Copayment and Coinsurance in Health Insurance Policy Georgia GA
Reader’s Question:
Is there a difference between the words copayment and coinsurance? What do these mean? I’ve heard them being used interchangeably, so I wonder. This is Mike from Georgia.
Mike
Atlanta, GA
Hello Mike of Atlanta! I bet we all wish we never had to spend a single cent when we go see a doctor. We have health insurance coverage after all but sadly that is not the case. The amount of money you have to pay physicians whenever you are in need of them is called copayment. The rest of the expense will be shouldered by the health insurance company. Buying prescription drugs is the same story. How much the copayment will be depends on the terms of your health insurance policy. HMOs or Health Maintenance Organization.
Coinsurance is similar but the term is used for health insurance policy with broader coverage. It may come in various proportions such as 80/20, 70/30 or 90/10. So for instance, you find yourself in hospital, 80 percent of the medical cost will be covered by your health insurance policy. Twenty percent of it will be paid by you.
One basic difference between the two is that copayments are set in fixed amounts that can go as low as $15 and as much as $40. It really depends on the type of medicine you purchase. Buying generic drugs means you pay less. Refer to your health insurance policy for details.
Tags: Health Care, health insurance
Avoid Increased Car Insurance Premium Georgia GA
Reader’s Question:
I got a traffic citation for rear-ending someone’s car in an intersection here in Georgia. Minor damages to the other driver’s car were sustained, but I have negotiated to pay for repairs to avoid filing a claim with my insurer. My driving record has been clean since I obtained my license two years ago. Is there a way I can negotiate to have this ticket removed so my car insurance wouldn’t consider raising my premiums?
Sandra
Savannah, GA
Having a clean driving record is definitely one of the things considered by car insurance companies when computing for your premiums. Your driving record can also be a basis for obtaining discounts from your insurer. So, this ticket is a minor setback for you. It would be advisable for you to take a defensive driving course. The State of Georgia may elect to remove or dismiss your traffic citation upon completion of the said course. You have to remember, though, that this can only be taken once in a period of one year and can only be taken up to five times if you are trying to have tickets or points removed from your driving record. There are two ways you can go about this. You can take it the traditional way, where you attend the course in a classroom. Others however opt to take the classes online where it is self-paced. You can log-in or out anytime you want. You have to remember, though, that completion of the online course is your sole responsibility. You also have to shoulder the fees for taking the course. An online defensive driving course in Georgia costs $29.95. This amount will prove to be very cheap compared to an increased premium in the future.
Tags: auto insurance claims, auto insurance premium, Car insurance discounts, traffic violation
Decreasing Term Life Insurance Georgia GA
Reader’s Question:
What kind of life insurance would I need to get if I only want coverage while paying my house mortgage here in Georgia? How about a decreasing life insurance policy?
Creath
Savannah, GA
Some people would find enrolling under a decreasing term life insurance policy would be best since the life insurance premiums decreases over time. This is one of the major kinds of term life or temporary life insurance where the total amount of life insurance coverage decreases as the policy matures. Lets say you take out a decreasing life insurance coverage there in Georgia with a face value amount of $100,000 that decreases $20,000 annually over a five years coverage period, by the fifth year, your premiums would have been very low however if you die within the fifth year technically your beneficiaries would only get $20,000.
An alternate would be a level term life insurance policy which would keep your rates as well as the amount of the insurance coverage level throughout the whole period. This would be more advantageous since your beneficiaries are assured of the entire coverage amount even if you happen to die during the last year of your life insurance coverage period.
So if you buy a large amount of coverage (or also known as “Face Value”) and intend to use this amount to cover the remaining mortgage amount on your house, level term life insurance would be your safest bet. It may be a bit more expensive then a decreasing life insurance term but you get the peace of mind knowing that your beneficiaries will get the full benefit amount regardless of what happens.
Tags: life insurance, life insurance advise, cheap term life insurance, advise
Decreasing Life Insurance Georgia GA
Reader’s Question:
I want to get a life insurance policy that can pay off my mortgage balance upon my death. What life insurance policy do you suggest?
Peter
Columbus, GA
If you are looking for a mortgage protection policy, your choices are decreasing term life insurance, level term life insurance and whole life insurance policy.
The decreasing term life insurance is also known as the basic mortgage protection life insurance and is the most popular mortgage insurance protection. With this type of term life insurance policy, the premiums are level in the entire life of the policy and death benefits are decreasing in the same manner as the mortgage balance. With decreasing term life insurance policy, the face value will be the same or higher than the amount of the mortgage balance.
Level term life insurance policy is also used as mortgage protection insurance in some cases. For example, a 10 year term policy can be used to pay your 10 year mortgage payments. Upon your death, the life insurance company will pay off your due mortgage balance with the bank.
The cash value in whole or permanent life insurance policy can also be used to pay off your mortgage balance. While you are still alive, this cash value builds up over the years. There are types of whole life insurance policy to choose from. These are universal life, variable life and variable universal life insurance policy. The whole life insurance policy though has a higher premium than that of term life insurance policy.
Tags: term life insurance, whole life insurance
Life Insurance Beneficiaries Georgia GA
Reader’s Question:
Are there any other options on how I want my beneficiaries to receive the life insurance proceeds aside from one lump sum?
Jimmy
Atlanta, GA
People usually purchase life insurance policy to provide additional income for their beneficiaries because of a loss of a source of income caused by death. The benefits from the life insurance policy can be paid to the beneficiary in one lump sum or monthly payment. However, there are still other options to choose from.
Life income with no certain period provides income to the beneficiary as long as he/she lives. Once the beneficiary die, the payment of income ceases. Life Income with certain periods on the other hand allows the beneficiary to choose to receive the income or proceeds in a certain number of years like 10, 15 or 20. For example, in a life income with a 20-year period, if the beneficiary dies after receiving 2 years of the income from the life insurance company, the income will not cease until remaining 18 years is complete. With Joint and Last Survivor Income option, proceeds will be paid to the two beneficiaries. If one person dies, the remaining beneficiary will continue receiving the income. Only if the remaining beneficiary dies will the payment of income ceases. Interest Income option allows the beneficiary to collect only the interest in whatever manner while the principal remains intact with the life insurance company. With Fixed Period Income option, if the beneficiary wants to receive the proceeds in a period of 10 years, the life insurance company will pay an equal amount each month, quarterly, semi-annually or every year for 10 years. The last life insurance settlement option is called fixed amount income option. The beneficiary decides the amount he/she wants to receive every month until the life insurance benefit is exhausted.
Tags: life insurance
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