Plans

10 Essential Insurance Plans Everyone Should Have

Did you know that almost 6,000 insurance companies operate in the US? Of these, more than 2,500 are property and casualty insurers. They make up the brunt of the insurance sector, as they’re the ones that sell home and auto insurance.

All that should already give you an idea of how varied the insurance sector is.

The big question now is, which of these provide essential insurance coverage?

We’ve rounded up 10 of the most vital ones that most people shouldn’t go without, so be sure to read on!

1. Health Insurance

This is one of the types of insurance you should never bypass, even if it’s no longer the law. That’s right: As of January 2019, health insurance, at the federal level, is no longer a requirement in the US.

However, some states, such as California and New Jersey, have state-imposed laws. In these states, health insurance is either mandatory or will become required.

For many good reasons, seeing as a health plan can help ease the burden of medical costs. With health insurance, you can reduce your out-of-pocket spending on health care services. Some comprehensive policies even offer free preventive services, such as check-ups and screenings.

Keep in mind that health care spending in the US may reach a staggering $6 trillion by 2027. That shows how expensive medical care has become, and you can be at risk if you don’t have a health plan. Without a health policy, you may end up facing exorbitant hospital and medical bills.

Not sure where to start when it comes to purchasing health plans? You can compare plans here so that you’ll have a better idea of what each scheme covers and what they don’t.

2. Dental Insurance

Most basic types of health insurance offer little to no coverage at all for dental care services. That’s why for every US adult with no health policy, three adults are without dental coverage.

The thing is, poor oral health doesn’t only cause tooth decay and periodontitis. It can also affect the overall health and well-being of individuals. Researchers, for instance, say that gum disease and heart disease may go hand in hand.

Many other studies found links between oral health, strokes, diabetes, and mental illnesses. Others found evidence that poor dental health can result in nutritional deficiencies. Some researchers also say that the state of the mouth is a risk factor for obesity.

As you can see, dental health is just as vital as general health. As such, it’s best to supplement your health policy with a dental plan. This way, you can improve both, which in turn, can help you have a better quality of life.

3. Motor Vehicle Insurance

There are only two states in the nation that don’t impose the purchase of auto insurance. These two are New Hampshire and Virginia. If you aren’t from these states, it’s your legal responsibility to carry auto insurance.

In fact, even if you’re from the Granite State or the Old Dominion State, you still need “proof of liability.” For instance, if you’re at fault for a car crash in NH, you must prove that you can pay for the damages you caused. Otherwise, you’ll likely end up getting your driving privileges suspended.

In Virginia, you can “skip” auto insurance, but if you do, you need to shell out $500. This is for the “Uninsured Motor Vehicle Fee,” which is only a permit that lets you drive without coverage. It’s not insurance, so, if you end up in a crash, you’re likely to end up paying for the damages too.

Keep in mind that road crashes are so common in the US, and they cause at least 4.4 million serious injuries each year. Overall, these accidents cost the economy and society at least $871 billion per year.

4. Homeowners’ or Renters’ Insurance

Federal and state laws don’t require these types of insurance plans. However, homes purchased through a mortgage, which 62.9% of homeowners did, often do. It’s one of the most common requirements set forth by most mortgage lenders.

Renters’ insurance isn’t a federal or state law, but landlords can demand it from their tenants. It’s usually a part of a rental agreement that protects the rented-out property. However, it also protects renters, as this policy covers their possessions too.

You should get a policy even if you’re already free from mortgage or if your landlord doesn’t require you. A homeowners’ or renters’ insurance policy can protect you from sudden losses. It can also help you pay for the costs to fix or replace property damaged by accidental causes.

5. Flood Insurance

The basic types of insurance coverage for homes exclude flood damage coverage. For properties within a high-risk flood zone, flood insurance is often mandatory. These include homes purchased with government backing.

However, you should still get flood insurance even if your home is outside of a high-risk zone. For starters, the frequency of floods in the US has risen by more than 250% since 2000. This means that even low- to moderate-risk homes are at a severe threat of flood damage.

6. Life Insurance

70% of Americans believe that life insurance can protect their financial well-being. That makes it one of the essential types of insurance, but only half of the respondents said they own one. Others in this group were also unsure if they had a life insurance plan.

Wherever in the US you may be, no law requires you to purchase this type of insurance. However, it’s your life on the line here, as well as the future of your loved ones. A life insurance policy can protect your family’s finances in case you pass away.

Some types of life insurance policies even let you build a “savings” account as you pay for your premiums. These include permanent life policies, such as universal or whole life insurance plans. These come with a “cash value” component that grows every year.

After some time, say ten years, you may already be able to withdraw or borrow against that savings account. You can then use the money as you see fit while you’re still alive and well.

7. Workers’ Compensation

Workers’ compensation is mandatory in 49 states. The Lone Star State is the lone state that doesn’t require this coverage in the US.

Workers’ comp, however, is the legal responsibility of employers. They must be the ones to purchase this for their workers. If they don’t, they will face severe penalties from the federal to the local level.

With that said, be sure that your employer has given you workers’ compensation. This policy should cover you for injuries and illnesses that occur while you’re on the job. It should also pay for lost wages in case you can’t go to work due to a job-related health issue.

8. Disability Insurance

Sixty-one million adults, or 25% of the US adult population, have at least one type of disability. The majority of them have problems with mobility, followed by cognition issues. What’s more, these conditions affect not only older adults but younger people too.

Living with a disability can have a severe impact on one’s ability to work. Moreover, these health conditions cause a massive spike in medical and care costs.

With disability insurance, you can protect yourself and your financial well-being. You also get to safeguard your loved ones who depend on your ability to generate income. It can help you pay for your bills and other expenses if you can’t work due to a disabling injury or illness.

9. Umbrella Insurance

Umbrella insurance provides coverage for claims that existing policies won’t cover. They are “add-ons” to typical insurance plans that have limitations. The “umbrella” part of your policy pays for whatever these restrictions don’t.

For instance, let’s say your homeowners’ policy has a property coverage limit of $100,000. However, a fire occurred, and your home has sustained damages that cost $150,000 to repair or replace. If you have an umbrella policy, it should cover that remaining $50,000 (or up to the umbrella coverage’s limits).

10. Home-Based Business Insurance

As of June 2020, about 40% of Americans work full-time from their own houses. Many others run their sole businesses or sidelines from home.

If any of these is true in your case, know that your home insurance may not cover all of your business properties. A few examples are computers, electronics, and equipment you use for your business. Your policy may also not cover injuries to others that occur due to business activities.

To protect yourself from such losses and liabilities, consider getting home-based business coverage.

Don’t Bypass these Essential Insurance Plans

There you have it, ten of the essential insurance plans that most people would benefit from. There are many others, such as travel insurance, but the ones above should be your priorities. It’s also best to get them as early as now, as the longer you wait, the more expensive they may become.

Looking for more of the latest news in health, finance, and technology? Then please feel free to check out the other posts we have here at Healthcare Business Today!

Are Medicare Supplement Plans Worth It? Here’s Everything You Need to Know…

Senior citizens make up over 13% of the United States population and are projected to make up as much as 20% of the population by the year 2060.

That growth of seniors in our country means that more and more people are asking questions about Medicare, what it covers, and whether or not Medicare supplement plans are worth investing in.

Chances are you already know what Medicare is, but for the uninitiated…Medicare is a single-payer insurance program provided by the United States government that helps cover senior’s and other special party’s healthcare costs.

What many people don’t know is that Medicare is not free.

So then, are Medicare supplement plans worth it?

As you’ll see below, the answer for many is yes.

What is a Medicare Supplement Plan?

A Medicare supplement plan is an insurance policy that helps fill in the gaps in your Medicare coverage.

What gaps are there in your coverage? As it turns out, a lot.

For example, most Medicare recipients pay expensive deductibles and 20% of their outpatient care expenses. Furthermore, Medicare has no deductible ceiling.

That means if your medical expenses are high during a certain year, you’ll keep paying out of pocket as you receive treatment.

People who have previously asked themselves, “Are Medicare supplement plans worth it?” have come to find that they love keeping their Medicare-related expenses in check with supplement plans since it lets them have predictable healthcare costs as opposed to volatile expenses.

A Comprehensive List of Medicare Supplement Plan Benefits

In case you’re still not convinced of the value a Medicare supplement plan can bring to your life, here are some of the top benefits people cite as supplement plan holders:

1. Protection Against Healthcare Cost Surges

As we’ve mentioned, the primary benefit of Medicare supplement plans is that they cover your Medicare-related experiences.

That means you can budget a concise amount of money each month for your medical costs without having to worry about getting sick one month and needing to dip deeper into your savings for treatment.

2. Many Medical Supplement Plans Have Ceilings

One of the worst aspects of Medicare is that there is no ceiling as to how much you can pay in deductibles during any given year.

Not only do Medicare supplement plans cover endless Medicare deductibles, but supplement plans also have ceilings.

That means after you’ve paid into your supplement plan up to a certain amount, it will continue to cover your Medicare expenses without asking you for any additional constitutions.

3. International Coverage

Did you know that Medicare doesn’t cover health and injury-related expenses that occur outside of the United States? That means you can never take a vacation or travel without worrying about facing a health issue.

With Medicare supplemental insurance, a good policy will fill in those Medicare international travel gaps so you can feel safe no matter where you go.

4. Guaranteed Acceptance During Open Enrollment

With most insurance policies, insurers can deny you coverage or charge you more based on your health situation. With a Medicare supplement insurance plan, insurers need to accept you and can’t raise costs based on your condition so long as you enroll during your open enrollment window.

Open enrollment for Medicare supplement plans is open for 6 months from when you turn 65 years old.

5. Plans Are Always Renewable

Even if your health takes a turn for the worst, a Medicare supplement insurer can’t cancel your plan so long as you’re keeping up with your premiums.

That means you can be sure that your plan will always renew at the end each calendar year without any issue.

6. You’ll Have Options

There’s no such thing one size fits all when it comes to health. That’s why Medicare supplement plans offer a variety of different coverage options to make sure you get all of the care you need and pay for none of the care you don’t.

The more comprehensive your plan is, the higher your monthly premiums will be but if you don’t need much in the way of Medicare expense help, you can also save by picking a less comprehensive insurance policy.

7. The Freedom to Try

When you have a Medicare supplement plan, there may come a time when you want to try another policy on for size. It could be that another policy is cheaper or that you’re interested in doing business with a more reputable provider.

With most Medicare supplement plans comes a “free look” contingency.

Free look contingencies enable supplement plan buyers to switch to a new policy, try it for 30 days, and then opt to either keep or revert back to their old policy without penalty during that period.

That means that you never have to feel trapped in the Medicare supplement policy you initially sign on to.

Wrapping Up Are Medicare Supplement Plans Worth It? Everything You Need to Know…

As you can see above, we are big-time proponents of investing in a Medicare supplement plan. At the end of the day, as you grow old, most people will be on a fixed income and have unpredictable health needs.

To make sure you’re always taken care of and to never have to worry about losing massive portions of your savings to illness, answer yes to the question of, “Are Medicare supplement plans worth it?”.

Start researching what supplement plans are out there and good luck finding the perfect plan for your unique needs!

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