Purchasing Health Insurance

By: Dan Hughes

For most people today, researching and buying health insurance is a very difficult and head spitting problem. It’s easy for the people who don’t need to go out searching for their own health insurance because their companies offer them coverage. However, especially in today’s economy, people have to go out looking for their own health insurance, and they have to do it without any help. For the most part, many people don’t really know what to look for and don’t know what questions to ask when they finally see somebody. According to some experts, there are five crucial questions that one should ask when purchasing health insurance.

1. How much are my premiums and will they change?

It is important to get the price of the premiums in writing and to find out how long you will be charged this particular rate. These quoted rates sometimes don’t last that long.

2. What are my deductibles and co-pays?

Always know what you’re paying for. Even if you meet your deductible, you most likely will still be responsible for a co-pay whenever you see the doctor.

3. Is the insurance company licensed in my state?

4. Am I buying a short-term or a long-term plan?

Be wary of short-term plans. When you go to reapply after a short-term policy, some companies will treat you as a brand new customer. This could be a problem for people who have conditions that overlap different policies.

5. Should I consider going with COBRA?

COBRA is a program that allows you to keep your employer’s insurance if you happen to be laid off or are working much less hours. However, you have to pay the whole premium, which may deter some people.

Always remember, though - if a policy sounds too good to be true, it most likely is.

Source 1 Source 2 Source 3

Term Life Insurance vs. Whole Life Insurance

By: Dan Hughes

There are two main forms of life insurance that people may have to choose between. These two types include term life insurance and whole life insurance, and, for the most part, people have no idea which type of life insurance is best for them.

With term life insurance, you are only covered for the life of the policy, while you are still paying the premiums, of course. Basically, this is the policy that makes the most sense for the majority of people out there, especially the couples that have kids. A life insurance policy is only intended to help the ones that have others dependent upon the life insurance holder. You do not want to continue paying premiums on your life insurance once your kids are no longer considered dependents.

With whole life insurance, on the other hand, the life insurance policy is designed to cover you for your entire life. It combines a term policy with an investment component, which could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against, which is why the premiums generally cost more than what term insurance would cost. As this “accumulation account” grows over time, the cost of your premiums may decrease over time.

Basically, what you need to ask yourself when looking for life insurance, is who you need to insure should anything happen. If you are generally healthy and have older kids, whether you may be single or not, whole life insurance probably is not the best way for you to go.

Source 1 Source 2 Source 3

Saving Money on Auto Insurance

By: Dan Hughes

Factors That Affect Your Auto Insurance Rates

Posted by: Lauren Cappelli, Group 1A

Auto insurance rates vary depending on various characteristics of the holder and their automobile. Some of these characteristics include the age of the holder, where they live, the type of vehicle they drive and how they use their vehicle.

Age has a big influence on the cost of auto insurance. Insurance companies feel that certain age brackets hold a greater risk when it comes to driving an automobile, therefore increasing the rates. “Traditionally, males under 25 years of age represent the highest risk, while married, middle-aged, non-smoking mothers represent the lowest” (MSN Autos).

The place in which the holder lives also has an influence on the premium they will pay. Generally the more urban the area the holder lives in, the higher the rates. This is due to the increased number of cars and the higher occurrence of accidents. The amount of thefts in an area affects the premium as well.

The type of vehicle that the holder drives is also a factor that affects the premium paid. The model, color, and cost of repair are three big factors that play a role in the price of the insurance (insure.com). Traditionally sporty, luxury cars will result in higher premiums.

Lastly, how the vehicle is used is another determinant in the cost of a premium. The more miles driven, the greater the chance that an accident will occur therefore increasing the risk. An increased risk results in a higher premium.

Shopping for Auto Insurance. MSN Autos

http://articles.moneycentral.msn.com/Insurance/InsureYourCar/ShoppingForAutoInsurance.aspx


Which Cars Cost More (Less) to Insure. Insure.com

http://articles.moneycentral.msn.com/Insurance/InsureYourCar/which-cars-cost-more-or-less-to-insure.aspx