Types of Personal Insurance

Life Insurance; Health Insurance; Auto Insurance

Personal Insurance

When it comes to protecting your investments (and yourself) insurance is a must. Insurance can also save you a lot of time, money and frustration in the event of a natural accident, accident or a lawsuit of sorts. But, since there are many different kinds of insurance, you may be unaware which ones you should have that pertain to you and your needs and which ones you might be able to get away from having. Because of this, we have created a guide. Below, you will find the main types of personal insurance, their benefits, disadvantages, stats and a few other details that might interest you such as how to get that particular type of insurance. If you want to learn more about the types of insurance out there or you are ready to purchase insurance contact an insurance company in Millburn for assistance. Millburn insurance companies are experienced with all of the various types of insurance out there and will be able to find a plan that fits your needs.

We all Need Insurance

Life Insurance

How It Works: It’s pretty simple. It pays a tax-free lump sum of money to your beneficiaries if you die. It's beneficial to you because it ensures that your loved ones left behind can pay off your debts, including the funeral expenses, and can live a healthy standard while you are gone. This also means that your immediate family won't suffer financially while you aren't there to support them anymore. Life insurance seems like a critical thing right? Sadly, only about 4 in 10 Americans have life insurance. Either because they just don't care, they think it's too expensive, or because they have that whole “it won't happen to me” thing going on. Mainly if you are single, or you don't have a family, you probably won't need Life Insurance. But, if you are worried, have kids, have a life partner or any extended family it might be a good idea to start looking into this type of insurance.

Stats About Life Insurance

The vast majority of life insurance is held by persons aged 45 and older.

2- Across the board, only 3 in 10 Americans feel they have sufficient coverage.

3- The primary reasons life insurance is purchased is for final expenses, income replacement and covering a mortgage, respectively.

4- Nearly 1/3 of Americans feel the loss of the primary earner in the household would be felt within the month. Another 1/3 have no idea.

5- The number one reason people cite not buying life insurance is due to perceived cost.

It's amazing the amount of people that don't have life insurance. Some people however, choose the safe plan rather than the “oh well, maybe later” plan because you never know what life might hand you. You can honestly never be too young to get life insurance. It’s better to have it and be safe, than to be sorry and leave your family behind to foot the bills and debt using their own money and finances. It should also be noted that if you are a high risk person your payments will be much higher than a person that is a plain Jane or plain Joe! Definitely something for you to think about.

Types of Life Insurance
insurance broker

How To Apply For Life Insurance

Once you buy a policy and decide on one you would like, you will be required to fill out an application. The first process is to obtain a medical form and fill it out. This is the only way that the insurance company can determine if you can get life insurance and what the payments will be. The three step process includes; a medical/physical exam, medical history interview, and an underwriting. Below are these three sections you will need to review, what is needed of you when it comes to these sections and a better explanation of what an underwriter will be doing in this situation for your specific case.

Life Insurance Physical

Usually, this physical can be done right in your home. It takes about 30 minutes, and it might include actions such as:

- Height, as well as weight measurements

- Electrocardiogram

- A collection of blood and other specimens

- Blood pressure reading

Medical History Interview

This can be done over the phone, and it usually takes anywhere from 15 to 20 minutes. You will need to verify your identity and then you will have to answer a few questions in each category such as:

- Insurance history

- Hobbies you like

- Family medical history

- Pertinent medical information


Once these two are finished, you can begin the underwriting. Underwriting in this instance is essentially an evaluation of the information above, as well as your overall lifestyle. This will only be done after the previous information has been collected. The whole point to the underwriting is to allow the insurance companies underwriters to establish your eligibility and make sure that you get the best possible rate.

Homeowners Insurance

Your home is most likely, pretty important to you. It’s essentially an invaluable asset and chances are you have ties to it both financially and for sentimental reasons. Because of this, many people choose to invest in homeowners insurance. This is a great way to not only protect the house itself, but your property and your family.

Getting Discounts

In many cases you can actually receive discounts from certain companies if you:

- Have a burglar alarm

- Have a newer or brand new household

- Have not had any claims in the past

- You also use the same company for other types of insurance, for instance automobile insurance.

Obviously discounts or lack thereof are going to depend on the company and what sorts of competitive prices they offer, but as mentioned above, in many cases this is a common technique used by insurance companies to get you to sign up with them for Homeowners Insurance. Make sure that when you are choosing a company to work with that you understand what is covered and what is not covered under the insurance. In some cases you will need to also purchase additional coverage for things like flood, fire, earthquakes, hurricane/tornado damage and more. Most standard plans don’t offer coverage under these other types of damage so it’s better to be safe than sorry! When you have Homeowners insurance it should also cover other structures on your property and if you are unable to live in your home at the time of the incident, your coverage should also provide living expenses for things like staying in a hotel room until the house is safe to live in again,

Homeowners Insurance Inspection

In some cases, you may be required to have an inspector come in and assess the house for risk(s). Inspections can take a few days and then they need to do their paperwork and address any issues with you and the insurance company. Because of this, it’s a good idea to get the insurance set up as soon as possible, rather than to wait. You can even apply for homeowners insurance before you even take ownership of the home, so that’s definitely something to think about!

health insurance

Health Insurance

How It Works: Health insurance will cover a portion of your health care bills NOT covered by your health insurer. This benefits you by offering you and your family affordable health care that you might need. Some stats about health insurance:

1- As of the end of 2014, over seven in ten of the uninsured have at least one full-time worker in their family, and an additional 12% have a part-time worker in the family

2- Individuals below poverty are at the highest risk of being uninsured (the poverty level for a family of three was $19,055 in 2014). In total, over eight in ten of the uninsured are in low- or moderate-income families, meaning they have incomes below 400% of poverty

3- While a plurality (45%) of the uninsured are non-Hispanic Whites, people of color are at higher risk of being uninsured than non-Hispanic Whites. People of color make up 40% of the overall U.S. population but account for over half of the total uninsured population

4- Most of the uninsured (79%) are U.S. citizens, and 21% are non-citizens. Uninsured non-citizens include both lawfully present and undocumented immigrants. Undocumented immigrants and legal immigrants residing in the U.S. for less than five years are ineligible for federally funded health coverage.

ving expenses for things like staying in a hotel room until the house is safe to live in again,

How To Apply For Health Insurance

There are four ways to apply for health coverage. You can:

- Apply Online: Visit the Get Coverage Page, Select Your State and take the next steps

- Apply By Phone: If you call, you will be directed to a customer representative who will help you fill the application out.

- Within-Person Help: You can also find trained people in your community who will help you fill your application out and enroll for coverage.

- By mail: You can also complete your application by snail mail and get results in about two week’s time. This is a really simple option available for people that don't need a lot of hand holding or help and sort of already know what it is they need to do.

If you aren't sure what to do, or need extra help, by all means use the apply by phone option or community help to get you through the entire application process in a step by step manner.

You can also file for Health Insurance by NOT using Obama Care, but it has certain guidelines. For example, only certain states allow this or certain “positions” i.e.; self-employed people can get private healthcare.

car insurance

Auto Insurance

Depending on the type of insurance you get – there are four different kinds; each one has different benefits and options. Here are the four different options available, what they are for, how they benefit you, etc.:

Collision Car Insurance

“A type of auto insurance coverage. Collision Insurance will reimburse the insured for any damage sustained to their personal automobile that is due to the fault of the insured driver. This type of insurance is often added as an extension of a basic policy. “Collision insurance will essentially repay the person that has insurance for damage to the car from the accident. However, this type of insurance does not cover theft or vandalism.

Comprehensive Car Insurance

“A type of automobile insurance that covers damage to your car from causes other than a collision. Comprehensive insurance would cover your vehicle if it were destroyed by a tornado, dented by a run-in with a deer, spray painted by a vandal, damaged by a break-in or crushed by a collapsing garage, among other causes.” A good example of how this all works is this: If you have a Honda Civic and its total worth is $10,000, you have a $1000 deductible, and your car is destroyed by a natural disaster like a hurricane, you would then receive $9,000 from your insurance company. Pretty simple.

Liability Car Insurance

“Financial protection for a driver who, while operating a vehicle, harms someone else or their property. Automobile liability insurance only covers injuries or damages to third parties and their property, not to the driver or the driver’s property. The two components of automobile liability insurance are bodily injury liability and property damage liability. Automobile liability insurance does not have a deductible.”

Personal Injury Insurance

“A feature of automobile insurance that covers the health care expenses associated with treating injuries sustained in a car accident. With personal injury protection, the policyholder, and his/her passengers, if any, who are hurt in an auto accident will have their medical expenses covered even if they don’t have health insurance. If the cost of necessary medical care exceeds the automobile policy’s personal injury protection limits, health insurance may cover the further expense.” It should be noted that PIP is available in certain states, mainly where there are no-fault states. No-fault states are states in where you can have an accident and can be injured, and your insurance coverage will pay for your injuries, whether it was your fault or not.

Hopefully this information will help you to better understand the different types of insurance personal) available so that you can better choose which ones to apply for.