WalletPop

House in foreclosure? Set it on fire!

Tracy Coenen — 2008-05-13T11:00:00+00:00

Filed under: Home, Insurance, Ripoffs and Scams

News reports say that as the number of mortgage foreclosures increases, so do the number of "suspicious" fires. When the fire occurs mere days before a homeowner will be forced to leave their house due to foreclosure, it obviously creates suspicion.

Some homeowners do it to get revenge on the mortgage company or bank. Others do it thinking that they will collect insurance money that can be used to prevent the foreclosure. Check out this video on setting houses on fire, especially in areas with higher rates of foreclosure.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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Squeaky hips leave customers' noses out of joint

Bruce Watson — 2008-05-12T17:00:00+00:00

Filed under: Entrepreneurship, Insurance, Retire, Health

When I was a kid, my favorite Wizard of Oz character was the Tin Man. The Lion was furry, but obnoxious, and the Scarecrow was nice, but a little too spastic. Toto was a yappy little dog and Dorothy was a girl and everyone else was just too damn weird looking. The Tin Man, though, was warm and caring, could blow steam out of his head, and made all kinds of fun sounds. He was just too damn cool.

I thought about the Tin Man recently because of some problems that Stryker Orthopaedics has been having with some of its replacement hips. Apparently, the company has a line of ceramic-lined hips that are guaranteed to last far longer than conventional plastic hips.

On the bright side, the hips have, thus far, lived up to their promise: in most cases, they are showing far less wear-and-tear than their plastic competitors. On the down side, 1-7% of these implants have developed an obnoxious squeak. Unlike the Tin Man, however, Stryker's customers can't get rid of their squeaks with a precise application of oil; they need to get their hips replaced again, a costly and intense surgical procedure with tons of potential complications.On one level, this seems pretty funny. After all, most of Stryker's squeakers aren't feeling any pain from their squeaking joints, nor are they suffering from dislocation, infection, or any of the other life-threatening problems that are often associated with prosthetic installation. The replacements are still good, and will probably continue to function for decades to come. On the other hand, after listening to the sound of a squeaking hip, I realized that this is no laughing matter. Having to constantly hear the sound of a chalkboard every time I walk would drive me crazy. Add in the fact that, as one patient complained, "it can interrupt sex when my wife starts laughing," and you've got a real quality-of-life issue here.

Hopefully, I've got a few years before this becomes an issue for me; one of the best parts of being a member of "Generation X" is that I've got the whole "Baby Boomer" cadre standing in front of me, waiting to work out the kinks on any new technology. That having been said, I hope that Stryker can find a way to square things with its hip customers!

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. He is hoping that brain transplant surgery is a reality by the time he's in his eighties.

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Medical evacuation insurance: another cautionary travel tale

Michele Turk — 2008-05-09T16:00:00+00:00

Filed under: Insurance, Health, Travel

Last month, my parents went to Florida for two weeks against the advice of their four children. We were worried that my father, who is on oxygen and has multiple medical problems, would take a turn for the worse and end up in a hospital. They decided to go anyway (parents today...they just don't listen).

Before they left, I urged my father to buy medical evacuation insurance, a specific type of travel insurance that retrieves "members" from anywhere in the world and transports them to the hospital of their choice. Last year, I edited an article for a website called Traveling Mom about the benefits of an insurance plan provided by a company called MedJet Assist. Afterward, I told my parents about the company and the week before they left for Florida, I spoke with them again and my father said he bought similar insurance via American Express.

You know what happened next. My dad, who has a blood disorder that makes his hemoglobin count drop to life threatening levels (among other medical problems brought on by 40 plus years of smoking), ended up in the hospital. It got so bad he needed a blood transfusion. They stabilized him but he just wanted to get back home to New Jersey.

Lo and behold, the American Express policy didn't actually provide emergency evacuation; it just pays for your travel expenses if you have to buy a last minute ticket on a commercial airline. So my parents ended up paying for a "critical care air ambulance," equipped with a stretcher, medical life support equipment, two pilots and two medical crew members, through a company called Res-q-jets. The company flew my mother, father and brother, who flew to Florida to help out, into Philadelphia, then drove my father by ambulance to the hospital in New Jersey. This "bedside to bedside" service cost $12,000, not covered by any insurance.

There's no question it was the right thing to do because my father has spent the last month back and forth between a hospital and a rehab facility, and he's had some close calls. This is obviously the most upsetting part of the ordeal, but I'm also sick over the fact that I could have prevented the exorbitant cost -- it would have cost a mere $195 via Medjet Assist for both of my parents for two weeks' coverage. An annual membership costs $225 for an individual and $350 for a family. Medjet is just one of several such companies that offer this type of program. As far as I can tell, there is no fine print, and people can't be excluded from joining due to preexisting conditions. You just have to sign up before your trip.

When I think of the places I've been without emergency evacuation insurance -- trekking in Thailand or driving aimlessly through vineyards in the Priorat region of Spain, just south of Barcelona -- and I can't even imagine what a hospital in Vietnam back in 1993, before American borders opened up, would have been like! Given my father's experience, emergency medical insurance seems like a small price to pay and now, I don't think I'll leave home without it.

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Ask the Dolans: Should I pay for a credit monitoring service?

Ken and Daria Dolan — 2008-05-09T10:00:00+00:00

Filed under: Banks, Cards, Insurance, The Dolans, Fraud

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Dear Ken and Daria,

I realize it's important to stay up-to-date on your credit score, but is it necessary to pay for a credit monitoring service?

Jeff

Want to learn more about protecting and improving your credit score? Visit our Credit Center at Dolans.com.

Click here to ask Ken and Daria your question.

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Home owner's insurance tip of the day

Geoff Williams — 2008-05-08T10:00:00+00:00

Filed under: Home, Insurance

About seven years ago, shortly after my wife and I moved into our house, it started raining, and the roof began leaking. We hadn't been in the house a year, and so naturally we wondered if the previous owners of our home knew anything about this. But I hardly had time to dwell on the dampness of our new dwelling. About two months after filing a claim to have some roofers make some repairs, a lightning strike took out our sump pump in the basement in the middle of the night, and when I came downstairs in the morning, I was stepping onto a wet, mushy carpet underneath about two inches of water.

Before the water even receded, we filed another claim, foolishly thinking that that's what a home owner should do. What can I say? We were young and stupid. Almost needless to say, we were told that our policy wouldn't replace the soon-to-be-molding carpet and received a check for a few hundred dollars to replace my damaged fax machine and other random items in my home office. Then, as anyone experienced in this sort of thing can predict -- our insurance dropped us. Our crime? Filing too many claims. Two in about six months, in fact. I still sometimes lie awake at night, feverish and guilt-ridden for having the temerity to use my home owner's insurance.
But then, for a magazine article, I was recently interviewing Scott Simmonds, an insurance consultant in Maine who advises Fortune 1000 companies, and he told me something really interesting, an aside that I thought I'd share with WalletPop readers. And forgive me, for any of you who read this and think, "Duh--doesn't everyone know this?" Not me. I had no idea.

"In some states," said Simmonds, "when somebody goes to buy your house, they'll try to insure it, and generally about three days before the closing, the insurance company, if they see that there have been claims on the house, they may not sell your buyer home owner's insurance."

As if people selling their homes need any more good news. What might happen in that case? The buyer may back out, of course, or they may end up convincing you to shave off a serious chunk of income before signing those papers.

So the lesson to take away from all of this? To never file a claim on your house?

Almost, but, no, says Simmonds. "Don't turn in small claims. You should have a big deductible and 'eat' small claims. If your roof leaks, and there's a little damage to your ceiling, don't even call your agent, just fix it yourself," advised Simmonds, not knowing my backstory or that just a week earlier, I filed another claim for our roof, which still leaks. And, sure enough, my home owner's insurance, an obviously different one than what I had years ago, seemed pretty cranky that I had called.

Simmonds recalls a tree once falling on his own house. It bent up some gutters and tore some shingles off the roof. He never called his agent. He just put a little paint on his home and, in his words, "moved on," something I wish I had known to do.

"Insurance should be for the big stuff, like a fire," says Simmonds. "It should be for the things we can't handle on our own."

Geoff Williams is a business journalist and the author of C.C. Pyle's Amazing Foot Race: The True Story of the 1928 Coast-to-Coast Run Across America (Rodale). He is wondering if his home owner's insurance covers nervous breakdowns that are caused by having home owner's insurance.

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Marry me...I have health insurance

Bruce Watson — 2008-05-02T17:30:00+00:00

Filed under: Insurance, Relationships

It's been a tough couple of decades for marriage. Facing a current divorce rate of approximately 50%, pundits and analysts have blamed everything from secularism to birth control to same-sex marriages. One study has even noted a connection between divorce and being a "born again" Baptist! However, regardless of the reason, the one thing that everybody seems to agree on is that marriage is on its way out the door.

There might be a light at the end of the tunnel. Recently, Kaiser Permanente conducted a study in which it sought to explore the potential connection between marriage and health care. The poll revealed that 7% of Americans admitted that, within the last year, they or someone in their household had decided to get married so they could get health benefits through their spouse. This ties in with the 28% of respondents who admitted that they had experienced problems because of the cost of health care. Respondents were more concerned about health care than housing and food costs.

While 7% is a very small fraction, it highlights a major issue: people appear to be making long-term life decisions based upon their worries about health care. On the bright side, however, the decline in health care may accomplish what alimony, societal approbation, and religious tirades have failed to do: it may strengthen the institution of marriage. After all, while many people don't have a problem with adultery and others aren't worried about going to hell, nobody wants to have an untreated case of strep throat!

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. His wife has great insurance and has told him that, if he sticks around for a few more years, she'll put him on her policy.

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Help for the uninsured

Michele Turk — 2008-05-02T15:30:00+00:00

Filed under: Insurance, Health

This week, the Robert Wood Johnson Foundation is sponsoring Cover the Uninsured Week, a program launched in 2003 to raise awareness of the plight of the 47 million Americans who lack health insurance.

The foundation's web site is packed with helpful information and resources, as well as moving personal stories and facts and figures documenting the problem. Perhaps most helpful are the state profiles with specifics on eligibility and coverage information, and state-by-state guides on how to find low-cost and free health insurance programs. The site also links to events happening across the country to provide health education and to sign up families for health insurance. For example, ten health fairs are being held in California this week and weekend by various community organizations. The Robert Wood Johnson Foundation also sponsors back to school week in August to help uninsured school children enroll in health plans.

Here in Connecticut, I read about the campaign in a local paper, which mentioned that Americares runs three free clinics in the state, in Bridgeport, Danbury and Norwalk. To find out if you're eligible, visit the Americares free clinics website. The Stamford-based charity opened its first free U.S. clinic in 1994 to serve the medical needs of the working poor, although it is better known for its international relief work.

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What are you really getting with those 'legal insurance' plans?

Tracy Coenen — 2008-05-02T13:00:00+00:00

Filed under: Insurance, Ripoffs and Scams

PrePaid Legal Services and companies like it sell plans that are billed as "legal insurance." These plans supposedly help the average consumer received "free" legal services in many cases, and discounted services in other cases. They're often marketed as offering help to the "little guy" who might otherwise not be able to afford a lawyer.

The truth? These plans offer very little real help to consumers. Many types of cases are excluded under the plans, so you won't be receiving any "free" services related to them. If you do happen to qualify for services, you'll find out quickly that the services are very limited and are mostly only for time spent on trial. Many hours of legal services will be needed prior to the trial, but most of this is excluded from the plans, and plan participants will have to pay out of their pockets for those services.

More details in this video. (Disclosure: I was paid by Fraud Discovery Institute to help research the issues raised in this video.)

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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Smoking (and lying about it) could cost you your job

Tracy Coenen — 2008-04-23T12:15:00+00:00

Filed under: Insurance, Ripoffs and Scams, Health

Yesterday it was reported that Whirlpool Corp. suspended 39 employees for lying about tobacco use. The employees had signed paperwork indicating that they did not use tobacco, but they were seen smoking or chewing tobacco on company property.

The company's stance is simple: They have employees fill out paperwork that asks them about tobacco use. The paperwork says that they could be suspended or terminated if they lie. Whirlpool then uses the paper to charge tobacco users an extra $500 per year toward their health insurance premiums.

Personally, I don't care if people smoke or not. But I do care if they lie to their employer about it. The simple fact is that health insurance premiums are higher for tobacco users. The reasons are obvious: They cost insurance companies more. I think that employer should have every right to recover part or all of that additional premium based upon the smoking factor.
Now of course, this raises the issue of what employees should be held responsible for in regard to their health. Sicker people mean higher insurance premiums, so where do we draw the line? Who pays for the higher cost of medical conditions that are not the sick person's fault? I'm not quite sure. But I do know that for many years, employees were spoiled.

They had the benefit of health insurance policies that required them to pay very little out of their own pockets for their health care. There was little incentive to be responsible with health care, and it cost companies a lot of money. (What is "responsible" health care, you ask? Things like eating and living well to prevent illness, visiting a doctor for preventive health care measures and choosing to visit a doctor during office hours rather than running to an emergency room on the weekend.)

Health insurance premiums are costing companies far more money than many employees realize. Companies must move toward more consumer-driven health care options which force employees to be as responsible as possible with their health care choices. And forcing tobacco users to pay more for their more expensive insurance policies is right in line with giving employees incentives to live healthier lives.

I think the Whirlpool employees who were caught lying on their paperwork should have two choices. They can be fired. Or they can reimburse their employer for the full cost of their health insurance premiums since the day they lied, and be responsible for paying the full cost of their health insurance premiums going forward. Forcing dishonest employees to bear the burden of their own health insurance costs would certainly send a message, wouldn't it?

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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Should you buy earthquake insurance?

Tom Barlow — 2008-04-18T07:58:00+00:00

Filed under: Home, Insurance, Real Estate

After a 5.4 magnitude earthquake shook southern Illinois this morning, I wondered what would happen if my home were caught in a strong tremor. Like most people, my home insurance doesn't cover such an eventuality. Ohio is in blue on the U.S. Geological Survey Earthquake Hazards Program map of earthquake risk, so I probably won't go shopping for coverage.

Earthquake insurance is available, though. Usually sold with a large deductible, the coverage might be a good investment for those in highly vulnerable areas. Of course, the higher the risk, the higher the premium. Californians are assured that coverage is available thanks to the creation of the California Earthquake Authority The CERA points out that there is no part of the state that is immune from earthquakes.

"For many California homeowners, their home is their biggest financial asset," The CERA says on its Web site. "Without earthquake insurance, how do you plan to protect that asset from the costs of earthquake damage?"

But earthquakes aren't just a California problem. The Insurance Information Institute (III) points out that since 1900 these geological events have occurred in 39 states and been felt in all 50.

"Earthquake insurance carries a deductible, generally in the form of a percentage rather than a dollar amount. Deductibles can range anywhere from 2 percent to 20 percent of the replacement value of the structure," The III says on its Web site. "Insurers in states like Washington, Nevada and Utah, with higher than average risk of earthquakes, often set minimum deductibles at around 10 percent." Usually, you can request a higher deductible to save money on earthquake premiums.

The purple area in the middle of the country on the map above represents the New Madrid fault, which gave way dramatically in 1811-12, and could be responsible for today's tremors.

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Save big money on your lab tests

Tracy Coenen — 2008-04-14T11:30:00+00:00

Filed under: Bargains, Insurance, Health

I have a high deductible health insurance policy, so I am very cost-conscious when it comes to purchasing health care. At least twice a year, my doctor makes me get a comprehensive blood test. The amount I pay for that test can range from $100 to $250, depending on how the lab bills the test and how the insurance company decides to apply discounts. Oddly enough, the exact same blood test has netted me about 6 different prices over the last few years. Most of the time, I end up paying about $200 or $225 for the test. Until now!

My doctor's assistant turned me on to a company called Direct Laboratory Services, Inc. The concept is simple. You order a test, pay for it in advance with a credit card, get a list of laboratories near you, take the paperwork to the lab, and have your test done. You can select a lab from a huge list of participating labs, so you can essentially go where you want. The cost of my regular blood test is only $89... less than half of what I usually pay.

The benefits of Direct Labs are twofold. First, you get a bargain basement price on a lab test at the exact same lab you've always been going to. Second, you get the test results sent directly to you. No more having to call your doctor to see if they've received (or lost) your results.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Insurance that is worth the money

Jonathan Berr — 2008-04-08T07:30:00+00:00

Filed under: Bargains, Budgets, Insurance

Insurance is a necessity of modern life. Face it, there is, as yet, no way to guarantee that nothing bad will ever happen to you or that you will live forever. Oftentimes, though, people forget that simple fact and discover all too late that they did not adequately protect themselves.

The good news is that getting proper insurance coverage does not have to be expensive. Even the most pricey insurance is a pittance compared with the costs that could be incurred if you lack sufficient protection. Below are 10 types of policies that are worth the money:

Life insurance
This is especially important if people count on your salary to pay the bills, whether it's your spouse or your kids. "Many people put off getting life insurance," said Jeanne Heisler, a New Jersey agent. "It's very inexpensive, especially if you are young." Single people may not need the coverage if they have enough money to cover their funeral expenses and pay off their debts.

Homeowner's insurance
Banks require that people get this coverage before they agree to underwrite a mortgage, since it protects homeowners from damages caused on their property to other people. The key for homeowner's insurance is to make sure that there is enough to cover the replacement value of the home, according to the Insurance Information Institute. Personal items such as furniture, sports equipment or clothes are also protected under these policies from "insured disasters" such as a fire or hurricane.

Health insurance
Though millions of Americans do not have access to affordable health care, some people choose to go without it even though they can afford it. "It's surprising, the number of people," says San Francisco agent Scott Hauge, who calls such people "immortals -- the people who are under 30 years old and think they are going to live forever." Keep in mind that you get a better deal on health care services if you are insured. Health insurers get breaks from providers on everything from doctor visits to prescription drugs because of their purchasing power.

Auto insurance
Going without auto insurance is a risk not worth taking. Not only are there fines and penalties, but the costs involved in an accident where a motorist is found to be even partially at fault are substantial. The Insurance Information Institute recommends that drivers make sure that they have uninsured motorist coverage, which is not mandatory in all states.

Personal umbrella policies
This is relatively inexpensive insurance that protects people against additional risks not covered by their auto or homeowner's policies. New Orleans agent Don Beery calls it "sleep insurance," meaning people should get as much umbrella coverage as they need to sleep at night.

Flood insurance
As many residents of the Gulf Coast learned after Hurricane Katrina, homeowner's insurance doesn't cover floods. "They don't think they need it because they aren't sitting near a river or an ocean," says Heisler. But "chances of having damage from flood and rising water are greater than a fire," he asserts.

Disability insurance
Though this often is provided as a benefit by large companies, many people do not have coverage that protects them in the case of a serious accident or injury. "There is a greater chance that you will have some sort of disability during your working years than dying," Heisler said.

Long-term care
You also might want to consider coverage to pay for nursing home or at-home care once you reach middle age. "As you get older, it becomes more expensive," Beery says. Remember that Medicare doesn't pay for what is called custodial care and private insurance may only pay a very limited amount.

Jewelry and art
People with valuable art, jewelry and other collectibles need to get a rider to their homeowner's policies. Otherwise, their valuables won't be protected if they are damaged by fire or stolen. "Some people never get around to scheduling their jewelry or fine arts," says Rebecca Woan, principal of Chartwell Insurance Services of Chicago.

Renters
People who rent their homes shouldn't assume that their landlord's policy will cover them in the event of a fire or other disaster covered by insurance. Moreover, like homeowners, renters are also potentially liable for any injuries guests may incur while visiting their homes. "Compared to the amount of property you could stand to lose in the event of a severe loss at your residence, renter's insurance is cheap," according to Geico.

Pets
As dogs, cats and other pets live longer, they are starting to get many of the same ailments that affect humans, such as diabetes and heart disease, which can be expensive to treat. A variety of coverage is available that's similar to health insurance for humans. "The cost of coverage is based on the animal's age, health profile and the level of care the owner chooses to buy," according to the Insurance Information Institute. "Generally, the older the animal the higher the annual premium will be."

Purchasing the right amount of insurance for your situation can be a complex equation, so be sure to consult an adviser or agent if you have any questions. Insurance is the one product that people buy and hope to never use. But with some types of coverage, it is far better to be safe than sorry.

Though millions of Americans do not have access to affordable health care, some people choose to go without it even though they can afford it. "It's surprising, the number of people," says San Francisco agent Scott Hauge, who calls such people "immortals -- the people who are under 30 years old and think they are going to live forever." Keep in mind that you get a better deal on health care services if you are insured. Health insurers get breaks from providers on everything from doctor visits to prescription drugs because of their purchasing power.Going without auto insurance is a risk not worth taking. Not only are there fines and penalties, but the costs involved in an accident where a motorist is found to be even partially at fault are substantial. The Insurance Information Institute recommends that drivers make sure that they have uninsured motorist coverage, which is not mandatory in all states.This is relatively inexpensive insurance that protects people against additional risks not covered by their auto or homeowner's policies. New Orleans agent Don Beery calls it "sleep insurance," meaning people should get as much umbrella coverage as they need to sleep at night.As many residents of the Gulf Coast learned after Hurricane Katrina, homeowner's insurance doesn't cover floods. "They don't think they need it because they aren't sitting near a river or an ocean," says Heisler. But "chances of having damage from flood and rising water are greater than a fire," he asserts.Though this often is provided as a benefit by large companies, many people do not have coverage that protects them in the case of a serious accident or injury. "There is a greater chance that you will have some sort of disability during your working years than dying," Heisler said.You also might want to consider coverage to pay for nursing home or at-home care once you reach middle age. "As you get older, it becomes more expensive," Beery says. Remember that Medicare doesn't pay for what is called custodial care and private insurance may only pay a very limited amount.People with valuable art, jewelry and other collectibles need to get a rider to their homeowner's policies. Otherwise, their valuables won't be protected if they are damaged by fire or stolen. "Some people never get around to scheduling their jewelry or fine arts," says Rebecca Woan, principal of Chartwell Insurance Services of Chicago.People who rent their homes shouldn't assume that their landlord's policy will cover them in the event of a fire or other disaster covered by insurance. Moreover, like homeowners, renters are also potentially liable for any injuries guests may incur while visiting their homes. "Compared to the amount of property you could stand to lose in the event of a severe loss at your residence, renter's insurance is cheap," according to Geico.As dogs, cats and other pets live longer, they are starting to get many of the same ailments that affect humans, such as diabetes and heart disease, which can be expensive to treat. A variety of coverage is available that's similar to health insurance for humans. "The cost of coverage is based on the animal's age, health profile and the level of care the owner chooses to buy," according to the Insurance Information Institute. "Generally, the older the animal the higher the annual premium will be."Purchasing the right amount of insurance for your situation can be a complex equation, so be sure to consult an adviser or agent if you have any questions. Insurance is the one product that people buy and hope to never use. But with some types of coverage, it is far better to be safe than sorry.

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Ask the Dolans: Can I write my will myself?

Ken and Daria Dolan — 2008-04-04T10:00:00+00:00

Filed under: Banks, Insurance, Retire, Saving, The Dolans

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Dear Ken and Daria ,

I want to bypass my husband in my will (with his permission!) to leave everything to my three children. Can I write a will myself? Can I change it?

Darlene

Ken and Daria Dolan offer advice on all of your estate planning questions and concerns at Dolans.com.

Click here to ask Ken and Daria your question.

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A trust fund for your pet

Tom Barlow — 2008-03-28T14:00:00+00:00

Filed under: Insurance

Most of us will have the urge, as we age, to put our affairs in order so that when we die, our estate is apportioned as we direct. However, what is to become of your beloved pet? More and more people, unwilling to depend on sympathetic friends or family to properly take care of their cats or dogs, are choosing to set up pet trusts.

Why not, you may wonder, simply leave some money in the will for Pookey's care? Two reasons; the money could be held up in probate for months or years, and Pookey would get very hungry waiting for his Alpo. Secondly, the will may not contractually bind the person to whom you will Pookey's care. Can you count on their cooperation?

A pet trust can be set up with an organization such as the New York not-for-profit Bideawee animal welfare organization. For $15,000, they promise to look after Pookey for the rest of his life, providing the atmosphere and care that will help him recover from the loss of his master. There are even attorneys that specialize in setting up pet trusts. Since the trusts are not recognized in all states, checking with one might be worth the money.

So if you fear that your deadbeat son-in-law can't wait to squander your estate on the blackjack tables of Las Vegas, a pet trust might bring peace of mind to both you and your favorite lap warmer.

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Use it, don't lose it: Get insurance for your computer

Gary E. Sattler — 2008-03-24T18:00:00+00:00

Filed under: Home, Insurance, Technology

The storm season is rapidly approaching for my part of the country, and that got me thinking. Because our locality seems to be rather prone to lightening strikes, we had better make sure we have proper insurance coverage on our computers.

I've already had one modem fried by lightening. Luckily enough the manufacturer's warranty covered that one occurrence. But now, we have two rather expensive computers which are each used for generating income. You can bet that I'll be making sure they're protected by proper insurance before storm season hits.

Generally, homeowner or renter's insurance will provide adequate coverage for the average personal computer in the event of damage or theft. However, it's a good idea to check to see if the policy covers actual value or replacement value. Computers depreciate very quickly once we put them into service. In my own case, I'll gladly pay the modest up-front charge for a policy which provides replacement of my machine at current market prices for new equipment, if something unsavory should happen.

Give your insurance agent a call to schedule an insurance checkup. It's a good idea to review your coverage every couple of years anyway. When you get to that appointment, make it a point to get a clear explanation of your coverage extents and values. I recommend paying particular attention to coverage provided for collections, electronics, guns and of course your computers.

One final note: You can't buy insurance coverage for those family videos and pictures on your computer, so back those up onto a CD every month or so and keep well identified copies in a safe deposit box or with trusted family members. It may seem like an inconvenience at the time, but if tragedy strikes and you lose everything, those family memories are often the one thing that most people wish they had invested a little extra effort to protect.

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The next great insurance industry coup: Rapture Insurance

Gary E. Sattler — 2008-03-17T17:30:00+00:00

Filed under: Insurance, Transportation, Travel

Among the followers of Christianity there is a belief that prior to the apocalyptic end of the world, a majority of the believers shall be taken in an instant to their heavenly home. It's referred to as "The Rapture", and they say the time is near. Whether or not this happening shall come to pass is far beyond minds such as mine to know. However, it brings to my thinking the possibility for an unequaled opportunity for the insurance industry, such as the world has never known.

It would seem to me that there are plenty of Christians out there who are in doubt about which, if any, of their loved ones shall be taken along with them in The Rapture. It's safe to assume that every Christian believer has at least one person close to them of whom suitability for rapture is in doubt. This brings about the reasoning for my idea. Isn't it reasonable to expect that good Christian folks would want to make provision for the loved ones they leave behind when they're beamed up to their heavenly home? Rapture insurance could pay a benefit to those who are left behind when the saints go marching in.

Life insurance won't do the job because the insured party has not died. There would be no death certificate to base a claim on. All there will be is just one big POOF, and then an empty spot. Conversely, rapture insurance claims wouldn't be too hard to prove because the supposition is that all the pre-approved believers are going to be taken at the same time. That is, all except 144,000 of them who will be left behind to accomplish some yet undisclosed tasks.

I hereby call upon the insurance industry to make rapture insurance available soon. I myself won't need to purchase a policy because, for lack of a better way to put it, unfortunately I think I'll be sticking around until the final bell.

Now where'd I put my bible...

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Be a reckless driver and you'll pay for it

Tracy Coenen — 2008-03-13T12:30:00+00:00

Filed under: Insurance, Travel

The concept of automobile insurance is simple: You pay the insurance company a premium. They invest your money, hope to earn something on it, and if you have an accident, they pay for the damage. Of course, the limits they will pay and the things they will pay for depend upon the specifics of your policy.

But what if your insurance premium was $5,000 to $10,000 a year? Could you afford it? Would you cry foul?

The sad truth is that insurance companies must charge premiums that are high enough to compensate them for the risk they take with you as a driver. If you've got a history of reckless driving, there's a higher chance that you'll cost them money down the road. So they're going to charge you more money in the form of your insurance premium.

It makes sense, doesn't it? Those who cost the insurance company more should pay more. And believe me, insurance companies have huge departments called underwriting that are paid to analyze data and determine how big of a risk you are. Then they tell you exactly how much you'll have to pay.Underwriting bases their decisions on lots of factors. Your driving record is a key one, but they also use things like your age (different age brackets have a higher likelihood of accidents and reckless driving), your zip code (some areas are higher crime or more congested with traffic), and your credit history.

Wait... credit history? Yes. Insurance companies have found a very high correlation between poor credit and the likelihood of an insurance claim. Quite simply, if you're careless with your finances, you're more likely to be careless behind the wheel of the car. Some think this is unfair to those with bad credit. I think it's completely reasonable. So long as they're analyzing the data fairly and not singling you out based upon other factors meant to discriminate against you, what's the problem? Frankly, I think those who are more likely to make claims should pay more in premiums to cover their claims. Why should I have to pay more to cover the irresponsibility of others?

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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2008 Comeback Stories: The return of the house call

Michele Turk — 2008-03-05T12:15:00+00:00

Filed under: Insurance, Health

This post is part of our series about people, places and things that have found new life in 2008.

When I was growing up, our pediatrician lived two doors away. After hours, the doctor could usually be found toiling away in his garden. When one of the four kids in my family got sick, my mother would tell us to cut through the neighbor's backyard, and go tell the doc what was wrong, in order to avoid both the waiting room and the bill. Of course, the doctor made house calls if we were really sick. Such personalized medical care seems a nostalgic memory, but in some places, house calls are making a comeback.

From 1998 to 2004, the number of physician house calls increased 43% to two million annually, according to a 2006 study reported in the Journal of the American Medical Association (JAMA). House calls by physician assistants and nurse practitioners also increased during that time.

So far, the trend seems to be most common in urban areas where emergency room waits seem endless and where it can also be difficult to get an appointment with a primary care doctor. "It's really designed for major urban markets where it's more difficult to get a doctor's appointment," says Kate Dussault, chief marketing officer for Sickday Medical House Calls, a team of six doctors and four physician assistants who offer acute medical care in Manhattan via house calls. In most cases, Sickday doctors arrive at your door (or your hotel room) within an hour or so of calling.

Most doctors who perform house calls charge a flat fee for the service, unlike so-called concierge or boutique medical practices, where patients pay thousands of dollars a year to have 24-hour access to a doctor. For example, Sickday charges $250 for a 30 to 40 minute visit and some patients' insurance plans will reimburse them for the visit.

Even though there may be increased interest in house calls, the trend may not spread so quickly in part because most doctors simply don't have the time. "House calls have generally been performed by primary care physicians, an area of increasing workforce shortage," notes internist R. Hal Baker, MD, Vice President and Chief Medical Information Officer of Wellspan Health, a non-profit community based health care system in Pennsylvania and Maryland. Baker points out that without access to patients' electronic health records (containing a patient's lab results, x-rays, etc.), which are increasingly used nationwide, doctors making house calls may not be able to provide the same quality of care as in an office setting.

To find a doctor who makes house calls in your area, visit the American Association of Homecare Physicians.

Michele Turk is married to an ob/gyn doctor who does not perform house calls.

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Losing weight can save you money!

Michele Turk — 2008-03-04T11:30:00+00:00

Filed under: Food, Insurance, Saving, Health

Every time I start a diet, as I did yesterday, it seems to cost me money, which doesn't really make sense. After all, if I'm reducing the amount of food I eat, I should be spending less too, right? But I end up buying lots of fresh fruit and some out of season produce like berries, a luxury during the winter months in the Northeast. I also buy meals I don't know how to make like lowfat triple squash soup at Whole Foods - delicious, but expensive.

This time, I'm determined to lose weight without spending a fortune, mostly by making food rather than relying on prepared foods. Yesterday, as I was eating a bowl of Special K with bananas and 1% milk, I saw a segment on the Today Show called Losing Weight Doesn't Have to Cost You.

Not only did I tune it, I took notes. The long-term savings of maintaining a healthy weight include lower life insurance premiums and health care costs, according to contributor Joy Bauer. She displayed several food items and alternatives that would save both calories and money if you substituted them five days a week for a year.

We all know that syrupy sweet lattes are expensive and fattening, but here are a few more tips: skipping a 20-ounce soda and drinking tap water could save 65,000 calories and $390 a year, forgoing a 500-calorie store bought muffin for a bowl of cereal at home could save 91,000 calories and $338 and trading vending machine snacks like Sun Chips for an apple adds up to a savings of 31,000 calories and $260.

As for the two $10 frozen margaritas at happy hour? Ask for the house wine instead at $7 a glass every Friday all year long and it will save you 64,000 calories and $312. This is the only advice I dispute - I always order a full bottle of wine rather than by the glass because you get better wine and you save money. I guess I can't justify that one while dieting though.

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Ask the Dolans: Should I buy burial insurance?

Ken and Daria Dolan — 2008-02-29T16:40:00+00:00

Filed under: Insurance, Retire, The Dolans

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Dear Ken and Daria,

I'm about 65 years old and will retire soon. When I do, my company will cancel my life insurance policy. I've been hearing about these burial insurance policies. Should I buy one?

Penny

Ken and Daria Dolan offer much more advice on all things insurance at Dolans.com.

Click here to ask Ken and Daria your question.

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