Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header about About Home Profiles articles Tools forums inspirational quotes About facebook Twitter YouTube Blog
Share for a Cause











Tips For Insurance: How To Cut Your Costs In Half

Guest post by: Alston Balkcom

Article Overview: Your rate for medical care insurance will, to a very large degree, be determined by the size of the deductible you are willing to take. This means that you will pay more for a no deductible health care insurance policy than you will pay for a high deductible health care insurance contract. Your rate will be influenced by other insurance-related factors as well. These insurance-related factors include your location, your age, your gender and your health history. However, the insurance-related factors you have the most control over may be the deductible you select when getting a medical insurance contract.

Free Download - Why You Need Nursing Home or Long Term Care Coverage By Alston Balkcom
Name: Email:

Tips For Insurance: How To Cut Your Costs In Half



Your rate for medical care insurance will, to a very large degree, be determined by the size of the deductible you are willing to take. This means that you will pay more for a no deductible health care insurance policy than you will pay for a high deductible health care insurance contract.

Your rate will be influenced by other insurance-related factors as well. These insurance-related factors include your location, your age, your gender and your health history. However, the insurance-related factors you have the most control over may be the deductible you select when getting a medical insurance contract.

Most adults know that when you get a higher deductible health insurance contract, you will pay less than if you purchase a no deductible health care insurance contract. However, what most don't know is that the increase in deductible is not equal to the decrease in rate.

For this reason a bigger deductible health care insurance plan is often a much better deal when compared to a lower deductible policy. Raising your risk by a dollar often results in a drop in costs of greater than a dollar.

Chances are you can get a health insurance policy very similar to the one you now pay for with a bigger deductible. If that is true, it will be easy to compare your choices.

To determine if you can drop your cost without raising your risk too much, you can use this three-step process. The first step is to calculate the amount you will save each year with the higher deductible policy by subtracting the annual cost of your current health insurance policy from the annual cost of the higher deductible plan. Then determine how much additional risk will take on if you buy the higher deductible plan. Finally deduct the potential cost-savings from amount of the potential additional risk. Call this dollar figure your "net additional risk".

If you want to take on the net additional risk the amount, consider buying the cheaper plan. But before you do so, do the same exercise again. This time compare your current contract with a plan with an even larger deductible health care insurance contract.

Medical care insurance contracts that are compatible with HSAs or Health Savings Accounts are often the most cost effective policies. These plans typically have larger deductibles and low costs. They often will pay for some preventative medical expenses even if you haven't met your deductible.

This cost-saving technique should not only be used to halve your health insurance rates. You should also apply the same process to halve your costs for auto insurance and for your other personal insurance contracts.

Increasing your deductible and cutting your insurance premiums is a proven method for getting your rates down. However, there are two things that you should be aware of.

The first is that it is smart to invest the premiums that you save by dropping your rates. Holding on to this money can help you in two ways. If you have costs that are not covered by your insurance contract, some of this money can be used to cover your costs. If you do not have uninsured medical events, you may more money for retirement.

The second is that a deductible is not the only cost share for health insurance. Often two policies with the same deductible might be radically different. The others are coinsurance and co-pays.

When comparing health insurance policies, it pays to look at all the insurance-related factors involved. Do not focus on the deductibles and forget about the other insurance-related factors.

As the prices for insurance go higher and higher, we have to get smarter and make better decisions. The steps above might help you lower your costs for insurance and improve your financial security.

Related Articles
  Alternatives to COBRA health insurance
  Car Insurance - Gap Insurance
  Florida Auto Insurance Companies
  Maternity Medical Care Insurance - Starting Insurance While Pregnant
  Dream Car Insurance – Buying The Dream Car
  Little Known Techniques to Lower your monthly premiums for health Assurance Tips to control the high premiums of Personal healthcare insurance
  How Do Medical Insurance Deductibles Work?
  Secrets To Dropping Your Private Health Care Insurance Premiums
  Auto Insurance Companies - How To Cancel A Policy
  The Annual Deductible of a Health Insurance Policy
  StartUp Costs
  UK Business Finance - Do I Need To Insure My Equipment?
  Finance Start-Up
  The Right Age to Buy Primerica Life Insurance
  5 Best Ways To Save On Health Insurance
  Getting Medical Insurance While Pregnant Buying pregnancy Insurance While Pregnant
  Do You Need Dental Insurance?
  Why Is Healthcare Insurance So Expensive
  How ICD-10 Will Change Health Insurance
  Insurance Defense Costs

Home > Insurance > Alston Balkcom > Tips For Insurance How To Cut Your Costs In Half >
Article Tags: health care insurance, insurance policy, medical care insurance
Referred by: http://www.searchengineworkshops.com

About the Author: Alston Balkcom
RSS for Alston's articles - Visit Alston's website

Alston J. Balkcom has been a licensed insurance agent since December of 1985. His health insurance agency services Connecticut residents who do not qualify for health insurance through an employer

Click here to visit Alston's website
Dashed Line

More from Alston Balkcom
How To Compare Private Medical Insurance
Do You Know Enough About Automobile Insurance
Pros And Cons Of Socialized Medicine
Is COBRA healthcare coverage the best deal
Why You Need Nursing Home or Long Term Care Coverage


Related Forum Posts
Re: Insurance for Home Based Business? Re: Insurance for Home Based Business? - hi there I'm a newbie here.I can get good information regarding the Insurance for Home based business and more. It's really safe to have Insurance for a home based business. Thanks a lot for discussing some important issues here and i feel really happy to be a part of this.
Business Tips Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
Re: Business hype Re: Business hype - The Irish bar has a nice World Cup promotional campaign on to draw people in to view the games live... Each game has a special drink discount IF something happens during the game, and whenever possible the drinking theme is related to the game. EG: Half price drinks if Japan scores (as the bar is in Japan)... Half price tequila shots if Mexico scores first...
Patent Walk-Through Patent Walk-Through - Hello everyone! My name is Alex, I'm 18 years old and I'm constantly drawing up new ideas and inventing stuff. I sketch stuff down everywhere I go and on anything I can write on. I'm a big member of our local Future Business Leaders of America chapter (FBLA). In the future I hope to work my way up to being a Venture Capitalist. I think of myself as a pretty creative person who is very motivated. Some of the ideas and inventions I come up with are pretty far out but others I consider marketable and to have great potential. Being 18, I have little to no connections and no resources. I've been surfing this site pretty frequently for the last year and have finally decided to join the forum group. Anyway, here's my question... Basically, I have no idea how to get a patent together the costs and the overall process. As of now, I think I have a great idea that, as far as I know has not, ever been done before. I'm really excited about this idea. I'm a total novice at this and am willing to learn all that I can. Any information that you can provide me with would be great. Again the main things I want to know are: 1.Overall Process. 2.How Long It Takes. 3.Costs. 4.Anything That You Think I Should Know. 5.Tips/Experiences. 6.Confidentiality. 7.Must I Make A Physical Model of My Idea? Thanks guys! -Alex
Half of 2011 is gone Half of 2011 is gone - Half of 2011 is gone. Did you achieve your goals? If not you can look at your mistakes in the past six months and concentrate on what to do in the next six months. Before we know it, we will be greeting each other Merry Xmas and everything still remain the same.


Recommended Article for You close

  Alternatives to COBRA health insurance

Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article

Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

What is an Adaptive Organization

Join Conversations Politely, Part 1

Are You My Mentor

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.