DailyFinance.comhttp://www.dailyfinance.comDailyFinance.com%http://www.blogsmithmedia.com/BlogURL%/media/feedlogo.gifDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Busted! 5 Outlandish Insurance Claims Overturned in 2011http://www.dailyfinance.com/2011/12/30/busted-5-outlandish-insurance-claims-overturned-in-2011/http://www.dailyfinance.com/2011/12/30/busted-5-outlandish-insurance-claims-overturned-in-2011/http://www.dailyfinance.com/2011/12/30/busted-5-outlandish-insurance-claims-overturned-in-2011/#commentsFiled under: ,

HandcuffsBogus burglaries, fake funerals, self-inflicted air rifle assaults -- people go to great lengths to convince insurers to cut a check to cover their personal and financial losses. But the financial gain from phony pain and suffering is often short-lived.

Here are a handful of outlandish insurance claims that were overturned in 2011.

1. Art Heist Hijinks

While Jason Sheedy waited for work to be completed so he could move into his new condo in Minneapolis in 2007, he packed some of his prized possessions -- almost $275,000 in fine art and collectibles -- into a van that he left parked outside of his St. Paul, Minn., home. Cue forehead slapping and eye rolling. Sheedy informed his insurer that the truck's precious cargo was stolen after a thief cut open the padlock. He then collected more than $250,000 from AXA Art Insurance Corp.

Flash forward to Spring 2011, when works by Rembrandt, Salvador Dali and Peter Max -- the very same pieces stolen from Sheedy four years earlier -- were put up for auction on Artbrokerage.com. The art, according to AXA, was put up for sale (cue ominous organ music) by none other than Sheedy himself. After further digging, investigators discovered that this wasn't the first time the collector has trotted out his "stolen" collection for personal gain. Several times Sheedy used it as collateral at a pawn shop to get loans which he then paid off and then reclaimed the artwork, according to an FBI statement.

2. Crocodile Tears and an Empty Casket

The first funeral for James Davis was lovely -- a touching graveside ceremony at a Los Angeles-area cemetery. Later his coffin was exhumed, his remains cremated, and his ashes reportedly scattered at sea. But it turns out the only true thing about the entire charade was the $950,000 in life insurance proceeds paid out to two funeral home workers who concocted the whole plan.

According to the Coalition Against Insurance Fraud, the elaborate charade included fake mourners and a coffin filled with cow meat and bones and a mannequin (so the weight of the casket would feel right). When an insurance investigator started looking into the scheme, the workers turned the evidence into ashes. Their plan went up in smoke when they attempted to bribe a doctor into creating fake medical documents for the non-existent Davis and the doctor would not cooperate. In January, one of the perpetrators was sentenced to 2 years in a federal penitentiary.

3. The $2 Million Car Wash

In November, a federal judge ruled that that an alleged insurance fraud case surrounding a 2009 car crash should be tried before a jury. The ruling made headlines because this wasn't just any run-of-the-mill wreck: The car was a multimillion dollar Bugatti Veyron carrying $2 million in collector-car insurance.

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The complaint alleges two men conspired to defraud the insurance company: The original owner of the Bugatti gave the second man a $1-million interest-free loan to buy the car, which he drove into a Galveston, Texas, saltwater lagoon. The driver claims to have been distracted by a low flying pelican which made him drop his cell phone and veer off the road. The costly car wash -- minus any pelican cameo -- was captured on video and posted on YouTube by a bystander.

4. Ice heist inspired by Hollywood



Supposedly inspired by the movie Snatch, two New York diamond dealers -- desperate for cash to pay off their failing business's debts -- were convicted in May of scripting and acting out an elaborate plan to steal their own baubles for the insurance money. Now they will spend between 20 months and 5 years in jail -- plenty of time to review the many ways their bungled heist and $7 million insurance claim backfired.

The biggest blunder was their inability to disarm their own security cameras. The failed attempt was, ironically, caught on tape. As cameras continued to defiantly roll, we see the pair removing the contents of the safe before the "burglars" even arrive, and then place the empty boxes back inside for the crooks to confiscate. In the next scene the two hired accomplices -- dressed as Hasidic Jews and armed with plastic guns -- are buzzed in without even being asked, "Who's there?" Spoiler alert: The stolen goods have not been recovered, and the costumed extras have simply vanished.

5. Lone Gunman Nabbed for (Very) Personal Assault

Talk about going to extremes. A longtime insurance fraudster was finally caught after being shot in the chest in March. It turns out that the gunman was -- pause for effect -- also the victim. According to the U.K.'s Financial News, the man confessed to turning the barrel on himself so he could collect compensation for the harm.

Personal injury claims, it turns out, has been a specialty of his for the past 16 years -- including an air rifle injury in 1995, an accidental stabbing by a family member in 2004, and an injury sustained after slipping in a public toilet in Corwen in Wales.

Bonus Claims: Travel Travails

Cancelled flights, lost luggage, stolen wallets, food poisoning -- there are a lot of things that can ruin a vacation. Insurers are used to dealing with ho-hum claims for things like cancelled cruises and damaged property. But some vacationers are beset by more unusual maladies -- concussions from falling coconuts, a herd of cows licking the paint from a parked car. According to the Telegraph, insurers paid the claim submitted by a couple who said that marauding monkeys broke into their lodge and flung their clothes across a Malaysian rainforest. A family camping in Wales wasn't as lucky: Their claim for damage to camping equipment due to a parachutist landing on their gear was denied.

Motley Fool writer Dayana Yochim has made no outrageous claims in 2011.


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]]>art theftArtTheftBugatti Veyroncrimediamondsfake deathFakeDeathinsurance fraudInsuranceFraudRembrandtself-inflicted woundsSelf-inflictedWoundsWalesDayana YochimFri, 30 Dec 2011 13:00:00 ESTSocial Security Going Bust? That's the <i>Small</i> Problemhttp://www.dailyfinance.com/2011/12/28/social-security-going-bust-thats-the-small-problem/http://www.dailyfinance.com/2011/12/28/social-security-going-bust-thats-the-small-problem/http://www.dailyfinance.com/2011/12/28/social-security-going-bust-thats-the-small-problem/#commentsFiled under: ,

MedicareMany people are in a near-panic about the woes that Social Security faces. Accused of being a Ponzi scheme, the program is projected to run out of funds by 2036 -- and if it fails, potential consequences could be disastrous. But the other major government program that retirees rely on for their financial well-being faces an even bigger problem -- one that could come sooner than Social Security's demise and lead to more bankruptcy among retirees.

That program, of course, is Medicare, and the funding situation for the portion of its benefits that retirees receive looks even scarier than Social Security's prospects right now.

Medicare's Running Out of Money, Too

With Social Security spending between $40 billion and $50 billion more than it takes in each year, the government needs to find a solution or else see benefits drop to about three-quarters of their current level after the Social Security Trust Fund is gone.

But look at the same statistics for Medicare, and the numbers are even worse.

Based on current trends, Medicare projects its trust fund will run out of money in 2024 -- 12 years before Social Security is expected to run dry. In fact, the remaining asset balance in the Medicare Trust Fund fell below its recommended minimum level earlier this year. Last year, Medicare spent more than $30 billion more than it brought in from taxes and premiums.

The situation isn't irreversible, but the steps for coming up with a fix are very complicated.

Do the Math

If you've ever looked at your paycheck, there's one obvious reason why Medicare is in more trouble than Social Security: Simple mathematics.

During most years, Social Security payroll taxes take out 6.2% from your paycheck, and your employer pays another 6.2% on your behalf. But for Medicare, you and your employer each pay just 1.45%. The big difference is that Social Security taxes only apply to a limited portion of earnings -- for 2012, you'll pay only on your first $110,100 -- while Medicare taxes apply to your entire earnings.

But still, with a tax rate that's less than a quarter of what Social Security charges, Medicare gets a lot less money from workers.

Medicare does, however, have an additional funding source: premiums from its participants. But those premiums, too, fall woefully short of the amount the programs cost -- more than $200 billion short for Part B medical care insurance and Part D prescription drug coverage. That means that unlike Social Security, Medicare already requires big expenditures from the general federal budget on top of its tax and premium revenue.

What This Means for You

Medicare's challenges make it more important than ever to start thinking about how you can cover your own medical expenses. Fidelity estimated earlier this year that couples will need $230,000 to pay for health care during retirement -- and that's with current Medicare benefits factored in.

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Fortunately, there are some steps you can take to insure against big bills. Medicare supplemental insurance bridges the gap between the care you need and what Medicare only covers in part. Long-term care insurance covers the cost of nursing homes or other skilled facilities, as well as some home-health care costs.

That protection doesn't come cheap. On long-term care, insurers like Manulife Financial (MFC) and Genworth Financial (GNW) have asked for big premium increases, while MetLife (MET) plans to exit the market entirely. Similarly, Medicare supplements from a wide range of insurers, including Humana (HUM) and WellPoint (WLP), can be costlier than some retirees can afford.

But with the cost of health care rising faster than inflation, insurance can still prove to be cheaper than the potential financial catastrophe of a huge out-of-pocket expense. Unless major reforms to Medicare come in the future, it'll become even more important in the years to come to have a plan to take care of your retirement health-care expenses.

The sooner you start planning for those expenses, the better your own retirement will be. Start by taking these three steps to improve your chances of becoming better off financially, no matter what happens to Medicare and Social Security.

Motley Fool contributor Dan Caplinger hopes for the best but plans for the worst. You can follow him on Twitter here. Motley Fool newsletter services have recommended buying shares of WellPoint.



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]]>FinanceHealthhealth careHealthCareHumana IncinsolvencyinsuranceManulife FinancialManulife Financial CorpmedicarePonzi schemeretireesretirementSocial Security Trust FundtaxesTwitterWellPointDan CaplingerWed, 28 Dec 2011 13:55:00 EST5 Times When You Shouldn't File That Insurance Claimhttp://www.dailyfinance.com/2011/12/23/5-times-when-you-shouldnt-file-that-insurance-claim/http://www.dailyfinance.com/2011/12/23/5-times-when-you-shouldnt-file-that-insurance-claim/http://www.dailyfinance.com/2011/12/23/5-times-when-you-shouldnt-file-that-insurance-claim/#commentsFiled under:

insurance claimThis holiday season, AAA estimates that about 84 million people, or more than a quarter of the country's population, will take car trips of at least 50 miles. The Consumer Federation of America forecasts that there will be more than 325,000 auto accidents during that period, leading to more than 200,000 claims filed with insurance companies.

And that's just for our vehicles. Every day, people have claims they can file with their home insurers, too. Guess what, though: Sometimes you should definitely not file that claim.

Insurance companies pay attention to customers who file a lot of claims. Every time you ask them to foot the tab, they take note. And at some point you become an unprofitable customer, driving them to raise your rates -- or cancel or refuse to renew your policy.

A better approach to insurance is to think of your policy as being there to protect you from big losses, not for taking care of every little mishap that occurs. With that in mind, here are five situations where it may be less costly in the long run if you simply skip filing a claim and pay for the losses out of your own pocket.

1. You have some moving violations on your record already.
Auto insurers quote you rates based on the kind of driver you seem to be. Some insurers raise your rates based on the size or number of claims you've filed, while others will also take into account the tickets you've received. So, if you have some moving violations on your record already, you might not want to chance filing a claim if you can avoid it, because that might lead your insurer to hike your rates.

2. The claim pays out little more than your deductible.
Another consideration is your deductible. If your policy has a $500 deductible, you might not want to bother filing a $600 claim, as it will only net you $100, and the claim could count against you one day in the eyes of your insurer -- especially if you end up having to file one or more within a few years. If your expense is less than the deductible, then you almost certainly will want to not file the claim, in order to keep your record as clean as possible.

Note, too, that you might want to consider raising your deductible to a higher level. A move from $250 to $500 or from $500 to $1,000 could significantly lower your annual premiums and over time could more than pay for itself.

3. The claim involves water damage.
If you're thinking of filing a claim on your homeowner policy due to water or mold, think twice. Since such problems can be so complicated, costly and sometimes persistent, insurers hate to see them. Some insurers refuse to cover mold, or make you tack on a rider to your policy to do so.

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A single small moisture-related claim can cause you huge headaches. Not only might it lead your insurer to drop you, but there will likely be a record of your claim in a central database accessed by most insurers, meaning that many or all other insurers might refuse to cover you, too. On top of that, the problem could even lead to difficulties selling your home, if would-be buyers find that they can't get insurance for it.

4. You could have prevented the damage.
Before filing a homeowner claim to cover damage, ask yourself whether you contributed to the damage by failing to address an existing problem. If so, your insurance company will very likely point that out and refuse to pay. Negligence is not reimbursable.

For example, if you sustain water damage in your attic due to a roof that should have been replaced years ago, that's a problem you could have avoided with regular home maintenance. That's different from a sudden weakness in your roof due to a storm or some other incident. Similarly, termite trouble is often expected to be discovered and addressed before your home sustains structural damage. Destruction due to pests is generally not covered by home insurers.

5. Someone else can pay for the claim.
We often think only about our own insurance company when we're in a traffic accident, but there's often another insurance company involved, as well. In states with at-fault insurance, if you're in an accident caused by someone else, you may be able to get the other guy's insurer to cover your cost, instead of your own insurer. This approach isn't always easy, though. Get some important tips from the Consumer Federation in its "Guide to Navigating the Auto Claims' Maze."

Longtime Motley Fool contributor Selena Maranjian holds no position in any company mentioned. Click here to see her holdings and a short bio.


Gallery: Dispelling the Top 12 Myths About Life Insurance

Myth No. 1: I don't need a separate life insurance policy. It's taken care of through my job.Myth No. 2: Life insurance is too expensive.Myth No. 3: People in less than adequate health can't get life insurance.Myth No. 4: Term life insurance is always the right fit.


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]]>filing an auto insurance claimfiling an insurance claimFilingAnAutoInsuranceClaimFilingAnInsuranceClaimhomeowners insuranceHomeownersInsuranceinsurance claiminsurance claimsinsurance policyInsuranceClaimInsuranceClaimsInsurancePolicySelena Maranjian, The Motley FoolFri, 23 Dec 2011 14:30:00 EST5 Ways You May Be Overpaying for Health Insurancehttp://www.dailyfinance.com/2011/12/22/5-ways-you-may-be-overpaying-for-health-insurance/http://www.dailyfinance.com/2011/12/22/5-ways-you-may-be-overpaying-for-health-insurance/http://www.dailyfinance.com/2011/12/22/5-ways-you-may-be-overpaying-for-health-insurance/#commentsFiled under: ,

If you get your health insurance at work, then you've got some big decisions to make. Drag your feet even a few days and you may leave some significant savings on the table.

That's because at many companies this is open-enrollment season. At most jobs, workers get one chance a year to make changes to their health insurance. Of course, the easiest thing to do is just to pick the same health plan and coverage options you did last year. But often, that can be a big mistake.

Here are five ways that you may be paying too much for coverage, and how to make money-saving switches before it's too late.

1. Overinsuring Yourself.

Health insurance involves two costs: the premiums that get taken out of your paycheck, and what you have to pay at the doctor. Many workers buy the most expensive insurance they can, so that they never have to worry about anything but a small co-pay when they visit the doctor or go to the hospital.

But if you're relatively healthy, less comprehensive insurance could save you a ton in premiums. If you're paying for expensive coverage that you never use, then you're throwing away money that you could use for other things. You may be able to save a ton by choosing a health plan that doesn't cover as much. That in turn will boost your take-home pay a bit each paycheck -- and those savings will add up over the course of a year.

2. Failing to Plan Ahead and Paying Too Much Out-of-Pocket.

While it's hard to predict higher medical bills, one area where you can predict them is if you're expecting a baby.

If you're pretty certain your medical expenses are going to rise in the future, you may want to pay up for better coverage so you can save on out-of-pocket costs throughout the year. By changing to more comprehensive insurance, you may be able to get most or all of your maternity costs paid for -- and that's often worth the extra premiums.

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3. Assuming You'll Get the Same Coverage as Last Year.

You may assume that if you do nothing, nothing will change next year. But with employers seeing their benefits costs go up, you need to take a look to make sure your employer hasn't changed plan providers or types of coverage. Sometimes, you may need to switch to a more expensive option just to maintain the benefits you used last year.

4. Ignoring the Tax Savings of a Flexible Spending Account.

Beyond insurance, another decision you need to make during open enrollment is how much to set aside in a flexible spending account. These accounts let you take money out of your paycheck on a pre-tax basis that you can then use for medical expenses throughout the year. The plus is that you get a tax break, but the downside is that if you don't use the money, you lose it.

To get an estimate of how much to set aside for 2012, figure out how much you spent out-of-pocket on eligible medical expenses this year. That should give you a good starting point, from which you can add or subtract any expected changes.

5. Assuming You and Your Spouse Should Be on the Same Plan.

If you're married and your spouse also has health insurance at work, take a look to see which plan provides better coverage -- and which plan is better for each of you. Often, the best choice is for both spouses to stick with their own individual plans, but choosing who takes out family coverage can end up making a big difference.

Don't Miss Your Chance!

Dealing with health insurance is neither fun nor easy. But making the right choices can put some more money in your monthly budget for other things. So whenever open enrollment comes around, be sure to take advantage before the window of opportunity closes.

Motley Fool contributor Dan Caplinger deals with insurance way too much so you don't have to. You can follow him on Twitter here.


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]]>copayHealthHealth insuranceHealth savings accountsHealthSavingsAccountsmedical expensesMedicalExpensesopen enrollmentOpenEnrollmentpremiumDan CaplingerThu, 22 Dec 2011 07:00:00 ESTHow to Get the Best Deal on Car Insurance for Your Kidhttp://www.dailyfinance.com/2011/12/16/how-to-get-the-best-deal-on-car-insurance-for-your-kid/http://www.dailyfinance.com/2011/12/16/how-to-get-the-best-deal-on-car-insurance-for-your-kid/http://www.dailyfinance.com/2011/12/16/how-to-get-the-best-deal-on-car-insurance-for-your-kid/#commentsFiled under:

Car insuranceIf a car tops your teen's holiday gift wish-list, give as much consideration to insurance as you do the car's make and model and the debate over whether to buy new or used.

And brace yourself for insurance premium sticker shock.

Young drivers keep insurers up at night, and you'll pay the price once your prince or princess gets behind the wheel. The accident rate for drivers ages 16 to 19 is higher than for any other driver age group. Sixteen-year-olds top the list, with an accident rate 3.7 times higher than drivers of all ages, and 1.8 times higher for accidents involving alcohol. The majority of citations given to teens -- 52 percent -- are for speeding, according to Tasha Lockyer, auto insurance editor for NextAdvisor.com, an independent consumer information site.

Car sales are expected to be healthy this month and into the first quarter of next year as prices decline from summer highs, says Lacey Plache, chief economist for car site Edmunds.com. So if you also want to get a deal on car insurance for your child, here's what you need to know.

Consider What Counts

When it comes to what makes up the price of your premium, a few factors come into play, such as the type of car being insured, the age and driving record of the person being insured, and the amount of coverage in the policy, notes Phil Reed, senior consumer advice editor at Edmunds.com.

Where and how often you drive also count. Urban areas are usually more expensive than suburban ones, due to higher rates of vandalism, theft, and accidents. If you live in a city, expect to pay more. The more you drive, the more you can expect to pay. "If your teen is just going to be driving to school and back, make sure you include that information in your quote," says Lockyer.

Speak Up

The squeaky wheel gets the grease. Ask for discounts. For example, full time students can cost a little less to insure because many companies offer "good student" discounts (usually requiring a B average or 3.0 GPA), typically between 10-15%. "The discount is significant. Explain it to your teenager and offer to split the savings if they hold up their end of the bargain by meeting the GPA required by your insurance company," says Reed.
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Then too, if you've been a loyal customer with few or no claims over a long period of time, you might be able to use that as leverage in getting a better rate.

According to editors at shopautoweek.com, if you insure your child on your policy, you might be able to get the insurance company to assign the least expensive car in your house to that teen. Then make sure that's the only car that your teen drives.

Pick Your Car Wisely

You can go back and forth for days about buying new or used. When you're shopping for a car, decide what type you'll be buying, then call your insurance company and ask about the differences in the premium between new and used, and among various makes and models. You can save a good amount of money by choosing a car with a lower premium, says Lockyer. SUVs and high performance cars in particular can be more expensive to insure.

Consider too that discounts are sometimes given for particular safety features and theft prevention items like auto alarms. You also might benefit by agreeing to install a tracking device that monitors your child's driving.

Read Them the Riot Act

As the holidays are a celebratory season, have a serious talk with your teen about the responsibility involved in driving safely and wisely. The majority of teen driver fatal car crashes occur between 9 p.m. and 3 a.m. "Consider limiting your teen's driving after 9 p.m.," says Lockyer.

It might help your rates, as well as your peace of mind, to sign your teen up for a "safe driver" program.

Know the Laws

Many states have graduated driver's license laws. In general, this means that young drivers can only drive with a licensed adult for the first 6 to 12 months of being licensed. Many of these laws exclude driving at night and limit the number of passengers, and/or underage passengers, a teen driver can have in the car. "Be aware of the laws in your state," advises Brian Moody, lead editor for the car marketplace site, AutoTrader.com.

Once you have the insurance figured out, then there's that other matter -- making peace with the thought of your baby on the road.



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]]>car insurancecar insurance costscar insurance premiumsCarInsuranceCarInsuranceCostsCarInsurancePremiumscarsinsuranceinsurance discountsInsuranceDiscountssafe driversSafeDriversteen driverteen driver accidentsTeen driversTeenDriverTeenDriverAccidentsTeenDriversSheryl Nance-NashFri, 16 Dec 2011 14:30:00 ESTWhat You Don't Know About Health Insurance May Cost Youhttp://www.dailyfinance.com/2011/12/14/what-you-dont-know-about-health-insurance-may-cost-you/http://www.dailyfinance.com/2011/12/14/what-you-dont-know-about-health-insurance-may-cost-you/http://www.dailyfinance.com/2011/12/14/what-you-dont-know-about-health-insurance-may-cost-you/#commentsFiled under: ,

What You Don't Know About Health Insurance May Cost YouWhen it comes to health care, it sometimes feels like nothing is simple. And that can be a real problem: According to a recent survey, some health care basics are going right over the heads of many Americans.

For example, only 55% of those surveyed felt sure that they knew what a deductible is. Fewer still said they could define or explain terms like premium (41%) or coinsurance (25%).

"This is significant because these terms describe money coming out of consumer's pockets toward their own health insurance coverage and medical care," says Brian Mast, vice president of communications at eHealthInsurance, which sponsored the Kelton Research survey.

And when it comes to the Democrats' health care reform plan, all the media coverage about it may not be getting through to people. Only 45% of those surveyed realized that adult children are already able to stay on their parents' health insurance plan until they're 26. By contrast, 42% believe that people with pre-existing medical conditions can no longer be declined coverage by insurers, but that aspect of the legislation won't go into effect in 2014. Further, nearly 30% believe that people without employer-provided health insurance are required to purchase coverage now -- that won't be the case until 2014 either.

"It is a scary thought that many Americans continue to not know what's available to them as a result of the Affordable Care Act," says Ankeny Minoux, president of the nonprofit Foundation for Health Coverage Education. Their health insurance status is at stake. Without proper protection, many people suffer severe financial hardships from unforeseen medical expenses.

Devil of a Time with the Details

Beyond the big-picture misunderstandings, astonishing numbers of people are at a loss for the details of what they personally spend their health care dollars on. Fully 83% of those surveyed were unable to say for sure if their plans covered doctor's office visits, and 80% weren't sure about prescription drugs. There was confusion too, about whether their plans covered diagnostic services like sonograms, MRIs, X-rays, overnight hospital stays or immunizations.

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Much as people like to groan about the high cost of health insurance, only 47% of those surveyed even knew how much they contributed from their salary toward their premiums, and about a third could say how much they paid toward the monthly premiums of their spouses and children. And as for how much their employers chipped in, only 18% knew.

Distressingly few people review their health insurance on an annual basis -- only 36%. "They were more likely to make an annual review of their cell phone (40%), and Internet (39%) costs than their health insurance," says Mast. "For most of us, annual health insurance and medical expenses are a lot greater than our phone and Web access expenses."

How can you know if you're getting the most out of your health insurance dollars if you don't know what you're paying? Can you find more affordable coverage options for healthy dependents? Are health insurance costs equitably split between you and your company? If you don't know the answers to those questions, you're doing your wallet no favors.

If you don't know what you don't know, study up. Start by getting more informed about healthcare reform, and tapping resources like the Foundation for Health Coverage Education, the Department of Labor's Employee Benefits Security Administration, or www.ehealthinsurance.com and their free book, Individual Health Insurance for Dummies.

Before signing up for coverage, consult a health specialist to make sure you are making the right decisions. The U.S. Uninsured Help Line can answer general questions about programs, eligibility requirements, benefits, costs, and you can get a referral to a health insurance broker in your area who has signed on with the nonprofit's volunteer network to help you work through the health care maze.

Being confused by health care can be costly -- so get the facts.



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]]>Affordable Care ActAffordableCareActcopaycoveragedeductibleeconomyEmployee Benefits Security AdministrationHealthhealth carehealth care reformhealth insuranceHealthCareHealthCareReformHealthInsurancePatient Protection and Affordable Care ActSheryl Nance-NashWed, 14 Dec 2011 07:00:00 ESTWhat Insurers Could Do With Your 'Social Media Score'http://www.dailyfinance.com/2011/12/12/what-insurers-could-do-with-your-social-media-score/http://www.dailyfinance.com/2011/12/12/what-insurers-could-do-with-your-social-media-score/http://www.dailyfinance.com/2011/12/12/what-insurers-could-do-with-your-social-media-score/#commentsFiled under:

Here's yet another reason to watch what you say and do online: Insurance companies are already surfing social media sites to get the scoop about their customers, and what their data-miners find may soon be compiled into a new way to rate you as a risk: a social networking score.

Right now, vendors are building tools to automate the process of searching social media. Such technology would allow insurers and other companies to more easily mine data from Facebook, Twitter and other sites, explains Michelle Megna, managing editor of Insurance.com.

And, just as insurers use credit scores as a factor in assigning you to a risk box, that data could be used to create a social networking score, says Megna.

She isn't alone in thinking the next step may be a social media score. "I think we're going to see data mining companies sweeping the Internet and collating public data about what you like and say and where you go online and use that info to create a social media score that companies can buy," predicts Douglas Heller, executive director of Consumer Watchdog. "And they'll use that to decide how much to charge or whether or not to sell insurance to an individual based on that."

Your digital DNA is gold to insurers. Your online activity -- everything from Facebook Likes, tweets, online searches or membership to a health website -- serves as background to insurers as they're setting rates or claims. "They are using this data to compile detailed dossiers of individuals," says Michael Fertik, founder and CEO of Reputation.com.

He says there is evidence in the media and industry reports that insurers are beginning to use social data to determine rates. "The backbone is in place -- [a massive data industry] to help facilitate the use of social media data and online information by insurance companies."

There is no question that at least some insurance companies already use the Internet and social media as part of their underwriting and/or claims handling process, says Michael Packer, attorney with Marshall, Dennehey, Warner, Coleman & Goggin, which represents insurers.

Proof in Pictures and Words

How can your online presence prove problematic? If you say you've got a knee injury but post photos of yourself crossing the finish line in a marathon, the gig is up.

A life, health or disability carrier who is writing a policy would be interested in knowing whether an applicant engages in dangerous activities such as sky diving, shark diving, an appetite for travel to war-torn countries. If the underwriter sees the applicant's Facebook page has tons of photos of them shark diving off the Great Barrier Reef or doing relief work in the Congo, they might change their mind, says Packer. Similarly, if an applicant says he's a nonsmoker, he might have a problem if his Flickr account has photos of him clubbing in South Beach with a cigarette in hand. And if you "Like" Twinkles and Oreos on Facebook, that knowledge of your unhealthy taste in snacks might give pause to a life or health underwriter, explains Mike Fitzgerald, a senior analyst with Celent, a financial research and consulting firm.

It's not that insurers are nosy: It's just business. "They are using social media for due diligence and to verify information so that a risk is properly and fairly rated," says Packer. It doesn't do you any good to be untruthful in your application. If you later make a claim and then the insurance company finds out the truth, the company will have the right to deny the claim or rescind the policy from the date of the original inception, says Packer.

Online data has also been used to dispute claims. There are numerous cases reported where someone has claimed to be disabled (a back injury suffered on the job, for example), but a social media posting contains pictures of them dancing or engaging in other strenuous, recreational activity," says Fitzgerald.

The reverse is also true. "I have been involved in claims where information I found on Facebook or online message boards have confirmed the validity of a claim," says Packer.

You may not like the idea of being watched so intensively, but there's an upside if you're among the honest. Insurance fraud hurts not only the insurance companies, but everyone, because it adds 10% to the cost of the average policy. If insurers can bust more fraudsters, it could mean that eventually, your policy would take a smaller bite out of your wallet.

Brag on Yourself

The fact that your social media profile is being watched doesn't have to be all bad, though. It also gives you the opportunity to show what a good gal or guy you are. For example, if you "check in" to a health club using a service like Foursquare, it can indicate that you are a good risk, because you're exercising and may have a healthy lifestyle -- good news for health and life insurers. If you blog about winning the office weight-loss contest, or comment about how you traded in your sports car for a minivan, would it help your rates? Maybe.

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Regardless, your social media score will be only one measure insurers can use to determine your premiums, whether you qualify for coverage, or whether your claim is valid. Insurers are regulated by state laws, and some dictate which criteria can be used in their decisions. State regulations govern what information insurers can use when setting prices, deciding whom to accept or reject and even how an individual's privacy is safeguarded.

"I have no idea if there are state laws that could prohibit the use of social media content for setting insurance rates, but I'd expect there'd be some sort of debate over this at some point," says Megna.

Nor is it clear if social media snooping will be done routinely or not. "It's most likely to happen if there are red flags involving a claim. Then an investigator will step in and start looking, and that looking will include social media," says Jeanne Salvatore, senior vice president and consumer spokeswoman for the Insurance Information Institute.

Be sure you have proper privacy settings so that only those you want to have access to your online life. Don't forget too, to tell your BFFs not to share your stuff. Who knows how "private" their pages are.

Privacy settings or not, your right to privacy could go out the window if you're involved in a lawsuit with an insurer. "Courts have ruled in some cases that private social media postings are discoverable," says Megna.

Lastly, says Packer, staying out of the spotlight is easy. When it comes to completing your application or filing a claim, "Be honest."


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]]>facebookFlickrFourSquarehealth insuranceHealthInsuranceinsuranceinsurance fraudInsuranceFraudLife InsuranceLifeInsurancesocial mediasocial networking scoresocial networksSocialMediaSocialNetworkingScoreSocialNetworkstechnologySheryl Nance-NashMon, 12 Dec 2011 07:00:00 ESTHow to Use Life Insurance to Donate to Charityhttp://www.dailyfinance.com/2011/12/07/how-to-use-life-insurance-to-donate-to-charity/http://www.dailyfinance.com/2011/12/07/how-to-use-life-insurance-to-donate-to-charity/http://www.dailyfinance.com/2011/12/07/how-to-use-life-insurance-to-donate-to-charity/#commentsFiled under: ,

How to Use Life Insurance to Donate to CharityWhen most of us buy life insurance, we're thinking about one thing: Making sure our families are taken care of after we're gone. But in this season of giving, you might also want to think about setting up a policy to take care of your favorite charity.

It's a method of giving that can benefit both parties.

What's in it for you? Properly structured, life insurance policies allow money to grow tax free, and the death benefit is usually transferred to the beneficiary tax free. While the proceeds will be included in your gross estate, your estate will receive a charitable deduction for the amount of the proceeds upon your death, explains Robert DiQuollo, a certified financial planner and CEO of Brinton Eaton, a wealth advisory firm.

If you own a policy, you may also assign the ownership from yourself to the charity. If you live more three years past the date you reassign the policy, the proceeds will not be included in your gross estate.

Why make the transfer while you're still alive and kicking? Because when you transfer the insurance contract to the charity, you get an income tax deduction in the year you hand it over. How big a break depends on the type of life insurance policy you offer up.

A Tax-Free Path to Bigger Donations

To get a sense of how it can work, let's take this hypothetical example: Say a 58-year-old with a $10 million estate wants to give a big donation to her favorite charity. She could simply donate half of the estate -- $5 million -- directly. Or, she could buy a $10 million life insurance policy with an increasing death benefit at a cost of $718,000 per year for seven years, approximately the same roughly $5 million cost. If the value of the life insurance policy grows at 7.5% over a 30-year-period, explains Jeffry Weinhuff, CEO of Swift Estate Capital, the charity would receive almost $27 million upon her death, a generous gift indeed.

Another example is a wealthy individual who plans to both give large amounts of money to charity at their death and also purchase life insurance to provide for their heirs. That person might leave their entire estate to charity - thus eliminating all estate taxes -- while their life insurance death benefit would pass tax free to their heirs.

Then too, you could also get a charitable giving rider for a life insurance policy with a face value of more than $1 million. This is an attractive option because you don't pay extra for the rider, and usually there is no increase in the premium or reduction in the cash value of the death benefit.

Charity Could Insure You

But giving to charity via life insurance isn't just for rich folks.

"A policy gift to a charity can be extremely powerful, allowing ordinary people to make much larger contributions to their favorite charity than outright cash or even appreciated property," says Dwight Raiford, a senior financial planner with MetLife Financial Group.

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Another option: Have your charity of choice take out an insurance policy on you. Then, each year, you make a gift of the premium amount to the charity, which uses those funds to pay for the policy. The charity receives the insurance proceeds when you die, and when you make those annual donations of the premium, you get the income tax deduction. This sidesteps the issue of the three-year look-back period one faces when transferring a policy: You never owned it, so it won't be included in your estate.

"Say you have a $100,000 policy and a $1,000 premium. For $1,000 you can step up to the plate and get a lot of bang for your buck," says Susan Bruno, a certified public accountant and private wealth specialist with Beacon Wealth Advisors. "It's a way to give without coming up with a lot of money."

The advantages of giving this are significant. "Donations grow each year; you can initially put out less funds; [funds accrue] tax free, which [they] cannot do in your estate; and life insurance may be financed, but your other donations are made in cash," points out Weinhuff.

The Reality Check

Your heart may say to give -- but what does your head say?

The first step should be determining your estate planning needs. Make sure your plan meets your current financial needs, provides properly for your heirs, and also the charity.

Be aware that you'll need to qualify for an adequate amount of life insurance, which you may divide between your heirs and the charity. The qualification process will include both medical and financial underwriting. Realize too, that insurance is not available in unlimited amounts.

Also, recognize that the type of life insurance you chose is important. Term insurance ends at the conclusion of the term it's purchased for, so if a donor lives past the term, the charity you pick as a beneficiary receives nothing. Permanent policies, such as whole life or variable universal life, while more expensive, may be better options for this type of giving, suggests Raiford.

Finally, before you give up ownership of a policy, be sure you've checked out the organization, and that you're certain about the decision. It's an irrevocable transfer.






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]]>charitable givingCharitableGivingcharityestate planningEstatePlanninginheritanceinsurancelife insuranceLifeInsurancephilanthropytax deductionstax freeTaxDeductionsTaxFreeSheryl Nance-NashWed, 07 Dec 2011 12:45:00 EST7 Hidden Dangers to Your Holiday Financeshttp://www.dailyfinance.com/2011/12/07/7-hidden-dangers-to-your-holiday-finances/http://www.dailyfinance.com/2011/12/07/7-hidden-dangers-to-your-holiday-finances/http://www.dailyfinance.com/2011/12/07/7-hidden-dangers-to-your-holiday-finances/#commentsFiled under:

7 hidden dangers to your holiday financesThe holidays are one big party as you merrily move from one event to the next. But amid all the good cheer, the season hides a sobering number of pitfalls for your finances, and not just ones that involve overspending.

Here's a look at seven dangers that can send your season into a financial freefall, along with steps you can take to make sure the holidays are more happy than hazardous.

Gallery: 7 Hidden Dangers to Your Holiday Finances

1. Hosting Hazards, Part A: Alcohol's Aftermath2. Hosting Hazards, Part B: Weather Woes3. Serious Car Trouble4. Epic Food Failures5. A Too-Jolly Looking Waistline





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]]>car insuranceCarInsuranceChristmasChristmasTreeSafetydrunk drivingDrunkDrivingfood poisoningFoodPoisoninghealth insuranceHealthInsuranceholiday safetyHomeownersInsuranceinsuranceliabilitypersonal financesocial host liability lawstheftSheryl Nance-NashWed, 07 Dec 2011 06:00:00 ESTThe 9 Craziest Celebrity Insurance Policieshttp://www.dailyfinance.com/2011/11/28/the-9-craziest-celebrity-insurance-policies/http://www.dailyfinance.com/2011/11/28/the-9-craziest-celebrity-insurance-policies/http://www.dailyfinance.com/2011/11/28/the-9-craziest-celebrity-insurance-policies/#commentsFiled under: ,

The 9 craziest celebrity insurance policiesAlmost all of us have some assets worth insuring -- our homes, our cars, our health. But the insurance business goes far beyond the basics. If your possessions are worth a bit more, you might have separate policies for your jewelry or art. Businesses take out insurance to protect their executives against lawsuits. And when they consider certain employees to be vital to their bottom lines, they may even take out life insurance policies on them.

Celebrities are no different. They take out insurance to protect their most important assets -- themselves.
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If your living depends on a specific body part, be it your hands, legs or smile, you can't take chances. You can take out a policy.

This unusual segment of the business has been around for quite some time. Movie stars Betty Grable and Fred Astaire both had insurance policies on their legs in the first half of the 20th century. Astaire's $150,000 insurance coverage wasn't much compared to Grable's cool $1 million policy. These days celebrity insurance regularly covers much more than that.

So who's doing it today? 24/7 Wall St. has compiled a list of nine of the largest and most interesting insurance policies taken by or on behalf of celebrities.

Gallery: The 9 Craziest Celebrity Insurance Policies

9. Troy Polamalu8. Keith Richards7. Heidi Klum6. Bruce Springsteen5. America Ferrera

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]]>america ferreraAmericaFerrerabruce springsteenBruceSpringsteencelebritydavid beckhamDavidBeckhamfingershairhandsheidi klumHeidiKluminsuranceinsured body partsInsuredBodyPartsJeff BeckJeffBeckkeith richardsKeithRichardslegsmariah careyMariahCareyMark McGwireMarkMcgwiretroy polamaluTroyPolamaluDouglas McIntyreMon, 28 Nov 2011 14:45:00 ESTRising Health Care Costs Drag Down Economic Growthhttp://www.dailyfinance.com/2011/11/22/rising-health-care-costs-drag-down-economic-growth/http://www.dailyfinance.com/2011/11/22/rising-health-care-costs-drag-down-economic-growth/http://www.dailyfinance.com/2011/11/22/rising-health-care-costs-drag-down-economic-growth/#commentsFiled under: , ,

Rising Health Care Costs Drag Down Economic Growth Nearly everyone is feeling the pain of health care costs that are high, and rising. According to a new report from The Commonwealth Fund, between 2003 and 2010, the cost employers paid for family coverage rose 50% to an average of $13,871 a year -- and employees' share of that tab increased 63%. In the process, health care has gobbled up an enormous amount of capital that employers could have used for salary or wage increases, benefits, or hiring new workers.

It's a problem has become pervasive across the nation in a way that it wasn't before. Back in 2003, 13 states had average premiums that were under 14% of their average incomes. Today, that number has dropped to zero. In 2003, only one state had an average annual premium above 20% of average household income.Today, there are 23, home to 62% of the nation's population. And with higher deductibles, those premiums pay for less in terms of financial protection than they did at the start of the decade.

"No matter where you live in the United States, health insurance is expensive," says Cathy Schoen, senior vice president at The Commonwealth Fund, a private foundation that seeks to improve poor people's access to quality health care.

There's not much to stop the speeding train either. In fact, if insurance premiums for employer-sponsored health plans in each state keep growing at the rate they have during the last seven years, by 2020, the average premium could increase to $23,793, a 72% increase, according to The Commonwealth Fund.

Widespread Impact

Hardest hit were New York, Rhode Island, Connecticut, Florida, New Hampshire and the District of Columbia, where the average family premiums were about 25% above the lowest cost states such as Idaho, Arkansas, Hawaii, Montana and Alabama. Employer-based health insurance costs have risen three times faster than wages since the start of the decade.

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There are, however, ways to save on health care, both employer-offered and individual plans. And, while the Affordable Care Act is no panacea for the health care system, it is a move in the right direction, says Schoen, who is optimistic about the law's new oversight of private insurance, which has as a goal lowering administrative overhead and returning the excess to customers in rebates, which takes effect next year. Furthermore, states will review premium increases of 10% or more, and other payment reforms could slow the rate of growth by 1% a year or more if reforms spread and private insurers start to deliver better value -- including lower overhead, she says.

The bottom line: Small changes could bring big rewards. Says Schoen, "The savings would be substantial -- $2,000 to $3,000 a year per family that could be redirected to wages or jobs."




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]]>deductibleeconomyfamily moneyFamilyMoneyhealth carehealth care costshealth insuranceHealthCareHealthCareCostsHealthInsuranceinsurance premiumsInsurancePremiumsSheryl Nance-NashTue, 22 Nov 2011 06:30:00 EST8 Unusual Insurance Policies You Might Want to Buyhttp://www.dailyfinance.com/2011/11/16/8-unusual-insurance-policies-you-might-want-to-buy/http://www.dailyfinance.com/2011/11/16/8-unusual-insurance-policies-you-might-want-to-buy/http://www.dailyfinance.com/2011/11/16/8-unusual-insurance-policies-you-might-want-to-buy/#commentsFiled under:

8 Unusual Insurance Policies You Might Want to BuyInsurance is a strange beast: You spend a lot of money and get nothing back, unless your house burns down or some other tragedy befalls you, your loved ones, or your treasured belongings.

Still, insurance is a necessity -- even if we hope that we never need to take advantage of the coverage these policies offer. Even worse is not having the safety net you need. But a lot of people are unaware of some vital kinds of insurance that they should have.

We recently covered 15 kinds of insurance you may not need. Now here are eight insurance policies that could save you from headache, heartache and financial catastrophe.

1. Renters' insurance. Homeowners know that they need a policy to protect their domicile from costly catastrophes, but many renters don't think to insure their valuables. You may not own real estate, but your apartment does contain property that would be costly to replace in the event of a fire or water damage. A typical policy will cost around $150 per year to cover $30,000 in property and $100,000 in liability.

2. Antiques insurance. Whether you own a home or rent, your regular insurance policy may exclude certain property from coverage, such as antiques, or may not cover their full replacement value or restoration expenses. An antiques insurance policy can do that.

3. Longevity insurance. Many of us are doing our best to sock away money for retirement, hoping that it will be enough to last for the rest of our lives. If you live to a ripe old age, though, you face the risk of running out of money. Enter longevity insurance, which will start paying you a certain sum monthly once you hit a certain age, such as 85. It's relatively inexpensive, too, since many people won't need it or won't need it for very long (and the younger you are when you buy it, the cheaper it is, too). For example, MetLife (MET) recently offered a policy that a 55-year-old man could buy for $50,000 that would pay him $51,000 per year beginning at age 85.

4. Pet insurance. If Fluffy or Rover needs an operation one day, it will cost a pretty penny. Pet insurance, which typically costs up to a few hundred dollars per year -- but gets more expensive as the pet gets older -- can save the day. Many employers these days are offering this as a benefit; check to see if it's available to you, or look into whether it seems worth buying it on your own.

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5. Business life insurance. Also sometimes called "key person" insurance, this can protect an entrepreneur's business if he or she passes away. It can be purchased for critical employees, and a set of owners might carry it on themselves so that if one dies, the insurance payout will cover buying out the deceased partner's stake.

6. Disability insurance. Disability insurance can be expensive, but that's because it's not such a longshot that you'll need it one day. Disabilities can be minor or major, temporary or permanent. Check to see if your employer offers it to you as a benefit and whether it will be enough for you. You may be able to pay more to boost your coverage, or you might want to buy a policy on your own.

7. Long-term care insurance. This policy will come to your rescue if you end up needing some in-home care as you get older or if you face nursing-home expenses. Policies can be pricey, depending on what they offer, but the younger you are when you buy them, the less expensive they'll be. You may only want to buy coverage that will pay you for up to three to five years, since less than 10% of people end up needing it for more than three years.

8. Wedding insurance. With the average wedding costing around $24,000 these days, it's worth looking into this coverage, lest a hurricane or a death in the family derails plans. These policies tend to cost less than $500, but be sure to find out exactly what is and isn't covered.

Skip the alien abduction insurance

The list doesn't even stop there. For most risks that you might imagine, there's probably insurance you can buy to protect yourself against it. Traveling in or moving to a risky, unstable country? You can buy ransom insurance, in case you're kidnapped. Make a living as a trombone player? You can insure your valuable arms, via body-part insurance. Have an expensive wine collection? That can be insured, too. In fact, thousands of people have even bought alien abduction insurance!

You're not likely to be abducted by aliens, but it's not so unthinkable that your apartment might catch fire or you might outlive your savings. Learn more about different kinds of insurance that could serve you well here:

Longtime Motley Fool contributor Selena Maranjian holds no position in any company mentioned. Click here to see her holdings and a short bio.


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]]>antiquesbusiness life insuranceBusinessLifeInsurancedisability insuranceDisabilityInsuranceHealthlong-term care insuranceLong-termCareInsuranceLongevity insurancepersonal financePersonalFinancePet InsuranceRenters InsuranceweddingSelena Maranjian, The Motley FoolWed, 16 Nov 2011 14:00:00 ESTPoor Sick People: U.S. Offers Raw Deal for the Unhealthyhttp://www.dailyfinance.com/2011/11/11/poor-sick-people-u-s-offers-raw-deal-for-the-unhealthy/http://www.dailyfinance.com/2011/11/11/poor-sick-people-u-s-offers-raw-deal-for-the-unhealthy/http://www.dailyfinance.com/2011/11/11/poor-sick-people-u-s-offers-raw-deal-for-the-unhealthy/#commentsFiled under: ,

Poor Sick People: U.S Offers Raw Deal for Unhealthy If you're very sick and not very wealthy in America, your best move may be to just flee the country. Otherwise, expect to pay through the nose and possibly wind up deep in debt. That's the takeaway of newly released research from The Commonwealth Fund, a private foundation that seeks to improve poor people's access to quality health care.

Seeking to learn more about the experiences of sicker adults around the world, the group surveyed more than 18,000 adults who were in fair or poor health, had recently been hospitalized, and had had major surgery or a serious illness in the past year. The group looked at adults in 11 high-income countries where patients with complex care needs typically account for a disproportionate share of national health spending.

The findings: U.S. patients with complex care needs were much more likely than those in 10 other high-income countries to forgo needed treatment because of costs, according to the survey. Americans are also more likely to struggle with medical debt.

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In fact, 27% of the Americans surveyed were unable to pay or encountered serious problems paying medical bills in the past year, compared with between 1% and 14% of adults elsewhere. In the U.S., 42% reported not visiting a doctor, filling a prescription, or getting recommended care because of cost issues -- at least twice the rate of every other country but Australia, New Zealand, and Germany.

"Given how much the U.S. spends on health care, one would expect better performance," says Michelle McEvoy Doty, Ph.D, vice president of Survey Research and Evaluation with The Commonwealth Fund.

Indeed, Americans spend more on healthcare than any other country: $7,960 per person in 2009, the latest figure available. Norway came in a distant second at $5,352, according to data cited by The Commonwealth Fund.

A big problem is the number of uninsured -- 50 million. Those folks typically get their health care in emergency rooms, which drives up costs for themselves, as well as for the hospitals and doctors that ultimately care for them.

"There is an unevenness in health care in the U.S., compared to other countries, says Elise Gould, director of health policy research with the Economic Policy Institute, a nonprofit, nonpartisan think tank. "We have the best care in the world, but it really depends on who you are."




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]]>affordabilitybankruptcyCommonwealth FundCommonwealthFundhealth carehealth care costshealth insuranceHealthCareHealthCareCostsHealthInsuranceinsurancemedical billsMedicalBillspoorSheryl Nance-NashFri, 11 Nov 2011 16:35:00 EST15 Kinds of Insurance You May Not Needhttp://www.dailyfinance.com/2011/11/11/15-kinds-of-insurance-you-may-not-need/http://www.dailyfinance.com/2011/11/11/15-kinds-of-insurance-you-may-not-need/http://www.dailyfinance.com/2011/11/11/15-kinds-of-insurance-you-may-not-need/#commentsFiled under:

15 Kinds of Insurance You May Not NeedIt's bad enough that we fork over gobs of money for all kinds of necessities, such as our mortgage payments, groceries, gas, and electricity. But it's a real shame when we fork over dollars needlessly, buying things we don't need -- like many kinds of insurance.

I don't mean to make light of insurance, though. Many forms of it are quite critical. If you own a home, you'd better insure it, lest a fire or some other catastrophe destroy it. Cars need to be insured, too, as does our health. For many of us, life insurance, disability insurance, and long-term care insurance also make a lot of sense. But think twice before opting for the following protections:

1. Life insurance. Keep in mind that life insurance is designed to protect an income stream. If you have children or any other people who depend on the income you provide, then it's a smart purchase. But if you're single with no dependents, you probably don't need it. It's generally silly to buy it for children, too, as no one is depending on their income. And when you buy life insurance, term life is usually a better buy than whole life. It covers you for as long as needed, such as until your children grow up. Whole life costs more and adds an "investment" element that you can improve upon on your own, through other, less-costly investments.

2. Accidental-death insurance. If you're worried about dying prematurely, look into term life insurance, which will kick in whether you die by accident or disease. This insurance is costly, especially considering that deaths from accidents are very unlikely.

3. Mortgage life insurance. If you want to ensure that your mortgage will be paid off if you pass away, consider buying or boosting your regular life insurance. It will cost less, and the money will help your survivors pay for other expenses as well.

4. Private mortgage insurance. This is typically required if you buy a home with a down payment that's less than 20% of the home's value. If you can pull together a 20% down payment, do so to avoid this. If you can't, look into alternatives, such as opting to pay a slightly higher interest rate on your mortgage, or using an "80-10-10" strategy, where you take out a regular mortgage for 80% of the home's value, pay 10% down, and also take out a smaller loan for 10% of the home's value. If you're currently paying PMI, monitor your growing equity in your home and be sure to have it removed once your outstanding loan falls below the 80% mark.

5. Flood insurance. If you live in a region susceptible to flooding, then by all means buy this coverage. But if you don't, save your dollars.

6. Credit card loss-prevention insurance. Instead of forking over as much as $180 per year for this, relax, knowing that by law, your losses due to theft are capped at $50 per card.
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7. Credit card insurance. This insurance is designed to pay down your credit card debt if you can't do so. But it's likely to only make minimum required payments, and the company will be trying to avoid doing even that. It's much more effective to just pay down your debt on your own, and to keep it under control.

8. Involuntary-unemployment insurance. With our economy still sputtering, this might appeal to many, as it's designed to make minimum payments on your credit card or auto-loan debt if you lose your job. But the money you spend on this could be better spent simply paying down your debt -- and funding an emergency fund. Most of us should maintain such a fund, with enough moola to cover three to six months (or more) of our expenses. Park the money in CDs or money market funds, or some other easily accessible place.

9. Cancer insurance. If cancer or some other disease strikes you, your existing health-care coverage is likely to cover most medical expenses related to cancer. Read up on the details of your coverage before buying any additional disease-specific insurance. Consider it only if the price is right and it covers more than your current policy.

10. Vehicle-collision insurance. This covers the cost of repairing your car if it's in an accident. If your car is old and you can handle buying a new (or used) car should you have to, you may not want to pay for this coverage.

11. Rental-car insurance. This can seem like a handy add-on to your car-insurance policy, but pause a moment to do some math. If it costs you, say, $50 per year, and you end up needing it for five days over a 10-year span, then you will have spent $500 for something that might really cost you just a fraction of that. You'd do far better to just put $50 in an envelope each year, earmarked for rental expenses.

12. Rental-car damage insurance. The rental agency will explain why this is a smart purchase, but do your homework before arriving at the agency. Your regular car-insurance policy might already cover this cost, and some credit cards might cover it as well.

13. Flight insurance. Dying in a plane crash is extremely unlikely. If you're concerned about premature death, look into term life insurance. If you already have a policy, it may well already be covering you against this remote risk.

14. Extended warranties. In many cases, it's worth resisting the salesperson's recommendation to buy these. Most appliances and electronics will not give you trouble, and if you pay to repair those that do, it may still cost you less than buying lots of extended warranties. Consider it only for big-ticket items, where fixing or replacing would be a major hardship.

15. Identity-theft insurance. Identity theft is a real concern these days, but you still might not need this. Your credit card might offer some identity-theft protection features -- call its customer-service number and ask. You can also monitor your own credit record by requesting copies of your credit report from the three major reporting agencies. By law you're entitled to one free review each year.

Never sign up for insurance without thinking through the alternatives. And read the fine print to see exactly how much coverage is being offered and how good a deal you're being offered.
Do protect yourself, but don't overprotect yourself.
Learn more:
Longtime Fool contributor Selena Maranjian holds no position in any company mentioned.

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]]>Accidental death and dismemberment insurancecredit cardsCreditCardsExtended WarrantyExtendedWarrantyFinanceflight insuranceFlightInsuranceflood insuranceFloodInsuranceHealthIdentity theftinsuranceLenders mortgage insuranceLife InsuranceLifeInsurancepersonal financePersonalFinancePMIprivate mortgage insurancePrivateMortgageInsurancerental carRentalCarunemploymentwhat not to buyWhatNotToBuySelena Maranjian, The Motley FoolFri, 11 Nov 2011 06:00:00 ESTDo You Need Long-Term Care Insurance?http://www.dailyfinance.com/2011/11/09/do-you-need-long-term-care-insurance/http://www.dailyfinance.com/2011/11/09/do-you-need-long-term-care-insurance/http://www.dailyfinance.com/2011/11/09/do-you-need-long-term-care-insurance/#commentsFiled under: , ,

Do You Need Long-Term Care Insurance? According to the Department of Health and Human Services, those of us who reach age 65 will have a 40% chance of entering a nursing home, and 10% will stay in one for five years or more. So does this mean you need long-term care insurance? Possibly.

Those numbers don't take into account the millions of aging adults who will need some kind of in-home care as their health falters. By 2020, 12 million older Americans will need long-term care, according to one government estimate. Most will be cared for at home by family members.

Long-term insurance is marketed as a way to fill in the financial gaps if you have a chronic illness or disability and need help with the activities of daily life, like bathing and getting dressed.

"The additional expense of long-term [care] can be $40,000-$90,000 a year," says Rich Arzaga, founder of Cornerstone Wealth Management. "The average American cannot survive this risk and expense."

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Nor can you count on the government to bail you out when the time comes: Medicare doesn't pay for "custodial care." Medicare pays only for medically necessary, skilled nursing facility or home health care. It may not give you the choice of the best care in your area. And while Medicaid pays for certain types of care for the low-income elderly, who is eligible and what services are covered varies from state to state, and is determined by such things as income and personal resources.

"Many folks wrongly believe that letting the government pay for their anticipated long-term care needs is the best solution, but Medicaid programs are in trouble funding-wise in every state," says Wilma Anderson, a registered financial consultant. "In the future Medicaid may become even harder to qualify for. If you don't plan for LTC, you may have limited or no choices to pay for care when your health changes."

Here are four things to consider when planning for long-term care:

How will you pay the bills?: Many financial planners and elder care experts say long term care insurance is a good place to start. It typically helps pay for things that your medical insurance won't, like in-home care, or remodeling your home so you can stay in it longer. But as with all forms of insurance, it's vital do your research.

Investigate the cost of a stand-alone long-term care policy: The younger you are, the lower the premium will be. The cost really depends on factors like family health history, age, how much insurance you think you'll need, how long you'll need it, where care is received, and more, explains Marion Somers, PhD, author of Elder Care Made Easier: Doctor Marion's 10 Steps to Help You Care for an Aging Loved One.

Shop around for the best policies and prices. Benefits vary: Weigh the scope of coverage, benefit and waiting periods, inflation protection and other factors against your income and health needs.

Read the fine print: "Insurance companies may try to offer added-value features beyond the basic benefits, but most of them don't add much value at all. Be thoughtful and realistic about your needs and priorities," says Ryan Malone, founder of InsideElderCare.com.

Truthfully, says Somers, "Not everyone needs long-term care insurance, but everyone needs a plan."





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]]>family moneyFamilyMoneyhealth insuranceHealthInsurancehome healthHomeHealthlong term carelong term care insuranceLongTermCareLongTermCareInsurancenursing homeNursingHomeretirementSheryl Nance-NashWed, 09 Nov 2011 06:30:00 ESTGive Your Life Insurance a Checkuphttp://www.dailyfinance.com/2011/11/04/give-your-life-insurance-a-checkup/http://www.dailyfinance.com/2011/11/04/give-your-life-insurance-a-checkup/http://www.dailyfinance.com/2011/11/04/give-your-life-insurance-a-checkup/#commentsFiled under:

Give Your Life Insurance a CheckupProviding for your family from beyond the grave is an important part of any solid financial plan, with a cool Obi-Wan Kenobi vibe to boot. To do it, though, you'll have to venture into the confusing world of life insurance.

As your life changes, so do your insurance needs. You may no longer need life insurance, or you might need more. Plus, you might have bought a policy years ago because you were told it was a good investment that would provide income in retirement. How does that fit into your current plan?

Do you still need life insurance?
How would your family get by if you died? Or if your spouse died? If your family members would be financially fine on their own, then you may no longer need life insurance. Generally, there are two important milestones that mark the end of needing life insurance: (1) when your kids are out of the house and you're either single or your spouse's income can support the empty nest, or (2) when you retire.

Do you have enough life insurance?
On the other hand, if you haven't thought about life insurance in several years, your financial needs may have changed. Even if you already have life insurance, your current policy may not provide enough coverage. In that case, you may be able to add to your current policy, buy an additional policy, or replace your old policy with a new, larger one. If you have developed health problems since you last bought a policy, the cost of new coverage may be prohibitively expensive. In that case, you may be able to add to your current insurance or buy additional coverage through a group policy offered by your employer or a professional association.

There are lots of complicated methods out there to calculate how much life insurance you need. However, the simplest formula is to multiply your post-tax income by the number of years your family will need to replace your income.

Tackling term life insurance
If you own term life insurance, you pay an annual premium for insurance that pays a benefit when you die. If you're sure you no longer need the insurance, then the simplest solution is to save money by no longer paying the premiums.

Most policies are sold for five-, 10-, or 20-year terms, and once the term is up, the coverage ends. Generally, once the policy is issued, the term can't be extended at the original rate. However, you may be able to get a new term policy once the current one ends, or convert the term policy to cash-value insurance (keep reading for more). Both will result in higher premiums, but they may be attractive options if the policies don't require a new medical exam.

Cashing in the cash value
Cash-value insurance is a broad label for a breed with names such as whole life, universal life, and variable life insurance. However, they all have one thing in common: They pair life insurance with an investment account, known as the "cash value." If you own one of these policies, chances are you were attracted to the investment component and the fact that it grows tax-deferred -- attracted enough to pay eight to 10 times more than the cost of a term policy with the same death benefit.

If your family would still need the full benefit if you died, keep paying those premiums. However, if the time has come to see the policy as a source of income, here are your options:

  • Surrender the policy: The insurer will send you a check for the cash value.
  • Take out a loan: You can borrow against the cash value, and it doesn't have to be paid back; the amount will be deducted from the benefit when you die.
  • Transfer it to an annuity: An annuity can provide an income stream or continued tax-deferred growth.
  • Sell it: An investor might buy the policy from you, paying you to become the beneficiary of the policy.
  • Buy a smaller policy: If you want to leave money to your spouse or other heirs but want to stop paying premiums, you can use your cash value to buy a "paid-up" policy, which won't require any more payments but also will result in a smaller death benefit than the original policy.

In most cases, life-insurance proceeds, surrender values, and loans are tax-free. However, there are plenty of exceptions, so talk to an expert before making any moves.

May the insurance be with you
Not having enough life insurance can add hardship to heartache, and not taking advantage of the cash value could waste of all the premiums you've paid. Instead, use it wisely to provide your family security for decades. Obi-Wan would be proud.

At the time this article was published Robert Brokamp, CFP, is the advisor of Motley Fool Rule Your Retirement, from which this article has been repurposed.

Copyright (C) 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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]]>insuranceThe Motley FoolFri, 04 Nov 2011 10:39:00 ESTWalmart's New Promise: Always Low Benefits ... Alwayshttp://www.dailyfinance.com/2011/10/25/walmarts-new-promise-always-low-benefits-always/http://www.dailyfinance.com/2011/10/25/walmarts-new-promise-always-low-benefits-always/http://www.dailyfinance.com/2011/10/25/walmarts-new-promise-always-low-benefits-always/#commentsFiled under: , ,

Walmart's New Promise: Always Low Benefits ... Always Starbucks, Costco, Whole Foods, Walmart. For years, these companies offered some of the very few modest-paying retail jobs at which part-time workers could hope to at least get access to affordable health insurance.

This list got shorter by one name last week: Walmart (WMT).

On Friday, the nation's largest employer (1.4 million workers and counting) announced it was rolling back is health benefits for part-time workers. These were benefits that Walmart expanded just a few years ago in response to criticism that by underpaying workers -- and refusing to provide them with access to health insurance -- the company effectively shifted much of its labor costs to the federal Medicaid program.

Under the new plan, Walmart will no longer provide health insurance for employees who work fewer than 24 hours per week. Those who work from 24 to 33 hours per week can still get coverage for themselves and their children -- but their spouses must now seek their insurance elsewhere.

Passing on Costs to Workers

Even those lucky few employees who get to keep their coverage aren't going to like the new plan very much. According to Walmart, spiking insurance costs (expected to rise as much as 40% for some plans in 2012) necessitate cutting costs for even those plans that remain in effect. So beginning in 2012, Walmart will slash its contribution to workers' health-care expense accounts by half.

Henceforth, Walmart will subsidize employee health-care costs by just $250 (and remember, that's $250 that has to last the entire year); benefits for family members will be cut to $500. Employees who've seen details of the plan say that in some cases, the deductible alone on Walmart's new plan (i.e. the amount that comes out of pocket before insurance even kicks in) could amount to 20% of a worker's annual pay.

Aside From That, Mrs. Lincoln, How Was the Play?

Pretty miserable news, right? Here, sit down and have a smoke. Take a moment to calm down.

No -- on second thought, don't. One new provision in Walmart's plan is that tobacco users are going to see their insurance premiums nearly double. (And in some cases, more than double.)

Still, it's not all bad news. The plan does include a grandfather clause. And no, that's not a jibe at Walmart's famously elderly greeters.

The plan "grandfathers in" employees who were working fewer than 24 hours per week before the change, so that they get to keep their benefits even after the changes take effect for new employees. (Just don't get any bright ideas about finding a better job elsewhere. You might get laid off -- and don't come crawling back to Walmart looking for a restoration of your benefits.)

Round Up the Usual Suspects

If I might gaze into my crystal ball for a moment, I suspect a lot of conservatives will rush to blame Obamacare for Walmart's move. Don't. The fact is, Walmart's amended health-care coverage will begin in 2012, but many of the most expensive provisions of President Obama's health care reform law -- requiring insurers to cover pre-existing conditions in children, for example -- don't go into effect until 2014.

Liberals -- don't go blaming greedy insurers, either. This isn't a profit-grab by the insurance industry. Fact is, while they fluctuate from year to year, operating profit margins at UnitedHealth Group (UNH) today are still right about where they were back in 2002 -- and net profit margins are about 10% lower. At WellPoint (WLP), operating profit margins are neck-and-neck with 2003 levels. If the insurers are using Obama's health care reform law as an excuse to rake in extra profits, they're certainly hiding it well.

So Who's Really to Blame?

If one had to identify a single culprit in Walmart's move ... it would be Walmart itself. Consider: As the Dow Jones Industrial Average surged higher, annual revenue at Walmart recently hit an all-time high.
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Net profits, too. The company's net profit margin (3.9%) is at its highest level in more than a decade. To top it all off, earlier this month Wal-Mart confirmed to its shareholders that after two straight years of quarterly declines in year-over-year same-store sales, it began growing sales again at its stores last quarter.

In short, Wal-Mart is starting to look like it's finally got its act together. It's growing sales, expanding profit margins, and raking in bumper profits as a result. And now is the time it decides to squeeze the little guy for a bit more margin? Now it cuts benefits for the employees who helped engineer the turnaround?

Maybe this is just the populist in me talking, but it all seems a bit ill-timed, a bit greedy to me. It's almost enough to make you want to run off and Occupy Wall Street. Or at least ... occupy Bentonville.

Motley Fool contributor Rich Smith owns no shares of any companies named above. The Motley Fool owns shares of Wal-Mart Stores, Costco Wholesale, Starbucks, and UnitedHealth Group. Motley Fool newsletter services have recommended buying shares of WellPoint, Starbucks, UnitedHealth Group, Wal-Mart Stores, and Costco Wholesale, creating diagonal call positions in UnitedHealth Group and Wal-Mart Stores.


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]]>Barack ObamaCostcoemployee benefitsEmployeeBenefitsFinanceHealthhealth care reformhealth insuranceHealthCareReformHealthInsurancepart time jobsPartTimeJobsPatient Protection and Affordable Care ActStarbucks CorpThe Motley FoolUnitedHealth GroupWal-MartRich Smith, The Motley FoolTue, 25 Oct 2011 11:33:00 ESTBreast Cancer's Financial Toll, Part 2: Where to Go for Helphttp://www.dailyfinance.com/2011/10/06/breast-cancers-financial-toll-part-2-where-to-go-for-help/http://www.dailyfinance.com/2011/10/06/breast-cancers-financial-toll-part-2-where-to-go-for-help/http://www.dailyfinance.com/2011/10/06/breast-cancers-financial-toll-part-2-where-to-go-for-help/#commentsFiled under: , , ,

The second in a two-part series on breast cancer costs.

Molly MacDonald was diagnosed with Stage 0 breast cancer in 2005. The good news was that such cancers, caught early, are highly treatable and survivable. The bad news was that the diagnosis came while she was between jobs and without an income. Her family quickly went into a financial free fall.

"Our home went into foreclosure and I ended up standing in line at a local food bank. I was appalled when I realized how our family could become homeless over something like this," says MacDonald, of Bloomfield Hills, Michigan, who had two surgeries and six weeks of daily radiation to rid herself of the cancer cells. "My early stage disease was not going to take my life, but believe me, there were times during the process when I thought I and my family would be better off if it did and they could collect the life insurance -- at least that would have kept a roof over their heads and food on the table when I could not provide."

"I was so angry when I realized that we spend hundreds of millions of dollars researching a cure, which is important, but nothing to help out families for whom the patient's ability to work is absolutely critical to their ability to live. The American Cancer Society can help with transportation and there are a few programs that help with medical co-pays for prescriptions," says MacDonald. But the needs totally outstrip the number of helping hands available.

MacDonald decided to put her anger and frustration to good use. In 2006, she founded The Pink Fund, which provides assistance to those afflicted with breast cancer. Its overarching goal is to prevent people from finding themselves homeless and without transportation as the cope with an average six-month breast cancer treatment protocol, explains MacDonald. Typically, The Pink Fund will write checks to cover expenses like rent, utilities and car insurance on behalf of the individual, typically offering about $1,800 per person, with a cap of $3,000.

"When I sat in that radiation cancer room and listened to the war stories of other women who were in far worse physical shape, facing their own mortality, I only could share what was happening to us financially, but when I told them I was determined to make a difference by creating a fund, I felt somewhat off the hook for not being quite so sick," says MacDonald.

Filling a Financial Void

Organizations like The Pink Fund serve as a financial lifeline for those in danger of getting washed away by the financial tidal wave that so often follows the earthquake that is a breast cancer diagnosis. DailyFinance went in search of other places those women can turn for help.

Miles of Hope Breast Cancer Foundation in LaGrangeville, N.Y., gives about $100,000 a year -- between $250-$1,000 per person -- to people in treatment for breast cancer who live in the eight-county Hudson Valley region. "We stopped a woman from committing suicide last month when her husband left her after she was diagnosed," says executive director Pari Forood. "She contacted us and we paid basic living expenses. Medical gap care helps people with a fundamental need and they are eternally grateful. When they get back on their feet, they usually volunteer for us."

"The American Cancer Society, Komen and the other national organizations are mostly about funding research, which is great, but we want to help people cope and get through their treatment as quickly and harmless," says Forood.

Sources of immediate aid are limited. "There are organizations that have a 10-page application and you find out in six to eight months if you've been helped," says Erica Harvey, executive director of The Breast Cancer Charities of America. "Those are great, but ours is called Help Now Fund ... we help, now. There's a 10-day open application period, and within five business days after it's closed, the patient and their social worker will be personally contacted regarding if they were funded."

The organization provides counseling and emergency financial assistance in conjunction with cancer treatment centers nationwide. "Our commitment is adequate food, clothing and shelter for every woman going through breast cancer," says Harvey.

Active breast cancer patients living anywhere in the U.S. may seek financial help from the Patient Advocate Foundation, which helps with co-pays for prescriptions and/or pharmaceutical treatments, and CancerCare's Linking A.R.M.S. program, which gives financial assistance for treatment-related expenses including pain and anti-nausea medication. Susan G. Komen for the Cure will provide $2 million to support at least 1,675 breast cancer patients. Many Komen affiliates support local organizations that provide emergency financial support. Check with your local affiliate to find out if they offer such services, advises Mollie Williams, Komen's managing director of community health programs.

Unusual Models for Charity

Barbara Hensley lost two sisters to breast cancer. In 2001, she left a corporate executive management job to start Hope Chest for Breast Cancer. "We are a very unique model in that we have an ongoing revenue stream from the Hope Chest for Breast Cancer Retail Stores that are indecently owned, for profit businesses," says Hensley. "The stores' mantra is: 'Excellent quality, excellent experience, excellent buys ... all for an excellent cause.'"

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She describes her vision as "2-50-5-10": two charity-owned stores, 50 franchised stores in five years, and -- once everything is operational -- contributing $10 million to provide emergency assistance to breast cancer patients.

If you want to try to raise money on your own to help breast cancer patients, consider GiveForward.com. You can set up your page, then promote it on Facebook, or wherever you choose. Friends, family and followers can donate using a credit or debit card.

Cate Conroy, director of marketing for the site, explains the model: "Often when someone is facing a medical crisis, there are numerous expenses that insurance simply won't cover, like childcare when a parent is in treatment or travel to and from treatment. It is these kind of out-of-pocket expenses that GiveForward allows beneficiaries to raise money through their personal networks, so there's no limit to the amount that you can raise every year."

GiveForward has helped people raise nearly $7 million since 2008.

Assistance for the Uninsured

Those organizations may be able to help a patient deal with the fiscal side effects of cancer, but coping with a lack of health insurance is a whole different ball game.

Ankeny Minoux, president of The Foundation for Health Coverage Education, which helps people without insurance find coverage, says there are four basic options: "Know your state's public options, programs like Medicaid, CHIP (Children's Health Insurance Program) or other free or low-cost government-sponsored programs. Look into your state's High Risk Pool. Research all private options offered by insurers -- including both individual and group health plans. Use trusted resources like the American Cancer Society's, www.cancer.org."

Minoux highlights a few programs: Breast and Cervical Cancer Treatment Program (California, Massachusetts, Texas), Women's Wellness Connection (Colorado), Breast and Cervical Cancer Early Detection Program (Connecticut, Indiana, New Mexico, Virginia, Wyoming), Screening for Life (Delaware), Breast and Cervical Cancer Prevention (Florida, Louisiana, Mississippi, Montana), Georgia Cancer Screening Program, Breast and Cervical Cancer Program (Hawaii, Illinois, Oregon), Women's Health Check (Idaho), Healthy Women (Illinois, Pennsylvania), Early Detection Works (Kansas), Kentucky Women's Cancer Screening Program, Maine Breast and Cervical Health Program, Breast Cancer Screening Program & the Breast and Cervical Diagnosis and Treatment Program (Maryland), Breast and Cervical Cancer Control Program (Michigan), Sage Screening Program (Minnesota), Show Me Healthy Women (Missouri), Every Woman Matters Program (Nebraska), Women's Health Connection (Nevada), Let No Woman Be Overlooked Program (New Hampshire), Cancer Education and Early Detection (New Jersey), Medicaid Cancer Treatment Program (New York), Women's Way (North Dakota), Breast and Cervical Cancer Protection Program (Ohio), Woman's Cancer Screening (Rhode Island), Best Chance Network (South Carolina), All Women Count (South Dakota), Breast and Cervical Cancer Screening Program (Tennessee, West Virginia), Utah Cancer Control, Ladies First (Vermont), Washington Breast and Cervical Cancer Program, Project Wish (Washington D.C.), and Well Women Program (Wisconsin).

"The most important mistake to avoid is giving up and thinking there are no options," says Minoux.

Funding needs are huge, yet the organizations themselves are working to stay healthy at a time when donations are generally down. "We've seen a drastic hit, says Harvey. "People are saving rather than helping others. We do all that we can do -- keep an extremely low overhead, pass on 80 cents of every dollar raised to our program services -- but still the funds are down, which means we can't help as many women as we'd like with basic things like keeping a roof over their heads, or water running in their homes. There's nothing worse than the stories that we hear about single moms having to pick between keeping a roof over the heads of [their] children, or going to a doctor's appointment."





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]]>bankruptcybreast cancerBreast Cancer Charities of AmericaBreastCancerBreastCancerCharitiesOfAmericacharityfinancial helpFinancialHelpGiveForwardHealthhealth careHealth CheckHealthCarehelp with billsHelpWithBillsHope Chest for Breast CancerHopeChestForBreastCancerinsurancemedical expensesMedicalExpensesMiles of Hope Breast Cancer FoundationMilesOfHopeBreastCancerFoundationPatient Advocate FoundationPatientAdvocateFoundationpersonal financePersonalFinanceSusan G. Komen for the Curethe pink fundThePinkFunduninsuredSheryl Nance-NashThu, 06 Oct 2011 08:00:00 ESTBreast Cancer's Financial Toll: The High Cost of Fighting for Your Lifehttp://www.dailyfinance.com/2011/10/05/breast-cancers-financial-toll-the-high-cost-of-fighting-for-yo/http://www.dailyfinance.com/2011/10/05/breast-cancers-financial-toll-the-high-cost-of-fighting-for-yo/http://www.dailyfinance.com/2011/10/05/breast-cancers-financial-toll-the-high-cost-of-fighting-for-yo/#commentsFiled under: , ,

high cost of breast cancerMarci found a lump in her breast in April of last year. She went to the doctor the next day.

"The first doctor I saw told me that it was not life threatening, probably a cyst, and that I am too young to worry. I was 33 at the time," recalls Marci. But when she went for her annual gynecologist visit in late May, that doctor examined her breast and sent her for an ultrasound and mammogram. Those lead to a biopsy of the lump and lymph nodes, both of which came back positive. In June, she was diagnosed with Stage 3 breast cancer.

Marci had worked in the finance industry for 15 years. "I 'thought' I had insurance which was provided by my company," she says. However, after her biopsy, she realized her insurance had a cap of $10,000 a year. "Who reads the small print on that sort of stuff in an 18-page addendum?" asks Marci. "Before I had my first treatment, I was over the maximum benefit."

She went uninsured for two months until she got coverage through the Ohio High Risk Pool.

"Thank God for some health care reform. In those two months, I paid $8,000 out of pocket and about $3,000 so far this year. I pay monthly on a $20,000 bill through my treatment center," says Marci, who lives in Columbus, Ohio.

The financial toll has been huge. "I had to sell my pride and joy -- a beautiful red corvette. I was able to use some of the cost as a tax deduction last year, but that doesn't come close to helping very much. For someone who is single, with no children, you don't get many write-offs. I was told I did not qualify for most financial aid -- because I was employed," says Marci.

"I am thankful for my life and in the grand scheme of things, I feel I'm worth the money," she says. "But going through this experience -- I feel bitter that folks living on the system, with no job, are entitled to better health care benefits than I have. Because I am in the financial industry, I feel I would be a hypocrite to turn my back on my financial obligations."

The High Cost of Breast Cancer

According to the American Cancer Society, breast cancer is the second most common cancer among American women after skin cancers: A woman in the U.S. has about a 12% chance of developing invasive breast cancer at some time in her life. The American Cancer Society estimates that 230,480 new cases of invasive breast cancer will be diagnosed in women in the U.S. this year, and nearly 40,000 women will die from the disease. It's the second leading cause of cancer deaths in women, exceeded only by lung cancer. According to the National Cancer Institute, cancer care cost the American public $104.1 billion in 2006, and the largest chunk of that was for breast cancer -- $13.9 billion.

While these women are waging a fight for their lives, they often must battle on a second front as they deal with multiple threats to their finances. Jenny Saldana says she had a great corporate job at Procter & Gamble, but was forced to go on short-term disability due to breast cancer. "I was able to make my road to recovery my full-time job, but I earned 40% less, with 100% of the same bills." She says she was scammed by a debt consolidation company, which cost her both money and a potential job at Bergdorf Goodman (she says the consolidation company ruined her credit). Then she had to file for bankruptcy. Five years later, she says, "I'm still broke, but have gone back to my passion of acting and writing."

Ellen Baker estimates that her treatments for breast cancer, including chemotherapy, mastectomy and reconstructive surgery cost about $100,000, and her share after insurance was about $20,000. In addition, she shelled out $200 a week for "complimentary things, like acupuncture, hypnosis and Reiki, energy healing," which helped get her through the ordeal.

But what really proved costly was what she called the collateral damage of breast cancer -- divorce. "My husband of 22 years left after my last surgery," says Baker, whose two daughters were teenagers at the time. "I wasn't working and suddenly my husband's $300,000 salary was gone. I faced foreclosure on our home and had cars repossessed. It's because I contacted my senator, governor and others that I was able to save the house," says Baker.

Five years later, she has not recovered financially. "I'm uninsurable now, and I have until July of next year to use COBRA from my husband's company. COBRA cost me $1,000 a month, so along with my out-of-pocket expenses, health care costs me about $23,000 a year," says Baker who sees an oncologist every three months.

Baker, an executive coach, still needs two more surgeries to complete the breast reconstruction process, but because doctors want $12,000 to $20,000 up front -- which she would have to pay, then wait to get reimbursed from the insurance company -- she continues to postpone them. She remains positive though. "What doesn't kill you makes you stronger," she says. "Every day is a gift. I'm starting my life over at 59."

Know What Your Insurance Covers

C.J. just finished seven straight weeks of radiation. "I am waiting for the boom to fall and a giant bill to appear," says C.J., who says her co-pay on an MRI is $250 each time. "I felt like I got mugged with the co-pay the day of surgery -- $450. I call it breast cancer Mardi Gras -- every time I flash the rack, I don't get beads per se, but I do get co-pays."

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One of her prescriptions was for Biafine, a cream that helps heal seriously damaged skin. Her insurance company refused to cover it. "They said I didn't 'need' it. My skin blistered and peeled away, so yes, I needed it. It was $100-plus for for each tube."

Baker says her insurance company wouldn't pay for the anesthesia when she had her mastectomy. "I fought them for nine months before they paid."

Similarly, Heather St. Aubin-Stout, says her insurance company refused to pay for her MRI last year, which was how she found that her cancer had recurred. "I've been making payments on that bill for the last six months and I'm only halfway through," she says. "Financially, we are struggling."

With experiences like these all too common, it's important to know what's in your insurance policy -- what's covered, what's not -- and get an estimate about the price tag for your out-of-pocket expenses. "Experimental treatments are not covered," explains Dr. Daniel Fass, a radiation oncologist in Rye, New York, and professor at Cornell Medical School. "For example, 10 years ago there was some use of bone marrow transplants for breast cancer. Insurance carriers considered this experimental and did not cover it. This treatment was eventually deemed ineffective and is no longer used. Also, patients participating in a clinical trial are not covered by insurance. Patients need to determine their coverage before proceeding with treatment."

How to Reduce Expenses

Even with insurance, there can still be a huge hole in what you need to cover your expenses. Just as women successfully battle breast cancer, they can also claim some measure of victory by reducing their out-of-pocket expenses.

Rose Greene, a certified financial planner and president of Rose Greene Financial Services, is a breast cancer survivor. She says "Consider an HMO. They are not what they were decades ago. They have evolved. Co-pays and premiums are significantly lower with HMOs."

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Greene compares HMO and PPO (Preferred Provider Organization) tax deductions, "PPOs have much larger out-of-pocket expenses than HMOs. Out-of-pocket medical expenses are tax deductible only if they exceed 7.5% of a person's adjustable gross income, and that threshold is hard to meet. Even with chemotherapy, exams and other treatment, high-income earners are rarely able to take advantage of tax deductions if they use a PPO."

For example, a family with an AGI of $100,000 and $10,000 in out-of-pocket expenses would only be able to deduct $2,500, explains Rob Seltzer, a certified public accountant and personal finance specialist. The poor and elderly are more likely to exceed the 7.5% threshold, he says.

What kind of expenses are likely to get you a deduction and which won't? "Generally, things that are medically necessary, say breast construction," says Seltzer. But something cosmetic like breast implants would not be."

If you want to contend that complimentary services like acupuncture or meditation, for example, are necessary for your healing and recovery, be sure to get backup -- a letter from your doctor saying that he or she recommends them for your recovery. "That way if you claim it on your taxes and you get audited, you have something to hang your hat on," says Seltzer.

Make a Case For Your Unique Needs

"My wife has cancer in one breast," says Michael Kalscheur, senior financial consultant with Castle Wealth Advisors. "Our health coverage company will pay for everything for this cancer, but does not routinely cover preemptive surgery on the other side. 'Routinely' is the key phrase. We have already started to build the case that she must have surgery on both sides and that this is the best thing long-term. Otherwise, paying for it out-of-pocket would cost tens of thousands of dollars."

How you manage your health care experience absolutely determines the quality of care you get, says Greene. "In a support group I was in, I saw that a lack of being proactive and frustration with HMOs led one woman to her death, while another woman loved her HMO because she made it her mission to take control of her medical care. She got as good of care, or arguably better care, than someone with a PPO."

Medical debt one of the leading causes of personal bankruptcy. "Ask for a payment plan," says Baker. " There is usually no interest and it is a lot better than charging your medical bills on your credit card."

Get Family and Friends Involved

Don't just rely on family and friends for emotional support -- get them on board to help you navigate the claims process. "It's overwhelming. They will try any way they can to keep from paying you. You will have to fight," says Baker.

Enlist them too, to help research doctors, treatment centers, etc. Good information can save you money. "Don't be complacent about shopping and comparing medical costs," says Jorie Johnson, a certified financial planner with Financial Futures. "I called three local radiology centers to compare prices and age of equipment. It took each center anywhere from 15 minutes to 3 hours to give me a quote for a simple mammogram and the quotes ranged from $750 to $1400! In addition, the center using the most up-to-date scanning machine was the least expensive price."

Explore All Options

Find out whether your state offers a high-risk insurance pool. It may not be cheap, but at least you can get coverage. Baker says in her state, coverage is $500 monthly with a $5,000 a year deductible or $1,000 a month and a $1,000 a year deductible.

Ask your doctor about whether you can take generics, and if there are natural, less expensive herbs and supplements that might work instead of more expensive medicines.

"Talk to the drug companies if the drugs are too expensive," recommends Kalscheur. "Due to our income and family size -- we have 8 children -- we were qualified for free or reduced cost drugs from two separate companies: Merck (MRK) and Genentech (RHHBY). This saved us thousands of dollars."

Baker also advises getting long-term disability coverage while you're healthy. "Don't wait until you are diagnosed. Having disability issuance can make the difference between financial ruin and not."

Keep cost-cutting in perspective, however. You don't want to deny yourself what is best for your recovery and healing, says Faina Sechzer, a cancer recovery coach and CEO of Health Recovery Strategies. For example, do get a second or even a third medical opinion, and don't skip important tests just because they might not be covered by insurance. When it comes to alternative, complementary care, she says don't pass up yoga, massage or mediation because of the price. And she advises against buying cheap, unattractive wigs.

Be Proactive

"When I had breast cancer three years ago, I was looking for a plastic surgeon to do reconstruction," says Patricia Buchanan. "I was horrified to find that in my area of New Jersey, there were basically no breast reconstruction experts who were in-network for my health plan [Blue Cross, Blue Shield]. I went to see a fancy plastic surgeon in Morristown, and after evaluating me, his finance woman said the most they'd charge me would be $5,000, outside of what my insurer gave them."

"I was literally having a meltdown -- how much is a new boob, seriously? I didn't think I should have to pay a penny beyond my co-pays. This was no voluntary boob job, after all. Mine had been cut off to save my life. All I really wanted was to replace the one I'd lost. Luckily, a friend suggested I go in to Sloan Kettering, which is in-network for BCBS. You have to be adamant about not letting a breast cancer crisis ruin you financially."

This is the first in a two-part story on breast cancer and finances. The next article will examine where breast cancer patients can go for financial assistance



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]]>bankruptcyBergdorf Goodmanbreast cancerbreast cancer costsBreastCancerBreastCancerCostsco-paysdeductibledenial of coverageDenialOfCoveragedeniedHealthhealth carehealth care costsHealthCareHealthCareCostsinsuranceinsurance claimsInsuranceClaimsMemorial Sloan–Kettering Cancer CenterNational Cancer Instituteprescription drugsPrescriptionDrugsProcter & GambleWeill Cornell Medical College of Cornell UniversitySheryl Nance-NashWed, 05 Oct 2011 11:00:00 ESTThe 7 Deadly Hobbies: Pastimes Your Insurer Hateshttp://www.dailyfinance.com/2011/10/04/the-7-deadly-hobbies-pastimes-your-insurer-hates/http://www.dailyfinance.com/2011/10/04/the-7-deadly-hobbies-pastimes-your-insurer-hates/http://www.dailyfinance.com/2011/10/04/the-7-deadly-hobbies-pastimes-your-insurer-hates/#commentsFiled under:

It's often said that active hobbies promote healthy living. Some people, however, take their fun to the extreme, engaging in pastimes that put their health -- and even their lives -- at risk. Insurance companies refer to such activities as "hazardous vocations," and charge higher premiums to those who engage in them. Sometimes, they even deny such people coverage altogether.

24/7 Wall St. compiled data from government agencies and the organizations associated with these "extreme" activities to determine which had the highest rates of accident and death. We also looked at several insurance estimates to determine how much premiums would increase for those who listed these activities among their regular hobbies. (We excluded risky activities that are generally performed by professionals, rather than as hobbies, such as rodeo riding or racing sports.)

In terms of strict numbers of fatalities, these hazardous vocations are less likely to get you killed or seriously injured than riding in a car or on a bicycle. Nevertheless, insurers consider them high risk factors.

7. Scuba Diving
Deaths: 150 a year in the U.S.
Causes of Death: Equipment failure, improper ascent/descent, cardiac arrest

The Professional Association of Diving Instructors estimates that there are between 1.6 and 2.9 million active divers in the U.S. In order to dive using scuba gear, a license is required, and training can take anywhere from a few days to several months. According to Larry "Harris" Taylor, Ph.D., a biochemist and diving safety coordinator at the University of Michigan, there are about 150 deaths each year in the U.S. from scuba diving mishaps, which comes to about 1 death for every 200,000 dives. Life insurance companies usually inquire about an applicant's diving history. People who dive to 100 feet or more can pay as much as $5 more for every $1000 on their life insurance premiums. People who dive deeper than 150 feet are usually declined coverage.

6. Motorcycle Riding
Deaths: 4,462 (2009)
Causes of Death: Failure to wear helmet, intoxicated drivers, excessive speed

Even when excluding motocross and dirt-biking, motorcycling is extremely widespread in the U.S. As of 2010, the American Motorcyclist Association had over 230,000 members. Unfortunately, fatality rates for riders are high. In 2009, 4,462 people were killed while riding motorcycles. This was down from 5,290 in 2008. According to the Helmet Law Defense League, only 20 states have full helmet laws for all motorcycle riders. According to the National Highway Traffic Safety Administration, 1,483 lives were saved by motorcycle helmets in 2009. An additional 732 lives would have been saved if all drivers and passengers wore helmets.

5. Recreational Boating
Deaths: 736 (2009)
Causes of Deaths: Alcohol, poor weather conditions, captain error

Recreational boating is surprisingly dangerous. In 2009, the Coast Guard reported 4,730 recreational boating accidents, resulting in 736 deaths, 3,358 injuries and approximately $36 million in property damage. Drowning was a factor in 75% of boating fatalities in 2009, and most of those were likely preventable, as 84% of those victims weren't wearing life jackets.

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4. Sky Diving
Deaths: 21 (2010)
Cause of Deaths: equipment malfunction

The U.S. Parachuting Association has 33,000 members, and it estimates that people make about 3 million jumps each year. Skydiving's risks are obvious: A parachute malfunction, a mistake in midair, or a loss of consciousness are all concerns, even for veterans. In 2010, there were 21 fatal skydiving accidents -- one death for every 142,000 jumps.

3. Mountain Climbing
Deaths: 25 per year
Causes of Deaths: Equipment malfunction, weather, falling rocks or equipment

The yearly average for deaths resulting from mountain climbing in the United States is 25, according to the American Alpine Club. In 1956, there were 53 deaths -- the highest number recorded. Mountaineers can face risks such as falling, avalanches, and loose rocks or dropped equipment. For people in the Lower 48 states, a mountain climbing hobby can cause life insurance premiums to increase $3.50 for every $1,000. In other places, it can increase premiums by $5 or more per $1,000 of coverage.

2. Civilian Pilot
Deaths: 378 (2010)
Causes of Deaths: pilot error, equipment malfunction, weather

Non-commercial aviation is remarkably dangerous, with hundreds of accidents occurring each year. There were 1,248 accidents in 2009, 1,236, and in 2010, and 937 so far this year. In total, 1,112 people died in these accidents. Being a pilot has long made for for higher insurance premiums, but prices for this group shot up dramatically after 9/11.

1. Hang Gliding
Deaths: 7 (2011)
Causes of Deaths: Pilot error, equipment malfunction

Hang gliding is actually one of the most dangerous in-air sports possible. According to HSE, a U.K.-based watchdog group, the risk of death in a hang-gliding accident is 1 out of every 116,000 flights. In 2010, according to the National Transportation Safety Bureau, there were 32 accidents, resulting in seven fatalities. There have already been seven deaths this year, with another three months to go. Regular hang gliders seeking life insurance can see their premiums rise substantially, or be declined for coverage altogether.

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]]>American Alpine ClubAmerican Motorcyclist Associationboatingdangerous hobbiesDangerousHobbiesdeathHang Glidinghazardous vocationsHazardousVocationsHealthhigh riskHighRiskinsurance premiumsInsurancePremiumsLocalmotorcyclemountain climbingMountainClimbingNational Highway Traffic Safety AdministrationNon-commercialpersonal financePersonalFinancepilotsScuba DivingScubaDivingsky divingSkyDivingU.S.United StatesDouglas McIntyreTue, 04 Oct 2011 07:00:00 EST