The Top Ten Insurance Myths You Need to Know!

Myth #1: Hey, You're Paying the Premiums... Insurance Should be Bought and Used for Every Accident and Disaster.

Insurance is designed to protect one from catastrophic disasters. An insurance rule of thumb: If you can pay for the loss or damage without a financial hardship then pay it, otherwise expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn't necessary. Sometimes the risk is worth taking rather than paying a premium. Learn more at Don't Buy Insurance You Don't Need

Myth #2: If I am Alive, I Must Need Life Insurance!

Life insurance is designed to take care of one's dependants after the caregiver's death. If you have no dependants, then you probably don't need life insurance.

This includes children and retired persons... usually they don't have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary.

Myth #3: I'm the Breadwinner in the Home, So Only I Need Life Insurance.

Have you seen the cost of childcare lately? Add that along with housekeeping, food preparation, home accountant, and school transportation. From that list alone one can see how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship.

Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.

Term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Lean more about Term, Universal, and Whole Life at Life Insurance Policy Basics.

Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.

Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Check with your insurance agent to learn more or find additional information at Why didn't my policy pay for damage caused by a flood?

Buying Group insurance online

Buying Group Health Insurance Online

Small businesses are the perfect online insurance customer: wired and Internet-savvy. But only recently have 20 million American small businesses gotten the online attention they deserve, with several new Web sites offering online quotes and applications for small-group health insurance.

Some sites act as brokers, while others put you in touch with a broker in your area. Site features run the gamut, from bare-bones quoting services offering no insurance advice, to sites that bill themselves as "benefit portals," and provide reams of small-business benefits advice.

Making it work for you

At health insurance sites, the small employer can obtain an aggregation of group health quotes. You can select quotes based on deductibles and other plan features before you ever contact a broker.

Buying a health plan online, however, doesn't offer a better deal on premiums because of strict state regulations regarding premium levels. Although consumers can bind car insurance online within minutes, small businesses confront an online-application process that requires the same amount of work as visiting a broker in person. When buying a health plan online, you still must interact with a broker before purchasing the final product.

Obtaining a price quote, however, is fairly straightforward. Your quote is based on basic company and employee information. First, you'll need to fill out your name, the company's address, your line of business — either with a Standard Industry Classification (SIC) code, or with a descriptive keyword — and how many employees will be covered.

Next, you'll enter an employee census: name, gender, and age of each employee. (Some sites ask for specific birth dates, others for ages.) For each employee, you'll need to know whether a spouse or children will be covered under the plan.
The next step lets you outline plan requirements: Do you want maternity coverage? Dental insurance? Deductibles for hospital stays? These add-ons increase the cost, so it's best to know what you want before you apply for a quote. Also know how much of the premium you will pay, and how much will be paid by your employees.

That's it — you've applied for a preliminary rate quote. Now you'll be asked how you want to compare the plans that meet your criteria — by price, deductible, or plan features. What happens next depends on the site you visit, and whether it acts as a broker, or refers you to a broker in your area.

Medical Insurance Tips

Top 10 Ways to Cut Your Medical Bills

With health-care costs on the rise, you may be looking for ways to lower your medical expenses. Here are 10 ideas:

1. Practice prevention
2. Shop around for health insurance
3. Cut the cost of prescription drugs
4. Check your medical bills
5. Join your spouse's health plan
6. Keep track of your medical expenses
7. Negotiate a discount with your health-care provider
8. Contribute to a flexible spending account
9. Take advantage of free health screenings
10. Get to know your health insurance

Practice prevention
As basic as it sounds, one of the most effective ways to lower your medical expenses over time is to maintain a healthy lifestyle. For example, you can:

• Take advantage of wellness programs
• Maintain a healthy weight
• Exercise regularly
• Kick unhealthy habits (e.g. smoking)
• Have regular checkups

Shop around for health insurance
If you don't have employer-sponsored health insurance, you may be looking to obtain coverage on your own. To get good coverage at an affordable price, shop around. Because premiums vary widely, you'll probably save money if you get quotes from several companies. Evaluate each plan's coverage and features, taking into account exclusions, limitations, and the freedom to choose health-care providers, among other things. Also find out how much you'll end up paying out of pocket in the form of co-payments, coinsurance, and deductibles, because even relatively small amounts of money can really add up if you make frequent visits to your doctor.

Cut the cost of prescription drugs
Prescription costs can eat up a large portion of your budget if you take prescription drugs regularly. Fortunately, it's not hard to find ways to save money. For example, try ordering your prescriptions through the mail, using a traditional or online pharmacy. If you belong to a prescription drug plan (e.g. through your health insurance), you may be able to get a three-month supply of your prescription drug through the mail for the same price you would pay for a one-month supply at your neighborhood pharmacy. You can also ask your pharmacist or doctor to recommend a less-expensive generic drug whenever possible.

Check your medical bills
Medical bills are often confusing to read. However, taking a few minutes to go over the charges may save you money in the long run. Check to make sure that the bill accurately reflects the procedures you have undergone and takes into account any applicable insurance coverage you may have. Some errors, such as wrong computer codes, are common, and you may be billed for health care you never received. Contact the appropriate billing office if you think you've found a mistake. If you've received an explanation of benefits from your insurance company that you believe is wrong, ask the company to review your claim.

Join your spouse's health plan
Many married couples maintain separate health insurance coverage even though it may not be cost effective to do so. Examine both your coverage and your spouse's coverage to see if it makes sense for either of you to join the other's plan. Keep in mind that most plans allow you to add a spouse to your plan within a certain time period after you get married (e.g. 30 days). Otherwise, you may have to wait for the plans' annual open enrollment period.

Keep track of your medical expenses
Come tax time, you may be able to deduct certain medical expenses if you itemize, and your total medical expenses exceed 7.5 percent of your adjusted gross income. Allowable medical expenses include everything from health-care services to medical aids (e.g. eyeglasses, hearing aids). Keep track of these expenses if there's a chance you'll be able to deduct them on your income tax return.

Negotiate a discount with your health-care provider
Many people don't realize that you can sometimes negotiate to lower your medical bills. While it may not always work, it doesn't hurt to ask your doctor, hospital, or pharmacy if they're willing to come down in price. Before you begin to negotiate, do a little research to find out what other health-care providers in your area are charging. You can also ask your health-care provider if they'll lower their price if you pay in cash up front.

Contribute to a flexible spending account
Your employer may offer a flexible spending plan that allows you to put pretax dollars in an account. You are then reimbursed for your out-of-pocket medical expenses, such as prescription drugs, dental care, and co-payments. Because flexible spending contributions are taken out of your pay before federal and state taxes are calculated, you get to use pretax dollars to pay your medical bills.

Take advantage of free health screenings
If your health insurance doesn't provide adequate coverage in some areas, or if you don't have any health insurance coverage at all, you may want to look into free health screenings. Local clinics and hospitals often provide a variety of screenings, such as blood pressure, cholesterol, and mammograms.

Get to know your health insurance
Your health insurance may cover more than you think. Nowadays, insurance companies often provide benefits designed to help you stay safe and healthy. For example, you may receive discounts on vitamins, alternative medicines, health club memberships, or bike helmets. You may also be surprised at the range of coverage your health plan offers. For instance, it may cover dental care for young children, chiropractic care, and acupuncture. Read your plan membership materials to find out what products and services are available through your health plan before you pay for them on your own.

Health Insurance

Let's face it--in today's world, health insurance is a necessity. With medical expenses soaring higher than a hang glider, paying for them could have you digging deep into the pockets of your jeans.

What types of health insurance are available?
Health insurance plans generally fall into one of two categories: indemnity plans (also known as reimbursement plans) and managed care plans such as health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point of service (POS) plans.

• An indemnity plan allows you to choose your own doctors and pays for your medical expenses--totally, in part, or up to a specified amount per day for a specified number of days.
• Managed care plans generally provide broader coverage, but they all involve an arrangement between the insurer and a selected network of health-care providers (doctors, hospitals, etc.). For example, an HMO will require that a primary care physician in the network coordinate all of your care and refer you to specialists in the network.

No matter which type of health insurance you buy, you'll need to make sure it offers the right kinds of coverage.

What should be covered?
A good health insurance policy contains several types of coverage.

Hospital expense insurance pays your room, board, and incidental services costs if you're hospitalized.

Surgical expense insurance covers surgeons' fees and related costs associated with surgery.

Physicians' expense insurance pays for visits to a doctor's office or for a doctor's hospital visits.

Major medical insurance offers extremely broad coverage with a very high maximum benefit that's designed to protect you against losses from catastrophic illness or injury.

What might be covered?
When comparing health insurance plans, check to see if they provide additional benefits that you may need, including:

• Prescription drugs
• Preventive care
• Mental health benefits
• Maternity care
• Vision care

What will it cost?
In addition to the monthly premium expense, you may have other out-of-pocket costs. These costs can really add up, especially if you have children or other family members who visit the doctor frequently. Check to see if the health insurance plan you're considering requires you to pay any or all of the following:

• Co-payment: The amount you'll have to pay each time you visit a health insurance provider (generally required by HMOs).
• Deductible: The amount you'll have to pay toward your medical expenses (usually annually) before the insurance company begins to pay claims (generally required by indemnity plans).
• Coinsurance: The percentage of your medical costs you'll have to pay after you reach any deductibles that apply.

Where can I get health insurance?
You may get health insurance through a group plan at work or through another group affiliation (a school, a club, etc.) or by purchasing an individual plan on your own. By purchasing an individual plan on your own, you may even be able to customize the health plan. Shop online to compare rates from several companies to find the best plan and rate to meet your needs.

How do I decide which plan is best?
The best health insurance plan for you is the one that gives you the greatest flexibility and the most benefits for the lowest cost. Unfortunately, there's no such thing as a standard health insurance plan. As you would when making any major purchase, you'll need to shop around and get several quotes before choosing a plan. Here are a few points to consider:

• What co-pays, deductibles, and coinsurance requirements apply?
• How much freedom do you have to choose your own health-care providers?
• Does the plan cover the health services that you need?
• Does the plan cover the health-care providers you're currently using?
• Does the plan offer family, as well as individual, coverage?
• Does the plan cover pre-existing conditions? If so, is there a waiting period? (The average waiting period is three months to one year.)
• Does the insurance company have a good reputation in the industry and a positive rating from a major ratings organization? (Contact your state's department of insurance for more information.)

Life Insurance Policies on the Web

Insurance customers now have a choice: they can go to an agent, or buy their insurance over the phone or on the Internet. Some insurance companies are now offering policies, only available on the web.

Web-only life insurance policies and annuities can offer major pluses. You can get coverage cheaper and faster, and you don't have to visit an insurance agency to buy them. Your choices might be limited, however. If you require a variety of features on your policy or annuity, you might be better off going to an agent.

When is buying insurance online the best option?

Some Internet-only life insurance policies don't offer much variety in regard to policy features. More complex life insurance products, such as whole life, variable life, and variable universal life, require more explanation than some web sites provide. That's why many insurers limit their online offerings to policies that are easily understood.

"A lot of these products that agents sell have every bell and whistle you can think of," says Arthur Fliegelman, vice president and senior credit officer at Moody's Investors Service. "To sell online, you want a nice, streamlined, simple product."

Annuities in cyberspace

In addition to life insurance, you can buy annuities that are exclusive to the web.

There are drawbacks. Some popular features on variable annuities sold through agents, including long term care riders, guaranteed minimum income benefits, and bonuses, are not available on web-exclusive annuities. Some of the annuities don't carry death benefits, in which beneficiaries would receive what the annuity holder had put into the contract.

One advantage to many online annuities is the ability to make an unlimited number of transfers between funds and sub-accounts.

Hot commodities on the web?

As more people become Internet savvy, and feel comfortable making major purchases online, web-exclusive insurance might be an attractive option. Louisiana's acting Insurance Commissioner, Robert Wooley, says anyone buying insurance online should make sure they fully understand the terms of a policy, before buying it. "We're glad to see understanding is on the rise," Wooley says. "However, it's still troubling that while two-thirds of adults feel they have the right amount of insurance, only one-third seem to fully understand what they have."

Arthur Fliegelman of Moody's says online insurance providers have not done enough to give consumers the ability to service their insurance accounts, which includes paying premiums, changing an insurance beneficiary, or changing coverage. Fliegelman says online insurance providers need to make their services user-friendly, if they want to increase their share of the marketplace.

How to avoid auto insurance problems

Simple Tips.....How To
Avoid Auto Insurance Problems

Not knowing how the automobile insurance system works can cost you money.
Here are a few Tips to watch out for!

1) Have all drivers listed!

Check your policy carefully on each renewal to make sure that all licensed operators of your vehicle are listed and shown on the policy.

For example - The vehicle and insurance is shown in the husbands name yet no where on the policy is the wife’s name even mentioned though she has driven for 20 years accident free. What if another car was bought for her and she has no previous insurance experience to confirm? Under age drivers(25 yrs old) might be another
area of concern. People might believe they are saving money by not showing them as operators? But what happens when they do get their own vehicle and can’t provide accident free insurance experience. And they will get their own auto- it’s just a matter of time.

2) NSF Payment Cancellations.

Be responsible on payments for your auto insurance. Cancellations for non payment, non sufficient fund cancellations can be very negative and costly to you. It may even limit what insurance company you can place your insurance with! Be responsible and if a cancellation problem arises deal immediately with your broker to resolve it. Don’t ignore it!

3) Depreciation - what may happen on a claim.

Being prepared and knowledgeable can make a big difference with the results of a auto claim.

For example- If your car tires are stolen and you report a loss under your comprehensive coverage would your tires be replaced at full value. Not likely!
Such factors as age, condition, usage, wear and tear come into play. It only makes sense! Your tires might have 20,000 miles on them and yet you would be getting new tires. But how do you protect yourself so the claim is fair for you and the insurance company. A tip- keep the original bill of sale and have written on it the actual mileage of the vehicle at the time of installation by the tire installer!

4) What can I do to keep the cost of insurance down.

Contact your broker and discuss how your use of the vehicle(s) at present is rated and how your insurance company classes are determined. A potential problem could arise at the time of loss if your use is not properly classified. Also, you could be paying extra money by being wrongly rated.

Are you rated properly as your circumstances are today..... not in the past!

People Withholding Information!

Figures released by the Insurance Advisory Organization (IAO) suggest that a significant percentage of both personal and commercial policyholders are not disclosing past claims to their insurers when arranging insurance. The I.A.O. commercial based Claims Tracking System shows non-disclosed claims on more than 50% of inquiries while about 20% of the 150,000 monthly inquiries made to the Habituation Tracking System (home, etc.) uncover omissions. What that means is even if these figures are only half accurate then too many people are withholding insurance claims information and not disclosing it when arranging insurance.

In fact , statistics revealed that "seven to eight cases a day show up as suspicious". I can think of three possible reasons perhaps for this outcome.

1) One would be that some people simply don’t give the information as they believe they can hide it.

2)The second possible reason is that people simply forget to mention a particular claim or incident.

3) The third possible reason is the insurance broker did not ask the right questions.

But, whether the non-disclosure occurring is due to genuine errors, insufficient information being requested , or deliberately omitted, the real problem might end up with the insurance companies basing their rates on inaccurate data. Thus, someone might enjoy lower rates for car insurance as having no claims when in fact they had at- fault claims and should be paying a rate based on that actual record.

While their might be the odd company which does not check the data base for each and every new application for any past claims experience, the simple fact is most do! Most do it with no exceptions.

To combat fraud and misrepresentation, the ICPB’s Aspect system is linked to the U.S. National Crime Intelligence Branch, recording all vehicle movement across the border. ICPB’s advises that false stolen vehicle claims have been uncovered utilizing the system

Warning! Is Your Driver’s License Still Valid!

In Ontario (Canada) all new drivers, regardless of age, must complete a two level "Graduated Licensing" program before they qualify for full license privileges. These drivers have a maximum of five (5) years from the start date of their Level One License to earn full license privileges. If they do not receive their Class G license ( full license) within this 5 year period, they must reapply and start the licensing process over again.

According to information provided by the Ministry of Transportation, an estimated 125,000 Ontario drivers will see their Level One and Level Two licences automatically expire this year. If you received your Level One or Level Two license in 1994/95 and have not "graduated" to a Class G License, your license may have already expired. This means you could unwittingly end up driving without a licence. Please check your license and with the local registration licensing office

Life Insurance for Children

Emotions run high when parents and grandparents plan for a child's future. If you are considering life insurance for your child, it's a good idea to step back from the sales pitches and consider your and your child's needs before you make a purchase decision.

Often parents and grandparents are pitched "special opportunities" by insurance agents to add children to their policies — opportunities that the agent claims come up only every few years — so there's pressure to make a decision right away. Before you buy, ask yourself what benefit comes of buying life insurance on your child. Because the purpose of life insurance is income replacement after a death, and children generally do not provide income, it may not be the right purchase for you.

However, one of the best reasons to insure children is to cover final expenses after a death, such as funeral arrangements, which can range from $5,000 to $20,000. The average family may not have the funds for those expenses, and life insurance can help.

Buy with your head, not your heart

If you buy a policy on a child, most policies have an option for the child to buy additional insurance when he or she comes of age — a sales pitch suggesting that children will have trouble buying insurance when they are right out of college, for example, and on their own for the first time. But the reality is that most young adults can easily obtain insurance coverage for reasonable rates.

If you are worried about funeral expenses, you can buy term life insurance policies with a small face value to cover them. Of course, if you have the means, you can instead save enough money for such emergencies. That way, the money is available for other needs, such as education or buying a new home, and not just if an unlikely disaster strikes.