68. What is a health savings account? Is it a good option for me if I don’t have health coverage?
A: A health savings account (HSA) is a tax-advantaged savings account that’s used to pay for medical expenses. But unlike regular savings accounts, HSAs don’t stand alone. Rather, they are linked with high-deductible health insurance plans, which generally come with lower premiums than other insurance plans do.
Here’s how it works: You purchase an HSA-compatible high-deductible health insurance policy, which has a minimum deductible of $1,200 if you’re single and $2,400 for family coverage (in 2010; the deductible minimums are indexed annually for inflation). These plans are growing in popularity, so your employer may offer one: In fact, a 2008 survey by America’s Health Insurance Plans found that 6.1 million Americans were covered by HSA-qualified plans, including 4.6 million as part of an employer-sponsored plan. That’s up 35% from the year before. HSAs represented 27% of new purchases in the individual market, 31% of new enrollments in the small-group market, and 6% of new enrollments in the large-group market. If your employer offers this option, someone in the human resources or benefits department should be able to walk you through the process of setting up your account.
The idea is that you deposit the money you save on premiums—and any other dollars you can scrape together—into your HSA. Not only do you get a tax deduction for your contribution but also it can grow tax free, and withdrawals for qualified medical expenses are also tax free. In 2010, the maximum annual HSA contribution is $3,050 for an individual policy and $6,150 for family coverage. Individuals who are 55 or older can make catch-up contributions of $1,000 extra each year. There is no minimum contribution.
If you have an unused balance at the end of the year—and you might if you’re healthy—the amount rolls over year after year. You don’t lose the money, and it will continue to grow tax free.
THE MATH
How do a high-deductible plan and an HSA stack up against the standard individual health plan? Here’s a comparison based on plans in four major cities:
City: Los Angeles
Plan: Individual
Monthly Premium: $123
Co-insurance: 40%
Deductible: $900
Office Visits: $40
Plan: HSA
Monthly Premium: $121
Co-insurance: 0%
Deductible: $5,000
Office Visits: 0% after deductible
City: Dallas
Plan: Individual
Monthly Premium: $159
Co-insurance: 25%
Deductible: $1,000
Office Visits: 25% after deductible
Plan: HSA
Monthly Premium: $88
Co-insurance: 0%
Deductible: $5,000
Office Visits: 0% after deductible
City: Chicago
Plan: Individual
Monthly Premium: $212
Co-insurance: 20%
Deductible: $1,000
Office Visits: $30
Plan: HSA
Monthly Premium: $97.37
Co-insurance: 0%
Deductible: $5,000
Office Visits: 0% after deductible
City: Miami
Plan: Individual
Monthly Premium: $237.09
Co-insurance: 20%
Deductible: $1,000
Office Visits: $15
Plan: HSA
Monthly Premium: $146.84
Co-insurance: 0%
Deductible: $5,000
Office Visits: 0% after deductible
HSA = health savings account.
Rates as of May 1, 2009, from eHealthInsurance.com, for a 40-year-old man.
The beauty of an HSA is that you have full control over money in your account, and you can make your own health-care decisions until you reach your deductible with procedures or particular doctors approved by your insurer. You can also use the money to pay for any qualified medical expense (see box in Chapter 9), many of which aren’t covered by the typical insurance plan. And—perhaps better still—the money can be used to pay for medical expenses not only for yourself but also for your spouse or any dependents.
The downside? If you need to withdraw the money for an unqualified expense, you’ll be taxed at regular income tax rates and you’ll pay a 10% penalty if you’re younger than 65. Once you reach age 65, however, you can use the money to pay for things other than medical expenses. Withdrawals will be taxable as income but not penalized.
An HSA is likely a great option for you if you’re without coverage and the premiums on other plans you’ve found are just too expensive. A high-deductible plan may run you less than $100 a month this way. For more on finding a health insurance plan, turn to “How do I pick the right type of health insurance?” in Chapter 9.
WHAT IS A QUALIFIED MEDICAL EXPENSE?
I Also Need to Know…
Q: How do I open an HSA?
A: You can generally open one right at your local bank or credit union. You can do so on the first day of the month after your insurance coverage kicks in, or on the same day your policy becomes effective, if it starts on the first of the month (most do). Some accounts may require a minimum deposit, so make sure you have that money available before heading to the bank. It is usually minimal, less than $50. If you are funding your account through work, your benefits department will take care of opening the account for you. Many employers will allow you to fund the account through a “cafeteria plan,” which pulls the money out of your paycheck pretax. Keep in mind, though, that you can’t also take a deduction on your income taxes for these contributions.
Q: Is everyone eligible for an HSA? Are there income limitations?
A: There aren’t any income restrictions with an HSA. In fact, there isn’t a requirement of having earned income at all. But not everyone is eligible. If you’re covered by Medicare or you’re claimed as a dependent on someone else’s tax return, you can’t open an HSA. And you have to have a high-deductible health insurance plan and no other health insurance coverage.
Q: Can my employer contribute to my HSA for me?
A: Employers can, and better still, their contributions are not taxable to you. In fact, if your mom, your grandmother, your husband, or anyone, for that matter, wants to contribute to your HSA for you, they can do so and you can deduct the amount they contributed from your taxes. All contributions are restricted to the limits I mentioned above.
Q: Can I invest the money in my HSA?
A: Yes. HSAs are self-directed, the same way that IRAs are. You can invest your contributions in a range of options, including stocks, bonds, mutual funds, and CDs, or you can just leave it in a money market or savings account. But remember that you may need easy access to this money one day for health care, so you don’t want to take too much risk or tie it up so that you won’t be able to get it if you need it. Earning a bit of interest by putting a small portion into a CD or choosing an account that has a high-interest-rate money market option is one thing, but investing the bulk of your health savings in the stock market is another.
Q: Where does an HSA fall in my investment hierarchy? Should I put money in this account before or after I put it in my 401(k) and my child’s college savings account?
A: Your 401(k) comes first, particularly if your employer offers matching dollars. If you don’t have a 401(k), an IRA or Roth IRA gets first dibs on your money. Then you can fund—and max out, if you can—your HSA, because you may need that money for health expenses and it’s another opportunity to (1) get a tax deduction and (2) allow your money to grow tax free.
Your child’s savings account comes last, because, as hard as that may be to hear, there is plenty of money available for college in the form of financial aid and scholarships.
69. How do I pick the right type of health insurance?
A: Whether you’re in the midst of open enrollment at your job or you’re going at it alone, picking the right health insurance is all about knowing your needs, as well as the needs of your family, if you’re selecting coverage for them.
You should start, very simply, by sitting down and making a list. Consider not only the coverage you need now but also what you might need in the future:
Once you’ve worked through these questions, you can start looking for plans that match the answers. Most large companies will offer two or three different plans to employees. If that’s true of your employer, you want to go through each one and see where you’re going to get the most from your contribution. Compare:
The goal is to pay as little as possible while still getting the coverage you need, so you need to do a little cost-to-benefit analysis. HMOs, or health maintenance organizations, which require you to visit in-network doctors unless you want to be charged a hefty copayment, are generally the least expensive. If you’re single and your visits to the doctor are few and far between, this plan could be for you. PPOs, or preferred provider organizations, still involve a network of doctors, but it’s easier for you to visit specialists because they don’t require referrals. If you—or your family—go to the chiropractor or dermatologist regularly, this kind of plan is likely worth it. And high-deductible plans linked with an HSA come with inexpensive premiums and greater flexibility. They’re good for people who have negligible health expenses (you’ll pay out of pocket, from your contributions to the HSA, until you reach the deductible. For more on these, turn to “What is a health savings account? Is it a good option for me if I don’t have health coverage?” in Chapter 9).
Smaller companies, however, may only offer one plan, but that doesn’t necessarily mean that you’re stuck when it comes to cost and options. If your coworkers feel that the plan is lacking as well, you can talk to human resources—or, in most small companies, the owner or manager—and ask if they would be willing to add or change benefits the next time they negotiate the contract with the insurer. Sometimes, in the case of small businesses, if the employees agree on a change, it’s easy to lobby for it to be implemented, as long as it doesn’t cut into the company’s bottom line. Or you can go it alone. Whether you work for a large or small company, these days it pays to compare the amount you’re being asked to chip in for coverage with the amount it would cost you to go on a spouse’s plan, if that’s an option, or buy an individual or family plan on your own.
I Also Need to Know…
Q: I’m a single parent, and I don’t want to pay for a family policy at work for just my child and me. Is there a cheaper option?
A: You’re right; the choice at most companies is typically single coverage or family coverage, with no gray area. But you do have options here, as long as you’re willing to do a little legwork. With the family option offered by most companies, the premium is the same no matter how many children you have—a great deal if you have five children, but not so good if you only have one. So shop around on your own—start at eHealthInsurance.com—and see if you can find an individual plan for your child. You will likely be able to find something inexpensive, provided he or she doesn’t have a preexisting condition, and then you can sign yourself up for your employer’s plan as a single. If your child does have a preexisting medical condition, you should still shop around, but you might find that it’s cheaper to go with the family policy offered by your employer.
Also, if you fall into a low income bracket, you may be eligible for free or low-cost health insurance for your children through the U.S. Department of Health and Human Services. The eligibility rules vary by state, but in most states, uninsured children (age 18 or younger) whose families earn less than $34,100 a year are eligible. For information about your state’s program, go to www.insurekidsnow.gov or call 1877-KIDS-NOW.
Q: What is COBRA?
A: COBRA, or the Consolidated Omnibus Budget Reconciliation Act, requires companies with 20 or more employees to let you stay on the group health insurance policy for at least 18 months after you lose or leave your job. You’ll pay the full cost of coverage on your own, which is often considerably more than you’re used to paying, because many employers pick up all or half of the health insurance tab for employees still with the company.
If you’re young and healthy, you may be able to find coverage on your own for much less than your COBRA premiums. For more information, see “How do I buy my own health insurance?” in Chapter 9. If you’re older or you have preexisting conditions, you may be better off taking advantage of COBRA. On your own, you may pay more or be denied coverage altogether. Make sure you continue your policy using COBRA until you have found another way to cover yourself.
Q: What is HIPAA?
A: HIPAA (the Health Insurance Portability and Accountability Act) takes COBRA a step further: Under HIPAA, if you’ve been covered under a group policy in the past 63 days, you can’t be turned down for different coverage, even if you’re ill. That doesn’t, however, mean that the coverage has to be affordable: If you’re seriously ill, your premiums could be astronomical, depending on your state. You should shop around and compare your premiums under COBRA with quotes from individual policies.
70. How do I buy my own health insurance?
A: You may have heard that buying your own health insurance is impossible—or that it’ll cost you an arm and a leg. In reality, finding an individual health insurance policy often isn’t as bad—or as expensive—as you think. The number of carriers offering individual policies has grown in the past few years—in fact, eHealthInsurance.com, the biggest online marketplace, lists plans from about 175 companies and counting.
In fact, you may be able to get a better deal on coverage than you would from a group plan offered through your employer. In 45 states, insurance companies can accept or reject potential customers based on their health history. If you’re healthy and live in one of these states, you’ll get a better deal than you expect. If you’re not, prices may be prohibitively expensive.
In the remaining five states—Maine, Massachusetts, New Jersey, New York, and Vermont—insurers are required to extend a policy to everyone, regardless of health status. This is called guaranteed issue, and as a result, even if you’re healthy, you’ll pay more if you live in any of those states.
Let’s break it down. If you’re healthy or you live in one of the five states with a guaranteed-issue policy, the first thing you want to do is figure out what kind of coverage you need. For more, turn to “How do I pick the right type of health insurance?” in Chapter 9. Basically, you’re going to figure out what kind of health-care consumer you are by answering a few quick questions.
Once you know what you need out of a plan, you can start shopping. First, head to eHealthInsurance.com or other comparison shopping sites such as Insure.com or Insurance.com. Type in your age, your ZIP code, your sex, and whether you are a smoker. A list of options will pop up, along with the various prices. You will want to narrow down the options. Individual plans generally come with a menu of options so that you can pick and choose.
When you have three or four plans in mind, compare them side by side to figure out where your dollars are best spent. Consider everything—copays, deductible, out-of-pocket expense limits—and make sure that the costs align with your needs. If you visit the doctor often, for example, you want to make sure office visits are covered. If you take a lot of prescription medications, be sure that the copay for those is low. When you have a plan that meets your budget and your needs, go ahead and apply.
But what if you have a chronic illness or you’re otherwise uninsurable? If you’re turned down for coverage, many states have state-sponsored health insurance pools that you can buy into, albeit at a higher cost. To find out if your state offers such a plan—and how much your policy would cost—call your state’s department of insurance or visit it online.
Other options? You can join a professional association that offers a group insurance plan for members, although you want to shop around because the rates may not be better than those you’d find on an individual plan. Or you may be able to form your own small group if you own your own company. In many states, you can make a group with as few as two employees, including yourself, as long as each works a minimum number of hours per week. The rules vary by state.
I Also Need to Know…
Q: Should I use a broker?
A: Sure, if you can find a licensed broker who sells a wide range of policies from a number of different carriers. Going to a broker is free to you; the insurance companies pay them on a commission basis. But that’s why it’s so important to use one who has a large network of policies available—otherwise, you may be pressured into buying coverage that either isn’t right for you or isn’t the best value, just so the broker can mark down a sale.
To find a broker in your area, go to the National Association of Health Underwriters (www.nahu.org). All insurance advisors must be licensed, and they are regulated by state insurance departments.
Q: Do you have any tips for saving on health insurance premiums?
A: The best way to cut the cost of insurance premiums is raising your deductible. A deductible of $2,000 may save you 40% to 50% of your monthly premium, which is a significant amount of money. But you have to be able to pay for services upfront until you reach the deductible. One of the best ways to ensure that you can do that is by linking a high-deductible health insurance plan with an HSA (for more, turn to “What is a health savings account? Is it a good option for me if I don’t have health coverage?” in Chapter 9).
You should also take care to eliminate any coverage you don’t need. If you’re not planning to have children, cut out the maternity coverage. If you don’t take a lot of prescription drugs, go with a plan with higher copays in exchange for lower monthly premiums.
Q: Can I deduct the premiums I pay on my taxes?
A: You can deduct the premiums if you pay them after tax, but there’s a catch: Medical expenses are deductible only to the extent that they exceed 7.5% of your adjusted gross income. So if you make $40,000 a year and you spend $3,500 on your premiums and other unreimbursed medical expenses, you can deduct $500.
For most people, it’s hard to make this mark, and it’s easier to take the standard deduction. But if you have a lot of medical expenses, it’s worth it to run the numbers to see if you qualify.
One exception to the rule: If you’re self-employed, you saw a net profit in the year for which you are filing, and you’re not eligible for coverage under either your own or your spouse’s employer-subsidized health plan, you can deduct all of your health insurance premiums.
Q: Can you explain the different types of health insurance plans?
A: There are two main types of health insurance plans—and each has a few subtypes:
Types of indemnity plans:
Types of managed-care plans:
Q: What happens if I have a preexisting condition?
A: As I write this, most individual health plans still come with an exclusion period for preexisting conditions. That may mean the plan won’t cover medical costs related to your condition for a year or more. Some states limit the period to 12 months, but others let it stretch to 24 or even longer—in fact, in some states, insurers can attach riders to policies that permanently exclude preexisting conditions.
If you find yourself facing a period like this, you’ll need to estimate what your medical costs might be during that time, using the worst-case scenario as your guide. Bank the cash so that you can cover your expenses and get all the care you can before you leave your prior plan, if possible. Then, particularly if the exclusion period in your state is open-ended, you should work with a broker to help you apply to multiple carriers at the same time. They all underwrite policies differently, so one may turn you down but another may accept you. A broker will know which carrier offers the best chance of acceptance.
71. How do I get my health insurance company to pay a claim?
A: We’ve all been in this scenario. You file a claim with your health insurer but instead of receiving a check, you receive a denial. Or worse, a bill. What do you do?
Throughout the process, keep written records, including lists of all the people you’ve spoken with by phone, notes of when those conversations took place and what transpired, copies of any letters you’ve sent, the dates of your procedures, and the bills from your doctor.
I Also Need to Know…
Q: Is it worth it?
A: Absolutely. Some insurance companies seem to have a standard policy to deny claims the first time around, and all insurance companies make the occasional error. If you can see in black and white that your claim should be covered under your policy, you should fight until the end. In many cases, we’re talking about thousands of dollars, and often more.
Q: My insurance company’s process seems confusing. Is there someone who can help me sort through everything?
A: Yes. Many states have consumer assistants within their departments of insurance, so that’s the place to start. If you strike out there, a handful of nonprofit organizations will serve as a liaison between you and the insurance company. The Patient Advocate Foundation (www.patientadvocate.org) is probably the best-known example. If you have a specific condition or disease and there is a not-for-profit advocacy group associated with it, that organization may have individuals who can help as well. Finally, if your dispute involves a hospital procedure or stay, most hospitals have patient advocates available to work with you on this issue, as well as on paying your medical bills over time if your claim is denied ultimately.
72. What’s the best way to negotiate with a doctor or hospital about payment options?
A: If you don’t have health insurance, your policy doesn’t cover office visits or a treatment you required, or you just haven’t met your deductible yet, discuss payment options with your doctor or hospital. Many will be more than willing to work with you. Here are a few tactics you can use to trim your bill:
73. Is there a formula that I can use to determine how much life insurance I need?
A: There are many formulas, but I don’t like them. Just as it’s hard to go by rules of thumb to determine how much you need to save for retirement, it’s hard to use grids to figure out how much life insurance to buy. Don’t get me wrong—you’ll find plenty of these charts online. But their abundance doesn’t mean that they are reliable.
Figuring out how much you need means taking a look at your current income and how much of it your dependents (children, partner, aging parents) would need to replace if you died. You must look at how many years they’d need to replace that income for, which raises additional questions about how close your children are to being self-sufficient, and whether your mate would be able to generate a higher income. And you need to look at whether you’d want your death benefit to pay for college, pay off the mortgage, or provide an inheritance for your spouse or your children.
Most of the formulas out there don’t ask those questions. Instead, they tell you to multiply your income by seven or eight or they calculate a dollar amount that is only enough to cover the debt you have at this point. Instead, go through the process with a good online calculator—I like the ones at Insure.com and Insurance.com—or use the worksheet provided here. You may also want to go ahead and sit down with a life insurance agent or two to get a recommendation. (Just remember that these people sell life insurance for a living, so they have an incentive to get you to buy more than you may need or want. And keep in mind that term life insurance is far, far cheaper than cash-value life insurance and is perfectly sufficient for most people’s needs. For more on the term-versus-whole argument, see “Which should I buy—term or permanent life insurance?” in Chapter 9.)
THE MATH
Prefer pen and paper over online tools? Here’s a worksheet that will help you ballpark your life insurance needs:
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
Source: USAA Educational Foundation, www.usaaedfoundation.org/.
I Also Need to Know…
Q: When should I buy life insurance?
A: When you need it. I’m not being flip. The time to buy life insurance is when you begin supporting someone else—and that person or those people would be hurting without your income. By this logic, singles do not need life insurance and children do not need life insurance. And yet there are many policies sold every year on the lives of singles and children, often on the basis of a sales pitch. Don’t buy one. You’re best off buying life insurance while you’re healthy—as well as fairly young—and locking into a premium that is level for the next 20 or 30 years so that you don’t have to go through an additional medical exam.
Q: How much should I expect to pay?
A: Your life insurance premiums will be based on how much coverage you need, the term of your policy, your current health (including whether you smoke), your family history of illness or disease, and the kind of life insurance you’re buying. You should get personalized quotes from a few different companies before selecting a policy—you’ll go through a physical only after you apply for particular coverage—but check out the chart on average annual premiums for a general idea:
$250,000 TERM LIFE POLICY AVERAGE ANNUAL PREMIUMS
Female, age 30
10 YEARS: $108
20 YEARS: $148
30 YEARS: $203
Male, age 30
10 YEARS: $108
20 YEARS: $148
30 YEARS: $228
Female age 40
10 YEARS: $130
20 YEARS: $198
30 YEARS: $308
Male, age 40
10 YEARS: $130
20 YEARS: $198
30 YEARS: $335
Female, age 50
10 YEARS: $250
20 YEARS: $370
30 YEARS: $585
Male, age 50
10 YEARS: $250
20 YEARS: $503
30 YEARS: $768
$500,000 TERM LIFE POLICY AVERAGE ANNUAL PREMIUMS
Female, age 30
10 YEARS: $155
20 YEARS: $235
30 YEARS: $325
Male, age 30
10 YEARS: $155
20 YEARS: $235
30 YEARS: $385
Female, age 40
10 YEARS: $200
20 YEARS: $305
30 YEARS: $495
Male, age 40
10 YEARS: $200
20 YEARS: $335
30 YEARS: $610
Female, age 50
10 YEARS: $435
20 YEARS: $680
30 YEARS: $1,120
Male, age 50
10 YEARS: $440
20 YEARS: $945
30 YEARS: $1,475
$1 MILLION TERM LIFE POLICY AVERAGE ANNUAL PREMIUMS
Female, age 30
10 YEARS: $230
20 YEARS: $370
30 YEARS: $550
Male, age 30
10 YEARS: $230
20 YEARS: $400
30 YEARS: $670
Female, age 40
10 YEARS: $320
20 YEARS: $520
30 YEARS: $820
Male, age 40
10 YEARS: $330
20 YEARS: $600
30 YEARS: $1,150
Female, age 50
10 YEARS: $755
20 YEARS: $1,285
30 YEARS: $2,100
Male, age 50
10 YEARS: $810
20 YEARS: $1,800
30 YEARS: $2,830
Source: Insure.com, October 2008.
74. My 10-year term life insurance policy is expiring soon. What is the best option for me?
A: Many term life insurance policies allow you to renew your coverage when the policy expires, but not always at the same rate: Term life insurance policies are priced on your age and health—as well as market conditions—when you buy them. Ten, 20, 30 years down the road (if you opted for a long-term policy), re-upping will likely cost more.
A few months before your term policy expires, give yourself—and your family—a once-over. Do you still have children at home, or in college? Does your partner rely on your income? Do you have debt that would become a burden to your family if you weren’t around? How healthy are you?
Once you outline the answers to these questions, it’s time to do some research. You have four basic options: You can renew coverage with your current policy, you can convert to a permanent policy, you can purchase a new term policy, or you can forgo life insurance altogether. Let’s break them down:
THE MATH
Let’s see how some of these scenarios play out for a 40-year-old man looking for $300,000 worth of coverage:
If he’s in good health and decides to purchase a new term policy, his annual premiums would be about $231 for a 10-year term, $369 for a 20-year term, or $446 for a 30-year term.
If he isn’t in good health and wants to convert to a permanent policy, he would pay about $1,848 for a universal life policy.
If he isn’t in good health and decides to continue his current policy after the guaranteed term, his premiums could jump to $504 for a 10-year term, $693 for a 20-year term, and $1,017 for a 30-year term.
I Also Need to Know…
Q: What is guaranteed-issue life insurance?
A: Guaranteed-issue policies are for people who couldn’t get life insurance if they had to undergo a medical exam, because of health issues that would make them too risky in the eyes of the insurer. You may also have heard of quick-issue or simplified-issue policies, which ask applicants medical questions but don’t require a medical examination.
If you’re thinking that it sounds like there’s probably a catch, you’re right. Not only do guaranteed-issue policies come with more expensive premiums—sometimes three times as expensive—but also many have low benefit limits of $20,000 or so because they are designed to cover funeral expenses. They also tend to have age limits of 45 or 50. However, if you need coverage, and this is the only way you can get it, it’s something to look into if you have the money.
Q: What is a “return of premium” policy?
A: With standard term life insurance policies, if your term expires and you’re still alive, there is no benefit. For consumers who want the benefits of cash value coverage at a somewhat lower price, insurance companies have started selling term life policies with a “return of premium” feature. You’ll pay more for one of these policies than you would for a standard term policy, but if you don’t use the benefit—and many people don’t—either all or a portion of it will be returned to you. Some companies cut you a check for the premium you would pay for a term policy—without the additional amount you paid for the return of premium add-on—and others will return the entire amount. Look into how long you have to keep the policy, before signing on. Many lock you in—otherwise you give up the benefit completely.
75. Which should I buy—term or permanent life insurance?
A: First, the differences:
The one notable downside of term insurance is that it becomes more expensive to buy as you age, particularly if your health declines. A policy that costs you very little when you are 30 and in prime condition may whack the budget when you’re 55 and taking beta-blockers. For that reason, if you’re buying term, you want to find a way to stabilize your premiums for as long as possible.
The easiest way to do this is with a level-premium term policy. Your premiums will remain the same throughout the term, whether that’s 10 years, 20 years, or 30 years. How long a term you should purchase depends on how long you’re going to need the insurance. Some people want to replace their income only until their children graduate from college. So if you have a toddler, you’d get a 20-year policy. If your youngest child is 15, you may need only a 10-year policy. To figure out the benefit amount you need, turn to Chapter 9 and read “Is there a formula that I can use to determine how much life insurance I need?”
Q: What if you take out a term life policy and later decide you would have been better off with permanent insurance—or that you want to continue your insurance without taking another physical?
A: There’s a solution for this dilemma, too. When you buy term insurance, make sure that it allows you to convert to permanent insurance without having to prove that you’re still in good health. You have to do it during a specific period of time, though, and the conversion period is generally shorter than the length of your term coverage. If you have questions, call the insurer or the agent who sold you the policy to make sure you don’t miss the deadline.
Q: Are there scenarios where permanent insurance is best?
A: Yes. If you have a child with special needs, you may need to provide survivor benefits for him or her whether you live for the next 10 years or the next 70 years, because that child will continue to be reliant on your income. In this case, it would make sense to buy a permanent life policy because you don’t want to risk your term policy being unrenewable if you suffer a health setback in later life—or simply if you age.
Some people also use life insurance as a way to provide an inheritance for their heirs, special needs or not. It becomes part of an estate plan, and if you want life insurance for that purpose, permanent policies are best because they offer both a death benefit and a savings vehicle. They also stay in place whether you die in 10 years or 60 years. At that point, your heirs will receive your benefit. With a term policy, if the term expires and you’re still alive, there is no benefit and thus no inheritance.
Q: What is the difference between universal, variable, and variable universal life policies?
A: These are all variations of a whole life policy, so they all have investment components. Here is how it breaks down:
Q: Should I purchase a variable or variable universal life insurance policy as an investment for retirement?
A: I don’t think so. You’re better off investing for retirement in other tax-advantaged vehicles—a 401(k), IRA, or Roth IRA—and letting life insurance do what it does best, which is support your family in the event of your death.
The problem with using your life insurance as a retirement investment vehicle is that these policies often come with hefty fees. Investment-management fees can be as much as 2% a year, annual mortality and expense charges are another 1%, and there are fees for insurance protection, which are nearly always more than you would pay for a standard term life policy. There may also be commission charges when you purchase the policy.
THE MATH
Take an example of a 35-year-old man in need of $500,000 worth of coverage.
76. Do I need insurance for long-term care?
A: There are two schools of thought here: those who believe you need insurance for long-term care no matter what and those who think you need it only if you fall into a certain income range.
I tend to agree with the second school, but let me lay out both arguments for you:
Those who say you need insurance for long-term care at any income or asset level do so because your having the padding of one of these policies can preserve your wealth for your heirs and save you a lot of heartache. Such insurance also gives you more freedom of choice if you should need to move into a nursing home or assisted-living facility, whereas Medicaid restricts your options considerably.
The second group argues that if you have a significant amount of assets—upward of $2.5 million or $3 million—you don’t need insurance for long-term care because you’ll be able to pay for your own care. If you have little to no assets—less than $300,000—you’ll spend them down and then Medicaid will pick up the tab. Insurance for long-term care is pricey, with premiums north of $1,800 a year, depending on your age and health. And if you get coverage and one day find yourself unable to afford the premiums, in most cases, you’re out of luck: The money you paid into the policy will be gone.
One thing that most people do agree on, though, is that no one is exempt from the possibility of long-term care itself. About half of Americans who live to age 65 will require some kind of long-term care. Nursing homes cost about $212 a day, according to a 2008 MetLife survey, and that number is rising each year. It’s safe to say that you can expect to pay upward of $75,000 for a year’s stay, and more in some areas: In Alaska, for instance, nursing-home care averages $577 a day; in Louisiana, the average is only $132.
So what’s the answer? Insurance for long-term care is not for everyone. It is not for people who can’t afford to maintain the premium payments. And it’s not for people who can self-insure rather than preserve their inheritance for their children or other heirs.
You should evaluate your own personal circumstances. If illness runs in your family and many of your elders have lived out their last days in nursing homes, you may get your money’s worth out of a policy, but in most cases, I’d go by the income thresholds I’ve mentioned. Here’s a look at what premiums are likely to run.
AVERAGE ANNUAL PREMIUMS—LONG-TERM CARE INSURANCE
AGE: 55–64
ANNUAL PREMIUM ($): 1,877
AGE: 65–69
ANNUAL PREMIUM ($): 2,003
AGE: 70–74
ANNUAL PREMIUM ($): 2,341
AGE: 75 or older
ANNUAL PREMIUM ($): 2,604
AGE: All ages
ANNUAL PREMIUM ($): 1,973
Source: U.S. Department of Health and Human Services.
THE MATH
How much money would you be able to sock away if you invested your money instead of paying premiums for insurance for long-term care?
Let’s take the example of a 55-year-old woman, paying $1,877 a year in premiums for her long-term care policy. If she invested that $1,877 each year instead at an 8% return, she would have a nest egg of $254,219 at age 85.
I Also Need to Know…
Q: When should I buy insurance for long-term care?
A: The longer you wait, the more expensive your premiums will be, and if you develop an illness that might necessitate care, forget it—you won’t be able to get a policy. The best time to buy, then, is your fifties. This is the time frame that will still allow you to get a good rate, but you won’t be throwing money away by purchasing a policy too early and having to pay the premiums for 35, 40, or even 45 years.
Q: What should I look for in a policy?
A: Several things:
Q: What is a partnership plan?
A: In most cases, before you qualify for Medicaid, you must spend down your assets. But if you live in a state that participates in the Partnership for Long-Term Care program, you can qualify for Medicaid without spending down your assets. Currently, there are four such states: California, Indiana, New York, and Connecticut.
Here’s how it works: You must purchase a long-term-care insurance policy that falls within the guidelines outlined by your state (typically, it must provide basic benefits). If you require long-term care, that policy will kick in, protecting your assets. Once your policy is exhausted, Medicaid will step in and pick up the slack. You are allowed to keep assets up to the amount of the long-term care benefits you purchased while still qualifying for benefits. So if, for example, you purchase $300,000 of long-term care coverage, you can keep $300,000 of assets and still qualify for Medicaid once your coverage depletes.
For more, go to Medicaid’s Web site (www.cms.hhs.gov/home/medicaid.asp). We expect more and more states will pass these programs in the next few years.
77. Do I need disability insurance? What’s the best way to buy it?
A: Disability insurance is the most overlooked type of insurance, but it’s one of the most important.
By most estimates, if you’re between the ages of 35 and 65, you have about a 30% chance of becoming disabled at some point. Disability insurance, if you have it, replaces a portion of your income if you become injured or ill and are unable to work. Policies vary—some cover you only if you are not able to work at all, others cover you if you are not able to work in your present occupation—but unless you or your family would be able to get by without your income, you should be considering disability insurance.
That means that if you’re single and without another income to tide you over, it’s a must. If you’re the primary breadwinner and your partner couldn’t easily transition into the workforce, it’s also a must. If you and your partner both make good salaries and you could live off one of them if need be, it is not as necessary. The reason not enough people have it is that it tends to be expensive. But that’s no reason to forgo it.
How do you find coverage? Start with your employer or benefits department. If your employer offers a group plan, it is likely to be much less expensive than individual coverage. Of course, you should evaluate what’s offered. Many employer-sponsored plans are bare bones: They’ll replace 60% of your salary but not bonuses; they come with a cap on benefits, usually less than $75,000; and they limit the amount of time they will pay benefits to as few as two years.
That means that if you make a salary of $50,000, you’ll receive $30,000 if you’re out of work for a year. If you make $200,000, you may receive only $75,000, and perhaps even less. Your benefits are also taxable, so in reality you’ll end up with much less. And if you’re not able to go back to work within two years, you either have to find another job that you can do in spite of your disability or prove that you can’t work, period. Otherwise, your benefits will vanish.
None of these, though, is reason enough to turn down your coverage from work and hit the market solo. Instead, take your employer’s policy and then add an individual plan on top of that.
To do that (or if you don’t have employer coverage at all and are buying full coverage on your own), you should shop around. Insurance.com and Insure.com both offer disability insurance quotes. Many life insurance agents also sell disability coverage. You can also find an agent through the National Association of Health Underwriters, at www.nahu.org.
Disability insurance plans are fraught with complicated language and unfamiliar terminology. Here is a look at the lingo you need to understand to make a smart decision:
Q: How much disability coverage do I need?
A: Most policies will replace no more than 60% to 70% of your total taxable income. Why not more? Because the insurer wants you to have an incentive to return to work. As a general rule, you should aim to purchase enough to hit these percentages. However, if you think you can afford to live on less, you can purchase a smaller amount of coverage and save on monthly premiums.
You need to buy coverage only through age 65 when your Social Security Disability Insurance coverage (SSDI) will take over.
Q: What’s the difference between short-term and long-term disability insurance?
A: Short-term disability policies generally have a waiting period of less than 14 days before coverage kicks in, and the benefit lasts for no more than two years. Long-term policies have an extended waiting period, and the maximum benefit period can vary, although it’s generally either until age 65 or for the remainder of your life.
Q: Any tips for cutting costs here?
A: The best way to save on a disability policy—aside from shopping around to find the best rate in the first place—is by extending the waiting period before coverage kicks in. If you go from 30 days to 60 days, you’ll save about 30% off your premiums. Going from 60 to 90 days will save you another 10%, and extending from 90 to 180 days will shave off another 10%. Just be sure you have enough resources to get you by in the meantime.
THE STATS
78. How do I save on homeowner’s insurance?
A: Before we can talk about saving money, we need to talk about getting the right amount of coverage on your home. There are two basic types of homeowner’s insurance—replacement-cost coverage and cash-value coverage. When you buy cash-value coverage, you buy enough insurance to pay you back for the depreciated value of your home—and your personal property—should there be a total loss. It’s cheaper than replacement-cost coverage but not a better deal. With cash-value coverage, you sacrifice the ability to rebuild your home completely.
With replacement-cost coverage, you’re insuring your home for the cost to rebuild it, not the market value. That’s an important distinction. If your home would sell for $500,000 but you could rebuild for $300,000, you need a policy that covers only $300,000. Why the difference? The value of your home is determined by factors other than the home itself—schools, the neighborhood, the amount of land surrounding it. When it comes to homeowner’s insurance, you’re not covering the land you own, only the home itself.
To find your magic number, you do a walk-through (with an appraiser from your insurer, typically) and estimate the replacement cost. Be sure that this person takes note of any features you would want to replicate if you had to rebuild, such as molding, expensive flooring, and upgraded appliances.
Once you know how much you need, you can begin to shop around. There are two rules to follow: (1) cast a wide net and (2) ask for discounts. If you already have an auto insurer that isn’t currently providing insurance on your home, that’s the first place to begin. As long as you’re a good customer with a decent claims history, you can expect a discount of 10% to 15%.
Next, survey the marketplace. Web sites such as Insure.com and Insurance.com allow you to request quotes from several different carriers and see who offers you the best premiums.
At that point, it’s time to take the top two or three and pick up the phone to see if you can drive the cost down further by pointing out the sorts of discounts for which you might be eligible. Your insurance premiums are based on the level of risk the insurance company is taking on by offering you a policy. To get the best price on that policy, you need to minimize the risk you represent. You can lower your risk profile by
But remember, cost isn’t the only consideration here. Once you have a few quotes in hand, check your state’s insurance department for the number of complaints filed against the companies you are considering. Most offer online guides for consumers, where you can find the number of complaints filed with each company. If a particular policy is cheap but the company is notorious for a delayed response to claims, you’re better off paying a little more. You also want to check the financial health of all insurers via the Web site of insurance ratings agencies Standard & Poor’s (www.standardandpoors.com) or Moody’s (www.moodys.com). Look for a rating of A or higher from Standard & Poor’s and at least AA from Moody’s.
THE MATH
See how making just a few tweaks can cause your premiums to take a dive:
Install a security alarm, deadbolt lock, smoke alarm, or fire extinguisher
Savings: 5%
Raise your deductible from $250 to $1,000
Savings: 25%
Ask for a loyalty discount if you’ve been a good customer for several years
Savings: 5%
Inquire about discounts for retirees. Because it is assumed that you’ll be home more often, most insurers offer them.
Savings: 10%
Overall savings potential: $299, based on the average homeowner’s insurance premium of $764
I Also Need to Know…
Q: What exactly does my policy cover?
A: A standard policy will cover
Your belongings are generally insured for up to 70% of the amount of insurance you have on the home. So if you valued your home at $300,000, your belongings would be covered up to $210,000. If you don’t think that is enough, you should do an inventory of your home and buy additional coverage.
As a general rule, you want to purchase about $300,000 worth of liability coverage.
Q: How often should I revisit my coverage?
A: It’s a good idea to look over your policy once a year, particularly if you’ve made any major changes to the home—an addition or the remodeling of your kitchen will increase the home’s replacement value. Most insurers will automatically adjust your coverage for inflation.
Q: Does my homeowner’s policy cover belongings in my child’s college dorm room?
A: It should, yes. If your child’s belongings are destroyed in a fire or burglary, your policy will likely cover them, but only while he or she is living in the dorm. If and when your child moves into his own apartment off campus, he or she (or you) will need to look into purchasing a renter’s insurance policy. For more on renter’s insurance, see “How do I know if I need renter’s insurance?” below.
79. How do I know if I need renter’s insurance?
A: If you rent your home or apartment, you need renter’s insurance.
Most landlords won’t cover your belongings after a fire or break-in, so buying your own policy makes sense. You may not think you have many valuable possessions, but if you add up the cost of your computer, television, camera, jewelry, and a few other items, they’d be worth a lot more than you realize. And because you’re only covering your possessions, as opposed to the physical building, the premiums on policies for renters tend to be low.
There are two categories of renter’s insurance. The first, called actual cash value, pays to replace what you lost, after a small deduction for depreciation. The second, called replacement cost, will pay the real cost of replacing your belongings, without taking depreciation into consideration. This option is more expensive but it’s worth the extra money, particularly if you have older electronics such as a television. You might have spent $500 on it, but if it’s worth only $200 now, that’s all you’re going to get with a cash value policy.
If you experience a disaster, such as a fire in your home, a good policy will also step in and cover your living expenses if you’re forced out of your home. Costs such as hotel bills, another rental, and meals (within limits) qualify. Most renter’s policies also provide liability coverage, so if you or your pet injures someone, either in your home or out, the injured person’s medical bills should be covered, as well as any legal costs you incur if the person decides to sue. The exception: liability from car accidents, which would be covered under your auto policy.
As far as the possessions covered, you need to take an inventory to figure out how much your belongings are worth and then buy a policy that is based on that number. Add up the value of everything you own, keeping in mind that there will be coverage limits on valuable items such as jewelry and art. Most companies will put a cap of $1,000 or $2,000 on these items. If you have items worth more, you’ll have to purchase additional coverage with an add-on policy called a rider.
I Also Need to Know…
Q: How do I buy renter’s insurance?
A: Just as you would with any other insurance product, you want to shop around. You can use Web sites to request a number of quotes and then compare them side by side. What to look for:
Keep in mind that if you bundle your policies, you may get a deal. Check with the company that handles your auto insurance and see if it will give you a discount for adding another policy.
Q: How much will it cost?
A: You can generally find basic coverage for about $200 a year.
Q: How can I reduce my premium?
A: The easiest way is to increase your deductible, which means you’ll pay more before the insurance kicks in. But many companies will also give you a discount if you have an alarm system, smoke detectors, and other safety mechanisms in place.
Q: Does my policy cover flooding?
A: Probably not—most homeowner’s and renter’s insurance policies don’t—and if it does, it may not cover enough. You must buy a separate policy if you live in a designated flood zone (for more information, check out www.floodsmart.gov).
THE STATS
80. Do most homeowner’s policies cover my jewelry or other valuables?
A: Most policies have a provision that will cover only a portion of valuable jewelry and art—often only up to $1,500. The same goes for other big-ticket items: pricey electronics, furs, instruments, antique furniture.
Check with your insurer about any valuable items you own, and if they’re not covered completely, discuss purchasing a separate policy called a “rider.” Generally this provision will also cover you if you lose the item yourself, which is a major plus when it comes to jewelry.
The annual premium on a rider or stand-alone policy for jewelry, for instance, will probably be about $10 to $15 per $1,000 of coverage, but it depends where you live. In a big city, where there tends to be more loss and more theft, you’ll pay more. For example, in New York, where I live, I might pay $20 per $1,000 of jewelry coverage. Still, it’s inexpensive in the grand scheme of things: You can cover a $5,000 piece for about $50 to $125 a year, a $10,000 piece for $100 to $250 a year, and a $50,000 piece for $500 to $1,250 a year. You can also fiddle with your deductible to lower the price, but remember that if you want to replace the item if lost, you’ll have to pay the deductible before the insurance company steps up.
You also need to increase the value of your policy annually to account for inflation. If you don’t, and you lose your engagement ring ten years after it was purchased, the insurance will only cover the purchase price, not the current value of the ring. There could be a big difference, particularly if the price of gold is on the rise. The same, of course, is true for art, which may appreciate. Electronics aren’t as likely to follow suit—and may even decrease in price. But your insurance agent will help you calculate the increase amount. You’ll likely want to have most items reappraised every few years.
QUESTIONS TO ASK ABOUT A RIDER OR STAND-ALONE POLICY
81. How do I get the best deal on automotive insurance?
A: First things first: Figure out how much coverage you need. Auto insurance requirements vary by state, but most states require that you have liability insurance at the bare minimum. Liability coverage is expressed by three numbers, each representing thousands, and looks something like this: 100/300/50. The first number is the maximum that the insurance company will pay per person for bodily injury from an accident, the second number is the maximum amount that the insurance company will pay per accident for bodily injury, and the last number is the maximum amount covered for damage to someone else’s property.
Why are these coverage amounts important? Because if an accident is your fault and the costs exceed your coverage, the difference will come out of your own pocket.
An Example
Kate has liability insurance for her Toyota Camry. Her coverage is 50/100/50, the amount required in her state. She runs a red light and gets into an accident that causes $20,000 worth of damage to the other vehicle. She’s covered, because her liability insurance covers up to $50,000. But let’s say she injures three people in the other vehicle, and their medical bills add up to $150,000. Her insurance will cover $100,000, but she’s going to have to come up with the remaining $50,000.
Lesson: The bare minimum isn’t always the best option. You have to look at your financial situation. If you have assets to protect, you want to get enough liability coverage so you don’t have to tap into those if you’re in an accident. Otherwise, attorneys for the injured party can go after your assets to recoup the cost of their medical bills (or worse, pain and suffering) not covered by your insurance. If you don’t have a lot of assets, your state’s basic requirements may meet your needs.
The other main components of any auto insurance policy are collision and comprehensive insurance. Collision insurance pays for damage to your car itself—and if you have this coverage, your car is covered no matter who is at fault. Comprehensive coverage pays for theft, fire, and vandalism. If you don’t have comprehensive coverage and your car is stolen, you’ll foot the bill for a replacement. If you have a new car, you want both collision and comprehensive coverage. Generally, it’s not necessary for old models or those where the cost of paying for this insurance is more than one-tenth the value of the car.
Once you know what kind of coverage you want, start with the company that handles your home owner’s or renter’s insurance. You’ll likely get a discount of up to 15% for bundling the policies.
But don’t stop there. Hop on the Internet and do a little searching. Get quotes from four or five companies, using an online service such as Insure.com or InsWeb.com. Then, check the complaint history of those companies by visiting your state’s insurance department. Price is important, yes, but service is right up there with it. If you have a claim, you need to know that it will get processed, and quickly.
The rest, I’m afraid, is in your hands. Insurance companies take a range of factors into consideration when calculating your premiums, because they’re basically evaluating the risk involved in extending a policy to you. There are some risk factors you have no control over, such as the accident statistics in your area, but others are malleable. Your credit score, driving history, number of claims filed, and the type of car you drive all play a role. The higher your credit score, the lower your premium, so keep working on paying your bills—all of them, not just your insurance premium—on time (for more information, turn to Chapter 6). The fewer accidents you have and claims you file, the better, so small scratches are best handled on your own. And cars that cost a lot to repair or that are of a make or model that tends to be stolen often will cost you more. Your insurance company can give you more information on this.
I Also Need to Know…
Q: Can I ask for a discount?
A: Not all companies will offer discounts, but most do. Try your luck with these:
Q: Should I raise my deductible?
A: If you have collision or comprehensive coverage, raising your deductible is a great way to lower your premiums. Bumping your deductible up from $200 to $1,000 can save you more than 30%.
Q: Should I be buying more liability coverage than my insurance company offers as a standard option?
A: You’ve probably heard the expression “We live in a litigious society.” That’s why the answer to this question is a resounding yes, if you have significant assets—maybe a nice home, a large investment portfolio, and significant savings. The policy you want is called an umbrella liability policy, and it will provide liability for both your home and your car at once. The good news is that umbrella policies are cheap—only about $100 to $200 per million dollars of coverage.
Q: What is uninsured or underinsured motorist coverage?
A: Another component of some auto insurance policies. It will cover your expenses if you’re in an accident and the driver at fault either doesn’t have insurance or doesn’t have enough coverage, or if it was a hit-and-run. A few states require you to have this coverage, but it isn’t the norm. However, if you can afford it, you should probably include this feature in your policy. It’s estimated that about 25% of drivers are uninsured, and if they don’t have any assets—or they flee the scene—you may be stuck with the bill.
The price of this coverage varies by state, mainly depending on the percentage of drivers who are uninsured in that state.
Resources
Associations
National Association of Health Underwriters (NAHU)
www.nahu.org
703-276-0220
NAHU represents more than 20,000 licensed health insurance agents, brokers, consultants, and benefit professionals; on this site you can search for a NAHU member in your community, browse a glossary of terms, and access guides and a database with information on different types of health insurance.
National Association of Insurance Commissioners
www.naic.org
1-866-470-6242
Detailed insurance information for people in all stages of life who are considering buying insurance; includes guides, tips, and more.
Books
101 Health Insurance Tips, by Michelle Katz (2007)
Tips from health insurance expert Michelle Katz on how to find the best health-care plan for your bud get.
The Insurance Maze: How You Can Save Money on Insurance—and Still Get the Coverage You Need, by Kimberly Lankford (2006)
Insurance explained in simple terms; learn how to avoid insurance pitfalls and make the most of your insurance policy.
Questions and Answers on Life Insurance: The Life Insurance Tool-book, by Anthony Steuer (2007)
Answers to life insurance questions covering topics such as how to differentiate between policies, evaluating policies and companies, hiring an agent, and monitoring your policy.
Government Organizations
Internal Revenue Service
www.irs.gov
1-800-829-1040
Detailed information on HASs and other tax-favored health plans.
Insure Kids Now
www.insurekidsnow.gov
1-877-543-7669
A national campaign to provide uninsured children (from birth to age 18) with free or low-cost health insurance; through Insure Kids Now, you can be put in direct contact with your state’s children’s health insurance program and get answers to FAQs about insurance for minors.
U.S. Department of the Treasury
www.ustreas.gov
For HSA questions involving individuals, call the IRS toll-free assistance line at 1-800-829-1040; for HSA questions involving businesses, call 1-800-829-4933.
Information about HSAs; includes a fact sheet, answers to FAQs, information on IRA-to-HSA transfers and the full contribution rule, and current news.
U.S. Department of Labor, Employee Benefits Security Administration
www.dol.gov/ebsa/
1-866-444-3272
Information on various types of insurance, fact sheets, answers to FAQs, and current benefit news.
Web sites
AARP
www.aarp.org
1-888-687-2277
Information, resources, and research on insurance for long-term care.
Consumer Federation of America
www.consumerfed.org
202-387-6121
Information on variable universal life insurance.
eHealthInsurance.com
www.ehealthinsurance.com
1-800-977-8860
Get quotes on individual, family, and small-business health insurance plans; compare plans; and apply for coverage online.
Edmunds.com
www.edmunds.com
Compare auto insurance rates; read auto insurance articles, insurance forums, and answers to auto insurance questions.
Insurance.com
www.insurance.com
1-866-533-0227
Research insurance products, get comparison rates from top car insurance companies and tips on when to buy insurance, learn how to save money when buying insurance, read insurance news, get insurance quotes, find answers to FAQs, and use a life-insurance calculator.
Insure.com
www.insure.com
1-800-556-9393
Consumer insurance information, insurance articles, answers to FAQs, an insurance glossary, and interactive tools; obtain insurance quotes and purchase insurance from the company of your choice.
Insurance Information Institute
www.iii.org
212-346-5500
Use a glossary of insurance terms, search for an insurance company in your state, read information on insurance and financial planning priorities at different life stages, and read answers to FAQs about insurance.
Kiplinger
www.kiplinger.com/money/insurancecenter/
Insurance information, interactive tools, advice on how to save money by lowering insurance costs, quizzes, videos, and a directory of state insurance regulators.
Moody’s
www.moodys.com
Check the financial ratings of any home insurance company.
National Patient Advocate Foundation
www.npaf.org202-347-8009
A national nonprofit organization that provides patients with a voice in health care through regulatory and legislative reform; read recent news, learn about research, and use tools to help you become an advocate for quality health care.
Patient Advocate Foundation
www.patientadvocate.org
1-800-532-5274
A national nonprofit foundation that acts as a mediator for patients, helping them obtain financial stability when dealing with a life-threatening or debilitating disease; find disease-specific information and support, information on insurance, and recent news.
Standard & Poor’s
www.standardandpoors.com
Check the financial ratings of any home insurance company.