Purchasing Health Insurance:
Protect your assets the right way while SAVING MONEY!
By Lawrence Zwerin
To the many small independent business people out there, I salute you. It is that entrepreneurial spirit that is the true backbone of
the American economy and our way of life. As a small independent business owner for most of my life, I understand how important
and hard it is to show a profit at the end of each day. After all, it’s that profit that keeps you and your business going day after day.
One very important concern to independents and large businesses alike is purchasing health insurance for yourself and/or your family.
Purchases made incorrectly, without the proper research, can cost you, your business and your family dearly!
According to a Harvard study, six out of ten bankruptcies and foreclosures in America are the result of medical bills and yet,
astonishingly, 75% of these people had Health Insurance!
The reason for this is simple. Most business people are buying their health insurance poorly. They are buying it with the wrong
parameters in mind, usually spending very little time and research before choosing it.
First remember that all health insurance carriers doing business in South Florida are not created equal. You must choose wisely,
and do it well before a potential catastrophe is looming. Without the proper health insurance, you most always put your business
and assets at risk. In fact, I assure you that you or your family’s health issues will not be dealt with in the same way as someone
who is well insured. Hopefully nothing will happen to you or your family that will cause such a loss of financial assets and heartache,
but what if it does? If you need expensive healthcare, will you get the care you need? , or will it be denied based upon your coverage
and financial situation?
It is true that the “best” health insurance becomes very afford- able when you need the best healthcare!
It is a fact that the decision’s you make in this regard are very important to the survival of all you have worked so hard to attain. It is
not your attorney’s, accountants, or financial advisors or even your insurance agent’s responsibility to show you how to purchase a good
health insurance plan. Although all of them would unanimously agree that purchasing the right plan is as important a financial decision
as any good long-term financial strategy. In short, finding the right plan is ultimately your responsibility.
By taking the time to study the following important facts, you may save thousands, or even tens of thousands of dollars on your current
individual or group plan.
(1) |
Insurance companies love people who buy “low deductible” policies. Over all, they
make great profits for the insurance provider. The “smart buyer” understands he must take care of the smaller bills himself and pass the
major ones on to the insurance carrier.
Be concerned about the big $50,000-$100,000 medical bills and not about the smaller $50-$100 doctor bills. Taking care of the smaller
bills and transferring the risk of the larger bills to the insurance carrier can reduce premiums greatly.
Example - A South Florida family, adults age mid 40’s with children who select a $500 per person deductible for their health
insurance plan verses a $3000 family deductible, usually are paying approximately $3500 a year more in insurance premiums. Does it
make sense for them to spend $3500 more a year in premiums for $2500 of “maybe” benefits? No, it doesn’t. Ask yourself now if the
$3500 a year difference is better off being in your pocket, or the insurance carrier’s. The answer is, “of course, yours”.
Take the $3500 per year you save and invest it in a Health Savings Account (HSA) bank account that will give the same family a triple
tax advantage of HSA Tax Shelters, other health coverage’s and tax deferred investments for their future.
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(2) |
Health Savings Accounts (HSA’s) are a wonderful financial solution for individuals, as well as group business arrangements. They come,
compliments of the U.S. Government and were enacted into federal law in
December 2003. HSA’s offer triple tax advantages:
(1) Contributions,
(2) Interest/Investment earnings
(3) Withdrawals for qualified medical expenses.
ALL THREE ABOVE THE LINE TAX DEDUCTIONS!
HSA’s offer people more flexibility in deciding how to use their money! They don’t pay taxes on the interest or investment earnings in your
HSA account. Your account grows every year and keeps growing if you don’t use it. Your account is “portable” regardless of any career
changes. You can use the account to pay for healthcare even after you retire. Your account value is always available immediately for
Tax Free use on medical costs and an employer can also contribute to your account.
Over the past few years thousands of small business owners and individuals have established HSA plans because the HSA allows you to
enjoy Personal Control, Choices, and Reduced Costs. THIS CAN SAVE YOU THOUSANDS IN PREMIUMS! |
(3) |
If you are part of a Group Plan at work that includes FAMILY MEMBERS OR DEPENDANTS and are faced with rising premium costs, consider
this; individual plans are usually less expensive than group plans. One first needs to know the anniversary date of the group plan (usually
the date that you signed up for another year) and then, given enough time to apply, (usually about a month) you should consider putting
your dependants on an individual plan. |
(4) |
BE CAREFUL! Watch out for low cost plans that are based upon an association’s group arrangement. |
(5) |
BEWARE! Insurance Companies domiciled “out of state”, are not “rate regulated”. They often have low “start up premiums but can raise
rates on an individual basis at any time. There are only four major insurance providers that are rate regulated by the Florida Department
of Financial Services. These companies offer important consumer protection for individual insurance plan purchasers. |
(6) |
DO NOT SIGN any contract with this disclaimer:
(This policy is primarily governed by the laws of (another state). As a result, all of the rating laws applicable to policies filed in this
state (Florida) do not apply to your coverage, which may result in increases in your premium at renewal that would not be permissible
under a Florida, approved policy. Any purchase of individual health insurance should be considered carefully, as future medical conditions
may make it impossible to qualify for another insurance policy. For information concerning individual health coverage under a Florida
approved policy, consult your agent or the Florida Department of Financial Services.) |
(7) |
“CERTIFICATES” are not policies. They are just a description of a Master Policy that exists usually in another state. A “Certificate” is not
a Contract of Insurance. |
Lawrence Zwerin is an Independent Insurance Agent in the State of Florida. An advocate for Health Care reform, he educates individuals
and companies in how to economically purchase health and benefits plans. Contact him at zwerininsurance.com
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