Life Insurance
Provides financial support to beneficiaries upon the policyholder’s death.
Types
Term Life Insurance: Coverage for a specific period (e.g., 10, 20, 30 years). Lower premiums, no cash value.
Whole Life Insurance: Permanent coverage with fixed premiums and cash value accumulation.
Universal Life Insurance: Flexible premiums and death benefits, with a cash value component.
Variable Life Insurance: Permanent coverage with investment options for the cash value, subject to market risk.
Health Insurance
Covers medical expenses such as doctor visits, hospital stays, surgeries, and prescription drugs.
Types
Individual Health Insurance: Purchased by individuals, not through an employer.
Family Health Insurance: Covers multiple members of a family.
Short-Term Health Insurance: Temporary coverage for transitional periods.
Catastrophic Health Insurance: Low premiums with high deductibles, for emergency coverage.
Medicare/Medicaid: Government programs for the elderly, disabled, and low-income individuals.
Dental Insurance
Covers expenses related to dental care, such as cleanings, fillings, crowns, and sometimes orthodontics.
Types
Preventive Care: Covers routine cleanings, exams, and X-rays.
Basic Procedures: Covers fillings, extractions, and other basic dental work.
Major Procedures: Covers crowns, bridges, dentures, and sometimes orthodontics.
Dental Health Maintenance Organization (DHMO): Provides lower costs with a network of dentists.
Preferred Provider Organization (PPO): Offers flexibility to visit any dentist but at higher costs.
Vision Insurance
Covers expenses related to eye care, including exams, glasses, and contact lenses.
Types
Vision Care Plans: Covers routine eye exams, prescription lenses, and frames.
Discount Vision Plans: Offers discounts on eye care services and products.
Vision Health Maintenance Organization (VHMO): Provides lower costs with a network of eye care providers.
Preferred Provider Organization (PPO): Offers flexibility to visit any eye care provider but at higher costs.
Disability Insurance
Provides income replacement if the policyholder becomes unable to work due to illness or injury.
Types
Short-Term Disability Insurance: Covers a portion of income for a short period (usually 3-6 months).
Long-Term Disability Insurance: Provides income replacement for an extended period, often until retirement age or recovery.
Long-Term Care Insurance
Covers costs of long-term care services, such as in-home care, assisted living, or nursing home care, which are not typically covered by regular health insurance.
Key Features
Benefit Period: Length of time benefits are paid (e.g., 2, 5 years, or lifetime).
Elimination Period: Waiting period before benefits begin.
Daily/Monthly Benefit: Amount paid out each day/month for care.
Homeowners Insurance
Protects against financial loss from damage to the home, personal property, and liability for accidents that occur on the property.
Types
HO-1 to HO-8 Policies: Different levels of coverage, from basic (HO-1) to comprehensive (HO-5), and specialized forms (HO-6 for condos, HO-8 for older homes).
Standard Coverage: Dwelling, personal property, liability, and additional living expenses.
Additional Coverage: Flood, earthquake, and other perils not covered by standard policies.
Auto Insurance
Provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could arise from incidents in a vehicle.
Types
Liability Coverage: Pays for damage to others’ property and injuries to others.
Collision Coverage: Pays for damage to the policyholder’s vehicle from a collision.
Comprehensive Coverage: Covers non-collision-related damage (e.g., theft, fire, vandalism).
Personal Injury Protection (PIP): Covers medical expenses and lost wages for the policyholder and passengers.
Uninsured/Underinsured Motorist Coverage: Protects against damages caused by drivers with insufficient or no insurance.