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Insurance
Insurance is confusing. You pay for it every month and then hope you'll never have to use it.
But smart insurance decisions can make a major difference to your family and your finances.
These days, many Americans have a love-hate relationship with their premiums and their policies. Health insurance is no
longer a given, and premiums are skyrocketing. Homeowners in some areas either can't get insurance or can't afford the premiums
they're offered.
For many people, it's a good time to check out what they have and what they need.
Want to make smarter buying decisions and get the most for your money in 2008? Here are some tips to help:
1. Overall
Review your coverage:
Whether it's home, life, auto or health, you want to take a good look at what you're buying before you renew.
Companies often make changes from year to year. Look at the policy as if it were brand new. Does it suit your current needs? Will
it be a good fit for any anticipated changes, like a growing family? If it's no longer a good fit, what are your best options?
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| Making smarter buying decisions |
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Ask about
every discount. With most companies
there will be certain factors that can earn
you a better rate, from exercising regularly
or not smoking (for health insurance), to
maintaining good grades or taking a safe-driving
class (for auto insurance). When you renew
your insurance, go through all the discount
options one by one and make sure you're getting
all the price breaks you've earned.
2. Health insurance
Be ready to review your
health insurance. Usually sometime
near year's end, there is a window when you
can make new choices or change coverage. It's
also when employers and carriers announce
any coverage modifications. "Benefits are
always changing," says Mila Kofman, associate
research professor of health insurance at
Georgetown University.
If you use Medicare, review your drug coverage -- stat! With Medicare, the enrollment period for
Medicare Part D (drug coverage) is from Nov. 15 to Dec. 31, says Jack Hungelmann, author of "Insurance for Dummies." That means
if you want to make changes, you need to do it within that time period.
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| Things to watch
in your health insurance policy |
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Are the premiums the same? |
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Are deductibles the same? |
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Do the same items and services count toward the deductible? |
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Do you get decent coverage for the drugs and services you use? |
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Are co-pays the same? |
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Are annual or lifetime limits on coverage the same? |
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How does the plan mesh with the needs you've had in the past and any new ones you expect this year? |
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"Even if you have a good plan,
the plan can change from year to year," he
says. The key: look at what will be covered
under the new rules. If it doesn't suit your
needs, now's the time to switch.
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