Insurance

Do Young Adults Need Life Insurance?

Life insurance is not always a topic in which families take a moment to sit down and talk about. It is almost a taboo subject; a horrifying prospect for parents, and young adults tend to think death only happens to the old. Life insurance can greatly aid families in this time of grief. Those that have the added stress of financial complications struggle more through this difficult time, something that can be avoided. Families can feel secure that they can provide the best service for their passed loved ones without financial burden.

young adults life insurance

Young adults also tend to think they can wait until they find a job, in which the employer will provide them with life insurance as an added benefit; however, while those types of life insurance policies are helpful they usually do not give quite enough coverage. A little research will quickly show life insurance companies can easily assist young adults in finding the right policy to fit their needs and lifestyle.

There are many other advantages to a young adult acquiring life insurance besides the financial assistance and peace of mind for family members and loved ones. Applying for life insurance is easier when you are young and in good health, options for different policies are broader and chances of being accepted into them greater. Also keep in mind the younger the applicant the cheaper the policy can be with a greater pay out.

A benefit of a policy that has a larger pay out is the ability to help with the future of college loans for children, payments for mortgages and paying off any debt that may have been accrued. A life insurance policy is an essential in assisting families and having security that they will continue to be taken care of after one is gone.

Another added benefit of a young adult obtaining a life insurance policy is contribution to a retirement fund. Some life policies offer a broad range of products including a nest egg for retiring, buying a home or paying off a large debt. One way a policy like this works is, the insured individual pays a monthly amount that is then invested by the company. The money earned on the investments are allowed to be used by the insured in anyway they so choose, it is a great to have money aside for a retirement fund.

In reality no one wishes to ever use their life insurance policy early; however by remembering it is truly for the long term benefit of family, the decision becomes clear. A young adult can acquire a better policy, have more security for their family and even have security for themselves in retirement and creating a nest egg. Realize by speaking with a young adult about life insurance it is not only about the uncomfortable topic of death but, a smart choice for an individual to ensure peace of mind for themselves and loved ones.

How do I Pick My Insurance if I Have a Choice at Work

Choosing a health plan at work can be confusing and often overwhelming. The specifics will vary with each employer, but there are ways employees can evaluate their options to find their best mix of cost and coverage.

Picking Insurance

Cost
Cost for the employee falls into two categories:
1. Up-front premiums.
2. Charges at the time of service.

The premium is the amount taken out of each paycheck for the employee’s share of the insurance company’s charge for the plan. Most employer plans are designed so that premiums are deducted pre-tax, meaning the employee saves on federal income and Social Security taxes and possibly also state income taxes.

Charges at the time of treatment are the out-of-pocket amounts patients must pay to receive medical services. Co-pays, deductibles, and co-insurance can vary a lot depending on the chosen plan and services used. In evaluating this factor, the employee must remember that, under healthcare reform, any service designated by the federal government as preventative should be provided at no charge to the patient.

The cost factor in choosing a plan often comes down to balancing higher premium cost against lower charges for treatment and vice versa. But this relationship between premiums and out-of-pocket does not always hold because of the variable of coverage.

Coverage
Depending on plan design, coverage will vary among plans in multiple aspects:
1. Is a service covered at all?
2. Is there a cap on the service (number of visits, frequency of tests, etc.)?
3. How much flexibility does the patient have in choosing the provider or opting for a procedure?
4. How often are referrals and preauthorizations required?

Don’t assume a service is covered by all plans just because it is covered by one. If an individual plans to use a particular service, she should review all the plans she is considering to make sure coverage is available for that service.

Perhaps the service is covered but the plan puts a limit on the number of visits. The employee should compare any such limits with his anticipated use of the service. If the plan will not cover his full utilization, the employee must determine if, for him, the extra out-of-pocket expense is worth the service or if another plan is the better approach. Depending on the employer, the employee might also have options such as a Flexible Spending Account (FSA), a mechanism for the employee to set aside pre-tax dollars to use for any medical expenses not covered by insurance.

As a general rule, the more flexibility the patient has to choose doctors and services without getting a referral or preauthorization the higher the premium cost. Plans can range from the HMO, which requires all medical services be arranged through a primary care physician, to a traditional indemnity plan, which places almost no restrictions on where the employee can seek care. The employee must look at her own situation to decide how much choice and flexibility she is willing to pay for relative to the other factors.

What is an Annuity Contract?

An Annuity Contract is a type of investment or financial product in which the investor or purchaser is expected to receive a certain amount of returns or profit in a future date. Any person or company can avail of this product, most especially people nearing retirement. Like any contract, an investor is bound to pay a certain amount over a period of time and expect a payback period for the investment. Depending on the kind of Annuity Contract, a guaranteed income or a risk of variable income or loss are associated with the investment.

Annuity Contract
Always be careful when signing contracts

 Kinds of Annuity Contract

A long term investment of Annuity Contract is called deferred annuity. In deferred annuity, the investor or company pays the purchase price and the repayment of income begins after the year of retirement. The investor or purchaser can either take the amount in lump sum or over a longer period. A predetermined annual yield is paid back over a period of time, this is called fixed rate of deferred annuity. The other type is variable rate, wherein the basis of pay increment is the performance of the investment.

How to go About Investing in Annuity Contract and the Benefit it will yield

Like any investment, there are benefits and risks involved. Depending on the type of annuity contract being purchased, there will be risks and benefits play. For those who love to play the investment game, the greater the risk of investment, the greater the yield or increment of investment involved as well as the risk of loss. But for those who prefer not take the risk and stick with the predetermined increment of investment, that could be a particular choice as well.

Reaching the retirement age is the best time to invest in annuity contract, since people reaching the age of 50 would have full understanding of financial processes and the money to invest. There listings of insurance companies that offer this product. Being unsure of the company to invest is common; in order to make things easy, an agent can handle the insurance need. The beneficiary must be taken into consideration as well since the future is unpredictable.

And lastly, whether the agent has full knowledge or has good arrangement for your annuity contract investment, it always pays to check and verify other companies so that a comparison can be made.

Should I Use a High Deductible Health Care Plan?

Expenses for medical services can be very costly these days. For a person to go without health insurance is a dangerous financial risk. If a major illness or accident occurs a family can find themselves facing enormous medical bills. Medical expenses quickly add up and the inability to pay them can wipe out someone’s finances entirely. Many hospitals refuse to see patients who are uninsured unless it is a dire emergency.

At this point the patient is usually just stabilized for transport to another hospital that accepts the uninsured. Often people choose to take the risk of going without insurance because they think that they will not be able to afford the insurance premiums. Or they simply choose to take the gamble of going without health insurance because they are normally healthy and seldom need to seek medical care. Most health insurance policies offer many different packages to fit a variety of budgets. Health insurance deductibles affect the amount required for the premium, choosing a higher deductible will result in a lower premium.

This option is better than having no insurance at all. With a higher deductible a person has more out of pocket expenditure initially; however once that deductible is met the insurance will then cover whatever portion of the expenses they are required to pay. The insurance policy will specify the exact amounts of the deductible, what procedures are covered by the insurance, and what portion the insurance will pay. Most people are surprised to find out how quickly they can meet their deductible within a few physician office visits. If a major illness strikes and hospitalization is required that deductible could be met in as little as one day. A bill for the deductible amount is going to always be a better option than having to pay the entire bill for a hospital stay out of pocket.

One benefit to having a deductible is that a person knows exactly what amount they will be responsible for paying. There will not be any big surprises because they know what to expect. For people living paycheck to paycheck surprise bills can really throw off their budget. By knowing the exact amount required to meet the insurance deductible they can plan accordingly. High deductible plans are a great option for those looking to save money on insurance premiums and most people are in a safe position to take advantage of these savings.

People with chronic illnesses such as diabetes might find it more beneficial to go with a lower deductible, however for those who are generally healthy there is no need to pay a high premium for insurance that they may not even use.

Another benefit to having a high deductible is being a healthier person. Knowing that they have a high deductible often encourages people to take better care of themselves to avoid getting sick in the first place. This is a win-win situation, they are saving money on their health insurance premiums while getting healthier in the process.

Do Young Adults Need Disability Insurance?

Many things go through the minds of young adults, but seldom do they think of being grievously ill or being prepared for the worst. Usually it is later life when these things are considered and dealt with accordingly. The chances of becoming disabled are considered remote, and therefore not something of which to be concerned.
disability insurance

This leaves many young adults unprepared for such an instance. Unfortunately it is in these years when most people are actually at a higher risk of a disabling injury. Everyone of working age needs to plan ahead of time to see that their bills would be paid if they were to become disabled.

Accidents and illness could potentially cause long lasting or even permanent disability. In the event of temporary disability, a policy would provide a portion of income that would help get bills paid until the illness has passed. The loss of employment resulting in no income for just a few months can have devastating financial consequences for the young adult and their family.

A big benefit in getting disability insurance while young is the reduced cost over getting it later in life. It may also be possible to get a policy during this time that cannot be cancelled by the company. It makes sound financial sense as it stays in force as long as the premiums are met in a timely manner. A policy such as this provides lifelong protection.

It’s no secret that a change in health comes with age. Medical history will play a big role in whether or not a person will qualify for disability insurance. Any kind of medical history will make an increase in the amount paid in premiums. This is where a policy purchase while in the health of youth makes so much sense.

Employers are the first place anyone should begin for any type of insurance. It could be readily available as an option in the company group insurance. Employees are responsible for inquiring about potential benefits they may qualify for as a current company employee. A quick trip to the human resources department will reveal what type of plans are available that can be automatically be deducted from earnings.

Most people are seemingly at their best during the young adult years. It is easy to overlook certain things at this age, particularly when it comes to topics of injury or death. However, it is the precise time to get prepared for all of the things that can catch us off guard. Disability insurance is not just for the elderly or frail. It is for all adults, young or old. These are the individuals that are smart enough to know they need it to take care of themselves should an unfortunate event occur.

Car Insurance

After college or before it many people start to find themselves owning their first car. Something that many people have trouble deciding is what insurance they need for their car. It is important to consider a few things while buying insurance. The amount of coverage you are required to have, the amount of coverage you actually want, and what company fits your needs best.

Car Insurance
Don’t even ask what car insurance on a car like this is!

By law you are required to at least have a minimum of coverage and car insurance to legally drive a vehicle. The coverage varies by state and it is important to look at what your state requires for a minimum of insurance coverage. This is meant to protect all people on the road.

You may indeed want to buy more coverage than is required and this may be the best thing for you to do. Minimum coverage does mean minimum cost, but it also means minimum protection. Some minimum coverage’s might not protect your car or you well enough. It is important to look at different coverage plans and determine which things you want covered such as personal liability coverage, which helps to protect you from lawsuits in case of an accident.

It is also important to shop around and get quotes from different companies, and to always checkout reviews about the companies you get quotes from. If you get the exact same coverage from one company for a cheaper price than it would be from another, than it is probably a good idea to choose them.

 

The Options for the Uninsured are Growing

Everyone gets sick at one time or another and oftentimes there is too little time to be prepared; especially if you find yourself between jobs, unable to afford the premiums for health insurance coverage or are disqualified because of pre-existing conditions.

There are several options you may pursue:

The Feds Do Care

1. The US Department of Health and Human Services operates many health centers nationwide that provides care for you and your family. This professional care is offered on a pay-what-you-can-afford basis and is often linked to your income. Services include general checkups in cases where there are obvious changes to your health. Treatment is available when there is a positive diagnosis of illness. Mothers-to-be will also receive full care for pregnancy including any special emergency and unusual procedures that might be required. Children will receive their immunizations as well as their routine check-ups to maintain their health. Dental care is also provided for the entire family as well as assistance with prescription drugs. Many families also find themselves in a position requiring mental care or counseling for substance abuse and this is provided by many of the federally-funded health centers. These services are accessible online with the only requirement being to visit the US Department of Health website and type in your zip code to find the nearest health center to you. You will find that centers are both in cities and rural towns and are strategically placed to ensure wide assess to people who need their services.

Not Sure If You Are Sick?

2. There are also many websites online that provide free medical advice if you’re not sure whether you’re in need of medical care. Whilst, one should be wary about depending on information provided online because of physical limitations, meaningful research can save time and unnecessary financial headaches. Many online services offer background information on visible symptoms to help you understand the possible causes of certain illnesses.

Use a Payment Plan…Pay Directly

3. In cases where there might be some resources available, you may want to visit a doctor and pay directly for medical services received. Many hospitals may consider putting you on a payment plan where you can pay a monthly amount over a period time to cover expenses. It is useful to investigate prior to a medical emergency, those services, offices and hospitals that allow a payment plan for those patients without insurance. Plan ahead for medical emergencies.

Walk Into a Clinic

4. There are low cost clinics available that will offer the best “bang for your buck” located in pharmacies, drug stores and convenient stores. These clinics offer affordable family packages that are designed as an alternative to full-service medical centers. Do the required research, because there are many customized services popping up all over the country to cater to the uninsured patient.

What is a Living Will

Imagine a man who was in a serious accident with injuries so severe that he was being kept alive by a respirator and a feeding tube. His family has been at his bedside for weeks with no response from him and prospects for his recovery are grave at best. His family and doctors are helpless to do anything but wait because he can not speak for himself and let them know that he would rather they pull the plug and let him go peacefully than to exist like this. This situation could have been prevented if this man had a living will.

living will
Always be careful when signing important documents!

A living will is a legal document that lets a person inform their family and doctors of his/her wishes regarding life-sustaining procedures in the event that they are incapacitated or rendered permanently unconscious. People don’t really expect this to happen to them, but the fact is that it happens all the time. Most people don’t want their family to be burdened with the choice about “pulling the plug”, and in some states, if there is no living will stating a person’s wishes, the doctors are not permitted to discontinue life-support. For this reason, it is important for everyone to draw up a living will.

Because laws surrounding living wills vary from state to state, it is advisable to seek out the help of an attorney who specializes in estate planning. A lawyer can answer all questions and make appropriate recommendations as to what documents should be set up and whether a Medical Power of Attorney should be named. (A Medical Power of Attorney is a person who will make medical decisions on someone’s behalf if they are incapacitated, but their medical condition is non-life threatening.)

The living will contains a list of directives for doctors and family to follow relating to resuscitation, life support, breathing tubes and feeding tubes. The person writing a living will has the right to decide how they want their medical care to be handled in all of these situations and others not mentioned in the scope of this article. The decisions made in the living will are not automatically acted upon in any life threatening situation. A heart attack, for example, is life threatening, but the prospects for recovery are good after a heart attack, so medical personnel will resuscitate and do anything possible to revive the person. The living will usually comes into play for a person with either a terminal illness or someone who has been declared permanently unconscious with no prospects of recovery.

After a person takes the steps to set up a living will, the most important thing to do is make their doctors and family aware of the document. It can be a difficult discussion to have, especially with family members, but the living will only works if the right people know it exists. After the document has been completed, copies of it should be provided to the family doctor and immediate family members so that they can carry out its directives.

 

Should I Buy Pet Insurance?

The question of pet-insurance and whether it is necessary might seem like a moot one if you have never head to take care of a pet. However, if you do love pets, and have ever had to actually take care of one, you will know something about the cost of treating them when they do fall sick or are injured: it’s high.

Pet Insurance

It can be as high as human treatment and even higher in some cases, because, let’s face it, not that much research has gone into looking after pet health (not as much as has gone into human health for example) and therefore good pet health care is hard to come by, and the harder it is to come by, the more expensive it will tend to be. Simple things like stitches on a dog’s paw or even managing a persistent worm problem can be quite costly.

Added to this is the fact that veterinary medicine is employing increasingly expensive methods of treatment, from x-rays to monitoring equipment for organ performance and things of that nature.

It is with this in mind that pet insurance starts to sound like a good idea. Pet insurance differs from human health insurance in one important aspect: it is rather more similar to property insurance, in particular, motor vehicle insurance.

Pet insurance is relatively new in the United States, with the first one being issued in the United States and instigated by the risk incurred when using animals for important roles on Hollywood. Sweden and Britain respectively, lead the world in terms of percentages of pets that have pet health insurance.

Policies can differ in several aspects. You can have lifetime and non-life time variations, with lifetime variations covering a condition that the pet has for it’s lifetime, literally, while non-lifetime insurance cannot be renewed when the policy is being renewed annually.

Pet insurance can also include third-party liability insurance, so that if for example a pet is a direct cause of a car accident or injury to an individual, the owner of the pet is insured from covering costs incurred; these would be covered by the insurer.

As mentioned earlier, these aspects of pet insurance as well as others vary from country to country and also vary according to the insurance company providing the cover. Some of these variations include dental care, preventive cover like vaccination, prescription drugs, tail clipping (in the case of certain dogs and cats) and neutering.

In the long run, of course, a carefully negotiated policy will save you money. Pet behavior is often unpredictable but knowing that you have a fall back plan can help you save on those sudden costs as well as give you that much-searched for commodity when dealing with a pet: peace of mind.