7 Key Health Insurance Terms You Always Need to Know

Forget Obamacare. It is falling apart fast and in the process of being replaced by Congress and the President. 

Affordable health insurance is coming soon and knowing the meaning of key health insurance terms is essential whether you are comparing policies, or need to know what to ask an agent.

Below is a list of key health insurance terms to help you understand more about what your health insurance plan has to offer.

1. Deductible
The deductible refers to the amount of money that you need to pay before any benefits from the health insurance policy is paid. This is usually a yearly amount. Consequently, when the policy starts again, usually after a year, the deductible would be in effect again. Some services, like doctor visits, may be available without first meeting the deductible. Usually there are separate individual deductible amounts and total family deductible amounts.

2. Co-insurance
This is usually a percentage amount that is  your responsibility to pay. A common co-insurance split is 80/20. This means that the insurance company will pay 80% of the procedure and you are required to pay the other 20%.

3. Co-payments
Co-payment is a fixed amount that you are required to pay at the time of service. It is usually required for basic doctor visits and when buying prescription medications.

4. Out-of-Pocket
This is the cost you would pay out of your own pocket which can refer to how much the co-payment, coinsurance, or deductible is. Also, when the term annual out-of-pocket maximum is used, it is referring to how much the insured would have to pay of their pocket, excluding premiums, for the whole year.

5. Lifetime Maximum
This is the most amount of money the health insurance policy will pay for your entire life. Pay attention to individual lifetime maximums and family lifetime maximums as they can be different.

6. Exclusions
The exclusions are the procedures that the insurance policy will not cover. 

7. Pre-existing Conditions

This is something you had before obtaining the health insurance policy. Some plans will cover pre-existing conditions while others may completely exclude them. Then again, some health insurance plans will cover pre-existing conditions after a certain time period.

Any comments or questions? Leave them below.

How to Acquire a Home and Build Equity Even with Poor Credit

Until recent years, if you had a middle score of 520 or even as low as 500, you could qualify for mortgage. For example if your Experian score was 513, your TransUnion score was 522, and your Equifax score was 507, your middle score would be 522. 

That would be the score the mortgage company would use to set up your mortgage financing. 

Because of this low score, you may have had to accept a higher interest rate, come up with a higher down payment, or our accept a lower loan-to-value if you are refinancing, but you could still would have gotten your financing done.

Now, you must have a middle score of at least 620 to even get considered.

And along with the need for a higher score, the interest rate for a conventional loan is 4.12%. And, for a FHA loan the current interest rate is 3.75 % if you and the property meets the qualifications. Both of these rates require specific down payments and closing costs.

Nevertheless, despite these mortgage requirements, you still have a chance to acquire your home and build equity. You just need a higher level of sophistication and be willing to carry out your search either with or without a realtor. 

Here are some choices:

Rent with an Option to Buy.
Many sellers are realizing that buyers are having more difficulty qualifying for a mortgage, but have a steady job, adequate income, and some savings. This type of buyer would make a good candidate for Rent with an Option to Buy.

Contract for Deed
This is often referred to as buying on an installment contract or just buying on contract. This as another option for the similar type of buyer, but gives the buyer more rights while living in the property.

Seller Financing
On occasion a seller might have a need to move because of a death in the family, a need to relocate for employment purposes, or just tired of the property and the location. If the property has a low mortgage balance or a non-existent one, the owner may be receptive to a wraparound mortgage. 

In a situation like this, the owner may agree to an amount which will wrap around his current monthly mortgage payment as well as a give him a profit.

The details covering the owner and buyer obligations are very important and it would be wise to consult a real estate lawyer to review the agreement.

Finding these types of sellers will require persistence and follow through. These types of sellers generally advertise in the classified sections of the local newspapers. 

They are receptive to your calls and offers and although they may be tough negotiators, it is possible to have a meeting of the minds. The key is being diligent and persistent.

Almost ready to make a decision? E-mail me at wwillbar@gmail.com or call (773) 614-3201

 

Don't Buy Health Insurance Until You Read This

Keep Regular Dental Visits

It has been said that the best health insurance is moderation. 

However, even though you may be conscientious enough to get a regular physical examination, you may unexpectedly experience symptoms that may require you to get an urgent examination to find out what’s going on and to get treatment.

If hospitalization is necessary, then you have to get admitted. To meet these expenses without insurance can wreck havoc on your bank account.

According to the National Association of Health Underwriters, only 5 percent of Americans get their health coverage from an individual health insurance policy. Individual health insurance is a type of health care coverage that is provided to individuals rather than to employers or organizations. It can be sold to an individual or to a family.

There are 4 major advantages to choosing an individual health insurance plan rather than employer-based coverage:

1. You can customize your coverage, where employer-based coverage may provide limited options.
2. You have the freedom to pursue better rates with other companies.
3. Depending on your circumstances, it may be more affordable than employer-based health insurance, particularly if you're paying for coverage via COBRA.
4. It's not dependent on an employer. Individual health insurance plans protect you no matter where you work.

Maintaining health insurance coverage doesn't have to cost a fortune and neither does dental insurance. Here are a few ways to help keep your health insurance premiums low:

1. Costs can vary widely depending on the insurer, sometimes by as much as 50 percent for similar plans. Make sure you shop around.
2. The higher your deductible, the lower your monthly premium. You'll be responsible for more out-of-pocket costs should you need to file a claim, but the money you save on your premium may be well worth the risk.
3. Keeping yourself healthy can save you money on health insurance costs. Excess weight or tobacco and alcohol usage will drive up your premium.
4. If a member of your family isn't in perfect health or is of advanced age, it may be more affordable to purchase separate health insurance plans.

Protect yourself and your family with the health insurance coverage you deserve.

Any comments? Leave them below. For a free consultation, call (773) 614-3201 or e-mail me a bwillbar@gmail.com.