There are many different kinds of insurance but they all have one goal in mind. The different kinds of insurance are available to help protect you, and your finances.
Some of the different kinds of insurance available are purely voluntary. Other types of insurance are not voluntary, it is a must-have. Learning more about different kinds of insurance and their purpose can help you to make informed decisions about which insurance you need.
Must-Know Insurance Terms
Before reviewing the different kinds of insurance it is important that you have a basic knowledge of insurance terms. Here are some terms you should understand:
- Premium – This is how much it will cost you for the insurance.
- Policy – This is the document that outlines coverage, cost, and your responsibilities.
- Deductible – This is the amount that you will have to pay before the insurance pays out.
- Limits of Liability – This is the top tier that your insurance will cover. For example, your limit of liability on your auto insurance is $30,000, that means your insurance will pay out up to $30,000 in case of an accident.
- The cost-share – This term is relevant to health insurance. It is your share of the cost.
- Comprehensive insurance -This is full coverage insurance or the top tier of coverage. Comprehensive coverage, covers for the total loss.
- Insurance claim – This is the process of filing a notice with the insurance company that you are claiming a covered event.
- Loss-this is what you lost in the incident or what was damaged.
- Insurance adjuster – This is the person that will make decisions about your claim.
- Term-is the period of coverage.
Every type of insurance will include a deductible, a term, and a policy. These terms help you to get familiar with your insurance plan. It is important that any insurance plan is reviewed for the amount of money you are responsible for paying (deductible) how long the plan is in effect (the term) and how much you will pay for the policy (premium), at a minimum.
Why Is Insurance So Important?
The different kinds of insurance that are available can be viewed as a financial safety net. For example, homeowner’s insurance provides coverage for your home in case a storm comes through and rips your roof off. A new roof could cost you upwards of $20,000 out of pocket without insurance. With insurance, you pay a deductible (which can vary) and the insurance company picks up the rest of the tab.
Without insurance accidents, incidents, even illnesses can be financially devastating and leave you bankrupt or unable to repair the damage. Insurance is not only a layer of financial protection it is also a layer of lifestyle protection.
Different kinds of insurance are made to provide protection for different areas of your life. Some types of insurance are required under state mandate or by a lender to not only protect your interest but to protect theirs as well.
Who Does Not Need to Worry About Insurance?
If you have enough money where money does not matter than you do not need to worry about insurance. If you can pay cash in case of an accident, or replace your roofing repairs after storm damage, pay cash to see a doctor and have enough money in the bank to cover any and all expenses, you do not have to worry about insurance.
Of course, the fact is very wealthy people are typically insured to the hilt. Why? Because they do not want to be in a vulnerable position if they are in a car accident or their home is damaged from fire or another covered incident. They do not want to have financial liability.
The fact is while there are some instances where you would not “need” insurance, you still likely would want insurance coverage. Insurance reduces the risk of being wiped out financially.
Different Kinds of Mandatory Insurance
Some of the different kinds of insurance are not an option, they are mandatory, either to be in compliance with the law or to be in compliance with your lender. For example, car insurance. In every state in the US, you have to have auto insurance to register your vehicle and legally drive it on the road. If you are financing your vehicle your finance company will likely require you to have full coverage insurance to protect their interest in your vehicle.
Auto insurance can come in really handy if you are ever in an accident, but that is not the only time it is a valuable asset. Let’s say your garage doors fall off their hinges and land right on your car and bust your windshield and cause other damage.
If you have the right vehicle insurance, you pay your deductible, and they cover the cost of repairing your car windshield and body damage, and you get a like-new car back. Having this type of insurance can help to cut down on a lot of out of pocket costs.
Car insurance is not the only mandatory type of insurance. If you have a mortgage on your home, lenders typically require homeowner’s insurance. Again, this is to protect both you and your mortgage company who has an interest in your property.
Typically, any time you finance anything, the finance company will require that the property that you are financing is insured. Whether it is a used car, an RV, a motorcycle, or a home, you will need to arrange for full coverage or comprehensive coverage insurance.
In some cases, a lender may require life insurance to be a part of the deal, to ensure that if anything happens to you, they get their money. Other mandatory insurance includes social security disability insurance. You are not given an option to have this payment withheld from your paycheck each week. We look at SSD insurance closer below.
The Social Safety Net Through Insurance
Every worker in the United States pays into the social security disability insurance program. The idea behind this mandatory program is that everyone chips in and pays their dues, and if a worker becomes disabled they will be able to draw a monthly payment from the program.
SSDI acts as a social safety net to ensure that injured or disabled workers can still have the money they need to live. Of course, the program is not without problems. Some disabled workers have had problems getting their claim for disability through the complex system and have had to hire social security disability lawyers to help.
Unfortunately, many filers have to go through the appeal process three or four times before they finally get their claim through with Social Security Disability. An insurance claim attorney can help to speed up the process.
In the same vein is the worker’s compensation insurance. This insurance is typically paid by employers to protect workers while they are on the job. If you are injured on the job, workers’ compensation will cover the costs of medical payments and provide a weekly payment, until you can get back to work.
Social safety net insurance is mandatory but it is an important protection for American workers. It helps to protect the people that cannot work due to disabilities and injuries.
Business insurance is insurance that helps to protect your business from liability. It is required in many situations. For example, if you are bidding on a job, many times providing your insurance information is a requirement.
Business insurance helps to protect your business, the people that you are working for, and your employees. It legitimizes your business.
Elective Insurance Plans
Some kinds of insurance are not mandatory but it is strongly recommended that you have these types of insurance. Health insurance and life insurance are two prime examples of different kinds of insurance that no one can force you to have, but that you should absolutely have.
Health insurance provides coverage so that medical care can be affordable. Policies vary but typically you can expect coverage for:
- Diagnostic testing
Health insurance is vital to ensure that you are protected against large medical bills. Not having health insurance is a real risk to your health and to your financial security. More people file bankruptcy because of medical bills than any other reason.
Life insurance is another type of insurance that you are not required to have but it is something you should have. Life insurance pays a benefit to your beneficiaries should something happen to you. It is very important to have this type of coverage if you have a family with dependent children.
Dental insurance is another type of insurance that you are not required to have, but you should. This type of insurance comes in really handy when you or a family member needs extensive or intense types of dental care. Braces, for instance, can be covered under this type of insurance. While dental insurance typically does not pay out 100% for care, it will usually pay about 50% for things like braces, dentures, bridges, and other work. In some cases, dental insurance will pay 100% for things like exams, x-rays, cleaning, sealants, and other diagnostic and preventive treatments.
Vision insurance is another optional insurance. It can cover things like exams, treatments, and make corrective lenses more affordable.
Not all optional types of insurance are for personal health, life, or care. There are optional plans to protect your property like whole-home insurance that includes coverage for major appliances. This type of insurance can help you save money if you ever need appliance repair. This type of policy is typically very affordable and can help ensure your major appliances are protected.
How The Insurance Process Works
Let’s say that you are ready to buy some insurance, where do you start? The first thing you want to do when you are searching for insurance, and this is true of any of the different kinds of insurance, you want to compare plans.
Insurance plans can vary widely. Insurance carriers offer different coverage, different premiums, and different terms. Finding the right insurance for your needs means comparing your options. Here are some tips for comparing the different kinds of insurance and getting the best value:
- Consider the cost. The lowest price plan does not necessarily deliver the best value. When you are comparing insurance plans do not compare strictly on price alone. You want to consider what the plan has to offer. For example, you are shopping for auto insurance. Plan A’s premium is $50 lower than Plan B’s premium, but plan B includes added value like free towing and a lower deductible for the same level of coverage. In this case, Plan B may be the better value.
- Consider the amount of the deductible. Some plans seem to be less expensive because the deductible is higher. For example, Plan A comes with a $500 deductible, Plan B has a $1000 deductible. Why does this matter? Ask yourself this question, if I had to pay $1000 tomorrow for a covered service could I afford it?
- Look for added value. The real value can be in the added value. For example, Plan A requires paper claims, Plan B has an easy to use app to file claims. Plan A has a rewards program if you do not have any claims for a set period of time, Plan B does not. Look for the added value when you are considering any of the different kinds of insurance.
Of course, you can always contact a certified insurance agent that can help you to navigate the process. If you feel overwhelmed or are new to insurance, it is a good idea to get some professional help. Insurance agents do not charge you a fee. The service is free and can be very helpful in educating you about your options and helping you to make an informed decision.
Once you have picked your plan, you pay for your plan, and in some cases, the coverage will become immediate. Luckily, most insurance premiums can be paid out over time in monthly installments. Paying your premiums over time can be really helpful to your budget.
Learning more about different kinds of insurance should help you to have decided which insurance you need to protect yourself, your home, your possessions, and your family.
Most people are aware that protecting their belongings and property is important. After all, 93% of American homeowners have at least basic homeowners insurance. But what if your home is also your business? For many agribusinesses, finding the right farm insurance can be a challenge. You need a plan that will cover not just your home, but your farm and business as well. Here are just a few ways that farm insurance can protect you better than standard homeowners insurance.
Protects Your Home and Belongings
As is the case with most home insurance policies, your home and belongings are protected under most farm insurance plans. This generally includes both your home and the belongings inside, though plans can and do vary on what is covered. However, unlike standard homeowners insurance, most agribusiness insurance policies are much more customized and detailed. There are often more options available to pick and choose what is specifically covered under your plan because every farming business will have different needs.
Safeguards Possessions Related to Farming
In addition to your own personal belongings and home, your farming equipment and tools will also be covered. This can include anything directly related to your farming business, such as tractors, combines, planters, and other types of field equipment. Coverage will vary, but this way you’ll be able to have some peace of mind regarding the safety of your equipment. Because these expensive pieces of machinery are often necessary items for farmers to earn a living, it’s important that they’re covered by your insurance.
Keeps Your Crops Safe
What happens if your crops or livestock are harmed? With the right farm or ranch insurance, your hard work and investments will be covered as well. Coverage levels vary, but in the case of an emergency, you should be able to have some degree of compensation if your crops or livestock are damaged. This can help farmers get back on their feet after an unexpected turn of bad luck.
The right farm insurance offers many benefits that standard homeowners insurance can’t. If you want to ensure that your crops and farm equipment are protected, it’s essential to look for farm insurance instead of just homeowners insurance.
Agribusiness insurance is one of the emerging trends in the insurance industry where people are slowly becoming aware of the importance of accessing protection for your home. Ideally, ranch insurance covers your entire home including livestock and agricultural operations. The greatest challenge that insurance companies are having today is that there is still a significant number of people who are still struggling with the idea of farm insurance. Unlike other insurance policies such as auto insurance, life insurance and health insurance, ranch insurance is yet to make headways in the society-possibly because people don’t know if they need it. Since farmers spend most of their time working on their property, loss of property can be devastating. This is how to establish whether you need ranch insurance.
Do You Live on the Property?
This is rather straightforward when considering ranch insurance. Ask yourself if you happen to live in a farm or ranch. A standard
Congratulations on your new marriage! This exciting time brings a lot of changes, especially in regard to your insurance policies. Here are some of the changes to consider implementing to your insurance policies.
As you begin to grow your family, there are a number of factors to consider regarding your car insurance. Will you combine policies? Get a different car if you plan on having children? Drop to one car?
AAA estimates that the average cost to own and drive your basic sedan was $8,558 in 2016. That seems like a lot, but it’s a down-trend from 2015. When you visit different car insurance providers, you’ll get a number of different answers to these questions. Compare car insurance quotes can range between providers, but ensure that the party who cancels their previous coverage has insurance the day they make the switch. Lapses in coverage could lead to a spike in car insurance quotes next time
Building a family means your life impacts theirs in entirely new ways. Should you or your spouse pass away, the partner is responsible for any costs and debts pertaining to funeral costs, property ownership and more.
Life insurance policies help the living partner cope financially with the loss of the other. In a difficult time like this, worrying about money is the last thing you should be focusing on.
Oftentimes, it’s cheaper to cover your spouse on one person’s insurance. Health insurance providers usually grant 60 days for a spouse to enroll in a new single health plan or 30 days for a combined health plan.
Keep in mind that one partner will have to cancel their homeowner’s insurance when you move in together and register on the other’s policy. This is essential since you both have combined belongings.
Between insurance policies, car insurance quotes, and starting a new family, nothing seems easy as a newlywed couple. When you want to change your insurance policies, visit Nicholson Insurance for all your insurance needs. We’ll help you get the best policy for you and answer any questions you have about combining insurance policies. Call or visit us online today.
Insurance is an important thing to have if you are someone who is living in the United States, particularly health insurance. Fortunately, health insurance has become widely more accessible in recent years than it has been in the past, particularly through supplemental insurance plans like medicare supplement insurance. For many people, however, getting good insurance is still a difficult thing, and they might even find it hard to be accepted by the typical health insurance company for individual health insurance benefits. Form health care plans to medicare supplement insurance, health care coverage is an absolutely vital part of being a resident of the United States. Without health insurance and adequate healthcare coverage, it is all too likely that you will end up paying far too much for health care at some point in time. After all, here in the United States health care is nothing if not exorbitantly expensive and though health care insurance can certainly help to lower the overall
The United States is home to 2.06 million farms that cover roughly 911 million acres of land. Since many of these farms are independently owned, business insurance is a must. While most professional farms elect to carry farmers insurance instead of business insurance, they are both valid options. If you are a farmer, you might need the following coverage options.
- Business Liability Insurance Coverage
This type of coverage provides for circumstances in which a guest gets injured on your property. The insurance company that you hold a policy with will pay for any liability claims made against your business if you carry this type of coverage.
- Workers Compensation Insurance
Similar to liability coverage, workers comp coverage provides for the medical expenses of workers who have been injured on the job. Instead of paying out of pocket for employee injuries, you will be covered if the injury is within the policy’s parameters.
- Homeowners Insurance
One reason farm owners choose farmers insurance over standard business insurance is because they also get the benefits of carrying a separate homeowners insurance policy. The latter covers damages from natural disasters and theft that occur to your home, while business insurance only covers the same for your company property. Since farmers often live where they work, farmers insurance can cover both circumstances.
- Coverage for your Equipment
Equipment coverage is standard for most business policies. Farmers, like any business, are highly dependent on the continued functionality of their equipment. If something breaks and there’s no way to replace it, the farm could be in financial jeopardy.
Owning a farm isn’t as picturesque and rural as many people imagine it. In many ways, today’s farms are highly industrialized and operate on narrow economic margins. Disaster is often just one broken machine away from occurring at any time. That’s why farmers carry large insurance policies. Though you will hopefully never need to rely on your insurance company, farmers insurance is the only way to safely and securely run a profitable farm. If you are shopping for a new policy and would like to get a quick and easy quote, visit our website today.
Right now, the healthcare industry is absolutely essential to the lives of many Americans. As time goes by and people grow older, they are more susceptible to having medical issues and chronic health problems. As a result, it is absolutely essential for people to get the right type of health insurance.
Insurance can be a bit tricky to people on the outside looking in and that is more often than not why people will go out of their way to get a reliable agent that can work for them. This agent will help people have a better understanding of their car insurance, home insurance, and life and health insurance. Here are all of the facts that surround all of these important aspects of life.
By the year 2030, the last of the baby boomer generation will end up turning 65. This means that one in every five Americans, which equates to 72 million people, will be an older adult. These older adults will more than likely need help and that is why they need healthcare help in the form of Medicare supplement.
In the year of 1962, just about half of all American citizens over the age of 65 has absolutely no health insurance. This is incredibly dangerous for people whom are older in age. However, the latest data shows that only 2% of all Americans over the age of 65 have no coverage. So now, people are more prone to taking care of themselves than before.
Some people are lucky enough to get coverage from their employer. As a matter of fact, a recent Gallup poll was conducted about this top in January 2015. This Gallup poll revealed that two in every five Americans under the age of 65 have healthcare coverage from their employer!
Just about 86% of all those surveyed mentioned they would agree that most people would require some amount of life insurance coverage. This directly points to just how important this is in the eyes of most people. As a result, it is important to get this type of coverage as opposed to taking any risks.
3 in 5 people own some type of life insurance, and another 34% report a likelihood of making a purchase within the coming year. 1 in 3 U.S. adults has pre-diabetes, and most do not know it. This type of information is essential to the longevity of life.
Almost 84% of people age 65 years and older die from heart disease. For the most part, this type of issue can be treated and minimized to a certain degree. However, it cannot be done without the right type of coverage.
The United States has the highest rates of chronic health conditions, such as diabetes and heart disease: 87% of older Americans report at least one chronic illness, and 68% reported two or more. These types of chronic illnesses will require constant treatment which requires the right type of healthcare coverage. Again, this points to the idea that getting the right type of coverage is essential.
Today, more than two-thirds of all health care costs are for treating chronic illnesses. Among health care costs for older Americans, 95% are for chronic diseases. One in seven baby boomers, just about 14%, say they are currently being treated for depression, which is a higher rate than among other generations of American adults. This information comes from a Gallop poll in 2015.
Getting the right type of insurance is not going to necessarilly allow for everyone to be living a healthy life, but it will help no doubt. The right type of healthcare coverage will provide great policy plans that help people get the proper treatment that they need. This is absolutely important for people to make sure that they are getting constant help for chronic issues.
For people that are nearing or are past the age of 50, it is known that health issues start becoming more apparent. Similarly, having passed the ‘half-century’ mark, one’s mortality starts getting put into perspective. We tend to take our health for granted — especially when times are good, but it can become quite worrisome once things take a turn for the unexpected worst.
One of the better ways to ensure that you are taken care of in the event of a medical bind is through the coverage of health and life insurance. Both health insurance and life insurance are fairly definitive ways to ensure that you, and your family, are covered in the event of a health scare/disaster or, at worst, death.
Health insurance, particularly through Medicare — the base coverage for hospital insurance and medical insurance, is a surefire way to ensure that you can receive treatment without having to pay the full price for healthcare. It’s been shown that 40% of Americans under the age of 65 have some form of employer-based health coverage, while 2% of Americans over 65 lack any form of health insurance. If you happen to be one of the people that are lacking coverage, you should consider enrolling for Medicare. If you already have Medicare and you feel that you might need more coverage, you should look into medicare supplement Insurance (Medigap), which will cover the expenses that medicare doesn’t — copayments, coinsurance, and deductibles. While Medigap will not feature long-term coverage, it will help in easing the costs of health coverage that are not taken care of through Medicare.
Like health insurance, a life insurance plan is another means of protecting yourself, especially while you age. While it is not going to ensure that you receive proper health care, it will ensure that money is left in your estate even after your death. These funds can be utilized to pay for funeral/burial costs, covering any leftover debts, and more. While you might not be sure which type life insurance policies are right for you, it might be best to consider which is best for you based life insurance cost and coverage. Many people are concerned over life insurance cost, thinking that it might be more than they necessarily want to pay, but it is entirely based upon how much you are willing to contribute within benefit increments. Over time, these policies can lead towards payout from as little as $10,000 up to the millions.
Your life insurance costs will be affected based upon a number of things, dependent upon your age, health, gender, and occupation. People with chronic conditions and at an older age will tend to pay more, as the likelihood of their subsequent death is ‘more likely’ than it would be for someone young and quite healthy. Factors dependent upon region will similarly affect what your life insurance cost might come out to, but these are things to consult your life insurance coverage agent about, simply to determine if it is the best plan for you. If you’re a healthy, younger person, you should find seek out plans with lower life insurance costs, all while seeking out the highest payouts; for those that are paying more, consider seeking out programs with lower life insurance costs, all the while offering you sound coverage.
Ensuring we are monetarily covered is an important thing, whether for our health or in the afterlife, for those that have to take care of us when we are no longer here. Finding the right one is all part of equation, taking the time to get your money’s worth.
While it’s important to maintain a healthy lifestyle at any age, many older adults experience a variety of health concerns. As a result of chronic conditions such as diabetes and heart disease, this can impact an individual’s overall life style. In 2014, for example, The Commonwealth Fund reported that the United States had the highest chronic health condition rates. Their data showed that 87% of older adults reported that they experienced a minimum of one chronic illness, while 68% reported that they experienced two or more. When older adults take charge of their health, it can make a significant impact.
The Importance of a Healthy Diet
Following a healthy diet can make a difference in an individual’s overall well-being. In addition to consuming at least 1.5 to two servings of fruit every day, it’s also recommended that adults consume between two and 2.5 cups of vegetables. According to recommendations from the Institute of Medicine Dietary Reference, women 50 years of age and older should have 21 grams of fiber on a daily basis. Recommendations for men within this age bracket are 30 grams of fiber.
The Importance of a Positive Attitude
Other ways for older adults to create and maintain a healthier lifestyle include having a positive attitude. When individuals feel good about their physical appearance, for instance, this can make a significant difference. Many older Americans continue to feel positive about their physical appearance as they age. A 2014 Gallup Poll found that 66% of adults within the 65 and older age bracket “agreed” or “strongly agreed” that this was the case with them.
The Importance of Engaging in Meaningful Activities
Living an active life can also make an important impact on overall health and wellness. This includes taking regular trips and vacation and engaging in a wide variety of social activities. The 2014 Gallup Poll showed that 57% of adults over 65 create time for these and other types of excursions.
More and more older adults participate in social media. A 2015 report from the Pew Research Center revealed that during 2005, only two percent of adults used social media. This increased to 11% in 2010, and in 2015, this amount increased to 35%.
The results of a 2014 Gallup Poll showed that 49% of Baby Boomers weren’t planning to retire until they were 66 or older. One out of every ten of the participants predicted that they wouldn’t retire at all. A 2015 CareerBuilder report showed that 54% of workers 60 or older planned to continue working after retirement. During the previous year, this just applied to 45% of workers within that age bracket. While 81% stated they were probably going to work part-time, 19% planned to work full-time.
The Importance of Preventative Care
The flu and pneumonia are considered to be the the seventh leading causes of death for older Americans, according to a 2013 report from The State of Aging and Health in America. Both of these potentially serious health issues have a large chance of being prevented with regular vaccinations.
Deaths related to breast cancer can also be potentially reduced with preventative measures. Regular mammography screening is an integral aspect of this. According to The State of Aging and Health in America’s 2013 report, when women between the ages of 65 to 74 have screenings every two years, it has been demonstrated to reduce the number of deaths due to breast cancer.
Learn More About Medicare Advantage vs. Medigap Insurance
Whether you’re still working, already retired, or are planning your retirement, it’s important to consider your current as well as potential health care expenses. There are a variety of health insurance policies available, such as Medicare Advantage vs. Medigap Insurance.
When considering the benefits of Medicare Advantage vs. Medigap Insurance, you may have several questions. Once you consult with a Medicare Insurance company, you will be able to discuss the differences between Medicare Advantage vs. Medigap Insurance. Before you make a final decision as to whether Medicare Advantage vs. Medigap Insurance would be the best plan for you, be sure to consider the type of coverage you currently need and whether you may need to supplement it in the future.
Even if you live a healthy lifestyle, it is important for every person in America to have health insurance. Illnesses and injuries can happen out of nowhere, and health insurance helps to make sure your medical expenses are covered, at least in part. Out of pocket expenses for doctor’s offices and hospitals can be pretty outrageous, but with the right insurance, you can pay an affordable copay, only a percentage of surgery costs, and even pay much less when you go to purchase medications when you are ill.
A Medicare Supplement Insurance is a policy sold by private companies that helps pay for certain care that the original Medicare policy does not. It is otherwise known as a Medigap insurance, and can help cover the costs of things such as co-payments, coinsurance, and deductibles. Each policy offers different pros and cons. Some policies might offer services like medical care for when you are traveling outside of the U.S. and get injured or fall ill.
Here are three things to think about when looking at a Medicare supplement policy.
1. It is not a replacement
In order to eve qualify for Medigap policies, you need to have Medicare Parts A and B. It is required that you still pay these monthly premiums aside from what you’ll be paying your private insurance company if you decide to purchase a Medigap policy. Medigap also only covers one individual, not a family. If you are married, your spouse would need to purchase a separate medicare supplement policy.
2. It does not cover prescription drugs
In fact, it doesn’t cover a few things, but you’ll have to outweigh the benefits as well. For instance, a Medicare supplement policy does not cover prescription drugs, long-term care, vision and dental care, or hearing aids. To cover all of this, you might need to pay premiums for Original Medicare, Medigap, and Medicare Part D, which does cover prescription drugs. It might sound like a lot, but in order to be fulyl covered and face no gaps, it is probably best to invest in each of these.
3. It covers Medicare-participating doctors
The good news is that Medigap will cover costs that are associated with Medicare-participating doctors, so if you have a doctor you already regularly see and trust, then you can continue to see them and won’t have to switch.
Are you thinking of purchasing a Medigap plan? Let us know in the comments below!