Importance of Health Insurance

In this time when money is tight, there are a few things you can change in your life that may well help you make your money go a little further. Health insurance is one of them.

When was the last time you really took note of what your health insurance costs and what you are getting for the price? Now may be the time to do that.

First, look over your current policy and make a list of the things you need that ARE covered. Now make a list of the things you need that are NOT covered. How much of a difference would it make on your yearly medical bills if you had that additional coverage? This is an important question to ask.

While it may cost more to find a health insurance policy with the extra coverage, if the savings is more than the cost for the extra coverage then you may want to consider a change.
Here are a few things to consider

Drug Policy
Many health insurance companies have an optional drug program these days. You have to pay more if you want to be in this program. If you only have one prescription a month or none, this may not be worth the money to fund.

After all, if you are paying an extra $20 a month and you don't know if you will even use the coverage it may be just as well that you put that money away to use if you need it.

Dental Coverage
Some insurance companies will allow you to take on a dental plan. While you may not think you need a lot of work done, just regular preventative dental usually balances out the cost of this coverage. If you need any work done, any coverage will lessen the impact of the bill.

Vision Coverage
Do you wear glasses or contacts? Many health insurance companies will let you add on a vision coverage program to their plans. This is a smart way to go. You don't want to take any chances with your vision, so you should have it regularly checked. Also, the sooner you realize there are problems and can start to correct them the better.

You are more likely to be able to catch them early if you have coverage and are regularly having your vision checked.

Courtesy Ezine Articles

Insurance the "Amercian Way"

Whether or not a given type of carrier is doing business in the American way depends upon the definition of the term "American way."

No one definition of the term would be generally accepted. Under some definitions, only state funds would be excluded. Under others, mutuals and reciprocals also would be excluded. Still other definitions would exclude Lloyd's of London.

Other definitions, however, would include all carriers doing business in the United States today. Pay your money, and take your pick. The authors are inclined to believe that there are good Americans at the head of all types of insurance carriers.

Definite Cost
Another argument often presented by representatives of stock companies is that the cost of the individual health insurance in stock carriers is definite. Their policy is not subject to assessment.

But the definite-cost argument does not apply exclusively to stock companies. Many mutuals are qualified to issue non-assessable policies. For example, a typical clause found in a number of mutual policies reads: "This policy is non-assessable, and the liability of the named insured to the company is limited to the payment of the premium herein prodded."

Some stock insurance company agents argue that all mutual policies are assessable irrespective of a policy condition to the contrary. A number of court decisions are on record, however, to disprove this contention. There is no general or automatic assessment liability. Also, some stock agents argue that even though contracts are non-assessable in one state, they might be assessable in another. There is no evidence to support this claim, either.

In theory, at least, some buyers find an assessment feature in a contract an advantage. The assessment privilege gives the carrier additional financial strength. Under the assessment clause the companies can charge an additional premium whenever the original rate proves inadequate.

The advantage of the assessment feature, however, is more theoretical than practical, for the task of collecting any sizable assessment would be difficult indeed.

Whether or not a definite, predetermined premium is charged for insurance for pregnancy, for example, is a matter of the type of policy issued rather than the type of company issuing it. Stock companies and many mutuals issue only non-assessable policies. Other mutuals issue only assessable policies, some with unlimited assessment and others with a limited assessment.

By and large, the rank-and-file insurance buyer prefers a non-assessable policy; but assessable policies are not always undesirable. In fact, the factory mutuals charge a more than adequate premium; yet they include an assessment clause in their contracts. The factory mutuals have never had to rely on these clauses, although they do give added strength to the carriers.

A Definite Contract
Mutual insurance contracts may include the following provision: "The company is a perpetual mutual corporation owned by and operated for the mutual protection and benefit of its members in accordance with law and in accordance with the charter and bylaws of the company as now in force and as the same may be amended from time to time."

Stock company representatives sometimes interpret this clause to mean that protection afforded by a mutual policy can be varied during the lifetime of the contract simply by a change in the corporate bylaws. They argue that, on the other hand, the protection offered by a stock insurance contract is clearly defined in the policy agreement and cannot be altered except by court order.

This argument is an exaggerated criticism of the mutual policy. Changes in bylaws will become binding upon policyholders only if these changes are reasonable and then only after the insureds have received notice of the change.

If the changes adversely affect the insurance protection carried by the policyholder, they are very likely to be held unreasonable. Upon receiving notice of a reasonable change, the insured, if he disapproves, could cancel his home owners's insurance policy (as an example) and seek coverage elsewhere. The only cost of this action would be a penalty through the use of the short-rate cancellation table, which does not give the insured a full prorata refund of his premium.

If changes in mutual bylaws affect only administrative procedures, they are binding. Stock companies also can change administrative procedures without their policyholders' approval.

In the final analysis, policies of advance-premium mutuals are as definite in the rights and obligations of policyholders as are policies issued by stock carriers.

In fact, mutual policies usually contain a condition that states: "This policy embodies all agreements existing between the named insured and the company or any of its agents relating to this insurance."

As a matter of fact, since most policies (both mutual and stock) include cancellation clauses, companies, upon giving proper notice, can alter the terms of their policies at any time they see fit. They can terminate one policy and offer a less liberal one in its place.

Courtesy Ezine Articles

Getting Best Insurance Deals

One of the most challenging things to shop for is insurance. Any type of insurance whether it be car, life, home, boat, fire, flood or pet insurance poses a challenge to the most seasoned shopper. This is because there isn't any tangible, physical thing to handle.

Since insurance is a bit touchy to shop for effectively, here are a few things to look for:
Don't let an agent talk over your head with terminology. Tell him or her to slow down and speak English. After all, they went to school for this and it is like a second language to them.

Take your time and refuse to be rushed into a decision. Buying insurance is a long term commitment for you (the buyer). Be sure you get the right policy for your needs. Ask questions and be sure you understand the limits and deductibles before you leave that office.

Ask for a discount for multiple policies. Most companies offer discounts to policyholders who "package" their insurance with a single company. This could amount to a significant annual savings for you, BUT they may not offer it to you. Ask for it and be prepared to haggle a bit if need be.

Get a few quotes and compare the coverage's for the money spent. You may find a lower priced company with better coverage hidden in the folds of the legalese of the policy!

When comparing the different policies, figure out the average cost and make sure you are in that ballpark. DO NOT SIGN ANYTHING UNTIL YOU KNOW THE WHOLE STORY!!

Ask if there are penalties for allowing coverage to lapse and if they can be waived in certain circumstances. This should be a standard across the industry.

Now shopping for insurance in the office is a tedious experience. In order to be able to compare policies, you would need to go to several appointments, speak with several companies and make all kinds of notes.

It is much easier and faster to do these tasks online. Shopping for insurance online affords you a couple of unique opportunities. First, you will have all the information in front of you in writing. In this way, you can go over it in depth and really get informed. Plus you have it in black and white and it is a formal quotation. No back pedalling on the agent's part and no surprises for you 3 months down the road.

Second, there are numerous websites where you can go and ask for a quote on any kind of insurance you may need. The information that you put in is distributed to several different agents. They will contact you with their offers directly. Even better, they will be forced to compete for your business and that translates to bigger savings for you!

Whether you are doing your insurance shopping online or offline, the rules are the same. Don't rush, don't get lost in terms, look for the discounts, compare a few policies and be aware of the penalties. Remember that an informed, educated consumer is a happy consumer as well as a salesman's worst nightmare.

Courtesy Vincent Norman.