This is an explanation of 9 types of insurance


1. Health Insurance

It may be provided through a government-sponsored social insurance program. ensuring that money is available to pay for the healthcare benefits specified in the insurance agreement.g. It may be purchased on a group basis (e. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. private business. The benefit is administered by a central organization such as a government agency. or not-for-profit entity. or from private insurance companies.Photo credit: Eugenics Archive Health insurance is insurance that pays for medical expenses . a routine finance structure (such as a monthly premium or annual tax) can be developed. the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. by a firm to cover its employees) or purchased by individual consumers.. . By estimating the overall risk of healthcare expenses. Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government. In each case.

fences and equipment. Most states require that you purchase some kind of insurance coverage to drive legally in the state. Auto Insurance Photo credit: Gizmodo All insurance provides protection to consumers by covering certain risks and promising to pay for financial losses caused by these risks. This coverage pays if you are injured by a hit-and-run driver or a driver who does not have auto insurance. Property Damage . lost wages. Uninsured motorists coverage protects the policy holder directly. Liability Most auto insurance policies contain three major parts: liability insurance for bodily injury. Auto insurance can be divided into two basic coverage areas: liability and property damage. liability insurance for property damage and uninsured/under-insured motorists coverage.2. but also other property such as walls. Their claims for bodily injury may include medical expenses. This includes not only damages to other vehicles. Bodily injury liability insurance protects you against the claims of other people who are injured in an accident for which you were at fault. and pain and suffering. Property damage liability insurance pays for any damage you cause to the property of others. Auto insurance is one of the most used types of personal insurance.

severe weather. You are not required by law to carry comprehensive coverage 3. insurers will “total” the car and pay you what the car was worth rather than fixing it. including fire.Property damage coverage may include both collision coverage and comprehensive coverage. In the case of an accident involving an older car. the cost of repairing the car can quickly exceed the worth of the car. such as a tree or another car. Comprehensive coverage also will cover broken glass. collision insurance may be required by your lending institution or lessor. such as windshield damage. In this case. However. floods and theft. Comprehensive coverage pays for damage to your auto from almost all other causes. This coverage is optional and not required by law. vandalism. Life Insurance . Collision coverage pays for physical damage to your car as the result of your auto colliding with an object.

To pay off a mortgage loan and other personal and business debts or to create a rent fund. 4. such as funeral costs and taxes. Here are some reasons people buy life insurance. It is an insurance company's promise to pay your beneficiary a specific amount of money when you die in exchange for timely payment of premiums. Dental Insurance . your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death.Photo credit: Environmental Caskets Life insurance is protection against financial loss resulting from death. Why do I need life insurance? Although you may not think about it. To create a family emergency fund or a fund for a family member with special needs. To create a fund for children's education. The death benefit may be used: To replace income the family would need to maintain their standard of living after the death of a wage earner. To pay final expenses.

To correct some of this confusion about dental coverage. you would not pay premiums for your dental coverage if the premiums were more expensive than the cost of the dental treatment you need. limitations. the following questions and answers are provided by the American Dental Association to help you better understand your dental benefits. What are some questions and concerns about dental benefits? Your plan sponsor (often your employer) should be able to explain the individual design features of your plan. Since this is the case. Payment for treatment is made from the patient directly to the dentist. Most of these plans are "referral plans" or "buyers' clubs. There are. For example. The American Dental Association has received numerous questions and complaints from patients regarding their dental benefits. Your personal dentist may also be able to explain dental benefit issues and options for you. Does this mean the ." Under these types of plans.Photo credit: Doctors Hangout What is dental insurance for individuals? Dental plan coverage for individuals is not commonly offered because dental needs are highly predictable. insurance companies would stand to lose money (spend more on benefits than they receive in premiums) on every individual dental plan they write. however. a few companies that offer a form of dental benefits for individuals. they should be directed to your group benefits department. My dentist recommends a treatment that my plan will not pay for. The third party acts only in the capacity of matching the individual to the dentist. If you have additional concerns or questions. The dentist receives no payment from the third party other than in the form of referral of patients. Design features to understand include: exclusions. an individual pays a monthly fee to a third party in return for access to a list of dentists who have agreed to a reduced fee schedule. patient copayments and annual or lifetime benefit maximums.

Patients need to be aware of the exclusions and limitations in their dental plan but should not let those factors determine their treatment decisions. Which treatment should I have? Some plans will only provide the level of benefit allowed for the least expensive way to treat a dental need. special circumstances may be explained to the third-party payer to request an adjustment to this lower benefit allowance. not on their dental benefit plan 5. As in the case of exclusions. adult orthodontics. but there is no guarantee that the thirdparty payer will alter its coverage. specialist referrals and other dental needs. Some also exclude treatment by family members.treatment really isn't necessary? It is common for dental plans to exclude treatment that is covered under the company's medical plan. patients should base treatment decisions on their dental needs. My dentist recommends that I get a crown on a tooth. Some plans. Sometimes. regardless of the decision made by you and your dentist as to the best treatment. go on to exclude or discourage necessary dental treatment such as sealants. pre-existing conditions. Travel Insurance Photo credit: Sonny Radio . but my dental benefit will only pay for a large filling for that tooth. however.

Israel . PPO's and Medicare typically do not cover you abroad? Travel Protection vs Travel Medical Most Travel Protection Plans will also include Travel Medical Insurance.Why do I need travel insurance? You can begin your trip without any travel insurance and be self insured. and Baggage coverage. Democratic Republic of Congo. Ethiopia. the insured pays 20% . Chad. Central African Republic. Nigeria. Yemen. Iraq. Lebanon. But did you know that if you become ill abroad the costs to treat you could be very high. Nepal. East Timor. Trip Cancellation/Interruption. Haiti. Example: "Co-Insurance = 20% or co-pay is 80/20" means that the travel insurance company pays 80% of the charges. Liberia. Burundi. Sudan Area 2 Risk: Algeria. Zimbabwe What is Co-Insurance or Co-pay? This is the percentage or amount of expenses that the insured pays (if any) after the deductible is paid. India . Medical Evacuation. How would you find a doctor? Where would you find appropriate healthcare facility? Where would you seek advice? Did you know that HMO's. What Countries are considered High Risk for Travel? Area 1 Risk: Afghanistan.incl. Guinea. Chechnya. Travel Delay. West Bank & Gaza. Travel Medical insurance plans generally just reimburse you for medical expenses incurred while traveling. Iran. Colombia. Saudi Arabia. Somalia. Ivory Coast.Jammu & Kashmir.

and dental cleanings. For example.6. our Advantage PlanWC can help you pay for basic wellness care. while our Premier PlanWC+ offers even more wellness care coverage. What does it cover? You can cover your pet for accidents and illnesses. With ASPCA Pet Health Insurance. vaccinations. you can also choose plans that cover wellness care like check-ups. It can help make sure you never have to choose between your pet's well-being and your personal finances. . Pet Insurance Photo credit: The BBC What is pet insurance? Pet health insurance helps you pay your veterinary bills for your dog or cat.

after the $100 annual deductible is met . you'll have financial support to pay for the medical care your pet deserves. Your actual premium depends on factors such as the plan you pick and the breed and age of your dog or cat. Get Reimbursed You'll get back 80% of allowable charges. pet health insurance offers valuable peace of mind. How does pet insurance work? Get Treatment Take your pet to ANY licensed vet in the US or Canada and pay for the services. File a Claim Fill out and send in our simple one-page claim form with any receipts. you can get basic accident coverage for as little as $7. What does pet insurance cost? Pet health insurance can be very affordable.Why do I need it? As veterinary care becomes more sophisticated and expensive. With ASPCA Pet Health Insurance. For instance.50 a month.

the owner. Homeowners Insurance Photo credit: Log Home What is Homeowners Insurance? Different policies exist for renters. Homeowners insurance does not cover problems that result from poor maintenance or general wear and tear. This coverage also includes damage caused by pets and most major disasters. owners of mobile homes. The amount of coverage provided for each of these items varies depending on the insurer and the type of policy. as well as you. A basic homeowners insurance policy should also cover other structures on your property and should provide for living expenses in case you are not able to live at home after a fire or other insured disaster.7. against personal liability if someone is injured while on your property. but most homeowners will purchase what is called an HO-3 policy. This insurance policy covers your home and its contents against damage and theft. though floods and earthquakes require separate policies. . people seeking bare bones coverage and those living in homes that are very old.

When someone talks about the amount of coverage they have. you'd get an amount of money equivalent to the current value of those items (accounting for depreciation). or their liability limit. in case you have to live somewhere else because of damage to your home. Coverage for personal belongings usually falls somewhere between 50 percent and 70 percent of the amount of coverage on the structure of the home. the amount of electronic gadgets in your home is pretty small.000 of coverage. as mentioned earlier. they are probably referring to the coverage for their home -. restaurants/food. Another option you'll probably be asked to consider is replacement cost versus actual cash value. These limits usually start at $100. depending on the value of your home. by comparison to most current homeowners. And since you don't really care about the television. And. So which option is right for you? Going with actual cash value would mean that if these items were damaged. for the amount of money it would cost to rebuild their home given the price of materials and labor in the area. are usually covered for 10 percent of that amount. but policies can be purchased with much higher limits. while you're not a complete luddite. Other policies may provide unlimited coverage for living expenses but only for a limited period of time. This amount is not the same as the purchase price of your home. such as a garage. You also have an inexpensive stereo and the computer you use is an old loaner laptop from work. you won't need to replace that.up to 20 percent of your home's liability limit. You have a television that's almost as old as you are and you wouldn't miss it if it were gone. other structures on your property. -. A quick estimate of your rebuilding cost can be done by multiplying your home's total square footage by the building cost per square foot While your liability limit is a reflection of the amount of coverage for your actual home.000 to $500.000. The laptop is covered through work.One of the first things you need to know about your policy is the liability limit. The liability limit determines how much coverage you have should something happen to your home. which accounts for factors like the value of the land. most plans cover costs of living away from home -. Let's say. cheap . etc. Most experts recommend that you have at least $300. you could simply take the money you get and just get a new.that is.hotel. Here's where you'll really want to consider the contents of your home.

in the case of electronics. Buck manuscripts. Unemployment Insurance Photo credit: Franklin Delano Roosevelt Memorial What is unemployment insurance? . Let’s go back to your household contents. this isn’t the only scenario that calls for this option.there's no accounting for depreciation. With that kind of equipment. but under the right circumstances. Obviously. There are other types of items to consider when making this decision. Original pieces of artwork or other costly collectibles can be just as. your neighbor has everything a home theater should have . she'd definitely want to consider replacement cost coverage. a surround sound speaker system. However.stereo.a plasma TV. DVD player. For example. which pays for a new version of the item that was lost or damaged . in both her living room and the family room. Meanwhile. what about the collection of signed prints you have? And there’s also the stamp collection and those original. etc. signed Pearl S. 8. valuable than today’s pricey electronics. Replacement cost coverage is usually 10 percent more expensive than actual cash value coverage. a replacement cost policy can be a big advantage. it's definitely worth the extra coverage. if not more. which can depreciate in value rapidly over time.

Thanks to the wonders of technology. however. a person can receive unemployment insurance once all of the proper paperwork is filed. he will be able to receive weekly payments thanks to money that was paid to his unemployment fund by his employer. someone who is self employed can't collect unemployment. a worker is eligible for unemployment insurance immediately upon being terminated from his place of employment. nor can someone who is not a citizen and wasn't legally employed. Also. if you lost your job because of damage to your place of employment by fire or forces of nature such as a flood or hurricane. In addition. If an eligible person loses his job. In most cases. you might be eligible for unemployment insurance. while he was still gainfully employed. . It used to be that those wishing to receive unemployment insurance payments had to put in a weekly or monthly appearance at the unemployment office not only to file the proper papers. he is ineligible for unemployment unless there were extenuating circumstances. you may be eligible for partial unemployment. If an employee was fired because of misconduct or damage to company property.Unemployment insurance is a temporary source of income. Unemployment insurance is not retroactive. The termination has to be the decision of the employer. There are other situations in which a person is ineligible for unemployment insurance. check with your local Department of Labor to learn how to apply for unemployment insurance. Now this can be done over the phone or even online. but to prove they were seeking employment. via payroll taxes. so it would not be in one's best interest to procrastinate. If eligible. . even if you didn't work the requisite three months. For instance. You're paid only from the day you file. he might also be considered ineligible. These circumstances will have to be proven before unemployment insurance can be paid. a person who had been employed for less than three months before being terminated is also ineligible. This will save time so you can begin looking for a job right away and become an active member of the workforce once again. If an employee quits or resigns of his own accord. your state may be set up so you can handle all unemployment matters over the phone or computer. If your employment has been terminated. Check your state's guidelines to see if you need to appear in person to collect unemployment insurance. If your hours have been cut.

This coverage protects you financially in case of an accident or disaster to your home or car. we often do not consider risk or believe that the risks cannot be managed and so we turn a blind eye hoping that nothing “bad” happens. are so destructive that it makes sense to plan ahead and manage the risk.Business Insurance Photo credit: Las Vegas Small Business Development Center What is Business Insurance? Most people are familiar with insurance for their personal home and automobile. The same principle applies to business insurance. while they may never occur. however. In our personal lives these risks are often more easily foreseeable.9. We are familiar with these types of insurance because it is natural for most people to realize that they would be unable to replace their home tomorrow if there was a fire or to replace their automobile if there was an accident. The principle is one of risk. There are risks that. For our businesses. .

Insurance companies take in premium payments from many covered businesses. invest those payments.Some business owners I have worked with believe that since their business is profitable with a positive cash flow they can take care of the disaster when it happens. in so doing. insurers have developed mathematical models to determine what chance there is of a risk occurring and. Because there are so many different types of coverage it is confusing. insurers have developed approximately eight to nine general categories of losses that seem to happen with more frequency. Business insurance is nothing more than spreading and managing the risk among many business owners. the concept is the same – the management of risk. and create a pool of money to pay out to a covered business if that business has a covered loss. at the very basic level. Over the last 300 years. what premiums the insurer must charge to stay in business and make a profit. They forget that if the business is not operating – there is no cash flow. The insurers developed particular policies to address those types of losses. . Over that same time. But. Business insurance is a broad description that encompasses these different types of policies.