"Religion is what keeps the poor from murdering the rich. " - Napoleon Bonaparte

SavingAdvice.com Blog

Bridging the gap between saving money and investing


Join Now or Login

Insurance

Do You Need to Buy Separate Health Insurance for College Students?

By Leave a Comment

health insurance for college students
In many cases, health insurance is less than affordable, making it difficult for individuals to decide whether or not coverage is worth the cost. It isn’t something to be overlooked, especially for students. More than 20 million students are expected to return to college this fall and, without fail, colds and the flu will begin spreading. You don’t want yourself or your child to fall behind because they didn’t have the health care they needed while away at school but do you really need separate health insurance for college students?

Health Insurance Options for College Students

According to HealthCare.gov, each of the options below is available for college students.

  • Your parent’s insurance: Children are permitted to remain on their parent’s insurance until they are 26 years old.
  • Student health plans: Many colleges and universities offer a student health plan. In many cases, this is much cheaper than purchasing your own health insurance and gives you the basic coverage you need.
  • Individual health insurance: You can enroll in your own health insurance program that covers the essentials. Catastrophic health plans are available for individuals under 30. Catastrophic plans cover severe illness or injury and can be more affordable than full health insurance coverage.
  • Medicaid or Children’s Health Insurance Program: If you apply for individual coverage, you may discover you are eligible for Medicaid or CHIP. If you qualify for one of these government-funded programs, you can begin coverage immediately.

Each of the options above is available to all college students but it may be wise to compare the cost of each side-by-side. You may find that remaining on the family’s health plan may prove to be cheaper than a student health plan or individual coverage.

Do You Need Health Insurance?

You may be able to save the money you planned to spend on insurance altogether. You’ll need to take note of a few things before you decide to do so though.

This year, the health insurance mandate will subject individuals without insurance to a $695 tax penalty per adult and up to $2,085 per family. While the new tax law signed by President Trump removed the mandate, it is not in effect until 2019. So, anyone without health insurance in 2018 will still be required to pay these fees.

However, many students won’t be subjected to the fines at all because most won’t be making enough money to file income taxes ($10,000 a year or less). So, you probably don’t need health insurance for college students to avoid a fine but the decision to go uninsured should not be taken lightly.

Generally, it is a good idea to hold health insurance at all times. This helps ensure you will have the means to pay for a doctor visit, ER visit, or other medical procedure, whether money is tight or not.

Health Insurance Tips for College Students

If you do decide to purchase health insurance for yourself or your child, there are two things to keep in mind if they are traveling to school.

  1. Know where to go (within your network): Once you get settled in into your dorm, find out what local offices accept your insurance. It is a good idea to get the name and number of an eye doctor, dentist, and general practitioner in the area. Then, make a well visit with them and get your insurance on file.
  2. Pick a local pharmacy that accepts your insurance: Once you find a doctor that will accept your insurance plan, you’ll need to find a pharmacy that works with your coverage as well. Most of the time, your doctor’s office can point you in the right direction. You can also call the number on the back of your insurance card for more information.

If you’ve been considering buying a new health insurance plan for your college student (or yourself), consider all of your options and the cost of each. Then make an educated decision based on what is best for your health and finances.

Read More

Here’s What You Need to Know About Back-to-School Insurance

By Leave a Comment

back-to-school insurance
The end of summer is almost here, which means many students will be headed back to school. Depending on the age of your child, you’ll need to research what your back-to-school insurance needs may be, whether it is auto, health, or home coverage. Since the best time to review your insurance plans is before the school year begins, here’s what you need to know.

Car Insurance for Students

Kids in high school may be preparing to take drivers ed and get their licenses this year. If that’s the case for your child, you may want to begin researching car insurance rates or what it may cost to add them to your insurance plan. Some insurance companies will offer a significant discount for ensuring your teenager if you agree to put a lowjack in your car to monitor speed.

You may also want to inquire about student discounts for car insurance as well. There are some companies that offer a discount for students with a high grade-point average.

Students headed off to college may also see a change in premiums and coverage if they go more than 100 miles away from home and bring a car to campus. However, you also stand to save up to 30% if your child leaves the car at home.

Health Insurance

Elementary school-aged children are especially susceptible to colds and cases of flu. Schools are a breeding ground for germs. Because of this, it is important to make sure you have solid health insurance coverage so you’re able to take them to the doctor when needed.

Many colleges require students living on campus are required to have health insurance. Thankfully, your children can remain on your insurance policy until they are 26 years old. If that isn’t an option financially, they can apply for individual health insurance. Students also have the option of receiving care from on-campus health care services. Some universities offer free health care while your child is enrolled full-time.

Home Insurance

College students often bring expensive electronics along with them to school. This can often make their dorm room or apartment prone to burglary. Most home insurance policies will cover these items as long as your child is staying in the dorms but will not cover certain items. Students living off-campus will need to purchase renter’s insurance, or you may consider adding their renter’s insurance to your policy.

Most home insurance policies cover up to 10% of property owned by an insured that is at a residence other than the residence listed on the policy. A $100,000 policy will cover $10,000 of belongings in a dorm.

When students return to school each year it is a reminder for many people to review their current insurance coverage. Taking a good look at your insurance may help you discover gaps in coverage and prevent any losses in the future.

Readers, are you preparing to make any changes to your insurance coverage now that students are headed back to school? 

Read More

The High Cost of Some Prescription Drugs Can Be More Than Most Automobiles

By Leave a Comment

<img src=" The High Cost of Some Prescription Drugs Can Be More Than Most Automobiles.jpg" alt”pillbottlelayingsidewayswithpillsfallingout">

According to Kelley Blue Book, the average price for a new light vehicle is $35,411. Even the lowest priced new cars will usually run over $12,000. While that number may not be a surprise. Due to the high cost of some prescription drugs;  many consumers are caught off guard when it’s time to pick up their prescriptions.

To make matters worse, some health insurance plans don’t help with the cost.

The High Cost of  Some Prescription Drugs

Tier one medications, typically name-brand drugs that manufacturers push through marketing campaigns, are often more expensive. In 2016, $5.6 billion was spent on prescription drug advertising, trying to convince consumers to ask their doctors about specific medications. These ads usually don’t discuss the cost of the drugs and selecting the wrong one could hit your wallet hard.

To help you make smarter decisions about your prescription medications, here are 11 that cost more than a car, according to GoodRX.

1. Actimmune

Actimmune is for the treatment of chronic granulomatous disease, a rare condition that impacts the immune system, and severe, malignant osteopetrosis .

Most patients need 12 vials a month, and Actimmune costs $4,360 per vial. That brings the monthly total to $52,321. If you use it for a year at that rate, your annual cost is a stunning $627,852. With various discounts and rebates and patient compliance, the cost can be lowered an average of $24,000 per month or $288,000 per year.

2. Daraprim

Both those with AIDS and transplant patient may use Daraprim, as well as those battling with toxoplasmosis. Typically, people use the medication for a few months.

A single one-month supply, consisting of 60 tablets, costs $45,000, or around $750 a pill.

3. Cinryze

A treatment for the rare, life-threatening condition hereditary angioedema, which causes swelling in various body parts, Cinryze costs around $44,140 for a typical one-month supply. Over the course of a year, that comes out to $529,680.

4. Chenodal

While a generic of Chenodal could technically be created, since the patent has expired, the “closed distribution system” has prevented generic manufacturers from producing the medication.

A typical 90 pill monthly supply of the gallstone dissolving drug usually runs about $473 per tablet or $42,570 in total. However, some patients need 210 tablets a month, and that runs $99,330.

5. Myalept

A medication for treating leptin deficiencies in those with generalized lipodystrophy, Myalept costs approximately $4,213 per vial. If you use the standard 10 vials a month, that’s $42,137.

Myalept is also the only medication available for treating the condition, so those who suffer it have no other options for finding cost savings.

6. H.P. Acthar

Also called Acthar, H.P. Acthar is an approved treatment for multiple conditions including multiple sclerosis, rheumatoid arthritis, Lupus, certain ophthalmic conditions, and more. One vial of the medication has a price tag of around $38,892.

7. Juxtapid

A 28 capsule supply runs about $36,992, or $1,321 per dose. The medication treats those with homozygous familial hypercholesterolemia, a genetic condition that can lead to heart disease.

8. Firazyr

Another treatment for hereditary angioedema, though using a different approach, Firazyr costs around $32,468 a month, or over $10,822 per syringe.

9. Harvoni

Harvoni treats Hepatitis C, a condition with notoriously high treatment costs, is widely advertised on television. It is the first combination drug, which needs to be taken once per day, in the treatment category, and a 12-week course of the medication is common.

28 tablets of Harvoni cost $31,500, or $1,125 per tablet. Over 12 weeks that brings the total to $94,500.

10. Cuprimine

Cuprimine is proof that even older medications can cost a bundle. It was invented in the 1970s, but still costs over $261 per tablet today. In fact, the high price tag is so controversial, that it debates in Congress have occurred and an episode of Dirty Money, a Netflix show, covered the topic.

A treatment for Wilson’s disease, those taking the drug usually go through three tablets per day, one after every meal. That brings the monthly cost up to $31,426.

11. Sovaldi

Another Hepatitis C treatment that usually requires a 12-week course is Sovaldi. At $1,000 per tablet, a month’s supply is around $28,000. For a full course of treatment, that comes out to $84,000.

Would Your Insurance Cover Some of the Cost?

Whether an insurance company will cover some of the costs of any prescription varies dramatically. If your doctor recommends any of the medications above, it’s wise to contact your insurer to discuss your coverage.

Additionally, asking your physician for information about alternatives can also result in cost savings, depending on your condition or the availability of generics.

In some cases, lower cost options may not be available, or your insurance might not provide coverage. In those cases, you need to discuss your situation with your doctor. They may be aware of programs that can help offset some of the expense, though that isn’t a guarantee.

Often, when a physician prescribes a medication, there is sound reasoning behind it. While shouldering these high costs could be scary, if your health is at risk, you may need to follow your doctor’s advice.

 

Have you ever been startled by the high cost of some prescription drugs? Tell us about your experience in the comments below.

 

Looking for more great articles? Here are a few to get you started:

 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

What Determines Your Car Insurance Premiums Might Surprise You

By Leave a Comment

Car Insurance Premiums

Insurance companies keep the exact formula for calculating car insurance rates a highly guarded secret. However, there are known things that affect car insurance premiums. Some of them will surprise you.

Your Gender

Car insurance costs less for women because numerous statistics show they are much safer drivers.  The following statistics from the Insurance Institute for Highway Safety were found on the website for the Department of Motor Vehicles:

  • Men accounted for 71 percent of driving fatalities during 2012;
  • Men are more likely to drive while under the influence (38 percent of males killed in a car accidents during 2012 had blood alcohol levels higher than 0.08  — compared to 20 percent of women; and
  • Men are more likely to drive over the speed limit (23 percent of male drivers involved in fatal accidents were speeding at the time, in contrast to 14 percent of female drivers in those circumstances).

Your Age

Young people between the ages of 16 and 24 have higher premiums because they have a higher accident rate.

Drivers aged 16-17 are 3.5 times more likely to be involved in a fatal crash, according to a study by the AAA Foundation for Traffic Safety.

Your Career

Some insurance companies factor occupation into their car insurance rate calculation, and it can make a $500 difference in your premiums.

Occupations that lead insurers to charge the most  tend to have the following attributes:

  • High stress levels
  • The person spends a lot of time in the vehicle
  • Heavy cell phone usage

By contrast, ocupations on the low end of the rate spectrum have the following characteristics:

  • Low stress levels
  • They’re responsible for the well-being of others
  • They use public transportation
  • They need to pay attention to details, which insurers believe carries over to their driving

These factors together account for scientists enjoying the lowest premiums — at an average annual cost of $870; at the other end of the spectrum, business executives have the highest rates, with an average annual cost of $1,375.

Your Education

Apparently better educated drivers represent less risk to insurers — and vice versa.

People who have not finished high school are 4.3 times more likely to be killed in a car accident than college graduates, according to data published in The Washington Post.

The more education you have attained, the lower your monthly premiums, and vice versa.

Your Marital Status

Marriage tends to make people drive more responsibly than single drivers.

Unmarried drivers were twice as likely to be injured in an accident as married drivers, according to a study published in a journal called Injury Prevention.

Because of the reduced risk of injury, being married can reduce your insurance rates.

Your Credit Score

Insurance companies use your credit score as an indication of whether you will pay your premium on time — and the impact on annual rates  can be significant.

Single drivers with good credit ratings each paid $68 to $526 more per year on average than those with the highest credit rating, according to Consumer Reports

Your Car’s Characteristics

Several things about your car impacts how much it costs to insure:

  • Age – generally new cars are more expensive to repair and therefore have higher premiums.
  • Safety features – Enhanced safety features can discount your insurance 5 to 30 percent.
  • Theft history – The recovery rate stolen cars can be as low as 19 percent in some states, so the cars that get stolen most frequently have higher premiums.

Your Claim History

Many people believe submitting an accident claim will increase your insurance rates, but that’s not always true.

Circumstances surrounding the accident in the claim dictate whether rates will be increased, and by how much:

  • Fault – If you are not at fault, your rate may not increase since your insurance company did not have to pay.
  • Severity – A claim for a minor scratch may not affect your rates, but a major at fault claim exceeding $2,000 could result in a premium increase of 41 percent.
  • Accident Forgiveness – Some policies include accident forgiveness, which can lock in your rate even if you get into an accident.

Your Traffic Tickets

Non-moving violations, such as a parking ticket, is unlikely to affect your insurance rates. However, moving violations such as speeding may depending upon your insurance company.  For example, a single speeding ticket in California results in an average annual insurance premium increase of $688. The more tickets issued, the more your rate may be affected.

Your Coverage and Deductible

The more coverage opt for, the higher your premiums are; similarly, having a high deductible can lower your premiums.

Increasing your coverage isn’t a matter of dollar amounts but types of policies. Most states require liability insurance as a bare minimum. If you choose to adding optional collision and comprehensive coverage that can increase. your premiums.

On the other hand, increasing your deductible lowers your premiums because you assume more risk, but how this calculates can be surprising. For example, increasing your liability insurance deductible from $50 to $1,000 could reduce your premiums by 56 percent.

Your State’s Laws

From here, insurance rate formulas can vary based on different state laws. Some states prohibit insurance companies from basing premiums on certain factors. For example, California, insurance companies cannot use occupation and education levels.

Your Insurer

Individual insurers can also have their own variations in the way they calculate premiums — reach out to your insurance company to find out exactly how it computes premiums.

You can also get more information on this topic from the Department of Motor Vehicles.

Readers, which of the factors affecting car insurance premiums surprise you surprise you the most?

Read More

Read more insurance related articles:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

 

Insurance For The Underinsured, Ethos Insurance Review

By Leave a Comment

https://www.getethos.com/?ref=savingadvice

No other financial product provides the kind of security you get from life insurance. It helps beneficiaries during truly painful circumstances. Sadly, most adults either don’t have life insurance or have insufficient coverage for all of the things that arise in bereavement and its aftermath.

There is a new player in the life insurance arena. The name of the company is Ethos and their goal is to get you insured quickly, affordable and easy.

Is Ethos Reliable

Many people worry about the reliability of new insurance companies. The following industries have put their faith in this company:

  1. Munich RE
    Reinsurance Partner
    Reinsurer ranking: #1 globally
    In business: 137 years
  2. AON
    Business Partner
    Insurance broker: #1 globally
    In business: 35 years
  3. RGAx
    Business Partner
    Life insurance in force: $3 trillion
    In business: 44 years

With these type of industry partners, you should feel pretty safe giving Ethos an opportunity to cover you as well. The have very strong coverage. Check out who they’ve partnered with to ensure you will always be covered.

Strong Coverage

Ethos also derives strength from a partnership with Assurity, a leader in the life insurance space. Assurity has been in business for over 100 years.

Underinsured? Ethos Life Insurance to the rescue.The partnership enables Ethos to cover a wider range of applicants.

Ultimately, getting a policy through Ethos is simple. You can get covered in as little as 10 minutes, giving you the ability to secure your loved ones’ finances.

Plus, there is never any commitment to buy simply because you request a quote. Ultimately, it gives you the power to find the right policy for you, whatever that may be.

If you have anyone depending on you financially, you owe it to them to not be underinsured. Ethos can help. Find out more about how you can close this gap by clicking here.

Underinsured? Ethos Can Help.

Ethos has been breaking down the barriers that made it hard for families to secure life insurance, especially the tedium of the application process. It used to take weeks before an applicant could find out if they qualify for coverage in the first place.

“Applying for life insurance is a cumbersome experience,” said Richard Hu, vice president of partnerships at Ethos. “Weeks of back and forth with an agent, doctor’s appointments, and paperwork are the norm.”

Ethos uses modern technology and an intuitive user interface to drastically reduce the time to apply for coverage: as little as 10 minutes.

Substantial Coverage at Lower Prices

Ethos provides term life insurance, which is ideal for people who want substantial coverage at low costs, according to Investopedia; these policies tend to have lower premiums and more generous coverage amounts than other types of life insurance.

You can get a $25,000 policy for as little as $6 per month through Ethos. For those who require more coverage, policies are available up to $10 million.

The typical Ethos customer is in their 30s or 40s. Usually, this is the time when people are raising children and paying a mortgage, so having sufficient coverage is a must.

However, even people in their 50s can benefit from term life insurance. As Hu points out, “If they are taking care of an elderly parent, then they may need some life insurance to provide some security for them.”

Additionally, life insurance can be used to pay for final expenses, such as funeral costs. This allows the customer to ensure that there is no burden on surviving family members.

Matching Customers to Policies

When a potential customer contacts Ethos for a quote, the price is often a big concern.

“Most people are price sensitive. Their budget helps determine their policy amount,” said Hu.

Ethos gathers basic information, such as age and gender, and then recommends three different policies at various price points.

Name Your Price

“You can also name your own price,” he added. If a customer chooses that option, a policy is created based on those requirements.

So, how much life insurance should you opt for? Hu said that you don’t necessarily need to buy as much as salespeople used to suggest, which was seven to 10 times a person’s salary.

It can certainly be less than that, since the customer’s budget and life circumstances are more important considerations.

For example, individuals over 50 without children and who have a paid off their mortgage might not need much life insurance at all.Underinsured? Ethos Life Insurance can help.

Instead, they may only need to cover final expenses and any other costs they don’t want to offload onto their families after their passing.

Families First

A driving principle at Ethos: Customers’ families comes first. That’s why the company goes out of its way to make its insurance accessible, easy to understand and honest.

Ethos prides itself on providing top-notch customer service — made possible by different management strategy than what other insurers use.

Like Hu explains, “Our staff isn’t paid by how many policies they sell or how much the policy is worth. Once the incentive is removed, you free the employee to offer great advice that can really help the client.”

“They can focus on making the customer happy and ensuring they don’t feel like they are being taken advantage of.  The customer success agent is empowered to help families find the right policy for them, no matter what that may be,” he said.

 

Readers, do you have any life insurance, would you consider Ethos? Let us know in the comments below

Read More

Looking for more great articles about insurance? You might like these:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

The Shocking Ways Climate Change Impacts Real Estate Values

By 1 Comment

Climate Change Impacts Real Estate Values in surprising ways
Although the average U.S. home price rose 6.3 percent last year, things played out entirely differently in certain locations — prepare to be surprised by the way climate change impacts real estate values.

Interestingly, some rather surprising supply-and-demand scenarios resulted in the short- and long-term aftermath of different natural disasters in recent years.

Rising Sea Levels

Real estate in coastal areas tends to get people worried about the potential for flooding. Waterfront properties usually cause the greatest concerns among prospective buyers, although neighboring areas can experience some of this effect of climate change.

Between 2011 and 2016, home sales in areas prone to flooding grew around 25 percent slower than nearby properties outside of flood zones.

In Miami, Florida, data suggests that homes that are vulnerable to rising sea levels sold at a 7 percent discount compared to similar properties outside of high-risk areas.

Repairs and Insurance

Part of the lower valuations likely comes from concerns about possible repair costs and personal property damage. A related factor has to do with the expense of flood insurance.

Flood insurance usually isn’t included in homeowner’s insurance policies, instead requiring an additional purchase.

This increases the overall cost of obtaining the home, often in direct  proportion to the risk or likelihood of flooding.

This is especially true anywhere flood insurance is either required by law or a prerequisite of a potential mortgage lender.

Hurricanes Are Another Effect

Interestingly, hurricanes tend to have little impact on real estate values over the long term, although the short term the impact can be significant.

Typically, once an area rebuilds, buyers are willing to overlook the risk if they genuinely want to live near the coast.

However, the short-term impact can be significant in areas where people are less likely to have flood insurance.

Without Flood Insurance

In areas where people are less likely to have flood insurance, more homes end up going without repairs because people can’t afford to rebuild.

This can result in abandoned properties with lingering damages that can drag down the values of undamaged properties nearby.

In Houston, which was ravaged by Hurricane Harvey in 2017, approximately 9 out of 10 homes didn’t have flood insurance.

This increased the odds that homeowners would walk away from damaged properties, leaving them vacant and unrepaired.

Additionally, the length of the recovery plays a role. One report suggests that the full cleanup and rebuild from Hurricane Harvey could take upwards of 20 months.

While peak remodeling hits about three months after the event — that’s the timeline for bank foreclosures — some areas could still appear damaged well into 2019.

Where There Are Wildfires

Meanwhile, the effects of heatwaves and droughts can have an entirely different effect on real estate values. In fact, it can be downright counterintuitive in some cases, such as the areas struck by wildfires during the fall of 2017.

In late 2017, after fires ravaged portions of Northern California, housing prices actually rose. In Sonoma, the median price went up by 6.1 percent. Napa saw even more growth, reaching 7.5 percent, and Santa Rosa saw values skyrocket by 9 percent.

The reason for this actually differs from what happens in coastal areas. Instead, residents who lost their homes to the wildfires and were determined to stay in the area. That wound up shrinking the number of available properties, which in turn intensified demand and opened things up to bidding wars.

Housing Shortages

Before any fires broke out, the area already had a housing shortage; the wildfires only exacerbated the problem. Undamaged homes, in some cases, saw offers as high as $200,000 above the asking price.

However, if a particular neighborhood was caught in the blaze, and a single home was spared, that individual property’s value dropped.

Few people want to live amid burned-out houses, so houses surrounded by damaged or abandoned properties can lose value, typically around 10 percent.

As the neighborhood rebuilds and time passes, real estate prices tend to correct themselves. Within about five years, any discount for being surrounded by burned out homes generally dissipates.

Climate Change Impacts Real Estate Values

Ultimately, climate change does impact real estate values, although that doesn’t always mean they fall, even immediately following a disaster.

That said, it’s wise to consider the risk before purchasing a property and make sure to secure the proper insurance to assist in post-disaster recovery if you choose to buy in a potentially at-risk area.

Readers, did you or someone you know have a home damaged by a disaster? Tell us about it by posting in the comments section beneath this post.

Read More

If you liked this article, you just might enjoy these others on the topics of real estate and climate change: Give these a try:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.