This new year we want to start by answering some questions you may have. We have put together a list of Frequently Asked Questions about Home Insurance, Life Insurance, and Health Insurance.
Home Insurance FAQ

What Is Covered Under A Tenant’s Policy?
The tenant’s policy covers you and your possessions while at home. It includes coverage for loss of use if you live elsewhere because you cannot live in a house or apartment until repairs are made. The policy provides liability protection, covering costs arising from a lawsuit for injuring someone or damaging their property. The policy also covers damage caused by several hazards, including wind, hail, and fire.

Is it mandatory to buy a home insurance policy?
In some states, it is mandatory to purchase this insurance, but this may vary from state to state.
What does a Landlord’s Policy Cover?
A landlord’s policy protects the building owner from claims arising from injuries to others on or around the rental property. It also covers repairs to structures, appliances, and furniture that the landlord owns.

What Does A Typical Homeowner’s Policy Include?
A homeowner’s policy typically includes three kinds of provisions:

  • A personal liability provision, which covers the indemnified person when they hurt someone or damage their property
  • A property damage provision, which covers the insured person when their belongings are damaged
  • A dwelling provision, which covers the cost of repairing or replacing your home after damages due to fire, lightning, or vandalism
Is it better to buy a home insurance policy for the total amount of the house’s value?
No, you should consider several factors while deciding on how much coverage to get, such as: How much money you can afford to pay out of your pocket if there is a loss

Life Insurance FAQs

Is it worth it to buy life insurance if I am young?
Many younger people feel that they don’t need to purchase life insurances since their parents are still alive or financially stable enough to take care of them. It can provide you with peace of mind when you’re young, just starting in life whether you have kids or not.

What Is Covered Under A Life Insurance Policy?
It covers the financial needs of your family in case of your unexpected death. The policy typically reimburses the beneficiary when the insured person dies. The amount typically reflects years of earnings or an agreed-upon sum, and coverage may be for a certain period, such as 20 or 30 years.

Is term life insurance better than getting whole life or universal life insurances?
There are several different types of life insurances policies, including term, whole, and universal. Term life is the most basic and lies within the lowest priced category. The whole life is more managed but also costs more money to purchase. Universal life allows you to take control of your policy to be tailored to meet your specific needs.

What Is A Cash Value Life Policy?
The policy has two parts, the first part is the death benefit, which pays your loved ones and reimburses them for losses due to your death. The second part is the cash value, which typically earns dividends. These dividends accrue over time and can be borrowed against, subject to policy conditions.
What if I have a pre-existing medical condition?
You may still be able to get insured with some health conditions before getting coverage, depending on your age and the health issue(s). However, once you enroll in a plan, there will most likely be a waiting period. This ensures that the existing condition does not suddenly worsen and end up costing more money for your provider.

Health Policy FAQs

What Is a Health Policy?
Health policy, also called medical cover, pays for your medical costs if you become sick or injured. Health coverage can help pay for expenses like regular doctor visits, prescriptions, mental health care, and alternative medicine.

What Is A Deductible?
A deductible is the amount of money you must pay from your pocket each year for medical expenses before your health insurer begins covering costs associated with your care. In some cases, as with an HMO or PPO, you may not be required to pay the set deductibles for certain types of visits.

Can I Save Money On My Premiums If I Choose A Higher Deductible?
Yes. Choosing a higher deductible typically means lower monthly payments, which can make paying your bills more manageable. However, you must be prepared to pay more out of your pocket each year if you need medical care.

What Are Copays?
A copay is a set fee for certain services. The services may include a visit to the doctor or prescriptions that you have to pay to your insurance company before coverage kicks in. Copays are typically small, but it’s essential to know how they work, primarily if you need a lot of medical care.

Are there any pre-existing conditions that may prevent me from getting insured?
Most providers will typically not accept people who have severe medical conditions before providing coverage. However, some companies offer short-term medical insurances for individuals who are currently without any health coverage and are looking to get covered quickly.

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