When you set out to gather home insurance quotes, you may be thinking about one thing only: the cost.  But you should be focused on what you’re getting for the price of insurance.   The coverage you choose could end up saving your home.  And if you don’t have a lot of money to spend your insurance policy becomes even more important.  While anyone that owes money to the bank will probably have to get a comprehensive policy that includes both property and liability, you may also have to tack on coverage particular to your area, such as earthquake, flood, or fire, for example.

It’s a good idea to consider these policies even if you hold the title on your home simply because you probably don’t have the money to pay for any type of catastrophe that could occur on your property.  For example, suppose your child has a friend over and he falls down the stairs.  His parents might have him covered for medical insurance, but then again they might not.  If not, you are liable for the expense of medical care because the accident transpired in your home.  What if an electrical fire starts in your kitchen or a tornado rips off the roof?  When you begin to add up the possible cost of such disasters, suddenly the amount you’re paying for insurance doesn’t seem quite so untenable.

And beyond the financial benefits of having insurance for your home you’ll find that there are also some psychological bonuses.  The term “peace of mind” may not mean much to you, but if you have a feeling of dread every time you start to ponder the weighty responsibility of owning and maintaining a home (that you still owe hundreds of thousands of dollar on), you begin to understand what a load off your mind it would be to not have to worry about losing everything in the event of an unforeseeable accident or act of god.

So if you’ve been thinking that there are more fun ways you could be spending the money that you’ve got earmarked for your homeowners insurance, and that it’s pretty unlikely that you’ll ever use the insurance, think again.  The short term benefits of such a move pale in comparison to the potential payoff of having insurance when you need it.

The initial spark for health care reform appears to be the number of uninsured people living in America.  However, while there’s no denying that many are in fact uninsured, the number itself is up for debate.  Lately, it’s been proclaimed that 45 or 46 million Americans are uninsured.  I’m no politician or statistician, but that seems pretty hefty even to me.

How Many Are Uninsured?

First, the most recent survey conducted by the Census Bureau reports that 9.7 of that 46 million are not American citizens—another source of debate that we’ll get to momentarily.  Also, there’s always a margin of error with every survey.  Some people answer the questions asked of them honestly, some may have reported being uninsured that ended up becoming insured sometime after the survey, and others may have outright lied.

According to spectator.org, Blue Cross Blue Shield estimated in 2003 that of the reported uninsured population, 14 million were actually eligible for some form of health care including Medicaid.  18.3 million were under 34.  17.6 million were earning over $50,000 annually and 9.1 million were earning over $75,000 annually.  This leaves a high probability that some of these people could likely afford health care but chose not to buy it, perhaps believing that because of the high cost, they would do without while still young, healthy, and theoretically not in need.

From this entire study, Blue Cross determined that 8.2 million people were uninsured because they truly could not afford it, yet they earned just enough that they did not qualify for government assistance.  Granted, this was 2003—but could the true number of uninsured people jump to 46 million in 6 years, even with a recession?

Abortion Issues

The debate also seems to include some moral issues such as abortion and coverage to illegal immigrants.  Regarding abortion, the House bill has been reported to state that the government health care would have to provide one plan that covers abortion and one that does not.  Politicians are saying that people with the plan will not be paying for others’ abortions, yet every time it has been proposed to have this in writing, that version has been rejected.  No matter my or your stance on abortion, the constant waffling is what I find to be the absolute most frustrating part.

Coverage for Illegal Immigrants?

There is also no solid stance on whether illegal immigrants would be able to take part in the government health care.  Ann Coulter writes on her website that in Section 246 of the 1000-page bill, one sentence is devoted to this issue: “Nothing in this subtitle shall allow federal payments for affordability credits on behalf of individuals who are not lawfully present in the United States.”  At the same time, there is nothing requiring doctors or other persons providing the actual health care to validate citizenship.  You also run into the problem of the emergency room, where federal law requires that patients in need of immediate attention cannot be denied treatment due to lack of insurance.  Could/should medical staff be required to check citizenship in this situation?

Is the Public Option Really An Option?

Then we have the problem of the health care reform being referred to as the “public option” that doesn’t sound officially optional.  Obama has insisted that if you like your private insurance and your doctor that you may keep them both.  But an issue arises if your insurance is provided through your employer.  Employers would be given incentives to offer the government plan to their employees instead of a private plan.  I don’t know what those incentives would be, but if your employer makes the switch, you may have no choice, especially when it would likely be more expensive to keep your private insurer by yourself.

There’s talk that the House version of the bill would mandate all individuals to purchase health care or pay a penalty of 2.5% of their gross income.  So you’ll pay money for absolutely nothing until you can afford to purchase health care?  If you’re already struggling, I’m not convinced this will help anyone.  Ann Coulter also mentions that if you’re not paying either, you can be cited for tax evasion and thrown in jail.  I sure hope that’s not true, but it also makes me wonder how each and every person will actually be tracked down.  And if you’ll really be thrown in jail alongside burglars and murderers who truly deserve to be there, that’s extra tax dollars being used to fund now-overcrowded prisons.  (Oh, and if you’re a small business owner, you’d also be penalized if you don’t offer insurance to your employees.)

I don’t propose to know everything about the health care reform or to fully understand it.  There is so much out there about this subject and so many extremely strong opinions in both directions.  Pepper in the unclear nature of the bill itself in its current form and it becomes harder to decipher the truth.  Would government-provided health care be a good idea?  Obama mentions stretching out Medicare benefits to everyone in a way, but Medicare already seems to be struggling with reports of wasted dollars and impending cuts.

I believe that something does need to be done about health insurance, but I’m not sure a full government takeover is the answer, especially not in the form that it’s currently being presented.  I do agree that the “pre-existing condition” clause needs to be done away with, and that is supposedly in the bill somehow—illnesses and current health situations are the main reason people need insurance in the first place.  Perhaps simply regulating the cost of health care would be a better idea than creating an entire government health plan.  Let’s level the playing field so that an MRI no longer costs $100 at one place and $3000 at another, and the patient knows what they’re paying or what portion they’re ultimately responsible for from the get-go.

Or we could all just be included on the health care plan that Washington politicians get.  Apparently it’s the best one out there…

• You qualify for an HSA if you are currently enrolled in a HDHP, a high deductible health plan.  According to the US Treasury’s website (www.ustreas.gov), your deductible must be a minimum of $1100 for an individual and $2200 for a family.  They want you to have a high deductible because that means a lower premium, ideally leaving you extra money to deposit into your HSA.
• You can use the funds to pay for any eligible medical expenses.  Usual categories include your deductible and coinsurance, dental care, vision expenses, chiropractic visits, eyeglasses and hearing aids, related transportation costs, etc.
• All funds deposited into the account become your property, regardless of who the depositor was.  The best example is your employer.  If you participate in a health savings account through work and your employer makes contributions, that money is officially yours, and it is not subject to income taxes when it is deposited.
• The funds can accumulate and roll over from year to year.  They do not expire if not used by a certain point.
• If you end your coverage or switch jobs and your new employer does not offer an HSA, the money in the account is still your property and may be used for medical expenses.  You just cannot make any more deposits.
• If you make any withdrawals for non-medical expenses, the money used is now subject to income tax as well as a 10% penalty.  (This is good reason to make sure you submit all documentation when you pay for medical expenses, and keep copies for yourself so there is little to no chance of dispute.)  The only exceptions to this rule are if you are officially over 65 or you have become disabled.

The debate surrounding health savings accounts revolves around the idea that this plan only benefits young, healthy people, and that pushes the chronically ill people that truly need the financial assistance towards insurance plans which may or may not provide all the coverage they need.  But this is a decision you need to make for yourself—would a health savings account be worth it for you or would your money be better off in a regular savings?  You can visit the US Treasury website for more detailed information, and research people’s opinions to become fully informed and come to your own conclusion.

Shopping Around

Whether you are in the market for a new insurance plan or are looking to make changes to your current one, there are some things you should consider when you start your auto insurance shopping. Once you gather some quotes, consider these tips:

• The first thing you need to do is compare auto insurance plans. It is important to not just look at the final figures. You have to see what the coverage is for each plan in order to know which is offering a better deal and more coverage for the money.

• Keep in mind that the lowest price is not necessarily the best deal. You may be getting much less insurance that can leave you with regrets should something happen.

• Look and ask for discounts. A lot of insurance companies are not going to come out and offer you discounts, but if you ask for them, they do provide them. There are discounts available for everything from students getting good grades,  having clearing a driving record point, and combining all you insurance policies under one umbrella plan.

• Check the reputation of the insurance provider. It is important that a provider have a reputation for excellent customer service. It doesn’t matter how good the rates are or how the coverage sounds on paper if when you need them they make you jump through hoops. Good customer service is essential.

• When you are considering the company’s reputation, take into account how well known they are and how long they have been in business. Insurance fraud happens and you want to make sure that the company you are giving your money and trust to does not close their doors and head out of town. A company with an established history offers some comfort that they will be there when you need them.

• Determine how much coverage you need and then get your quotes. If you can, ask for quotes that provide multiple scenarios, such as different deductible plans. For example, if you have an older vehicle you may not need full coverage, but if you have a new vehicle that you owe a lot on you may need to even consider Guaranteed Auto Protection (GAP) insurance.

Getting Insured

The goal in doing your preparation and homework is to get the most coverage you can. You want it for a rate you can afford, with a company that has a reputation of providing good customer service and an established history. It is entirely possible to find all this if you keep these areas in mind and start gathering quotes and compare plans.

Life insurance is a way you can protect your family financially after your death, as savings and social security may not be enough.  The funds will help to pay for your funeral expenses, ensure that bills like basic utilities and the mortgage can still be paid when your family is down to one income, and perhaps even add to your children’s college fund.  It all depends on the plan you choose.

But you’re still young, you say, and you don’t plan on dying for quite some time.  However, this can be one of the better times to invest in a life insurance plan.  Your premiums will be lower if you start younger, as the insurance company isn’t expecting to have to pay out any time soon.  As people are living longer and the average life span is increasing, it is becoming easier for older individuals to secure plans with lower premiums, but during your youth can still be the best time to get a lower rate.

There are different types of plans you can choose from, and it all depends on what your family’s needs are.  Term life insurance covers your family for a certain period of time and does not build cash value.  This can be useful is there are specific expenses that you know will need to be covered after your death.  Permanent life insurance will build cash value and never expires.  The premiums tend to be higher, but your family will be protected for even longer.  You’ll want to talk to an agent to help determine what your needs are and what type of plan is best suited for you.  Once you’ve invested, you can rest easy knowing your family will not have to struggle when you are no longer there.