Monday, September 28, 2015

Fantastic Open Enrollment Advice



                                      

If you are lucky enough to have a job and have health insurance through your employer soon you are probably getting ready to participate in Open Enrollment, which start every October 1.  Employers allow employees to make changes to their health insurance coverage during this time.  During this time you can also see any changes that have been made to your health insurance plan since the last enrollment period.

If you are one of the lucky employees who have a job and have health insurance soon you are probably getting ready to participate in Open Enrollment.  Open Enrollment is an open benefits option for employees to make corrections or updates to their current health insurance benefits.  Health insurance companies are required to accept any changes or updates without questions or documentation of changes.  Health insurance benefits account for approximately 30% of an employee’s salary.
For those currently employed, you can make changes during your employers Open Enrollment which usually begins each year in October for:  prescription drugs, dental, health, flexible spending account, term life insurance, long-term care insurance and accidental death insurance but varies by employer.  Pick the options you know you will use.  Skip the ones you don’t need. 
To take full advantage of Open Enrollment, verify all of your information is accurate.  If you have benefits that will no longer be paid in 2015, ask your health plan provider if you can pay for the services using a Flexible Spending Account. Read all of the information provided to you prior to making any changes to make sure you pick the option that is best for you.

You may qualify for a health savings account (HSA) if your health insurance policy has a deductible of at least $3,350 for individual coverage or $6,650 for families.  Money is put in a pre-tax account, which grows tax-deferred and can be used to pay for co-payments, deductibles, and other medical expenses. You can roll over the unused money each year and take the balance with you if you leave your job. Some employers contribute to employee HSAs. 

If you don’t qualify for a HSA you can sign up for a flexible spending account (FSA) which allows you to save money to pay for out-of-pocket medical expenses. In 2015, the maximum amount employees can contribute to a FSA will be $2,550 per year.  Your FSA contributions do not have to pay state and federal income taxes or Social Security payroll tax. The catch is you have to spend the remaining money by the end of the year or you lose the money.

Thursday, September 24, 2015

Is Insurance Really Worth It



                                                       

September is Life Insurance Awareness Month which reminds consumers of the benefits of having life insurance. The recent earthquakes and hurricanes that the east coast experienced last month are another reminder why consumers need insurance.  Many homeowners and auto owners suffered loss or damages due to the earthquake and hurricanes.  For those who did not have insurance, repairs will be costly.

Insurance is a form of protection against loss, damage or theft.  Insurance should not be used as a form of investment or to get extra money.  Insurance should provide enough to reimburse for loss or damages. Three benefits to having insurance are: 

1.      Can be used to reimburse for a loss that occurs
2.      Protects against harm to something or someone
3.      Saves you money in the future

There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short-term and long-term), and many more. The three most important types of insurance everyone should have are: disability, life and health. 

Get a free analysis of your existing coverage to see if you have enough or too little coverage.   Many consumers have more coverage than needed.  Many consumers get the coverage suggested by their insurance agent and don’t bother to answer questions or comparison shop. 

When you purchase a new car, it is wise to get collision and comprehensive coverage but as your car gets older you may only need to have collision coverage.  This step could save you anywhere from $50 to $200 a month.  Collision coverage should be adjusted annually or every two years and should be based on the value of your car. Also, verify your liability coverage and adjust as needed. Here are 10 ways to save money on insurance.

  1. Increase deductibles.  Increase deductibles to lower your monthly premium.  This will save you money and prevent you from filing minor claims which can increase your premium.
  2. Assess. Assess the assess the replacement value of your insured items – car, home, health, etc.  If you house is worth $200,000 or the cost to rebuild you home is $200,000 but you only have coverage for $100,000, you need to adjust.
  3. Reputation.  Research the insurance company on the Better Business Bureau website or the internet to gather information on any complaints or the quality of customer service.
  4. Home.  Consider waving payment of your homeowner’s insurance by your mortgage company and pay it on your own.  This can save you anywhere from $50 to $300 a year.
  5. Health.  Many consumers file bankruptcy or have bad credit due to medical bills.  The increasing high cost of health care services and prescriptions is the main reason why everyone should have health insurance including dental and vision insurance if you wear glasses.
  6. Life. Adjust your life insurance policy as home environment changes.  Update every 5 years and when your children become adults, your spouse retires, etc.
  7. If you have multiple insurance products with different companies contact each company and get a quote for bundling your products to help you save money.
  8. Companies always provide discounts or specials but do not always advertise them.  Every 3-6 months call each service provider and ask if they are offering any specials and what discounts they have available for the services you currently have. 
  9. What If.  List different scenarios that could happen and make sure you have enough insurance coverage for each scenario, i.e. job loss, sickness, death, new baby, loss of health insurance or other benefits, car repair, etc.
  10. Research. Comparison shop for insurance with sites such as Bankrate, Progressive, AARP or ehealthinsurance.com to find the best insurance coverage.
Getting the right coverage will save you money in the future and help you get over any financial crisis you may experience.  

Sunday, September 20, 2015

20 Fabulous Ways to Save Money When Buying Insurance



                                
September is National Insurance Month and Life Insurance Awareness Month and is a great time to purchase insurance or review your current insurance policies. There are several types of insurance available: health, life, disability, dental, home, renter’s, auto, fire, flood and many more.

The basic types of insurance everyone should have are:  health, life and disability. Health insurance is needed if you develop a health condition or need to go to the emergency room. Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used in the event a family member dies to cover at a minimum burial costs.

Insurance is a form of protection against loss, damage or theft.  Insurance should not be used as a form of investment or to get extra money.  Insurance should provide enough to reimburse for loss or damages.

Get a free analysis of your existing coverage to see if you have the right amount of coverage.   When buying insurance it is best to comparison shop. You can contact the Better Business Bureau or search their website for companies and view their reliability report. Get at least three price quotes.

If you are able to purchase additional types of insurance it is best to purchase bundled packages or buy several insurance policies with the same company to save money.

You may not see the immediate benefit of buying insurance now but in the long run you will be glad you did. Buying insurance will save you money in the future and help you get over any financial crisis you may experience. Here 20 ways to save on common types of insurance.

Life Insurance
  1. Get coverage based on your needs not based on your wants
  2. Pay annually or quarterly
  3. Get term life until you 60 or over then switch to whole life
  4. Ask for an annual review to make any necessary adjustments

Health Insurance
  1. Get standard coverage at a minimum
  2. Exercise, improve your eating habits and improve your health. Ask for a reevaluation if you are in a high rate/risk policy
  3. Ask for an annual review to make any necessary adjustments
  4. Ask for discounts or reduced rates

Homeowners Insurance

  1. Pay the insurance yourself instead of the mortgage company
  2. Only get enough for rebuilding costs not the value
  3. Make your home disaster proof or resistant
  4. Make your home secure

Renter’s insurance

  1. Only get enough for replacement costs not the value
  2. Increase deductible
  3. Ask for an annual review to make any necessary adjustments
  4. Choose a good location


Auto Insurance

  1. Only buy what you need
  2. Drop collision or comprehensive
  3. Keep a good driving record
  4. Drive a car with money saving features or eco-friendly features