insurance coverage Archives

Tens of millions of people are currently going without health insurance coverage. The reasons are pretty simple: either they can’t afford the high cost of premiums, or they have been declined coverage due to pre-existing conditions.

The Affordable Care Act, more commonly known as Obamacare, looks ready to fix the pre-existing condition problem. Under the plan, not only will insurance companies not be able to turn you away for pre-existing conditions, but they will be unable charge you a higher premium either.

So far, so good.

[Find out how to save money on prescriptions.]

What Obamacare Won’t Fix

There is a lot in the President’s plan that I really like, starting with the elimination of pre-existing conditions as a factor in health insurance coverage. That needed to happen a long, long time ago. And you can’t argue with a concerted attempt to get everybody covered.

What is not as certain however is how much all this is going to cost. The current consensus is that young, healthy people will be paying more than they were under the old system, while older and less healthy customers will pay less. If I had to bet money on this plan, I‘d have no trouble betting that premiums are going still higher.

It’s hard to imagine how 100% coverage on preventative care, mandating coverage, and providing health insurance for 50 million people who currently don’t have it, is going to lower premiums. Add to that the fact that health insurance premiums have been going up for years, and there is no solid evidence that this cycle will change.

So just by making an educated guess, I think it’s pretty safe to say that higher premiums are something that Obamacare will not fix.

And that creates one not-so-small small problem…

You Will Now Be Required To Have Health Insurance

Under the new law, you will be required to have health insurance, otherwise you will have to pay a penalty. For 2014, the penalty is so low you pay it and get on with your life. The higher of $95 or 1% of your gross income is still a heck of a lot cheaper than even an inexpensive health insurance plan.

But as the years pass, those penalties become increasingly stiff. You’ll be paying a substantial penalty, but not having any health insurance coverage to show for it. Effectively, that will force you to have health insurance whether you want it or not.

If doing without health insurance has been your strategy for dealing with unaffordable premiums, it looks like that option is about to go out the window. And that raises the question How will we be able to afford that which we can no longer avoid?

Creating A Side Business To Pay For Health Insurance

I’ve heard horror story projections about Obamacare – we all have – but my feeling for a long time has been that the present health care system is already broken, and we should embrace this change. It does have a lot of positives, but we have to deal with the reality of figuring out how we are going to be able to afford it.

My suggestion is to create a dedicated income stream to pay for your health insurance. With premiums expected to be anywhere from $250-$300 for young individuals, and well over $1,000 for families, it is very possible that health insurance will be the single most expensive line-item in many household budgets. That will require some extraordinary measures to deal with.

[Should you let your employer know about your side business?]

Since you’ll need your regular income just to pay living expenses, the best strategy may be to develop a side business that will be used primarily to pay for health insurance. Here are my suggestions for just such a business. Each should be able to provide you with at least a few hundred dollars per month, and maybe a lot more. One of them may be the best solution to mandatory health insurance.

This is just a list to get you started – you probably have skills and interests that would make your own choice of a side business obvious. Now is an excellent time to dust off any ideas you have, and put them in the practice.

Freelancing On The Web. If you are comfortable with computers and the Internet you may be able to sell your services to websites and blogs. The possibilities here are nearly endless – content writing, social media management, editing, technical assistance, business development – you name it. Figure out what it is that you can do better than most people, put together a concise resume (or build your own website), then begin contacting site owners directly to hawk your service.

Tutoring. Where I live, people who tutor high school students are getting at least $30 an hour. Pick a subject that you are strong in, and offer your services as a tutor. Make up a simple brochure and provide a small supply to each of the schools in your area. You can also advertise your services on Craigslist, or place flyers in grocery stores, churches, Laundromats, or even the bulletin board at work.

Selling A Product. Is there a product that you feel very strongly about? Your enthusiasm and conviction may be your best tools to sell the product. Many companies offer affiliate programs that you can work through. You sell the company’s product, and collect a percentage commission upon each sale. You can automate the whole process by creating a website, and selling the product online.

Applying A Specific Skill You Have. Inventory all of your skills, there may be one or two that you can convert into a business. For example, if you have bookkeeping skills, offer your services out to small businesses. If you have fitness skills, you may be able to teach in a gym. This can include Zumba, yoga, aerobics, or even personal training. Think about the skills that you have, and the businesses were those skills might be useful.

[Find out how to discover the right business for you.]

Starting a side business is often a matter of matching your skills with a corresponding market niche. Spend some time working on that – surf the web looking for ideas and markets, join networking groups, and talk with your friends. As a rule, a side business will provide far more compensation than a part-time job will. And that may enable you to afford health insurance coverage that you otherwise can’t.

What are your own plans to deal with healthcare reform and higher, mandatory premiums?

Throughout life, you will come to points where you have to insure various items to protect their value in the case of an accident. Of all the insurance payments, you will have to make. Auto insurance will be one of the largest and most financially demanding options you must decide upon. Here are a couple of things that we might not normally consider when trying to save money on car insurance.

Simple Tips To Save Money On Car Insurance

Go With A Proven Car Insurance Provider

When choosing an auto insurance policy, look into the quality of the company. The company that holds your policy should be able to back it up, click here to get car quotes online. It is good to know if the company that holds your policy will be around to take care of any claims you may have.

You can take a look at the Better Business Bureau’s or Consumer Affairs websites in order to check for complaints against your top choices. Asking your friends, coworkers, family members, and even neighbors about their experience with certain auto insurance providers can also help you to narrow down your choices and find a reputable company.

Buy Only What You Need

Don’t fall prey to buying insurance coverage that you do not need. Research your needs on your own, or ask the insurer if it is a must that you purchase all coverage they mention to you.

One example of this would be roadside assistance coverage. If you have roadside help through some other means such as your credit card (one of many credit card benefits) or through some sort of membership elsewhere, you do not need to purchase it from your insurer.

If you own a small business requiring the use of company automobiles, vans, or trucks; business auto coverage is a must. Business auto insurance coverage can usually be added to a business insurance package made available by insurance companies. If you or your employers are driving company vehicles, it is critical that you are covered in case one of them gets into an accident.

Handling Teens and Multiple Drivers

Your teenage driver’s insurance will cost you much more than yours for a while, but if they took any formalized driving instruction, be sure to mention it when shopping for a quote or adding them to your policy. Discounts are frequently available for driving instruction, but you can get even bigger discounts if your teen took a defensive driving class or other specialized driving instruction course.

If your car is insured with multiple drivers and one of them stops using the car, notify your insurance company immediately. It can reduce your premiums significantly in many cases. Young drivers, old drivers, and drivers with bad records all boost your premium. Get them removed from your policy as soon as you can.

Using The Internet, and Trimming Coverage

Usually, you can find some of the best insurance deals on the web. This is because selling directly to customers cuts out costs, like an agent or having a ton of local offices; so the insurance companies get to keep a little more for themselves. This also will trickle down to you in the form of a small discount. There are even some companies and/or that will perform car insurance comparisons on your behalf.

Consider suspending coverage on a vehicle you are not actively driving to reduce your premium payments. Often, you can suspend coverage except comprehensive on a vehicle not being driven, which still provides protection should the vehicle be damaged while garaged or parked – although, if it is not being driven, it may not be worth the extra cost of comprehensive coverage.

However, check with any lienholder or your state to make sure you are adequately covered and complying with loan requirements before suspending coverage.

Consider A Hybrid

Hybrid vehicles are really underrated in terms of insurance prices. So if you want to save money on car insurance, you might want to look at purchasing some type of hybrid vehicle (such as the Honda NSX). Apart from the great tax savings, you will also stand out as a low-risk driver in a hybrid, and thus your insurance premiums will ultimately drop.

When it comes to purchasing a hybrid, just make sure that the added cost will be worth it when considering lower fuel costs, any tax credits you may receive, and paying less for your car insurance.

Though simple, the tips listed above could save hundreds of dollars per year on expensive auto insurance payments. The point is, take your time and calculate your costs carefully. Get ahead of the curve and be prepared for what you will need to pay before you even go to get your vehicle. Knowledge and research is the key to saving.

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