Working can sometimes be tiring, and there are times that you feel like quitting and go with the flow. There will be times where you will think you’ve had enough, that you’re tired, and you feel like you are going to be sick. Still, you will be catapulted back to work because you got family members who rely on you. They could be your parents who are too old to work and take care of themselves or a sibling who stays dependent on you for whatever reason. It could also be a wife or husband and a child or children that you need to support. After all, only one of you can work because no one will take care of the kids.
You will then realize that you can not afford to quit and that it is best to continue your work and get paid. You have a big responsibility to your family. There will be times that you will think that it is as if you are not allowed to get sick because that will be a deduction on your pay plus, it will also mean expense because you need to see a doctor and buy medicines. If you can not imagine what it would be like if you get sick, then how much more if you leave them behind eternally? How will your family survive without you?
If the thought of getting sick or dying scared you or gave you uncertainties, then, without question, you need insurance to ease your mind. You and your co-workers might have talked about insurance, especially those who are breadwinners of single-income families. You might have discussed the same sentiments and same fears among yourselves and how some of you do not worry because they are insured.
Nowadays, insurance premiums are already part of the monthly financial allocation of the majority of households. Insurance is more common now than it ever was. The pandemic that hit the whole world has shown people the importance and advantages of having insurance. Suddenly, everyone appreciates the value of being insured in these trying times.
People typically are under the impression that insurance works like savings, some even confuse life insurance with health insurance and vice versa. Generally, a misconception that health and life insurance are the same and will provide the same coverage.
The two most common types of insurance are health and life insurance. They are different in the aspect of the coverage of the person insured. What sets these two apart is that health insurance takes care of you when you are sick or are in a hospital. Life insurance takes care of your family in case something terrible happens to you, and you did not make it alive. However, before you get yourself insured, it will be best to know and understand the coverage and exemptions and understand the policy itself. An educated decision is a smart decision.
What is health insurance?
Health insurance covers the risk or possibility of unexpected expenses that could arise from medical situations. It covers cases of sickness or injury, including losses from accident, disability, accidental dismemberment medical expenses, or accidental death.
Employers typically provide health insurance to their employees through HMO or PPO companies. The owner pays the premium for the insured, based on the policy, and there will be times that the insured needs to pay out of pocket for the medical expense.
Three common terminologies in health insurance:
- Copayment or Copay– is the specific fee that the insured pays for a consultation or prescription before the insurer pays for the remaining balance, if any.
- Coinsurance– When you reach the deductible limit, that is the only time that coinsurance will work. It is the share of the insured on medical expenses typically divided at 20% will be paid out of pocket by the insured, and the insurer will cover 80%.
- Deductible– The money paid out of pocket for medical services covered in the policy. Before the insurer pays for the medical assistance, you need to meet the deductible amount. Only then will the insurer pay for the coverage of your policy.
These are things that you need to discuss with your insurer for a better understanding of the coverages in your health insurance policy.
What is life insurance?
Life insurance is something that nobody wants to use or, as much as possible, delay the usage of it for the longest time possible. It is the contract between the insurer and the owner that if the insured died, the beneficiary would be paid a lump sum amount in exchange. The owner is responsible for paying the monthly premiums of the policy.
Not all insurance is permanent; term insurance that expires after a specified amount of time while permanent insurance remains active until either of these things happen – the death of the insured, the owner stops paying the premiums, or they surrender the policy,
Term life insurance is commonly for 10, 20, or 30 years. If the insured passed away before the term expires, then the beneficiary will receive the death benefit. But what happens if you live longer than the validity of the term life insurance? Will you be getting the premiums back? The answer is no. Term life insurance will not return the premiums paid if the insured outlived the term unless there is a rider in the policy, which is ROP or Return of Premium. Having that in your system will cost you more.
It is best to ask for the policy with and without the rider to see the difference in premiums to help you decide if the rider is worth the extra money. After all, it will be happier to outlive your life insurance if you have the money to enjoy life.
Both insurances will help you secure the future needs of your family in case of death. Each one provides different advantages that will be best discussed by the person or people offering you the insurance. It is imperative that you ask theoretical or scenario-based questions to understand the policy better.
Choosing the right kind of insurance based on the risk involved and the financial aspect is vital to make sure that you are maximizing the benefits of having a life and health insurance. It does not matter if you are a parent that wants to secure the future of his or her child or a fiancé that wants to make sure that the housing loan gets paid with ease. Insurance is not just security; it is also an investment.
Like any other investment, you would want to make sure that you are entrusting your hard-earned money to the best, most competitive group of people that will give you an honest risk assessment. You would want the best Insurance Solutions for SLC, UT – Risk Managers LLC, who have been leading the industry for decades. Risk Managers LLC will provide you with a detailed risk assessment as well as customized insurances that would fit your needs.