Unlock the world of insurance with our ‘Understanding Insurance Terminology: A Comprehensive Guide’. Tailored for potential insurance buyers, this guide simplifies complex terms, helping you make informed decisions. Get ready to become fluent in insurance language, empowering you to choose the best coverage for your needs.
Coverage
The amount of money covered and provided to the insured under an insurance plan.
Premium
The amount paid by an insured for starting an insurance policy
Deductible
The amount to be paid by the insured before an insurance claim comes to action.
Policy
A contract between an insurer and the insured that contains the terms of an insurance claim.
Liability
Refers to the responsibilities held by a party towards another. It can be a third-party liability, product liability etc.
Risk management
It is the process of identifying, assessing, and mitigating risks associated with an insurance policy.
Claims
The request to the insurance provider to reimburse against the insured losses.
Underwriting
The process of identifying and calculating the worth of risk against which insurance is provided.
Insurer
The party that provides the insurance service. Ex: insurance company
Indemnity
An action wherein a party agrees to compensate the potential or prior losses of another party.
Protection
It refers to the financial risks the insurance covers
Reimbursement
The amount that is returned or refunded to the insured
Actuary
It is a professional with expertise in calculating financial risks associated with the product to be insured.
Riders
These are add-ons that can be enjoyed in addition to your insurance policy by paying extra.
Co-pay
The percentage of the insured amount the insured pays from their own pocket.
Comprehensive
An insurance policy that covers damages you cause on your own and by a third party.
Collision
The protection provided under car insurance when your car collides with an inanimate object.
Benefits
They refer to all the advantages an insurance policy covers.
Exclusions
They refer to the benefits an insurance policy does not cover.
Risk assessment
A process of calculating the worth of the asset against which insurance is taken in accordance with the risk associated with it.
Life insurance is an essential piece of coverage for RGV families, but it is also one of the most misunderstood or overlooked types of insurance. If you do not yet have a life insurance policy, or if you have one but want to learn more about your policy, and whether a different one might serve you and your family better, then this guide is for you. What follows is an in-depth look at life insurance, its significance for families in the Rio Grande Valley, and the factors you should consider when choosing a policy for yourself.
Understanding Life Insurance
Simply put, life insurance serves as an agreement between you and your insurance provider that a benefit specified by the policy will be paid to designated loved ones upon your passing.
This benefit provides financial support to the recipients that helps to offset the burdens imposed by your death. As a result, it helps to alleviate financial stress at the time of death and frees up loved ones to enjoy a more secure future.
For families in the RGV, and throughout the nation, these policies make the tumultuous time after a loved one’s passing a little easier to navigate. Here are some of the most important benefits:
Financial Security
At the time of death, families often face large expenses for which they may not be prepared. For example, funeral expenses, medical bills, outstanding debt, estate planning fees, and lost work time can all create financial stress.
Life insurance can help by providing the funds to manage these immediate costs. With financial stability provided by life insurance, families can focus on putting their loved one to rest and moving forward with their lives.
Income Replacement
Many families rely on the income of a primary earner. If that individual dies, the loss of that income can significantly change the family’s financial stability and way of life. Life insurance policies can provide enough of a benefit to cover not only the immediate costs associated with laying their loved one to rest, but also to cover the lost earnings of the deceased individuals. As a result, their family can maintain their standard of living, pay bills uninterrupted and worry less about their financial futures.
Education
A life insurance policy can also help to secure the future education of families’ children. The benefits payout can help to cover educational essentials such as tuition, vocational training, and other needs. As a result, regardless of what happens to the holder of the policy, their family’s future goals and dreams can still flourish.
Debt Repayment
If an individual passes away and leaves debts outstanding, a life insurance policy can be used to pay off these debts. Examples of payments that can be covered by this type of policy include mortgages, car loans, credit card balances and more. By paying off debt, the family can achieve greater financial stability and peace of mind.
Types of Life Insurance
One of the areas that often confuses individuals about life insurance in the Rio Grande Valley is the availability of several different types of policies. The three most common are whole life insurance, universal life insurance, and term life insurance. Following is a look at all four types to help you better understand the differences, and unique benefits, of each.
Whole Life Insurance
Whole life insurance is the most common type of permanent life insurance, meaning that it covers you throughout your lifetime. Once you activate your policy, you will receive a death benefit and savings account as long as you pay your premiums.
Universal Life Insurance
Universal life insurance is a more flexible type of permanent coverage that also offers you a death benefit and a savings account. It differs from whole life insurance in that you may be able to adjust your death benefit by passing a medical exam, and you may also be able to use your savings account to adjust your premiums.
Term Life Insurance
As opposed to whole and universal life insurance policies, which provide you with benefits no matter how long you live, term life insurance is limited to a certain number of years. The most common “terms” of this kind of coverage are 10, 20, and 30 years. You can often choose to have a death benefit that remains the same throughout the term of the policy, increases over the term of the policy, or decreases over the term of the policy.
Factors To Consider When Buying Life Insurance
With many options available, even within each type of life insurance coverage, knowing which policy is best for you and your family can quickly get confusing. A good rule of thumb is to purchase coverage that is 10 times your annual income. However, there are also several important factors to consider that can influence your choice of life insurance coverage. Here are some of the biggest:
Family Makeup
While life insurance can benefit almost anyone, there are certain situations that may require higher insurance policies. Here are some of the family types who should evaluate their needs with particular care:
Families With Dependents
Families who include children or the elderly should make sure that they have enough coverage to meet their dependents’ ongoing needs in the event of policy holder’s passing. These dependents rely upon the provider’s income to meet their needs, and going without could be devastating.
Couples
Individuals who have a spouse or a partner may also wish to prioritize life insurance. The death benefit from this policy can help their partner maintain their quality of life, pay for expenses, and adjust to reduced income with less stress.
Single-Parent Families
In single-parent families, the financial burden usually falls to one person. As the sole provider, this individual must have a large enough life insurance policy to protect their family in the event of their passing.
Current Financial Obligations
The amount of life insurance you purchase should take your current financial obligations into consideration. In particular, you should get enough insurance to meet these obligations and to pay off any debt you currently have. Here are some of the things to consider when selecting the amount you purchase through your policy:
Mortgage or rent
Personal loans
Credit card debt
Business loans
Future Educational and Life Goals
For families with children in particular, life insurance that is sufficient to cover future educational and living needs is essential. Here are some of the future factors that may influence how much coverage you purchase:
Anticipated college expenses
Childcare expenses
Extracurricular activity costs
Future plans for their children, including home buying, business start ups, and more.
In order to obtain the right amount of coverage for your family, you should sit down with an experienced insurance professional who can help you look at your needs and find coverage to match.
How To Choose The Right Life Insurance Policy
The process of purchasing life insurance in the Rio Grande Valley does not have to be difficult. However, there are some important steps to follow to ensure that the policy you purchase is the one that you need. Here are some of our suggestions for narrowing down your options to the most promising:
Decide how much coverage you require
Take a look at your current situation to determine exactly how much coverage you will need. Factors to consider include the following:
Your current expenses
Your current debt
Your current income
How many years you have to retirement
Future needs, such as college tuition and healthcare
Decide how much you can afford
Without an infinite budget, you will need to make some choices about how much you are willing to put toward premiums every month. Make sure that the amount you allocate leaves you room in your budget to live comfortably.
Obtain and compare RGV life insurance quotes
Once you know how much you can budget toward life insurance, you can obtain and compare quotes for various policies. Here are some guidelines for successfully evaluating multiple estimates:
Make sure quoted policies meet your insurance needs.
Make sure each quote is comparable – with the same features and benefits.
Compare different premium structures and plans to determine the best one for you.
Get at least 3 quotes.
Get professional assistance in collecting and evaluating quotes.
Evaluate your need for additional features
At its most basic, a life insurance policy provides a death benefit to your beneficiaries when you pass away. However, you may be able to add riders to your policy in order to add flexibility and benefits to your policy. For example, a child and spouse rider would provide for a small death benefit to be paid out if your spouse or child were to die while the policy was active. Here are some additional riders you may want to consider:
Accelerated Death Benefit Rider:
You may access some of your death benefit upon diagnosis of a terminal illness.
Waiver of Premium Rider:
Allows you to waive your premiums if you become disabled.
Conversion Option:
Allows you to convert your term life insurance policy to a permanent one without a medical exam.
Work with an experienced insurance agency
When choosing a life insurance policy in the Rio Grande Valley, you want to work with an experienced insurance agency that is familiar with the area, and the needs, of the Valley. Safeguard Insurance Agency offers solutions that fit your unique lifestyle. Let us help you find the insurance policy you need, not just for life insurance, but for everything you want to protect.
With its location along the U.S./Mexico border, and with just 11 miles between downtown McAllen and the Mexican border, the RGV is home to many individuals who cross the border on a regular basis. While driving between the two countries may be relatively easy, as long as you have the right paperwork, insuring your vehicle for these crossings can be a little more complex. Make sure you have the right car insurance for South Texas with this guide to commuting across borders.
You must purchase separate policies for Mexico and the U.S.
The first thing to understand about cross-border car insurance is that your U.S. policy will NOT apply in Mexico. Even if you buy a policy that promises limited coverage internationally, chances are that coverage will not meet Mexico’s minimum liability insurance requirements.
When driving from Mexico to the United States, the same holds true: Your Mexican car insurance policy will not apply to your vehicle once you enter the United States. If you regularly travel between the two countries, you will need to purchase separate policies for each country in order to protect yourself against any incidents that occur in either nation.
Stay compliant with Mexico’s car insurance policies
Whether you are a tourist taking a day trip or an employee engaging in a daily commute, anytime you drive over the U.S./Mexico border, you must comply with Mexico’s insurance requirements.
The nation has a very strict requirement that all drivers in the country have a minimum of third party liability insurance. In general, you will need to hold at least $300,000 in third party liability insurance to help pay for damages and/or injuries you cause in an accident in Mexico.
Your car insurance in South Texas should always meet Mexico’s minimum third party liability insurance requirements if you plan to take your vehicle over the border. However, you may want to purchase a policy that offers coverage beyond the bare minimum.
For example, just as you do in the United States, you may wish to add collision coverage, comprehensive coverage, and personal injury protection. Here is a brief look at the benefits each of these coverage’s provide:
Collision Insurance
Coverage for damage caused to your vehicle in an accident.
Comprehensive Insurance
Coverage for damage not caused by an accident, including theft, vandalism, natural disaster damage and more.
Personal Injury Protection
Also known as PIP, this coverage is for medical expenses and lost wages for you and/or your passengers incurred due to an accident.
Choose a policy based on your time in the country
While purchasing a Mexico-specific policy for your vehicle insurance is required anytime you cross the border, the good news is that you have lots of options for the type of policy you buy.
For example, tourists who are only spending a short amount of time in Mexico can buy a temporary policy for a specific amount of time, such as for a week or for a month. You may also only need third party liability insurance for short stays.
If you commute regularly across the border, or spend significant periods of time in Mexico, however, you may want a more permanent policy. You may also want to purchase extended policies that include coverage such as collision, comprehensive or personal injury protection.
Work with an insurance agent to customize your policy in the RGV and McAllen
When purchasing South Texas car insurance, you want to avoid cookie cutter or pre-packaged policies, particularly if you plan to commute across the border to Mexico. There are many factors that can affect the types of policies you choose and the rates you pay. As a result, you should make sure your policy takes into account your specific situation and needs. Here are some of the factors that can influence the policy you choose and the rates you pay:
Age of your vehicle (e.g. Older vehicles may not need or even be able to get anything beyond a basic third party liability policy)
Time spent in Mexico
Your age (The younger you are, the more expensive your policy may be)
Your destination within Mexico
Your driving record
The make, model and year of your car
Whether or not you are towing anything
If you are planning to drive over the border into Mexico, it would be wise to consult with an experienced insurance agent who can work with you to get a specialized policy that will protect you in Mexico. Our SafeGuard Insurance Agency staff are always ready to help you find coverage that fits with your needs and your budget. Contact us anytime you need a quote or guidance on the right car insurance to buy, in the United States or in Mexico. We are here to help.
Home insurance is a valuable way to protect your home and belongings. The best policies are those that take your unique home and circumstances into account. If you live in the Rio Grande Valley, or in a town that borders Mexico, your circumstances make certain considerations important when purchasing your insurance. Here are some of our top tips for finding home insurance in the Rio Grande Valley.
Add flood insurance
Flooding is one of the most important risks to consider in the RGV and in towns along the Mexican border. Unfortunately, most standard homeowners policies do not cover flood damage. If your home lies within an established flood zone, or has a history of flooding, you may want to purchase an additional flood insurance policy.
These policies are available through the Federal Emergency Management Agency (FEMA)’s National Flood Insurance Program (NFIP). You can also find coverage through your insurance agent.
Add windstorm coverage to your policy
The RGV’s windy climate is also well-known, and poses a potential hazard to your home. Hurricanes and windstorms can quickly damage your property and cost you thousands of dollars to repair if you are not appropriately insured.
Before you commit to a policy, check to see if it covers windstorm damage. If it does not, you may want to consider buying another policy or asking your agent if you can add wind damage protection to your existing policy. Specifically covering this type of damage can prevent costly and stressful repairs in case your home suffers from the area’s high winds.
Buy based on your home’s replacement value
Homes throughout the RGV can vary widely in their value, from the inexpensive homes in the colonias to massive luxury estates in gated communities. In order to purchase a policy that protects your specific residence, purchase a policy based on the replacement value of your home.
The replacement value refers to how much money it would take to completely rebuild your home to its previous size and quality. This value is different from how much your home is worth (It could be more or less). By buying enough coverage to rebuild your space in the event of a complete loss, you have the peace of mind that you can recover from any disaster. Plus, you can more easily find a policy that covers your needs without exceeding your budget.
Purchase coverage for your personal property
Many of the cities in the RGV carry a higher risk of theft than the national average. In order to recoup any losses should your home be burgled, you should ensure that your RGV home insurance policy includes coverage for the estimated value of your belongings.
As with your home, make sure this insurance covers the replacement value of your things. In addition, consider additional policies or policy riders to protect precious items such as artwork, heirlooms, electronics, and jewelry.
Include liability coverage in your policy
Your responsibility as a homeowner is to make sure that your property is safe for any guests that enter your home or land. If someone is injured on your property (e.g., Slip and fall, dog bite), you will be responsible for covering their medical bills.
You can protect yourself from serious financial distress due to a guest experiencing an injury on your property by adding liability coverage to your homeowner’s insurance policy for your border town home. This coverage will protect you against the financial ramifications if someone is injured on your property and will help you pay for bills such as medical expenses.
Maintain an updated policy
Certain changes to your life can impact your home insurance policy. For example, if you add onto your home, your insurance policy will likely go up in order to keep up with the increased value of your space. If you get an expensive piece of jewelry, you may need to add it to your policy. If you adopt certain breeds of dogs, you may see your rates go up.
In order to make sure that you have comprehensive coverage for your home, it is important to keep your policy updated. Inform your agent of any updates or changes to your life, particularly major additions or subtractions from your family, your property, and your belongings. Even getting married can influence your rates, so keep your agent apprised as soon as possible so you never end up without coverage you need.
At SafeGuard Insurance Agency, we are happy to support your quest for a home insurance policy in the RGV. Our dedicated agents work with you to identify your needs and locate policies that fit your life and your budget. Trust us to guide you toward the options that achieve the value, and the cost, that you desire for your home.
If you get into an accident with your vehicle, you will want auto insurance to help protect you from financial loss. That means planning ahead and purchasing a policy before you drive your vehicle. While purchasing this type of policy is something almost every driver will do at some point in their lives, it is also a process prone to errors. Here are 5 of the most common auto insurance mistakes we see, and how you can avoid these problems by changing the way you purchase vehicle coverage.
Purchasing State Coverage Minimums
Texas requires drivers to have a minimum amount of liability coverage, primarily to protect others in the event you cause an accident. These minimums are as follows:
$30,000 per person for injuries
$60,000 injury protection total per accident
$25,000 for property damage
These coverage limits are restricted to liability coverage and are very low. A single accident could easily cost you more than $30,000 in injury expenses, for example, meaning that you would have to pay whatever damages occurred above and beyond what your insurance covers.
In addition, in many cases, restricting your insurance to liability coverage alone could leave you vulnerable to financial loss. For example, if your car is damaged, you may want collision insurance to cover the repair or replacement costs, and if your vehicle is damaged by hail, you may want the protection offered by a comprehensive policy.
Buying the minimum amount of insurance required by the state where you reside, therefore, could cost you thousands of dollars in the event of an accident, theft, or other event. Exploring options beyond these limits can provide more complete protection.
Omitting Information On Your Application
In order to provide you with accurate rates, insurance companies will require you to fill out an application. This document will request details such as the drivers who should be on your policy, the make and model of your car, how your car is used, and other data that will determine the rate you are offered.
In order to get a lower rate, some drivers omit certain pieces of information from their applications. Most commonly, they will leave off teen drivers, or fail to mention the business use of their vehicles.
Incomplete applications may lead to lower rates, but they can cost you money in the long run. For example, if you allow your teen to drive your vehicle and they get into an accident, your insurance may not cover the damages.
The best approach is to be open and honest on your application. Providing complete and accurate information can help insurance companies give you accurate quotes – And ensure that you get the protection you need.
Only Getting One Quote
The premiums available for the coverage you need can vary from company to company. That is why you should never settle for just one auto insurance quote. Comparing insurance companies by getting multiple quotes allows you to identify the best value for your insurance needs, and find premiums that best fit your financial situation. SafeGuard Insurance Agency will also provide you with 3-4 quotes for your auto insurance policy, allowing you to select coverage that gets you the coverage you need at the best possible price.
Failing to Look for Policy Discount
Many consumers forget, or do not know, to ask about discounts on their premiums. As one of the most common auto insurance mistakes, this one can also be costly by causing consumers to pay more than necessary for their policy.
There are many discounts available to drivers. Many consumers qualify for one or more of these discounts. Here are some of the most common reasons you may be able to save money on your insurance rates:
Bundling your auto insurance with home or life insurance
Insuring multiple cars
Having a AAA membership
Being a good student
Owning a car with certain safety features
Paying your insurance premium in full
Driving under a certain number of miles per year
Being a safe driver
And more
The best way to determine which discounts might apply to you is to ask your insurance agent. They can often find savings that can drive your premiums down and save you significant amounts of money over time, without compromising on your coverage.
Not Using an Independent Insurance Agency
Another of the most common auto insurance mistakes we see customers making is failing to use an independent insurance agency, like SafeGuard Insurance Agency, to buy their coverage.
Pursuing coverage through captive insurance agents (Who only provide policies from one insurance company) can force you to do quite a bit of your own legwork to compare quotes, and you may struggle to get a wide enough range of quotes to really see what your insurance options are.
In addition, captive insurance agents are not motivated to find you the best rates and coverages for your needs. Instead, they are driven by a desire to sell their insurance company’s policies. As a result, you may end up with the wrong coverage, more coverage than you need, and higher premiums.
An independent insurance agency, on the other hand, has the freedom and the ability to pursue quotes from many companies. As a result, they work for you, the customer, and are able to customize a plan to your individual needs. The result is a wide selection of quotes, more comprehensive coverage, and premiums that fit your budget.
If you are looking to purchase auto insurance in the RGV, contact us for a free quote. We are happy to work with you to find policies that match your requirements and satisfy your budget.
Property damage or loss of belongings can be a financially devastating event for homeowners. That is why home insurance is a necessity for individuals who wish to be protected in the event of a disaster. In order to get adequate protection, there are certain common mistakes that you should try to avoid. Here are 10 of the most frequent purchasing errors we see clients make – And suggestions for avoiding them.
Choosing a Policy Based on Price
The cost of home insurance in the RGV is a frequent concern for customers – And rightly so. Affordable policies are essential in making this type of protection available for homeowners. However, one of the biggest mistakes customers make is choosing their policy based solely on which one offers them the lowest price. Selecting the cheapest policy can present a number of problems, including the following:
Ending up with an insurer who is difficult to work with
Getting inadequate coverage
Dealing with a dishonest insurer
The best way to avoid this problem is to deal with an independent insurance company who can work with you to get reasonably-priced policies that also meet your coverage needs. Reputable, highly-regarded companies that put your insurance needs first can help you balance your budget and coverage in a satisfactory way.
Selecting Inadequate Coverage
As with most insurance policies, the less coverage you purchase, the lower your premium will be. As a result, many customers only purchase the coverage required by their mortgage company.
However, while you may save money by buying less coverage, you may end up paying much more in the event of a disaster. For example, say your home is worth $350,000 but you only owe your mortgage company $150,000.
Your mortgage company may only require you to purchase home insurance coverage equal to $150,000 to cover your outstanding balance. However, say a disaster results in a total loss of $200,000. You will be left paying $50,000 out of your own pocket.
You can prevent this problem by working with your insurance agent to get coverage that will protect you in the event of even a total loss.
Misunderstanding Actual Cash Value vs. Replacement Costs
When buying home insurance in McAllen, you will choose between actual cash value and replacement costs for your policy. One mistake some customers make is to choose actual cash value rather than replacement costs.
Actual cash value means that you will receive reimbursement that matches the value of your belongings when you file the claim. This approach means you may not receive enough compensation to cover the cost of replacing items whose purchase price is more than their actual cash value.
In order to avoid this problem, you may want to purchase a policy that provides you with the replacement costs of your belongings. This means that you will receive financial protection that allows you to rebuild your home or replace your possessions without spending as much of your own money out of pocket.
Misunderstanding Deductibles
Home insurance rarely includes a single, flat-rate deductible. Instead, you may need to pay different deductibles for different disasters. For example, you may pay a different deductible for replacing your roof after a storm than you do for rebuilding part of your home after a tree falls on it. In order to be prepared for these expenses, make sure you understand your policy’s terms and rates. Your insurance agent can help walk you through your policy to ensure that you understand what you will owe in the event of any disaster.
Failing to Understand Exclusions
One of the most common home insurance mistakes we see customers make is assuming that every disaster is covered by their policy. While this type of policy covers many incidents that can affect your home and belongings, there are often certain exclusions that you should be aware of. Here are some of the situations that are typically not covered by home insurance:
Floods
Earthquakes
Poor Maintenance
Certain items such as jewelry
You should talk to your agent before purchasing a policy to understand the limits of your policy and what will and will not be covered.
Failing to Bundle Policies
Home insurance is rarely the only policy customers purchase. Insurance for vehicles, pets, medical expenses, and more are often part of the policies that they buy in order to protect every area of their life.
One common home insurance mistake that consumers make is to buy these policies separately, often from different insurers. The result is that they end up paying more than if they had bundled their policies with a single insurer.
When purchasing home insurance in the RGV, ask about discounts for bundling policies. You can often enjoy discounts that make all of your policies more affordable.
Neglecting to Update Home Insurance Coverage
Changes are inevitable over time, but sometimes, customers fail to recognize how those changes may impact their home insurance coverage. There are certain life events or changes that you should consider discussing with your insurance agent. Here are some of them:
Renovating or adding onto your home
Additions to the family
Addition or loss of a pet
Expensive purchases
Addition of security features
Starting a business
Thinking Home Insurance Will Cover Their Renters’ Property
Home insurance is intended to cover the policy holder’s belongings and property, and the belongings of those who live with them. What it will not cover is the belongings of renters. In this case, it is best for tenants to purchase their own renters’ insurance to protect their personal possessions.
Failing to Get Multiple Quotes
The first quote you receive on home insurance does not always reflect that policy that will best serve your needs. You may end up with a quote that is too high, coverage that is inadequate, or an insurance company that is not responsive to your needs.
Instead of relying on a single quote, shop around to find several quotes for the coverage you need. Or, use an independent insurance agency like SafeGuard who can help you find, and understand, multiple quotes. Once you have several quotes in hand, you can make a more informed decision regarding the policy that will best work for your needs.
Failing to Complete a Home Inventory
You do not have to inventory your home in order to purchase home insurance. However, not doing so could be a mistake. If you underestimate how much your home and belongings are worth, you may find yourself under insured if disaster strikes.
Instead, take the time to determine the real value of your home. Make a list of your belongings and research their value. You can focus primarily on the items that have value, such as furniture, electronics, clothing, and jewelry.
This list will not only help you get the right amount of coverage, but it will also help you to get the right reimbursement if a covered event ever occurs.
Home insurance mistakes can be expensive. Finding an insurance agent, such as SafeGuard Insurance Agency, to help you through the buying process, can save you money. Let us assist you in getting home insurance that meets your needs, at a price that fits your budget. Contact us today for a free quote.
Health insurance can save you many thousands of dollars on everything from preventative care to emergency surgery and hospital stays. While this type of insurance can save money in the long term, paying the monthly or annual premiums is understandably a major concern for most families, especially if they are purchasing health insurance on their own rather than through an employer. Here is a look at what you can expect to spend on family health insurance, and the factors that can influence the total cost of your premiums.
Average Costs for Family Health Insurance
One of the first things to understand about family health insurance is that premiums, the monthly fees you pay for your healthcare coverage, can vary widely. However, these varying costs can be distilled into averages that may be helpful in your financial planning. Here are some of the most recent average costs for family healthcare:
Couple
$954
Couple with 1 child:
$1,230 per year
Couple with 2 children:
$1,506 per year
Couple with three children:
$1,782 per year
These averages are based on couples who are about 40 years of age who have children between the ages of 0 and 14. If you want a more accurate idea of the family health insurance cost for your family, consider these additional factors that can influence your premiums.
Factors Affecting the Cost of Family Health Insurance
Deductibles, Out-of-Pocket Limits, and Copays
In addition to your monthly premiums, you will be responsible for fees associated with each medical visit or procedure you undergo. How much your health insurance costs can depend upon how high these other fees are. Here is a look at each:
Deductible
The deductible is the amount of money you must pay for covered medical expenses before your health insurance coverage begins. For example, say your family has a deductible of $1,500. You would need to pay $1,500 in medical expenses before your health insurance would begin covering your costs.
Co-pays
Once your deductible is met, you may still owe a small fee for certain medical visits or procedures. For example, you may owe $30 for each visit to your primary care physician. Your health insurance will cover the remainder of the fees for these visits.
Out-of-Pocket Expenses
Out-of-pocket (OOP) expenses are the total healthcare costs you can be required to pay in a single year. All of your deductibles and copays count toward your OOP expenses. For example, if your family health insurance plan caps OOP expenses at $7,000, your health insurance will cover all of your healthcare expenses, including all of your copays, after you spend $7,000 on healthcare for the year.
In general, the higher your deductibles, copays, and out-of-pocket expenses are, the lower your premium will be. For example, plans with low or zero deductibles will cost much more per month than plans with high deductibles (Defined as plans in which the deductible is at least $2,800 for the family).
Balancing these costs will be an important part of your decision-making process when choosing family health insurance. Some families who are generally healthy and rarely require medical care for injury or illness may benefit from paying low premiums for a high-deductible healthcare plan.
However, families who have one or more members who face healthcare issues that require frequent medical appointments may save money by paying more for monthly premiums in order to have a lower deductible.
Age
Age can also play a role in your family health insurance premiums. In general, the older the individuals covered by the plan are, the higher the premiums. For example, a couple in their 20s with children may pay less for their health insurance than a couple in their 60s. Annual premiums may also increase once children are at least 15 years of age. The exact costs of health insurance, then, will depend in part upon the age of each of your covered family members.
Type of Health Insurance
Not every family health insurance plan is the same. There are several types of health insurance plan, and premiums will vary from type to type. Here is a look at some of the most common types of health insurance.
HMO
Health maintenance organization (HMO) plans only allow you access to a specific network of providers. If you receive medical care outside this network, your expenses may not be covered. In addition, HMOs often require you to receive a referral for specialist visits. Their premiums tend to be low.
EPO
An exclusive provider organization plan (EPO) also limits your choice of providers to a specific network. However, you may not always need a referral to a specialist. Their premiums are usually slightly higher than those associated with HMO plans.
PPO
Preferred provider organization (PPO) plans offer more choice in the provider you see. While you receive the most coverage for using in-network providers, you can still receive some coverage when you go out of network. You often do not need a referral to see a specialist. These plans often have higher premiums than HMO and EPO plans.
Health Insurance Tier
Another major factor in the cost of your family healthcare plan is the tier you choose. Many health insurance policies allow you to choose certain levels of coverage. Each level comes with its own premiums you must pay. The higher the tier you choose, the higher the premium, but the more benefits you receive with the plan. The most common tiers are bronze, silver, gold, and platinum, with bronze being the basic (and inexpensive) plan and platinum being the most benefit-rich (and most costly) plan.
If navigating the ins and outs of family health insurance feels overwhelming, contact SafeGuard Insurance Agency today. Our experienced agents will work with you to help you find the quotes and the policies that fit your family. Protect your health and your family’s health with insurance that works for your needs, and your budget!
Are you looking for the best home insurance in McAllen, RGV? If so, you can’t blindly trust any insurance provider. Your home is your haven, and you shouldn’t settle for any average insurance plan. That’s why it’s important to discuss the details of your policy with your home insurance agent to get a clear idea about what is covered and what’s not. If you’re unfamiliar with the policies and don’t know what to discuss with your agent, then here are 7 important home insurance questions RGV you should ask for a better understanding.
Ask these 7 home insurance questions in McAllen
What is a standard policy, and what does it cover?
A standard policy is the most basic type of home insurance, so it makes sense that this is the first thing you need to know about. Most insurance providers cover four things in the standard policy:
Dwelling coverage: It’s obvious that the physical structure of your home will be covered by the insurance plan.
Property coverage: All your belongings inside the house are also covered by the insurance.
Liability coverage: If someone sustains injuries inside your home, liability coverage pays for the cost of their medical treatment on your behalf, as well as any legal charges if a lawsuit is filed against you by the injured party.
Additional living expenses: If damage to your property forces you to find temporary accommodation like a hotel, then the standard policy will cover the extra cost of living in such conditions under Additional Living Expenses (ALE).
While coverage for your property and belongings are fairly straightforward, liability coverage and additional living expenses usually have some terms and limits. So focus on these two home insurance questions McAllen when asking your insurance agent.
How much additional living expenses coverage will I get?
Under the standard policy, most insurers cover additional living expenses worth 20% of your dwelling coverage. But this figure may not always be the same with every insurance provider. Furthermore, there are options to increase the ALE limit if you feel it’s necessary. So have your agent explain clearly the amount of ALE coverage you will receive and how you can increase the limit if required.
How much liability coverage will I get?
Similar to ALE coverage, a limit on liability coverage is included with a standard home insurance policy. The starting amount for liability coverage is usually $100,000, with the option to increase it by paying a higher premium. Discuss the details of liability coverage properly with your agent to determine the appropriate limit and be aware of all terms and conditions.
Will my homeowner’s insurance cover damage due to floods and natural disasters?
The standard policy doesn’t cover damage caused to your property due to floods and natural disasters. If you’re residing in an area where such calamities are common, or there is a high risk, you might want to include flood and disaster coverage in your insurance policy. In such cases, it’s best to discuss additional policies for natural calamities with your agent, how much coverage you can get for it, and how much premium it will cost you.
Does my policy cover replacement cost or actual cash value?
One of the most important things to know about home insurance is the difference between replacement cost and actual cash value.
Replacement cost is the total cost of replacing or repairing your property without taking depreciation into account, whereas actual cash value is calculated by deducting depreciation from replacement cost. Your premium will also be cheaper if you opt for actual cash value because the coverage will be less than the replacement cost.
Many homeowners often get confused about the difference between these two, so you must ask your insurance agent about it and figure out which option is more beneficial for you.
How much will my policy cost, and how is the premium and coverage calculated?
More than anything else, homeowners usually have two things in mind when insuring their property:
How much coverage will I get?
How much premium do I have to pay?
So it goes without saying that these are important questions to ask your insurance agent. Don’t just ask about how much, but also inquire how the rates are calculated to ensure you get your money’s worth with the insurance policy.
Do I need an umbrella policy?
Standard home insurance offers some amount of liability coverage. But if you’re in a situation where your liability coverage has been exhausted, and you still need to bear additional costs, then an umbrella policy can help. It is simply an additional coverage that kicks in after you have used up your available liability coverage. If your current insurance plan doesn’t offer adequate liability coverage, you might also want to ask your agent about the umbrella policy.
When insuring your home, never settle for less and always look for the best and most reliable insurance company. Asking your agent these 7 important home insurance questions will give you a better idea of the different terms and policies. And that, in turn, will help you decide if the insurance company is trustworthy and which policy will be the best option for your home.
Whether you own a large fleet or work as an owner-operator, complete intrastate cargo deliveries or cross-border hauls, obtaining the appropriate trucking insurance in the RGV is an essential step in protecting your fleet and yourself against incidents of all kinds. Unfamiliar with trucking insurance? Just getting started in the trucking world? Here is a beginner-friendly guide to trucking insurance 101. It will introduce you to the basics of finding, and using, insurance for your fleet.
Trucking Insurance: An Overview
Before you look for trucking insurance, you need to understand what it is, and why it is important for your trucking operation. Commercial trucking insurance is a type of financial protection, like auto insurance, that protects you from the financial impacts of accidents and other incidents outside your control.
Just as auto insurance allows you to choose from multiple coverage options to get the right policy for your needs, trucking insurance comes in many forms that you can tailor to your fleet’s requirements. An experienced insurance agent, like those here at SafeGuard Insurance Agency, can help you navigate your many choices to help you find the policies that best fit your requirements and budget.
Trucking Insurance Legal Requirements
The Federal Motor Carrier Safety Administration (FMCSA) and state laws require fleet owners and owner-operators to carry certain types of commercial trucking insurance. In particular, most truck owners must carry primary liability and general liability coverage in order to pay for property damage and physical injuries for which you or your drivers are at fault.
Over and above these legal requirements, however, trucking insurance can offer protection that can save your business from bankruptcy or financial stress in the event of an accident or other incident. As a result, you may benefit from coverages that go beyond the requirements of the law, such as bobtail coverage, motortruck cargo insurance, and uninsured or under insured motorist coverage.
If you need to know more about which coverages are required by law for your operation, and which coverages, or amounts, will best protect your business, trucks, and drivers, consulting with an experienced insurance agent can give you the insight you need.
Trucking Insurance vs. Auto Insurance
While trucking insurance may feel unfamiliar to you, the reality is that this form of insurance is similar in many ways to auto insurance. From offering similar coverages (e.g., Property damage, physical damage, etc.), to a similar claims process (Contacting your insurance company and submitting a claim after a qualifying incident), trucking insurance works much the same as auto insurance.
However, trucking insurance does differ in one important way: It is tailored to your needs as a trucking fleet manager or owner-operator. That means that the levels of coverage differ from auto insurance, and that there are additional coverages available that you cannot find with auto insurance. As a result, your auto insurance will not protect your fleet. Instead, you should invest in appropriate, specialized commercial trucking insurance from a reputable company.
Types of Trucking Insurance
There are many types of trucking insurance from which you can choose when building a policy for your business. What follows is a look at some of the most common coverages, but remember that your insurance agent may be able to direct you to additional policy types that may work for your business.
Commercial Auto Liability Coverage
Also known as primary liability coverage, this type of truck insurance is one of the two types required by the FMCSA. This policy protects you against property damage or physical injury caused by your business-owned vehicles. This type of policy may also help pay for legal expenses if you are sued as the result of an accident.
Trucker’s General Liability Coverage
General liability insurance for truckers covers expenses that occur from incidents apart from accidents on the road. This type of coverage will protect you anytime an incident occurs while your truck is off the road. Examples may include while loading or unloading the truck, on a client’s property, and other occurrences.
Physical Damage Coverage
Physical damage coverage protects your fleet against damage caused by accidents or other events. Covered events may include natural disasters, vandalism, and theft. Physical damage insurance can encompass several types of policies from which you can choose based on your needs.
Motortruck Cargo Coverage
This type of coverage may protect you if the cargo you are transporting is lost, stolen, or damaged while in your care.
Occupational-Accident Coverage
Occupational accident insurance provides protection for your truckers and other employees if they are injured while on the job.
Cross-Border Coverage
The complexity of carrying cargo across borders means that you may benefit from cross-border insurance. This type of coverage protects your fleet while they are traveling over borders.
Non-Trucking Liability Coverage
Non-trucking liability coverage protects you against incidents that occur while the truck is not being operated as part of a job. For example, if you are driving your truck back after unloading cargo or using the car for personal means and get into an accident, this type of coverage would apply.
How to Choose Appropriate Trucking Insurance Coverages
The right trucking insurance for your needs will depend upon several factors. That is why the best way to determine the appropriate coverage for your operation is to discuss your situations with an insurance agency like SafeGuard. We work with you to help you find coverages that fit your circumstances. Some factors that may influence the types and amounts of coverage you require are the following;
Your fleet size
The types of cargo you haul
The distance your trucks travel
State and federal requirements
Whether you travel across borders
And more
Many factors can influence not just the types of coverages you choose, but also the premiums you pay. To get appropriate coverage for your needs, you need the guidance of an experienced insurance agent. SafeGuard Insurance Agency is here. We offer fast, efficient, 24/7 service to help you more promptly find and get the trucking insurance in McAllen that will protect your trucks.
