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Save money on auto insurance, business insurance, health insurance

These days, insurance companies abound in every corner of the United States. Like it or not, insurance is a need. Why? There is no denying that a disaster can have a devastating effect on a business, a family and an individual. These can include damages, bankruptcy and death, to name a few. What are the factors we should consider and how can we know the insurance we need.

CAR/AUTO INSURANCE

Consideration should be given to the purpose of its possession, whether for personal use, for public transport use such as a private taxi, or for transporting goods and industrial materials. Age is also an important factor. Old vehicles pay a higher premium than new ones. The type and model of the vehicle also has a major role. When buying car/auto insurance online, some sites offer automated tools. They use an auto coverage analyzer where you have to answer a few questions about your financial situation, the condition of your automobile, etc. From this information, it will generate the coverage category you need.

CORPORATE INSURANCE

There are insurance companies that have policies that combine protection for all major property and liability risks in one package. But you can also opt for separate coverage called a Business Owner’s Policy (BOP). To protect yourself against flood damage, check to see if your office is in the flood zone. And if so, you should opt for a policy that offers flood coverage. A special earthquake insurance policy or commercial earthquake endorsement may cover you if you live in an earthquake-prone area. However, its policies have different deductibles. Meanwhile, business interruption insurance, which reimburses you for lost revenue during a shutdown, only applies to damage covered by this policy. On the other hand, the Terrorism Risk Insurance Act 2002 covers losses due to any terrorism only for companies that have this cover. Injuries and deaths due to acts of terrorism are exceptions in workers’ compensation.

HEALTH INSURANCE

With health insurance, you protect yourself and your family in case you need medical care that could cost you dearly. If you have insurance, many of your costs are covered by a third-party payer (insurance company/employer), not by you.

TYPES OF HEALTH INSURANCE

Collective insurance

Most Americans get health insurance through work or are covered because a family member has insurance at work. Group insurance is generally the cheapest. In many cases, the employer pays part or all of the cost.

Some employers offer only one health insurance plan. Some employers offer a choice of plans. These are:

a) Fee-for-service

Insurance companies pay fees for services provided to policyholders covered by the policy. This type of health insurance offers the most choices of doctors and hospitals. You can choose the doctor of your choice and change doctors at any time. You can go to any hospital in any part of the country. The insurer only pays part of your doctor and hospital bills.

b) Health Maintenance Organizations (HMOs)

Health maintenance organizations are prepaid health plans. As an HMO member, you pay a monthly premium. In return, the HMO provides comprehensive care for you and your family, including doctor visits, hospital stays, emergency care, surgery, lab tests, X-rays, and therapy.

c) Preferred Supplier Organizations (PPOs)

The preferred provider organization is a combination of traditional fee-for-service and an HMO. Like an HMO, there are a limited number of doctors and hospitals to choose from. When you use these providers (sometimes called “preferred” providers, other times called “network” providers), most of your medical bills are covered.

Individual Insurance

If your employer does not offer group insurance, or if the insurance offered is very limited, you can take out an individual policy. You can get paid protection, HMO or PPO. But you should compare your options and shop carefully, as coverage and costs vary from company to company. Individual plans may not offer benefits as extensive as group plans.

Tips when buying individual insurance:

o Shop carefully. Policies differ significantly in coverage and cost. Contact different insurance companies or ask your agent to show you policies from several insurers so you can compare them.

o Make sure the policy protects you from major medical expenses.

o Read and understand the policy. Make sure it offers the type of coverage that’s right for you. You don’t want nasty surprises when you’re sick or in the hospital.

o Check that the policy states: the date the policy will start paying (some have a waiting period before coverage begins) and what is covered or excluded from coverage.

o Make sure there is a “free visibility” clause. Most companies give you at least 10 days to review your policy after you receive it. If you decide it’s not right for you, you can return it and get your premium refunded.

o Beware of single health insurance policies. Some policies only offer coverage for one disease, such as cancer. If you already have health insurance, your regular plan probably already provides all the coverage you need. Check the protection you have before taking out any other insurance.

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