Buying Life Insurance: What Kind and How Much?
Finding the middle ground between being "insurance poor" and unprotected requires assessing real needs and choosing products that are affordable. This article introduces different types of insurance products and the role that they can play in a personal financial plan.
Buying Life Insurance
Conventional wisdom says that life insurance is sold, not purchased. In other words, some people are reluctant to discuss the importance of owning life insurance, and others are simply unaware of the need to have life insurance. Although many large companies provide life insurance as part of their benefits package, this coverage may be insufficient.
Who needs life insurance? If there are individuals who depend on you for financial support, or if you work at home providing your family with such services as child care, cooking, and cleaning, you need life insurance. Older couples also may need life insurance to protect a surviving spouse against the possibility of the couple's retirement savings being depleted by unexpected medical expenses. And individuals with substantial assets may need life insurance to help reduce the effects of estate taxes or to transfer wealth to future generations.
Friday, October 23, 2009
Monday, October 19, 2009
A closer look at Secure Short Term Medical Insurance
The brand name "Secure Short Term Medical" is one of the best-known and most highly regarded low cost health insurance plans in the U.S. The brand actually consists of four products that each target a specific group of consumers. The four products are: 1) Secure STM, 2) Secure Lite STM, 3) Secure 12x3 STM and 4) Secure Saver STM.
What makes this product lineup work so well? Probably not any one thing in particular but rather a combination of factors. We could make an analogy to an "all star lineup" in a sports team. First, the plan is administered by Health Plan Administrators, Inc., arguably one of the best service organizations in health care today. Second, The Standard Security Life Insurance Company of New York enjoys a strong reputation among insurance professionals and consumers.
Next is the length of coverage. This is the only insurance product that can adequately span a gap from just one month to 36 months of continuous coverage. With a growing number of consumers looking forward to post-reform insurance within a few years, the Secure 12x3 offers the flexible length of coverage they need del with the uncertainty of the health care reform timetable.
Eligibility for the four insurance plans is liberal so most applicants will qualify for coverage. In fact, in many cases this is one of the few options available to applicants who have been previously declined for health insurance with another company. The exceptions are listed in the "medical eligibility" section of the online product descriptions. It is important to realize that all short term medical insurance plans exclude coverage for pre-existing medical conditions. This is what makes them so affordable and easy to access.
Only one of the four products screens for weight or previous declines in determining eligibility. That is the Secure Saver, as we might expect, since it it the lowest cost plan with the least predictable out-of-pocket expenses.
Finally, we cannot ignore price. Despite all the talk about the quality of insurance the fact is that many consumers buy based primarily on price. The Secure Lite and Secure Saver rank among the least expensive major medical insurance choices in many parts of the country.
A comparison of the four Secure STM products is published at FreedomBenefits.net and a description of coverage and exclusions is available for each product. Although all of these policies come with a standard "10 day free look", generic sample policy certificates are also available online for all four products for those who want to take a closer look at these insurance options.
What makes this product lineup work so well? Probably not any one thing in particular but rather a combination of factors. We could make an analogy to an "all star lineup" in a sports team. First, the plan is administered by Health Plan Administrators, Inc., arguably one of the best service organizations in health care today. Second, The Standard Security Life Insurance Company of New York enjoys a strong reputation among insurance professionals and consumers.
Next is the length of coverage. This is the only insurance product that can adequately span a gap from just one month to 36 months of continuous coverage. With a growing number of consumers looking forward to post-reform insurance within a few years, the Secure 12x3 offers the flexible length of coverage they need del with the uncertainty of the health care reform timetable.
Eligibility for the four insurance plans is liberal so most applicants will qualify for coverage. In fact, in many cases this is one of the few options available to applicants who have been previously declined for health insurance with another company. The exceptions are listed in the "medical eligibility" section of the online product descriptions. It is important to realize that all short term medical insurance plans exclude coverage for pre-existing medical conditions. This is what makes them so affordable and easy to access.
Only one of the four products screens for weight or previous declines in determining eligibility. That is the Secure Saver, as we might expect, since it it the lowest cost plan with the least predictable out-of-pocket expenses.
Finally, we cannot ignore price. Despite all the talk about the quality of insurance the fact is that many consumers buy based primarily on price. The Secure Lite and Secure Saver rank among the least expensive major medical insurance choices in many parts of the country.
A comparison of the four Secure STM products is published at FreedomBenefits.net and a description of coverage and exclusions is available for each product. Although all of these policies come with a standard "10 day free look", generic sample policy certificates are also available online for all four products for those who want to take a closer look at these insurance options.
Wednesday, October 7, 2009
Celtic Insurance gains customers with low prices
Pricing of short term medical insurance tends to be more stable than managed care plans or other types of health insurance. As a result, pricing trends tend to develop more slowly and it may take longer for advisers and consumers to identify those companies with cost advantages. One such example is Celtic Insurance that has slowly and quietly winning over customers with its low rates and strong customer service. The coverage is priced and issued completely online at the company's secure enrollment site managed by ehealthinsurance.
Sunday, September 20, 2009
Buying Life Insurance For The First Time
Buying Life Insurance For The First Time
When one purchase insurance, it means that you are buying something that you would never use it, but in case you need to file an insurance claim, you would come to know how important it is to have right type of coverage. Follow the below given tips in case you are a first time buyer for life insurance.
It is a remarkable fact that people who is actually healthy get best rates on life insurance. You would be asked to pay a superior rate of anything that lessen your life expectancy for example, if you have smoking habit, or if you are overweight, or may be bad in driving.
The life insurance company would certainly ask you about your health check history and might desire you to take some kind of medical you as well test for. While filling up the health advice form you need to be true to them, in case you lie the company would find out and your life insurance policy would be surely canceled. And if in case your sick and were to die and then the life insurance company found out you lied earlier, if, for instance, you said you were a non-smoker but ended up dying of lung cancer from a smoking habit, they would then certainly deny the death benefits.
No matter what type of insurance you're purchasing, the course is fundamentally the same. Once you've determined what type of insurance and as well how much coverage you require, you could start contacting insurance companies online, straight by phone, or even through an insurance broker or agent to get quotes. Get quotes from numerous diverse insurers because premium cost could surely vary widely.
An insurance policy may cost less because it offers less, or dissimilar, features and benefits. And make certain the company you've settled on is highly regarded, with high-quality customer service and also claims-paying ability. All insurance companies are rated by chief rating agencies (e.g. Standard & Poor's, Moody's, A.M. Best) on their available capability to pay claims. You could also access these ratings online, by way of public libraries, or through insurance company literature.
An insurance policy is a legal contract that may be loaded with technical terms that are hard to understand. But read it anyway before you sign on the dotted line to find out about the coverage you're buying. A life insurance policy is a lawful deal, which might be loaded with technical terms that are hard to understand, but you need to read it anyways before you sign on dotted line to find out about the premium and coverage you are buying. For instance, the policy would tell you:
Who is covered?
What coverage eliminations and limitations apply?
When coverage starts and ends
How much coverage is actually provided to you?
How much you would pay for insurance coverage
How you report a loss and to file a claim
The most excellent key for purchasing right amount of life insurance is just to have sufficient coverage policy which meets your need. In case if it carry more life insurance than what you really required; you'll land up paying unwanted for higher premiums. On the other hand it is also significant not to have too little coverage, which might result in you being underinsured.
If you've been putting off for buying life insurance because you don't want to pay the premiums, you might be doing yourself damage in the long run. The younger you are when you buy life insurance coverage, the lower your premiums would pay. Make your life insurance policies work for you by taking the time to occasionally review your needs and coverages.
When one purchase insurance, it means that you are buying something that you would never use it, but in case you need to file an insurance claim, you would come to know how important it is to have right type of coverage. Follow the below given tips in case you are a first time buyer for life insurance.
It is a remarkable fact that people who is actually healthy get best rates on life insurance. You would be asked to pay a superior rate of anything that lessen your life expectancy for example, if you have smoking habit, or if you are overweight, or may be bad in driving.
The life insurance company would certainly ask you about your health check history and might desire you to take some kind of medical you as well test for. While filling up the health advice form you need to be true to them, in case you lie the company would find out and your life insurance policy would be surely canceled. And if in case your sick and were to die and then the life insurance company found out you lied earlier, if, for instance, you said you were a non-smoker but ended up dying of lung cancer from a smoking habit, they would then certainly deny the death benefits.
No matter what type of insurance you're purchasing, the course is fundamentally the same. Once you've determined what type of insurance and as well how much coverage you require, you could start contacting insurance companies online, straight by phone, or even through an insurance broker or agent to get quotes. Get quotes from numerous diverse insurers because premium cost could surely vary widely.
An insurance policy may cost less because it offers less, or dissimilar, features and benefits. And make certain the company you've settled on is highly regarded, with high-quality customer service and also claims-paying ability. All insurance companies are rated by chief rating agencies (e.g. Standard & Poor's, Moody's, A.M. Best) on their available capability to pay claims. You could also access these ratings online, by way of public libraries, or through insurance company literature.
An insurance policy is a legal contract that may be loaded with technical terms that are hard to understand. But read it anyway before you sign on the dotted line to find out about the coverage you're buying. A life insurance policy is a lawful deal, which might be loaded with technical terms that are hard to understand, but you need to read it anyways before you sign on dotted line to find out about the premium and coverage you are buying. For instance, the policy would tell you:
Who is covered?
What coverage eliminations and limitations apply?
When coverage starts and ends
How much coverage is actually provided to you?
How much you would pay for insurance coverage
How you report a loss and to file a claim
The most excellent key for purchasing right amount of life insurance is just to have sufficient coverage policy which meets your need. In case if it carry more life insurance than what you really required; you'll land up paying unwanted for higher premiums. On the other hand it is also significant not to have too little coverage, which might result in you being underinsured.
If you've been putting off for buying life insurance because you don't want to pay the premiums, you might be doing yourself damage in the long run. The younger you are when you buy life insurance coverage, the lower your premiums would pay. Make your life insurance policies work for you by taking the time to occasionally review your needs and coverages.
Tuesday, December 9, 2008
Unemployment Health Insurance
One of the most painful parts of losing a job is having to deal with replacing your health insurance. Most people feel unprepared to select and enrolling in this type of health insurance even though most of us will have a handful of interruptions in employer-provided health insurance over our full working career. Employer-provided health insurance expires on the last day of the month of termination of employment. Enrollment in an unemployment health insurance is never automatic and must be addressed within a short time after termination of employment.
Types of coverage
While unemployment compensation is provided through the government, unemployment health insurance is provided through commercial health insurance companies. The term "unemployment health insurance" is generic and therefore may refer to one of several available insurance programs. Some people who work for larger companies have the option of continuing their same health insurance for up to 18 months by paying the full cost of this coverage plus an administrative fee. This is commonly known as COBRA coverage. In some cases a similar program called "individual conversion coverage" is available. In either case the burden of enrollment and full payment of premiums is solely the responsibility of the terminated employee. Despite the obvious advantages in simplicity and continuity of coverage, few people can afford this option.
The most popular type of unemployment health insurance is short term major medical insurance. Despite the name, this insurance can span several years or longer and eligibility requirements are minimal1. This insurance offers flexibility with high coverage limits. Policies can be renewed month-to-month from one month to six or twelve months. The two most important features of this coverage are that it is valid with all doctors and hospitals in the U.S. (no network required) and it provides a Certificate of Creditable Coverage2 to be used with your next employer's health insurance policy. This is important because it ensures that the new coverage immediately takes over the cost of treating pre-existing medical conditions.
Specialty insurance can be used in specific situations and regular individual major medical insurance is suitable when it is unlikely that there will be other employment in the future and the applicant is financially stable.
Shopping Tips
Plan to enroll in a bare-bones coverage rather than a fully loaded policy. Most people avoid incurring voluntary medical expenses while they are not employed so this insurance is primarily designed to cover large unexpected medical expenses. Also, because of the uncertainty of unemployment, it is smart to select an insurance that is less expensive than you think you can afford.
Short term medical insurance is priced at about 1/3 of the cost of your former insurance or COBRA option. For a typical employee, this means that the total cost of the unemployment health insurance will be approximately the same as the amount you were contributing to the employer's health plan through salary-deductions3. Using his guideline, it may be psychologically comforting and aid in your personal financial planning to know that the total out-of-pocket cost of health insurance remains relatively constant from the period of employment to the period of unemployment.
All of the following insurance products provide strong protection against catastrophic losses and provide a Certificate of Creditable Coverage to ensure payment for pre-existing medical conditions on your next employer-provided health insurance plan. The price of the coverage varies and some products are better suited for specific situations. We suggest narrowing the list to two or three choices and then get online quotes for each product.
Use the online enrollment options available. This is faster and safer than a paper application and offers immediate confirmation of coverage.
Insurance Choices
All of the following choices are available a MedSave.com. They are grouped according to price range although price varies from one person to another based on location of residence, age, and sex.
Lowest cost unemployment policies - Celtic Insurance STM and UnitedHealthOne Golden Rule Insurance STM are often the least expensive insurance plans to cover a gap in group health insurance. Some of these plans keep cost down by using a "per cause" deductible rather than a single policy deductible.
Mid-range unemployment policies - Secure 3x12 (36 month) short term medical insurance, and Health Savings Account qualified health insurance for long term coverage.
Higher priced unemployment policies - Blue Cross, Aetna, Cigna, CelticCare
Special Situations
When specific medical conditions or circumstances exist then additional sources should be checked to determine the best coverage options. The special situations are: 1) when significant medical conditions, including diabetes, high blood pressure or high cholesterol exists, 2) applicant is a resident of MA, NJ, NY or VT, 3)non-US citizens, 4) residing in the U.S. les than a year, 5) previously declined for health insurance coverage, 6) applicant is overweight or 7) coverage is needed outside of the U.S. In all of these cases, see the article titles "Short Term Medical Insurance for Special Situations".
Individual help in selecting the best value insurance is available through OnlineAdviser at onlineadviser@short-term-medical-insurance.com.
Footnotes
1 See the article "Am I Eligible for Short Term Medical Insurance" and "How Long Can I Be Covered by Short Term Medical Insurance" for details.
2 See the article "Understanding a Certificate of Creditable Coverage" for more information.
3 This assumes that the average employee contribution for employer-provided coverage is about 40% of the total cost.
Thursday, November 13, 2008
Recession impacts health insurance
An artice in Time (November 13, 2008) predicts that the number of uninsured Americans will rise sharply to above 50 million within the next few months. This pessimistic prediction assumes that many employers will drop their group health plans to combat the recession by the end of the 2008 calendar year and that many of these individuals will not obtain alternate health insurance on their own. The prediction also assumes that employers would drop health coverage altogether rather than switch to one of the low cost limited beneft plans now available. We see no reason to support these assumptions.
The number of uninsureds has actually decreased slightly over the past two years as more affordable insurance plans have been introduced to the market according to our "Covering the Unisured: 2008 Update" report. The cost of employer provided health insurance coverage for an employee without dependents is about $6,000 per year and COBRA coverage cost slightly more. But the cost of individually purchased short term medical insurance averages only about $1,800 per year. About 72% of Americans currently qualify for this type of low cost short term medical insurance. (Short term medical insurance is not available to the residents of four states or individuals with serious pre-existing medical conditions).
Given this viable and affordable alternate coverage possibility, it seems unlikely that more than an additional four million people would choose to go without any health insurance in 2009.
The number of uninsureds has actually decreased slightly over the past two years as more affordable insurance plans have been introduced to the market according to our "Covering the Unisured: 2008 Update" report. The cost of employer provided health insurance coverage for an employee without dependents is about $6,000 per year and COBRA coverage cost slightly more. But the cost of individually purchased short term medical insurance averages only about $1,800 per year. About 72% of Americans currently qualify for this type of low cost short term medical insurance. (Short term medical insurance is not available to the residents of four states or individuals with serious pre-existing medical conditions).
Given this viable and affordable alternate coverage possibility, it seems unlikely that more than an additional four million people would choose to go without any health insurance in 2009.
Sunday, October 19, 2008
Golden Rule Web site temporarily closed for maintenance
Golden Rule Insurance Company, a national leader in innovative low cost health insurance, announced that its "E-store" will be closed for system maintenance over the weekend of Friday October 17, 2008 and will reopen at 8:00AM eastern time on Monday October 20. While direct self-serve online quoting, enrollment and some other functions may still be available during this weekend, MedSave.com will postpone customer service requests until Monday when all online functions are available to provide full enrollment support.
Golden Rule Insurance provides low cost short term medical insurance as well as a line of affordable long term renewable insurance policies for individuals and families in most states. See www.MedSave.com/goldenrule for more information.
Golden Rule Insurance provides low cost short term medical insurance as well as a line of affordable long term renewable insurance policies for individuals and families in most states. See www.MedSave.com/goldenrule for more information.
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