Health Insurance - Your Back-Up Plan During Distressing Times

Hunting for an affordable health insurance as soon as possible is one of the first things you should do. It is more important than you think. Having a health insurance pays when you are sick and you know you have something as a back up. Without a good health coverage plan the bills will pile up and make you even sicker!

Not having a health insurance can, in the worst of cases, be a cause of death, as the treatments you require for your illness may be too expensive for you to cover. And a life threatening crisis – if late is too late.

Let me tell you a real life incident of a friend of mine, which made me realize the importance of having a health coverage plan. I am sure it will help those people avoid the mistake he did. My friend who was in his twenties never believed in the concept of getting an affordable health plan. He thought he was too young to be besieged by any sort of health problem – till he was diagnosed with a rare cancer.

Now illnesses such as cancer require expensive treatments. If he was covered under an affordable health insurance, it would have helped him undergo sufficient treatment. But now without a proper health plan, this was impossible.

If only he had realized this earlier. His loved ones did provide financial assistance and even raised money from fund raising, but even that didn't help him. The terrible part is that that when you become sick, you come under what is called a prior condition, which means that insurance companies do not cover you because you are already sick. I hope this is an eye-opener for all of us.

However, a piece of advice for those looking out for a health coverage plan. Be thorough in your search for affordable health insurance and don't give up until you find the right one. The most affordable health insurance programs are extended by employers. This is because they get discounted rates for buying their health care in bulk.

For those who are self-employed, getting affordable health insurance can be difficult. You will have to shell out a lot of money for the coverage that you can find. An alternative to escape this is to club together a few self-employed people and purchase a group rate plan in the same way as most businesses do. But this can prove to be a tedious task. Whatever approach you take make sure that you are covered under some affordable insurance plan so that you are prepared for any worst case scenarios.

Summary:

Hunting for affordable health insurance as soon as possible is one of the first things you should do. It is more important than you think. Having an insurance coverage pays when you are sick and you know you have something as a back up. Without a good health coverage plan the bills will pile up and make you even sicker!

About the Author:
Brooke Hayles Check Out More Helpful Information About Health Insurance For FREE! Visit Health Insurance Vault now!
Posted: 22-09-2006
Article Source: ArticlesBase.com

Term Life Insurance: The differences between Term and Whole Life policies

Life Insurance quite generally is a policy whereby you pay a company a premium so that if you die while covered your descendents receive financial benefits. Within the larger Life Insurance window there exist two broad categories of policies, Term and Whole life (Whole Life is also known by the equivalent term Universal Life Insurance). Term Life is exactly what its name implies, valid only for a certain period of time, whereas Whole life lasts the duration of one's life.

Price Differences

Because Term Life has a structured beginning and end, typically from 1 to 30 years, it is normally quite a bit cheaper than Whole Life. That is because under Whole Life it is assured that the insurer will eventually pay out (as we all eventually die). Under Term Life, however, there is a very good chance that you will live through the period of the policy and thus the insurance company can simply take your premiums without ever having to pay out anything.

Benefits Differences

Another important distinction between Term and Whole Life is the fact that at the end of the Term Policy, the policyholder is left with nothing but his own health. On the other hand, with a Whole Life Policy the insurer often takes a portion of the premium and places it into a savings account for the policyholder. In case of emergency later in life, the Whole Life Policy Holder can access that money to meet some needs while still living. As you can imagine, the Insurance Company raises the price they charge for access to all of this.

Deciding Between the Two

So, how does one decide between Term and Whole Life Insurance? To best answer that question it is important to ask why you need the insurance in the first place. Is it because you have young children and a spouse who does not have the earning potential to get your children through college? Or is it because you work in a dangerous industry and will regularly face the prospect of death over the next few years? These are both excellent candidates for Term Life Insurance. In the first case, it is important that the provider ensure enough financial support for approximately 10 years and then the need drops off, while the second example may require a shorter 3 - 5 year Term Life Policy.

On the other hand, let's imagine that you have a mentally handicapped person you will support indefinitely, or a spouse that has never worked at all. These may be better candidates for Whole Life as the financial need they feel responsible for extends not only to some definite period in the future, but as long as the other person is alive. Under these circumstances, paying the premium for Whole Life might be worthwhile.

Term and Whole Life Insurance fill an important void in many lives by providing some assurance that in case of an accident, loved ones will not be left stranded. It is important to remember, however, that the policies are not panaceas. The savings rate on Whole Life Policies is usually dismal compared to open market rates, and with Term, you are making payments on a product you may never use. Ultimately, the decision to purchase either of these products should involve weighing your personal risk and health, your current and expected financial situation, and alternative uses for funds you have earmarked for a policy.

Dan Johnson enjoys writing about term life insurance. Visit http://www.tlilowdown.com/ to learn more.

About the Author:
Dan Johnson
http://www.homeequityloanlowdown.com
Published 10/27/2005
Article Source: http://www.EzinePlug.com

Car Insurance Rates

Many car owners avoid taking more auto insurance than the minimum level required by the state simply because of the exorbitant car insurance rates that they have to pay. Car insurance rates are made up of a base rate, after which an addition or reduction takes place, determined by a variety of reasons including those that are beyond the owners’ control.

Generally, an auto insurance company looks at the following aspects to decide on a suitable car insurance rate for each car owner:

Age: According to the US Department of Transportation, the probability of young drivers being involved in car accidents is four times higher than that of the elderly. Insurance companies take the view that young driver are more likely to speed, drink and drive, and not wear their seat belts. Families who have young drivers usually pay higher car insurance rates due to this additional risk. Marital status: Insurance companies perceive marriage as a reliable sign of maturity and responsibility, causing car insurance rates to be lower.

Gender: This is another uncontrollable factor affecting car insurance rates. Although bordering on sex discrimination, state laws allow insurance companies to raise car insurance rates for men drivers. Based on car accident statistics, young men below the age of 30 are involved in a great number of accidents compared to women in the same age group.

Location / Neighborhood: The area in which owners live plays an important role. Places with higher probability of car thefts incur higher car insurance rates. Likewise for certain states which have high density traffic, such as New Jersey and New York.

The Car: The more expensive the car is, the more its owner will have to fork out in both collision and comprehensive insurance costs. Collision coverage pays for repair costs, and cars with expensive spare parts increase cost. In addition, more expensive cars are more likely to be stolen.

Amount of Driving: Driving more miles than the annual average increases the car’s exposure to damaging elements and risks of accidents or theft. As exposure increases, so does risk, leading to higher car insurance rates.

Driving and Claims History: Car insurance rates increase with the number of accidents and serious traffic violations a car owner has been involved in before. Besides this, an owner who regularly makes claims to insurance companies tends to have greater car insurance rates.

Credit History: Credit scores measure the types of credits taken, outstanding debt and reliability of past payments, among other things. If owners display stable credit scores over a long term and are able to keep their outstanding credit balances low, car insurance rates can be reduced as well.

It is important for car owners to shop around for the best car insurance rates with all the above factors in mind. Although owners cannot help the uncontrollable demographic factors like age and gender, they can still reduce car insurance rates by working on the controllable aspects like the type of car driven and credit history.

About the Author:
Tristan Andrews is a writer for http://www.california-car-insurance-guide.com/
Article Source: Article Warehouse