On Saturday open enrollment begins for those who have yet to add health insurance, and it’s expected to be higher than it was last year. Of course, the rising cost of healthcare is a yearly thing. While auto insurance rates can actually go down for customers over time, medical insurance is a different ballgame entirely.

Because of the expense, many customers may opt to pay the penalty and go without insurance, but that is a huge mistake, especially if they experience a major medical event, such as pregnancy or cancer treatment.

In that sense, 2015 will see modest gains with an average of six percent expected nationwide, according to PricewaterhouseCoopers LLC consulting firm. However, that’s only a small part of the story. The Affordable Care Act (ACA) and traditional health insurance are fueled by the premiums of healthy people. Costs go up when there are more unhealthy people in the system than healthy people, and from the first year of ACA (aka Obamacare), it’s now known that many of the newly signed were from a higher risk pool of applicants.

Young people largely decided to sit out 2013-14’s open enrollment period and as a result, many could see increases that go well beyond the six percent quote. In fact, Blue Cross Blue Shield estimates that there could be much larger increases even for those who get traditional insurance through their employers, with young people bearing the brunt.

“The key is to get the uninsured insured and that will help us all,” BCBS VP of Sales Ron Rowe said in comments to KSHB, adding that some of the increase is also due to people who don’t understand the workings of health insurance so they stay out of the system. “We found a lot of people just don’t know and understand or have even heard of Obamacare. They thought in January they would walk to their mailbox and there’d be an ID card there; it’d be free and off we’d go.”

The federal government has spent hundreds of millions of dollars just trying to spread the word about the healthcare law. While most Americans have heard of it, far fewer have actually tried to find a place within the system.

Existing economic hardships are keeping many from enrolling because family budgets are already spread thin and many families feel like they have nothing to lose since a $2,000 bill is as impossible to pay as a $20,000 bill.

While subsidies would help many of these families afford coverage, the system is still unproven after a disastrous rollout in 2013 and 2014, and many simply don’t have enough confidence or patience to get through the enrollment process.

 

So what’s an agent to do?

For starters, even if you do not directly sell health insurance to customers, it can be beneficial to speak with them about their health insurance needs as part of basic family planning.

If it’s possible to afford a $150 per month payment, for example, that could save clients tens or even hundreds of thousands of dollars over time in case of a major medical event (and in the event they qualify for subsidies).

For families that are too cash-strapped, they might even qualify for Medicaid.

 

In Summary

With most agents committed to improving the lives of their customers, having the health insurance talk is just one more way that you can help clients get their financial acts together. Even if they are buying a policy directly fromHealthCare.gov, you can use the ACA as a way of emphasizing the importance of insurance products, the repercussions of not having them, and as a means of building trust with your clients.

Filing a home insurance claim is something that your customers will hope they never have to do. After all, they buy a house looking at it as a safe haven — an impenetrable place where they can come home and escape the pressures of the outside world. But inevitably in the life of of a home, things will arise that require action, and getting them through the process is a lot easier if you can help them understand how claims work. Generally, there are two key areas that may need to be addressed when filing a home insurance claim, the Insurance Information Institute (I.I.I.) notes — structural claims and personal belongings claims.

Before we get to that, though, here are some general things to share with customers about the overall process.

First, an adjuster will inspect damages and offer a certain amount of money for repairs. This check is not considered the final payment, but an advance against the total settlement amount. With an on-the-spot settlement, I.I.I. points out, one can “accept the check right away” and then “reopen the claim and file for an additional amount” generally within one year of the date of the disaster. This hinges on state insurance department regulations, but is generally true because it gives one a chance to catch related damages that may have initially gone overlooked.

If both structure and personal belongings are subjected to damage, the insurance company usually provides the claimant with two separate checks, one for each category, and there may also be a third check involved for additional living expenses should any be incurred during renovation/rebuilding.

 

On Structure

Checks for structural damages are typically made out to both the home insurance customer and the mortgage lender. As I.I.I. notes, the lender “gets equal rights to the insurance check to ensure that the necessary repairs are made to the property in which it has a significant financial interest.”

In other words, the mortgage company or bank will have to endorse the check.

“Lenders generally put the money in an escrow account and pay for the repairs as the work is completed,” the I.I.I. states, adding that a claimant should show the mortgage lender a contractor’s bid “and let the lender know how much the contractor wants up front to start the job.” Mortgage companies may also wish to inspect the final work before endorsing payment to the contractor.

 

On Personal Belongings

For this aspect of a home insurance claim, the I.I.I. recommends adding up the cost of everything inside the home that has been damaged in the disaster, adding that now is the time to review personal inventory, to help recall possible overlooked losses.

If one doesn’t keep an inventory, they should “look for photographs or videotapes that picture the damaged areas” and contact the bank or credit card company for proofs of purchase.

When making a list, “don’t forget items that may be damaged in out of the way places such as the attic or tops of closets,” the Institute adds.

Replacement cost policies reimburse for the cost of buying new items, while actual cash value policies reimburse for the cost of the items minus depreciation. The first check will be calculated on an actual cash value basis regardless of what the policy is, with the difference being made up later.

In Summary

Home insurance claims may take a little time and coordination, but as long as your customers are aware of the steps in the process and what to expect regarding payment, you can help them maintain their patience and peace of mind throughout.