Health Insurance

Health insurance covers the situation in which you need medical care or medication for any reason. Your employer will generally provide this coverage as an employment benefit. However, there will be a deductible (an amount you must pay before the insurance covers any costs).

Some health insurance policies provide for a split of costs between you and the insurance company after the deductible has been satisfied (generally an 80/20 split up to $10K with the insurance covering the 80% and you covering the 20%; after $10K the insurance company covers all costs 100%.).

For any health policy, you should know the policy limit. If the policy is too low – for example, $50K – you may want to purchase supplemental health insurance to cover costs greater than $50K, possibly up to $1000K.

Automobile Insurance

By law you must have auto insurance. An auto insurance policy covers bodily injury (injury and death) caused by an accident and pays medical and funeral expenses as well as lost wages, property, collision if your car is damaged, and uninsured motorists (if the other party who is at fault has no insurance or is uninsured).

The older the car, the lower the collision amount you need. Insurance rates for your children will be much higher than for you. Most parents reduce thee costs of the children’s insurance by naming them the third driver on a car.