October 06 Topic - "Insurance"

In this month's newsletter I will speak briefly about car, life and health insurance and will only give facts. Ultimately the decision is up to you as to what kind and how much of insurance you want to obtain. I hope the information this month helps you make the right decision for your situation.

01.  Types of Car Insurance
02.  Tips to save money on car insurance
03.  Life Insurance
04.  Health Insurance
05.  Tips to save money on your medical bills.

Types of Car Insurance

General liability - will cover damage to someone else's property that was caused by you. It will also cover any injuries that someone else may encounter.

Collision - covers damage to your car in an accident.

Comprehensive - covers damage caused by fires, break- ins, or any natural disasters.

Medical Payments - This will cover medical bills of people injured in either car regardless of who was at fault.

Uninsured Motorist - This will protect you if you are injured and the other party was not insured at all or not enough to cover your costs. Misc./Extra Coverage- This will sometimes cover towing, labor or other miscellaneous things.

Factors that affect how much you pay for car insurance.


• Sex. Insurance companies typically charge males more money than females. They claim that men have more accidents than women.
• Age. The older you are the less you will pay usually. New drivers under the age of 25 usually get charged more.
• Your record. Insurance companies look at your past driving record. People with a lot of accidents, tickets, or charges such as a DUI are going to pay premium prices. You are a higher risk than someone with a clean record.
• Type of car. Believe it or not the type of car you are insuring has a lot to do with how much you will pay. People with sports cars generally pay more than people with vans.
• Location. The place you are being insured in. If you live in the country you will usually have lower rates than someone who lives in a busy city like Atlanta.
• Coverage. The type of coverage selected also has an impact on how much you will pay to be insured.

Tips to save money on car insurance

1. Shop around and get numerous quotes. You really want to spend some time and research what kind of coverage is best for you. Once you have figured that out shop around. You will be surprised how the quotes will vary. You could end up saving hundreds of dollars.

2. Increase your deductible. By doing this you are saying that if something happens you will be responsible to pay more money. In turn often times the monthly premium is lower, sometimes by as much as 20%. This is a great option for saving money, however make sure that whatever your new deductible is you will be able to afford if something should happen.

3. Credit score. We all know how important credit scores are for buying things and borrowing money. Well it can save you money now. If you have a good credit score your premium will be lower the majority of the time. Studies have shown numerous times that there is correlation between credit history and the risk to an insurance company.

4. Do not drive that much. The less you drive the lower your premium. Insurance companies often offer a low mileage discount. Check with your insurance company to find out how to qualify.

5. Keep a clean driving record. Premiums are usually lower if you have a clean record for a specified amount of time. A clean driving record means no tickets, accidents or charges such as DUI.

6. Be careful what you choose to drive and insure. Sports cars are more money to insure than a basic sedan. The reason it works this way is drivers who own sports cars are more likely to speed and drive recklessly. Also sports cars are more likely to be targeted by thieves.

7. Have safety devices installed. There is sometimes a reduction or discount if you have an alarm or other anti-theft device installed in your car.

8. Talk to your insurance company about other discounts. There are some companies who will give you discounts if you have been with them for a number of years. Also if they offer other insurances such as homeowners or life insurance it may be cheaper to get them all through the same company.

Life Insurance

Why do I need life insurance?
To take care of loved ones left behind. Different people buy life insurance for various reasons. Some of the most common reasons to buy life insurance are replacing lost income, to pay off debt or funeral costs, and to help pay for your child's education costs.

How much life insurance do I need?
Everyone is different and what may be acceptable for one family may not be for another. Some things to consider when deciding what amount is right for you is your spouse's income (assuming you are married and the spouse works), assets, and if you already have any insurance through work.

These questions are imperative in finding out how much insurance to buy. Assuming that you are married and that your spouse does work, you will need to figure out if that income be enough. If that income is enough you obviously can reduce the amount of insurance needed. Second thing is your asset.

A major thing to consider before purchasing life insurance is your asset. Figure out if there are any assets that you are willing to sell if you needed to. Be sure to think about the value and any penalties for selling in short notice. Finally, you may have insurance through your job. A lot of companies who provide health insurance also provide life insurance. It will probably not be a lot but it is something that can be added onto.

What is the difference between term and whole life insurance?
Term life insurance is a policy that will cover you for a specific amount of time. They will specify how long the policy is valid for and when the policy expires you can always renew it. Whole life insurance is a policy that will cover the insured until they die. This policy will also build cash values that can be borrowed.

How much will it cost?
Life insurance is usually pretty affordable depending on the situation. The younger and healthier someone is the cheaper it is. Most places give free quotes usually over the phone or even the Internet.

Things you should know about life insurance before purchasing
Life insurance is usually pretty affordable depending on the situation. The younger and healthier someone is the cheaper it is. Most places give free quotes usually over the phone or even the Internet.

Things you should know about life insurance before purchasing


• Do not buy more coverage than you need. Life insurance should be purchased to cover your needs. Buying too much life insurance will result in paying higher premiums. In the same breath I will tell you to be sure to not underestimate how much you should get either. You want to be sure that however much you decide to buy will be the right amount to get you through comfortably until other means are met.
• Do not wait until you are older to purchase life insurance. The younger and healthier you are the lower rate you can lock into. If you wait you may end up paying a higher premium.
• Review your coverage and make any needed changes. Things change in our lives sometimes in an instant and you want to make sure that your life insurance will cover that. A lot of times having a child will often result in needing more life insurance. On the flip side when your child leaves for college or is on his own you may not need as much. Be sure to review your policy with any life changing events that may occur.
• Find out the payment plans offered. Some companies charge you more if you pay monthly instead of annually. You may be able to save money by paying once a year verse every month.
• Do not limit your options. Your job may offer life insurance. The downside to this is that usually when you leave the job this is not taken with you. Also it is usually minimal coverage.
• Be honest with your carrier. Insurance companies can terminate your policy if they find out that you have lied on your application.

Health Insurance

Health insurance is probably one of the most difficult insurances to buy. You have so many different decisions to make and questions to answer. There are all different types of health insurances that they offer to us. I know that I was very confused and frustrated when applying to get my health insurance. A lot of people opt to get insurance through their work, which does sometimes make it easier. However it is not always cheaper or the best plan for you. Be sure that you do not take the easy way out. Before signing on with your work plan it is recommended that you shop around. I have listed below some common questions about health insurance.

What is the difference between a HMO and a PPO?

A Health Maintenance Organization often referred to, as an HMO is a plan that allows its patients to use providers that are contracted with the plan. Any time a patient chooses to see a provider that is not within the plan the patient will pay for the services themselves. The patient would be fully responsible for payment on that. However if the patient receives permission to see a provider that is not within the plan then it may be covered.

A Preferred Provider Organization often referred to, as a PPO is a plan that has many providers those patients are urged to use. However, if the patient chooses not to the coverage of services will be reduced. The patient may still have to pay out of pocket but not entirely.

When I shop for health insurance what do I need to consider?

Everyone will have specific things that are important to him or her. However, there are general guidelines that every one can follow.

Deductibles and out of pocket costs: You will want to pay attention to how much out of pocket expenses you will be liable to pay. For instance some plans require a deductible to be met before they cover any expenses. Some plans also require copay, which is a specified amount that the patient is responsible for when visiting a provider.

Coinsurance: This is the fixed amount of money that the insurance company will pay. It is usually given in percentages. For example the company may pay 80% of all medical bills, which will mean you are responsible for the remainder, which will be 20%.

Premiums: Obviously you will want to find out how much money you will be paying the insurance company for their services.

Waiting Periods: The majority of people do not realize that sometimes there are waiting periods when you first receive insurance. In other words, there may be a 30 day period where you will not be covered if you see a special doctor. Be sure to find out if the insurance carrier that you choose to go with has any specific waiting periods.

Prescription Drugs: Find out if there is a prescription drug plan that goes hand in hand with your policy.

Preventive Care: Some policies cover preventive care while others do not. If this is something that is important with you speak it over with the company and find out what they offer and what is not covered.

Maternity care and vision care: It is a misconception to think that all plans will cover maternity fees and vision care. Unless is it specified assume that it does not. If you or your spouse is planning on having a baby shortly it is in your best interest to pick a plan and really research what they cover. It can get very expensive, yet with the right plan you will save hundreds or even thousands of dollars.

What should be covered in a health insurance plan?

All plans vary as to what they cover exactly, however a good plan should include certain things. Typically, a plan should include hospitalization, physician's expenses, and surgical fees. You want to be sure that you be protected against a big loss if something terrible were to happen to your health.

Tips to save money on your medical bills.

1. Preventive Care. One of the best ways to save money on medical bills is to stay healthy. You can achieve this by getting regular check ups, eating right and exercising. Maintaining a healthy weight and getting rid of any bad habits like drinking and smoking will increase your chances of staying healthy.

2. Shop around and compare quotes. All insurance companies vary in their plans. You must figure out what is important to you personally. If you are someone who rarely sees a doctor then you may be better off paying a higher deductible and lower monthly payments. Whereas if you are constantly seeing a doctor the opposite may be true. My best advise is to figure out what you want out of the plan and shop around. Get as many quotes as you can and compare the plans.

3. Pay less for prescription drugs. I know that prescriptions can really add up to a lot of money. If you are someone who spends a lot of money each month look into ways to save. My first thought is generic drugs. Generic drugs usually cost about half the price of the name brand and work exactly the same. What you must remember about generics is that the FDA regulates them and they must have the exact ingredients as the original. Another way to save money is by ordering them online or through the mail. Often it is cheaper to do it this way than your pharmacy.

4. Pay attention to your bills. Often times you will be charged for a procedure that you never happened. Everyone makes mistakes and you do not want to pay for it. If you are not sure of a charge be sure to contact the doctor's office or insurance company.

5. Get a family plan. It is less expensive most of the time to have families plan rather than separate plans. Look into the cost of having individual verse family plans. Remember if you have recently gotten married do this as soon as possible because most insurance companies only allow a certain amount of time to switch. If you miss that deadline you will usually have to wait until open enrollment, which may only be once or twice a year.

6. Look into free screenings. Often time's local clinics and hospitals will have a walk in period every so often. This is a time where they will screen you for certain things such as blood pressure or cholesterol at no cost. Take advantage of these offers it could save you a lot of money.

7. Explore your health insurance provider. Research any discounts that they provide to their customers. They may provide discounts if you join a gym or receive preventive care. Find out what other benefits your health insurance offers.

8. Talk to your health care provider or pharmacy about saving money. Sometimes doctors will give you free samples of prescriptions so that you do not have to put money out to receive them. Also ask if they can lower their fees or give you a discount. It may not always work but it cannot hurt.

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Got a question? Then contact our Education Team on 561-883-2398 Ex.310 United conducts regular seminars on financial education, including "How to Budget", come along and join us - to reserve your seat contact our Education Team on 561-883-2398 Ex.310

Newsletter 10
Rev.1
October, 2006