R.C.Boden Insurance Group - Frequently Asked Questions

Get a FREE Quote Today - Call 1-916-626-3305

1. Frequently Asked Questions
  What is included in my Home Owner's Insurance policy cover? Is there anything specific I need to keep in mind before buying a policy?
  
  Your Home Owner's Insurance covers your house, any permanent fixtures and fittings, garden walls, gates, fence, pool and your personal belongings. Home Owner's Insurance protects you from specific types of home-related accidents and incidents. The most common types are fire, theft and vandalism. It also provides additional living expenses such as hotel expenses in case you are unable to stay in your home due to accidents or other incidents. The policy also provides liability protection. Ideally, you should select the amount of coverage which can replace your home and property plus some amount to cover your liabilities. Also, if you are staying in a flood or earthquake-risk area, you should separately purchase flood/earthquake insurance as Home Owner's Insurance doesn't usually cover flood and earthquake.
  
  Back to top
  
  May I increase or decrease the amount of insurance on personal items in my home?
  
  Initially, your personal property coverage usually reflects 50 percent of your home insurance coverage. It may be increased or decreased, depending upon state requirements.
  
  Back to top
  
  Can I lower my home insurance premium?
  
  Yes, you can lower your home owner's insurance premium by asking for discounts on your current policy, holding multiple insurance policies with your insurance carrier and raising your deductible.
  
  Back to top
  
  What happens to me if I drive without auto insurance?
  
  If you are involved in an auto accident and found to be driving without car insurance or proof of financial responsibility, you will be subject to penalties specific to the laws of your state. It could include a fine or loss of driving privileges. If you are uninsured and in an accident that involves property damage or injuries to people, you will be required to pay on your own for any damages assessed by a court.
  
  Back to top
  
  What do I do if I meet with a car accident?
  
  First, you need to notify the police. Exchange information with the other driver(s) involved in an accident. Next, immediately contact your insurance company. Do what the insurance company advises you to do.
  
  Back to top
  
  What is Term Insurance and how does it differ from Life Assurance?
  
  There are two main types of life insurance policy. Term Insurance pays out a sum if the holder dies during the fixed period of the policy. Life Assurance also offers a lump sum payout to dependents should the policy holder die during the period of the policy; but if he/she survives that period then he/she will receive the payment. Life Assurance is also seen as an important investment option. The payments for Life Assurance are greater than Term Insurance.
  
  Back to top
  
  Why do different people pay different levels of premium?
  
  The amount you pay depends on the level of risk you provide to your lender. The price you pay for life insurance mainly depends on your age, health, lifestyle and occupation. So if you are older, have health problems and smoke, and happen to work in a dangerous environment, you will have to pay more for life insurance than someone who is younger, healthier, a non-smoker in a low risk occupation.
  
  Back to top
  
  What is Limited-pay Insurance?
  
  Limited-pay life insurance is a type of insurance where all the premiums are paid over a specified period after which no additional premiums are due to keep the policy alive.
  
  Back to top
  
  Are the proceeds of life insurance policy taxable?
  
  Generally they aren't subject to income taxes. However, they may be subject to estate taxes such as inheritance tax.
  
  Back to top
  
  How long after filing an insurance claim do you receive the payment?
  
  You should expect to receive forms and information in 5 to 10 days. Once the Death Certificate and forms have been returned, payment should be issued within the same time frame.
  
  Back to top
  
  What is an HSA (Health Savings Account?)
  
  An HSA is an innovative approach to health insurance signed into law in December of 2003, made available January 1st 2004
  
  An HSA plan has 2 components:
  - A qualified high deductible health insurance plan
  - An Individual Tax-exempt Trust (savings/investments)
  The trust account is designed to pay for routine medical expenses/and or provide savings for the future. Money put into the account can be used either during the year or accumulated in the account. Allowable medical expenses are defined by the IRS, and are much broader than most insurance carriers (i.e. includes dental, vision). Individuals can deduct dollars contributed to the HSA account from their gross income, resulting in tax-free medical dollars. The account is similar to an IRA account, however it is for qualified medical expenses.
  - HSA premiums are lower than other fully-insured plans with co-pays.
  - In theory, the funding of the health savings account comes from the dollars not being spent on a plan which "pays" for the privilege of co-pays and lower deductibles.
  - By allowing individuals to keep the money in the account not used, the government reintroduces the consumer into the health insurance equation; creating an incentive to check bills, compare costs, and evaluate urgency/frequency of appointments.
  - The plan must meet certain criteria.
  Back to top
  
  Why an HSA?
  - To combat the rising cost of healthcare
  - Recent trends in cost- shifting from employers to employees is noticeable, and has employees vested in finding a solution to the problem
  - To make the healthcare system cost-efficient by reducing the subsidies inherent in a third-party payment system
  - Reward individuals that efficiently manage their healthcare dollars
  - Desire for individuals to take more control over HOW medical dollars are spent
  - Provide a lifetime savings vehicle for medical expenses
  - Individuals want to have more control over their financial destiny
  - With a an HSA, Health insurance plans start looking AND COSTING like other types of insurance i.e. auto, homeowners
  Back to top
  
  Who is eligible for an HSA?
  
  An individual needs to be covered by a QUALIFIED high-deductible health plan to set up a Health Savings Account.
  
  In addition, individuals can not be
  - covered by a health plan that is not a qualified high-deductible plan
  - claimed as a dependent on someone else’s tax return.
  - entitled to Medicare benefits (age 65 or older)
  Note: A spouse can have single coverage under an HSA, if they are not covered under the other spouses plan. The account however, is for the individual covered under the HSA qualified plan only.
  
  HSA rules are determined at the federal level. Individuals may be eligible under state guidelines (domestic partners, civil unions etc.) for qualified-health insurance coverage, BUT not eligible to open the savings account portion of the plan.
  
  Back to top
  
  Is an HSA right for everyone?
  
  No. While many people will benefit from the creation of HSA’s; individual insurance alternatives, situations and personal preferences will determine if it is the right type of coverage. Individuals that HSA’s will benefit most are people that save money on premiums from other insurance alternatives, and that will systematically fund the savings account.
  
  A good starting point is to look at recent years medical spending, and calculate the total dollar amount that would have been spent on premiums and medical expenses under terms of the HSA qualified plan. Compare it to the actual amount spent in the same period for insurance premiums, co-pays and co-insurance.
  
  Back to top
  
  What is an HMO?
  
  HMO stands for Health Maintenance Organization. It is an organization of healthcare providers (e.g. doctors and hospitals) that have contracted with an insurance company to offer their services at a fixed price.
  
  HMO plans tend to be very restrictive and have many rules. You will be required to select a primary care physician, who manages all aspects of your healthcare. The primary care physician must be a member of the HMO, so you may need to switch doctors if the one you are currently seeing is not in the network. If you need to see a specialist, you will be required to see your primary care physician first to obtain a referral.
  
  The major advantage to HMOs is the cost. HMOs are cheaper for the consumer than other plans. Premiums are lower than those for other types of plans. Copayments are typically very low, or free. However, keep in mind that most HMOs are for-profit businesses. They have to make money somehow, and often this means that doctors must see as many patients as possible each day and minimize costs for the organization.
  
  Back to top
  
  What is a PPO?
  
  PPO stands for Preferred Provider Organization. These organizations also have contractual relationships with insurance companies. However, PPOs are more loosely organized and are not as restrictive as HMOs.
  
  If you have a PPO, you can see whatever doctor you like, but if you choose an out-of-network physician, you will have to pay more out-of-pocket. You will not need a referral to see a specialist.
  
  PPOs cost more than HMOs, but many people choose them because they are less restrictive. You will have more control over your own healthcare decisions than you would have under an HMO.
  
  Back to top
  
  HMO or PPO - Which One Should I Choose?
  
  Choosing the right plan depends on your unique needs — and there’s no substitute for the expert advice of an insurance agent when it comes to sorting those out. But here are some general guidelines:
  
  A PPO may be best for you if:
  - You want to be able to choose any doctor
  - You have a chronic condition, such as back pain or arthritis
  - You’d prefer to use alternative medicine services such as acupuncture or chiropractors.
  An HMO may be best for you if:
  - You’d prefer fewer billing hassles
  - You will need to keep your out-of-pocket costs as low as possible
  - You have a family that will need annual physicals, well-baby visits, and OB/GYN care.
  For help deciding which option is right for you, talk with one of our agents. They’ll help you sort out your options so you find a plan that works for your health needs and your budget.
  
  Back to top