Protect Your Assets

Types of Insurance and Why You Need Them¹

There are multiple types of insurance policies, and you may find it challenging to distinguish between them all. Here’s a handy list to help:

• Life Insurance – Provides financial support to your loved ones if you pass away.
• Health Insurance – Helps cover medical expenses and reduces out-of-pocket costs.
• Home Insurance – Protects your home and belongings from damage or loss.
• Flood Insurance – Covers property damage caused by flooding, which standard home insurance doesn’t.
• Auto Insurance – Pays for damages and liability in case of car accidents.
• Disability Insurance – Replaces income if you can’t work due to illness or injury.
• Long-Term Care Insurance – Covers costs for nursing homes or assisted living not included in health insurance.
• Travel Insurance – Protects against trip cancellations, medical emergencies, and lost luggage while traveling.
• Pet Insurance – Helps pay for veterinary bills for accidents or illnesses.
• Umbrella Insurance – Adds extra liability protection beyond your existing policies.

Frequently Asked Questions about Insurance

What is insurance, and why do I need it?

Insurance protects you financially from unexpected events.

What are the main types of insurance?

Health, life, auto, homeowners/renters, disability, and long-term care.

How do I choose the right insurance policy?

Assess your needs, compare coverage and cost, and consult an insurance professional, if needed.

What is a deductible?

The amount you pay out of pocket before insurance starts covering costs.

What is a premium?

The amount you pay for your policy, usually monthly or annually.

How can I lower my insurance premiums?

Increase your deductible, bundle policies, maintain good credit, and shop for better rates.

What should I do if I need to file a claim?

Contact your insurer promptly, provide documentation, and follow their process.

What’s the difference between term life and whole life insurance?

Term life covers you for a set period; whole life covers you for life and includes savings.

What is liability insurance?

Liability insurance covers legal costs and damages if you cause injury or property damage.

What is health insurance, and how does it work?

Health insurance covers medical expenses like doctor visits and hospital stays. You pay premiums, deductibles, and co-pays.

Common Health Insurance Terms

• Deductible: The amount you pay before your insurance starts covering costs. Family coverage applies if more than one person is on the plan.
• Co-insurance: The percentage you pay after meeting your deductible. Example: If coverage is 80%, the plan pays 80% and you pay 20% until you reach your out-of-pocket limit.
• Out-of-Pocket Limit: The maximum amount you’ll pay in a year for medical and pharmacy expenses.
• PPO Plans: All co-payments, including office visits and prescriptions, count toward your out-of-pocket maximum.
• In-Network vs. Out-of-Network: Each has its own deductible and out-of-pocket limit. They don’t combine, so out-of-network costs don’t apply to in-network limits.
• Embedded Deductibles: For family plans, individuals only need to meet their own deductible and out-of-pocket limit, not the full family amount.

Action Steps You Can Take Today

• Review your current Insurance policies and, if needed, speak with an insurance professional. Consider asking these questions!
  • Has anything changed about you or your family's situation that may require a change in your insurance coverage?
  • Are your policies providing sufficient coverage or too much coverage? 
  • Are you eligible for any insurance discounts?