Unlocking the Benefits of Insurance in the United State of America

Unlocking the Benefits of Insurance in the United State of America

1. Health Insurance

Health Insurance is a critical means to secure access to quality, affordable medical care. Without it, many people must forgo needed care or obtain services from providers that offer fewer options, at higher costs. For others, health coverage provides peace of mind and reduces the risk of financial hardship from unexpected illness or injury.

Health insurance is available to all Americans through the Marketplace, public programs and private policies. The latter include self-insured group health coverage, individual/family health coverage, short-term health insurance and non-ACA compliant plans (although these are better suited as supplemental coverage rather than stand-alone). Popular confusion about the status of health insurance can hamper effective policy making. This report and those that follow refocus attention on the issue and provide reliable data for use by legislators, employers and program managers.

2. Life Insurance

Having enough life insurance can ensure that your loved ones won’t be left in the lurch should something happen to you. Many experts recommend that you get a policy that is equal to seven to 10 times your annual income, so your family can pay for things like college tuition or mortgages without worrying about financial hardship. Some life insurance policies also have cash values that can be accessed in the event of a terminal illness or accidental death, which can help cover other expenses.

Another important function of life insurance is to mobilize domestic savings and direct them towards providing economic stability, loss mitigation, and promoting trade and commerce through investment of the pooled premiums. This also encourages investment and growth in the economy and boosts the global economy through savings.

3. Disability Insurance

As open enrollment season begins, many people will be taking a look at their options for short- and long-term disability coverage. This powerhouse benefit can help employees replace a portion of their income if they become sick or injured away from work.

The cost of a disability insurance policy can vary considerably based on the length of coverage and how broad or narrow the definition of disability is. Individual policies are usually less expensive than group plans but can be more restrictive on the definition of disability.

Typically, the longer the period of time covered, the higher the premium. Also, women pay more than men for a comparable policy with the same coverage duration, all other factors being equal. This is because women file more claims for disabilities for longer periods of time than men.

4. Long-Term Care Insurance

The cost of long-term care can be crippling. The need for this type of care is increasing, and many people do not have the resources to cover these expenses.

Long-term care insurance is designed to help pay for the costs of such services. It typically pays out when you are unable to perform two or more activities of daily living such as bathing, eating, navigating the toilet and getting in and out of bed.

You can purchase long-term care insurance as a standalone policy or as a component of a hybrid product that combines life insurance or annuity benefits with long-term care coverage. A financial advisor can guide you through the process of making a decision. Most traditional policies require medical underwriting. However, a few states have “partnership” programs with insurers that offer more flexible and affordable policies.

5. Auto Insurance

Auto Insurance is designed to help protect against financial loss from accidents that damage or destroy vehicles. Almost every state requires drivers to carry liability coverage, which helps pay for others’ property damage or bodily injury caused by an accident you cause. In addition, some states also require a minimum amount of medical payments or personal injury protection (PIP) coverage to reimburse for medical costs incurred by you and your passengers. Some states also offer additional coverages such as collision and comprehensive to cover vehicle damage from other incidents besides accidents, including theft, vandalism, certain weather events and animal attacks.

You can typically save on auto insurance by bundling it with homeowners and life insurance policies. Ask about discounts such as airbags, anti-theft devices and safety features. You also should ask about payment installment plans and if there are service fees.

 

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