Pay Early, Eat Less, Say it Like it is and Avoid Skydiving

My state insurance exam is Monday on the University of Alabama campus. So far I’ve learned a few ways to save money on insurance. First of all if you allowed to pay up-front for your insurance then you can save money. The insurance rates are set once a year so if you can go ahead and pay you will save on interest. It is like buying a car and paying cash instead of financing a car over 5 years. Unless they are using low monthly payments as a marketing strategy you are more likely to pay more for insurance if you pay monthly compared to paying annually. Second, make sure you are honest about the condition of your health. The insurance industry has a data base called MIB the Medical Insurance Bureau. They keep all the information that you have provide about your health on all insurance form so it’s a bad idea to omit information. You might end up losing your plan. Nothing is more expensive than no health insurance. Lastly, for the purpose of this blog, don’t practice risky behavior like overeating and skydiving. A body mass index of 29 or more can really drive your health insurance up. It’s nothing personal; they just look at their actuarial tables and calculate the correlation between obesity, illness and death. Then they make you pay a higher rate. The insurance industry really won’t encourage you to skydive or fly a private plane. But they will provide coverage for the privilege of risk, if you are willing to pay for it.

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