Look below for answers to your questions regarding these topics:
General Health Insurance | Individual/Family Medical Plans | Group Insurance | Health Savings Accounts | Life Insurance
Disclaimer – These FAQ’s are for general information only and are not intended to be legal or tax advice nor are they intended to supplant any information contained in an insurance company contract.
Health Savings Account-qualified insurance plans generally have lower premiums than co-pay plans and allow you to take advantage of the HSA tax benefits for unreimbursed medical, dental, vision or hearing expenses you could anyway. You can pay the insurance company more in premium for a co-pay plan or pay yourself by putting tax-free funds into an HSA!
You do, if:
- You have a spouse, children or other dependents (an elderly parent, for example) who rely on you for financial support.
- Your death would disrupt someone’s life preventing that person from working or functioning normally for a period of time.
- You want to leave a legacy to your alma mater, a favorite charity, or a political cause.
- You want a safe savings account for your retirement.
- You want a reliable source of funds to borrow or use as you see fit . . . your own “bank.”
- You might do any of the above in the future . . . buy now to guarantee access later in the event of a change in your health.
Term insurance provides for payment of the death benefit only if the person insured should die during the term of the policy. If the insured survives the “term” or period of time covered by the policy, there will be no coverage or the premium will escalate to an unaffordable amount.
- Low premium initially or for a guaranteed period (5, 10, 15 or 20 year term)
- Protection for a specific period of time
- May be renewable and/or convertible
- Premium increases with each new term
The whole-life insurance policy provides for a death benefit for the insured for his or her “whole life.” Premiums are normally paid throughout the life of the insured, although cash values can sometimes be used to offset the premiums.
- Protection until the end of the life of the insured
- Fixed premium, usually for the life of the insured
- Cash value accumulation
- Higher initial premium than term
- Should be purchased with the intention of keeping for life or for a long period of time.
An accident policy only pays a death benefit IF you die in an accident. Since most people die of an illness, even young people, these policies are inexpensive but they don’t really give you the protection you need.
This, of course, is only a summary of what is available. The main issue is, “do you need to protect yourself and your family?” If so, how best to do this?