National Insurance Awareness Day

Insurance is one of those things we forget about until we need it, kind of like a spare tire. This is why National Insurance Awareness Day exists and is celebrated every year on June 28. While the origin of this day is a mystery, what’s widely known is how important insurance is in many aspects of our lives. From car insurance to life insurance to home insurance and more, these policies offer a layer of protection to guard us against feeling the harshest of blows by unfortunate events.

What is National Insurance Awareness Day?

June 28 has been designated as National Insurance Awareness Day.? Although the origin of this observance day is unknown, it is observed annually on this day to serve as a reminder for individuals, families, and businesses to review their insurance policies and take steps to prevent being underinsured.

For example:

The American Property Casualty Insurance Association (APCIA) used the occasion to remind homeowners to review and update their insurance coverage to account for high inflation and increased building costs. A recent APCIA/Harris Poll survey found that a majority of insured homeowners have not taken important steps to ensure their insurance coverage is keeping pace with rising inflation and increased building costs, which could leave policyholders underinsured if catastrophe strikes.

History of National Insurance Awareness Day

Insurance, as we think of it in the modern age, came into existence sometime around the Great Fire of London, where the devastation that took place brought about the idea of property insurance. While insurance had up to this point been considered some kind of convenience, it was now clear to the inhabitants of London that insurance was something that could protect a family fortune, and indeed an entire estate, in the event of a disaster.

From there sprang all the forms of insurance we know today, including underwriting ventures in the event of failure (common in the age of sailing ships and questionable seas), to car insurance and life insurance. National Insurance Awareness Day celebrates the history and necessity of this fantastic invention and encourages people to understand the important role it can play in their lives.

While insurance doesn’t cover everything, it does ease the cost burden should a disaster strike. Other policies to review include your automobile and life insurance policies. Annual enrollments for health insurance take place at various times of the year. Making sure you know when your enrollment period begins and ends gives you an opportunity to make needed changes. It also serves as a reminder to use up any Flexible Savings Account funds before you lose them.

Why National Insurance Awareness Day is Important

1. Financial Security: Insurance acts as a safety net, providing financial support during unexpected events, such as accidents, natural disasters, or medical emergencies. Celebrating this day brings awareness to the significance of insurance in safeguarding our financial future.
2. Risk Mitigation: Insurance helps mitigate risks by transferring the potential burden of loss to an insurance provider. By celebrating National Insurance Awareness Day, we promote risk awareness and encourage individuals to assess their insurance needs to mitigate potential risks effectively.
3. Peace of Mind: Knowing that you are adequately covered by insurance brings peace of mind. Celebrating this day reinforces the importance of securing insurance coverage to protect yourself, your loved ones, and your assets.

Why is insurance worth it?

Insurance offers security, covering loved ones, and recovering losses in the event of damage, illness, or death. It offers protection, but over time the value of our homes and the items in them may appreciate or change. What was once worth $100,000.00 a decade ago may be worth much more today. Be sure your policies keep up with the values.

Insurance can provide security and protection at the moment we need it most, but many of us don't think about our policy until that moment strikes. By proclaiming June 28 as National Insurance Awareness Day, we hope to raise awareness for all of us on the importance of being properly insured.

As life changes, insurance needs change as well. The value of items and properties may appreciate over time, family structures and employment may change, and the once-suitable insurance policy may not offer the protection you need today. Reviewing your insurance policy is an important step to make sure you are not over- or under-insured.

The pandemic may have sparked concerns about your life insurance and how best to protect yourself and your loved ones. Such uncertain times offer an important reminder to explore your insurance needs or review the coverage you have to keep you and your family secure.

Life is full of surprises. While some are exhilarating, others are devastating emotionally and financially, like a car accident or a kitchen fire. That’s why there are many types of insurance to help after unexpected disasters.

To help you sort through your options, here are the main types of insurance policies.

Types of Insurance

• Auto
• Property
• Health
• Disability
• Life
• Long Term Care
• Business

Auto Insurance

Motor insurances are forms of insurance that provide financial help in the event that your automobile is involved in a crash. Driving without auto insurance is against the law in almost every state. Not only is it illegal to drive without coverage, but it could significantly cost you if you get in an accident, especially if you’re at fault.

Fortunately, several types of car insurance can pay for vehicle damage and injuries after an accident:

• Liability coverage. This type of car insurance pays for property damage and injuries you cause to others if you’re at fault for an accident. Liability car insurance also pays for your legal defense and judgments or settlements if you’re sued because of a car accident. States (except New Hampshire and Virginia) require a minimum level of liability insurance to drive legally.
• Uninsured/underinsured motorist (UM) coverage. If an uninsured or underinsured driver strikes your vehicle, this coverage pays for you and your passengers’ medical expenses. Uninsured motorist coverage can also pay for lost wages and compensate for pain and suffering. Some states require UM coverage. And in some states, UM coverage can also cover your car damage from the uninsured/underinsured driver.
• Personal injury protection (PIP). Regardless of who was responsible for an accident, PIP insurance can cover injuries to you and your passengers. This coverage may also reimburse you for lost wages, rehabilitation costs and services like child care you can longer perform after being injured. Many states require PIP, but it’s optional in others, and in some states, it’s not available.
• Medical payment coverage. MedPay coverage helps pay for medical expenses for you and your passengers if you’re injured in an accident, regardless of fault. Coverage amounts are typically low, usually between $1,000 and $5,000.
• Comprehensive and collision coverage. These coverage types work together to pay for damage to your vehicle. Collision insurance pays to repair or replace your car after an accident, no matter whose fault it was. Comprehensive insurance covers theft and damage to your car due to floods, hail, fire, vandalism, falling objects, and animal strikes. Collision and comprehensive coverage are often sold together and are optional. However, if you finance your car, your lender will require you to buy it. The same goes for car leases.

Property Insurance

Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.

Home insurance, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence.

Unlike auto insurance, no state law stipulates that you must have homeowners coverage. However, if you financed your home, your lender will usually require coverage to protect their interest in your property. This way, if your home is damaged or destroyed, you have funds to rebuild and won’t walk away from your mortgage.

Even if you don’t have a mortgage and paid for your home outright, you’re responsible for repairs or replacement costs if something damages or destroys your home and you don’t have home insurance. It’s wise to buy a home insurance policy.

Home insurance policies wrap up several types of coverage, including:

• Dwelling coverage. From your roof to your floors, dwelling coverage protects the structure of your house from unexpected events like fire, wind, theft or vandalism. This type of coverage also pays to repair or replace structures attached to your property, such as a garage or deck. Your dwelling coverage amount should equal the cost of rebuilding your house.
• Personal property coverage. This type of coverage protects your personal belongings, such as furniture, appliances, and clothing. Problems covered include theft, fire, and explosions. Coverage for personal property is usually set at an amount between 50% and 70% of your dwelling coverage. You can usually buy more coverage if you need more.
• Other structures on the property. Structures on your property like a tool shed or fence are covered under this type of coverage.
• Liability coverage. Liability insurance pays for injuries or property damage you accidentally cause to others. Additionally, liability home insurance covers your attorney fees if someone sues you. So, if a visitor falls on your front steps, liability coverage can pay for their medical bills and your lawyer fees. The amount of your liability insurance should equal your net worth or what could be taken from you in a lawsuit.
• Additional living expenses. If you are temporarily displaced from your home because it’s been damaged by a problem covered by your policy, additional living expenses coverage pays extra costs such as for meals and lodging.

Remember that a standard home insurance policy doesn’t cover damage from floods or earthquakes, but separate insurance is available for these problems.

Renters Insurance

If you don’t own a home, that doesn’t mean you don’t need insurance. Renters insurance helps you replace your belongings such as electronics, furniture, and clothing if they’re stolen or damaged. Problems covered include fire, tornadoes, explosions and more.

Without coverage, you would be responsible for replacing all of your stuff if your rental goes up in flames. While your landlord’s insurance will cover damages to the structure of a rental, it doesn’t cover tenant property. In some cases, landlords will require proof of coverage to rent a unit.

Renter's insurance includes:

• Personal property coverage. This coverage reimburses you if your stuff (furniture, clothing, dishes, etc.) is stolen or damaged by an issue like a fire.
• Liability coverage. If you’re liable for someone else’s injuries or property damages, this coverage can pay for the cost involved. For example, if someone falls in your apartment due to your negligence, liability insurance can pay for their medical bills.
• Additional living expenses coverage. If your rental is damaged or destroyed by a problem covered by the policy, making it uninhabitable, this coverage will pay for your extra costs while you can’t live at home.

Umbrella Insurance

Auto, home, and renters insurance come with liability coverage that protects you and your family’s assets from lawsuits brought against you. But every policy has liability limits. If you have substantial assets, your homeowners, renters or auto liability insurance may not be sufficient if you lose an expensive lawsuit.

Umbrella insurance can provide additional liability insurance if the unexpected happens and you’re liable. An?umbrella policy adds an extra layer of protection for you and your assets when you need coverage that goes above and beyond your homeowners or auto insurance.

For example, Let’s say you end up at fault for a multiple-vehicle accident (that’s no fun). Your medical bills and property damages could quickly add up to more than your auto insurance will even cover. And if you’re sued for the difference, your savings, your home, and even your future wages could be on the chopping block.

Health Insurance

Health insurance or medical insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among many individuals.

Health insurance is a form of insurance policy that covers the costs of medical treatment. Health insurance policies either cover or repay the cost of treatment for any included disease or injury. Various forms of health insurance cover a wide range of medical bills.

It typically provides defense against :

• Inpatient care
• Critical illness treatment
• post-hospitalization medical bills
• Procedures for day-care

A few types of health insurance policies also cover resident care and pre-hospitalization costs. The following are some of the several types of health insurance policies available in India :

1) Individual Health Insurance

Provides coverage to a single person.

2) Family Floater Insurance

This type of insurance allows your complete family to be covered under one policy, which often includes the husband, wife, and two children.

3) Critical Illness Coverage

A sort of health insurance that covers a variety of life-threatening illnesses such as stroke, heart attack, renal failure, cancer, and other comparable conditions. When a policyholder is diagnosed with a serious illness, they get a lump sum payment.

4) Senior Citizen Health Insurance:

These insurance policies are designed for people over the age of 60.

5) Group Health Insurance

This is a type of insurance that a business provides to its employees.

Typically, you can buy health insurance only during open enrollment periods specified by the health insurance companies selling them. Open enrollment for marketplace plans is usually from Nov. 1 to Dec. 15, though some states extend the deadline.

Exceptions to the open enrollment period are allowed under certain circumstances if you’ve had a recent life-changing event, such as getting married or having a baby.

Disability Insurance

Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier to the completion of core work functions.

You might think you need disability insurance only if you have a job involving dangerous activities. But most disabilities aren’t work-related. Arthritis, cancer, diabetes and back pain are among the most significant causes of disabilities, according to the Council for Disabilities Awareness. That’s why it’s wise to consider disability insurance as part of your financial plan.

If you become sick or disabled, leaving you unable to work, disability insurance supplements a portion of your income. It typically replaces 40% to 70% of your base income and usually has a waiting period before coverage kicks in and a cap on how much it pays out monthly.

Aside from qualifying for Social Security disability benefits, there are two main ways to get disability insurance:

• Group disability insurance through work
• Individual disability policies that you purchase on your own

Life Insurance

Life insurance is a contract between an insurance policyholder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.

Depending on the contract, other events such as terminal illness or critical illness can also trigger payment.

If anyone depends on you financially, finding the best life insurance for your situation is essential. Forty-four percent of U.S. households would face financial hardship within six months if the primary wage earner died—and for 28%, it would be just one month—according to LIMRA, an industry-funded research firm. Life insurance is one way to replace your income if you die unexpectedly.

Life insurance policies usually fall into two main buckets: term life insurance and permanent life insurance.

Term life insurance

Term life insurance lets you lock in rates for a particular length of time, like 10, 15, 20, or 30 years. During this time, your premiums are level. Once the level term period ends, you can typically renew the policy on a yearly basis but at a higher cost each time.

If you want to cover a specific financial obligation, like the years of college or debt, term life insurance may be a good fit for you. Term life insurance is usually the most affordable type of life insurance.

Permanent life insurance

Permanent life insurance can provide lifelong coverage. In addition to the death benefit, permanent life insurance includes a cash value component. If the cash value builds, you can access the money by taking a loan or withdrawing funds. If you decide to end the policy, you can take the cash value of the policy (minus any surrender charge).

Consider permanent life insurance if you want to build cash value to supplement retirement savings or to provide a death benefit for someone who will rely on you financially for a long period. Permanent life insurance is more expensive than term life insurance.

Types of permanent life insurance include whole life insurance, universal life insurance, variable life insurance, and burial life insurance.

Long-Term Care Insurance

Adults turning age 65 have a 70% chance of needing long-term care at some point, according to the Department of Health & Human Services. Whether it’s in-home assistance to help with everyday tasks or an extended stay at a nursing home, most seniors will likely need assistance at some point in their lives. And long-term care isn’t cheap. It costs an average of $9,000 per month to stay in a private room in a nursing home, according to Genworth Cost of Care Survey 2021.

Nationwide, Compare Long-Term Care Costs From State to State, https://nationwidefinancialltcmap.hvsfinancial.com, Jan 2020

Long-term care (LTC) insurance can help pay for expenses such as in-home care, adult day care, or nursing home stays. The best time to buy long-term care insurance is when you’re in your 50s or 60s. Buying coverage during this age range is usually the most cost-effective time to buy. As you age, the cost of LTC insurance will increase.

Be sure to research this product thoroughly before you buy it. In recent years policyholders have been surprised by large premium increases that have made insurance unaffordable for many after they bought it. The Congressional Research Service has an overview of long-term care insurance.

If you’re buying life insurance, you may be able to add long-term care coverage to your policy as a life insurance rider or buy a policy that combines life insurance and LTC coverage.

Read this article: https://www.dhirubhai.net/pulse/misconceptions-long-term-care-tina-tjahjadi/

The Importance of Being Properly Insured with Small Business Insurance

An insurance policy is the most common way businesses transfer risk and protect their employees, assets, and their operations. In most states, certain forms of insurance are required by law, like workers’ compensation and disability coverage. The right insurance can help protect your business from property damage caused by theft or natural disasters, loss of income, liability claims, and more.

Some of the most common types of small business insurance organizations should consider include:

• General Liability
• Property Insurance
• Business owners Policy
• Business Interruption Insurance
• Workers’ Compensation Insurance
• Employment Practices Liability Insurance (EPLI)
• Cyber Insurance
• Management Liability Insurance (D&O)
• Errors and Omissions Insurance (E&O)
• Crime Coverage

HOW TO OBSERVE NATIONAL INSURANCE AWARENESS DAY

• Review your insurance policies to be sure you are not under or over-insured. You will need to make sure that your plans still provide you with the right level of coverage. It may be that you need to make a few tweaks to your policy. New products, services, and solutions are constantly being introduced with new features, benefits, and costs to help you keep pace with your life.?
• Take charge to change your rates. Whether it’s taking an online, defensive driving course, hitting the gym a few times a week, or putting in a home security system, these doable actions can lead to added savings on your various insurance policies.
• Insurance Checkup. Schedule an insurance checkup with an insurance professional to discuss all the various types of insurance that can protect you and your family.?
• Raise awareness on social media with your friends, family, and followers to make sure that they are aware of the importance of insurance and having the right policies in place.
• Attend financial workshops and be familiar with insurance aspects as financial instruments ?? https://bit.ly/3viVUsA
• Get a financial wellness check-up with one of our financial professionals ?? https://calendly.com/communityworkshop/zoom-appointment

Sources:

Team Elevate, WFG, Jun 27, 2023; Ashley Kilroy &? Michelle Megna, Forbes Advisor, May 24, 2022;Elliott Appel, Nov 28, 2022;?Genworth Cost of Care Survey, CareScout?, Nov 2021; NationalToday