Finance:Insurance

2005-10-27T21:27:00.000-07:00

An Investing/Insurance Alternative

Segregated funds are the insurance company's answer to mutual funds. There are many differences and similarities but if you are putting together a financial plan that includes insurance and investments, you'll probably want to consider a segregated fund.
Segregated funds are also called individual variable insurance contracts (IVIC's) and they'll be offered by a many insurance companies. Like mutual funds, they are investment vehicles, but like insurance, they have guarantees and tax advantages.

How are they like mutual funds?
Like mutual funds, you can choose to put your segregated fund money into any number of different types of segregated fund. For example you can choose growth oriented funds or bond funds or some combination of both, which provide you with an investment vehicle that matches your goals.

How are they like insurance products?
But there are four insurance-related aspects of segregated funds that make them an attractive product for many people.

1. First, is the maturity guarantee. A segregated fund offers a guarantee of at least 75% after 10 years (although some segregated funds offer maturity guarantees of 100%!).

2. As well, segregated funds offer attractive death benefits, which work in a similar way to the maturity guarantee: your survivors will receive the difference between the guaranteed amount and the market value of the fund at your death.

3. Because segregated funds are insurance products, they also offer creditor protection, so that if creditors seize your assets, they cannot touch your segregated fund.

4. Lastly, segregated funds bypass probate so that you can easily transfer the money to a beneficiary upon your death without the costly fees associated with probate.
Like all insurance and investment vehicles, segregated funds are not for everyone. For example, the guarantees do bring a higher cost in order to enjoy the segregated fund. However, segregated funds are growing in popularity, so many people feel that the guarantees are worth the cost.

These are just highlights of segregated funds. There are many more aspects you should be aware of. But, if you're interested in a segregated fund and what one can do for your financial portfolio, contact your insurance company and see if they sell them. If they do not, you can probably find another insurance company that will be able to help you if you look around.

About The Author
Jeff Lakie is the founder of http://www.my-boat-insurance.info

2005-10-27T21:26:00.000-07:00

Insurance Claims

When you are involved in an accident insurance claims may not be the first thoughts on your mind. However, there are some procedures you should follow in order to preserve your right to file an insurance claim. This may be anything from hail damage to a stolen vehicle and does not refer solely to car accidents.

The first thing you want to do is prevention. Most insurance claims can be prevented even before the incident occurs. For instance, to prevent auto accident’s be cautious and think about taking a defensive driving course. To prevent stolen vehicle insurance claims, keep you vehicle locked up and parked in a secure place. To prevent damage from the forces of nature do not travel in bad weather and keep your car in a covered parkway. There are many ways to prevent yourself from incurring loss. Most ideas are just common sense. However, for more information contact your insurance agent for ideas on prevention. Next, you will want to remain calm. When disaster strikes people react. That is our nature. However, sometimes people’s reactions can make things worse on their insurance claims.

If you’re in a car accident this might mean taking the blame, leaving the scene of an accident, or putting your self in danger. If you’re car is stolen you may act on your reaction by accusing innocent persons. There are a number of problems that can arise when people over react that is why it is essential to your insurance claim for you to remain calm.

Now, the next thing you need to be aware of is time. You see, time is not on your side when filing an insurance claim. The longer you wait the less your chances are of recovering your loss. Most insurance companies will not even consider a claim if it was turned in a certain amount of time after the incident. It is also harder to prove the longer you go before submitting an insurance claim.

Finally, you will want to follow procedures and document everything. Insurance companies are hit with frauds all the time. In order to weed out the actual claims from the fraudulent ones, they have to have clear cut procedures. Unfortunately, this can sometimes be confusing to actual victims. Yet, they are in place out of the need to protect the company. This means that you will have to educate yourself to what the policies are. Find out what documentation you need and what forms you will have to file. If you need help, contact your insurance agent. That is what they are there for. If you follow this advice, you should be able to file a claim relatively easy and with the least amount of lag time before payment.

About The Author
Alan Jason Smith is the owner of http://www.lanzinsurance.com which is a great place to find insurance links, resources and articles

2005-10-25T20:32:00.000-07:00

Life Insurance Coverage

The subject of life insurance can be a confusing one and we spend a lot of time discussing various ways to buy life insurance. How much do I need? How much will it cost? Will my beneficiaries have enogh to live comfortably? What is the difference between cash-value and term life insurance? Which is the cheapest to buy?

CASH VALUE LIFE INSURANCE POLICIES

Cash value life insurance, such as universal and whole life, combine a death benefit and a tax deferred saving element. Occasionally referred to as permanent life insurance, these types of policies are intended to cover you for your lifetime.
Annual premiums for cash value policies generally are higher than those of term life policies as part of each premium pays for insurance and the remainder is invested. Cash value is what you can borrow from the policy or receive by surrendering it. These funds are ideal for retirement planning and college funding, among other goals, because they accumulate tax deferred until you withdraw them and then may be partially taxable. Loans and withdrawals will reduce the policies cash value and death benefit.

LIFE INSURANCE MADE EASY

Term life insurance is the most fundamental type of life insurance. You purchase coverage for a designated period, from one to many years and the policy will provide a death benefit if you die during that period. Many polices let you renew your coverage for repeated terms until age 65 or even 100.

Term life insurance is popular with younger people because it provides the maximum amount of coverage for the lowest cost. Early premiums are low and increase as you become older. For example, a $250,000 death benefit will cost less in your 30s than it will in your 50s. For this reason, term life insurance is usually a better value for shorter term or finite life insurance needs.

2005-10-25T20:31:00.000-07:00

Health Insurance Rules

Many dual income couples, include their children on each group health insurance plan to maximize benfits. However, without some sort of system in place to help the health insurance companies coordinate benefits, it's possible that either you or your doctor would be reimbursed for more than 100 percent of the actual cost of your claim.

To prevent this, health insurance companies typically designate one parent's health insurance plan as the primary plan and the other as the secondary plan. (That's why the patient questionnaire at your doctor's office asks for information on primary and secondary coverage.) The primary plan is responsible for paying covered expenses up to the limits of the policy. If any unpaid costs are left over, the secondary coverage kicks in.

THE DATE OF BIRTH DETERMINES WHICH HEALTH INSURANCE PROVIDES COVERAGE
The birthday rule is often used to determine which plan is primary and which is secondary. Under this rule, the plan of the parent whose birthday occurs first in the calendar year is designated as primary. The date of birth is the determining factor not the year so it doesn't matter which spouse is older.

Like most rules, the birthday rule has exceptions:

- If both parents share the same birthday, the parent who has been covered by his or her plan longest provides the primary coverage for the children.

- If one spouse is currently employed and has health insurance through a current employer, and the other spouse has coverage through a former employer, the plan belonging to the curently employed spouse would be primary.

- In the event of divorce or seperation, the plan of the parent with custody generally provides primary coverage. If the custodial parent remarries, the new new spouse's coverage becomes secondary. And finally, the non custodial parent's health insurance plan would provide a third layer of insurance protection. This order of payment can be altered by a court issued divorce decree or by agreement, but the health insurance companies must be notified.

THESE ARE JUST HEALTH INSURANCE RULES NOT THE LAW
Keep in mind that these practices are common among health insurance companies, but they are not governed by law. Practices may vary from one insurer to another. Read your policy carefully to make sure you understand how your insurance company handles dual coverage. If the policy coverage is unclear, ask for help from your employers benefit specialist or your insurer's customer service department.

2005-10-25T20:29:00.000-07:00

How Much Insurance Do I Need?

Insurance is a complicated business, and it can be unpleasant to talk about because no one likes talking about death… especially their own death! Because of those two reasons, many people do not think about insurance very much. However, most people should have some kind of insurance.

But how can you tell what kind of insurance you need? It is such as specialized industry, with insurance brokers requiring licenses in order to understand it and sell it, so it can sometimes make you feel like you are at the doctor and you have no idea what the doctor is talking about! What makes matters worse, is that insurance brokers (the only people who know what they're talking about) are usually paid by commission based on the amount they sell. So, while you are likely to get an insurance broker who is a good, ethical person, you might still be concerned that they are overestimating your need.

So how much do you need?

There are two secrets to knowing how much insurance you need:

1. Determine the need. The first is to identify the costs that will be incurred at your death and the expenses that will go on after your death. Cost that will be incurred at your death include estate taxes, funeral costs, and wages that your loved ones will lose as they take time off of work to mourn for you. Costs that will go on after your death are things like, the mortgage on your house, as well as car payments, saving for the children's education, the wages you'll no longer be able to provide to your family.

2. Determine the period. The second step is to identify whether these expenses are short-term expenses are long-term expenses. Temporary expenses are ones that will only cost you money if you die within a certain period of time. Temporary expenses include your children's education and your house and car. It is possible, that these may be paid off before you pass away. However, if you die before they are paid off, it is good to have insurance to cover the rest of the payments. On the other hand, permanent expenses are things that will always be around. For example, your estate taxes, funeral costs, and the wages that your loved ones will lose when they mourn for you are all costs that occur once and they can be paid off… but it doesn't matter when you die, those costs will always be there.

Once you have done these two steps you will have a pretty good idea of how much insurance you need and how long you need it for. Now you are ready to talk to your broker and you'll have a pretty good idea what they're talking about. Bring the list with you and ask them to address each one. They may suggest the more coverage (and sometimes they may suggest less coverage) but having a little bit of knowledge before you make the appointment will give you an advantage and helped you know how much insurance you actually need.

2005-10-10T23:01:00.000-07:00

Health Insurance: How to Apply

If you're wondering how to apply for health insurance, be aware that application is the second step of the process -- after you've researched different policies and compared prices and benefits. Whether you apply online or off will depend on your comfort level with the computer, and also whether you're applying via a group plan.
Before you sit down to fill out an application, you should gather information you will likely need when filling out an application. The names and addresses of doctors for yourself and your family members, the dates of the most recent visits, and information about your most recent insurance policy,

Through Your Employer
If you're enrolling in a health insurance plan through your employer, you probably won't need a medical examination, but you may have to wait for the company's next enrollment period before you can apply. However, if you're a new hire, you likely can apply immediately. The application process for enrolling in a group plan is quite simple, because most plans will enroll everybody, regardless of pre-existing conditions and current state of health.
Just fill out an enrollment form, which includes personal information like: name, address, social security number, designation of the primary insured and all dependents (including the names, ages, dates of birth and social security numbers for all dependents), employment information including date of hire, and the type of health insurance coverage you select. You'll probably have to provide information about your prior health insurance coverage, including the insurance company name and policy number.
The completed application goes back to the benefits coordinator, who will process your form, and you're finished.

On Your Own
If you're not applying for group coverage, the steps are similar, except you'll be handling all the paper work yourself. Some insurance companies will send an insurance agent to discuss the application process with you. In these cases, the agent will often work with you to gather the necessary documentation, coordinate an in-home medical examination, and collect your pre-payment check.
The whole process is so simple that some people decide to apply for health insurance online. To do so, just visit the health insurance company's web site where you'll find an online application form. You'll have to provide the same type of personal and employment information as above, and you'll just enter it onto an online application form. When you're finished, click the submit button and the system takes over.

Applying for health insurance online really is painless, reliable and fast. However, if you are not comfortable providing that amount of personal information over the internet, it's probably a good idea to apply for health insurance offline.

Either way, don't wait until you need it. Because then it might be too late.
Ron King is a full-time researcher, writer, and web developer.
Visit healthinsuring to learn more about this subject.

Copyright 2005 Ron King. This article may be reprinted only if the resource box is left intact.

2005-10-10T22:58:00.000-07:00

The Real Cost of Health Insurance

Do you know the actual cost of your health insurance?
Everyone knows that health insurance costs are continually rising, but how do these spiraling costs affect your health insurance coverage? You know how much you pay every month for your health insurance premium, so it's easy to know when this cost goes up. But what about all the other costs involved with health insurance?
Before you're hit with an unexpectedl large medical bill, find out about the hidden costs of your health insurance.

The Premium
The premium is the amount you'll pay for the benefits covered under your health insurance plan. The premium is typically broken down into equal monthly payments. If you've got group insurance, your employer or union is probably sharing some percentage of this cost.

The Deductible
If your health insurance policy includes an annual deductible, you need to understand the details. A deductible is an amount you are responsible for paying before the insurance company begins paying out claims. As with car insurance, the higher your deductible, the lower your monthly premium and vice versa. A family health insurance plan typically includes multiple deductibles, one for each family member.

The Co-Payment
A co-payment is a fixed amount you have to pay each time you visit the doctor. The co-payment amount will depend on the type of health plan you have. Typically, an HMO will have the lowest co-payment. The co-payment can increase, however, for different types of medical service or if you visit a doctor or hospital outside the network.

Co-Insurance
Co-Insurance is the amount of a claim that the insured is responsible for paying, once the deductible has been met. A typical ratio is 80/20, where the insurance company pays 80% of a claim and the insured pays 20%. An insured's percentage will usually increase when he or she goes outside the network. Also when the claim exceeds what the insurance company deems "reasonable and customary," the difference is another form of co-insurance that you must pay.

Comparing Quotes
Make sure you fully understand these health insurance costs. Ask about them when requesting quotes, especially online health insurance quotes. When comparing quotes from different insurance companies, it's essential to know all your costs, not just the premium. Make sure the person preparing your quote clearly defines the deductible amount and whether there are separate deductibles for different types of services, the co-payment amount and the co-insurance amounts. Also, ask the rep to describe any other costs that may not be readily apparent.

Holding Down Your Costs
There are a number of ways you can help control costs once you have selected a health insurance plan. If yours is a "managed care plan," be sure to stay within your network. If you can choose any medical care professional, be sure that the provider's fees for the services you'll need fall within your insurance company's "reasonable and customary" guidelines. If not, shop around for a less expensive provider.
Other tips for keeping health insurance costs at a minimum include choosing a healthier lifestyle and seeking medical care only when absolutely necessary. After that health care costs are largely beyond the individual's control. The best medical advice would be, don't get an ulcer worrying about them.
Ron King is a full-time researcher, writer, and web developer.

Visit healthinsuring to learn more about this subject.