Health insurance plans are rather expensive. There are nine factors that have influence on the cost of your plan. Learn what they are and their consequences on the premium.
Whatever you do, please work with an experienced agent. He can explain how this works and help you to understand the different terms and how the factors affect your quote. There is no cost to you to use a good agent and he can make the shopping experience less stressful.
Let's go through the different factors now:
Age: As you might guess, the younger you are, the less you have to pay for health insurance. Why? Because generally speaking, younger people are healthier than older people. As we age, different and various illnesses show up.
Perhaps you are eating too well and you develop type 2 diabetes. Maybe you don't get the exercise you should. Certainly, you will agree, that younger people are usually healthier than older people.
Gender: Males are much less complicated than women. This is said, tongue in cheek, but you might also agree. Just take the annual physical for example. A woman needs an OBGYN exam, a mamagram, pap smear along with all the other blood tests to determine if she is well. Men usually will have blood tests and a cancer screening PSA test.
Psychologically, women tend to use medical services much more than men, also. A typical man feels invulnerable and won't go to the doctor unless he is really sick. I know, this is generalization, but it is frequently true!
Health history: How healthy have you been? Are you the right weight for your height and gender? Have you developed a condition such as elevated blood pressure or elevated cholesterol? Our human body is extremely complex and so many things can go wrong.
Healthy individuals will get a lower premium quote because the health insurance company in NC extrapolates your health into the future. Healthy people tend to remain healthy. A person with many health challenges, will have those challenges or more in the future.
Exercise: People who exercise typically have fewer problems with their weight. They have less susceptibility to insulin resistance - type 2 diabetes. They have fewer health problems of any kind.
The recommended minimum amount of exercise for Blue Cross Blue Shield of North Carolina is twenty minutes of exercise for three times per week. Obviously, you can exercise more than this, but if you do at leas this amount, it will be beneficial.
Whether already insured: If you have been covered by a health plan for years, the new insurance company interested in insuring you is less worried.
Certainly, if you have been under a doctor's care, it is less likely that you will develop an undiagnosed condition that the new insurance company would be responsible for.
Perhaps the most difficult person to insure is one who has never had a family doctor. He may think that he is very healthy because he has not needed to see a medical person.
However, there may be some condition that has been developing over the years that he is unaware of. That is why health insurance companies are happier if they need to insure someone who has had continual health coverage.
Type of plan chosen: If you choose a relatively new type of plan called a high deductible health plan, and use it in conjunction with a health savings account, you will definitely save money.
The HSA type plan costs you less each month in premium amount. It costs about $60 for a doctor sick visit, but you are likely to save thousands of dollars each year on premiums.
In addition, if you have a high deductible health plan, you can open up a health savings account at your local bank.
Money that you deposit into your health savings account can be used for any medical expense...and importantly, that money is not taxed! Money that escapes taxation saves you about 40%.
By the way, if you don't spend all your savings in any year, it doesn't matter. It doesn't go away like in a flexible spending account. This savings money is yours, like an IRA, and it will be there to help you pay your medical expenses. At the age 65, you can take the money out of your account and use it for anything you'd like...finally though, you will have to pay taxes on the money.
If you spend your health savings account on qualified medical expenses, you will not have to pay income tax on this money. Great sound to that eh?
Deductible chosen: If you choose a high deductible plan, the insurance provider will not charge you as much of a penalty, called a "rate up".
A rate up is extra premium that that require because you may be on high blood pressure medicine, for example. That rate up takes into consideration that you will need medication for the rest of your life, most likely.
If you choose a high deductible plan, they calculate that you are willing to take on more risk. Consequently, the insurance provider won't have to charge you as much monthly premium. If you are looking to save money, choose a higher deductible plan.
Insurance company: The insurance company that you choose is very important in how you will be charged. Some insurance providers have many subscribers in the state and consequently, they can spread the risk over many, many people.
As an example, BCBSNC, Blue Cross and Blue Shield of North Carolina insures about 90% of the people in NC. Consequently, their rates are more stable and they aren't affected by pockets of the state that my turn up to be less healthy.
The insurance company is important in being able to see the doctor of your choice and go to whichever hospital you need to go to.
Because an insurance company has great penetration in a state, means that virtually all the doctors and all the hospitals will participate as a health provider. That's good for you because you have better choices.
Health Insurance Agent: A good agent who specializes in health insurance can provide you with a depth of knowledge about the plans that might fit you best. Another way the agent can help is interpreting how to answer the questions.
Many times, people read something into the question that isn't there, and answer it improperly. You don't want to answer a question that wasn't asked. Ask your agent his opinion about what it means. The agent is paid a commission by the insurance company - not the insured. It is advisable to use in insurance agent who has specialized.
Read More..
Monday, March 23, 2009
Friday, February 27, 2009
How to Choose the Right Health Insurance Care Plan
We need to admit the fact that more and more people today don't have any health insurance coverage. This is because it is too expensive while some people think that they don't need it because they don't feel or suffered any major health problem. However, you need to keep in mind that a health care plan is something that you can't afford not to have. And, it is something that will prepare you for the future in case the time comes where you will need it.
So, here are some tips on how to choose the right health care plan for you and your family.
The first thing that you need to think about is if you will be getting group plans or individual plans. Although some people think that it is cheaper to purchase a health care plan through an employer or through a group health care plan, there are some cases where purchasing individual plans can be cheaper.
The cost of the plan will always depend on different factors. If your employer will be the one who will pay for most of the premium, then obviously you will get a cheap health care plan and it is probably best to choose this option. However, if you are healthy and that your employer is offering you a health insurance plan but they are leaving you responsible for paying most of the premium, then it is wise that you should try buying an individual plan of your own.
You have to remember that group health plans must cover everyone on them which includes preexisting conditions. This is written on state laws and that it means that healthy people included in the group health insurance policy will balance out the costs that the insurance company needs to pay for individuals with preexisting health conditions that are covered by the same plan.
Finding cheap health insurance is very easy to do. You will find that the internet will be able to let you access thousands of different health care plans from different health insurance companies. All you need to do is do a little research and find a plan that suits your needs as well as your family. These are the ways on how to choose a health care plan. By following these tips, you can be sure that you will be able to get the right plan for you and your family. Read More..
Monday, February 23, 2009
Low Cost Health Insurance
Health insurance pays specified sums for medical expenses or treatments, and can offer many options and approaches to coverage.
There are different types of health insurance coverage designed to meet your needs and budget.
Health insurance is a risk management tool which helps ensure that you and your family have access to the healthcare you need when you need it, without causing a tremendous financial burden. The cost of health insurance, which is the premium, may be higher for a policy that provides a great amount of coverage and flexibility, while the premium may be lower for a policy that provides less coverage or flexibility.
While selecting a health insurance policy, it is important to consider the level of risk you are able and willing to assume, the premium you can afford to pay and the flexibility that you desire. Health insurance is generally available through groups and to individuals, and if you get group insurance at work, the premium usually is paid through your employer. If you are taking out individual insurance, it is best to contact a professional health insurance agent to review your options.
While choosing health insurance it is important to consider exactly what your needs are. Buying low-cost insurance is of no use if it does not meet your specific needs. The way to get best a health insurance policy is to remain healthy and provide proof of your healthy habits. If you don't smoke and have a well-maintained body then chances are you will get competitive insurance increases. If you prove that you have good health you can get a good quote, and if you have the necessary health care certificates the process becomes even easier. Read More..
Monday, January 12, 2009
Group Health Insurance Benefits: How to Keep Health Insurance Coverage 100%
Only 5% of employers in the U.S. still offer 100% coverage for their employees’ health insurance benefits. Other employers are choosing high copay plans or high deductible plans. Most others are passing their increase in health care costs on to their employees.
Fact: Health Care Premiums are rising faster than workers wages
Premiums for employer-sponsored health insurance rose an average of 6.1 percent in 2007, less than the 7.7 percent increase reported last year but still higher than the increase in workers’ wages (3.7 percent) and the overall inflation rate (2.6 percent), according to the 2007 Employer Health Benefits Survey conducted by the Kaiser Family Foundation and the Health Research and Educational Trust.
The 6.1 percent average increase this year was the slowest rate of premium growth since 1999, when premiums rose 5.3 percent. Since 2001, premiums for family coverage have increased 78 percent, while wages have increased 19 percent and inflation has increased 17 percent.
The average premium for family coverage in 2007 is $12,106. On average, workers now pay $3,281 out of their paychecks to cover their share of the cost of a family policy. While premiums continue to rise faster than wages, this year’s gap of 2.4 percentage points is much smaller than the 10.9 percentage point gap recorded four years ago, when premiums rose 13.9 percent and
wages grew just 3 percent. (Agent Sales Journal Nov. 2007)
Lets Keep it 100% coverage and reduce the premiums
This is a strategy from Easy To Insure Me .com
We will use 2 equations for a 15-employee group: Current and Future Solution
Equation 1 Current
15 employees
(Yearly Premium) $100,000=Health Care
Equation 2 Future Solution
(Yearly Premium) $60,000 + $15,000 (employees x deductibles) = $75,000 maximum exposure
100% coverage and the employer pays for the deductible
while still saving 20% to 40%
**We say maximum exposure because not all employees will satisfy the deductible. Read More..
Sunday, December 7, 2008
Life Insurance: Beneficiaries to Life Insurance Policies Are Crucial
Life insurance beneficiaries are people you name in your policy which will receive a death benefit if you should die. If you choose not to name a beneficiary, then a death benefit will be paid out to your estate. This article takes a fast look at the beneficiaries of life insurance policies.
Life insurance is used for the purpose of providing a payment of money after the death of the person who was insured by the policy. The insured person is mentioned in the policy as being the person covered by it. The money payment from the policy in the event of the passing away of the insured is called the death benefit. It is paid out to beneficiaries mentioned in the policy contract.
What is a beneficiary?
This person is nominated in a life assurance policy contract to receive the death benefit. You are able to nominate a single person or more, a trustee, a charity or just your estate.
There are basically two types of beneficiaries. They are a primary and a contingent nomination. The primary person receives a death benefit if she can be contacted after your death. In case the primary person cannot be found, then the contingent person will receive the death benefit. If both are missing the benefit is paid to your estate.
The beneficiaries of your life insurance policy should be clearly identified to prevent possible confusion. You can include a social security number for each relevant person you name. Provide full names of the people you choose.
There are more types of beneficiaries as well. Let us take a look at them.
Final beneficiary -- This person or entity will receive a death benefit if they outlive the other ones. This level is usually reserved for aunts and uncles or a charity of your choice.
Multiple beneficiaries -- When choosing multiple individuals to receive the death benefit, it is important to state clearly how much each individual should get.
Many married people choose to name their spouse as a primary beneficiary. Be mindful when choosing to name an executor, creditor, or a minor to receive a life insurance policy death benefit.
It is important to regularly update your policy information with regards to the beneficiaries. This is especially important after events such as a divorce or child birth.
Be mindful of these tips to help you with life insurance beneficiaries.
* Designate both primary and contingency persons.
* Provide their full name and state their relationship to you.
* Clearly define how the death benefit is to be divided between the beneficiaries.
You should be certain to buy enough life insurance for your particular needs. You should also match the duration of the policy to your individual needs. Buy life insurance when you are healthy since this will ensure a lower premium.
The beneficiary receives a face value of the policy if the policyholder dies within the specified duration of a policy. If the insured person survives this period, then the beneficiaries may receive no benefit. This is the old motive for murder you regularly see on murder mysteries on television. In the case of whole life insurance, this is less of a problem since they stay in force for up to 100 years of age. Read More..
Life insurance is used for the purpose of providing a payment of money after the death of the person who was insured by the policy. The insured person is mentioned in the policy as being the person covered by it. The money payment from the policy in the event of the passing away of the insured is called the death benefit. It is paid out to beneficiaries mentioned in the policy contract.
What is a beneficiary?
This person is nominated in a life assurance policy contract to receive the death benefit. You are able to nominate a single person or more, a trustee, a charity or just your estate.
There are basically two types of beneficiaries. They are a primary and a contingent nomination. The primary person receives a death benefit if she can be contacted after your death. In case the primary person cannot be found, then the contingent person will receive the death benefit. If both are missing the benefit is paid to your estate.
The beneficiaries of your life insurance policy should be clearly identified to prevent possible confusion. You can include a social security number for each relevant person you name. Provide full names of the people you choose.
There are more types of beneficiaries as well. Let us take a look at them.
Final beneficiary -- This person or entity will receive a death benefit if they outlive the other ones. This level is usually reserved for aunts and uncles or a charity of your choice.
Multiple beneficiaries -- When choosing multiple individuals to receive the death benefit, it is important to state clearly how much each individual should get.
Many married people choose to name their spouse as a primary beneficiary. Be mindful when choosing to name an executor, creditor, or a minor to receive a life insurance policy death benefit.
It is important to regularly update your policy information with regards to the beneficiaries. This is especially important after events such as a divorce or child birth.
Be mindful of these tips to help you with life insurance beneficiaries.
* Designate both primary and contingency persons.
* Provide their full name and state their relationship to you.
* Clearly define how the death benefit is to be divided between the beneficiaries.
You should be certain to buy enough life insurance for your particular needs. You should also match the duration of the policy to your individual needs. Buy life insurance when you are healthy since this will ensure a lower premium.
The beneficiary receives a face value of the policy if the policyholder dies within the specified duration of a policy. If the insured person survives this period, then the beneficiaries may receive no benefit. This is the old motive for murder you regularly see on murder mysteries on television. In the case of whole life insurance, this is less of a problem since they stay in force for up to 100 years of age. Read More..
Policy Holders Urged to Refrain From Lying on Life Insurance Forms
Insurance companies have warned customers about the dangers of lying on their insurance application forms. It has come to light that millions of people are in danger of having their life insurance policies cancelled due to lying about the status of their health.
Insurance companies tend to give cheaper premiums to people who can prove they are healthier and live a healthy lifestyle.
For example some companies cut down the premium rates of policy holders who buy healthy foods whilst others lower rates for policy holders with gym membership.
In recent times life insurance companies have offered new incentives like cutting the premium rates of non smokers as well as customers who do not use drugs or drink less.
For customers to be classified as a non smoker they will have stopped smoking for over 12months, this saves them £2,016 a year.
This has led to customers in poor health to lie about their health status in order to get cheaper rates. According to a new research 1 in 20 people lie on their insurance application forms. A Friend’s Provident study showed that 90% of people claim to always tell the truth on insurance applications however 5% admitted to lying on application forms. Whilst a fifth of people do not read the full terms and conditions on a policy when buying insurance.
A further study by Norwich Union found that 1 in 14 customers lied about their health and life style when applying for Life Insurance. This has prompted insurance companies to demand customers to prove their health status or risk having their policies cancelled, pay higher premiums or their claims refused. Half of some 5000 customers they wrote to have replied back and admitted to lying which could render their policies invalid.
Lying on your life insurance policy application could end in personal and financial disaster according to Ian Durrell of Only insurance, "Smokers who declare they have given up but continue to smoke no matter how infrequently will be paying for nothing should they die from a smoking related condition; The policy simply won’t pay out and their beneficiaries will be the losers."
"Smokers will pay twice the price for critical illness cover than a non-smoker – it’s a no win situation for the smoker, their nicotine addiction is tightening both their heart and purse strings," concluded Mr. Durrell
Also things like having your life insurance policy pay off your mortgage and other debts when the breadwinner of the family dies could be snatched away if you lie on your application forms.
Many insurance companies may be writing to their customers to ask for proof of their health status and those found to be lying could be made to pay higher premiums or have their policies cancelled all together. Currently insurers reject about 25% of claims because of misinformation.
Getting life insurance is there to protect and give peace of mind, so when taking one it’s a good idea to do some research and seek advice first. And to avoid being disappointed when it comes to making a claim, read the terms and conditions carefully and clearly and answer the questions truthfully. Read More..
Insurance companies tend to give cheaper premiums to people who can prove they are healthier and live a healthy lifestyle.
For example some companies cut down the premium rates of policy holders who buy healthy foods whilst others lower rates for policy holders with gym membership.
In recent times life insurance companies have offered new incentives like cutting the premium rates of non smokers as well as customers who do not use drugs or drink less.
For customers to be classified as a non smoker they will have stopped smoking for over 12months, this saves them £2,016 a year.
This has led to customers in poor health to lie about their health status in order to get cheaper rates. According to a new research 1 in 20 people lie on their insurance application forms. A Friend’s Provident study showed that 90% of people claim to always tell the truth on insurance applications however 5% admitted to lying on application forms. Whilst a fifth of people do not read the full terms and conditions on a policy when buying insurance.
A further study by Norwich Union found that 1 in 14 customers lied about their health and life style when applying for Life Insurance. This has prompted insurance companies to demand customers to prove their health status or risk having their policies cancelled, pay higher premiums or their claims refused. Half of some 5000 customers they wrote to have replied back and admitted to lying which could render their policies invalid.
Lying on your life insurance policy application could end in personal and financial disaster according to Ian Durrell of Only insurance, "Smokers who declare they have given up but continue to smoke no matter how infrequently will be paying for nothing should they die from a smoking related condition; The policy simply won’t pay out and their beneficiaries will be the losers."
"Smokers will pay twice the price for critical illness cover than a non-smoker – it’s a no win situation for the smoker, their nicotine addiction is tightening both their heart and purse strings," concluded Mr. Durrell
Also things like having your life insurance policy pay off your mortgage and other debts when the breadwinner of the family dies could be snatched away if you lie on your application forms.
Many insurance companies may be writing to their customers to ask for proof of their health status and those found to be lying could be made to pay higher premiums or have their policies cancelled all together. Currently insurers reject about 25% of claims because of misinformation.
Getting life insurance is there to protect and give peace of mind, so when taking one it’s a good idea to do some research and seek advice first. And to avoid being disappointed when it comes to making a claim, read the terms and conditions carefully and clearly and answer the questions truthfully. Read More..
Healthy Lifestyle Equals Cheaper Premium
According to recent research conducted by Laing & Buisson, the number of people who are opting to take out private medical insurance has started to rise again, following a decline in recent years as a result of costly health insurance premiums.
The reason for this sudden change comes as insurance companies, in an attempt to maintain their customer base, are looking for ways to keep the costs of premiums down. An incentive that has been thought up is to link private medical insurance premiums to the fitness of a policyholder. Essentially, the more healthy ones’ lifestyle the more likely it is that you will incur less claims in the long term.
Insurance providers such as PruHealth, reward their policyholders for staying fit with their Vitality Plan, which is available at highstreet chemist Boots. If they attend the gym on a regular basis, do not smoke and undergo frequent medical check-ups with their local GP, they can be entitled to discounts of around 75% on their premiums, as well as guaranteed no-claims bonuses of at least 25%. A host of insurers, including Standard Life Healthcare, offer no-claims discounts, which can also be transferred from an insurer should the customer require it. For instance, if the customer makes no claims throughout a period of two years with one insurer and then decides to change to another insurer, the discount can, in some cases, be immediately effected with the new insurance policy.
Typically, insurance providers will apply an excess on most PMI policies so as to reduce the premiums, which will cover the policyholder for the first part of their treatment after which they will be responsible for paying the rest. However, some insurers are introducing the option of taking out a considerably larger excess, which will be at a substantially discounted rate. The insurer, Permanent Health, for example, offers policyholders an excess of up to £2,500 in return for a 50% discount on premiums, meaning that while the policyholder may not be covered for the treatment of minor conditions, they will be able to obtain private healthcare when undergoing more extensive and costly procedures. According to a spokeswoman for Permanent Health, many people, particularly the elderly who typically have more cash saved than younger policyholders, were prepared to spend money on a higher excess, in return for lower monthly premiums.
There are ways for people to generally cut back on their premiums, sometimes by switching to a smaller insurance company whose rates will not undergo the same fluctuations as larger insurers due to the simple fact that they have to deal with far less claims. Furthermore, if you purchase cover via a specialist broker, you are more likely to be privy to exclusive deals in addition to being represented by an insurer who is an expert in his field and therefore if you have a claim that is being contested, the specialist broker will help you to fight it. Be wary of budget policies unless you are informed of every detail in the small print, for example exclusions to policy and always remember to shop around when looking for a new insurance provider. Read More..
The reason for this sudden change comes as insurance companies, in an attempt to maintain their customer base, are looking for ways to keep the costs of premiums down. An incentive that has been thought up is to link private medical insurance premiums to the fitness of a policyholder. Essentially, the more healthy ones’ lifestyle the more likely it is that you will incur less claims in the long term.
Insurance providers such as PruHealth, reward their policyholders for staying fit with their Vitality Plan, which is available at highstreet chemist Boots. If they attend the gym on a regular basis, do not smoke and undergo frequent medical check-ups with their local GP, they can be entitled to discounts of around 75% on their premiums, as well as guaranteed no-claims bonuses of at least 25%. A host of insurers, including Standard Life Healthcare, offer no-claims discounts, which can also be transferred from an insurer should the customer require it. For instance, if the customer makes no claims throughout a period of two years with one insurer and then decides to change to another insurer, the discount can, in some cases, be immediately effected with the new insurance policy.
Typically, insurance providers will apply an excess on most PMI policies so as to reduce the premiums, which will cover the policyholder for the first part of their treatment after which they will be responsible for paying the rest. However, some insurers are introducing the option of taking out a considerably larger excess, which will be at a substantially discounted rate. The insurer, Permanent Health, for example, offers policyholders an excess of up to £2,500 in return for a 50% discount on premiums, meaning that while the policyholder may not be covered for the treatment of minor conditions, they will be able to obtain private healthcare when undergoing more extensive and costly procedures. According to a spokeswoman for Permanent Health, many people, particularly the elderly who typically have more cash saved than younger policyholders, were prepared to spend money on a higher excess, in return for lower monthly premiums.
There are ways for people to generally cut back on their premiums, sometimes by switching to a smaller insurance company whose rates will not undergo the same fluctuations as larger insurers due to the simple fact that they have to deal with far less claims. Furthermore, if you purchase cover via a specialist broker, you are more likely to be privy to exclusive deals in addition to being represented by an insurer who is an expert in his field and therefore if you have a claim that is being contested, the specialist broker will help you to fight it. Be wary of budget policies unless you are informed of every detail in the small print, for example exclusions to policy and always remember to shop around when looking for a new insurance provider. Read More..
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