My biggest health care mistake: Choosing the wrong plan

The costs of health care are top of mind lately, and like everyone else, we've felt the effects. I remember the days 10 to 15 years ago of $5 copays for doctor's visits . As a full-time elementary school teacher before we were married, M's doctor visits were completely covered by her paycheck deductions.

Now copays under my current employer's plan are $20 to $25 (though routine physicals and annual checkups are "free"). Meanwhile deductions from my paycheck have increased as well, relative to just a few years back. I don't know if the federal government has the right answer, but at least President Obama is asking some tough questions.

A sweet choice
Rising costs, in fact, led me to make one of my biggest personal finance mistakes: choosing the wrong health care plan. Two years ago, my employer revamped its insurance benefits to reduce its own escalating costs. I opted for the "middle-of-the-road" plan, one with medium-sized paycheck deductions but with higher deductibles and potential out-of-pocket costs. To sweeten the deal, my employer made a $1,000 contribution to a savings account that could help defray any costs we might have to pay on our own.

I'd considered the plan with the highest paycheck deduction and the most coverage, but no $1,000 contribution. I decided against it because we're a pretty healthy family, M and I are through having babies, and our kids aren't in day care and thus prone to bringing home the "virus of the week." I figured the middle plan's $1,000 contribution could get us through half of the year at least.

Best laid plans go awry
Then in February--just a few weeks into having the new plan--my stepdaughter had to make an emergency room visit in the middle of the night. A slew of tests and doctors confirmed that she was, thankfully, okay (and, ironically, that her symptoms weren't an emergency at all, but could have waited for a visit to the doctor in the morning). But that $1,000 which was supposed to help us pay for out-of-pocket costs for several months? Effectively wiped out in one fell swoop.

This year, I bit the bullet and chose the plan with the highest coverage. Naturally, we've had no trips to the emergency room and relatively few visits to the doctor. If that remains true through December, we'll have effectively overpaid for insurance coverage this year after underpaying last year.

Needless to say, that's frustrating. A colleague of mine with several kids who also chose the middle-of-the-road plan last year and the highest coverage plan this year has had a similar experience. We both shared a laugh at life's little ironies.

High coverage a better choice
But I still think the high coverage plan is the right one for us, and what we'll choose again for 2010. Our insurance covers two adults, plus four children ages 2 to 21. Based on that information, the chances that we'll have some significant health care costs throughout the year are probably fairly high. I may end up paying more out of my paycheck compared with a lower coverage plan, but I'll be more certain that no matter what, I'll pay a minimal amount out-of-pocket (and can redirect money I would have saved to pay for deductibles to other goals).

My mistake was trying to be cheap and pay the least amount out-of-pocket possible, and picking a plan based on a prediction of our typical health care costs (which turned out to be wrong, both times). Insurance is about replacing the uncertainty of risk with the certainty of fixed costs. The high coverage plan may mean a little less in my paycheck each month, but it also means a lot more peace of mind.

Back in the saddle...yet again

Wow...has it been three months since my last post? That's a little shocking. I may have to turn in my blogger license.

Today a former boss mentioned in a large meeting at work that I have a blog, which sparked a lot of questions from co-workers. "What's your blog about?" "Where can I find it?" "YOU have a blog?" (I particularly like the disbelief in that last question.)

Not that I've been hiding it--in fact, I can't hide it; being in the financial services industry, I had to get my employer's approval to start it (don't worry, I have complete control over content). I just haven't done a lot of self-promotion, particularly because I'm now in a department full of financial planners. Not exactly a target market for basic articles on personal finance.

Still, I'm a little ashamed that I've been tagged as a "blogger" yet haven't blogged anything in quite some time. Three months is like three centuries on the Internet.

But I'm now also motivated. Today's meeting re-energized me to start posting again. I hope it can last.

How to lower car insurance cost for your teen

This video is all about saving money on car insurance policy for your teen. Car insurance for teens is more expensive. This video discusses the things on how you can save money while purchasing car insurance for your teen. It also says about getting discounts on considering various points and how an expensive car can affect the cost of your car insurance policy. The advice given here is to check for the insurance cost before you go for an expensive car.

Investing in foreclosure properties

If you talk about investment, one of the best investments is investing in foreclosure real estate. As per the current market it's the best time to make small investment by purchasing foreclosure home for personal purpose as well as business purpose. One can purchase now to resell later for a good return.



Many upscale properties are going into foreclosure in this difficult economy, proving the notion that you can get a home only in crime-drives areas false. Beach side home and posh areas homes and now included in foreclosure.

Another point is that not all foreclosure properties are previously owned. Many foreclosure homes are new. Usually such home appears in national list. Many mid-scale and upscale homes are left for purchase. This is due to slow economy. Builders stop payment of construction loan without finding buyers for their homes which results this homes going into foreclosure.

It's time to buy a home for those you are willing to purchase a home for residential purpose and as well for those who want to invest in real estate, for rental and resale purpose.

Bill consolidation: Pay off your debts faster

Bill consolidation is an arrangement to consolidate all your loans and debts into one bill consolidation loan. Instead of paying for each loan and debt separately, you only need to make one easy to manage payment for all. Bill consolidation loan also lowers the interest rate and help you to pay off your debts faster.

There are many bill consolidation companies who can advice you for the best offer for your situation. They should be able provide you with the best offer and lower interest rates. So before you make a decision of getting a bill consolidation loan, don't forget to compare the interest rates and other terms and agreement with other bill consolidation companies.

Bill consolidation companies have skill to negotiate with your creditors and make a settlement. Sometimes the creditors may waive any late fees for other charges. They also try to lower the interest rates with your creditors. You need to make one monthly payment with the bill consolidation company, which they use to create a consolidation account and make payments. It also includes their fees. There are some interest rates like student loans and mortgage payments that cannot be consolidated.

Monthly fees are the better option to pay bill consolidation companies, as many clients drop out before in between. Although many companies charge an upfront fees which can be a large amount.

While searching for a bill consolidation company, try to look for those who only deal with bill consolidation. Companies who provide various services usually don't have a good record. Once you choose a company, remember to ask when your accounts will be fully paid. Also check your statements regularly.

How Payday Loans Work

Payday loans are short terms loan to get some fast cash when you really in need. Well, before you go ahead you should understand costs and risks with Payday loans.



Payday loans are known with different name. Some call it a check advance loan and some call it cash advance loans. Many call it a post-dated check loan and another name is a deferred-deposit check loan. The Federal Trade Commission has given another name and that is "costly cash". It's doesn't matter what you call it. It's the same thing: a short term loan with high interest.

Payday Loan Terms

Payday loan amount range from $100- $1000 and average loan term is two weeks. It cost around 400% annual interest (APR) or may be more that. The finance charge to borrow $100 ranges from $15 - $30.

Qualifying for Payday Loan

To get a Payday loan all your require is a active bank account with good standing, steady income source and identification. Payday loan lenders generally don't check your credit report.

What is Mortgage Loan Insurance?

You may have heard about paying mortgage insurance when one buys a new home or property. Yes, it's required to get mortgage loan insurance when you purchase a property or home and if you pay less than 20% as your down payment. You may be asked to get your mortgage insured even you pay more than 20% down payment. It's up to the lender and other risk factors that a lender may consider while financing your mortgage.


Why you need mortgage loan insurance?

Its the mortgage lender who ask you to get your mortgage insured as it protect them, in case a borrower cannot pay their mortgage, for some reason.

Is it mandatory to obtain mortgage loan insurance?

No, you may get some mortgage lender who finances your mortgage without getting a mortgage loan insurance. But in such cases the interest rates offered are too high and also there are other administration charges included.

Here is a chart showing the calculation of mortgage loan insurance premium:


I'll show an example for mortgage loan calculation to help you understand.

-> Price of the home (a) : $ 2, 00,000
-> Your 5% down payment (b) : $ 10,000
-> Rest down payment (a)-(b) = (c) : $ 1, 90,000
-> Insurance premium {2.75% of (c)} = (d) : $ 5,225
-> Total amount financed by lender (c) + (d): $ 1, 95,225

The lender who is financing your mortgage will include the mortgage loan insurance premium amount in your total mortgage amount and that you have to repay as per the mortgage loan terms.

Policy Expert- Compare contents insurance quotes, customise your cover and buy online or by phone. We're here to help you find just the right policy. Tel: 0845 4 100 800.