Those whose jobs include health insurance benefits have it easy. The company that employs them pays a portion of their premiums. But what if you’re your own boss, if you’re not working for someone else? If you are one of those courageous self-employed individuals, or you’re planning on starting your own business either now or after retirement, this article will give you useful tips on how you can enjoy affordable self-employed health insurance even after quitting your current job.

Hold on to your earlier plan under COBRA
The best option for continuing to enjoy your employer-sponsored health insurance for some time even after leaving your job is through COBRA – the Consolidated Omnibus Budget Reconciliation Act of 1986.

COBRA allows people to extend their current health insurance coverage at permissible group rates for 18 months maximum after leaving their jobs, provided that their former company has 20 or more employees and they weren’t fired from their jobs for incompetence or gross negligence. More information on COBRA coverage can be obtained from the U.S. Department of Labor.

The down side to this plan is that as a self-employed individual, you will have to bear the entire cost of the insurance coverage. This will be a lot higher than what you might have been paying as a company employee. The Kaiser Family Foundation states that employees usually pay just 28% of their health insurance costs.

Decrease your premium cost in advance
This will require planning ahead of time. Before leaving your job, try and join the most economical health insurance plan made available by your company during the period of open enrollment that is closest to your quitting date. This will ensure a lower insurance premium to be paid later under COBRA.

Act before the time limit expires
Your COBRA eligibility ends after 180 days, and the law guarantees you the benefit of health insurance provided that you seek coverage under a brand new policy within a span of 63 days after that. Otherwise, your insurance application could most probably be rejected or any new policy you purchase might not allow coverage for a pre-existing health condition for up to one year.

Tie the knot
You might have heard that if you’re planning on self-employment, it would be an advantage to marry someone with a steady job. Another benefit would be cheaper health insurance, for it’s quite possible that joining your husband’s or wife’s health insurance plan will be less costly than other possible options, including COBRA.

Join an employers association
Once your business grows, you may start hiring employees. That is when you could save some money by getting affordable health insurance for your business by joining a business or professional employers association that offers group health insurance and several other benefits to small businesses.

Compare different health insurance quotes
Finally, before deciding on which self-employed health insurance plan to buy, do the research. Get quote comparisons either though agents or the internet. An online search could even provide information regarding the financial health of the different insurance companies.

Life is unpredictable and one must be prepared to face it.  Good moments in life are always accompanied by the difficult ones.  One enjoys the good times and does not think about any unforeseen circumstances that are likely to happen and hence there are times when one is unprepared to face life.

The biggest uncertainty in a person’s life is health and the toughest times are those when you or any of your family members is suffering from a critical illness.  A family with no insurance or a limited insurance which is also just not enough to pay off the bills is subjected to most critical risks during these times.  In such cases it is every penny going out of your home without any help coming in!  This justifies the reason why a Critical Illness Insurance is a must have at every home.

But what prevents us from going for a critical health insurance?  One would simply be the fact that there is a clear lack of understanding amongst the people about what a critical illness such bacterial meningitis, brain tumor or a leukemia may be.  And secondly, even when one hears or reads about it, these are actually not matters which we want to give time to think or acquire information about.

As a rule, it is necessary for every family to have themselves covered under health insurance.  Now that seems to be the simple one.  However is critical illness insurance a simple one too?  The answer is NO.  For finding the right critical illness insurance cover one needs to invest loads of time and do complete research.  The basic reason behind this is the fact that finally the insurance company is going to pay the insured a lump sum tax free amount immediately after any such critical illness is identified.

Critical illness insurance – is it a waste for money?

Yes, critical illness insurance is more costly than a life insurance, but here one must understand that the cover it provides is for a bigger risk.  A person is much more likely to have a critical illness prior to the retirement age.  In fact the average for claim is forty seven.

However there may be times when the insurance provider company rejects your claim at the last moment on some clear technical grounds.  This type of cases give the presumption that insurance companies are not worthy of trust.  On one hand, a situation like this provides a base for numerous stories of rejection, agony & trouble, but on the other it certainly is not a strong foothold to accuse the insurance company of being indifferent.

There are various reasons for a claim being rejected.  Like for example, when the policyholder claims for an illness that is not covered under his insurance plan.  Although harsh, but the fact remains that an illness which is not listed in your insurance plan will not be paid for.  Hence it is necessary to go to various insurance companies and opt for the one that provides benefit for maximum number of illnesses.

Also, it is essential to disclose all the information to the insurance company in a detailed manner.  If at all you fail to divulge any vital information related to the questions by the company on the insurance form, like for example if you are undergoing treatment for headache, there will be total wrong assessment on part of the company.  However a proper and open communication between you and your insurance providing company can help to have a healthy benefit during those times of need.

Seeking guidance from a professional critical illness insurance adviser will do the trick.  Keep yourself open for suggestions and evaluate the various available policies in the market to choose the one best suited to your needs.  After you are done with all this, go back to the most important thing – LIFE- and start enjoying it with the hope that you and your family be lucky enough to never have the need to claim your insurance.

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Looking at the way the cost of health care is escalating for everyone, particularly the self-employed, supplemental health insurance is fast becoming a necessity for anyone wanting to stay not only physically but also financially healthy.  Very often your traditional insurance plan may not cover all your medical needs.  Supplemental health insurance is designed to effectively cover the gaps in your primary health insurance.  It covers the additional expenses not taken care of by your primary insurance plan, like for example, lost income due to illness, and living expenses.

Supplemental Health Insurance thus gives you additional benefits, and is especially helpful when you need to tackle huge medical bills or maybe loss of salary because of illness or injury.  Therefore, supplemental health insurance can be considered as a secondary plan that gives you extra benefits and covers additional risk.

Supplemental health insurance plans like AFLAC offer a monetary benefit to those who are out of work because of either illness or injury.  But there are a number of other insurance companies in the market as well, who have different supplementary health insurance plans providing cash benefits for many other valid reasons.

The main benefits offered by supplemental health insurance policies are lower cost because of smaller benefit amounts, cash benefits, provision for offsetting any lost income unlike traditional health insurance policies, and often even coverage for any pre-existing conditions.

Supplemental health insurance that is the most common is the one designed for people covered by Medicare.  This doesn’t cover at-home care, long term health care, nursing homes, and prescription drugs.  Therefore, many seniors prefer to have a Medicare insurance supplement as also long term care insurance for ensuring their financial security.  But sadly, these two supplemental policies can cost up to 4,000 USD a year.

Other common supplemental plans are the hospital indemnity plans that offer specific cash benefits for the covered services including any hospital stays in case of emergencies as well as outpatient services, and basic supplemental medical insurance plans that offer cash payment for covered preventive medical care.  Then, there are the supplemental cancer insurance plans providing direct cash to the policy holders for different cancer treatments and other related expenses.  For covering critical illnesses, there are policies that provide lump sum monetary benefits to make it easier to pay for out of pocket expenses incurred due to heart attacks, heart surgeries, strokes, cancer, and several other illnesses.

Another situation that can be financially disastrous for anyone or any family is becoming unexpectedly disabled.  Disability income protection provides a safety net against unforeseen lost income by offering a monthly benefit to assist in paying the bills.  For those in need of long term care, there is long term care insurance for handling the high cost of assisted living facilities, adult day care, medical home care, etc.

People who should definitely opt for supplemental health insurance include the self-employed, those financially unable to cope with inflated medical bills or unexpected time away from work, families with children, and those who are on Medicare.

It is not possible for anyone to predict what their medical bills could be as illnesses can strike unexpectedly.  One year you could enjoy good health, but the next you or a family member could have a serious sickness or an accident and incur high medical expenses.  Out of pocket expenses for medical treatment could rise to thousands of dollars in a flash.  Health insurance ensures that you won’t have to pay out of your finances in case of unexpected health problems.

Yet, each year many people choose to go without any medical insurance, the main reason being the increasing costs of insurance premiums.  Those who have to pay for premium costs out of pocket in particular are concerned about paying a considerable amount of money, sometimes hundreds of dollars a month, for medical services that they might never use.  If one does not fall sick or get injured, premiums appear like money wasted.

Many people therefore wish they could get cheap health insurance to protect them from unexpectedly having to pay exorbitant medical bills.  But looking at the way the costs of hospitalization and doctors’ services are rising, you can’t blame anyone for being skeptical about the availability of cheap health insurance.

Current trends of buying health insurance indicate that many people are choosing health insurance with higher deductibles as these reduce the premium considerably.  Some plans have deductibles that are as high as $5000.

Cheap Health Insurance Plans for Self Employed or Unemployed

The people who have the benefit of great insurance are usually those enrolled in their company’s group plan.  The cost of health insurance is cheaper under group plans.  In addition to the discounted payments, the employer pays a part of the cost, thus making health care extremely affordable.  But people who are self employed or unemployed don’t enjoy such benefits and therefore need to find cheap health insurance quotes.

Many people find out the hard way that very often a cheap health insurance quote provides inadequate coverage.  The cheaper health insurance plans usually cover just basic medical needs like prescriptions and doctors’ visits.

So if you’re in need of affordable coverage, first assess the kind of coverage you actually need.  If you are in reasonably good health, you may not require extensive coverage.  However, if you engage in activities like playing sports that have a high injury potential, it would be better to pick an insurance plan that provides accident protection.  While comparing plans to find the cheapest one, don’t just consider the premium costs, but also the extent of coverage, deductibles and coinsurance.

Today the internet provides vital information in a jiffy and so the smart way of looking for a cheap health insurance quote is by way of the web.  Just type “health insurance quote” in a search engine of your choice and you’ll instantly get results for hundreds of quote providers.  Most will need the filling out of a form on their web page.  Submit the requested details, and they’ll give you links to a range of suitable health insurance companies.

Now all you have to do is carefully study the different quotes offered by each of the suggested companies and find out which one suits your needs the best.  You can do your research at your own pace and shortlist the best quotes without any pressure from salespersons or agents.  By getting online quotes, you’ll save time and money.

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Given how expensive different medical treatments are, it’s not surprising that more and more people are opting for health insurance coverage. But it can often be very confusing to understand the finer points of most policies. So let us start with the basics.

Health care insurance plans can be broadly divided into two types: 1) indemnity; and 2) managed care.

Indemnity health care insurance: This is also called “fee-for-service”. It offers the maximum flexibility as you will be able to choose your own doctor, hospital, clinic, etc. Unfortunately, it is also much more expensive than the managed type. You’ll have to pay much higher premiums and sometimes also for medical treatment. Not just that, you will also have to shell out money to pay for an annual deductible ranging from hundreds of dollars to maybe even a few thousand. And the deductible must be paid in advance for only then will the insurance company begin to pay for your health care expenses.

After you pay the annual deductible, the insurance company starts paying the portion of your medical bill that it owes you. Normally, the co-payment you have to make is about 20% while that of the company is 80%. However, if your doctor’s charges are higher, you might need to make a higher co-payment, for insurance companies normally only pay what they consider to be “usual and customary” fees for different services.

The high cost of indemnity health care is what deters a lot of people. Besides, it only offers coverage for illness or accidents; it does not cover preventive care products such as birth control medication and devices, or flu shots. Depending on your particular policy, it may or may not pay for any prescription drugs or even psychotherapy.

Managed care health insurance: It is almost the opposite of what indemnity care insurance signifies. A company that offers this type of plan is called a health maintenance organization (HMO). These have amongst the lowest deductibles. Under some plans there may be no deductibles to be paid at all. Co-payments are mostly fixed and low. Also, they cover most preventive care, prescription drugs, as well as mental health treatments. However, it is advisable to always check the extent of coverage beforehand.

Under a managed care health insurance plan, you can only choose from doctors, clinics, hospitals, etc., who are contracted by your HMO, and this is a major shortcoming of such plans. You cannot go to a health care provider of your choice. Besides, you can only receive coverage for medical services that are authorized under the plan you’ve chosen. The insurer will not pay for using the services of non-authorized providers and for non-authorized care.

Most people find such restrictions associated with managed care unacceptable. Therefore many managed care plans are being modified and now include hybrid plans. These basically blend elements of HMO coverage with some features of indemnity health care insurance.

Take for example the Point-of-Service (POS) plan. Under a POS plan, your overall costs will be low if you choose doctors and hospitals from within the insurance company’s network. Should you use services from outside the network specified for your plan, you will need to pay a higher deductible and higher co-payments.

One of the problems couples contemplating getting divorced have to confront is how to continue availing of health insurance benefits after the divorce.  Sometimes the husband and wife may both have employment, but only one of the spouses has a job that offers health insurance benefits.  Then, in other cases, one of the spouses is unemployed but is covered by the family health insurance benefits provided by the other partner’s employer.  When such couples go in for a divorce, they cannot be considered to be family members and therefore the spouse who was dependent on the other partner for getting health insurance benefits can no longer be covered by their partner’s health insurance policy.

Since health insurance is essential for everyone to ensure they can cope with the rising costs of health care, such couples need to find a way out so that both of them and their children can continue to enjoy health insurance coverage.

Health insurance is not always cheap. In cases where the cost of getting a separate health insurance policy for the dependent spouse after a divorce would be too high, they have a way to continue the benefits without any additional cost.  And that is to put off the divorce for some time and opt for a separation agreement instead.  Thus the couple can stay married and continue to be covered by the same insurance plan despite being separated.  The separation could help them prolong the period of enjoying health insurance benefits cost- effectively for some more time.  This way the partner without independent health insurance gets some time to work out a more permanent solution.

But separation could pose some problems, like for instance, the working partner’s tax filing status could be affected.  Then, implementing a separation agreement is difficult in some states.  In other states, one spouse may be permitted to get insurance benefits provided by the separation agreement for around a year or two and later legally seek other types of financial relief applicable after divorce.  However, you’ll have to take the advice of a licensed divorce attorney on these issues.  An experienced attorney would also be able to suggest other options to couples who absolutely want to get divorced without any delay.

For example, attorneys often suggest COBRA coverage to eligible couples.  This is a federal law that gives eligible individuals covered under any health insurance policy the right to continue coverage for a specific time period, but at their own cost.  For example, let’s say you have got a divorce and formerly you were covered under the family health insurance coverage provided by your ex-spouse’s employer, then the employer would be bound to provide you with COBRA coverage even after the divorce for a fixed time period.

The COBRA coverage would be under the same policy as before.  However, your coverage would now not be family, but individual, and instead of the employer, you would be required to pay the premium for that individual policy.  Very often, the unemployed spouse or the one earning a lesser income opts for COBRA coverage and then gets their spouse to pay for the coverage for a fixed period after the divorce.  This gives the spouse without independent coverage time to either get a job with coverage or earn enough money to pay for their own policy.

Technorati Tags: health insurance, divorce

Dental treatments are very costly and understandably dental insurance is extremely beneficial for coping with the spiraling costs of dentists’ services.  But with a whole range of dental insurance plans available today, it is not easy to make the right choice and pick the one that will best serve your individual needs or that of your family.

Before concluding from which plan you could get the best deal and the most benefits, you have to compare the different dental insurance plans and make a thorough analysis of what they offer.  To make this easier for you, we’ve listed a few important factors to consider before making your final selection.

Compare Dental Insurance Plans Online:

A reliable broker or agent could recommend a number of options that could be a good match for you.  But an online comparison of different available dental insurance options would certainly be a better way of doing in-depth research regarding, benefits, flexibility and price.  Insurance plans are extremely varied to begin with, and the internet is a valuable tool for comparing them.

Compare Dental Insurance Prices:

Price is an important factor. An online comparison would let you carefully view all the different plan options and all the various price ranges, making it easier to pick one that is just right for your budget.

A vital aspect of cost comparison is comparing the yearly maximum coverage under a particular plan on a regular basis.  The value of benefits available in one complete year is a crucial factor while choosing a dental insurance plan.  Yearly maximums are renewed automatically every year.  Also, remember that anything that has not been used within a particular year will not be carried over into the next.  Many of the dental insurance companies limit the average yearly maximum to $1000.

Compare Benefits of Dental Insurance Plans:

You’ll have to ask yourself a few questions while doing this. For instance – Will I be free to choose my own dentist under this plan?  Will insurance with co-pay be needed?  Are there restrictions of fixed dates and times for visiting the dentist for those covered by this insurance plan?

Regarding independent dental insurance plans, most only cover dental services administered from a dentist contracted by them or who is a part of their network.  So check if dental work will have to be done from only a participating dentist.  There are other plans that may allow you to stay with your current dentist, but it is essential to clarify this beforehand.

Check the Major Coverage of Dental Insurance:

Most dental insurance companies split their different dental procedures into three main categories – major, preventative, and restorative work. So inquire about their policies regarding these.  Different dental companies categorize the various dental procedures in their own way.  For instance, one may consider that root canals and crowns are a major procedure, whereas another may not.

Understand your Personal Needs:

Remember that the plan that suits someone else might not be the best one for you.  Some components of a particular dental insurance plan may be absolutely essential for others, but not for you.  You might not need many of the offerings listed under a particular plan.  So give serious thought to what your specific needs are and what is your objective for obtaining dental insurance first before selecting a plan.

The right dental insurance plan could help you look after your teeth with minimum costs.

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The best type of health insurance for those who are out of jobs, or between jobs, is temporary or short term health insurance, as it helps them tide over a tough period.  In fact, one of the biggest problems confronting those who have been suddenly handed the dreaded pink slip is how to take care of their health without the coverage of employer-sponsored health insurance.

Once a person loses his job, he has to often make significant changes to his lifestyle and economize to be able to pay for his basic needs without having to go bankrupt. At such a time, insurance benefits may not be given much importance and even considered as an unnecessary expense.  On the contrary, when finances are low due to unemployment, finding an affordable insurance plan is crucial for taking care of your health and ensuring that you don’t go into debt due to unexpected medical expenses.

Short term health insurance option

Short term health insurance is the best option for those who have recently graduated from college and are looking for employment, people who have lost their jobs or are part-timers, or those who have retired and are now waiting for Medicare. For many people who have lost their jobs, the first type of health insurance that comes to mind is often COBRA insurance. But though COBRA insurance can help you extend your earlier long term health insurance without a break in coverage, it is expensive, and sometimes even exceeds the cost of short term insurance.

Applying for temporary health insurance is a quick and simple procedure, with some plans becoming valid right from the next day. Just as in the case of traditional long term insurance, when it comes to short term health insurance too you can pick from a wide range of plans. Depending on the plan you choose, the maximum benefit amount will differ. Not just that, the applicable co-pays and deductibles can be customized for different plans as well. For instance, a plan drawn up for an early retiree will be different from a plan for a young part-timer.

Under a short term insurance policy, you will have coverage only for illnesses or injuries that you did not have earlier, as per the specified look-back period. No pre-existing medical conditions will be covered. However, you will get coverage for inpatient as well as outpatient care including diagnostic examinations, prescriptions, surgery, ambulance services, and in some cases also scheduled doctor visits.

Short term insurance plans exclude coverage for pregnancy and maternity, and almost all types of dental and optical treatment. Unless it is performed as part of reconstruction therapy, cosmetic surgery too is not covered.

Short term health insurance typically offers coverage for a limited period. And though you might want to persist with it for a longer time, ideally you shouldn’t try to stretch your short term coverage beyond one year. In case of uncertainty regarding your insurance situation, it would be better to renew the plan month by month, up till the maximum period permissible in the plan.

Technorati Tags: health insurance, COBRA insurance

It is every students dream to finish his academic course without any hindrance or obstacles.  This is precisely the reason as to why you as a student must plan for a health insurance.  It is necessary that you sit with your parents and talk about getting enrolled in an appropriate student health insurance plan.  By doing this, you will be able to concentrate on your academic course without any distractions and do not have to worry about the medical expenses.

It is very disturbing to note that around 1.7 million college going students are without a health insurance cover putting them in a high risk.  This report was recently released by the accounting department of the government.  The young college going group are considered the most healthy and they need to spend more time in the classrooms rather than in the medical rooms.

It also puts a great strain on the government spending and expenditure if the students remain uninsured.  The most alarming aspect is that as much as two thirds of the young students remain uninsured because the premiums and medical treatment are very expensive.  Looking at all these, many colleges have come forward with positive measures in providing health cover to students.  Many colleges before enrolling and admitting students for the new academic year have made health insurance for college students mandatory, and the students need to provide a proof of their student health insurance at the time of admission.

As discussed earlier, on the one hand the colleges are asking the students to provide a proof of their health cover; on the other hand many colleges are coming forward with their own health plans for students.  It is heartening to know that a good sixty percent of the colleges are offering student health insurance plans.  These insurance plans are offered by both the private and public colleges which offer four year academic courses.

There is one more good news for all of you.  The requirements for you to become eligible for the college health insurance plans are less rigid than the individual plans.  Once you are admitted as a student for a full time academic course, you become eligible for all the benefits under the student health insurance plan offered by your college.  In certain cases, your health insurance coverage extends even after you have completed your graduation course.

But this is where you need to be a bit cautious. Since you are required to pay relatively less premiums or you are covered by your colleges, you need to find out the extent to which your colleges will cover in the event of a major illness or accident.  On plenty of occasions, your college health plans will require you to take medical treatment from medical centers affiliated to your college. These medical centers may be far from your home.  This ideally would imply that you do not have any health coverage in the event of a serious illness or accident at your home or on your way to home.

Most of the health cover plans for students will not cover you outside the United States.  When undertaking a trip outside America, you need to make all the necessary arrangements to stay covered.  It has been observed that despite colleges coming up with health plans for the students, many students are still covered under the health plans taken by their parents.  This makes great sense since the students can avail all the facilities under their parents health plan, many of which the student health plan may not offer.  The most important factor being there is no break up in the health plan.

It has been found that for nearly 60% of all the health plans sponsored by the employers, the students need to be enrolled as full time students.  If a student is not covered by the health insurance plan of his college or parents, he may opt for an individual health plan.  But again as in the case of individual plans, he would be subject to strict terms and conditions and his medical history would be thoroughly scrutinized.

Technorati Tags: health insurance, student health insurance

Health care expenses constitute a large part of the monthly budget, particularly for elderly people.  That is why Medicare is a big boon for senior citizens and also the disabled.  It makes medical care more affordable.  But recent changes in Medicare insurance have reduced the benefits it offers.  For example, prescription drugs and some medical services covered under Medicare before are now either no longer covered or else not covered to the same extent as before.  Another problem faced by many elderly patients is that their medical expenses often exceed what Medicare covers and hence just Medicare insurance is insufficient for them.

Medigap Health Insurance – Blue Cross Blue Shield

That is when “Medigap” policies play a critical role.  These are health insurance plans offered by private companies to fill the gap left by the standard Medicare program.  Companies like Blue Cross and Blue Shield have developed a “Medigap” health insurance policy offering coverage for what Medicare no longer covers.  This is a type of supplementary insurance to the main Medicare insurance and involves payment of a premium.  Blue Cross Blue Shield insurance can prove to be very valuable to elderly people who are on a fixed income and have been badly affected by the changes introduced into Medicare in the last few years.  Those who fail to go in for a Medigap policy have no option but to forego necessary medications and even medical services.

The market is full of companies offering health insurance plans including Medigap policies of different types.  But which one should you choose? The benefits offered appear to be the same, but premiums vary.  So which company can you depend upon to provide the most benefits?

Our advice would be to stick to the same guidelines that you would apply when choosing a company for any other type of insurance plan.  What is most important is to make sure the policy meets your needs economically as well as in relation to coverage.  Also, the company should be familiar with Medicare plans.

Once such company that meets all these criteria is Blue Cross Blue Shield.  The company has assisted in the administration of the Medicare program for many years.  It fully understands how Medicare works and therefore they are a good company with which you could begin your research.

Unfortunately, many people wake up to the benefits of having supplementary health care insurance when something unexpected happens and they are suddenly faced with huge medical bills.  If you think you need help in deciding on the right company or the right type of plan, talk to any experienced insurance agent.  But ultimately, which company you pick will have to be one best suited to your individual needs, though Blue Cross Blue Shield’s policy could serve as an excellent guideline, especially considering they are well versed in how the Medicare health insurance program is administered.

Maybe you’re a senior citizen on a tight budget, and you’re wondering if you should take the chance of doing without Medigap insurance?  Well, there is no doubt that you absolutely should have supplementary insurance.  The crucial issue is picking the right company.

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