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Thinking of having another baby? Why not? We had five in seven years and they are all winners! I love babies--especially when they're this cute!
But you may want to make sure your health insurance is squared away before you follow up on those family expansion plans. Marketplace Watch released news today that 4.2 milllion people are expected to lose their health insurance this year due to the economy's impact on businesses. That's not good news for baby lovers!
However, there are some things you can do to recession proof your insurance needs and make sure your family has the coverage you need:
- Individual Plans -- If you are currently covered under your employer plan and have family members covered under that group policy, then consider moving your spouse (and kids) into an individual health insurance plan instead. This will save loads of money and set up a policy where you could add yourself if the group plan benefits are taken away. The only time you would not want to do this is if family member have a pre-existing condition (like asthma, diabetes, etc) and you do not want it excluded from the policy. Otherwise, you can save hundreds each month by utilizing the benefits of an individual policy.
- Divide and Conquer -- Remember that there is no need for an "all or nothing" approach to health insurance. If you have a family member with a pre-existing condition (see above), then put them on your employer's group policy and let the other family members go with an individual policy. By dividing your coverage among a couple of different plans, you are paying the least price possible for the most coverage.
- Only Buy What You Need -- Be sure to comparison shop by going to a site such as http://www.progressive.com/ , http://www.netquest.com/ or http://www.ehealthinsurance.com/ . I like this site because you can compare many plans and get a price quote right away (without a sales person calling back.) You can also choose plans that fit your insurance needs. Don't buy coverage you won't use. If you're not going to have babies any time soon, then exclude the maternity coverage. By buying only what you need, you'll save.
- Term Life -- If you're healthy, then consider purchasing term life insurance. It is fully portable and you control the premiums by the amount of coverage you buy and the provider you choose. The time to buy life insurance is when you're healthy and then if the company limits those benefits, you already have a policy in place.
- Budget for Cobra -- If the rumor mill at work is buzzing that health insurance benefits will be cut, start setting aside money for COBRA. This benefit will allow you to keep the current group policy, even if you lose your benefits or your job--but it's pricey. I recommend that you set up an allotment from your paycheck and start putting a little extra each month into a savings account especially set up for this purpose. This method of recession proofing your insurance needs will help tide you over between insurance providers in the event these benefits go away.
Whether you are one of the millions who lose coverage or not, it's wise to re-evaluate your insurance needs on a regular basis. There's nothing worse than paying more than you need to for that baby!
Ellie Kay
America's Family Financial Expert (R)
