There are two types of health insurance: an individual plan and an employer plan.
- Deductible - This is the set amount you need to pay on your medical bills during the year before your insurance begins paying.
- Premium - This is the amount you pay for your health insurance each month.
- Co-Pay - When you go to the doctor or fill a prescription, the portion you are responsible for is your co-pay.
- Pre-Existing Conditions - Previous medical conditions that may impact your healthcare.
November 1st marks the first day of open enrollment in the United States for health insurance.
The first question you may ask yourself is ‘do I really need life insurance?’ If there is anyone in your life who is dependent upon you financially, you should have life insurance. It helps lessen the financial burden on your loved ones that you may be leaving behind.
There are three kinds of life insurance: term life insurance, universal life insurance, and whole life insurance.
The cost your monthly premium is determined by a number of factors, including: age, health, gender, and job.
Types of Coverage:
- Collision Coverage – this coverage is if your vehicle hits or is hit by another object.
- Property Damage Liability – this covers you if your vehicle damages another’s property.
- Bodily Injury Liability – provides protection if you hurt or kill someone with your car.
- Personal Injury Coverage – pays the expenses associated with injuries.
- Comprehensive Coverage – covers damage from incidents other than collision.
- Uninsured Motorist’s Coverage – if the other driver is uninsured, this helps cover that.
Generally, auto insurance does not cover:
- Personal items in car that are stolen.
- Custom items in vehicle – such as an entertainment system
- People you live with that aren’t on policy
You should always carry proof of insurance in your vehicle. If you have it budgeted and it fits your loan requirements, you should increase your deductible. This will help you save money on your monthly premium. Check with your financial institutions before making any changes.
Homeowner's insurance is designed to protect your home from damage, also known as perils. Depending on the policy you select, different perils are covered.
Basic perils include:
- Damage from vehicles
- Damage from aircrafts
- Volcanic eruptions
Broad perils include:
- Falling objects
- Weight of ice, snow, etc.
- Freezing of systems
- Damage, such as cracking, to pipes
Some events, such as an earthquake or flood, are usually excluded from standard policies. Depending on where you live, you may want additional coverage. For example, Utah residents may want to look into earthquake insurance.
Renters insurance provides coverage in the instance that a tenant's possessions are lost or damaged due to theft, fire, or vandalism. A landlord's insurance will not cover any possessions lost by the tenant. It can also help with the costs if you have to relocate due to fire, smoke, or water damage.
When planning out your insurance, don't forget about your four legged family members. Many insurance companies offer insurance to help manage the costs associated with pet care. You can select a plan to either cover just accidents or both accidents and illnesses. According to Consumer Reports, accident only policies for dogs are about $158 per year while cats are at $132. For accident/illness, the average cost was about $473 for dogs and $285 for cats.
The best preparation for the future is the present well seen to, and the last duty done.
- George MacDonald
Check out our previous Financial Fitness Plans and come back next month for more tips and tricks: