The discussion about insurance coverage has been a touchy subject for many people for quite some time. Many would prefer that the topic never came up. Whether it is personal life or health insurance, or coverage on property, insurance can be complicated. It does not make comprehension easy for the lay person. everything seems to be in technical terms that the average person can not relate to. When it comes to purchasing life insurance, many people do not understand the difference between whole life and term life. It is usually not until a death occurs that families find out that the deceased was not fully covered, or that they would not get the full benefit amount of the policy. It can be the same with property insurance. Vehicle insurance has so many aspects to it that are not discovered until after an accident happens. Either the beneficiary, or policy holder, had full coverage, comprehensive, or they just had liability. It is at this crucial time that they realize that someone’s vehicle will not get repaired. Insurance of all types has some drawbacks that policy holders do not understand, or is misinterpreted.
One type of insurance in particular is unmistakably confusing for a demographic group that should be given more consideration. The elderly are forced to have Medicare health insurance whether they want it or not. There are hundreds of different advantage plans, and they each promise everything that an elderly person would need to ensure full coverage medical insurance. These plans are advertised to be simple, and definitely affordable. The Medicare payment deducted by Social Security takes care of all payments, so the Medical advantage Plans have a zero premium. This is one positive for the elderly. They do not have to pay a double premium. The disadvantage to these plans is the copay that the elderly must pay. Most seniors are on fixed incomes that barely keep them above water from month to month. Having to pay each time they visit the doctor can be costly, and many do not see their doctor as needed because of this. The mounting costs of medical attention can be devastating for the elderly who are covered by Medicare Insurance.
Another disadvantage to Medicare Insurance is the referral process. With most Medicare plans, in order to see a specialist, a referral is required from the primary care physician. After the referral is sent, it is discovered that the insurance plan requires a number along with the referral that should have been obtained from them. Everyone is not aware of this. In the cases of urgency, this can set the process further back. Many older adults give up because of what appears to them as unnecessary requirements. The largest insurance provider in the United States makes it difficult on the people who should have easier access to doctors without all of the red tape. Many of the specialists within the insurance network are generally far away from the individual needing the service. Although transportation is provided to and from medical appointments by some insurance advantage plans, they only offer a specified number of trips. The older adult with serious, and chronic, health conditions can find that after a while they can not make it to their appointments because of lack of transportation if they have no other sources.
Insurance has become a reality that controls many aspects of a person’s life. They can n ot drive if not insured. They can not protect their home and property if not insured. Their families will have the burden of paying medical and funeral expenses if not insured. Not having adequate insurance will leave an individual feeling uncomfortable, and unsafe. It is vital in the world of today. Many people do not like to discuss insurance because of, as stated earlier, the lack of understanding. The best thing to do in this situation is to talk with an insurance agent that will take the time to explain the coverage. If it is still confusing, talk to another one before purchasing. There are fast talking insurance agents who just want to make the sell, and there are some who genuinely want to make sure that the consumer knows what they are getting. Life insurance coverage is essential for everyone. It eliminates out of pocket expenses for survivors, and gives a certain peace of mind while the individual is still living.
When it comes to property, or homeowners, insurance, knowing what is covered and what is not is highly important. Some people get the insurance on everything in the home only to find out later that items like big screen televisions and expensive stereo equipment are not covered. Some homeowner insurance will not cover flood damage, but may cover hail damage. Do not just take out a homeowner policy without having an itemized list of what it covers. In the case of house fires, the house may be covered but not the contents. Some people work from home, and have home offices inside the home. This would require a separate insurance from the homeowner policy for which office equipment is generally excluded. If clients are seen at the home office, a liability insurance is needed.
Sometimes, homeowners will need to check into an umbrella policy that would cover visitors who may get injured on the outside of the home. There are a myriad of the different types of insurance that one individual may need. Insurance is costly, and many consumers can not afford to get the coverage that they need, so they get enough just to get by, and in some instances, stay within the law. Auto insurance is a necessity, and is most expensive because of the liability portion which covers bodily injury and property protection. Many people offset the high cost of auto insurance by having a high deductible. This is the amount that the individual pays out of pocket before the coverage will be paid.
Insurance is indeed a confusing and complicated part of life, but is is necessary, and mandatory to a point. No matter how a person tries to get around it, there is no alternative. It is something that every individual will need sometimes during their life. Like food, it is something that no one can do without. The key to staying within a budget is to talk with a professional who can give all of the information needed to understand the pros and cons of a type of insurance, but get the best coverage for the money.