TYPES OF INSURANCE COVERAGE I OFFER
Life insurance
Term life insurance lasts a certain number of years, then ends. You choose the term when you take out the policy. Common terms are 10, 20, or 30 years. The best term life insurance policies balance affordability with long-term financial strength.
- Decreasing Term Life Insurance—decreasing term is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.
- Convertible Term Life Insurance—convertible term life insurance allows policyholders to convert a term policy to permanent insurance.
- Renewable Term Life Insurance—is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and is usually the least expensive term insurance in the beginning.
Term life insurance is attractive to young people with children. Parents may obtain large amounts of coverage for reasonably low costs. Upon the death of a parent, the significant benefit can replace lost income.
These policies are also well-suited for people who temporarily need specific amounts of life insurance. For example, the policyholder may calculate that by the time the policy expires, their survivors will no longer need extra financial protection or will have accumulated enough liquid assets to self-insure.
Term life insurance occurs over a predetermined period of time, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated according to the holder’s age, life expectancy, and health. By contrast, whole life insurance covers the entire life of the holder. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. Here, the holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity.
Whole life insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. Interest accrues at a fixed rate and on a tax-deferred basis.
Whole life insurance policies are one type of permanent life insurance. Universal life, indexed universal life, and variable universal life are others. Whole life insurance is the original life insurance policy, but whole life does not equal permanent life insurance as there are many types of permanent life.
Universal life insurance and whole life insurance are both permanent life insurance types that offer guaranteed death benefits for the life of the insured. However, a universal life policy allows the policyholder to adjust the death benefit as well as the premiums. As one might expect, higher death benefits require higher premiums. Universal life policyholders can also use their accumulated cash value to pay premiums, provided the balance is sufficient to cover the minimum due. Whole life insurance, alternatively, does not allow for changes to the death benefit or premiums, which are set upon the issue.
- Decreasing Term Life Insurance—decreasing term is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.
- Convertible Term Life Insurance—convertible term life insurance allows policyholders to convert a term policy to permanent insurance.
- Renewable Term Life Insurance—is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and is usually the least expensive term insurance in the beginning.
Term life insurance is attractive to young people with children. Parents may obtain large amounts of coverage for reasonably low costs. Upon the death of a parent, the significant benefit can replace lost income.
These policies are also well-suited for people who temporarily need specific amounts of life insurance. For example, the policyholder may calculate that by the time the policy expires, their survivors will no longer need extra financial protection or will have accumulated enough liquid assets to self-insure.
Term life insurance occurs over a predetermined period of time, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated according to the holder’s age, life expectancy, and health. By contrast, whole life insurance covers the entire life of the holder. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. Here, the holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity.
Universal life (UL) insurance is permanent life insurance (lasting the lifetime of the insured) that has an investment savings element and low premiums similar to those of term life insurance. Most UL insurance policies contain a flexible-premium option. However, some require a single premium (single lump-sum premium) or fixed premiums (scheduled fixed premiums).
For one thing, UL insurance policies, unlike term life, can accumulate interest-bearing funds like a savings account. Also, policyholders can adjust their premiums and death benefits. Holders paying extra toward their premium receive interest on that excess.
f you want to build tax-deferred savings and don’t expect to tap into the funds for a long time, universal life may be a suitable option for you, the III says. The cash value option that’s part of a universal life policy may be available for you to withdraw or borrow against in an emergency.
It’s a good idea to talk with your insurance provider to better understand your life insurance options. They can help you review your personal situation and long-term goals to help you choose a policy that’s a good choice for you and your family.
- Decreasing Term Life Insurance—decreasing term is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.
- Convertible Term Life Insurance—convertible term life insurance allows policyholders to convert a term policy to permanent insurance.
- Renewable Term Life Insurance—is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and is usually the least expensive term insurance in the beginning.
Term life insurance is attractive to young people with children. Parents may obtain large amounts of coverage for reasonably low costs. Upon the death of a parent, the significant benefit can replace lost income.
These policies are also well-suited for people who temporarily need specific amounts of life insurance. For example, the policyholder may calculate that by the time the policy expires, their survivors will no longer need extra financial protection or will have accumulated enough liquid assets to self-insure.
Term life insurance occurs over a predetermined period of time, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated according to the holder’s age, life expectancy, and health. By contrast, whole life insurance covers the entire life of the holder. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. Here, the holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity.
Auto Insurance
Auto liability insurance helps financially protect you if you’re found at fault in an auto accident. It can help cover an injured person’s medical bills or repairs to someone’s vehicle. Drivers are legally required to carry liability insurance in most states. Liability insurance comes in two forms: and property damage liability coverage. They break down like this:
- Bodily injury liability coverage (sometimes abbreviated as “BI”) – Bodily injury helps pay for an injured person’s medical expenses if you’re found at fault in an accident. It can also help cover legal fees if you’re sued.
- Property damage liability coverage (sometimes abbreviated as “PD”) – This coverage helps pay for repairs if you damage someone’s property. For example, if you rear-end another car, it can help pay for auto shop fees so you’re not stuck with the whole bill.
The amount you pay for liability insurance is based on a number of factors, including how much coverage you purchase. The higher your coverage limit, the more you’ll likely pay for liability insurance. Your insurer can tell you how much your coverage will cost if you adjust your limit. Liability coverage typically doesn’t pay to repair damage to your own car after an accident—collision coverage helps with that. It also doesn’t pay to repair damage caused by other factors, such as hail—that’s where comprehensive coverage comes in.
Medical payments coverage (MPC) is for the treatment of injuries for you and any passengers in your vehicle at the time of an accident. MPC strictly pays for medical bills resulting from auto accidents; it does not typically pay for things like lost wages. Medical payments coverage may also cover you if you are a pedestrian hit by a motor vehicle. Your medical payments coverage has a limit, which is the highest amount of money the insurance company will pay you for medical costs. This limit is generally a per-person limit. So if you have $5,000 in MPC, that means you have $5,000 in coverage per person in the vehicle. If you are unsure how much medical payments coverage you need, seek advice from a licensed insurance agent.
Contrary to popular belief, this coverage does not automatically cover your rental car if you are on a vacation (although if you have full coverage — comprehensive and collision — your vacation rental vehicle may be covered; check with your provider). Rental car coverage pays for the cost of a rental vehicle while your vehicle is not drivable due to a covered loss. The coverage is usually represented by two numbers separated by a slash. The first number is the daily payment limit and the second is the total limit. So if you see a 30/900 limit, that means your company will pay $30 per day, up to $900 total, for a rental car. Most companies offer a variety of coverage limits so that you can choose the appropriate limit for your needs. For example, suppose you need a vehicle with seating for six people. In that case, you may want to increase your car rental limit so that if your vehicle is not drivable, your insurance coverage will be enough to reimburse you for a larger rental vehicle. It is important to note that many companies have a daily limit on the number of days they will cover the expenses of your rental car to encourage you to purchase a replacement vehicle within a reasonable time frame if your vehicle is totaled.
When your vehicle gets damaged in a collision, this is the coverage that pays for fixing the car. Collision coverage can provide coverage for damage to your vehicle after you hit another vehicle, a pole, a tree or even a pothole. However, if you were not at fault for an accident that caused damage to your car, the at-fault driver’s property damage liability coverage should pay for your repairs. However, collision coverage only applies to your vehicle — it does not cover damage to the other driver’s car. Additionally, collision coverage does not cover you for mechanical failure or the normal aging of your vehicle. If, for example, your transmission dies, you could not use your collision insurance to get it fixed. Unless you have a loan or lease on your car, this coverage is likely optional. However, you may want to consider adding this relatively inexpensive coverage to provide you with financial protection for repairing or replacing your vehicle in the event of an accident.
Vehicles, especially new ones, often begin to decrease in value the moment you take them off the lot after you purchase or lease them. Due to this depreciation, your loan amount can be higher than the market value of your vehicle. In simple terms, gap insurance covers the difference between your vehicle’s depreciated value and your loan amount. Gap insurance is often available from your lender, but can sometimes be purchased from your insurance company as an endorsement on your auto insurance policy. However, your insurance company may limit how old a vehicle can be to qualify for gap insurance. For example, gap coverage may be offered for a brand new vehicle or up to two model years old. The Triple-I warns that gap insurance offered by lenders is typically much more expensive than purchasing it from your auto insurer.
This coverage applies to your medical expenses if another driver hits you but does not include any liability coverage or does not have enough liability coverage to pay for your injuries. If you, another covered driver on your policy or someone you have allowed to borrow your vehicle gets hit by an underinsured or uninsured motorist, this type of insurance pays for damages. You can think of uninsured and underinsured motorist coverage as buying a liability policy to protect yourself against drivers who drive uninsured. It functions like liability coverage but is designed to pay for your own vehicle’s damages. Uninsured and underinsured motorist coverage can also cover you while you are a pedestrian or if you are the victim of a hit-and-run where the at-fault driver leaves the scene and is unidentifiable. Uninsured and underinsured motorist coverage may be optional or mandatory, depending on the regulations in your state.
Property insurance
Homeowners insurance is probably the best-known type of property insurance. And it’s a good thing since your home is probably one of your largest investments—and it needs protecting! Homeowners insurance is financial protection for your home against loss from disasters, theft, and accidents. It also protects your belongings and provides liability coverage. Your home is more than just a house. Not only could it be your largest investment, it’s also your special place for storing things like that antique clock your mom gave you. If the clock is destroyed by a fire, homeowner’s insurance won’t ease the loss of the clock’s sentimental value, but the right policy will help you buy a new one. Standard homeowner’s insurance policies cover losses and damages to your residence’s structure along with furnishings and other assets. It also provides liability coverage for accidents that happen inside your home or on your property. Here’s how it works. When you file a claim for a covered event, you’ll be required to pay your deductible and the insurance company will pay the rest. For example, let’s say the wood flooring in your home is ruined by a broken water pipe. If the cost to replace the flooring is $10,000, you might file a claim against your homeowner’s insurance policy. If the claim is approved and your deductible is $3,000, the insurance company will cover the remaining $7,000. Phew! Keep in mind though that homeowner’s insurance can get tricky about what it does and doesn’t cover. It’s a great way to protect your property, but it won’t pay for everything. Take a close look at potential gaps by consulting a local, trusted provider.
Whether you call your condo home, or it’s your home away from home, it’s an investment that needs insurance protection. But condos and houses do have distinct differences, so they require different types of insurance coverage. Let’s go over the basics. Condo insurance is purchased by the condo owner to provide financial protection for loss and repair to the condominium unit they own. A lot of condo owners don’t realize that their condo and personal property are not covered by their condo association (aka HOAs). HOA insurance typically focuses on the building structure and common areas. But condo owners are responsible for the coverage on the specific unit they own. All smart condo owners need to purchase condo insurance. The right policy will provide financial reimbursement (after you pay your deductible of course) so you can continue building your nest egg. Here’s the gist of what condo insurance coverage typically includes:
- Personal liability: If someone is injured inside your condo, liability coverage will help you pay for related legal and medical expenses.
- Structural protection: If damage is caused to the walls (interior or exterior) of your condo unit by a covered peril, property protection coverage will help you pay for repairs.
- Personal property: If your belongings (electronics, appliances, furniture and clothing) are stolen or damaged, condo insurance will help pay to repair or replace them.
If you own property and rent it to tenants, you need landlord insurance. It doesn’t matter if your tenants are friends, relatives or your former spouse, you still need landlord insurance. Landlord insurance protects you legally and financially from damages or injuries related to a rental property you own. Whether your rental property is damaged in a hurricane or your tenant in apartment 4B had an accidental kitchen fire and claims they’re not at fault, landlord insurance is crucial for protecting your assets from events that are completely out of your control. Landlord insurance policies include at least three core protections: property damage, liability and lost rental income. Remember when we said we’d call out the insurance types that stray from typical coverage (structural, personal belongings, liability)? Well, this is one of them. For one thing, reimbursement for lost rental income isn’t covered by other types of policies. Another thing to remember is that landlord insurance does not cover a tenant’s personal belongings. It’s up to the tenant to buy renters insurance if they want to be reimbursed for damage to their stuff. But hold on, before we get into renters insurance, there’s more you should know about landlord insurance. Depending on the location and condition of the rental property you own, you might consider additional coverage that can cover things like construction costs, commercial property, flood insurance, earthquake insurance, water backups and vandalism. For example, if your rental property is in a high-crime neighborhood, you might consider adding vandalism protection to your policy.
Most renters think that if anything happens to their belongings or guests inside their rental property they’ll be covered financially by their landlord. Nope, not true. It’s up to the renter to buy insurance. Renters insurance provides coverage for a renter’s (or sub letter’s) belongings and liabilities. Anyone renting (or subletting) a single-family home, apartment, duplex, condo, studio, loft, or townhouse can purchase a renter’s insurance policy. Picture this. After saving for months, you finally bought a new 65-inch 4K Roku-smart television. You’ve been enjoying it for weeks when you notice a water spot on the ceiling where water has been dripping onto the top of your new TV all day while you’ve been at work. You hold your breath, turn on the TV, and . . . nothing. Time to panic? Not if you buy renters insurance. Renters’ insurance covers damage to renters’ personal belongings from fire, smoke, and water damage that occurs inside the rented property. It also provides liability coverage if someone is injured in the property you rent. So that fancy TV you bought that now displays multiple channels of warped static is covered. You’re also covered if your friend slips on that puddle that’s been collecting from the water droplets that bounced off your TV. Whew!
Flood insurance can help ease the trauma caused by flood damage. Let’s go over some fundamentals. Flood insurance is an extra layer of protection that covers dwellings for losses caused by flooding from heavy or prolonged rain, melting snow, a coastal storm surge, blocked storm drainage systems or levee dam failure. Flood insurance policies are different from the basic hazard insurance coverage that’s usually included in homeowners insurance (for example, water damage from a burst pipe or a toilet that overflows). Flood insurance, on the other hand, provides coverage for water damage caused by the rising of a body of water that covers normally dry land. Flood insurance is not a normal part of your homeowners insurance and must be purchased separately. There are many reasons why you might need flood insurance to protect your investment. In general, any dwelling that’s prone to flooding from the shape of the surrounding land (think Katrina), the type of soil or weather patterns, needs to be protected by flood insurance. If you own property in a neighborhood that’s a federally recognized flood area, you’re required by law to purchase flood insurance. But floods can be super unpredictable. That’s why, even if you’re not required to purchase it, it’s still a good idea to at least look into flood insurance so you know you’re covered no matter what. Flood insurance is another type of property insurance that’s different from most others. It only helps cover physical damage to your home and belongings from floods or related losses from rising water. The amount of coverage and reimbursement you get all depends on what’s specifically spelled out in your policy. It’s so important to remember that flood insurance is not included in your homeowners insurance coverage. If that’s news to you, you’re not alone—most people need help understanding flood insurance. If you live in a coastal area where hurricanes are common, it’s a good idea to combine flood insurance with wind insurance. Wind damage is typically included in homeowners policies, but that might not be the case if you live in a hurricane-prone zone and your property is damaged in a hurricane. We recommend you talk to an insurance agent to make sure you have the right coverage.
- Personal liability: If someone is injured inside your condo, liability coverage will help you pay for related legal and medical expenses.
- Structural protection: If damage is caused to the walls (interior or exterior) of your condo unit by a covered peril, property protection coverage will help you pay for repairs.
- Personal property: If your belongings (electronics, appliances, furniture and clothing) are stolen or damaged, condo insurance will help pay to repair or replace them.
You don’t have to be a California property owner to consider earthquake insurance these days. Twenty-three percent of homeowners nationwide who had homeowners insurance in 2020 said they also had earthquake insurance. Earthquake insurance provides protection from the shaking and cracking that can destroy buildings and personal possessions. Earthquake damage is usually not covered by standard homeowners insurance policies. Earthquake activity is getting more frequent. According to the U.S. government’s National Oceanic and Atmospheric Administration, the overall trend of yearly high-intensity earthquake activity is increasing significantly. Earthquake insurance isn’t required by law, and most mortgage lenders don’t require it either. But if you live in an area that’s historically susceptible to seismic activity, and you want to protect your nest egg (who doesn’t?), earthquake coverage is a smart purchase. Earthquake insurance covers three things: damage to your home, damage to your personal belongings, and additional living expenses if you need to temporarily live somewhere else after an earthquake. But reimbursement for temporary living expenses is different from standard property insurance coverage, right? Yes! Earthquake insurance is the last one (we promise!) that strays from the standard three types of coverage (structural, personal belongings and liability). The dollar amount of earthquake coverage you purchase is entirely dependent on your situation, so get advice from an insurance agent to get the right coverage.
Travel insurance
Trip cancellation insurance, sometimes known as trip interruption insurance or trip delay insurance, reimburses a traveler for prepaid, nonrefundable travel expenses. Providers vary on acceptable cancellation and interruption causes and the amount of reimbursement available. The most common acceptable reasons include illness, a death in the immediate family, sudden business conflicts, and weather-related issues. Trip cancellation is beneficial when paying more upfront than what you’re comfortable losing. For example, if you pay $2,000 for a package tour and the tour’s cancellation policy stipulates that all but $100 is refundable upon cancellation, travel insurance will cover only the non-refundable $100. Also, there is no need to protect a refundable airline ticket.
Baggage and personal effects coverage protects lost, stolen, or damaged belongings during a trip. It may include coverage during travel to and from a destination. Most carriers, such as airlines, reimburse travelers if baggage is lost or destroyed because of their error. However, there may be limitations on the amount of reimbursement. Therefore, baggage and personal effects coverage provide an additional layer of protection. The possibility of baggage and personal belongings being lost, stolen, or damaged is a frequent travel problem. Many travel insurance policies pay for belongings only after you exhaust all other available claims. Your homeowners or renters insurance may extend coverage outside of your domicile, and airlines and cruise lines are responsible for loss and damage to your baggage during transport. Also, credit cards may provide automatic protection for things like delays and baggage or rental car accidents if used for deposits or other trip-related expenses.
- Personal liability: If someone is injured inside your condo, liability coverage will help you pay for related legal and medical expenses.
- Structural protection: If damage is caused to the walls (interior or exterior) of your condo unit by a covered peril, property protection coverage will help you pay for repairs.
- Personal property: If your belongings (electronics, appliances, furniture and clothing) are stolen or damaged, condo insurance will help pay to repair or replace them.
The two primary types of medical travel insurance policies are short-term medical and major medical coverage. Short-term policies cover a traveler from five days to one year, depending on the policy chosen. Major medical coverage is for travelers who are planning to take longer trips ranging from six months to one year or longer. Medical coverage can help with medical expenses, help to locate doctors and healthcare facilities, and even assist in obtaining foreign-language services. As with other policies, coverage will vary by price and provider. Some may cover airlift travel to a medical facility, extended stays in foreign hospitals, and medical evacuation to receive care. The U.S. government urges Americans to consult their medical insurance providers before traveling to determine whether a policy extends its coverage outside the country, as the government does not ensure citizens or pay for medical expenses incurred abroad. For example, medical insurance may cover the insured in the U.S. and Canada, but not in Europe. Also, some health insurance providers may require prior approval for coverage to remain valid. Before purchasing a policy, it is imperative to read the policy provisions to see what exclusions, such as preexisting medical conditions, apply and not assume that the new coverage mirrors that of an existing plan. Emergency medical coverage may be redundant. Most health insurance companies pay “customary and reasonable” hospital costs if you become sick or injured while traveling, but few will pay for a medical evacuation.
Pet insurance
If your pet suffers an unexpected injury, this type of pet insurance can help cover a portion of the treatment costs. The accident-only cover is considered the most basic level of pet insurance, as it only covers treatment for your pet’s injuries. This level of cover also has fewer benefits and lower limits compared to other types of pet insurance. For example, accident-only policies may not offer optional extras and may have a lower annual claim limit. So if your pet often gets itself into trouble and you think you might claim a few times a year, you can consider a pet insurance policy with higher coverage and limits, like accident and illness or comprehensive.
Accident-only pet insurance coverage and benefits will differ between providers, but you can generally expect a policy to include:
- an annual limit you can claim or a percentage of your vet bills back if your pet is injured in an accident. Even if your pet requires expensive surgery for a covered accident, you may be able to claim a portion of the fees back (as outlined in your Product Disclosure Statement [PDS]). Some of the injuries your pet could be covered for include snake bites, fractures, burns, reactions to insect bites, tick paralysis, and cruciate ligament conditions – remember to always check your PDS to know exactly what you are and aren’t covered for;
- choice of your own vet. Most insurers will let you select a vet who you’d prefer to treat your pet;
- ability to insure more than one pet at a time. You can cover all the members of your furry family under one policy! This may even save on your premiums if your provider offers such a discount;
- cover for life. So long as you ensure your pet before they reach the maximum age limit (if applicable) and there are no gaps in coverage, your pet will be covered by the insurance policy for as long as they live. Be wary that the cost of pet insurance can increase as your pet ages; and
- complimentary benefits or optional extras. Depending on the insurer and your policy, these may include emergency boarding for when you’re in a hospital, routine care (e.g. grooming), and overseas travel insurance. Some providers may offer these as inclusions and some as optional extras. Keep in mind that including optional extras in your policy will add to your premium.
Pet insurance for accidents and illnesses can help manage unexpected veterinary bills if your pet becomes ill or contracts a disease. The main benefit of such cover is that some insurers will cover up to 85% of the vet bill. However, not every vet bill is covered. Always remember to check your Product Disclosure Statement (PDS) to find out exactly what you’re covered for. As the name suggests, this policy will cover treatments for accidents and illnesses only. This is crucial because some conditions can be extremely costly to treat without insurance. That being said, conditions ranging from ear infections to cancer can be claimed by an appropriate pet insurance policy – regardless of cost. The best reason we can think of to take out this kind of cover is peace of mind. If our pets fell ill or were injured at the wrong time, and the vet bill was expensive, many of us would be devastated. With this kind of insurance, you may not have to worry about that. You may be entitled to some great benefits when you take out this kind of policy. Depending on which insurance provider you go with, you may receive additional benefits such as emergency kenneling, pet travel insurance, and tick paralysis treatment. Although most insurance providers have these benefits as an optional extra that you can pay for, you might be able to enjoy these benefits at no extra cost!
- Personal liability: If someone is injured inside your condo, liability coverage will help you pay for related legal and medical expenses.
- Structural protection: If damage is caused to the walls (interior or exterior) of your condo unit by a covered peril, property protection coverage will help you pay for repairs.
- Personal property: If your belongings (electronics, appliances, furniture and clothing) are stolen or damaged, condo insurance will help pay to repair or replace them.
Comprehensive pet insurance is the highest level of cover available to protect your furry friend from accidents and illnesses. This type of policy can cover up to 85% of eligible vet bills and is available for pets under eight years old – you may hold it past that age if held continuously. Alternatively, if you decide that a comprehensive policy is not needed, consider a standard (accident & illness) level of cover. There’s no specific answer for this because it varies depending on your pet and insurance provider. That said, comprehensive pet insurance premiums generally cost more than the standard and basic cover. However, they also have higher reimbursement rates, which could result in better value for money over the long term.
Like other types of insurance, comprehensive pet insurance won’t cover all instances, and it’s worth reading the PDS of any policy before making a purchase.
Here are some common exclusions:
- pre-existing conditions
- diseases preventable by vaccination
- pregnancy
- behavioral problems
- banned breeds
