Texas Insurance Education
Texas Insurance Education
Life insurance
Life insurance is a contract between an insurance company and an individual. The individual pays a premium to the insurance company, and in return, the insurance company promises to pay a death benefit to a designated beneficiary upon the death of the insured person.
There are many different types of life insurance, each with its own features and benefits. Some of the most common types of life insurance include:
- Term life insurance: Term life insurance is the simplest and most affordable type of life insurance. It provides coverage for a specific period of time, such as 10 years or 20 years. If the insured person dies during the term of the policy, the death benefit is paid to the beneficiary. If the insured person lives to the end of the term, the policy expires and no death benefit is paid.
- Permanent life insurance: Permanent life insurance provides lifetime coverage and builds cash value over time. The cash value can be used for loans, withdrawals, or to pay for premiums. Some of the most common types of permanent life insurance include whole life insurance, universal life insurance, and variable universal life insurance.
Health insurance
Health insurance is a type of insurance that covers the cost of medical expenses. It can help pay for doctor visits, hospital stays, prescription drugs, and other health-related costs.
There are many different types of health insurance, each with its own features and benefits. Some of the most common types of health insurance include:
- Medicare: Medicare is a federal health insurance program for people 65 and older, people with certain disabilities, and people with End-Stage Renal Disease (ESRD). Medicare has four parts:
- Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care.
- Part B covers certain doctors’ services, outpatient care, medical supplies, and preventive services.
- Part C, also known as Medicare Advantage, is a type of Medicare-approved health plan from a private company that you can choose to cover most of your Part A and Part B benefits instead of Original Medicare.
- Part D covers prescription drugs.
- Commercial health insurance: Commercial health insurance is health insurance that is purchased from a private company. Commercial health insurance plans can vary widely in terms of coverage, cost, and features.
- Health savings accounts (HSAs): HSAs are tax-advantaged savings accounts that can be used to pay for qualified medical expenses. HSAs are available to people who have high-deductible health plans (HDHPs).
- Health reimbursement arrangements (HRAs): HRAs are employer-sponsored health plans that allow employees to set aside money on a pre-tax basis to pay for medical expenses.
- COBRA: COBRA is a federal law that allows people who lose their health insurance coverage through their job to continue their coverage for a limited period of time.
When choosing a health insurance plan, it is important to consider your individual needs and circumstances. Some factors to consider include your age, health status, income, and budget. You should also compare the different plans available to you in terms of coverage, cost, and features.
Here are some additional tips for choosing a health insurance plan:
- Shop around. There are many different health insurance plans available, so it is important to shop around and compare your options. You can compare plans online, through a broker, or by calling your state’s insurance department.
- Read the fine print. Before you choose a plan, be sure to read the fine print and understand all of the terms and conditions. This includes things like the deductible, coinsurance, and out-of-pocket maximum.
- Ask questions. If you have any questions about a health insurance plan, be sure to ask your agent or the plan’s customer service department.
Choosing a health insurance plan can be a complex process, but it is important to do your research and choose a plan that meets your needs.
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You can get your Medicare benefits through Original Medicare, or you can choose a Medicare Advantage Plan. With Original Medicare, the government pays for your Medicare benefits when you get them. Medicare Advantage Plans, Part C of Medicare are offered by private companies that have been approved by Medicare. Medicare pays these companies to administer your Medicare benefits.
Medicare Supplement insurance plans are standardized by the Federal Government. They are labeled A, B, C, D, F, G, K, L, M and N. Each standardized Medigap policy must offer the same basic benefits no matter which insurance company sells it.
Ashford Insurance offers Medicare Advantage Dual Eligible Plans (Part C of Medicare).
Ashford Insurance offers Medicare Advantage Chronic Plans (Part C of Medicare) for Medicare Eligibles with certain chronic conditions.
Part D Prescription Drug Coverage is coverage for retail prescription drugs or the medications that you pick up at a pharmacy. This is a voluntary program that allows you to access medications at an affordable rate and insures yourself against any prescriptions you may need in the future.
Short-term health insurance plans are designed to temporally fill coverage gaps for people in transition. These gaps in coverage could happen to recent college graduates, people between jobs or early retirees.
Life insurance pays out when the insured person dies. The idea is to protect loved ones from a sudden loss of financial support. You could also use it to support your local charity. There are three basic types of life insurance that differ in their details.
Funeral Expense Insurance is just that, an insurance policy that pays the costs associated with your funeral. The costs of a modest funeral can vary upwards from $5,000 and average around $10,000. There are several different forms of these policies available to assist you with planning for your end-of-life costs.