Insurance

Here’s When You Need Payment Protection Insurance

May 16, 2021 By Kathryn Vercillo Leave a Comment

There are so many different types of insurance available for different reasons. Some of them are absolutely critical if you’re a savvy consumer. On the other hand, many either aren’t necessary or depend significantly on the situation. If you’re not familiar with a type of insurance, then it can be extremely difficult to determine whether or not you need it. For example, many people don’t know about Payment Protection Insurance. What is it and when do you need it, if ever?

What Is Payment Protection Insurance?

Payment Protection Insurance (PPI) is a type of insurance designed to protect you in the event that you become unable to make payments on a loan.

Payment protection insurance may be known as different names including:

Payment protection plan
Credit protection or credit insurance
Mortgage protection insurance

The general idea is that:

You take out a loan.
The loan has a set repayment plan. For example, mortgage payments on your house.
Something terrible happens and you can’t meet those payment requirements.
If you have Payment Protection Insurance, then it may cover those payments for a period of time.

In other words, you pay for insurance to help you make payments in the future in the event of unpredictable difficult financial situations,

How to Get Payment Protection Insurance

You might get PPI through various sources. For example, your mortgage lender may offer this as a service to you. Likewise, your credit union may have Payment Protection Insurance. The Firefighters Community Credit Union offers PPI to their members. Working with a credit union often allows you to tailor your insurance to your exact needs which can definitely be an asset when choosing types of insurance.

This particular credit union notes that they offer PPI on a number of different types of loans including:

Second mortgages
Car loans
Personal loans

If you become disabled or unable to work for some reason during the repayment period of the loan, then your insurance should kick in. It will cover the loan payments for a specific period of time as outlined in your agreement. If you pass away, some or all of the loan may be forgiven, which can be an asset to your heirs.

Other Types of Payment Protection Insurance

There are various clauses and types of Payment Protection Insurance. That described above is most common. However, you should read the fine print to find out what kind of insurance you’re getting.

For example, in some instances, the purpose of Mortgage Protection Insurance is sometimes to protect the lender, rather than to protect you. The rule might be that if the homeowner dies before paying off the loan, the insurance pays the lender. This benefits the lender. That said, it might also benefit the homeowner’s estate. It really depends on the terms of the plan.

The key thing is to understand that there are different types of PPI. There are similar types of protection that have key different things to consider. Therefore, before you even ask yourself if you need Payment Protection Insurance, you really need to ask yourself what it is you’re trying to get.

When You Need Payment Protection Insurance

You probably don’t need to get Payment Protection Insurance if you’re taking out a small loan. If you expect to be able to repay your loan quickly, then chances are that you’ll do so before encountering any strange issues that prevent repayment. Moreover, you likely have other options in the event that something does happen with a short-term small loan.

Large and Long-Term Loans

However, if you’re taking out a large loan and/or a loan with a long-term repayment plan then you might at least want to consider PPI. For example, let’s say that you’re taking out a twenty-year second mortgage on your home. A whole lot can happen in the next twenty years. It’s certainly feasible that you could become ill or disabled, preventing you from earning the income you expect to earn for those repayments. As a result, you might want to consider insurance that protects you in the event such a thing happens.

Likelihood of Payment Problems in the Future

If you think that there’s a good chance that you’ll have problems with repayment in the future, then it could be well worth it to consider Payment Protection Insurance. However, many sure that you are very clear about what does and doesn’t qualify for the insurance to kick in.

The Money Advice Service says that PPI typically covers lack of payments due to:

Illness
Disability
Circumstances that stop you from working such as becoming a full-time care provider to a loved one
Job loss due to redundancy, but note that this may require additional coverage outside the original PPI terms
Death

That said, there are a lot of exemptions to PPI. If you’re unemployed or self-employed, this plan isn’t going to help you. Only certain illnesses are covered by this insurance. Moreover, if you have pre-existing conditions, then these likely won’t be covered. Additionally, most policies have a period during which you aren’t covered (such as the first 90 days after the illness or disability.)

So, if you have a suspicion that illness, disability, or job loss could lead to payment problems in the future, then you might want to consider the protection of PPI. However, if you know that this is due to a pre-existing condition, then you might need to weigh your options carefully. There’s no point paying for insurance if it won’t cover you!

Alternatives to Payment Protection Insurance

You might also forego Payment Protection Insurance if you already have other options that will cover payments for you in the event of illness, disability, or death. Examples of such alternatives include:

Emergency savings for just this type of situation
Assets that you can sell in the event of such an emergency
A partner or loved one who could help cover the bills if needed
You have employee benefits and/or sick pay that would help you during a down period
You have other types of insurance that cover the type of issues such as life insurance or disability insurance.

What types of insurance do you consider necessary? Let’s discuss in the comments below.

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Why You Need Life Insurance To Protect You And Your Family From Financial Strains

March 18, 2020 By Susan Paige Leave a Comment

Life insurance is something that everyone needs, but only a few people actually have. It’s easy to ignore buying a policy when you’re relatively healthy and young. However, the longer you wait, the higher the chances are that something might happen to you before getting yourself covered. If purchasing life insurance has been on your to-do list for quite some time now, but haven’t had the chance to be checked of yet, then maybe it’s time to revisit your plans.

Why It’s So Important

As people grow older, marry the love of their lives, build families, and start new businesses, they begin to realize more and more how essential life insurance is, and that’s the time they reach out to insurance brokers. Life insurance is fundamental to sound financial planning. Life insurance can also be relatively cheap, depending on the policy type you choose. That, of course, only tells one thing – you’ve got no excuse why you shouldn’t get coverage now. If you think that this is the perfect time to purchase a policy for you and your family, then don’t hesitate to visit websites like SimpleLifeInsure.com to talk to reliable insurance brokers.

However, if you’re one of those who are still on the fence of whether buying a policy is a good idea or not, read on to learn more about why you need life insurance to protect you and your family from financial strains.

Pays Final Expenses

Believe it or not, funeral and burial costs can quickly run up to thousands of dollars. So, if you don’t want your parents, wife, or children to suffer from financial strain at your death, you need life insurance. The problem is that the suffering that your family will experience will not only be financially but also emotionally, and that’s going to be very difficult without a policy in place.

Replaces Your Lost Income

A life insurance policy will work to provide the much-needed financial security to your family when you pass away. If you were to die all of a sudden, what do you think will happen to your loved ones? Can they survive the struggle from financial and emotional strains? That’s doubtful, primarily if your family relies on your income solely. What you can do is to get yourself and your family members adequate coverage. That way, you won’t leave them, or they won’t leave you helpless when monthly bills start to come around.

Covers Educational Expenses Of Children

Like most parents out there, you’d want to be sure that your kids get well-taken care of in the future. You also want to afford them a high-quality college education. So, while your kids are still at home, think about additional coverage so you won’t have to sacrifice their welfare when financial strains come your way or when you pass away.

Pays Off Debts

When you die, your debts won’t disappear. What if you and your spouse co-signed a loan like a mortgage? When you’re gone, it will be your spouse who will need to shoulder the repayment responsibility entirely. Another thing that may result from the lack of insurance policy is that creditors will try to collect from your estate. What happens is that your heirs receive a depleted remainder of your money and property because of your debts. A life insurance policy allows your loved ones to take care of all lingering financial responsibilities that you’ve left behind.

Replaces Your Spouse’s Income

A life insurance policy doesn’t only work for you; it also applies when it’s your spouse who passes away first. For a long time, your whole family has depended on you and your spouse’s combined income. So, you would need to replace his/her salary for you to maintain the lifestyle that your children have grown up with. And if your kids are still very young, you would need to spend money again to hire someone to help you with domestic tasks like cooking, laundry, and cleaning the house – chores that you and your spouse have shared before. All of those things should be enough to convince you that life insurance is essential for your family.

Builds Cash Value

Two common types of life insurance are the term and whole policies. Term life insurance stays in place for a period of time that you’re going to set when buying a policy. While whole life insurance covers you permanently until you decide to cancel the policy, so when you buy a whole life insurance policy, you’ll have the chance to build up cash value over time. The cash value is an attractive prospect to many people simply because you can tap it at any time. The cash value serves as an extra cushion for any financial emergencies down the road.

Final Thoughts

Getting a life insurance policy means that you and your family can prepare for any eventuality. It will help you sleep a little easier every night knowing that there’s a protection in place for you and your loved ones when financial strains come in and should something undesirable happen to you.

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Everything You Ever Wanted to Know about Lemonade.com

June 17, 2019 By Tamila McDonald Leave a Comment

Nearly everyone needs some kind of property insurance. If you rent your home or apartment, renter’s insurance can help you cover the cost for replacing items that are damaged or destroyed by a covered event, like an electrical fire. People who own their home need homeowner’s insurance. This goes a step further, covering both damaged items and structural repair costs. Finding good and affordable coverage can be a daunting task. However, Lemonade.com, a property insurer, aims to simplify the process while keeping your costs low.

What is Lemonade.com?

Lemonade.com is a property and casualty insurance company. It embraces technology to help keep the company’s overhead costs low, and it passes those savings onto the customers. Additionally, Lemonade believes in transparency.

All of their customers pay a simple flat fee for the service, which means Lemonade has no incentive for denying or delaying any claims. With traditional insurers, unpaid claims lead to bigger profits. Since Lemonade only takes in a flat fee to cover its costs, denying claims doesn’t create a financial benefit.

If there is any leftover money after covering all of the valid claims, Lemonade doesn’t keep it. Instead, through its Giveback program, the extra cash is donated to various charitable causes. Customers even get a say in where this money goes based on the virtual group they join.

Lemonade.com Coverage Options

In order to get a policy with Lemonade, you have to either use the company’s Android or iOS app, or head to its website. By issuing claims digitally, Lemonade can keep operational costs low, allowing policyholders to get more affordable coverage.

With Lemonade, you get two primary coverage choices. The company offers both renter’s and homeowner’s insurance, so you need to select the option that aligns with your living situation.

Renter’s insurance can cost as little as $5 a month while homeowner’s starts at $25 a month. Your exact premium will depend on a range of factors, including anything from the amount of stuff you own if you have any high-value items (jewelry, computers, etc.), your credit history, the size of your deductible, and your number of recent claims. For homeowner’s insurance, the property’s details also come into play.

Lemonade considers other risks as well. For example, if your area is susceptible to severe weather, that may lead to a higher premium. Additionally, if you have home security devices, your premium might be lower.

Once you create your policy, you can pay your premium with a credit or debit card. If at any point you no longer need the coverage, you can easily cancel the policy.

With any policy, you also get additional coverage when your items are outside of your home. For example, if your laptop is stolen while you are at a coffee shop, you are covered for that loss. Further, if your dog bites someone, you have might coverage for that too.

Filing Claims with Lemonade.com

While no one ever hopes to file a claim, it is nice to know that Lemonade’s process is incredibly easy. Use the smartphone app and tap the Claim button. Then, follow the simple process to submit your claim. It usually only takes a few minutes as long as you can provide sufficient information about the loss or damage.

During the process, you do need to submit a short video. In that clip, you describe what happened in your own words, making it easier for Lemonade to get a realistic picture of the situation.

If you have receipts to show the value of their items, you can submit those too. But, that isn’t a requirement; it can just help speed up your claim.

Once you submit those details, you give Lemonade bank account information for a wire transfer. Once approved, Lemonade sends the payment (minus your deductible) straight to your bank account.

In most cases, the approval process is almost instant. However, there may be situations where Lemonade needs to take a closer look, so it can take longer if a manual assessment is necessary.

Where Lemonade.com is Available

Lemonade.com doesn’t offer coverage in every state yet, though they are continuously expanding the company’s service area. As of June 2019, renter’s, condo, and homeowner’s insurance are available in:

Arizona
California
Colorado
Connecticut
Georgia
Illinois
Indiana
Iowa
Maryland
Michigan
Nevada
New Jersey
New York
Ohio
Oregon
Pennsylvania
Tennessee
Texas
Virginia
Washington DC
Wisconsin

Rhode Island residents have access to renter’s and condo insurance, while Arkansas and New Mexico residents can sign up for renter’s insurance. However, Lemonade continues to expand, so other states and options could be forthcoming.

Is Lemonade Always Cheaper?

While Lemonade aims to offer the best price possible, that doesn’t mean they will be the cheapest in every scenario. The company’s policies do tend to cost less, but each insurer uses different pricing models, so not everyone will find a deal with Lemonade.

However, since getting a no-obligation quote is free, you can also go through the process and see if Lemonade is right for you. If so, then you can sign up and have coverage in just minutes. If not, you can keep looking elsewhere until you find the right insurer for your needs.

Do you use Lemonade.com? Are you interested in trying Lemonade the next time you need insurance? Tell us about your experience or share your thoughts in the comments below.

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Do You Need to Buy Separate Health Insurance for College Students?

August 2, 2018 By Amanda Blankenship Leave a Comment

In many cases, health insurance is less than affordable, making it difficult for individuals to decide whether or not coverage is worth the cost. It isn’t something to be overlooked, especially for students. More than 20 million students are expected to return to college this fall and, without fail, colds and the flu will begin spreading. You don’t want yourself or your child to fall behind because they didn’t have the health care they needed while away at school but do you really need separate health insurance for college students?

Health Insurance Options for College Students

According to HealthCare.gov, each of the options below is available for college students.

Your parent’s insurance: Children are permitted to remain on their parent’s insurance until they are 26 years old.
Student health plans: Many colleges and universities offer a student health plan. In many cases, this is much cheaper than purchasing your own health insurance and gives you the basic coverage you need.
Individual health insurance: You can enroll in your own health insurance program that covers the essentials. Catastrophic health plans are available for individuals under 30. Catastrophic plans cover severe illness or injury and can be more affordable than full health insurance coverage.
Medicaid or Children’s Health Insurance Program: If you apply for individual coverage, you may discover you are eligible for Medicaid or CHIP. If you qualify for one of these government-funded programs, you can begin coverage immediately.

Each of the options above is available to all college students but it may be wise to compare the cost of each side-by-side. You may find that remaining on the family’s health plan may prove to be cheaper than a student health plan or individual coverage.

Do You Need Health Insurance?

You may be able to save the money you planned to spend on insurance altogether. You’ll need to take note of a few things before you decide to do so though.

This year, the health insurance mandate will subject individuals without insurance to a $695 tax penalty per adult and up to $2,085 per family. While the new tax law signed by President Trump removed the mandate, it is not in effect until 2019. So, anyone without health insurance in 2018 will still be required to pay these fees.

However, many students won’t be subjected to the fines at all because most won’t be making enough money to file income taxes ($10,000 a year or less). So, you probably don’t need health insurance for college students to avoid a fine but the decision to go uninsured should not be taken lightly.

Generally, it is a good idea to hold health insurance at all times. This helps ensure you will have the means to pay for a doctor visit, ER visit, or other medical procedure, whether money is tight or not.

Health Insurance Tips for College Students

If you do decide to purchase health insurance for yourself or your child, there are two things to keep in mind if they are traveling to school.

Know where to go (within your network): Once you get settled in into your dorm, find out what local offices accept your insurance. It is a good idea to get the name and number of an eye doctor, dentist, and general practitioner in the area. Then, make a well visit with them and get your insurance on file.
Pick a local pharmacy that accepts your insurance: Once you find a doctor that will accept your insurance plan, you’ll need to find a pharmacy that works with your coverage as well. Most of the time, your doctor’s office can point you in the right direction. You can also call the number on the back of your insurance card for more information.

If you’ve been considering buying a new health insurance plan for your college student (or yourself), consider all of your options and the cost of each. Then make an educated decision based on what is best for your health and finances.

Here’s What You Need to Know About Back-to-School Insurance

August 1, 2018 By Amanda Blankenship Leave a Comment

The end of summer is almost here, which means many students will be headed back to school. Depending on the age of your child, you’ll need to research what your back-to-school insurance needs may be, whether it is auto, health, or home coverage. Since the best time to review your insurance plans is before the school year begins, here’s what you need to know.

Car Insurance for Students

Kids in high school may be preparing to take drivers ed and get their licenses this year. If that’s the case for your child, you may want to begin researching car insurance rates or what it may cost to add them to your insurance plan. Some insurance companies will offer a significant discount for ensuring your teenager if you agree to put a lowjack in your car to monitor speed.

You may also want to inquire about student discounts for car insurance as well. There are some companies that offer a discount for students with a high grade-point average.

Students headed off to college may also see a change in premiums and coverage if they go more than 100 miles away from home and bring a car to campus. However, you also stand to save up to 30% if your child leaves the car at home.

Health Insurance

Elementary school-aged children are especially susceptible to colds and cases of flu. Schools are a breeding ground for germs. Because of this, it is important to make sure you have solid health insurance coverage so you’re able to take them to the doctor when needed.

Many colleges require students living on campus are required to have health insurance. Thankfully, your children can remain on your insurance policy until they are 26 years old. If that isn’t an option financially, they can apply for individual health insurance. Students also have the option of receiving care from on-campus health care services. Some universities offer free health care while your child is enrolled full-time.

Home Insurance

College students often bring expensive electronics along with them to school. This can often make their dorm room or apartment prone to burglary. Most home insurance policies will cover these items as long as your child is staying in the dorms but will not cover certain items. Students living off-campus will need to purchase renter’s insurance, or you may consider adding their renter’s insurance to your policy.

Most home insurance policies cover up to 10% of property owned by an insured that is at a residence other than the residence listed on the policy. A $100,000 policy will cover $10,000 of belongings in a dorm.

When students return to school each year it is a reminder for many people to review their current insurance coverage. Taking a good look at your insurance may help you discover gaps in coverage and prevent any losses in the future.

Readers, are you preparing to make any changes to your insurance coverage now that students are headed back to school?

The High Cost of Some Prescription Drugs Can Be More Than Most Automobiles

June 28, 2018 By Tamila McDonald Leave a Comment

According to Kelley Blue Book, the average price for a new light vehicle is $35,411. Even the lowest-priced new cars will usually run over $12,000. While that number may not be a surprise. Due to the high cost of some prescription drugs; many consumers are caught off guard when it’s time to pick up their prescriptions.

To make matters worse, some health insurance plans don’t help with the cost.

The High Cost of Some Prescription Drugs

Tier one medications, typically name-brand drugs that manufacturers push through marketing campaigns, are often more expensive. In 2016, $5.6 billion was spent on prescription drug advertising, trying to convince consumers to ask their doctors about specific medications. These ads usually don’t discuss the cost of the drugs and selecting the wrong one could hit your wallet hard.

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To help you make smarter decisions about your prescription medications, here are 11 that cost more than a car, according to GoodRX.

1. Actimmune

Actimmune is for the treatment of chronic granulomatous disease, a rare condition that impacts the immune system, and severe, malignant osteopetrosis .

Most patients need 12 vials a month, and Actimmune costs $4,360 per vial. That brings the monthly total to $52,321. If you use it for a year at that rate, your annual cost is a stunning $627,852. With various discounts and rebates and patient compliance, the cost can be lowered an average of $24,000 per month or $288,000 per year.

2. Daraprim

Both those with AIDS and transplant patient may use Daraprim, as well as those battling with toxoplasmosis. Typically, people use the medication for a few months.

A single one-month supply, consisting of 60 tablets, costs $45,000, or around $750 a pill.

3. Cinryze

A treatment for the rare, life-threatening condition hereditary angioedema, which causes swelling in various body parts, Cinryze costs around $44,140 for a typical one-month supply. Over the course of a year, that comes out to $529,680.

4. Chenodal

While a generic of Chenodal could technically be created, since the patent has expired, the “closed distribution system” has prevented generic manufacturers from producing the medication.

A typical 90 pill monthly supply of the gallstone dissolving drug usually runs about $473 per tablet or $42,570 in total. However, some patients need 210 tablets a month, and that runs $99,330.

5. Myalept

A medication for treating leptin deficiencies in those with generalized lipodystrophy, Myalept costs approximately $4,213 per vial. If you use the standard 10 vials a month, that’s $42,137.

Myalept is also the only medication available for treating the condition, so those who suffer it have no other options for finding cost savings.

6. H.P. Acthar

Also called Acthar, H.P. Acthar is an approved treatment for multiple conditions including multiple sclerosis, rheumatoid arthritis, Lupus, certain ophthalmic conditions, and more. One vial of the medication has a price tag of around $38,892.

7. Juxtapid

A 28 capsule supply runs about $36,992, or $1,321 per dose. The medication treats those with homozygous familial hypercholesterolemia, a genetic condition that can lead to heart disease.

8. Firazyr

Another treatment for hereditary angioedema, though using a different approach, Firazyr costs around $32,468 a month, or over $10,822 per syringe.

9. Harvoni

Harvoni treats Hepatitis C, a condition with notoriously high treatment costs, is widely advertised on television. It is the first combination drug, which needs to be taken once per day, in the treatment category, and a 12-week course of the medication is common.

28 tablets of Harvoni cost $31,500, or $1,125 per tablet. Over 12 weeks that brings the total to $94,500.

10. Cuprimine

Cuprimine is proof that even older medications can cost a bundle. It was invented in the 1970s, but still costs over $261 per tablet today. In fact, the high price tag is so controversial, that it debates in Congress have occurred and an episode of Dirty Money, a Netflix show, covered the topic.

A treatment for Wilson’s disease, those taking the drug usually go through three tablets per day, one after every meal. That brings the monthly cost up to $31,426.

11. Sovaldi

Another Hepatitis C treatment that usually requires a 12-week course is Sovaldi. At $1,000 per tablet, a month’s supply is around $28,000. For a full course of treatment, that comes out to $84,000.

Would Your Insurance Cover Some of the Cost?

Whether an insurance company will cover some of the costs of any prescription varies dramatically. If your doctor recommends any of the medications above, it’s wise to contact your insurer to discuss your coverage.

Additionally, asking your physician for information about alternatives can also result in cost savings, depending on your condition or the availability of generics.

In some cases, lower cost options may not be available, or your insurance might not provide coverage. In those cases, you need to discuss your situation with your doctor. They may be aware of programs that can help offset some of the expense, though that isn’t a guarantee.

Often, when a physician prescribes a medication, there is sound reasoning behind it. While shouldering these high costs could be scary, if your health is at risk, you may need to follow your doctor’s advice.

Have you ever been startled by the high cost of some prescription drugs? Tell us about your experience in the comments below.

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