About Health Insurance: Group vs Individual

Group vs Individual Insurance

Before deciding on a type of health plan, it's important to know what kind of coverage is out there. There are a lot of different ways to get health insurance and it's good to know what you may be eligible for before you start your health insurance search.

Group Health Insurance
The majority of people under the age of 65 have medical insurance through their employers' group insurance. According to the National Coalition on Helath Care, in 2005, over 80 percent of employees were eligible for employer-group insurance and 83 percent of those who were offered, opted for these types of plans. This is usually because employers and other organizations can get better rates because they have a large number of people to cover. The insurance company sees it as good risk because they'll probably end up paying out very little for many people in the group, while collecting premiums from everyone. Normally, this translates into premiums that are much lower than those found in individual health insurance plans and are the same price for everyone in the group regardless of their health.

While employers aren't required by law to provide health insurance, they may have a difficult time finding good employees if they don't. Also, once group insurance is offered, it falls under the protection of the Health Insurance Portability and Accountability Act (HIPAA) regulations. These regulations protect employees by ensuring that everyone is given access to the employer's health insurance plan regardless of their health status. The act also helps regulate waiting periods of health plans to help achieve continuous coverage for most employees and helps ensure that employees have access to health care if they lose their job.

Because health insurance rates are re-negotiated each year based on the previous year's health care costs, some employers offer wellness programs for their employees. By keeping employees healthier, they can lower medical costs. Participation in these programs can sometimes make employees eligible for reduced health insurance premiums. For employees who pay a portion of the premium themselves (which is typical), this can mean eliminating some or all of that charge.

Most employer's group insurance plans are managed care plans, typically either HMOs or PPOs. Both of these types of plans will be explored in detail later in this article.

Individual Health Insurance
Individual health insurance is the most expensive option for people who don't have coverage (or don't have enough coverage) through employers. Physical exams and questionnaires are usually a part of the application process, so poor health can really make a difference in the cost and eligibility. Types of insurance plans include fee-for-service plans, PPOs, HMOs and catastrophe insurance. Many companies offer health insurance for individuals and specialize in short-term coverage to fill in between employer coverage.

Tips about investing in the stock market

• The stock exchange is rarely a place where anyone 'gets rich quick'. Sure, some occasional stocks and shares will rise quickly making their owners money, but rarely will you become rich. Bear in mind that if an investment doubles in one year (which is pretty rare) you needed to be already wealthy to make a lot of money. If you invested a thousand, you will have just 'made' a thousand. You aren't wealthy or rich yet.
• Investment risk is lowered by knowledge. Every time. If you are buying shares on the stock exchange, what does the seller know that you don't? What do you know that the seller does not? You can bet your life that the buyer or seller opposite you in any transaction has done some serious research. If you don't do yours, who do you think will win? You or the market?
• It might help to find areas in which you have useful knowledge already. Either that or decide on an area and slowly become an expert. For example, if you worked in a bank for 10 years, you must know something about banking. When you read an annual report from a bank, do you laugh and see through the waffle or does it make real sense? If you can see through the waffle of some far off CEO and CFO, you can start to compare the relative prospects in the same market of competing firms. Hey - that could be an opportunity
• It isn't easy. If everyone could become a billionaire by investing, Warren Buffett would not be famous. It takes time, study and effort and most importantly - independent thought. Not everyone has the will or stamina to carry that through. Who doesn't suffer setbacks and confidence knocks?

Getting started in stock markets

1.)Try to understand why you want to invest. This is the hardest thing - looking at yourself objectively. Search for an area where you hold some strength. It is tough to make money in the markets at the best of times, so don't disadvantage yourself by investing in things that you don't understand. You'll have areas of expertise that fund managers don't. Use that advantage if you can. Warren Buffett describes this as his 'circle of competence'.
2.)Do loads of research. There's more valuable information available online than we can imagine.
3.)Learn to think independently. This is the biggest skill you can learn towards becoming a successful investor.
4.)Don't forget about dividends. Studies show that dividends make up most of an investors return over the long term. Find a way to reinvest those dividends for improved returns.
5.)Look for investments, not gambles. Learn to understand the difference.
6.)Consider a long-term perspective on your investment portfolio. These tend to earn more but over a long period of time.