Lowering Auto Insurance Premiums for Young Drivers

Your policy's costs will increase when you add a young driver to your car insurance policy, but here are some tips that may reduce that increase in premium.

Lowering Your Costs, Shop Around Early, Explore Every Auto Insurance Discount, Drivers Ed, Good Student, Get The Right Car, Drop Extra Coverage, Price Shop Early

In many cases auto insurance companies won't offer a new policy to a you if you have a teenage driver if they haven't been a customer for a while. You're in a better position to get the best price if you compare policies before your child is old enough to drive. Call and tell your auto broker that you want to see what the price for the policy would be now and what they would be when your son or daughter starts driving. It is important to compare rates and policy provisions based on what the policy will cost when you do have a teenage driver.

Get All Car Insurance Discount

Discounts can drop your prices substantially. There are two discounts that anyone with a teen driver should investigate. They are the "good student" discount and the driver's ed discount. Qualifying for one or both of these discounts can save you a lot of money.

Your young driver is likely to cost you less if he or she maintains a grade point average above a B. This will qualify him or her for a reduced rate with many companies. If your child's grades are poor, driving privileges may be enough of an incentive to get him or her to work harder in school.

Also, many carriers will give a reduced rate for younger drivers who participated in a recognized driver's ed instruction course. This should be supplemented with supervised driving with a family member, but the drivers education certificate is likely to qualify you for a lower rate. This reduced rate may save you enough money to pay for the driver's education lessons. And although you may be a careful driver, allowing your teenaged driver to practice with a recognized driving school can make your teen driver a safer driver.

Some Automobiles Cost More to Insure

Some vehicles cost less to buy coverage for. Faster automobiles might be more expensive to buy coverage for especially with a teen driver on your family's auto insurance policy. Buying an older, slower automobile for your child has its advantages over faster newer vehicles.

Eliminate Unneeded Coverage

You might be able to drop your car insurance rates by dropping the collision and other than collision coverage on the automobile your teenaged driver will drive. You will take more risk. If your young driver gets into an accident, your insurance company may compensate the other diver, but it won't compensate you for any body work for your car . You must make a decision based on your own personal comfort with that risk, but removing comprehensive and collission coverage will probably shrink your prices.

Lower Insurance costs Go Hand in Hand with Safety

Money isn't the only issue. A drivers ed lessons might make your son or daughter not just a less expensive driver to insure, but also a less dangerous one. This is also true for buying a slower less dangerous auto if you were contemplating buying a fast, costly automobile for your teen driver.

Lower The High Cost of Teenage Automobile Insurance Coverage

By using the help of the ideas in this article, you may save thousands of dollars.

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Homeowners insurance - Don't forget about it

House owners insurance or inadequate House insurance, can ruin your investment portfolio. An uncovered loss may offset any savings you've done. You may never be able to replace all the money you would lose if your home was destroyed. Fire isn't the only hazard you insure with a home insurance plan. A home insurance plan also includes liability insurance and theft insurance. If your house is completely destroyed by a flood, a policy that has protection against flood is critical. The recent hurricanes in the Gulf of Mexico have made us very aware of what flooding could do to a home.

Floodwater damage isn't covered by the typical insurance policy, so be careful and investigate this aspect of your coverage. You should alsobe certain that your date home insurance plan will cover the rebuilding your house. If your house was destroyed, you want to have the funds to reconstruct the entire houseinstead of merely a piece of it. Carefully considering the all parts of your house owners insurance might just be the only thing that keeps you from losing your home if a fire or other catastrophe hits.

You should know the answers to the following:
Will my premiums go down if my home and automobiles are insured by the same carrier?
Will my current dollar limit of assurance be enough money to rebuild my dwelling if a calamity hit?
Are my furniture and other possessions inside the dwelling well insured?
Keeping up-to-date house owners insurance is equally as critical as getting good insurance in the first place. Your homeowners insurance should be enough to cover the cost of rebuilding your dwelling. Since the cost of construction material and labor is likely to change on a regular basis, it is crucial that you maintain current and adequate limits.

This is true for other insurance types as well. Life coverage benefits ought to be kept current since the things that you want your life insurance to pay for will cost more as time goes on. Healthcare cover needs to be kept current since your family size and your needs might change as time goes on. Automobile insurance needs to be current since you may have different cars and drivers in different years. A good financial plan not makes sure that you accumulate money, but also makes sure that your investments and assetts don't evaporate if a catastrophic event occurs. Insurance for your major exposures is crucial if you want to have the best chance of having enough money during your retirement.

House owners insurance is frequently much less expensive than car insurance. You will see fewer advertisements about Home insurance when compared to health or life insurance. You may not pay your Home insurance directly. These may be some of the reasons that it is easy to overlook. Be certain to look for the best Home owners insurance plan and to make sure you are properly insured. Adequate homeowners insurance could be the only thing that keeps you from having no place to live. Make sure that your House owners insurance plan provides good coverage.

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Why Buy health Insurance?

Your health history is a good predictor of whether or not you might have healthcare problems in the near future. If you've always been healthy, you've got a better chance of not needing medical care in the next year when compared to someone who has a history of being sick all the time.

However, many people who have diabetes, high blood pressure or even heart attacks had unblemished health histories for decades. Then they got sick and maybe stayed sick or even died.

Your good healthcare history isn't a very good predictor of future injury. Anyone can trip on a child's toy and fall down a flight of stairs or have an accident while exercising.

Will Your Car Cover Policy Pay Your health costs?

Your automobile Issurance plan offers limited Insurance for your health bills. Your auto Issurance plan might pay for the health care expenses of those you may injure in an accident. Because of the fact that you can't hold yourself legally liable for your own health care expenses, this Insurance is often inadequate when it comes to your medical costs. Even insurance policies with "no fault" Insurance typically limit this Issurance to a few thousand dollars per accident.

Will Your Employer's Assurance Cover You?

if you are hurt on the job, there is a good chance that your employer's workmen's compensation or liability Insurance will pay your medical bills. But it is the rare disease or sicknesses that will be covered by an job's liability policy.

Of course when your employer provides health Cover for you, many more situations are likely to be covered.

Will A Hospital Treat You Even if You posess No Assurance?

In many situations you can receive medical services from a hospital whether or not you have health Insurance. There are big drawbacks. One is the limitation on the medical care and another is the potential destruction of your credit.

Most hospitals will treat uninsured patients who walk through their doors in the aftermath of heart attack. Most hospitals will treat those who are in need of immediate health care in emergency situations. However, once the crisis is over, they are likely to stop medical care unless you can pay for it.

If a hospital does treat you when you don’t own health care Insurance the treatment won't be free. You will be billed and when you can't pay for your treatment, the event and its cost may hang over your head like a dark cloud for years and years.

Can The Government Pay Your health care bills?

In some cases Social Security or Medicaid will cover your health expenses. However few people qualify. You will find that only particular diseases and disorders qualify for payments from Social Security. Medicaid only covers those who posess very low assets and income.

A car Insurance policy or some other liability plan or the government might cover your medical care costs in some situations. However, only a good health insurance policy will give you the peace of mind of knowing that a disease or car crash isn't likely to ruin your creditworthiness.

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Home Insurance

As entrepreneurs, we tend to spend so much time focused on our business that anything not directly related to that gets shoved onto the backburners. But, if paying a little more attention to something on the home front can save us money, doesn’t that help our business as well? This article provides a number of different ways that you can use to save on the cost of your home insurance. It’s expensive, but we all need it, so how can we make the most of our money? Read on.

First of all, it’s important not to simply buy the first package you hear about. Your Uncle Marty who has been working at that insurance company down the road for fifteen years might not actually be offering you the best rate quotes available. Shop around. Check with a number of different companies to see what’s available. Ask your family and friends what policy they have and if they are satisfied with it. Also, check with your auto insurance company; often, companies will offer discounts if you buy more than one package with them.

Second, as most experts will advise you, try to raise your deductible as much as possible. This is the amount of money you can afford to pay yourself toward any losses before your insurance company is forced to step in. While house deductibles typically start at $250, increasing it to upwards of around $5,000 can save you more than 35 percent on your premiums. But, make sure you only go as high as you can afford.

Third, it’s important to keep home insurance in the front of your mind at all times. Even when you first go to buy a house, you need to be thinking about how much coverage it will require. Is the house newer and therefore in better condition? Is it on the coast, which could result in floods or wind damage? These are all the sorts of things you need to keep in mind when buying a house.

Finally, try and look for ways to save wherever you can find them. Will your insurance company offer a discount if you install a sophisticated home security system? Does your company or any associations you may belong to have any deals with insurance companies for group discounts? Will your premiums go down the longer you’ve been with the company? Are discounts offered for senior citizens? If you think there may be a way to save, it never hurts to ask just in case.

Your coverage policy is something you should evaluate on a yearly basis. The protection you had last year might be too much – or not enough – for what you need today. That additional floor you built last year, or that valuable golden statue you recently sold from in the hallway, will no doubt change the amount of coverage you need.

Buying the right home insurance can be a tricky process. One final simple tip: stop smoking. More than 23,000 house fires every year are caused by smoking accidents, and insurance companies know it.

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Accident Insurance

Study after study has been released that, in the end, all reach the same conclusion: the younger you are, the more likely it is that you will die as a result of an accident over any other cause. Injuries have proven to be the number one cause of death for Canadians up to the age of 44, as well as the fourth leading cause of death for Canadians of all ages. The experts also claim that people between the ages of 25 and 55 are twice more likely to become disabled from an accident than die. That is where the importance of having personal accident insurance comes in.

Accidents do not just happen when you are driving your car, or away on vacation. Thus, your normal car or travel insurance might not be enough to protect you and your family when the time comes. A personal protection plan that covers specifically accidents is a good idea to have as a supplement to your regular life insurance policy.

There are a number of different protection packages that you can purchase depending on your requirements. For instance, an Accidental Death plan will allow benefits to be paid to your beneficiary should you die as the direct result of an injury caused by an accident. Air Travel Accident will cover you if your death is the direct result of an injury caused by a plane accident, provided you paid for your ticket and it occurred on a regularly schedule commercial flight.

Accident Insurance is not just something you should think about for yourself, either. If you have a spouse or children, you should consider looking into plans that offer child care benefits or tuition benefits in case something happens to either parent. Some other packages also offer job training benefits for one spouse to upgrade their skills should the other pass away.

Whatever package you buy, it is important to always keep in mind the conditions that come along with it. For instance, with many coverage plans, you need to report any accident claims within five working days of when the accident occurred in order for the claims to be valid. You also need to provide independent evidence that the accident occurred and that your injury as a direct result of that accident. You will already be dealing with the traumatic stress of the event itself. You don’t want to let the fine print on your insurance cause you any additional hassle.

It is something that many people do not bother to think about, but purchasing additional protection over your regular life insurance plan can be an affordable and effective way to close the coverage gap and give you and your family peace of mind.

Accidents are called accidents for a reason; they are unplanned events that take us by surprise. Life should not be boring; we should be allowed to take the risks that make life worth it without having to worry about the consequences of getting injured. Do not get caught off guard and make your loved ones pay as a result. Get the proper protection of accident insurance today.

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Car Insurance

For any entrepreneur who owns a car, or whose employees use company cars, you need to read this. Fewer things are more important to your company and its financial longevity than protecting those assets you use on a daily basis. Even more important is to understand exactly how to do that. Car insurance is a complicated business, but this article is here to help break it down into its most basic form; understand what you are dealing with, what kind of protection you need the most, and how to keep your costs down low.

Protecting your car is primarily in case of traffic accidents, although it comes in handy when dealing with the after effects of bad weather or theft as well. Depending on the package you purchase, some or all of the insured party, the insured vehicle, and any third parties involved could be covered. While national laws typically make it illegal to drive without any third party insurance, coverage against the other two are generally optional.

Depending on where you live, your premiums will either be mandated by the government or decided upon by your insurance company. Although the company will determine the amount in accordance with government regulations, it has more freedom to take into account other factors it believes will have an impact on any future claims. These include the specifics of the car itself, your own age and gender as the driver, and what distances the car is used for.

Although it’s a contentious issue, car insurance companies cite undisputable statistics that suggest men not only drive more miles than women each year, but that they also have a higher accident rate than their female counterparts. So, too, are there higher premiums for teenage drivers, even those who as of yet have no driving record – good or bad. It isn’t until you hit 25 years old that insurance companies start to give you a bit of a break.

Whatever your gender or age, there are different types of coverage you can purchase on top of the minimum required. Liability insurance covers the fixed amount of damages that the driver is legally obliged to pay as a result of an accident or negligence. Collision coverage protects any insured vehicle that has been involved in an accident. It will pay for repairs to the damaged car, or provide the entire cash value of the vehicle if the company decides it is not repairable.

While those are the two main types of coverage, there are many others that are available to help protect your auto. Comprehensive insurance provides coverage for anything other than collisions, such as fire or poor weather. Uninsured coverage helps when a third party does not have enough in the situation. Loss of Use pays for your rental car while your damaged one is being repaired. Finally, there is Roadside Assistance, which helps pay for the cost of towing your car.

Car insurance is becoming an increasingly complicated affair. Insurance companies can now even install GPS-based technology in cars to report back to them on your driving habits. What isn’t complicated, however, is in understanding the need for adequate auto protection.

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Auto Insurance Canada

When it comes to auto insurance, Canada is one of the places you could need it most. From the Rocky Mountains to the hills of Cape Breton and beyond, the country’s natural wonders just scream out “road trip!” Hopping in your car and driving cross country is one of the best ways to see the nation in its entire splendor. But, before you step on that gas pedal, be sure you are well prepared for what the roads ahead might have in store for you.

From Vancouver to Winnipeg to Toronto to Halifax, this country poses a number of unique challenges for the driver than does its neighbour to the South, which cannot only affect your driving, but your insurance claims as well. Being well prepared will not only keep you safer and help you enjoy your trip more, but will reduce the hassle of dealing with the insurance company later on.

No matter what season it might be, this country is known for its surprise winter storms, which cause a large percentage of car insurance claims. Make sure you keep in your vehicle at all times an emergency winter kit. For instance, if you get stuck in the snow, a bag of cat litter might be a good idea to put under your tires for traction. Being able to pull yourself out of a rut would save you on any towing costs. A shovel could also be a good idea. And, as always, bring tire chains and a flashlight, and don’t forget the batteries.

When you’re dealing with auto insurance, Canada also poses another unique challenge apart from its weather conditions: the remoteness of much of its land and peoples. Some of the most beautiful places in the country are precisely so because they are quite difficult to get too, where only the bravest often dare trek. If you find yourself stuck in a remote area, chances are it will not only take a long time for help to get to you, but it will cost an arm and a leg too.

To ensure yourself against any potential hassle, make sure your coverage plan includes winter towing as part of its Emergency Road Service. Also, be as prepared as possible before you leave. Check your car’s oil levels, battery and ignition, brakes, tires, and of course, fuel.

When you’re already out on the road, there are a number of ways you can prevent having to make that call to the insurance company. First, reduce your speed in precarious driving situations and resist the urge to use cruise control. Also, keep on the lookout for deer, especially in the more remote parts of the country, and during dusk and dawn. The average collision with a deer – of which there are hundreds of thousands each year – results in roughly $2,000 in repair costs.

It may be one of the most beautiful and scenic countries in the world, but when it comes to auto insurance Canada is not your friend. Examine your coverage plan to make sure it has what you need. And, take care while you drive; if not for your auto insurance, at least for your own life.

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Life Insurance

It is a depressing topic; it is something none of us want to think about because it means we will no longer be around, but life insurance is something we all need to think about not so much for our own sake but for that of our loved ones. What if something were to happen to you tomorrow? Would your family be taken care of, or would they be left with a financial burden on top of their already heavy emotional one? Read on to understand how you can protect your survivors once you are gone.

First of all, it is important to know what the different kinds of policies are, what coverage they will afford you, and what type you should be looking at in order to help your survivors meet your financial obligations after your death. The two major types of insurance policies are Term Life and Whole Life. As its name suggests, Term policies provide protection for a specific period of time, and although they do not accumulate cash value, they are generally the least expensive form of insurance. Whole Life, on the other hand, is a more permanent kind of insurance. As long as you pay your premiums, Whole Life policies will protect you throughout your entire life, and can also build up in cash value.

Once you have determined the type of coverage that is best for you, it is important to assess the various companies you can buy from. What if you put all your money into one insurance company and ten years down the road it is not around to pay your claims? To prevent against this, look at your company’s credit rating by an independent agency such as Moody’s or Standard and Poors, both of which assess the insurer’s ability to pay its claims on time as well as meet its other financial obligations.

It is crucial that you understand the details of any life insurance policy that you buy. According to a recent study by the American Council of Life Insurers, 62 percent of life insurance owners do not even understand their own policies. If your agent or company cannot explain its terms in as much clarity as you would like, do not hesitate to look elsewhere. Make sure you have examined your premiums, your guarantees, and any penalties you may be forced to incur in case you decide to cancel the policy early. Remember, the fine print is fine for a reason.

Once you have determined which policy is best for you, be honest with the company in filling out your medical and family history. It might reveal some ugly truths, but you do not want to risk lying, only to have your claims delayed or completely denied to your family once you are gone.

Buying life insurance should be approached with caution and care, but do not wait too long. It exists to protect you and your family from the unexpected, and you never know when the unexpected will happen.

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Auto Insurance

Auto Insurance

When it comes to protecting yourself, you need to think about more than just your business. As entrepreneurs, we are often quick to purchase policies that cover our own lives or our companies. However, we fail to purchase adequate protection for one of the most crucial things to both our business and personal lives: our car. Auto insurance is a contract in which one party agrees to pay for another’s financial loss resulting from a specific event that has caused damage to their car. It may not come cheap, but you don’t ever want to be caught without it. You never know when that next storm will come or when somebody will miss the red light and run into your car instead.

Protecting your car – and any cars your business may provide to employees – is an expensive business, which entices many to try and cut corners. Like any other insurance, naturally, there are minimal packages available. But, do you really want to risk not having the full protection if you some day by accident hit that Porsche Boxster? Guaranteed, if you hit an expensive sports car, minimal insurance packages will not be enough to cover you. You will wind up on the side of the street wondering why you hadn’t paid those few extra dollars to get you complete coverage.

There are normally government laws that make it mandatory to have minimum protection for your car. But, as entrepreneurs, when have we ever settled for just the minimum? Don’t we always strive to put in 110 percent of ourselves in our business? Don’t we work longer hours than most to get our company off the ground and running? Don’t we sacrifice much of our personal lives for the sake of our babies – our businesses, that is? In one fell swoop, failing to adequately protect your car can take all of that away from you.

As expensive as auto insurance is the good news is that it offers more different ways to save money as does, for instance, life insurance. First and foremost, it is important to evaluate when and where you will be using your car. Do you really need to take that trip in the bad weather or heavy traffic? Also, keep your car in the best possible condition so as to minimize the chance of damage. And, make sure your vehicle is stored in a safe place at night. If it’s a garage, verify the security of that garage with its owner.

Another sure fire way to cut your coverage costs is to try and increase your deductibles. This will necessarily decrease your premiums. Just make sure that when the time comes, you can actually afford to pay those deductibles.

Finally, while it’s crucial to buy adequate protection for your cars, it is equally important not to buy what you may not need. For instance, coverage for vehicles that are used strictly by your employees for business may not need to include medical claims if those would be covered under your company’s worker’s compensation package.

Auto insurance may be a headache to deal with now, but the real pain comes when you don’t have what you need.

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Personal Articles

You may have more valuable possessions than you realize. Your Homeowners Policy can provide some coverage, but with deductibles and limitations. A Personal Articles Policy can provide the additional coverage that you may need.

Some items the Personal Articles Policy may cover are:
* Jewelry
* Furs
* Cameras
* Musical Instruments
* Silverware/Goldware
* Golf Equipment
* Fine Art (such as paintings, vases, antique furniture, oriental rugs, rare glass, and china)
* Collectibles
* Sports Equipment
* Computer Equipment

Personal Liability Umbrella

People are suing each other today more than ever. Verdicts amounting to hundreds of thousands of dollars are being awarded by juries across the country in increasing numbers. If you accidentally injure someone or damage their property, you could be the one being sued. Even though your underlying policies may provide substantial liability limits, it is not uncommon today for juries to award damages that exceed those limits.

Coverage amounts are written in increments of $1 million and supplement your present policies to provide additional personal liability protection.

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How to reduce your auto insurance premiums

10 Tips: It may be time to sit down and review your policy

Here’s something to stop and consider: When’s the last time you devoted mental energy to the particulars of your auto insurance policy? Did you basically set it and forget it?

It’s incredibly easy to let that happen — and if it has happened in your case, it might be high time to refresh your memory on just where your policy stands. You may be able to take a bite out of your insurance bill with a minimal amount of effort.

These quick tips can help you see whether you can save a little – or a lot.

1. Request higher deductibles. The deductible is the amount of money you have to fork over before your insurance policy comes to the rescue. By bumping your deductible up from $200 to $500, you could lower the cost of your collision and comprehensive coverage by 15 percent to 30 percent. By increasing it to $1,000, you could decrease that cost by at least 40 percent.

2. Forgo coverage you don’t need. Think about dropping collision and/or comprehensive coverage on older cars with a low market value. Such coverage often is not worth it because any claim you make probably won’t exceed the cost of the insurance and the deductible amount.

3. Avoid duplicating medical coverage. If you already have good health, life and disability insurance, buy only the minimum personal injury protection required by the state where you live.

4. Purchase a low-profile car. It’s more expensive to insure a vehicle that’s expensive to repair, popular with thieves or known for not having the greatest safety record.

5. Carpool or drive less. Many insurance companies offer “low-mileage discounts” to policyholders who carpool to work or drive a lower-than-average number of miles each year. You can call your insurer and find out whether you qualify.

6. Opt for safety gear. You can qualify for a discount on many policies if you have air bags, automatic seat belts, anti-lock brakes and daytime running lights. An approved alarm system or other anti-theft device can give you additional savings.

7. Seek out discounts for teens. Insure teenagers on the parents’ policy rather than a separate policy. Teens who maintain good grades and pass an approved drivers’ education course usually can qualify for reduced rates. An additional discount may come into play if your child goes to college more than 100 miles from home and doesn’t bring a car along.

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CPS Health Insurance Definitions

CPS Health Insurance Definitions

The Census Bureau broadly classifies health insurance coverage as either Private (non-government) coverage or Government-sponsored coverage.

Private Health Insurance
Private health insurance is coverage by a health plan provided through an employer or union or purchased by an individual from a private health insurance company.

Employment-based plans
Employment-based health insurance is coverage offered through one's own employment or a relative's. It may be offered by an employer or by a union.

Own Employment-based plans
Own employment-based health insurance is coverage offered through one's own employment and only the policyholder is covered by the plan.

Direct-purchase plans
Direct-purchase health insurance is coverage though a plan purchased by an individual from a private company.

Government Health Insurance

Government health insurance includes plans funded by governments as the federal, state, or local level. The major categories of government health insurance are medicare, medicaid, the State Children's Health Insurance Program (SCHIP), military health care, state plans, and the Indian Health Service.

Medicare
Medicare is the Federal program which helps pay health care costs for people 65 and older and for certain people under 65 with long-term disabilities.

Medicaid
Medicaid is a program administered at the state level, which provides medical assistance to the needy. Families with dependent children, the aged, blind, and disabled who are in financial need are eligible for Medicaid. It may be known by different names in different states.

SCHIP
SCHIP, the State Children's Health Insurance Program, is a program administered at the state level, providing health care to low-income children whose parents do not qualify for Medicaid. SCHIP may be known by different names in different states.

Military health care
Military health care includes TRICARE and CHAMPVA (Civilian Health and Medical Program of the Department of Veterans Affairs), as well as care provided by the Department of Veterans Affairs (VA).

TRICARE
TRICARE is a military health care program for active duty and retired members of the uniformed services, their families, and survivors.

CHAMPVA
CHAMPVA is a medical program through which the Department of Veterans Affairs helps pay the cost of medical services for eligible veterans, veteran's dependents, and survivors of veterans.

VA
The Department of Veterans Affairs provides medical assistance to eligible veterans of the Armed Forces.

State-specific plan
Some states have their own health insurance programs for low-income uninsured individuals. These health plans may be known by different names in different states.

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Overview of Medicare Supplemental Insurance

Background information on Medigap insurance plans that supplement Medicare and the benefits those plans cover.

Medicare has several gaps and doesn't pay for all of the health care services you may need. If you are in the Original Medicare Plan, you may want to buy Medicare supplemental insurance, also called Medigap insurance. This is health insurance that helps pay for some of your costs in the Original Medicare program and for some care it doesn't cover.

Medigap insurance is sold by private insurance companies. By law, companies can offer only 12 standard Medigap insurance plans, plans, named A through L. Each plan has a different set of benefits. (Beginning in 2006, Medigap Plans H, I, and J, cannot be sold with prescription-drug benefits, although people who already had those policies can keep them.)

You are advised to study all the Medigap plans before deciding which is best for you. No matter which insurance company offers a particular plan, all plans with the same letter cover the same benefits. For instance, all Plan C policies have the same benefits no matter which company sells the plan. However, the premiums can vary.

All 12 Medigap policies cover basic benefits, but each has additional benefits that vary according to the plan. Briefly, Plan A is the most basic plan. Plans B-L offer everything in Plan A and provide even more coverage. Plans K-L offer similar services as Plans A-J, but the cost-sharing for the basic benefits is at different levels.

None of the standard Medigap plans cover:
• Long-term care to help you bathe, dress, eat, or use the bathroom
• Vision or dental care
• Hearing aids
• Private-duty nursing
• Prescription drugs

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History and evolution of healt insurance

History and evolution of healt insurance

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Health care – a global concern: Part 1 - Sun Life Financial

Around the globe, there is widespread concern in both developed and developing nations around health and the affordability of health care, especially in retirement.

May 21, 2009 - The population is aging. Rapidly. Global numbers for life expectancy rose from 47 years in 1950 - 1955 to 65 years in 2000 - 2005. And the numbers are expected to rise to 75 years in 2045 - 2050.1 This bulge in the demographics, especially in developed nations, will test and impact government social policies and health-care systems around the world. The population seems to be taking note.

Asia and health care

A Sun Life survey conducted in Asia found that people are thinking about health more than ever before. This is especially true in Hong Kong and China where both personal and parental health are serious concerns. In Hong Kong, 77% of those surveyed indicated they think more about health than 5 years ago.

What are we thinking about? For many of us, we’re thinking about the cost of health care. In the Philippines and Indonesia, 54% of respondents first associate health care with expense.2 And a November 2008 Gallup poll revealed the Chinese population worries more about having enough money to pay medical costs than they do about having enough for retirement, their children's education or to maintain their standard of living.

Across the globe, faith in government health-care systems is low.3 In Asia, personal savings are considered the most important source of financing for health-care treatment. Confidence in ability to pay for health care in Indonesia, India and Philippines is 24%, 19% and 19% respectively. China and Hong Kong are less confident in being able to pay for health care – only 5% and 6% say they are "very confident".

North Americans and health care

North Americans aren’t immune to health-care concerns. Almost half of U.S. adults are "very" to "extremely" worried about having to pay more for health care or health insurance. Only 8% are not worried at all. Those ages 45 to 64 years old are most worried (56%), but 37% of those ages 18 to 34 have concerns as well.

Their concerns appear valid. According to the Centre for Retirement Research’s March 2009 National Retirement Risk Index, when health-care costs are included in the calculations, the percentage of households in America considered "at risk" increases from 44% to 61%. "At risk" is defined as unable to maintain their standard of living in retirement. Previous analysis of health-care costs did not consider potential expenses for long-term care towards the end of life.

Unfortunately, long-term health-care costs may be the reality for many. According to our U.S. Unretirement Index3, 77% of Americans aged 40-49 who plan to work past traditional retirement age are doing so to receive health-care benefits. Yet half of the boomers in the U.S. who have retired early have done so for health reasons. The majority live in lower-income, less-prepared households – the people who most need the income and benefits that come with prolonged employment.

Canadians, too, have very real concerns about health-care costs. According to Statistics Canada, by 2012, half of the workforce will be 55 or older and almost a quarter of them will be more than 60 years old. For Canadians, as for the rest of the world, increased longevity means their parents are living longer, too. Many baby boomers expect to pay long-term health-care bills for both their parents and for themselves. Few retirees and entrepreneurs have a benefits package or sufficient savings that allow them to do this.

A global challenge

Older populations around the world face different standards of living. According to the World Health Organization’s 2008 World Health Report, annual government spending on health worldwide varies from just $20 US to more than $6,000 US per person. More than 100 million people a year fall below the poverty line because of personal health expenditures, and as many as 5.6 billion people have to pay for more than half of their health expenditures themselves.

Covering long-term health-care expenses in retirement introduces potential challenge for individuals and governments around the world. Longevity is sure to challenge health-care systems to find better and cost-effective treatments for chronic health problems, and to build health-care systems capable of handling the load.

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