Talking about life insurance sounds as much fun as eating rotten fish

To some people, Talking about life insurance sounds as much fun as eating rotten fish. And while ignoring them can add to family tragedy by becoming a nightmare, more and more people are doing it.

A recent survey by the nonprofit Life Foundation showed that a quarter of Americans would consider canceling their life insurance policies to give money away in these tough financial times.

Before making such drastic decisions, consider these seven common mistakes - and you may decide to buy more coverage, not less.

The seven big life insurance mistakes


1. Think you have had enough. In a recent survey of middle-income Americans, all states found that while respondents generally agreed that everyone should have some level of life insurance, most believed it should primarily cover funeral bills and expenses. Only 20% said life insurance life should replace the income of the deceased, to continue to support the child and other dependent family members The idea of ​​having a policy that pays seven to 10 times a person's salary - an amount that can easily make sense for someone who having young children - sounds like an attempt to sell a large, unnecessary policy to a respondent.

In fact, a third of adults have no life insurance at all, says Steven Weisbart, chief economist at the Insurance Information Institute. Of the rest of the people, many of them only have insurance that comes from their workplace policies, which is usually not enough for people who want to support dependents after their death.

2. Don't talk about it at all. "This is a topic that nobody wants to think about," said Matt Easley, vice president of Allstate Financial, partly because thinking about death was so uncomfortable.

Although life insurance is not compulsory like auto insurance, Weisbart says it is "morally obligatory," because "if you have dependents, you owe them to protect them from losing your ability to earn an income."

3. Rely on old rules. Traditionally, people have relied on the standard "sevenfold income" rule to calculate how much insurance they need. But that's not a useful measure, says Easley, because people's situations are so different. A single, independent person will probably need significantly less insurance than a person with five young children, for example. Instead, Easley recommends sitting down and thinking about "the things you want to protect." How much does it cost to support your children the way you want? To pay for their college or pay off the mortgage?

Michael Bonevento, senior financial adviser at Ameriprise Financial, also recommends making a "value of human life" calculation, which looks at the future economic costs of a breadwinner who dies. For example, if he earns $ 100,000 annually and has 20 years left until retirement, then the value is $ 2 million. (The tax is then deducted along with the amount the breadwinner consumes himself, and other benefits such as health insurance are added up. Finally, the present value of the figure is calculated.)

The value of human life is usually higher than what people think after considering what they would pay if they died. Bonevento recommends buying insurance for somewhere in between these two amounts. You can get started with a quick estimate using the MSN Money life insurance calculator. Or, if you know what you need, compare quotes directly.

4. Ignore your nonmonetary income. Many people, when adding up their income that needs to be replaced, forget about the benefits that come with their work, such as health insurance and retirement account payments. "I have a job, and my employer pays for my health insurance, but if I die, and the subsidy goes away, my wife will have to get health insurance without it, so it will be more expensive," Weisbart said. Life insurers, then, must pay enough money to cover a new health insurance bill.

5. Forgetting the long term. People often forget how long life insurance payments will take to support their children and other dependents after they die, says Easley. "If you have a child who is 10 years old, in 15 years, they will go out on their own," he explained, so in that case, the protection period that would provide support for 15 years is likely the most sensible.

6. Thinking that it is too expensive. Many people mistakenly think life insurance is prohibitively expensive, Bonevento says, but it's possible to find a policy that fits both your needs and your budget. Term insurance, which provides temporary insurance over a specific time period, is more affordable than permanent insurance, which lasts a lifetime. In addition to managing financial risk, people sometimes also use permanent insurance as an investment tool.

But those on a tight budget tend to choose term insurance. One of Bonevento's clients, a married man with one child and another on the way, decided he needed to take out $ 1.5 million worth of term life insurance. His monthly payment, pending an assessment of his health, will cost between $ 102 and $ 219 per month.

7. Forgot to update the policy. Even though a major life event, such as a child birth, marriage or divorce, usually means it's time to renew your insurance policy, many people forget to do it. Even the 9/11 attacks, which affected many Bonevento's clients, were not the motivator he thought they would be. Then, he said, "when tragedy strikes, they face financial problems above all else."

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Sandy insurance claims: Claims from Sandy in the U.S. Northeast could boost Florida insurance rates

Sandy insurance claims: Claims from Sandy in the U.S. Northeast could boost Florida insurance rates - A surge of insurance claims from Superstorm Sandy in the Northeast could boost rates in Florida, some insurance professionals fear.

Initial estimates put insurance exposure in the Northeast at more than $10 billion. Some of those payouts are expected from reinsurance companies, the same ones that provide insurance to insurance companies in Florida to help them cover their risk. If reinsurance rates spike, that in turn could push up property insurance rates in Florida.

Reinsurance makes up as much as 40 percent of premiums for some small insurers in Florida that have limited capital to cover potential losses from a disaster, according to the Insurance Information Institute, an industry group.

Florida professionals differ over how much claims from Sandy might affect the reinsurance market.

Some agents who sell insurance expect fallout.

"I'm sure there will be a trickle-down effect on reinsurance" in Florida, said Ron Kornbluh, president of Brokers Insurance Group of Margate.

That could tick up property insurance rates in Florida, which many analysts had expected to flatten out next year, said Dirk DeJong, president of Frank H. Furman Inc. insurance agency in Pompano Beach. Rates could rise up to 10 percent on some hard-to-place insurance policies, DeJong said.

But other industry leaders predict little or no effect for reinsurance and Florida rates.

Lynne McChristian, the Florida representative for the Insurance Information Institute, said reinsurers entered this hurricane season with historically high levels of capital and likely can cover losses without rate hikes. Plus, major damage in the Northeast stems from flooding, handled by the government's National Flood Insurance Program and not by private insurers or reinsurers, she said.

Florida's Insurance Consumer Advocate hopes the Northeast flood claims can bring attention to the burden on Floridians. The state now buys about 30 percent of all flood insurance coverage nationwide, because some federal home loan programs require the coverage in a state seen as vulnerable to hurricanes. Flood coverage is not required in many other states.

"Perhaps this will open a discussion about what's fair in flood coverage. It might resonate now that it's not unique to Florida to be exposed to catastrophic risk," advocate Robin Westcott said. "And if we can get parity and more money coming into the flood insurance market, you can assume Florida premiums later will come down."

Sandy's impact depends too on the way insurance companies manage claims. Too often, companies end up paying big bucks on lawyers and adjusters to trim payouts on claims that they consider inflated, said Charles Stephens, an insurance adjuster based in Dania Beach. Poor management — instead of fair payouts on claims — leads reinsurers to raise premiums on those sloppier firms, he said.

"There must be transparency in claims, and there's no need for litigation in most cases," Stephens said. He suggests online auction bidding by contractors on repair work to help cut costs on claims.

Insurance experts say it will take weeks more to tally Sandy's claims, losses for companies and the effect on reinsurance. Until then, the debate on local consequences is sure to persist..

Said McChristian: "It's like trying to predict the stock market." ( wptv.com )

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Avoid superstorm Sandy insurance and repair scams

Avoid superstorm Sandy insurance and repair scams - After the storm comes the rebuilding, and the scammers capitalizing on fear and need. With $20 billion estimated in property damage, demand for clean-up and repair is high, putting anxious homeowners at risk for hard-sell fly-by-night contractors. They promise a big fix, push for your cash up front, then drive off with repairs poorly completed, or not at all. Now you've got a hole in your roof, and your wallet.

Jeanne Salvatore of the non-profit Insurance Information Institute and CNBC's Sharon Epperson spoke with TODAY's Savannah Guthrie this morning about how to protect yourself from what could be a secondary disaster - giving money too quickly to a con-artist trying to catch a ride off superstorm.

The number one red flag for any kind of scammer, but especially after a natural disaster, is that they come to you. Without a reputation or referrals, a grifter has to go cold-calling to drum up business. Squint your eyes carefully at anyone who comes knocking at your door, take their information, and don't get pressed into making an on-the-spot decision.

1. Don't pay in full up front

Never pay for more than 1/3 of the job before it's done. Otherwise there goes your security against work not completed or not done up to code.

2. Don't get rushed

Someone who promises to start work right away or bump you to the head of the line if you pay in full, and then threatens that you won't be able to get anyone else to fix it if they walk away, is trying to push your buttons.

3. Call your insurance agent

Your insurance agent "is a disaster clearing house," says Salvatore. Call them first. This is what you've been paying all those premiums all this time for! They can make recommendations from a list of pre-vetted contractors.

On top of being able to give you a referral, you need to be talking to them because your first priority should be reporting your claim to your insurance company, documenting all the damage, and taking photos and/or videos of everything.

4. Check to make sure they're legit

Ask to see their contractor's license and driver's license. Ask for references, and call them. Check out their BBB profile. Provided you have internet access, scanning their customer reviews on free sites like Yelp and pay sites like Angie's List can fill out the picture and give you a quick bead on their reputation.

In addition, "Make sure that the contractor is the one who will be paying the subcontractors -- the plumber, the electrician," says CNBC's Epperson. "So that you don't get an unanticipated bill."

5. Get quotes

Just because it's a catastrophe doesn't mean you shouldn't shop around. Take their business card and tell them you'll get back to them, after you've gotten quotes from at least two other providers.

Downed phone, electrical, and internet access may make it harder to comparison shop or reach the people you need to. It's worth taking the extra time. You don't want to rush from a natural disaster into a financial one.

6. Alert investigators

If you think you've been solicited or ripped off by a scammer, call the police. You can also file a report with the National Insurance Crime Bureau at 1-800-TEL-NICB (1-800-835-6422).

7. Trust your gut

Says Salvatore, "If something doesn't feel right, it probably isn't." ( today.com )

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After Sandy: Insurance And Downed Trees

After Sandy: Insurance And Downed Trees - Sandy has left many of us dealing with water and tree damage to our homes, yards or cars. Here is a breakdown of what is (and what isn’t) covered by your insurance plan.

Flooding in your home or basement? Your homeowners insurance does NOT cover flood damage due to an accumulation of water on the ground that seeps into your basement. However, it WILL cover hard rain that comes down and seeps into window and damages the wall or carpet.

The easy way to remember the difference: If water comes from the ground up, you must have a separate flood insurance policy. If it comes from the sky (or top down), homeowners insurance will cover the damage. If you didn’t have flood insurance before Sandy, you won’t get flood help for this storm. There is a 30-day waiting period after you apply for flood coverage.

If you have heard of a hurricane deductible, it’s something you’ll likely find it in your homeowners policy. It was created after increased coastal development and greater hurricane risks, and forces the policyholder to share more of the risk with the insurer.

Unlike a standard homeowner's insurance policy deductible (usually $500 or $1,000), hurricane deductibles are calculated as a percentage of the insured value of a house. This value typically varies from one to five percent, so you could be paying thousands of dollars before your hurricane coverage kicks in.

When it comes to tree damage, it all depends on where the tree falls. If a tree in your yard falls on your neighbor's house, your neighbor's homeowners insurance will cover the damage. If your neighbor's tree falls on your house, your homeowners insurance will cover the damage. If a tree falls on your car, your comprehensive auto insurance covers the damage. Lastly, if a tree falls on your property (but does not hit or damage anything), you pay out of pocket to have it removed.

Here’s our advice for filing claim: For starters, contact your insurance agent right away. Make a list of what is damaged.

Then, document the damage by taking pictures or video if that’s safe to do. Photos may speed up the claims process. If possible, make simple, cheap, temporary repairs and remember to keep your receipts so your insurance company can reimburse you.

If you have any additional questions or want to file a complaint against your insurance company, contact your state's Department of Insurance. ( nbcwashington.com )

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How to protect your Hurricane Sandy insurance claims

How to protect your Hurricane Sandy insurance claims - For some homeowners, the aftermath of Hurricane Sandy could bring a whole second round of troubles. After the storm passes, they may have to negotiate with their insurers to get the cash they need to repair wind and water damage.

Homeowners' insurance companies have gotten tougher as weather has become more cataclysmic. They've raised rates, carved out some coverage and tucked in new wind and hurricane exclusions and deductibles.

 

Visitors hold umbrellas while taking photos during rainfall at Times Square in New York October 29, 2012.

Homeowners need to play the game right if they want to get claims paid quickly and thoroughly. You can start early - here's what to do now and later.

FIND YOUR POLICY

If you've got your flashlights loaded with fresh batteries and your water bottles in a row, dig out your homeowner's insurance policy and see what kind of coverage you actually have. You may be unpleasantly surprised: After Hurricane Irene hit in August 2011, more insurers tucked hefty wind and hurricane deductibles into their policies. They run 2 percent to 5 percent of the insured value of your home, says Charles Hahn, an insurance agent in Little Falls, New Jersey, where "we're known for flooding a lot."

Keep in mind that many insurers have "anti-concurrent causation clauses" in policies now that say if you have damage from multiple causes, say wind and flooding, where wind is covered but flooding is not - they won't cover anything at all.

A new flood insurance law passed this summer requires insurers to use federal data to allocate the costs in cases where a home is totally destroyed by flooding and wind damage.

Homeowners who live near the shoreline do tend to have federal flood insurance; their mortgage lenders require it. But Hahn says he saw an uptick in inland purchasers after Irene. Nationally, some 5.65 million federal flood insurance policies were in place at the end of 2011 - that represents a 17 percent increase over the previous year, according to data from the Insurance Information Institute.

That's good, because so much rain fell during Irene that basements flooded in neighborhoods far away from rivers and streams. The same - or worse - is expected this time around.

Even if you don't have flood insurance, you might have extra protection from water damage if your insurance policy covers failure of your sump pump, says Richard Cohen, a property loss consultant at Clarke & Cohen in Bala-Cynwyd, Pennsylvania. This kind of coverage is generally included in some high-end homeowners' policies, although other policies may offer limited coverage.

One silver lining: If the water rises so high in your neighborhood it floods your car, you're probably covered by your comprehensive auto policy, reports the Insurance Information Institute.

TAKE PICS - NOW AND LATER

While you are waiting for the storm to hit in earnest, take your camera phone around your house and inventory all of your belongings, says Bob Hunter, director of insurance for the Consumer Federation of America.

Even better: video. "You can actually see everything before and after," Cohen says.

If your home is damaged, document it carefully before you move anything and get images as soon as possible. "When things dry, they can look a lot different," Cohen says.

Leave the damage as it is until an insurance adjuster arrives on the scene, if possible. However, Sandy is expected to hit a wide swath of the Northeast, so an adjuster may not make it to your home for a few weeks. "It all depends upon how significant the power outages are," notes Cohen. Keep all damaged items until the adjuster has had a chance to look at them.

EMPTY YOUR BASEMENT AND FRIDGE

Even if you have flood coverage, you may be disappointed to learn just how little it will cover. You're protected for structural damage and the cost of replacing basement utilities like electrical panels and heating units, Hahn says. But all the precious items you have stored downstairs? Not so much. Might as well haul them upstairs now if you're worried about a wet basement.

Homeowner Richard Dukas, a public relations executive from Teaneck, New Jersey, could see the floods from Irene coming and saved all of his possessions from his basement. He had flood coverage. He still ended up getting only $10,000 back from the insurance on $15,000 worth of damage.

Most homeowners' policies do cover the cost of food that spoils when the power goes out. But if that's your only loss, it will be subject to your policy's deductible of $250, $500 or more. That means that unless you have a large freezer full of meat or priceless truffles, you may not find it worth filing for.

FILE CLAIMS PROMPTLY

You may get faster attention if you submit a claim quickly. "Homeowners who get in line first have a better chance of recovery than those who make claims quite a bit later," observes Linda Kornfeld, a Los Angeles attorney with Jenner & Block who represents consumers and business owners in cases against insurance companies.

Federal flood insurance typically carries a 60-day deadline, though it often gets extended after extreme events. Miss that deadline and your flood insurance will be worthless.

CHOOSE YOUR WORDS CAREFULLY

Call your insurer as soon as you see damage and let them know if you need to spend money to make immediate repairs, says Kornfeld. But don't characterize the cause of the damage - the company could dredge up your remarks and use them to deny your claim. So, for example, say: "My window is broken, and there is water on my dining room floor and I am going to buy plywood to cover the window." Don't say: "Wind broke my window and my dining room flooded."

DRY OUT

Hire an emergency services company to dry everything out and dehumidify the area. Some big national chains include Servpro and Belfor. They'll bring in equipment, such as special fans, to get things dry again. Getting your stuff dry is really important because mold can be an even a bigger headache than flooding. "Insurance policies have limitations for mold," Cohen warns.

Check with your insurer before laying out large amounts of money for repairs, though. It may refuse to pay. They typically will pay small amounts for immediate fixes, such as a tarp to cover that gaping hole in the roof. Of course, keep all of your receipts.

GET A ROOM, BUT KEEP TABS

If you move into a hotel because your house is without power, that's on you. However, most insurers do cover hotel stays if your house really is uninhabitable, thanks to a gaping hole in the roof or a tree in your bedroom, for example. You may also be covered for meals and hotel stays if local or state authorities had a mandatory evacuation of your neighborhood.

If you need to leave your house because it is flooded, don't expect the same coverage. Federal flood insurance doesn't cover hotel bills and the like, according to the Insurance Information Institute.

KNOW THE RULES OF YOUR STATE

What the storm is called when it hits your house will affect your coverage, depending on your state of residence. If you are in New Jersey, for example, and the storm hits as a hurricane on the coast, but downgrades to a tropical storm by the time it hits your house, the higher hurricane deductible may still apply to your claim. "It was applied state-wide in Irene," Hunter says.

For some homeowners, that could be the final battering delivered long after the winds have died down. (Reuters)

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Casualty Insurance Supplements Property Coverage

Casualty Insurance Supplements Property Coverage - Casualty insurance is typically combined with property insurance and often referred to as “property and casualty” insurance. However, there is a difference in the type of coverage. This is especially true after the events on September 11, 2001 and the hurricanes in 2004-2005.

Property insurance insures the location of the business while casualty insurance insures the business.

For example, if your business is on the seventh floor of a building and a natural disaster, such as a flood, occurs that wipes out the first floor, but causes no damage to the seventh floor, then any loss would not be covered by your property insurance because there is no direct loss to the location of the business. However, if you have business continuation or business interruption insurance you may have coverage for the indirect loss to your business.

Many of these products are developing in today’s world. Insurers are making it necessary to carry additional casualty insurance to cover certain types of losses. These types of coverage include:

• Terrorism Coverage –

  Acts of terrorism or war are not covered by traditional insurance policies – or, so claims the insurers. The attacks on September 11, 2001, resulted in claims exceeding $30 billion. Insurers now specifically exclude terrorism and require the purchase of a terrorism policy.

• Flood Insurance –

  Floods are generally not covered by typical property insurance policies and a separate flood insurance policy is necessary to protect against that risk.

• Political Risk or Government Liability –

  If you do business overseas or have substantial government contracts, then you may want to look into this type of coverage. It protects against a sudden loss due to a sudden political change in a country or withdrawal of a contract without recourse.

• Other Types –

  There are other types of casualty insurance that seem to be developed in response to the latest news: Cyber-Liability, Identity Theft, Cyber-Fraud, Employee Theft, etcetera.

Some of these casualty policies may be critical for the safe operation of your business. More often though, standard casualty coverage offered with a business owners’ policy will be enough casualty coverage and these types of policies are ‘flavors of the month.’

Casualty insurance also includes certain types of bonds or other limited insurance that have been long standing products and may be very necessary to your business.

• Employee Theft and Dishonesty –

  This coverage protects your business from loss or damage caused by employee theft. If your employees have access to company funds or handle cash transactions you may want to consider this coverage for the employees.

• Surety Bonds –

  This form of casualty coverage referred to as a bond insures someone you will contract with that you will complete the contract. If you are in construction or plan on bidding for government jobs, then you will be required to obtain a surety bond to insure your work.

  Casualty insurance is a different type of insurance than property insurance. We will review different forms of casualty insurance and how these can work within your business plan. ( about.com )
  

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Even With Insurance, Unemployed Have Worse Health Outcomes

Even With Insurance, Unemployed Have Worse Health Outcomes --- People without jobs who have health insurance are less likely to get medical care or prescription drugs than people with jobs who have such coverage, U.S. health officials reported Tuesday.

During the depths of the recent recession, unemployment reached 9.6 percent, a level not seen since 1983. Because health insurance affects access to care and most people rely on getting insured through their employer, researchers wanted to look at the effect of unemployment and lower income on access to health care, according to the U.S. Centers for Disease Control and Prevention.

"Insurance without a job is a difficult position to be in," said report author Anne Driscoll, a senior fellow at the CDC's National Center for Health Statistics.

In the study, Driscoll and her colleague, Amy Bernstein, wanted to find out whether having private, public or no insurance mattered if you were employed or unemployed.

They found that private insurance, which experts think is the most comprehensive, was no guarantee of better health care.

"If you had private insurance but weren't employed, you had worse mental health, worse physical health and were less likely to get prescriptions you needed or care that you needed than if you had a job," Driscoll said.

Cost of care appears to be the overriding factor why having private insurance and no job was associated with lack of access to care, she said.

"Because you don't have a job, deductibles and co-payments are the reasons you can't use your insurance to the fullest. You're better having insurance than no insurance, but it's not a panacea. A job and insurance is the most advantageous category to be in, not just being insured," Driscoll said.

For their study, the authors used data from the 2009 and 2010 U.S. National Health Interview Survey and compared the health insurance status, health and access to health care of employed and unemployed adults aged 18 to 64.

Highlights of the report include:

• 48 percent of unemployed adults had health insurance, compared with 81 percent of employed adults.
• More of the unemployed had public insurance than those employed.
• The unemployed had worse physical and mental health than the employed, whether they had insurance or not.
• The insured unemployed were less likely to get medical care because of cost than the insured employed.
• The insured unemployed were less likely to get prescription drugs because of cost than the insured employed.
• The uninsured were less likely to get medical care and prescription drugs because of cost than people with public or private insurance, regardless of whether they had jobs or not.
• The unemployed were more likely to be black, have less than a high school education and have an income below the poverty level.

Dr. Steffie Woolhandler, a visiting professor of medicine at Harvard Medical School and co-founder of Physicians for a National Health Program, doesn't hold out hope that health care reform will make things better for the unemployed.

"During the recession, the use of health care plummeted. We had a 19.5 percent drop in primary care in the United States," she said.

This study shows that even if people lost their jobs and held onto their insurance, they couldn't afford to use health care, Woolhandler said.

"That's a uniquely American issue because we have such high co-payments, deductibles and uncovered services that people can't afford to use care," she said.

Woolhandler noted that health care reform will help some people because the number of uninsured is expected to be cut by over half.

"While there will still be 23 million uninsured after health reform is fully implemented, it's a whole lot less than it would be otherwise," she said.

But, having health insurance will not mean that you can afford care if you lose your job, Woolhandler added.

"It will be a little worse after health reform, because the new policies that will be offered will be quite a bit skimpier than an employer policy is now. And there will be high co-pays, high deductibles. So even if you hang on to your insurance you likely won't be able to afford care," she said. ( HealthDay News )

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12 ways to lower your health insurance premiums

12 ways to lower your health insurance premiums - You can shop around for health insurance quotes just as you would for better car insurance rates or low cost life insurance. Fortunately, lower premiums don't mean shoddy health insurance plans.

"There are a variety of affordable health insurance options available today that also offer quality coverage," says Ellen Laden, a spokesperson for Golden Rule Insurance Co., a subsidiary of UnitedHealth Group. "Consumers believe that if they get a lower-cost plan they will have to worry about getting quality coverage and that is absolutely not the case. Make sure you find coverage that meets your family's unique health care and budget needs. If the plan doesn't meet both of these needs, it's not going to save you money and it may cost you more in the long run."

Here are ways to get the most for your health insurance dollar.

1. Stay healthy

Yes, this is easier said than done, but staying healthy goes a long way toward controlling health insurance costs. If you're buying an individual health plan, you'll be charged based on your health, including weight, cholesterol, blood pressure and other pre-existing health conditions.

The uninsured provide a good snapshot of what happens when routine medical care is overlooked or delayed. An October 2007 report by the National Coalition on Health Care pointed out the uninsured receive less preventive care and thus aren’t diagnosed until they are more advanced disease stages. Once diagnosed, they tend to receive less care and suffer higher mortality rates than insured individuals.

Due to health care reform, most insurance plans cover 100 percent of preventive care for routine checkups, immunizations and diagnostic tests.


2. Stop smoking

You've heard all the reasons why you should quit smoking, but it's also bad for your health insurance premium.

"If you use tobacco, quit — smokeless or any other type," says Laden. "This can result in savings in your health insurance after a period of time, generally a year, depending on the insurance company. The reduction is significant, so it's definitely something to consider."

Health insurers may pay for smoking-cessation programs. At renewal time, having quit smoking can amount to substantial savings.


3. Increase your deductible

Whether you are enrolled in a group or individual plan, the more you pay out of pocket, the less you will have to pay in premiums. You may want to think of your insurance as a safety net for major health disasters rather than a payer of all routine medical costs.

According to the National Association of Insurance Commissioners, the lower your deductible, the more likely you will make a claim with the health insurance company. Health insurance companies compensate for this by increasing the premium on low-deductible plans. In order to get more bang for your buck, set your deductible at $1,000 or higher.

If you like this strategy, consider a Consumer-Driven Health Plan (CDHP) or a High-Deductible Health Plan (HDHP). These plans have high deductibles.

Employers could also offer a HDHP option at open enrollment time.


4. Change your co-insurance ratio

Your co-insurance ratio is how much you will pay after you have met your deductible.

A common ratio is 80/20. This means that after you pay your deductible toward health care expenses, your insurer pays 80 percent of the bill and you pay 20 percent. Changing this ratio so you pay more will mean a lower health insurance premium. Just as with raising your deductible, you have to weigh the costs versus risks.


5. Pair a high-deductible health plan with an HSA (Health Savings Account)

Often high-deductible plans are paired with a health savings account. Pre-tax contributions can be rolled into your plan each year. Employers and their employees may contribute to this account. Then you pay health care expenses from your Health Savings Account until it’s exhausted.

"HSA plans can help you save on both your health care needs and your taxes," says Laden. "Our customers typically save significantly on HSA-plan premiums when you compare them to more traditional plans."

Compare your anticipated health expenses with potential savings. The young and healthy could fare well with an HDHP paired with an HSA. HSAcenter.com, a site from Golden Rule, provides a calculator for comparing a traditional health care plan with an HSA to estimate cost savings.


6. Consider a catastrophic l plan

Catastrophic health insurance offers limited insurance coverage with a high deductible, typically $1,000 for an individual and $2,000 for a family. Premiums are low because the insurance is intended for medical emergencies. It does not pay for regular doctor visits but will cover major hospital and medical expenses including hospital stays, X-rays and surgery.


7. No "extreme" anything

Abandon dangerous hobbies and recreational activities such as skydiving, mountain climbing or NASCAR. Anything that poses a significant injury risk will super-charge your insurance premiums.


8. Choose an in-network doctor

If the doctor you like is already in-network and the lab he works with is also in-network, an HMO can be as adequate as a PPO and offer lower premiums.

No matter what plan type you have, "make sure you do business with an insurance company that has a strong national network," advises Laden. "Networks provide substantial savings on health care because they negotiate lower rates that can result in substantial savings on your health care, even before you meet your deductible." She notes that Golden Rule's network discounts often save customers up to 50 percent on health care costs, even before they meet their deductible.


9. Trade up group health insurance plans

If both you and your spouse have group health insurance plans available through work, calculate which one will cover both your needs at the lowest cost. For some people, group rates might not offer the best value.


10. Regularly reassess your health insurance needs

You may be missing out on savings simply because you've stuck with the same plan year after year while your situation has changed.

"You should periodically reassess your insurance needs," suggests Laden. "Things you should think about include: Do you have children that go to the doctor often? Do you take a lot of prescription drugs? Are tax breaks important to you? Are you willing to assume the cost of routine health in exchange for much lower premiums?"

If you’re in the market for a new plan, Laden recommends making sure the companies are reputable. Ask friends, family members and colleagues about their experiences. Check financial strength ratings to make sure the company is financially sound. In addition, many state insurance departments publish consumer complaint rankings of the insurers doing business in their state.


11. Lobby for health insurance savings at work

If you buy a group health plan through work, you may think you're stuck with whatever is offered every year.

But employees, especially those in smaller companies, can rally for better coverage options. There may be numerous "optional" benefits tacked on to your group health plan that are causing your group rate to skyrocket. If you and your co-workers agree that some coverage options are unnecessary (for instance, infertility treatment, mental health treatment and even dental), ask your employer drop them at renewal time.


12. Evaluate the road ahead



For example, if you are planning to start a family, secure maternity coverage now; it will be impossible to buy maternity insurance once you are pregnant. However, this will change due to health care reform. Beginning in 2014, new individual health insurance plans and employer-sponsored plans will not be able to refuse you coverage or charge you higher premiums for being pregnant or having other pre-existing conditions.

And finally, "Never go without health insurance coverage," says Laden. "I can't emphasize this enough. This is never a good idea. In times of economic strife, I understand where it can be tempting, but it you were in an accident, injured or are struck with a major illness, the cost of medical care can wipe you out financially. People rarely go into medical bankruptcy when they have health insurance; they do go into bankruptcy when they are not covered and have to go to the hospital." ( msn.com )

READ MORE - 12 ways to lower your health insurance premiums

Seven costly health insurance mistakes

Seven costly health insurance mistakes - Before you pick a policy, carefully evaluate what you need as well as how much risk you can afford to take. Also, keep your eyes open for potentially nasty surprises.

Poring over the fine print of health insurance plans to choose a policy is nobody's idea of fun, but you're better off spending some painstaking time researching before you buy than nursing a nasty financial headache later.

The "quality" of a health plan often depends on your needs and how much financial risk you can bear.

"One size doesn't fit all," says Martin Rosen, co-founder and executive vice president of Health Advocate, which helps employers and individual clients navigate the health care system. "You really need to assess what you need."

Whether you're choosing among group health plans offered by your employer or shopping for individual health insurance coverage, there are seven scenarios to avoid.

1. Your doctor isn't in the network

You'll pay more to use health care providers who aren't in your health plan's network, so check to see if the doctors and other professionals you want are included.

A plan that tightly restricts you to a local network might be sufficient if you need care only in your area, but it won't benefit a kid away at college or meet all your needs if you spend a lot of time on the road, says Pete Villemain, the president of Employee Benefit Services, which manages employer benefits plans.

Make sure any specialists you need are also covered by the plan, Rosen says. Don't assume a specialist is in the network just because your primary care doctor gave you the name.


2. You pay huge insurance premiums to save a few bucks on the co-pay

"The mistake I see individuals make so many times is they focus so much on getting a low co-pay and they fail to look at how much extra premium they pay for it," says Villemain.

He suggests evaluating how you'll use your plan and comparing the costs accordingly. If you go to the doctor only a couple of times a year, is it worth hundreds of dollars extra on the premium just to get a lower co-pay?


3. The drugs you take aren't covered

Some states require individual plans to offer prescription drug coverage, but in other states, many individual health insurance plans don't cover drugs, says benefits consultant Michael Goodheim of Farsighted Strategies in Seattle.

If the plan provides prescription-drug coverage, check to see if your medications are included on its formulary, which lists the preferred drugs for coverage, Goodheim says. Expect to pay more if you take a drug that is not listed.

Rosen suggests checking whether the plan provides discounts if you mail-order prescription drugs in bulk. For instance, you might be able to pay less per month for a 90-day supply through mail order than for three 30-day supplies at the pharmacy counter.


4. You're overinsured

In addition to comprehensive health plans, many employers offer supplemental insurance policies, such as cancer or critical illness insurance, that pay a lump sum of cash after diagnosis. Such policies can provide valuable protection, but they might be unnecessary if you already have broad coverage under your medical insurance and short-term and long-term disability insurance, Goodheim says.
If you're footing at least a portion of the premium bill, why pay for coverage you don't need?


5. You can't afford your share of the medical bills

Low premiums are an attractive feature of high-deductible health plans, but make sure you're prepared to pay all the out-of-pocket medical expenses, Goodheim says.

Besides the deductible, check the maximum out-of-pocket expenses you pay. After you pay the deductible, many plans pay only a portion, such as 70%, of covered medical expenses. Your 30% share is called co-insurance, which you must fork over until you reach the cap on out-of-pocket expenses.

"Those dollars can really add up," Goodheim says.


6. You're expecting, but your policy doesn't cover maternity care

Most employer-sponsored plans cover maternity and prenatal care, thanks to the federal Pregnancy Discrimination Act of 1978 and the Health Insurance Portability and Accountability Act of 1996, as well as many state health insurance mandates for group coverage. Some states also require individual health insurance plans to include maternity coverage, but in states where there is no such mandate, many individual health plans pay only a small portion of the costs or don't cover maternity at all. Even if the plan includes maternity coverage, read the fine print to know exactly what is covered and whether there's a monetary cap.

Starting in 2014, individual and small-group plans sold through state health insurance exchanges must include pregnancy and newborn care, along with other essential benefits.


7. You don't check your health plan for changes

Scrutinize group health plan offerings from employers each year during open enrollment, Rosen says. Don't assume the plan is still the same. Coverage levels, costs and networks could change from one year to the next, even if the plan is offered by the same insurer.

"If you're not sure about something and it raises a flag in your mind, then check it out," Rosen says. ( msn.com )

READ MORE - Seven costly health insurance mistakes

Seven big life insurance mistakes

Seven big life insurance mistakes - Is your insurance adequate? How do you know? Even in today's hard times, you may need more, not less.

For most people, talking about life insurance sounds almost as fun as eating rotten fish. And while ignoring it can compound a family tragedy by turning it into a financial nightmare, more and more people are doing just that. A recent survey by the nonprofit Life Foundation indicated that one-fourth of Americans would consider canceling their life insurance policies in order to save money in these difficult financial times.

Before making that kind of drastic decision, consider these seven common insurance mistakes -- and you might decide to buy more coverage, not less.

1. Thinking you have enough.

In a recent survey of middle-income Americans, Allstate found that while respondents generally agreed that everyone should have some level of life insurance, most believed that it should primarily cover bills and funeral expenses. Only 20% said life insurance should replace the income of the person who died, in order to continue to support any children and other dependent family members. The idea of having a policy that paid out seven to 10 times one's salary -- an amount that could easily make sense for someone with young children -- sounded like an attempt to sell a needlessly large policy to the respondents.

In fact, a third of adults have no life insurance at all, says Steven Weisbart, the chief economist for the Insurance Information Institute. Of the remaining people, many of them have only the insurance that comes from their workplace policies, which is usually not enough for people who want to support dependents after their death.

2. Not talking about it at all.

"It's a topic that nobody really wants to think about," says Matt Easley, a vice president for Allstate Financial, partly because thinking about death is so uncomfortable.

Though life insurance isn't required the way auto insurance is, Weisbart says it is "morally required," because "if you have dependents, you owe it to them to protect them from the loss of your capacity to earn an income."

3. Relying on old rules of thumb.

Traditionally, people relied on a standard "seven times income" rule to calculate how much insurance they needed. But that's not a useful measure, Easley says, because people's situations are so different. A single person with no dependents will probably need much less insurance than someone with five young children, for example. Instead, Easley recommends sitting down and thinking about "the things you want to protect." How much would it cost to support your children in the way you want? To pay for their college or pay off the mortgage?

Michael Bonevento, a senior financial adviser at Ameriprise Financial, also recommends making a "human life value" calculation, which looks at the economic loss that would come from a breadwinner passing away. For example, if he earns $100,000 per year and has 20 years left until retirement, then the value is $2 million. (Taxes then get subtracted out along with the amount the breadwinner consumes himself, and other benefits such as health insurance are added. Finally, the present value of that number is calculated.)

The human life value is usually a higher number than what people come up with after considering what they'd like to be able to pay for if they were to die. Bonevento recommends purchasing insurance for somewhere between those two amounts. You can start with a quick estimate using MSN Money's life insurance calculator. Or, if you know what you need, compare quotes directly.

4. Ignoring your nonmonetary income.

Many people, when adding up how much of their income they would need to replace, forget about the benefits that come with their jobs, such as health insurance and retirement account payments. "I have a job, and my employer pays my health insurance costs, but if I died, and that subsidy disappears, my wife would have to get health insurance without it, so it would cost more," Weisbart says. Life insurance, then, should pay enough money to cover the new health insurance bill.

5. Forgetting the long term.

People often lose track of how long the life insurance payout should support their children and other dependents after they die, Easley says. "If you have a child who's 10, in 15 years, they'll be out on their own," he explains, so in that case, term coverage that will provide support for those 15 years likely makes the most sense.

6. Thinking that it's too expensive.

Many people mistakenly think life insurance is prohibitively expensive, Bonevento says, but it's possible to find a policy that fits both your needs and your budget. Term insurance, which provides temporary insurance over a specific time period, is more affordable than permanent insurance, which lasts a lifetime. In addition to managing financial risk, people sometimes also use permanent insurance as an investment tool.

But those on a tight budget tend to choose term insurance. One of Bonevento's clients, a married man with one child and another on the way, decided he needed to take out $1.5 million worth of term life insurance. His monthly payment, pending an assessment of his health, will cost between $102 and $219 per month.

7. Forgetting to update a policy.

Though major life events, such as the birth of a child, marriage or divorce, usually mean it's time to update your insurance policy, many people forget to do so. Even the Sept. 11 attacks, which affected many of Bonevento's clients, did not serve as the motivator he thought it would. Then, he says, "when tragedy strikes, they face financial problems on top of everything else." ( msn.com )

READ MORE - Seven big life insurance mistakes

Get the most from insurance claims

Get the most from insurance claims - If you understand what your homeowners policy covers and how to properly document damage from a disaster, you're more likely to get what you're owed.

Homeowners are tallying up the damage inflicted by a brutal winter, and insurance claims are sure to mount with each discovery of a damaged roof or burst pipe.

The challenge for many is knowing whether they are getting the full compensation their policies should provide.

"We expect insurance companies to stand behind us when disaster strikes, but far too often we see insurance carriers deny, delay and underpay legitimate claims," says Phillip Sanov, a Houston attorney and the head of the Lanier Law Firm Bad Faith Insurance Practice Group.
Insurance companies, increasingly focused on their bottom lines and appeasing shareholders, will try to cut corners when it comes to claims, Sanov says.

"It's not necessarily the individual (claims adjuster) who comes out and has his feet on the ground," he says. "He has to answer to two or three levels above him and do what he's instructed to by the corporate office somewhere. It's a trickle-down effect."

Underpaying claims happens as often as it does because many policyholders have little understanding of the nuances of their coverage. There are also emotional considerations. After snow crashes through a roof or gale-force winds shatter windows, many homeowners just want to deal with the emergency at hand, avoid a prolonged battle and cut their losses.

"Insurance companies know that nine out of 10 policyholders are just going to give up and say, 'It's not worth it, I don't want to fight anymore,'" Sanov says. "It's only 10% to 20% that will really pursue a claim and get an advocate to fight for what they deserve."

The Florida Legislature's Office of Program Policy Analysis and Government Accountability issued a report last year that looked at the relationship among public adjusters, policyholders and the state-run Citizens Property Insurance program -- an insurer established for those otherwise unable to afford or get coverage -- in the wake of the 2005 hurricane season.

That audit found that policyholders who retained public adjusters for their claims got 747% higher compensation than those working solely with their insurance company. For non-hurricane claims, policyholders got 574% higher compensation.

"The average insured does not know what he is entitled to," says Joseph Zevuloni, the president and CEO of Zevuloni & Associates, a Florida-based public adjusting firm. "They will look at something that is broken and try to figure out what it will cost to fix. However, there are other damages they are not trained to look for or know any better. By the time they find out, the insurance company may say that they waited too long, never reported it, that they don't deserve it or it is not included in their policy."

Six steps homeowners should be prepared to take before and after filing a claim:

Carefully review coverage

Don't wait for an emergency or the need to file a claim before you fully review and understand your existing policy. And, before filing a claim, review your policy in light of the damage or have a professional do so to fully understand what your policy covers and what it doesn't. Coverage should be periodically reviewed to make sure it is adequate and fits your needs.

"Examine your policy ahead of time and know what they are paying for," Zevuloni says. "The average consumer who goes out and buys a policy has no clue what it actually says. Many terms and much of the language are intentionally very ambiguous. The average consumer cannot interpret it accurately without some professional assistance."

Policyholders may be underinsured or face exclusions for things they need.

"Let's say your house was built 30 years ago and it doesn't conform to the same building standards as today," Zevuloni says. "If you apply for some kind of a building permit, they will require you to do certain things to bring it up to code. The policy should provide for that. If it doesn't have that language, you are out of luck."

Take photos and video

The availability and ease of digital cameras allow homeowners to provide the insurer with "before and after" documentation.

"A week before a storm hits (if you know it's coming), go take pictures of your walls and your roof," Sanov says. "The most reasonable thing for a person to do is to take pictures inside their home, of the walls and the ceiling. The carrier will not be able to claim damage was pre-existing or normal wear and tear."

Document the damage

Beyond photographing or making a video to show damage, homeowners can hire their own adjuster, who will act independently of one provided by the insurance company.

Keep track, and have duplicate copies, of all estimates and receipts. Also, prepare a detailed inventory of all damaged possessions, with their approximate age, initial price and estimated cost to replace.

Make temporary repairs

Don't wait for an insurance adjuster to start making temporary repairs. Broken windows and leaking roofs should be fixed right away so the insurance company cannot dismiss some claims as the result of waiting too long to do so. Save all receipts and documentation, as the insurer will likely reimburse most of these expenses.

Don't assume something isn't covered

Just because a claim is initially rejected doesn't mean the policy doesn't say otherwise.

"This happens to us all the time -- an insured will call in and say their claim was denied because mold is not covered and even their agent agrees," Zevuloni says. "But if the mold was caused by a water leak or water damage, it may be covered. If there is causation, the coverage may be limited to $10,000 to $15,000 on most policies, but it is covered."

Gird for battle

"It does become more of a fight," Sanov says. "You hate to talk in those terms, but policyholders are fighting with their insurance company. As claims mount and each adjuster is given a bottom line to preserve, the problems multiply and become greater and greater all the time. It is hard, in the position I'm in, to say anything in defense of them, given the way I've seen policyholders treated."

For those concerned that countering a claim will be costly, Sanov says most attorneys and public adjusters work on a contingency basis. Many states also allow the cost of such expertise to be reimbursed by an insurance company if an initial claim is found to have been inadequate.

Policyholders need not fear their insurer dropping them or raising rates if they challenge a payout. "They will not drop you because of a claim," Zevuloni says. "They will only drop you if you are a risk to them -- if they find out, for example, that you store propane tanks in the house or you have exposed wiring." ( msn.com )

READ MORE - Get the most from insurance claims

Ten things your insurance won't cover

Ten things your insurance won't cover - You're a good grownup. You have health insurance, life insurance, car insurance, and homeowner's insurance. Life can throw anything your way, and you'll be covered! Well, not anything. Each of the insurance plans that you pay premiums for every month have caveats and asterisks and fine print. Here are ten surprising things that you insurance probably doesn't cover.

Stuff in your car

If your car is broken into, your comprehensive coverage will replace the broken window. What it won't replace is anything that got jacked. The property in your car is covered instead by your homeowner's or renter's insurance, if you have it.

Nuclear disaster

If you live near a nuclear power plant and it has a meltdown and you are forced to abandon your house, your homeowner's insurance will not cover it.

Your shrink

Some health insurance policies have mental health coverage, but many do not. Before you get too comfortable on the therapist's couch, double check to see who will be paying for it.

Earthquake

Earthquake coverage must be purchased in addition to homeowner's insurance. Damage from tsunamis spurred by earthquakes is not covered (awesome).

Home healthcare

Some heath insurance plans will pay for home nursing care, but many won't. Check your policy.

Terrorism

Pre 9/11, many homeowner's insurance policies didn't mention terrorism. Post 9/11, most policies exclude acts of terrorism as a legit reason for filing a claim

Mold

If your house is infested with mold, it can mean health problems for your whole family; it might even mean abandoning your house. But it won't be a problem for your insurance company: your policy won't cover mold.

Floods

Earthquake insurance doesn't cover tsunamis, but flood insurance does. Again, flood coverage is an extra add-on that normal homeowner's insurance doesn't cover.

Sewer or sump pump backup

As a homeowner, few things might be worse than to find your house filled with sewage, except maybe that your homeowner's insurance won't cover it.

Reproductive medicine

Whether you want hormone therapy and in vitro to have a baby or a vasectomy so you can't have one, your health insurance likely won't cover it. ( bundle.com )

READ MORE - Ten things your insurance won't cover

The Soul Mate Solution

The Soul Mate Solution - You've already been through the emotional, financial and familial firestorm that comes with divorce. And you are in the process of recovery. In fact you have begun to get out there and have met a few people with potential. Sparks have begun to fly with this one or that, and, truth be told, you are starting to have fun with dating. The siren call of love is there. But the idea of proceeding with a relationship gives you the jitters. Potentially going through all that break-up pain once again? No thank you. So you are caught in a complete push-pull. The question is: how do you proceed without being burnt in the end? You want divorce insurance!

You know that an ounce of you-know-what is worth a pound of cure. Maybe your idea of insurance revolves around meeting a true soul mate. A person who fits, who can offer assurances by their very being that they will belong and stay and grow with you until the end. That sounds like a great solution. But then how do you know that a person is your soul mate?

The idea of a soul mate is thousands of years old. In The Symposium, Plato described the soul mate as the person's "other half" that has been split from him. The quest of life is to find that missing half, that twin flame. The theme has been exploited in movies like "The Butcher's Wife," "The Time Traveler's Wife" and "City of Angels." Other views of soul mates include reincarnation and that the person is someone with whom we have shared other lives. The movie, "What Dreams May Come," beautifully explored the profound connection that may continue after the death of one's Beloved.

So what does science have to say about all this? Psychologists have found that people fall into two groups on the question of what makes for a successful relationship: Group one believes it's based primarily on finding the "right person" (soul mate); while group two believes in the "work at it consistently" approach to lasting love. The soul mate group believes that choosing the right person helps overcome most of the problems that love throws our way. And if it doesn't go so easy, we must have picked the wrong person. Therefore, on to the next partner. The "work at it" group believes that there are no perfect princes or princesses and that we are all works in progress. Therefore, a lasting love relationship is never an easy process and we shouldn't ever expect that.

Having been a psychologist for more than 25 years, and married to one man for the same long stretch, I can tell you that there are no perfect partners out there. Not me. Not my husband. Not any of my many clients, mentees, friends, or family members. Lasting love is a hard-won battle of personal discipline, compromise, dedication and commitment.

But neither is everyone a good match for us. Research shows that scent and other physical traits play roles in sexual attraction or desire. And that those who are of similar educational levels are more compatible. Therefore, while the one perfect person idea can lead to a long road of disappointment, there are certainly better and worse matches for us. If we are with a more compatible person we are more likely to have the experience of being with the One who is a soul mate. And while there is no such thing as divorce insurance, being with a great match will greatly reduce the chances that you will break up the next time around.

Chances are very good that there is more than one person, in fact several Ones who could fit the bill for you. And all of them are less than perfect. But if there are no perfect partners, how can you know whether your current partner can fit the bill as a soul mate? Here are 11 relationship markers from my new book, Sealing the Deal: The Love Mentor's Guide to Lasting Love to help you know to what degree he or she is one of the Ones:

1. When you're with this person you feel like you've come home.
2. You feel like your partnership was meant to be as if kissed by destiny.
3. In your communication with each other there is a rapid "knowing" of what each of you means.
4. You have a shared mission in life, perhaps a cause, a career, or the creation of a family.
5. When you're together the world seems like a better place.
6. Your mood is elevated when you're together. It's not necessarily passion or excitement, although that's there too at times.
7. When you look at your significant other you see a part of yourself that's been missing. Perhaps it's assertiveness or joy of adventure. But it's something that when added to your life, makes you feel more complete.
8. Being together makes you more hopeful about the future you are creating.
9. You can be more authentic and fully yourself around your partner.
10. Being together makes each of you work harder on overcoming bad habits and becoming more loving people.
11. These special qualities of connection are growing over time, not disappearing completely or diminishing.

By considering these 11 markers of being with a soul mate you can make more informed decisions about whom you allow into your heart of hearts. You won't necessarily feel all 11 of these things happening when you're with your partner. That's where the imperfection comes in--either in you or your partner. But if you are experiencing six or more of these markers, chances are you are matched well. Over time you can work towards sharing more of these qualities and creating a relationship that is unbreakable. ( huffingtonpost.com )

READ MORE - The Soul Mate Solution