InsuranceCategory Archives

Term Life Insurance Superiority – Myth or Truth?

The raging fires of the debate as to whether term life insurance is superior to permanent life insurance have cooled somewhat even though some so called experts hold fast to their beliefs. There are some, even though they have no real qualifications in insurance who hold to to the idea that term is better. There are others who claim to be investment experts who also agree. Has anyone ever bothered to ask the actuaries who have spent hours designing these products what their opinion is? Has anyone asked the consumer? The desire for permanent life insurance never died but on the other hand term life insurance is more popular than it used to be.

There are strong arguments that term life insurance is pure life insurance but is it really? There are the contenders who claim that the difference between the inexpensive term policies and the more costly whole life insurance if invested would yield humongous profits but will it? Is that money invested anyway? Americans are enjoying more prosperity today than they ever had. Can a part of their prosperity be attributed to the fact that they are investing more money? Is the money saved or invested a result of the fact that they buy more term insurance and therefore have more money to put away? I don’t think so.

Americans earn more money today than they ever have and they are more conscious of the possibilities of true prosperity if they invest their money. The fact is that buying term life insurance as against whole life has nothing to do with their upward financial movement.

Term life insurance is good insurance simply because it provides cash or income to our loved ones if we should die while they still need to depend on us. The cost is minimal, depending on the type of term policy you buy. The truth is that whole life insurance does the same thing. Your outlay is more but whole life provides many options that term does not consider.

Whole life has cash values that can be left to accumulate with the life insurance company. Your whole life policy can also earn a dividend. The amount will depend on how well the company performs. Dividends are not guaranteed. The dividend can be left to accumulate interest, can be used to reduce premiums or may be used to purchase paid up additions which are small single premium policies of the same type as the base policy. These additions also accumulate interest.

I think these so called experts should refrain from trying to tell people what type of life insurance to purchase and give them the option of looking at both types. These people are quite capable of making their own decisions as to whether the superiority of term life insurance is a myth or is in fact a truth that all intelligent people should accept.

For details on term life insurance go here:
http://www.lifeinsurancehub.net/termlifeinsurancequotes.html

For details on whole life insurance go here:
http://www.lifeinsurancehub.net/whole-life-insurance.html

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June 26, 2011

Insurance

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Fires

Low Cost Family Health Insurance

The health of our family members is of paramount importance to us, and getting good health insurance is more of a need than a choice. Family health insurance gives good cash value and serves as a cushion in times of trouble. Today, getting family health insurance has become easy, and there are a number of different types of health insurance coverage designed to meet the needs and budgets of a variety of individuals.

The cost of health insurance, which is the premium, may be higher for a policy that provides a great amount of coverage and flexibility, while the premium may be lower for a policy that provides less coverage or flexibility. In fee-for-services health insurance you have a pre-agreed health insurance sum, and when you make a claim your health insurance provider deducts this sum. The cost of fee-for-service health insurance is high, but the benefit of fee-for-services health insurance is that you can visit any healthcare provider you want, but at the same time you need to remember that there are some types of treatment are not covered.

Health Maintenance Organizations (HMOs) are a recently introduced but popular form of insurance coverage. The main reason for their popularity is their low-cost premiums. But HMOs do not give you the flexibility to visit any health care provider. They designate certain healthcare providers whom you are allowed to visit and if, even in the case of an emergency, you visit a healthcare provider who is not approved by the HMO, you’ll be left to pick up the entire tab yourself. So if you are looking for family health care, make sure you choose the best for your family.

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June 20, 2011

Insurance

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Service Health

Affordable Family Health Insurance Quotes – Where to Get Them

Medical bills are responsible for more than half of the personal bankruptcies in the U.S., and that number is climbing. If you don’t have health insurance you risk losing everything you own. Here’s how to get affordable family health insurance quotes so you won’t face that situation.

Government Sponsored Programs

There are a number of no-cost and low-cost government programs you may be eligible for. These include:

Federal programs – Medicaid is a federally funded health insurance program that provides health care for low-income adults and families, pregnant women, elderly adults, people who are disabled, and people who care for a disabled family member. For more information on Medicare, visit the Medicare website at medicare.gov.

State programs – Every state has a number of health care programs for low income adults, families, and children. For instance, the Children’s Health Insurance Program (CHIP) is available to families who cannot afford to pay for insurance for their children but who earn too much to qualify for Medicaid. For more information about state-sponsored programs and to see if you qualify for any of their programs, visit your state’s department of health services or department of human services.

Private Plans

If you don’t qualify for a government sponsored health care program your other option is a private health care plan. These plans fall under two categories:

Indemnity plans (also known as fee-for-service plans) – These plans charge you a monthly premium and cover your doctor visits, prescription drug costs, and hospital fees. You are responsible for paying a deductible before your insurer will pay for your medical bills, and you’ll also have to pay a percentage of those bills (usually 20%).

Indemnity plans are the most expensive plans and involve the most paperwork.

Managed health care plans (HMOs, PPOs, and POSs) – These plans charge you either a monthly premium or charge you for services as they’re rendered. They pay for your doctor visits, prescription drug costs, and hospital fees. You are assigned you to a group of health care providers – doctors and hospitals – you must use for your care.

Managed health care plans are the cheapest plans and involve the least paperwork.

Affordable Health Insurance

In order to get affordable health insurance you first of all need to choose a plan that fits your needs, then you need to compare rates to see which company has the most affordable rate.

Why Do People Buy Life Insurance?

There’s an old joke that goes something like this: “What should you do if you want to make God laugh?”

In case you haven’t heard it before, the answer is: “You should make plans.”

Unless you know someone who believes in palmistry or that the future lies in the reading of tea leaves, you probably never met anybody who really believes that they know with absolute certainty what their future will bring.

One of the things that many people cherish above all else is being able to enjoy a peaceful state of mind. Most people want to believe that, no matter what challenges come their way they and their family will be able to come out on top in the situation.

These desires & beliefs led to the birth of life insurance.

More than seven thousand years ago, when the Chinese shipping industry was still quite young, it was relatively common for ships to be lost at sea. Since farmers relied on boats as a means of transporting their crops to other markets they insured themselves against unexpected catastrophic situations – the risk of losing everything – by spreading their crop among a number of boats.

This way if one did sink they would still be able to realize enough of a profit to feed their families and keep a roof over their heads.

In ancient Rome average citizens who did not have enough money to ensure that they could be buried when they died joined a burial club called a “Fratre”. New members of the club had to pay an entrance fee, donate a certain amount of wine, and make monthly payments. These payments were made at monthly festivals where the members ate, drank, and performed sacrifices.

If a member did not pay their dues for six months they weren’t allowed to make a burial claim. Additionally those who committed suicide would be buried in a separate cemetery from others in the community. Their families couldn’t make claims for the financial assistance that was available to other members of the club.

Later, in the 13th century, the ancient Babylonians devised one of the earliest forms of insurance in recorded history. Affluent individuals offered a guarantee to merchants who shipped their goods that they would not lose any money if the ship sank. In return the merchants agreed to exchange a percentage of the value of their cargo for this protection.

Over the millennia these concepts developed and evolved into the type of insurance available to everyone today, no matter what tax bracket they are in. There is affordable insurance available that people may invest in to protect their families should the worst happen.

In return the people who buy insurance can sleep more easily and enjoy their peace of mind.

Advantages of Individual Health Insurance Versus Group Health Insurance

As employers continue to shift more and more of the cost burden of group health insurance to their employees, personal health insurance plans have become more attractive in recent years. Group health insurance being paid in full by the employer for your family is a thing of the past at most companies.

Personal health insurance plans for an individual or family are attractive for many reasons:

o Lower cost: Personal plans for healthy persons can be less expensive than group insurance contrary to what most people think. Years ago, a large group could naturally get better pricing for insurance than one person or family; however, it has done a complete reversal in recent years. Personal plans are individually underwritten, thereby benefiting those in excellent health. Group insurance, on the other hand, has by law become “guarantee issue” in a lot of states, taking away most underwriting and causing the price to skyrocket for nearly everyone. The cost of a personal health plan is a reflection of your individual health condition and the benefits you choose. The cost of a group health insurance plan reflects the overall health conditions of that group and the benefit options selected by someone else.

o Tailor made: Personal plans for an individual or family can be purchased specifically designed to meet your needs. Don’t want maternity or many of the other government-mandated benefits that group health insurance is laden with? A personal plan may be your answer. You can choose your deductible, co-pay amount if you want one at all, prescription drug benefit, coinsurance percentage and out-of-pocket maximum. These benefits are all pre-selected for you with the employer group “cookie-cutter” plans. Group insurance plans are designed and purchased to meet the needs of a large group of people. Each person in that group may like a different feature of the group insurance. A personal plan can be tailored to your specific needs and not those of anyone else.

o Portability: With today’s economy and job losses, portability of health insurance has become an important issue. While COBRA (Consolidate Omnibus Budget Reconciliation Act) provides some protection for employees that are laid off, there are still problems. The length and depth of this recession could cause some to find themselves looking of a new career for years. The COBRA option and current government relief effort will not fulfill this need. A personal plan can move with you from job to job, wherever your career path may lead. Decisions about job changes would no longer be affected by health insurance or pre-existing medical conditions if you had the luxury of taking your plan with you. Personal plans provide that luxury. Having a properly structured personal health insurance plan from a reliable insurer allows you, the consumer, to be in control of your health care and employment decisions. Not only do personal plans move with you from job to job, most plans will even follow you should you need to move to another state.

Summary:
The current trend of this cost shift from employers to employees has necessitated your doing a little work to find the best option for your situation. Ask yourself the following questions:
o Does my employer subsidize part of the “employee only” cost, making it advantageous for me to shop for a personal plan only for my dependents?
o Is there more than one group plan available to me and my spouse whereby each of us could take advantage of an employer contribution?
o Are there any pre-existing medical conditions for anyone in our family that would prohibit that family member from getting a personal plan?
o Does our family need immediate benefits, such as maternity, that may be more attractive under a group insurance plan?