Intel: 5 Things you MUST know when shopping for Insurance

1. Research, Research, Research!
- Do your homework! Is shopping for Health or Life insurance fun? Of course not. However, if you or your family gets a major illness or is severely injured, that last thing you want to worry about how your insurance plan will pay. 45 minutes of research will give you the knowledge to be an Educated Consumer not a buyer. With information at your fingertips, use the Web to gain knowledge. For your family’s sake and your future financial security, make sure you know the nuts and bolts of the product you are buying. You don’t have to be an expert, but you must be educated.

2. DO NOT enter your personal information on random Websites!
    (i.e.: name, SS#, phone #, email address, etc)
- You must know WHO is receiving your information and WHAT they plan to do with it. Many websites capture your info and sell it. Nothing is more infuriating than needing HELP finding an insurance plan and getting 50+ calls/emails from Telemarketers who are not licensed to help you (which brings me to my next point).


3. Speak to a LISENCED Agent (who holds a Resident or Non-Resident License in your home state)
- Speak to a professional. They must have the “Heart of a teacher”. If there is ANY doubt, get their name and license number. Tell them you’ll call them back and call your state’s Department of Insurance to see who this person is.
- Let the agent know what is important to YOU. Of course we all want inexpensive insurance that performs when we need it. A word of caution. Make sure you know what you are getting. Insurance is the kind of thing you may not ever use. But if you do need because you’ve been in a wreck and your family is staring at a $150,000.00 hospital bill and you are not able to work, you better make sure that the policy you have is worth the paper it’s printed on. As my wife always says, “Trust but, verify”.

4. When in doubt-Call the Department of Insurance!
- If you have questions about the Insurance Company or the agent, call the Department of Insurance in your state.
- There are many HIGH-quality, lesser-known Insurers out there who provided excellent service, competitive rates and pay claims properly. That said, just because you have not heard of them, does not mean they are not a good company. You’ll find that SOME of the larger carriers treat you like a number (not all). *For those looking at PPO (Preferred Provider Organization/Network) plans, make sure your Doctors accept the NETWORK. Contact me for more about this if you want*

5. DO NOT wait until last minute.
- If you know your policy contract will terminate in two months, or you are going to get on COBRA (very expensive)…. Start researching immediately. I’ve had folks contact me a week before their policy terminates and we have to scramble to get something in place. This causes frustration and stress for everyone.
- Get to work now before Murphy (Murphy’s Law) decides to join in and cause major problems/inconveniences. From my personal experience, if something bad is going to happen…. It will happen when you DO NOT have insurance. If you are receiving my Newsletter, you are smart enough to figure this out.
- If you are applying for individual coverage, the application and underwriting process take time (sometimes weeks). If you know this going into the process, there is less stress and you can plan accordingly.

I hope that this information is useful. If this is “old hat” for you, that is awesome! Make sure you educate your family and friends. As always, I’ll be happy to answer any questions or review your current policy. Just shoot me an email or reply.

Disclaimer LOL: I sell Health and Life insurance. My goal is to empower you to be an educated and informed consumer. I’ve found that life is easier and more fulfilling when people know how to navigate through the insurance world. At the end of the day, Insurance will be with you for the rest of your life. Better to make friends with insurance now than struggle with insurance later. Insurance is a tool and a life jacket. Hopefully you will not ever need it, but if you do… It MUST work the way you know it will. Your life may depend on it!

Lance Cashion
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Save Money, Buy an Accident Benefit

Health Insurance is expensive enough today and the process of buying a plan can be very frustrating. A bad agent will only make the process worse. Therefore, I'll offer you some quick pointers to navigate the process with ease. Today we'll look at Accidental Injury Coverage or Accidental Injury Benefits. These are insured benefits that work in concert with your regular health insurance plan (Major Medical, HSA, Employer Group plans).  I encourage you to do the research and feel free to reply or contact me personally with questions. Again, my advice is completely free!  There are links below for more info.

WHAT is Accidental Injury Coverage or an Accidental Injury Benefit?
-These are supplemental insurance policies that pay a benefit up to a certain amount if you (or a family member) are injured in an accident. Many also included other benefits like accidental death and dismemberment but we're focusing on the Accidental Injury value. The probability of an accidental injury leading to an Emergency Room visit and/or hospitalization is much higher than illness.

WHY should I consider purchasing Accidental Injury Coverage?
-If you and/or your family are on a $1500 deductible (or higher) on your Health Insurance plan, you must take Accident Coverage into consideration. The higher the health plan deductible, the more crucial it is to hedge against accident.

HOW much will this cost me per month?
-A $5,000 Accident Coverage should not cost you more than $40 per month for the ENTIRE family PERIOD.

You MUST look for creative ways to save money without substantially increasing your risk. One way to save money on health premium is to take a higher deductible health plan. The higher the deductible, the lower your premium will be. The problem some folks run into with higher deductible is a psychological one. A $3500 or $5000 deductible seem to be a lot to take on, but if your premiums are so high that you can barely afford it, you get creative!

Example: (for sake of simplicity, we'll assume your health insurance plan has 100% co-insurance after the deductible)
Currently, your family has a $1500 deductible health insurance policy and the premium amount is $600 per month ($7200 annually). You decide that $600 per month is breaking the bank. You know that you MUST have insurance on yourself and family. You decide to move to a $3500 deductible health plan and the premium is only $450 per month. You just saved $150 per month ($1800 annually)! You buy a $5000 Accident Injury Coverage policy for $30 per month. You are still saving $120 per month AND you have completely hedged against Accident Risk because the Accident Policy is going to pay all but a couple hundred dollars of your $3500 deductible. Basically, you end up with BETTER coverage than when you started and it costs you LESS. Why give your hard earned money to an insurance company, when you can keep it more important things (like an Emergency Fund)?

(another way to look at it)
Family A: Before hedging with Accidental Injury Coverage
$1500 Health Deductible / $600 per month ($7200 annually)
A $100,000 injury claim costs you $1500!
Family A: After hedging with Accidental Injury Coverage
$3500 Health Deductible / $450 per month ($5400 annually) + $5000 Accidental Injury Coverage / $30 per month ($360 annually) = $480 per month ($5760 annually)
A $100,000 injury claim costs you $250!

Extras:
-Employers: This is a great way to save money while improving benefits for your team!!!
-Folks with pre-ex: This is a good way to curb costs if you cannot move to a new plan. You can always go to a higher deductible to save money
-Parents with kids in sports: I think the value is pretty obvious J

In conclusion, in order to save money on monthly insurance expenses, you must get creative. One way is to use products like an Accidental Injury policy to do that. If you have a hand in controlling the cost of your healthcare, you will sleep better at night.

Note: Do not assume that because you are currently "healthy", you don't require health insurance. Try telling that to a family whose bread winner is in the county hospital with no insurance and bankruptcy is knocking at their door. Lives are ruined by selfish/foolish decisions. Don't be THAT GUY! When someone say's "I'm healthy, I don't need insurance", what they are REALLY saying is "I'm irresponsible, unreliable and short sighted". Personally, I do not associate with people who are of that mindset. Insurance rule, if you CAN pay for it… YOU MUST! It is quite another thing not to be able to afford health insurance. Ask yourself. What is more important, my family's well-being or an extra car payment or boat payment, etc?

Links:
SBA with Accident Benefit- Click Here (Example of the product I have and use)
High Deductible Health Plans (Wikipedia)

Take control

Lance Cashion
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