You may not remember the exact year your kids chicken pox or your appendix was removed, but you need this information when you change doctors or for annual physical forms. File your EOBs in chronological order, and you have a health history to share when needed.
Occasionally, insurance companies do make mistakes. Use your EOBs to verify whether or not they paid a claim.
Because you pay for insurance, you want to get the most from your benefits. Your EOBs verify that you've received the services you pay for, including specialist visits or medication.
Use your EOBs to conform that you qualify for a medical expense deduction on your tax return.
High deductible insurance plans are growing in popularity. If you have one, use your EOBs to track your year-to-date deductible total.
People with normal health should keep health insurance EOBs for one year. After completing your medical history and verifying that there are no billing discrepancies or unpaid invoices, shred your EOBs. Otherwise, keep them until the issue is resolved.
Consumers with serious health issues will follow the similar recordkeeping system with several key variants. First, keep EOBs for at least five years after your health condition is clear or for seven years if you filed Schedule A. Organize and store them indefinitely if you have a chronic illness.
Do you have a term, whole or universal policy? The type of policy you have determines premium costs and whether you have coverage until you die or for a set time like 15 or 30 years. Because your family size, income or debts may be different now than when you purchased the policy, evaluate whether or not you need to switch to a different type of policy as you meet your family's needs.
When you bought your policy, you may have chosen the cheapest carrier or went with a familiar name. Now, you may be able to extend your coverage with the same carrier or switch carriers and get a better rate.
If you or your loved ones were to have any questions about your coverage, premium or benefits, you need the policy number. Make sure it's clearly marked on your policy so you can find it quickly.
When was your life insurance policy first issued? If it's a term policy that's set to expire soon, consider renewing it, especially if your dependents are still young.
It's easy to pay a life insurance premium without thinking because it's probably not as high as your mortgage or car payment. However, you could be overpaying, especially if you pay monthly instead of annually or semi-annually. Also, check to see if an automatic debit from your checking account lowers your costs at all.
Who will receive the death benefit of your life insurance policy? Make sure the correct people are listed as beneficiaries to reduce confusion and conflict.
Life insurance companies give you a policy in the hopes that they will collect the premiums but won't have to pay the benefits. In a sense, they're betting that you'll live a long life. That's why you'll pay more for a policy if you're older. Your life expectancy is lower at that time, and the insurance company charges more to cover their increased risk. For the best rates, buy life insurance when you're young.
Men typically have a shorter life expectancy than women, which means they're more likely to die before their life insurance policy matures. Because life insurance companies assume a higher risk to insure men, you'll pay more for a policy if you're male.
Several health factors cause life insurance premiums to rise because they reduce life expectancy. These factors include diabetes, obesity, high cholesterol, hypertension and smoking. If you are obese or smoke, for example, expect to pay up to double the normal rate for your life insurance policy.
Maybe you have a clean bill of health but your parents or a sibling have a history of heart disease or diabetes. In this case, your life insurance premiums will go up because your risk of developing these conditions is high.
Work in a career that's high-risk or has a high mortality rate, like commercial fishing or ranching, and you could pay more for life insurance. Risky hobbies like motorcycle racing or high diving include higher policy costs, too.