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Finding the Right Insurance Plan For Your Needs

by sambit
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Right Insurance Plan

In 2019, 92% of people had health insurance coverage for all or part of the year.

Despite that figure, finding the right health insurance and other insurance coverage types is not easy when you are aiming for the best deal.

Thankfully, we’re here to help. This guide can help you choose the right insurance plan.

Health Insurance

If 2020 taught us anything, it is that having health insurance is a must because you never know what is going to happen. Picking the best plan can be confusing unless you base your decision on the factors below.

Consider Ongoing Care

When searching for the right insurance plan for you, you must consider your current health. If you have ongoing issues like diabetes or heart disease, you will need a plan that has lower copayments and deductibles. These medical conditions require you to visit your doctor more than you would if you were in perfect health.

Even if you don’t have these ongoing medical conditions, you should consider ongoing care if you are currently pregnant. When you are expecting a baby, you will be spending more time at appointments and will have a large hospital bill after birth.

Looking for a health insurance plan with low copayments and deductibles means you’ll be paying a higher premium. However, this cost may be worth it because the out-of-pocket costs will be cheaper.

Every insurance provider will have different costs, so it is best to get a few quotes before making a final decision. The one that offers you the most coverage for the money you spend is probably going to be the best option.

Do Some Math

To choose the right health insurance, you may need to do some math. Instead of focusing on how much the monthly premium is, you should worry about getting the lowest deductible. This is especially true if you expect to visit the doctor often.

Out-of-Pocket Fees

A deductible is not the only out-of-pocket fee you will need to cover. You must pay co-pays and coinsurance when you visit the doctor too. There are ways to get these expenses down, but it is essential to understand them before agreeing to an insurance policy.

Review Providers

Buying insurance takes time because there are many providers to choose from. Although it takes more time to review multiple providers, it is worth it in the end.

A lot of health plans have “in-network” providers. This means your chosen doctor may not be on the list and the policy won’t cover a visit with them.

If you have a doctor you want to continue seeing or you prefer getting treatment at a particular hospital, you must ensure the insurance policy you are looking for includes those things.

If you don’t currently have a primary care doctor or aren’t tied down to one, consider completing research before choosing a doctor within the network. You may have many to choose from, depending on your location and their availability.

Read the Benefits

Benefits depend on the plan in place. Read through this portion of the policy before making a decision. Your benefits may not be as vast as you thought.

Ask Questions

A health insurance provider should be ready to answer any questions you may have regarding the policy. Don’t hesitate to ask about anything you are uncertain of. After all, you are the one paying for it.

Some common questions you may want to ask the provider include:

  • How much is the monthly premium?
  • Can my plan save me money if I am healthy?
  • Is this an affordable option if I am sick?
  • How much do I pay before the deductible kicks in?
  • How big is the plan’s coverage network?
  • How much will I pay if I see a doctor outside of the network?
  • How much will I pay for regular prescriptions?
  • Do I have to pick one primary clinic or doctor?
  • Our virtual care options covered by this plan?

As health plans aren’t one size fits all, it is essential to understand a plan entirely before committing.

Life Insurance

Life insurance is helpful to secure a lifestyle or wealth for your family or chosen beneficiary once you die. Other common reasons for life insurance include paying for medical bills, funeral expenses, leaving an inheritance, building wealth, and tax breaks.

Life Insurance Types

When choosing a life insurance plan, you need to understand the two categories of life insurance: term life and permanent life insurance. Term life insurance is choosing life insurance for a specific amount of time, aka the term. Permanent life insurance is for your entire life.

Term life insurance tends to be purchased for 10 to 30-year terms. They have no cash value and will expire once the term is over. Because of this, it is the most affordable life insurance option.

There are two types of permanent life insurance: whole and universal life insurance. With whole life insurance, a premium is set and valid for as long as the premiums are paid. Building up cash value is possible and if you surrender the policy, it could be returned to you.

Universal life insurance offers investment options. Premiums can get adjusted over time, depending on how you manage them. The factors that decide your premium include cash values, your investments, and borrowing from the policy.

Business Insurance

Your insurance plan will depend on the type of business you run. However, most businesses need multiple types of insurance. These business insurance types include the following.

Property Insurance

Choosing the right property insurance is important because most companies require it. It will protect the building from theft and fire. If you want a plan that covers other assets like computers, inventory, machinery, furniture, etc., you will have to find a plan that does so.

It could also be useful to add on interruption/loss of income insurance. This type of business insurance protects you if you lose your business to a natural disaster.

General Liability Insurance

General liability insurance, or business liability insurance, covers you against claims involving damaged property and bodily injuries that happen in the place of business. An example of this would be a customer slipping and falling in your store. If you face a claim to cover the medical costs, you could lose a lot of money.

With this type of insurance, your business is protected. It is important to note that this insurance does not cover professional mistakes or employee injuries.

Workers’ Compensation Insurance

This insurance plan protects you and your employees from injuries sustained on the job. This is similar to general liability insurance, but it is just aimed to help you and your employees.

Regulations for workers’ compensation are different in each state. However, most states don’t say you have to have this policy in place.

It is a great investment because it includes coverage for an injured worker’s healthcare. This includes doctor appointments, medical testing, hospital visits, and prescriptions. Employees are also reimbursed for the time they lost at work due to their injury.

Product Liability Insurance

Under general liability insurance, property damage and customer injuries are covered. Yet, you may need product liability for claims regarding a product malfunction. Any business that sells, produces, or distributes products can benefit from this type of business insurance.

Professional Liability Insurance

Businesses that offer professional services to their customers need professional liability insurance. This goes for IT consultants, doctors, real estate agents, etc. These professionals can get accused of negligence.

This type of insurance can protect you if there is a client negligence claim aimed at you or the business in general. A claim like this is made when a clerical or administrative error gets made. No matter the outcome of the claim, whether you are found negligent or not, this insurance will reimburse you for the legal costs.

Business Owner’s Policy

Also known as an umbrella policy, a business owner’s policy covers you against multiple risks. This could be property insurance, liability insurance, business interruption insurance, etc. The coverage does not go towards policies like auto insurance, professional liability, or workforce insurance.

Small business owners benefit from this policy because it has multiple insurance types all in one. This makes for an easier insurance buying process. Often, you will spend less on this policy than you would when covering each risk separately.

Find the Right Insurance Plan

There are many insurance types out there to choose from. Whether you need health insurance, life insurance, or business insurance, this guide can help you decide which policy is right for you. Consider your needs with each insurance plan and don’t forget to ask all of the important questions so you don’t end up paying for more than you need.

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