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What Is Permanent Life Insurance? Whole vs Universal vs Term Life

Permanent life insurance is – put simply – a way to combine a death benefit with an interest-bearing savings account. It is permanent because the policy does not have any expiration. But, different types of permanent life insurance offer different benefits and drawbacks.

Learn everything you need to know about whole and universal life insurance. Find out the pros and cons of the two main types of permanent life coverage. And, see what the big differences are between permanent and term life insurance policies.

What is Permanent Life Insurance and Should You Get It?

Permanent life insurance refers to two specific forms of permanent life insurance: whole and universal life. Some insurers offer other types of permanent life policies, but whole and universal life are standard permanent life policies offered by any life insurance company. Whole life and universal life insurance are alike in many ways.

Both types of permanent life insurance policies include a death benefit, as well as a savings element. The difference lies in how the savings aspect, called cash value works with whole vs universal life insurance. Whole life offers a guaranteed-rate savings account, while universal life offers a savings element variable interest rate that is based on the performance of the market.

Permanent Life Policy Basics: Whole vs Universal

The feature indicative of a permanent life insurance policy is the built-in savings element, called cash value. Over time, cash value appreciates as you make regular monthly premium payments on your policy. Your policy’s cash value is tax-deferred and you can borrow against the equity in your policy’s cash value.

The death benefit feature of a permanent life insurance policy is a chunk-sum of money bequeathed to a beneficiary upon the policy holder’s death. The death benefit is separate from the cash value. If you cancel your permanent life policy early, you receive the accrued cash value of your policy, but not the death benefit. How much your policies cash value appreciates over time depends on whether you have a whole life policy or universal life policy.

Whole life insurance is the most common type of permanent life insurance policy. Whole life policies are popular because they have a guaranteed rate of return. You can be confident that the savings will appreciate over time, which comes at the expense of higher monthly premiums.

Universal life, on the other hand, has lower monthly premiums and offers greater flexibility to increase or decrease the death benefit and premium payments. But, the rate-of-return from savings is not guaranteed, as it is with a whole life policy. Universal life basis the savings aspect in the stock market, which is inherently volatile.

In bull markets, your universal policy may see a rapid rate of appreciation, and the opposite in a bull market. Since a universal life policy incorporates more variability in your rate of return, it carries the benefit of lower monthly premiums.

Permanent Life vs Term Life Insurance

Another low-premium life insurance option is term life insurance. Term life insurance is the opposite of permanent life, in that the policy will generally expire before the policyholder. Many term life policies include the option to convert it into a permanent life policy – like renting to own.

The main reason to choose term over permanent life insurance is that term life carries much lower monthly premiums. Finances aside, however, permanent life is a better option for providing savings and, with some policies, dividends after a certain point. Opening a term life policy with the option to convert into a permanent policy can be beneficial for individuals with short-term financial restrictions to opening a new permanent policy.

Permanent life is a tool to provide additional stability to your and your family’s fiscal future. No matter your financial or physical health, there is a life insurance policy that meets your needs. Talk to an insurance specialist for a free consultation on whether term or permanent life insurance is right for you.

If You Can’t Afford Health Insurance Here are Your Options in 2021

If you are one of the American’s who can’t afford health insurance – you are not alone. The past year has caused a level of financial insecurity for millions of Americans that haven’t been seen since the Great Depression of the 1930s. And, with lawmakers in Washington, as of yet, unable to agree on how to resolve the issue, out-of-work and low-income citizens are searching for healthcare solutions.

Learn about the options available to individuals who find themselves without the ability to afford health insurance in 2021. Find out whether you can take advantage of existing assistance programs through the federal government or other entities. And, discover options for getting the coverage you need on an alternative basis to mainstream health insurance and the Affordable Care Act.

Can’t Afford Health Insurance in 2021? These are Your Best Options

It’s no secret that there exists a gaping healthcare cost disparity in the United States, resulting in millions of Americans who can’t afford health insurance. Even with the ratification of the Affordable Care Act (ACA) or Obamacare, the gap between those with insurance and those without continues to grow. And, the unprecedented numbers of unemployment claims, as a direct result of the global COVID-19 pandemic have done everything to exacerbate the already widening gap between the insured, and the uninsured.

For millions of Americans, simply going uninsured is not an option. Going uninsured might mean giving up access to essential medications or life-saving therapies. If you are one of the many Americans finding themselves without the ability to pay for health insurance, there are other options available to you.

Option #1: Cost Assistance Program

Obamacare is prohibitively expensive for many Americans, but it offers a cost assistance program for those in need who qualify. Your income must fall within 100% to 400% of the federal poverty level to be eligible for assistance. But, for many earners put out-of-work due to COVID-19, this program may help.

The ACA Cost Assistance program works to cover the costs of your insurance premium by providing a payment subsidy. The amount covered by the cost assistance program is determined by your income, as well as the cost of coverage in your area. By taking part in this program, the federal government sends your premium subsidy directly to your insurance provider, which deducts it from your premiums on medication and other medical procedures covered under your plan.

If you make 100% to 250% of the federal poverty level you may be eligible for coverage with cost-sharing benefits. Cost-sharing benefits offer lower deductible costs and copays for individuals with higher financial need. Talk to an insurance expert to find out if you are eligible for ACA Costs Assistance.

Option #2: Medicaid Healthcare Coverage

Medicaid is a joint program through federal and state governments that provides healthcare coverage for people with disabilities, those receiving social security, and low-income individuals. In general, Medicaid may be available to you if your household income falls below the 133 percentile of the federal poverty level.

The eligibility qualifications and restrictions for receiving Medicaid vary by state, but it is an invaluable resource if you can’t afford health insurance. And, even if you don’t qualify for health insurance through Medicaid, the Children’s Health Insurance Program (CHIP) can likely offer coverage for your children. Talk to an insurance associate for help navigating your state’s Medicaid application process.

Option #3: Catastrophic Healthcare Coverage

If you are under the age of 30 or qualify for a hardship exemption for financial reasons, you may qualify for catastrophic healthcare coverage. Catastrophic health insurance is cheaper than traditional health insurance plans and includes all the same coverage as your standard HMO. The drawback to catastrophic health insurance, however, is that the deductibles are higher than with a standard health insurance plan.

Unlike with a standard plan, tax subsidies and tax credits are not eligible to use on a catastrophic health insurance plan through the ACA marketplace. If you have preexisting conditions or foresee the need for regular medical care, it is more efficacious to pursue a standard plan through the ACA marketplace.

If you are in tough financial times and need help with your medical expenses, start by finding out whether or not you qualify for Medicaid. Navigating the ins and outs of healthcare coverage can be confusing and stressful – especially when your wallet is thin. If you can’t afford health insurance, a professional insurance assistant will help you find an insurer and plan that meets your needs.

Pros and Cons of Budget Auto Insurance: Does it Offer Enough Coverage?

Basic or budget auto insurance meets your state’s minimum coverage requirements but might not cover an entire claim in the event of a car accident. While basic coverage saves you money on monthly premiums, you are on-the-hook for higher out-of-pocket expenses when it comes to your coverage limits. Budget car insurance is more affordable because it provides less coverage.

The question is whether budget auto coverage is a good choice for you? Learn everything you need to know about basic coverage, minimum requirements, and the costs associated with it. And, see the pros and cons of basic car insurance vs the full coverage of standard auto insurance.

Is Budget Auto Insurance Good Enough? Total Guide to Basic Coverage

Budget auto insurance is not the best car insurance option for every driver, because it leaves most drivers underinsured. To be underinsured is for your auto insurance policy to fall short of covering the full cost of a claim. Basic coverage enables you to be road-legal for the least possible monthly premium – but there are pros and cons to choosing the bare minimum auto coverage.

Driving without insurance is not only illegal but extremely financially risky. Your health and wellbeing aside – uninsured drivers are saddled with the entire cost of any expenses in the event of a car accident. These expenses can include those associated with repairing or replacing your vehicle, other vehicles involved in the accident, damage to personal property, medical expenses for yourself and others involved – etc.

For obvious reasons – driving uninsured is illegal to ensure coverage for these circumstances. So, the basic budget car insurance you can purchase to fulfill your legal insurance requirements is, often, liability insurance.

Basic Auto Liability Insurance vs Full Coverage Auto Insurance

The least-expensive budget auto insurance option in most states is basic liability insurance. Basic liability car insurance provides coverage for property damage and bodily injury that you cause in the event of an auto accident. Basic liability protects other people and things from you – not the other way around.

Opting for budget auto insurance means that you are sacrificing coverage for your vehicle, yourself, and your passengers. In the event of a car accident, basic liability car insurance does not cover damage to your car or medical costs for injuries sustained by you or anyone else in your car. If you cause an accident, to cover damage to your vehicle and those riding in it you need auto collision insurance.

Collision insurance provides coverage for your car and passengers if you cause an accident, but it does not cover damage sustained from something other than an accident. For damage caused by natural events (floods, falling branches, etc.), vandalization, and theft, you need comprehensive coverage. Full coverage auto insurance is the combination of basic liability, collision, and comprehensive coverage in a single policy.

Pros and Cons: Basic Liability vs Full Coverage

Most states require basic liability coverage, at minimum for drivers to be street-legal. You might be considering cutting back on your coverage if you are suffering from financial hardship. Going down to the bare-bones liability coverage can be a more frugal option, but it carries a higher financial risk if you are involved in an auto accident of any kind. Remember, liability protects others from damage or injury caused by you but does not protect you from damage or injury caused by others.

Sometimes you don’t have a choice but to cut down your expenses to the bare essentials. In this case, basic liability coverage is the best budget auto insurance option to keep you legal. Aside from financial hardships, basic liability is also useful when trying to find affordable coverage on an old vehicle.

Build an Auto Policy that Meets Your Needs and Your Budget

Older cars might incur higher premiums on full coverage because of the higher price for repairs in the event of an accident. Especially if the vehicle does not see frequent use, minimum coverage budget auto insurance is a practical option. But, if you drive the vehicle with any frequency, minimum coverage leaves you exposed to possible financial hardships down-the-road.

If you don’t carry collision coverage you are exposing yourself to medical financial burdens in the event of bodily injury to you or the passengers in your car. And, if you don’t carry comprehensive coverage, you are not protected from loss due to theft and damage from fire, floods, or hurricanes. So, if you can afford full auto coverage it will provide the most p[rotection for you, your car, your passengers, and that of others in the event of an accident.

Many drivers, however, cannot afford full auto coverage for one or all of their vehicles, which means you have to work with an insurance company to create a policy. Insurance agencies can bundle together different coverage options to build a customized policy to suit your needs and budget. Talk with an auto insurance associate to start building a budget auto insurance policy that meets your current needs.

What Is Catastrophic Health Insurance? What You Need To Know In 2021

If you are looking for cheaper or limited coverage, catastrophic health insurance might be right for you. In general, catastrophic insurance plans are less expensive per month than a standard HMO insurance plan. But, how do you know if it is the right thing for you?

Learn everything you need to know about catastrophic health insurance coverage. Find out how much it costs in comparison to a standard HMO plan, how much coverage it provides, and if you qualify for catastrophic health coverage. And, see whether this plan will serve your needs if you need medical attention for any reason in the near future.

What is Catastrophic Health Insurance and Is It Right for You in 2021?

Only qualified individuals can get catastrophic health insurance (CHI), and there might be better health coverage options for you. The purpose of CHI is to provide essential medical coverage to individuals with financial hardship, or who are under the age of 30. CHI generally has lower monthly premiums to account for financial hardship or low-risk carriers.

The catch, however, is that catastrophic health coverage carries much higher deductibles than that of a standard HMO plan. So, if you do end up experiencing a medical emergency, you pay a higher out-of-pocket fee before your catastrophic health coverage kicks-in. Depending on your situation and health, a CHI plan might sound perfect, or it may not be the right type of insurance for you.

Plenty of individuals are currently struggling to keep up with their high-premium insurance through the Affordable Cares Act (ACA) – also called Obamacare. Catastrophic health coverage is a good alternative for some. Generally, you would consider getting catastrophic health coverage if you cannot afford standard health insurance – but it is not the only budget health insurance option available.

Catastrophic Health Coverage, Premiums, and Deductibles

With a CHI plan, you get three primary care visits per year – just like most standard HMO plans. Outside of your three annual checkups, however, it does not provide conclusive coverage for most other medical procedures and care. You end up paying an out-of-pocket cost of up to around $8,000 before your coverage kicks-in.

The biggest consideration is whether or not a standard health insurance plan ends up being comparable to the cost of a catastrophic health insurance plan. If you qualify for CHI, you then must consider your likelihood of experiencing an unforeseen medical event. If you end up in the emergency room, your total out-of-pocket costs, in addition to your annual premium, can end up costing more than standard health insurance.

Who Should Consider Getting Catastrophic Health Insurance?

The two groups of people who generally are interested in a catastrophic coverage policy are those who want to pay as little as possible for the bare-minimum coverage, and those who have no other option due to financial hardship. So, either you don’t want to pay, or can’t pay for standard health coverage.

Catastrophic insurance provides bare-minimum preventative medical coverage before you are responsible for up to $8,000 out-of-pocket. And, the likelihood of experiencing a medical emergency gets higher as you age. If implemented as a long-term solution, catastrophic coverage will likely end up costing you more than standard coverage in the long-run.

As a way of easing the financial burdens imposed by the ACA’s Individual Mandate – if you are under the age of 30 with a clean medical history you can qualify for catastrophic health insurance. In 2019, however, the individual mandate was suspended, so there is no federal penalty for going uninsured in 2021. So, for individuals under 30, catastrophic health insurance is no longer as valuable a means by which to avoid penalty fees – since the penalties no longer exist.

If you are over 30 and do not have financial hardships, you simply present too high of a health risk to make a catastrophic policy financially feasible for most private insurance companies. But, no matter your age, financial hardship remains a reason why catastrophic coverage can be helpful. To be approved for your hardship exemption claim you must meet a qualifying circumstance at some point in the past year, such as homelessness, eviction or foreclosure, bankruptcy, or overwhelming medical debt – among others.

You can also qualify if you are ineligible for Medicaid due to your state’s restrictions on the expansion of ACA coverage. But, navigating the world of health insurance can be difficult, and you’re not on your own. Talk to an insurance specialist to get help with your coverage options, applying for Medicaid, or qualifying for catastrophic health insurance.

What Is Hazard Insurance? Everything You Need To Know – 2020

When a natural event, such as a forest fire, hurricane, or severe hail causes damage to your home, you need hazard insurance. Hazard insurance provides coverage for homeowners against specific weather events. Every hazard policy includes some differences, and you might need different weather events included depending on where you live.

Learn everything you need to know about hazard insurance policies, what it covers, and whether or not you need it in your homeowner’s policy. Find out the extent to which hazard coverage can help you with damages incurred by a weather event. And, learn what to look for when shopping for a hazard policy provider.

What is Hazard Insurance? The Total Homeowners Guide – 2020

Hazard insurance is commonly confused with catastrophe insurance – but they are not the same. To begin with, catastrophe insurance does not exist within your homeowner’s policy, but hazard insurance does. Catastrophe insurance can cover some of the same things, but it is a separate and free-standing insurance policy.

Your homeowner’s insurance policy includes hazard insurance to cover the costs of damages incurred to the structure of your property during a natural event. Another common misconception – hazard insurance covers natural events, like hurricanes, but does not cover flood damage. Flood damage also exists under a separate insurance policy.

What Does Hazard Insurance Cover in My Homeowners Policy?

Damages and loss to the structure of your home, other structures on your property, and personal items are covered under your hazard insurance. The exact instances that your policy covers, and for how much is different for every insurance provider – as well as for each policy. But, no matter your homeowner’s policy, it includes hazard insurance of one sort or another.

Without the inclusion of hazard insurance, homeowners would be left with the bill for any damage incurred by the weather, like strong winds, hail, and tornados. Even if your entire home gets blown down by a hurricane, hazard insurance works to replace and repair the structure, property, and appliances in your home. In general, most hazard insurance policies cover the cost of damage that comes from…

Windstorms
Hail
Fire and Smoke
Lighting
Aircraft or Vehicles
Theft or Vandalism
Civil Unrest and Riots
Explosions
Volcanos
Falling Objects
Electrical Current
Freezing, Snow, Ice, and Sleet

The natural events which are not covered by most hazard insurance policies include…

Earthquakes
Mudslides
Flooding
Landslides

What to Look for When Choosing a Hazard Insurance Policy

You can get extra insurance coverage on top of your standard hazard insurance to cover damages related to earthquakes, mudslides, flooding, and landslides. The most important part of choosing a policy is to make sure it covers the most likely causes of damage where you live. For example, if you live in the midwest, flood insurance might not be necessary, but if you live in Florida it is crucial.

If you live in an area that resides in a floodplain, or that experiences more landslides than the average area, consider getting supplemental insurance. California residents have to constantly worry about earthquakes, which are not covered under homeowners and hazard insurance. Look for a policy that gives comprehensive coverage for the natural disasters you experience in your area, and take out as much coverage as you need to repair your home in the event of destruction.

The hazards that are outlined in your homeowner’s insurance clearly state what natural events are covered by your hazard insurance. Still, have questions? Talk to an insurance advisor for a free consultation on the best hazard insurance provider for your area.

Commercial Umbrella Insurance: Should Your Business Have It?

If your business owns a large number of assets, you should consider getting commercial umbrella insurance. If your business maxes out its general liability coverage, umbrella insurance provides additional coverage for predetermined liability risk. And, one of the most common risks to your general liability is property assets.

So, does your business present the level of liability that requires extra protection? Learn everything you need to know about commercial umbrella coverage for your business. Find out what it covers and when this coverage kicks-in. And, see if your business presents the kind of risk that is well-served by having umbrella coverage.

Commercial umbrella insurance is good to have if you have assets. The regular liability on your policy is usually enough, but bad things happen.

Commercial Umbrella Insurance: What is It and How Does it Work?

Commercial umbrella insurance is designed for liability coverage over that of your general liability coverage. It is especially useful for businesses at high risk of litigation, and those with a large volume of property assets. But, to acquire umbrella coverage, your business needs underlying coverage, as well.

The nature of your business activities and assets determine its need for extra umbrella coverage. Some coverage providers require different levels of underlying coverage before an umbrella policy pays out. The underlying requirements almost always include general liability insurance and can include workers’ compensation coverage, commercial auto liability coverage, and other forms of coverage.

How Does Umbrella Coverage Work?

Commercial umbrella coverage works by paying-out when your business’s underlying coverage runs-out. In this way, it is almost identical to personal umbrella coverage, which increases the coverage you receive in your home, renters, and auto insurance. But, commercial umbrella policies increase the amount covered in your underlying policies, for things like legal fees, costs of damages occurred, and medical bills.

What is Covered Under a Commercial Umbrella Policy?

A personal umbrella insurance policy extends the coverage in your underlying policies, but businesses present a different risk to insurance companies than that of individual homeowners. So, commercial umbrella policies provide extra coverage on specific types of liability. And, even umbrella policies can only offer coverage up to a point.

In general, commercial umbrella policies extend a business coverage on certain types of liability, from $1 million to $2 million on top of your underlying coverage. So, if your liability exceeds your umbrella coverage limits of between one or two million dollars, you’re on your own.

As stated above, umbrella coverage does not cover every claim, across the board. Instead, it provides specific coverage on some of your existing liability covered under your general liability policy. Take the examples of a snow-plow driver versus a real-estate lawyer:

One day, the snow-plow driver is in a hurry to get home, so they forget to finish plowing a portion of their route. Someone slips falls and sues the snow-plow company for liability over the companies general liability coverage limits. In this case, umbrella coverage kicks-in to cover the additional damages that exceed the general liability.

The real-estate lawyer, on the other hand, makes a mistake in an audit that values a property at $500,000, instead of $1 million, resulting in a liability lawsuit. If the lawyer’s professional liability insurance is exceeded by the cost of damages that occurred, umbrella insurance does not cover the balance. In this case, the law firm requires Errors & Omissions (E&O) insurance.

Does Your Business Need Commercial Umbrella Coverage?

How efficacious it is for your business to purchase commercial umbrella insurance is dependent on the level of liability risk inherent in your business’s activities. As a general rule-of-thumb, there is a high risk if your business engages in a high amount of interactions with customers or clients. The highest risk is reserved for businesses that engage in using heavy machinery and hazardous equipment – especially in dangerous environments, like deep-water drilling.

The more people that interact with your business, the more liability risk your business presents to an insurance company. Therefore, umbrella insurance can help in the event your general liability policy coverage is exceeded by the costs of damages that occurred. In the same way, it can help if your business operates on a property that is owned by a third party, like a landlord.

Retail stores, restaurants, industrial manufacturing facilities, and hotels present the most risk because of the high levels of customer interactions, and high-risk associated with the nature of the work.

Does your business present a high enough risk to validate getting commercial umbrella insurance? Talk to an insurance specialist today for a free consultation and liability risk assessment.

Types Of Health Insurance and Health Plans: A Complete Guide for 2020

When it comes to health insurance, there are several different types of health insurance to choose from. Whether you are shopping for health insurance from your State marketplace, or through a health insurance broker, it helps to be familiar with the options that you will encounter. This is your complete guide to health insurance plans and options for 2020.

Learn everything you need to know about the different types of health insurance coverage types and deductible levels. Find out what the differences are between the plan types offered through national insurers. And, see which combination of coverage options best serves your health needs and budget.

Types of Health Insurance and Health Plans Available in 2020

Looking through the myriad types of health insurance available on the marketplace or through a broker can leave your head spinning. There are so many options available, so how do you know which one to choose? Here is everything you need to know in 2020 about the types of health insurance plans available to you.

Health insurance coverage is separated into categories that correspond to your level of deductible. A deductible is the amount of money you have to pay before your health insurance picks up the rest of the cost. In general, the less expensive your insurance plans monthly premium, the higher your deductible.

Types of Health Insurance Deductible Levels

Each level of health insurance is identified by a metal: platinum, gold, silver, and bronze. The top deductible coverage level – platinum – generally covers around 90% of your medical costs while you are responsible for a deductible of about 10%. Since platinum-level health insurance covers the vast majority of your medical costs, it carries the highest monthly premium.

The next highest level of coverage is gold, which covers about 80% of medical costs. Since gold-level plans cover fewer medical costs than platinum plans, gold carries a lower monthly premium than platinum, but higher than that of silver. Silver level plans cover 70%, leaving you a 30% deductible, and bronze level covers 60% of medical costs.

Catastrophic policies also are available to supplement high deductibles. In 2020, catastrophic policies generally payout after you surpass about $8,000 in deductible costs. Also, catastrophic insurance has to cover preventative care and your first 3 visits to a primary care physician for free, regardless of your deductible level.

Health Insurance Plans by Care Level

Most national big-brand health insurance providers – such as Anthem, Blue Cross Blue Shield, Aetna, United, or Cigna – offer certain types of health insurance plans. This coverage is spelled out in a health plans Summary of Benefits. Each type of plan exists to best fit your specific medical needs and budget.

Health Maintenance Organization (HMO) Plan

A Health Maintenance Organization (HMO) plan is the most common type of health insurance coverage. With an HMO plan, you have the least freedom to choose a care provider, and the least amount of paperwork to fill out. Your HMO dictates the network of healthcare providers from which you can choose.

The upside of an HMO plan is that there is very little paperwork to fill out since you are not required to file claim forms. On the other hand, your health services are all provided through a predetermined network of providers and facilities. If you end up going to a provider outside of your HMO’s network, you have to pay the bill out-of-pocket.

HMOs require you to pay a monthly premium, a deductible, and can often include copays. A copay is a flat rate you pay when receiving care and is usually around $15 to $30. You might also be responsible for coinsurance fees, which is calculated based on a percentage of the cost of care.

Preferred Provider Organization (PPO) Plan

A Preferred Provider Organization (PPO) coverage plan offers more freedom to choose your medical care provider, as well as to see a specialist without the need for a referral from an in-network physician. If you decide to see an out-of-network provider, however, you have to pay a higher out of pocket expense, as well as fill out more paperwork. Like an HMO, when using providers in-network for your PPO plan, there is very little or no paperwork involved.

With a PPO plan, you pay the same expenses as are required in an HMO, except for out-of-network care. If you receive care from out-of-network providers that charge more than the areas average, you might be expected to make up the remainder. PPO coverage requires you to pay an out-of-network provider before filing a claim for reimbursement to your PPO coverage provider.

Exclusive Provider Organization (EPO) Plan

Unlike a PPO plan – Exclusive Provider Organization (EPO) plans do not cover the costs of care for out-of-network providers, except in the case of an emergency. But, the premiums for EPO plans are generally less expensive than that of a PPO plan. EPO plans offer less freedom to choose your provider than that of a PPO plan, but more choice than with an HMO.

You are free to choose any care provider inside your EPOs network of providers. If you choose a provider outside of your network, there is no coverage from your EPO plan. And, with an EPO, most insurance carries little to no deductible.

Point-of-Service (POS) Plan

A Point-of-Service (POS) health insurance plan allows for more freedom to choose your care provider. It combines features from an HMO plan and a PPO plan. You have a primary physician who may refer you to specialists within your POS network, and it provides minimal coverage for out-of-network care providers and facilities.

If you receive care or see a provider outside of your POS network, you must file a claim for partial reimbursement. When receiving care from in-network providers there is little to no extra paperwork involved. Most POS plans charge a premium, copays, and a deductible associated with care outside of preventative services.

With all the options available, how do you know which one is the best choice for you? The right health insurance for you is the one that best suits your health needs and budget. If you want help learning about the types of health insurance available and which one best fits your needs, talk to an insurance professional today.

Does Homeowners Insurance Cover Mold? What You Need to Know 2020

The last thing you want to find in your home is mold damage – especially if the home is a recent purchase. Homeowners insurance provides coverage for many types of damage to your property. But, it only takes one fuzzy spot on your ceiling or walls to make you wonder, “does homeowners insurance cover mold?”

Mold is covert, slow-growing, and problematic to you and your family’s health. In this article, learn everything you need to know about whether your homeowner’s insurance covers mold damage. Find out which types of mold damage are covered in your homeowner’s insurance, how to successfully get your mold claim approved, and how to avoid mold damage in the future.

Does Homeowners Insurance Cover Mold? Understanding ‘Covered Perils’

Does homeowners insurance cover mold? Some carriers exclude mold or have a small limit to cover from a claim where the cause of the mold is a covered claim.The question that matters to your homeowner’s insurance carrier is, what is the cause of the mold?

The most common thing to cause mold is lingering moisture from water damage. And, the most common water damage is flooding. The mold that occurs as a result of flooding is covered under a flood insurance policy, separate from your homeowner’s insurance.

Most homeowner’s insurance policies do not guarantee coverage for mold damage. Homeowners insurance covers anything that qualifies as Covered Perils. Covered perils refer to the assets that are ‘covered’ in the ‘perilous’ event that they succumb to damage.

Types of Mold Damage: Is it Covered by Homeowners Insurance?

If the cause of mold is not from flooding, you might be eligible to file a claim to cover the damage. Your homeowner’s insurance policy includes coverage for some water damage. It all depends on the specific cause by which mold is growing, and if it is covered under your policy as a Covered Peril.

In general, your home appliances are covered in the event of a malfunction that results in water damage. This is also true in the case of water damage caused by a malfunctioning hot water heater. The distinguishing factor is, whether water damage is the result of a Covered Peril, or whether water is the initial cause of damage leading to mold.

So, if a hose within your dishwasher malfunctions resulting in water and mold damage to your home, homeowners insurance covers, both the initial, and resulting damage. On the other hand, if you allow water to accumulate on the bathroom floor when you get out of the shower, and mold starts to grow, it is not covered as resulting damage from a Covered Peril.

Mold from Flooding or Acts of Nature

Water is insidious, penetrating, and relentless. Water seeps into the wood, corrodes metal, and rots fabric. Unlike other elements, water is difficult to eradicate once it finds a way into your home, and can cause long-term, irreversible damage to structural elements.

So, insurance companies are careful when it comes to covering the cost of damages initiated by water. Flood insurance exists to provide specific coverage for damage resulting from floods and acts of nature. For instance, if a strong thunderstorm causes storm drains to back-up, and water seeps under your doorway causing damage to your home, you better hope you have flood insurance.

Since your homeowner’s insurance does not cover the initial damage which results in mold, it does not cover the mold damage, either. The cost of coverage for damage sustained by flooding is relative to the risk factor for the area in question. Flood-prone areas in the United States have higher premiums on flood insurance, compared to areas of higher elevation.

If, however, your roof is torn-off by a tornado, causing water damage from resulting rain exposure, you are more likely to be able to file a claim to your homeowner’s insurance policy carrier. In this case, the resulting mold might be covered as part of the damage sustained by a Covered Peril.

Mold from Homeowners Negligence

If water damage and mold resulting from negligence on the part of the homeowner, you will have a hard time getting your claim approved. The initial damage that causes mold is commonly a result of homeowner error or negligence. For example, neglecting to repair a leaking pipe under your sink is not a valid claim for compensation under your homeowner’s policy.

If your insurance carrier can prove that you knowingly could have prevented the mold damage by ensuring the upkeep of your home, it is hard to get your claim approved. The best option is to be preemptive about mold, by using a dehumidifier to limit residual moisture in the home and keeping a practice of regular cleaning habits around the house.

You can improve your odds of getting a claim approved to cover mold damages if you can prove that it is not a result of homeowner negligence. Still asking, does homeowners insurance cover mold in my case? Talk to a homeowner’s insurance expert today and see if you are covered.

Term vs Whole Life Insurance: What’s the Difference?

When considering life insurance coverage options, it is important to understand the differences between term vs whole life insurance. Whole life insurance is a way to provide yourself extra income in retirement, as well as lifelong coverage. Term life insurance, on the other hand, is less expensive because it provides coverage for a limited time.

Learn everything you need to know about term vs whole life insurance policies. Learn about the benefits and drawbacks of each type of life insurance. And, find out how the benefits compare for whole or term life insurance policies.

Term vs Whole Life Insurance: Which One Should You Choose?

When it comes to choosing term vs whole life insurance, you have to take into consideration the different benefits between the two. The biggest difference between term and whole life insurance is the longevity of coverage. Term life insurance provides coverage for a predetermined period of years – usually, up to around 30 years.

Whole life insurance involves more complicating factors which makes online quotes more difficult to give out. It carries a higher monthly premium than that of term life insurance, however, it also carries greater benefits for policyholders. But, to begin with, it is easiest to get a grasp on the ins-and-outs of term life insurance.

How to Understand Term Life Insurance

The original intent of life insurance is to provide coverage for an individual’s unintended and unexpected death. Term life insurance still holds-true to this purpose. It provides coverage for a limited time, in which the policyholder’s beneficiaries receive a payout if they die.

Often, term life insurance policies are available in 10, 20, and 30-year increments. Term policies hold a flat value for the agreed-upon timeframe. So, for term life insurance, your premium and benefits do not increase over time.

The amount of term life insurance that is most efficacious for you depends on several factors. You want to focus on the years in which you are liable for bills so that they do not become a burden to your next of kin in the event of your untimely death. And, it must be compensatory to the financial burden you currently hold, such as the costs of child support, schooling, and current level of debt.

The goal with term life insurance is to align your policies timeline with your end of life, as closely as possible. This is only possible to a point. But, if you give yourself a wide enough margin of error, your term life insurance policy will serve its purpose to assist your loved ones in their time of need.

How to Understand Whole Life Insurance

Whole life insurance serves a greater purpose than term life insurance. Term vs whole life insurance serves a predefined period, whereas whole life insurance provides coverage to the point of your passing. The biggest difference for whole life insurance is that it also serves as an investment.

Whole life insurance policies carry a cash value, which increases over time. The cash value sits in an account where it slowly accrues interest. And, it is tax-deferred, to relive the policy holders’ tax liability.

Also, whole life insurance policies serve as a form of credit, which you can borrow money against. The money you borrow on this credit, however, must be paid back with interest, lest the cash value decreases. Also, you can withdraw the entire cash value at any time, therein surrendering your policy coverage.

The simplest form of whole life insurance is called permanent life insurance. With a permanent life insurance policy, the premium stays consistent for the life of the policy. Unlike term policies, there is a guaranteed death benefit and accrual rate of your cash value.

Certain whole life insurance policies even pay dividends to the policyholder on an annual basis. Policyholders have the option to take dividends in cash or reinvest them into the cash value of the policy. Often, reinvesting dividends back into your policy is rewarded with additional benefits, like earning interest on the cash value, or decreasing the cost of your monthly premium.

How to Choose Term vs Whole Life Insurance

So, how do you know to pick a term vs whole life insurance policy? Look at it in terms of practicality and planning for the benefits that are most important for your circumstances. For instance, what’s the good of a life insurance policy with premiums that you starve to death trying to pay?

For the majority of individuals, term life insurance provides the coverage essential in the event of unexpected loss. It serves to replace income loss for a specified period, and it is affordable for most household budgets. Furthermore, most term life insurance policies allow the holder to easily transfer their existing policy into a whole life insurance coverage, for a window of time within the life of the policy.

Even if the price is no object, a term policy allows you to use the money you are saving to invest wherever you see fit. On the other hand, a whole life insurance policy is a means of savings that is dependable and guaranteed. Also, these policies can be used as an investment into a trust for lifelong dependents, ensuring their financial solvency after your passing.

Your life insurance can make a big difference in achieving the legacy you want in life and leaving your heirs with an inheritance for the future. Choosing the right type of insurance can be a complicated one, with many factors that affect your life and finances. For help weighing your term vs whole life insurance options, contact an insurance specialist, today.

Michigan No Fault Insurance Reform 2020: Everything You Need to Know

If you are an auto owner in Michigan, you better know what just happened that affects your insurance. As of July 1, 2020, the State reformed how claims are covered under it’s no fault system. So, how does the 2020 Michigan no fault insurance reform affect your auto insurance?

Learn everything you need to know about the new Michigan no fault insurance reform. Find out how the reform changes your auto policy. And, see if the new reform is beneficial or detrimental to your insurance plan.

The Auto-Owners Guide to the 2020 Michigan No Fault Insurance Reform

The Michigan no fault insurance reform bill passed into law on May 30th, 2019, by the Governor of Michigan, Gretchen Whitmer. The reform intends to lower the average monthly rate for drivers in the State. It also serves to increase competition amongst Michigan auto insurers while providing stronger protections for consumers and insurers, alike.

Previously, under Michigan’s law, auto insurance providers were required to provide unlimited medical coverage on all insurance plans. The purpose is to ensure total coverage of your medical expenses in the event of an accident. The result, however, has been Michigan auto insurance prices consistently averaging higher than the rest of the Nation.

The reform, which took effect on July 1, 2020, allows consumers to choose a level of coverage, instead of paying the mandatory maximum coverage rate. This means, if you opt for less coverage, you might be on the hook for more medical expenses in the event of a car accident. So, ultimately, the reform allows drivers to carry more inexpensive policies if they are willing to assume more financial risk.

How Does the Reform Affect Current Policy Payouts and Monthly Dues?

The Michigan no fault insurance reform affects claims made after July 1, 2020. Any benefit payout that existed before July 1, 2020, remains unchanged by the reform. If your benefits are based on a claim process that was approved by July 1, your benefits will not be changed.

If like most drivers, you hold a policy with unlimited medical coverage, your Michigan insurance company is required to give you options. The reform bill requires your insurer to lower the existing premiums on all auto policies Personal Injury Protection (PIP) coverage options.

What Should You Expect From Your Insurance Company?

Since your policy is in reform, your insurance company has to provide documentation describing the benefits and risks of the available coverage options. There are several choices for medical coverage under Michigan’s July 1, 2020, no fault reform:

New Medical PIP Coverage Options for Auto Insurance in Michigan

Customers can choose to continue paying for unlimited PIP medical coverage. If you don’t tell your insurance company any different, you will continue to receive unlimited medical coverage, by default. To switch your policies coverage limit, contact your insurance company and ask about your available medical PIP coverage options.

The first option is limited coverage, which is available in two increments. You can opt for limited coverage of $500,000 or $250,000. This dollar figure represents the limit of coverage your insurance policy pays for each person’s medical expenses, per accident.

You can opt for limited coverage of $250,000, which excludes some or all other individuals from the PIP. This is a helpful option if you are on Medicaid and your resident relative or spouse has coverage under a separate health insurance policy. This option lowers your policy cost, but it also limits your financial protection in the event of a medical emergency caused by an accident.

You can opt for limited coverage of $50,000 if you meet certain stipulations. The policyholder must be enrolled in Medicaid, as well as their spouse and resident relatives, like children. Or, the policyholder’s spouse and children must be covered under a different policy that provides medical PIP coverage.

The only way that you can refrain from paying for medical coverage, all-together, is if the primary policyholder is enrolled in Medicare parts A or B. Spouses and any resident relative must also be enrolled in Medicare, or have another form of qualifying health coverage. This is risky, however, because the whole of the medical costs is upon your shoulders in the event of an accident.

Should You Change Your Auto Policy?

As of July 1, 2020, you no longer have to pay for an overweight auto policy in Michigan. If you haven’t yet, explore your new options under the Michigan no fault insurance reform. And, contact an insurance specialist to see if the new reform means that you can save on your monthly auto insurance cost.