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Getting informed before you purchase health insurance is the best way to ensure the most affordable rate. Read on to shed some light on some of your tough questions.

What are the different types of managed care?

There are three main types of managed care.

Preferred Provider Organization (PPO): If you opt for a PPO, you have access to a network of health care specialists. You may choose a health care provider from within your network or a non-network health care provider. You pay more if you choose to go out of network.

Health Maintenance Organization (HMO): An HMO requires a co-payment to an in-network physician. However, an HMO will not pay for services you receive outside the network. You choose a primary care physician and they become the gatekeeper to your health care. You must obtain a referral, if you seek specialty care.

Point of Service (POS or Open Access HMO): With this insurance plan is, you can go out of network. But you won’t be reimbursed the full amount?usually only 50 to 80 percent.

What is an HSA?

An HSA is a health Savings Account, which is used along with a High Deductible Health Plan (HDHP).

If you choose an HSA, you put tax-sheltered money into a savings account. When you become ill or injured, you use the money in your account to pay for your medical care. If the cost of service exceeds the deductible of your HDHP, the insurance company pays the excess.

This is a good way to save money on health care, because you only pay when you seek service and are not required to pay a monthly premium. However, if you have a health condition or partake in some dangerous hobbies, you are probably better off with a traditional plan.

What’s the difference between a premium, deductible, co-payment and co-insurance?

A premium is the total monthly or annual amount you pay toward your policy.

A deductible is the amount you must pay before your health plan begins paying your health care expenses.

A co-payment is the amount you pay when you receive care. The amount varies depending on your plan and whether you go to an in-network provider. Usually a percentage, co-insurance is the part of health care you pay along with your deductible.

What is a preexisting condition?

A pre-existing condition is usually a health issue that arose before you applied for coverage with a new insurer. Whether a pre-existing condition is covered by a new insurer varies from plan to plan, insurer to insurer. Some preexisting health conditions are excluded entirely, some are fully covered and some are covered after a specific amount of time. The Health Insurance Portability and Accountability Act guarantees coverage for pre-existing conditions if you are joining a new group plan from your employer and you were insured the previous twelve months.

Will my health insurance pay for my prescriptions?

In most cases, you will have to co-pay for prescriptions. Depending on your plan, certain types of prescriptions may not be covered, such as oral contraceptives or hormone replacement therapy. And if you opt for the generic version of the drug, you will pay a significantly lower price for a comparable product.

Will my insurance rates increase as I get older?

As you age, your risk for certain health conditions increases. For example, women are more susceptible to breast cancer after age 40. Insurance underwriters take those statistics into account when determining your rates. But as health care continues to improve, certain conditions no longer guarantee you a higher insurance rate, such as high cholesterol or blood pressure.

How do I find the right insurance at an affordable price?

Individual health insurance is still rather costly because most people are insured by their employer. If you are self-employed or your employer does not offer coverage, your best bet is to shop around. Use InsureMe to request multiple quotes from top insurance companies!

If you’re in the market for a new car, you’re probably considering your payment options alongside various makes and models. Television ads make leasing seem easy and more affordable than financing a car, but what’s the catch?

According to SmartMoney.com, leasing a car has the following advantages:

• Low down payment. You can usually talk the car dealer into a lower down payment, but of course, the larger the down payment, the smaller the lease payments.
• Low monthly payment. A big lease selling point: your payments will be lower since you’re only paying the depreciation on the car rather than its full value.
• The ability to switch it up. If your car is in good shape, you can simply turn it over to the dealership and walk out with something new after your lease term (two or four years) is up.
• All of these factors make leasing pretty attractive in the eyes of car buyers. But what about the other side of the coin? SmartMoney offers the following disadvantages:
• No equity. Much like leasing an apartment, your car payments don’t go towards owning anything.
• Lack of flexibility. Lease terms come with heavy fees for early termination, as well as mileage stipulations. Most lease terms require you to drive no more than 15,000 miles per year. You may be fined for every mile exceeding the mileage specified in your lease term.
• Insurance may not cover the worst case scenario. If the car is destroyed or stolen during your lease term, your insurance may only pay for the car’s market value—which may not cover what you owe on the lease. You’ll need to purchase gap insurance to ward against this.
• Still not sure whether to buy or lease? Here are a few questions that will help you determine the best option for you:
• Are you short on cash? Sometimes situations occur that make purchasing a car a little tougher. Because leasing provides some wiggle room when it comes to down payments and yields lower monthly payments, leasing may be a good option for you. (Of course, the flip side is that buyers use leasing as an excuse to buy out of their budget.)
• Do you travel a lot? Run carpool? If so, leasing probably isn’t a good option for you. At the end of your lease term, you’ll be charged for extra mileage, as well as any wear and tear on the vehicle. Alternatively, if you rarely drive, you may be paying more for depreciation than you’re actually causing.
• Will you use the car for business? Remember that interest on a car loan is not tax deductible. But, if you lease, you will be able to deduct a portion of your car’s depreciation on your taxes.
• Can you foresee major life changes in the near future? If so, a lease probably isn’t in your best interest. Whatever cash you save with a low down and monthly payment may be obliterated if you have to terminate your lease early.

Leasing a car isn’t for everyone. If you’re considering it, make sure you evaluate your lifestyle and budget, and weigh those factors against the advantages (and disadvantages) of leasing. Doing a little homework now will pay off come car buying (or leasing) time.

E-commerce has come of age, but if you’re like a lot of people, you still get a little squeamish about typing your credit card or social security number into a form on a web site.

The good news is that shopping online is safe—if you exercise caution. This means going online with protection and using only the services that pass your trust test.

Going online with protection means having current anti-virus and firewall software installed on your computer. Anything less and you’re putting yourself at risk. Also, if you have a wireless connection at home—or use one elsewhere—check out this article on wireless safety.

There are several criteria for determining the trustworthiness of a site. The most important of which is the initial sniff test. Because let’s face it: some sites just smell phishy (we’ll get to phishing in a bit). Maybe it’s the cheesy blinking graphics. Maybe it’s because they sell other stuff you don’t want to be associated with. Maybe you can’t quite tell exactly why you don’t trust a site. Go with your gut—it’s pretty savvy.

A more objective (but not necessarily better) criterion is the privacy policy. What does it say? What do they plan on doing with your personal information? Privacy policies are usually somewhat opaque, since they’re written by lawyerly types. But if you can’t cut through a privacy policy’s legalese to find a clear answer to your questions, don’t trust it. It may be totally benign, but you don’t know that. Best bet is to keep moving.

In order to stay safe online, here are some other tips for the taking:

• Look for Ss. If the site address has an ‘https://’ in the address, that means it works with your web browser to scramble your information, keeping it safe from any third-party onlookers. If there is just ‘http://,’ any information you give is susceptible to interception. Another ‘s’ to look out for is SSL, which stands for secure socket layer. SSL is a method of securing information, and it’s an industry standard. Look for mention of SSL in the site’s privacy policy or elsewhere.
• Choose login and password info carefully. Buying something online usually requires setting up an account with a login name and password. Remember, your password should not be a variation on your name or your pet’s. Or your street or hometown. Pick a password that you will remember but not something that someone could easily guess. Try to use upper and lower case letters, as well as symbols and numbers.
• Always pay with a credit card. According to the FTC, by paying with a credit card, your transaction will be protected by the Fair Credit Billing Act. Cash and check payments don’t come with similar protections, leaving you with little recourse if you don’t get what you paid for.
• Never give personal information over e-mail. Information sent via e-mail is not encrypted like information entered into a form on a secure web site. If you’re ever asked to give personal information via e-mail, the chances are good that you’re the target of a ‘phishing’ operation, in which a fraudster is pretending to be a trusted company.
• Keep meticulous records. If, despite your efforts to be careful, you are the victim of fraud or theft, the paper trail will be invaluable in sorting out the aftermath. Be sure to report any mishaps with the Federal Trade Commission and/or your state’s attorney general.
• Look for independent approval. There are some organizations that will vouch for the security and/or trustworthiness of a site. While there are very few standards on the web, organizations like the Better Business Bureau, VeriSign and TrustE have emerged as reliable indicators.
• Know who you’re buying from. Do some research before your buy if you’re unfamiliar with the company.

Lastly, since the internet landscape changes so quickly, it’s wise to regularly check in with trusted sources to be sure you’re current in your precautionary steps. The FTC operates an excellent site called On Guard Online, which is updated regularly with articles and video tutorials.

Sources:
http://www.ftc.gov/onlineshopping/
http://onguardonline.gov/tutorials/index.html

Many people lament the purchase of auto insurance. So we’re here to make it less painful. Check out these six money-saving tips and take the sting out of buying insurance.

#1 Raise your deductible. It’s a gamble, sure. You’ll be responsible for a larger amount of the bill should you get into an accident. However, this is a guaranteed way to lower your annual insurance costs.

#2 Shop around. Staying with the same insurance company year after year may not be in your best interest. You can cancel or change your policy at any time?you don’t need to wait for the policy to expire. So shop your insurance every six months and compare prices to ensure you are getting the best deal.

#3 Remove unneeded extras. Although knowing you have towing and rental car coverage may help you sleep at night, those add-ons are rarely used and not necessarily worth the cost. You pay between $10 and $30 a year over the life of your policy to cover towing. And in the unlikely situation that you need a tow, you’ll pay about $100. Likewise, a small economy car costs $20-$25 a day to rent and car rental tacks on another $20-$40 to your insurance bill each year. So you can sleep well knowing that you saved yourself some money.

#4 Protect your credit. More insurers have begun using credit-based insurance scores to determine what you pay for your policy. So paying the water bill on time will actually keep your insurance costs down.

#5 Research discounts. Cars with safety and anti-theft devices cost less to insure. You can also knock off a few bucks if you insure your car and home with the same company. People who abstain from alcohol, get good grades in school or take a driver education course are also rewarded with lower premiums.

#6 Get informed. The easiest way to save on any insurance is to research before you buy. And get recommendations from family and friends.

And now for the shameless plug: shop here to find quotes and matched with agents from your area!

Life insurance protects the future of your loved ones in your absence, so it seems to be a no-brainer. But its complicated nature makes it anything but. So put on your thinking cap and check out these life insurance pointers.

There are two primary types of life insurance:

Term: This is temporary life insurance. You purchase coverage for a specific price that covers you the number of years you elect. If you die during that time, you beneficiary receives the value of the policy.

Increasing/decreasing The death benefit increases or decreases, usually in one year increments over the course of the policy. Choose an increasing term that’s annually renewable, if the length of the policy is less than four years. Level Premiums and coverage are fixed over a certain period. If the length of the policy is longer—5, 10 or 20 years—choose a level term policy.

Permanent: As the name implies, permanent lasts until you fail to make a payment, and provides your beneficiary with a death benefit regardless how long you live.

Traditional Whole Life A type of permanent life insurance, whole life covers you for your entire life and both the premiums and death benefit remain the same. If you pay the premiums, this policy won’t expire. When you’re younger, you are charged a premium that is slightly higher than you’d pay for a term policy. The insurer invests the excess money and uses it to supplement the cost of your insurance as you age.

Universal Life This type of policy works overtime, as life insurance and an investment vehicle. You can choose to pay any amount over your premium, and the excess will be invested. Your earnings will be placed into a savings account, which you can use toward future premiums or allow it to grow.

Variable Life This kind of policy also has a cash value component and works pretty much the same as universal life insurance, allowing you to use your returns of investment to offset your premiums or to build up in your account. However, variable life offers a wider array of investment products, such as stock funds, and also a higher risk. If your investments don’t perform, you cash value and death benefit could decrease.

Once you determine what type of insurance is right for you, use a non-biased third-party lead service to request quotes from local insurers, agents and/or brokers.

A home is more than just a structure where you live. It’s where you keep your possessions, relax after a long day and keep warm on a cold night. It houses your family and all your memories. That’s why it’s important to protect it with insurance, so that if an unexpected event occurs, you are covered.

What’s covered in a standard homeowner’s policy?

A standard policy has four main types of coverage: coverage for the structure of your home, your personal belongings, liability protection and additional living expenses.

Structure of Your Home

You should buy enough insurance so that you could rebuild your home if it is damaged or destroyed. Most standard policies also cover structures that aren’t attached to your home as well, such as garages and sheds.

Liability

Liability coverage protects against bodily injury and property lawsuits. It pays for your defense in court and any money you are required to pay, up to your policy limit. This includes no-fault medical coverage, if someone is injured in your home.

Personal Belongings

Most policies offer coverage of your personal belongings between 50 and 70 percent of the amount you have on your home. You should conduct a home inventory before you purchase insurance, so that you can determine what amount is needed. Most policies cover your possessions anywhere in the world.

Additional Expenses

If your home is damaged so badly that you must leave during repairs, a standard policy will pay for your hotel stay, restaurant bills and even reimburse you for money lost, if you rent out part of your home.

Is my home covered in the case of an earthquake or flood?

You need to purchase flood and earthquake insurance separately. Most insurance companies offer this type of coverage. They differ from coverage for other disasters. For example, earthquake insurance covers a percentage of the damages instead of a dollar amount. Talk to your insurer to get the specifics.

What’s the difference between actual cast value and replacement cost?

An actual cash value pays to rebuild your home, minus depreciation. A replacement cost policy pays to replace your home and/or possessions without a deduction.

Do I have to buy home insurance?

You aren’t legally required to have home insurance like you are car insurance. However, if you finance your home through a mortgage company, they will require you to have some kind of insurance policy. Even if your home is paid in full, it’s wise to have home insurance to protect your investment.

With the new year now rolling along at a steady pace, what better time than now to take a look at your personal finances.

It is interesting the potential savings available when re-evaluating your current insurance needs.

Has your family grown in the past year?

Did you acquire or sell a previously insured vehicle in 2010?

Is there a family member now living in an assisted living facility?

Did you move into a new home?

If the answer to any or all of these questions was a resounding yes, taking a look at your existing insurance coverage may be a good idea.

Take a few minutes to get yourself a personalized insurance quote, specified to your 2011 insurance needs!

Back in 2000, the World Health Organization published a report that rated the U.S. 37th in health care worldwide, putting poorer countries like Morocco, Cyprus and Colombia further up on the list.

The rankings took into account factors such as life expectancy, inequities in health and access to health care, medical responsiveness in diagnosis and treatment, and how fairly the systems are financed.

Media responses to the ranking fell into two camps: one camp disputed the methodology of the report while the other used the study to criticize the American health care system.

Michael Moore brandished the WHO stat in his recent movie “Sicko,” once again stirring debate and sending people scurrying to one side or the other.

How does one make sense of things?

Unfortunately for partisans of both sides, comparing America;s health care system to the rest of the world is exceptionally difficult, and there’s no simple storyline to grab on to.

Despite being the richest country in the world, the U.S. doesn’t win the longevity award. In fact, we’re not even in the top ten for life expectancy. What does that say about our health care system?

At first blush, nothing flattering. But sorting causes and effects is one of the most difficult things to do, and in this case, some of the causes may have nothing to do with health care.

As Atlantic Monthly writer Megan McArdle noted recently, Americans die in large numbers because of car wrecks and poor diet, neither of which is directly related to our system of health care.

Additionally, for whatever reason, many Americans abstain from healthful physical activity. According to the Centers for Disease Control, a quarter of U.S. adults are not active at all. Surely that one-fourth depresses our worldwide ranking.

Americans have uncommonly good access to care—state of the art clinics and emergency services abound. And America is still the epicenter of medical research and development.

However, many people can’t afford care because they lack insurance. According to 2007 U.S. Census statistics, 47 million Americans, including 9 million children, don’t have health insurance. And that’s up from 44.8 million in 2005.

All this is to say that there are many complexities that arise whenever one talks about health care. The fact that Americans aren’t flocking to Morocco to get health care is perhaps an indication that the WHO report—and our 37th ranking—is inaccurate.

Very few politicians, however, advocate maintaining the status quo of American health care. Most of our leaders take pains to propose “solutions” to what is presumably an imperfect system. And according to a recent Gallop poll, only 52 percent of Americans are happy with their health and medical care, a lower percentage than in India, Iran, Sierra Leone, or Malawi.

But is that because our system is worse, or is it because we Americans expect more than do Sierra Leoneans?

So are we justifiably number 37 in health care? Maybe that’s not even a worthwhile question to ask. Perhaps a better one is this:

What can we do to become number 1?

Recent studies have shown that one-third of American adults lack life insurance. And of those insured, 40 percent don’t think they have enough.

While it may seem difficult to determine how much life insurance is right for you, there is a handy way to calculate how much you need. All you have to do is take into account three main types of expenses:

Immediate Expenses: This category includes funeral and burial costs, lawyer fees, mortgage balances and outstanding debt.

Ongoing Expenses: What are your family’s day-to-day expenses? Think: groceries, gas and utility bills. An adequate life insurance policy will allow your family to maintain its standard of living in your absence.

Future Expenses: Things like school, college tuition and retirement fall under this group of expenses. Without your income, will your children still be able to attend college? Will your spouse be able to retire as planned?

If you add those expenses less your existing resources, like investments and other life insurance policies, you can estimate how much life insurance you’ll need.

Most people believe that life insurance is something that you don’t worry about until you get senior discounts and read AARP, but in actuality, anyone who has dependants should have a life insurance policy.

If you are married, you need life insurance for your spouse.You probably depend, to some extent, on each other’s salary. The life insurance you buy covers immediate expenses for them, such as funeral costs and affords then the time they need to cope with the loss and get back on his or her feet.

If you are a single parent, you are the sole wage earner and guardian. Your need for coverage exceeds most. But nearly four in 10 single parents don’t have any life insurance. Often, single parents have limited incomes and don’t want to spend money on this additional expense. But a $500,000 life insurance policy could cost you as little as a dollar a day. So a small adjustment in your spending could protect your children’s financial futures.

If you are a stay-at-home parent, you provide childcare, cook meals and maintain your home. If you could no longer provide these services, your family would have to pay someone to take over. Approximate what it would cost to hire a person to fulfill these roles, and ensure your policy will maintain your family’s standard of living in your absence.

If you are an empty nester, your kids are through college and your house is paid off, so you think you’re off the hook on buying a life insurance policy. But the increasing life expectancy means your spouse could out-live you by 10 years or more.

If you are retired, your life insurance covers expenses that your family may incur when you die. Depending on the size of your estate, your heirs could be responsible for a tax of up to 48 percent of your estate. A life insurance policy pays for estate taxes, funeral costs and other debts, so your family doesn’t have to dip into its own pockets.

If you are single, you probably don’t need to concern yourself with life insurance just yet. But some singles care for an elderly parent or grandparent or have considerable debt that they don’t want to pass on. If you fall into one of those categories, you might want to purchase enough life insurance to cover those expenses.

Now that you’re armed with knowledge, use our service to request quotes from agents, insurers and brokers in your area!

While home insurance is an essential part of safeguarding your home and possessions, many policyholders let taking a home inventory fall by the wayside.

Why take home inventory?

According to the Insurance Information Institute (I.I.I.), having your home inventory handy can drastically speed up the claims-filing process (meaning you get reimbursed for damages quicker), verify losses for your tax returns, and help you purchase the right amount of coverage to protect your valuables.

But don’t let the task of accounting for all of your possessions overwhelm you. We’ve compiled five easy steps for making home inventory easy.

Step 1: Make a List

Start your inventory by making a laundry list of your possessions, where you purchased them, and what you paid for them. When it comes to inventorying electrical equipment and appliances, make sure to record the serial or product number. This information can typically be found underneath and along the backside of appliances.

The I.I.I. recommends creating a separate category for clothing, counting each piece and making note of any items which are especially valuable (an antique fur shrug, designer clothing, etc.).

Make-it-easy tip: If making a list seems intimidating, start small. Document recent purchases and large items first and work your way down towards older and smaller items.

Step 2: Single Out the Most Valuable Items

Antiques, artwork and jewelry can be particularly devastating to lose. Once you’ve made your list, make sure to single those items out. If you’re not sure what they’re worth, it’s a good idea to have an appraisal done so you know how much coverage those items need.

More importantly, you should ask your home insurance agent if those items will be covered by your home insurance policy. Some items, like those mentioned above, may not be covered under a standard policy. If that’s the case, you’ll need to purchase a policy extension called a rider to make sure they are covered.

Step 3: Snap Some Photos

Taking photos of your home and belongings comes highly recommend by insurance professionals. This way, you create a visual record for both yourself and your agent.

After you’ve photographed or videotaped your belongings, make sure to label the memory card, prints, or video tape, explaining what’s shown and when the record was made.

Step 4: Copy Your List to a Personal Computer

Remember that list you made earlier? You’ll want to enter that information onto a personal computer for safekeeping. In combination with your photos, video and paper lists, keeping an electronic file on hand will serve as an added layer of protection.

Make-it-easy tip: Store this file by emailing it to yourself or storing it in a central location such as those offered by Google (search “Google documents” to get the free applications). The I.I.I. also offers a free program called Know Your Stuff which you can use to document your belongings by room.

Step 5: Store Files, Lists and Photos in a Safe Place

Give yourself one more layer of protection, and store your home inventory materials somewhere outside of your home so that they can’t be damaged by flood or fire. Drop copies off at a friend or relative’s for safekeeping; your bank safe deposit box is also a great alternative.

Now that you’re on your way to creating a thorough home inventory, it’s important to remember to review this list annually, making adjustments for any items you’ve purchased or acquired, as well as any items you no longer own.

Keeping your inventory detailed and up to date will speed the claims process along if disaster strikes and ensure that you’re carrying the right amount of insurance coverage. So don’t be intimidated by taking stock of your possessions—use these tips to get it done quickly and efficiently!