situation. If it makes sense that proceed in getting in touch with an insurance agent you can trust and rely on. As parents you should also evaluate your life insurance program!
Life Insurance Uses
Death Benefit Provide income to pay off the mortgage in the event of death Replace lost income that your spouse and children would otherwise miss Make sure that future college tuition can be paid An effect way to pay off children and spouse who do not participate in family business To pay possible Estate Taxes To provide liquidity when many assets are tied into Real Estate
A Life without Life Insurance
For whatever reason, buying life insurance has been reduced to an afterthought. Many of us are uncomfortable with facing our own mortality. Yet others do not see the value of life insurance because they are single, or will not live to receive the tangible benefit of having this coverage, unlike health insurance. Maybe you have been turned down for coverage because of a health condition, but most still can qualify for a graded death benefit policy.
Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.
Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.
Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.
Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.
What Is Term Life Insurance and What Are its Benefits?
Term life insurance coverage is meant for protection. It is designed to cover a pre-specified period of need. Just as you would do for your car insurance, you would be selecting a cover period as well as a benefit amount. Your beneficiaries would be entitled to receive the full benefit amount that you have selected in the death of your death on some unforeseen circumstances provided the policy is still in effect. Simply and practically, you have got exactly what you have paid for. And since there are so many competitive rates for term life insurance cover, you could choose the best coverage that is designed to help achieve all your specific goals.
Extra Life Coverage for No Medical Exam Life Insurance Offers
Firstly it provides for lifetime coverage, which would not be reduced or even cancelled on account of age, ill health, or occupation. The initial premium of 1$ per month gets revised later on the basis of age.Secondly, it allows for Non Medical Exam Term Life Insurance. The coverage here is so easy. Not only are the application forms easy to understand and complete, but there is also no necessity for a medical exam as a pre-qualifier. Only a few short health queries would have to be answered.It does not matter how long you live, your no medical life insurance cover would always be the same. The full $5,000, $10, 000, or $20,000 would not be reduced for any reason whatsoever, and the $20,000 benefit is always the same. There is a one month or 30 day Money - Back Guarantee. If you happen to be dissatisfied with this no medical exam life insurance policy for some reason, you would just have to return it and Globe would refund your money fully, without asking any questions.There is no waiting periods with Extra life. You get insurance cover right from the first day you are approved.You can choose the beneficiary of your insurance policy-it could be anyone, your spouse, your friend, your relative- and the full amount would be paid to that person.You do not have to meet an agent or sit through the tedium of a sales call. Extra life no medical exam insurance cover can be purchased through the mail, after reviewing the contents and features of the policy in the comfort of your home. There would be no outside pressure of any sort. In the event of your health failing the no medical insurance policy would not be cancelled. The only reason for its cancellation would be on account of failure to pay the premiums.
Avail Insurance even without a medical examination
No medical life insurance allows for the same sort of benefits that require a medical examination, and without facing any accompanying hassles. Each insurance firm has its own terms and requirements that must first be met, so that you may become eligible for a non medical life insurance cover. This article covers: Is there any waiting periods involved in no medical life insurance?Is it possible to get exactly what you have paid for in case of term life insurance?Learn more on term life insurance No medical life insurance cover is available with quite a few insurance firms. No medical life insurance allows for the same sort of benefits that require a medical examination, and without facing any accompanying hassles. Non medical life insurance cover is not available for those people with serious health problems like AIDS, HIV, heart and lung disorders, cancer, liver disease and stroke, and mental or nervous disorders. Each insurance firm has its own terms and requirements that must first be met, so that you may become eligible for a non medical life insurance cover. Under the circumstance, the best thing to do would be to seek and compare no medical life insurance /term life insurance quotes and decide as to which policy suits you the best.
Understanding Life Insurance
Term Insurance - Form of Insurance that usually last for a certain period of time. (i.e. 30 year term) After term is over you have to replace ice. No cash value usually in the policy. Main types: Level Face-where the face or insurance amount is the same throughout the period. Reducing Term-Usually coincides with mortgage or other personal debt. The policy face or insurance amount decreases over time, often based on debt obligations.
Whole Life -Type of insurance that you pay for your entire life. Level premiums and usually can borrow from cash value. An insurance that gives you the ability to have more insurance through the build-up of paid-up additions.
Universal Life - It is life insurance that is a Combination of Whole Life and Term. Can build cash value, but is usually not good for anything if it is allowed to lapse. Usually cheaper than whole life but can last a lifetime if funded properly and sold correctly.
Variable Universal Life - A policy that is made of term and separate accounts (not mutual funds) and has a designated face amount. Policies have either a level face or an increasing face. The premise of the policy is to hope that the separate accounts in the policy outperform the returns in the other types of policies mentioned above. The cash value is based on the market-based returns of the separate accounts in the policy minus any expenses of the policy. The prospectus as well as a quarterly statement will reveal the returns of the separate account.
Disclaimer: Always consult a financial profession to determine what coverage is right for you.
Whole Life -Type of insurance that you pay for your entire life. Level premiums and usually can borrow from cash value. An insurance that gives you the ability to have more insurance through the build-up of paid-up additions.
Universal Life - It is life insurance that is a Combination of Whole Life and Term. Can build cash value, but is usually not good for anything if it is allowed to lapse. Usually cheaper than whole life but can last a lifetime if funded properly and sold correctly.
Variable Universal Life - A policy that is made of term and separate accounts (not mutual funds) and has a designated face amount. Policies have either a level face or an increasing face. The premise of the policy is to hope that the separate accounts in the policy outperform the returns in the other types of policies mentioned above. The cash value is based on the market-based returns of the separate accounts in the policy minus any expenses of the policy. The prospectus as well as a quarterly statement will reveal the returns of the separate account.
Disclaimer: Always consult a financial profession to determine what coverage is right for you.
Types of Homeowners Insurance
As described in Wiening et al.[1], prior to the 1950s, there were separate policies for the various perils that could affect a home. A homeowner would have had to purchase separate policies covering fire losses, theft, personal property, and the like. During the 1950s, policy forms were developed, allowing the homeowner to purchase all the insurance they needed on one complete policy. However, these policies varied by insurance company, and were difficult to comprehend. The need for standardization grew so great that a private company based in Jersey City, New Jersey, Insurance Services Office, also known as the ISO, was formed in 1971 to provide risk information and issued a simplified homeowners policy for resell to insurance companies. These policies have been amended over the years until currently, the ISO has seven standardized homeowners insurance forms in general and consistent use . Of these HO-3 is the most common policy followed by HO-4 and HO-6. Others that are less used, though still significant, are HO-1, HO-2, HO-5, and HO-8. Each is summarized below:
HO-1 A limited policy that offers varying degrees of coverage but only for items specifically outlined in the policy. These might be used to cover a valuable object found in the home, such as a painting.
HO-2 Similar to HO-1;
HO-2 is a limited policy in that it covers specific portions of a house against damage. The coverage is usually a "named perils" policy, which lists the events that would be covered. As above, these factors must be spelled out in the policy.
HO-3 This policy is the most commonly written policy for a homeowner and is designed to cover all aspects of the home, structure and its contents as well as any liability that may arise from daily use, as well as any visitors who may encounter accident or injury on the premises. Covered aspects as well as limits of liability must be clearly spelled out in the policy to insure proper coverage. The coverage is usually called "all risk". Also called an "open perils" policy.
HO-4 This is commonly referred to as renters insurance or renter's coverage. Similar to HO-6, this policy covers those aspects of the apartment and its contents not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150' of the domicile. Common coverage areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft, windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of ice.
HO-5 This policy, similar to HO-3, covers a home (not a condo or apartment), the homeowner and its possessions as well as any liability that might arise from visitors or passers-by. This coverage is differentiated in that it covers a wider breadth and depth of incidents and losses than an HO-3.
HO-6 As a form of supplemental homeowner's insurance, HO-6, also known as a Condominium Coverage, is designed especially for the owners of condos. It includes coverage for the part of the building owned by the insured and for the property housed therein of the insured. Designed to span the gap between what the homeowner's association might cover in a blanket policy written for an entire neighborhood and those items of importance to the insured, typically the HO-6 covers liability for residents and guests of the insured in addition to personal property. The liability coverage, depending on the underwriter, premium paid, and other factors of the policy, can cover incidents up to 150' from the insured property, all valuables within the home from theft, fire or water damage or other forms of loss. It is important to read the Associations By-laws to determine the total amount of insurance needed on your dwelling. HO-8 It is usually called "older home" insurance. It lets house owners with higher replacement cost than the market value insure them at the lower market value rate. In addition, a Dwelling Fire policy is generally available for non-commercial owners of rented houses, which covers property damage to the structure, and sometimes to the owner's personal property (such as appliances and furnishings). The owner's liability is generally extended from their own primary home insurance, and does not comprise part of the Dwelling Fire policy. It is a counterpart to the HO-4 renter's policy.
HO-1 A limited policy that offers varying degrees of coverage but only for items specifically outlined in the policy. These might be used to cover a valuable object found in the home, such as a painting.
HO-2 Similar to HO-1;
HO-2 is a limited policy in that it covers specific portions of a house against damage. The coverage is usually a "named perils" policy, which lists the events that would be covered. As above, these factors must be spelled out in the policy.
HO-3 This policy is the most commonly written policy for a homeowner and is designed to cover all aspects of the home, structure and its contents as well as any liability that may arise from daily use, as well as any visitors who may encounter accident or injury on the premises. Covered aspects as well as limits of liability must be clearly spelled out in the policy to insure proper coverage. The coverage is usually called "all risk". Also called an "open perils" policy.
HO-4 This is commonly referred to as renters insurance or renter's coverage. Similar to HO-6, this policy covers those aspects of the apartment and its contents not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150' of the domicile. Common coverage areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft, windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of ice.
HO-5 This policy, similar to HO-3, covers a home (not a condo or apartment), the homeowner and its possessions as well as any liability that might arise from visitors or passers-by. This coverage is differentiated in that it covers a wider breadth and depth of incidents and losses than an HO-3.
HO-6 As a form of supplemental homeowner's insurance, HO-6, also known as a Condominium Coverage, is designed especially for the owners of condos. It includes coverage for the part of the building owned by the insured and for the property housed therein of the insured. Designed to span the gap between what the homeowner's association might cover in a blanket policy written for an entire neighborhood and those items of importance to the insured, typically the HO-6 covers liability for residents and guests of the insured in addition to personal property. The liability coverage, depending on the underwriter, premium paid, and other factors of the policy, can cover incidents up to 150' from the insured property, all valuables within the home from theft, fire or water damage or other forms of loss. It is important to read the Associations By-laws to determine the total amount of insurance needed on your dwelling. HO-8 It is usually called "older home" insurance. It lets house owners with higher replacement cost than the market value insure them at the lower market value rate. In addition, a Dwelling Fire policy is generally available for non-commercial owners of rented houses, which covers property damage to the structure, and sometimes to the owner's personal property (such as appliances and furnishings). The owner's liability is generally extended from their own primary home insurance, and does not comprise part of the Dwelling Fire policy. It is a counterpart to the HO-4 renter's policy.
Five Steps to Cheap Home Insurance Premiums
Home insurance is a generic term for two different products. Buildings insurance to protect the property's construction and contents insurance to protect your moveable household objects and valuables.
Unfortunately, not all home insurance policies are created equal making it difficult to compare like with like. The areas and level of protection offered vary from policy to policy along with the price. So having a definite idea of what you need to insure and for how much will help minimise the overall time and money spent buying it.
STEP 1: Reduce the risk and reduce the costAll insurance policies protect against the risk of financial loss. So if you take steps to reduce the risk of damage or loss to your property and possessions, you'll be rewarded with a lower premium. Here’s a quick summary of a few of the most effective measures.
Call your home insurance company or local neighbourhood watch scheme and they will send you a list of steps to take to make your house more secure. Fit locks to all windows and level 5 (BS3621) mortise deadlocks locks to the doors. Most insurance companies will give you up to 10% off your contents insurance if you have these kind of locks fitted. You can also have an alarm fitted by a recognised alarm fitter, which your insurance company can recommend, and again this can give you up to 10% of your policy. Bear in mind that these can be expensive alarms which could require annual servicing. Higher policy excess. Most policies will require you to pay the first £50 of any claim, but if you're willing to take on more of the risk with a higher excess and pay more, your premium will fall. Neighbourhood watch. Some insurers still offer a small discount if you live in a neighbourhood watch area; again check with your insurer. No claims bonus. Just like your car insurance; a record of no previous claims can reduce your premiums. Some policies now offer the option to protect your no claims bonus. If your NCB isn't protected and you need to make a claim, consider whether it may be cheaper to pay for the loss or damage yourself to prevent a premium increase. Your age. Statistically, the older you get, the less likely you are to make a claim. So if you're a lower risk this will be reflected in your premiums. Some companies offer extra benefits to those over 50 such as Saga. Extra precautions. Declare any additional safety or security precautions you've made for your property or valuables such as cctv, fire precautions or a home safe for your jewellery etc. Your lifestyle. If you have a dog, don't drink or smoke, be sure to declare this as such factors are assessed by some insurers to reduce premiums. Applying to your existing insurer as a new customer can sometimes reduce your premiums. Many insurers offer discounts to new customers which won't be repeated when you come to renew. If you apply online you will normally get a discount of around 10%. Before you carry out any security improvements to your home, always check with your home insurance company first. They will confirm which improvements will have the biggest cost cutting impact.
STEP 2: Only pay for what you needCalculating an accurate figure for the buildings and contents insurance value can be awkward, which is why a lot of homeowners are either under insured or paying for levels of cover they don't really need.
Buildings insurance covers the re-build cost of your property not its market value. The re-build value of your home is the cost of re-building it in the event that it is destroyed by fire or subsidence for example. The re-build value of your home can usually be found on your mortgage agreement, or property deeds. The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) produces a range of detailed guidance on the cost of rebuilding houses and flats together with a re-building cost calculator. Alternatively, you can opt for a policy that has an unlimited or high standard buildings sum insured so you don't have to be concerned about insuring the right amount.
Contents insurance covers almost everything else you would take with you if you moved house. Make a list of the rooms in your house and write down all the items contained in each with its value. Once you've done this, total the individual amounts to see what contents insurance protection you need. Remember to value items such as CD's, videos and clothing as their collective cost is often under insured. Whether your wardrobe is full of jeans or designer labels, make sure you include the cost of replacing them.
STEP 3: Consider separate policiesIf you need both buildings and contents insurance, get quotes for separate policies for maximum potential savings. Most insurers do provide them as separate policies and just because one is cheap for buildings cover doesn't mean they are equally competitive to insure the contents. Find the cheapest providers for each component and consider buying each from different insurers.
STEP 4: Shop around and saveAs with any other product, the biggest savings are revealed by shopping around.
Firstly, don't simply opt for the home insurance supplied by your mortgage lender. They can be convenient when your busy sorting your mortgage but they're often over priced and chances are they won't have been compared against other policies on the market.
When shopping for insurance you basically have three options; go direct to the insurer, browse the web or use a broker. If you have the time and commitment you can do all three, but the fastest and most effective route is to log on and use the reach of the internet.
The most powerful and timesaving websites compare dozens of brokers and home insurance companies in minutes. You only have to fill in one form to get a list of premiums displayed on your screen from major insurers and brokers. However, if you have unusual or very specific requirements the final premium may increase when confirmed direct with your chosen insurer. Some of the best home insurance comparison and broker sites are:
Moneysupermarket.comCompareTheMarket.comGoCompare.comConfused.comCETASwintonThe AA
STEP 5: HaggleLike every other product, insurance has a margin of profit built into it which can be negotiated down if you're armed with the right information. Not every insurer will buckle and concede an additional discount but if you don't ask you won't know.
Firstly, find the cheapest quote after using internet comparison sites and phoning a few brokers. Take the cheapest quote and contact your existing insurer first asking them to beat it. If they won't budge contact the second cheapest insurer and do the same. If after all that the insurer won't cut the premium, ask them to throw in some extra cover to sweeten the deal or move on to the next home insurance company.
Unfortunately, not all home insurance policies are created equal making it difficult to compare like with like. The areas and level of protection offered vary from policy to policy along with the price. So having a definite idea of what you need to insure and for how much will help minimise the overall time and money spent buying it.
STEP 1: Reduce the risk and reduce the costAll insurance policies protect against the risk of financial loss. So if you take steps to reduce the risk of damage or loss to your property and possessions, you'll be rewarded with a lower premium. Here’s a quick summary of a few of the most effective measures.
Call your home insurance company or local neighbourhood watch scheme and they will send you a list of steps to take to make your house more secure. Fit locks to all windows and level 5 (BS3621) mortise deadlocks locks to the doors. Most insurance companies will give you up to 10% off your contents insurance if you have these kind of locks fitted. You can also have an alarm fitted by a recognised alarm fitter, which your insurance company can recommend, and again this can give you up to 10% of your policy. Bear in mind that these can be expensive alarms which could require annual servicing. Higher policy excess. Most policies will require you to pay the first £50 of any claim, but if you're willing to take on more of the risk with a higher excess and pay more, your premium will fall. Neighbourhood watch. Some insurers still offer a small discount if you live in a neighbourhood watch area; again check with your insurer. No claims bonus. Just like your car insurance; a record of no previous claims can reduce your premiums. Some policies now offer the option to protect your no claims bonus. If your NCB isn't protected and you need to make a claim, consider whether it may be cheaper to pay for the loss or damage yourself to prevent a premium increase. Your age. Statistically, the older you get, the less likely you are to make a claim. So if you're a lower risk this will be reflected in your premiums. Some companies offer extra benefits to those over 50 such as Saga. Extra precautions. Declare any additional safety or security precautions you've made for your property or valuables such as cctv, fire precautions or a home safe for your jewellery etc. Your lifestyle. If you have a dog, don't drink or smoke, be sure to declare this as such factors are assessed by some insurers to reduce premiums. Applying to your existing insurer as a new customer can sometimes reduce your premiums. Many insurers offer discounts to new customers which won't be repeated when you come to renew. If you apply online you will normally get a discount of around 10%. Before you carry out any security improvements to your home, always check with your home insurance company first. They will confirm which improvements will have the biggest cost cutting impact.
STEP 2: Only pay for what you needCalculating an accurate figure for the buildings and contents insurance value can be awkward, which is why a lot of homeowners are either under insured or paying for levels of cover they don't really need.
Buildings insurance covers the re-build cost of your property not its market value. The re-build value of your home is the cost of re-building it in the event that it is destroyed by fire or subsidence for example. The re-build value of your home can usually be found on your mortgage agreement, or property deeds. The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) produces a range of detailed guidance on the cost of rebuilding houses and flats together with a re-building cost calculator. Alternatively, you can opt for a policy that has an unlimited or high standard buildings sum insured so you don't have to be concerned about insuring the right amount.
Contents insurance covers almost everything else you would take with you if you moved house. Make a list of the rooms in your house and write down all the items contained in each with its value. Once you've done this, total the individual amounts to see what contents insurance protection you need. Remember to value items such as CD's, videos and clothing as their collective cost is often under insured. Whether your wardrobe is full of jeans or designer labels, make sure you include the cost of replacing them.
STEP 3: Consider separate policiesIf you need both buildings and contents insurance, get quotes for separate policies for maximum potential savings. Most insurers do provide them as separate policies and just because one is cheap for buildings cover doesn't mean they are equally competitive to insure the contents. Find the cheapest providers for each component and consider buying each from different insurers.
STEP 4: Shop around and saveAs with any other product, the biggest savings are revealed by shopping around.
Firstly, don't simply opt for the home insurance supplied by your mortgage lender. They can be convenient when your busy sorting your mortgage but they're often over priced and chances are they won't have been compared against other policies on the market.
When shopping for insurance you basically have three options; go direct to the insurer, browse the web or use a broker. If you have the time and commitment you can do all three, but the fastest and most effective route is to log on and use the reach of the internet.
The most powerful and timesaving websites compare dozens of brokers and home insurance companies in minutes. You only have to fill in one form to get a list of premiums displayed on your screen from major insurers and brokers. However, if you have unusual or very specific requirements the final premium may increase when confirmed direct with your chosen insurer. Some of the best home insurance comparison and broker sites are:
Moneysupermarket.comCompareTheMarket.comGoCompare.comConfused.comCETASwintonThe AA
STEP 5: HaggleLike every other product, insurance has a margin of profit built into it which can be negotiated down if you're armed with the right information. Not every insurer will buckle and concede an additional discount but if you don't ask you won't know.
Firstly, find the cheapest quote after using internet comparison sites and phoning a few brokers. Take the cheapest quote and contact your existing insurer first asking them to beat it. If they won't budge contact the second cheapest insurer and do the same. If after all that the insurer won't cut the premium, ask them to throw in some extra cover to sweeten the deal or move on to the next home insurance company.
The basic parts of homeowners insurance
What does home mean to you? I believe there are as many answers as there are people answering the question. To some it’s where they were born, place they were running around in the childhood, it’s where their parents are raising grandchildren. To others home is where they start a new family, new life. For some it’s a happy place, for somebody else it might be a burden.
No matter what home is to us, we still should protect it. Actually, getting homeowners insurance does not mean protection only from fire, earthquakes or tornados, it includes so many other things like you being sued for your dog scare a neighbor’s child , who was teasing him, in spite of your repeated warnings to leave the dog alone; or you spilling red wine on your friends white carpet, which needs a replacement; or somebody’s getting injured in your house , no matter who’s fault that is. All these and much-much more could be covered. The problem for a lot of us is to buy homeowners insurance right , without any gaps, so at claim time there are no unpleasant surprises.
There are six major coverage parts of a typical homeowner’s policy.
Coverage A : damage to or destruction of your residence Coverage B : damage to or destruction of detached structures Coverage C : damage to, destruction of, or theft of personal belongings anywhere in the world Coverage D : the added living costs you incur as a result of a loss covered by A, B, or C (lodging, meals and utilities) Coverage E : personal liability for injuries and property damage at home and anywhere else in the world Coverage F : medical payments to guests injured on your premises, regardless of any fault It is pretty complex with lots of exclusions and limitations. You must not make a mistake of getting your insurance based on a price alone. You may end up with a cheaper price for the wrong coverage.
No matter what home is to us, we still should protect it. Actually, getting homeowners insurance does not mean protection only from fire, earthquakes or tornados, it includes so many other things like you being sued for your dog scare a neighbor’s child , who was teasing him, in spite of your repeated warnings to leave the dog alone; or you spilling red wine on your friends white carpet, which needs a replacement; or somebody’s getting injured in your house , no matter who’s fault that is. All these and much-much more could be covered. The problem for a lot of us is to buy homeowners insurance right , without any gaps, so at claim time there are no unpleasant surprises.
There are six major coverage parts of a typical homeowner’s policy.
Coverage A : damage to or destruction of your residence Coverage B : damage to or destruction of detached structures Coverage C : damage to, destruction of, or theft of personal belongings anywhere in the world Coverage D : the added living costs you incur as a result of a loss covered by A, B, or C (lodging, meals and utilities) Coverage E : personal liability for injuries and property damage at home and anywhere else in the world Coverage F : medical payments to guests injured on your premises, regardless of any fault It is pretty complex with lots of exclusions and limitations. You must not make a mistake of getting your insurance based on a price alone. You may end up with a cheaper price for the wrong coverage.
Does Your Home Insurance Policy Cover You for Earthquake Damage?
Did the earth move for you on February 26th 2008? Whether you felt the earthquake that night or not, home insurers in the UK have since received a flurry of claims arising from the damage it caused.
Unlike last summer’s floods, when many homeowners learned to their dismay that they weren’t covered for flood damage, leading insurers say that most home insurance policies will pay out for damage caused by earthquakes. If you’re one of the thousands whose homes or property were damaged, the Association of British Insurers has some advice to help you get your claims processed quickly with minimum fuss.
Call your insurer as soon as possible to file a claim.The sooner you call your insurer, the more quickly they can get an appraiser out to assess the damage. Check with your home insurance company to find out exactly what claims procedure you should follow. With the unexpected flow of claims due to the recent earthquake and widespread publicity, some companies may have set up a process to expedite claims and make payouts more quickly.
Check your property immediately for damage that may affect safety.The size of the earthquake may have caused damage that makes your home unsafe. One of the first things you should do is check over your home to assess its safety. Among the places you should check for damage are Tiles, Roofs, Chimneys, Subsistence and Walls.
Contact relevant utilities to check your property if you suspect damaged pipes or wiring to your home.Cracks in walls or fallen masonry often indicate that the structure of your house has been weakened, and the damage may lead to further problems in the future. If you suspect that gas, water or electrical lines into your home may have been damaged, contact the relevant utility companies immediately.
Take advantage of alternative lodgings if your home insurance provides it.Check your policy for specific benefits that will make life easier for you should you need to evacuate your home. If your home is damaged and made unsafe by an earthquake or flooding, your policy may cover the cost of alternative lodgings until it is repaired and safe to occupy again. Some policies may provide cover the replacement of necessities if you are unable to re-enter your home to retrieve them.
Take photographs of the damage to help support your claim.Photographs can help your insurer assess damage more quickly. In some cases, your insurer may be able to assess your claim without sending out an assessor, though that’s rare. It can, however, help expedite your claim.
Do not start repairs until your insurer has approved your claim.And be certain that you only hire legitimate workers and repair companies. Avoid doorstop builders.
Don't destroy the evidence.Keep damaged possessions for assessment and proof of loss, and hold onto all receipts for work done to your property for reimbursement. If you were lucky enough to escape damage from February’s earthquake, there’s still a lesson to be learned. The ABI estimates that one of every four UK homeowners has no insurance cover at all, and of those that do, many are underinsured. So take this opportunity to review your home insurance policy and make sure that you’re adequately protected.
What's Your Claims Experience?Have you made a claim on your home insurance policy? Whether you've claimed because of the recent earthquake or not, please take a few minutes to share your experience by writing a home insurance review. It's a great way to reward good customer service or vent your disatisfaction for all to see - including your insurance company.
Unlike last summer’s floods, when many homeowners learned to their dismay that they weren’t covered for flood damage, leading insurers say that most home insurance policies will pay out for damage caused by earthquakes. If you’re one of the thousands whose homes or property were damaged, the Association of British Insurers has some advice to help you get your claims processed quickly with minimum fuss.
Call your insurer as soon as possible to file a claim.The sooner you call your insurer, the more quickly they can get an appraiser out to assess the damage. Check with your home insurance company to find out exactly what claims procedure you should follow. With the unexpected flow of claims due to the recent earthquake and widespread publicity, some companies may have set up a process to expedite claims and make payouts more quickly.
Check your property immediately for damage that may affect safety.The size of the earthquake may have caused damage that makes your home unsafe. One of the first things you should do is check over your home to assess its safety. Among the places you should check for damage are Tiles, Roofs, Chimneys, Subsistence and Walls.
Contact relevant utilities to check your property if you suspect damaged pipes or wiring to your home.Cracks in walls or fallen masonry often indicate that the structure of your house has been weakened, and the damage may lead to further problems in the future. If you suspect that gas, water or electrical lines into your home may have been damaged, contact the relevant utility companies immediately.
Take advantage of alternative lodgings if your home insurance provides it.Check your policy for specific benefits that will make life easier for you should you need to evacuate your home. If your home is damaged and made unsafe by an earthquake or flooding, your policy may cover the cost of alternative lodgings until it is repaired and safe to occupy again. Some policies may provide cover the replacement of necessities if you are unable to re-enter your home to retrieve them.
Take photographs of the damage to help support your claim.Photographs can help your insurer assess damage more quickly. In some cases, your insurer may be able to assess your claim without sending out an assessor, though that’s rare. It can, however, help expedite your claim.
Do not start repairs until your insurer has approved your claim.And be certain that you only hire legitimate workers and repair companies. Avoid doorstop builders.
Don't destroy the evidence.Keep damaged possessions for assessment and proof of loss, and hold onto all receipts for work done to your property for reimbursement. If you were lucky enough to escape damage from February’s earthquake, there’s still a lesson to be learned. The ABI estimates that one of every four UK homeowners has no insurance cover at all, and of those that do, many are underinsured. So take this opportunity to review your home insurance policy and make sure that you’re adequately protected.
What's Your Claims Experience?Have you made a claim on your home insurance policy? Whether you've claimed because of the recent earthquake or not, please take a few minutes to share your experience by writing a home insurance review. It's a great way to reward good customer service or vent your disatisfaction for all to see - including your insurance company.
Summertime, and Stealing Your Garden Equipment is Easy
When the days get warm, lots of us take to the outdoors like ducks to water. Out come the barbecues, patio furniture, chimneys, fountains and birdbaths. Unfortunately, by doing so, most of us also put out an open invitation to thieves too.
According to Halifax Home Insurance, garden equipment theft increases by over 50% in the summer months each year. And as outdoor living has become more popular, the average claim for the theft of outdoor garden and patio items has increased by over 25%.
The fact is that patio furniture and outdoor equipment is more valuable than many people realise, and the cost of replacing a few chairs and a grill can add up fast. Because it’s outdoors, many people never consider taking safety measures to secure it, perhaps assuming that no one will walk off with their property in plain sight.
Unfortunately, the truth is that many thieves do exactly that, particularly in neighbourhoods where there are fewer people at home on weekdays. According to figures from Halifax, the average claim following a garden theft, ranges from a high of £679 in Bolton & Wigan to a low of £116 in Harlow. Those can be hefty losses if you discover that your home contents policy doesn’t cover some or all of it.
So, how can you protect your property from being targeted if garden thieves come to your neighbourhood? These tips from Halifax will help you keep your yard, patio and garden property safe and secure...
Identify your stuff. Mark garden furniture and ornaments with your postcode to make them easy to identify in the event that they’re stolen.
Keep photos of valuable items in case they are vandalised or stolen.
Lock garden gates, sheds, garages and outbuildings to make it more difficult for thieves to gain access to your belongings.
Put bricks in the bottom of patio containers to make them harder to pick up and walk off with.
Don’t leave portable valuables out in plain sight. Bicycles, lawn and garden tools, lawnmowers and children’s toys should always be locked away out of sight when not in use.
Use gravel or rocks on your driveway and paths to deter thieves. You’ll be able to hear them approaching – and so will your neighbours.
Join a Neighbourhood Watch scheme, or get together with your neighbours to start one if you don’t have one already.
Fence or wall your garden or yard. Even high hedges are a deterrent to would-be thieves.
Store your gas grill or barbecue inside if you can. If you can’t, run a bicycle chain through a support and chain your grill to a fence or other immoveable object.
Don’t forget garden or yard lighting with motion detection to deter thieves at night.
Finally, check your home insurance policy to see what kind of cover you have for outdoor and garden equipment. If your policy doesn’t cover yard and garden items, talk to your insurer about adding additional cover or shop around to see if you’re likely to get a better deal elsewhere.
According to Halifax Home Insurance, garden equipment theft increases by over 50% in the summer months each year. And as outdoor living has become more popular, the average claim for the theft of outdoor garden and patio items has increased by over 25%.
The fact is that patio furniture and outdoor equipment is more valuable than many people realise, and the cost of replacing a few chairs and a grill can add up fast. Because it’s outdoors, many people never consider taking safety measures to secure it, perhaps assuming that no one will walk off with their property in plain sight.
Unfortunately, the truth is that many thieves do exactly that, particularly in neighbourhoods where there are fewer people at home on weekdays. According to figures from Halifax, the average claim following a garden theft, ranges from a high of £679 in Bolton & Wigan to a low of £116 in Harlow. Those can be hefty losses if you discover that your home contents policy doesn’t cover some or all of it.
So, how can you protect your property from being targeted if garden thieves come to your neighbourhood? These tips from Halifax will help you keep your yard, patio and garden property safe and secure...
Identify your stuff. Mark garden furniture and ornaments with your postcode to make them easy to identify in the event that they’re stolen.
Keep photos of valuable items in case they are vandalised or stolen.
Lock garden gates, sheds, garages and outbuildings to make it more difficult for thieves to gain access to your belongings.
Put bricks in the bottom of patio containers to make them harder to pick up and walk off with.
Don’t leave portable valuables out in plain sight. Bicycles, lawn and garden tools, lawnmowers and children’s toys should always be locked away out of sight when not in use.
Use gravel or rocks on your driveway and paths to deter thieves. You’ll be able to hear them approaching – and so will your neighbours.
Join a Neighbourhood Watch scheme, or get together with your neighbours to start one if you don’t have one already.
Fence or wall your garden or yard. Even high hedges are a deterrent to would-be thieves.
Store your gas grill or barbecue inside if you can. If you can’t, run a bicycle chain through a support and chain your grill to a fence or other immoveable object.
Don’t forget garden or yard lighting with motion detection to deter thieves at night.
Finally, check your home insurance policy to see what kind of cover you have for outdoor and garden equipment. If your policy doesn’t cover yard and garden items, talk to your insurer about adding additional cover or shop around to see if you’re likely to get a better deal elsewhere.
Subscribe to:
Posts (Atom)
