A Better Way to Manage Your Everyday Money - Book - Page 271
policies that can include paying premiums for a specified period and accruing value that
you can withdraw.
● Disability - A disability policy pays a portion of income, typically up to 60 percent, when
the policyholder is unable to work because of illness or injury.
● Health - Insurance that pays medical bills incurred because of illness or injury. Coverage
for dental, eyecare (vision) expenses, and prescriptions could also be included.
A mix of health, dental, vision, and prescription insurance are offered as a benefit to
employees by some companies and the military services. The U.S. Affordable Care Act
(Obamacare) offers an online enrollment portal for selecting and buying health insurance
for qualifying consumers. The state managed Medicaid health coverage is available to
those who qualify based on income.
After reaching retirement age, you become eligible for Medicare. This federally managed
health care coverage is also available to certain disabled people before retirement age.
● Auto - Coverage that protects you from loss because your vehicle is damaged or stolen.
Also fulfills your legal responsibility to others for injury or damage. You are normally
required to carry insurance on a vehicle that you own and is operated on public roads and
highways.
● Mortgage Insurance - Also known as private mortgage insurance (PMI), this coverage
can be required by mortgage lenders to protect them against the home buyer defaulting on
the loan. This insurance does not protect the homeowner. Instead, PMI protects the lender
should the homeowner fail to make the loan payments.
How to buy insurance
When shopping for insurance, you can deal directly with an insurance company or with an
insurance broker. Dealing directly with the company limits your options to that company’s
products. You do not have the ability to comparison shop for policy features, premiums, and
deductibles. This is okay if you are dealing with a reputable firm that specializes in serving only
one segment of the customer base such as:
● American Association of Retired Persons (AARP) - Seniors aged 55 and over
● United Services Automobile Association (USAA) - Military members, veterans, and their
families
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