Steps To Ensure My Needs For Health Insurance Are Met ✓ Solved

Steps to ensure my needs for health insurance are met

Purchasing early of the insurance policy will help me in the future as age increases and there is a period where I will be old; it will help in catering for the diseases that may invade in old age. The other step is to choose a comprehensive health plan. Having a health insurance plan that is comprehensive will be beneficial to me as I will get coverage for a number of medical needs. The last step is to have supplemental plans specifically designed to provide extra coverage. I will choose to be offered a preferred provider organization type of health insurance by my employer. The reason for picking this is that I will have the choice of which doctors will treat me. Being at the age of 21, I consider having long-term insurance because I will be paying small premiums, and when I am old, if age-related diseases arise, I will be covered by the insurance without issues. Other factors, such as personal health history and family history, do not influence this choice. I do not need a life insurance policy because I am young and single. In the future, I anticipate that my life insurance policy will cover all my end-of-life expenses, including my mortgage if necessary, co-signed debts, expenses for my children and dependents, medical expenses while I am living, and providing a legacy when I die.

Improving Creditworthiness

The first step to improving my creditworthiness is to review all my credit reports. This review will help me discover what is working in my favor and what is working against me. Such reports can be obtained from national credit bureaus. The history of on-time payments, credit balances, loan accounts, among others, all play a role here. Another way to increase creditworthiness is to maximize the potential of a thin credit file. Additionally, it is crucial to keep old accounts open and manage delinquencies effectively. I should not close old credit accounts that are not in use. Even if the history of such accounts remains available, closing them can lower my available credit.

Preventing Identity Theft

To prevent identity theft, I must protect my personal data. When my personal data is protected, the chances of becoming a victim decrease significantly. There are foolproof methods available to guard against identity theft. Firstly, using strong passwords across all possible areas is essential. In the USA alone, it is estimated that 50% of mobile users do not protect their digital devices with passwords. Without a password, it is like not having a door to my house. Secondly, I should avoid reusing passwords across multiple accounts and devices. If a fraudster gains access to one password, they could potentially access all my accounts linked to that password. It’s also critical to avoid using easily obtainable information like names and birthdays. I should steer clear of shady websites and links, as identity thieves often create pages that resemble those of credit companies, banks, or other financial institutions. Finally, I must never share my sensitive personal information with anyone, including my credit card PIN number or social security number, as these can be used to perpetrate financial fraud.

Short-term Investments

Making informed financial decisions is crucial for future security as well. I plan to reduce expenses through advanced planning and minimizing impulse buying. For instance, I will buy food in bulk to last at least a month and opt for cooking at home rather than dining in restaurants. To prepare for unforeseen expenses, I will set a miscellaneous budget and create an emergency fund to manage any unanticipated rises in costs due to inflation. For example, I can expect the cost of living to increase significantly over the coming years. Additionally, investing in the stock exchange can help me achieve my short-term financial goals. By buying shares in companies or trading other assets such as petroleum and gold, I can ensure a steady stream of income. Opening a bank account that offers higher interest rates for savings could also be beneficial.

Increasing Net Cash Flows

In the near future, I intend to focus on increasing my net cash flows. My first step involves minimizing living expenditures significantly. I will avoid unnecessary luxuries and create a detailed budget that specifies amounts for savings and debt repayment. I plan to negotiate better salaries and explore options that allow me to maximize my income, whether through pursuing further education or negotiating during performance reviews. Understanding my debts is critical, and I will prioritize repaying those with the highest interest rates to increase my net cash flow. In the distant future, I aim to build passive income through rental properties or other investments that yield consistent returns.

Annual Savings and Investment Goals

To meet my desired investment goal of $500,000 in ten years, I will need to calculate how much I must save each year, along with the return necessary to achieve this goal. Considering my additional expenses such as annual living costs, student loans, and vacations, I will set a clear savings target that accounts for all these factors.

References

• Berchick, E. R., Hood, E., & Barnett, J. C. (2019). Health insurance coverage in the United States: 2018 (p. 2). Washington, DC: US Department of Commerce.
• Nguyen, H. T., Nguyen, H., Nguyen, N. D., & Phan, A. C. (2018). Determinants of customer satisfaction and loyalty in Vietnamese life-insurance setting. Sustainability, 10(4), 1151.
• Bellon, A., Cookson, J. A., Gilje, E. P., & Heimer, R. Z. (2020). Personal wealth and self-employment (No. w27452). National Bureau of Economic Research.
• Madura, J. (2017). Personal finance (6th ed.). Boston: Pearson.