Welcome, readers! This is Abri News, where you’ll find helpful policy information to assist you in finding the best coverage for your needs. We cover a variety of topics here, including insurance plans, types of coverage, claim adjustments, conditions and clauses. Our agency aims to pair individuals with the best insurance package for their specific needs, which is why we carry every type of insurance you can imagine. From homeowners’ insurance to workers’ compensation to pet insurance—we have you covered! It’s our job to shop around, compare rates, and set you up with the level of coverage you need to feel safe and secure. Our clients enjoy our one-on-one approach and attention to detail. For testimonials, information about our services, or to request a quote, take a look around our website!
The last article featured on Abri News focused on deducting health insurance premiums from our annual taxes. For many, premiums make up a major share of their monthly expenses. With national health costs rising, more and more people are struggling to reach the necessary level of coverage. We discussed why health insurance premiums might be on the rise and who might be eligible to deduct a portion of their yearly medical expenses come tax time. Read our last article to find out who’s eligible to deduct their medical expenses entirely! Of course, we want everyone to maintain the level of coverage necessary for their physical and financial well-being, which is why we took the time to make you aware of this potential deduction.
There are more types of insurance than you would think. Anything of value can be insured, in fact. With countless insurance policies floating around and a near-constant barrage of advertisements, it’s difficult to know which are truly necessary. While car insurance is mandated by state laws and workers’ compensation is similarly dictated by certain states, how do you determine which other types of insurance you should be personally investing in? Determining the necessary amount of coverage is a different art altogether and one we cover more in our article, ‘How to Judge “Good” Coverage From “Bad” Coverage: Beyond the Quote.’ But reconciling which types of insurance are worth stretching our monthly budget can be just as tricky. In today’s article, we’re breaking down the necessity of certain insurance types, including why they’re important to have and how they keep people protected. If you’re currently only investing in the bare minimum insurance types mandated by law, here’s a case for exploring further options!
Health Insurance
The coronavirus pandemic revealed a major gap in healthcare coverage in America. When the pandemic hit, nearly 30 million Americans were uninsured and 40 million were underinsured. The underinsured portion of our population are those who have coverage but must spend over 10% of their annual income out-of-pocket or their deductible constitutes over 5% of their household income. Since many individuals were insured through employer-sponsored insurance and the pandemic resulted in massive layoffs, many lost their coverage at the exact time they needed its security. Being underinsured or uninsured when it comes to health insurance can be detrimental. High healthcare costs, when compiled, can put individuals in a long-term debt situation. Around 67% of individuals who are dealing with medical debt said the person in their household whose illness or injury incurred the debt was uninsured at the time. Medical debt, when unpaid, can lead to liens and negative impacts on one’s credit score. When paid, one-quarter of people report being unable to then pay for basic necessities, such as food, heat, and rent. Medical debt can eradicate savings, as well. According to a study done by the American Journal of Public Health in 2019, most families are only on illness away from bankruptcy.
The high deductibles of certain private healthcare plans can leave people uncertain of whether to seek medical care even when they are insured. This can lead to worsened health, unfulfilled prescriptions, and untreated illnesses. Healthcare coverage is a major necessity. While monthly premiums can be steep, there are options available for almost every income bracket. Additionally, there are certain tax credits available for those who meet eligibility standards. If your employer does not offer a health insurance program, there’s a chance your trade organization or association might. The government-run healthcare marketplace offers many plans. Agencies, such as Abri, are trained and dedicated to finding you the best plan for your income level and coverage needs. Health insurance is not a type of insurance you can comfortably opt out of, which is why finding the right plan is of the utmost importance.
Life Insurance
Life insurance is often a priority for those who are the sole provider of their family and older individuals. According to a study done by the Life Insurance and Market Research Association (LIMRA) in 2018, ⅓ of families would be unable to pay for their day-to-day expenses in the event of their primary breadwinner’s death after one month. Life insurance acts as a safeguard for many individuals who worry about how their families will pay bills, afford child care, pay for college, and finance their funeral. For those with these concerns, life insurance is clearly a major necessity. However, those who are young and do not anticipate their demise coming anytime soon are loath to consider adding life insurance premiums onto their list of monthly expenses.
The determination for whether someone should invest in life insurance is this: Will anyone be financially impacted upon my death? If so, life insurance is one of the only ways to mitigate this risk. This doesn’t just include people who are financially dependent upon your income. If you harbor significant debt which will not be resolved upon your death but instead be passed onto your next of kin, life insurance can help them resolve the issue. You can make co-signers, co-joiners, or those tasked with handling your estate the beneficiary of the policy. Likewise, if you own a business which would struggle to continue in the event of your death, a life insurance policy can bolster this business.
While life insurance isn’t a major necessity for the young and healthy, obtaining a policy at this age can be quite inexpensive. Once you lock in a price, this premium is unlikely to change. There are two different kinds of life insurance: term and whole. Term life insurance, as the name suggests, covers a portion of your life (i.e. five, ten, thirty years), while whole life insurance provides coverage until you die.
Long-Term Disability Coverage
Long-term disability coverage is similar to workers’ compensation, as both types of coverage are based on the possibility of reaching a point where you are physically or mentally unable to work. While workers’ compensation covers work-related injuries and ailments which prevent further working, long-term disability coverage covers nearly ninety-five percent of accidents and illnesses which are not work-related. In the event you are incapacitated and unable to earn an income, a disability policy can cover the daily expenses you’re no longer able to afford. While many employers offer this type of coverage and this is likely the least expensive option for obtaining coverage, not all employers do.
Similar to life insurance, if those close to you depend upon your income, a disability policy can insure they’re taken care of if you cannot work anymore. However, even if you live alone, you’ll still have expenses which need to be taken care of. For this reason, long-term disability coverage is a moderate necessity. Its costs aren’t steep, averaging about 1% to 3% of your annual income. Keep in mind, though, most policies only cover a short-time period. If you’ll need coverage beyond three years, you may have to pay a bit more.
Renters’ Insurance
While homeowners’ insurance is strictly necessary, is renters’ insurance? Also referred to as tenants’ insurance, renters’ insurance protects renters’ personal property and provides some liability coverage. Many young people do not own homes and spend a majority of their income on monthly rent. In the event a dwelling becomes uninhabitable, a theft occurs, or the renter damages the property, renters’ insurance can cover the cost. The wonderful part about renters’ insurance is it’s much less expensive than homeowners’ insurance. If you rent a medium to large-sized property, renters’ insurance is a necessity.
Our job here at Abri is to put together a package of the insurance policies you need. Nothing more, nothing less. By assessing your lifestyle and other life factors, we’re able to find the best rates for the most essential coverages. If you need help finding the right insurance policy for your needs, reach out to us! Everyone here at Abri Insurance is eager to assist you in your search for the best coverage. Come back here to read the latest news and discover more about how to make the insurance industry work for you! Thanks for reading! Until next time!