Inside the Insurance Industry's Secret

Database About You

Rich Smith
Jan 3rd 2015 6:00AM

J.R. Bale/AlamyQ.

Are you paying more for your homeowners and car insurance than you

should?
A. Yes.
Q. Do you know why?
A. Probably not -- in fact, we haven't a clue.
And that's just the problem. We haven't a CLUE.
Most Americans Are CLUE-less
This would appear to be the upshot of a new report out of InsuranceQuotes.com, a
subsidiary of personal finance website Bankrate.com (RATE).
Says InsuranceQuotes.com (we'll call them "IQ" for short), the insurance industry has a
"'Secret' Report That Affects What You Pay for Insurance." It's called the "CLUE" report,
which stands for "Comprehensive Loss Underwriting Exchange," and essentially, it's a
database keeping track of every insurance move you make. When you call your insurer
to report damage to your home or auto, that goes into the CLUE database. What's more,
even when you simply call your insurance agent to ask about whether a certain incident
is covered by your insurance -- that goes in there, too.

And that's the real revelation today. Most consumers probably assume that insurance
companies have some sort of system to track their insurance claims. After all, it's
common knowledge that insurers often raise your rates after you make a claim.
But that's about all we do know about CLUE.
CLUE Me In
According to IQ, a whopping 82 percent of Americans surveyed have never even heard
of the CLUE database (at least not by that name). Only about 7 percent of insurance
customers say they are at least "somewhat familiar" with the concept of the CLUE
report. These people may be aware of the bare outlines of the system -- for example,
that CLUE tracks loss dates, claims for losses and monies paid out for insurance claims
for up to seven years.
And yet, only 1 percent of us say we're "very familiar" with how the database works. The
vast majority of Americans have no clue at all, for example, that the database:

Records denied claims as well as claims paid out -- so that your insurance rate
may be raised after you've made a claim, even if you got no money out of it.

Includes not only claims made by you, the customer, but also claims made on the
same property by its previous owners. Thus, you can be penalized for insurance claims
made by the person from whom you bought a car or house.

If you simply ring up your insurance agent to discuss a claim you might want to
make -- but ultimately decide not to make -- that discussion can also go into your CLUE
report, and be used by an insurer to raise your rate.
Yes, you read that right: Insurers can hike your insurance premiums just for asking
them if an accident might or might not be covered.
It's Time to Get a CLUE
So, now that you're aware of what a CLUE is, what can you do to make sure your CLUE
report doesn't get used against you?
Sad to say, there's probably no getting around the fact that once you admit you've
suffered some damage and make a claim, an insurance company can decide you're a
riskier client than you were before making a claim, and raise your rate. But regarding
the "unfairness" of insurance companies hiking your rate simply for asking a question
about coverage, IQ senior insurance analyst Laura Adams has a few words of advice.

The fewer clues you give the insurers to

the fact that you may be about to make a
claim, the better for your bank account.
First and foremost, unless you plan to make a claim -- and a claim for a dollar amount
significantly higher than your insurance deductible -- it's best to keep mum. If you
absolutely must contact your insurer, though, to find out whether it's worthwhile to

make a claim, IQ notes that "talking to an insurance company about specific damage to
your auto or home can result in a notation in your CLUE report, which could result in
higher rates."
The key words here are "specific damage." As in, when calling your insurer, try not to
mention specific items or damage. Warns Adams: "If you begin to discuss details of an
actual loss, such as a broken water pipe or a roof leak that has occurred, an insurance
company may record that information and it may appear on your CLUE report."
Instead, "when speaking with an insurance company or an agent ... be clear [that you
are] only making an inquiry. If you need to ask about what potential issues may or may
not be covered under your home insurance policy, say so" at the very start, and make it
clear that you are not making a claim for, or even asking about, a specific incident that
has already happened.
The fewer clues you give the insurers to the fact that you may be about to make a claim,
the better for your bank account.
You can order free copies of your CLUE personal property (i.e., home) report or CLUE
auto report -- or both -- from Lexis-Nexis.
Motley Fool contributor Rich Smith recently made the dumb mistake of asking if a
frozen water pipe would be covered by his insurance -- and fears he may pay a price
for this slip-up. (So much for the theory that "there's no such thing as a stupid
question.") Neither he nor The Motley Fool have any financial interest in any of the
stocks mentioned above. Is your portfolio ready for the new year? Check out our free
report on one great stock to buy for 2015 and beyond .

Inside the Insurance Market's Secret Data source About You

Are you paying much more for your residents and vehicle insurance coverage
than you should?

A. Yes.

Q. Do you understand why?

A. Most likely not-- actually, we have not a clue.

And that's simply the trouble. We have not a CLUE.

The majority of Americans Are CLUE-less

This would appear to be the result of a brand-new record from

InsuranceQuotes.com, a subsidiary of individual finance website Bankrate.com
(PRICE).

States InsuranceQuotes.com (we'll call them "Intelligence Quotient" for brief),

the insurance coverage fitness industry has a "'Secret' Report That Impacts Just
what You Spend for Insurance policy." It's called the "CLUE" report, which
represents "Comprehensive Loss Financing Exchange," and also essentially, it's a
database monitoring every insurance action you make. When you call your
insurer to state harm to your home or auto, that goes into the CLUE database.
What's more, even when you simply call your insurance agent to ask about
whether a certain incident is covered by your insurance-- that goes in there, too.

Which's the real revelation today. The majority of customers possibly assume
that insurance companies have some sort of system to track their insurance
cases. Nevertheless, it's common knowledge that insurers often raise your rates
after you make a claim.

But that's about all we do find out about IDEA.

CLUE Me In

Baseding on IQ, a whopping 82 percent of Americans surveyed have actually

never even listened to of the CLUE database (at the very least not by that name).

Only regarding 7 percent of insurance policy clients say they go to least "rather
acquainted" with the principle of the IDEA record. These people could be aware
of the bare outlines of the system-- for instance, that CLUE tracks loss dates,
claims for losses and also monies paid out for insurance claims for up to seven
years.

And yet, only 1 percent people say we're "very familiar" with how the database
works. The vast majority of Americans have no clue at all, for example, that the
database:

Records denied claims as well as claims paid out-- so that your insurance
policy rate may be raised after you've made a claim, even if you got no
money from it.
Includes not only declares made by you, the consumer, however also
claims made on the same building by its previous owners. Thus, you can
be penalized for insurance policy cases made by the person from which
you purchased an automobile or house.
If you merely phone your insurance broker to review a say you could wish
to make-- however ultimately determine not to make-- that discussion can
also enter into your CLUE record, as well as be used by an insurance
company to raise your rate.

Yes, you review that right: Insurance providers can trek your insurance policy
costs just for asking them if a mishap might or could not be covered.

It's Time of getting a CLUE

So, since you know exactly what a HINT is, just what can you do to make sure
your HINT record doesn't get utilized versus you?

Sad to say, there's possibly no getting around that once you confess you have
actually experienced some damage and also make a say, an insurance policy
firm could decide you're a riskier customer than you were before making a say,
as well as elevate your price. However regarding the "unfairness" of insurance
coverage firms hiking your rate just for asking a question regarding protection,
IQ senior insurance coverage analyst Laura Adams has a couple of words of
advice.
The fewer clues you offer the insurance providers to the fact that you could be
about to make a claim, the much better for your financial account.
First and foremost, unless you intend to make a say-- and a case for a buck
amount considerably above your insurance coverage deductible-- it's ideal to

keep mum. If you definitely should call your insurer, though, to learn whether it's
worthwhile to make a say, INTELLIGENCE keeps in mind that "speaking with an
insurance coverage firm concerning particular harm to your car or house can
result in a symbols in your CLUE record, which could cause greater rates.".

The key words right here are "certain harm." As in, when calling your insurance
company, attempt not to mention certain products or harm. Warns Adams: "If
you begin to review details of an actual loss, such as a damaged plumbing or a
roof leak that has taken place, an insurance coverage firm could film that info
and it might show up on your IDEA record.".

As an alternative, "when speaking with an insurance coverage business or a

broker ... be clear [that you are] only making an inquiry. If you need to inquire
about just what possible issues could or may not be covered under your house
insurance policy, say so" at the actual beginning, and also make it clear that you
are not making a claim for, and even inquiring about, a certain event that has
actually already occurred.

The fewer ideas you provide the insurers to that you might be about to make a
claim, the better for your savings account.

You can buy complimentary duplicates of your HINT private property (i.e.,
residence) record or CLUE vehicle report-- or both-- from Lexis-Nexis.

Motley Fool factor Rich Smith recently made the dumb error of asking if a frozen
water pipe would be covered by his insurance policy-- as well as fears he might
pay a price for this blunder. (A lot for the theory that "there's no such point as a
stupid concern.") Neither he neither The Motley Fool have any type of financial
interest in any one of the stocks stated above. Is your portfolio prepared for the
brand-new year? Visit our cost-free record on one fantastic stock to buy for 2015
as well as beyond.

Why You Should Give Your Insurance

Policies a Checkup

U.S. News
Apr 10th 2015 6:00AM

ShutterstockBy

Geoff Williams

The insurance industry often urges customers to check their policies every once in a
while to make sure everything is up to date. While that sounds like self-serving advice -because you know any conversation with your insurance agent will end with a pitch to
buy more insurance -- it's actually a good idea.
As Bill Swymer, an adjunct finance professor at Bentley University in Waltham,
Massachusetts, observes: "The No. 1 reason people need to be reviewing all insurance
policies is because circumstances change, and you do not want to be left underinsured
or paying for insurance you no longer need."
If you bought life insurance when you were married or after your first child was born,
and you're now on baby No. 4, you're probably long overdue for an upgrade. Or maybe
after you bought a new car, your insurance policy covered you for every possible
circumstance. If you're now driving a clunker that isn't worth the gas you're putting in
the tank, you are probably vastly overpaying for your coverage. Some other things you
might realize in a review.
You Might Catch Mistakes
You probably have a lot of insurance policies -- health insurance, life insurance, auto
insurance, homeowners insurance. There may be an error or two or three in one or
more of those policies. For instance, Aflac, which provides supplemental health
insurance, found in its annual employee benefits study, which surveyed 5,209 employed
adults and 1,856 benefits decision-makers at companies, that 42 percent of workers
waste up to $750 each year on insurance benefit mistakes.

You Might Find Better Rates

Ken Davidson, co-founder of Dallas-based Eagle Independent Insurance, points out that
you may lower your premium if you regularly compare insurance quotes. "Insurance
premiums can frequently change for several reasons," he says, citing homeowners
insurance as a type you'd want to look at fairly often. The crime rate, for example, could
go up or down, changing your rates. You may have purchased your homeowners
insurance policy after recent storms inflated rates, and perhaps yours haven't come
down but competitors' rates have.
"So only by comparing different policies at every renewal period -- or even more
frequently -- can consumers ensure they're getting the best deal at that time," Davidson
says.
You Might Find More Assets That Need Coverage
Your life doesn't just change. What you cover does. Leigh Needelman, CEO of Florida
Assurers, an insurance agency in Miami Beach, Florida, recalls a client whose diamond
ring was stolen in a home burglary. Fortunately, it was insured, and the client was sent a
$6,000 check. So the client went to the jeweler to replace the diamond ring. But she
wasn't able to replace the diamond ring -- or if she did, she had to kick in a lot of her
own money. "When the jeweler was given the check to replace the diamond ring, he
advised [her] that the ring had appreciated to $18,000," Needelman says.
Even if you aren't concerned about insuring your engagement ring -- maybe you're
single or need a microscope to see the diamond and figure it isn't worth the trouble -- if
you've been around a while, you have probably collected some stuff over the years, and
perhaps a lot of it is expensive. For instance, maybe you locked in your home insurance
rates when your new home was filled with secondhand furniture. If all of that has been
replaced with sofas and a dining room table purchased from an actual furniture store,
and that 20-inch TV was swapped for a 60-inch set, it may be time to discuss these
upgrades with yourhomeowners insurance agent.
Sure, you'll likely see your rates go up, which is painful, but if a disaster occurs, you'll
actually be covered for what you own. According to Liberty Mutual New Beginnings
Report, which surveyed 1,936 American adults, fewer than one in five Americans adjust
their insurance policy after making a major purchase. Only 18 percent have formal
documentation of their belongings, meaning, apparently, that everyone else just makes
an estimated guess and stores all the information in their heads. One-third of
Americans don't know the value of their household possessions, and almost 10 percent
are unaware that they should check to make sure they have enough coverage to protect
their belongings from theft or damage, the study found.
You Might Decide It's Time to Bundle
If you have four different policies with four different carriers, you might want to bundle
a few. That is, have your homeowners and car insurance with one company, for
example. You can often get discounts of at least 10 percent when you start bundling,
says David Spencer, a senior vice president at ACE Private Risk Services, which offers
insurance for high-net-worth individuals and businesses.
You Might Get Some Discounts

Yes, your insurance agent may talk you into buying more insurance, but at the same
time, you may learn that you're due for some discounts. "Homeowners can earn credits
on premiums by installing safety devices like burglar alarms, water leak detection
systems, battery backups for sump pumps and automatic standby generators. When
combined, these credits can reduce homeowners' premiums by 30 percent or more,"
Spencer says.
Think about that. If you bought a security system months ago, or years ago, and you
didn't tell your homeowners insurance agent, you have probably been overpaying on
your homeowners insurance for some time.

Why You Must Offer Your Insurance coverage a Checkup

The insurance coverage market usually advises clients to check their plans every
once in a while to make sure everything is up to date. While that seems like selfseeking insight-- because you know any sort of discussion with your insurance
policy representative will end with a pitch to get even more insurance policy-- it's
really a smart idea.

As Expense Swymer, an adjunct financing professor at Bentley College in

Waltham, Massachusetts, notes: "The No. 1 factor people should be examining all
insurance policies is considering that conditions change, as well as you do not
wish to be left underinsured or spending for insurance policy you not demand.".

If you got life insurance when you were married or after your initial child was
born, as well as you're now on child No. 4, you're probably long overdue for an
upgrade. Or maybe after you got a new car, your insurance coverage covered
you for every feasible condition. If you're now driving a clunker that isn't really
worth the gas you're placing in the storage tank, you are probably greatly
overpaying for your protection. Other points you could realize in a review.

You Might Apprehend Blunders.

You probably have a great deal of insurance plan-- medical insurance, life
insurance, car insurance policy, home owners insurance policy. There may be a
mistake or 2 or three in several of those policies. For instance, Aflac, which gives
supplemental health plan, located in its yearly employee benefits study, which
surveyed 5,209 used adults and also 1,856 advantages decision-makers at
companies, that 42 percent of employees throw away up to $750 annually on
insurance policy perk errors.

You Might Discover Better Rates.

Ken Davidson, co-founder of Dallas-based Eagle Independent Insurance policy,

points out that you could decrease your premium if you consistently contrast
insurance coverage quotes. "Insurance policy costs could often alter for
numerous factors," he states, citing house owners insurance as a type you 'd
intend to take a look at rather commonly. The crime rate, for example, might
increase or down, transforming your rates. You could have acquired your
homeowners insurance policy after current tornados blew up prices, as well as
possibly yours haven't come down but rivals' rates have.

"So just by contrasting different plans at every revival duration-- and even much
more frequently-- could customers guarantee they're getting the very best
bargain during that time," Davidson says.

You Might Locate More Properties That Required Insurance coverage.

Your life doesn't simply alter. Exactly what you cover does. Leigh Needelman,
Chief Executive Officer of Florida Assurers, an insurance coverage firm in Miami
Coastline, Florida, remembers a client whose diamond ring was swiped in a home
theft. The good news is, it was guaranteed, and the client was sent a $6,000
check. So the customer visited the jeweler to replace the ruby ring. However she
wasn't able to change the diamond ring-- or if she did, she needed to begin a
great deal of her own money. "When the jeweler was given the find out to change
the ruby ring, he advised [her] that the ring had cherished to $18,000,"
Needelman says.

Even if you typically aren't worried about insuring your engagement ring-- maybe
you're solitary or need a microscopic lense to see the ruby as well as number it
isn't worth the trouble-- if you have actually been around a while, you have
possibly gathered some things over the years, and also perhaps a great deal of it
is expensive. As an example, possibly you locked in your home insurance policy
prices when your brand-new residence was fulled of secondhand furniture. If all
that has actually been replaced with sofas and a restaurant table purchased from
an actual furniture store, which 20-inch TV was swapped for a 60-inch set, it may
be time to talk about these upgrades with yourhomeowners insurance policy
agent.

Certain, you'll likely see your rates rise, which hurts, however if a catastrophe
occurs, you'll really be covered for exactly what you possess. Baseding on Liberty
Mutual New Beginnings Record, which checked 1,936 American grownups, less
than one in five Americans readjust their insurance coverage after making a
significant purchase. Simply 18 percent have formal paperwork of their
possessions, definition, evidently, that every person else simply makes an
estimated assumption and suppliers all the information in their heads. One-third
of Americans don't know the value of their family ownerships, as well as almost
10 percent are uninformed that they should check to make sure they have
sufficient insurance coverage to secure their items from burglary or damages,
the research found.

You Might Decide It's Time to Bundle.

If you have 4 different plans with 4 different carriers, you could intend to bundle
a few. That is, have your homeowners and also automobile insurance policy with
one company, for example. You can frequently obtain discounts of a minimum of
10 percent when you start bundling, says David Spencer, a senior vice president
at ACE Exclusive Danger Services, which offers insurance coverage for high-networth individuals and companies.

You Might Get Some Price cuts.

Yes, your insurance representative might talk you right into buying more
insurance coverage, however at the same time, you may find out that you
schedule for some discount rates. "Home owners can make credit ratings on
costs by setting up security tools like alarm system, water leakage detection
hvac systems, electric battery data backups for sump pumps and automated

standby generators. When incorporated, these credit ratings could lower home
owners' premiums by 30 percent or more," Spencer claims.

Think about that. If you got a security hvac system months earlier, or years
earlier, as well as you didn't inform your homeowners insurance coverage
representative, you have actually probably been paying too much on your house
owners insurance policy for time.

Advantages of Whole Life Insurance

By: Jaceson Maughan

The advantages of whole life insurance are varied. When it comes to choosing between term life
insurance and whole life insurance, it's important to understand which policy is right for you.
Life Insurance Premiums
Whole life insurance requires the policy holder to pay a fixed premium, while term life insurance
premiums will generally increase every time you renew the policy. While the initial life insurance
premium for a whole life policy may be higher, it will remain constant and will eventually be lower than
what you would pay after renewing a term life policy several times. Also, term life premiums can vary
depending on your age, health and other factors. Whole life premiums will remain fixed, regardless of
how you age and what your overall health is like.
Cash Value
Because of the way a whole life policy is structured, it has a cash value. If you choose to end the
policy, you get the value in cash. These usable cash reserves are one of the most important and
versatile advantages of whole life insurance.

Tax Benefits
Contributions to a whole life insurance policy are tax-deferred, which means you do not have to pay
any taxes on the value of the whole life insurance policy. Term life policies do not have such an
advantage.
Length of Coverage
A whole life insurance policy will cover you for your entire life, unlike term life insurance policies. With
term, you purchase coverage for a set number of years, and the premiums increase whenever you
renew. Whole life insurance policies never need to be renewed.
Death Benefits
Whole life insurance guarantees that upon your death, cash values and benefits will be paid out. If
you outlive a term life policy, you receive no money back. You will also earn dividends from a whole
life insurance policy, and most people either cash out the dividends or put the amount back into the
policy to increase its value.

Advantages of Whole Life Insurance

The advantages of entire life insurance are varied. When it comes to picking
between term life insurance as well as entire life insurance, it is very important
to comprehend which policy is right for you.
Life Insurance Premiums
Entire life insurance needs the plan owner to pay a set premium, while term life
insurance costs will typically enhance whenever you revive the plan. While the
initial life insurance premium for a whole life plan could be greater, it will
certainly continue to be consistent and will become lower than what you would
certainly pay after reviving a term life plan several times. Also, term life costs
could differ depending upon your age, wellness and other elements. Entire life
premiums will certainly stay fixed, no matter exactly how you age and also
exactly what your overall health is like.
Cash Worth
Due to the way an entire life plan is structured, it has a money worth. If you opt
to finish the plan, you acquire the worth in money. These usable cash reserves
are just one of the most crucial and also functional benefits of entire life
insurance.
Tax Benefits
Contributions to an entire life insurance plan are tax-deferred, meanings that you
do not have to pay any tax returns on the value of the entire life insurance plan.
Term life plans do not have such an advantage.
Size of Insurance coverage

A whole life insurance plan will cover you for your whole life, unlike term life
insurance plans. With term, you buy protection for an established variety of
years, as well as the costs increase whenever you restore. Whole life insurance
policies never ever have to be revived.
Survivor benefit
Entire life insurance guarantees that after your fatality, cash values and also
advantages will certainly be paid out. If you outlive a term life plan, you receive
no cash back. You will certainly additionally gain dividends from a whole life
insurance plan, as well as lots of people either squander the dividends or put the
amount back into the policy to raise its value.

Is Travel Insurance Worth It?

by Amy Farley May 5, 2014

Peter Arkle

Advertisement

Recommended by

Istravelinsuranceworththecost,andwhatkindof
coveragedoIneed?
Question submitted by Michael Gartenlaub, Long Island, N.Y.
Trip Doctors Answer

If you are at all concerned about out-of-country medical expenses,

especially the cost of an emergency evacuation, the answer is a resounding
Yes!
I know many experienced travelers who still think such insurance is for
worrywarts. But consider this: an evacuation after a heart attack in the
Caribbean might cost $20,000, while getting home in an air ambulance
from a more remote part of the world can run upwards of $100,000. The
ability to get outta Dodge can save a life, and avoid the potential for huge
debt, says Pasadena, Californiabased travel health specialist Brian Terry,
MD. (Tip: buy the policy as soon as possible after your first trip payment to
be sure preexisting health conditions are covered.)

Travel insurance is also essential if you have invested more money in your
trip than youre willing to lose, according to Ed Perkins
at smartertravel.com. Depending on the policy, you can be reimbursed if
you cancel your trip or come home early because a family member or
traveling companion becomes ill, the U.S. State Department deems a
country unsafe, or you find yourself unexpectedly laid off. You can even
sign up for a cancel for any reason policy, although such provisions are
costly.
Three basic types of protection are offered. If you use a major credit card,
youre likely already covered for baggage loss, rental car damage, and
accidental death or dismemberment. (The Platinum Card from T+L parent
company American Express also covers medical evacuations under certain
conditions.) Annual travel policies can cover emergency medical treatment
important if your regular coverage or Medigap policy doesnt cover you
outside the U.S. or your home stateand/or medical evacuation for a full
year, handy if youre a frequent traveler or have a second home. Package
policies are purchased for each trip and can cover medical services,
evacuation, trip interruption or cancellation, and financial default by your
trip provider.
Annual Programs

MedjetAssist and Air Ambulance Card are among the companies with
membership-based medical evacuation services. Othersincluding Travel
Guard, Travelex Insurance Services, and HTH Worldwidesell annual
medical policies.
Package Policies

Many tour operators and travel companies offer insurance; if you buy
through them, be sure youre getting a policy that comes from a reputable
company such as Travel Guard or Travelex. Better yet, compare and choose
your own policy via online sources such
as quotewright.com, insuremytrip.com, and squaremouth.com.

By the Numbers

29%: The proportion of travelers since summer 2010 who had travel
insurance when impacted by natural disasters or world events*
*U.S. Travel Insurance Association Survey, February 2012.
Have a travel conundrum? The trip doctor is in. Send questions
totripdoctor@aexp.com, and reach Amy on Twitter @afarles.

Is Traveling Insurance coverage Well worth It?

Is travel insurance worth the price, and just what type of protection do I require?
Concern sent by Michael Gartenlaub, Long Island, N.Y.
Trip Doctor's Response
If you are at all concerned about out-of-country medical expenditures,
specifically the price of an emergency evacuation, the answer is an
unquestionable "Yes!".
I understand several seasoned travelers who still believe such insurance policy is
for worrywarts. Yet consider this: an evacuation after a heart attack in the
Caribbean might set you back $20,000, while getting home in an air rescue from
a farther part of the globe could run upwards of $100,000. "The capability to 'get
outta Dodge' can conserve a life, as well as avoid the possibility for huge debt,"
claims Pasadena, California-- based travel health and wellness specialist Brian
Terry, MD. (Pointer: buy the plan when possible after your initial journey payment
to make sure preexisting wellness conditions are covered.).
Travel insurance coverage is also important if you have spent even more money
in your trip than you're willing to lose, according to Ed Perkins at
smartertravel.com. Depending on the policy, you can be compensated if you
cancel your travel or get back early since a member of the family or traveling
companion comes to be ill, the U.S. State Department deems a country
dangerous, or you find yourself suddenly laid off. You could even enroll in a
"cancel for any sort of factor" policy, although such stipulations are pricey.
Three basic sorts of security are offered. If you make use of a significant charge
card, you're likely already paid for baggage loss, rental auto damage, as well as
unexpected fatality or dismemberment. (The Platinum Card from T+L father and

mother firm American Express additionally covers medical evacuations under

certain problems.) Annual travel plans can cover unexpected emergency medical
therapy-- vital if your regular coverage or Medigap plan does not cover you
outside the united state or your house state-- and/or medical evacuation for a full
year, convenient if you're a regular tourist or have a second house. Package
plans are purchased for each and every trip as well as can cover medical
services, evacuation, trip disruption or cancellation, as well as economic default
by your trip supplier.
Yearly Programs.
MedjetAssist and Air Rescue Card are amongst the firms with membership-based
medical evacuation services. Others-- consisting of Travel Guard, Travelex
Insurance Services, and also HTH Worldwide-- offer annual clinical policies.
Plan Policies.
Numerous trip drivers as well as traveling business offer insurance policy; if you
purchase via them, be sure you're getting a plan that comes from a reputable
business such as Traveling Guard or Travelex. Even better, contrast and choose
your own policy via on-line resources such as quotewright.com,
insuremytrip.com, as well as squaremouth.com.
By the Numbers.
29 %: The proportion of travelers because summertime 2010 that had travel
insurance when impacted by organic catastrophes or world events *.
* U.S. Travel Insurance Organization Survey, February 2012.
Have a travel dilemma? The trip dentist is in. Send questions
totripdoctor@aexp.com, and get to Amy on Twitter @afarles.

Should You Buy Travel Insurance?

By SETH KUGEL

JANUARY 29, 2013 4:47 PMJanuary 29, 2013 4:47 pm

Photo

CreditScott Menchin

Would you like to add travel insurance to your purchase?

That little pest of a question pops up every time I book a flight, confirm a hotel room
or reserve a rental car. Its become the Do you want fries with that? of online travel
booking. The difference: sometimes I buy the fries.
I have never bought travel insurance in my life because instinct has always told me
that its a bad deal. I rarely pay for hotel rooms, tours or rental cars in advance. I
dont pack designer clothing in my checked luggage. Im generally healthy, and I have
medical insurance that covers me abroad. (It claims to, at least.)
But instinct is a poor way to make decisions about insurance. So with a three-week
trip to Asia approaching, I finally decided to figure out whether I should be traveling
with insurance, and, in general, when it is smart to have it and when is it
unnecessary.
Travelers tend to buy insurance if they are more at risk or more likely than the
average policyholder to make a claim. In economics thats called adverse selection
but its adverse only for the insurance companies. For consumers, its just smart.
Imagine two people looking at a $100 insurance policy for a two-week trip: one is a
65-year-old heading to India, where he plans to rent a scooter, eat street food and
sleep in already-reserved five-star hotels every night. The other is a 30-year-old
going to London, planning to crash at a friends apartment and buy discount theater
tickets every night. Its pretty clear who should buy insurance.
For my own coverage, I looked at packages offered by World Nomads, a popular and
well-regarded company that provides travel insurance plans online. (If you are
buying insurance, try them or examine the options at insuremytrip.com, a travel
insurance search site.)

Generally, travel insurance is sold in packages, combining various categories of

coverage. Go through them all, determining what you need and what you dont,
either because youre not at risk or youre already covered. If a package doesnt seem
worth it, more customized policies (which you can find through insuremytrip.com,
among other sites) offer certain la carte options. But you may not end up saving
that much.
Coverage for my Asia trip through World Nomads would cost me $85 for its standard
plan, and $116.40 for slightly more elaborate explorer coverage. I looked at each
element of their plans which are similar to most other packages out there to
calculate whether, overall, they might be worth it to me (and to you). Here is a
breakdown.
Medical
If your regular health insurance doesnt cover you while abroad, you need some when
you travel. Medicare participants and citizens of countries covered by national health
services generally fall into this category. Others should check on the specifics of their
policies. I have coverage through the Freelancers Insurance Company, which uses the
Blue Cross Blue Shield program; my policy states that Im assured of receiving care
from licensed health care professionals no matter where I am through the Blue Card
Worldwide network.
I went to the Blue Card Worldwide Web site and was relieved to find many affiliated
hospitals listed in the Asian cities I was planning to visit.
But I was still suspicious. I offered a hypothetical to the customer service phone line:
what if, in an emergency, I ended up at an out-of-network hospital because I couldnt
communicate with paramedics or there was no affiliated hospital nearby?
The representative was stumped, put me on hold, and came back. I checked with a
supervisor, she said. The claim would come through, we would deny it, then you
would have to appeal it, she said. Appeals, she added, were made on a case by case
basis.
In other words: good luck. On the other hand, many travel insurance policies will
reimburse medical expenses no matter what hospital you end up at.
Since I wouldnt be engaging in any high-risk activities and I had a fighting chance of
being covered should the very unlikely worst-case scenario occur, I decided the
medical coverage added minimal benefit. I did, though, arm myself with a printout of
all the affiliated facilities in the areas I was visiting.
Emergency Evacuation

This one is simple: without coverage, if I have to be medically evacuated home from a
distant land, Im out something like $30,000. So it comes down to how likely the
scenario is. Headed to a particularly isolated region? Climbing mountains or fording
rivers? Then having evacuation coverage as part of a package or separately (the
cheapest I found for my trip on insuremytrip.com was $40) is a good idea.
Travel Protection
This kind of insurance offers reimbursement (sometimes partial) for prepaid
reservations if your trip is canceled, interrupted or delayed. I rarely spend much on a
trip before I leave beyond the plane ticket (always coach) and maybe the first night in
a hotel (always cheap). But for others, with expensive seats and long prepaid
reservations, it might make sense.
Also worth noting: some credit cards will provide similar coverage. My United
Mileage Plus Explorer card from Chase does. And although it is probably harder to
get a claim processed with Chase than with World Nomads, I didnt see much
justification for duplicate coverage.
Baggage Protection
World Nomads will reimburse you for items lost or damaged in transit, and cover
expenses incurred because luggage is delayed. For me, this was triplicate coverage:
my credit card covers this, and airlines are legally required to reimburse you as well,
with limitations.
But the Nomads policy also covers damages and loss beyond your flight. I carry
around about $3,000 of electronic equipment everywhere I go, and World Nomads
would cover up to $500 per item (after depreciation). Its worth it to determine the
value of whats inside your baggage and do the math.
Of course, whether you get reimbursed is partly up to you. A World Nomads
customer service representative gave this example: if you leave your cellphone in
your bathing suit and go into the water, its not covered. Thats not only the kind of
thing I do, its exactly what I did on a New Years Eve a few years ago in Rio de
Janeiro.
Accidental Death and Dismemberment
Ive never understood this one. If you need life insurance, wouldnt you want it for
the whole year, not just when youre traveling? And if you lose a limb, will a few
grand what World Nomads offers really help? (Note that life insurance
companies will ask about your travel habits; so be sure youre honest when you apply
and if you already have coverage, be sure it covers the countries youre visiting.)

So Is It Worth It?
Though some elements of the World Nomads package might have benefited me, I
decided the package as a whole didnt make sense for my trip. (I did end up buying a
yearlong medevac plan I found through insuremytrip.com for $225.)
Though my initial instinct to avoid package insurance had been (coincidentally)
right, the process was valuable anyway: I now know a lot more about my medical
coverage and credit card perks. Everyone should make similar calculations.
Of course, theres one more variable: if youre a worrier, and having coverage for
every imaginable circumstance will allow you to relax and enjoy your trip, then go
ahead and do it. I just wont be joining you.
Correction: February 10, 2013
The Frugal Traveler column last Sunday, about the pros and cons of buying travel
insurance, omitted a response from the company that provides health insurance for the
writer, who noted that he was concerned that his policy would not cover him while
traveling in Asia. A spokeswoman for the company, Freelancers Insurance Company, said
in an e-mail that its international coverage was designed to provide members with access
to care around the world. The reporter, who was out of the country, did not find the final email in their exchange until after his deadline. It is not the case that Freelancers Insurance
wouldnt speak on the record to clarify details of his policy.

Should You Buy Traveling Insurance?

Would you prefer to add traveling insurance coverage to your purchase?

That little insect of a question pops up every time I reserve a flight, validate a
hotel room or reserve a rental automobile. It's come to be the "Do you want
french fries with that?" of online traveling booking. The distinction: in some cases
I buy the fries.
I have never purchased traveling insurance coverage in my life considering that
impulse has constantly told me that it's a bad deal. I hardly ever spend for resort
areas, tours or rental autos beforehand. I don't pack designer clothing in my
checked luggage. I'm typically healthy, as well as I have medical insurance that
covers me abroad. (It claims to, a minimum of.).
However impulse is an inadequate means to deciding regarding insurance policy.
So with a three-week trip to Asia approaching, I lastly determined to identify

whether I should be taking a trip with insurance, and also, generally, when it is
smart to have it as well as when is it needless.
Travelers often buy insurance policy if they are a lot more in danger or more
likely than the average insurance policy holder to make a case. In economics
that's called "adverse option"-- but it's negative only for the insurance coverage
firms. For consumers, it's merely wise. Picture two people checking out a $100
insurance plan for a two-week travel: one is a 65-year-old heading to India,
where he prepares to lease a scooter, eat street food and sleep in alreadyreserved first-class hotels every night. The other is a 30-year-old visiting London,
planning to crash at a friend's apartment and get savings theater tickets every
night. It's pretty clear who must purchase insurance.
For my very own coverage, I took a look at bundles provided by World Nomads, a
prominent as well as well-regarded business that offers traveling insurance
coverage intends online. (If you are getting insurance policy, try them-- or
examine the options at insuremytrip.com, a travel insurance coverage search
site.).
Normally, traveling insurance policy is sold in packages, combining various
classifications of insurance coverage. Undergo them all, determining just what
you need and what you don't, either considering that you're not in jeopardy or
you're currently covered. If a package doesn't appear worth it, a lot more
customized policies (which you can find through insuremytrip.com, to name a
few sites) offer certain la carte options. But you may not finish up saving that
significantly.
Coverage for my Asia trip through World Nomads would cost me $85 for its
standard plan, and $116.40 for slightly more elaborate "traveler" coverage. I
looked at each aspect of their plans-- which are similar to most other packages
out there-- to compute whether, overall, they might be worth it to me (and to
you). Below is a breakdown.
Medical.
If your regular health and wellness insurance doesn't cover you while abroad,
you require some when you travel. Medicare participants and citizens of
countries covered by national health services generally fall into this category.
Others should look at the specifics of their policies. I have insurance coverage
through the Freelancers Insurance Firm, which uses heaven Cross Blue Cover
program; my plan explains that I'm "assured of receiving care from licensed
health care professionals no matter where" I am through the Blue Card
Worldwide network.
I visited heaven Card Worldwide Website and also was soothed to discover
numerous associated medical facilities noted in the Oriental cities I was
preparing to visit.
But I was still suspicious. I offered a hypothetical to the client service phone line:
what if, in an emergency, I ended up at an out-of-network hospital because I

couldn't communicate with paramedics or there was no affiliated hospital

nearby?
The representative was stumped, put me on grip, and returned. "I examined with
a supervisor," she said. "The claim would come through, we would deny it, then
you would have to appeal it," she said. Appeals, she added, were made on a
"case by situation" basis.
In other words: good luck. On the other hand, many travel insurance plan will
reimburse medical expenses no matter what health center you end up at.
Since I would not be taking part in any type of high-risk activities and I had a
battling possibility of being covered needs to the quite unlikely worst-case
situation take place, I determined the clinical protection added minimal benefit. I
did, though, arm myself with a printout of all the affiliated locations in the areas I
was checking out.
Unexpected emergency Evacuation.
This one is simple: without coverage, if I have to be medically left home from a
far-off land, I'm out something like $30,000. So it comes down to how most likely
the scenario is. Headed to a particularly isolated region? Climbing hills or fording
rivers? Then having evacuation coverage as part of a package or separately (the
cheapest I found for my trip on insuremytrip.com was $40) is an excellent idea.
Travel Protection.
This kind of insurance coverage offers reimbursement (sometimes partial) for
prepaid reservations if your trip is canceled, interrupted or delayed. I rarely
spend much on a vacation just before I leave past the plane ticket (constantly
trainer) and perhaps the first night in a resort (constantly economical). But for
others, with costly seats and also long pre paid bookings, it might make sense.
Additionally worth noting: some credit cards will provide similar coverage. My
United Mileage And also Explorer card from Chase does. And although it is most
likely harder to get a say processed with Chase than with World Nomads, I really
did not see significantly justification for replicate coverage.
Baggage Protection.
World Nomads will reimburse you for items lost or harmed en route, and also
cover costs sustained because luggage is postponed. For me, this was triplicate
coverage: my credit card covers this, and also airline companies are legally
needed to compensate you also, with constraints.
But the Nomads plan likewise covers damages as well as loss beyond your air
travel. I lug available about $3,000 of electronic devices all over I go, and World
Nomads would cover up to $500 per product (after depreciation). It deserves it to
figure out the worth of exactly what's within your luggage and also do the math.

Of course, whether you get reimbursed is mostly up to you. A World Nomads

customer service representative gave this example: if you leave your cellphone
in your bathing suit and go into the water, it's not covered. That's not only the
kind of thing I do, it's exactly what I did on a New Year's Eve a few years ago in
Rio de Janeiro.
Accidental Death and Dismemberment.
I've never understood this one. If you need life insurance, wouldn't you want it
for the entire year, not merely when you're taking a trip? As well as if you lose a
limb, will a few grand-- what World Nomads offers-- really help? (Note that life
insurance companies will ask about your travel habits; so be sure you're honest
when you apply-- as well as if you already have coverage, make sure it covers
the countries you're going to.).
So Is It Worth It?
Though some components of the Globe Nomads bundle might have benefited
me, I determined the plan as a whole really did not make sense for my travel. (I
did end up purchasing a yearlong medevac plan I found with insuremytrip.com
for $225.).
Though my preliminary impulse to avoid package insurance had been
(coincidentally) right, the process was valuable anyway: I now know a lot more
about my medical coverage and credit card perks. Everyone should make similar
calculations.
Of course, there's one more variable: if you're a worrier, and also having
coverage for every imaginable circumstance will allow you to relax and enjoy
your trip, then go in advance and do it. I just won't be joining you.
Correction: February 10, 2013.
The Frugal Traveler column last Sunday, about the advantages and
disadvantages of purchasing travel insurance, omitted a feedback from the
business that provides health insurance coverage for the writer, who noted that
he was concerned that his policy would not cover him while taking a trip in Asia.
A spokeswoman for the company, Freelancers Insurance Business, said in an
email that its international insurance coverage was designed to provide
members with access to care around the globe. The press reporter, that was out
of the nation, did not locate the final email in their exchange till after his due
date. It is not the case that Freelancers Insurance policy "wouldn't speak on the
record" to clear up specifics of his policy.

How to Buy Good Travel Insurance

By Nomadic Matt | Published January 22nd, 2013

While a lot of people think Im healthy, I dont need travel insurance. I wont get
sick, travel insurance is much than just medical protection. It covers you when your
camera breaks, your flight is cancelled, a family member dies and you have to come home, or
if something is stolen. It is the single most important thing you should get but hope to never
have to use. And for the little money it costs a day, youre foolish not to get it. I never
planned on falling in the sea in Italy with my camera or popping my ear drum in Thailand and
if it wasnt for my travel insurance, I would have been out a lot of money.
Travel insurance is one of the most complex and confusing aspects of trip planning. With the
myriad of plans and companies out there, people can easily get confused about what they
should get and why. Given its importance and the amount of time its been since I last
discussed it, I want to start the year by discussing it again. Ive seen too many people forgo
insurance and end up regretting it.
Travel insurance is something you absolutely need on the road. You never know what could
happen, and most health plans dont cover you overseas. I never thought I would pop my
eardrum while I was scuba diving or break my camera in Italy. My friend never thought he
would break his leg hiking or that another friends father would die and she would have to fly
back home. (My favorite travel insurance provider is World Nomads. They always have my
back when something like the above happens.)
Travel insurance was there when all those things happened. It is something you hope you
never have to use, and with plans costing just a few dollars per day, in my view, only an idiot
would travel without it. I would rather be safe than sorry and not be stuck with a giant
hospital bill.
I was recently in Africa for 3 weeks and my plan cost only 4 dollars per day. Considering my
domestic health plan wasnt going to cover me while overseas, it was a small price to pay for
knowing if I got attacked by a lion, bitten by a snake, or contracted malaria, I was protected.
But, like I said, its more than just medical care. Loose a bag? Insurance has you covered.
Trip cancelled? Insurance is there. Get something stolen? Insurance is there too.
Travel insurance has more than proved its worth many, many times. Its the kind of thing you
will be very thankful for when you need it but hope you never do. After all, you dont want to
end up like my friend who didnt have insurance when her computer was stolen and had to
pay out of pocket for a new one.
So let me explain how to avoid getting the wrong insurance plan and not being covered:
What to look for in a great plan
There are a lot of options out there. This is a billion dollar business and everyone wants their
hand in the cookie jar, thus you face a mind-numbing number of choices that can be
confusing and overwhelming. And, often, in the fine print, youll find that plans arent as
good as you thought.

When looking for a plan, first make sure they have a high coverage limit on your medical
expenses. Good companies provide up to $100,000 in coverage care, though more expensive
policies will cover you for higher amounts. The maximum coverage limit you can find is
around $1,000,000 USD, though Im not sure why you would ever need a limit that large.
High coverage limits are important because if you get sick, injured, or need serious attention
and have to seek professional care, you want to make sure your high hospital bills are
covered. The worst thing you can do is go cheap and get a policy with a $20,000 coverage
limit, break a leg, and reach that limit before they are done taking care of you. Dont be cheap
with your health.
Secondly, you want to make sure your policy also covers emergency evacuation and care that
is separate from your medical coverage. If you are hiking in the woods and you break your
leg, your policy should cover your evacuation to the hospital. If a natural disaster occurs and
you need to be evacuated to somewhere else, your plan should cover that as well. This
protection usually covers an expense of up to $300,000 USD.
Additionally, evacuation also should mean from the hospital to your home country. Standard
emergency evacuation usually includes this provision but its important you double-check a
company will cover the cost of your flight back home if you need it.
A great policy will always include the following provisions:

Cover most countries in the world.

Some coverage for your electronics (and have the option for a higher
coverage limit).
Cover injury and sudden illnesses.
Twenty-four hour emergency services and help (you dont want to call to
be told to call back later).
Cover lost, damaged or stolen possessions like jewelry, baggage,
documents, cameras, etc.
Cover cancellations such as hotel bookings, flight, and other
transportation bookings if you have a sudden illness, death in the family, or
some other emergency.
Cover emergencies, strife in the country visited, etc., that cause you to
head home early.
Policies should include personal accident coverage.
Cover any legal expenses that may be incurred.
Have financial protection if any company you are using goes bankrupt and
you are stuck in another country.

Dont get a policy that doesnt cover these bullet points!

A quick note on electronics: most companies only cover a small amount, usually up to $500
USD as part of their basic coverage. You can often buy supplemental insurance to get a
higher amount of coverage. For instance, Clements Insurance offers special coverage for your
electronics. Prices vary depending on the country you visit (between $145-195 per plan) but
they dont have worldwide coverage. You have to get coverage for your specific country.

Moreover, many regular and home insurance companies such as State Farm offer plans that
can help you cover your electronics.
What isnt covered is just as important as what is
Know what is also not covered by your plan. Most policies do not cover accidents sustained
while participating in extreme adventure activities such as hang gliding, paragliding, or
bungee jumping unless you pay extra. The majority of companies wont cover you if you
injure someone on the road (called third-party liability). Policies do not normally cover
alcohol- or drug-related incidents, or carelessness in handling your possessions and baggage.
You wont get reimbursed if the problem happened because you were reckless, and how
reckless is defined is a matter up to each company. Simply put, if a reasonable person
wouldnt partake in what caused your accident, you wont be covered.
Moreover, you wont be covered for pre-existing conditions or general check-ups. For
example, if you have a heart condition and develop a problem on the road, you wont be
covered. If you have diabetes and need to buy more insulin, you wont be covered. If you
want to go see a doctor for a general check-up, you arent covered either.
The medical portion of travel insurance is more about emergency care than being a
replacement for your normal health care. A lot of people purchase insurance thinking it is,
then get disappointed when they find out they cant go get an annual physical with it. Travel
insurance is accident insurance. It is there to protect you in case of emergency and, if need be,
get you home in a hurry. If you want a global health plan (because, say you now live in
Beijing), you need a completely different type of plan.
Making a claim
If you make a claim, remember that any travel insurance company, no matter how good, is
there to make money and will try to avoid paying out as much as they can. They are, after all,
an insurance company and they dont make money by paying out to every Tom, Dick and
Harry. Be prepared to wait to receive your money because even the best companies drag their
feet. In order to ensure that you do get paid your claim, make sure you have all your receipts,
necessary forms, and proper documentation all of it will help make your claim go through a
lot quicker.
Major travel agencies like STA Travel and Flight Centre also offer their own plans, though
coverage is very limited. While I havent used it, many other travel bloggers and writers I
know recommend Medjet and IMG. Another really good website is Insure My Trip.
It compares policies from a number of providers and a wide range of policies at once. Its like
a global insurance search site! It lots of people have success on their site, and I especially like
their high age limit as not enough companies cover seniors!
My favorite insurance provider is World Nomads. Ive been using them since I first started
traveling in 2003 and use no one else. They are very reputable, and claims are quickly and
fairly processed. I enjoy World Nomads for a number of reasons: I can purchase and renew

my insurance policy online in a matter of minutes, they have a very friendly and responsive
staff who answer questions and help solve problems via social media, have great customer
feedback, and most importantly, they provide a lot of coverage at a good price. If theres one
company I would recommend, I would say go with them.

How you can Acquire Good Traveling Insurance policy

While a great deal of people believe "I'm healthy, I do not require traveling
insurance coverage. I won't get sick," travel insurance is much compared to
merely clinical security. It covers you when your cam breaks, your flight is
terminated, a relative passes away and also you have to come home, or if
something is swiped. It is the single crucial point you should acquire however
wish to never need to use. As well as for the little cash it sets you back a day,
you're silly not of getting it. I never intended on falling in the sea in Italy with my
electronic camera or popping my ear drum in Thailand and also if it had not been
for my traveling insurance, I would have been out a lot of cash.
Traveling insurance policy is among the most complex and complicated facets of
trip preparation. With the myriad of strategies as well as firms available, people
could conveniently acquire puzzled concerning exactly what they must obtain
and also why. Given its importance and the amount of time it's been since I stay
discussed it, I intend to start the year by reviewing it again. I've viewed way too
many people forgo insurance as well as wind up regretting it.
Travel insurance coverage is something you absolutely need when driving. You
never understand just what can happen, and also the majority of health
insurance don't cover you overseas. I never assumed I would certainly pop my
tympanum while I was scuba diving or destroy my electronic camera in Italy. My
friend never ever believed he would crack his leg hiking or that another close
friend's daddy would pass away as well as she would have to fly back residence.
(My preferred travel insurance coverage service provider is Globe Nomads. They
consistently have my when something like the above takes place.).
Travel insurance policy existed when all those things occurred. It is something
you wish you never need to use, and with strategies costing merely a couple of
bucks every day, in my sight, simply a pinhead would travel without it. I would
rather be risk-free compared to sorry and not be stuck with a large hospital
costs.
I was just recently in Africa for 3 weeks as well as my plan expense simply 4
dollars every day. Considering my domestic health insurance had not been
visiting cover me while overseas, it was a tiny cost to pay for recognizing if I
obtained struck by a lion, attacked by a snake, or contracted fever and ague, I
was secured.

However, like I claimed, it's greater than just healthcare. Loose a bag? Insurance
policy has you covered. Trip cancelled? Insurance policy exists. Acquire
something swiped? Insurance is there also.
Travel insurance has more than proved its worth many, sometimes. It's the
example you will certainly be very happy for when you need it but hope you
never do. Nevertheless, you do not intend to wind up like my friend that really
did not have insurance coverage when her computer was stolen as well as had to
pay out of pocket for a brand-new one.
So let me explain how to stay clear of acquiring the incorrect insurance plan as
well as not being covered:.
What to look for in an excellent strategy.
There are a lot of options around. This is a billion dollar company and every
person wants their hand in the biscuit container, hence you encounter a mindnumbing number of choices that can be perplexing as well as overwhelming. As
well as, commonly, in the small print, you'll locate that strategies typically aren't
comparable to you assumed.
When trying to find a plan, initially see to it they have a high insurance coverage
restriction on your clinical expenses. Great companies give approximately
$100,000 in coverage service, though much more pricey policies will cover you
for greater amounts. The max insurance coverage restriction you could discover
is around $1,000,000 USD, though I'm uncertain why you would certainly ever
require a limit that large. High protection limitations are important since if you ill,
damaged, or need significant interest and also need to look for expert care, you
want to ensure your high health center expenses are covered. The worst point
you can do is go low-cost and also acquire a policy with a $20,000 coverage
limit, crack a leg, and reach that limit prior to they are done dealing with you. Do
not be cheap with your wellness.
Secondly, you wish to ensure your policy likewise covers emergency situation
evacuation as well as care that is different from your medical protection. If you
are treking in the timbers as well as you break your leg, your policy needs to
cover your evacuation to the health center. If an organic calamity takes place as
well as you should be vacated to somewhere else, your plan should cover that
also. This defense usually covers an expenditure of up to $300,000 USD.
Furthermore, evacuation also must suggest from the healthcare facility to your
house country. Requirement emergency evacuation generally includes this
provision yet it is very important you confirm a business will certainly cover the
cost of your flight back home if you need it.
A wonderful plan will consistently include the following stipulations:.
Cover most countries on the planet.

 Some insurance coverage for your electronics (and also have the choice for
a greater coverage limitation).
Cover injury and also abrupt health problems.
Twenty-four hr unexpected emergency services and aid (you do not wish to
call to be told to recall later on).
Cover lost, ruined or taken possessions like jewelry, baggage, documents,
cams, etc.
Cover terminations such as hotel bookings, flight, and also other transport
reservations if you have an abrupt disease, death in the family, or some other
emergency situation.
Cover emergencies, quarrel in the nation saw, and so on, that cause you to
head home early.
Plans ought to include personal mishap coverage.
Cover any sort of legal services expenditures that may be incurred.
Have economic protection if any kind of business you are utilizing goes
bankrupt and also you are stuck in an additional nation.
Don't get a policy that doesn't cover these bullet issues!
A quick note on electronic devices: most firms only cover a percentage, generally
as much as $500 USD as part of their standard coverage. You could usually buy
extra insurance policy to get a greater quantity of coverage. For example,
Clements Insurance coverage provides unique insurance coverage for your
electronic devices. Costs differ depending on the nation you check out (between
$145-195 per strategy) yet they don't have globally protection. You have to get
coverage for your particular country. Moreover, lots of normal as well as house
insurance policy firms such as State Farm deal plans that can assist you cover
your electronics.
Just what isn't covered is equally as essential as what is.
Know exactly what is also not covered by your plan. The majority of plans do not
cover accidents suffered while taking part in severe experience activities such as
put up moving, paragliding, or bungee jumping unless you pay added. Most of
companies will not cover you if you injure an individual when driving (called
third-party responsibility). Policies do not usually cover liquor- or drug-related
events, or recklessness in handling your possessions as well as luggage. You will
not get reimbursed if the issue took place since you were negligent, and also
how "reckless" is specified is a concern as much as each firm. Put simply, if a
practical person would not partake in just what caused your mishap, you will not
be covered.

Furthermore, you won't be covered for pre-existing disorders or basic exams. As

an example, if you have a heart disease and also establish a trouble when
driving, you will not be covered. If you have diabetics issues as well as should
purchase even more insulin, you won't be covered. If you intend to go view a
physician for a basic exam, you aren't covered either.
The clinical part of travel insurance policy is more concerning emergency care
than being a substitute for your regular healthcare. A bunch of individuals
purchase insurance believing it is, after that get let down when they learn they
can not go get a yearly bodily with it. Travel insurance coverage is accident
insurance. It is there to safeguard you in case of unexpected emergency as well
as, if requirement be, acquire you home in a hurry. If you want a global health
plan (because, state you now live in Beijing), you need a totally various sort of
strategy.
Making a claim.
If you make a claim, keep in mind that any type of travel insurance coverage
company, regardless of how good, exists to generate income and also will
certainly attempt to stay clear of paying as long as they can. They are, after all,
an insurance coverage company and also they do not earn money by paying out
to every Tom, Cock and also Harry. Be readied to hesitate to get your money due
to the fact that also the most effective companies drag their feet. In order to
make sure that you do make money your say, make sure you have all your
receipts, needed kinds, as well as proper paperwork-- all of it will certainly aid
make your claim look at a lot quicker.
Major holiday company like STA Traveling and Flight Center likewise supply their
own plans, though coverage is really minimal. While I have not utilized it, many
other traveling blog writers and also writers I recognize suggest Medjet and IMG.
Another actually excellent internet site is Guarantee My Travel. It compares
policies from a variety of carriers and also a variety of plans at once. It resembles
an international insurance search website! It great deals of people have success
on their site, and I especially like their high age limitation as not nearly enough
business cover seniors!
My favorite insurance coverage company is World Nomads. I have actually been
using them since I initially started taking a trip in 2003 as well as make use of
nobody else. They are really reputable, and also claims are quickly and fairly
processed. I take pleasure in Globe Nomads for a variety of factors: I could
acquire and also restore my insurance coverage online in a concern of few
minutes, they have a quite friendly as well as receptive team which answer
questions and also aid address problems through social media sites, have
excellent client feedback, as well as most significantly, they offer a great deal of
coverage at an excellent cost. If there's one firm I would certainly advise, I would
certainly say opt for them.

Do I Need Travel Insurance?

When considering an insurance plan, its good to know what it does and doesnt cover.

By Rick Steves
Travel insurance can minimize the considerable financial risks of traveling:
accidents, illness, missed flights, canceled tours, lost baggage, theft,
terrorism, travel-company bankruptcies, emergency evacuation, and getting
your body home if you die. Each travelers potential loss varies, depending on
how much of your trip is prepaid, the refundability of the air ticket you
purchased, your state of health, the value of your luggage, where youre

traveling, the financial health of your tour company and airline, and what
coverage you already have (through your medical insurance, homeowners or
renters insurance, and/or credit card).
For some travelers, insurance is a good deal; for others, its not. What are the
chances youll need it? How willing are you to take risks? How much is peace
of mind worth to you? Take these considerations into account, understand
your options, and make an informed decision for your trip.

Insurance Basics
The insurance menu includes five main courses: trip cancellation and
interruption, medical, evacuation, baggage, and flight insurance.
Supplemental policies can be added to cover specific concerns, such as
identity theft or political evacuation. The various types are generally sold in
some combination rather than buying only baggage, medical, or
cancellation insurance, youll usually purchase a package that includes most
or all of them. If you want just one type of coverage in particular such as
medical ask for that (though it might come with a little cancellation or
baggage insurance, too). Comprehensive insurance covers all of the above
(plus expenses incurred if your trip is delayed, if you miss your flight, or if
your tour company changes your itinerary).
One of the better changes in recent years is that many companies, such
as Travelex and Travel Guard, now offer comprehensive packages that serve
as your primary coverage; theyll take care of your expenses regardless of
what other insurance you might have (for instance, if you have health
insurance through your job). That means they pay first and dont ask
questions about your other insurance. This can be a real plus if you want to
avoid out-of-pocket expenses.
Insurance prices can vary dramatically, with most packages costing between
5 and 12 percent of the total trip. Age is one of the biggest factors affecting
the price: Rates go up dramatically for every decade over 50, while coverage
is generally inexpensive or even free for children 17 and under.
Travel agents recommend that you get travel insurance (because they get a
commission when you buy it, and because they can be held liable for your
losses if they dont explain insurance options to you). While travel agents can

give you information and advice, they are not insurance agents always
direct any specific questions to the insurance provider.
Policies available vary by state, and not all insurance companies are licensed
in every state. If you have to make a claim and encounter problems with a
company that isnt licensed in your state, you dont have a case.
Note that some travel insurance, especially trip-cancellation coverage, is
reimbursement-only: Youll pay out-of-pocket for your expenses, then submit
the paperwork to your insurer to recoup your money. With medical coverage,
you may be able to arrange to have expensive hospital or doctor bills paid
directly. Either way, if you have a problem, its wise to contact your insurance
company immediately to ask them how to proceed. Many major insurance
companies are accessible by phone 24 hours a day handy if you have
problems in Europe.

Types of Coverage
For each type of insurance that follows, Ive outlined some of the key
legalese. But be warned these are only guidelines. Policies can differ, even
within the same company. Certain companies and policies have different
levels of coverage based on whether you purchase the car rental, hotel, or
flight directly on your own or through a travel agent. Ask a lot of questions,
and always read the fine print to see whats covered (e.g., how they define
travel partner or family member your great-aunt might not qualify).

Trip-Cancellation or Interruption Insurance

For me, this is the most usable and worthwhile kind of insurance. Its
expensive to cancel or interrupt any prepaid kind of travel, and for a fraction
of the trip cost, you can alleviate the risk of losing money if something
unforeseen gets in the way. The rugged, healthy, unattached, and gung-ho
traveler will probably forgo trip-cancellation or interruption coverage. I have
skipped it many times, and my number has yet to come up. But if youre
paying out a lot of up-front money for an organized tour (which is expensive
to cancel), if you have questionable health, or if you have a loved one at
home in poor health, its probably a good idea to get this coverage.

Before purchasing trip-cancellation or interruption coverage, check with your

credit-card issuer; yours may offer limited coverage for flights or tours
purchased with the card.
A standard trip-cancellation or interruption insurance policy covers the
nonrefundable financial penalties or losses you incur when you cancel a
prepaid tour or flight for an acceptable reason, such as:

You, your travel partner, or a family member cannot travel because of

sickness, death, layoff, or a list of other acceptable reasons;

Your tour company or airline goes out of business or cant perform as

promised;

A family member at home gets sick (check the fine print to see how a
family members pre-existing condition might affect coverage);

You miss a flight or need an emergency flight for a reason outside your
control (such as a car accident, inclement weather, or a strike).
So, if you or your travel partner accidentally breaks a leg a few days before
your trip, you can both bail out (if you both have this insurance) without
losing all the money you paid for the trip. Or, if youre on a tour and have an
accident on your first day, youll be reimbursed for the portion of the tour you
werent able to use.
This type of insurance can be used whether youre on an organized tour or
cruise, or traveling independently (in which case, only the prepaid expenses
such as your flight and any nonrefundable hotel reservations are
covered). Note the difference: Trip cancellation is when you dont go on your
trip at all. Trip interruption is when you begin a journey but have to cut it
short; in this case, youll be reimbursed only for the portion of the trip that
you didnt complete. If youre taking a tour, it may already come with some
cancellation insurance ask.
Some insurers wont cover certain airlines or tour operators. Many are
obvious such as companies under bankruptcy protection but others can
be surprising (including major airlines). Make sure your carrier is covered.
Its smart to buy your insurance policy within a week of the date you make
the first payment on your trip. Policies purchased later than a designated
cutoff date generally 7 to 21 days, as determined by the insurance
company are less likely to cover tour company or air carrier bankruptcies,

pre-existing medical conditions (yours or those of family members at home),

or terrorist incidents. Mental-health concerns are generally not covered.
You can avoid the question of what is and what isnt covered by buying a
costly any reason policy. These offer at least partial reimbursement
(generally 75 percent) no matter why you cancel the trip. But the premiums
are so hefty that these policies appeal mostly to deep-pocketed nervous
Nellies.

Medical Insurance
Before buying a special medical insurance policy for your trip, check with
your medical insurer you might already be covered by your existing health
plan. While many US insurers cover you overseas, Medicare does not.
Even if your health plan does cover you internationally, you may want to
consider buying a special medical travel policy. Much of the additional
coverage available is supplemental (or secondary), so it covers whatever
expenses your health plan doesnt, such as deductibles. But you can also
purchase primary coverage, which will take care of your costs up to a certain
amount. In emergency situations involving costly procedures or overnight
stays, the hospital will typically work directly with your travel-insurance
carrier on billing (but not with your regular health insurance company; youll
likely have to pay up front to the hospital or clinic, then get reimbursed by
your stateside insurer later). For non-emergencies, a quick visit to a doctor
will likely be an out-of-pocket expense (youll bring home documentation to
be reimbursed). Whatever the circumstances, its smart to contact your
insurer from the road to let them know that youve sought medical help.
Many pre-existing conditions are covered by medical and trip-cancellation
coverage, depending on when you buy the coverage and how recently youve
been treated for the condition. If you travel frequently to Europe, multitrip
annual policies can save you money. Check with your agent or insurer before
you commit.
The US State Department periodically issues warnings about traveling to atrisk countries. If youre visiting one of these countries, your cancellation and
medical insurance will likely not be honored, unless you buy supplemental
coverage.

For travelers over 70 years old, buying travel medical insurance can be
expensive. Compare the cost of a travel medical plan with comprehensive
insurance, which come with good medical and evacuation coverage that can
otherwise be very expensive. A travel-insurance company can help you sort
out the options. Certain Medigap plans cover some emergency care outside
the US; call the issuer of your supplemental policy for the details.

Other Insurance
Evacuation insurance covers the cost of getting you to a place where you can
receive appropriate medical treatment in the event of an emergency. (In a
worst-case scenario, this can mean a medically equipped and incredibly
expensive private jet.) This is usually not covered by your regular medicalinsurance plan back home. Sometimes this coverage can get you home after
an accident, but more often, itll just get you as far as the nearest major
hospital. Medical repatriation that is, getting you all the way home is
likely to be covered only if its considered medically necessary. Before
purchasing a policy, ask your insurer to explain what exactly whats covered
before and afteryou get to the hospital.
Keep in mind that medical and evacuation insurance may not cover you if
youre participating in an activity your insurer considers to be dangerous
(such as skydiving, mountain climbing, bungee jumping, scuba diving, or
even skiing). Some companies sell supplementary adventure-sports
coverage.
Baggage insurance for luggage that is lost, delayed, or damaged is
included in most comprehensive policies, but its rare to buy it separately.
Baggage insurance puts a strict cap on reimbursement for such items as
jewelry, eyewear, electronics, and photographic equipment read the fine
print. If you check your baggage for a flight, its already covered by the
airline (ask your airline about its luggage liability limit; if you have
particularly valuable luggage, you can buy supplemental excess valuation
insurance directly from the airline). Check if your homeowners or renters
insurance covers baggage. Travelers baggage insurance will cover the
deductibles and items excluded from your homeowners policy. Double-check
the particulars with your agent. If your policy doesnt cover expensive rail
passes, consider Rail Europes Rail Protection Plan, which must be purchased

when you buy your pass (but first check what the plan for your pass actually
covers it may not be a good value).
Flight insurance (crash coverage) is a statistical rip-off that heirs love. Its
basically a life insurance policy that covers you when youre on the airplane.
Since plane crashes are so rare, theres little sense in spending money on this
insurance.
Collision coverage, an important type of insurance for rental cars, may be
included in some comprehensive travel-insurance plans or available as an
upgrade on others.

Do I Required Travel Insurance coverage?

When thinking about an insurance policy strategy, it excels to know just what it
does and doesn't cover.
By Rick Steves
Traveling insurance coverage could reduce the significant financial threats of
traveling: accidents, health problem, missed out on trips, canceled trips, shed
baggage, theft, terrorism, travel-company insolvencies, emergency evacuation,
and acquiring your body house if you die. Each tourist's potential loss varies,
depending on the amount of of your trip is prepaid, the refundability of the air
ticket you bought, your state of wellness, the value of your travel luggage, where
you're traveling, the monetary wellness of your tour firm and airline company,
and also exactly what protection you already have (with your clinical insurance
coverage, residents or occupants insurance, and/or credit card).
For some tourists, insurance coverage is a bargain; for others, it's not. Just what
are the possibilities you'll need it? Just how prepared are you to take dangers?
How much is peace of mind well worth to you? Take these considerations into
account, comprehend your alternatives, and also make an informed decision for
your journey.
Insurance coverage Fundamentals
The insurance policy menu includes 5 main dishes: trip termination as well as
interruption, medical, evacuation, baggage, and flight insurance coverage.
Supplemental policies can be added to cover specific worries, such as identity

theft or political evacuation. The different kinds are typically sold in some mix-as opposed to buying simply baggage, clinical, or cancellation insurance policy,
you'll often acquire a package deal that includes most or every one of them. If
you desire just one sort of coverage particularly-- such as medical-- request that
(though it might come with a little cancellation or baggage insurance policy,
also). "Comprehensive insurance coverage" covers all the above (plus expenses
sustained if your journey is postponed, if you miss your air travel, or if your
excursion business alters your schedule).
Among the much better changes in the last few years is that many firms, such as
Travelex and also Traveling Guard, now supply extensive packages that function
as your main protection; they'll look after your expenditures no matter just what
various other insurance coverage you might have (for instance, if you have
health plan via your work). That indicates they pay first and also don't ask
concerns about your other insurance. This can be a genuine plus if you intend to
avoid out-of-pocket expenses.
Insurance coverage prices can differ significantly, with many bundles setting you
back in between 5 and 12 percent of the overall travel. Age is just one of the
largest aspects affecting the quote: Fees go up drastically for every single years
over 50, while insurance coverage is typically cost-effective or even totally free
for children 17 and under.
Traveling agents suggest that you acquire travel insurance coverage (because
they acquire a compensation when you buy it, as well as considering that they
can be held liable for your losses if they don't describe insurance policy options
to you). While travel brokers can offer you information and also suggestions, they
are not insurance policy representatives-- always drive any type of particular
inquiries to the insurance coverage service provider.
Policies available vary by state, and also not all insurance coverage business are
certified in every state. If you have to make a say and encounter issues with a
firm that isn't authorizeded in your state, you don't have a case.
Note that some traveling insurance policy, particularly trip-cancellation
protection, is reimbursement-only: You'll pay out-of-pocket for your costs, then
send the documentation to your insurance company to recover your money. With
clinical coverage, you might have the ability to arrange to have pricey hospital or
dentist expenses paid straight. In either case, if you have a trouble, it's a good
idea to call your insurance coverage business immediately to ask them ways to
proceed. Numerous major insurance policy firms come by phone 24 hours a day-convenient if you have issues in Europe.
Sorts of Coverage
For each and every kind of insurance that complies with, I've detailed some of
the crucial legalese. But be advised-- these are only guidelines. Policies could
differ, also within the same business. Particular business as well as policies have
various degrees of coverage based upon whether you acquire the auto rental,

resort, or flight directly on your own or through a traveling broker. Ask a bunch of
inquiries, and also consistently check out the small print to see just what's
covered (e.g., how they specify "travel partner" or "family member"-- your greataunt may not competent).
Trip-Cancellation or Disturbance Insurance coverage
For me, this is one of the most functional and also worthwhile kind of insurance
coverage. It's costly to terminate or disrupt any sort of prepaid sort of travel, and
for a fraction of the trip expense, you can ease the threat of shedding cash if
something unforeseen obstructs. The rugged, healthy and balanced, unattached,
and also gung-ho traveler will most likely pass up trip-cancellation or interruption
insurance coverage. I have actually avoided it many times, and my number has
yet ahead up. But if you're paying a bunch of up-front money for an organized
trip (which is pricey to cancel), if you have suspicious health, or if you have a
loved one in the house in poor health, it's possibly a good idea of getting this
insurance coverage.
Prior to purchasing trip-cancellation or interruption insurance coverage, contact
your credit-card issuer; your own might supply limited insurance coverage for
flights or tours purchased with the card.
A common trip-cancellation or disturbance insurance coverage covers the
nonrefundable financial penalties or losses you sustain when you terminate a pre
paid tour or trip for an acceptable factor, such as:
You, your traveling partner, or a relative could not take a trip because of
illness, death, discharge, or a list of various other appropriate reasons;
Your trip firm or airline goes out of business or can not carry out as
guaranteed;
A relative at home ills (inspect the fine print to view exactly how a family
member's pre-existing disorder may have an effect on protection);.
You miss out on a flight or need an unexpected emergency air travel for a
factor outside your command (such as an auto accident, stormy climate, or a
strike).
So, if you or your travel partner inadvertently damages a leg a few days prior to
your travel, you could both bail out (if you both have this insurance) without
losing all the cash you paid for the trip. Or, if you're on a tour and also have an
accident on your initial day, you'll be reimbursed for the part of the trip you
weren't able to make use of.
This type of insurance policy can be utilized whether you're on an organized trip
or trip, or taking a trip separately (where instance, only the pre-paid expenses-such as your air travel and any kind of nonrefundable resort reservations-- are
covered). Note the distinction: Journey termination is when you do not take place
your journey whatsoever. Trip interruption is when you start a trip yet have to cut

it short; in this case, you'll be compensated only for the section of the journey
that you really did not full. If you're taking a trip, it may currently come with
some termination insurance-- ask.
Some insurance companies will not cover specific airlines or trip operators. Many
are apparent-- such as business under personal bankruptcy security-- however
others can be unexpected (consisting of major airline companies). Make sure
your service provider is covered.
It's clever to buy your insurance plan within a week of the day you make the very
first repayment on your trip. Plans purchased behind a marked cutoff day-generally 7 to 21 days, as established by the insurance policy business-- are less
likely to cover trip company or air provider bankruptcies, pre-existing clinical
disorders (your own or those of member of the family in the house), or terrorist
incidents. Mental-health issues are generally not covered.
You can avoid the question of what is as well as just what isn't covered by buying
an expensive "any factor" plan. These supply at the very least partial
reimbursement (normally 75 percent) regardless of why you cancel the travel.
But the costs are so hefty that these policies appeal mostly to deep-pocketed
nervous Nellies.
Medical Insurance policy.
Just before buying a special medical insurance policy for your journey, contact
your medical insurance provider-- you may already be covered by your existing
health insurance. While lots of United States insurance providers cover you
overseas, Medicare does not.
Even if your health plan does cover you globally, you may wish to consider
getting an unique clinical traveling plan. Much of the additional protection
available is supplemental (or "additional"), so it covers whatever expenses your
health plan does not, such as deductibles. But you could likewise acquire primary
insurance coverage, which will certainly care for your expenses approximately a
certain quantity. In unexpected emergency scenarios involving expensive
treatments or over night remains, the health center will normally function
straight with your travel-insurance service provider on invoicing (yet not with
your normal health plan firm; you'll likely have to pay up front to the health
center or hair clinic, after that acquire compensated by your stateside insurance
provider later on). For non-emergencies, a fast visit to a physician will likely be
an out-of-pocket expense (you'll bring home documentation to be reimbursed).
Whatever the circumstances, it's wise to contact your insurance company from
the road to permit them understand that you've looked for medical aid.
Several pre-existing conditions are covered by clinical as well as trip-cancellation
coverage, depending upon when you purchase the protection and how just
recently you have actually been treated for the condition. If you travel often to
Europe, multitrip yearly policies could conserve you money. Consult your broker
or insurance provider just before you dedicate.

The US State Division periodically problems precautions about taking a trip to atrisk nations. If you're seeing among these countries, your cancellation and
medical insurance coverage will likely not be recognized, unless you purchase
extra insurance coverage.
For travelers over 70 years old, purchasing traveling medical insurance policy
can be expensive. Contrast the price of a traveling medical strategy with detailed
insurance coverage, which have good medical and evacuation insurance
coverage that could or else be extremely pricey. A travel-insurance company
could assist you figure out the options. Specific Medigap strategies cover some
emergency treatment outside the US; call the issuer of your extra policy for the
information.
Various other Insurance policy.
Evacuation insurance covers the cost of getting you to an area where you could
obtain ideal clinical therapy in case of an emergency situation. (In a worst-case
circumstance, this could mean a clinically outfitted-- and also incredibly
expensive-- exclusive jet.) This is generally not covered by your regular medicalinsurance strategy back house. In some cases this protection can obtain you
residence after a crash, however more often, it'll merely get you as for the
closest significant healthcare facility. "Medical repatriation"-- that is, acquiring
you completely home-- is likely to be covered just if it's taken into consideration
medically necessary. Before buying a policy, ask your insurance company to
clarify exactly what what's covered just before and also afteryou reach the health
center.
Keep in mind that clinical and evacuation insurance might not cover you if you're
taking part in an activity your insurance provider considers to be harmful (such
as skydiving, mountain climbing, bungee leaping, diving, or maybe winter
sports). Some firms offer supplemental adventure-sports insurance coverage.
Luggage insurance coverage-- for travel luggage that is lost, postponed, or
ruined-- is consisted of in a lot of comprehensive plans, yet it's uncommon to buy
it individually. Baggage insurance coverage puts a stringent cap on repayment
for such items as precious jewelry, eyeglasses, electronics, and photo
equipment-- read the particulars. If you examine your baggage for a flight, it's
currently covered by the airline (ask your airline company concerning its
baggage obligation limitation; if you have particularly useful baggage, you can
acquire additional "excess appraisal" insurance straight from the airline
company). Inspect if your residents or renters insurance covers baggage.
Travelers luggage insurance will cover the deductibles and also items left out
from your residents plan. Double-check the particulars with your broker. If your
policy doesn't cover costly rail passes, think about Rail Europe's Rail Security
Strategy, which should be purchased when you get your pass (but first check
what the plan for your pass actually covers-- it could not be a good value).
Trip insurance ("collision insurance coverage") is an analytical rip-off that heirs
love. It's essentially a life insurance policy that covers you when you're on the

airplane. Since plane crashes are so unusual, there's little sense in spending cash
on this insurance coverage.
Crash coverage, an essential type of insurance for rental autos, might be
consisted of in some comprehensive travel-insurance strategies or readily
available as an upgrade on others.

While life insurance isn't fun to buy, it's a critical part of many
financial plans.

Few people get a shopper's high buying toilet paper, motor oil and toothbrushes. But
perusing the aisles hunting down these items is like a shopper's paradise next to
buying life insurance for most.
Life insurance ranks at the top of the list of things consumers know they probably
should buy, but get no personal enjoyment from whatsoever. There's just no happy way
to look at life insurance. In the best-case scenario, life insurance is just another bill to
pay. And in the worst case, your family collects the benefits, but unfortunately you're
dead.
But while life insurance isn't all that much fun to buy, much less talk about, it's a critical
part of many people's financial plans. A life insurance policy is a pact between you and
the insurance company. As long as you pay the bill, or premium, the company will be
there to pay a death benefit to your beneficiaries if you pass away, giving them cash to
get by.
The piece of mind consumers can get from owning a life insurance policy to protect
their families from untimely death can be hard to quantify, but an important one
nonetheless.
"In the stages of your life, right out of college to a young professional, you might have a
first marriage and children come along," says Cary Guffey, financial adviser at PNC and
Certified Financial Planner. "You have a need for protection."
Since insurance is something many people dread to buy, it might be tempting to just
skip the whole thing. Life insurance can be especially daunting since it can get
extraordinarily complicated in a hurry. Yet going without life insurance can leave your
family, spouse or other dependents facing enormous bills and financial obligations with

little or reduced income. Similarly, some consumers go overboard and buy too much
life insurance or get involved in complicated policies that aren't appropriate for them.
Some employees might be tempted to just sign up for a life insurance policy through
their employers. These plans have a death benefit that's a multiple of the worker's
salary, with the employee able to buy additional coverage. Such group plans make
sense for employees who might not be able to get a policy on their own due to preexisting health issues, or want to make the process as easy and painless as possible.
But these plans come with a huge downside that makes them inappropriate for many: If
you leave the employer, you cannot renew. If you leave a company after working there
a decade for instance, you'll need to buy your own life insurance policy. But at that
point you might not be insurable, due to an health issue that arises, or you'll face higher
premiums because you're older.
Understanding there's probably a dozen other things you'd like to be reading about,
financial planners suggest people keep things simple when it comes to life insurance.
Using your age as a basic proxy for how much life insurance you need and how you
should buy it works for most. Here are the guidelines you need to know:
The big demand years: 25 to 35. If there's a time you need life insurance the most,
it's now. The list of obligations at this stage in most people's lives is a long one:
mortgage, kids' college fund, car payments and retirement planning. What's more,
many people at this stage in their lives are still building their assets and are far from
having enough to cover costs in case of a disruption to income, Guffey says.
But there's a bright spot. If you buy a term life insurance policy, which is the best option
for most, the prices are very reasonable during these years since death is, hopefully, a
very remote possibility, says John Hauserman of financial planning firm
RetirementQuest and a Certified Financial Planner. Term life policies are pretty
straightforward. You pay a set monthly or annual premium in exchange to having a
preset death benefit for a set number of years.
For instance, a 30-year-old male in good health could get a $500,000 term life policy,
good for 30 years, for less than $525 a year from a reputable insurance carrier.
Typically, all that's needed is a blood test and a check. The general rule of thumb is to
have a enough coverage to cover all the family's debts, be it mortgage or cars, Guffey
says. A case can be made to have more, though, to make up for lost income, for
instance. "For young people, term insurance is a very cheap and a very cost-effective
way to take away risk," Hauserman says.
Need for life insurance wanes, but doesn't disappear: 35 to 55. Insurance still
plays a role in the financial "pre-retirement years," but it's starting to get less important,
Guffey says. By the time people are hitting these years, especially if they had a

financial plan when they were younger, they see their liabilities shrink and their assets
grow. This reduces the need for life insurance. On the liability side, mortgage balances
are starting to fall as the loans have been paid on for years. Meanwhile, college
savings plans and retirement plans are probably well on the way at this point. Most
people in this stage in their lives, too, should have their term policies in place that they
set up while they were younger.
That's not to say there's no need for life insurance in this age bracket. There are cases
when consumers might add a second home, have a child or adopt children later in their
careers. Some people in this stage in their lives might also need to think about
providing financial security for grandchildren, Guffey says. These unique cases require
protection.
Life insurance turns into something else: 55 +. Once consumers get within 10
years of retirement, or are retired, life insurance is no longer needed for protection. The
biggest financial risk is no longer death, but rather, the odds of needing constant
medical attention, says Greg Dorriety of Optimum Asset Management and a Certified
Financial Planner. By the time people get into their 50s and 60s, their kids are working,
homes are paid for and most expenses drop. The exception to that, however, is
medical costs, which are rising in many cases. It's at this point that many consumers
might opt to consider skipping life insurance, and instead moving the cash toward a
long-term care policy, to protect them from the costs of a prolonged period of assisted
living, Dorriety says. Some insurance companies are developing life insurance policies
that morph over time into long-term care policies. But these policies are relatively new
and aren't as "efficient" as simply buying a long-term care policy, he says.
At this stage of life, a few consumers in very special cases might consider whole life
policies. These complex life insurance contracts blend a savings and investment
account with a traditional death benefit, or payment to beneficiaries on the death of the
owner of the policy, Guffey says. These whole life policies require consumers to pay an
annual sum, part of which goes to the life insurance policy, but allow cash to build up in
an associated account that can be paid to beneficiaries shielded from tax.
But for most people, whole life policies are too complicated, fees too high and returns
too low to make them the best choice even for consumers in their 50s, 60s or higher,
Hauserman says. The premiums on whole life policies tend to be 10 times higher than
those on term life policies. Meanwhile, the returns on the cash stored in the whole life
policies tend to be low, he says. Whole life policies can make sense for people who
have already contributed the maximum to their 401(k) plans, have additional cash to
save, are nervous investors who tend to only buy low-yielding certificates of deposit
and expect to die young, he says. "You have many hurdles to cross to get there,"
Hauserman says.

With the right planning and understanding of how life insurance fits into a plan, it's one
of the easier things in financial planning to take care of. Not having the right life
insurance "is a relatively easy thing to fix," Hauserman says.

While life insurance isn't enjoyable to purchase, it's an essential part of

numerous financial plans.

Couple of folks get a buyer's high buying bathroom tissue, electric motor oil and
also tooth brushes. Yet browsing the alleys hunting down these things is like a
shopper's paradise beside getting life insurance for the majority of.
Life insurance places at the top of the listing of points consumers know they
probably ought to purchase, however obtain no personal enjoyment from
whatsoever. There's merely no satisfied way to check out life insurance. In the
best-case circumstance, life insurance is merely one more costs to pay. And in
the worst instance, your family gathers the perks, however however you're dead.
However while life insurance isn't all that significantly enjoyable to buy, much
less talk about, it's a vital part of lots of people's monetary strategies. A life
insurance policy is a deal in between you as well as the insurance coverage
company. As long as you foot the bill, or premium, the firm will exist to pay a
death benefit to your beneficiaries if you die, providing them money to obtain by.
The piece of thoughts consumers could get from possessing a life insurance plan
to secure their families from unforeseen death can be difficult to quantify, yet a
vital one however.
"In the stages of your life, right from university to a young specialist, you might
have an initial marital relationship and youngsters come along," states Cary
Guffey, monetary advisor at PNC and also Certified Economic Planner. "You have
a requirement for protection.".
Considering that insurance coverage is something many individuals dread to
purchase, it may be tempting to just miss the whole point. Life insurance can be
specifically complicated considering that it can obtain very complexed in a hurry.
Yet do without life insurance could leave your household, spouse or other
dependents facing substantial expenses as well as financial commitments with
little or reduced earnings. Similarly, some consumers overdo it as well as get way
too much life insurance or acquire involved in difficult plans that aren't proper for
them.

Some employees might be tempted to merely sign up for a life insurance policy
via their companies. These strategies have a death benefit that's a multiple of
the employee's salary, with the worker able to get additional coverage. Such
team strategies make sense for staff members that might not have the ability to
get a plan by themselves due to pre-existing wellness issues, or intend to make
the procedure as simple as well as pain-free as feasible. However these plans
feature a big disadvantage that makes them improper for many: If you leave the
company, you can not revive. If you leave a company after working there a years
as an example, you'll should get your own life insurance policy. But at that point
you might not be insurable, due to a wellness problem that occurs, or you'll face
higher costs because you're older.
Recognizing there's most likely a lots other things you want to be reading
around, economic organizers recommend people maintain points basic when it
revives insurance coverage. Using your age as a basic proxy for just how much
life insurance you require and also how you must buy it helps a lot of. Here are
the guidelines you should understand:.
The large need years: 25 to 35. If there's a time you need life insurance the
most, it's now. The list of obligations at this stage in lots of people's lives is a
long one: mortgage, children' university fund, vehicle payments and also retired
life preparing. Just what's more, many people at this stage in their lives are still
constructing their possessions and also are far from having enough to cover
costs in case of an interruption to earnings, Guffey states.
However there's an intense area. If you purchase a term life insurance plan,
which is the most effective choice for most, the prices are very sensible during
these years given that fatality is, with any luck, a very remote possibility, states
John Hauserman of financial planning law firm RetirementQuest and a Licensed
Financial Coordinator. Term life plans are rather uncomplicated. You pay a set
month-to-month or annual costs in exchange to having a predetermined death
benefit for a set variety of years.
As an example, a 30-year-old man in good health could acquire a $500,000 term
life policy, great for 30 years, for less than $525 a year from a reliable insurance
coverage carrier. Generally, all that's required is a blood examination and also an
examination. The general guideline is to have a sufficient protection to cover all
the family's debts, be it home loan or vehicles, Guffey says. A situation can be
made to have a lot more, though, to balance lost revenue, for instance. "For
youths, term insurance policy is an extremely economical as well as a really
affordable way to eliminate threat," Hauserman says.
Need forever insurance policy subsides, however does not disappear: 35 to
55. Insurance policy still contributes in the financial "pre-retirement years," but
it's starting to acquire less important, Guffey claims. By the time individuals are
striking these years, particularly if they had a monetary strategy when they were
younger, they see their responsibilities reduce and their possessions grow. This
decreases the requirement permanently insurance coverage. On the obligation
side, home loan balances are starting to drop as the loans have been paid on for

several years. At the same time, university financial savings strategies and
retirement are most likely well heading at this point. Lots of people in this phase
in their lives, also, should have their term plans in position that they established
while they were younger.
That's not to say there's no need forever insurance coverage in this age bracket.
There are instances when consumers could add a second house, have a kid or
embrace children later in their careers. Some people in this stage in their lives
may additionally should consider providing economic security for grandchildren,
Guffey claims. These one-of-a-kind cases need defense.
Life insurance turns into another thing: 55 +. Once consumers obtain within
10 years of retirement, or are retired, life insurance is not needed for defense.
The largest monetary danger is not death, yet instead, the chances of requiring
constant medical focus, says Greg Dorriety of Optimum Possession
Administration and a Qualified Financial Organizer. By the time people enter their
50s and also 60s, their youngsters are functioning, homes are paid for and also
most costs drop. The exemption to that, nonetheless, is medical prices, which are
increasing in a lot of cases. It's at this issue that lots of customers might choose
to consider skipping life insurance, and also instead relocating the cash toward a
long-term care policy, to shield them from the prices of a prolonged duration of
assisted living, Dorriety says. Some insurance policy business are establishing
life insurance plans that change gradually right into long-term service plans. Yet
these policies are reasonably new and also typically aren't as "effective" as
merely acquiring a long-term care policy, he states.
At this phase of life, a few consumers in extremely special cases may take into
consideration whole life plans. These intricate life insurance contracts blend a
cost savings and also assets account with a conventional survivor benefit, or
payment to beneficiaries on the fatality of the owner of the plan, Guffey claims.
These entire life plans require customers to pay a yearly sum, part of which goes
to the life insurance plan, yet permit cash to accumulate in an associated
account that can be paid to recipients protected from tax obligation.
But also for the majority of people, entire life policies are too complex, costs
expensive and returns too reduced to make them the very best selection even
for consumers in their 50s, 60s or greater, Hauserman says. The premiums on
entire life plans have the tendency to be 10 times above those on term life plans.
Meanwhile, the returns on the money stored in the whole life plans tend to be
low, he says. Entire life plans can make good sense for folks that have actually
already contributed the maximum to their 401(k) strategies, have additional
money to save, are nervous financiers that often only purchase low-yielding
certificates of deposit and also required to die youthful, he states. "You have
numerous difficulties to cross of getting there," Hauserman says.
With the ideal preparation as well as understanding of exactly how life insurance
suits a strategy, it is just one of the simpler points in monetary preparation to
care for. Not having the ideal life insurance "is a relatively easy thing to deal
with," Hauserman claims.

How to Choose the Right Type of Life

Insurance
Choosing the right type of life insurance can be confusing, but its also an
important decision. Here are some guidelines that can help you narrow down your
best life insurance options.
You should consider term life insurance if:
You need life insurance for a specific period of time. Term life insurance
enables you to match the length of the term policy to the length of the need.
For example, if you have young children and want to ensure that there will
be funds to pay for their college education, you might buy 20-year term life
insurance. Or if you want the insurance to repay a debt that will be paid off
in a specified time period, buy a term policy for that period.
You need a large amount of life insurance, but have a limited budget. In
general, this type of insurance pays only if you die during the term of the
policy, so the rate per thousand of death benefit is lower than for permanent
forms of life insurance. If you are still alive at the end of the term, coverage
stops unless the policy is renewed or a new one bought. Unlike permanent
insurance, you will not typically build equity in the form of cash savings.
If you think your financial needs may change, you may also want to look into
convertible term policies. These allow you to convert to permanent insurance
without a medical examination in exchange for higher premiums.
Keep in mind that premiums are lowest when you are young and increase upon
renewal as you age. Some term insurance policies can be renewed when the policy
ends, but the premium will generally increase. Some policies require a medical
examination at renewal to qualify for the lowest rates.
You should consider permanent life insurance if:
You need life insurance for as long as you live. A permanent policy pays a
death benefit whether you die tomorrow or live to be over 100.
You want to accumulate a savings element that will grow on a tax-deferred
basis and could be a source of borrowed funds for a variety of purposes. The
savings element can be used to pay premiums to keep the life insurance in

force if you cant pay them otherwise, or it can be used for any other
purpose you choose. You can borrow these funds even if your credit is
shaky. The death benefit is collateral for the loan, and if you die before its
repaid, the insurance company collects what is due the company before
determining whats goes to your beneficiary.
Keep in mind that premiums for permanent policies are generally higher than for
term insurance. However, the premium in a permanent policy remains the same no
matter how old you are, while term can go up substantially every time you renew
it.
There are a number of different types of permanent insurance policies, such as
whole (ordinary) life, universal life, variable life, and variable/universal life. For
more details, see our articles on the specific types of policies.

How to Choose the Right Type of Life Insurance

Choosing the right type of life insurance can be confusing, but it's also an
important decision. Here are some guidelines that can help you narrow down
your best life insurance options.
You should consider term life insurance if:
You need life insurance for a specific period of time. Term life insurance enables
you to match the length of the term policy to the length of the need. For
example, if you have young children and want to ensure that there will be funds
to pay for their college education, you might buy 20-year term life insurance. Or
if you want the insurance to repay a debt that will be paid off in a specified time
period, buy a term policy for that period.
You need a large amount of life insurance, but have a limited budget. In general,
this type of insurance pays only if you die during the term of the policy, so the
rate per thousand of death benefit is lower than for permanent forms of life
insurance. If you are still alive at the end of the term, coverage stops unless the
policy is renewed or a new one bought. Unlike permanent insurance, you will not
typically build equity in the form of cash savings.
If you think your financial needs may change, you may also want to look into
"convertible" term policies. These allow you to convert to permanent insurance
without a medical examination in exchange for higher premiums.
Keep in mind that premiums are lowest when you are young and increase upon
renewal as you age. Some term insurance policies can be renewed when the
policy ends, but the premium will generally increase. Some policies require a
medical examination at renewal to qualify for the lowest rates.

You should consider permanent life insurance if:

You need life insurance for as long as you live. A permanent policy pays a death
benefit whether you die tomorrow or live to be over 100.
You want to accumulate a savings element that will grow on a tax-deferred basis
and could be a source of borrowed funds for a variety of purposes. The savings
element can be used to pay premiums to keep the life insurance in force if you
can't pay them otherwise, or it can be used for any other purpose you choose.
You can borrow these funds even if your credit is shaky. The death benefit is
collateral for the loan, and if you die before it's repaid, the insurance company
collects what is due the company before determining what's goes to your
beneficiary.
Keep in mind that premiums for permanent policies are generally higher than for
term insurance. However, the premium in a permanent policy remains the same
no matter how old you are, while term can go up substantially every time you
renew it.
There are a number of different types of permanent insurance policies, such as
whole (ordinary) life, universal life, variable life, and variable/universal life. For
more details, see our articles on the specific types of policies.

Health Insurance Premiums to

Fluctuate Under Obamacare

This year's cost for health insurance depends on where

you live and what providers can offer.

The average Obamacare recipient will pay less for health insurance in 2015, but prices vary by user, plan
and location, a new analysis finds.
By Kimberly LeonardNov. 11, 2014 | 5:06 p.m. EST+ More

Worried consumers have cited that they think their health care premium costs are on the rise, but
recent analyses show the price of insurance is going to vary widely primarily depending on
where people live, but also depending on medical providers, the number of insurance companies
and how many people ultimately choose to enroll.
[READ Obamacare Enrollment Estimates Reduced]
Saturday kicks off the second open enrollment season under the Affordable Care Act, a period
during which Americans can buy health insurance through federal or state websites, commonly
called exchanges or marketplaces. The websites give people the opportunity to compare plans at
different levels of care and allow them to qualify for tax subsidies on insurance that they could
not afford otherwise. The government places caps on how much of total income Americans

should spend on insurance, and then picks up the tab for the rest. Plans vary from bronze to
platinum, or from lower cost and fewer benefits to higher cost and more benefits.
Health officials have stressed that Americans should compare plans that are available this year. If
they do not they will be automatically re-enrolled in the same plan they purchased last year,
though by doing so they may miss out on an opportunity to pay even less in 2015. Some prices
will go up and others will go down; new insurance companies will be available to buy from, while
other companies are leaving the market completely.
But plans vary significantly across locations and type of plan, shows an analysis from the Kaiser
Family Foundation published Tuesday. On average, costs will decrease slightly for a nonsmoking
American who makes $30,000 a year and purchases the second-lowest cost silver plan. With a
tax credit for the plan, a consumer will pay 0.2 percent less this year, and without a tax credit will
pay 0.3 percent less.
For customers who bought the lowest-cost bronze plan, prices will increase 2.7 percent with a
tax credit, and 3.1 percent without one. John Holahan, a fellow at the Urban Institute, explains
that tax credits are determined as a percentage of income, so a person who is receiving one may
not see his or her costs increase much because the government would help cover the rest. The
Kaiser Family Foundation data reflected this, showing very little variation in cost among most
states after the credit was factored into the cost of the silver plan, which most people choose.
[READ Republicans to Begin Chipping Away at Obamacare]
"Overall it really does depend on where you live," says Cynthia Cox, senior policy analyst at the
Kaiser Family Foundation. "On average there is a slight decrease, and that's very unusual for
health insurance. It speaks to how competitive the market is."
The Affordable Care Act requires people to buy health insurance or pay a tax penalty. Some
Americans are covered by employee-sponsored plans, and others are covered by Medicaid, the
government's health insurance program for the poor and disabled. The online marketplaces are
designed to help people afford insurance when they do not fit into either category.
This year health officials expect to enroll at least 9.1 million people on individual state insurance
websites or on Healthcare.gov, the federal website that 34 states use. Customers currently pay
$82 per month on average and are given an average subsidy of $264 per month or $4,700 per
year which equates to about $36 billion in government spending. This year's enrollment season
will show both higher and lower prices for premiums.
"It is really variable," says Jim Whisler, national leader for Deloitte actuarial practice. "In some
markets if you stay in the same plan you'll see increases as high as 30 percent, and in others
you could see prices go down."
The Kaiser Family Foundation data show prices for the silver plans listed before a tax credit will
go down 10 percent in Phoenix; 15 percent in Denver; and 11 percent in Philadelphia, in
Albuquerque and in Providence, Rhode Island.
In Minnesota, the insurance company that had enrolled the highest number of people largely
due to its low rates will not be participating in the state's exchange this year. The result is that
in Minneapolis premium costs will rise by nearly 19 percent for customers who hold thesilver plan

listed with or without subsidies. Those with the least expensive bronze plans will spend 21
percent more on average this year, with or without a subsidy.
"Minnesota has gotten a lot of attention because of this big jump, but it has one of the lowest
rates for health insurance in the country, so it's all relative," Cox says.
In Alaska, rates for people with the silver plan analyzed are projected to rise 28 percent from last
year before a tax credit. Insurers say they have unique market in which they need to charge
higher prices, Cox says, though she added that data were not available to analyze this claim.
[READ The Supreme Court to Tackle Subsidy Portion of Obamacare]
A similar report from the Urban Institute earlier this month showed that the largest increases in
premium prices were likely to occur in rural areas.
"In rural areas there are not as many insurers and it's harder to negotiate with hospitals and
doctors because there aren't as many; you need them all," Holahan says. "Everyone is a musthave provider."
Prices not only depend on ensuring that there are multiple insurance companies to choose from,
but multiple providers as well, he says. Insurance companies are able to negotiate the best rates
by choosing certain health care providers, he explains, creating a network of care that allows for
the best bargains.

Prices also are contingent on customers. This enrollment period, health insurance companies
hope to recruit more healthy young people to the marketplaces. Their participation is key to
balancing the cost of a sicker population, which was more likely to sign up for health insurance
early on because under Obamacare companies are not allowed to turn away people with preexisting conditions.
"The first people to join are sicker on average, so to get the premium down then it's importation
to bring on healthy people," Whisler says. If companies cannot gain more customers during this
enrollment period, then insurance could go up significantly next year, he says.
Of all Obamacare enrollees, 28 percent were young adults meaning ages 18 to 34. Still, among
those who did not sign up for coverage two-thirds said they couldn't afford it, though more than
half of the total never visited an online marketplace to find out, shows a Deloitte survey from
April.
"I don't think people are well-informed," Whisler says about potential customers in the market,
"but also it's really complicated; it's hard to understand."
[MORE: How to Approach the Obamacare Marketplace: 2014 Edition]
The intricacy of the program and its costs are only part of the concern. Last year customers
complained of glitches, long load times and errors to personal information they submitted to the
site. Though the agency has reported that improvements have been made to the site, they also
largely caution that there will be imperfections.

One way customers can offset costs this year is by choosing a less expensive health plan.
" There's a very good chance that the plans consumers signed up for before are no longer the
lowest-cost plans," Cox says. " Premium options are going to be favorable for a lot of people, but
you'll need to shop around to take advantage of that."
There are several factors to consider going into selecting a health plan, however. Cox says that
people have expressed in Kaiser Family Foundation surveys that they feel they have less choice
of doctors. "You may not be able to sign up for a doctor that you want to see," she says, adding
that consumers also should check the prices of their medications and see whether deductibles
increase.
Consumers are more likely to use health care services when they are covered by insurance, but
the costs of premiums aren't the only ones that can be expensive.

Copays for doctor's appointments, hospital care or medications might make care for some
unaffordable, and could change from year to year. Nearly half of all respondents in the Deloitte
Center for Health Solutions 2013 Survey reported increased out-of-pocket health care spending
in the previous year up slightly from and 42 percent in 2011. Fifteen percent of Americans will
ask about price of care before they agree to treatment, and one-third will use home remedies
or over-the-counter medicines instead of going to see a health care professional, the report
shows.
"The root cause of high costs are not due to the insurance program, but the care itself," Whisler
says

Health Insurance Premiums to Fluctuate Under Obamacare

This year's cost for health insurance depends on where you live and what
providers can offer.
Worried consumers have cited that they think their health care premium costs
are on the rise, but recent analyses show the price of insurance is going to vary
widely-- primarily depending on where people live, but also depending on
medical providers, the number of insurance companies and how many people
ultimately choose to enroll.
Saturday kicks off the second open enrollment season under the Affordable Care
Act, a period during which Americans can buy health insurance through federal
or state websites, commonly called exchanges or marketplaces. The websites
give people the opportunity to compare plans at different levels of care and allow
them to qualify for tax subsidies on insurance that they could not afford
otherwise. The government places caps on how much of total income Americans

should spend on insurance, and then picks up the tab for the rest. Plans vary
from bronze to platinum, or from lower cost and fewer benefits to higher cost and
more benefits.
Health officials have stressed that Americans should compare plans that are
available this year. If they do not they will be automatically re-enrolled in the
same plan they purchased last year, though by doing so they may miss out on an
opportunity to pay even less in 2015. Some prices will go up and others will go
down; new insurance companies will be available to buy from, while other
companies are leaving the market completely.
But plans vary significantly across locations and type of plan, shows an analysis
from the Kaiser Family Foundation published Tuesday. On average, costs will
decrease slightly for a nonsmoking American who makes $30,000 a year and
purchases the second-lowest cost silver plan. With a tax credit for the plan, a
consumer will pay 0.2 percent less this year, and without a tax credit will pay 0.3
percent less.
For customers who bought the lowest-cost bronze plan, prices will increase 2.7
percent with a tax credit, and 3.1 percent without one. John Holahan, a fellow at
the Urban Institute, explains that tax credits are determined as a percentage of
income, so a person who is receiving one may not see his or her costs increase
much because the government would help cover the rest. The Kaiser Family
Foundation data reflected this, showing very little variation in cost among most
states after the credit was factored into the cost of the silver plan, which most
people choose.
"Overall it really does depend on where you live," says Cynthia Cox, senior policy
analyst at the Kaiser Family Foundation. "On average there is a slight decrease,
and that's very unusual for health insurance. It speaks to how competitive the
market is.".
The Affordable Care Act requires people to buy health insurance or pay a tax
penalty. Some Americans are covered by employee-sponsored plans, and others
are covered by Medicaid, the government's health insurance program for the
poor and disabled. The online marketplaces are designed to help people afford
insurance when they do not fit into either category.
This year health officials expect to enroll at least 9.1 million people on individual
state insurance websites or on Healthcare.gov, the federal website that 34 states
use. Customers currently pay $82 per month on average and are given an
average subsidy of $264 per month-- or $4,700 per year-- which equates to
about $36 billion in government spending. This year's enrollment season will
show both higher and lower prices for premiums.
"It is really variable," says Jim Whisler, national leader for Deloitte actuarial
practice. "In some markets if you stay in the same plan you'll see increases as
high as 30 percent, and in others you could see prices go down.".

The Kaiser Family Foundation data show prices for the silver plans listed before a
tax credit will go down 10 percent in Phoenix; 15 percent in Denver; and 11
percent in Philadelphia, in Albuquerque and in Providence, Rhode Island.
In Minnesota, the insurance company that had enrolled the highest number of
people-- largely due to its low rates-- will not be participating in the state's
exchange this year. The result is that in Minneapolis premium costs will rise by
nearly 19 percent for customers who hold thesilver plan listed with or without
subsidies. Those with the least expensive bronze plans will spend 21 percent
more on average this year, with or without a subsidy.
"Minnesota has gotten a lot of attention because of this big jump, but it has one
of the lowest rates for health insurance in the country, so it's all relative," Cox
says.
In Alaska, rates for people with the silver plan analyzed are projected to rise 28
percent from last year before a tax credit. Insurers say they have unique market
in which they need to charge higher prices, Cox says, though she added that
data were not available to analyze this claim.
READ The Supreme Court to Tackle Subsidy Portion of Obamacare A similar
report from the Urban Institute earlier this month showed that the largest
increases in premium prices were likely to occur in rural areas.
"In rural areas there are not as many insurers and it's harder to negotiate with
hospitals and doctors because there aren't as many; you need them all," Holahan
says. "Everyone is a must-have provider.".
Prices not only depend on ensuring that there are multiple insurance companies
to choose from, but multiple providers as well, he says. Insurance companies are
able to negotiate the best rates by choosing certain health care providers, he
explains, creating a network of care that allows for the best bargains.

Prices also are contingent on customers. This enrollment period, health insurance
companies hope to recruit more healthy young people to the marketplaces. Their
participation is key to balancing the cost of a sicker population, which was more
likely to sign up for health insurance early on because under Obamacare
companies are not allowed to turn away people with pre-existing conditions.
"The first people to join are sicker on average, so to get the premium down then
it's importation to bring on healthy people," Whisler says. If companies can not
gain more customers during this enrollment period, then insurance could go up
significantly next year, he says.
Of all Obamacare enrollees, 28 percent were young adults-- meaning ages 18 to
34. Still, among those who did not sign up for coverage two-thirds said they
couldn't afford it, though more than half of the total never visited an online
marketplace to find out, shows a Deloitte survey from April.

"I don't think people are well-informed," Whisler says about potential customers
in the market, "but also it's really complicated; it's hard to understand.".
The intricacy of the program and its costs are only part of the concern. Last year
customers complained of glitches, long load times and errors to personal
information they submitted to the site. Though the agency has reported that
improvements have been made to the site, they also largely caution that there
will be imperfections.

One way customers can offset costs this year is by choosing a less expensive
health plan.
" There's a very good chance that the plans consumers signed up for before are
no longer the lowest-cost plans," Cox says." Premium options are going to be
favorable for a lot of people, but you'll need to shop around to take advantage of
that.".
There are several factors to consider going into selecting a health plan, however.
Cox says that people have expressed in Kaiser Family Foundation surveys that
they feel they have less choice of doctors. "You may not be able to sign up for a
doctor that you want to see," she says, adding that consumers also should check
the prices of their medications and see whether deductibles increase.
Consumers are more likely to use health care services when they are covered by
insurance, but the costs of premiums aren't the only ones that can be expensive.

Copays for doctor's appointments, hospital care or medications might make care
for some unaffordable, and could change from year to year. Nearly half of all
respondents in the Deloitte Center for Health Solutions 2013 Survey reported
increased out-of-pocket health care spending in the previous year-- up slightly
from and 42 percent in 2011. Fifteen percent of Americans will ask about price of
care before they agree to treatment, and one-third will use home remedies or
over-the-counter medicines instead of going to see a health care professional,
the report shows.
"The root cause of high costs are not due to the insurance program, but the care
itself," Whisler says.

AEG sought life insurance on 'basket case'

Michael Jackson
May 21, 2013|By Corina Knoll

o
o
o
o
o
o

In the days before Michael Jacksons death, AEG executives were still attempting to
secure a life insurance policy on the performer who had been acting erratically at
rehearsals for his comeback tour, according to testimony and emails revealed in
court Tuesday.
On June 19, 2009, a production manager for This Is It sent an email to AEG
executives Randy Phillips and Paul Gongaware that read, MJ was sent home without
stepping foot on stage. He was a basket case and [director] Kenny [Ortega] was
concerned he would embarrass himself on stage or worse yet -- get hurt."
The email, whose subject line read Trouble at the Front, was forwarded by Phillips
to then-AEG President and CEO Tim Leiweke with the note, We have a real problem
here."
FULL COVERAGE: Wrongful-death lawsuit trial
The emails were shown Tuesday to Shawn Trell, senior vice president and general
counsel for AEG, who returned to the witness stand during the trial of the wrongfuldeath lawsuit brought by members of Jackson's family.

Trell testified earlier that Ortega did not have a signed contract with AEG, which was
funding and promoting the concert series to be held at the 02 Arena in London.
Kenny Ortega is different, Trell explained Monday, adding that the director was
paid based on a series of emails.
But the attorney recanted that statement on Tuesday and said that Ortega did have
a written contract with AEG. Trell said his memory had been refreshed after looking
at court documents the night before.

The contract issue is key in the civil trial that pits Jacksons mother and three
children against entertainment company AEG, which stands accused of hiring and
controlling Dr. Conrad Murray.
Murray is serving jail time for involuntary manslaughter after administering the fatal
dose of the anesthetic propofol to Jackson, who died on June 25, 2009. AEG
contends that the doctor was brought on the tour at Jacksons request and that the
doctors salary was part of the multimillion-dollar advance to the singer. Although
Murray had signed a contract with the company, neither Jackson nor anyone from
AEG had added their signatures.
Trell testified that AEG does not do background checks on independent contractors.
He said he was unaware of issues with Jackson at rehearsals.
I knew of no problems with Michael Jackson at all, Trell testified.
In January 2009, insurance broker Bob Taylor wrote an email to Trell that suggested
Jackson be given a full medical exam with blood and urine tests and that Jacksons
medical history be reviewed.
The two continued to exchange emails, and on June 23 Trell asked for an update on
the availability of life insurance.
Around that time, according to testimony from previous witnesses, Jackson had
appeared frail and gaunt at rehearsals held at the Staples Center.
And in the week leading up to Jacksons death, those involved with the tour appeared
to be contemplating damage control.
Phillips wrote an email to Gongaware on June 20, 2009 at 1:52 a.m. that said he and
Leiweke were going to visit Jackson. I am not sure what the problem is. Chemical or
physiological?
Gongaware replied: Take the doctor with you.
On that same day, Ortega wrote an email to Phillips about the singer: There are
strong signs of paranoia, anxiety and obsessive-like behavior. I think the very best
thing we can do is get a top psychiatrist in to evaluate him ASAP.

John Branca, Jacksons attorney, also chimed in, sending an email marked
confidential to a handful of people, including Phillips, Gongaware and Leiweke.
I have the right therapist/spiritual advisor/substance abuse counselor who could
help (recently helped Mike Tyson get sober and paroled) do we know whether there is
a substance issue involved (perhaps better discussed on the phone).

AEG sought life insurance on 'basket case' Michael Jackson

In the days prior to Michael Jackson's death, AEG executives were still trying to
secure a life insurance policy on the performer who had been acting
unpredictably at wedding rehearsals for his resurgence tour, according to
testimony as well as e-mails exposed in court Tuesday.
On June 19, 2009, a manufacturing supervisor for "This Is It" sent an email to
AEG execs Randy Phillips and Paul Gongaware that reviewed, "MJ was sent house
without tipping foot on phase. He was a basket case and [supervisor] Kenny
[Ortega] was concerned he would certainly embarrass himself on phase or even
worse yet-- get injured.".
The email, whose subject line checked out "Problem at the Front," was sent by
Phillips to then-AEG President and also Chief Executive Officer Tim Leiweke with
the note, "We have a real issue right here.".
COMPLETE PROTECTIONS: Wrongful-death claim trial.
The e-mails were shown Tuesday to Shawn Trell, senior vice president and also
basic guidance for AEG, who returned to the witness box throughout the trial of
the wrongful-death suit brought by participants of Jackson's family.

Trell testified previously that Ortega did not have an executed contract with AEG,
which was financing as well as promoting the concert collection to be held at the
02 Field in Greater london. "Kenny Ortega is various," Trell explained Monday,
adding that the supervisor was paid based on a collection of emails.
However the attorney recanted that declaration on Tuesday and stated that
Ortega did have actually a created contract with AEG. Trell stated his memory
had been "refreshed" after checking out court plans the night just before.
The written agreement problem is key in the civil test that matches Jackson's
mom and also three children against home entertainment company AEG, which
stands charged of employing and handling Dr. Conrad Murray.
Murray is offering prison time for uncontrolled manslaughter after administering
the fatal dosage of the anesthetic propofol to Jackson, that passed away on June
25, 2009. AEG contends that the dentist was induced the trip at Jackson's
demand and that the physician's salary belonged to the multimillion-dollar
advance to the vocalist. Although Murray had authorized a contract with the
company, neither Jackson neither any individual from AEG had included their
signatures.

Trell affirmed that AEG does refrain background checks on independent

contractors. He said he was unaware of problems with Jackson at wedding
rehearsals.
"I recognized of no worry with Michael Jackson whatsoever," Trell testified.
In January 2009, insurance policy broker Bob Taylor wrote an e-mail to Trell that
recommended Jackson be given a full medical examination with blood as well as
urine examinations which Jackson's medical history be assessed.
The two continuouslied exchange e-mails, as well as on June 23 Trell requested
an update on the availability of life insurance.
Around then, according to testament from previous witnesses, Jackson had
actually shown up sickly and also gaunt at wedding rehearsals held at the
Staples Center.
And also in the week leading up to Jackson's death, those involved with the
excursion seemed contemplating troubleshooting.
Phillips composed an email to Gongaware on June 20, 2009 at 1:52 a.m. that said
he and Leiweke were going to go to Jackson. "I am not sure what the problem is.
Chemical or physical?".
Gongaware responded: "Take the dentist with you.".
On that particular very same day, Ortega composed an email to Phillips about
the singer: "There are strong indicators of fear, stress and anxiety and obsessivelike actions. I think the best thing we can do is get a top psychoanalyst in to
review him ASAP.".

John Branca, Jackson's lawyer, also chipped in, sending an email noted "private"
to a handful of individuals, consisting of Phillips, Gongaware and also Leiweke.
"I have the best therapist/spiritual advisor/substance misuse therapist which can
aid (lately helped Mike Tyson obtain sober and also paroled) do we know whether
there is an element concern included (probably better talked about on the
phone).".

Do You Have the Right Car

Insurance?

Car insurance is inherently tricky to navigate because you don't find out just how well it works (or
doesn't) until you have an accident. And if you're lucky, that doesn't happen too often. So how do
you know if you have the right kind of car insurance for your budget and lifestyle?
U.S. News interviewed a handful of car insurance experts to find out what you should do before
making a final decision on your policy in order to get a good deal and decrease the chance of
being surprised by unexpected costs after an incident. Here's their best advice:
When choosing a policy, start by asking friends for recommendations. "It always makes sense to
first ask people who you respect who they have auto insurance with, and if they were happy
when they had a claim," says Jeanne Salvatore, spokeswoman for the Insurance Information
Institute, an industry group.
[See: 10 Unexpected Costs of Driving.]
Strangers can also offer useful advice. People often take their complaints about car insurance to
social media, blogs and other websites. Search for posts on Twitter using the hashtag for the
company you are considering. The National Association of Insurance Commissioners and the
Center for Insurance Policy and Research makes it easy to find formal complaints that have been
lodged against companies as well.
State buyer's guides are another resource. States release detailed guides for purchasing auto
insurance that explain the ins and out of property damage as well as collision and
comprehensive coverage. "Get the buyer's guide don't just go to some agent," recommends
Bob Hunter, director of insurance at the Consumer Federation of America. Those buyer's guides
also outline the minimum required coverage and what factors influence your insurance rates,
from driving records to how you use the vehicle.
When comparing policy prices, be sure to compare similar policies, cautions Phil Reed, senior
consumer advice editor at Edmunds.com. Auto policies vary by length of time, level of service
and an array of add-ons, he says. Instead of just searching the Internet to compare quotes, Reed
recommends getting on the phone with companies and asking questions, too. Certain car safety
features, such as alarm systems or anti-lock breaks, can help lower your rate.
[Read: Blue-Collar Workers Pay More for Car Insurance.]
At the same time, there's no need to obsess about constantly chasing a better deal. Jeff Blyskal,
senior writer at Consumer Reports, says when the magazine asked readers to try to get a better
deal with a competing insurance provider, only 12 percent of respondents were able to do so.
That's despite the slew of auto insurance advertisements that would have you think a better deal
is always just around the corner.
Once you've settled on an insurance provider, you'll have the chance to consider various add-ons
to your policy. In general, the more you pay upfront, the greater the coverage you'll have. For
example, you can opt for a higher deductible in order to minimize your rates probably a good

move for anyone who considers themselves a careful driver and can afford the higher deductible
in the event of an accident.
You might also want to consider rental coverage. Auto insurance policies often allow you to add
on coverage for renting a vehicle while your car is getting fixed after an accident, and if you only
have one car, that kind of coverage can pay off. "Every customer who didn't have rental coverage
wished they had it," says Richard Arca, senior manager of pricing at Edmunds.com and a former
insurance adjuster. It typically adds about $20 for six months to a policy, he says.
On new and leased cars, GAP insurance can also make sense. You've might have heard that
when you buy a new car, it loses value as soon as you drive it out of the lot. Leased vehicles also
often carry a lower fair market value than what you owe on the vehicle. That means in either of
those cases, if you total the car, the insurance company will only reimburse you for the car's fair
market value and you could be out a lot of cash. GAP coverage, which stands for "guaranteed
auto protection," safeguards people from that problem. "It's highly recommended for people who
lease vehicles," Arca says.

Do You Have the Right Automobile Insurance?

Auto insurance policy is inherently difficult to navigate because you don't learn
simply how well it functions (or doesn't) till you have an accident. As well as if
you're blessed, that doesn't happen too often. So how do you recognize if you
have the ideal type of auto insurance coverage for your budget plan and way of
life?
UNITED STATE Information talked to a handful of automobile insurance coverage
experts to find out exactly what you should do prior to making a final decision on
your plan so as to get a bargain and lower the opportunity of being startled by
unforeseen costs after a case. Below's their best insight:
When selecting a plan, beginning by asking good friends for recommendations.
"It consistently makes sense to very first ask individuals who you respect which
they have auto insurance with, and if they were happy when they had a claim,"
states Jeanne Salvatore, spokeswoman for the Insurance policy Info Institute, an
industry team.
[See: 10 Unanticipated Prices of Driving.] Complete strangers could additionally
offer useful recommendations. Individuals commonly take their complaints about
auto insurance policy to social media, blogs and also other sites. Search for
articles on Twitter making use of the hashtag for the business you are thinking
about. The National Association of Insurance policy Commissioners and also the

Facility for Insurance Policy and Study makes it very easy to find formal
complaints that have actually been lodged versus companies as well.
State purchaser's overviews are another person source. States launch in-depth
overviews for acquiring auto insurance policy that discuss the ins and out of
apartment damage in addition to collision as well as comprehensive protection.
"Acquire the purchaser's guide-- do not merely visit some broker," advises Bob
Hunter, supervisor of insurance policy at the Consumer Alliance of America.
Those customer's quick guides additionally lay out the minimum needed
coverage and also exactly what factors affect your insurance rates, from driving
records to how you use the car.
When contrasting plan prices, make certain to contrast comparable plans,
cautions Phil Reed, elderly customer advice publisher at Edmunds.com. Auto
plans differ by length of time, degree of service and also a selection of add-ons,
he says. As opposed to simply browsing the Net to compare quotes, Reed
suggests getting on the phone with business as well as asking concerns, also.
Specific car safety and security functions, such as alarm or anti-lock breaks,
could assist decrease your price.
[Read: Blue-Collar Workers Pay Much more for Auto Insurance coverage.] At the
same time, there's no have to consume about frequently chasing after a far
better offer. Jeff Blyskal, senior author at Customer News, states when the
magazine asked visitors to attempt to obtain a better deal with a competing
insurance policy service provider, just 12 percent of respondents had the ability
to do so. That's regardless of the variety of auto insurance advertising
campaigns that would certainly have you assume a far better bargain is
constantly just around the bend.
Once you have actually chosen an insurance supplier, you'll have the opportunity
to consider various add-ons to your plan. As a whole, the much more you pay
upfront, the greater the coverage you'll have. For instance, you could select a
higher insurance deductible in order to minimize your rates-- probably a great
move for anyone which considers themselves a careful driver as well as could
afford the higher insurance deductible in the event of a crash.
You could additionally intend to consider rental coverage. Automobile insurance
plan typically enable you to add protection for renting out an automobile while
your car is getting taken care of after a mishap, and also if you simply have one
automobile, that type of protection could repay. "Every customer that really did
not have rental insurance coverage wished they had it," says Richard Arca,
elderly manager of rates at Edmunds.com and a former insurance policy insurer.
It typically includes about $20 for six months to a policy, he says.
On brand-new and leased cars, SPACE insurance policy could also make sense.
You have actually might have heard that when you acquire a new car, it declines
when you drive it out of the lot. Usinged vehicles likewise often carry a much
lower fair market price compared to what you owe on the automobile. That
indicates in either of those instances, if you amount to the car, the insurance

business will simply reimburse you for the automobile's fair market price-- and
also you could be out a lot of cash. GAP protection, which represents "surefire
automobile protection," safeguards individuals from that trouble. "It's extremely
suggested for folks which using cars," Arca says.