Premiums May Vary over the Years

Opting out of family health insurance may be risky. It may also cost a family their life savings.

While it’s pretty much a given that family health insurance is necessary, many families find themselves between a rock and a hard place when it comes to paying the bills and keeping their insurance premiums current. Many choose to drop their family health insurance.

“This is a risky thing to do, because if a member of the family is involved in an accident or contracts a serious illness, your savings could vanish just about overnight while trying to keep up with the bills,” states Evan Tunis of Florida Health Care Insurance, Delray Beach, Florida.

At one time, families could afford to pay a hospital bill when it arrived in the mail. The cost of health care back then is nowhere near what it is now. Given the current state of health care in the US, even relatively minor ailments may run several thousands of dollars. “If you have children, the costs may be even higher, as they get a lot of colds, the flu, ear infections, strep throat, broken limbs, and other illnesses that need medical attention. These are major reasons why families need to have current Florida health insurance,” added Tunis.

“I’ve heard many families comment that they can’t find reasonable health insurance. As a health insurance broker, I know for a fact that there are reasonable policies out there. Furthermore, with the new changes coming in June 2010 and the signing of the Health Care Reform Act into law, the health insurance industry will become extremely competitive. Timing is everything,” Tunis commented.

To get a good understanding of what options are available for family health insurance, check online. “Ask for custom quotes, multiple quotes, and different providers and services – it doesn’t matter what you ask for, you should be able to get virtually instant answers online. Keep in mind that these are quotes based only on information you provide. If that information is inaccurate, it will make a difference in the quotes, so make sure you use the same information for every quote you request,” Tunis explained.

Some people shop first and tailor their budget later. “I find that it’s better to have a budget in mind first and then see what fits that budget. It takes the stress factor out of online shopping, or buying Florida family health insurance in person. It also helps the insurance broker to know what range you are able to buy in rather than hand you options that won’t fit the family finances,” indicated Tunis.

To learn more about Florida health insurance, visit Floridahealthcareinsurance.com.

Under-Insured or Over-Insured, Not Good Choices

When it comes to life insurance, being under-insured or over-insured isn’t a smart plan. Ask a skilled broker to help you choose wisely.

When about to choose life insurance, most people get stuck when it comes to how much coverage they need versus what they want. Those two things may be entirely different. This is one of the reasons you’d want to talk to an expert life insurance agent who could tell you what you needed to know by discussing your goals and lifestyle with you.

Being under-insured isn’t a wise idea and being over-insured won’t do you any good either. The whole key to a perfect balance in buying life insurance is having “enough” coverage to save you money in the end. Of course the question is then, “How much is enough?” When figuring that out, use a balanced blend of coverage and premium factors that both carry equivalent weight.

Granted there are usually some assertions that insurance agents will give you, like the suggestion that you consider buying ten times your annual salary. It’s not a bad idea, but it really doesn’t get you out of buying life insurance at regular intervals, nor does it prevent over or under insuring yourself. What would save you money in the short term would be to only buy what you need at any given time. That however has the effect of raising your aggregate premiums and lowering your returns. This is particular true if you are looking at cash value plans.

Here is a good tip when you assess your insurance needs: use your living expenses and not your income. That will be what your beneficiaries will need to live on. Your family may not need 100% of the household income to get on with their lives. So when you do an income calculation, use a percentage of your income to get a reasonable coverage figure.

And what do you buy then? Despite your calculations or wishes, you may find yourself buying insurance you can afford, which isn’t the same thing as what you may need. This is something you need to discuss with your life insurance agent, who has access to a wide variety of life insurance products that may just suit your requirements perfectly. You don’t want to compromise your overall financial plan by buying too much when you can least afford it.

Keep in mind that the amount of coverage you need will likely change over time and the “right” amount of coverage is what is right for “you” when you need it. The general rule of thumb is that you should anticipate, as best you can, your future needs (e.g., mortgage, new baby) without overdoing it. When in doubt, consult with a life insurance expert.

Evan Tunis is with FloridaHealthcareInsurance.com, the leading provider of Florida health insurance quotes. To learn more about Florida health insurance, visit Floridahealthcareinsurance.com.