Saving You Money For Life

Should every child in New Mexico have health insurance? That’s the question that the Richardson administration is asking lawmakers to answer in their recent proposal for health care reform in the state. The proposal allocates $58 million a year to allow 50,000 children in New Mexico health insurance coverage who are at this time uninsured.

This proposal comes right after a proposal for universal healthcare for all was placed on the table during the regular session. Lawmakers were not enthusiastic to cover the 400,000 people in the state who are not insured, so the governor came to the special session with mandatory health insurance for children. And though the universal healthcare plan was a no go, Human Services Secretary Pam Hyde stated that coverage for New Mexico’s kids is “doable.”

The new proposal makes health insurance mandatory for all kids under age 18 through public or private programs and will make proof of insurance necessary before a child can start school or be enrolled in childcare. Also, for those who are uninsured, a targeted outreach program will be installed so that families can obtain health insurance. The program will send a statement to parents that children need to have health insurance and that different options are available.

What do you think? Is required health care for children a good idea? Will it help the situation?

Tags: Health Insurance, Legal News and Info
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U.S. Representative Don Cazayoux recently announced the proposal of new legislation that will help owners of small businesses provide health insurance to their employees. The legislation is known as the Small Business Health Options Program or SHOP Act, and it will create a health insurance plan that will stretch across the nation and provide coverage for those who are self-employed and for small businesses.

Or at least that’s the hope. How it will work in practice and where the funds will come from to provide this coverage, those details are still a little hazy at this point, but I’m excited to watch and wait and see where this discussion and the proposed legislation ends up. It’s clear that this country is in need of some drastic changes in the area of health insurance coverage and as self-employment grows and new small businesses pop up every day, it is of vital importance that this be addressed sooner rather than later.

28 million Americans are uninsured and are small business owners, their employees and dependents. Since health care costs have skyrocketed in recent years, many small business are paying an average of 18 percent more than large corporations if they are able to afford health insurance at all. It’s a situation that shouldn’t be ignored any longer.

Tags: Health Insurance
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According to the Insurance Information Institute, seven of the 10 costliest hurricanes in U.S. history have impacted Florida, and seven of those top 10 storms occurred within just two years.

Florida accounted for 22 percent of all U.S. insured catastrophe losses from 1980-2006, which equated to $57 billion (in 2007 dollars). Florida’s 10 costliest storms and total insured losses during that period were:

o        Hurricane Andrew (1992) – $22.2 billion

o        Hurricane Wilma (2005) – $8.9 billion

o        Hurricane Charley (2004) – $8.2 billion

o        Hurricane Ivan (2004) – $4.7 billion

o        Hurricane Frances (2004) – $4.7 billion

o        Hurricane Jeanne (2004) – $3.3 billion

o        Hurricane Opal (1995) – $1.9 billion

o        Hurricane Dennis (2005) -  $907.7 million

o        Hurricane Katrina (2005 – $576.5 million

o        Hurricane Erin (1995) – $476.2 million

Buying a life insurance policy is important, but if you live in Florida, buying flood insurance is vital.

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In this time of economic strife, insurance is especially important, namely term life insurance. This type of insurance can be invaluable for families with little disposable income after a family member dies.

Most experts agree that when deciding on the terms of a term life policy, the value should be at least 10 times the amount of your gross salary. Of course, this is a generic advisement, but if you can afford it, 20 times your annual salary can keep your family’s lifestyle at the same level as they were before your loss.

When buying life insurance, certain other conditions should also be taken into consideration such as any pensions that will be received as well as social security benefits that the survivor will collect. In addition, a mobile or portable life insurance policy is of vital importance so that you can take the policy with you if you were to lose your job or change careers.

As for other kinds of insurance that are must-haves in a declining economy, individual disability insurance can be imperative in the event that you become disabled and can no longer work. Usually larger companies provide this type of coverage, protecting your income and allowing you to receive 65 percent to 70 percent of your salary. However, after taxes, the actual income you will receive is closer to only 45 percent, so keep this in mind when you consider whether or not your coverage will realistically support you in time of crisis.

Any other recommendations on essential insurance policies for an economy heading into a downturn?

Tags: Disability Insurance
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Don’t mess with Hurricanes. These violent storms whip up winds anywhere from 74 to 200 mph. They also churn up huge waves and torrential rains that can cause flooding and devastation, not just along coasts, but hundreds of miles inland as well. We see this recently with Hurricane Fay.

We’re in the midst of hurricane season which usually runs from June through November.   So, what should you do if a hurricane is headed your way?

(more…)

Tags: Home and Auto Insurance
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Can you really afford low-cost health insurance? Many would reply “yes” since it is marketed as being affordable. But many do not think of the long-term effects of programs that claim they offer “health insurance that you can actually afford.” The idea is that those who have no insurance or those who have been turned down for health coverage can receive coverage without being pre-approved and with low premiums, in some cases as low as $160 for individuals and $260 for families.

Is this just too good to be true? It could be. It is very important to understand exactly what you are getting out of the coverage and to understand what your maximum contribution will be. These plans are limited and should not be considered efficient for everyone since they can end up costing a lot more if you need care that is expensive. For instance, if you need high-priced hospital care, you may end up with a bill that is a lot more than you bargained for.

So are these plans worth it? For some people, they could be but be cautious. Make sure you know exactly what is covered and what isn’t. Lower premiums usually translate into high deductibles and less coverage. But though this type of coverage may not be the right choice for everyone across the board, those who endorse them claim that they are better than having no health insurance at all.

What do you think? Are low-cost health insurance policies worth the investment?

Tags: Health Insurance
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It’s that time again. In fact, I sent my son off to college just last week.  It’s an emotional and hectic time.  Not only should you remember to pack just about everything, you should also consider your changing insurance needs. The National Association of Insurance Commissioners (NAIC) offers these tips to help you review and update your insurance policies to cover your college student.

Health Insurance – Most health insurance policies cover dependents who are full-time students until the age of 23. Generally, a student must be enrolled in at least 12 credit hours per semester (six or nine credit hours in the summer) to be considered a full-time student. Individual policies differ, so check with your health insurer or benefits administrator about how the policy defines a full-time student and the maximum age of coverage.

Know Your Policy – Before leaving home, make sure your student has a copy of the relevant insurance cards and knows about obtaining referrals and approvals (if necessary) before seeking treatment. If you are insured by a health maintenance organization (HMO), check to see if your student will be outside the HMO service area while away at school. If this occurs, the student likely will have coverage for emergency care, but might have to travel to a physician or hospital within the HMO service area for routine care. If your insurer is part of a preferred provider organization (PPO), your insurer may pay benefits at out-of-network levels if you are outside your network. Check your plan provisions or speak with your insurer to find out what level of benefits are provided by your policy.

Your child does not need a life insurance policy, but now would also be a good time to review your existing life insurance policies to make sure you’re adequately covered.

Tags: Life Insurance
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A new insurance option may be put on the table for California motorists in the future. State legislators and California’s Department of Insurance are currently discussing a “pay as you go” type of automobile insurance for consumers. This coverage will be determined by the true mileage and will provide drivers who drive less to receive a break in their yearly premiums.

The new bill is sponsored by Jared Huffman and is universally supported by insurers. Assembly Bill 2800 (AB 2800) is a concern by consumer advocacy groups. These groups believe that the bill allows for unfair discriminatory ratings for motorists and will invade the privacy of the consumers who support it.

The basic idea of the new bill is to motivate California residents to drive less and hopefully that will reduce the amount of carbon emissions that pollutes the air. But wow! It’s a great incentive for everyone! Those who feel they can’t afford insurance might be encouraged if the bill was lower. California is often a trendsetter for forward thinking policies. Keep your fingers crossed that they not only implement this new pay-as-you-go plan but inspire other states to follow suit.

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Here are some money-saving tips:

-          Find a Web site that asks detailed questions.  Look for lots of questions about blood pressure, cholesterol, medical conditions and family history.  Steer clear of sites asking only about your height/weight, age, gender, state of residence and smoking status.  The most accurate come from detailed information.

-          Be truthful about your medical history.  The life insurance quote is only as good as the information collected so there is no need try and misrepresent yourself.

-          The lowest price may not represent the best value.  Life insurance is not a commodity product and one size doesn’t fit all.  There are significant differences in quality and product design.

-          Shop for top-rated life insurance companies.  Life insurance companies are rated on financial stability.  Look for a rating of A or better.  Check independent rating services such as A.M. Best or Moody’s, found online or in the library.  (AccuQuote only sells companies rated A or better.)

-          Look for a Phone Number.  Bargain hunters may like the Internet’s speed, but the truth is not everyone can qualify for the industry’s rock bottom .  Call and ask what’s best for you.

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A California company that sold life insurance to military personnel was found to be in breach of a set of rules set up in Georgia.

In 2007, Georgia state implemented regulations to prevent companies from selling life insurance that was unsuitable to the consumer purchasing it or could be misleading to persons attached to the military.

The California company that was banned based on this Georgia regulation is Trans World. John W. Oxendine, the Insurance Commissioner, explained that the company was not only unable to conduct business in Georgia any longer, but that they were required to pay a $214,000 fine as well as pay back the service members who paid for the policies in question.

This wasn’t just a onetime thing. According to Oxendine, Trans World broke Georgia law close to 200 times in six months.

Georgia set the necessary rules after concern was voiced that many insurance companies exploited military consumers and roped them into buying unnecessary or unsuitable insurance products. And Georgia is not alone in setting up rules to help protect those in the service from such unscrupulous practices; other states have these laws as well.

What do you think? Was the fine heavy enough? Can more be done to protect consumers against companies selling us unnecessary products?

Tags: Legal News and Info
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