The Different Types Of Travel Insurance Policies You Can Buy

Are you gearing up for an expensive vacation or a lengthy business trip? If so, then you may want to take a look at the various types of traveler’s insurance available to you. Traveler’s insurance can provide protection from canceled or interrupted trips. It can also assist you with the costs of medical coverage in the event of an emergency. Finally, traveler’s insurance can provide coverage for lost or stolen items. Check out these types of traveler’s insurance before your next trip. While you may never end up using them, they may be able to provide you with piece of mind while you are traveling.

Travel Health Insurance

Many people mistakenly assume that their health insurance will cover them in another country. This is not necessarily true. Whether or not you have coverage outside of the United States will depend on your particular policy. Call you provider and ask about your coverage if you are out of the country.

If your plan does not cover the expenses of international health care, you might want to look into a travel health insurance policy. Generally, these policies will only provide coverage in the case of an emergency. Therefore, a visit to the doctor might have to be paid out of pocket. However, the specifics will depend on the particular policy that you buy.
You should also be aware that traveling to countries that the US government has deemed unsafe may void your policy coverage.

Evacuation Insurance

This type of insurance will cover the cost of transporting you to a location where you can receive emergency medical treatment if it is not offered at your current location. Usually, this type of policy will only take you to the nearest hospital or medical center.

Trip Cancellation Or Interruption Insurance

This insurance provides coverage of the money that you lose if you need to cancel or interrupt your trip. The majority of these policies only take effect in the case of illness, injury or death to you or your immediate family member. Some policies also provide coverage if someone you are traveling with falls ill, gets injured or dies. Other cancellation and interruption policies provide coverage if you lose your job and can no longer afford the trip.
Other types of events that can be covered include your airline or tour company going out of business, a terrorist attack or inclement weather. It is important to note that war and outbreaks of disease usually are not covered.
Note that this type of insurance is generally reimbursement only. This means that you have to pay for the costs upfront and then submit a reimbursement form to the insurer to get your money back.

Baggage Insurance

If you are traveling with valuables, you might want to look into baggage insurance. This insurance can provide coverage in the event that your baggage is lost or stolen. Your policy will lay out how much the insurer will reimburse you for your lost items.
Note that many airlines already provide some form of baggage insurance. Many homeowners and insurance policies also provide some coverage for lost or stolen baggage. Look into these before purchasing a separate baggage insurance policy.

Travel Document Insurance

Ever worry about losing your passport? If so, you can purchase travel document insurance which will cover the cost of a replacement passport in the event that yours is lost or stolen.

Flight Delay Or Cancelation Insurance

This type of insurance will provide you with money for lodging, food and new travel arrangements in the event that your flight is delayed or canceled. There is generally a minimum amount of delay time that must occur before the insurance kicks in.

Packages

Many insurance companies offer travel insurance packages that include multiple types of coverage, sometimes at a discount. If you are interested in obtaining comprehensive trip coverage, you might want to look into one of these packages.
Sometimes the unexpected occurs and our travel plans get thwarted. If you are concerned about the possibility of losing money or valuables or needing emergency medical treatment, you might want to consider purchasing a travel insurance policy. If you do decide to buy a policy, make sure that you do your homework ahead of time so that you get the best deal and you fully understand what’s covered and what’s not covered on your policy.

Thanks to candofinance.com

How To Keep Your Employee Health Insurance Coverage If You Lose Your Job

Employees who lose their job suddenly face a number of challenges. Aside from the loss of income and a bruised ego, a significant challenge is the termination of benefits like health insurance. For people who carry health insurance coverage for their whole families through an employer, the sudden loss of a job means that their spouses and children have no coverage in the case of illness or emergency. Fortunately, there are ways employees can continue to carry health insurance in the event that they lose their jobs.

COBRA

There's a federal program in place that enables terminated employees to maintain health insurance coverage for up to 18 months following separation from their employer. According to the U.S. Department of Labor, the Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to offer a continuation of coverage to separated employees and their dependents under the following circumstances:

• Voluntary or involuntary job loss
• Reduction in work hours
• Death
• Divorce
• Other major life events
• Transition between jobs

COBRA applies to employers who sponsor group health insurance coverage for 20 or more employees.
In accordance with COBRA, when an employee leaves a company, her employer must give her a written notice of the ability to continue her group health insurance. To qualify for COBRA coverage, employees must have been enrolled in the company's group plan prior to termination and the health insurance plan must remain in effect for active employees.

Electing COBRA Coverage

According to the U.S. Department of Labor, when employment is terminated or a qualifying event occurs that would cause an employee or dependent to lose health coverage, the employer must notify the health plan administrator within 30 days. If a qualifying event involves divorce, death or legal separation from the covered employee, the qualified beneficiary must notify the plan administrator within 60 days.
The plan administrator will then send an election notice to the employee or qualified beneficiary within 14 days of being notified. From this point, the employee or beneficiary has 60 days to decide if they wish to elect COBRA coverage.
An employee that chooses to enroll in COBRA coverage must pay the initial premium within 45 days.

Key COBRA Considerations

People are typically shocked by the cost of COBRA coverage. When a person elects COBRA coverage, they're required to pay the full premium. The employer no longer contributes to coverage because the employee or their dependent has separated from the company. According to the Department of Labor, individuals who enroll in COBRA coverage may be required to pay up to 102 percent of the plan costs. This can be prohibitively expensive depending on the cost of the plan and the employee’s income.
The benefits employees receive under COBRA do not differ from those received as an employee and individuals cannot be rejected or charged more due to health conditions or history.
Qualifying employees and beneficiaries are able to maintain their current health insurance through COBRA for up to 18 months.

Other Health Coverage Options

According to the personal finance magazine Kiplinger, COBRA coverage isn't always the wisest choice. Group health plans tend to come with high costs, most of which (about 75 percent) are typically covered by the employer.
Today, thanks in part to the growing self-employed sector, separated employees and dependents can opt to purchase individual health coverage on their own in lieu of continuing group coverage through COBRA. Many find this option to be cheaper than enrolling in COBRA.

Comparing Costs And Coverage

Kiplinger.com reports that the average costs for COBRA coverage range from about $4,700 annually for individual coverage to about $12,700 annually to continue coverage for an entire family.
Average costs for individual health insurance policies are significantly less expensive. Kiplinger.com estimates average costs for individual health insurance plans purchased through eHealthInsurance.com range from about $1,900 annually for an individual and $4,400 for a family. Rates may vary based on coverage, deductibles and copay amounts.
Comparing and evaluating individual health plans can be complex for many families. Plans vary in deductible amounts and excluded procedures. Prenatal care, for example, may not be included unless an additional rider is purchased.

Pre-Existing Conditions And Other Considerations

Unlike COBRA, individual plan administrators can deny coverage to an individual based on pre-existing health conditions and they can also charge higher premiums for high-risk individuals. However, when certain parts of the Affordable Care Act go into effect in 2014, they will make it illegal for insurers to deny coverage or increase premiums for pre-existing conditions or high-risk persons. You should note that there is some risk that Congress will overturn or modify the Affordable Care Act which could reverse these changes in coverage requirements.
In the meantime, the U.S. Government has created its own Pre-Existing Condition Insurance Plan (PCIP) to help people with pre-existing conditions get coverage. States may choose to administer the plan and the U.S. Department of Health and Human Services offers the plan in states that don't. To qualify, an individual must meet the following criteria:

• Individuals must have been denied coverage based on a pre-existing condition by a traditional health insurance provider.
• Individuals must have been uninsured for the past six months or longer.

Although COBRA coverage can be expensive, it is important to realize that it is available to most people who lose their job. This is especially important to those who have serious medical issues. However, you should also know that an individual health insurance policy is another option. If you lose your job, compare the costs of COBRA with the costs of buying an individual insurance policy. This will help you to make an informed choice about how to maintain health insurance coverage.
Sources

AIG Life Insurance

Fast Overview

American International Group, Inc. (AIG) is large insurance company that is headquartered in New York. AIG has additional offices abroad in London, Paris, and Hong Kong. Until 2008, AIG was one of the largest publicly traded companies in the United States and abroad.

Since September 2008, AIG has been featured extensively in the media. After almost 100 years of operation, AIG began to fail due to an inability to meet financial obligations to creditors. The company's failure began with its lowered credit rating that resulted in a liquidity crisis. Lenders perceived AIG as a risky business, and the company could not recover through loans and additional lines of credit.

In September of 2008, the Federal Reserve Bank offered AIG a bailout of $85 billion. The government received an equity stake with AIG in return. In simple terms, taxpayer dollars are currently helping AIG maintain its daily operations as the company continues to stabilize. Since the bailout, AIG has been subject to extensive media and public scrutiny. AIG employees even started receiving hate mail and death threats.
Since the bailout, AIG has continued to offer life insurance services. Even now, the business has been unstable: the company has gone through several CEOs, is selling its subsidiaries, and is experiencing net losses. In any case, AIG's life insurance products and services remain steady.

Benefits

AIG provides flexible options for individuals and insurance brokers with services that include a comprehensive product portfolio, marketing management tools, and constant product development for a variety of plans that include Term Life Insurance, Universal Life Insurance, Variable Life Insurance, and Whole Life Insurance. Policy holders select plans that match their financial objectives. For example, people might wish to invest their death benefits, or they may wish to designate beneficiary who receives a certain amount of cash. AIG's insurance plans may be used to cover funeral expenses. Even though AIG's business is undergoing a major overhaul, its available services remain steady and reliable.

How It Works

You can think of life insurance as a contract between an insurer and a beneficiary. When the policyholder dies, the insurance company will pay the beneficiary. The policyholder can purchase or receive life insurance in a number of ways. Some companies provide options for subsidized life insurance as a benefit to employees. People might also want to purchase life insurance policies to ensure that a family remains secure and stable. You can pay for life insurance on a monthly, quarterly, and annual basis.
AIG was able to offer a wide variety of life insurance options after acquiring American General Life Companies in 2001. At the time of acquisition, American General Life Companies had operated for over 75 years. This merger positioned AIG with the ability to offer life insurance services to corporations, associations, and individuals.
AIG provides specializes in five types of services for life insurance:

• AIG provides life insurance packages for institutions looking to buy plans for many members or employees
• Universal Life insurance allows policyholders to change premiums and coverage amounts as life situations change. The policyholder is always covered no matter how the life insurance plan adjusts. American General will issue benefits as long as the policyholder pays the minimum premium amounts.
• Unlike Universal Life insurance, Whole Life insurance remains the same throughout a person's life. You can plan for the amount that your beneficiaries will receive in the event of your death.
• Term Life insurance is in place for a certain amount of time. You can select packages that keep you covered for 10 to 25 years. With Term Life insurance, you can customize your package to buy only the insurance that you need. You can avoid paying additional premiums for life insurance packages that you do not need.
• Variable Universal Life insurance allows you to allocate your death benefit. You can choose to receive cash, or you can choose an investment package. You can also select a combination of both.

Cost/Pricing

Costs vary substantially based on individual needs and preferences. If you'd like to be insured for a greater amount, you will need to pay more. In general a $1 million policy will be more expensive than a policy for twenty thousand. If you are a company seeking to provide life insurance to employees, you can typically negotiate your rates. Your rates may vary by your company size and number of employees. If you are an individual, it is cheaper to receive subsidized life insurance by your company. Company subsidized policies can be free or of very low cost to you. If you are interested in purchasing life insurance through AIG, you should work with an agent or broker to review your options.

Timing

You can purchase a life insurance policy at any time. The best time is when people are dependent on you for money. If you are supporting a family or if you have debt with cosigners, you'll likely want to be prepared. Even if you are young, you should be responsible and assess potential financial impacts of your death. After an emergency, you do not want to leave your family or dependents suffering from additional financial burdens. Even though AIG is undergoing a major corporate overhaul, its available services are steady and reliable. If you are thinking of purchasing a plan through AIG, the best time to start your research is now.

Companies/Industries

AIG provides life insurance services through American General Life Companies. You can also learn more from AIG's corporate website.

How Much Life Insurance Coverage Do I Need?

Life insurance is supposed to make things easier for those you leave behind. It's designed to help pay for your final expenses, pay off your loans, make sure your children can go to school and help your family survive without your income. But how much insurance coverage do you need to have to make sure all of that is paid for?

Reasons For Coverage

The most common reasons to obtain life insurance are to cover the costs of:

• Funeral Expenses: Life insurance can pay for a funeral and burial and related expenses. Experts recommend budgeting for approximately $15,000.
• Loans: Life insurance can pay off debts such as mortgages, car loans and student loans so that loved ones do not have to carry the burden of these expenses. It is up to the insured to decide how much coverage to buy based on the amount of debt versus what a surviving spouse will be able to afford. There are online calculators to help with decisions about insurance coverage.
• Education: Life insurance can help pick up the cost of college education. Keep in mind that economic experts advise that the cost of college will increase about 5 percent each year so make sure to take this into account when calculating how much coverage you will need.
• Income Replacement: While your dependents may need supplemental income from life insurance to make up for your lost paycheck, they won't need 100 percent of your salary if debts, loans and educational expenses have all been handled.

How Much Insurance Do You Need?

There is no hard and fast rule for the dollar amount of insurance coverage each person needs because life circumstances differ greatly.
Many financial experts suggest coverage worth five to ten times your annual salary. Someone with no dependents might need a lot less insurance. Someone carrying large amounts of debt may need more.
Some financial advisers also believe in minimal life insurance coverage for the person who is not the primary earner in the family. It's important to remember that life insurance isn't strictly about income replacement. A stay-at-home parent may not be bringing in a paycheck that needs to be replaced, but if he or she died suddenly and the primary earner had to hire a housekeeper and pay for child care, the family's expenses would rise considerably.

When You Might Need More Insurance

Some life events may trigger the need for more life insurance. Kiplinger's financial data service notes that the following life events may warrant an increase in life insurance coverage:

• Getting married
• Having a child
• Buying an expensive home
• About to retire or leave your job - Many companies provide life insurance policies for their employees. Losing the company policy may leave a void that a personal policy must fill

Term Vs. Permanent Coverage

Term life insurance is the most basic form of life insurance. Term life policies are purchased for a set period of years. The policy expires at the end of the term whether death benefits have been paid or not. Families with small children often select term insurance policies for the number of years that those children will be dependents. Additionally, policies offered by employers are generally term insurance.
Permanent life insurance provides coverage for the lifetime of the covered individual. Because it does not expire, permanent life insurance is generally more expensive than term insurance. Additionally, permanent life insurance has an investment component to it which can fluctuate in value. The investment component can include stocks, bonds or money market funds. Many permanent policies will allow you to borrow against the value of the investment component.

Buying Life Insurance

The process of acquiring a life insurance policy requires a paperwork trail and patience. Providers generally require a medical exam before writing a policy. The exams are usually done by medical professionals who provide mobile services and meet clients in their home or office. The medical professional usually asks general health questions. The exam can often include blood work, urine samples and sometimes more sophisticated tests like EKGs and x-rays.
Providers look for markers of unhealthy lifestyles like tobacco or illegal drug use. They also want to pinpoint any conditions that could affect your life span.
The larger the policy and the older the applicant, the more tests they are likely to require.
Additionally, insurance companies share information about medical histories through a national clearinghouse.

How To Choose A Provider

There are many insurance companies underwriting life insurance policies. They offer different amounts of coverage at different prices. Providers also differ in the amount of fees and commissions they charge for a policy. Therefore, it makes financial sense to get more than one quote on a policy.
You also want to make sure you have selected a financially healthy provider for your coverage. After all, a life insurance policy is worthless if the company you have it with goes out of business. Standard & Poor's rates providers that offer insurance services on financial stability and the ability to payout policies and contracts.
Life insurance is an important part of estate planning. It's a way to make sure that your finances are in order and your death does not cause undue financial hardship to your family. Insurance comes in different forms and in different amounts. Selecting the necessary coverage requires a long, hard review of your expenses and debts and a practical view of how much money those you leave behind will need.

Thanks to candofinance.com

How To Get The Best Deal On Car Insurance

Auto insurance is not just an option, it is required by law. Before beginning your search for the best car insurance rates, it is important to know what is mandatory in your state of residence. Each state has a specific amount of auto insurance that its occupants are required to maintain. Once you have determined the amount of auto insurance that you need, you can begin shopping around. Here are some tips to help you get the best deal on car insurance.

Maintain A Good Driving Record

There are many factors that can influence your car insurance rates. One of the most prominent factors is your driving record. If you maintain a good driving record, your rates will likely be lower. Before you go shopping for insurance rates, obtain a copy of your driving record and make sure the record is accurate and up to date. Maintaining a good driving record includes:

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• Having had no insurance claims made.
• Having had no accidents.
• Having received no traffic tickets in the last 3 years.

Get Car-Specific Quotes Before You Buy

If you’re in the market to buy a car, be it new or used, call your insurance company and ask for quotes for the specific type of car you are considering before your purchase it. Insurance rates vary greatly for new or used cars and between various makes and models. Discovering your projected insurance premium may sway your ultimate car buying decision. Also, keep in mind that a car with certain safety features may lower your insurance premiums. Safety items that may influence insurance premiums include:

• Anti-theft devices
• Anti-lock brakes
• Tracking devices
• Air bags

Take A Defensive Driving Course

In some states, insurance companies offer discounts for drivers who have completed a certified defensive driving course. Spending a few hours learning safety tips and rules of the road may lower your insurance premium. Check your local library, department of motor vehicles or search the Internet for places that offer defensive driving courses.

Ask For Discounts

Many insurance companies give discounts for various reasons. Many people are not aware of this fact or don’t inquire about discounts that are available to them. Don’t be afraid to speak up and ask about discounts you may qualify for. Insurance companies offer discounts for several reasons including:

• Good driving record
• Customer loyalty
• Good student, maintaining a B average or better
• Driver’s education
• Multiple policies with the same company, such as home and auto
• Safety equipment
• Higher deductibles, the higher the deductible the lower the premium
• Group discounts through your employer or alumni association

Inquire About Top Tier Pricing

Insurance companies place customers into tiers based upon the probability that they will follow-up with a claim. Price wise, it is best to be placed in the top tier. Drivers placed into the top tier may save up to 15 percent on their auto insurance premiums. Insurance companies base top tier pricing upon factors including:

• Having had no claims or few claims in the last several years.
• Living in an area that has a relatively low car theft rate.

Check Insurance Company Websites

When searching for the best car insurance rates, don’t leave out the Internet. You may be surprised to find that your least expensive rates come from Internet websites. Insurers estimate a savings of approximately 5 percent on auto insurance rates when getting quotes from insurance websites. Many companies offer web only discounts, the reason being that companies have decreased transaction costs when operating online. This savings can be passed on to the consumer in the form of lower rates.

Consider A Higher Deductible

Aside from basic liability coverage, insurance companies offer comprehensive and collision coverage. Both services come with higher insurance premiums and your choice of deductible. Deductibles usually range from $250 to $1,000. A deductible is the amount of money you will pay out of pocket before your insurance company picks up the remainder of the repair bill. Typically, the higher the deductible, the lower your insurance premium will be. If your car is damaged in an auto accident, collision coverage will pay for repairs once you have met your deductible. Comprehensive insurance benefits pay for the loss of your vehicle due to factors other than a car accident including:

• Theft
• Vandalism
• Weather

Many people don’t shop around for car insurance. They continue to stick with the company they‘ve been with year after year. While this may be a good thing in terms of loyalty, you may be missing out on much cheaper premiums elsewhere. Do some research and you may be pleasantly surprised at what you find.


Thanks to candofinance.com

9 Tips On Reducing Your Health Care Costs

Health care costs are rising, and many people are feeling the pinch when it comes to paying their medical bills. Fortunately, there are some easy ways to reduce your health care costs. Try these tips to ensure that you’re not overspending on health care.

Use Preventative Services

Find out which preventative services your health insurance covers and take advantage of them. Even if you feel totally fine, you could be suffering from health problems without even knowing it. More importantly, you can find out if you’re at risk for certain costly health conditions such as heart disease, diabetes or osteoporosis. Many preventative services are offered under major health insurance plans and even if there’s a small co-pay it could be well worth it to you in the long run.

Buy Generic Prescriptions

What if your insurance won’t cover the cost of your prescriptions? You can often get a much more affordable drug if you look for the generic brands instead of the big-name brands. In many cases, these drugs are practically identical and will offer you the same benefits at a fraction of the price of the big-name prescriptions. Speak to your pharmacist to make sure that a switch to an off-brand drug won’t negatively affect your health or result in any unforeseen side effects.

Go To Doctors In Your Network

Insurance companies almost always have a list of doctors and hospitals which are in their network. Going to these health care providers will save you a lot of money compared to going to ones which are not in your insurance’s network. Always check with your insurance company to make sure a doctor or hospital is in your network before going there. In addition, it’s good to know which hospital in your insurance’s network is closest to your home and your work. If there is an emergency, it’s also good to know which hospital you’d prefer to go to if possible.

Use ERs Only For Emergencies

There are obviously certain situations in which a trip to the ER is absolutely necessary. But in cases where you could possibly wait until the next day to see a doctor or go to a local ambulatory care center or walk-in clinic instead, you should always choose to do so. ER costs are often astronomical compared to a visit to a doctor or a clinic. Check with your doctor to find out if they have an off-hours emergency line. You may be able to get input from them if you’re having trouble deciding whether to go to the ER or not.

Always Ask About Procedures

Many times, doctors will recommend tests and procedures in the best interests of your health even if they are not necessary. It’s important to find out whether a treatment or test is required and what would happen if you opted out of them. A single MRI can be a very expensive procedure even if you have health insurance so always make sure it’s necessary before undergoing expensive treatments or tests. In some cases, a doctor may offer different options that are more suited to your finances.

Keep Good Records

Always keep track of your medical bills over the course of the year. Come tax time, you may be eligible for some tax breaks depending on your situation. It’s not just hospitable bills that you need to keep either. Many other bills and health care expenses may qualify including x-rays, physical therapy, eye glasses, contact lenses, hearing aids and psychiatric care. If you’ve never received a deduction for health care costs before, you may want to consult a tax professional before adding these items to your tax returns.

Have Your Records Transferred

If you move or decide to start visiting a new doctor, make sure your previous doctors will transfer your medical records over to your new one. This can save you a lot of money since it usually eliminates the need for the new doctor to perform tests to assess your current health. Having your past records may also help them diagnose you faster without having to perform more tests or procedures. For example, dental x-rays are very costly so having your old ones transferred over can save you a bundle.

Only Buy OTC Drugs When Necessary

Many people rely heavily on over-the-counter (OTC) drugs. Though these drugs seem inexpensive and convenient compared to a doctor’s visit or prescription drug, the costs can quickly add up if they are overused. For example, if you have chronic headaches and constantly take Tylenol or Advil, you’re spending a lot to treat a symptom without finding the underlying cause. The same goes for colds and allergies. OTC drugs won’t cure these conditions, they just ease the symptoms.

Don’t Neglect Your Mental Health

Many people underestimate the impact that their mental health can have on their life. If you feel that you may be suffering from depression, anxiety or any other psychological issues, see your doctor as soon as possible. Taking care of these issues can save you a lot in the long run since those problems could lead to issues at work, in your marriage, etc. In many cases, your family doctor can prescribe mood stabilizers so that you don’t have to pay the cost of visiting a psychiatrist. Of course, if this doesn’t seem to help with your symptoms, it’s worth it to see a psychiatrist about these issues.
The next time you experience a health issue, think before you act. Taking time to do a little research, talking to your doctor or consulting your health insurance company before getting treatment could save you a lot of money in the long run.

Sources :
http://www.candofinance.com

Are work-related Injuries Covered by Individual Health Insurance?

Most health insurance companies do not cover work-related injuries. The main reason for that is a higher risk inadequate to the premium charged as well as duplication of coverage with Workers Compensation Insurance which is responsible for covering work-related injuries.
In most states employers are obligated by the law to purchase such insurance for their workers. Workers compensation covers mainly costs of medical care (hospital stay, doctor visits) and the loss of income due to work-related accident.

However, there are health insurance companies that offer coverage in case of an accident or illness being a result of work. Usually, they require a slightly higher payments and restrict some occupations with a higher risk of bodily injury such as: police officers, firemen or road workers. Among groups of those who are often covered are construction workers such as: painters, electricians, carpenters or even roofers.
If you're interested in an insurance policy that covers work-related injuries, all you have to do is fill out our quick form and we will contact you with insurance agents in our network that will help you choose the plan that best fits your needs. Always remember to double check if the work-related injuries are covered before signing the insurance contract.

HSA Insurance Plans and Health Savings Account Explained

HSA Insurance plan is a qualified High Deductible Health Plan (HDHP) featured with a tax-advantaged health savings account (HSA) administrated by a qualified bank or financial institution. Not all health insurance plans qualify for tax benefits included in HSA plans. To qualify, a medical plan must meet deductible, out-of-pocket limit, and HSA contribution limit requirements set each year by IRS.
The core of HSA insurance is that HDHP plans are to cover major medical expenses and health savings accounts are to fund minor eligible medical expenses such as office visits or preventive care services.

Eligible Medical Expenses

Internal Revenue Services defines a list of medical services that can be funded with contributions made to hsa accounts on tax-free basis. Some of them are hospital services, dental treatment, chiropractor, contact lenses, hearing aids, organ donors, psychiatric care, stop-smoking programs, wheelchair and more.
To be paid for, a medical service doesn’t have to be covered by your HDHP plan. In fact, some of them such as contact lenses or eyeglasses are rarely included in individual or family health insurance policies. After buying an HDHP and opening HSA you can pay for health care using a debit card or checks provided by your hsa administrator.

How do Health Saving Accounts and HSA Insurance Plans work together?

HSA insurance works almost the same way catastrophic health insurance does. You pay for medical expenses up to your out-of-pocket maximum including the deductible. After they are paid, your insurer starts to cover health care services.
The main difference is that HSA plans are enriched with the tax benefits if you do contributions to a health savings account and then use them to pay for eligible medical expenses. Any health insurance plan that meets IRS HSA requirements can qualify for tax advantages.

For 2010, HSA requirements are as follows:

For individuals:

• $1,200 minimum deductible
• $5,950 maximum out-of-pocket limit (including deductible)
• $3,050 maximum contribution limit*

For family:

• $2,400 minimum deductible
• $11,900 maximum out-of-pocket limit (including deductible)
• $6,150 maximum contribution limit*

*If you are over 55 years old, you can make additional "catch-up" contributions just like in IRAs. For 2010 the catch-up contribution limit is $1,000.
Each year the above hsa insurance requirements are adjusted by IRS to current economic situation and inflation.

How does a health savings account work?

• You deposit money into the hsa in the amount allowed by IRS in a given fiscal year. The maximum amount of money that can be deposited is the hsa contribution limit. Contributions to health savings account can be made in a lump sum or any amount. Also, there is no obligation as to the frequency of deposits. You, as the account holder, are in the control of the account and the money on it. HSA Contributions can be invested in stocks, mutual funds or other investment vehicles of your choice.
  
• You use contributions to pay for the eligible medical expenses on tax-free basis. Any unused contributions roll over to the next year.

HSA Tax Advantages

• Tax-Deductible Contributions - Deposits made to HSA accounts are tax-deductible. They are deducted from your Gross Annual Income on IRS Form 1040. That means that your taxable income is lowered by the amount of money deposited into the HSA.
• Tax-Free Withdrawals - If the money collected on the account is used to pay for hsa medical expenses, it is not a subject to income tax. However, if the hsa contributions are use for non-eligible medical expenses such as mortgage or rent payments, it is taxed. If you’re are under the age of 65 you would also have to pay additional 10% penalty.
• Tax-Deferred Interest Income - The interest earned on unused contributions over the years is not taxed unless withdrawals are made. As soon as you withdraw the money, it is a subject to income tax in a fiscal year the withdrawal was made.

Catastrophic Health Insurance

Also known as Hospital Health Insurance or High Deductible Health Plan (HDHP), Catastrophic Health Insurance is an affordable option when buying a medical plan. Catastrophic plans are designed to cover major medical expenses while leaving minor health care costs to insureds. It covers hospital care including stays, treatments, emergency room services, and surgeries related to accidents and serious illness such as stroke, heart attack, or cancer.

Typical Catastrophic Health Insurance Features:

• high deductible ($2,000 - $5,000)
• high coinsurance (80/20 - 60/40)
• high out-of-pocket limit ($1,000 - $4,000)
• no copayment for office visits – you pay for the expenses from your own pocket
• no coverage for preventive care services – you pay for common tests, immunizations, or gynecological care
• no coverage for prescription drugs

However, there are catastrophic health plans that may include some of the above health insurance coverage. For instance, the plans may cover some of the routine care services such as Pap smear for women. It is also common to find a plan with co-payments for prescriptions or doctor visits.

High Deductible Health Plan Pros and Cons

Pros:

• Lower premium. More people can afford a catastrophic plan in contrary to traditional health insurance.
• Lower premium increases. Health insurance companies increases their premiums almost every year mainly dueto sky-rocking health care costs. Since catastrophic health plans are cheaper so are the premium rate-ups.

Cons:

• You have to pay for all medical expenses until your out-of-pocket limit is met. With high deductibles and coinsurances, the medical bills you may be responsible for in a given year can reach thousands of dollars.
• People with high-deductible plans tents to give up on preventive care services. Since the routine care is not usually covered under HDHP plans, people try to avoid additional costs and don't check their health regularly.

How much is Catastrophic Health Insurance?

Catastrophic plans' cost as most health insurance plans’ depends on many factors such as your age, zip code, gender, the plan’s deductible, coinsurance, and out-of-pocket limit. The younger you are the more affordable you health insurance can be. The higher your out-of-pocket maximum the less expensive your medical plan is. All the variables affect health premiums.
Choosing a catastrophic plan is just one of many ways to reduce health insurance costs. Usually you can save you between 20 and 40%. A young person can pay as low as $70 monthly for a plan with $2,500 deductible, 70/30 coinsurance, and $3,000 out-of-pocket maximum. Catastrophic plans usually have the same lifetime benefit as other medical insurance plans. Lifetime benefit usually ranges between $3,000,000 and $5,000,000.

Who should buy HDHP Plans?

Catastrophic plans are for everyone who can afford to pay for minor medical expenses but can't afford comprehensive health insurance. High-deductible plan is better then no plan. Most people can afford to pay for office visits but will not be able to cover expensive surgeries or hospital stay costs. Sometimes it just makes no sense to buy a low-deductible plan or plan with co-pays for office visits and never use them. High-deductible plans are health insurance plans for large medical expenses to cover serious illnesses or injuries resulting from accidents.

How do Catastrophic Health Insurance Plans work?

By choosing a high deductible insurance plan, you decide to cover all medical bills up to your deductible plus coinsurance if any. When medical expenses in a calendar year exceed your deductible, then your insurer covers 100% of the remaining costs or a percentage of it. If your company covers a percentage of the costs after deductible, it means that the plan has a coinsurance option which rate usually is between 80/20 and 90/10. Coinsurance is healthcare cost sharing between you and your insurer. It stops after out-of-pocket limit is met. For instance 80/20 means that your insurer pays 80% and you the remaining 20%.
Example:

Let's assume that you have a plan with $2000 deductible, 80/20 coinsurance, and $1,000 out-of-pocket limit (deductible excluded*). If the cost of medical care in the given year is $100,000, you pay only $3,000, and your insurer pays the rest - $97,000. Where did that come from? Your deductible is $2,000 so you pay it in full. Next, you share the remaining costs with your insurer (coinsurance) up to your out-of-pocket limit, which is $1,000. This means that you pay 20% of the remaining costs until you spend another $1,000.

*some health insurance plans include deductible in out-of-pocket limit
The above example is only a simple illustration on how catastrophic plans work. It is not to be considered as a rule to all plans of this type. For details on your plan please talked to your agent.

Catastrophic Health Insurance Alternative

If your catastrophic plan has a deductible high enough to qualify for Health Saving Account HSA plan, you may even save more money. HSA plans allow you to put aside money into an HSA account on tax-preferred basis.  Any money withdrawn from this account to pay for eligible medical expenses are tax-free. Learn more about Health Saving Accounts.

Your Health in your Hands

Choosing the right health plan can save you a lot of money and protect your assents in case of high medical expenses. Choosing to cover preventive care costs, doctor visits, and prescription drugs will reduce your insurer's financial responsibility; however, in return, you will pay lower insurance premium. If you can afford to cover these costs, you may want to buy catastrophic insurance. The first step is to fill out our quote form to compare health insurance quotes from multiple providers.

Difference between Coinsurance, Deductible, Out-Of-Pocket Limit, Copayment and Premium

Health Insurance Terminology

Health Insurance as any other type of insurance has its own terminology without which an effective health insurance comparison cannot be done. Below we explain some of the most important health insurance terms so you can make a smart and educated decision when choosing a medical plan.
All of the terms are costs of having a health insurance policy. Most of them are paid only when using healthcare services. The only cost which you have to pay, regardless of using medical services is premium.

Premium

Premium is the amount of money you have to pay for insurance. Premiums are usually paid in monthly or quarterly installments.
Choosing a medical plan that fits your needs and budget is based mostly on balance between deductible, coinsurance, and out-of-pocket limit. All of the three affect your health insurance premium. In general the higher they are the less expensive your health insurance is.

Health Insurance Deductible

Deductible is the amount of money you pay for eligible medical expenses in a calendar year. After deductible is met, you pay nothing or you share the remaining costs with you company up to out-of-pocket maximum.
Deductibles may vary depending on whether medical services are received in or out-of-network. In some cases, services received in medical facilities out of your providers’ network are more expensive and fall under a higher deductible.

Coinsurance

Coinsurance is a health care cost sharing between you and your insurance company. The cost sharing ranges from 80/20 to even 50/50. For example, if your coinsurance is 80/20, that means that your insurer covers 80% of annual medical expenses and you pay the remaining 20%. The cost sharing stops when medical expenses reach your out-of-pocket maximum, which usually is between $1,000 and $5,000. If your medical expenses in a calendar year excess out-of-pocket limit, then your insurer covers all the remaining costs.
There are medical plans with coinsurance 100%, in which case all the medical expenses are covered by insurer after the deductible is paid. Coinsurance rate may also vary in and out of your health care providers’ network. Usually it is higher when going out-of-network.

Out-of-Pocket Limit

Out-of-Pocket Limit (also known as Out-Of-Pocket Maximum) is the maximum amount of money you may pay for medical services in a calendar year. Out-of-pocket limit may and may not include deductible depending on insurers’ definition of the term. The maximum amount of money you may spend for health care services also may vary whether they are receive in or out-of-network.

How deductible, coinsurance and out-of-pocket limit affect health insurance premium?

The more you’re willing to pay out of your pocket the lower health insurance cost is. The higher your deductible, coinsurance rate, or out-of-pocket limit the more affordable health insurance is. It’s as simple as that. Learn more about other factors that affect health premiums and how you can manipulate them to reduce health insurance costs.

Copayment

Co-Payment or Co-Pay is a fee you pay for doctor's visit. Copayments may also vary depending on whether you seek a medical help in or out-of-network as well as on doctor’s specialty. It usually ranges between $10 and $40.

How a typical health insurance plan works

Below we present a simple scheme of health care costs sharing between insured and insurer. The example plan features: $1,000 deductible, 80/20 coinsurance rate (up to $5,000**), $1,000 out-of-pocket limit (deductible excluded), and $20 copayment.  The example assumes seeking health care services within your company providers’ network. It shows the cost sharing from the insured’s point of view.

* excluding some doctor visits, which may be covered by $20 copayment
** insurance company pays 80%, and you pay 20%.
The above example is just a simple illustration created in order to give you a better understanding of health insurance. In reality, your policy can have different deductible, co-insurance, or co-payment. If you're not sure of how your medical plan works please contact your company or agent.

Ways to Save on Health Insurance Costs

Everyone wants to make sure that they are paying the least amount of money in premiums for the greatest possible amount of health insurance. Here are several tips that you can use to make sure that your premiums aren’t too high, or that your coverage isn’t too extensive.

1. Compare health insurance quotes. Insurance rates between different companies can vary widely. The more quotes you can compare the better your chances of finding an affordable medical plan. This is the most effective and fastest way to save on health insurance expenses.
2. Increase your out-of-pocket limit. Choosing a catastrophic health insurance plan with higher deductible and coinsurance limit can decrease you monthly payment significantly. If you can afford to pay out of pocket for smaller medical costs like the occasional copayment or items such as eyeglasses, corrective shoes or routine checkups, then doing so can greatly reduce your premiums. This still leaves you covered when it comes to the unforeseen health events that are often the most expensive to deal with. A higher deductible also met in Health Saving Account (HSA) plans will lower your premiums but at the same time will also increase your financial responsibility if anything bad happens to you or your family member.
3. Consider living in suburbs. Health insurance rates greatly depend on the area you live in. Insurers charge higher premiums for those who live in big cities in contrary to people living in small towns or villages. Living in a city is exposed to higher health risks. The likelihood of having a heart attack or being involved in an auto accident is lower in less populated areas.
4. Take a careful look at the insurance provided by your employer. Many individuals take the path of least resistance and simply sign up their entire family for the health insurance offered at their workplace. But did you know that many companies won’t cover premiums for anyone other than the workers themselves? This can add up to expensive additional costs for each dependent listed on the policy. If you need to take care of more than just yourself in terms of health insurance, then it can often pay to look elsewhere for coverage. Careful shopping of individual health insurance plans for family members can leave you with more money in your pocket.
5. Investigate government health insurance programs. Don’t assume that because you are making a decent salary that you don’t qualify for free insurance or a substantially discounted rate on your health coverage through government programs. If you’re seriously sick or recently have been a victim of stroke or cancer, changes are that you might be declined individual health insurance coverage by private insurers. In such cases, it pays to check with your state if their health assistance plans cover the pre-existing conditions you might have.
6. Change your lifestyle. If you have any risk factors in your life that could set the stage for ill health – such as smoking or obesity – making positive steps to change towards a healthier lifestyle can definitely reduce your insurance premiums. Smoking increases your health insurance premium even by 50% depending on your age and medical plan you have. Participating in a wellness program through your company or a local gym is a great way to prove to your insurer that you are actively managing your own health.
7. Don’t pay for options you don’t need. Your insurance company might be charging you greater premiums for options like being able to choose any doctor you want – which isn’t really all that useful if the doctor you prefer is already on their list of healthcare providers. See if you can knock down your costs by limiting your ability to browse a wide number of doctors. At the same time, make sure that the doctors you prefer are covered by your plan and that you aren’t being hit with extra fees as a result of them being outside the insurer’s network.
8. COBRA. When you leave your job, it’s possible to continue the health coverage you were receiving through your employer by paying into a COBRA plan. However, if you have no health problems, you might actually get a better deal through a private insurer, so it pays to shop around when your employment circumstances change.

Now that you know the different saving tips, use the most effective one - compare health insurance quotes from multiple companies and see how much you can save

Types of Health Insurance Plans

There are many different types of health insurance – so many, in fact, that it can seem like a jungle of choice, especially when trying to decide which type of coverage fits you best and is the most affordable to you. Let’s take a look at some of the most common health policies available and what makes them appealing.

When looking at health insurance, you can put almost every policy out there into one of two main groups: Managed care and Traditional care.
Managed Care Insurance

This type of health insurance has grown in popularity largely as a result of the soaring cost of medical services. Insurance providers prefer managed care as it allows them to reduce their own costs, and so they have created a number of different managed options in order to appeal to the widest possible spectrum of customers. Along the way, this type of insurance has become the most popular form of health coverage. The primary hallmarks of a managed care policy include the use of a specific network of medical practitioners that policyholders are required to use in order to obtain maximum financial benefit from their plan.
Preferred Provider Organizations

Preferred Provider Organizations or PPOs are notable for the fact that they entice customers to stay within a defined network of doctors and healthcare providers by keeping the fees associated with medical services low. There is a variety of tools used to do this – in-network doctors might have low co-pays and no paperwork involved, while seeing a professional outside the network forces policyholders to pay up-front and then file a number of forms in order to be reimbursed. The cost and hassle of dealing with healthcare providers outside the network are designed to keep you in line with the insurance company’s preferred medical options.
Point-Of-Service

A POS plan is very similar to a PPO – you are still covered if you choose to leave the network of providers, but the costs and paperwork involved will most likely be greater. There is also the extra wrinkle of a Primary Care Physician, a doctor in your network who essentially handles all of your referrals both in and out of the insurer’s list of preferred care providers. If you refer yourself, be prepared for extra fees, and going out of network will also most likely incur a deductible.
Health Maintenance Organizations

HMO’s are a well known fixture of the managed care world, as they are commonly found in group plans such as what you might encounter at work. HMO’s strike a particular deal with policyholders – in exchange for a small co-payment and a low-hassle experience, HMO’s will provide care within a rigidly defined group of doctors. This helps keep premiums quite low, and can in fact completely eliminate co-pays altogether.

Members of HMO plans must seek healthcare services in HMO network. Services encountered out-of-network are not covered with a few exceptions such as emergency situations. In and out-of-network emergency room visits may require clearance from the insurance company depending on an individual situation. You must choose a primary car physician who then refers HMO members to specialists. You can’t refer yourself to a specialist. You have to receive an approval from the first-contact doctor.
Traditional Care Insurance

Traditional health insurance works in much the same way as car insurance or home insurance. They are designed so that the policyholder pays a certain premium each month for a certain level of coverage from an insurance company. This is usually combined with a deductible, with the insurer paying a percentage or the entire bill that is left over once the deductible is paid.
Fee-For-Service Traditional Care

Most traditional health coverage is now known as fee-for service insurance. The concept is preferred by those who appreciate the freedom that this type of insurance affords them – policyholders are free to choose which hospitals, doctors and healthcare services they want to use. There are also no restrictions on how many times you can go to see a doctor or specialist, letting you get as many opinions as you need. Insurance companies usually insert a few controls into the mix in the form of requiring permission for certain types of emergency room visits, for example. Preventative checkups, examinations, and tests are also usually excluded from coverage.

There are, of course, a few downsides to fee-for-service health insurance. Deductibles can be high, sometimes measured in thousands of dollars. Managing the up front costs of this type of insurance can be expensive, especially if you are required to wait for reimbursement from your health insurance provider. Insurers also often only pay out according to an established fee schedule, where certain types of care are associated with specific maximum fees. Some doctors that you see might charge more than the insurance company is willing to cover, leaving you to make up the difference out of pocket. While the majority of health insurance companies establish a limit when it comes to the maximum amount you will have to pay on your own, this limit can be quite high.
The best health insurance type

It is not easy to say which type of health insurance is the best. Each one of them has pros and cons. It all depends on your individual needs and budget. If you would use price as the only criteria when choosing a medical plan, then HMO would be probably a cheaper way to go due to its limitations such as the requirement of using health care services in HMO network. On the other hand, since HMO network usually has a shorter list of specialists then PPO’s, you might have to wait a long time before seeing the doctor. PPO and POS plans offer a bigger flexibility when choosing an out-of-network specialist but they are usually more expensive.

In order to find a medical plan that’s right for you, it's worth the time to compare health insurance quotes from several companies and choose the right one. The comparison should include not only rates but also the plans features.