Child Heading to College
Q: My child is heading off to college this fall. What insurance issues does this raise? Answer: As you send your children off to college, you probably have a lot of things on your mind - whether they'll eat right and get enough sleep, how to pay the tuition bills, what to do with that empty bedroom, etc. For most people, insurance concerns are pretty low on the priority list. But there are some important issues you should consider. |
Child With Health Problems
Q: I'm adopting a child with health problems. Will I have trouble adding him to my health insurance policy? Answer: Whether the child you are adopting has health problems that can be corrected with proper treatment, or has a medical condition that will require ongoing care, you may be concerned that your health insurance provider will refuse to cover your child because of his pre-existing condition. But if you have group health coverage, take heart. The Health Insurance Portability and Accountability Act of 1996 bans group health insurance companies from excluding newly adopted children from coverage because of pre-existing conditions. The law also includes a "portability provision." If you change jobs and enroll in a new group insurance plan, the new insurance company must cover your adopted child. |
Protecting Your Child When Driving
Drive with peace of mind, knowing you're doing everything you can to protect your child's life when you're behind the wheel of the family car. Remember – that's precious cargo you're transporting in your back seat. Make sure your children are properly secured, before you start the car.Buckle up for some sobering statistics on highway deaths, figures that underscore the importance of using proper child restraints for young passengers – a child car seat, booster, or seat belt. In 2003, the National Highway Traffic Safety Administration reported that there were a total of 42,643 traffic fatalities in the United States. The age group of children up to 14 years old accounted for 5 percent (2,136) of those traffic fatalities. An insurance trade organization official focused on why many children die in vehicular crashes. "…Kids typically die because they were out of position, meaning that the child in the seat belt, car seat, or booster was either not properly put into the restraint or the child got out of the restraint," according to Dan Kummer, director of personal lines-auto for the Property Casualty Insurers Association of America (PCI), headquartered in Illinois. Consider sound advice from Russ Rader, spokesman for the Insurance Institute for Highway Safety, in Virginia. Many children who die in vehicular crashes were riding completely unrestrained, said Rader. "Riding unrestrained in a motor vehicle always has been the greatest hazard for children." Rader and the American Insurance Association's David Snyder both emphasized the importance of children riding in the back seat of a car. Rader identifies the back seat as the safest spot for young passengers. "This was true before airbags, and now it's doubly true. Infants and children riding in back seats cannot be in the paths of inflating airbags," said Rader. |
Kids Off to College? Make Sure They're Protected
Sending your kids off to college can be hard. All along, you've shielded them from injury and danger, but now they're on their own. Fortunately, you can still help protect them by making sure that they have the appropriate coverage.
Health insurance coverage is a must Health insurance coverage is just as important for your college-bound child as it was when he or she lived at home. Accidents, illnesses, unexpected emergencies, and routine conditions may require expensive medical treatment. Many colleges even require health insurance coverage as a condition of enrollment. Another option is to buy health insurance directly from your child's college (if offered). Since plans vary, pay close attention to cost and coverage provided. When reviewing a plan, consider the following:
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When Two Become One: Organizing Finances Once You Get Married
They say communication is one of the most important things to have in a relationship. This is true, not only for things that concern your personal lives, but also for your financial lives as well. To organize your finances into one, it is important to have open communication with your significant other and to figure out what your net worth truly is as a married couple. To do this, list your assets in one column, and your liabilities in another. Subtract your liabilities from your assets, and the final product is your total net worth. Your net worth can give you a good look at your overall financial picture, and if in the event your results are low, you and your significant other can then develop a financial plan. It is also important to discuss your short-term and long-term financial goals. For example, a good thing to do would be to make a list of your short-term goals (like planning a family vacation) and your long-term financial goals (like saving for a new house or retirement). Then prioritize your goals by matter of importance, and then ask yourself these key questions:
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Issue #1: Health insurance - make sure your child is covered.
Your medical plan probably covers your children until they're somewhere between 20 and 24 years of age, regardless of whether or not they live at home. But if the plan is an HMO and your child's college is far from home, accessing an approved provider may prove difficult. As an alternative, consider purchasing health insurance coverage through your child's college. Many colleges and universities offer low-cost health insurance for students. Cost and level of coverage vary greatly from one school to the next, but school-subsidized health insurance is often less expensive than continuing coverage through your existing health plan. And since health care is typically provided on-campus, it may be easier for the student to access.
Issue #2: Homeowner's/Renters insurance - make sure your child's possessions are covered.
If your child lives in a dorm or other university housing, their personal property is typically covered under your homeowners insurance policy. Check your policy for coverage limitations on computers and stereos, if your child can't live without these. Once a student moves out of the dorms and into an apartment, they are usually no longer covered under your policy. Off-campus students should purchase a renters insurance policy to cover their possessions.
Issue #3: Auto insurance - make sure the car is covered.
If your child will be taking a car to school, make sure the car is properly insured. If the child owns the car, then the insurance policy must be in the child's name as well. If the child is "borrowing" a car from Mom and Dad, the child must be listed on the insurance policy. Some insurance companies may require the child to be listed as the primary operator, since the car is in the child's possession and not the parents'.
