Open enrollment deadlines are one date you don’t want to miss.  Choosing the best insurance options and benefits at your job is an important part of your personal finances.

Open Enrollment Window

October and November are the time when many companies have open enrollment, a time period during which you can make changes to your benefits for the coming year.  Open enrollment is often the only time during the year you can make changes to your health insurance and flexible spending plans unless you have a qualifying change in status during the year such as a marriage or new baby.

In many cases if you do nothing during the open enrollment period, your insurance coverage and benefits will remain the same as previous year, one common exception are flexible spending plans. Due to federal laws, if you want to continue your health care or dependent day care flex spending contribution, you have to re-enroll each year.

Benefit Changes

Typically when you go through the enrollment process you’ll elect or decline coverage for benefits such as medical, dental, flexible spending accounts, dependent day care, and vision. Take care to add and update your dependent and beneficiary information so that your family members have sufficient coverage.

Open Enrollment Deadlines

Most companies are pretty strict about enforcing their open enrollment deadlines.  Any changes you try and make after the deadline passes will typically be denied.  You can always work with your human resources department to get an exception but it’s much easier to take the time and finish your open enrollment before it becomes a huge hassle or is too late. So stop procrastinating and enroll now if you haven’t already!

Help paying medical bills is one of the biggest challenges facing families on the verge of debt or bankruptcy. Medical debt and the rising costs of health care and insurance continue to ruin the credit and lives of people across the country.

In August, The Commonwealth Fund, a nonprofit healthcare action group, reported that family premiums for employer-sponsored health insurance rose 119 percent between 1999 and 2008 and were destined to rise another 94 percent by 2020 to an average annual cost per family of $23,842 “if cost growth continues on its current course.”

Health Insurance & Debt

Most individuals know that present-day health insurance isn’t a protection against massive amounts of uncovered medical debt. The American Journal of Medicine reported the results of a random sample study in June. The results stated that in 2007, before the current economic downturn, an American family filed for bankruptcy every 90 seconds in the aftermath of illness even though three-quarters of them were insured. The study added that 60 percent of all bankruptcies in the United States in 2007 were driven by medical incidents.

One of the most damaging aspects of medical debt is that it may occur suddenly and pile up at lightning speed. An overnight hospital stay – depending on tests and treatments – may easily cost several thousand dollars.

The bottom line: Your health could be your biggest money issue.

Health Insurance Planning

Whether you’re facing a planned medical procedure or have to undergo treatment in an emergency, it pays to devise a battle plan to keep costs under control, and keep the person you’ve designated as your health power of attorney in the loop. A financial planning professional, health insurance agent or your employer’s human resource department might be good places to start a discussion about avoiding unnecessary costs during physician’s office visit or hospital procedures. 

One of the main things all individuals should do if they have time before an exam or procedure is check whether their insurance covers it.

Medical Debt

But if you’re currently facing significant medical debt without insurance or after insurance refuses to pay a significant portion of your bill, here are some steps you can follow:

Relax first and then check for errors: Medical Billing Advocates of America, a Salem, VA organization of businesses that consult with individuals and companies to examine bills for mistakes and correct insurance mistakes, says that there are duplicate charges in almost every medical bill. Watch the bill closely, write down questions you have and then make an appointment with the doctor or hospital’s billing office to politely review those questions.

Make sure the insurer is dealing with the bill: If you undergo a hospital visit or a procedure, you may get a summary of fees from the hospital or the physician that say “not a bill,” which may lead you to put it aside and forget about it. Check in with your insurer to check the status of the claim before you get a surprise weeks later that they have refused to cover the bill. Make sure you’re watching every step of the process from the moment you leave the hospital or doctor’s office.

You can negotiate: If you are stuck paying out-of-pocket for a significant portion of the bill, see if you can negotiate that fee downward. Call the physician or hospital billing office to see if you can get a discount on the total bill, and see if there is a financial counselor at the hospital you can deal with.

Get help: A medical billing advocate generally works on major uninsured medical debts – ranging from the tens to the hundreds of thousands of dollars – and typically charges anywhere from 15 to 50 percent of the bill as a collection fee for negotiating with the hospital, physician or the insurance company. That’s a hefty price to pay for someone else’s expertise, but in certain cases, it can make sense. Failing that, many states have indigent care funds that offer some relief for individuals with substantial medical debt.

Ask for a payment plan: If you have a substantial cash balance to pay, ask the medical center or physician if you can pay on time. Just make sure you know what they’re charging you to do that.

Remember – attitude is everything: Keep in mind that many medical practitioners and their staff members have as many problems with the way the system runs as you do. Do you research first – learn all you can about conventional charges for certain procedures before you call and question the billing center. Ask questions calmly and politely. Show appreciation for their help. If you have to discuss more billing issues with them in the future, it might make it easier. 

This post about paying medical bills & avoiding medical debt is produced in association with the Financial Planning Association (FPA), the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning.

Health insurance is a major concern for many Americans.  When your kid or spouse is sick or injured your primary worry is how to make them better, how you’ll pay for it is a secondary concern.

The movie John Q tells a fictional tale of how a parent might respond when insurance won’t cover a medical procedure needed to save their child’s life. I think the combination of physical, emotional, and financial pain of injury or sickness is what makes health care insurance such a daunting one for the country to resolve. 

Health Insurance Survey

eHealthInsurance, an online health insurance marketplace, did a survey of people who called in with questions about individual and family health insurance policies.  They found that 38.8% of the people that called in with questions were uninsured at the time of the call.  I always hear talk during political campaigns about uninsured Americans but I don’t typically hear statistics so I thought the findings of their survey were interesting.  Of the uninsured callers:

• 37.9% are between the ages of 18 and 34
• 51.5% are employed full-time
• 60.5% work for a small or medium-sized business ( < 500 employees)

The survey found that the average uninsured person researching and buying individual health insurance through the eHealthInsurance marketplace was a single woman between the ages of 25 and 44, with a college degree and a full-time job.

The also found that one third (33%) work for a small business and a little under one half (46%) earn between $30,000 and $75,000 per year.

This wasn’t a comprehensive survey of the population so it’s just a segment of citizens but I was surprised at the number of people with full time employment that are uninsured.  Of course, these were all people calling in to research health insurance, I’m sure the numbers would be much different for the people that don’t even bother calling about insurance since they know they can’t afford it.

Renter’s insurance may seem like an unnecessary cost when money is tight and you’re working to pay off your college bills. However, if you can get a few renters insurance quotes online you’ll see that the insurance isn’t that expensive and can provide you with some much needed protection.

Do You Need Renters Insurance?

As a recent graduate, you might think you don’t have that many things to insure.  Compared to older, more established people you probably don’t have a ton of stuff but you did have to spend money to furnish your apartment.

You likely brought a few things with you from school like your electronics, CD’s or DVD’s, MP3 players, a cell phone, maybe a computer.  You also probably built up a wardrobe of clothes and maybe various accessories over the last few years.

If you take a look around your apartment and make a list of all the things in it, you’ll probably realize you’ve accumulated enough that you couldn’t afford to replace everything if it was all lost at once.

Why Renters Insurance?

The main idea behind renter’s insurance – or any other kind of insurance – is to be able to replace losses that you would not be able to replace otherwise. In other words, if you have a fire, or a theft, the insurance company would provide you with repayment for some of those losses.  Many people assume that their landlord’s insurance is all they need but typically this insures the building but not the belongings inside of it.

An apartment fire causing smoke or water damage, theft or vandalism, or even a natural disaster such as a tornado or earthquake are all things that can unexpectedly ruin your possesions. Renter’s insurance can provide coverage for these events and help limit your losses.

Renter’s insurance can also protect you if someone gets hurt while visiting. If they are in your apartment or rented home, their medical needs may be covered under such circumstances. It can also protect you in the event of a lawsuit (liability).

What Does Renters Insurance Cover?

Basically, renter’s insurance enables your possessions to be covered on either a depreciation basis or a replacement basis. Replacement basis is the best because it will actually give you a new equivalent – even if it costs more, and the price of a replacement basis policy typically isn’t that much higher. You will have a deductible, of course, but still, your assets are protected against total loss.

In order to have the best protection of your possessions in a rented space, you will need to have an accurate record of them. This means either a photograph or a video, in which you walk through your apartment and then talk about everything you have on it. This photographic record will need to be kept somewhere safe – and updated when new items are purchased.

One nice feature about renter’s insurance is that it can be quite inexpensive – but can provide a lot of coverage. If purchased, it can also provide you with another place to live if your apartment becomes unlivable due to some catastrophe and repairs or replacement is needed.

Where to Buy Renters Insurance?

Some companies like State Farm and Allstate offer what’s known as a multi-line discount, where they offer a renters insurance discount if you already have your auto policy through them.  You can also get renters insurance quotes online through sites like:

• NetQuote
• InsureMe

Recent college graduates have some important money choices they have to make soon after graduation.  Some articles in the New York Times and on MSN Money Central take a look at a few of these big financial decisions.

Buy a Home vs Rent an Apartment

The subject of the New York Times article, Madison Nipp, is a recent college grad who earned a degree in financial planning.  She warns graduates to look past just the price of buying a home and to keep in mind the costs of upkeep, taxes, and insurance.  Typically young professionals are on a pretty limited income since they’re just starting out so if they base their estimated expenses on their projected mortgage payments and a bunch of other expenses crop up they could run into a cash flow shortage.

MSN Money reminds graduates that if they go the rental route they need to check into renters insurance that can provide coverage not only for stolen or damaged property but also for liability.

Of course, grads can always move back in with their parents to avoid mortgage payment, rent, or renters insurance.

Where to Find Health Insurance

How to bridge the insurance gap between graduating and getting a job that provides insurance is always a question for college grads.

MSN Money points out one thing that newly hired graduates may not be aware of, that some companies have probation periods before health insurance coverage goes into effect. That, of course, assumes a graduate has a job. In today’s economy, unless you have a degree in engineering or accounting you may be on the job hunt for a while.

Finding health insurance for college graduates means weighing the options of buying short-term health insurance, extending their parents’ coverage short-term under COBRA, or getting interim coverage through their alma mater.

How to Build or Repair Credit

Many college graduates are faced with one of two credit problems, having no credit history or having bad credit history. 

No Credit History

Madison Nipp, from the New York Times article didn’t have a credit card in college and when she went to rent an apartment after graduation the management company wouldn’t rent to her without a co-signer on the lease since she had no credit history.

Bad Credit History

There are other people that did open student credit cards in college, used them foolishly, and are now saddled with credit card debt.

Improving Credit Scores

Students with credit problems can always go to their parents for assistance, ask them to be co-signers on a lease or a line of credit.

Another option is to use secured credit cards or a secured loan to get credit in their name.  Since these secured options reduce the risk of lending, lenders are more willing to offer these forms of credit.  Once their credit score has improved, they may then be able to apply for some of the best credit cards for college graduates and young professionals.

The first step any credit troubled graduate is to get their free credit report and check on their credit history.  If they are responsible with credit and can take steps to improve their credit score then over time their credit history will become more favorable to lenders.

Auto insurance quotes for college graduates searching for car insurance will probably make them wish they were back on their parent’s insurance policy. While some college graduates will have been paying their own auto insurance throughout college, the ones that have been covered by their parent’s insurance are in for a rude awakening.  Getting cheap auto insurance that still gives you enough coverage depends on finding the right agent, doing your research, and knowing how to lower your rates.

Find A Quality Agent

A good auto insurance agent will get you the best rate possible with the adequate amount of insurance coverage. Anyone can find you cheap insurance, but it’s probably the bare minimum coverage that exposes you to hundreds of thousands of dollars in liability.

Personally, I choose independent insurance agents, because they have access to dozens of insurance companies and their products. They will shop around for you and present you with the best coverage at the most affordable price. That’s not to say that State Farm, All State, and other exclusive agents are no good, but they are only bound to what their principle company allows them to offer.

Car insurance is extremely competitive, and that’s why I believe going to an agent who can shop around for you is the best way to approach finding a quality agent.

Do Your Research

The Insurance Information Institute has some good information to educate you more about car insurance. It would take an entire series of posts to get into all of the intricacies about car insurance, and that is why it is so important for you to do your own research. There are four major things you need to know about car insurance before signing on the dotted line:

1. Car Insurance Liability Limits
2. Exclusions from Coverage
3. Car Insurance Endorsements
4. Difference between Comprehensive and Collision Coverage

The internet makes it easier than ever to research rates, you can get auto insurance quotes from multiple sites on the web.  Make sure you search the rates on multiple sites to get an idea of what the average rate is.

What You Can Do To Lower Your Rates

As a young person, especially for guys, your insurance rates will be in the highest tier simply because of your age. There are statistics to back up the fact that younger, more inexperienced drivers get in more accidents than middle aged people. There’s nothing you can do about your age, but there are a few things you can do to lower your car insurance quotes.

• Choose a $higher deductible for Collision and Comprehensive coverage if you choose to carry them.
• If you are still in college, ask about a good student discount. State Farm offers a discount for students with a certain grade point average.
• If you have renter’s insurance or homeowner’s insurance, ask for a multi-line discount.
• If you plan on buying a new car after college, consider a car with high safety ratings. I know, you’re still young and a Toyota Camry doesn’t sound that appealing, but sports cars and SUV’s that are prone to flipping over carry higher insurance rates.
• Do not let agents tack on policy endorsements that are not necessary. The only ones I pay for are emergency roadside assistance and collision coverage for rental cars.

The importance of being a well-informed consumer is invaluable, and insurance policies are often overlooked by consumers of all ages. It is one of the products we buy that we know so little about, yet don’t bother to educate ourselves about. Be informed and do your homework. You’ll save a lot of money on car insurance and on other big purchases you make in your lifetime.

Jobs for college graduates are hard to come by so here’s a list of money tips for recent college graduates to help them manage their finances while they’re looking for their first job with no money coming in.

College Graduation Gifts

Friends and family will likely be looking for college graduation gift ideas to help you celebrate your degree.  Why not suggest these gift ideas for college grads to help you get a financial headstart?

Best Jobs for College Grads

Where you decide to live can have a big impact on the jobs available to you.  Here’s a list of the some of the best cities to live in the US and here’s a rating of available jobs by state.  Since the economy is pretty sluggish right now, here are some suggestions for the best careers in a recession.

Investing for College Grads

The stock market has taken a beating the last several years which really stinks for people about to retire but it could be a great buying opportunity for people just starting to make money in their new careers.  Here are some investing tips for college grads.

Student Loan Payments

Unfortunately you’ll have to start paying back the student loans that helped pay for college.  Here are some student loan tips on delaying your payments, lowering your payments, and consolidating your student loans.

College Graduate Finances

Spending, saving, and budgeting are going to be pretty important skills as you start off with little money from either no job or an entry level job.  Check out the best personal finance software online, all of which are free!  Here are some tips on saving and budgeting for college grads.

Find out how you can start building up your credit score with secured credit cards and secured loans.  If you already have some credit established, here are some of the best credit cards for college graduates.

Health Insurance for College Grads

Once you leave school you’ll have to worry about getting your own health insurance.  You can always look into short term insurance until you find a job that offers insurance coverage. You can read more about your options in health insurance for college graduates.

Homeowners insurance and auto insurance are important financial tools to help protect you against catastrophic loss and financial ruin in the event of an accident or disaster.

Of course, we often feel like we’re paying too much for insurance and sometimes worry that insurance companies are taking advantage of us when we don’t agree with or understand how they process our claims.  Since Erik used to work in the insurance industry, he has some pretty good insights into how things worked so we decided to put together a short series on home and auto insurance for you.

We started off with the basics, insurance policies 101, understanding insurance policies and claims.  Then Erik offered some valuable tips on how to file an insurance claim so that you get the money you deserve when you send in your paperwork for an accident or incident.  The next topic he covered was how to get extra protection with insurance endorsements, also known as policy riders.  We rounded out the insurance coverage with 7 things your insurance company or insurance agent won’t tell you.

Hopefully you’ll find something helpful in some of these insurance tips.  Let us know if there are other insurance topics you’d like to see covered here.

Here’s a list of things your insurance company and agent may fail to explain to you unless you probe them for information.  

1) When they say everything is covered, everything isn’t covered.  What they mean is everything is covered unless specifically excluded or limited in the policy.

2) If you have any type of large claim loss or a frequency of claims in a short period of time, they may try and drop your policy. 

3) A lot of people think a claim only counts aginst your history if they have to pay you for it. However, filing a claim that ends with a value less than your deductible still gets counted as a claim against your claim history.  Remember that when considering #2. 

4) Many claims adjusters look for ways to reduce the amount of the overall value of the claim.

5) Many insurance agents and their customer service representatives do not fully understand policy coverages.  I used to get many phone calls from agents asking me questions about policy coverage, because their client was in their office asking a question they couldn’t answer. 

6) You can file a claim directly with the insurance company instead of filing it through your agent. 

7) They will cancel your policy for things like trampolines, certain dog breeds, pool slides, and unrepaired damage on your home.  When you buy a new policy the insurance company’s inspector will come out and take a look around your house.  They won’t come inside, but they will take take exterior photos.  They are looking for things like vicious dogs, pool slides, trampolines, and tree branches touching or hanging over your roof line.

The Dark Side of Insurance

I am not trying to say that every claims adjuster and agent are out to get their customers.  There are definitely many agents and adjusters that truly help their customers and look out for their best interest, but I was once in the industry, and I know how some of the companies work. 

The insurance companies I worked for put a lot of pressure on you to save them money, and their company policies always favored the best interest of the company rather than the customer.  I was put in numerous positions where the coverage in the policy was a gray area and it could be interpreted either way.  But, the insurance company forced me to deny coverage. 

Many customers did not fight back.  They backed down and paid for the damages out of their pockets.  A lot of the time, insurance companies get it right, but I think their lack of commitment to putting their customer’s interests ahead of their own in the cases where they don’t is what gets them bad publicity in the media.  

Be an informed consumer; do research and ask questions to your agent and adjuster.  Do not let them call the shots.  You are the one paying for their salary and commission. 

If you have any questions about your policy or a current claim open, feel free to contact Erik or check out some of the other questions in the recent insurance series like insurance tips for filing an insurance claim, understanding insurance policies, lowering insurance rates, all about insurance policy riders.

A good insurance agent will recommend policy endorsements that will add value to your specific situation regarding your home or automobile. An endorsement is basically a separate policy coverage added on to the original policy form for an additional premium. They are also referred to as policy “riders”. There are many valuable endorsements that are cheap to buy and provide a valuable coverage to your two biggest assets, your home and car. Here are a few that are worth looking into.

Homeowner Endorsements

Personal Property Replacement Cost Coverage

Most policy forms for single family residences carry a personal property replacement cost endorsement, but make sure you ask your agent about it before you sign on the dotted line. This endorsement allows you to recoviter current market value replacement cost of your personal property if it is stolen or damaged.

Fungi, Wet, and Dry Rot Coverage

This is an essential endorsement to have no matter where you live. Many policies are excluding coverage for mold, and wet/dry rot damage. However, you can purchase an endorsement that adds a separate coverage for this type of damage if it is hidden in the walls, attic, basement, or floor boards. The smallest pipe leak in a wall or intermittent roof leak that is not noticeable will cause a world of trouble with wet rot and mold damage. It’s wise to get about $25k to $50k of coverage.

Personal Property Scheduled Endorsement

This is where insurance companies catch people off guard. They’ll give you x amount of dollars in coverage for your personal property, but then they limit certain categories of personal property to a certain dollar amount such as fine jewelry, furs, firearms, fine china, and cash.

If you have expensive pieces of personal property and fall under the categories, get an appraisal for their replacement value, take it into your agent, and ask them to “schedule” the piece onto your policy. You’ll pay extra in premium per year, but the cost is minimal for the assurance that you have full coverage on your most prized possessions.

When I was an adjuster, I saw thousands of customers get burned, because the policy covered only up to $1,000 for fine jewelry in the event of a theft. Don’t let that happen to you!

Identity Fraud Protection

There are separate policies out there, but I think it’s more economical to get a rider placed on your homeowner’s insurance instead. The rider will help you pay for expenses incurred to help you fight to get back your identity.

Home Business Coverage

Another thing insurance companies love to limit in their policy forms is home business liability and personal property coverage. Buy an endorsement that either adds or increases this coverage if you conduct any type of business out of your house.

Law and Ordinance Coverage

Policy forms typically offer some type of coverage, but it’s usually not enough to cover you fully in the event that you need to use it. L&O coverage kicks in when your home needs to be repaired because new building codes or ordinances call for mandatory upgrades. Instead of paying for these upgrades out of your pocket, make sure you have about 20 to 30% of your home’s value in this coverage.

Auto Policy Endorsements

Road Service

It’s cheaper to tack this onto your auto policy than it is to pay for AAA’s service.

Death and Disability

An extra death benefit to help with funeral expenses for yourself or family member if the worst happens in a car accident.

Comprehensive Transportation Benefits

If something happens such as a tree falling on your car, this will cover your expenses to rent a car while the car is being repaired.

Collision Transportation Benefits

Same as above, but it kicks in if your car was in an accident.

These small additions to your insurance policy are extremely important, because they often add or increase coverages that insurance companies limit due to the frequency and likelihood of the particular claims. Many of these endorsements will add a small amount to your YEARLY premiums but will more than pay for themselves if you ever have to use them. Did I miss any?