This is different from choosing who is covered under the policy. With a life insurance policy, your life can be the covered life, but your beneficiary will receive the death benefit payout when you die.
Unfortunately, there are times when you may apply for insurance and find out you are not eligible for it. For example, someone with a terminal illness may not be eligible for life insurance coverage from most insurers. If you cannot get the coverage you need, try shopping around with different insurance companies, but know that it isn't always possible to find someone who will cover you.
Laws on who can be denied coverage -- and the process for shopping for coverage -- can differ dramatically depending on what kinds of insurance you're looking for.
Read on to find out more about nine common types of insurance you may want to consider buying. Health insurance is the single most important type of insurance you'll ever buy. That's because if you don't have health insurance and something goes wrong, it's not just your money at risk -- it's your life.
Health insurance is intended to pay for the costs of medical care. Many people get health insurance through employers who subsidize premiums, meaning the employer pays the bulk of your premium, and you chip in a little with each paycheck. If you don't have employer-sponsored health insurance, you'll need to buy health insurance on the individual market.
Thanks to the Affordable Care Act or Obamacare , you may be able to buy subsidized insurance on a state or federal exchange and get tax credits that help you afford the cost of monthly premiums. The specific coverage you get when you buy health insurance depends which policy you select. Your options include:.
Try to match your policy to your care needs out of what's available and offered to you. If you're someone who doesn't incur a lot of health expenses, a high-deductible health policy may be the most affordable solution. But if you see the doctor often for any number of reasons, get a policy with higher premiums but more comprehensive coverage and a lower deductible, so you don't go broke paying for all your services. Under Obamacare, every health insurance plan is required to cover certain basic services before your deductible is met, like preventative care.
The law also mandates insurance companies cannot charge more for a health insurance policy if the person has a pre-existing condition. The price of health insurance is based upon your age, geographic area, and whether you're a smoker. Insurers are prohibited by Obamacare from considering your gender, race, or past medical history.
Without exception, absolutely everyone needs health insurance because even a minor medical issue can become extremely expensive. Major medical issues can come with astronomical costs, as a single hospital stay or surgical procedure could cost many thousands of dollars. You can sign up for health insurance only at certain times of the year during " open enrollment " -- which is a designated period when anyone can buy coverage -- unless you have a qualifying event, such as losing coverage because of a divorce or job change.
Visit Healthcare. Dental insurance is typically separate from medical insurance, but it's not any less mandatory. Anyone can suffer a toothache, gum disease, cavity or even a broken tooth, all of which are very expensive to treat.
Secondly, everyone should be visiting a dentist twice a year for cleaning and checkups. You can get dental insurance through an employer if your company offers this as a benefit.
Otherwise, you can independently buy dental insurance from providers. Unfortunately, there are no subsidies to help you afford dental insurance premiums, like Obamacare does for medical insurance.
You'll need to shop around for a policy that provides appropriate coverage. Dental insurance options include:. Like with health insurance, the more your insurance pays toward your care, the higher the premium costs. And if you want to see a particular dentist, you should try to find an insurer that lists your dentist as an in-network provider.
You can ask your dentist which insurance carriers they work with and try to buy a policy from that insurer. Disability insurance is intended to replace your income if something happens that makes you unable to work.
There are both long- and short-term disability policies, with short-term disability coverage typically replacing a larger portion of your income. Disability policies have a specific definition of what it means to be disabled, and they pay only a percentage of the salary you were earning prior to becoming disabled. Policies also set a maximum cap on how much you can receive.
Disability insurance can be provided by or purchased through an employer, or you could buy a policy on the individual market. Many people forgo disability insurance because policies can be costly. Your premiums are generally equal to a percentage of income, but many factors are taken into account including gender and health history.
The waiting period, or the time you have to be without income due to disability, will also affect premium costs. The longer the time period before disability insurance kicks in, the lower the premiums will be. If you shop for a disability policy, look for coverage that has a broad definition of disabled and that replaces a big enough portion of income, with a short waiting period, if any. Going without disability insurance can put you into a difficult situation.
While you can apply for Social Security Disability benefits , these benefits are available for long-term disabilities only and can be very difficult to qualify for. If you can't qualify for Social Security benefits and haven't purchased disability insurance, you may have no income at all if you can't work. Life insurance pays out money called a death benefit to a designated beneficiary when you die. You can name people, companies, or trusts as beneficiaries, and you can have more than one beneficiary who will split your death benefit in accordance with your instructions.
But for something so essential to our financial well-being, insurance is a complicated—even uncomfortable—topic. While each one is a must-have, you should consult an independent insurance agent to help you find the right types of insurance customized to fit your needs. Imagine having to pay that kind of money out of pocket! Again, an insurance agent is a good resource to help you determine the level of protection you need based on the type of car you drive. Do you have the right insurance coverage?
You could be saving hundreds! Connect with an insurance pro today! Be sure your homeowners policy includes extended dwelling coverage.
Extended dwelling coverage adds an extra layer of protection above your policy limits. A good i ndependent insurance agent can walk you through the steps of covering the basics of both homeowners and renters insurance.
Remember, if your full emergency fund is in place, you can take a higher deductible and lower the premium on your policy to save money. An umbrella policy is a type of insurance that adds an extra layer of protection for you and your assets when you need coverage that exceeds the limits of your homeowners or auto insurance.
You can protect yourself from a situation like this with a personal liability umbrella policy. Medical debt contributes to nearly half of all bankruptcies in America according to the Kaiser Family Foundation. One unexpected major medical emergency could amount to hundreds of thousands of dollars of expenses. Think about how much you earn each year and the number of years you plan to remain employed , and purchase a policy to replace that income in the event of your untimely demise. Factor in the cost of burial too , as the unexpected cost is a burden for many families.
The soaring cost of medical care is reason enough to make health insurance a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs. Although the cost of health insurance is a financial burden for just about everyone, the potential cost of not having coverage is much higher.
Replacing your home is an expensive proposition. Having the right homeowner's insurance can make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired.
Keep in mind the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the cost to replace it could be more or less than the price you paid for it.
To get an accurate estimate, find out how much local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure the policy covers the cost of any liability for injuries that might occur on your property.
Renters also need peace of mind that they will be made whole in the event of a loss. Fortunately, renters insurance is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses. For one property, there may be two types of property coverage: homeowner's insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant.
Therefore, it is important for lessees to obtain renters insurance to protect their assets. Although renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses also known as loss of use , E for liability, and F for medical payments. Coverage C covers the personal property of the renter.
Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D provides covers the cost of living elsewhere, such as a hotel and food expenses.
Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission. Dogs are man's best friend, but some breeds, like Pit Bulls and Rottweilers, can prevent you from obtaining coverage.
Some level of automobile insurance is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip. If you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own.
Accidents happen quickly and the results are often tragic. Having no automobile insurance or purchasing only the minimum required coverage saves you only a tiny amount of money and puts everything else you own at risk. In addition to the policies listed above, business owners need business insurance.
Yes, typically Lower out-of-pocket costs and a primary doctor who coordinates your care for you, but less freedom to choose providers. No More provider options and no required referrals, but higher out-of-pocket costs. No Lower out-of-pocket costs and no required referrals, but less freedom to choose providers.
Yes More provider options and a primary doctor who coordinates your care for you, with referrals required. About the author. NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Lacie Glover. Easily compare health insurance rates With the NerdWallet health insurance tool, you can: Get instant quotes for individual health insurance plans.
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