Locating an adequate insurance policy can protect your assets in case something bad should happen, but finding it may require careful thought and consideration. Consider cost, coverage, provider network, and drug coverage when selecting a healthcare plan, as well as your typical healthcare usage and any special needs you might have for it.
1. Home Insurance
Homeowners insurance protects your property and possessions from damage caused by covered perils, and different policies provide varying levels of coverage. Before selecting one, it’s advisable to compare quotes before settling on one policy. Search for an insurance policy with sufficient dwelling and personal property coverage for rebuilding, or at least covering its market value. In addition, extended replacement cost coverage might provide extra peace of mind should building costs rise significantly after your loss.
Focus on companies with excellent financial ratings and an established record in customer satisfaction and claims handling; you can find this information on websites such as Bankrate or Weiss Research.
2. Auto Insurance
Car insurance provides essential protection in the event of an accident but can be an expensive proposition, thus making it essential to carefully compare various policies available before selecting one.
Be sure to review both required and optional coverages carefully. Standard examples of required coverages include liability coverage, which covers expenses from any accidents you cause, and collision coverage, which helps repair or replace vehicles after an incident has taken place.
Additional coverage options could include uninsured/underinsured motorist coverage, which reimburses for injuries caused by drivers who don’t carry sufficient auto insurance policies. It is also wise to consider your premium cost as well as their financial ratings before selecting an insurer.
3. Life Insurance
Life insurance plans come in various shapes and sizes; there’s sure to be one perfect for you whether you’re leaving behind your parent’s plan, looking to replace an older policy, or purchasing it for the first time. Deciding upon an adequate policy requires thoughtful analysis as well as expert advice.
How should you select the ideal policy? By understanding your individual needs and selecting companies offering those options. When making your selection, look for ones with excellent customer service and affordable premiums. Life insurance policies are intended to pay out a death benefit when their insured person dies, in the form of money to support dependents, cover debts, and more.
4. Health Insurance
There is an array of health plans to choose from. Some offer comprehensive coverage and an exhaustive list of covered services; others are less costly but require you to select a primary care provider who will coordinate treatment and refer you to specialists as needed.
Be sure to understand your monthly premium, deductible, and copays before selecting a plan. In particular, verify whether any medications you take are included in the drug tiers offered by each plan. When shopping on the Health Insurance Marketplace, find out about tax credits (subsidies), which could reduce costs further, or use a Health Savings Account instead to pay your deductibles.
5. Long-Term Care Insurance
Long-term care insurance provides coverage for costly and prolonged care needs as you age. Many policies are tailored specifically for home healthcare and assisted living needs; other products, like life and annuity insurance policies, may also offer coverage.
Standalone long-term care policies are sometimes known as “use it or lose it” policies because if you fail to utilize them as planned, your premiums may become forfeited and may need to be paid again later on. You can purchase such coverage through private insurers or fraternal benefit societies. Some newer policies offer features like inflation protection to keep up with rising costs, and you may even be able to exchange existing life or annuity policies for long-term care coverage, according to Benz.
6. Business Insurance
Business owners with small investments have various insurance policies available to them to safeguard their investments, from legal liability coverage to workers’ comp. Finding an insurance plan suitable for your small business involves carefully considering risk, budget, and coverage needs before selecting one.
Common policies for businesses include business property insurance, which covers damage to a building and its contents; professional liability insurance to offset lawsuit costs; errors and omissions insurance to cover legal fees associated with mistakes or failure to perform services; workers’ compensation coverage, which reimburses medical expenses and wages when employees are injured on the job; and workers’ compensation coverage, which provides coverage if an employee becomes disabled during work-related incidents.
7. Disability Insurance
Individual disability insurance provides an essential way of replacing income that would otherwise be lost should illness or injury prevent you from working, making it an attractive solution for business owners, self-employed professionals, and others who rely on bonuses or commissions not covered by an employer-sponsored policy.
Group disability policies offered through employers typically use a broad definition of disability, such as “any occupation.” Individual policies, however, may have more stringent definitions or offer additional riders or features. Benefits from individual policies don’t typically incur taxes (unless paid for with pre-tax dollars); on the other hand, group plans paid in part by an employer usually do.
8. Critical Illness Insurance
Serious illness can be physically and emotionally draining while also taking an economic toll. Debt can quickly accumulate and deplete savings; critical illness insurance can provide assistance.
This supplemental plan pays out a lump sum benefit if you are diagnosed with one of its covered illnesses, allowing you to use that money however you wish—including copays and deductibles, missed income, prescription medication costs, and therapy sessions, as well as everyday expenses like rent and groceries. Just like life insurance policies, critical illness policies also undergo underwriting in order to assess risk. Usually this will depend on factors like age, smoking status, medical history, and body mass index.
