Traditionally, people would get insurance and often stick with that insurance company for their whole lives and be perfectly happy with that company. These days however, it is a totally different prospect, and there are now so many different insurance companies available, that it is very easy to compare insurance products and find cheap auto insurance.
Many companies are slashing their profit margins in order to do as much business as possible, and this causes these insurance prices to become as competitive as possible. The reasoning behind all this is that these companies believe that once they have you as a client, the chances are that you might stay with them and possibly insure other products as well.
Many insurance companies will offer cheap auto insurance in conjunction with signing up for another product of theirs, for example home insurance, or if you decide insure for a fixed period of time and sign a contract that you will not cancel your insurance for a set period of time. This ensures that they maximise their revenue as well asstrengthen their customer numbers. When insurance companies have a large customer base, they are able to negotiate better deals with the underwriters, who are actually the people who pay the money when a claim is issued. Most insurance companies are only the brokers.
Some people manage to save a big portion of their insurance premium on a regular basis by swapping insurance companies when they see that a certain company has a special on cheap auto insurance, which will lower their yearly premiums and save them a sizable amount of money. This is often a good idea, but care should be taken in not doing it too often, as many insurance companies will look at this negatively and this might influence any further future special deals you might be offered. It is suggested not to do this more than once every two years, or at least do not change your insurance company on a regular basis, as this is often an indicator that you will not remain that long with the insurance company and they might be prone not to offer you the best deals available.
Remember, it is your right to find the best deal available and only you can decide what insurance cover you are interested in, and do as much research as possible before taking out any insurance package.
How to Find Cheap Auto Insurance Quickly
Cheap Car Insurance For New Drivers - What NOT to Do
Every teenager who reaches the driving age dreams of roaring up to school in a shiny new sports car. Unfortunately, those same teens rarely think of the costs associated with making that dream a reality. Buying such a car is only the beginning, too. Insuring a new driver is a big financial burden, and the choice of car has a major impact on how much you will pay.
As a simple rule of thumb, if a car can be described as "high performance," you want to stay away from it. That is if you are concerned with actually finding cheap car insurance for new drivers. The reason you want to avoid such vehicles is because car insurance companies know they are more likely to be driven in a reckless manner, and therefore involved in more traffic accidents. These types of cars are also stolen far more often.
If you want to pay less for insurance, consider an older or heavier car with good safety ratings. But beware, just because a car model is older or has good safety ratings doesn't mean you willpay less on insurance. You really need to check car theft statistics for your area and make sure you are not buying a car that is targeted often. And even when you do find a model that is not stolen very often, still make sure it comes with anti-theft features.
Don't get carried away with size or age. A lot of parents will buy their teenage driver large cars, believing they are safer and incur lower insurance costs. But it's actually the weight of the car that matters. You will pay more for a car with a fiberglass body, regardless of size, than for even a smaller car with a metal body.
Also beware of getting too old of a vehicle. Going used is a good idea, as the car will be less likely to be stolen, but going too old will lower safety ratings. Older cars were less likely to have airbags and other safety features that today are standard.
In short, if you want cheap car insurance for your new driver, don't just buy any car and then look for deals. You need to be deliberate in your selection of vehicle. Too new means it is a theft risk. Too fast means it is an accident risk. Too old means it is a safety risk. Find that middle ground and buy accordingly, and you will be rewarded with significantly cheaper insurance premiums.
Things to Consider Before Buying Health Insurance For Individuals
Are you finally considering buying your own health insurance? If you are, wary about the costs and possible coverage issues, it would be best if you would first consider several things before purchasing any health insurance for individuals. Here are some insights.
Determine how much cost of coverage for health care you need. Shop around for specific products and plans that are evidently and logically tailored for your requirements. It would be wise to consider your budget, tolerance for risk, health risks, and prescription needs. You could find clues and indications on your current state of health.
If you aim to maximize health insurance for individuals, find out if the products you are considering buying are allowing students to stay on parents' plans. If your policy does so, determine how the costs could possibly stack up the premiums of your policy. Many health care insurance products available today are highly competitive so take the advantage of the active market.
Find out the physicians and hospitals that are included in a health plan's network. It would not be wise to buy a product that is not useful becausethe doctors included in the policy lists are already not in service. Make sure your health care plan includes hospitals and health care facilities in your locality. It would also be advisable to choose health insurance for individuals with co-payment options for doctor visits and tests.
Determine the possible maximum out-of-pocket expense with co-insurance. It is the total amount required for payment following the deductible reached. Some programs may have co-insurance rate of 80/20 (you would have pay for 20% of overall costs even after deductible is reached).
Do not be easily and instantly enticed by higher deductibles. Remember that a higher deductible could effectively lower your possible monthly premium but it could also make you shoulder more for standard care.
In general, health insurance for individuals may take unique scope and coverage. Take note that policies offered to women usually cost more compared to products offered to men. This is because those for women are including and covering many other specialized services. Maternity costs are examples.
Be Aware And Be Cautious
If you do not own a health care insurance policy and you suddenly develop a health condition, you may not possibly be able to apply for a comprehensive medical plan after your recovery. That is why it is most advised to buy and own your health insurance program now.
Consider taking medical insurance products with health savings accounts, which are tax-free accounts for savings that could be used for covering health care costs. Prefer a high-deductible medical insurance plan to qualify for such.
Choosing the Best Life Insurance Option for You
Life insurance in the UK is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of invaluable benefits to UK consumers.
Level Term Life Insurance
Level term life insurance is the most popular type of life insurance policy with UK consumers, and this may be because it is also the cheapest form of insurance. With level term insurance, you and your family can enjoy peace of mind at an affordable price. If you die during the term of this insurance policy, your family will receive a lump sum payment, which can help to cover a number of costs as well as provide some degree of financial security at what will inevitably be a difficult time. The money could assist with costs such as:
Mortgage repayments
Funeral costs
Education costs for the children
Day-to-day living
One of the reasons that level term life insurance is a fair bit cheaper than other life insurance is because the insurer only has to make a payment if the insured party passes away, and even then the insured party has to die during the term of the policy for the next of kin (or the named beneficiary) to be eligible for a payout. One of the great things about levels term insurance is that you can benefit from cover for just a few pounds each week, and because the payments remain the same throughout the term of the policy, you'll never have to worry about rising payments.
The reason why a level term insurance policy is so called is because the repayment remain level throughout the term of the policy, so you will never have to worry about the cost of your policy rising. The policy is also taken over a fixed term, which is where the 'term' part of the policy comes in. This means that you can enjoy easy budgeting and low cost repayments, and you'll know exactly how long you will be making payment for. On the downside, once the policy expires you will not be able to reclaim any money and the policy will be cancelled, so you will then need to look at taking out alternative life insurance cover.
The average term of a level term life insurance policy - unless otherwise specified - is fifteen years. There are a variety of factors that contribute to the cost of the policy such as whether you go for the most basic package or whether you include a bolt-on such as critical illness cover, whether you are a smoker, your general health, and the term over which you take the policy out.
Whole Life Insurance
Unlike level term life insurance, whole life cover offers a guaranteed payout, which to many people makes it better value for money in the long run. Although the repayments on this type of cover are more expensive than level term insurance, the insurer will make pay out whenever the insured party passes away, so the higher monthly payments will guarantee a payout at some point.
There are a number of different types of whole life insurance policies, and consumers can select the one that best fits their needs and their budget. As with other insurance policies, you can tailor-make your whole life insurance cover to include additional cover such as critical illness insurance. The variations on whole life insurance cover include:
Non-profit UK whole life insurance policies: This is the simplest form of whole life cover, and enables you to enjoy the convenience of level payments through the term of the policy until you die. Upon death, your family received a payout and the policy becomes null and void. If you want to pay a little extra, you can take out a policy that is fixed over a specified term, which means that you will only be making payments for a certain amount of time, but your family will still receive a payout when you die.
With-profit UK whole life insurance: This is a cover and investment type scheme, where your monthly payments are split between your cover premiums and the investment side of your policy. You will enjoy a guaranteed assured sum, and you may find that your insurer adds discretionary bonuses.
Low cost UK whole life insurance: One of the cheapest forms of whole life cover, this type of policy features a decreasing term plan, and the policy is combined with a profits fund. As bonuses are added to the profit side of the policy, the policy term decreases. This provides a cost effective solution for those that want to enjoy the benefits of whole life insurance cover without having to make high monthly payments.
Unitised UK whole life insurance policy: When you purchase this type of whole life cover, you will also be investing in with-profit units. This means that when the insurer makes a payout, the sum awarded will be dependant upon the value of the units in comparison to the value of the death benefit (the payout will be based upon whichever is the highest in value). Each month units are cancelled in order to increase levels of death benefit cover, with reviews carried out from time to time to ensure adequate levels of death benefit cover.
Summary
Both level term insurance policies and whole life policies offer valuable peace of mind to policyholders. The cost of this type of life cover is a small price to pay for the peace of mind that comes with being protected, and you can increase this peace of mind by adding extras such as critical illness to your policy for just a small extra fee.
As a nation, we like to insure just about everything we can...our cars, our homes, our belongings, our pets, and even our credit repayments. It therefore makes sense that we should insure the most important thing of all - our lives.
Cheap Life Insurance Quote - Want to Be Quoted Cheaper?
You have to apply the right tips to get cheap life insurance quote. Let's get straight to the tips!
1. If you are a smoker, be prepared to get higher quotes. Smoking increases your risk of getting cancer and other life threatening diseases. Therefore, smoking puts your health at high risk which causes you to be quoted higher. Try to put a stop to your smoking habit and ask for a new quote after 12 months. You will be surprised that cheap life insurance quote can be obtained so easily by just quitting smoking.
2. If you are overweight or obese, you should lose some weight in order to get cheap life insurance quote. Your BMI will determine how much you will be quoted. If you have a high BMI, it is hard for you to get cheap life insurance quote. However, you do not need to lose a lot of pounds to lower your quote. Losing just a few pounds would make your quote much more affordable.
3. If you have a need to purchase other type of insurance, consider buying it from the same insurance provider who covers your life insurance. You will get cheap life insurance quote this way due to multi-policy discount. However,try to make a research beforehand whether the discount you get worth more than buying other policies from various companies.
4. Ask your insurance provider directly for discounts which are applicable to you. Sometimes, your insurer might leave some of the discounts out or might not voluntarily offer the discounts to you. If you enquire your agent about the discounts personally, you might be surprised on how cheap your life insurance quote could turn out to be.
5. If you have a good credit rating, you will be quoted lower so try to maintain a good credit rating. You will have a lower risk of defaulting premium payments by having a good credit rating and thus lowering your premiums.
Looking for more information about affordable life insurance? Visit this website Insurance Center Online today for more details and free insurance quotes! Aren't these what you want?
How to Buy Classic Car Insurance
Collector Car Insurance and Classic Car Insurance
If you are fortunate enough to own a classic car - or any collectible automobile - then you want to ensure that your luck does not run out because of having inadequate insurance coverage. Call it covering your butt - or covering your "asset" - but by all means, call one of the major providers such as American Collectors, Haggerty, or Parish Heacock insurance companies and let them put you in the driver's seat in terms of professional protection of your cherished automotive investment.
How to Kick the Tires on Classic Car Insurance
The whole idea of insurance is that it needs to do what you expect of it in an emergency, when the rubber really hits the road. And classic car insurance is as different from conventional auto insurance as,well, a classic car is from your run of the mill generic vehicle.
When you buy a classic car insurance policy, you are essentially purchasing protection for those times when - God forbid and knock on wood it doesn't happen - disaster strikes in the form of a fire, a collision, or an act of theft or vandalism. Just as we now have modern airbags to save us in the event of a crash, we also have collector's car insurance, to protect us with adequate moneybags when calamity throws a wrench in the works.
The time you invest in choosing the right classic car insurance coverage is well worth the value and peace of mind that a quality collector's insurance policy delivers for owners of classic motor cars.
The Nuts and Bolts of Classic Car Insurance Coverage
Collector car insurance is not the same as the insurance you buy for normal coverage of your daily transportation. Collector car insurance, or classic car insurance, is made especially for the needs of the car collector. And while ordinary insurance does offer some protection, no matter what you drive, it can leave you high and dry in the event of a loss that it not effectively covered by the terms of the insurance contract.
For example, you may have a garage-kept Cadillac Sedan DeVille with swooping fins your grandparents bought for $7,000 brand new back in the 1960s. But dealers have offered you three times that much, and you saw another one sell at an auto show for $35,000. If you don't have special collector car insurance or classic car insurance, and the car is totaled, you will be lucky to get $7,000 for it. With depreciation calculated in, the insurance statisticians may decide that it is worth only half that much, or less, and you could wind up with two or three grand in exchange for your dream machine.
Stipulations or requirements normally encountered while shopping for collector car insurance or classic car insurance:
* A decent driving record.
* At least 10 years driving experience
* No teen drivers on the policy or drivers with poor driving records
* Secure and out of the weather garage
* Proof that you have another car for daily transportation
* Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
* Limited mileage. You probably don't want to drive your creampuff car all the time, and your insurance company doesn't want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you're probably okay.
Coverage with collector car insurance or classic car insurance: Three kinds of value are important to understand when buying your policy. 1) Actual cash value: This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.
2) Stated value:
The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to $1,000 usually apply.
3) Agreed value:
In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your $100,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple - which is exactly why collectors use special classic car insurance coverage.
Do a periodic review of your coverage limits, because classic car prices are rising. What you insured your cherry classic for ten years ago may be a fraction of what it's worth today. And if you are restoring a vehicle, ask your agent to give you appropriate insurance. There is no need to pay extra based on mileage statistics, if your car is up on blocks with no engine inside it. And as the car's value increases thanks to your hard work of restoring it, you should raise the coverage to keep up with the added value of the restoration.
Keep all your receipts and paperwork - for everything from parts and labor to expenses incurred to take it to a classic car show - so that you can document the total investment your collector's car represents. And take photos and keep them updated, for the same reason. And Last But Not Least: Special Savings Opportunities
As long as you meet the criteria in terms of how you use and take care of the car, you can usually buy a policy.
Traditional insurers will either refuse coverage, offer only a replacement value based on the nuts and bolts (minus heavy depreciation) of the car, or will charge you a prohibitive amount for the premium. But many collectors find that special collector's coverage saves them money - as much as half - while insuring them for higher limits, sometime three or four times what a traditional company gave them.
Yes, it's possible to get collector's insurance coverage for full market value for your car, and save up to 50 percent off of the premium you'd pay with ordinary insurance. That makes classic car insurance a must-have for any serious car buff.
Below is information about three of the most reputable and dependable collectors and classic car insurance companies in the USA (All information listed below subject to change, please contact the insurance companies listed to be sure.):
Hagerty Insurance P.O. Box 1303 Traverse City, MI 49685-1303
Email: auto@hagerty.com Toll Free: 800-922-4050
Qualifications:
* Similar to the others listed below, but please contact Haggerty for details.
American Collectors Insurance P.O. Box 8343 Cherry Hill, NJ 08002 Email: info@americancollectors.com Toll Free: (800) 360-2277 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
* At least 15 years old
* Garage-kept
* Driven on a limited, pleasure-only basis (up to 5,000 annual miles - available in most states)
You may also qualify by:
* Having at least 10 years driving experience
* Having a good driving record
* Having at least one "regular" vehicle for every licensed driver in the household You may request a policy application either directly from American Collectors Insurance or through your local insurance agent (rates are the same either way).
Parish Heacock Classic Car Insurance P.O. Box 24807 Lakeland, FL 33802-4807 Email: info@parishheacock.com Toll free: (800) 678-5173 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
* Each household member of driving age must have at least 10 years driving experience or be excluded.
* Each household member must have a regular use vehicle less than 15 years old that is insured with liability limits equal to or higher than the limits being applied for on the collectible vehicle.
* All licensed members of household and any other drivers of the vehicle must be listed on the application.
* Maximum of two accidents or violations in the household, maximum of one per licensed household member in past 3 years. No major violations permitted in past 5 years.
* A Driver Health Questionnaire must be completed for all drivers over 70 years old.
* Auto must be stored in a locked permanent garage facility when not driven.
* Auto may not be used for commuting to or from work or school, used for business purposes or as a substitute for another auto.
* Autos not covered while on a racetrack or when being used for: racing, speed, driver's education, or timed events.
* Must display pride of ownership: well maintained, in restored or well-preserved condition.
* Vehicles under restoration must be stored at residence or a restoration shop, with a target date for completion. Agreed value coverage is not available on cars under restoration. Eligibility subject to company review.
* Replica Vehicles and Pro Street vehicles are subject to company review.
* Trucks and Jeeps must be over 25 years old, and not be used for towing, hauling, off-road or utility use.
* Generally do not require appraisals, but may ask for one if vehicle value is difficult to determine.
Health Savings Accounts - An American Innovation in Health Insurance
INTRODUCTON - The term "health insurance" is commonly used in the United States to describe any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance or a non-insurance social welfare program funded by the government. Synonyms for this usage include "health coverage," "health care coverage" and "health benefits" and "medical insurance." In a more technical sense, the term is used to describe any form of insurance that provides protection against injury or illness.
In America, the health insurance industry has changed rapidly during the last few decades. In the 1970's most people who had health insurance had indemnity insurance. Indemnity insurance is often called fee-forservice. It is the traditional health insurance in which the medical provider (usually a doctor or hospital) is paid a fee for each service provided to the patient covered under the policy. An important category associated with the indemnity plans is that of consumer driven health care (CDHC). Consumer-directed health plansallow individuals and families to have greater control over their health care, including when and how they access care, what types of care they receive and how much they spend on health care services.
These plans are however associated with higher deductibles that the insured have to pay from their pocket before they can claim insurance money. Consumer driven health care plans include Health Reimbursement Plans (HRAs), Flexible Spending Accounts (FSAs), high deductible health plans (HDHps), Archer Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs). Of these, the Health Savings Accounts are the most recent and they have witnessed rapid growth during the last decade.
WHAT IS A HEALTH SAVINGS ACCOUNT?
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States. The funds contributed to the account are not subject to federal income tax at the time of deposit. These may be used to pay for qualified medical expenses at any time without federal tax liability.
Another feature is that the funds contributed to Health Savings Account roll over and accumulate year over year if not spent. These can be withdrawn by the employees at the time of retirement without any tax liabilities. Withdrawals for qualified expenses and interest earned are also not subject to federal income taxes. According to the U.S. Treasury Office, 'A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care.
HSA's enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.' Thus the Health Savings Account is an effort to increase the efficiency of the American health care system and to encourage people to be more responsible and prudent towards their health care needs. It falls in the category of consumer driven health care plans.
Origin of Health Savings Account
The Health Savings Account was established under the Medicare Prescription Drug, Improvement, and Modernization Act passed by the U.S. Congress in June 2003, by the Senate in July 2003 and signed by President Bush on December 8, 2003.
Eligibility -
The following individuals are eligible to open a Health Savings Account -
- Those who are covered by a High Deductible Health Plan (HDHP).
- Those not covered by other health insurance plans.
- Those not enrolled in Medicare4.
Also there are no income limits on who may contribute to an HAS and there is no requirement of having earned income to contribute to an HAS. However HAS's can't be set up by those who are dependent on someone else's tax return. Also HSA's cannot be set up independently by children.
What is a High Deductible Health plan (HDHP)?
Enrollment in a High Deductible Health Plan (HDHP) is a necessary qualification for anyone wishing to open a Health Savings Account. In fact the HDHPs got a boost by the Medicare Modernization Act which introduced the HSAs. A High Deductible Health Plan is a health insurance plan which has a certain deductible threshold. This limit must be crossed before the insured person can claim insurance money. It does not cover first dollar medical expenses. So an individual has to himself pay the initial expenses that are called out-of-pocket costs.
In a number of HDHPs costs of immunization and preventive health care are excluded from the deductible which means that the individual is reimbursed for them. HDHPs can be taken both by individuals (self employed as well as employed) and employers. In 2008, HDHPs are being offered by insurance companies in America with deductibles ranging from a minimum of $1,100 for Self and $2,200 for Self and Family coverage. The maximum amount out-of-pocket limits for HDHPs is $5,600 for self and $11,200 for Self and Family enrollment. These deductible limits are called IRS limits as they are set by the Internal Revenue Service (IRS). In HDHPs the relation between the deductibles and the premium paid by the insured is inversely propotional i.e. higher the deductible, lower the premium and vice versa. The major purported advantages of HDHPs are that they will a) lower health care costs by causing patients to be more cost-conscious, and b) make insurance premiums more affordable for the uninsured. The logic is that when the patients are fully covered (i.e. have health plans with low deductibles), they tend to be less health conscious and also less cost conscious when going for treatment.
Opening a Health Savings Account
An individual can sign up for HSAs with banks, credit unions, insurance companies and other approved companies. However not all insurance companies offer HSAqualified health insurance plans so it is important to use an insurance company that offers this type of qualified insurance plan. The employer may also set up a plan for the employees. However, the account is always owned by the individual. Direct online enrollment in HSA-qualified health insurance is available in all states except Hawaii, Massachusetts, Minnesota, New Jersey, New York, Rhode Island, Vermont and Washington.
Contributions to the Health Savings Account
Contributions to HSAs can be made by an individual who owns the account, by an employer or by any other person. When made by the employer, the contribution is not included in the income of the employee. When made by an employee, it is treated as exempted from federal tax. For 2008, the maximum amount that can be contributed (and deducted) to an HSA from all sources is:
$2,900 (self-only coverage)
$5,800 (family coverage)
These limits are set by the U.S. Congress through statutes and they are indexed annually for inflation. For individuals above 55 years of age, there is a special catch up provision that allows them to deposit additional $800 for 2008 and $900 for 2009. The actual maximum amount an individual can contribute also depends on the number of months he is covered by an HDHP (pro-rated basis) as of the first day of a month. For eg If you have family HDHP coverage from January 1,2008 until June 30, 2008, then cease having HDHP coverage, you are allowed an HSA contribution of 6/12 of $5,800, or $2,900 for 2008. If you have family HDHP coverage from January 1,2008 until June 30, 2008, and have self-only HDHP coverage from July 1, 2008 to December 31, 2008, you are allowed an HSA contribution of 6/12 x $5,800 plus 6/12 of $2,900, or $4,350 for 2008. If an individual opens an HDHP on the first day of a month, then he can contribute to HSA on the first day itself. However, if he/she opens an account on any other day than the first, then he can contribute to the HSA from the next month onwards. Contributions can be made as late as April 15 of the following year. Contributions to the HSA in excess of the contribution limits must be withdrawn by the individual or be subject to an excise tax. The individual must pay income tax on the excess withdrawn amount.
Contributions by the Employer
The employer can make contributions to the employee's HAS account under a salary reduction plan known as Section 125 plan. It is also called a cafeteria plan. The contributions made under the cafeteria plan are made on a pre-tax basis i.e. they are excluded from the employee's income. The employer must make the contribution on a comparable basis. Comparable contributions are contributions to all HSAs of an employer which are 1) the same amount or 2) the same percentage of the annual deductible. However, part time employees who work for less than 30 hours a week can be treated separately. The employer can also categorize employees into those who opt for self coverage only and those who opt for a family coverage. The employer can automatically make contributions to the HSAs on the behalf of the employee unless the employee specifically chooses not to have such contributions by the employer.
Withdrawals from the HSAs
The HSA is owned by the employee and he/she can make qualified expenses from it whenever required. He/She also decides how much to contribute to it, how much to withdraw for qualified expenses, which company will hold the account and what type of investments will be made to grow the account. Another feature is that the funds remain in the account and role over from year to year. There are no use it or lose it rules. The HSA participants do not have to obtain advance approval from their HSA trustee or their medical insurer to withdraw funds, and the funds are not subject to income taxation if made for 'qualified medical expenses'. Qualified medical expenses include costs for services and items covered by the health plan but subject to cost sharing such as a deductible and coinsurance, or co-payments, as well as many other expenses not covered under medical plans, such as dental, vision and chiropractic care; durable medical equipment such as eyeglasses and hearing aids; and transportation expenses related to medical care. Nonprescription, over-the-counter medications are also eligible. However, qualified medical expense must be incurred on or after the HSA was established.
Tax free distributions can be taken from the HSA for the qualified medical expenses of the person covered by the HDHP, the spouse (even if not covered) of the individual and any dependent (even if not covered) of the individual.12 The HSA account can also be used to pay previous year's qualified expenses subject to the condition that those expenses were incurred after the HSA was set up. The individual must preserve the receipts for expenses met from the HSA as they may be needed to prove that the withdrawals from the HSA were made for qualified medical expenses and not otherwise used. Also the individual may have to produce the receipts before the insurance company to prove that the deductible limit was met. If a withdrawal is made for unqualified medical expenses, then the amount withdrawn is considered taxable (it is added to the individuals income) and is also subject to an additional 10 percent penalty. Normally the money also cannot be used for paying medical insurance premiums. However, in certain circumstances, exceptions are allowed.
These are -
1) to pay for any health plan coverage while receiving federal or state unemployment benefits.
2) COBRA continuation coverage after leaving employment with a company that offers health insurance coverage.
3) Qualified long-term care insurance.
4) Medicare premiums and out-of-pocket expenses, including deductibles, co-pays, and coinsurance for: Part A (hospital and inpatient services), Part B (physician and outpatient services), Part C (Medicare HMO and PPO plans) and Part D (prescription drugs).
However, if an individual dies, becomes disabled or reaches the age of 65, then withdrawals from the Health Savings Account are considered exempted from income tax and additional 10 percent penalty irrespective of the purpose for which those withdrawals are made. There are different methods through which funds can be withdrawn from the HSAs. Some HSAs provide account holders with debit cards, some with cheques and some have options for a reimbursement process similar to medical insurance.
Growth of HSAs
Ever since the Health Savings Accounts came into being in January 2004, there has been a phenomenal growth in their numbers. From around 1 million enrollees in March 2005, the number has grown to 6.1 million enrollees in January 2008.14 This represents an increase of 1.6 million since January 2007, 2.9 million since January 2006 and 5.1 million since March 2005. This growth has been visible across all segments. However, the growth in large groups and small groups has been much higher than in the individual category. According to the projections made by the U.S. Treasury Department, the number of HSA policy holders will increase to 14 million by 2010. These 14 million policies will provide cover to 25 to 30 million U.S. citizens.
In the Individual Market, 1.5 million people were covered by HSA/HDHPs purchased as on January 2008. Based on the number of covered lives, 27 percent of newly purchased individual policies (defined as those purchased during the most recent full month or quarter) were enrolled in HSA/HDHP coverage. In the small group market, enrollment stood at 1.8 million as of January 2008. In this group 31 percent of all new enrollments were in the HSA/HDHP category. The large group category had the largest enrollment with 2.8 million enrollees as of January 2008. In this category, six percent of all new enrollments were in the HSA/HDHP category.
Benefits of HSAs
The proponents of HSAs envisage a number of benefits from them. First and foremost it is believed that as they have a high deductible threshold, the insured will be more health conscious. Also they will be more cost conscious. The high deductibles will encourage people to be more careful about their health and health care expenses and will make them shop for bargains and be more vigilant against excesses in the health care industry. This, it is believed, will reduce the growing cost of health care and increase the efficiency of the health care system in the United States. HSA-eligible plans typically provide enrollee decision support tools that include, to some extent, information on the cost of health care services and the quality of health care providers. Experts suggest that reliable information about the cost of particular health care services and the quality of specific health care providers would help enrollees become more actively engaged in making health care purchasing decisions. These tools may be provided by health insurance carriers to all health insurance plan enrollees, but are likely to be more important to enrollees of HSA-eligible plans who have a greater financial incentive to make informed decisions about the quality and costs of health care providers and services.
It is believed that lower premiums associated with HSAs/HDHPs will enable more people to enroll for medical insurance. This will mean that lower income groups who do not have access to medicare will be able to open HSAs. No doubt higher deductibles are associated with HSA eligible HDHPs, but it is estimated that tax savings under HSAs and lower premiums will make them less expensive than other insurance plans. The funds put in the HSA can be rolled over from year to year. There are no use it or lose it rules. This leads to a growth in savings of the account holder. The funds can be accumulated tax free for future medical expenses if the holder so desires. Also the savings in the HSA can be grown through investments.
The nature of such investments is decided by the insured. The earnings on savings in the HSA are also exempt from income tax. The holder can withdraw his savings in the HSA after turning 65 years old without paying any taxes or penalties. The account holder has complete control over his/her account. He/She is the owner of the account right from its inception. A person can withdraw money as and when required without any gatekeeper. Also the owner decides how much to put in his/her account, how much to spend and how much to save for the future. The HSAs are portable in nature. This means that if the holder changes his/her job, becomes unemployed or moves to another location, he/she can still retain the account.
Also if the account holder so desires he can transfer his Health Saving Account from one managing agency to another. Thus portability is an advantage of HSAs. Another advantage is that most HSA plans provide first-dollar coverage for preventive care. This is true of virtually all HSA plans offered by large employers and over 95% of the plans offered by small employers. It was also true of over half (59%) of the plans which were purchased by individuals.
All of the plans offering first-dollar preventive care benefits included annual physicals, immunizations, well-baby and wellchild care, mammograms and Pap tests; 90% included prostate cancer screenings and 80% included colon cancer screenings. Some analysts believe that HSAs are more beneficial for the young and healthy as they do not have to pay frequent out of pocket costs. On the other hand, they have to pay lower premiums for HDHPs which help them meet unforeseen contingencies.
Health Savings Accounts are also advantageous for the employers. The benefits of choosing a health Savings Account over a traditional health insurance plan can directly affect the bottom line of an employer's benefit budget. For instance Health Savings Accounts are dependent on a high deductible insurance policy, which lowers the premiums of the employee's plan. Also all contributions to the Health Savings Account are pre-tax, thus lowering the gross payroll and reducing the amount of taxes the employer must pay.
Criticism of HSAs
The opponents of Health Savings Accounts contend that they would do more harm than good to America's health insurance system. Some consumer organizations, such as Consumers Union, and many medical organizations, such as the American Public Health Association, have rejected HSAs because, in their opinion, they benefit only healthy, younger people and make the health care system more expensive for everyone else. According to Stanford economist Victor Fuchs, "The main effect of putting more of it on the consumer is to reduce the social redistributive element of insurance.
Some others believe that HSAs remove healthy people from the insurance pool and it makes premiums rise for everyone left. HSAs encourage people to look out for themselves more and spread the risk around less. Another concern is that the money people save in HSAs will be inadequate. Some people believe that HSAs do not allow for enough savings to cover costs. Even the person who contributes the maximum and never takes any money out would not be able to cover health care costs in retirement if inflation continues in the health care industry.
Opponents of HSAs, also include distinguished figures like state Insurance Commissioner John Garamendi, who called them a "dangerous prescription" that will destabilize the health insurance marketplace and make things even worse for the uninsured. Another criticism is that they benefit the rich more than the poor. Those who earn more will be able to get bigger tax breaks than those who earn less. Critics point out that higher deductibles along with insurance premiums will take away a large share of the earnings of the low income groups. Also lower income groups will not benefit substantially from tax breaks as they are already paying little or no taxes. On the other hand tax breaks on savings in HSAs and on further income from those HSA savings will cost billions of dollars of tax money to the exchequer.
The Treasury Department has estimated HSAs would cost the government $156 billion over a decade. Critics say that this could rise substantially. Several surveys have been conducted regarding the efficacy of the HSAs and some have found that the account holders are not particularly satisfied with the HSA scheme and many are even ignorant about the working of the HSAs. One such survey conducted in 2007 of American employees by the human resources consulting firm Towers Perrin showed satisfaction with account based health plans (ABHPs) was low. People were not happy with them in general compared with people with more traditional health care. Respondants said they were not comfortable with the risk and did not understand how it works.
According to the Commonwealth Fund, early experience with HAS eligible high-deductible health plans reveals low satisfaction, high out of- pocket costs, and cost-related access problems. Another survey conducted with the Employee Benefits Research Institute found that people enrolled in HSA-eligible high-deductible health plans were much less satisfied with many aspects of their health care than adults in more comprehensive plans People in these plans allocate substantial amounts of income to their health care, especially those who have poorer health or lower incomes. The survey also found that adults in high-deductible health plans are far more likely to delay or avoid getting needed care, or to skip medications, because of the cost. Problems are particularly pronounced among those with poorer health or lower incomes.
Political leaders have also been vocal about their criticism of the HSAs. Congressman John Conyers, Jr. issued the following statement criticizing the HSAs "The President's health care plan is not about covering the uninsured, making health insurance affordable, or even driving down the cost of health care. Its real purpose is to make it easier for businesses to dump their health insurance burden onto workers, give tax breaks to the wealthy, and boost the profits of banks and financial brokers. The health care policies concocted at the behest of special interests do nothing to help the average American. In many cases, they can make health care even more inaccessible." In fact a report of the U.S. governments Accountability office, published on April 1, 2008 says that the rate of enrollment in the HSAs is greater for higher income individuals than for lower income ones.
A study titled "Health Savings Accounts and High Deductible Health Plans: Are They an Option for Low-Income Families? By Catherine Hoffman and Jennifer Tolbert which was sponsored by the Kaiser Family Foundation reported the following key findings regarding the HSAs:
a) Premiums for HSA-qualified health plans may be lower than for traditional insurance, but these plans shift more of the financial risk to individuals and families through higher deductibles.
b) Premiums and out-of-pocket costs for HSA-qualified health plans would consume a substantial portion of a low-income family's budget.
c) Most low-income individuals and families do not face high enough tax liability to benefit in a significant way from tax deductions associated with HSAs.
d) People with chronic conditions, disabilities, and others with high cost medical needs may face even greater out-of-pocket costs under HSA-qualified health plans.
e) Cost-sharing reduces the use of health care, especially primary and preventive services, and low-income individuals and those who are sicker are particularly sensitive to cost-sharing increases.
f) Health savings accounts and high deductible plans are unlikely to substantially increase health insurance coverage among the uninsured.
Choosing a Health Plan
Despite the advantages offered by the HSA, it may not be suitable for everyone. While choosing an insurance plan, an individual must consider the following factors:
1. The premiums to be paid.
2. Coverage/benefits available under the scheme.
3. Various exclusions and limitations.
4. Portability.
5. Out-of-pocket costs like coinsurance, co-pays, and deductibles.
6. Access to doctors, hospitals, and other providers.
7. How much and sometimes how one pays for care.
8. Any existing health issue or physical disability.
9. Type of tax savings available.
The plan you choose should according to your requirements and financial ability.
An Easy Way to Get Auto Insurance
The most excellent way to obtain complimentary auto assurance quotes estimate is an online shopping. Fortunately, nowadays we have the ability to apply the Internet that create our chase easier and assist a great deal to rapidity up the process. The Internet provides us an option to superstore for auto assurance estimate uncomplicatedly by immediately pleasing in an exacting area, in partiality to inquisitive it from one insurer to one more. As declaration quotation is not controlled, obtain as a lot of reference as possible; to make certain you obtain a reasonable price.
Auto Assurance Company moreover judges the type of auto one drives, in addition to its symbol cost, the price to fix the auto, replacement price, security aspect, and how fine it will oppose an accident. The negligible the price of claim for a motor vehicle, the slighter the charge, and consequently the easier it is to obtain secure. Here is moderately a numeral of feature that company takes into thought when they provide us our automobile guarantee estimate.
The mainly serious ones are our energetic confirmation, period, the type of motor vehicle we have, and the sort of revelation we are look to obtain. What can too be calculate up in a large amount of cases is our form condition, the condition of our motor vehicle, standard mileage we drive every year, the situate our motor vehicle was rotate in, our car's safety measures aspect if whichever, and deductibles we want to acquire. Free auto assurance estimate online will help us to create up our psyche about what plan we want to buy.
The client may inclusive what he desires and they will provide him instructions to assist him create his assortment. These declaration citations will save our time too, like mostly they are instant. Roughly each state obliges us to purchase a smallest amount of accusation coverage. Possibility is that we will need supplementary charge reassurance than the state wants as accident expenditure extra than the most confines. If we initiate formally responsible for statement that are further than our declaration wrap, we will contain to pay the difference out of our own pocket, and that might be expensive. Interesting for estimate is exact about what type of revelation we wish for. For example, if we contain immediately bought a second-hand motor vehicle, it create no logic to give for a lot revelation - improved fix to somewhat essential.
Insure Your Life With a Cheap Life Insurance
In today's world, almost all of us are aware of the significance of life insurance policy. This type of policy is an indenture between an insurance company and a policy owner.
According to the terms and conditions of the policy, the insurer agrees to pay an amount of money in the event of the insured person's death or at times of terminal illnesses. The policy owner in return, takes the liability of paying an amount at intervals, which is called premium.
The parties involved in any insurance contracts are the insurer (i.e., the insurance company), the policy owner and/or the insured, and the beneficiaries. If you have kids and spouse or parents, who depend on your income, you certainly need life insurance,which will give enough coverage allowing your spouse and children and other dependants to live a reasonably comfortable life in absence of your income.
There are two types of life insurance: 1) term and 2) permanent. While the permanent insurance offers death benefits and a 'savings account', the term insurance, is pure and absolute form of life assurance or insurance policy. Permanent life assurances are costlier than the term insurance policies. That is why, many people are more inclined to buy the term or cheap life insurances.
If a question like 'Why do I need a cheap life insurance?' crops up in your mind, then the most obvious answer is, the cheap life assurance policies in a most apparent way save you money, which you can invest in some other policies or in mutual funds for further benefit and growth of your capital.
If you are looking for a cheap insurance policy to insure your life, you should first try to find out policies that come with lower premiums and cautiously cut down all the non-essential coverage. You have to be mentally prepared to accept the fact that the cheap insurance will not give you the 'umbrella insurance' coverage.
When you find the right kind of cheap life insurance that will fit your budget, before finalizing, think twice. Opting for a insurance policy of lifetime, is undoubtedly a great decision, as this insurance not only ensures the comfortable living of your near and dear ones, but also at the same time deals with your hard earned money.
Therefore, before making up your mind, ensure that the cheap insurance is real, risk-free and not a hoax.
Either by calling the policy providers or by speaking to them in person, try to get the true picture of the cheap insurance policy that you are planning to buy. Verifying the quality of the insurance with your friends who have already taken the same policy or checking the feedback from the customers to whom the policy makers have already sold their policy, can be a good option. If you have found the insurance quotes from the Internet, make sure you are not relying on some unknown websites and never reveal your personal information. However, if you have prior experience in online shopping, then you can get cheap life insurance quotes without much difficulty.
Cheap Life Insurance Quotes - Why Online Is The Place You'll Get The Best Rate
You can get cheap life insurance that will not compromise you on the long run. We are not talking about getting inadequate coverage here. The internet makes the process involved in realizing huge savings in life insurance as easy as it can be. But you have to know how to go about it...
If you want to compare quotes fast and with ease that's still unequaled by any other means, the internet is the way to go. If, for example, you decide to obtain and compare quotes from three quotes and comparison sites, itwill take you a total of just between 9 to 15 minutes to get your quotes from them.
You can't even begin to compare this speed with the slow and painful telephone process of getting these quotes. In addition, it will hurt an insurance broker if his/her site leads you to an insurance company with a bad reputation. Therefore, you get the added advantage that you can rest assured that the quotes you get are from A rated companies.
If getting cheap quotes is easy online, paying for it too is certainly as easy. You're simply a click away from completing the deal. Having said that, please, you're not ordering pizza so don't sign hastily. This is something you need to weigh your options well.
It is a great advice never to sign any contract you don't fully understand. Read through and make sure you understand every bit of the terms (especially what's covered and what's not) before signing.
Most life insurance quotes sites have live help. They will answer any questions you have. All quotes sites also have very helpful articles on insurance. It's only laziness that will keep you from getting all the information if you're connected to the internet. High quality information abounds online.
Some people may be concerned about their personal details. But, believe me, that's not an issue online. Apart from the fact that quotes sites use encryption technology to keep your personal details safe, you can even get your quotes anonymously on some sites. Quotes sites make money by your patronage. They therefore use the best available technology to ensure unauthorized persons don't have access to your details.
Now tell me what's still keeping you from getting cheap life insurance (I mean much value for far less)? I don't know how much what you'll leave this for would pay you. I hope it's more than $2,000 (which is common savings for those who take some time out to get and compare cheap life insurance quotes).
Here are my favorite pages for life insurance quotes...
