Maneuvering through the insurance system can be confusing and intimidating. Which insurance coverage should I sign up for? What does it cover? Am I paying too much? How can I optimize my money in an insurance plan? Sonia’s Insurance Basics overview helped clarify these types of questions, and brought to light some important facts we had never even considered before! Please consult your local insurance agent for details pertaining to your specific situation and needs. Unfortunately, I wasn’t able to stick around for the whole meeting this time, but here are the notes I was able to get.

Feedback:

I. Career-related Insurance:
ex: physician life insurance (life insurance targeted towards physicians)

II. Life Insurance
A. Rates:
– The older you are when signing up, the more expensive the rates
– Based on health
– Lock in the better rates when you’re younger and healthier
B. Who needs it:
– Especially important if you have a spouse, kids, assets
– Good for everyone, not just the partner making the most money
C. Types of Life Insurance:
1. Term life insurance:
– Protection for “x” number of years.
– Most affordable rate, esp good if you’re younger and in good health.
– Can transfer to permanent life insurance later.
– Payout = value of the insurance policy
2. Work life insurance (offered by employer):
– Limited value.
– Only good as long as you stay with that employer and not transferable to a new job.
– Better to have your own life insurance policy in addition starting at a young age in addition or instead of work.
3. Universal life insurance:
– Invest post-tax money into market, etc
– Flat rate, guaranteed minimum return but upper limit to gains
– All earned money is tax free
– Some products offer no penalties to pull money before (because it’s your own money), and you can use this money for vacation, education, etc.

III. Car Insurance:
A. Lots of factors involved in determining rates but look around for best rates

IV. Liability insurance:
A. What is it?
– Protects assests within the coverage of the plan in case of a lawsuit or similar claims
B. Personal Umbrella Policy
– Provides coverage beyond the limits of your auto, home, boat, etc insurance policies
– In case of personal or property damage, you could be responsible for any costs above and beyond that covered by your other specific insurance policies. The umbrella policy would cover the difference.
– Examples: injuries caused by your dog, injury sustained by guest in your home or yard, slander/libel/anguish, property or personal damage caused by your child (at school, while driving, etc), tenant of your rental property has a dog that causes someone personal or property damage, etc
C. Business Insurance
– General liability insurance for business
– Depends on the type of business

V. Pet Insurance
– Health insurance for your pet