Common Questions about Florida Life Insurance

If you have never purchased a Florida life insurance policy before—or even if you already have a policy—you likely have some questions about certain aspects of your coverage. The following questions are those that are most commonly asked in regard to life insurance policies, coverage and more.

Do I need life insurance if I’m young and single?

Although you may not have a spouse or dependents yet, there are certainly some advantages to purchasing life insurance at this point. First of all, you will be able to lock in some very low rates. As long as you pay all of your premiums on time, you will be guaranteed insurability; this means that an insurance company cannot raise your rates over time due to illness, the birth of a child, marriage or any other life event.

How many policies can I have?

You can have multiple life insurance policies from different insurance companies and, in some cases, even the same company. However, if you choose to purchase multiple policies from the same company and the total value of these policies is more than what you would typically need, you should be prepared to answer some questions about why you want to purchase additional Florida life insurance.

What if I do not pay my premiums?

In the event that your premium payment is late, most companies will give you a 30- or 31-day grace period during which your coverage will not lapse. This varies from company to company, however, so you should be sure to ask your insurance agent about the rules for your particular policy.

What happens if my coverage lapses?

When you fail to make your premium payments before the end of the provided grace period, your coverage will lapse. If you have a permanent policy that builds cash value over time, you may be able to borrow enough against it to pay your premium before this occurs. If you have a term policy and you do not make your payment, the policy will lapse and your coverage will end. Future coverage may be more expensive due to your failure to make timely payments, as well.

Can I name anyone as my beneficiary?

When you purchase Florida life insurance, you will need to name a beneficiary—or a person who will receive the proceeds from your policy in the event of your death. This person can be anyone you designate, but special rules will apply to individuals who are under the age of 18. Similarly, you can name multiple beneficiaries and determine the percentage of the proceeds that each beneficiary will receive.

Can I buy a policy for someone else?

In most cases, you can only buy insurance for someone else you have an ‘insurable interest’ in that person. This means that there should be a valid reason why you would want to purchase insurance. In the state of Florida, this person must be your spouse, live-in companion, immediate family member, child or even business partner. You can also purchase life insurance for a child or a spouse without their knowledge.

If you have additional questions regarding Florida life insurance, a policy you have purchased or the amount of coverage you actually need, your insurance agent will be happy to answer these.

Understanding the Differences between HMO and PPO Health Coverage in Florida

Most Americans, whether they are self-insured or receiving health coverage in Florida through their employers, have either HMO, which is an abbreviation for health maintenance organization, or PPO, which stands for preferred provider organization, plan types. There is also a point of service, or POS, type plan which is less common but combines the benefits of both.  

Managed Care Plans

HMO, PPO and POS plans are all known as ‘managed care’ plans because the insurance company contracts with doctors, hospitals, surgeons and other healthcare services in order to provide affordable care.  The group of individuals and entities with which the insurance company contracts are known as the ‘network’, and the patient is typically required to seek care within this group. While it is possible for the patient to receive care outside of the network in some cases, there are typically more out of pocket costs associated with doing so. How much the patient is required to pay for the care he or she receives depends upon the type of plan in place, the healthcare provider and the insurance company itself.

HMO

HMO, or health maintenance organization, is a plan in which the insured is required to receive nearly all of his or her healthcare within a network. Most of the time, consumers are also required to select a primary care physician, or PCP, who will be the starting point for all of the provided healthcare. In the event that the insured needs to see a surgeon, a specialist or receive any sort of care that cannot be provided by the PCP, then the insured is required to receive a referral from the PCP in order for the treatment to be paid for under their health coverage in Florida. Patients who choose doctors outside of the network will likely be required to pay for that care out of pocket.

PPO

In a PPO, or preferred provider organization, the care is still managed; however, there is one very important difference. Rather than a network that can only be accessed through a PCP, there is a network of ‘preferred’ providers from which the insured can select. There is no need to select a PCP and there is no need to obtain a referral in order to receive care from any provider within the network. Like HMO plans, individuals who opt to seek care outside of the network will be required to pay for that care out of pocket.

Filing Claims

One of the biggest concerns regarding managed care has to do with filing claims. In HMO plans, the insured do not have to file claims at all. Rather, the physicians and other entities providing the care are required to file claims with the insurance company in order to get paid. Providers cannot charge or bill patients anything outside of their required copays. However, with PPO plans, whether or not you are required to actually file a claim with the insurance company depends on the provider you choose. Preferred providers will file claims in order to get paid; consumers who opt to go out of network for care will need to pay in full and then file a claim to receive reimbursement from the insurance company.

Although HMO and PPO plans are both considered managed care, which is the most common type of health coverage in Florida, there are some huge differences in these plan types. Generally speaking, if you have an HMO plan, you will have fewer choices available to you when it comes to the healthcare providers and facilities that are covered under your plan. 

Why You Should Consider Florida Life Insurance for Your Child

Almost everyone understands the importance of Florida life insurance: it will help to pay for final expenses and provide security to loved ones upon your death. However, there are many people who question whether life insurance for children is really necessary. Here, we’ll take a look at some of the reasons why it should be a serious consideration.

Covering Burial Costs

There is just no arguing that funerals and burial costs can be quite expensive, and this is also true for children. Although the mortality rate for children is very, very low, a life insurance policy can provide some security. The death of a child is a difficult event, and adding financial burden to this can only make things harder. By choosing to cover your children with such a policy, you won’t have to worry about money during such a traumatic time. The costs associated with children’s life insurance in the state of Florida are incredibly low and, in some cases, you can lock in up to $10,000 in coverage for just a few dollars per month.

Medical Expenses

In some cases, children are afflicted with serious illnesses or injuries prior to their death. While medical insurance is a necessity for these things, there will likely also be out of pocket costs, as well. For this reason, purchasing a Florida life insurance policy can make all of the difference. It will take care of these out of pocket costs and reduce the burden on the family. However, it is in your best interest to purchase life insurance for your children soon after their birth. This way, you won’t need to be concerned with higher premium costs due to pre-existing health conditions. In most cases, once the policy has been purchased, the rate is locked in.

Policies with Cash Value are Good Investments

Many of the life insurance policies that are geared toward children build a significant amount of cash value as they grow, and this can double—and sometimes even triple—if the child chooses to continue the policy into adulthood. Not only is this a good investment for your child, but it also helps to provide some financial security when they choose to go to college or even if they want to use it as a ‘nest egg’ when they start families of their own. In the event of a financial emergency, they have a policy that they can essentially borrow against and repay as needed. Not all policies build cash value, though, and those that do typically have higher premiums.

Other Options

If you are still not sold on the idea of purchasing life insurance for your child, there are some other options available to you. You could always save money in some form of a savings account, such as an IRA, that will accrue interest as your child grows. This way, you can still provide your child with a sum of money when he or she reaches adulthood. If you are concerned about burial costs, many adult Florida life insurance policies will allow you to add a rider of between $5000 and $10,000 to your own life insurance in case the unthinkable should happen.

Whether or not you should cover your child with a Florida life insurance policy is a personal decision. However, with all of the benefits associated with doing so and the low monthly premiums, it is often much better to be safe than sorry in such situations. 

Is Cosmetic Surgery Covered by Florida Health Insurance

In today’s day and age, millions of people—both men and women—undergo cosmetic procedures for many reasons. Nose and breast augmentation are two of the most popular cosmetic surgeries in the United States, followed very closely by liposuction. While rare, there are some Florida health insurance companies that may cover cosmetic surgeries in some instances.

When Cosmetic Surgery is Considered ‘Elective’

Insurance companies will typically not cover cosmetic surgery if it is considered elective; the term ‘elective’ means that the patient is choosing to have a procedure that is not medically necessary. Thus, when people choose to have surgeries to augment parts of their bodies, such as facelifts, insurance companies will not cover them. The purpose of Florida health insurance is to provide affordable healthcare in times of medical need. If a procedure isn’t needed—rather, it is elected—then it is unlikely that it will be covered by any insurance policy. There are a few exceptions to this, but health insurance plans that cover cosmetic surgeries are expensive and difficult to find.

When Cosmetic Surgery is Considered ‘Corrective’

In some cases, cosmetic surgeries may be considered corrective instead of elective. The term ‘corrective’ means that the surgery is reconstructive and medically necessary. Some prime examples of such surgeries include breast augmentation after a mastectomy, nasal surgery to correct a deviated septum or even breast reduction. Most insurance companies will cover these procedures, but there are some Florida health insurance companies that will not; instead, they will pay for the part of the surgery that is considered absolutely necessary. Consumers are urged to take the time to review their policies closely in order to determine what is covered and what is not.

What if Insurance Doesn’t Cover Your Surgery?

If your health insurance plan does not cover a surgery that you have elected, there are a few things you can do. Most cosmetic surgeons offer some sort of financing to those who cannot afford to pay for it outright. There is often interest associated with such financing, so consumers should be sure to discuss these options with the surgeon or clinic; this is much like taking out a loan and it comes with a certain level of responsibility. Otherwise, you can always save the money required to have the surgery and schedule it for a later date.

Insurance Coverage for Elective Cosmetic Surgery

As previously stated, there are not many insurance companies that will provide coverage for elective cosmetic surgery. This is because insurance companies already assume a certain amount of risk when they provide consumers with coverage, and it is also because cosmetic surgery is expensive. In the event that consumers can find a Florida health insurance plan that covers such surgeries, it will likely only cover a certain percentage and up to a certain amount. This is considered an ‘allowance’—the consumer must pay for the rest of the surgery out of pocket.

If you are considering elective surgery, you should keep in mind that it is unlikely that any Florida health insurance company will cover the surgery in its entirety. There are some, however, that may cover a portion of your surgery. 

Understanding Florida Drug Insurance Plans in Florida

If you are not eligible for prescription drug coverage under Medicare or another program, you can purchase your insurance privately. Prescription drug insurance plans in Florida can be quite affordable, and they make a world of difference for those who must take expensive medications on a regular basis.

What is Prescription Drug Insurance?

Prescription drug insurance is a paid program that covers either all or part of the cost of your prescription medications. There are many different types of prescription drug insurance plans in Florida; some will provide you with a formulary, or a list of drugs that are covered, and others will cover almost any medication on the market to an extent. There are also prescription discount plans available. Since all of these plans are quite different in both cost and coverage, it is important to learn about them so that you can make the best choices for yourself and your family.

Insurance with Copays

Most prescription drug insurance plans in Florida require individuals to pay a premium, or a monthly fee, in order to have their medications covered. Aside from the premium, a copay may also be necessary. Before you purchase a prescription drug plan, you should compare the cost of the premium with the amount of the copay. For instance, it may be better to pay a $40 per month premium to receive a $5 copay than to pay $30 a month for a $20 copay. It is also important to check for policies regarding pre-existing conditions and ensure that all of the medications you need are covered under that plan’s formulary.

Insurance vs. Discount Programs

It is important that you never confuse prescription insurance with the various discount programs that are available. While these discounts can be helpful and often come with more affordable premiums, they are often not enough to provide adequate relief from the cost of certain medications. For instance, a discount program may cost you only $10 a month, but if you’re only saving 40% on a $300 prescription, you would be better off purchasing prescription drug insurance plans in Florida. Not only will you save money on this single medication, but you will also save on any future medications.

Tips for Purchasing Prescription Insurance

Before you set out to purchase prescription insurance, there are a few things you should do. First, work with your doctor to determine all of the medications you will need to take as well as how long you will need to take them. Then, find out the cost of the medications without insurance and determine whether or not a generic is available—and if your doctor will allow this substitution. Afterward, you can look into an insurance program and determine whether or not these drugs are covered as well as the cost of the drugs after the insurance is effective. Finally, perform a savings analysis by calculating your costs before and after you purchase the insurance.

Once you understand how prescription drug insurance plans in Florida work, you will be better equipped to choose the right one for your needs and your budget. Most importantly, you should make sure that the medications you need to take are included in the insurance provider’s formulary before purchasing any plan. 

Debunking the Myths Regarding Florida Life Insurance

When it comes to Florida life insurance, everyone has likely heard the five myths listed here. Unfortunately for some, these myths often lead to such things as failing to purchase enough life insurance, paying too much, or even purchasing the wrong type of insurance.

Myth #1 – Life Insurance Coverage should be Twice Your Annual Salary

The absolute most common thing that consumers are led to believe is that they only need an amount of coverage that is equal to twice their annual salaries. Unfortunately, this is often not enough coverage to ensure that final expenses are paid and that dependents are cared for. The best way for you to determine the amount of coverage you need is with a cash flow analysis, or an in-depth look at income versus expenses over time. Life insurance coverage amounts should never be determined by income earning ability or your current income.

Myth #2 – Single Adults Without Dependents Do Not Need Life Insurance

Another common misconception regarding Florida life insurance has to do with the number of dependents the insured has. You may believe that if you are not married and you have no dependents, you do not need life insurance at all. This is not the case, however, as you will still need to ensure that your personal debts, medical bills and funeral costs are covered. While it is true that you will not need as much life insurance as someone who has children or who is married, you will still need at least some coverage.

Myth #3 – The Term Life Insurance Provided by Your Employer is Enough

These days, many employers offer term life insurance to their employees—either at no cost or at a greatly reduced rate. You may think that this is enough life insurance, but it often is not; these policies are not tailored to your individual needs like those that you can purchase on your own. If you opt to take the term Florida life insurance from your employer, you may need to purchase additional insurance—either from your employer or through a private company.

Myth #4 – Only the Breadwinner Needs Life Insurance

Again, this simply isn’t true. Everyone in your household should have some sort of Florida life insurance—even children. In the event of a family member’s death, there will be multiple expenses involved. Medical bills can be enormous and funeral costs can top out at more than $10,000. Another thing to consider is the actual cost of replacing the services provided by a homemaker; cleaning and daycare costs alone can make a huge dent in your checkbook.

Myth #5 – You Should Buy Term Life Insurance and Invest the Difference

It is important to carefully consider the differences between term and permanent Florida life insurance when making this decision. While it is true that term life insurance is often the cheaper option, this is only true to a point. In later years, or when the term renews, your rate could climb significantly. You should evaluate certain factors, such as whether or not you are certain you will need coverage at death, in order to decide between term and permanent life insurance.

Buying Florida life insurance does not have to be a challenging task. In most cases, you can determine the amount you should purchase as well as the type of insurance that is best for you simply by taking the time to speak with a knowledgeable insurance agent. 

Things Consumers Should Avoid when Buying Health Insurance in Florida

When it comes to buying health insurance in Florida, consumers often tend to skip over things like the amounts of copays or deductibles in favor of more affordable premiums. However, these mistakes can become costly over time. Here are some things to avoid when buying insurance that could help consumers save money.

High Copays

When it comes to purchasing health insurance in Florida, consumers can often choose from different levels of copays in order to raise or lower their premium costs. Though this can be a great way to make coverage in general more affordable, it can be a big mistake—especially for families who visit doctors often. There are other things to consider, as well; these include things such as prescription copays, the costs associated with emergency room visits and more. Over time, if several people are going to the doctor or taking medications, these copays can add up—sometimes even up to hundreds of dollars per month. In this case, a higher premium may actually make more sense.

High Deductibles

Many of the health insurance policies that consumers purchase also come with deductibles, or a certain amount of money that consumers will be required to pay before their coverage ‘kicks in’. In many cases, this deductible hovers at around $1000, but it could be as low as $0 and even as high as $5000, depending on the policy and the coverage selected. Many consumers opt to go with a higher deductible since this comes with a lower premium, but this is not always the best choice. In fact, with higher deductibles, consumers may find themselves paying for the majority of their costs out of pocket each year rather than actually using the plan benefits.

Other Out of Pocket Costs

Aside from copays and deductibles, consumers should also consider that there are some procedures, devices and more that may not be covered under their insurance plans at all. For instance, most cosmetic procedures are not covered unless they are considered reconstructive, such as those that occur after accidents. As another example, it could be that certain medications are simply not covered under the formulary. If these are medications that an individual needs, these would have to be purchased out of pocket—or a separate prescription plan would be necessary.

Network Restrictions

Many consumers are devastated to find that their trusted physicians and hospitals are not covered under their insurance plan’s network. In some cases, individuals may be highly restricted when it comes to the physicians they can and cannot see, and emergency room visits to out-of-network hospitals may not be covered—even in true life-threatening emergencies. Before agreeing to any type of health insurance in Florida, individuals should first ensure that there are options for primary care, maternity care if necessary, hospitals and other facilities—both nearby and across the country. Otherwise, their ability to receive treatment when necessary could be compromised.

When purchasing health insurance in Florida, these are all very important things that should be considered. While saving money is always very important, this needs to be carefully considered along with the quality of healthcare that consumers will receive. 

Easy Ways for Older Drivers to Save on Auto Insurance in Florida

Many people mistakenly believe that their insurance companies are charging them higher premiums now that they have reached the age of 50 or 55. Of course, this is not often the case. Most of the time, older drivers are paying higher premiums for auto insurance in Florida simply because they have done nothing to reduce them over time. Here are some tips for doing just that.

Shop Around

It is quite easy to stick with the same insurance company just because consumers are familiar with the way it does business. However, over time, they may find that other companies are offering better rates. Every so often, regardless of a consumer’s age, it is important to do some comparison shopping for auto insurance in Florida. Different companies may offer different discounts, and the discounts that apply to individual consumers—or even their families—can change drastically over time.

Combine Policies

Another thing that individuals often fail to do is to combine all of their insurance policies with one carrier, if possible. When consumers elect to have their health, life, auto and other forms of insurance with a single company, there are often significant discounts to be realized. If this will involve switching companies, it is important to remember that allowing insurance to lapse before purchasing a new policy can cause premiums to rise significantly. For this reason, always purchase a new policy while your old one is still effective. You may be eligible for a refund if you cancel in the middle of your term, as well.

Low Mileage and Car Safety Discounts

Something else that older drivers should consider—especially those who are retired and are no longer commuting back and forth to work every day—is a low mileage discount. This is applied to policies in which the insured only puts a certain number of miles on his or her car each year, and it can also be quite hefty. Car safety discounts are given to individuals who choose to purchase cars that feature things like airbags, specialized safety belts, high crash-test ratings, daytime running lights, anti-lock brakes and more.

AARP Safe Driver Course

In recent years, the AARP, or the Association of American Retired Persons, has begun to offer a Safe Driver course to its members. This course can be taken either online or in a classroom setting and it is available in both English and Spanish. Though there is a fee associated with the course, it will provide a multi-year discount on auto insurance in Florida through many insurance companies. Not only does it serve as an incredibly helpful ‘refresher’ when it comes to the rules of the road, but it also teaches defensive driving techniques that may have been forgotten over time. Consumers who are interested can find more information on the AARP website.

Still other things older drivers can do to save on auto insurance in Florida include choosing a vehicle that is low-profile—meaning one that is not expensive to repair and is not a common target for theft, asking about higher deductibles if they would be affordable, and even considering the cancellation of collision and comprehensive coverage if it is not financially feasible.