Life is full of surprises. Life insurance and health insurance that protects your loved ones from the hardships caused by life′s unforeseen events is a vital part of planning for your future and theirs. Among many things, the right insurance coverage can replace lost income, pay off debt, and pay medical bills. So when you request your quote, know that you’re not just shopping for insurance, your also planning for your family′s financial independence should some thing happen to you.
LIFE INSURANCE
Term Life Insurance
Also known as temporary life insurance, term life is only guaranteed for a set amount of time with 10, 20, and 30–year terms being the most common lengths. When compared with other primary forms of life insurance, term life is inexpensive, which makes it perfect for covering debt, large purchases, replacing lost income, and many other reasons such as proving for a child′s college education, which should always be considered before requesting a quote.
Whole Life Insurance
Whole life insurance is very much the opposite of term life. It′s a permanent product that cannot be outlived; therefore, it comes at a greater cost. The only similarities between term life and whole life are that the premiums are level throughout the life of the plan. Because of its higher cost, whole life insurance is better suited for covering smaller amounts of debt, final expenses, etc.
Universal Life Insurance
On the outside, universal life insurance may look very similar to whole life insurance in that it is a permanent product with planned level premiums, but it′s actually quite different. Universal life insurance is a flexible, permanent form of life insurance, which is based on cash value. All premium payments made above the cost of insurance are credited to the policy′s cash value, which grows tax–deferred making this a more tax–advantageous way to purchase life insurance. One key advantage to a universal life plan is its flexibility. The amount of coverage can be raised (subject to proof of insurability) or lowered at any time. Also, if a premium payment is missed the cost of insurance will simply be deducted from the policy′s cash value preventing the policy from lapsing or terminating.
HEALTH INSURANCE
Traditional Health Insurance
This is the type of health plan that most people are accustomed to. Like most health insurance plans, these plans have a deductible & coinsurance and usually (but not always) have copays for office visits and prescriptions. While each family member would have to meet their deductible and coinsurance individually, all procedures, supplies, or prescriptions that are eligible for copays would be exempt.
Consumer Driven Health Care (CDHC)/Health Savings Account (HSA)
CDHC/HSA plans help control cost by shifting more health care responsibility to the consumer by forgoing copays and setting higher deductibles. Since CDHC/HSA plans use higher deductibles without copays, he goal of CDHC/HSA plans is to motivate the consumer to take a more active role in their own healthcare management.
Guaranteed Issue Health Plans
Guaranteed issue health plans are just what they sound like … guaranteed coverage. All health conditions (even preexisting) are covered by this type of plan without waiting periods. Anyone may enter a guaranteed issue plan if certain conditions must be met:
Short-Term Health Insurance
Also known as temporary coverage, this type of insurance is typically sold in increments of one month up to twelve months. Short–term health insurance is ideal for a recent college graduate that needs coverage while deciding where to begin their career, anyone waiting for employer group coverage to begin, or anyone in between jobs and needing temporary coverage.
Optional Riders
Some health insurance companies offer optional riders that can be added to the base policy. There are several common riders available:
- OFFICE VISITS – Allows for treatment received in a physician’s office to be covered for a predetermined copayment instead of requiring the insured to first meet the health plan’s deductible.
- DRUG COVERAGE – Allows for medications prescribed by a physician to be filled at participating pharmacies for a copayment instead of requiring the insured to first meet the health plan’s deductible.
- DENTAL – Offers coverage for care received by a dentist which is not ordinarily included in a health plan’s base policy.
- ACCIDENT EXPENSE – Offers a predetermined amount of first dollar coverage for accidental injuries. For example, a benefit of $500 simply means that the insured, if injured in an accident, would have $500 available to use for the injury to help meet the health plan’s deductible.
- TERM LIFE – Some health insurance companies offer a term life insurance rider that can be purchased without requiring a medical exam.