Insurance Agents and Brokers Resource Guide

6 Types of Insurance You May Need

Insurance is there to protect your finances from unexpected problems with your health, your car, your home or business. But how do you know what to buy? Read on to learn questions to ask about insurance, and then start your search at the DexKnows insurance listings.

Business insurance

What business insurance is required for your business? The U.S. Small Business Administration suggests that there’s insurance to cover every risk your business may face.

Different types of insurance you may want to consider include:

• General liability insurance, to cover legal issues rising from accidents, injuries and claims of negligence
• Product liability insurance, which covers against financial loss because of a defective product that causes injury
• Professional liability insurance guards against loss from malpractice, errors and negligence in services you offer your customers.
• Commercial property insurance, your protection against the costs of damages resulting from fire, smoke, wind and hail storms, vandalism and other catastrophes
• Home-based business insurance, coverage for home-business losses that your homeowners insurance policy may not cover

Not every business will need each type of insurance. Ask your insurance agent which one is needed for your business.

Health insurance

Most Americans get health insurance through a group health plan offered by an employer. Group plans may be health maintenance organizations (HMO’s) that only pay for care by doctors in the organization, or preferred provider organizations (PPOs) that let you choose your doctor but pay the best benefits for using doctors in the PPO network. If you’re not covered by your employer, you can buy individual insurance policies but should expect to pay a lot more than a group medical plan.

What benefits do I need?

Each person and family is different. They require different health care services. Determining factors include age and any medical conditions that family members may need. Ask what benefits are available, and make sure they match up with your needs.

What will I be paying out of pocket?

Health insurance has its complexities, including deductibles, co-pays and co-insurance. There is often a specific amount that you have to pay before health insurance kicks in and a maximum that you would be required to pay out of pocket. Ask about what your out-of-pocket expenses would be.

Does my doctor accept this insurance?

Not all medical providers accept every insurance carrier. If you have a specific doctor you want to keep using, you should see if your doctor is covered. If not, find out what kind of penalty you will pay for going to an out-of-network doctor.

Life insurance

There are numerous life insurance products on the market. Deciding which one fits takes asking some questions.

How much life insurance do I need?

Factors include not only after-death expenses, including burial and funeral arrangements. There’s also providing aid to your children or spouse, especially if your spouse does not work. Talk to an insurance agent about what your family and financial demands are and how much insurance you will need to match them.

Is your company financially stable and licensed?

Not all insurance companies are licensed to sell life insurance in your state. You also want a company that’s been around awhile and, more importantly, is likely to be here for years to come.

There are basically two types of life insurance:

• Term life insurance is a pure insurance product: You pay premiums for a set number of years and are insured against your death in that term.

• Whole life insurance adds an investment component, and pays off on your death. Part of your premium builds a cash portion of the policy that’s invested by the insurance company. Some variants are universal life and variable life which may pay off at different rates, depending on the success of their investments.

How do I make a claim?

Make sure to get in writing the timeline and procedure to make a claim. Also ask how long it will take the company to pay a claim.

Property insurance

You never know when your house may fall prone to theft or when a natural disaster may happen.Property insurance will help protect you in case of something happening so you have the cash you need to make repairs and replace your belongings.

Keep the following questions in mind while buying property insurance.

Do I have enough coverage?

Factors to remember include how much it would cost to replace your property and your belongings. Not having enough coverage may mean you still end up with losses.

Are there any exclusions?

Read over your policy before signing to make sure there aren’t any exclusions on specific items. If In doubt, ask more questions.

What is my deductible?

The deductible is how much you will end up paying. For instance, if you have a $500 deductible and a loss of $3,000, you would pay $500 then the insurance company would pay the rest. A higher deductible means a lower premium.

What is the coverage on my items?

It is important to make sure enough will be paid on expensive items including jewelry and electronic equipment. If not, you may need to buy more coverage.

What are the limits on liability?

Homeowners insurance helps pay legal bills and damages if someone is injured on your property.

Am I covered in case of a natural disaster?

Often, the answer is no. Such insurance may need to be purchased separately, if available in your area.

How long does it take the insurance company to pay?

Some companies pay claims quicker than others. Make sure to ask ahead of time how long it takes to settle claims and receive compensation.

Vehicle insurance

Carrying vehicle insurance is a legal requirement. It is also a wise choice so your car or truck will be insured and you are covered in case of an accident with another driver.

There are a few things to keep in mind when buying insurance.

How does my vehicle affect how much I will pay?

Having an expensive vehicle can mean high premiums. So can having a small vehicle, such as a subcompact. In contrast, certain safety features, including airbags, can lower your premium. Ask how your vehicle factors in when buying auto insurance.

How do risks including driving and credit record affect my coverage?

Your driving record, including speeding tickets and accidents, play a part when buying vehicle insurance. Your credit rating may also be used to decide what premium you should pay. Shop around to find the best rates for your individual circumstances.

What will my deductibles be?

Higher deductibles, or more money you will have to pay before your insurance covers damages, can mean lower premiums. There may be different deductibles for collision coverage and non-collision coverage such as vandalism. While choosing a policy, make sure to pick a deductible that can fit in your budget if you would have to pay it.

Title insurance

Title insurance gives you peace of mind when buying property. A title insurance company searches public records to make sure the seller truly owns the property that you are about to buy. It protects against the chance of someone coming along later saying they are the owner and, if you are challenged in court, helps pay for your legal expenses and a loss if you suffer one.

Ask a provider what coverage you need. You also want to ask about the underwriter and strive to find a company that has staying power, rather than finding out the underwriter went under.