What is the TRUE Cost of Insurance?

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Insurance can be a daunting subject to parse. There are tons of varieties, covering everything from cars and motorcycles, homes, and actual lives. So what’s the catch? With all these different insurance options from different companies running around with all kinds of quotes and prices, what’s the standard for reference? How do you make sure you’re not getting taken for a ride? Thankfully, LoanMart has the answers you’re looking for, and we’re here to help you figure out the true cost you’ll be looking at in the end.

The True Cost of Life Insurance

Life insurance is the first one we’ll cover, as it’s one of the most important types of insurance, but also one that people sometimes skip due to misconceptions about it. Life insurance is often viewed as the most expensive type of insurance, and, why wouldn’t it be? It’s insurance that covers your family in the unfortunate instance of your death. It seems like it’d have to be pretty pricey in order to cover that, right?

Well, that’s actually largely a myth! From studies performed by experts, most people overestimate the cost of life insurance. A whopping 80% of people overestimate it, in fact. When at its most basic, a simple life insurance policy could be as cheap as some of your monthly utility bills, if not cheaper. Many estimates for basic life insurance even place it at a level cheaper than your average phone bill, if you can believe that.

So, if you’ve been skipping out on a life insurance plan because you’re worried you won’t be able to handle it, then you owe it to yourself to give it another look. You might just be surprised when you find out what the true cost really is.

The True Cost of Health Insurance

Health insurance is a bit different from life insurance, mostly because it comes in a number of different “package” varieties. These packages come at different costs, and are better suited for different types of people, so your “true” costs are going to vary depending on your needs. However, they’re often categorized into four types: bronze, silver, gold, and platinum. Each of these offers different benefits and costs, and identifying which one works for you also identifies what your true cost will be in the end.

The four “metal” levels of health insurance are the most common types you’ll run into, so we’ll cover them here to help you figure out which is best for you. Bronze level is the cheapest and most basic, but also results in you paying more when you do need care. As a result, these plans are best reserved for those who need minimal medical care, to keep the true cost nice and low.

Up next is the silver level. These plans are a bit costlier than bronze level plans but come with one particular bonus: cost-sharing reductions. Cost-sharing reductions are a series of discounts that one could potentially qualify for, and they stack throughout the year. They often come with a set out-of-pocket amount that can be paid each year. If you reach that cap, everything afterwards is covered by your silver level plan. It all sounds great, but you’ll need to obtain the higher-payment silver level to utilize these reductions.

Finally, there’s the gold and platinum levels. These levels get access to everything from the lower levels, including the cost-sharing reductions that silver levels get. Gold and platinum cover the most amount of medical care, but also have the highest monthly payment amounts, with platinum covering more than gold. They’re best reserved for those needing a good deal of health care, or those who need very common prescriptions.

So when looking to find the true cost of your health insurance, figure out what metal level you’ll need to be at. Depending on your needs, your true cost will vary.

The True Cost of Auto Insurance

Auto insurance covers the motor vehicles you drive. Unlike some of the other insurance varieties, many states inherently require you to have some type of vehicle insurance in order to drive. So knowing the true cost of auto insurance can be one of the most important costs to find out.

First off, the cost can vary wildly from state to state. Overall, the average auto insurance cost rounds out to approximately $800, but it can get as low as $500 in some states, and as high as $1,100 in others. Secondly, it varies based on coverage type as well.

There are three types of car insurance: liability, comprehensive, and collision. Some states might require only one type, while other states might require all three. Your coverage type influences your cost. Keep these different factors in mind when looking into auto insurance, and you’ll be set.

When trying to discover the true cost of insurance, you need to do your research carefully, and not fall victim to common misconceptions. Look into the specifics of your situation and match it up to the right plans, and you’ll have made great strides towards finding out what your true cost actually is.

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