Insurance

Basics of Insurance: Why we Need Insurance?

April 18, 2012
By
Basics of Insurance: Why we Need Insurance?

This post is inspired by a reddit discussion. The topic was on insurance, the basics of it. Do we give proper value to insurance in our life or we just go on routinely on insurance? When you earn a bonus at work, do you consider increasing the insurance amount to have more coverage. When you get a raise do you consider increasing your premium and cutting on the out-of-pocket expenses? What is insurance and why we need it, is rarely discussed on personal finance websites and blogs. Those who want to just know how much insurance they should have maybe disheartened, as this post is to guide decide that on your own. We will not talk about how much insurance you should have, we can’t do that as everybody is different and what works for me may not work for you. We would rather talk about and set a general guideline that can help us determine our insurance need on a high level. This post does no way suggest your specific insurance coverage amount. Let’s start with ‘what is insurance’. What is insurance Insurance is all about playing defense, where as an investment is an offense. You protect yourself and your

Read more »


{ 19 Comments }

What is Obama Care and How Does it Affect Us?

April 2, 2012
By
What is Obama Care and How Does it Affect Us?

President Barrack Obama is perhaps immortalized forever in American history with the passage of Obama Care or “Patient Protection and Affordable Care Act (PPACA)”, much like Bush Jr. , who is now famous for his legendary (perhaps insane) tax cut. What is Obama Care? I was recently wondering about it. Scanning through a lot of online material and videos later I somehow cracked Obama care. I am trying to bring my knowledge and judgement about this healthcare reform bill. I hop my ignorance and biased approach (if any) would be pointed out by informed readers. being born in a country where 98% of population are not insured for health, it’s difficult to fathom a state rule which dictates that every citizen should be covered under health insurance. What is the rationale behind this dictum? Let’s examine. We now pay over $7,000 a year for our insurance coverage (with $3,800 out of pocket maximum), even after employer subsidy towards the premium. This is too much money for most, to pay on yearly basis. Why then health insurance should be made mandatory? The answer lies below. Recently our close friend had a baby boy who unfortunately had to be placed in NICU for more than

Read more »


{ 47 Comments }

Top Tips for Cheap Home Insurance

December 27, 2011
By

More and more people across the country are facing rising living costs and lower salaries or freezes on pay increases. In this economic climate it makes sense to do everything you can to cut your monthly bills, including your house insurance premium. Put these tips into practice to get the very best house insurance quote from a company such as Castle Cover. Tip 1: Always Compare Quotes All too often people are content to stay with their insurance provider year on year. Renewal time is often when your provider will try to sneak in a rise in your premiums. When the time comes to renew your house insurance policy make sure you see if you could get a better deal elsewhere. Be careful to make sure that you are getting the level of protection you need when you compare quotes – sometime a cheaper premium is due to less cover. Tip 2: Consider a Higher Deductible or More Exemptions Your house insurance policy will likely have a certain amount of money that you must pay out of pocket before your insurance policy kicks in – this is known as a deductible. Generally, the higher your deductible, the lower your premium. Accepting a higher deductible can save you money on your

Read more »


{ 2 Comments }

What To Do When You Don’t Have Health Insurance

July 25, 2011
By

In winter I was in hospital to see my friend’s new born. There, I witnessed a heated dispute between a patient and the hospital authorities over hospital charges. There was no way that patient could have afford $5000 for a day at the hospital because she didn’t have sufficient insurance. I am a salaried employee and only get concerned about my co-pay and deductibles, I had not much idea about health care cost prior to that incident. In US,  50 million people live without insurance. The main reason behind this is inability to pay the insurance premium. Also, for young adults, a relative confidence on good health makes spending on health insurance premium a second choice to spending on other things. More than 50% of all bankruptcy cases in US are due to non-payment of medical bills, and most of them are people without health insurance or limited insurance coverage. There is help you can seek when you are in need for health care while you are not insured, this is based on information available in public domain. Alternatives for some one without health insurance Medicaid – Run by the state govt, available for low-income families and requires a stringent

Read more »


{ 17 Comments }

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”