Question:
My husband just started a new job. Should we switch from my health insurance plan to his?
Answer:
When selecting employer-provided health insurance, you have more to consider aside from the premium. It is not as simple as life or disability insurance. One of the first considerations we suggest looking at is how secure is your job? If you are a tenured teacher with job security, we would be leery to switch plans, because having a job would mean having insurance.
Next we recommend comparing the premiums for each health care plan. You’ll need to take into consideration if the company pays for a portion of the premium. Some corporations offer to pay for all or a portion of an employee’s coverage premium, with spousal and dependent coverage as the employee’s responsibility. You may want to consider breaking apart, with each of you covered by your respective employer if this is the case.
We also suggest comparing the deductibles and co-payments for each plan. High deductibles and co-payments could end up costing you more in the long run despite the plan’s low premium.
Next consider if the coverage is good for the costs associated with it. This is extremely important if you have a pre-existing condition. Other considerations include your choice of in-network doctors, specialists and level of coverage for specific services like physical therapy.
We recommend taking your time to decide, as you will have to remain with the plan you choose until the next open enrollment period.
Question:
We’ve moved our youngest into the dorm and our oldest into his own apartment. What insurance(s) will help protect their stuff?
Answer:
A child living in a university dorm is generally covered by your homeowner’s insurance. Similar to when you travel, if something is stolen, your personal property coverage extends to your child’s dorm room. However, college students often have expensive personal belongings like computers, mp3 players or game systems. You should check your policy closely for limits on coverage for these types of items. Additionally, policies often limit you to 10% of the coverage of your in-home possessions for property located outside your home. Deductibles apply as if there were a loss at your home.
For your son’s apartment, we recommend he obtain renters insurance. The landlord’s insurance only insures the building, not the personal property of the tenants. Renters insurance will cover losses that are a result of the named perils in the policy, which generally include fire, smoke, vandalism, theft, and accidental discharge or overflow of water. Remember, just because your son remembers to turn off the stove before he leaves doesn’t mean his neighbor does.
Renters insurance also provides liability coverage for accidents and injuries that occur in your home.
Now that your children are no longer living under your roof, we recommend you look at your own insurance coverage as well. If a child is still driving a car that is covered under their parent’s policy, the parents’ assets may be exposed or even worse, the parent’s policy might deny the claim altogether. Most insurance companies will not provide coverage for a child’s automobile under their parent’s policy if that child’s is considered independent and is living in their own apartment/house. This is becoming more and more common so an in-depth analysis is extremely important.
At Henssler Financial we believe you should Live Ready, which includes protecting your children and their belongings, even when they are not living at home. If you have questions regarding your personal insurance coverages, the experts at Henssler Financial will be glad to help. You may call our experts at 770-429-9166 or e-mail at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
