According to 2012 census data 26.5% of the uninsured in the U.S. are Americans of the ages 18-34.  Young Americans are the largest group of uninsured.

You have heard the reasons:  I’m healthy, so I don’t need health insurance.  I can’t afford it.  I can always go to the emergency room.  You can be healthy, but a fall down the steps that results in a broken bone or an emergency appendicitis can seriously impact your financial position if you have no health insurance.

Is one of your employee benefits health insurance?  You are a lucky person.  It is a very valuable benefit.  If you monetize the cost of that coverage versus what you pay you can easily see the value.

If nothing else you should have a catastrophe policy, that has a big deductible, but you are covered for major medical events.

The Affordable Care Act (ACA) or Obamacare changes the landscape. If you are 26 years old or less, you can be covered on your parent’s policy.  If you are on your own you can go to healthcare.gov, the ACA exchange to look for insurance.  The deadline for open enrollment this year is Monday, March 31 so you cannot procrastinate any longer.

Some states have their own exchanges instead of using the federal exchange. There are four levels of health care plans – bronze, silver, gold and platinum. There are also subsidies available to help you afford coverage.  In 2014 individuals with income from $11,490 to $ 45,960 are eligible. Families with two members with income beginning at $15,510 to $62,040  can receive a subsidy. Families of 8 with income of $39,630 to $158,520 can receive a subsidy. Kaiser Family Foundation has a calculator that can determine the subsidy you can obtain buying health care.

There is a lot of controversy involving the Affordable Care Act, but it gives Americans the ability to make life and career choices without regard to health coverage.  It also allows many people with pre-existing conditions the ability to get insurance. With the subsidies, more people may be able to afford health insurance.

Medical care in this country is costly.  If you do need medical attention you need to be diligent about the quality and cost of the care.  Here are a few hints on how to save some money.

1. Ask doctor for lowest price for a procedure
2. Pay cash
3. For simple medical questions, call your doctor or ask a pharmacist
4. Ask questions about medication – Is there a generic? Does your doctor have free samples?
5. Shop around for prescriptions – sometimes your insurance requires you to use one provider
6. Check bills for errors
7. Take a look at healthcare.gov
8. Don’t skimp on insurance if you are health
9. If you don’t have insurance for prescriptions, Walgreen’s and others have discount cards you can buy

Your health is important.  Regular check ups can keep you healthy.  If you don’t have insurance it is unlikely that you will get those checkups. Remember open enrollment ends Monday for this year.

Youtube.com video:  Take a look at Between Two Ferns with Zach Galifianaki with President Obama YouTube video.

Kowalczyk comment: medibid.com is a site where you can bid for medical services.  Make sure you research the provider’s credentials.

Kowalczyk request:  If you are enjoying this blog, please like it, offer comments, ask questions or recommend a topic. Please pass it along to your friends and family who may need some help on financial literacy.

Kowalczyk location – Harbor Springs, MI.  They have had almost 180 inches of snow this year. This is our sidewalk to the front door.  

 

 

 

 

 

Few people like to talk about insurance, but it is a necessity of life and you need a good understanding of the types of insurance and the coverages you require.   I am going to focus on property casualty, life and health insurance.

Let’s start with property casualty insurance.  Consumers are most familiar with auto insurance.  If you own a car, you need car insurance.  Rates will depend on your driving record, where you live, type of car and the type of coverages you want.

Another determining factor is the amount of your deductible in the policy. How much will you pay out of pocket before the insurance kicks in?  Often, rates will be lower if you include a higher deductible than the standard policy. If you have adequate savings, you can afford to pay out the higher deductible.

How do you shop for auto insurance?  Online tools make it much easier to shop around for the best product and price. You can use NetQuote.com, Insure.com, and InsWeb.com that represent multiple insurance companies.  Some companies like Progressive, Geico and others offer insurance online. Or you can work directly with an agent that represents one or a number of insurance companies.

Now we move on to another familiar type of insurance. If you own your home, you need homeowner’s insurance and if you rent you need rental insurance. Rates will be determined by the scope of your coverage, your deductible, where you live, type of dwelling and size of your home.

If you have a home based business, you need to find out if your homeowner or rental policy protects you on business pursuits in your home. Are you covered for theft of business equipment or if someone falls on your sidewalk delivering a business package? If you are not covered, you can buy a rider to your existing policy or buy an in home business policy.

Now let’s talk about an unfamiliar type of insurance – an umbrella policy. If you have significant assets including your home equity or significant future income you may need this coverage. You may also need this coverage if you own high-risk vehicles, a pool, a trampoline, etc.

An umbrella policy gives you a layer of additional coverage above the limits on your home and auto policies.  If you get sued, the courts could come after your personal assets and your future income. The umbrella policy gives you another layer of protection. This insurance is usually reasonably priced. You should consult with an insurance agent to see if you need this additional insurance coverage.

Kowalczyk comment: Insurance Information Institute, a non-profit clearinghouse, is a great resource for all types of insurance.

Giving back is an important part of our culture and including charitable donations in your budget is one way to accomplish some good.

If you are short on funds, you can donate your time and expertise to your favorite causes.  Every organization needs money, but they also need volunteers helping with the actual mission or helping to run the organization.

How do you decide how much to give in a year?  Did you specify a dollar amount that is an appropriate amount for your budget?  Or did you start with a percentage of your take home income that you would like to give each year?

Is your charitable giving hit or miss? You can dilute your giving efforts without a charitable gifting plan. Where do you want your limited dollars to go?

Do you have several causes that are your priorities?  If yes, then target your dollars to those organizations.  Whether it is the environment, your religion, education, the arts, supporting the troops, health issues or a food bank or whatever.  Take some time and decide what you really care about.

How can you stretch your giving dollars?  Often charitable organizations have a matching program set up during key fund raising times.  Those programs give you an opportunity to magnify your gift.

Also, does your employer match some level of charitable giving?  If so, you want to make contributions early in the year.  Many times the matching funds of your employer are limited and funds can run out before the year ends.

If you have a real interest in an organization, you can improve your financial literacy by getting involved on the board or a committee.  Each of these organizations has to raise money, decide how to spend the money, decide how to invest the money for future years and carry out their mission.  You may have skills or expertise that is badly needed in the organization.

Before you get involved in a charitable organization, please vet it.  Does a large percentage of the budget go toward its mission?  Is the organization committed to transparency and accountability?  Is the charity making an impact?  These websites can help you do this:   Charity Navigator  GuideStar  The BBB Wise Giving Alliance

Giving back is a great feeling and everyone should try to find organizations that have a mission that matches your interests.

Kowalczyk Comment: DonorsChoose is an organization that helps you find ways to help teachers and schools.

Kowalczyk Location:  I’m back in Chicago or Chiberia as it is more commonly known this winter.  Now we are starting the big thaw.

 

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