85
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).

Insurance Article

Embed Size (px)

DESCRIPTION

tekim

Citation preview

Page 1: Insurance Article

Inside the Insurance Industry's Secret Database About You

Rich SmithJan 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

Page 2: Insurance Article

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.

Page 3: Insurance Article

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.

Page 4: Insurance Article

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.

Page 5: Insurance Article

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.

Page 6: Insurance Article

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.

Page 7: Insurance Article

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.

Page 8: Insurance Article

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

Page 9: Insurance Article

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 self-seeking 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.

Page 10: Insurance Article

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.

Page 11: Insurance Article

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-net-worth individuals and companies.

You Might Get Some Price cuts.

Page 12: Insurance Article

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 PremiumsWhole 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 ValueBecause of the way a whole life policy is structured, it has a cash value. If you choose to end the

Page 13: Insurance Article

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 BenefitsContributions 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 CoverageA 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 BenefitsWhole 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

Page 14: Insurance Article

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

Page 15: Insurance Article

Advertisement

 

Recommended by

Is travel insurance worth the cost, and what kind of

coverage do I need?

Question submitted by Michael Gartenlaub, Long Island, N.Y.

Trip Doctor’s 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, California–based 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.)

Page 16: Insurance Article

Travel insurance is also essential if you have invested 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 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, you’re 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 doesn’t

cover you outside the U.S. or your home state—and/or medical

evacuation for a full year, handy if you’re 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. Others—

including Travel Guard, Travelex Insurance Services, and HTH

Worldwide—sell annual medical policies.

Package Policies

Many tour operators and travel companies offer insurance; if you

buy through them, be sure you’re 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

Page 17: Insurance Article

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

[email protected], 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

Page 18: Insurance Article

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 [email protected], 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

Page 19: Insurance Article

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. It’s 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 it’s a bad deal. I rarely pay for hotel rooms, tours or rental cars in advance. I don’t pack designer clothing in my checked luggage. I’m 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 that’s called “adverse selection” — but it’s adverse only for the insurance companies. For consumers, it’s 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 friend’s apartment and buy discount theater tickets every night. It’s 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.)

Page 20: Insurance Article

Generally, travel insurance is sold in packages, combining various categories of coverage. Go through them all, determining what you need and what you don’t, either because you’re not at risk or you’re already covered. If a package doesn’t seem worth it, more customized policies (which you can find through insuremytrip.com, among other sites) offer certain à 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 doesn’t 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 I’m “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 couldn’t 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 wouldn’t 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, I’m out something like $30,000. So it comes

Page 21: Insurance Article

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 didn’t 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). It’s worth it to determine the value of what’s 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, 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 whole year, not just when you’re 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 you’re honest when you apply — and if you already have coverage, be sure it covers the countries you’re 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 didn’t make sense for my

Page 22: Insurance Article

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, there’s one more variable: if you’re 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 won’t 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 e-mail in their exchange until after his deadline. It is not the case that Freelancers Insurance “wouldn’t 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

Page 23: Insurance Article

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 already-reserved 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 à 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

Page 24: Insurance Article

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?

Page 25: Insurance Article

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 InsuranceBy Nomadic Matt | Published January 22nd, 2013

Page 26: Insurance Article
Page 27: Insurance Article

While a lot of people think “I’m healthy, I don’t need travel insurance. I won’t 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, you’re 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 wasn’t 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 it’s been since I last discussed it, I want to start the year by discussing it again. I’ve 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 don’t 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 friend’s 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 wasn’t 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, it’s 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. It’s the kind of thing you will be very thankful for when you need it but hope you never do. After all, you don’t want to end up like my friend who didn’t 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 planThere 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, you’ll find that plans aren’t 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 I’m 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

Page 28: Insurance Article

limit, break a leg, and reach that limit before they are done taking care of you. Don’t 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 it’s 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 don’t 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.

Don’t get a policy that doesn’t 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 don’t 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 isn’t covered is just as important as what isKnow 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 won’t 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 won’t 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 wouldn’t partake in what caused your accident, you won’t be covered.

Moreover, you won’t 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 won’t be covered. If you have diabetes and need to buy more insulin, you won’t be covered. If you want to go see a doctor for a general check-up, you aren’t covered either.

Page 29: Insurance Article

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 can’t 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 claimIf 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 don’t 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 haven’t 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. It’s 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. I’ve 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 there’s 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

Page 30: Insurance Article

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 mind-numbing 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

Page 31: Insurance Article

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

Page 32: Insurance Article

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?

Page 33: Insurance Article

When considering an insurance plan, it’s good to know what it does and doesn’t 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 traveler’s 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 you’re

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).

Page 34: Insurance Article

For some travelers, insurance is a good deal; for others, it’s not. What are the

chances you’ll 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 BasicsThe 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, you’ll 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; they’ll 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 don’t 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 don’t 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 isn’t licensed in your state, you don’t have a case.

Note that some travel insurance, especially trip-cancellation coverage, is

reimbursement-only: You’ll pay out-of-pocket for your expenses, then submit

the paperwork to your insurer to recoup your money. With medical coverage,

Page 35: Insurance Article

you may be able to arrange to have expensive hospital or doctor bills paid

directly. Either way, if you have a problem, it’s 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 CoverageFor each type of insurance that follows, I’ve 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 what’s 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. It’s

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 you’re

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, it’s 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 can’t perform as

promised;

A family member at home gets sick (check the fine print to see how a family

member’s 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

Page 36: Insurance Article

losing all the money you paid for the trip. Or, if you’re on a tour and have an

accident on your first day, you’ll be reimbursed for the portion of the tour you

weren’t able to use.

This type of insurance can be used whether you’re 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 don’t go on your

trip at all. Trip interruption is when you begin a journey but have to cut it

short; in this case, you’ll be reimbursed only for the portion of the trip that

you didn’t complete. If you’re taking a tour, it may already come with some

cancellation insurance — ask.

Some insurers won’t 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.

It’s 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 isn’t 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 doesn’t, 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; you’ll

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

Page 37: Insurance Article

will likely be an out-of-pocket expense (you’ll bring home documentation to

be reimbursed). Whatever the circumstances, it’s smart to contact your

insurer from the road to let them know that you’ve 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 you’ve

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 at-

risk countries. If you’re 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 medical-

insurance plan back home. Sometimes this coverage can get you home after

an accident, but more often, it’ll 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 it’s considered medically necessary. Before

purchasing a policy, ask your insurer to explain what exactly what’s covered

before and afteryou get to the hospital.

Keep in mind that medical and evacuation insurance may not cover you if

you’re 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 it’s 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, it’s already covered by the

Page 38: Insurance Article

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 doesn’t cover expensive rail

passes, consider Rail Europe’s 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. It’s

basically a life insurance policy that covers you when you’re on the airplane.

Since plane crashes are so rare, there’s 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.

Page 39: Insurance Article

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

Page 40: Insurance Article

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 great-aunt 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.

Page 41: Insurance Article

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 at-risk 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.

Page 42: Insurance Article

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 medical-insurance 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.

Page 43: Insurance Article

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 pre-

existing 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:

Page 44: Insurance Article

•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

Page 45: Insurance Article

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.

Page 46: Insurance Article

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.

Page 47: Insurance Article

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

Page 48: Insurance Article

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 InsuranceChoosing 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:

Page 49: Insurance Article

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.

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.

Page 50: Insurance Article

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

Page 51: Insurance Article

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.

Page 52: Insurance Article

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.

Page 53: Insurance Article

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 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."

Page 54: Insurance Article

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.

Page 55: Insurance Article

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.

Page 56: Insurance Article

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.

Page 57: Insurance Article

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 JacksonMay 21, 2013|By Corina Knoll

o

o

o

o

o

o

In the days before Michael Jackson’s 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."

Page 58: Insurance Article

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 trialThe 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 wrongful-death 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 Jackson’s 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 Jackson’s request and that the doctor’s 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 Jackson’s 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 Jackson’s death, those involved with the tour appeared to be contemplating damage control.

Page 59: Insurance Article

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, Jackson’s 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.

Page 60: Insurance Article

"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 obsessive-like 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.

Page 61: Insurance Article

"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.

Page 62: Insurance Article

[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:

Page 63: Insurance Article

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.

Page 64: Insurance Article

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.