Did your car, home, or health insurance company raise the cost of your plan this year? At a time when insurance premiums continue to escalate, is there something a family can do to offset the rising cost of insurance and higher pharmacy expenses? Yes, there are some very simple ways to get more out of an income that doesn’t seem to be keeping pace with the rising cost of insurance premiums and medical expenses.
Let’s begin by taking a look at homeowner’s insurance. When was the last time you made a claim on your home and how much did it come to? Many homeowners have their deductibles set at $500 and this is one place where an adjustment can be made. Consider a $2,000 deductible or up to a 2% of the value of the home. Your savings could be in the hundreds per year.
Now consider your auto insurance premiums. They can be lowered with higher deductibles. Instead of paying the higher rate for a lower deductible policy, why not raise the deductible amount and put the difference away into a special fund should you need to use it? Fairly soon, you will more than make up the difference, and you will find yourself ahead of the game.
Next, consider your health insurance premiums. If you pay all or part of your own health insurance premiums, consider a higher deductible. It will lower your monthly premium. Better yet, consider a health insurance savings plan. You insurance premium will be lower by the hundreds. Your deductibles will be higher, sometimes up to $3,000 per person or $6,000 per family, but you will only pay for services used – rather than paying whether or not you use the service.
What’s even better about health savings plans is that you are allowed to put in close to $6,000 per year into that account that will not be taxed as long as it is used for medical expenses. If not tapped into, over the years you could accumulate a sizeable amount. Of course if you take the funds out for uses other than medical, you will be taxed on the amount.
You can save on your prescriptions by using a mail-order pharmacy for a 90-day supply. Plus, go generic whenever possible. Sometimes folks have saved money by obtaining a double-dose size pill and cutting the pill in half. One more way to save on pharmaceuticals is to ask your physician for any samples of the drug he or she might have on hand. You’d be surprised how many samples some physicians have been given by sales distributors that are just in storage waiting for a recipient. It might as well be you, if you are in a place of hardship financially.
You can save on the cost of insurance premiums by raising your deductibles. Furthermore, you can save on the cost of medicine by buying generic drugs through mail-order and by asking your physician for free samples of products he or she might have on hand. These suggestions can help the average family handle increased medical and insurance costs at a time when family or individual incomes are not keeping pace.