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Getting insured is important. Life can take many twists and turns unexpectedly, and it never hurts to be prepared for the worst case scenario. Thatā€™s why insurance exists after all. Even if things go haywire, thereā€™s always some kind of backup plan to be had if youā€™re insured. But thereā€™s so many kinds of insurance, so where do you even start?

Letā€™s walk through some of the most common types of insurance together and help you get a safety net below you.

Key Terms to Understand Insurance

Insurance can be quite confusing. Many people arenā€™t taught anything and have to learn how insurance works while they are stumbling through selecting their first health or car insurance plan. This can cause a lot of stress, or even result in people selecting an insurance plan that doesnā€™t actually meet their needs.

There are a number of different types of insurance and they all work a little bit differently. But there are a few common things that they all generally include.

  • Premiums
  • Deductibles
  • Copays

Youā€™ll also likely encounter a couple of different insurance types.

  • Health Insurance
  • Car Insurance
  • Renters Insurance
  • Homeownerā€™s Insurance

What are Insurance Premiums, Deductibles, and Copays?

The premium is the monthly fee you pay to your insurance company. The company uses this money to run their business and pay out any claims made against a policy. To ensure that there is sufficient capital, they typically invest in highly liquid assets that they can convert to cash quickly, in case they need to make a large payment, or even a series of large payments. When selecting an insurance plan, your premium influences not only the level of coverage you receive, but also the deductible you will be responsible for.

The deductible is the amount of money you will need to pay out of pocket before your insurance begins to pay for a claim. As previously indicated, the size of your deductible will be determined by the level of coverage you receive and the value of your premium. The lower your premium and the better your coverage, the higher your deductible. This is because lower premiums means you are contributing less to the pool of money to pay for claims and better coverage increases the likelihood that the insurance company will have to pay out for a claim for you.

After youā€™ve met your deductible, your insurance company will generally cover the majority of the costs associated with your claim, and potentially any other claims you make that year. You may still be responsible for a copay however. A copay is a fixed, often small, amount of money that youā€™ll be responsible for as part of the insurance claim, often after your deductible has been met.

Some insurances also have an out-of-pocket maximum. This is the maximum amount of money youā€™ll be required to pay during the length of your insurance policy. Normally, once you reach your out-of-packet maximum, your insurance company will cover any other expenses related to claims for the duration of your policy.

Five Insurance Products That Seem Like a Waste, But Arenā€™t

When it comes to insurance, most people think of it as just another monthly expense. And if insurance is notĀ mandated by their state, they may choose to opt out. However, there are a few insurance products that may seem like an unnecessary monthly expense but are actually pretty beneficial to have. For most people, these insurance products protect the things they use and the people they love.

There are a few common insurance products that most people know about or have, but there are othersā€”just as usefulā€”which arenā€™t as commonly used. Here are five insurance products that everyone should have, which may seem like a waste but arenā€™t.

Common Types of Insurance Products That Arenā€™t a Waste

The Product of Health Insurance

Health insurance is an extremely useful insurance product to have. It can greatly cut down the expensive rising costs of healthcare in the United States. Health insurance can make healthcare somewhat affordable and can prevent a person from going into debt or jeopardizing their health. This is especially true for those who need regular medication/have chronic conditions.

Most health insurance policies will cover everything from prescriptions to hospital stays. For a small amount of Americans, their work place provides health insurance (through a deduction on their paycheck) that may be cheaper than finding a provider on their own. For those who are not provided health insurance through work, there are U.S. government programs such asĀ MedicaidĀ that help residents gain access to health insurance. For a couple hundred dollars a month, a person can save thousands of dollars and maintain their good health.

How to Get Health Insurance

HealthCare.govĀ is the starting point for nailing down a health insurance plan. Once there, youā€™ll get directed to other locations depending on where you live. You could either be sent to the ACA Health Insurance Marketplace if you qualify, or the site will link you to your stateā€™s individual insurance hub. The particulars of the plan will vary location to location, but youā€™ll be able to follow more specific instructions on those sites.

If the site ends up being a bit too complex, thereā€™s other options too. You can:

  • Contact phone services like TTY (855-422-7412) or the Marketplace Call Center (855-422-7412)
  • Find an in-person location for assistance usingĀ this website.
  • Or even mail in an application using an online form.

Thereā€™s plenty of options and opportunities to help you get started on health insurance, so make sure to take advantage of them.

The Product of Homeownerā€™s Insurance/ Renterā€™s Insurance

Most people do not think too much about the safety of the things inside their home, until a natural disaster or theft happens. This is where the product of homeownerā€™s insurance and renterā€™s insurance comes in. For many people who buy a home, homeownerā€™s insurance is a mandatory expense. And even for those who are not required to purchase homeownerā€™s insurance, it is a very beneficial product to have. Same thing goes for those who are renting a place.

Most homeownerā€™s andĀ renterā€™s insuranceĀ will protect against natural disasters, fires, theft, home repairs, and liability from having guests over. Before deciding on coverage, it is important to understand more about the area that the home is in. For example, in a place that gets flooded often, adding flood protection/coverage to the policy would be a smart move. If an area is prone to theft, then it may be wise to get extended theft coverage. Having the right kind of home ownerā€™s/ renterā€™s insurance can be extremely helpful to protect a huge asset in case of an emergency.

How to Get Homeownerā€™s Insurance

With homeownerā€™s insurance, thereā€™s multiple different types to pick and choose from, and not all will be applicable to your home. Picking which one is best for you is an important distinction to make and will help you avoid hassle when dealing with companies later on. Some of these options include:

  • HO-1: A general policy that protects against specific types of accidents and dangers.
  • HO-2: A similar policy, but one that is more extensive and, therefore, more expensive.
  • HO-3: Another similar policy, but instead of listing what types of accidents are covered, it only lists which ones that arenā€™t covered. It can be the most comprehensive, but might be riskier depending on which perils arenā€™t included
  • HO-4: A renterā€™s policy. This protects the specific belongings of the tenants of the home, but not the home itself, which is under the landlordā€™s own policy.

There are plenty more options as well, including some for specific types of homes, like mobile homes or condos. Once youā€™ve figured out which best fits your circumstances, research up on the companies and their offered prices to see who gives you the best deal with the most reliability. Once youā€™re all squared away on that front, get in contact with them and start the negotiation process. Youā€™ll have your home insured in no time.

The Product of Car Insurance

In many states across the U.S., car insurance is mandatory for drivers. However, there are a few states in which the product of car insurance is not mandatory. No matter what state laws say, if you are driving, it is a really good idea to look into car insurance coverage.

Car insurance protects not only the driver, but also everyone else on the road and their vehicles. If an accident happens, car insurance will cover the majority of the costā€”which could add up to thousandsā€”associated with medical bills and car repairs.

How to Get Car Insurance

Each state has a specific minimum amount of coverage needed, which gives you a baseline to work from. This is just a baseline though. Depending on other factors like age, vehicle type, and driving history, your insurance rates will fluctuate all over the place. Nailing down these factors and delivering them to auto insurance companies will help them get a handle on pricing for your insurance so they can give you a quote.

Once you have the quote, donā€™t rush into the company that gives you the lowest cost. Make sure to background check before making your decision, as some companies can end up being honeypots or unreliable resources trying to make a quick buck and disappear. Consumer reviews and financial stability are great things to double check on when looking into an auto insurance company. Once you feel secure though, you should be good to go.

Not So Common Insurance Products That Arenā€™t a Waste

The Product of Life Insurance

This insurance product is not often used by a lot of people unless they are older, but it may be worth looking into for young adults as well. Life insurance acts as security for family members if the insurance policy holder passes away. It can be a life jacket for family, especially if the policy holder was the main bread winner of the household.

For many Americans, life insurance is made available from their work, while others find a private lender. There are many life insurance packages out there to choose from, and lenders will give you plenty of options to help secure the future for loved ones.

How to Get Life Insurance

As is true with most insurance policies, make sure to shop around for different offers and varieties of health insurance. Whether you end up buying from a big name company or an independent agent, make sure youā€™ve compared all the factors involved with both before making your decision.

One of the most important parts of buying life insurance is deciding which kind it is you need. Thereā€™s plenty of varieties of life insurance and knowing which one fits you best is important.

  • Term life insurance ensures you for only a set period of time, usually starting at 10 years and going up from there. These policies start out cheaper, but when renewed after the set time period, can become much more expensive.
  • Permanent life insurance is, as the name implies, life insurance that is guaranteed until you do eventually die. Itā€™s a surefire way to stay insured, but itā€™s generally much more expensive and wonā€™t give nearly as much of a kickback to those you leave behind.
  • Universal Life Insurance is life insurance with a pre-set expiration age. You can set the coverage to expire from anywhere between 90 to 121. Dying before the set age will result in the kickback, and dying after will void it. This option is usually cheaper and pays out well, but is inherently a risk due to its definite ending point.

Once youā€™ve decided on what type of insurance to purchase, youā€™ll need to send in an application to the company of your choice for that insurance. Along with that application, youā€™ll need to get a medical history checkup with your physician and send in the results. Once you get the application results, youā€™ll be all set.

The Product of Disability Insurance

Disability insurance is a product that many Americans do not even know about. Disability insurance provides coverage in case a person has long-term or short-term disability. For those who work high risk jobs or are the primary bread-winner in their home, it is an extremely good idea to look into this type of insurance. It could protect you and members of your home from dealing with a financial crisis.

Additional Products/Benefits Most Insurance Types Offer

Here are a few additional products or benefits that exist in the insurance lending world:

  • Extended Coverage:Ā For additional monthly payments, a person can get the most coverage and protection from any insurance type.
  • Bundling Discounts:Ā The more insurance bought from a lender, usually the cheaper the cost.
  • Adjustment of Deductibles:Ā For most insurance, the more a person raises their deductible the lower the cost of the insurance for the month.

When looking at insurance products, there are five that are definitely not a waste to have. Health insurance, home insurance, car insurance, life insurance, and disability insurance are the most important and beneficial to have and are definitely worth the costs. These five insurance products could protect you, your loved ones, and even strangersā€”they should be a part of every Americanā€™s safety net. No matter what type of insurance is being looked into, there are similarities in coverage and discounts that exist throughout the insurance world.

Weird Insurance Policies That People Get

Getting certain aspects of your life insured is an important thing to do. Most people at some point will pick up car insurance, life insurance, health insurance, or some other type. Getting insured one way or another is a pretty standard procedure.

However, some people will go beyond the typical insurance coverage. Some people have picked up some rather strange, as well as unexpected, forms of insurance to cover other problems that may arise in their life.

Tongue Insurance

Yes, you read that right. Tongue insurance. Why would you possibly take out such a policy? Well, in 2009 Costa Rica Coffeeā€™s head taste tester Gennaro Pelliccia insured his tongue for a whopping $14,000,000. The tongue has about 14,000 taste buds, so that comes out to each taste bud being insured for $1,000.

Multiple Birth Coverage

This type of insurance is a bit more sensible. There is an insurance policy that you can take out to compensate you when you getĀ pregnant with multiple kids at once. That means if you end up having twins, triplets, or more, then you will receive help providing the necessary money to care for the children. Just make sure to get this insurance ahead of time so that if you do get this surprise, you will be prepared for it.

Mustache Insurance

You can actually insure your mustache. Famed cricket player Merv Hughes insured his mustache for $370,000, since he felt that it was a big part of his image.

Butt Insurance

Some people make their living not with what you see up front, but with what is in the back. Famed actress and singer Jennifer Lopez managed to find an insurance company who was willing toĀ insure her rear endĀ for $27,000,000.

Cross-eyed Insurance

Most people want to have regularly focused eyes with 20/20 vision, right? Well apparently, this was not the case for silent film actor Ben Turpin. In his career, he was famed for his cross-eyed appearance. In order to ensure his financial well-being, Turpin took out anĀ insurance policy that would take care of any financial concernsĀ he might have should his eyes, for whatever reason, ever become uncrossed.

Alien Abduction Insurance

Believe it or not, there is also insurance available for you if you have been abducted by visitors from another world. If you should be happening to be minding your own business when a flying saucer comes down and beams you up, there are a few insurance companies that will compensate you for your troubleā€”the first of which was the St. Lawrence Agency, based out of Altamone Springs, Florida. Victims of alien abductions receive $1 per year until they die or until 1 million years have passed, depending on which of these comes first.

Death by Space Object Insurance

In other space related insurance policy news, your loved ones can also be compensated if you have a policy that covers you for getting killed by things that fell from space (satellites, space ship parts, pieces of a space station, etc.). However, in the 61 years it has been since Sputnik launched, no one has ever been killed in such a manner.

Voice Insurance

This type of insurance is a bit more realistic and reasonable. If you are a singer or other kind of performer who makes a living using your voice, then it might be a good idea to cover the asset that makes it all possible. You would not want to be up a creek without a paddle if something were to render your voice unusable. Singers like Bob Dylan, Bruce Springsteen, and Rod Steward have such a policy.

Leg Insurance

For models who use their legs as their moneymaker, there exists leg insurance to cover them financially. The executives at 20thĀ Century Fox in the 1940ā€™s actually had actress Betty Grableā€™s legs insured for $1,000,000 each.

Hand Insurance

Depending on what you use your hands for, you could get an insurance policy to cover them. In 1932, the Cheerio Yo-Yo Company of Canada saw to it to take out a policy worth $150,000 on the hands of Harvey Lowe, a 13-year-old who had won the World Yo-Yo Championship in London. When he won, he toured all over Europe and taught several hundred people (including the Prince of Wales, Edward VIII) how to use a yo-yo.

Insurance Against Death by Laughter

We have talked about a great many strange and unusual forms of insurance so far, but this one takes the cake. There was a comedy troupe that was so confident in their ability to get the entire crowd roaring in uncontrollable laughter that they had the venue, Lloydā€™s of London, take out an insurance policy to make sure everything was covered in the event of someone actually dying of laughter.